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| Last Updated 09-NOV-09 |
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| Analysts' corner |
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| IVRCL's second quarter numbers were in line with expectations. IVRCL revenues grew by 11 per cent in H1 FY10, much lower than the full-year guidance of 30–35 per cent. However, the management stands by its guidance, given that H1's revenue booking was hampered by slow execution of its projects in Andhra Pradesh due to elections. ...Read |
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| Analysts' corner |
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| During September 2009 quarter, GMR Infrastructure reported revenues of Rs 1,200 crore, up 41 per cent year-on-year (y-o-y). However, net profit after minority interest of Rs 54.9 crore was down 50 per cent y-o-y due to several one-time items like Rs 9.5 crore of write-back of depreciation towards Vemagiri project and Rs 12.5 crore of prior period service tax charge in Hyderabad airport SPV. On the operating front, its airport business witnessed momentum as passenger traffic grew on y-o-y basis by over 20 per cent at Delhi Airport and 8 per cent at Hyderabad Airport. In the road segment as well, most road projects which were under construction have entered operations phase and monthly annuity/toll collection stood at Rs 30.5 crore against Rs 11.6 crore in the quarter. ...Read |
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| Analysts' corner |
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| Adani Power (APL) is an interesting case of private sector entrepreneurship, capitalising on India’s persistent power deficits and exploiting high medium-term merchant tariffs which should reduce the payback of projects, and also having lower execution time cycles by using Chinese equipments. Also, progress on the 4,620 MW Mundra plant and the group’s experience in executing mega projects successfully does bolster the investment case. However, quite a few loose ends need to be tied, such as insufficient coal for the 6,600 MW of capacities for 25 years, coal mining license risk, fuel pricing for Indonesian coal from AEL and dependence on reasonable merchant rates to extract higher than regulated peer value. ...Read |
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| Analysts' corner |
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| Tata Power Company (TPC) has obtained open-access approvals to distribute electricity to suburban Mumbai thereby, enhancing its distribution strengths and enabling higher ROEs. Further, since Reliance Infra has not renewed its power purchase agreement (PPA), TPC has a 500 MW uncommitted generation capacity. ...Read |
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| The return of optimism |
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| Even six months back, few would have predicted the strong rally in the Indian stock market that has seen the BSE Sensex rise 112 per cent from its low point of March 2009. Analysts in India usually look for the domestic drivers of such dramatic swings (improved corporate performance, sharp industrial recovery, etc). While these are relevant and indeed important, it should not be lost sight of that markets across the globe have recovered from the sharp fall last year that followed the breakout of the global financial crisis; last week the Dow crossed the 10,000 mark. The rebound in markets around the world has been driven primarily by the liquidity that central banks have been pumping into their respective economies. ...Read |
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| Mid & small-cap firms to see single-digit growth |
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| Wide sectoral variations; good time for cement, automobiles and media. ...Read |
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| Analysts' corner |
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| In the next 18-24 months, Dr Reddy's could see news flow from a series of key products in the US – 'one off' (Starlix, Lotrel) as well as 'multi-year' (Prilosec OTC, Arixtra, Allegra D) limited competition opportunities. Some of these may manifest in the form of launches or settlements and exact timelines. ...Read |
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| Analysts' corner |
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| After months of negotiations, the potential merger between Bharti Airtel and MTN has been called off. This comes on the back of South African government's denial in accepting the deal structure proposed by Bharti and MTN. ...Read |
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| Analysts' corner |
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| On September 22, 3i Infotech decided to close the bid period for qualified institutional placement (QIP) and raised Rs 317.8 crore. The company would use the funds to retire debt, which would bring down its debt to equity ratio from 2.1 to 1.4. In terms of the equity base, the QIP issue would expand the fully diluted equity base by 23.4 per cent to 19.7 crore shares. ...Read |
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| The roller coaster ride of metals and minerals |
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| Metals and minerals without exception have been on a roller coaster ride since the beginning of 2008 with prices in many cases first rising to record levels only to fall rapidly, subsequently causing widespread distress.The swing in fortunes of commodities is a fallout of a big ticket financial crisis hitting the real economy. ...Read |
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| Analysts' corner |
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| Cost reduction at Mahindra & Mahindra’s auto parts business, Systech over the past one year is expected to reduce Systech’s breakeven level and help it to take advantage of any rebound in European commercial vehicle production. ...Read |
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| Analysts' corner |
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| The broking house believes that one of State Bank of India’s (SBI) biggest advantages is the high interest spread on its bond portfolio. The incremental cost of funds for SBI has fallen by almost 210 bps over the past nine months, whereas the incremental yield on its government-bond portfolio has remained more or less the same. ...Read |
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| Disclaimer: Research reports issued by brokerage houses are being re-produced with premission. Business Standard does not take responsibility for decisions based on recommendations made in these reports. As always, please consult your financial consultant before making any investment decisions.
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