Monday, January 23, 2012

Stocks in action for the day: Tata Power, Jet, RIL, Godrej Cons, Aptech

Market Outlook: Indian markets is expected to open flat and trade week ahead of below market expectations on RIL earnings. The 12 crore-share buyback aimed at boosting investor confidence in the stock is unlikely to allay concerns over the poor results.

Results today: L&T, GAIL, Maruti, Idea Cellular, Sterlite Industries, Kotak Mahindra Bank, Colgate, Federal Bank, Geometric, Jyothy Labs, DB Corp, Shree Cements, Torrent Pharma, Coromandel International, Ashoka Buildcon, Onward Technologies, Cera Sanitaryware, Electrosteel Castings, KPIT Cummins, Lakshmi Machine Works, Pheonix Mills, RPG Life, Vardhaman Textiles

Global Markets: Today most of the Asian markets shut on Chinese New Year. China, Hong Kong, Singapore, Korea and Taiwan markets shut today.

Global events to watch:

ΓΌ IMF Managing Director Lagarde speech in Berlin on global challenges in 2012.

Global indices Update @ 8:

Dow Jones : 12720 (+96.56)

NASDAQ : 2786 (-01.63)

Nikkei 225 : 8782 (+15.70)

Hang Seng : 20110 (+167.4)

SGX CNX Nifty : 5064 (+6.00)

Gold (USD/t oz.) : 1668

Nymex Crude (F) : 98.09

INR / 1 USD : 50.32

TECHOUTLOOK : Support for Nifty is at 5020 resistance at 5075

Call for the day:

Weak RIL earnings may erase some of their recent gains in the week : Sell RIL

Buy Titan Sl 186 Target 202-205

Stocks in action for the day: Tata Power, Jet, RIL, Godrej Cons, Aptech

RIL Q3 (QoQ) (cr - crore, vs - versus) -Net sales up 8.4% at Rs 85135 cr vs Rs 78569 cr -PAT down 22% at Rs 4440 cr vs Rs 5703 cr -Total expenditure up 12% at Rs 80420 cr vs Rs 71694 cr EBITDA down 26% at Rs 7285 cr vs Rs 9844 cr -EBITDA margin at 8.6% vs 12.5% RIL on share buyback -RIL board okays share buyback of Rs 10,440 cr -Board approves buyback at up to Rs 870/sh -Buyback up to Rs 12 cr shares via open-market -Buyback up to 3.6% of equity Mukesh Ambani says -Global nature of biz, weak economic condition hit Q3 -Delivered reasonably robust results despite challenges -To invest prudently in future growth engines Aptech stake sale hits a roadblock: Sources -Board not convinced on bid price & bidder plans.

Steel Authority of India Limited (SAIL) will be in focus on expansion and capacity addition in its Rs.70,000-crore programme. The company also plans to shift its focus to increase the share of value-added products from 39 per cent to around 55 per cent in the next two years.

Adani Port and Special Economic Zone Ltd (APSEZ) the company has been denied security clearance to participate in an auction to build a fertilizer loading berth at the Union government-controlled Vizag port in Andhra Pradesh.

United spirits results too disappointed the street, with Q3 net profit of nearly Rs 48 crores versus Rs 130 crores a year ago. Meanwhile, revenue stood at Rs 1,967 crores. The shareholders have approved raising foreign currency convertible bonds (FCCBs) worth USD 175 million and green shoe option of USD 50 million.

Jet Airways registered a net loss of Rs 101 crore which was lower than expectations due to higher other income. However, low margins signal that operational weakness continues despite Q3 being seasonally strongest. Also watch out for Zee Entertainment and Ultratech Cement.

FMCG giant Hindustan Unilever changed to its management committee and appoints Hemant Bakshi as executive director of its home and personal care division after current head Gopal Vittal quit.

Coal India has been asked to cut sales via e-auction. The coal minister says that the company has been asked to first meet power companies' needs.

Ramky Infrastructure Ltd., through a step down subsidiary, has signed a concession agreement with the National Highways Authority of India (NHAI) for a Rs 1,033.65-crore road project (a tollway) in Karnataka. The company, through concessionaire company Hospet Chitradurga

Karnataka Bank Ltd recorded a growth of around 86.71 per cent in net profit due to the increase in the spread and due to the strong credit growth. It recorded a net profit of Rs 72.05 crore in the third quarter of 2011-12 as against Rs 38.59 crore in the corresponding period of the previous fiscal, recording a growth of 86.71 per cent.

The production target for world's largest coal producer Coal India (CIL) is likely to be fixed at 464 million tonnes (MT) for 2012-13 financial year.

Godrej Consumer will issue 16.7 million shares to Baytree Investments and will raise Rs 685 crores via the share sale. Baytree Investment is an indirect wholly-owned arm of Temasek. The company will buy 60% stake in Chile's Cosmetica Nacional.

ONGC & RIL will be in focus on reports a possible technical partnership between ONGC and Reliance Industries-BP could be in the offing.

Aptech board on grounds of low valuation -Manipal Universal's offer below Rs 105/sh, Carlyle back bid around Rs 108/sh -Rakesh Jhunjhunwala likely to re-look at stake sale -Bidders yet to be communicated board's response

Godrej Consumer -Acquired 60% stake in Chile's Cosmetica Nacional-Plan to up stake to 100% in 3-5 years in Cosmetica Nacional -Cosmetica Nacional has turnover of USD 36 million

Godrej Consumer -To raise Rs 685 cr via share sale to Baytree -To issue 16.7 m shares to Baytree investments -Baytree investment is indirect wholly-owned arm of Temasek

Coal Minister says - Coal India asked to cut sales via e-auction -Asked Coal India to 1st meet power companies' needs

SEBI allows call auction in pre-open session for IPOs (This will hugely curb big spike on day 1 of listing) Call auction session will be for 60 minutes on 1st day listing Call auction session will be between 9 am to 10 am -Pre-open session to be allowed for companies relisting as well Other

Adani group agrees for 25% stake in proposed LNG Terminal in Gujarat - ET

Tata Power in talks to acquire 15% stake in Dubai's MEC Coal - ET


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