Indian Equity Research and Investment Strategy
Anand Rathi has reiterated its BUY rating while covering ABG Shipayrd with the Stress Case / Worst Case scenario.
ABG recently announced that it has deferred fund raising for Surat II, make us believe the project would be delayed, the same has not been included in Analysis. Further, expect the new capacity being built globally lead to tough competition in the industry. Thus assuming ABG’s utilization to fall to 70% FY12 on. (more…)
The Indian Inflation as measured by the WPI rose to 11.63% for the week ending Jun 21 v/s 11.42% last week and 4.32% a year ago.
Of the headline 11.63% WPI number, 2.42% is attributed to primary articles, 5.7% to manufacturing and 3.5% to the fuel index. The worst part of this Inflation Saga is Upward revisions to the index has continued, with the April 26 data being revised up ~70bps from 7.61% to 8.27%.
Inflation is likely to remain in double digits and we expect RBI to hike the repo rate by another 25bps.
In a pre-election year, in the midst rampant market concerns of an infrastructure capex slowdown NHAI has indicated that it does not foresee any slowdown in spending.
NHAI indicated that public funding is a non-issue due to contributions from various sources 1] Cess on oil bill 2] Funding from multilateral agencies, and 3] Issuance of capital-gains tax exempt bonds under Section 54EC. Moreover as per NHAI, big players like Macquarie, L&T, IDFC and other Middle-Eastern companies have continued to bid and win road projects despite the sharp slowdown in equity markets.
L&T with its healthy balance sheet and superior execution skills is likely to bid and win projects from NHAI. Punj Lloyd in the midcap space is likely to be a tough competitor.
The Indian market has corrected by a whopping 35% since the Jan-08 highs, one of the biggest drops in Asia and Emerging Markets. Inflation is at a 13-year high and fiscal deficit pressures have overshadowed fears of a US recession and a drop in global risk appetite. (more…)
DLF Ltd the company which has cheated its old investors and is not very professional in management now feels that its stock price is below its intrinsic value and wants to BUY Back its own stock. (more…)
With today’s Carnage in the Market, Fund Managers are back to the old school of thought, valuation based investing – Dividend Discount Model, etc. We are presenting you with some of the best dividend yielding stocks. However, for an Individual and Retail investor, we do not recommend BUYING them just for this purpose, but you can continue to hold if you already own them. (more…)