For any special situsations strategy fund manafgers out there, Indian markets have had screaming opportunities in the three strategies above which while not signalling turnarounds do signal sector wide up ticks and great unlocking of value in the businesses. 

 

Unitech is demerging its "non core" assets worth $1 billion into a new Unitech Infra company which will own three amusement parks in Delhi, Noida and Chandigarh, 11 hotels with 2100 rooms and 10msf in real estate going to 35 msf in three years. It also has an order book  going from a $100 million in Power transmission projects now to $1 billion in the pipeline by end 2010. That is one great piece of value you must own. The real estate industry conditions have finally moved after months of inactivity and a particularly brutal bout of credit sdqueeze from banks' real estate credit overexposure. Strong Management and direction and also the take off of its telecom business ( again in a separate company as Uninor) will keep this flagship of the group a great builder of value in the new lifestyle economy ethos.   Unitech has also bought back its London AIM listed Unitech Corporate Parks for $159.6 million under Unitech Ltd as part of the plan last week.

Credit rating agency Fitch on Tuesday placed four real estate companies — Unitech, Omaxe, Ansal Properties and Parsvnath — on rating watch positive, in view of the improvement in industry fundamentals. Rating watch positive reflects the possibilities that the ratings can either be upgraded or affirmed at the current levels, Fitch said.

Fitch said sustainable operating performances, continued de-leveraging by developers over a longer period could lead to rating upgrades in the second half of the year. “The fundamentals of the domestic realty sector are improving, as seen by better liquidity and improved demand,” Fitch said.

 

IDFC is the consolidation play, managing an asset book already as much as $8.080 Billion in the preferred Infrastructure sector. Infrastructure financing / refinancing is fail safed by government regulation and lets this industry pioneer to establish value leadership with current lending net capital adequacy standing at a high 26% even against the speciality NBFC requirement of 15% 

 

The bigger lifestyle play, as also under professional; management and deeper roots that preclude private equity investment, ITC has just split its stock this week and is trading at alittle below $4, The business has the largest investments in retail distribution and rural retail as also the expertise and the brand valuations in Tobacco, Foods , Paper and Hotels where it remains an acclaimed international brand with the Taj from Tatas and the last of the Oberoi/Trident franchises. 

 

Just a heads up, a lot of current research is available for these blue chip plays.  

 

Meanwhile the ADAG company Reliance Media World, now Reliance Broadcast Networks is doing well in radio and outdoors, owning 21% of the radio market with a 64% ad inventory utilisation signalling the good times. Radio is 50% of this Reliance Media play. RBNL is planning its first profits in 2012 and is a PE play with high 7% QoQ growth in June 2010

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