Category: Equity Research

The weaker steel demand story is a lot less relevant than the Chinese governments resolve to control steel prices. News of some auto producers in the US not accepting the midyear surcharges has renewed fears on steel demand. Domestic price increases may only be possible from April 09 and the demand may not taper significantly in the near term.

Using a higher equity risk premium and a higher risk-free rate, make changes to EBITDA used for valuation from FY10E to rolling four quarters. (more…)

CNXMCAP index fell 20.2% in June 2008 while Nifty and Sensex were down 17% and 18% respectively. The mid-cap discount to large caps is ~18% currently and in spite of the concerns of inflation related margin pressures and high oil price, there are currently quality companies available at attractive price in the mid-cap space. While none of them may be immune to the immediate effects of a broader market meltdown, the quality investment theses should prevail over a 12 month horizon. (more…)

Lehman Brothers continue to retain OVERWEIGHT on Themax Ltd after meeting with the company’s management.

Thermax expects strong order-inflow growth in FY09 from cement, steel, and oil and gas sectors. Rising steel prices could impact the company by 50 bps. (more…)

Anand Rathi has reiterated its BUY rating while covering ABG Shipayrd with the Stress Case / Worst Case scenario.

ABG recently announced that it has deferred fund raising for Surat II, make us believe the project would be delayed, the same has not been included in Analysis. Further, expect the new capacity being built globally lead to tough competition in the industry. Thus assuming ABG’s utilization to fall to 70% FY12 on. (more…)

With today’s Carnage in the Market, Fund Managers are back to the old school of thought, valuation based investing – Dividend Discount Model, etc. We are presenting you with some of the best dividend yielding stocks. However, for an Individual and Retail investor, we do not recommend BUYING them just for this purpose, but you can continue to hold if you already own them. (more…)

Various stocks have crashed between 20 to 80% in the current fall. Here is a list of front line stocks that have faced massive selling pressure as if there is no tomorrow. (more…)