Category: Equity Research

We had an exclusive coverage of Jaiprakash Associates [JP Associates] last month. Now Merill Lynch and Sharekhan have upgraded the stock.

JPA has launched the first tranche of a 3mn sq. ft development (see Chart 4) at its NOIDA land bank. Sales at JP Greens are likely to be robust at >1mn sq. ft in FY08E. The initial response to the bookings appears to be very strong, as the average rate stands at Rs6,000 per square foot. Formula 1 Holdings has confirmed signing a contract with JPSK Sports (subs. of JPA) to stage the first-ever F1 Grand Prix at NCR, India in 2010. We think F1 circuit will be accompanied with related land bank, which would justify investment.

According to media reports, ICICI Venture Funds (more…)

Before Sharekhan’s coverage we would like to let you know that HDFC is a blind BUY at any rate. Hold it for 12-24 months, you will see the returns 🙂

HDFC has created significant value in its subsidiaries. Three of these-HDFC Bank, HDFC Life Insurance and HDFC Mutual Fund-are valued at Rs883 per share. They are also growing at a faster rate than HDFC. Separate listing of Insurance subsidiaries is on the cards too.

HDFC has gained significant market share in the (more…)

Kotak has initiated coverage on Strides Arcolab Ltd with a BUY rating after the some big ticket foreign deals.

Aspen will become a strategic, equal and regional partner in Strides’ Latin American operation. The transaction values the Latin American operations of Strides at over US$260 mn. Aspen will be a global partner for the development and global marketing of oncolytics.

Strides will acquire 51% interest of Co Pharma Ltd, (more…)

Unlike other sectors which are painting aggressive growth stories [we have to see their execution capabilities yet], the Hotel sector is something being invaded by Realty companies in India now. Existing big players, Indian Hotels[Taj Group by Tata] and Oberois have a very laid back expansion plans.

The demand-supply mismatch will likely continue for at least the next 18 months.

Rights Issue to Dilute Equity:The company intends to raise Rs14.4 billion through a rights issue of equity shares and non-convertible debentures. Further, it will issue warrants that will be convertible into equity 12 months after the rights offering. This should raise an additional Rs7.8-9 bn. However, these rights offerings
will dilute earnings by 30%.

MS forecasts a 29% earnings CAGR in F2007-09, EPS (more…)

Last month we had coverage on VOLTAS Ltd by Citigroup and Edelweiss. Now Indiainfoline has upgraded the stock on the back of strong order backlog.

Voltas’ order book of Rs27bn for its electro-mechanical division ensures healthy revenue growth for next two years. Expect the electro-mechanical division revenues to witness 41.5% CAGR over FY07-09E driven by higher infrastructure spending in Middle East and boom in retail, IT and entertainment sector in domestic market. (more…)

JP Morgan has downgraded National Aluminum Company Ltd – NALCO with an underweight rating. NALCO stock price shot up by by almost 42% over the past fortnight. Following the stock price surge, Nalco is now among the most expensive aluminum companies, globally. JP Morgan sets a downward target price (more…)