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. Read 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. Read 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. Read more

Apar Industries – Riding Capital Goods Boom

Apar Industries is one among the best-established companies in India operating in the diverse fields of electrical, metallurgical and chemical engineering.

Consolidation of conductor manufacturing plants – The company will continue to invest and maintain its leadership position as  a direct beneficiary of the robust growth emerging in India’s power sector.

Increased focus on the export of specialty oils – Its specialty oils business strengthened itself through approvals of new generation transformer oils from global OEMs like Areva, Siemens and ABB. Read more

Strength in JK Cement – Buy

J.K. Cement Ltd (JKCL) is a prominent cement player in North India (in top 6) and the second largest manufacturer of white cement in India after Grasim. JKCL is set to become a pan India player with its new cement capacity (3 mnT) in South. JKCL’s total cement capacity is likely to reach at 7.5 mnT in April’10 apart from 0.40 mnT of white cement. Read more

Buy Automotive Axles – HDFC Sec

Kalyani Group company Automotive Axles (AAL) is well placed to benefit from the ongoing recovery in medium and heavy commercial vehicles (MHCV). AAL’’ product portfolio consists mainly of higher margin axle assemblies, while it also manufactures axle housings. It is is India’s largest independent manufacturer of rear drive axle assemblies and its top clients include Ashok Leyland and Tata Motors. Read more

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