Indian auto sector monthly update (January 2010)
5 February 2010 | Maruti sold 95649 vehicles in Jan 10 as against 71779 units in Jan 09 a rise of 33.3% YoY basis and a 12.8% rise on a MoM basis. The C segment comprising Omni and Eeco showed a robust growth in the domestic market and grew by 40.8% on a YoY basis. Though the overall sales of the company showed a decent increase, the MUV segment which comprises Gypsy, Grand Vitara etc, registered a fall of 27.4% during the month compared to sales in Jan 09 and fell about 47.9% on a MoM basis. In the A3 category comprising of SX4 and Swift Desire there was a rise of 40.8% in the sales numbers whereas the A2 segment showed a healthy growth of 24.8% on a YoY basis but on a MoM basis the rise was 14.7% and 12.1% respectively.
Indian Banking Report January-February 2010
4 February 2010 | Bank credit for the fortnight ended 15th January 2010, grew by 13.8% on a YOY basis as against 22% in the corresponding period of the previous year. After swelling to a nine\month high in the previous fortnight, the outstanding credit of schedule commercial banks decreased by Rs 11,898 crore in fortnight under review. On a YTD basis, credit growth continued to remain sluggish at 8.4% in the current fortnight as compared to 12% in the corresponding period of the previous year. Consequently, as on the last fortnight ended on 2 January 2010, bank credit increased by 79,514 crores, however, in the current fortnight banks witnessed a reversal resulting into a decline in outstanding credit. One of the reason for low credit off take could be attributed to the availability of alternative non banking sources of finance including bonds, NCD at low rates which has reduced the dependence of large corporate on bank credit. RBI in its latest monetary policy has reiterated its credit growth target from earlier 18% to 16% in the view of increased availability of funds from non\banking sources.
Indian telecom monthly update (December 2009)
3 February 2010 | In line with the robust growth witnessed over the past few months, Indian Telecommunications sector saw a record addition of 19.01 mn subscribers for the month of December 2009. Launches in new circles by incumbent players and the entry of couple of new entrants boosted the subscriber addition. The number of telecom subscribers in India increased to 562.2 mn at the end of December-09 from 543.2 mn in November-09. This reflects a growth rate of 3.5% which surpassed the growth witnessed any time in the current fiscal. This increased the overall Tele-density of India from 46.32% to 47.89% over last one month. The increase in the subscriber numbers was led by wireless segment which saw the subscription figures increase by 19.1 million to 525.15 million at the end of December-09. This increase represents a growth rate of 3.78% MoM. Wireless Tele-density now stands at 44.73%. The number of subscribers for wireline segment continued to fall from 37.16 million in November-09 to 37.06 million at the end of December-09. Wireline Tele-density declined to 3.16% at the end of December-09 as against 3.17% in November-09.
Third quarter review of Indian monetary policy 2009-10
1 February 2010 | The Reserve Bank of India (RBI) increased cash reserve ratio by 75 basis point to 5.75 %, which will be adopted in two stages; first stage comprising of increase of 50 basis points will be effective from the fortnight beginning February 13, 2010, followed by next hike of 25 basis point effective from the fortnight beginning February 27, 2010. The rise in CRR will result in curbing liquidity to the extent of approximately Rs.36,000 crore. Meanwhile SLR, repo and reverse repo rates have been left unchanged.
Indian Banking fortnightly report (January 2010)
18 January 2010 | Bank credit for the fortnight ended 1st January 2010, grew by 13.7% on a YOY basis as against 23.8% in the corresponding period of the previous year. During the period, banks disbursed approximately Rs. 79,514 crores as loans which mark the highest fortnightly disbursal in FY 2009]10. On a YTD basis, credit growth remained sluggish at 9% in the current fortnight as compared to 13% in the corresponding period of the previous year. Even though, credit off]take has witnessed a sharp rise in the current fortnight, in order to judge the revival of credit growth, it is viable to witness the growth in a few more fortnights ahead. Historically, second half of the year accounts for major proportion of the total bankfs credit disbursal. Going forward, with IIP number expected to improve and Indian GDP outlook looking positive, we expect credit growth to improve in last quarter of the year. However, we believe that lower credit demand from corporate sector is likely to restrict the overall credit growth to reach the central bankfs target of 18% growth for current financial year; as Indian banks will have to disburse additional Rs. 2,47,806 crores in the period from January to March 2010. Components of credit growth (Schedule Commercial Banks
Indian telecom sector monthly report (November 2009)
11 January 2010 | Continuing with the robust growth witnessed over the past year, Indian Telecommunications sector saw a record addition of 17.6 million subscribers for the month of November 2009. The number of telecom subscribers in India increased to 543.2 million at the end of November-09 from 525.65 million in October-09. This reflects a growth rate of 3.34% which surpassed the growth witnessed any time in the current fiscal. This increased the overall Tele-density of India from 44.87% to 46.32%. The increase in the subscriber numbers was led by wireless segment which saw the subscription figures increase by 17.65 million. Wireless subscriber base increased from 488.4 million in October-09 to 506.04 million at the end of November-09 at a monthly growth rate of 3.61%. Wireless Tele-density now stands at 43.15%. The number of subscribers for wireline segment continued to fall from 37.25 million in October-2009 to 37.16 million at the end of November-09. With a reduction of 0.09 million subscribers in the wireline segment, Tele-density declined to 3.17% at the end of November -09 as against 3.18% in October-09.
Indian auto sector monthly update (December 2009)
11 January 2010 | Maruti sold 84804 vehicles in Dec 09 as against 56293 units in Dec 08 a rise of 50.6% YoY basis but a fall of 3.4% on a MoM basis. The C segment comprising Omni and Versa showed a robust growth in the domestic market and grew by 51.2% on a YoY basis. Though the overall sales of the company showed a decent increase, the MUV segment which comprises Gypsy, Grand Vitara etc, the sales registered a fall of 37.9% during the month compared to sales in Dec 08. However on a MoM basis the sales grew by 2.4%. In the A3 category comprising of SX4 and Swift Desire there was a rise of 20.2% in the sales numbers whereas the A2 segment showed a healthy growth of 41.8% on a YoY basis but on a MoM basis the fall was 10.3% and 6.7% respectively. Exports were up by 223.7% on a YoY basis at 13804 units in Dec 09 against 4264 units in Dec 08. The company exports were mainly driven by A] Star and Ritz in Europe. The company is planning to increase its production capacity by upto 75% in the next five years. The investment plan for the same will be laid out in January 2010.
The RBI began its first phase of exit from an expansionary policy by ending some liquidity support measures
17 November 2009 | The Reserve Bank of India (RBI) has explicitly signalled a mild exit strategy from the loose monetary regime, indicating the beginning of the end of the stimulus measures. Unconventional times require unconventional measures was the underlying thought of the RBI when the post-Lehman crisis came knocking at Indias economic doorsteps. To tackle the crisis, the RBI had then opened multiple floodgates to liquidity. However, in the recent monetary policy review, while the RBI decided to keep all its key policy rates unchanged, it did embark on a passive exit strategy by discontinuing few emergency liquidity facilities and revising provisioning norms that were undertaken last year as crisisfighting measures.
Indian IT companies report better than expected results
17 November 2009 | New signs of recovery have brought some hope to the Indian Information Technology (IT) players, who were totally clueless about the short-term growth a while ago. Most Indian IT companies reported better than expected results. After reporting a marginal to negative growth rate for the previous two quarters, top-tier IT companies are back on the growth track in the September 09 quarter. Many companies have also revised their full-year guidance upwards and look more confident about future business growth than they were in the previous quarter.
Lower sales realization have pulled down profits of Indian metal companies
17 November 2009 | The September 09 quarter marks the end of a declining growth trend, seen in case of metal companies for the last four quarters. This also represents the worst quarter among the last eight quarters, at least in terms of growth figures. The metal companies, however, have managed to deliver an impressive result when compared sequentially. Rising sales realization, reduced operating expenses and lower raw material cost are some of the factors that have helped companies to report better profitability numbers on a sequential basis. The market was smart enough to know all these facts before the quarterly results of most metal companies were out. The 30% rise in the BSE Metal index as against 15% rise in the Sensex during the June-September period confirms this fact.
RBI's 2Q FY2010 monetary policy maintains status quo in rates
29 October 2009 | The RBI maintained a status quo with respect to all policy rates in its 2QFY2010 monetary policy. More important, in our view, was the marked change in the tone of the policy. The policy did sound more hawkish, emphasising concerns about inflation and describing the measures implemented as the first phase of an 'exit' from the extraordinary monetary accomodation of the past year. But this needs to be viewed in the context of the evolving dynamics of growth, inflation and liquidity.
Indian auto sector has made all the right moves in this fiscal and must maintain the momentum
28 October 2009 | Traditionally, Id and Diwali festivals augur a positive period for the auto industry in India, as buyer sentiments tend to go up amid the pomp and joy of the season. Fiscal year 2009 was a dismal exception, as automakers struggled between October and December 2008. This is all the more reason to look at the current monthly and quarterly growth rates with a pinch of salt. The Q3 results for FY10 are likely to look spectacular, though they are marked improvements from the January-April 2009. Take Ford Motor, for instance. This September, Ford India announced an impressive 50% year-on-year (y-o-y) sales growth in Sept 09. It sold 3,405 units as against 2,273 units in Sept 08. Without taking anything away from the American car maker, the growth in September over the same month in 2008 is not as staggering as the 50% y-o-y rate suggests. Ford continues to have a less than 2% market share in the Indian car market. But what is truly more heartening for Ford is that its recovery and ascent in India is now well and truly on. This is visible in its 38% month-on-month increase over Aug 09. On a quarterly basis, it clocked a 24% rise over the same period in 2008. Now the real battle begins as it has launched its small-car called Ford Figo that will be up against top dogs Maruti Suzuki and Hyundai.
Indian 2QFY2010 Monetary Policy Preview
27 October 2009 | In our opinion, the RBI is likely to maintain status quo with respect to policy rates in the upcoming policy, reiterating that its priority remains growth rather than inflation at this juncture. An important thing to watch out for will be RBI's take on the potential acceleration of forex inflows going forward, and the resultant problems of high liquidity, the appreciating rupee as well as rising asset prices and demand-side pressures that the country may have to face all over again. Such inflows may necessitate CRR hikes in subsequent policies though, over the next 4-6 quarters at least, such hikes will, in our view, only manage to sterilize the excess forex-driven liquidity in the system, rather than stifling growth by choking off M3. Overall, for the upcoming policy, we expect the RBI to maintain an accommodative stance, as the key priority for the economy remains keeping interest rates low until a broad-based revival in domestic demand is firmly rooted.
Indian monetary policy 2009-10 second quarter review
27 October 2009 | The Reserve Bank of India (RBI) increased statutory liquidity ratio by 100 basis point from 24% to 25 %, effective from November 8, 2009. SCBs (scheduled commercial banks) are currently maintaining SLR investments at 27.6% of their Net Demand Time Liability (NDTL); as such the increase in SLR will not impact the liquidity position of the banking system and credit to private sector. Meanwhile CRR, repo and reverse repo rates have been left unchanged.
India: After the recession gloom it is time for a good run for the branded retail sector
27 October 2009 | In India retail is not a new word. But there is still something very new about the sector today in terms of the shift from roadside pavement retail to small shops, from departmental stores to the huge state-of-the-art malls. Today two businessmen might be producing similar goods and have same-sized balance sheets, but if one does a lot of advertising and publicity and the other doesnt, it is the former who emerges with a brand. Yes, we are certainly living in the age of branding. Whether you buy Lux soap from a kirana shop or a supermarket you are ultimately buying the brand. Branding has today transformed into multi-faceted stores in shopping malls, exclusive standalone stores as well as high-end boutiques, which burn a hole in your pocket. The Indian retail market saw a slump following the global recession and is now recovering, emerging as one of the top attractive investment destinations. Currently, the share of retail to the countrys GDP is about 12%, which is estimated to rise to 22% by 2010. Within this market, apparels form the second largest segment in terms of value, growing annually at the rate of 10%. With the opening up of the economy and globalization, Indias retail industry has witnessed a huge change over the years and with FDI now allowing up to 51% in single brand retail, the demographics of this industry have substantially improved and are further expected to shine.
India Monsoons: A Reality Check
24 August 2009 | Poor monsoons this year are being dreaded to have a significant impact on Indias GDP. The sectors that could potentially be hit are Automobiles, FMCG and Cement. However, our analysis of the past trends and correlation between monsoons and the performance of these sectors (in terms of business and not stock market performance) indicate that the correlation has not been very strong as is being feared. More so, the gradual and consistent transition of the Indian economy over the years from an agrarian economy to one being led by the services and the manufacturing sectors and the emergence of various other sectors, factors influencing consumer decision making, has ensured that the impact of the monsoons on the Indian economy reduces.
Agriculture: Monsoon and its impact on India`s backbone
17 August 2009 | The share of agriculture to the gross domestic product (GDP) has dropped from 25% in 2002 to 17% currently. Yet, agriculture contributes a huge chunk to the GDP, making it a very important sector for India's growth. The performance of this sector is very crucial to the Indian economy not only with regard to GDP but also as a huge chunk of the Indian population is dependant on agriculture. Rainfall in India so far this year is 28% below par and this is a major cause of concern as the impact could be devastating. Monsoon in the northwestern region of India, the main growing area, is 40% below average. If agricultural production goes down in India then the direct impact would be a decline in the income of people. The economy as a whole and the GDP will get affected. This factor could lower production of food but raise the prices. Hence, the significance of the monsoon for the economic system cannot be under-estimated. The monsoon can directly affect government savings, public investment and foreign exchange reserves.
India: Direct Tax Code 2009 review and analysis
14 August 2009 | The government has released a comprehensive discussion paper and draft of the new Direct Tax Code that seeks to revamp and simplify the Direct Tax Law and its administration in the country through several radical changes. The code, which the government plans to enact and implement FY2012 onwards with suitable changes if required, envisages meaningful reduction in the tax rates while simultaneously being revenue neutral for the government. It aims to achieve this by increasing the tax base and rationalising the myriad tax incentives prevalent under the current law. In our view, the overall changes proposed will be quite beneficial for a number of sectors and companies, albeit definitively withdrawing tax holidays being currently enjoyed by different sectors, something that has been contemplated and proposed often in the past and therefore should not come as a major negative surprise.
Reserve Bank of India (RBI) credit policy review
29 July 2009 | RBI kept all key rate unchanged as expected by market. RBI Remained cautious and not increased its yearly expectation of 6% growth in GDP. This was mainly on account of delayed monsoon. But with the improving domestic industrial scenario, governor has indicated that RBI has positive bias for GDP growth of 6%. The Industrial Outlook Survey of the Reserve Bank, conducted during April-May 2009, shows a turnaround in the business sentiment. The assessment for Q1 of 2009-10 suggests that the slide in sentiment in the preceding three quarters has been arrested on key indicators such as production, order book position, capacity utilisation, financial situation and availability of finance.
Indian monetary policy preview (1QFY2010)
28 July 2009 | Ever since September 2008, when the global crisis intensified, Central banks across the world have resorted to unprecedented fiscal stimulus and monetary easing to revive economic activity, bring down interest rates and unfreeze financial markets. Due to structural advantages like favorable demographics, low leverage and wide gap in productivity levels creating scope for rapid catch-up, emerging markets have naturally been the first to respond positively to this growth stimulus, though we are still a long distance from pre-crisis growth trajectories. In case of India, the good news is that policy-makers recognize that sufficient policy tools are available to take the economy back to 8%+ GDP growth rates and are therefore not aiming for less. We still need public spending to prop up economic activity over the next 6-12 months so that a 7-8% growth rate can be maintained to its credit, the budget fulfils this need, by stepping up expenditure by Rs1.2lakh cr over last year. Throughout the crisis, the RBI has also been very proactive in providing liquidity to the system, releasing about Rs2.5lakh cr in the form of CRR cuts and MSS redemptions and also cutting the Repo and Reverse Repo rates rapidly to 4.75% and 3.25% from peaks of 9% and 6% respectively. As a result, broader lending and deposit rates have also gradually come down by 200-300bp on an average.
Agriculture sector can bring another boom in the Indian stock market
3 July 2009 | Agriculture is the backbone of Indian economy. About 65% of the population depends directly on agriculture and it accounts for around 22% of the Indias GDP. Agriculture is important because of the vital supply and demand link with the manufacturing sector. Share of agriculture sector in Indias GDP has declined from 48% in 1950 to around 20% in 2007. In past few years India has sustainable growth in food production and incomes along with diversification both in consumption and production. Food security and sustainability our major goal has been fulfilled. Now agriculture sector is at point from where it can take big leap. It has been growing at rate of 2.2% which very Hindu rate growth. If India needs to sustain its economic growth rate of 9% in coming years agriculture sector growth rate needs to be pushed to around 4-5% level, task seems difficult but it can be achieved through proper planning.
Mobile Number Portability in India
26 June 2009 | The Indian telecom industry is about to launch Mobile Number Portability (MNP) in a phased manner, commencing September 2009 and to be completed by March 2010.
India is the 8th nation in Asia to launch MNP. MNP is effective in those markets which are highly competitive, with high penetration levels.
On the positive side, MNP offers flexibility to the mobile subscriber to change his/her service provider, while on the negative side, it fuels competition among service providers. In a competitive market like India, the real beneficiaries of MNP would be the subscribers, who will get better service offerings at competitive prices.
New Pension System (NPS) in India: A Blessing for Equity Markets
6 May 2009 | The Pension Fund Regulatory and Development Authority (PFRDA) was established by the Government of India in August 2003 mainly to promote old age income security by establishing, developing and regulating pension tunds and to protect the interests ot subscribers to schemes ot pension funds.
As a tirst step towards instituting pension reforms, the Government of India moved from a defined benefit pension to a defined contribution based pension system by making the New Pension System (NPS) mandatory for its new recruits (except armed forces) with effect from January 1, 2004.
The NPS architecture was made operational for Central Government employees from April 1, 2008, and has also been offered to State Governments to manage the pension corpus of their employees. The State Governments are at different stages of adopting the NPS.
Consolidated Q4FY09 Result Analysis - Sesa Goa Ltd.
22 April 2009 | Keynote Capitals presents consolidated Q4FY09 result analysis of Sesa Goa Ltd., India's largest exporter of iron ore in the private sector.
Reserve Bank of India (RBI) Annual Credit Policy (2009-2010)
22 April 2009 | Keynote Capitals presents key highlights of the credit policy of Reserve Bank of India
Update on Basel II Norms for Indian Banks
13 April 2009 | In report "Basel II Norms in Indian Banking" (dated March 12, 2009) Keynote Capitals had presented the results ot our study to assess the compliance levels ot banks with Basel II norms. This report gives an update on details pertaining to recapitalisations in these banks as well as the recent developments tor Basel implementation in India.
Basel II Norms for Indian Banks
12 March 2009 | The process of implementing Basel II norms in India is being carried out in phases. Phase I has been carried out for foreign banks operating in India and Indian banks having operational presence outside India with effect from March 31,2008.
Tata Steel Ltd. consolidated 3QFY09 result analysis by Keynote Capitals
5 March 2009 | Keynote Capitals presents Tata Steel Ltd. consolidated 3QFY09 result analysis.
Tata Steel is among the top six steel makers globally with a consolidated capacity ot 30mn tonnes post acquisition ot UK-based Corus Group Pic. Tata Steel's Indian operations have a capacity ot 6.8mn tonnes, which makes it the second largest steel manufacturer in India. The installed capacity is bifurcated into 3.3mn tpa of flat products and 3.5mn tpa of long products.
Replacement Cost in Indian Cement Industry
5 March 2009 | The cement industry in India has undergone a major shitt over the last 6 years. The increased industrial investments, infrastructure boom and revival of the real estate sector in the last 3-4 years (till a couple of quarters ago) caused the demand for cement to grow at a CAGR of 10.6% over the last 5 years. In addition, cement prices kept heading north due to the supply crunch and cement stocks remained in the limelight.
Q3-FY09 Results Update - Motilal Oswal Financial Services
15 January 2009 | Keynote Capitals presents update on the Q3-FY09 results of Motilal Oswal Financial Services Ltd., a diversified financial services company.
Slowdown in Consumerism in India (report by Keynote Capitals)
23 December 2008 | Keynote Capitals analysed the financial performance of 54 listed companies from personal consumption driven industries, viz., FMCG, food products, multiplex operators, automobile (passenger vehicles), consumer durables, newspaper publishing, retailing and jewellery manufacturing on three criteria, viz., revenue growth, EBITDA margin and net profit growth.
Changing FII holdings in Indian Banks
31 October 2008 | Banking has been one of the favorite sectors of institutional investors. Over the last few years, Indian banking stocks have been attracting attention of FIIs due to major reforms in the sector (particularly the enactment of the SARFAESI Act in 2002).
Motilal Oswal Financial Services Q2-FY09 Results Highlights
16 October 2008 | The highlight of MOFSLs Q2 results is the continued focus on reducing the share of broking income in the revenue mix.
Broking revenues have a strong correlation with stock market movements, and are seen as volatile.
Pyramid Saimira Theatre - Reduction in theatre portfolio
30 September 2008 | Pyramid Saimira Theatre Ltd. (PSTL) has reduced its theatre properties and decided to curtail its expansion plans, in view of the slowdown in the entertainment sector, stemming largely from seemingly reducing disposable income in the hands of consumers.
Ballarpur Industries FY08 Results - Concall Notes
29 August 2008 | Keynote Capitals presents the highlights of their analysis note on the FY08 (June 2008) results concall of Ballarpur Industries Ltd., a leading paper manufacturer with market cap of Rs1836Cr ($419mn).
Indian Market Review from Keynote Capitals: Low Dividend Yield Stocks
19 August 2008 | Both in bull and bear markets, a large number of investors seek out high dividend yield stocks, as the latter apparently provide returns similar to that on say fixed deposits with banks. Most investors view high dividend yield stocks as safe bets. However, investors tend to overlook the fact that the primary objective of equity investments is capital gains, rather than fixed returns.
Pyramid Saimira Theatre Q1 Results update
5 August 2008 | Pyramid Saimira Theatre Ltd. (PSTL) reported a higher standalone topline q-o-q, mainly because of higher food & beverage (F&B) revenues.
Q1-FY09 Results Update - Temptation Foods
1 August 2008 | Keynote Capitals presents the highlights of their update on the Q1-FY09 results of Temptation Foods Ltd., a leading fruits and vegetables processor
Analyst meet notes - Max India
22 July 2008 | Keynote Capitals presents notes on the recent analyst meeting of Max India. MIL is diversified into life Insurance, healthcare, clinical research business and specialty packaging segments.
Con-call Notes - GTL Infrastructure
21 July 2008 | Keynote Capitals presents notes on todays con-call of GTL Infrastructure Ltd. (market cap $660mn).
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Indian stock market daily morning report (February 09, 2010, Tuesday)
The Sensex bounced back from the early slide yesterday, closing with marginal gains. The Governments forecast that the economy would grow by 7.2% this fiscal year, reinforcing expectations of strong industrial growth, along with positive European markets helped markets recover. Most of the buying was seen in capital goods, banking and real estate stocks, whereas metal and auto stocks witnessed selling pressure. Market breadth was marginally weak at around 0.92x. FIIs sold equities worth Rs9.35bn, while domestic institutions bought equities of Rs3.8bn.
Indian stock market and companies daily report (February 09, 2010, Tuesday)
The benchmark indices logged marginal gains after swinging sharply in highly volatile trade. IT stocks played the lead role in the recovery; however, metal pivotals remained subdued, as metal prices fell on the LMEX. Telecom stocks advanced on bargain hunting. Rate-sensitive banking shares recovered from the day's low, while auto stocks were mixed. The BSE Sensex and the NSE Nifty rose by a marginal 0.1% each. The BSE Mid-cap and Small-cap indices were down by 0.1% each. Among the front-liners, Bharti Airtel, RCOM, ONGC, HLL and M&M were up by 2-3%, while Tata Steel, Hindalco, Wipro, Jaiprakash Associates and NTPC were down by 1-4%. In the mid-cap segment Chambal Fertilisers, Nagarjuna Fertilisers, Core Projects, Kansai Nerolac, Procter & Gamble were up by 5-7%, while Indraprashtha Gas, Gujarat NRE Coke, Torrent Pharma, Spice Communications and REI Agro, were down by 4-9%
Indian stock market daily morning report (February 08, 2010, Monday)
The Sensex continued its downward trend last Friday, closing below the 16,000 mark on concern over Europe's sovereign debt, indications of weak US jobs data and a fall in commodity and energy prices. Persistent selling pressure was seen across the board and all sectoral indices closed negative with real estate, metals and capital goods stocks were the worst affected. Auto stock also declined after a government-appointed panel recommended additional duty on diesel-powered vehicles. Indian markets were open for a couple of hours last Saturday, for the purpose of software testing. Market breadth was extreme weak at around 0.21x as investors sold large cap stocks. FIIs sold equities worth Rs17.2bn, while domestic institutions bought equities of Rs11.68bn.
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Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWELs upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
| | Indian News |
Indian auto sector monthly update (January 2010), 5 February 2010
Indian Banking Report January-February 2010, 4 February 2010
Indian telecom monthly update (December 2009), 3 February 2010
Third quarter review of Indian monetary policy 2009-10, 1 February 2010
Indian Banking fortnightly report (January 2010), 18 January 2010
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