As per estimates, the global equipment supply situation is expected to remain tight in the short to medium term. Global manufacturers such as Alstom have upgraded their global capacity addition estimates. There is a 28% deficit between target and MW under construction/commissioned for the XI Plan with 92% of this gap of 21,783MW in thermal capacity addition in India.

UBS upgrades BHEL’s earnings estimate to Rs 66.66 and Rs 94.7 for FY08 and 09 respectively. UBS also upgrades the target price of BHEL to Rs 3030. However the stock has been downgraded to NEUTRAL from BUY recommendation. Citi has a price Target of Rs 2,960 on BHEL.

DLF Ltd:
DLF sold stakes in 69msf of mid income home projects in Chennai, Bangalore, Indore, Kochi, Panchkula to a set of private equity investors. In addition to the one-time cash flow of Rs16.75bn and the profits earned to the extent of their stake in the projects, DLF would earn project management fees (PMC) of 7% of sales, and land acquisition fees. DLF will also open India’s first Luxury Mall in Delhi – DLF Emporio.

Price target of Rs 975 is based on 10% premium to the 12m forward NAV. Of this, residential is 27%, commercial 52%, retail 15%, hotels 3% and Bidadi 3%. At a 15% premium to NAV, the price target would be Rs1,020. UBS Maintains a NEUTRAL rating on the stock.