Anil Ambani Group firm Reliance Communications Ltd said its R-World, will be powered by mobile data services and solutions provider, Motricity, which will deliver complete mobile Internet and data services.
The mobile data services portal has been developed on Motricity’s mCore platform which powers 3G mobile portals of many leading global 3G service providers, RComm said in a statement.
“Reliance is aggressively rolling out 3G services in India and we believe our partnership with Motricity will allow us to deliver a richer, more personalised, mobile Internet experience to our customers,” Reliance Communications CEO–wireless business Syed Safawi said.
The portal developed for the upcoming 3G services will deliver end-to-end mobile Internet and data services to 120 million Reliance mobile subscribers.
On Friday, RComm ended 1.62% down at Rs139.50 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.13% to 19,966.93 points.
Infrastructure major Larsen & Toubro (L&T) Ltd said its construction division has won an order worth Rs716 crore from the Department of Transport, Abu Dhabi, for construction of Sheikh Khalifa Interchange.
The scope of work includes construction of four bridges to be completed in two years, L&T said in a filing to the Bombay Stock Exchange (BSE).
On Friday, L&T gained 0.45% to Rs2,020.10 on the BSE, while the benchmark Sensex declined 0.13% to 19,966.93 points.
Cement sales in November were 19% lower month-on-month for seven cement players that make up half of the industry capacity. According to CLSA, some of the key reasons were inventory build-up, a prolonged monsoon and no major pick-up in infra projects. It expects cement prices to slip lower
The most important implication of weak month-on-month cement despatches will be on prices, says CLSA. In a report to its clients today, CLSA said, "Our interactions with industry participants indicate that cement prices, across regions, have corrected by 2-5% in the last 2-4 weeks. The drops have been higher in north/central compared to south/west. Dealer feedback indicates that in case demand growth continues to remain sluggish, there is a possibility of further pressure on prices in the next few weeks."
CLSA remains concerned about sector fundamentals and maintains an underweight rating on the sector. For individual stocks, it has a 'sell' on Ambuja Cement and 'underperformer' on ACC and UltraTech. It is relatively positive on Shree Cement, as it believes valuations are reasonable and that the company has increasing earnings from power, and Grasim for its strong viscose staple fibre (VSF) business and high holding company discount.
According to CLSA's calculations, Grasim trades at a price-to-earnings multiple (FY12) of 11 times, Ambuja and UltraTech at 17 times, and ACC at 18 times. Among mid-caps, India Cement trades at 24 times and Shree Cement trades at 11 times.
In terms of EV/tonne, CLSA estimates Grasim to be at $70, Ambuja at $165, ACC at $129, UltraTech at $135, India Cement at $80 and Shree Cement at $82.
In November, ACC reported a 5% y-o-y rise in despatches due to a low base and also because it commissioned new capacity. Ambuja reported a fall, partly because of the transporters' strike in north India that impacted its Himachal unit. Jaiprakash's volumes were up 13% y-o-y, but CLSA points out that the low base effect will no longer be there from December.
Grasim's shares fell to a low of Rs2,144 recently, but the price has moved up subsequently to Rs2,345. The Ambuja stock price fell to a low of Rs133 recently and has not recovered much since then. ACC too has not recovered much from a recent low of Rs968. UltraTech is languishing at around Rs1,100 levels. India Cements has recovered from its recent low of Rs95 and is at Rs 108. Shree Cement, too, has recovered a bit from its recent low.
(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).