Company: Adani Power
Broking House: Citi Rating: Buy
Price Target: ` 159

Adani Power had recently served a termination notice to the Gujarat state utility for supplying 1,000 mw power at ` 2.35/unit for 25 years.

This is because the fuel linkage for the under construction project is not working out. However, the agreement for power sales is independent and is unlikely to be scrapped, says Citi.

The power regulator in Gujarat has also requested the government to ask Adani Power to withdraw the termination notice.

The company has not yet decided whether to accept the decision or appeal against it. The adverse judgment could bring down EPS by 1-6 per cent, says Citi, which would also lead to the target price being cut.

Company: Idea
Broking House: Goldman sachs Rating: Buy
Price Target: ` 79

Idea is the preferred pick of Goldman Sachs in the telecom sector. The brokerage says that the company is unlikely to see an impact to its tariffs looking at the competitive scenario in the market. The management of the firm feels that mobile number portability is also unlikely to affect market share — though it could increase the intensity of the competition in the market place. The company is also well funded to meet its capex needs during 2010/11. Goldman Sachs expects Idea to post a 16 per cent annual growth in earnings over FY10-13. Also, given that idea is the number 1 or 2 player only in seven circles, it will not be hit by mobile number portability.

Company: TCS
Broking House: HSBC Rating: Buy
Price Target: ` 925

After a recent conference call with a TCS official, brokerage house HSBC sees clients of IT companies willing to spend on new initiaitives. Attrition, which had become a major concern, has also reduced in the past quarter. HSBC feels that the IT spending so far was driven by outside factors such as regulatory and compliance norms. As corporate confidence in the US and Europe improves, the next wave will be driven by growth led initiatives such as new services and geographic expansion. The stock is currently trading in line with its historical multiples. It expects a growth of 12 per cent in earnings from FY10-FY12.

Readers are recommended to consult their financial advisers before making any investment. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Commodity watch

Aluminium ` 99.35/kg
Copper ` 360.10/kg
Lead ` 99.70/kg
Nickel ` 1,020.60/kg
PLATINUM ` 2,342.50/gm
Steel (Long) 2,571/tonne
Zinc` 99.50/kg
crude oil` 3,515/bbl
Rubber (Kochi1 6,375/100 kg
JUTE (Kolkata) 3036/100 kg

Spot prices (MCX at Mumbai as on September 3) are disseminated for information only and shall not be considered as guidance in any case.

Business People

AMIT CHATTERJEE has taken over as the new managing director at Microsoft’s development centre in India replacing Mr Srini Koppolu, corporate vice-president and managing director. Mr Chatterjee was earlier general manager and has been with Microsoft for the past 22 years.

VIJAYLAKSHMI R. IYER and Rajiv Kishore Dubey have taken charge as executive directors of Central Bank of India. Ms Iyer who has been in the banking sector for 34 years was earlier general manager, Union Bank of India. Mr Dubey was general manager of Punjab National Bank.

SANJAY AGARWAL has been appointed as head, equity capital markets in India of Macquarie Capital. Mr Agarwal who joins from Edelweiss Capital Limited has more than 11 years of financial services experience.

JITESH GADHIA has joined The Blackstone Group as a senior managing director in its corporate advisory group. Mr Gadhia was till recently managing director and head of advisory at Barclays Capital. Mr Gadhia has almost 20 years experience in investment banking and has held senior positions at Barclays Capital, ABN AMRO and Baring Brothers.

HERAMB HAJARNA-VIS who was earlier the managing director, principal investment area for India for Goldman Sachs has joined KKR India Adv-isors Private Ltd as director.

NALIN NAYYAR has joined Religare Capital Markets Limited as head of India investment banking. Mr Nayyar joins Religare from Citigroup Global Markets Pvt. Ltd. where he was a managing director in the Investment Bank. Prior to Citibank, he was with Lehman Brothers in India and London.
7. PRATIBHA K. ADVANI who was chief financial officer at Shared Services Pvt. Ltd. (a subsidiary of Barclays Bank Plc.) has taken over as CFO at NIIT Technologies Ltd. Ms Advani had earlier assignments with GE-SBI, GE Money, India and started her career in finance with ITC Ltd where she spent 15 years in their hotels business.

Media watch

JWT on ads and Mudra have worked on the creative business of Emami Biotech Ltd’s newly launched edible oil brand in Chennai. The packaging of the product has been done by Evlove Creative, UK. This is the Group’s first foray into the food & beverages segment and it has earmarked `15 crore over three years for communications and marketing the product.