Shareholding patterns:: Business Line,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

With construction stocks, along with their infrastructure and real-estate contemporaries, falling out of favour with the markets, have institutional investors — domestic and foreign — also shunned the stocks?

Domestic institutional investors (DIIs) remained invested, reducing holdings in a little under half the stocks in the construction universe over the past two years. Foreign institutional investors (FIIs) on the other hand, have pared holdings in more than half the stocks, even exiting a few.

We considered the quarterly shareholding patterns over the past two years, for 25 of the bigger construction companies to gauge holding patterns.

Increases and decreases

Between March '09 and '10, DIIs increased stakes in 11 of the 25 companies that make up the construction universe. Stocks such as Simplex Infra, CCCL and Ahluwalia Contracts have seen the maximum holding increases by DIIs. Companies have also not seen DIIs completely liquidating their holdings and exiting the stock.

The disfavour for construction stocks appears to have affected FIIs, with 60 per cent of the stocks seeing reduction in FII holdings between March '09 and December ‘10. FIIs had also exited three stocks by end-December '10 — Atlanta, Tantia Constructions and KNR Constructions — where they had stakes of over 5 per cent.

Favoured stocks

Even as FIIs consistently shed stakes, they did push up stakes in a select few. Stocks that found favour, where both DIIs and FIIs hiked holdings, include C&C Constructions, CCCL, Supreme Infrastructure and Marg Constructions.

MARG -Standalone earnings in line; subsidiaries lower than expected:: Edelweiss

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


􀂄 EPC revenue ahead of estimate, but margin under pressure
Marg reported Q3FY11 standalone revenue of INR 3.2 bn (up 37% Q-o-Q), ahead
of our expectation of INR 2.5 bn, but PAT at INR 159 mn (up 19% Q-o-Q) was in
line with our estimate of INR 151 mn. While the top line jumped 54% Y-o-Y, PAT
declined 23% due to lower EBITDA margin from 16.6% to 10% Y-o-Y (due to the
greater blend of external projects) and also higher interest costs on account of
rising working capital requirements.

MARG-Mixed bag; port PAT higher, EPC lower;: Edelweiss

Visit http://indiaer.blogspot.com/ for complete details �� ��


MARG
Mixed bag; port PAT higher, EPC lower



􀂄 EPC revenues lower, but margins maintained
MARG’s reported revenue, at INR 2.31 bn, was up 12.5%, and PAT, at INR 134
mn, was down 33% Y-o-Y. These were below estimates on account of delay in
EPC execution, though commercial leasing and real estate businesses were stable.
EBITDA margins continued to remain under pressure (down 420bps Y-o-Y), as
expected (11.7% against 12.1% expected), due to higher proportion of external
contracts in revenues vis à vis past quarters. Order book, at INR 28.2 bn, gives
strong visibility for the next few years. During Q2, MARG entered into
agreement/MOU with Valecha Engineering, SREI Infrastructure, and International
Infrastructure Consultants (IIC), to enhance its EPC competence.