Category: Equity Research

HCL Tech reported Q3 revenues of $485m (+5.2% qoq; our exp: $488m). EBITDA margins expanded ~90 bps (our exp: flat margins). Net profits at Rs3.2b came in higher than our expectation of Rs3b. (more…)

Struggling American FII, Lehman Brothers Equity Research has upgraded Asia’s best housing finance company HDFC to Overweight from Equal weight. Lehman in the note said, Because of its highly stable business model, HDFC has historically been a good opportunity in times of heightened risk perception. This will continue to be the case this time as well. However, in the past two weeks, the stock has corrected by 13%, which we believe provides an attractive entry opportunity. (more…)

Citigroup in a report releases just a while ago is placing its bet on GMR Infrastructure and GVK Power and Infrastructure.

GMR Infrastructure:
GMR is one of the leading infrastructure developers in India with a portfolio of assets including three airports (Hyderabad, Delhi and Sabiha Gokcen International Airport in Turkey), 11 power plants, and six roads. Citi estimate airports and related real estate comprise 47% of GMR’s value, other real estate 19%, power plants 18%, and roads 5%. GMR also has ~$1bn cash. (more…)

McLeod Russel is the largest bulk tea producer in the world. Tea prices are on an upward run and McLeod offers an excellent leverage given its scale and high fixed operating costs. McLeod’s EPS is expected to grow 5x over FY08-10 on surge in tea prices. (more…)

Bartronics India Ltd – BIL offers tailor-made AIDC [automatic identification and data collection] and RFID(radio frequency Identification)-based systems. The company also provides business and technology strategy, systems design and architecture, applications implementation, network and systems integration in this field. The US subsidiary of the company has recently got a US Patent for – non-reusable RF based temper proof Wrist Band; which can be used as Identity proof as well as for cashless payment. This product will have wide ranging applications. The market for RFID tags is growing fast and will grow from $1.5 bn in 2005 to $6.1 bn in 2010. The AIDC or smart cards will also grow to around 150 million units soon, growing at a CAGR of around 45%. (more…)

Viceroy Hotels, which currently owns a single property in Hyderabad, Hyderabad Marriott, plans to quadruple its room count from the current 355 to 1,405, by FY10. Apart from increasing its room base in Hyderabad, it also plans to expand its reach to Chennai and Bangalore under the Marriott brand.

Having established four strong brands under two of its wholly-owned subsidiaries, Viceroy Hotels plans to expand its F&B (Food & Beverage) business to more cities. (more…)