CRISIL strong Q1 numbers

CRISIL spurted 8.31% to Rs 3523 at 15:30 IST on BSE after posting 74% surge in consolidated net profit to Rs 31.48 crore in Q1 March 2008 over Q1 March 2007.

The stock hit a high of Rs 3547 and a low of Rs 3262.65 so far during the day. The stock had a 52-week high of Rs 4275 on 23 July 2007 and a 52-week low of Rs 2651 on 22 January 2008.

The company’s current equity is Rs 7.23 crore. Face value per share is Rs 10.

The current price of Rs 3523 discounts its Q4 December 2007 EPS of Rs 152.14, by a PE multiple of 23.16.

CRISIL’s net sales rose 30.68% to Rs 116.74 in Q1 March 2008 over Q1 March 2007, on consolidated basis.

In February 2008, CRISIL said it plans to set up a credit information company in India by joining hands with Equifax Inc., USA, and Tata Capital.

India's largest rating agency by revenue, CRISIL provides rating, advisory and research & information services.

Kirloskar Brothers good Q4 results

Kirloskar Brothers surged 4.51% to Rs 289.90 at 14:30 IST on BSE after posting 43.4% rise in net profit to Rs 52.66 in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 289.90 and a low of Rs 280.50 so far during the day. The stock had a 52-week high of Rs 527 on 3 October 2007 and a 52-week low of Rs 206.40 on 24 March 2008.

The company’s current equity is Rs 21.15 crore. Face value per share is Rs 2.

The current price of Rs 289.90 discounts its Q4 March 2008 EPS of Rs 19.92, by a PE multiple of 14.55.

Kirloskar Brothers’ net sales rose 26.9% to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.

On 15 April 2008, Kirloskar Brother received a letter of intent for an order worth Rs 166.77 crore from Damodar Valley Corporation - Kolkata in respect of Koderma thermal power project.

On 1 April 2008, the company received a letter of intent for an order worth Rs 338.92 crore from the Government of Andhra Pradesh, Irrigation & CAD Department in respect of Rajiv Sagar Lift Irrigation project.

The company is engaged in manufacturing and selling pumps and compressors. Products of the group include power driven pumps, valves, anti corrosion products, electric motors, spares and others. The group operates in three segments, namely, pump, compressors and others.

Bajaj Hindustan Robust Q2 numbers

Bajaj Hindustan gained 1.05% to Rs 235.25 at 14:11 IST on BSE after posting 1075.68% surge in net profit to Rs 43.03 crore in Q2 March 2008 over Q2 March 2007.

The stock hit a high of Rs 245.70 and a low of Rs 233.40 so far during the day. The stock had a 52-week high of Rs 399.50 on 9 January 2008 and a 52-week low of Rs 115.55 on 22 August 2007.

The company’s current equity is Rs 14.14 crore. Face value per share is Rs 1.

The current price of Rs 235.25 discounts its Q1 December 2007 EPS of Rs 8.39, by a PE multiple of 28.04.

Bajaj Hindustan’s total income fell 5.25% to Rs 500.04 crore in Q2 March 2008 over Q2 March 2007.

Bajaj Hindusthan (BHL), a part of the 'Bajaj Group', is India's number one sugar and ethanol manufacturing company, headquartered at Mumbai (Maharashtra), India. The company has ten sugar plants, which are all located in the northern Indian state of Uttar Pradesh (UP).

Surana Telecom rings on nod for share buyback

Surana Telecom & Power rose 1.07% to Rs 37.75 at 12:30 IST on BSE after its board approved buyback of shares at a price not exceeding Rs 50 and for an amount not exceeding Rs 6 crore.

The stock hit a high of Rs 39.25 and a low of Rs 35.70 so far during the day. The stock had a 52-week high of Rs 52.50 on 1 January 2008 and a 52-week low of Rs 20.75 on 24 March 2008.

The company’s current equity is Rs 11.3 crore. Face value per share is Rs 5.

The current price of Rs 37.75 discounts its Q3 December 2007 EPS of Rs 4.11, by a PE multiple of 9.18.

The number of shares to be bought back shall not be more than 18 lakh equity shares.

Surana Telecom & Power' s net profit declined 7.9% to Rs 2.32 crore on 26.5% fall in net sales to Rs 15.37 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing heat-shrinkable jointing kits, cable splicing/filling compounds, jelly filled telecommunication cables, wire connectors, end caps, modular connectors and high-density polyethylene (HDPE) pipe.

Bhagyanagar India tumbles on deferring share buyback plan

Bhagyanagar India declined 7.81% to Rs 42.50 at 10:26 IST on BSE after its board deferred proposal to buyback shares of the company.

The stock hit a high of Rs 45.60 and a low of Rs 42.20 so far during the day. The stock had a 52-week high of Rs 79.50 on 2 January 2008 and a 52-week low of Rs 35 on 17 October 2007.

The company’s current equity is Rs 14.9 crore. Face value per share is Rs 2.

The current price of Rs 42.50 discounts its Q3 December 2007 EPS of Rs 5.04, by a PE multiple of 8.43.

Bhagyanagar India’s net profit rose 36.3% to Rs 9.38 crore on 36.8% growth to Rs 64.76 crore in Q3 December 2007 over Q3 December 2006.

Bhagyanagar India is a part of the Surana group, is engaged in the business of metals, cables, compounds, real estate and wind power

Exide Industries Strong Q4 result

Exide Industries surged 6.94% to Rs 81.70 at 9:55 IST on BSE after posting 63.1% rise in net profit to Rs 62.82 crore on 49.4% growth in total income to Rs 796.36 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 81.70 and a low of Rs 78 so far during the day. The stock had a 52-week high of Rs 90.90 on 14 January 2008 and a 52-week low of Rs 40.42 on 11 May 2007.

The company’s current equity is Rs 80 crore. Face value per share is Rs 1.

The current price of Rs 81.70 discounts its Q4 March 2008 EPS of Rs 3.14, by a PE multiple of 26.02.

Exide Industries’ net profit surged 61.28% to Rs 250.33 crore on 51.69% growth in total income to Rs 2,851.38 crore in FY 2008 over FY 2007.

Exide Industries is engaged in manufacturing and selling storage batteries. It manufactures lead acid storage batteries used for starting piston engines and other lead acid accumulators.

Rally enters sixth day, but seen running out of steam

Rally enters sixth day, but seen running out of steam
23 Apr, 2008, 0432 hrs IST,Apurv Gupta, TNN

Equity benchmarks extended their gains to the sixth consecutive session on Tuesday, but the rally appeared to be running out of steam. With quarterly corporate earnings broadly falling short of consensus estimates, market watchers expect institutional buying interest to wane, pushing the indices back into a narrow trading range.

The 30-share Sensex closed at 16,783.87, a gain of 44.54 points, or 0.3%, over the previous close. The barometer fell to an intra-day low of 16,597.53, but recovered on the back of a similar trend in key Asian markets. European markets, which opened after the close of trading in India, were firm in early trades.

China, Hong Kong and Singapore closed with small gains, after having started on a sluggish note due to disappointing numbers from Bank of America. With Tuesday’s gains, the Sensex has gained nearly 1,000 points in the last six sessions. But in the absence of any positive trigger, players feel the bulls could be on the back foot in the short term.

The 50-share Nifty rose 12.30 points, or 0.2%, to close at 5,049.30. IT stocks fell out of favour following lacklustre quarterly numbers from TCS announced late evening on Monday. TCS itself bore the brunt, shedding 11% over its previous close, while other stalwarts like Wipro and Infosys too were down 5% each.

Buyers, however, continued to place their faith in infrastructure, cement, banking and real estate shares. Among Sensex stocks, BHEL, Jaiprakash Associates, DLF and HDFC were among the best performers.

The immediate near term trigger for the market is the expiry of the current month derivative contracts. According to Ankur Agarwala of IDBI Capital, the Nifty is expected to see an expiry of above 5,100. “The rally post expiry is expected to continue till 5,280,” he says.

“We could see lot of stock specific action due to various factors in play like inflation, RBI policy, crude oil prices among others. There is bullish trend in stocks like ONGC, SBI, RIL, RPL and NTPC,” he adds.On the downside, he expects 4,880 to be a strong support level for the Nifty.

Greaves Cotton, BUY

Greaves Cotton, BUY

Attractive valuation

Price Rs230 Target Price Rs442

Greaves Cotton Limited (GCL) reported results broadly in-line with our

expectations. Though the infrastructure equipment division reported robust

growth, engines segment reported subdued numbers. We believe the key trigger

for the stock going ahead will be the success of the twin engine cylinder that the

company has launched. We maintain BUY with target price of Rs.442

MK, 22nd April, 2008

GVK Power & Infrastructure Robust Q4 result

GVK Power & Infrastructure rose 0.22% to Rs 44.90 at 15:16 IST on BSE on posting 511.78% rise in net profit to Rs 90.85 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 53.55 and a low of Rs 44.65 so far during the day. The stock had a 52-week high of Rs 93.50 on 6 December 2007 and a 52-week low of Rs 31.50 on 26 April 2007.

The company’s current equity is Rs 140.58 crore. Face value per share is Rs 1.

The current price of Rs 44.90 discounts its Q3 December 2007 EPS of Rs 1.01 by a PE multiple of 44.45.

GVK Power & Infrastructure reported 173.34% rise in total income to Rs 117.32 crore in Q4 March 2008 over Q4 March 2007.

GVK Power & Infrastructure had recently split its shares from the Rs 10 per share to Re 1 per share.

The company's principal activity is to operate power plants.

UltraTech Cement good Q4 numbers

Ultratech Cement jumped 5.81% to Rs 817.90 at 14:48 IST on BSE on posting 22.17% rise in net profit to Rs 282.88 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 808 and a low of Rs 770 so far during the day. The stock had a 52-week high of Rs 1,165 on 15 October 2007 and a 52-week low of Rs 731 on 22 January 2008.

The company’s current equity is Rs 124.49 crore. Face value per share is Rs 10.

The current price of Rs 817.90 discounts its Q3 December 2007 EPS of Rs 89.80, by a PE multiple of 9.1.

The company reported 9.6% rise in total income to Rs 1,628.69 crore in Q4 March 2008 over Q4 March 2007.

The company is engaged in manufacturing and marketing clinker and cement in India. The group exports to the Middle East and Sri Lanka. It also exports in small quantities to Bangladesh and some European nations.

Binani Cement expansion plans

Binani Cement surged 6.44% to Rs 86.75 at 14:14 IST on BSE on reports the company would invest about to Rs 2000 crore by 2012 for expansion of capacities both in India and overseas.

The stock hit a high of Rs 89.50 and a low of Rs 82.65 so far during the day. The stock had a 52-week high of Rs 130 on 16 October 2007 and a 52-week low of Rs 58.75 on 22 June 2007.

The company’s current equity is Rs 203.10 crore. Face value per share is Rs 10.

The current price of Rs 86.75 discounts its Q4 March 2008 EPS of Rs 12.63, by a PE multiple of 6.87.

As per recent reports, this expansion includes setting up of one million tonnes per annum (MTPA) of grinding unit in Bharuch, two MTPA green field project in coastal Gujarat, doubling the cement capacities in China and Dubai and acquiring coal mines in Indonesia. A mix of debt and equity would fund the investment, reports added.

Binani Cement’s net profit rose 151.8% to Rs 64.13 on 80.3% growth in net sales to Rs 336 in Q4 March 2008 over Q4 March 2007.

The company is engaged in manufacturing and marketing cement and non-ferrous metal. The group operates in three segments: cement, zinc and by-products and glass fibre.

Surana Telecom gains ahead of board meet on buyback

Surana Telecom rose 4.07% to Rs 38.40 at 13:37 IST on BSE ahead of its board meeting today to consider the proposal of buy back of equity shares.

The stock hit a high of Rs 39.50 and a low of Rs 37 so far during the day. The stock had a 52-week high of Rs 52.50 on 1 January 2008 and a 52-week low of Rs 20.75 on 24 March 2008.

The company’s current equity is Rs 11.3 crore. Face value per share is Rs 5.

The current price of Rs 38.40 discounts its Q3 December 2007 EPS of Rs 4.11, by a PE multiple of 9.34.

Surana Telecom’ & Power' s net profit declined 7.9% to Rs 2.32 crore on 26.5% fall in net sales to Rs 15.37 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing heat-shrinkable jointing kits, cable splicing/filling compounds, jelly filled telecommunication cables, wire connectors, end caps, modular connectors and high-density polyethylene (HDPE) pipe.

PSL wins Large order

PSL gained 2.14% to Rs 313 at 13:04 IST on BSE after the company said it has secured two orders worth Rs 1,225 crore from Larsen & Toubro and HPCL-Mittal for laying pipelines.

The stock hit a high of Rs 321 and a low of Rs 309 so far during the day. The stock had a 52-week high of Rs 588 on 31 December 2007 and a 52-week low of Rs 204.60 on 24 April 2007.

The company’s current equity is Rs 42.17 crore. Face value per share is Rs 10.

The current price of Rs 313 discounts its Q3 December 2007 EPS of Rs 28.37, by a PE multiple of 11.03.

One of the two orders is valued at Rs 917 crore received from HPCL-Mittal for supplying steel pipes for the Mundra Bhatinda crude oil line. The other order is valued at Rs 308 crore secured from Larsen & Toubro (L&T) for water transport.

PSL’s net profit rose 45.1% to Rs 30.19 crore on 32.1% growth in net sales to Rs 659.05 in Q3 December 2007 over Q3 December 2006.

PSL manufactures pipes to meet requirements from all sectors, including oil and gas. Its mills are equipped with internal and external pipe-coating facilities to meet technical requirement of the oil, gas and water sectors in conformity with international specification. It has facilities at Kandla and Ahmedabad in Gujarat, Chennai in Tamil Nadu, and Visakhapatanam in Andhra Pradesh.

Escorts good Q2 numbers

Escorts rose 5.3% to Rs 104.40 at 11:30 IST on BSE on reporting 44.3% rise in net profit to Rs 9.68 crore in Q2 March 2008 over Q2 March 2007.

The stock hit a high of Rs 106.90 and a low of Rs 97.55 so far during the day. The stock had a 52-week high of Rs 174 on 3 January 2008 and a 52-week low of Rs 72.70 on 23 August 2007.

The company’s current equity is Rs 84.44 crore. Face value per share is Rs 10.

The current price of Rs 104.40 discounts its Q2 March 2008 annualised EPS of Rs 4.59, by a PE multiple of 22.74.

Escorts reported 7.4% decline in sales to Rs 531.47 crore in Q2 March 2008 over Q2 March 2007

The company is engaged in manufacturing agri-machinery, telecommunications, healthcare, construction and material handling equipment, automotive and railway ancillaries. It also provides information technology and financial services.

TCS disappointing Q4 results

TCS slumped 7.11% to Rs 922 at 10:45 IST on BSE after the company reported 5.95% fall in net profit to Rs 1108.81 crore in Q4 March 2008 over Q3 December 2007.

The stock hit a high of Rs 980 and a low of Rs 912.35 so far during the day. The stock had a 52-week high of Rs 1299.50 on 4 May 2007 and a 52-week low of Rs 730 on 22 January 2008.

The company’s current equity is Rs 97.86 crore. Face value per share is Re 1.

The current price of Rs 922 discounts its Q4 March 2008 annualized EPS of Rs 45.32, by a PE multiple of 20.34.

TCS posted 2.23% rise in net sales to Rs 4942.49 crore in Q4 March 2008 over Q3 December 2007.

TCS reported 7% growth in net profit as per US GAAP at Rs 1256 crore on 18.4% growth in revenue at Rs 6095 crore in Q4 March 2008 over Q4 March 2007. The company’s management sounded positive on growth prospects despite worries that a weak US economy would hurt outsourcing deals.

The company said the deal pipeline is encouraging and client ramp-ups have started happening

Meanwhile, some of the prominent brokerages have downgraded the stock after the disappointing results. Morgan Stanley has downgraded its rating on TCS to equal-weight from overweight. Similarly, Lehman Brothers Inc. has also cut its share price estimate for the Tata Consultancy Services stock to Rs 1,161 from Rs 1,286 earlier.

On 1 April 2008, TCS signed a five-year, multi-million dollar contract with auto components maker ArvinMeritor Inc.

The company provides IT and business process outsourcing services. The group provides services to industries such as banking and financial services, insurance, manufacturing, telecommunications, retail and transportation.

Biocon Liberal bonus

Biocon rose 4.91% to Rs 529.65 at 10:45 IST on BSE after its board recommended bonus issue in the ratio of 1:1.

It also announced its Q4 results today.

The stock hit a high of Rs 551.50 and a low of Rs 494.85 so far during the day. The stock had a 52-week high of Rs 663.30 on 15 November 2007 and a 52-week low of Rs 345 on 22 January 2008.

From its recent low of Rs 429.10 on 8 April 2008 stock rose 17.65% to Rs 504.85 on 21 April 2008.

The company’s current equity is Rs 50 crore. Face value per share is Rs 5.

The current price of Rs 529.65 discounts its Q3 December 2007 annualised EPS of Rs 113.61, by a PE multiple of 4.66.

The company’s net profit rose 31.19% to Rs 62.03 crore on 1.96% decline in total income to Rs 236.71 crore in Q4 March 2008 over Q4 March 2007.

Biocon is India's leading biotechnology enterprise. Over the past 28 years, it has evolved from an enzyme manufacturing company to a fully integrated biopharmaceutical enterprise, focused on healthcare.

Geometric hardens after property sale

Geometric gained 1.62% to Rs 65.70 at 10:32 IST on BSE after the company said it has sold one of its properties located in Pune, for Rs 29.50 crore.

The stock hit a high of Rs 67.45 and a low of Rs 65.05 so far during the day. The stock had a 52-week high of Rs 133 on 22 May 2007 and a 52-week low of Rs 42 on 24 March 2008.

The company’s current equity is Rs 12.42 crore. Face value per share is Rs 2.

The current price of Rs 65.70 discounts its Q4 March 2008 EPS of Rs 3.75, by a PE multiple of 17.52.

Geometric’s net profit rose 290.60% to Rs 5.82 crore on 3.95% growth in net sales to Rs 45.76 crore in Q4 March 2008 over Q3 December 2007.

The company's principal activity is to provide innovative software services and products.

Smooth sailing for SCI on bonus buzz

Shipping Corporation of India rose 9.75% to Rs 242.35 at 15:17 IST on BSE on reports the company may consider a bonus issue in the near future.

The stock hit a high of Rs 248 and a low of Rs 227 so far during the day. The stock had a 52-week high of Rs 332 on 3 January 2008 and a 52-week low of Rs 154 on 22 January 2008.

The company’s current equity is Rs 282.3 crore. Face value per share is Rs 10.

The current price of Rs 242.35 discounts Q3 December 2007 annualised EPS of Rs 25.05 by a PE multiple of 9.67.

Shipping Corporation of India (SCI)’s net profit declined 22% to Rs 176.78 on 11.5% fall in net sales to Rs 915.27 crore in Q3 December 2007 over Q3 December 2006.

Reports claimed bonus proposal could be linked with the proposal of Shipping Corporation of India (SCI) seeking ‘Navratna’ status, which is likely to be taken up over the next few days. Navratna status would provide SCI with greater autonomy in financial and operational decisions, while allowing it to set up joint ventures internationally relatively faster. SCI, had surplus and reserves of Rs 4,817.14 crore as on 31 March 2007 reports added.

SCI, a state-run shipping company, operates and manages a fleet of line vessels, tankers, bulk carriers, passenger vessels and off shore vessels.

Axis Bank Strong Q4 result

Axis Bank rose 5% to Rs 866 at 14:36 IST on BSE after bank’s net profit rose 70.56% to Rs 361.4 crore on 56.57% rise in total income to Rs 2571.9 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 868.70 and a low of Rs 799 so far during the day. The stock had a 52-week high of Rs 1,291 on 15 January 2008 and a 52-week low of Rs 438.60 on 30 April 2007.

The bank's current equity is Rs 357.71 crore. Face value per share is Rs 10.

The current price of Rs 866 discounts Q3 December 2007 annualised EPS of Rs 34.34 by a PE multiple of 25.21.

The bank’s net profit rose 62.51% to Rs 1071.03 crore on 60.84% rise in total income to Rs 8800.8 crore in FY 2008 over FY 2007.

Axis Bank provides commercial banking services, which include merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.

MIRC Electronics 10% upper circuit

MIRC Electronics hit 10% upper circuit at Rs 19.80 at 14:09 IST on BSE on reports chairman Gulu Mirchandani has agreeed to buy his dissenting brother Sonu Mirchandani’s one-third stake in investment firm Guviso, for Rs 111 crore.

The stock hit a high of Rs 19.80 and a low of Rs 18.60 so far during the day. The stock had a 52-week high of Rs 41.85 on 2 January 2008 and a 52-week low of Rs 15.50 on 24 March 2008.

The company’s current equity is Rs 14.2 crore. Face value per share is Rs 1.

The current price of Rs 19.80 discounts Q3 December 2007 annualised EPS of Rs 2.5 by a PE multiple of 7.92.

Gulu will buy the 33.3% stake held by Sonu’s wife for about Rs 110 crore. The proposed deal will increase Gulu’s stake in the holding entity Guvisco from 27.77% to 61.07 %. Guvisco owns a 52.74% stake in MIRC, which manufactures the Onida brand of consumer goods. Onida has a share of 8-10% in the Rs 14,000-crore colour television market, which is growing at 10% every year.

The Mirchandanis’ brother-in-law, Vijay Mansukhani, will retain his 33% stake in Guvisco. Mansukhani was made managing director of the company last year, while Gulu retained the chairman’s post.

This caps the months-long dispute between the brothers over Sonu’s decision to exit and sell his stake to outsiders. Sonu was reportedly in talks with Videocon Industries and Future Group, amongs others, to sell his stake. Videocon had shown interest in the deal on condition that the promoters settle their internal differences.

The trigger for the dispute among siblings was Gulu’s decision to put his son Kaval in charge of the company’s plasma and LCD business without consulting Sonu reports added.

Banco Products in reverse gear on deferring buy back proposal

Banco Products India declined 7.49% to Rs 35.80 at 12:43 IST on BSE after its board decided to defer proposal for buy back of equity shares.

The stock hit a high of Rs 38.05 and a low of Rs 35 so far during the day. The stock had a 52-week high of Rs 51.70 on 3 January 2008 and a 52-week low of Rs 24.99 on 3 September 2007.

The company’s current equity is Rs 14.2 crore. Face value per share is Rs 2.

The current price of Rs 35.80 discounts its Q3 December 2007 annualised EPS of Rs 6.96, by a PE multiple of 5.14.

Banco Product India’s net profit rose 98.4% to Rs 12.36 crore on 20.8% growth in net sales to Rs 80.14 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling automobile ancillaries. It manufactures gaskets and radiators, which are used in sealing and cooling applications in automotive and industrial engines.

Satyam Computers good Q4 numbers

Satyam Computer Services rose 1.71% to Rs 476.95 at 10:52 IST on BSE after reporting net profit rise of 17.84% to Rs 468.45 crore on growth in total income of 31.45% to Rs 2337.84 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 488 and a low of Rs 473.50 so far during the day. The stock had a 52-week high of Rs 522.30 on 24 July 2007 and a 52-week low of Rs 305 on 22 January 2008.

The company’s current equity is Rs 134.12 crore. Face value per share is Rs 2.

The current price of Rs 476.95 discounts its Q3 December 2007 EPS of Rs 26.35, by a PE multiple of 18.1.

The company’s net profit rose 20.55% to Rs 1715.74 crore on 30.95% rise in total income to Rs 8394.48 crore in FY 2008 over FY 2007.

For FY 2009, under US GAAP, revenue is expected to rise between 24.0% to 26.0% to $2.65 billion and $ 2.69 billion in FY 2009 over FY 2008. Basic earning per American depository share (ADS) is expected to rise by 15.2% - 17.6% to $ 1.44 and $ 1.47, in FY 2009 over FY 2008, Satyam said.

Under Indian GAAP consolidated revenue is expected to rise by 23.9% and 25.9% to Rs 10,500 crore and Rs 10,670 crore, in FY 2009 over FY 2008. Earning per share (EPS) is expected to rise by 17% to 19%. To Rs 29.54 to Rs 30.04, in FY 2009 over FY 2008.

The company recommended a total dividend of 175% (Rs 3.50 per share on par value of Rs 2 per share), including interim dividend of 50% (Re 1 per share on par value of Rs 2 per share) for FY 2008.

The company provides information technology services, Internet services and develops software products.

SRF gains on buy back proposal

SRF gained 3.60% of Rs 133.80 at 9:55 IST on BSE after the company said on Thursday, 17 April 2008, it has scheduled a board meet on 25 April 2008 to consider buy back of equity shares.

The stock hit a high of Rs 134.90 and a low of Rs 131.50 so far during the day. The stock had a 52-week high of Rs 207.40 on 4 January 2008 and a 52-week low of Rs 90.50 on 24 March 2008.

The company’s current equity is Rs 67.89 crore. Face value per share is Rs 10.

The current price of Rs 133.80 discounts its Q3 December 2007 EPS of Rs 20.20, by a PE multiple of 6.62.

SRF’s net profit declined 51.1% to Rs 34.28 crore on 9.2% fall in net sales to Rs 408.81 crore in Q3 December 2007 over Q3 December 2006.

SRF is engaged in manufacturing nylon tyre cord fabric, industrial yarns, polyester films, belting and coated fabric, refrigerant gases and chloromethanes.

Post Market Commentary-21-April-08

Rally spills over to fifth consecutive trading session

The Indian stock market mirrored gains in global counterparts to posts decent rise, shrugging off a steep 50 basis points hike in cash reserve ratio (CRR) announced by the Reserve Bank of India late on Thursday, 17 April 2008. The market was closed on Friday, 18 April 2008, for a public holiday. With today’s gains, the market has now advanced for fifth straight day.

The unscheduled CRR rate hike comes ahead of RBI's annual credit policy for 2008-09 to be unveiled on 29 April 2008. The RBI joined the government in battling the skyrocketing inflation. The wholesale price index rose 7.14% in the 12 months to 5 April 2008, as per latest data. This was slower than the previous week's annual rise of 7.41%.

CRR is the amount of money banks have to keep with RBI as a percentage of their liabilities (deposits). CRR hike will be introduced in two stages. In the first stage, RBI will raise CRR by 25 basis points to 7.75% on 26 April 2008. Another 25 basis point hike will come into effect from 10 May 2008. As a result of the increase in CRR, about Rs 18,500 crore of' banks resources would be taken out of the system.

Asian markets, which opened before Indian markets, surged on hopes the worst was over for the banking sector, following the top US lender Citigroup’s announcement of a quarterly loss of $5.1 billion and plans to cut another 9,000 jobs.

The 30-share BSE Sensex was up 258.13 points or 1.57% at 16,739.33.

S&P CNX Nifty was up 78.60 points or 1.59% at 5,037

The market breadth was strong. Metal shares staged a strong comeback after the recent correction. Banking shares rose taking the hike in CRR in their stride. However IT pivotals retracted from day’s high hit in early trade on profit booking. They had logged handsome gains last week buoyed by encouraging guidance from IT bellwether Infosys Technoligies.

Sasken Communication Technology surged 32.62% to Rs 190.90 after its board approved a proposal for buyback of shares from open market at a price not exceeding Rs 260 per share for an aggregate amount of Rs 40 crore. The company made this announcement on Saturday, 19 April 2008.

short-selling, that is selling a stock that you do not own, and making profit when the price falls, will be allowed from today, 21 April 2008, following a new set of guidelines and procedures, for both institutional and retail investors. The new system provides for borrowing shares for a seven-day period and using them to settle the sale of shares within a T+2 (trading day + two days) deadline.

Initially, short-selling will be permitted only in 227 stocks that are also traded in the futures and options segment, where deals can be entered into for making transactions at a future date. Later, the stock exchanges may decide to extend short-selling to a larger universe of stocks.

Asit C Mehta initiates 'buy' on Asian Paints

16 Apr, 2008, 1816 hrs IST, INDIATIMES NEWS NETWORK

Asit C Mehta Investment Intermediates has initiated 'buy' on Asian Paints for target price of Rs 1,419 (implying a forward P/E multiple of 23x) on account of robust domestic demand for decorative paints. The brokerage expects the company to register a 3-year EPS CAGR of 28.2 per cent till FY10E. At CMP of Rs 1,200 the stock is trading at 25.0 times FY09E & 19.5 times FY10E earnings per share.

The company’s revenue is expected to grow at a CAGR of 18.5 per cent from Rs. 3,978.1 crore in FY07 to Rs. 6,627.04 crore in FY10E, mainly due to capactiy addition and better realisations.

In FY08E, the company was able to pass on the increase in the raw material cost which helped the company to sustain in its raw material cost as a percentage to net sale. Further, the increase in volume led to economies of scale resulting in better operating margins. Asian Paints’ net profit margins are in line with EBIDTA margins and are expected to grow at a 28.2 per cent CAGR from Rs 281.03 crore in FY07 to Rs. 591.64 crore in FY10E Hence EPS is expected to grow at a CAGR of 28.2 per cent from Rs 29.30 in FY07 to Rs. 61.7 in FY10E.

The paint industry is divided into organized and unorganized sector. The unorganized segment plays a huge role in decorative paint segment due to low technical know-how and highly scattered market. The organized segment constitutes 54 per cent of the total volume and 65 per cent of value of paints industry. Again the whole paints industry can be classified into decorative (75% of total industry size) and industrial paints (25% of total industry size).

The Indian Paint Industry grew by 18 per cent from Rs 9,500 crore in FY06 to Rs 11,200 crore in FY07. The industry has a positive correlation with GDP as both have same drivers for growth. Demand for paints is both, derived as well as direct. The demand for decorative paints is a direct demand whereas the demand for industrial paints is a derived demand.

Indian climatic conditions are not conducive for foreign formulations and modification cost in product formulation is quite high. As a result, imports are no threat to the Indian players. In case of industrial paints, most of the major players in the industry already have a tie-up with global players, for latest technology and markets accessible to them. It negates the further supply from the international markets even after reduction of import duty from 40 per cent to 15.3 per cent in last 8 years.

The paint industry is raw material intensive industry. It takes around 300 different raw materials to make paint, most of which are petroleum based. Titanium Dioxide is the largest consumed raw material for manufacture of paints. It constitutes around 30% of the total manufacturing cost. Besides Titanium Dioxide, there are other petroleum based raw materials which constitute 40-50 per cent of total raw material consumed. Hence any movement in crude oil prices will impact the profitability of the company.