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While 10 such offers have been announced recently, not all provide investors an opportunity to gain from
STOCK REVIEW: Reliance Infrastructure
With Mundra incurring losses and resolution of higher costs not likely soon, stock could feel pressure
While business prospects look healthy, aided by rising volumes and forward integration into steel making, stock valuation is also attractive at current levels
Timely project execution raises confidence of achieving ambitious capex target in 12th Plan, which should reflect in robust earnings growth
But attractive valuation of 0.5 times price/book value has turned analysts positive on the stock
A fall in consensus earnings estimates for 2012-13 will make markets appear relatively expensive: Analysts
Forays into new markets and segments, product launches and focus on contract manufacturing should mean earnings growth of 25-30% in the coming years
Interview with Director, investment specialist, Asia-Pacific, West Asia and North Africa, Deutsche Asset Management (Australia)
While infrastructure stocks have run up, analysts recommend diversified and quality companies such as Larsen & Toubro, which are best-placed to gain from higher infra spends
While the Sensex is down 20% since 2008, more than half the index?s constituents have delivered 3-192% returns
With the availability of land on the decline and environmental issues taking priority, entry barriers across industries are rising. This will make existing businesses quoting below their replacement value attractive
Based on current valuations, experts say the stock is expensive and the expected offer will have to be priced at a discount
Performance to feel heat of slowdown in order inflows & rising competition