Indian Equity Research and Investment Strategy
Sun Pharma & Orion have settled their US patent litigations over Comptan & Stalevo (Parkinson’s disease). While it would enjoy sole exclusivity in Stalevo 100 & Stalevo 150, it would be the second generic entrant in other versions of Stalevo & Comptan.
Sun can sell 25/100/200 mg (Stalevo 100) & 37.5/150/200 mg (Stalevo 150) Stalevo tablets from 2 Apr 1 12 – will have sole (more…)
ITC’s launch in personal cream under the barand name – Vivel Active Fair is positive for ITC as fairness cream segment is worth ~INR 16 bn and growing at ~15% per annum.
Fairness cream is the largest part of skin cream (worth ~INR 43 bn) and we expect ITC to eventually enter other parts of skin care category. Vivel brand is doing quite well and ITC has launched the fairness cream as a brand extension which means marketing costs are not going to be very high. The product formulation of this cream is a result of R&D efforts over 3 years and is priced (more…)
IGL’s blended gas costs increased by INR 3.3/kg as gas prices were increased from INR 3840/tscm to ~INR 6300/tscm (USD 3.84/mmbtu). We had assumed IGL to increase ~INR 3/kg for consumers.
However, IGL has increased the prices by INR 5.6/kg. We believe that this move of IGL is due to the following reasons:
IGL has used the opportunity to pass-on higher price of RIL’s KG-D6 gas. We estimate that IGL needs to peg the selling price of CNG at (more…)
The Indian Finance ministry has unveiled Drat – 2 of the Direct Tax Code. We fail to understand if it is a Finance Bill or a High School Assignment conducted by the officials. Analysis and implications for Salaried / Small Investors after 24 hour hectic consultation with Tax Experts.
Capital Gains Taxation – Direct Tax Code -2001 [Draft] Capital gains to be treated as income from ‘ordinary sources’ for all taxpayers, including non-residents and taxed at applicable rates. The distinction between ‘ordinary source’ and (more…)
Corporate capital spending in India is likely to surprise on the upside. Capex plans for the next six months imply a 20% YoY increase in calendar 2010. According to the AlphaWise survey, confidence in the growth outlook drives capex – and 89% of corporates expect better domestic economic conditions in 2010 than in 2009.
Capex plans are focusing on productivity gains and brownfield expansions. Capex looks most sensitive to changes in growth (more…)
India’s industrial production rose 17.6% in April, beating market expectations on the upside by nearly 2.5 percentage points. It even came close to putting our own bullish 16% y-o-y number to shame. This reading, along with HSBC’s manufacturing PMI which rose in May, presents a very strong case for the RBI to tighten further and faster. The economy is clearly performing above potential, with capacity hitting constraints due to strong demand. It’s time to hike.
Capital good production, at 73% y-o-y, was the highest since the series began in April 1995. Consumer durables (37% y-o-y in April) (more…)