>INDIA RETAIL(JP Morgan)

Our brief inquiries with key Indian retailers about sales during the
Diwali festive season indicate that consumer spending was satisfactory.
Categories that saw some weakness include Furniture and Watches,
whereas sales in Apparel and Jewelry were encouraging.
• Although it is difficult to gauge consumer sentiment accurately we
believe sales for Dec’08 quarter should be satisfactory if interest rates
and inflation trends continue to show improvement from current levels.
• We maintain our Overweight rating on key retailers Titan Industries,
Pantaloon Retail, and Gitanjali Gems, and believe that the current credit
crisis should accelerate the shift towards organized retail.
Here are some direct quotes on Diwali sales made by various retailers:

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>Reliance Infra(EDELWEISS)

Reliance Infrastructure’s (Rel Infra) return on average equity (ROAE) was 9.0% and
return on net operating assets (RNOA) was 9.2% in FY08 (ROE analyser analyses the
difference).

Investment in associate companies stands at INR 61.1 bn as at end-FY08 (INR 1.2 bn
as at end-FY07), generating a meager return of 1.3%. This is primarily on account of
investment made in Reliance Power (RPL; INR 60.8 bn), which is currently under
gestation and not fully operational.

Investments made by the company increased 124.0% from INR 52.2 bn in FY07 to INR
117.0 bn in FY08. The additional investment of INR 59.8 bn was primarily due to
investment in RPL’s initial public offer (IPO). Return on investment, other than
investment in RPL, comes to 6.5% for FY08.

Read full report here Reliance Infra(EDELWEISS)

>Equity Weekly Watch (ANAGRAM)

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Equity Weekly Watch (ANAGRAM)

>BHEL(Angel Broking)

Bharat Heavy Electricals Ltd (BHEL), one of the largest Engineering and Manufacturing
Enterprise in India, dominates the Power Generation Equipment market of the country with
about 64% share of the Total Installed Capacity. The company is in the midst of a rapid
capacity expansion plan. It has already ramped up its capacity from 6,000 MW p.a. to
10,000 MW p.a. in December 2007 and is further scaling it up to 20,000 MW p.a. by
FY2012. However, going forward the company faces diverse set of challenges both from the
weak economic environment as well as the structural changes in the Sector, which could
limit further upside on the stock. At the price of Rs1,405, the stock is commanding
valuations of 15.2x FY2010E EPS and 9.4x FY2010E EBITDA. Given the overall
concerns, we Initiate Coverage on the stock with a Neutral View.

Read full report here BHEL(Angel Broking)