Equity Research
Indian Companies carrying Extremely High Valued InvestmentsFebruary 8, 2010
Here is a study to compare the market value of listed investments of companies with their own market capitalisations. The objective is to identify stocks where the capitalisation of holding companies may have lagged the increase in value of listed investments. The analysis also ignores factors like holding company discounts, liquidity issues, etc
There could be other issues (liquidity, large debt, operational issues to name a few) which may have led to a company trading at a discount to value of investments Read More »
State Bank of India – Better is the Only WayFebruary 1, 2010
Post somewhat disappointing results from India’s Largest Bank, the State Bank of India analysts believe that going forward, the bank has to only get better, though it maybe gradual process.
SBI’s headline profits were 5% below our (and consensus estimates); operationally too, it lacked meaningful direction. While there are signs of improvement – expansion in net interest margins, further improvements in deposit mix and healthy fee income growth. Read More »
Indian Markets / Economy & Macro / Sector Research
Equity Outlook – Buy the Sell Off – HDFC BankFebruary 8, 2010
Here is the outlook of Indian Equity Market by Analysts of HDFC Bank’s Private Wealth Management Group – largely in-line with other fund managers of the HDFC Group [ Mutual Fund and Insurance]
India’s overall growth remains robust led by a strong performance in the Manufacturing and Services segment due to visible improvements in the consumption demand. India remains amongst the fastest growing economies globally inspite of lingering concerns on the global front. Q3FY10 results came on expected lines with no major surprises. Union Budget & International events is likely to provide further direction to the markets. Read More »
Strategy – Market Correction Inevitable – BNPFebruary 3, 2010
IN a report BNP Paribas analyst compares the recent RBI move to a Zugzwang move – Compulsion to move. Just like how Credit Suisse came up with a bold report to downgrade India, BNP Pribas is of the view that a correction is inevitable. Read More »
Corporate Earnings News
Milk and Dairy Products – Another Potential Inflation Sparker ?February 8, 2010
India is the world’s largest milk producer, at 112mn tonnes currently. However, drought conditions, tighter feed and water availability have resulted in only a moderate growth in output; while demand has continued to rise due to shifting food patterns.
The key drivers of the upturn in India’s inflation so far have been primary articles (cereals, pulses) and manufactured food products (sugar, edible oil cakes). While we have highlighted the risk of higher Read More »
No Profits Insight for Oil Marketing Companies
February 4, 2010
The Kirit Parekh report suggests the government to deregulate gasoline and diesel prices, increase kerosene price by Rs6/lit and raise it every year, and increase LPG prices by Rs100/cylinder and revise upward periodically. These suggestions are largely in line with the recommendations of earlier committees. We believe the suggestions are likely too aggressive to be implemented in current form, given inflation concerns, implementation issues and political considerations. Read More »
IPO Reviews
Vascon Engineers + Aqua Logistics and Other ReviewsJanuary 28, 2010
Due to some personal work and migration of the blog to new publishing platform, we have posted the reviews of IPOs on the Forum.
You can read the review of Syncom Healthcare, Vascon Engineers, and Aqua Logistics . WE hope to be back to publishing individual reviews soon. Brokerage / Analyst reviews will continue on the Forum.
Mutual Funds in India
How does the Mutual Fund Industry Look Like ?January 9, 2010
Total AUM at INR 7.75 tn; assets worth INR 1.47 tn added in October with mere INR 1.92 tn Equity AUM; dipped INR 0.10 tn (down 5%) M-o-M. The ratio of large-cap AUMs to mid-cap AUMs was at 0.83 in October versus 0.85 in September.
Large-cap funds have increased exposure to banking, FMCG, pharmaceuticals, engineering, and reduced it in oil & gas , IT, telecom and cement. Banking seems to be a favourite among large-cap funds. Read More »
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