ORG Informatics
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs222
Current market price: Rs152
Order flow continues
ORG Informatics, through its wholly-owned subsidiary of ORG Telecom, has bagged a $5-million order to roll out the network for a CDMA-based wireless telecom service operator in Tanzania. It will be setting up a subsidiary in Tanzania to execute the order and tap the huge market potential in the region.
Gateway Distriparks
Cluster: Cannonball
Recommendation: Buy
Price target: Rs280
Current market price: Rs243
Results meet expectations
Result highlights
- At Rs18 crore the Q4FY2006 net profit of Gateway Distriparks Ltd (GDL) is in line with our expectations. The net revenues for Q4FY2006 dropped by 6.3% as the total twenty feet equivalent units (TEUs) handled during the quarter dropped by a sharp 15.7%. However the realisation per TEU improved by 11%, thereby restricting the fall in the overall revenue. The volumes fell primarily because of low volumes handled by some of its key mail line operators (MLOs) due to a slow-down in the business handled in the Jawaharlal Nehru Port Trust (JNPT) region.
- As the volume dropped, the operating profit margin (OPM) slipped by 6.8% to 54.6%. The margins were also hit by a 110% increase in the staff cost on account of a salary hike and higher transportation cost due to a rise in fuel prices. Consequently, the operating profit for the quarter declined by 16.7% to Rs16.5 crore.
- However with the other income growing ten-fold (on account of the interest earned on the funds mobilised through a recent global depository receipt issue) and the interest cost declining by almost 70%, the net profit for the quarter grew by 24.6% to Rs24.6 crore.
SECTOR UPDATE
Life insurance
Private insurers smiling all the away
According to the latest data released by the Insurance Regulatory and Development Authority (IRDA), the first premium collection of the life insurance companies grew by 48.2% year on year (yoy) to Rs35,900.8 crore in FY2006. The first premium collection of the private life insurers grew by a superlative 82.8% yoy to Rs10,255.7 crore during the same period. As per the IRDA data, the first premium collection of Life Insurance Corporation (LIC); a public sector insurer increased by 37.8% yoy to Rs25,645.2 crore during the same period.
In the private sector, Bajaj Alliance Life Insurance (BALI) emerges as a leader with a 214.8% growth in its first premium collection, which has surged to Rs2,715.5 crore yoy. It is followed by ICICI Prudential Life Insurance (IPIL), which has recorded a total collection Rs2,638.3 crore, up 66.6% yoy.