Analysts' corner: Bharti Tele-Ventures

Motilal Oswal Securities maintains its "buy"on Bharti Tele-Ventures. The report states that the wireless industry added 35.1 lakh subscribers in November 2005, the highest-ever monthly additions by the industry.

GSM operators added 23.2 lakh subscribers for November 2005, the highest subscriber additions, led by strong performance by BSNL, Bharti and Hutch. CDMA operators added 11.8 lakh subscribers, the highest-ever monthly additions.

Bharti added 675,636 subscribers for the month, marginally higher than the previous month's additions of 672,450. The report adds that Bharti's subscriber additions in the existing circles remained steady over the last six months. The B-circle witnessed the strongest growth in November, followed by the A-circle.

However, the subscriber additions in new circles was disappointing, declining 6.4 per cent from the additions in October 2005 to 158,694 in November 2005, thereby muting the overall increase in additions for Bharti.

Crew BOS Products

Brics PCG Research recommends a "buy" on Crew BOS Products. The report states that there are good opportunities in the fashion accessories sector for the company. Fashion accessories contribute around 8-15 per cent of the total apparel sales for big players the world over.

India has a six-per cent share in the leather goods export market and has the potential to increase this, given the availability of strong design skills, cheap labour and an abundance of raw material.

The company has a wide product bouquet to offer, backed by skilled labour and designing capabilities and is riding high on a customer list that includes Next Plc, Esprit, Fossil, Chico's, Armani Exchange, Tesco, Gap and Banana Republic.

The company recently set up a leather processing plant at Jalandhar to tap the finished leather export market for captive consumption. It has established a subsidiary in Hong Kong for contract manufacturing and marketing of its finished products including finished leather. These efforts will expand the revenue base going forward.

Balrampur Chini

KRC Research, in its update on Balrampur Chini, states that the company is in the process of expanding its sugarcane crushing capacity through organic route by undertaking greenfield expansion. By acquiring a sugar plant of Dhampur sugar, it has strengthened its position through inorganic route.

Due to these initiatives, its total sugar capacity will increase to 54,500 TCD by the beginning of sugar season of 2006. Going forward, the report believes that the growth in sugar industry would mainly be volume driven and the company is well-poised to tap the growing opportunities with steady increase in capacities.

This, in turn, would boost the revenue and earnings growth. Higher production of allied sugar products and improved industry scenario for the same would facilitate revenue growth also.

Going forward, the company would also benefit from the locational advantage, which its plants enjoy. The company is one of the largest integrated sugar manufacturing companies in India. It posted a strong 68 per cent growth in the net sales to Rs 287.6 crore in SQ FY06.