The much anticipated JV for supercritical boilers with Babcock and Wilcox was announced on 10 March 2010. The JV (51:49) intends to set up a new 3 GW per annum boiler manufacturing facility at an investment of Rs7.6 bn. Of this, equity contribution from Thermax is anticipated to be Rs1.75 bn. With sufficient cash reserves (Rs7.2 bn in 2Q), even after the Purolite settlement, Thermax should be able to fund capex through internal resources. (more…)
Month: March 2010
Opportunities in Indian Infrastructure Galore
All the infrastructure companies are upbeat on the immense opportunities available in the segment. Reliance Infrastructure, for instance, plans to bid for more road projects. As highlighted in our pre-conference note, private sector involvement in infrastructure development has expanded to ‘non-traditional’ areas such as metro, airports and even power transmission. Lanco plans to ramp up its generation capacity to benefit from the prevailing high merchant power tariffs. (more…)
Mahindra & Mahindra + Reliance Infra – Sum of Parts Valuation
Is the sum of the parts greater than the whole ? We wi8ll have a look at looks at discounts to NAV as well as stub values for each holding company. Today we will analyze, Mahindra & Mahindra and Reliance Infrastructure.
Mahindra & Mahindra:
Mahindra & Mahindra rallied late in 2009 on strong auto sales in India before correcting early this year on a 3QFY10 earnings miss. We believe the auto momentum should continue and current stub values are attractive after the correction. (more…)
Aurobindo Pharma – Buy the CRAMS Story
Aurobindo Pharma Ltd (APL) has launched a new division, AuroSource, to provide contract research and manufacturing services to innovator pharma & biotech companies. It intends to position itself as a provider of manufacturing (intermediates, APIs, pre-formulations and formulations) and research services across the life cycle (from pre-clinical to commercial stages). At a later stage, APL would also look at providing medicinal chemistry and other discovery services. (more…)
IL&FS Transportation Networks Limited – Subscribe Long Term
IL&FS has been engaged in road sector projects since 1993 as a sponsor, developer or investor. For consolidating its project portfolio in the surface transportation sector, ITNL was promoted by IL&FS in 2000. IL&FS Group currently holds 87.5% in ITNL. (more…)
Vardhman Textile – Review
MF Global Securities has initiated Coverage on Vardhman Textile Ltd [VTXL] with a BUY Rating. The investment Rationale behind the call is the deficient cotton production & increase in consumption, will keep cotton price at higher levels & as India has excess production Indian miller who have pricing power can pass on the increasing raw material price to Yarn & Fabric consumer. The rise in production is because of rebound seen in yarn and textile demand. (more…)