The 2:30 PM pre closing update August 06-10, 2012 – Jet Airways, Euro, Pound, Reliance and Healthcare

 

 

Monday pre closing looks dyed steeply in the after effects of a turnaround in Dollar fortunes from tokyo close to London open and the equities are just about holding their opening tricks. The Rupee will likely fall through to 56 all over again, but the Pound Sterling may have better luck in keeping Britain competitive as its data is weaker and the strength in the Euro has been cut short so look for the Pound to let the Dollar a good lead and indian stocks to continue rerating on results. Wockhardt and Divis Labs were eyeopeners , likely moving the move from CIPLA and DR Reddy and SAIL(EBITDA of 13%)  and Britannia not so good. Reliance is hoping for better GRMs in Q2

KOTAK and HDFCBANK brought up the cream of the post morning rise in a surprise move in the last few minutes, HDFCBANK hitting 600.

English: JAI210 arrives SFO Jet Airways – Boei...

English: JAI210 arrives SFO Jet Airways – Boeing 777-300 ER (Photo credit: Wikipedia)

PE transactions have increased volume of resales as these secondary transactions could create additional liquidity of upto $100 B in the Indian deal market allowing PE firms to update valuations based on market price and look for a better profit than ina long drawn out listing Airports and Aviation scrips are getting rerated again, at least I think both should even as BAML tries to jump Jet Airways and Spicejet on the Sales and Lease Back profits. Jet profits of INR113 mln include INR500 mln in sale and lease back and apparently some defered tax credits. Jet Airways revenues are up only 5% in Dollar terms to $847 M (INR471.2B) but have a clear line to add to International Star Alliance for code share push to profits and has a seat factor of 82.7% in Q1  FX losses of $31mln could not erase Net profits either.  ATF prices actually rose 13% over Q1 FY12 International operations have made a minor pretax loss of 2-300 mln

Annual revenue of the quarter is up 31% still under $1 B ( lower by $52 mln) but EBITDA MArgin has doubled to 16% on Konnect rollout and ATF decreases will roll further in Q2 . Jet lite yields are up 43% on the year ago Q1. Passenger growth of 10% domestic Y/Y ith 4.86 mln revenue passengers flying an average of 1749 Revenue kilometers

Ofcourse some bank results did spoil the day in Andhra and dhanalakshmi but nothing out of the ordinary and ING, indusind and Kotak look well slotted for the froth of this run, if there is any while YESBANK and ICICIBANK lead wwith HDFCBANK consolidating another big move

Resturctured Assets bought into equity by majority foreign owned banks like ICICI BANK and HDFC BANK will not count to FDI and will be allowed while new subsidiary stakes (strategic investments ) willnot be allowed beyond the FDI cap in the secotr as Indirect FDI

100% FDI is allowed in Commodity Broking however. In new regulations, Insurance Cos have been allowed to purchase and sell CDS contracts as part of hedging portfolios

 

 

 

 

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