Friday, November 21, 2008

>Punj lloyd(BNP PARIBAS)

Oil & gas projects delayed – growth estimates at risk
We initiate coverage on Punj Lloyd, a global firm specializing in
Engineering, Procurement and Construction (EPC) projects for the oil &
gas industry, with a REDUCE rating and TP of INR146. The mid-anddownstream
oil & gas industry contributes approximately 70% of the
company’s revenue. The sudden sharp decline in crude oil and natural
gas prices, demand, and the global credit crunch has resulted in delays
and cancellations of several new projects across the Middle East and
Southeast Asia. We expect the slowdown to gather momentum over the
near term; so, new projects may be deferred until the prevailing
conditions improve.

Read full report Punj lloyd(BNP PARIBAS)

>Textile sector outlook(CLSA)

Our meetings with textile and apparel majors and outsourcing arms of US
retailers indicates that outsourcing out of India is still on the increase
even as US retailers are brutally hurt. India is seeing incremental benefit
as growth in China slows, cost pressures in China increase and Pakistan
remains embroiled in social strife and tension. However, over the last 12
months, vendor consolidation has accelerated and even as larger vendors
gain market share, smaller ones are losing out. The outlook for 2009 is
very challenging given cost pressures and lower growth than the last five
years. We expect both prices and volumes to be under pressure in 2009.
While textile sector has underperformed, there is no reason to merit
investment given the medium term outlook.

To read full report Textile sector outlook(CLSA)

>India Telecom(BNP PARIBAS)

GSM net adds at new high, cross 8m in October
Indian GSM operators continued to exhibit healthy subscriber growth in
October, taking the GSM subscriber base to 242m. GSM subscriber
additions in August came in at 8.08m, compared with 7.69m in
September 2008 assuming steady net additions for RCOM GSM. Aircel
and BPL maintained their run rate. BSNL continued to lose market
share, adding 669,551 subscribers.
Bharti maintains lead; under pressure in Bihar circle
Bharti maintained its run rate adding 2.72m subscribers but remains well
ahead of the competition in terms of subscriber additions. Bharti
witnessed pressure in net additions in Bihar circle with the launch of
operations by Idea and Vodafone. Bharti’s marketshare of GSM net
additions has declined to 33.7% from 40.4% in August 2008. Decline in
marketshare for Bharti due to expansion of operations by regional
players is already built into our estimates.

To read full report India Telecom(BNP PARIBAS)