RESEARCH ALERT-Carr issues sell on ICICI
Here is a very funny research note from one of the local guys.
BOMBAY, Jan 27 (Reuters) - Indian financial services firm ICICI Ltd (NYSE:ICd - news)(NYSE:IC - news), share price exceeds its consolidated fair value and lacks positive triggers going forward, said brokerage firm Indosuez W.I.Carr Securities. ``Its subsidiaries offer a cleaner alternative to its growth initiatives,' it said in a research report made available to Reuters on Thursday.
Indosuez W.I. Carr issued a sell recommendation on expectation the curb on fresh foreign investor purchases will set off one of the five identified negative triggers for the stock of ICICI.
Foreign ownership had reached 47 percent and any fresh purchase of ICICI's shares by foreign investors will need prior Reserve Bank of India permission, the report said.
The other four negatives identified by the brokerage are absence of bank acquisitions by the firm contrary to expectations, declining interest spreads, earnings dilution and potential risk of hitches in implementation of information technology initiatives, it said.
However, the brokerage said ICICI's subsidiary companies, both listed and unlisted, offered better investment opportunities since they did not carry ``historical baggage.'
``Most of the action in the ICICI group is in its subsidiaries, which are either listed or will be listed shortly,' the report said.
The share price of ICICI was 133.90 rupees on January 21, the date on which the report was published.
ICICI shares closed on Thursday at 121.05 rupees, down 8.65 rupees compared with the previous close. |
