Category: Equity Research

Patels Airtemp India, which manufactures heat exchangers, pressure vessels, industrial fans and blowers and other heattransfer-technology products, would benefit from the ongoing boom in its user industries such as oil and gas, refineries, power, cement, and fertilisers. The heating, ventilation and air conditioning (HVAC) business, where the company undertakes turnkey projects and manufactures HVAC equipment is also expected to benefit from the ongoing retail boom.

The company has a healthy order book of Rs45 crore, out of which Rs40 crore is executable over the next six months.expect new order booking of~Rs70 crore in FY2008, which should increase to ~Rs120 crore by FY2009, while the momentum is expected to continue considering the current buoyancy in its user industries. (more…)

Citigroup in a research report released just a while ago has recommended investors to SELL Grasim Industries Ltd with a medium Risk Rating.

In an effort to rationalize capacity, Grasim is selling its 53.63% stake in Shree Digvijay Cement (SDC) to Cimpor of Portugal. Even after the sale of this standalone 1.07m tpa plant in Gujarat, Grasim+UltraTech will have ~6m tpa of capacity in that state. Grasim has sold the SDC plant in Gujarat to rationalize its portfolio. This is an old, standalone plant with relatively lower margins (~19% in 1H FY08) and limited scope for expansion. (more…)

JK Cement is expanding its capacity by 3.5 million metric tonne (MMT) through a greenfield plant at Karnataka, which will be accompanied by a 50-megawatt (MW)
power plant at the site. The capital expenditure (capex) programme is in progress and the plant is expected to be commissioned by FY2009 end. This will augment the capacity of the company by 70% in FY2010 and will drive the volumes of the company going ahead.

JK Cement’s capex on captive power plants (CPPs) is progressing well. The company has already commissioned a 20MW pet coke based power plant and has replaced its 10MW turbine. It has partially implemented the (more…)

Indiainfoline research has recommended a BOOK profits / Exit KPIT after their recent management meeting. Most of the company’s clients are planning to marginally increase or maintain IT budgets in CY08 with higher offshore spending. Company expects revenues from Cummins (Top client contributing 40%) to grow in high single digits in Q3 and Q4 of FY08. Revenues from Cummins have registered a strong growth of 7.8% in Q1 and 10.6% in Q2 in rupee terms. However, company expects Cummin’s revenue share to decline to 25% by 2010. (more…)

After a long time we have a BUY call on a front line IT stock. Citi has inititated coverage on HCL Infosystems [HCLI] with a BUY rating. HCL Infosystems is a HCL group company mainly focused on hardware and systems integration business. HCLI is a play on government and domestic industry tech spending.

HCL’s primary product offering is personal computers – both desktop and laptops – to the consumer and commercial markets. The consumer market consists of retail buyers including SOHO (Small Office/Home Offices) and small-scale enterprises, while the commercial (more…)

Heightened economic activity in India and the busy Travel season may not cheer the lobbies of Oberoi groups EIH Hotels according to Citigroup analysts.

Smart investors who are holding to the stock can Book-Profits as the stock is likely to underperform in the near term. The stock now trades at a 27% premium to the hotel sector, post a 43% 3-month move, outperforming the hotel sector (10%) and market (13%). (more…)