ValueNotes Industry Research Reports

Make wealth through property investments in Delhi

Property in Delhi is at its peak today due to the increasing number of migrants and population. It is among the most crowded cities in the country. Being the capital of India, Delhi offers excellent educational facilities as well as business and financial opportunities. Therefore, Delhi has become an ideal investment destination for numerous investors.

Financial Services: Beware of "Low Credit cost" banks

Prabhudas Lilladher met up with RBI recently to understand the possible changes to Dynamic Provisioning (DP) framework. Interactions suggest that RBI is keen to eliminate systemic risks v/s being concerned on near‐term sector profitability. They, thus, express a near‐term caution on low credit cost bank like Kotak/ ING/ IIB/Yes as valuations are also demanding.

Indian jewellery: RBI circular; minimal cost increase, if any

RBI recently released the circular on restriction of gold imports under the consignment route as announced in its monetary policy on 3rd May. Motilal Oswal interacted with the Jewellery managements as well as a bullion dealer to gauge the potential impact, if any, on listed players

Cement: Seems short-term election demand, the only driver for sector

Disappointing earnings in last two quarters were overlooked by investors in anticipation of better earnings outlook in H2FY14, aided by strong pre-election Govt spending. However, Prabhudas Lilladher differs on the demand prospects, given the weak outlook on ex-govt consumption (~75% of total demand) and doubts on govt spending, coupled with poor demand in all major states having elections in Nov-13

Information Technology: Q4FY13 performance was softer-than-expected

The performance of Q4FY13 (JFM-13) was softer than-expected, with weaker-than-expected performance from Infosys and Wipro but in-line performance from TCS and HCL Tech. The steady growth from Europe indicates increased acceptance of outsourcing model and stability with the existing clients

Private Banks: H2FY13 inspiring, but moderate your return expectations!

H2FY13 performance of Private Banks/NBFCs has been inspiring. However, weak macros are likely to moderate growth metrics and India‐specific macro improvements (low commodity prices) may or may not be sustainable

Automobiles: CV channel checks - No improvement in sight

Financial Services: CVs - Feedback from our Roadtrip - Living on Hope!

Prabhudas Lilladher travelled across 2‐3 truck hubs around Mumbai to know ground level situation of the industry and understand underlying economics currently for different players (large/small fleet owners, SRTOs, used vehicles). On ground feedback was negative with financed CVs incurring losses currently with almost equal pain for SRTOs and fleet owners.

Automobile April 2013: Sluggish sale

Automobile sales for the first month of FY14 was sluggish as almost all the Front-line Auto Companies struggled on account of poor domestic as well as overseas demand.

Mumbai Real Estate: A healthy quarter for registrations

The first quarter of CY13 has been strong on the basis of a yearly comparison, recording 21% growth in sales registrations. The low base of CY12, on account of a hiatus in approvals, is the key reason for the strong growth seen in CY13.