Keynote Capitals reduced recommendation on Logix Microsystems Ltd. from "Buy" to "Neutral"
Keynote Capitals changed recommendation on Logix Microsystems Ltd. from "Buy" to "Neutral". Coverage on Logix Microsystems Ltd. (LML) was initiated on November 4, 2008 at Rs55.65, with a Buy rating and a target price of Rs110 (current price is Rs67.15). Currently earlier earnings estimates and target price are under review.
Keynote Capitals' comments:
- The company reported a lacklustre performance in Q3FY09, due to ongoing US auto slodown.
- Certain cost cutting measures like reduction in employee costs helped improved EBITDA margin. However, in our view there is a limit to margin improvement via cost cutting.
- Sales growth would be the main concern, going forward.
Logix Microsystems Q3FY09 Results Highlights
- Flat revenue growth of 2.9% on q-o-q basis and 6.9% on y-o-y basis in Q3FY09. The company added 78 clients in the quarter.
- EBITDA margin grew by 0.2% on q-o-q basis due to steep decline in the employee costs by 11.8%.
- Increase in depreciation, reduction in other income and heavy provisioning pulled the net profit down. Net profit declined by 21% on q-o-q as well as y-o-y. The company has made a provision for doubtful debts of Rs0.98Cr and written off one-time acquisition cost of Rs0.63Cr.
- The provision for doubtful debts is on account of payments which may not be collected from the customers who have shut down operations due to drastic fall in automobile sales in the US.
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Indian stock market daily morning report (September 09, 2010,Thursday)
Indian markets recovered from lower level in late trade and closed with marginal gain yesterday, outperformed global markets, which fell on renewed concerns about the health of European banks. IT stocks were major gainers despite disappointing news that the American state of Ohio has imposed a ban on outsourcing of government IT projects to offshore destinations such as India. Other than IT, other gainers were real estate, pharma and metal stocks while capital goods, FMCG and power stocks witnessed selling pressure. Sun Pharma gained 2.1% after the Supreme Court of Israel ruled in favour of the drug maker and paved the way for closing of its offer for Taro TAROF.PK.
Indian stock market daily closing report (September 09, 2010)
The markets traded in a narrow range amid high volatility and ended in green. All the major sectoral indices ended on a flat note, Banking sector being the highest gainers. The Sensex closed at 18,799 up 132 points and the Nifty was at 5,640 up 32 points after making an intra-day high of 5,647. The Mid cap and Small cap indices were up by 0.68% and 0.32% respectively. The breadth of the market was relatively flat and the total turnover recorded at Rs.1,19,105 Cr. The Sept future ended with 9 points discount. Sensex for the weak was up by 578 and Nifty was up by 161 points.
Indian stock market daily morning report (September 08,2010, Wednesday)
Indian markets continued their winning streak to hit highest level in 31 months for the second day bolstered by strong fund buying in cement, capital goods and metal stocks despite weak global cues. Cement stocks were among the big gainers on speculation that the companies were likely raise prices, with construction activity set to pick up after the monsoon season ends. Infosys Tech. and TCS closed positive after Dutch bank ABN AMRO set to renew contracts worth $1bn with IBM, TCS and Infosys. The up-move was mainly led by gains in capital goods, IT, metal and oil & gas stocks while real estate, pharma and banks stocks witnessed profit booking.
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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 JSWEL’s 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.
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