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Archive for October, 2008

Reliance Capital Q2 net up 15 pct

Posted by Yogesh on Friday, 31 October, 2008

Oct 31 (Reuters) – (Reuters) – Three months ended Sept 30.

(versus the same period a year earlier, in billion rupees unless stated)

Net profit 2.3 vs 2.0

Total income 13.1 vs 9.5

NOTE: Reliance Capital is a financial services firm.

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Essar Oil posts Q2 net profit

Posted by Yogesh on Friday, 31 October, 2008

Oct 31 (Reuters) – Three months ended Sept. 30

(versus the same period a year earlier, in million rupees unless stated)

Net profit/(loss) 260 vs (140)

Total income 137,170 vs 1,780

NOTE: Essar Oil is a private refiner.

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Suzlon posts consolidated net loss in Q2

Posted by Yogesh on Friday, 31 October, 2008

* Suzlon posts Q2 loss on consolidated basis

* Provision for faulty blades, forex losses hurt

* Working on deal to increase REpower stake

MUMBAI, Oct 31 (Reuters) – Indian wind turbine maker Suzlon Energy Ltd’s posted a September quarter loss as earnings were hit by foreign exchange losses, and said it had set aside $10 million to fix a problem with some turbine blades.

Chairman Tulsi Tanti said Suzlon, the world’s No. 5 wind turbine maker, was working out a new payment schedule to increase its controlling stake in Germany’s REpower after it cancelled a $360 million rights issue earlier this week. Read the rest of this entry »

Posted in Financial Result | Tagged: , | 1 Comment »

Power Grid July-Sept net rises 7 pct

Posted by Yogesh on Friday, 31 October, 2008

Oct 31 (Reuters) – Three months ended Sept 30.

(Versus the same period a year earlier, in billion rupees unless stated)

Net profit 3.96 vs 3.71

Total income 16.73 vs 11.13

NOTE: Power Grid Corp of India Ltd is a state-run transmission utility.

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Ranbaxy posts Q3 loss as forex hurts

Posted by Yogesh on Friday, 31 October, 2008

NEW DELHI, Oct 31 (Reuters) – Ranbaxy Laboratories, India’s top drug maker by sales, on Friday reported standalone net loss of 3.53 billion rupees ($71.5 million) for the September quarter, on foreign exchange losses.

Ranbaxy, in which Japan’s Daiichi Sankyo has taken a controlling stake, had posted net profit of 1.68 billion rupees in the year-ago quarter. Reuters

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Hindalco Q2 beats fcast, says prices to weaken

Posted by Yogesh on Friday, 31 October, 2008

* Profit rises 12 pct to 7.2 bln rupees, beating forecast

* Slowing demand, global crisis to hit prices in near term

* Rules out production cut, to speed up expansion

MUMBAI, Oct 31 (Reuters) – Hindalco Industries Ltd, India’s top aluminium maker, on Friday posted a record quarterly profit, beating forecasts, but cautioned that slowing demand and a global financial crisis will hurt prices in the near term.

A U.S. recession and waning demand in Europe and China would push prices down further in aluminium and copper, key segments for Hindalco, but Managing Director Debu Bhattacharya ruled out any production cuts. Read the rest of this entry »

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Bharti Q2 net lags forecast, Reliance beats

Posted by Yogesh on Friday, 31 October, 2008

* Bharti net profit up 27 pct, lags forecast on forex loss
* Reliance Comm beats forecast with 17 pct rise in profit
* Companies optimistic of future growth

NEW DELHI, Oct 31 (Reuters) – Leading Indian mobile operator Bharti Airtel posted a smaller-than-expected 27 percent rise in profit as sharp forex losses weighed, but No. 2 Reliance Communications beat forecasts after higher treasury income.

Bharti and Reliance, which both failed to reach a deal to tie up with South Africa’s MTN Group earlier this year, both increased subscriber numbers by about a tenth in the September quarter.

The two companies, which together account for about 42 percent of India’s mobile subscribers, were bullish on their prospects in the world’s fastest-growing wireless market, saying demand should hold up even if overall economic growth slows. Read the rest of this entry »

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Indian Equity – Investment Haven

Posted by malvika15 on Friday, 31 October, 2008

Value emerges in Indian equities due to stiff correction. BSE Sensex has corrected by 63.1% from its peak level of 20,873 to current level of 7,697. India economics is resilient among the global turmoil, with projected GDP growth of 7% for the year 2009. Major thrust on infrastructure creation, burgeoning middle class and global aspirations of Indian corporate makes India an exciting place for investments. Factors enumerated below makes our case for staying invested.

Robust Economic Fundamentals

  • GDP growth of around 7% in 2009 would still put India among the world’s fastest-growing economies. Many of India’s fundamentals remain sound.
  • During April-August 2008, exports rose 35% in dollar terms, while imports rose 37.7%, indicating sustained demand. Capacity is being added in numerous sectors, including power, steel, oil and cars.
  • Foreign direct investment during April-August 2008 was a record US$14.8bn (a 114% rise over the corresponding period of the previous year)
  • Finally, India’s banks are well-capitalized and well-regulated, there is no domestic bad-loan crisis, and Indian banks have only a marginal exposure to overseas credit markets.

Swift RBI intervention to counter slowdown

  • RBI has reduced CRR by 150 bps to infuse liquidity into the markets
  • Repo rate has also been cut by 100 bps to 8% for the first time since June-04
  • Relaxation of ECB norms and increase in interest rate for NRI deposit schemes to attract foreign inflows Cash rich Domestic Institutional biggest buyers; Foreign Investors wary
  • Domestic Institutions have piled up cash balances of around 30% and are set to invest aggressively into Indian equities.
  • Till date for the year 2008, these institutions have bought Rs.11,450 crores (approx.) of Indian equities.
  • Reversal in the trend of outflows from foreign investors could be significant catalyst.

Consistent Corporate Performance: Moderation in growth discounted

  • Aggregate results of 1,072 companies showed a 6.8% rise in net profit on 29.10% increase in net sales in Q2 September 2008 over the corresponding quarter of the previous year
  • Slowdowns in corporate earnings are discounted for in current prices.
  • BSE Sensex PE at current market prices stands at around 10x FY09 earnings.

Commodities meltdown boon for Indian corporates

  • Decline in crude prices will reign in inflation; improve current account and fiscal deficit.
  • Companies will reap the benefits of lower input cost thus maintaining the trajectory for sales and profits.

Lower inflation will spur growth

  • Inflation is expected to ease below 10% by March 2009.
  • Moderate inflation will enable RBI with more headroom for interest rate cuts, thereby promoting growth.

VC and PE firms still attracted by India’s growth Story

  • Attracted by the India growth story, VC firms are keeping up the fund-raising momentum despite an imminent global slowdown.
  • Consultancy firm Grant Thornton said that there were 31 PE deals announced in August with an announced value of US$944 million, compared to 29 deals amounting to US$650 million in the previous month.


Source : Artha Money

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Indian Equity – Investment Haven

Posted by malvika15 on Friday, 31 October, 2008

 

Indian Equity – Investment Haven

 

Artha Top Picks

 

Blue Chip Model Portfolio Risk: Low Time Horizon: 12-18 months

 

Scrip

CMP

P/E

P/B

Yield

EPS

BV

Target

Price

Upside

Axis Bank Ltd.

537.6

 

13.8

2

1.1

39

264.8

851

58.3%

Bharti Airtel

566.5

15.6

4.8

 

36.2

117.4

824

45.5%

Dr. Reddy’s Lab

425.0

13.5

1.4

0.9

31.5

303.6

581

36.7%

HDFC

1461.4

17.1

3.2

1.7

85.6

456.4

2093

43.2%

Hindustan Unilever

211

23.9

21.3

4.5

8.9

9.9

302

43.1%

Infosys

1251.9

14.4

4.6

3

86.8

272

1562

24.8%

ITC

149.1

18

4.2

2.4

8.3

36

219

46.9%

Larsen & Toubro

723.8

17.6

4

1

41.2

179.3

995

37.5%

Maruti Suzuki

518.9

9.8

1.6

1

53.2

317.7

662

27.6%

 

NTPC

126

14.7

1.8

2.8

8.6

68.5

181

43.7%

 

Mid Cap Model Portfolio Risk: Medium Time Horizon: 12-18 months

 

Scrip

CMP

P/E

P/B

Yield

EPS

BV

Target

Price

Upside

Bombay Rayon

151.4

 

7.8

1.4

1

19.5

109

278

83.6%

Crompton Greaves

148.7

15.5

5.1

1.6

9.6

29.2

247

66.1%

Divi’s Lab

933

16.8

6.2

0.4

55.6

149.9

1291

38.4%

GMR Infra

49.5

86.8

1.6

0.6

31

98.5

99%

IDFC

50.5

8.9

1.1

2.4

5.7

45.3

88

74.3%

Kotak Mah. Bank

296.6

34.1

2.8

0.3

8.7

105.6

496

67.2%

Marico Ltd.

50.4

23.4

8.9

1.6

2.2

5.7

71

40.9%

Power Grid

58.1

16.5

1.7

2.1

3.5

33.4

93

60.1%

Praj Industries

56.7

6.6

2.6

3.5

8.6

22.1

153

169.8%

Reliance Petroleum

78.4

NA

2.6

NA

29.9

158

101.5%

 

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Serial bomb blasts rip Assam, 61 feared killed

Posted by Yogesh on Thursday, 30 October, 2008

New Delhi: At least 61 people have been killed and 300 others injured in 11 bomb blasts which rocked Guwahati and some other cities of Assam on Thursday morning.

In Guwahati the blasts took place on Dispur Road, Pan Bazaar, Ganeshguri and Fancy Bazaar.

More bombs exploded in Barpeta, Kokrajhar and Bongaigoan districts. The bomb at Ganeshguri was planted in a car and took place about 100 meters from Assam Chief Minister Tarun Gogoi’s official residence. Read the rest of this entry »

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