Idea Cellular – Pricing Pressure means early consolidation

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The management of Idea Cellular in its conference call has indicated that any further pricing pressure in near-term would lead to faster than expected consolidation.

Idea stated that revenue growth from recharge fee (due to migration of existing subs to lower price points) is lower than average revenue growth and hence was not significant contributor to 3Q revenue.

Idea mgmt expects to benefit from economies of scale/lower access

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JSW Energy Trading just 2.5% above IPO Price – Powerless Listing

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JSW Energy which raised money in the capital market last month listed on the bourses today and is trading at Rs 102.50, just 2% above the IPO issue price of Rs 100. Experts on Dalal Street had AVOIDED the issue since the price range during the IPO was Rs 100 to Rs 115 and had the management issued it at the upper band like all others did, then it would have been trading at 10% discount.

Read moreJSW Energy Trading just 2.5% above IPO Price – Powerless Listing

Potential for a reintroduction of Re1 cigarette – ITC

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According to ITC, the vacuum created by the exit of the popular low priced micros and plain nonfilter cigarettes (in the wake of the heavy imposition of excise duties last year) has been occupied by duty-evaded illegal regular size filter cigarettes which are sold at Re1 per stick.

Mr. Kurush Grant Divisional Chief Executive, ITC said,

these low priced tax-evaded illegal cigarettes account for about 12-13% of cigarette industry today (~5% in 1HCY08).

Industry has represented to government to consider the introduction of

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Hindustan Construction bags order from Indian Strategic Petroleum Reserves

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Hindustan Construction Company (HCC) has informed us in a message that the company just a while ago received a prestigious contract worth Rs 374.66 crore from Indian Strategic Petroleum Reserves (ISPRL), New Delhi. The company has bagged the order for construction of civil works for an underground rock caverns for Strategic Storage of Crude Oil … Read more Hindustan Construction bags order from Indian Strategic Petroleum Reserves

Investor confidence empowers FDI inflows a y-o-y growth of 60% in November

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India has garnered foreign direct investment (FDI) inflows of $1.74 billion during November 2009, a 60% increase over the $1.08 billion recorded in same month last year. This surge in FDI inflows is significant because India continued to be held as a safe destination for investment despite global recession and financial crises in world’s largest economies.

According to the Department of Industrial Planning and Policy, India has received $23.82 billion up to October 2009 as against $30.58 billion in the fiscal year of 2008-09. In the month of October this year, FDI inflows have notched $2.33 billion as against $1.49 billion during the same month in 2008. However, FDI inflows during April-November period of the current fiscal year declined marginally to $19.38 billion from $19.79 billion a year ago on the backdrop of the impact of global financial crisis felt in earlier months of FY 10.

Read moreInvestor confidence empowers FDI inflows a y-o-y growth of 60% in November

ICICI Bank – Image makeover – Learning from Mistakes

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In a recent meeting, the management highlighted its initiatives to change the general perception about the bank. Some of these aspects are very important and quite commendable as well, in our view.

ICICI Bank is trying to build personal relations with its customers and has been increasing its branch banking focus, compared to its earlier strategy of pushing customers towards ATMs and internet, which never allowed any relationship to be built between the customer and the bank. The management is trying to project a very soft image of itself across all customers and different from its earlier “know all” approach.

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