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>JYOTHY LABORATORIES (BRICS)
To see full report: JYOTHY LABORATORIES
Friday, July 10, 2009
>CROMPTON GREAVES (BONANZA)
Company background
Mumbai based Crompton Greaves was founded by Col. R.E.B. Crompton as R.E.B.Crompton & Company in 1878. The company merged with F.A Parkinson in the year 1927 to form Crompton Parkinson Ltd., (CPL).. In the year 1947, with the dawn of Indian independence, the company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist.
Presently, Crompton Greaves (CG) is Flagship Company of the US$ 3 bn conglomerate Avantha Group. Its operations consist of 21 divisions spread across in Gujarat, Maharashtra, Goa, Madhya Pradesh and Karnataka supported by marketing and service network through 14 branches in state capitals .
Rs.8800 Crore (US$ 1.8 Billion) company is organized into three business groups:
- Power Systems
- Industrial Systems
- Consumer Products
Highlights
• There is constant industrialization taking place as the economy is in a long term growth trajectory, resulting in demand for Engineering and Electrical equipments.
• Country is boosting its power generation and transmission capacity, further boosting demand for power products.
• With growing urbanization and rising trend of nuclear smaller families, rising housing demand there is visible growth in consumer products division.
To see full report: CROMPTON GREAVES
>THE BIGGEST PICTURES (MERRILL LYNCH)
Bullish Global Equities
- History: rolling S&P returns worse since 1930s
- Cash: investors +20% in cash
- Positioning: asset allocators close to record low weightings in equities
- Risk: out of equities into government bonds
- Global recession: its over
- Liquidity: fragile recovery (+ CA default risk) means it stays abundant
- China: the lead indicator is in a secular bull market
- Risks: “visible fist” of government = lower consumption + worsening credit market
- Direction of US retail sales in H2 will determine direction of global equities
- MSCI World (MXWD) target is 300
- We love EM equities (but Japan, Eurozone, consumer discretionary, financials more contrarian)
- Fatigued technicals still say summer correction: buy it!
- Always buy “Humiliation”
- Equities are the distressed asset
- Cash levels still very, very high
- Equities still unpopular
- Risk now in Treasuries not equities
- Lower volatility…lower risk in banks
- Global recession is over
- Small recovery…big liquidity
- China roaring; deflation ebbing
- “Visible Fists” & “Buyer’s Strike”
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