Indian stock market and companies daily report (April 30, 2012, Monday)

The Indian markets are expected to open in green tracking positive cues from Asian markets.
Globally, U.S. stocks moved mostly higher over the course of the trading day on Friday due to some upbeat earnings news as well as a better than expected reading on consumer sentiment index which came in at 76.4 for April compared to the March’s reading of 76.2. The Commerce Department reported U.S. GDP numbers which increased by 2.2% (expected 2.5%) in the first quarter compared to the 3.0% growth seen in the fourth quarter CY2011. Most European stock markets also closed with weekly gains on Friday, after release of U.S. consumer spending data.
Meanwhile, Indian shares ended another lackluster trading session on as the news of Spain's credit rating and downgrade by S&P prompted investors to take a cautious stance.

Markets Today
The trend deciding level for the day is 17,133 / 5,189 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,244 – 17,353 / 5,224– 5,258 levels. However, if NIFTY trades below 17,133 / 5,189 levels for the first half-an-hour of trade then it may correct up to 17,024 – 16,913 / 5,156 – 5,121 levels.

Result Reviews
ICICI Bank (CMP: Rs.869 / TP: 1,183 / Upside: 36.1%)
ICICI bank delivered an all-round performance during 4QFY2012, both on the operating and asset quality front. The bank’s domestic NIM improved by 27bp qoq, leading to healthy sequential NII growth of 14.5%. The bank’s non-interest income also saw traction during the quarter growing by 17.8% qoq (up 35.8% yoy). The bank’s asset quality also improved during 4QFY2012 with both gross and net NPA levels declining by 2.5% qoq and 9.1% qoq, respectively. Healthy performances overall resulted in net profit for ICICI bank growing by a strong 31.0% yoy to Rs.1,902cr (up 10.0% qoq). We recommend a buy on the stock with a target price of Rs.1,183.
Axis Bank (CMP: Rs.1,121 / TP: 1,587 / Upside: 41.6%)
Axis bank reported a healthy PAT growth of 25.2% yoy (up 15.9% qoq) to Rs.1,277cr, which were ahead of our estimates. The bank’s NIMs declined sequentially on a qoq basis by 20bp, resulting in a lower operating profit than estimated by us. However, the bank surprised positively on the asset quality front with provisioning expenses declining by 67.0% qoq (down 45.2% yoy), resulting in a healthy bottom-line. Both gross and net NPA levels were down sequentially by 5.7% qoq and 30.8% qoq, respectively. We recommend a buy on the stock with a target price of Rs.1,587.
Maruti Suzuki (CMP: Rs.1,397 / TP: 1,510 / Upside: 8.1%)
For 4QFY2012, Maruti Suzuki (MSIL) reported an in-line opearting performance; whereas bottom-line was signifiacntly ahead led by steep increase in other income. Net sales for the quarter registered a strong growth of 17.2% yoy (51.7% qoq) to Rs.11,727cr aided by 4.9% yoy (50.4% qoq) increase in total volumes (led by new Swift and Dzire) and 11.7% yoy (1.4% qoq) increase in net average realisation (driven by superior product mix - higher contribution of diesel vehicles and price increases). On the operating front, EBITDA margins nosedived 281bp yoy to 7.3% largely on account of higher raw-material costs (up ~200bp yoy to 79.6% of sales) due to higher outgo relating to vendor compensation. Employee expenses too increased 66bp yoy impacted by higher variable pay during the quarter. As a result operating profit declined 15.3% yoy Rs.859cr. Net profit however, was down by only 3% yoy to Rs.640cr as substantial increase in other income (up 155% yoy) boosted the profitability.
At Rs.1,397, MSIL is trading at 18x and 13.9x FY2013E and FY2014E earnings, respectively. We maintain our Accumulate rating on the stock with a target price Rs.1,510.

HCC (CMP: Rs.20 / TP: - / Upside: -)
For 4QFY2012, HCC continued its poor performance on the numbers front as expected. On the top-line front, HCC’s revenue declined by 3.9% yoy to Rs.1,156cr against our estimate of Rs.1,022cr. However, it includes ~Rs.166cr (total arbitration award Rs.256cr) of arbitration award, excluding which it would have stood at ~Rs.990cr. EBITDAM came in at shocking 7.6%, a dip of 680bp yoy and lower than our estimate of 11.8%. On the earnings front, HCC reported a loss of Rs.54cr vs. profit of Rs.23cr in 4QFY2011, against our estimate of loss of Rs.23cr owing to lower EBITDA margin and higher interest cost. Interest cost witnessed an increase of 39.4% and 6.3% on yoy and qoq basis respectively. The total outstanding order book stands at Rs.15,336cr (excluding L1 orders of Rs.1,713cr) with dismal order inflow of Rs.1,889cr (decline of ~44% on yoy basis) for FY2012. Owing to concerns such as slowdown in order inflow, high debt and stretched working capital, we remain Neutral on the stock.
Hexaware (CMP: Rs.130 / TP: - / Upside: -)
For 1QCY2012, Hexaware reported a healthy set of results. Major highlights of the results were whopping 6.6% qoq volume growth even in a seasonally soft quarter for IT companies. The USD revenue came in at US$88mn, up 4.7% qoq. In INR terms, revenue came in at Rs.438cr, up 1.5% qoq. The company’s EBITDA and EBIT margins declined by 61bp and 77bp qoq to 22.4% and 20.8%, respectively, majorly due to qoq INR appreciation against USD. PAT for the quarter stood flat qoq to Rs.88cr. Hexaware has been outperforming in the mid-cap space since eight quarters by reporting a scorching 7.7% CQGR. Management has been outperforming its guidance every quarter and has maintained CY2012 yoy USD revenue growth guidance of at least 20%. We expect the company to continue its revenue growth on the back of increasing traction for enterprise services as well as continue its operational exuberance. We value the company at 12x CY2013E EPS of Rs.10.7, which gives us a target price of Rs.128. The stock price has run up significantly and we see limited upside from current levels. We maintain our Neutral rating on the stock.

Result Previews
Bank of India
Bank of India is scheduled to announce its 4QFY2012 results today. We expect the bank to report a decline of 6.5% yoy in net interest income to Rs.2,157cr. The noninterest income of bank is expected to report a moderate growth of 10.4% yoy to Rs.909cr. Operating expenses are expected to decline by 35.0% yoy to Rs.1,251cr (high base due to employee provisioning related to pension) expenses in 4QFY2011), leading to 50.6% yoy growth in PPP. Provisioning expenses are expected to rise by a substantial 76.2% yoy to Rs.842cr, however the net PAT is still expected to increase by a strong 42.6% yoy. We have a buy rating on the stock with a target price of Rs.392.
Dabur
Dabur is slated to announce its 4QFY2012 results. For the quarter, we expect Dabur to post a 17.4% growth in its consolidated Top-line to Rs.1,301cr, driven by both higher volumes and better realizations. The OPMs are expected to contract by 106bp yoy to 17.5% due to input cost pressures. The Bottom-line is expected to register a modest growth of 9.7% yoy to Rs.161cr. We recommend a Neutral on the stock.
Godrej Consumer
Godrej Consumer (GCPL) is slated to announce its 4QFY2012 results. For the quarter, we expect GCPL to post a strong 28.3% yoy growth in its Top-line to Rs.1,283cr, driven by healthy performance from both the domestic and international businesses. The OPMs are expected to remain flat at 17.5%. The Bottom-line is expected to register a growth of 13.0% yoy to Rs.160cr. We maintain a Neutral on the stock.
Exide Industries
Exide Industries (EXID) is slated to announce its 4QFY2012 results today. We expect the top-line to grow by 8% yoy (healthy growth of 6% qoq) to Rs.1,325cr led largely pick up in the OEM sales. On the operating front, EBITDA margin is expected to decline by 425bp yoy to 14.5% on account of price cuts carried out in September 2011 to counter competitive pressures. Hence, bottom line is expected to post a 20% yoy decline to Rs.130cr. The stock rating is under review.
Oriental Bank of Commerce
Oriental Bank of Commerce is scheduled to announce 4QFY2012 results today. The Net Interest Income is expected to grow by a healthy 16.8% yoy (muted 3.9% qoq) to Rs.1,184cr. Non-interest income is expected to increase by 15.8% yoy (17.6% qoq) to Rs.347cr. Operating expenses are expected to increase by 21.5% yoy (decline by 6.0% qoq) to Rs.571cr. While pre-provision profit is expected to increase by 13.8% yoy (16.0% qoq), Provisioning expenses are expected to decline by 39.0% yoy and 10.2% qoq. We expect the net profit of the bank to increase by 25.3% yoy (18.0% qoq) to Rs.418cr. At the CMP the stock is trading at 0.5x FY2014E P/ABV. We recommend Buy on the stock with a Target Price of Rs.296.
Vijaya Bank
Vijaya bank is scheduled to announce 4QFY2012 results. Net interest income is expected to grow at a muted 2.8% yoy (3.6% qoq) to Rs.492cr. Non-interest income is expected to decline by 3.0% yoy (increase by 19.8% qoq) to Rs.139cr. Consequently, the operating income is expected to increase by 1.5% yoy (6.8% qoq) to Rs.630cr. The operating expenses are expected to decline by 36.6% yoy to Rs.324cr on account of higher pension related provisioning in 4QFY2011. Reduction in operating expenses would aid pre-provisioning profit to grow by 178.3% yoy to Rs.306cr. Provisioning expenses are expected to increase by 55.2% yoy to Rs.133cr (decline by 20.4% qoq). Consequently, the net profit is expected to increase by 138.8% yoy (4.0% qoq) to Rs.129cr. At the CMP, the stock is trading at valuations of 0.7x FY2014E ABV. We recommend Neutral on the stock.
KPIT
KPIT Cummins Infosystems (KPIT) is slated to announce its 4QFY2012 results today. We expect the company to post revenue of US$95.8mn, up 30.4% aided by revenues coming in from Systime acquisition. In rupee terms, the revenue is expected to come in at Rs.481cr, up 27.0% qoq. EBITDA margin is expected to expand to remain almost flat qoq at 15.4% as Systime had EBITDA margin in single digits. PAT is expected to come in at Rs.38cr. We maintain Accumulate rating on the stock with a target price of Rs.98.

Economic and Political News
- EGoM given sweeping powers on 2G auction
- Business confidence improves but input costs a worry: CII
- NHAI lines up new road maintenance deals

Corporate News
- India Cements to invest Rs.750cr in Tamil Nadu unit expansion
- Reliance-RTL JV to launch entertainment channel Thrill
- Rajasthan scraps power project tenders won by BHEL-

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Indian stock market and companies daily report (April 27, 2012, Friday)

The Indian markets are expected to open flat to negative, tracing mixed opening in the major Asian bourses and flat opening in the SGX Nifty.
Globally, U.S. stocks moved mostly higher over the course of the trading day on Thursday, adding the gains posted in the previous session. The markets benefited from upbeat housing data, which helped to overshadow another disappointing jobs report. A report released from the National Association of Realtors showed a better than expected increase in pending home sales in the month of March. European markets finished mixed on Thursday, following the strong gains from the previous two sessions. The weaker than expected sentiment result from the Eurozone dragged the markets lower.
Meanwhile, Indian shares ended a lackluster trading session slightly lower on Thursday, as traders rolled over the positions in the derivatives segment. Most Asian markets edged higher on Thursday, as a rally on Wall Street overnight on relief over the Fed's assessment of the U.S. economy and strong U.S. corporate earnings.

Markets Today
The trend deciding level for the day is 17,136 / 5,195 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,188 – 17,245 / 5,210 – 5,231 levels. However, if NIFTY trades below 17,136 / 5,195 levels for the first half-an-hour of trade then it may correct up to 17,079 – 17,027 / 5,174 – 5,158 levels.

Result Reviews
Idea (CMP: Rs.83 / TP: - / Upside: -)
For 4QFY2012, Idea Cellular (Idea) reported healthy revenue growth; however, the company disappointed marginally on the operating front. Revenue came in at Rs.5,370cr, up 6.7% qoq, on the back of 2.7% qoq growth in MOU to 379min and subscriber growth of 5.9% qoq with end-of-period subscriber base standing at 112.7mn. However, the company’s ARPM declined by 2.5% qoq to Rs.0.42/min, which the company said is due to market place battle and overcapacity. EBITDA margin decreased by 146bp qoq to 25.3% due to higher license costs. PAT came in at Rs.239cr, up 18.8% qoq, aided by ~20% qoq lower interest costs. We remain Neutral on the stock.

MRF – 2QSY2012 Review (CMP – Rs.11,236, TP - Rs.13,106, Upside: 17%)
For 2QSY2012, MRF reported top-line growth of 25.4% yoy to Rs.2,993cr, slightly higher than our estimate of Rs.2,929cr. This was mainly driven by improvement in exports and better replacement demand. The company’s EBITDA margin improved by 160bp yoy to 10.9% in 2QSY2012 on the back of softening rawmaterial prices, mainly rubber, which constitutes ~60% of the total raw-material cost for the company. Profit for the quarter surged by 63% yoy to Rs.150cr as compared to Rs.92cr in 2QSY2011. We expect MRF’s adjusted PAT to post a 42.4% CAGR over SY2011-13E, driven by better demand and stabilizing rubber prices. We maintain our Buy recommendation on the stock with a target price of Rs.13,106, based on a target P/E of 8.0x for SY2013E.

Vesuvius India – 1QCY2012 Review (CMP – Rs.422, TP - , Upside -)
For 1QCY2012, VIL reported top-line growth of 15.8% yoy to Rs.139cr, marginally lower than our estimate of Rs.142cr, however on a sequential basis, the revenue declined by 6.1%. The company’s EBITDA margin dipped by 376bp yoy to 14.9% in 1QCY2012 on the back of increased raw material prices. Profit remained flat yoy at Rs.12cr as compared to Rs.13cr in 1QCY2011. The company has acquired 15 acres of land in Visakhapatnam for setting up its fifth plant. We expect improvement in production volume due to the commencement of the newly expanded Kolkata plant; however the demand outlook is not favourable. Moreover, volatility in raw material prices is also a concern. Hence, we recommend a Neutral on the stock.

Result Previews
ICICI Bank
ICICI Bank is slated to announce its 4QFY2012 results. We expect the bank to report moderate net interest income growth of 13.3% yoy to Rs.2,844cr. Non-interest income growth is expected to be healthy at 23.8% yoy to Rs.2,032cr. Pre-provision profit of the bank is expected to rise by 22.5% yoy. Net profit is expected to increase only by 18.3% yoy to Rs.1,719cr on account of higher provisioning expenses (expected to increase by 24.1% yoy) and higher tax outgo (expected to increase by 34.1% yoy). At the CMP, the stock is trading at attractive valuations of 1.4x FY2014E ABV (without adjusting value of subsidiaries). We maintain our Buy view on the stock with a target price of Rs.1,135.
Axis Bank
Axis Bank is slated to announce its 4QFY2012 results. We expect the bank to report healthy NII growth of 32.4% yoy to Rs.2,252cr. NIM, on a sequential basis, is likely to remain flat with a downward bias. Non-interest income is expected to increase by relatively moderate 9.4% yoy to Rs.1,586cr. Pre-provision profit of the bank is expected to register growth of 22.8% yoy. However, owing to higher provisioning burden (an increase of 104.7% yoy), net profit is expected to increase by relatively low 13.6% yoy to Rs.1,159cr.
The stock is currently trading at attractive valuations of 1.5x FY2013E ABV – more than 50% discount to HDFC Bank, despite similar earnings quality, profitability and growth expectations over FY2013-14. Hence, we maintain our Buy recommendation on the stock with a target price of Rs.1,550.
Hexaware- 1QCY2012
Hexaware is slated to announce its 1QCY2012 results. We expect the company to post revenue growth of 4.0% qoq to US$88mn, majorly led by volume growth. In INR terms, revenue is expected to come in at Rs.440cr, up 1.8% qoq. EBITDA margin is expected to decline by 140bp qoq to 21.6% due to qoq INR appreciation against USD. PAT is expected to come in at Rs.77cr. We maintain our Neutral view on the stock.
HCC
For Hindustan Construction Company (HCC), we project a 15.0% yoy decline in revenue for 4QFY2012 to Rs.1,022cr due to slowdown in execution on account of gloomy macro environment. On the EBITDA front, we expect a dip of 200bp yoy to 11.8% on the back of muted margin performance in the past two quarters. On the bottom-line front, we expect loss of Rs.23.2cr in 4QFY2012 against profit of Rs.22.6cr in 4QFY2011 due to poor show expected on the revenue and margin front and owing to escalating interest cost, which is expected to post a yoy jump of 24.8%. We continue to maintain our Neutral view on the stock.

Economic and Political News
- India to receive normal monsoon this year
- Government mulls hike in MNREGA wages
- IT waiver to private PF trusts may extend till March 2013

Corporate News
- Government proposes a board for growth of auto sector
- Government may reject Coal India's mininum penalty clause in FSA
- ONGC wants Centre to offset additional cess on crude
- United Phosphorous to move tribunal against CCI fine
- Sesa Goa to begin exploration in Liberia mines this week
- Mahindra to market SsanYong cars in South Africa
- Rabobank sells 3.4% stake in Yes Bank for Rs.453cr

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Indian stock market and companies daily report (April 12, 2012, Thursday)

The Indian markets are expected to open flat with positive bias tracking mixed opening in the Asian markets and positive closing in the U.S. markets yesterday. Asian markets fell broadly yesterday, extending recent steep losses, as fiscal concerns in peripheral European countries as well as fresh fears over dwindling global growth kept investors cautious.
The US markets gained yesterday, rebounding from an extended losing run after Spanish and Italian bond yields fell which renewed hopes about a solution to the eurozone economic crisis and aluminum maker Alcoa Inc. reported a surprising profit. Statements made by Benoît Coeuré, a Board Member of the European Central Bank, also seemed to ease concerns over Spain.
The Indian benchmark indices ended slightly lower yesterday mirroring negative sentiment on Wall Street overnight and caution prevailed ahead of industrial output and inflation data. The markets will now closely watch out for IIP data for February 2012 (Bloomberg estimate – 6.7%) due to be released today. Also, initial jobless claims data for the week ended April 4 for the U.S. economy will be on radar.

Markets Today
The trend deciding level for the day is 17,198 / 5,227 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,320 – 17,441 / 5,263 – 5,300 levels. However, if NIFTY trades below 17,198 / 5,227 levels for the first half-an-hour of trade then it may correct up to 17,077 – 16,955 / 5,191 – 5,154 levels.

Cement growth unlikely to sustain at double-digit levels
Cement demand growth is anticipated by markets to remain buoyant going ahead, in-line with ~10% growth witnessed in 2HFY2012, which has led to the recent run-up in the prices of cement stocks (market cap of our coverage stocks increased by ~18% YTD vs. Sensex registering an increase of only ~12% YTD). However, we remain cautious on the sustenance of demand at double-digit levels in FY2013E and expect yoy demand to decelerate to 8-9% levels, considering moderate overall GDP growth. Moreover, while elections are in any case scheduled in FY2013 in states accounting for only 9% of overall cement demand, even in FY2014, though elections are scheduled in states accounting for 22%+ of overall cement demand, we would not bank upon elections to be a major catalyst for demand growth to improve unless the overall GDP cycle improves from current levels.
This is because, contrary to the popular belief that elections can lead to a significant surge in demand, our analysis of all-India cement demand growth, overall GDP growth and elections – both centre and state over the last ~20 years – has led us to conclude that it is the overall GDP growth that is a major determinant of cement demand rather than the thrust provided by elections.
As per our analysis, the correlation coefficient between cement demand and election comes at +0.02 (we have considered two years’ CAGR for cement demand, as election-related activities usually pick-up in one-two years prior to the elections) i.e., it does not indicate any correlation at all. In fact, even in years when states accounting for 23%+ of overall cement consumption came up for elections, on five such occasions cement growth (two years’ CAGR) was less than 8%, mainly on account of slowness in the overall GDP cycle. Similarly, on four occasions, we found that cement growth was more than 8% on account of healthy GDP cycle despite elections only being there in states accounting for less than 13% of overall cement consumption.
Also, in four of the seven times when general elections were held, cement growth during the election year was not higher than that witnessed in the immediate preceding year. Further, in case of state assemblies’ elections in major cementconsuming states such as Maharashtra, Uttar Pradesh, Andhra Pradesh, Karnataka and Tamil Nadu, it was observed that in greater number of occasions cement growth in the election year was not higher than that registered in the immediate preceding year.
Cement sector – Outlook and valuation
In our view, the cement sector's valuations in terms of EV/sales and EV/tonne when compared to utilization levels are almost 39% more expensive than its historical valuations during periods of similar utilization levels. However, healthy pricing helped by production discipline among cement companies along with sturdy demand growth in 2HFY2012 has led to high valuations currently. Nevertheless, in our view, this is a thin investment thesis to rely on, as there is a persistent risk of a breakdown in production discipline and deceleration of demand growth to 8-9% levels in FY2013E. Hence, we remain Neutral on the cement sector. That said, we maintain our Buy view on JK Lakshmi due to its attractive valuations, as it is trading at EV/tonne of US$44 on FY2014E capacity.

Idea Cellular and ESPNcricinfo tie up to launch Dream Fields
Idea Cellular and ESPNcricinfo have formed a long term tie up spanning content and advertising in India to launch Idea Dream Fields. It is a dedicated editorial repository within the website www.espncricinfo.com, which explores the issue of lack of cricket spaces in cities in India.
As part of this initiative, ESPNcricinfo will travel to the prominent cricket cities in the country, speak to fans, players, parents and local administrators, and visit cricket grounds to explore the issue. Idea Dream Fields will also feature content gathered from the public via social media. ESPN and Idea Cellular have an annual sponsorship deal, estimated by market experts to be in the range of US$1-1.5mn, which was initiated in August, 2011. The Dream Fields initiative is part of that deal. The initiative intends to engage the various stakeholders to present their concerns and issues regarding the cricket playing spaces in the cities in India and marks an attempt to raise this issue at a national level. The content line up for the initiative includes Maidan View, a series on popular cricket grounds; and Ground Reality, a video series exploring the state of cricket in major cities. We maintain our Neutral view on Idea Cellular.

Economic and Political News
- ADB projects moderate increase in GDP to 7% in 2012-13
- India, other emerging economies showing positive signs: OECD
- Tsunami alert in 28 nations as 8.9 quake hits Indonesia

Corporate News
- M&M to consolidate R&D units, to roll out tractor soon
- Piramal Healthcare gets EU nod for orthopaedic product
- PSL bags `570cr order from IOC
- Strides Arcolab receives US FDA nod for vancomycin oral capsules
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Indian stock market and companies daily report (April 10, 2012, Tuesday)

The Indian markets are expected to open with positive bias tracking mixed cues from Asian markets. Asian markets edged lower in limited holiday trade on Monday after weaker-than-expected US jobs data hit market sentiment while rising inflation in China also weighed on investors.
The US markets after moving sharply lower at the open, stocks saw continued weakness throughout the trading day on Monday. A negative reaction to Friday's monthly jobs report weighed on the markets, generating broad based selling pressure. The sell-off seen at the start of trading came as traders finally had an opportunity to react to the Labor Department's monthly jobs report, which was released while the markets were closed on Friday.
The Indian benchmark indices started the week with their biggest single day fall in a fortnight as investors chose to tread cautiously ahead of the results season and the Central Bank’s policy review scheduled for next week. The weak job data from US, announced last Friday also dampened investor sentiment.

Markets Today
The trend deciding level for the day is 17,276/5,250 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,353 – 17,485/5,272 – 5,310 levels. However, if NIFTY trades below 17,276/5,250 levels for the first half-an-hour of trade then it may correct up to 17,145 – 17,068/5,212 – 5,190 levels.

Tata Steel reports its 4QFY2012 production and sales numbers
Tata Steel reported its 4QFY2012 production and sales volume numbers. The company's 4QFY2012 crude steel production grew by 2.6% yoy to 1.8mn tonnes and its sales volume grew by 3.3% yoy to 1.7mn tonnes. For FY2012, the company's crude steel production and sales volume increased by 3.9% and 3.4% yoy to 7.1mn tonnes and 6.6mn tonnes, respectively. Thesenumbers are broadly in-line with our expectations. We recommend Accumulate on the stock with a target price of Rs.503.

BGR receives LOA for NTPC 2X660MW supercritical boilers
BGR Energy (BGR) announced that it has received letter of award (LOA) from NTPC for the supply of 2X660MW supercritical boilers to be set up at Solapur, Maharashtra. BGR had emerged as the L-1 bidder in NTPC’s bulk tender for the supply of 11X660MW supercritical boilers on February 29, 2012, for which it is to be awarded six units of supercritical boilers. LOAs for other sites are expected to be received over the next few weeks.
The order is valued at Rs.1,855cr, implying a rate of Rs.1.4cr/MW, which seems to be the result of aggressive bidding and is expected to put pressure on margins going forward, in our view. We maintain our Sell recommendation on the stock with a target price of Rs.274.

HCC JV bags Rs.162cr project from North Frontier Railway
HCC, in a joint venture (JV) with Coastal Projects, has bagged a project worth Rs.162cr from North Frontier Railway to develop a rail tunnel between Kambiron Road and Thingou station in Imphal, Manipur. HCC is the lead partner with 60% share in the JV (HCC’s share is Rs.97cr). The project will be completed in 28 months. We maintain our Neutral view on the stock.

Economic and Political News
- Bank deposit growth rate falls despite higher interest rates
- Imports of sensitive items up 43% during April-January
- India, Qatar sign initial pact for cooperation in the energy sector
- India's 2012-13 cotton output may fall to 32.3mn bales: Report

Corporate News
- L&T commissions 40MW solar plant of Reliance Power in Rajasthan
- Panel recommends green nod to NTPC's coal project in Orissa
- Glenmark gets U.S. nod for generic contraceptives
- Reliance, BP set to kick off imported LNG marketing

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