Category: Equity Research

Finally, we have a brave soul [JP Morgan] initiating coverage on Anil Ambani’s yet to take off shell company – Reliance Power Ltd [RPL]. (more…)

Neyveli Lignite Corporation Ltd [NLC] owns the largest mines in India. It is a a 93.6% government owned company, was incorporated in 1956. It is engaged in lignite mining and power generation. The company owns the largest open cast mechanised mines in India, all situated around Neyveli in Tamil Nadu. (more…)

Kotak has initiated coverage on SREI Infrastructure Finance and Patel Engineering with a BUY rating.

SREI Infrastructure Finance:
Srei caters to SME project developers. SREI as an NBFC has created a niche for itself in the infrastructure financing segment. This has helped Srei in capturing a share of around 30% of the infrastructure equipment financing space. Recently, SREI sold its asset financing business to a 50:50 JV with BNP Paribas which will help ramp up its other businesses. (more…)

SBI Cap Securities has initiated coverage on Godawari Power & Ispat Ltd [GPIL] and Nav Bharat Ventures with a BUY recommendation.

GPIL:
GPIL’s manufacturing plant is located closer to the main raw material source and the main market for its wires. Further the company also owns a railway siding for its captive use. GPIL has received sales tax exemption for a period of 11 years (starting April 2001), with an upper limit amounting to 150 percent of capital investment in production facilities up to March 2006. (more…)

Apollo Hospitals which pioneered the concept of private hospitals in India along with Manipal healthcare [unlisted] is unable to expand beyond Tier-I cities and is facing saturation in its growth momentum. Apollo’ s revenue growth in the past 10 years has been steady with sales CAGR of 32% over FY2000-FY2007, and its number of beds has increased to around 8000 from 1500.

Apollo, which contains mostly steady state mature hospitals, has limited upside in terms of growth from existing units. As such, we think the newer hospitals should dilute EBITDA margins in the near term, and hence its expansion plans could impede returns. (more…)

BHEL won India’s largest gas turbine order worth Rs35bn (US$815mn), thanks to its new advance class gas turbine (ACGT) from GE. BHEL offers a play on the likely increase in India’s gas availability led by Reliance, GSPC and Petronet LNG as this is its third ACGT order in one year. Order inflows from new products and capacity expansion should be the key +ve drivers, with metal prices being a concern. (more…)