>NTPC: Regulatory changes, rising costs impact profitability

National Thermal Power Corporation (NTPC), the largest power generating company in India, is principally engaged in engineering, construction and generation of power. Besides, it also undertakes oil & gas exploration, coal mining and provides consultancy services in the area of power plant construction and power generation. It provides power at the cheapest average tariff in the country. Currently the company has a capacity of 32694MW. It is currently trading at a P/BV of 2.6.

To read the full report: NTPC

>DR. REDDY'S LABS: Developments during Q2FY11

Robust performance in India, Russia/CIS & RoW Generics markets has managed to offset lower Generics sales in other markets and overall PSAI sales: Net sales at Rs1870crs showed yoy growth of 1.8%. This performance was a direct result of the lower PSAI sales across all markets, which has been offset by robust growth in India, Russia/CIS & RoW markets. PSAI sales declined 14.1% yoy to Rs461.7crs, impacted by price erosions and lower order flow. Ex‐PSAI, net revenues at Rs1367crs grew 7.6% yoy where India, Russia/CIS & RoW markets exhibited continuous (yoy) growth of 25.3%, 17.0% & 25.3% respectively. US generics business depicted strong sequential growth of 13%, led by market share gains in base business and new products like generic Lotrel and Tacrolimus launched in Q1FY11. Betapharm sales have stabilized and grew 23% Q‐o‐Q; they, however, declined 27% Y‐o‐Y from one‐time seasonal vaccine sales in Q2FY10.

To read the full report: DRL

>REVIVAL IN GLOBAL PRIMARY MARKET (NETWORTH CAPITAL)

A Sneak Peek
Market Return Vs Capital Raising

■ A near 61%+ rise in the world markets since March 9th has
provided corporate a much needed opportunity to raise capital
in form of debt and equity.

■ Since Jan 1st 2009 to date, companies across the world have
raised nearly USD 5,075bn out of which nearly USD 4718bn
(93%) has come in form of debt while USD 357bn (7%) has
come in form of Equity.

■ Out of the total of USD 357bn raised in equity, nearly USD
207bn of equity has been raised in the months of June, July and
August. Indicating corporate taking advantage of the rally to
swap high cost debt and re-capitalizing by raising new equity.


Large Equity in Offing

■ In the current environment this fresh capital is like a lifeline
for certain banking and real estate companies while other
took the advantage of the lower interest rates to swap high
cost debt.

■ In a way this rally has provided a great opportunity for
certain companies to emerge stronger.

■ A near 61% rise in the market past March, 2009 has
rewarded investors who participated in the rally. Improving
Economic numbers and corporate profits coupled with
rising liquidity augur well for Capital Markets. Hence, we
expect Primary & Secondary Markets to remain buoyant.

To see full report: REVIVAL IN MARKET

>HIGH BETA (NETWORTH CAPITAL)

Tracking the Price Performance of BSE500 stocks in major down & up move between
Sept 08 and June 09.

To see report: HIGH BETA

>Global Vs Domestic banking index (NETWORTH CAPITAL)

Since Oct31st 2007, when the Global Banking and Financial Index made an all time high, the Global Index has fallen by 73.60% in USD terms, while during the same period the domestic banking index has fallen by 71.54% in USD terms.

But ICICI Bank fell as much as 84% in USD terms during the same period.

Since Oct 27th 2008, when Indian markets made an intraday low, Global Banking & Finance Index has fallen by 31.86% in USD terms, while during the same period the domestic banking index has fallen by 20.73% in USD terms. But ICICI Bank has fallen by 19.27%.

Since Jan 01st 2009, the Global Banking and Financial Index has fallen by 34.1% in USD terms, while during the same period the domestic banking index has fallen by 37.90% in USD terms and ICICI bank has fallen by 46.23%.

The slides shows that ICICI bank has been a gross underperformer Vis-a-Vis the world and the current stock price is reflecting news in comparables to Citi, Lloyds, Bank of America and Merrill Lynch, but the fact is ICICI is in much much better shape than its global peers. We believe that the underperformance of ICICI is an opportunity to BUY at current price of Rs. 263 for a return of over 25% in short term.

To see full report: GLOBAL BANKING INDEX