Page 2 - The Compass

Dredging Corp: Rebound in earnings holds key

The Dredging Corporation of India's stock surged 12.7 per cent to close at Rs 502 following reports that the government may sell 51 per cent of its 73.5 per cent stake in the company. While the company, said to the exchanges, that it has no specific official communication, the street's optimism stems from the possibility of a new owner boosting the company's fortunes. The public sector company dredges for Indian seaports and Indian Navy besides undertaking contracts for overseas projects. Dredging involves excavating the sea or river bed to increase their depth for easier ship movements. In the December quarter, the company has secured Rs 1,119-crore contract for dredging of a shipping channel at Kolkata Port in a global bidding. In January this year, it has also won Rs 102 crore order for the Pussur Channel dredging project in Bangladesh. These only indicate the company's competitiveness in the business. While the order flows are positive, the government's focus on coastal ...

Wonderla's high valuations look sustainable

The stock of India's largest amusement park chain- Wonderla Holidays (Wonderla) is trading at premium valuations not just to its domestic peer (Adlabs Entertainment), but also to most global peers such as Disney, Six Flags, Cedar Fair, Sea World Entertainment, amongst others. At current levels, Wonderla is trading at 28 times FY18 estimated earnings whereas its global peers are trading anywhere between 15 to 26 times CY18 estimated earnings. Although any comparison with global peers is a far cry, the question is can the stock sustain these valuations?A business model, which allows the company to set up quality parks with relatively lower costs, and consequently report healthy profitability and return ratios are few reasons behind the premium valuations. In fact, the company has been able to achieve a payback period of less than 10 years for new greenfield investments, which is amongst the best even when compared to global peers. Payback period is the length of time required for ...

Lupin: Look beyond the short-term concerns

News flow around US product approvals and launches remains strong for Lupin. In the last few days, Lupin has received one approval for launch on exclusivity for a Bowel preparation kit and has also launched a scalp treatment as well as a dermatology drug in the US. Besides, it has also entered into a marketing agreement in Japan to exclusively distribute and promote extended-release tablets of schizophrenia drug. The tie up in Japan will boost revenue from the world's second largest drug market, which contributes about 10 per cent to Lupin's topline, while the launch of Bowel kit can garner $30 million during exclusivity. The approvals for new launches have caught pace post Lupin got its Goa plant cleared by the US FDA; 11 approvals in December quarter and more are expected. However, the stock has remained range-bound even after good December quarter performance. One reason could be that these gains may not be as visible in revenue and profits of Lupin in the immediate term given the .

Strong growth visibility for Castrol, Gulf Oil

Analysts expect volumes to improve and profit margins to remain firm going ahead

Note ban poses similar challenges for PVR, Inox

Impact will hinge on incentives offered by these companies to combat currency swap

Pension liabilities deal positive for Tata Steel

With new allowance scheme, the company's UK welfare liabilities will stay limited