Thursday, 25 February 2016

Re: {LONGTERMINVESTORS} Research Reports extracts & summaries - Thread

 Citi on Rail Budget
* Expect fisc consolidation to continue, thrust on capex, emphasis on non-tax rev
* Focus seems to be on raising alternative srcs of funding to bridge spend needs
* See marginal deterioration in health of finances as measured by operating ratio
 
CLSA on Bharti
* Believe it remains favourably placed to leverage India's data boom
* Key advantages remain spectrum lead, investments & improving execution
* Maintains Buy, target of ₹395
* Strong share gains in data heavy markets reflect traction on 3G/4G data offerings
 
CLSA on Rail Budget
* Budget points to more gradual recovery in capex vs its lofty target
* Higher allocations to DFC, 3 new DFCs, mkt based pricing of freight key +ves
* Physical targets for FY17 do not tally with budgeted 51% capex rise
* With capex of ₹2.2 lk cr in 2 years, achievement of 5-yr plan tgt a tall ask
 
Kotak on Rail Budget
* Deterioration in operating ratio led by higher pay, allowances and pensions
* Estimate of 50-60% 7CPC implementations accommodated
* Unchanged aid show Govt restriction in allocating high capex in Union Budget
 
Morgan Stanley on Rail Budget
* Expect rail capex spending to be lower at ₹6.8 lk cr over next 5 years
* Given no hike in passenger fares, believe issue of cross subsidisation persists
* Mobilizing addl resources to fund capex, timely execution of projects a key
* Thought process to view rationalisation of tariff structure is positive

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