Lehman Brothers equity research has initiated coverage on Goldmines of the Indian Capital Market, PSU banks. Lehman has a OVERWEIGHT rating on Punjab National Bank, Canara Bank, Bank of Baroda, United Bank of India and Indian Overseas Bank.
Expect a positive delta in operating metrics vis-a-vis the trend seen in the past three years, supported by a benign operating environment. These banks are currently trading at a material discount to SBI, which we think is unjustified. Note that this valuation gap has emerged only since April 2007. These Public sector banks are trading at an unjustified discount to private sector banks which is unjustified.
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Month: December 2007
Matrix Labs Tentative FDA approval from President’s Plan
Matrix Laboratories has informed us that it has received tentative approval from the U.S. FDA under the president’s emergency plan for AIDS relief (PEPFAR) for its ANDA for tenofovir disoproxil fumarate tablets, 300 mg. The company’s tenofovir disoproxil fumarate is the first and only generic tentative approval of Gilead Sciences Inc.’s viread tablets, 300 mg.
The company’s ANDA was tentatively approved in less than six months and is the seventh PEPFAR tentative approval earned by the company within the last 12 months. Under PEPFAR, a tentative approval means that a company can immediately sell an HIV / AIDS treatment outside of the United States. Although existing patents / marketing exclusivity prevent the approval of the product in the United States, a tentative approval indicates that the product meets all safety, efficacy and manufacturing quality standards for marketing in the United States, which helps to ensure AIDS patients abroad who receive these medications get the same quality product as the American public.
Tenofovir disoproxil fumarate will help to meet the urgent and increasing need for high quality, affordable treatment in the developing world where the prevalence of HIV / AIDS is socially and economically devastating.
India Model Portfolio – Morgan Stanley Vs Merill Lynch
Here is a Model Portfolio and weight ages across different scrips and sectors. Both Merill Lynch and Morgan Stanley have slightly different views when it comes to Industrials / Cement. Merill Lynch is more bullish on the segment than Morgan Stanley [MSCI]. Rest of the sectors both have comparable views. (more…)
Jet Airways to fly to Toronto and New York
Jet Airways will introduce a daily flight from Chennai to Toronto and New York via Brussels with effect from 06 December 2007. At Brussels, flights will be synchronized in order to provide passengers seamless transfer between Delhi, Mumbai and Chennai to cities in North America – New York (JFK), Toronto and New York (Newark). Jet Airways will be offering a special inaugural economy return fare of Rs 36,000 plus taxes. Premiere class return fares start from Rs 1,57,500 plus taxes.
Jet Airways in partnership with Brussels Airline allows passengers to choose to fly to 54 European destinations which includes destinations like Venice, Frankfurt, Stockholm, Rome, Munich, Madrid and Geneva. Jet Privilege members can also earn and redeem JP Miles on all the routes of Brussels Airlines.
Jet Airways will use a brand new Airbus 330-200 aircraft on this route, which carries its passengers in a two-class layout and offers unprecedented levels of luxury, privacy and comfort in the air. The Airbus 330-200 aircraft has been especially configured for international operations with 30 seats in premiere class and 190 seats in the economy class. This next-generation aircraft promises to offer unmatched international experience in premiere and economy class.
Gammon India agreement with Mumbai Port Trust
Gammon India has announced that Indira Container Terminal the special purpose vehicle incorporate by the consortium of Gammon and Dragados S.P.L on 03 December 2007 signed the license agreement with the Mumbai Port Trust for developing the Mumbai offshore container terminal project.
The estimate project cost is about Rs 800 crore in the initial phase of 3 years and another Rs 400 crore subsequently, thus aggregating about Rs 1200 crore. The project is on a BOT basis for 30 years, including 3 years of construction & equipping period, from the date of signing the license agreement.
BUY HCL Infosystems – Citi
After a long time we have a BUY call on a front line IT stock. Citi has inititated coverage on HCL Infosystems [HCLI] with a BUY rating. HCL Infosystems is a HCL group company mainly focused on hardware and systems integration business. HCLI is a play on government and domestic industry tech spending.
HCL’s primary product offering is personal computers – both desktop and laptops – to the consumer and commercial markets. The consumer market consists of retail buyers including SOHO (Small Office/Home Offices) and small-scale enterprises, while the commercial (more…)