Indian Equity Research and Investment Strategy
Petronet LNG (PLNG) is the largest LNG re-gasifier in India. The company has a unique risk-free business model, generating revenues by charging re-gasification margins. Its supply and demand side risks are hedged through a long-term sourcing contract from Ras-Gas Qatar and off take contracts from three of its heavyweight promoters – GAIL, IOCL, and BPCL.
A massive impetus in US shale gas production recently has plugged the country’s demand-supply gap. With US LNG imports dipping (more…)
Unitech has filed the amalgamation/de-merger scheme document for de-merger of its infrastructure businesses into Unitech Infra (de-merged entity) and amalgamation of two wholly owned subsidiaries of Unitech – Unitech Holdings and Aditya Properties
(Aditya Prop.) with Unitech
Post amalgamation, Unitech’s non-real estate businesses will be de-merged into Unitech Infra (comprising amusement parks, hotels, construction, telecom, transmission towers, property and township management, SEZs, IT parks and industrial parks). (more…)
HDFC Robust growth of 62% in new residential loans led to a 17% loan book growth after sell-down of some part of the loan book. While new developer loans data were unavailable, we believe overall disbursements (new loans) grew 25-30% in 1QFY11. Home loan spreads, too, grew from last year to 2.34%. Fees and capital gains are typically lumpy and hence acted as a (more…)
Indian airline passenger traffic came in at 4.57 mn passengers for the month of June’2010 showing a strong 21.4% YoY growth broadly in line with our view. Sequential drop of 4.5% in traffic was on account of seasonality. YTD industry has shown a growth of 23.1% in FY11 at 13.6mn passengers. We expect the industry to show a ~15% growth for FY11, at 53 mn passengers. Seat factors for most airlines (more…)
Tata Consultancy Services (TCS) reported 8.1% sequential volume growth (highest in past 11 quarters), 6.4% USD revenue growth and EBITDA margins at 29.3% (decline of only 60bps) – all ahead of our and Street’s expectations. TCS’ Q1 results have clearly surpassed that of Infosys on multiple counts such as volume growth, large deal wins, pricing movement and operating margin performance.
EBITDA outperformance and lower foreign exchange loss led to net profits (INR 18.4bn) well ahead of our expectations of INR 17.1 (more…)
Anad Rathi has initiated coverage on Ester Industries which produces PET films & Engineering plastic, whereindemand and realizations are moving northwards in recent past. Company’s utilization levels are more than 100% for PET film andlooking to realization trend in last 6 months, this division will be a big money spinner for now. The company is also doubling the capacity of PET Films, which maybe commissioned by the end of calendar year 2010. Engg Plastic division which caters to Automobile, Engg & Electrical segments is also doing well.
Over 80% revenues come from PET films, where (more…)