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Recent Reports

Pantaloon - Snapshot - PLans to Double Store Base Over Next Three Years - Archived 9/15/2011
Pantaloon Retail (India) is a leader in the value-based retail stores market in India. Currently operating about 15.7 million sq. ft. of space the company plans to double the number of stores over the next three years. Initiating coverage- BUY
Nestle India - Solid Margins Despite Cost Increases - BUY - Archived 9/6/2011
Initiation of coverage on leading fast-moving consumer goods (FMCG) company in the processed food industry. 85% market share in the infant foods & nutrition market which is expected to grow at a 20% CAGR over the next three years.
NPTC - Company Snapshot - Outlook - BUY - Archived 8/4/2011
One of the largest power generating companies in India accounting for 20% of installed capacity. Power demand in India is expected to be robust with real economic growth expectations of 8%.
Crompton Greaves - $3.4 bn Mkt Cap Play on Electricity in EM - BUY - Archived 5/27/2011
Global leader in engineering & power equipment manufacturing. Solid play on electricity generation, transmission and distribution in India and other emerging markets. 
Company Snapshot - Jain Irrigation - Archived 4/12/2011
This high-growth company provides quality exposure to growth in irrigation and water infrastructure in India.
Corporate Governance Review of Mahindra & Mahindra - Archived 3/14/2011
This analysis of corporate governance at Indian automotive and IT company Mahindra & Mahindra assigns a CG rating and examines accounting issues at the company.
JSW Steel - Corporate Governance, Related Party Transacitons and Ownership - Archived 10/11/2010
This piece analyzes the related party transactions and cross-holdings of the various companies in this group.
Bajaj - Hoding Co at 40% - 50% Discount to Holdings - Archived 9/30/2010
Bajaj Holdings provides investors the opportunity to buy into Bajaj auto, the banking and insurance sectors in one vehicle.  The holding company trades at a 40% - 50% discount to the holdings of the underlying.
SHTF - Leader in Commercial Vehicle Financing in India - HOLD - Archived 9/27/2010
STFC established the business of providing finance for used commercial vehicles in India and is the dominant player in this space.  Recent strong run in the shares limits upside.
Pidilite - Adhesive Co in India - Growth - BUY - Archived 7/13/2010
Well-known brand for glue and adhesives in India.  Expanding products and geographies.
PVR - Leading Cinema Operator in India - Strong Growth - BUY - Archived 6/30/2010
As the leading operator of multiplex cinemas in India, PVR is a well-positioned play on continued growth in consumer spending in India.
Hero Honda - Well-positioned Play on Consumer in India - BUY - Archived 6/18/2010
Hero Honda is the market leader in motorcycles and scooters in India.  Growing demand for personal transportation and rising consumer spending will boost sales.
DIST - Sri Lankan Consumer Play with Solid Upside - BUY - Archived 5/27/2010
Sri Lanka has emerged from a protracted civil war to become a peaceful and growing country.  Distilleries of Sri Lanka is a diversified play on this growth.
IDFC - Valuation Concerns - SELL - Archived 5/25/2010
Shares in IDFC - one of the major financial groups in India has been pushed higher by the market on the expectation of a banking license and other boosts to earnings.  We believe the valuation is well out of line with fundamentals.  SELL
M&M - Strong Play on Rural India - BUY - Archived 5/10/2010
Mahindra & Mahindra is the leading provider of utility vehicles and basic motorized transportation to rural India.  The company has long dominated this space and is successfully moving into other transport products both in India and abroad.
Pantaloon - Largest Retailer in India - Strong Growth - Archived 5/4/2010

India’s burgeoning economy, coupled with its rising consumer income & spending, propels retail industry growth.  While organized retail penetration is low in India, it is growing and attracting retailers across the globe.  Pantaloon Retail (India) Ltd. is India’s largest organized retailer with a diversified portfolio of retail formats.
LIC - Leader in Indian Housing Finance -BUY - Archived 4/19/2010
With a mortgage to GDP ratio of 7%, India’s housing finance market is highly under-penetrated. This ratio stands at 12% for China and 80% for the US. Given India’s demographic profile, increasing urbanization and increasing affordability; we believe the housing finance market will continue to grow.   LIC Housing Finance (LICHF) is India’s second biggest non bank mortgage lender.
KSO - Indian Oil Co Provides Solid Consumer Play - BUY - Archived 3/29/2010
Initiating coverage on KS Oils - a fast-growing provider of edible oils in India.   The company has a strong position in mustard seed oil and an expanding presence in palm oil.  Significant upside potential.
GCPL - Indian Consumer Play - Archived 3/22/2010
Godrej provides lower-price point hair dyes and soaps to the consumer markets in India and Africa - we believe that both organic and acquired growth will continue near-term and would be BUYers of the stock near-term.
TATA COMMUNICATIONS - LACK OF BUSINESS VISIBILITY - SELL - Archived 1/25/2010
Tata Communications Ltd (TCL) is one of the largest international voice players in the world. The company is now trying to diversify from this low margin low growth voice business to high growth high margin enterprise data and carrier business and other businesses like virtualization, broadband and WiMax.

ASHOK LEYLAND - DOWNGRADE TO SELL ON REVENUE & PROFIT DECLINES AS WELL AS OVER-VALUATION - Archived 9/2/2009
Q1FY10 results were a disaster with Revenues and Profits down sharply.

M&M - GOOD EXPOSURE TO INDIAN AUTO TRENDS BUT EXPENSIVE - BUY ON DECLINES - Archived 9/1/2009
In Q1FY10, the Company posted 29% YOY increase in its net revenues as well as a sequential rise of 16.1% to INR42,425.9 mn on the back of growing domestic sales volume. EBITDA and bottom-line profits were also strong on lower raw materials costs and lower interest expense.

WIPRO CONTINUES TO FACE VOLUME DECLINES - SELL - Archived 8/10/2009
Wipro Limited, along with its subsidiaries (Wipro), posted a 6.3% YOY growth in net revenues to INR64,146 mn in Q1FY10. However, net revenues dropped 1.7% on QOQ basis.
MARUTI SUZUKI - SOLID RESULTS BUT LOSING MARKET SHARE AND OVERVALUED - SELL - Archived 8/5/2009
In Q1FY10, Maruti Suzuki reported net revenues growth of 34% growth YOY. This growth is attributed to a reduction in excise duty and an increase in average realization per vehicle.
INFOSYS TECHNOLOGIES - IMPROVING MARGIN GUIDANCE FOR FY2010 - MAINTAIN SELL - Archived 7/29/2009
The results for the quarter were better than the guidance provided by the company. Revenues in dollar terms were higher than the upper end of the guidance and EPS was much higher than what was guided by the company. In rupee terms, revenues declined by 2.9% sequentially, while EPS declined by 5.4%, better than the guidance of a decline of over 16%.

BAJAJ AUTO LIMITED - MARGINS RISE ON LOWER COMMODITY PRICES - BUT CONTINUED LOSS OF MARKET SHARE - SELL - Archived 7/29/2009
In Q1-FY10, Bajaj Auto reported a 1.2% YOY rise in net operating income to INR23.3 bn and a 67.6% YOY rise in net profit to INR2,934.9 mn.
MARUTI SUZUKI - MARGIN AND COMPETITIVE PRESSURES - SELL - Archived 4/29/2009
In Q4FY09, Maruti Suzuki reported net revenues of INR64,329 mn, up 30.1% on YOY basis. Net profit of the Company declined 18.3% YOY due to higher costs.

TCS - INDIAN IT SERVICES CO. FACES PRICING PRESSURE AND AN UNCERTAIN OUTLOOK - SELL - Archived 4/24/2009
Tata Consultancy Services Limited (TCS) provides IT, business solutions and outsourcing services to a global clientèle.
  • In Q4FY09, TCS registered a 18.5% YOY growth in revenues while other expenses (as a percentage of revenue) came down by 340 bps YOY to 38.5%. The Company’s net profit was up 7.3% YOY to INR13.3 bn. The Company witnessed a 100 bps YOY improvement in operating margin net profit margin, however, was down 200 bps YOY.
  • During FY09, at operational level, the Company derived 56.2% of its revenue from America and 29.% from Europe. The Banking, Financial Services and Insurance (BFSI) segment generated 42.3% of total revenues, a decline of 130 bps YOY.
  • The current manpower of TCS stands at 143,761. In Q4FY09, the Company added 17,489 people at the gross level.
  • In recent discussions management commented that despite the unpredictable and tough economic environment, the Company registered an 18% growth in volumes. However, there was a reduction in new software development projects. Also, the Company witnessed price re-negotiations, which impacted its margins to the extent of 4%-8%.
  • The market situation is likely to further intensify competition among outsourcing vendors, making it difficult for IT companies to demand an upward revision in prices in the near-term. We, therefore, maintain a cautious stand on the IT sector and the Company’s long-term performance, and maintain our ‘Sell’ recommendation on the stock.
HERO HONDA - LEADING INDIAN MOTORCYCLE PLAY SEES STRONG GROWTH & WIDENING MARGINS - BUY ON DECLINES - Archived 4/22/2009
During FY09, Hero Honda Limited reported solid revenue growth of 19.2% YOY as a result of reasonable growth in sales volume in the domestic market and a reduction in excise duty by the government of India. Falling raw material prices boosted margins and net profit of the Company grew by 32.4% YOY.
HERO HONDA - UPSIDE LIMITED BY RECENT STRENGTH - STRONG SALES - RAISING ESTIMATES - LOWERING RATING - Archived 4/9/2009
In Q3-FY09, Hero Honda posted a modest top line growth of 4.8% YOY - a 2.3% rise in average realization and excise duty concessions for the Haridwar plant offset the impact of volume decline.
WIPRO - INDIAN IT LEADER WITH HEAVY DEVELOPED MARKET AND CUSTOMER CONCENTRATION - SELL - Archived 3/30/2009
Wipro Limited (Wipro), the third largest IT/ITES services provider in India. The Indian IT/ITES sector has suffered a severe blow from the global economic downturn, especially in the developed economies such as the US, UK and Eurozone. The sector’s large revenue dependence on the Banking, Financial Services and Insurance (BFSI) segment, which is still reeling under pressure, has proved its undoing in the recent past.
We see considerable downside in the shares and rate it a SELL.
MARUTI SUZUKI INDIA LIMITED - BUMPY ROADS AHEAD, BUT WELL POISED TO STEER THROUGH THE ROUGH PATCH - - Archived 2/18/2009
In Q3-FY09, Maruti Suzuki reported net revenue of INR46.3 bn, down 2.8% YOY due to a combined effect of a 14.0% YOY drop in vehicle sales (domestic and exports) and a 9.4% YOY growth in average realization per vehicle. Net profit for Q3-FY09 dipped 54.3% YOY to INR2.1 bn, the lowest level in the last 17 quarters.

BAJAJ FINSERV LIMITED - KEY PLAYER IN GROWING INDIAN INSURANCE MARKET - BUY - Archived 2/18/2009
Bajaj Finserv Limited (BFL) has diversified business interests in life and non-life insurance, asset financing and wind power generation. The Company holds a 74% stake in each of its two joint ventures with Allianz SE, namely Bajaj Allianz Life Insurance Company (BALIC) and Bajaj Allianz General Insurance Company (BAGIC). It also holds a 40.2% stake in Bajaj Auto Finance Limited, a company engaged in the financing of consumer durables, personal and business loans.

HOUSING DEVELOPMENT FINANCE CORPORATION LTD. - A MARKET LEADER IN HOUSING FINANCE - BUY - Archived 2/16/2009
HDFC Limited, incorporated in 1977 with an initial share capital of INR100 mn, is the numero uno company in the Indian housing finance industry. It was the first private sector housing finance company (HFC) in India. It has an impressive marketing and distribution network which enables it to deliver prompt and efficient services to its end consumers. The Company of late has diversified into new segments with subsidiary investments in banking, insurance and asset management businesses.
ORACLE FINANCIAL SERVICES SOFTWARE LTD – NET PROFIT MORE THAN DOUBLED IN Q3FY09 – BUY - Archived 2/5/2009
Formerly known as i-flex Solutions, Oracle Financial Solution Software Ltd. (OFSS) provides a range of IT products, IT services and knowledge process outsourcing (KPO) services exclusively to financial sector companies. Some of its well-known products such as FLEXCUBE, Reveleus, Mantas, Daybreak, etc. are registered trademarks of the Company.

ASHOK LEYLAND LIMITED – SUBDUED PERFORMANCE IN NEAR TERM; MAINTAIN A POSITIVE STANCE IN THE MEDIUM T - Archived 2/4/2009
In Q3-FY09, Ashok Leyland reported a 44.1% YOY drop in net revenue to INR10.0 bn and an 84.3% YOY decline in net profit to INR188.6 mn. Due to a sharp fall in demand, almost 65%, from key regional markets such as southern and western India, the Company’s domestic sales plunged 64.1% YOY to 6,159 units. The EBITDA margin for the quarter slid 90 bps to 8.3% as the benefit from aggressive cost cutting measures were offset by higher fixed cost structure.

WIPRO LIMITED – TOUGH PRICING ENVIRONMENT COUPLED WITH MUTED REVENUE GUIDANCE – SELL - Archived 1/23/2009
Wipro Limited, the third largest IT/ITES service provider in India, offers an array of IT/ITES services across various verticals through its global delivery model. Apart from IT services, the Company is also engaged in the manufacturing and distribution of soaps, toiletries, lighting products, hydrogenated cooking oils and infrastructure engineering.  

TCS - MUTED MARGIN GROWTH - SELL - Archived 1/22/2009
Tata Consultancy Services Limited (TCS), the largest Indian IT (information technology) company with a turnover of INR228.6 bn in FY08, offers a complete range of IT/ITES services across various verticals through its global delivery network.

BAJAJ AUTO LIMITED – Q3 -FY09:NET PROFIT DOWN 22.2% YOY – SELL - Archived 1/22/2009
In Q3-FY09, Bajaj Auto reported a 15.9% YOY decline in net revenue to INR21.0 bn and a 22.2% YOY fall in net profit to INR1,662.1 mn. Vehicle sales in the domestic market dropped 50.3% YOY to 278,517 units as a combined effect of unwillingness on the part of the banks to finance two wheeler loans (stricter credit norms), higher cost of vehicle financing and the economic slowdown. Export sales, however grew at a healthy pace of 41.1% YOY to 215,233 units, partially compensating for the subdued performance in the domestic market.

HERO HONDA - STEERING SMOOTH THROUGH BUMPY ROADS - BUY - Archived 1/22/2009
In Q3-FY09, Hero Honda posted a modest topline growth of 4.8% YOY to INR28.8 bn. Net profit grew by 9.2% YOY to INR3.0 bn. The
Company’s vehicle sales dipped 4.0% YOY to 857,806 units, primarily due to the slowdown in the Indian economy and higher cost of
vehicle financing. However, a 2.3% rise in average realization and excise duty concessions for the Haridwar plant offset the impact of
volume de-growth.
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Coverage

Adhunik Metaliks Ltd (ADME.BO) Add to my Watch List
Ambuja Cements Ltd. (ACEM) Add to my Watch List
Amtek Auto (AMTEK IN) Add to my Watch List
Arshiya International Ltd (ARTC.NS) Add to my Watch List
Ashok Leyland (ASOK.BO) Add to my Watch List
Asian Paints Ltd. (ASIANPAINT-IN) Add to my Watch List
Associated Cement Companies Ltd (ACC) Add to my Watch List
Automotive Axles Limited (ATXL IN) Add to my Watch List
Aventis Pharma Ltd (AVENTIS) Add to my Watch List
Bajaj Finserv Limited (BJFS.BO) Add to my Watch List
Bajaj Holding and Investment Limited (BAJAT.BO) Add to my Watch List
Bayer CropScience Ltd (BAYE.NS) Add to my Watch List
Bharti Tele-Ventures (BHARTI) Add to my Watch List
Blue Dart Express Ltd (BLDT.NS) Add to my Watch List
Britannia Industries Ltd (BRIT.NS) Add to my Watch List
Carborundum Universal Ltd (CARBORUNIV) Add to my Watch List
Cinemax Ltd (CIMA BO) Add to my Watch List
Cipla Ltd (CIPL.NS) Add to my Watch List
Clutch Auto Limited (CLTO IN) Add to my Watch List
Cognizant Technology Solutions Corporation (CTSH.OQ) Add to my Watch List
Colgate Palmolive India Ltd (COLG.NS) Add to my Watch List
Crompton Greaves Ltd (CROM.NS) Add to my Watch List
Dabur India Ltd. (DIL) Add to my Watch List
Dish TV (DTV) Add to my Watch List
Distilleries Co of Sri Lanka (DIST:SL) Add to my Watch List
Dr. Reddy's Laboratories (DRL) Add to my Watch List
Eicher Motors Limited (EIM.IN) Add to my Watch List
Exide Industries Limited (CHLR IN) Add to my Watch List
Fauji Fertilizer Company Ltd. (FAUF.KA) Add to my Watch List
Gateway Distriparks Limited (GDPL) Add to my Watch List
GlaxoSmithKline Consumer Healthcare Limited (GLSM.BO) Add to my Watch List
Godrej Consumer Products (GCPL.BO) Add to my Watch List
Grasim Industries Limited (GRASIM) Add to my Watch List
Gujarat Pipavav Port Ltd (GPPL.NS) Add to my Watch List
HDFC Bank (HDB) Add to my Watch List
HDFC Bank Ltd. (HDFCBANK-IN) Add to my Watch List
HDFC Limited (HDFC IN) Add to my Watch List
Hero Honda LTD (HROH.BO) Add to my Watch List
Hexaware Technologies Pvt Ltd (HEXW.BO) Add to my Watch List
Hindustan Unilever Ltd (HLL.NS) Add to my Watch List
Hirco PLC (HRCO.LM) Add to my Watch List
I-Flex Solutions (IFLX.BO) Add to my Watch List
ICICI Bank Ltd (IBN) Add to my Watch List
Idea Cellular (IDEA) Add to my Watch List
IDFC (IDFC) Add to my Watch List
IDFC Limited (IDFC.IN) Add to my Watch List
Info Edge (NAUKRI) Add to my Watch List
Infosys (INFY) Add to my Watch List
Inox Leisure Ltd. (INOX) Add to my Watch List
Investment Information and Credit Rating Agency (ICRA) Add to my Watch List
ITC Ltd. (ITC) Add to my Watch List
Jain Irrigation (881275.IN) Add to my Watch List
JSW Steel (JSWSTEEL.NS) Add to my Watch List
Just Dial Ltd (JUST.NS) Add to my Watch List
Jyothy Laboratories Ltd (JYOI.NS) Add to my Watch List
KPIT Cummins Infosystems Ltd. (KPIT.BO) Add to my Watch List
KS Oils (KSO IN) Add to my Watch List
Larsen and Toubro Ltd. (LT) Add to my Watch List
LIC Housing Finance Ltd. (LIC HF) Add to my Watch List
Madhucon Projects Ltd (MDHPJ) Add to my Watch List
Mahangar Telephone Nigam Ltd (MTE) Add to my Watch List
Mahindra & Mahindra Limited (MAHM.BO) Add to my Watch List
Mahindra & Mahindra Ltd (M&M) Add to my Watch List
Marico Industries Ltd. (MRCO) Add to my Watch List
Maruti Suzuki (MSIL IN) Add to my Watch List
Maruti Suzuki India Ltd (MARUTI) Add to my Watch List
Maruti Udyog Limited (MUL) Add to my Watch List
Merck Ltd (MERK.NS) Add to my Watch List
MindTree Consulting (MINT.NS) Add to my Watch List
Motherson Sumi Systems Limited (MOSS:OB) Add to my Watch List
Motor Industry Corp (MICO) Add to my Watch List
Nagarjuna Construction Company Ltd (NJCC.IN) Add to my Watch List
Nestle India Ltd. (nest.ns) Add to my Watch List
NIIT Technologies Ltd (NTL) Add to my Watch List
NTPC Limited (ntpc.ns) Add to my Watch List
Oracle Financial Services (ORCL.BO) Add to my Watch List
Pantaloon Retail (India) Limited (Pantaloon) Add to my Watch List
Patni Computers (PTNI) Add to my Watch List
Pfizer India Ltd (pfizer) Add to my Watch List
Pidilite Industries Ltd (PIDI IN) Add to my Watch List
Power Grid Corporation (POWERGRID) Add to my Watch List
Pricol Limited (PRIC.IN) Add to my Watch List
PVR Limited (PVRL IN) Add to my Watch List
Rajesh Exports Limited (REXP.BO) Add to my Watch List
Ranbaxy Laboratories Limited (RBXY) Add to my Watch List
Rediff.com (REDF) Add to my Watch List
Reliance Capital (RCAP) Add to my Watch List
Reliance Communications Ltd. (RCOM) Add to my Watch List
Rico Auto Industries (RAI IN) Add to my Watch List
Sanofi India Ltd (SANO.NS) Add to my Watch List
Sasken Communication Technologies Limited (SKCT.BO) Add to my Watch List
Satyam Computers (SATY) Add to my Watch List
Shopper's Stop Limited (SHOP.BO) Add to my Watch List
Shriram Transport Finance (SHTF IN) Add to my Watch List
Sona Koyo Steering Systems Limited (SKSS) Add to my Watch List
Speciality Restaurants Ltd (SPRE.NS) Add to my Watch List
State Bank of India (SBIN) Add to my Watch List
Sundaram Clayton Limited (SDC IN) Add to my Watch List
Sundram Fastener Limited (SNFS.BO) Add to my Watch List
Suzlon (Suzlon) Add to my Watch List
Tata Communications Ltd. (TCL) Add to my Watch List
Tata Consultancy Services (TCS.BO) Add to my Watch List
Tata Motors (TTM) Add to my Watch List
Tata Teleservices (TTLS) Add to my Watch List
Tech Mahindra Limited (Ticker) Add to my Watch List
Torrent Pharmaceuticals Ltd (TORP.NS) Add to my Watch List
Trent Limited (LAKME IN) Add to my Watch List
TVS Motors (TVSL IN) Add to my Watch List
UTI Bank (UTI) Add to my Watch List
Videsh Sanchar Nigam, LTD (VSNL) Add to my Watch List
Vishal Retail Ltd (VISH IN) Add to my Watch List
Wipro Limited (WIPR.BO) Add to my Watch List
Wire and Wireless India Ltd. (WNW IN) Add to my Watch List
WNS (Holdings) Ltd. (WNS) Add to my Watch List
Zee Enternatinment Enterprise Limited (ZIN) Add to my Watch List
Zee News Limited (ZNL) Add to my Watch List