RESEARCH REPORTS
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LUPIN: Result Update 1QFY2011
Lupin reported in-line 1QFY2011 results. The company continued its strong traction both in the US (Lotrel and Antara) as well as in the domestic (field force expansion) market. Though a delay in the launch of OC products in US is marginally disappointing, it’s unlikely to change the competitive scenario in the segment. We maintain an Accumulate on the stock and reiterate it as one of our top picks in the sector. In-line results: Lupin reported net sales of Rs1,312cr (Rs1,285cr), which was in line with our estimates on the back of continuous traction in the US and domestic formulation segments.
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Healthcare in Asia Pacific
Healthcare sector comprises of many segments, which include hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, and health insurance. The global economic slowdown has affected many segments of the economy. However, as comparison, the healthcare sector has outperformed the broader market. Such phenomena is more significant in Asia Pacific as the meltdown of the economy has not hit the Asia Pacific region as severely as in the developed countries such as the US and Europe…
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INDIAN OVERSEAS BANK: Result Update 1QFY2011
Indian Overseas Bank (IOB) posted net profit decline of 33.6% yoy and robust growth of 57.2% qoq to Rs200cr, above our estimates, because of better-than estimated NII growth and lower provisioning expenses. In-line operating performance along with signs of improvement in asset quality was the key highlight of the result. We recommend a Buy rating on the stock. ■ Initial signs of improvement in asset quality: At the end of 1QFY2011, advances were up by 7.9% yoy and by 2.7% qoq to Rs82,951cr. Deposits grew by 8.6% yoy but were down…
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ALEMBIC: Result Update: 1QFY2011
Alembic reported below expectation numbers for 1QFY2011 impacted by de-growth on the export API front. The domestic formulation sales grew by 5.5% yoy on the back of the restructuring exercise undertaken by the company over the last one year, which improved working capital management resulting in lower debt levels. We maintain a Buy on the stock as de-merger of the company into – Alembic and Alembic Pharma – is a long-term positive as it will unlock value for both the businesses and pave the way to rope in future investors.
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APOLLO TYRES: Result Update 1QFY2011
Apollo Tyres reported modest results for 1QFY2011, despite a sharp jump in rubber prices and lockout at one of its plant. Standalone top-line registered a decline of 5% yoy to Rs1,121cr (Rs1,180cr) in 1QFY2011. Tonnage sold for the quarter declined 20% qoq to 66,000MT on account of the lockout at its Permabra facility due to labor unrest. The Perambara plant shut down resulted in revenue loss of around ~Rs300cr (15,000MT of production loss) during the quarter…
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HERO HONDA: Result Update 1QFY2011
For 1QFY2011, Hero Honda (HH) reported decent performance on top-line front, while operating performance and bottom-line came in below expectation. OPM was impacted largely due to higher input cost, which in turn resulted in poor bottom-line performance. We revise our OPM estimates downwards to account for margin pressure due to the increasing raw material prices. Owing to the recent decline in the price, we recommend an Accumulate on the stock…
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MARKET REVIEW 4th Aug, 2010
The key benchmark indices scaled 2-1/2-year highs on strong services sector data and on revival of monsoon rains in the crucial sowing month of July 2010. Data showing sustained buying by foreign funds over the past two months, underpinned sentiments. European stocks and US index futures fell. Asian stocks were mixed. IT stocks surged after IT major Cognizant reported stellar results and raised its guidance significantly. Realty stocks also rose. Banking and metal stocks fell. Index heavyweight Reliance Industries (RIL) edged lower. The market breadth was positive…
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NSE Bulk Deals – India Equity Market 4th Aug, 2010
Bulk deal is a stock trading where stock quantities buy or sell by an investor is more then 0.5% of total number of equity shares of the company listed at India stock exchanges.
In year 2004 SEBI bring more transparency to the bulk deals by making is compulsory for stock exchanges to publish intraday bulk deals at the end of the trading day.
Below are current bulk deals at National Stock Exchange of India (NSE):
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Bulk Deals in BSE 4th Aug, 2010
Members are required to make a disclosure on a daily basis up to 5.00 p.m. through DUS (Data Upload software), with respect to all transaction in a scrip for a client where the total quantity bought/sold is more than 0.5% of the number of equity shares of the company listed at BSE…
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KOTAK MAHINDRA BANK
The standalone bank reported PAT far ahead of our estimates at Rs 186.9 crore (107% YoY) against our estimate of Rs 159 crore. Even the NII surged 24% YoY to Rs 508.2 crore. On a consolidated basis, PAT grew 27% YoY to Rs 327 crore but sequentially declined by 21.7%. The performance of other capital market subsidiaries continued to suffer, losing market share sequentially. We expect the banking business to grow at 25% CAGR over FY10-12E delivering an RoE of 18-19%…
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IDEA CELLULAR: Better than expected show…
Idea Cellular reported better than expected results for Q1FY11E. Consolidated topline for the quarter stood at Rs 3653.7 crore against our expectation of Rs 3411.3 crore. The company reported an EBITDA of Rs 888.4 crore at 24.3%. PAT for the quarter was at Rs 201.4 crore, higher than our expectation of Rs 183.8 crore. This was primarily due to lower than expected interest expense due to capitalisation of interest of Rs 40.4 crore against payment of 3G auction fees. The financials are not strictly comparable to the previous quarter since this quarter includes the full impact of 100% Spice amalgamation…
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NIIT TECHNOLOGIES LIMITED: Result Update Q1FY11
NIIT Tech reported a good first quarter. The YoY topline Growth is 33% and QoQ growth is 21%. The spike is on account of BSF order being included. Excluding the order the growth is still at a YoY level of 21%. The company has bagged a good chunk of domestic business. They are also participating in the R-APDRP program just like other IT players, as a System Integrator. Overall 9% of revenue contribution is through the Govt Segment. The longer term implication of this would be a slightly reduced margin since Govt contracts are price competitive. Also, there would be a general increase in the average number of receivable days…
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UNICHEM LAB: Result update Q1FY11
Unichem’s (ULL) Q1FY11 results were in line with our expectations. Sales grew 11% YoY to Rs 186 crore (we expected Rs 197 crore) due to ~11% YoY growth in the domestic business and ~12% YoY growth in exports. In the domestic business, the top 3 brands viz. Ampoxin, Losar H and Losar continued to stage a robust performance. ULL reported 3% YoY net profit growth in Q1FY11 to Rs 33.4 crore (we expected Rs 33.5 crore) on a standalone basis. EBITDA margin decreased 119 bps YoY from 27.1% in Q1FY10 to 25.9% in Q1FY11 but QoQ it improved marginally by ~7 bps. Although export formulations de-grew ~2% YoY, overall exports grew…
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ACC: reported net sales and net profit of Rs 2020.7 crore
ACC reported net sales and net profit of Rs 2020.7 crore (-2.9% YoY, 3.9% QoQ) and Rs 358.9 crore (-26.1% YoY, -11.4% QoQ), respectively, in Q2CY10. These were in line with our respective estimates of Rs 2006.3 crore and Rs 380.8 crore, respectively. The EBITDA margin has declined 789 bps YoY (223 bps QoQ) to 27.4% in the quarter. ACC is adding 3 million tonnes (MTPA) at Chanda, Maharashtra, which will take its installed capacity to 30 MTPA by Q3CY10E. Considering the expansion, we expect volume growth of ~6% CAGR (CY09-11E). Cement realisations are expected to be under pressure in CY10E on account of a decline in capacity…
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AUTOMOTIVE AXLE: Topline provides a pleasant surprise…
Automotive Axles (AAL) reported impressive Q3FY10 numbers by beating our estimates with the topline galloping 197.7% YoY and 15.4% QoQ to Rs 196.2 crore on the back of an increase in share of sales from OEMs and improvement in realisation on renegotiation of prices with OEMs. AAL had a lesser than anticipated sequential margin shrinkage of 80 bps due to better cost management initiatives and inventory control even though raw material costs rose by 70 bps during the same period. EBITDA grew 11.7% QoQ and 262.3% YoY to touch Rs 27.5 crore. Net profit zoomed to Rs 14.5 crore with 439.4% YoY and 17.9% QoQ growth…
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How the Great Recession Was Brought to an End
The U.S. government’s response to the financial crisis and ensuing Great Recession included some of the most aggressive fiscal and monetary policies in history. The response was multifaceted and bipartisan, involving the Federal Reserve, Congress, and two administrations. Yet almost every one of these policy initiatives remain controversial to this day, with critics calling them misguided, ineffective or both. The debate over these policies is crucial because, with the economy still weak, more government support may be needed, as seen recently in both the extension of unemployment benefits and the Fed’s consideration of further easing…
