Indian Equity Research and Investment Strategy
Welspun Gujarat Stahl Rohren Ltd., the 2nd largest line pipe company in the World has recently won orders worth Rs. 600 Crore for Pipes from its prestigious global clients.
It may be noted that Welspun very recently announced another order of Plates and Pipes worth Rs. 600 Crore. With the addition of these orders, the current order book of the company stands at Rs. 7,800 Crore without excluding the orders being executed in the current quarter. (more…)
The basic premise for the rally in sugar prices was led by the production deficit in India and Brazil, further supported by rising consumption from emerging markets, which depleted inventory levels to historical lows. However the prospects of higher Brazilian output, government intervention and lackluster follow up demand from key EMs has led to sugar prices cooling off by 30% globally and 20% domestically since Jan-10. With Brazilian output coming on stream by April-10, price recovery to previous high’s could be ruled out, unless there are extreme climatic conditions.
Brazilian sugar output for the 2010/11 season beginning April could increase by ~15%, driven by higher cane production and recovery (more…)
Instead of Research Leading the Stock Price movement, it always follows which makes it good for nothing. [Sometimes I feel that these Reports are Published purposely a day or two after the necessary price movement in the stock / Or after building favorable F & O Positions . We are doing Historical Research on the same and the findings will be published very soon here] Hindustan Unilever stock has corrected more than 15% and then the Analysts published their views. Here is why the stock has crashed when the market has hit a new 12 month high.
JP Morgan Said, (more…)
This aviation cycle commences with 5 meaningful players (vs. 3 in previous cycle). FSCs [full Service Carriers] have long argued that LCC [Low Cost Carriers] cost structures are very similar to FSCs, except that the former enjoy unit costs that are 15-20% lower, given greater seat density on fleet. We believe that capital costs, a reflection of balance sheet health, will be key differentiators in this cycle given that pricing will be far more important in the current cycle. (more…)
Lanco Infratech indicated that they synchronized Unit 2 of Amarkantak power plant and expect it’s commissioning during the next quarter. The synchronization of Unit 2 and consistent PLF for Unit 1 gives us more visibility on commissioning of Amarkantak power project. Further, calculations indicate the cash inflows of Unit 1 (since synchronization in May 09) have so far resulted in 21% reduction in capital cost.
Goldman Analysts expect the stock’s underperformance versus BSE Power index (14% YTD) to narrow in the medium term primarily (more…)
Indian Fertilizer sector stocks have recovered due to the allocation of natural gas, which has reduced cost and increased utilization levels of fertilizer plants. Many of these plants ran on expensive naphtha or FO / LSHS feedstock. Closed units are also likely to open due to this cost reduction. The consumption of fertilizers in India is expected to grow by 4% CAGR till FY12. Urea is expected to witness a supply deficit of 5.4mmtpa by FY12. Phosphatic and potash fertilizers also remain matters of concern due to the lack of indigenous raw materials.
De-regulation of Fertilizer Prices – While Urea was under mandatory pricing control under the New Pricing Scheme, Stage-III, the government recommended an MRP for DAP, MOP, MAP, TSP, SSP, Ammonium Sulphate and 11 other complex fertilizers under the (more…)