Category: Equity Research

CLSA has come up with midcap investment ideas for the Indian market. Here is an overview. The following companies have been covered Adlabs Films, Balaji Telefilms, Bharat Electronics, Everest Kanto Cylinder, Exide Industries, Opto Circuits, Redington India, Saregama, Sintex Industries, Television 18, Welspun Gujarat and Zee News.
The chart below shows various ratios and figures such as EPS, (more…)

Kotak Securities just a while ago has changed the recommendation on Gas Authority of India Ltd from ADD to REDUCE. There is no real reason for the re-rating of the stock.

The increase to the street’s expectations of likely steep increase in GAIL’s earnings from its proposed investment (Rs180 bn) in new pipelines. Expect GAIL’s gas transportation volumes to jump up sharply beyond FY2010E but our view of the stock is tempered by (1) potential inimical gas pipeline transportation regulations, (2) unsustainable nature of earnings of LPG and petrochemical businesses and (3) short-term negative surprise from potential increase in subsidy burden.

Here is the Sum of the Parts Valuation of GAIL and Target Price (more…)

Credit Suisse continues to be optimisitc about the performance of Capital Goods Sector in India. Here are the top recommendations form the sector and their TARGET PRICES.

For ABB, around 33% of revenue and 43% of PAT accrue in the last quarter of the year. During the nine months ended September, ABB has registered revenue of Rs40.9 bn, which, extrapolated for the full year, is in line with our estimates. The stock is relatively stable and maintain OUTPERFORM rating with a DCF-based (more…)

With Anil Ambani’s nexus in the Telecom Ministry becoming obvious form out of turn favors Reliance is receiving, causing a huge loss to Government exchequer. Sunil Mittal is not going to sit quiet this time and refused to withdraw the petition filed against DoT.

However, here are some mixed views from Research Analysts on the stocks of Bharti Airtel and Reliance Communications.

HSBC Global Research:
Solid 2Q08 results; strong subscriber growth and margin expansion offset by 6% q-o-q drop in ARPU. Increase capex forecast; more towers to be built to meet higher subscriber targets imposed by regulator. Maintain Overweight but trim DCF-based target price by 3% from (more…)

ICICI Direct has initiated coverage on two of North India’s large realty players, Parsvnath Developers and Unitech Ltd with a Outperformer and Performer rating.

Parsvnath Developers:
Parsvnath Developers is developing more real estate than any other realty company in India. Parsvnath has a pan-Indian presence across 47 cities in 17 states. It is developing 153 million sq ft of saleable real estate over the next 4-5 years. Its land bank is mostly fully paid up and has clear title. Further, the cost of its land under development is about Rs 260 per sq ft.

The 153 million sq ft the company is developing is spread over 33 residential project (32.63 million sq ft), 22 commercial project (4.73 million sq ft), 18 integrated townships (77.55 million sq ft) and 4 IT parks (6 million sq ft). ICICI believes the company will be able to withstand any downturn in any segment by having presence in all segments. (more…)

Canara, Corporation and Oriental bank have reported weak numbers in their core business [Banking], yet DSP Merrill Lynch in a report has different recommendations for each of the stocks.

Canara Bank:
Canara Bank’s 2QFY08 PAT, although in line with estimates at Rs4bn owing to higher than expected other income and lower provisions, has shown lackluster topline performance. Topline has de-grown by 20% yoy and 12% qoq on the back of margin pressure. Margins have collapsed by 18bps qoq and 79bps yoy to
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