Category: Equity Research

SBI Caps has initiated coverage on Kemrock Industries & Exports with a BUY rating. Kemrock is the world’s most integrated and comprehensive thermoset reinforced polymer composite solution provider. Kemrock high technology profile has been acquired by mastering multi fold technology processes and the ability of its technocrat promoters.

Kemrock has multifold processes – pultrusion, moulded, filament winding, centrifugal casting, pull winding, Resin Ttansfer Moulding and expanding process strategy in the
future – SMC, Vaccum assisted resin transfer moulding, VaccumBagging and (more…)

Lehman Brothers equity research has initiated coverage on Puravankara Projects with an OVERWEIGHT rating. Puravankara Projects Ltd (PPRO) is a high-quality real estate group exposed to the rapid economic growth of South Indian cities such as Bangalore,Chennai, and Kochi.

Puravankara has a high-quality landbank of 107m sq ft, and most of it is close to the economic hubs of cities. Average cost of acquisition is only INR 97 psf. (more…)

KEC International reported a net profit of Rs526mn for the merged entity (inclusive of RPG transmission and NITEL) for the quarter, while the adjusted net profit (standalone KEC) was at Rs448mn (17% yoy), in line with our estimates. KEC’s revenues grew by 8% yoy to Rs6.2bn, while margins expanded by 60bps to 14.7% yoy led by execution of higher margin orders and execution of value added component of contracts.

On a consolidated basis (inclusive of RPG transmission) KEC has an order backlog of Rs50bn.The pipeline of international orders is extremely robust mainly driven by huge capex in Middle East (led by firm oil prices – 30% of international order backlog) and African countries (led by multilateral agency funding – 20% of international order backlog). (more…)

Motherson Sumi’s EBITDA margin declined as it scaled up operation in line with its key customer Hyundai Motor India’s upcoming new factory. Delay in commissioning of Hyundai’s Motor’s new factory in India from Oct 07 to Feb 08 has contributed to increase in staff and other expenditures and hence impacted Q3 FY08 margin. (more…)

In our post on how Analysts are Desperate to justify Stock price, we had written about number of stupid theories. Here is another one from an Analyst tracking the Retail Market in India and it is on Pantaloon Retail India Ltd. (more…)

ABN Amro and Citigroup Research have upgraded the stock of HCL Infosystems from Hold to BUY with aggressive price targets.

HCL Infosystems’ Q2FY08 results came in above our expectations – EBITDA at Rs1.12b was significantly ahead of our expectation (Rs944m). (more…)