Category: Equity Research

Thermax’s Q4FY08 results were in line with expectations. At the consolidated level, revenues grew ~19% Y-o-Y to ~INR 10 bn, driven by better performance of the company’s subsidiaries. Standalone revenues grew ~13% Y-o-Y to ~INR 9 bn.

During the quarter, the energy business segment grew ~12% Y-o-Y, whereas the environment business grew ~7% Y-o-Y. The energy segment contributed ~77% to revenues with the balance being contributed by the environment segment. Consolidated EBITDA margins were up ~100bps Y-o-Y to 13.4% driven by higher margins in the energy business segment. (more…)

ICICI Sec has recommended a BUY on SAIL [Steel Authority of India Ltd]. SAIL’s Results were above expectations even though the company is out of the Iron & Steel Cartel prevailing in India.

Average realisations at ~Rs37,200 in Q4FY08 were higher 15% YoY & 17% QoQ. While SAIL will maintain prices for the next 2-3 months (as committed to the Government), the average realisation for Q1FY09 would be higher since the price increase was taken largely during February and March. (more…)

Citi in a report released just a while ago has recommended a SELL / High Risk on Tech Mahindra.

Tech Mahindra (TM) posted revenue of US$258m (vs. estimate of US$260m) and a margin decline of ~20bps, despite sharp uptick in utilization (400bps) and no pass-through revenue in 4Q. Net profit of Rs2.2bn was below expectations (est. Rs2.27bn) despite forex gains of US$7m. (more…)

After Kotak Recommended a BUY on Sesa Goa, Morgan Stanley has also initiated coverage with a BUY recommendation. Sesa’s solid iron ore output growth. A change in sales mix from contract to spot market sales. The likelihood of above-consensus iron ore prices. These factors should support an EPS CAGR of 22% in F2008-10 for Sesa, which does not seem to be captured in the stock’s 7.5x P/E valuation. (more…)

JP Associates highlighted acquisition of entire 165kms of Taj expressway (JPI) land, addition to & monetization of real estate land bank; improved execution at cement (19mt capacity in FY09E) & E&C businesses and 24-31% RoE at its power subs. JPA is one of our top Infra pick with potential PO upside of 89%. (more…)

After Merill Downgraded IndiaBulls Financial Services, Credit suisse has downgraded IndiaBulls Real Estate [IBREL] to UNDERPERFORM. (more…)