Company: Wipro
Broking House: Nomura
Price Target: Rs 490 Recommendation: Buy
Nomura expects Wipro to post a revenue growth of 5.5 per cent in Q1 FY11 over the previous quarter. This is in line with estimates for other large IT players. Financial services, technology and telecom segments are expected to lead the growth in revenues for the firm. Margins in the sector are likely to decline because of currency inflation and higher salaries. Some pressure on margins is likely to be mitigated by an increase in fixed price contracts. On the whole, the brokerage feels that the 20 per cent discount Wipro has versus Infosys is likely to narrow in the coming months, and has therefore rated the stock a buy.
Company: BGR Energy Systems
Broking House: Citi
Price Target: Rs 884 Recommendation: Buy
India’s power deficit presents a huge opportunity, says Citi as the market for power generation equipment has increased from 5,000 mw per year to 20-25,000 mw per year. The balance of plant business, where BGR operates, is expected to grow from Rs 22,000 crore to Rs 30,000 crore. Leveraging its BOP business, BGR has also managed to build up a substantial EPC (engineering, procurement, construction) business. The next step in BGR’s integration will be to get into equipment manufacture. The company has a credible partner in Hitachi. Based on these factors, the brokerage has rated the stock as a ‘Buy’.
Company: Tata Power
Broking House: UBS
Price Target: Rs 1,600 Recommendation: Buy
Tata Power, along with consortium partner Arrow Energy, has been awarded a coal bed methane block in Satpura. This was the fourth round of bidding for CBM blocks. As per the company’s information, this block could have up to 0.9 trillion cubic feet of gas, enough to generate 1,000 mw of power. From a strategic point of view, the broker finds the event positive, even though the benefits are likely to occur only over a long term. Amongst the various utilities, Tata Power is the most active in harnessing non-conventional energy sources —wind, solar power etc. The fuel mix too, is well diversified, says the brokerage.
Readers are recommended to consult their financial advisers before making any investment. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.
Commodity Watch
Aluminium Rs 92.10/kg
Copper Rs 314.70/kg
Lead Rs 84.50/kg
Nickel Rs 894.50/kg
PLATINUM Rs 2,304.00/gm
Steel (flat) Rs 30,000/tonne
Zinc Rs 86.00/kg
crude oil Rs 3,557/bbl
Rubber (Kochi) Rs 18, 562/100 kg
JUTE (Kolkata) Rs 3,261.50/100 kg
Spot prices (MCX at Mumbai as on July 10) are disseminated for information only and shall not be considered as guidance in any case.
Business People
GANNESH BHARADHWAJ has been appointed as the head of personal finance at HSBC India. Mr Bharadwaj was earlier in HSBC’s Asia Pacific’s consumer assets business. He takes over from Mr Rajnish Bahl, a banker with over 22 years of experience in retail banking in India.
VIR . S . ADVANI has been promoted as the whole time executive director of Blue Star Limited. Mr Advani has been with the Blue Star Group for a decade, after a 2-year working stint in New York.
CHINTAMANI RAO has taken over as president of the R K SWAMY BBDO media group. Mr Rao who started his career with the group had left and worked with O&M, MAA Bozell and McCann.
HIMANSHU PARIKH has been appointed as executive vice-chairman of Gammon Infrastructure Projects. He has taken over the responsibilities of Mr Parvez Umrigar, who will continue on the board of the company in a non-executive capacity.
ABANTI SANKARANARAYANAN, who was till recently the executive director and deputy CEO at Mount Everest Mineral Water has taken over as marketing director of Diageo India. Ms Sankaranarayanan was a member of the Tata Administrative Service (TAS) cadre since 1992 and has been an executive with the Tata Group in India, UK and the US.
SUMIT SAWHNEY has been appointed as the vice-president, sales and marketing at General Motors India with effect from August 1. He will replace Ankush Arora, who has been transferred to GMDAT Korea as vice-presdient —sales, service and marketing.
GANNESH BHARADHWAJ has been appointed as the head of personal finance at HSBC India. Mr Bharadwaj was earlier in HSBC’s Asia Pacific’s consumer assets business. He takes over from Mr Rajnish Bahl, a banker with over 22 years of experience in retail banking in India.
VIR . S . ADVANI has been promoted as the whole time executive director of Blue Star Limited. Mr Advani has been with the Blue Star Group for a decade, after a 2-year working stint in New York.
CHINTAMANI RAO has taken over as president of the R K SWAMY BBDO media group. Mr Rao who started his career with the group had left and worked with O&M, MAA Bozell and McCann.
HIMANSHU PARIKH has been appointed as executive vice-chairman of Gammon Infrastructure Projects. He has taken over the responsibilities of Mr Parvez Umrigar, who will continue on the board of the company in a non-executive capacity.
ABANTI SANKARANARAYANAN, who was till recently the executive director and deputy CEO at Mount Everest Mineral Water has taken over as marketing director of Diageo India. Ms Sankaranarayanan was a member of the Tata Administrative Service (TAS) cadre since 1992 and has been an executive with the Tata Group in India, UK and the US.
SUMIT SAWHNEY has been appointed as the vice-president, sales and marketing at General Motors India with effect from August 1. He will replace Ankush Arora, who has been transferred to GMDAT Korea as vice-presdient — sales, service and marketing.
Media Watch
TBWA\INDIA has been appointed as the creative agency for Star Health and Allied Insurance Company. It won the business against top rivals like McCann Erickson, Draft FCB Ulka and incumbent Network Advertising. Star Health’s media AOR is Lodestar Universal.