Equity Research
HCL Technologies on a Roll + Robust Deals – Re-Rating ?April 21, 2012
HCL Technologies is the Second Best IT Stock on Dalal Street after TCS in the last 4 years. It has registered among the strongest growth in the sector over the past year or so and its relatively low-margin base also provides some cushion. The company reported consolidated revenue up by 2.5% qoq to US$1.05bn led by IMS (+5%) and BPO (+6%); software services grew a slower 1.5%. EBITDA margin at 18% (-13bp qoq). PAT up 5% qoq to Rs5.8bn.
This set of numbers should assuage some Read More »
HDFC Bank Sailing Smooth as Ever – Rating Must be Higher than Sovereign RatingApril 20, 2012
This is one Company and Group [HDFC] which is very cautiously managed yet Grows above its Sectoral Average and Deserves a Rating Higher than Government of India’s Sovereign Rating. No Kidding!
HDFC Bank reported 4Q earnings of Rs14.5bn, up +30% yoy led by topline and lower provisions, as asset quality continues to remain comfortable. Topline grew +19% yoy driven by 22% loan growth and margins holding-up at 4.2% yoy on rising share of retail loans. CASA remains high at 48.4%. Core fee income grew +24% yoy, ~85% from retail. Read More »
MindTree – Impressive Margins in FY2012 – Sustainable ? Differing ValuationsApril 19, 2012
MindTree reported modest results for 4QFY2012, with OPM and PAT coming in ahead of expectations. The company reported a 4.9% qoq increase in volumes. MindTree reported revenues of US$105m (+1.3% qoq, +22% yoy). EBIT margins surprised positively and improved to 15.5% (+161bps qoq, +895bps yoy). Net income grew to Rs689m (+14% qoq, +115% yoy).
Management Outlook: While the recent weeks saw deterioration in the spending environment and management expects lacklustre growth for 1HFY13, it Read More »
Indian Markets / Economy & Macro / Sector Research
FIIs India Equity Strategy – GAAR / Tax Issues / Policy ParalysisMay 3, 2012
After Deepak Parekh’s return from Singapore, many Indian brokerage houses sent their Equity Chiefs to Global Financial Centers – London, New York, etc to engage their Foreign Clients. Here is the outcome of the meeting of Equity Strategists on Indian Markets.
FIIs are still very interested in the India Growth Story, but are fed with the Policy Paralysis. Moreover, they can’t understand how the Indian petty political system can deliver Read More »
India Loses Sheen with Foreign Investors + High Inflation Lower GDP Growth FY2013 – Deepak ParekhApril 22, 2012
HDFC Group Super Chairman, Mr. Deepak Parkeh last week met Large / Mega Foreign Investors at Singapore and in an interview with CNBC TV-18 discusses the state of Indian Economy. Here are the most important points Mr. Parkeh touched upon.
Inflation / Subsidies:Inflation is not under control and RBI kind of swallowed a bitter Pill on cutting the repo / reverse repo rate by 50 bps. Food Inflation is still very High. Fuel [Petrol, Diesel, LPG] and Fertilizer subsidies has gone through the roof. A Marginal increase in Rail fare was rolled back. India’s Subsidy bill is going to increase, increase and increase. Who will fund the Gap ?
Deposits / Loans:Deposit Growth has been lowest in the last few years. Read More »
UBS Downgrades India to Neutral – Overweight on China & KoreaApril 20, 2012
Since the the beginning of 2012, India and China dominated performance in Asia. UBS stepping in the shoes of a Bull in India, thought by the end of February that this market was too advanced, particularly in light of the UP and Other election, budget and seasonal tightness in liquidity. Since mid February, India has given up most of its relative gains for the year, China is now under-performing. Read More »
Corporate Earnings News
Mr FM Pranab – How many more Monsoons do you need to Cool WPI ?May 14, 2012
India’s headline inflation rate (Wholesale Price Index, WPI) accelerated to 7.23% YoY in April 2012, compared to 6.89% YoY in March 2012. The acceleration in headline inflation was driven by higher food inflation, which was in turn driven by higher prices of vegetables and oilseeds. The final inflation data for February 2012, was revised higher to 7.36% YoY from 6.95% YoY reported earlier.
Food articles moved substantially higher to 10.5% from 9.9% last month, due to an upturn in vegetables, pulses, and cereals. Manufactured FOOD prices edged higher to 6.5% in April from 5.9% the previous month.
Non-Food Articles were back Read More »
Rise of Regulators in India – Competition Commission of India
April 25, 2012
In our recent report, on the emergence of United States of India, we had written about the rise of Regulatory Powers to Curb Corruption at High Places including Central Government Ministries. We’d like to prove one such point involving the Food Corporation of India which for over 8 years bought Supplies from 3 companies and everybody from the Food and Civil Supplies Ministry to the CEO of the company were hand in Glove in the operation.
CCI – Competition Commission of India – IN CCI’s report dated 23 April 2012, Read More »
IPO Reviews
Samvardhana Motherson Finance Ltd – SMFL Review + RecommendationsMay 2, 2012
Samvardhana Motherson Finance Ltd – SMFL is open for Subscription from Today until May-4th. WE are AVOIDING the IPO even though their is a Grey Market Price of Rs 2400 for a Rs 2 Lakh Application. Here are the various Views of Research Analysts who have studied the IPO.
At the lower end of the band, on a trailing basis, without considering the impact of the upcoming dilution, Read More »
MCX India IPO – Revival of the Sluggish Primary Market ?
February 22, 2012
Multi Commodity Exchange (MCX), is the largest commodity exchange in India with 80% market share and 5th largest commodities exchange in the world is offering shares for sale by existing investors to comply with the regulatory requirements.
MCX Core Business – MCX offers trading in 49 commodity futures including bullion, ferrous and non-ferrous Read More »
Mutual Funds in India
Sundaram BNP Paribas has the Worst IT Systems and Customer CareApril 3, 2012
I normally never write against somebody unless they are really terrible. Today I would like to prove how bad is Sundaram BNP Paribas Mutual Fund operating in India. Sundaram BNP Paribas has the worst IT Systems and Customer Care. In this age of Web services, where even Karnataka Government is delivering Online Services towards Citizens, lethargic IT Managers at Sundaram BNP Parbias Mutual Fund operate with the Cover Your Ass attitude without any accountability or responsibility even when a customer is seeking for help badly.
If you call their help line 1-800-425-7237, it goes to a Voice Mail. Makes me wonder is their only one person answering the Read More »
Gold Can Threaten SENSEX But Not Our Recommendations of Equity BasketJanuary 26, 2012
For a minute even I was surprised as I saw the report of Gold beating SENSEX as I had a quick glance on the table of Jr. Analyst. However, it is well known fact that our Recommendation of Equity Basket has outperformed the Gold in 15 year period. We have to prove the same else get our office decorated with Eggs and Rotten Vegetables 
You all know that we have recommended investments in HDFC Top 200 Fund, HDFC Equity Fund, HDFC Tax Saver Fund, Reliance Growth Fund etc. Let us see their Read More »
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