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Parsvnath Developers + Tata Chemicals

Wednesday, October 31, 2007

North India's realty major, Parsvnath Developers records 110.05% increase in net profit at Rs 102.77 crore Consolidated Revenue at Rs 412.71 crore, an increase of 40.67%. For the quarter ended Sept-07, the company reported - Consolidated revenue at Rs 412.71 crore, an increase of 40.67% from Rs 293.34 crore, Consolidated EBIDTA at Rs 161.22 crore, up by 114.09% from Rs 75.31 crore, Consolidated PAT at Rs 102.77 crore, an increase of 110.05% from Rs 48.93 crore and an EPS (non-annualized) at Rs 5.56.

Tata Chemicals Q2 results at a glance:
Income from operations (net of excise) up 11% at Rs. 1,255 crore compared Rs. 1,126 crore. Profit from Operations improves 9% to Rs. 209 crore from Rs. 191 crore. PBT at Rs. 207 crore compared to Rs 221 crore - PBT for the quarter is lower than the corresponding quarter last year mainly because of higher dividend income and foreign exchange gain in Q2 FY07. Diluted EPS (for the quarter): Rs. 5.61

Published by DalalStreet Business @ 6:06 PM  


Idea Cellular + Cairn Energy in Nifty

Its a very wise decision to include Idea Cellular and Cairn India Energy in the National stock exchange's Nifty-50 index. PSU telecom giant, MTNL and oil distribution company HPCL are the outgoing stocks.

Aditya Birla group firm Idea Cellular is a wireless telecom company, operating in various states of India. Idea Cellular was the first to offer flexible tariff plans for prepaid customers.

Cairn India is oil and gas exploration and production company. Cairn UK Holdings has 68.99% in the company.

Published by DalalStreet Business @ 1:07 PM  


McNally Bharat + Numeric Power Systems

McNally Bharat Engineering Company engaged in providing turnkey solutions in the areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, reported a rise in net profit of 87.5% to Rs 6 crore on 1.97% rise in sales to Rs 115.21 crore in Q2 September 2007 over Q2 September 2006.

At the current price of Rs 232.40, the scrip trades at a PE multiple of 35.53, based on Q1 June 2007 annualised EPS of Rs 6.54.

Numeric Power Systems India's number one uninterrupted power supply (UPS) company, reported 135.50% jump in net profit to Rs 10.62 crore on 71.10% rise in net sales to Rs 101.69 crore.

The current market price of Rs 746.90 discounts its Q2 September 2007 annualised EPS of Rs 84.12 by a PE multiple of 8.87.

Published by DalalStreet Business @ 12:03 PM  


HDFC Divests 26% stake to Ergo International

Tuesday, October 30, 2007

Housing Development Finance Corporation (HDFC) has agreed to sell 3,25,00,000 equity shares of Rs 10 each of HDFC General Insurance Company (HGICL) representing 26% of the paid-up equity capital to Ergo International Ag. Consequent to the said sale, the corporation would hold 74% of the total paid-up equity capital of HGICL.

The new partnership enables HDFC to successfully grow their existing general insurance operations and further leverage their outstanding brand and distribution strength. Entering the joint venture with HDFC underlines the ERGO Insurance.

Group's international expansion strategy and offers a direct entry into the Indian general insurance market. Andreas Kleiner, Member of Board of ERGO International AG responsible for Asia, expects a very successful and longstanding cooperation with HDFC.

Published by DalalStreet Business @ 5:31 PM  


Ashiana Housing recommends bonus issue

The board of Ashiana Housing has recommended an issue of bonus shares to the existing shareholders of the company by capitalization of its reserves in the ratio of 5:2 as on the record date which will be announced later.

The stock is up 5% and is currently traded at Rs 509.

Published by DalalStreet Business @ 12:21 PM  


HDFC slips after Q2 results

HDFC posted 75.60% rise on net profit to Rs 646.39 crore on 51.50% rise in total income to Rs 2205.75 crore in Q2 September 2007 over Q2 September 2007. The Q2 September 2007 net profit was boosted by an exceptional item in the form of Rs 313-crore profit from sale of entire stake in BPO arm Intelenet Global Services.

Loan disbursements rose 27% to Rs 14,275 crore in Q2 September 2007 over Q2 September 2006. The loan portfolio, including loan outstandings and investments in debentures and inter-corporate deposits for financing real estate related projects rose 24% to Rs 63,446 crore in Q2 September 2007 over Q2 September 2006.

At the current price of Rs 2760, the scrip trades at a PE multiple of 29.30, based on Q2 September 2007 annualised EPS of Rs 95.21.

Published by DalalStreet Business @ 12:04 PM  


House of Pearl tie-up with European brand Lerros

Monday, October 29, 2007

House of Pearl Fashions is planning a tie-up with European brand Lerros for its retail venture in India. The company will hold 60% equity in the SPV, which will be set up for the retail foray. Lerros will hold 40% equity. Initially, the company will open ten states in the national capital region and gradually increase the number of stores to 300 spread throughout India over a period of three years. The company also has its own brand in USA, DCC and Kool Hearts. It plans to combine its branding / designing experience with sourcing, knowledge to make a success of their foray in retail in India.

The company also recently won the best corporate social responsibility award from JC penny, one of its main customers. The company has a diverse customer-base and is serving over 90 retailers across the Globe.

This site has in depth Retail India Coverage.

Published by DalalStreet Business @ 7:17 PM  


Ranbaxy receives US FDA Approval for Valsartan

Ranbaxy Laboratories has received tentative approval from the U.S. Food and Drug Administration (US FDA) to manufacture and market valsartan tablets, 40 mg, 80 mg, 160 mg and 320 mg. Total annual market sales for valsartan tablets were $1.3 billion (IMS MAT June 2007).

Valsartan is indicated for the treatment of hypertension alone or in combination with other anti-hypertensive agents. Valsartan is also indicated for the treatment of heart failure (NYHA class II -IV).

Published by DalalStreet Business @ 5:03 PM  


IPO of ONGC's SPV ?

ONGC Petro-additions (OPaL) is the special purpose vehicle (SPV) formed by the company for the Rs 13,500 crore petrochemical complex at Dahej in Gujarat. Oil and Natural Gas Corporation (ONGC) holds 26% cent of the equity in OPaL and Gujarat State Petroleum Corporation (GSPC) enjoys 5% stake as a joint venture partner.

At the current price of Rs 1190, the scrip trades at a PE multiple of 13.80, based on Q1 June 2007 annualised EPS of Rs 86.22.

Published by DalalStreet Business @ 1:22 PM  


Power Grid forays into Philippines

Transco is the sole transmission company in Philippines. The Philippines government is planning to privatise Transco. Its value is estimated at $3.5-$4.6 billion.

Power Grid Corporation plans to acquire the special purpose vehicle (SPV) being floated to take over and manage the assets of the Philippines National Transmission Corporation (Transco) for 25 years. While Citadel, one of the largest private holding companies in that country with interests in aviation services, freight management and logistics and telecommunications, will hold 90%, Power Grid will hold the remaining 10% in the SPV.

The Power Grid board has already approved the acquisition of the 10% equity stake in the SPV. Apart from the Citadel-Power Grid combine, Terna of Italy, State Grid of China, Tenega of Malaysia and SNC Lavlin of Canada are also in the fray, along with local partners, the report added.

Published by DalalStreet Business @ 12:03 PM  


Deccan Chronicle + Cairn Energy India

Friday, October 26, 2007

Deccan Chronicle Holdings Ltd reported Q2 FY08 Net Sales at Rs 187.77 crore up 26%.
PAT at Rs. 82.60 crore up 28%. Buy back up to a maximum of Rs.250 crores up to a maximum price of Rs.250 per equity share (Face value Rs.2). The company also told that it is going for a Private placement in its 100% subsidiary Sieger Solutions up to 24%; Enterprise value Rs.1500 crores- Rs.1800 crores .

Cairn India, subsidiary of global eenergy giant reported a net profit of Rs 23.24 crore on total income of Rs 300.11 crore in Q3 September 2007. Figures for the corresponding previous period are not available. This is the first quarter that Cairn India is in Black :-) The company had reported a loss of Rs 71 crore in Q2-2007. Their are rumors that BP may BUY Cairn's parent company for 3.6 Bn pounds. Kotak Research maintains an Underperform rating on Cairn Energy with a target price of Rs 145 based on oil reserves / assets. While CLSA recommends a BUY on the stock with a price target of Rs 230.

Published by DalalStreet Business @ 9:12 AM  


BEML Receives Largest Order from Delhi Metro

Thursday, October 25, 2007

Just a while ago, we received communication from Bharat Earth Movers Ltd. They stated that they have secured an order from Delhi Metro Rail Corporation (DMRC) for manufacture and supply of 156 numbers state-of-the-art standard gauge stainless steal metro cars towards second phase of operation worth Rs 1144 crore. This order is the single largest historic contract BEML has bagged. BEML is also looking forward for an additional order of 36 metro cars from DMRC.

BEML's Rail & Metro Business Group has tied up with IL&FS for working as a consortium to bag metro projects in the country and BEML will supply rolling stock, spares and after sales service for metro projects. BEML & ILFS combine is also exploring the possibility to work on the city centre to international airport segment of Metro project at both Hyderabad and Bangalore Metro.

Published by DalalStreet Business @ 5:23 PM  


Marg Construction MoU with Malaysian company

Karaikal Port, a wholly owned subsidiary of Marg Construction has entered into a MoU with Pembinaan Redzai Sdn Bhd (PRSB), a leading Malaysian company engaged in management and operation of forest plantations, logging, saw milling, chipping and other downstream manufacturing and related activities. PRSB also undertakes civil engineering and construction works and project management services in Malaysia.

Meanwhile, New Chennai Township, its another wholly owned subsidiary has got regulatory nod for setting up a special economic zone for light engineering sector.

The current price of Rs 223.50 discounts Q1 June 2007 annualized EPS of Rs 17.86 by a P/E multiple of 12.51.

Published by DalalStreet Business @ 2:57 PM  


Reliance Capital Results - Not Good

Reliance Capital's net profit rose 20.41% to Rs 201.28 crore on 75.58% rise in total income to Rs 391.27 crore in Q2 September 2007 over Q2 September 2006.

Compare this with HDFC Bank, which reported a 40% growth in Net Profit. As an investor we are more confident in HDFC / HDFC Bank than Reliance Capital though we recommend adding those stocks only on market corrections.

The current price of Rs 1,822.40 discounts Q1 June 2007 annualised EPS of Rs 49.14 by a PE multiple of 37.08. Reliance Capital recently launched consumer loans for various purposes.

Published by DalalStreet Business @ 12:00 PM  


TVS Motors + Gujarat Gas + Areva T&D

TVS Motor Company's net profit declined 52% to Rs 11.92 crore on 23.6% decline in sales to Rs 823.42 crore in Q2 September 2007 over Q2 September 2006. The current price of Rs 56 discounts Q2 September 2007 annualised EPS of Rs 2.01 by a PE multiple of 27.86.

Gujarat Gas Company's net profit rose 82.8% to Rs 33.92 crore on 35% rise in sales to Rs 275.68 crore in Q3 September 2007 over Q3 September 2006.The current price of Rs 313.25 discounts Q3 September 2007 annualised EPS of Rs 21.12 by a PE multiple of 14.63.

Areva T&D India's net profit rose 39.5% to Rs 48 crore on 20.5% growth in net sales to Rs 432.60 crore in Q3 September 2007 over Q3 September 2006. The current price of Rs 2,087 discounts Q3 September 2007 annualised EPS of Rs 40.15 by a PE multiple of 52.19.

Published by DalalStreet Business @ 10:40 AM  


Arvind Mills + Cherokee in India

Wednesday, October 24, 2007

Arvind Mills which revamped its Flying Machine jeans brand is now joining hands with global retailers. Arvind Mills Ltd has informed us that Cherokee Inc., a leading global licensor and brand management Company that it has signed an exclusive international license agreement for its Cherokee brand with Arvind Mills. India's largest integrated textile company and retailer. This multi year agreement covers a wide range of categories including men's, women's and children's clothing, footwear, accessories, home and other categories.

Arvind Mills and Celebrity fashions also have contracts from Reliance Retail.

Published by DalalStreet Business @ 3:28 PM  


Merill Lynch Preferred Stocks

Here is a list of Most Preferred and Least Preferred stocks from Merill Lynch.

Top 3 preferred Stocks,
Lest Preferred Stocks,
This does not necessarily mean a BUY or SELL on the stocks discussed above. Dig through our research reports to take an informed decision.

Published by DalalStreet Business @ 2:36 PM  


Nitin Fire Protection Nod For Exports

Tuesday, October 23, 2007

Nitin Fire Protection Industries announced during the market hours today that company's subsidiary Nitin Cylinders at Vishakpatnam has received the NZS 5454 type approval required for exports of compressed natural gas (CNG) cylinders to countries like Pakistan, Bangladesh, Egypt etc. This will help company accept orders and export goods to these countries.

The current price of Rs 382 discounts Q1 June 2007 annualised EPS of Rs 4.63 by a PE multiple of 82.50.

Published by DalalStreet Business @ 12:06 PM  


Suzlon Energy Stock Split + Results

The board of Suzlon Energy has proposed to sub-divide the equity shares of the face value of Rs 10 each in to equity shares with a face value of Rs 2 per share.

Suzlon Energy's net profit rose 40.27% to Rs 355.58 crore on 32.39% rise in total income to Rs 1,718.73 crore in Q2 September 2007 over Q2 September 2006.

The company's order book position stands at Rs 16,328.04 crore comprising of Rs 1988.88 crore of domestic orders and Rs 14,339.16 crore of export orders.

Published by DalalStreet Business @ 12:01 PM  


Satyam Results and Guidance

Satyam Computer's net profit rose 7.19% to Rs 417.15 crore on 10.75% rise in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006.

The company revised upwards earnings as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupee terms and dollar terms. The company forecasts its revenue in fiscal 2008, as per US GAAP, to be between $ 2.07 billion and $ 2.08 billion, implying a growth rate of 41.5% to 42.0% over fiscal 2007. Basic earning per American depository shares (ADS) for fiscal 2008 is expected to be $ 1.24, implying a growth rate of 36.0% over fiscal 2007.

Corresponding revenue growth under Indian GAAP consolidated is expected to be between 26.3% and 26.7%. EPS for the full year is expected to be between Rs 25.0 and Rs 25.1, implying a growth rate of 16.5% - 17.0%.

Published by DalalStreet Business @ 10:35 AM  


Rajesh Export Stock Split + Rolta Bonus Issue

Monday, October 22, 2007

The board of Rajesh Exports has decided to subdivide equity shares of Rs 2 each to Re 1 each and to increase the authorized share capital of the company to Rs 30 crore.

The board of Rolta India has recommended the issue of bonus shares in the proportion of one equity share for every one equity share [1:1] held by the members, on a date to be fixed by the board, by capitalizing a part of the general reserve / share premium account.

Kerala Ayurveda has announced that its newly incorporated subsidiary CMS-Katra Holdings LLC, USA has acquired a 51% equity stake in US-based CMS-Katra Nursing LLC, which is acquiring the entire business and assets of CMS Inc, a leading healthcare staffing company based in Florida, USA, with a strong focus in hospitals and other healthcare facilities through placement of credentialed pool of foreign nurses.

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Published by DalalStreet Business @ 2:59 PM  


Indian Passenger Car Sales - Sept-2007

Maruti Suzuki continues to be the leader in the Indian market. Hyundai has gained good traction in the market. Here are the final figures of Passenger Car Sales in India.
Mahindra & Mahindra will launch Bolero, Diesel version in the United States in the next quarter.

Published by DalalStreet Business @ 2:44 PM  


Triveni Engineering + GE Joint Venture

Triveni Engineering & Industries announced that General Electric Company's (GE) Oil & Gas business has signed an agreement with the company to enter the fast growing high speed reciprocating (HSR) compressor market in India.

GE's agreement with the company will consist of an initial term of five years and will involve the import of bare (flange-to-flange) compressors from GE Oil & Gas Oshkosh, Wisconsin, USA facility. The company will do the engineering design, manufacturing and assembly of the package. It will also procure drivers and the rest of the components for packaging in India. The company will be the customer point of contact in India for both selling of the packaged product and the after market sales and service.

Published by DalalStreet Business @ 1:08 PM  


Karuturi Networks acquires Sher Agencies

Karuturi Networks has completed all formalities leading lending to acquisition of infrastructure and management control of Sher Agencies, Kenya.

With this acquisition, the company has emerged as the worlds largest producer and exporter of roses. Karuturi Roses are available in Africa, USA. Europe, Middle East, Far East Asia, Australia and New Zealand. This acquisition renders the company as the truly multi national and fully integrated company in India in the field of agriculture.

Sai Ramakrishna Karuturi and Srinivas Rao Karuturi are appointed as the directors of Sher Agencies, Kenya after the existing directors of the company stepped down following the acquisition. The new board of directors have proposed to rename the company as Sher Karuturi.

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Published by DalalStreet Business @ 10:02 AM  


Orient Info to amalgamate with IT People

Sunday, October 21, 2007

The board of Orient Information Technology has approved the proposal of amalgamation/merger of the company with IT People (India) and made appointment of Gadgil & Co, chartered accountants, as the valuers for the purpose of valuation of the company.

This was approved at the board meeting held on 20 October 2007.

Published by DalalStreet Business @ 12:42 PM  


ACC - Results Update

Friday, October 19, 2007

ACC's Q3CY07 results were below expectations due to higher power and fuel costs, and muted realization gains. Net revenues, at INR 16.4 bn, grew by 35.3% Y-o-Y, but slid by 11.2% sequentially, as monsoons suppressed volume growth. Sharp increase in power and fuel costs offset savings in raw material costs and EBITDA margin dipped by 214bps Q-o-Q to 27.4%. ACC's core profits, at INR 2.9 bn, though up 28.4% Y-o-Y, were down 17.9% Q-o-Q.

FY09 will be a transition year for the cement cycle with incremental supply of ~89 mn tonnes coming on-stream between FY08E and FY10E. Detailed demands upply estimates reflect that while tightness will persist till Q1FY09E, industry utilization levels are likely to correct thereafter taking the all India utilization level to ~93% in FY09E from ~101% in FY08E.

Earnings per share is likely to slow down in the coming quarters. Start booking profits on rise.

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Published by DalalStreet Business @ 9:28 AM  


SKF India - Results Update

The net sales have risen by 14% to Rs387.0 crore. The company benefited from the buoyancy in the industrial division where it was able to report a healthy top line growth against a slowdown in the automotive segment.

The operating profit margin has improved by 620 basis points to 17.6%, leading to a brilliant 76.5% growth in the operating profit to Rs68.3 crore. We believe that a better product mix in favour of industrial bearings and greater operational efficiencies triggered the margin growth.

The net profit has grown by 92.5% to Rs43.1 crore against our expectations of Rs37.2 crore. In view of the company’s brilliant performance, we are upgrading our CY2007 estimate by 9.2% to Rs30.1 and CY2008 estimate by 7.2% to Rs35.8.

Published by DalalStreet Business @ 7:24 AM  


US-Dollar Vs Indian Rupee - with FII Inflow

Thursday, October 18, 2007

Here is a chart which explains the co-relation between the rise of rupee and the rush of USD into the Indian market via Promissory Notes or directly via FII route. So you can now judge the impact of withdrawal on INR - it will fall a little bit giving breather to our IT companies.
Co-relation of USD Versus INR, when foreign funds flow into India

Published by DalalStreet Business @ 6:14 PM  


Biocon Approval + Divestment of Enzymes business

Biocon has received the necessary approvals from DCGI (drug controller general of India) to market ABRAXANE (nanoparticles based, albumin bound paclitaxel) in India. ABRAXANE has been approved for use in the treatment of breast cancer and will facilitate affordable access of high-quality supportive care therapy to cancer patients in India.

The global revenue for ABRAXANE reached $175 million in the first phase of its launch. Globally ABRAXANE has shown a positive trend in market penetration for metastatic breast cancer. According to IMS data, for the period between February and September 2006 versus the same period the previous year, there was a 64% unit growth in ABRAXANE versus a 11% increase in the overall taxane market.

Biocon completed the formalities with respect to the divestment of its Enzymes business vertical to Novozymes South Asia, a wholly owned subsidiary of Novozymes A/s of Denmark for $115 million on 01 October 2007. The post tax proceeds of this divestment will enable Biocon to strategically focus on its core bio-pharmaceuticals business as well as consider key acquisition opportunities to move up the value chain. This divestment will contribute a one time exceptional net gain this fiscal.

Published by DalalStreet Business @ 1:06 PM  


TCS + Nielsen in Billion Dollar Deal

Tata Consultancy Services (TCS) is entering into an agreement with Nielsen company, the world's leading provider of consumer and media information services, for outsourcing a portion of Nielsen's information technology (IT) and operations functions worldwide.

Under the ten-year deal, valued at US $1.2 billion, TCS will assume responsibility for important IT and operational processes and help Nielsen integrate and centralize multiple systems, technologies and processes on a global scale. TCS also will assume responsibility for certain finance and human resource business processes, which will be executed on new BPO platforms built by TCS.

The implementation of next generation technology platforms and processes will enable faster & enriched information service delivery for Nielsen. TCS will also set up an innovation lab with Nielsen to help the customer conceptualize the next generation of business solutions far its end clients globally.

Read Dalal Street Analysts Exclusive Coverage on TCS stock after Q2 Results.

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Published by DalalStreet Business @ 12:01 PM  


L&T bags 4 Contracts; Strengthens Order Book

Larsen & Toubro (L&T) has bagged four contracts valued at Rs 452 crore for projects in Andhra Pradesh. Engineering, procurement & construction (EPC) contract worth Rs 226 crore has been secured from National Thermal Power Corporation (NTPC) for design, engineering, supply and installation of 2 x l600 TPH coal handling plant, for Simhadri super thermal power project, stage-II (2x500 MW).

The bulk materials handling business unit of L&T's construction division bagged this contract against international competitive bidding. The project is to be completed in 39 months. This project is being executed as a part of NTPC's expansion plan for the Simhadri. STPP, enhancing the installed capacity from 1000-mega watt (MW) to 2000 MW, by adding 2 units of 500 MW each.

A Rs 93 crore order for engineering, procurement and construction of an underground drainage scheme for Nizamabad Township. The project involves laying 470 km of sewer pipelines, sewage treatment plant and pumping system, to be completed in 24 months.

Published by DalalStreet Business @ 11:15 AM  


NTPC MoU with HWB department of atomic energy

National Thermal Power Corporation has entered into a memorandum of understanding (MoU) with Heavy Water Board (HWB) department of atomic energy (DAE) Government of India, on 17 October 2007 for transfer of ammonia flue gas conditioning (AFGC) technology to the company for reduction in suspended particulate matter (SPM) for implementation at all its projects.

The MoU also provides for jointly undertaking further research work in collaborative manner with equal participation from the company and HWB for enhancing efficacy of AFGC technology.

As per recent reports, Reliance Energy (REL), Tata Power and NTPC are among the 10 qualified bidders in fray for the 4,000 MW Krishnapatnam ultra mega power plant (UMPP) in Andhra Pradesh, request for proposals (RFPs) will be accepted till 24 October 2007.

Also don't forget to read about the Reliance Power IPO Scam.

Published by DalalStreet Business @ 10:01 AM  


State Trading Corporation Bonus Issue

Wednesday, October 17, 2007

State Trading Corporation of India is a premier international trading house owned by the Government of India. The company trades with almost all the countries of the world. Government holds 91.02% stake in the company.

The board of directors will met to consider a Bonus Issue of the shares. At the current price of Rs 567.55, the scrip trades at a PE multiple of 24.50, based on Q1 June 2007 annualised EPS of Rs 23.08.

Published by DalalStreet Business @ 2:46 PM  


FirstSource to consider ADR/GDR Issue

FirstSource Solutions, India's leading BPO has informed us that the board of directos will meet on the 23rd to discuss the proposal for $300 Million ADR / GDR issue of the company.

The financial results for the quarter ended 30 September 2007 shall now be considered by a committee of board of directors at its meeting to be held on 29 October 2007.

FirstSource is the leading bidder for Citigroups CAPTIVE BPO operations in India.

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Published by DalalStreet Business @ 2:09 PM  


Reliance Energy Q2 Results

Reliance Energy's net profit jumped 34.17% to Rs 250.08 crore on 13.65% rise in total Income to Rs 1799.92 crore in Q2 September 2007 over Q2 September 2006.

At the current price of Rs 1723.70, the scrip trades at a PE multiple of 44.45, based on Q1 June 2007 annualised EPS of Rs 38.77.

The scrip outperformed the market by a huge margin in one month to 16 October 2007, soaring 109.78% as against the Sensex's 22.88% gain. It had also outperformed the market in the past three months, surging 176.50% against the Sensex's 24.51% rise.

Reliance Energy is planning to come out with Reliance Power IPO to fund Ultramega Power projects in India.

Published by DalalStreet Business @ 1:03 PM  


Jet Airways to expand network

Tuesday, October 16, 2007

Jet Airways India has announced that the introduction of a new Mumbai-Chandigarh service and additional daily services to Kochi and Bhopal, thus expanding its domestic network. This follows the induction of two classic and next generation boeing 737-700/800 aircraft into its fleet, effective 17 October 2007.

The company will operate its first ever daily flight from Mumbai to Chandigarh with a boeing 737-700 aircraft with 20 seats in premiere and 102 seats in economy class.

Jet Airways also announces the enhancement of its frequencies to Kochi and Bhopal from Mumbai. This will allow Jet Airways' Kochi passengers to connect onto our international flights to London, Brussels and Newark with ease.

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Published by DalalStreet Business @ 9:52 PM  


Is Mukesh Ambani's Reliance Petroleum headed for another Record ?

The new Reliance Petroleum has set a blistering pace on all implementation fronts and achieved over 70% overall progress in implementation of its large and complex refinery, coming up in a special economic zone at Jamnagar. Based on the progress made till date, in the engineering, procurement and construction activities, RPL expects to complete the project ahead of December 2008.

Procurement and contracting for equipments, tagged items and bulk materials is now complete. There is a barrage of equipment deliveries at site, with over 1,000 equipments, including several critical and long lead heavy equipments delivered during the quarter alone. With this, over 50% of all equipments / tagged items required for the project have already been received at site. Nearly all the bulk materials, including pipes and fittings for the project as well as substantial part of electrical and instrumentation bulks have also been delivered at site.

The construction activities have also peaked with aggregate volume of concrete poured at the project site crossing the 1.5 million cubic meter mark during the quarter. Most of the civil work is complete. This has enabled structural steel / pipe erection and equipment installation activities to progress rapidly as well. Over 20% of equipments are installed and over 40% of project scope for pipe laying and erection is complete. Underground piping is nearing close out. Nearly 75% of structural steel fabrication, 85% of tankage fabrication and over 60% of pipe fabrication work has also been completed.

Published by DalalStreet Business @ 5:48 PM  


Orbit Corporation Q2 Results + Stock Hits All time High

Orbit Corporation reported a net profit of Rs 1.85 crore on sales of Rs 13.11 crore in Q2 September 2007. On consolidated basis, the company posted net profit of Rs 39.88 crore on sales of Rs 97.55 crore in Q2 September 2007. The comparable figures of previous corresponding year were not available.

As per reports, the company has a total land bank of 1.1 million square feet and it targeting sales of Rs 800 crore in the year ending March 2008.

At the current price of Rs 662.50, the scrip trades at a PE multiple of 324.75, based on Q2 September 2007 annualised EPS of Rs 2.04.

Published by DalalStreet Business @ 2:52 PM  


Bharati Shipyard + Apeejay Shipping Joint Venture

Bharati Shipyard and Apeejay Shipping, one of the largest private ship owners announced that they have sign a 50:50 joint venture agreement for setting up a large modern ship building yard along the eastern coast of the country. The company and Apeejay Shipping are in the process of jointly finalizing the site and shall announce the location in the coming weeks.

The proposed joint venture which is the first if its kind in India to bring synergy between a reputed ship builders and a leading shipping company, is excepted to commence operation by 2009.

The company and Apeejay would jointly invest in the state of the art technology and modern ship building and ship repair facilities and would have the capacity to build and repair vessels of all sizes up to VLCC.

Published by DalalStreet Business @ 11:24 AM  


HDIL receives nod for airport slum rehabilitation

Housing Development & Infrastructure (HDIL) has received a letter of intent dated 15 October 2007, for the airport slum rehabilitation project, for removal of slums from encroached airport land, which has been awarded by Mumbai International Airport to the company. The company has also executed an agreement dated 15 October 2007 for rehabilitation and development of slums around the Chhatrapati Shivaji International Airport and development of part of the cleared land.

Our Coverage on HDIL:
HDIL has tied up with Lehman Brothers.
Religare - Stock Recommendation on HDIL

Published by DalalStreet Business @ 10:07 AM  


BSE Sensex Hits 19,000 - Alltime High

Monday, October 15, 2007

It took just 4 Trading sessions for the Mumbai Stock Exchange SENSEX 30 to hit a new high of 19,092.

Easing of political worries and improved Index of Industrial Production (IIP) figures for August 2007 boosted the bourses today. India's industrial output in August 2007 rose 10.7% from a year earlier, higher than upwardly revised annual growth of 7.5% in July 2007 due to mining, manufacturing and electricity production, data released by the government showed on Friday, 12 October 2007.

Emerging markets-dedicated equity funds posted strong inflow for yet another week. For the third consecutive week, emerging markets equity funds recorded inflow in excess of $5 billion at $5.1 billion, in the week ended 10 October 2007. Funds dedicated to emerging Asia had the most inflows in the seven-day period, or $2.13 billion.

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Published by DalalStreet Business @ 3:04 PM  


Axis Bank Posts Strong Q2 Numbers

Axis Bank IndiaAxis Bank's net profit rose 60.5% to Rs 227.82 crore on 64.1% rise in sales to Rs 2059.37 crore in Q2 September 2007 over Q2 September 2006.

At the current price of Rs 790.90, the scrip trades at a PE multiple of 30.94, based on Q2 September 2007 annualised EPS of Rs 25.56.

The board of the company also proposed to establish a mutual fund, the bank said in a statement to us. Axis Bank is the third largest private bank in India.

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Published by DalalStreet Business @ 2:12 PM  


L G Balakrishnan Demerger + Jai Corp SEZ

L G Balakrishnan & Bros reportedly plans to spin off its forging division into a separate company so that the division can focus more in its core business and can seek independent joint ventures in future. Reports suggest that the company would list the forging unit on the bourses and the company has already set up a panel to fix the share swap ratio for demerger.

At the current price of Rs 26, the scrip trades at a PE multiple of 11.50, based on Q1 June 2007 annualised EPS of Rs 2.26. Face Value of Rs 1.

Jai Corp is a major promoter in developing the 5,250-acre Navi Mumbai Special Economic Zone, apart from Mukesh Ambani led Reliance Industries (RIL). Jai Corp is focusing on developing one of the largest special economic zones in India. Jai Corp is led by Mukesh Ambani's friend, Anand Jain who has been with Mukesh Ambani for over 20 years now in Reliance Group.

JAI CORP Ltd has informed BSE that the promoters on October 15, 2007 have sold 2,19,00,000 (two crores & nineteen lakhs) equity shares of the Company through the floor of the exchange.

Jai Corp has invested in two multi product special economic zones near Mumbai - Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ (MSEZ). Both the SEZs are being conceived and developed as a futuristic business hub and gateway for trade, commerce, industry, service and tourism. The NMSEZ will be set up as a joint venture with the City and Industrial Development Corporation (CIDCO) of Maharashtra holding 26%, and RIL holding the rest with Jai Corp.

As per recent reports, Jai Corp is planning to raise a venture capital corpus of Rs 40000 crore through its wholly owned subsidiary, Urban Infrastructure Venture Capital. Reports suggest that Jai Corp has already committed a capital of Rs 22,000 crore in 12 cities in India. The major investments would be in multiuse projects and townships (22% each), residential (15%) commercial (14%), industrial township (12%) and hospitality (6%).

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Published by DalalStreet Business @ 11:32 AM  


HDFC Bank: Higher PAT, lower operating Profit

HDFC Bank reported net profit of Rs3.68 bn, which was up 44% yoy and 5% higher than our estimate. However, the company exceeded our target largely due to treasury gains.

Core operating performance was 7% below our estimate as the bank reported lower other income and higher expenses. Strong NII growth and moderate growth in fee income drove most of the growth in income. We have tweaked our earnings estimates marginally, so too our target price—to Rs1,300 from Rs1,250. The stock trades at 23X PER and 3.7X PBR FY2009.

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Published by DalalStreet Business @ 10:14 AM  


IDFC + CONCOR Results

IDFC's reported standalone net profit for 2QFY08 of Rs1.79 bn, up 27% yoy but 8% below estimates. IDFC’s net operating income was up 43% yoy, mainly supported by strong loan growth, likely stable spreads but higher NIMs—on the back of recent capital issuance. Standalone fees, a lumpy income stream, have grown considerably but below estimates. The company has booked lower-than-expected capital gains during the quarter. While provisions have been higher, reported operating expenses were lower as IDFC adjusted share issue expenses with share premium account.

Container Corporation of India [CONCOR] reported revenues of Rs8,188 mn (up 6.4% yoy) and PAT of Rs1,742 mn (down 8% yoy). Operating margins reduced significantly - by 690 bps on a yoy basis to 25.9%. Exim volume growth at 12.6% was lower than our expectation of 14%. This was despite the discounts given on FEUs in an effort to take traffic away from roads. However, domestic volume growth at 38.4% was a positive surprised (we expected 15%). The steep margin decline is attributable to discounts, higher number of empties (due to imbalance in exim trade and repositioning of containers in the domestic segment) and additional charges by Indian Railways. 5 competitors have commenced operations. Volumes and margins of Concor are likely to be affected as competitors scale up. Fresh and Healthy, Concor's cold chain subsidiary is likely to start sales from January next year. Kotak has a revised Target Price of Rs 2200 on CONCOR.

Published by DalalStreet Business @ 12:14 AM  


Himatsingka Seide's second international store

Sunday, October 14, 2007

Himatsingka Seide has announced that the opening of the second international store for 'Atmosphere', in Singapore, on 12 October 2007. The first overseas store of 'Atmosphere' opened in Dubai in May 2007. The Dubai store has met with very encouraging response from interior designers and retail customers from all over GCC. The Dubai unit has already executed orders for palaces, high end hotels and local HNI's.

The Singapore store is located very close to the premium Orchard Road area and is in close proximity to stores of the world's leading luxury brands. This location is very suitable for retail sales.

Store locations are also being finalized in other cities of South East Asia and North Asia. Atmosphere's third store in Mumbai and its 12th store in India will open in October 2007. The retail subsidiary is also in the process of finalizing other stores in India.

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Published by DalalStreet Business @ 1:54 PM  


Punj Lloyd Wins Qatar Contract of Rs 389 crore

Friday, October 12, 2007

We have just now received a communication from the company stating that they have received an EPC order.
Punj Lloyd Limited, a global provider of EPC services in the energy, infrastructure and petrochemical sectors, has secured a contract to construct the Multi-Product pipeline from Qatar Petroleum on an EPC basis. Total value of the order is 360 Million Qatar Riyal.
Our Analyst tracking the stock adds that, with this, the order backlog for the Punj Lloyd group on consolidated basis has gone up to Rs. 16,872.46 crore.

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Published by DalalStreet Business @ 2:34 PM  


Mastek's Buy Back Gimmick - Beware

The management of Mastek which has miserably failed to grow in the past 5 years and is still a small cap company is now trying to play BUY BACK gimmick to boost its share price.

The company has approved buyback of equity shares at a price not exceeding Rs 750 per share through open market purchases route. It has set aside a maximum Rs 65 crore for buyback.

At the current price of Rs 390.50, the scrip trades at a PE multiple of 26.89, based on Q4 June 2007 annualised EPS of Rs 14.52. The stock is already expensive and we strongly recommend our readers not to take any fresh exposure. If you already hold Mastek, then Book Profits once the price stabilizes.

Published by DalalStreet Business @ 10:39 AM  


Nokia Siemens Research at Wipro Campus

Wipro has signed the R&D partnership contract in Germany by Nokia Siemens Networks and Wipro Technologies, a division of Wipro. Nokia Siemens Networks and Wipro Technologies, the global IT arm of Wipro have agreed on the terms and conditions of a business transfer and asset sale of Nokia Siemens Networks radio access related R&D activities in Berlin.

All radio rccess R&D activities currently performed in Berlin are planned to be provided to Nokia Siemens Networks by Wipro technologies in the future. As part of the partnership, 58 employees of Nokia Siemens Networks are planned to be fully integrated into the operations of Wipro technologies. Through this agreement, Nokia Siemens Networks will leverage Wipro technologies' global expertise as one of the largest independent R&D services providers in the world.

Wipro is one of the leading players in telecom engineering solutions space, covering wireless, wireline, broadband and enterprise communication, legacy and next generation products. Wipro has been focusing significantly in competency development for next generation radio access technologies.

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Published by DalalStreet Business @ 10:03 AM  


iGate Buyback at Rs 450 / share

Thursday, October 11, 2007

iGate surprised us this quarter with the announcement to buy back and de-list from Indian stock exchanges by December 2007. The tendering process would be through a reverse book building route with the average price prevailing prior to November 13th, 2007 as a base price. Our analsyt recommends investors to tender their shares with a price of Rs 450 which discounts our FY09E EPS of Rs 30 by 15x. The buyback price would be decided based on the price tendered by the highest number of shareholders.

Published by DalalStreet Business @ 11:44 PM  


Maruti + Magneti Marelli in Partnership

The manufacturing facilities of this joint venture company will be located in Manesar, in the industrial district of Gurgaon, India.

The initial investment of this project is 15 million Euros (about Rs 75 crore) and it will be funded through a mix of equity and debt. As per the agreement, Magneti Marelli will contribute 51% of the share capital of the new company, Suzuki Motor Corporation will contribute 30% and Maruti Suzuki 19%.

The production will commence in end 2008. Initially, the elctronic control unit (ECU) produced at Manesar will be used for Maruti Suzuki diesel cars and later on, it will also cater to other car manufacturers.

Meanwhile, as per recent reports, Maruti Suzuki's proposal to set JV with Japan based Futaba Industrial Co, for manufacture and sale of exhaust system components for automobiles has been approved with foreign equity of up to 51% amounting to Rs 45.9 crore, company said.

Published by DalalStreet Business @ 3:07 PM  


Bharati Shipyard secures order

Bharati Shipyard has announced that the Shipping Corporation of India board has accorded approval for acquisition of four numbers anchor handling tugs cum supply vessels from Bharati Shipyard. The total price of each vessel is US $ 22.32 million totaling to US $ 89.28 million. The contract signing ceremony will be held on 15 October 2007.

These vessels are the first of its kind being built by shipping corporation of India in India using such advance design. These vessels will be constructed by using havyard design which will be used for the first time for such vessels built in India. The design allows for achieving high bollard pull and fuel efficiency as against equivalent designs. Further, the design allows higher DWT and higher cargo carrying capacity compared to other 80 tons AHTSVs with similar dimensions.

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Published by DalalStreet Business @ 12:26 PM  


Infosys Q2 Results

We have obtained a copy of Infosys Technologies results and here is an insight. The company which used to report QoQ growth has stopped reporting so because of its poor performance and its inability to transition itself. Now they are reporting YoY like any other commodity company.
As said by Lehman Brothers, Indian IT Companies fail to innovate and have lost their competitive edge with the falling Greenback. So Book Profits in Infosys at Higher Levels.

Update: It is seriously high time guys that all the research analysts get bold like Lehman Brothers and downgrade IT stocks.

Published by DalalStreet Business @ 9:05 AM  


Indian Rupee Vs - USD + Euro

Here is some data from HSBC on Indian Rupee Versus USD and Euro

INR /USD, end-year 45.61 43.46 45.05 44.26 39.00 37.50[2008E] 36.00[2009E]
INR /EUR, end-year 55.25 59.11 53.14 58.36 56.55 50.63[2008E] 46.80[2009E]

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Published by DalalStreet Business @ 8:08 AM  


Infy's Murthy Tries to Climb a Ladder

Wednesday, October 10, 2007

Naryana Murthy on a Ladder at Infosys CampusFIIs darling in India, Infosys has been deserted for the past quarter since the appreciation of the Indian rupee. Ahead of its results tomorrow, the stock is up 3% at Rs 2,120. Infact all the IT stocks are up on expectation of earnings revision since the cost of VISA pressure is accounted for in Q1.

A total of seven brokerages expect a between 0.58% fall to a 4.6% rise in Infosys' consolidated net profit as per Indian GAAP to between Rs 1,072.70 crore to Rs 1128.70 crore in Q2 September 2007 compared to net profit of Rs 1,079 crore Q1 June 2007. They expect a between 6.8% to 9.7% growth in Infosys' revenue at between Rs 4,028.60 crore to Rs 4,138.40 crore in Q2 September 2007 compared to revenue of Rs 3,773 crore in Q1 June 2007.

Infosys had cut EPS guidance in rupee terms to a growth of 15.6% to 16.8% compared to the earlier guidance of 20% to 22% growth. It had also slashed revenue guidance in rupee terms to 16.9% to 18.3%, from earlier guidance of a growth of 22.6% to 24.6%.

All the IT stocks are up on high expectations from Labour Arbitrage IT Services Company. Our analyst is of the view that, the rupee saga will continue and put pressure on IT services companies. Infact it is best to explore other companies such as Capital Goods, Construction and Finance in India.

Published by DalalStreet Business @ 2:32 PM  


Glenmark receives US FDA Approval

Glenmark Pharmaceuticals has received final approval from the U.S. food and drug administration for the marketing the first generic version of trileptal (oxcarbazepine). The approval is for marketing oxcarbazapine tablets in three strengths - 150 mg, 300 mg and 600 mg.

Trileptal is a widely used medication to treat epilepsy that has FDA approval.

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Published by DalalStreet Business @ 1:11 PM  


L&T Order + Tata Motors Hike prices

Larsen & Toubro has received engineering and procurement (E&P) order for setting up high technology methyl amines & dimethyl formamide plants for Methanol Chemical Company (Chemanol). L&T will also provide the technical services for erection and commissioning of the plant.

Chemanol is a private sector enterprise, operating grass roots, second-generation petrochemical complex located in the Al Jubail Industry city, Saudi Arabia, which manufactures formaldehyde and its derivative products.

Tata Motors has hiked the prices of its vehicles to offset the higher input costs and because of costs related to meeting stricter safety norms.

Published by DalalStreet Business @ 1:00 PM  


iGate's Q2 Results

iGate Global Solutions' net profit surged 124.33% to Rs 23.78 crore on 0.25% rise in sales to Rs 187.86 crore in Q2 September 2007 over Q2 September 2006.

iGate is a subsidiary of iGate Corp, a Nasdaq-listed company. Its services include consulting, enterprise data management and data warehousing, business intelligence and analytics, design, development, system integration, package evaluation and implementation, re-engineering and maintenance.

The scrip had underperformed the market in the one-month to 8 October 2007, adding 5.66% as against the Sensex's 12.19% gain. It had also underperformed the market in the past three months, declining 11.01% against the Sensex's 16.53% rise.

The small-cap software firm has an equity capital of Rs 12.66 crore. Face value per share is Rs 4.

Published by DalalStreet Business @ 10:12 AM  


Kavveri Telecom acquires Til-Tek and DCI

Tuesday, October 09, 2007

Kaveri Telecom Products has acquired Til-Tek and DCI, two US companies during the last one year. Til-Tek is a leader in antennas and DCI in RF products and filters. The company has now acquired technology, intellectual property rights (IPR) and patents for base station antennas of erstwhile Sigma wireless, Ireland from PCTEL, Chicago, USA. With this acquisition, the company now has the capability to manufacture base station antennas incorporating the latest technologies on par with the best in the world. Both Indian and global customers would be addressed by the company in this area. This acquisition also gives the company access to customers and vendors of Sigma wireless in Europe. The acquisition also brings into the company's fold seven international patents.

The company is poised for a 100% growth over last year and has already started building infrastructure in line with the projected growth over the next three years.

Published by DalalStreet Business @ 3:01 PM  


IVRCL + Petron Engineering Orders

IVRCL Infrastructures & Projects has bagged lift irrigation works of the value of Rs 761.24 crore of handri niva sujala shravanthi (HNSS) project main canal for stage II of phase 1 in Kurnool and Anantapur Districts of Andhra Pradesh, on EPC turkey basis which includes investigation, design, manufacture, supply of pumps, motors and pressure mains at site of work including erection, commissioning and testing 8 numbers at each pumping station of hydro-mechanical, electro-mechanical and other accessories etc. complete equipment required and maintenance of 12 pumps at each pumping station and the system for 15 years, awarded by Government of Andhra Pradesh, irrigation & CAD department

Petron Engineering bagged a Rs 1.33-crore contract from Vedanta Alumina for installation of anode, grouping & cleaning system for its aluminium smelter project at Jharsuguda, Orissa. It had also secured a Rs 127-crore contract for supply of fired heaters for the Bina Refinery project being developed by Bharat Oman Refineries (a company promoted by Bharat Petroleum Corporation and Oman Oil Company).

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Published by DalalStreet Business @ 1:35 PM  


L&T bags Rs 693 crore order from Indian Oil

Larsen & Toubro (L&T) minutes ago announced that Indian Oil Corporation (IOCL) has awarded to the company, a large project order comprising two trains of 300 tonnes per day sulphur recovery units (EPCC - 5) along with associated facilities such as amine regeneration unit sour water stripper & tail gas treatment unit for enhanced sulfur recovery up to 99.9%. This would enable IOCL in the production of low sulphur clean fuels to meet regulatory requirements. The order is valued at Rs 693 crore.

IOCL which operates one of its biggest refineries located at Koyali on the outskirts at Vadodara city in the State of Gujarat, India, intends to set up these sulphur recovery plants as part of their fuels Upgradation project and have awarded the order on EPC basis to the company. Toyo Engineering India has been retained by IOCL to provide services for project management consultancy (PMC) and Black & Veatch (USA) are the process licensors.

Published by DalalStreet Business @ 10:19 AM  


Trading Ideas for the Day

Here are some Trading Ideas for the day - Oct-9th

Triveni Engg - Trading in a falling channel.
Sell below 97
Stop Loss: 98
Target: 89.50 / 83 / lower

RNRL - Ambani is falling
Sell Below Rs 85
Stop Loss Rs 86
Target Rs 80.50 / 78 / Lower

Omaxe Ltd - Fails to recover
Sell Below Rs 312
Stop Loss Rs 314
Target 298 / 288 / Lower

Start booking partial profits on achieving first / second target.

Published by DalalStreet Business @ 10:03 AM  


Suzlon contract for 400 MW of wind turbine capacity

Suzlon Energy has annouced that Suzlon Wind Energy Corporation, the US-based step-down wholly owned subsidiary of the company has signed a contract for a 400 MW of wind turbine capacity with Horizon Wind of Houston, Texas, one of the largest wind power developers in the United States and also owned by portuguese utility EDP (energias de portugal, S.A.), a leading renewable energy developer in the world. The contract calls for delivery of 200 MW of turbine capacity in 2008 and another 200 MW of capacity in 2009.

Published by DalalStreet Business @ 8:56 AM  


Rajesh Exports Q2 Results

Monday, October 08, 2007

Rajesh Exports' net profit rose 156.33% to Rs 54.24 crore on 19.38% rise in sales to Rs 2044.21 crore in Q2 September 2007 over Q2 September 2006.

The mid-cap jewellery retailer has an equity capital of Rs 7.39 crore. Face value per share is Rs 2. Rajesh Exports manufactures and sells gold jewellery. It imports raw gold from mines across the world. The jewellery manufactured is exported across the world, and distributed all over the country.

Published by DalalStreet Business @ 2:21 PM  


Tamil News Channel approval for Raj TV

Raj Television Network has got approval from Ministry of information and broadcasting for launching of one 24x7 Tamil news channel.

The Company is proposing to start the new channel on 14 November 2007.
The new channel shall be a seven days per week news channel in Tamil language covering all types of general news, business news and other news both national and international. Our readers can recall that Raj TV has become the official news channel of ruling DMK party in Tamil Nadu after the split in Maran and Karunanidhi family.

The company is hopeful that the market share of the company shall be increased after the launch of the new channel

Published by DalalStreet Business @ 12:05 PM  


DLF Makes it to SENSEX

In a Fax we received just a while ago from Mumbai, we learn that DLF has been included in the 30 stocks Indian Indiex - BSE SENSEX.

Dr Reddy's Lab is the stock moving out and paving way for DLF.

Additional modifications have also been done to the BSE 100 Index. Asian Paints, Bioco, Canara Bank, Dabur, Dish TV India and Videocon are out of the BSE 100. Stocks that are included are in the BSE 100 are Idea Cellular, Adani Enterprises, Jindal Steel & Power, Patni Computer Systems, Power Finance Corporation and Union Bank of India.

Here is Kotak's coverage on DLF. Citigroup has also initiated coverage on DLF.

Published by DalalStreet Business @