April, 2014 | Dalal Street

Equity Research

4 MidCap Stocks Not Yet Rallied – Hold

April 26, 2014April 18, 20202 min read

The 4 Mid Caps which are beaten down but still have good operating ROEs and hold potential of an earnings recovery 12 months out. The stocks have been beaten down over the last 4 years but incrementally are reducing debt and sales growth has been positive. EPS revisions over the last 2 quarters too seem to have stabilized albeit at a lower level. Free cash flow is also positive implying scope to de-lever from underlying operations.

Indian Hotels Peak supply in the domestic market in our view is over and a large part of the company’s capex is coming to an end. Any improvement (more…)

Equity Research

Sadbhav Engineering – On a Strong Footing

April 25, 20141 min read

Sadbhav’s overall operational projects portfolio could potentially have an equity IRR of about 16% and P/B valuation of about 2X. This is despite the near-term traffic / toll collection disappointments witnessed in the projects, attributed to the broad economic slowdown, and some one-off issues (in Aurangabad-Jalna project).

Sadbhav’s under-construction projects require an incremental equity commitment of Rs 3.8-4 bn, to be infused over the next (more…)

India IPO Reviews and Updates

Wonderla Holidays – IPO Review / Recommendation

April 21, 2014May 19, 20142 min read

Wonderla Holidays Ltd (Wonderla), founded in 2002, is one of the largest amusement park operators in India promoted by the same promoters as that of V-Guard Industries Ltd. The company, currently, owns and operates two amusement parks under the brand name ‘Wonderla’. The company also owns and operates a resort besides an amusement park in Bengaluru under the brand name ‘Wonderla Resort’, which has been operational since March 2012.

Wonderla has a proven track record of managing amusement parks with established brand equity. The company has been able to maintain high standards of safety and hygiene, which has been able to attract organized visits from schools, colleges and corporate segment.

Wonderla has developed an in-house (more…)

Equity Research

IndusInd Bank Performance above Expectations

April 17, 2014April 18, 20202 min read

Indusind bank reported a strong growth of 29% YoY in PAT, driven by NII growth of 18% YoY and slower growth of 20% YoY in operating cost. Non-interest income growth was strong at 42% YoY, driven by core fee income, forex income and Investment banking fees.

Loan book grows healthy at 24% driven by working capital loans with the corporate loan book, reporting a growth of 38% YoY. CASA improves (more…)

Breaking Corporate India Earnings News

What are the Views of FIIs on Indian Lok Sabha Polls ?

April 12, 20143 min read

Every Opinion Poll in the country points towards a change in the leadership of Indian democracy from “The Accidental Puppet Prime Minister of India” towards a business & progressive Shri Narendra Modi. Here are the various Voice of FIIs who have bet heavily in Indian equities on the back of opinion polls,

UBS in a Report said,

Opinion polls have been the key catalyst for markets, as expected, in 2014. The last ones were released at the end of last week and voting (more…)

Economy, Markets and Macro Views

RBI Favors Gradual Lifting of Gold Import Curbs on Indian Banks

April 10, 20142 min read

The Reserve Bank of India (RBI) has allowed five more banks to import gold to ease the restrictions that have been imposed on the precious yellow metal last year.

The RBI has permitted gold imports by Axis Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, and Yes Bank.

The 80:20 rule that was imposed on gold last year states that 20% of all gold imports in India have to be re-exported. Under this rule, only (more…)

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