DCM Shriram Consolidated rose 2.24% to Rs 63.90 on BSE,on -Oct-09, after net profit surged 95.6% to Rs 13.93 crore in Q2 September 2009 over Q2 September 2008.
The stock hit a high of Rs 66 and a low of Rs 63.55 so far during the day. The stock had hit a 52-week high of Rs 71 on 13 August 2009 and a 52-week low of Rs 20.80 on 4 March 2009.
The company's equity capital is Rs 33.18 crore. Face value per share is Rs 2.
The current price of Rs 63.95 discounts the company's Q2 September 2009 annualized EPS of Rs 3.34, by a PE multiple of 19.15.
DCM Shriram Consolidated's total income declined 13.5% to Rs 839.07 crore in Q2 September 2009 over Q2 September 2008. The company announced the results after market hours on Thursday, 22 October 2009.
The company's net profit advanced on the back of 81.03% spurt in other income to Rs 8.40 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in manufacturing fertilisers, plastics, chemicals, agri inputs trading, sugar and cement.
Sunday, October 25, 2009
Ponni Sugars moves north after robust quarterly earnings
Ponni Sugars (Erode) jumped 7.49% to Rs 107.65 on BSE, after net profit galloped 235.48% to Rs 10.40 crore in Q2 September 2009 over Q2 September 2008.
The stock hit a high of Rs 108 so far during the day, which is 52-week high for the counter. The stock hit a low of Rs 101.15 so far during the day. The stock had hit a 52-week low of Rs 19.75 on 28 November 2008.
The company's equity capital is Rs 8.60 crore. Face value per share is Rs 10.
The current price of Rs 107.65 discounts the company's Q1 June 2009 annualized EPS of Rs 20.74, by a PE multiple of 5.19.
Ponni Sugars (Erode)'s total income surged 44.36% to Rs 48.52 crore in Q2 September 2009 over Q2 September 2008. The company declared its results during trading hours today, 23 October 2009.
The company manufactures cane sugar, cane molasses and bagasse. The company operates in a single segment of sugar and its by products.
The stock hit a high of Rs 108 so far during the day, which is 52-week high for the counter. The stock hit a low of Rs 101.15 so far during the day. The stock had hit a 52-week low of Rs 19.75 on 28 November 2008.
The company's equity capital is Rs 8.60 crore. Face value per share is Rs 10.
The current price of Rs 107.65 discounts the company's Q1 June 2009 annualized EPS of Rs 20.74, by a PE multiple of 5.19.
Ponni Sugars (Erode)'s total income surged 44.36% to Rs 48.52 crore in Q2 September 2009 over Q2 September 2008. The company declared its results during trading hours today, 23 October 2009.
The company manufactures cane sugar, cane molasses and bagasse. The company operates in a single segment of sugar and its by products.
NRB Bearings on a roll after solid Q2 results
NRB Bearings spurted 6% to Rs 61.45 at 15:12 IST after net profit surged 325.8% to Rs 3.79 crore on a 4.5% decline in sales to Rs 78.93 crore in Q2 September 2009 over Q2 September 2008.
The results were announced during trading hours today, 23 October 2009.
The small-cap ball bearing maker has an equity capital of Rs 9.69 crore. Face value per share is Rs 2.
The current price of Rs 61.45 discounts the company's Q1 June 2009 annualised EPS of Rs 3.89, by a PE multiple of 15.79.
NRB Bearings manufactures a wide range of needle rollers, needle bushes, needle cages, needle bearings and tapered roller bearings.
The results were announced during trading hours today, 23 October 2009.
The small-cap ball bearing maker has an equity capital of Rs 9.69 crore. Face value per share is Rs 2.
The current price of Rs 61.45 discounts the company's Q1 June 2009 annualised EPS of Rs 3.89, by a PE multiple of 15.79.
NRB Bearings manufactures a wide range of needle rollers, needle bushes, needle cages, needle bearings and tapered roller bearings.
3M India Ltd. (3MI) (CMP: Rs. 1735.5)
3M India Ltd. (3MI) (CMP: Rs. 1735.5)on 21-oct-09
(Long Term Buy - Accumulate in the Rs. 1600-1850 band)
3M India Ltd. (3MI), a 76% subsidiary of Minnesota Mining and Manufacturing Company (USA), is a diversified technology company. The company started its operations in India as ‘Birla 3M' in 1988. Later, in 2002, it was rechristened '3M India Ltd'.
We think that long-term investors could accumulate the stock in the price band of Rs. 1600-1850. While we have made an attempt to forecast the earnings for the company, a better than expected topline / bottomline achievement and / or greater visibility on earnings or corporate development could result in a rise in its share price. We feel that the stock has the potential to trade at atleast 2829xCY10E EPS, which gives a price target of Rs. 2094-2169 in the next two to three quarters.
HDsec
(Long Term Buy - Accumulate in the Rs. 1600-1850 band)
3M India Ltd. (3MI), a 76% subsidiary of Minnesota Mining and Manufacturing Company (USA), is a diversified technology company. The company started its operations in India as ‘Birla 3M' in 1988. Later, in 2002, it was rechristened '3M India Ltd'.
We think that long-term investors could accumulate the stock in the price band of Rs. 1600-1850. While we have made an attempt to forecast the earnings for the company, a better than expected topline / bottomline achievement and / or greater visibility on earnings or corporate development could result in a rise in its share price. We feel that the stock has the potential to trade at atleast 2829xCY10E EPS, which gives a price target of Rs. 2094-2169 in the next two to three quarters.
HDsec
Monthly inflation report:
Currently, inflation is reported every week based on the Wholesale Price Index (WPI). The base year (reference) of the current WPI numbers is 1993-94 .
The integrity of inflation data and its coverage has been in question since the last few quarters. The government has recently cleared a proposal to shift to a monthly WPI series with a much wider coverage than the current WPI index.
The base year of the new WPI index will be 2004-05 and it will cover over 1,200 commodities . It is expected to deliver inflation numbers closer to ground reality.
The integrity of inflation data and its coverage has been in question since the last few quarters. The government has recently cleared a proposal to shift to a monthly WPI series with a much wider coverage than the current WPI index.
The base year of the new WPI index will be 2004-05 and it will cover over 1,200 commodities . It is expected to deliver inflation numbers closer to ground reality.
Investors trust cos where promoters sell stakes
Investors in Indian equity markets have remained bullish on companies where promoters reduced their stake, a trend totally different from the global scenario.
Companies which witnessed sizable selling of promoters’ stake are Unitech, Sobha Developers, Housing Development & Infrastructure and Bombay Rayon Fashions. In Unitech, promoters’ holding came down to 44% in the quarter ending September 2009 from 67% at the end of December quarter 2008. Similarly, in Sobha Developers
, promoters’ holding fell to 65% from 87%. Housing Development & Infrastructure also saw its promoters’ holding coming down to 48% from 62% during the same period.
On the other hand, major buying by promoters took place in companies such as Pfizer, Indo Tech Transformers, Dish TV India and Sesa Goa. In Pfizer, promoters’ holding went up from 41% to 71% between quarter ending December 2008 and September 2009. Promoters of Indo Tech Transformers increased their holdings from 54% to 74%, whereas in Sesa Goa, it increased from 51% to 57% during the same period.
Companies which witnessed sizable selling of promoters’ stake are Unitech, Sobha Developers, Housing Development & Infrastructure and Bombay Rayon Fashions. In Unitech, promoters’ holding came down to 44% in the quarter ending September 2009 from 67% at the end of December quarter 2008. Similarly, in Sobha Developers
, promoters’ holding fell to 65% from 87%. Housing Development & Infrastructure also saw its promoters’ holding coming down to 48% from 62% during the same period.
On the other hand, major buying by promoters took place in companies such as Pfizer, Indo Tech Transformers, Dish TV India and Sesa Goa. In Pfizer, promoters’ holding went up from 41% to 71% between quarter ending December 2008 and September 2009. Promoters of Indo Tech Transformers increased their holdings from 54% to 74%, whereas in Sesa Goa, it increased from 51% to 57% during the same period.
Thursday, October 15, 2009
5 mid-cap stocks: middle path to prosperity-DEEWALI GIFT
16 Oct 2009, 0425 hrs IST
ET Bureau It’s that time of the year again when many investors rejig their portfolio and take position on their favourite stocks. With most of the blue chips having turned expensive, the only option for most investors is the mid-cap sector.
We at ET Intelligence Group bring you a list of 5 mid-cap stocks that could make your next Diwali brighter. But, as always, make sure you’ve done the due diligence before placing your bets on these.
Tata Teleservices (Maharashtra) Ltd (CMP=32.6)
TTML, which has recently joined hands with Japan’s NTT Docomo, is the Rs 2,000-crore Tata Group company that provides telecom services in the circles of Mumbai and Maharashtra, including Goa. TTML has reported net loss in each of the past six years. However, the picture is likely to change soon.
The company is aggressively adding new subscribers and has topped the 10-million mark, following its innovative pricing methods. Higher users would improve network efficiency, thereby reducing cost per user. The company has undertaken necessary capex in the last few years.
TTML has reduced the level of net loss in the last three quarters. It is likely to post quarterly profit by the March 2010 quarter.
Indian Hotels Company Ltd (CMP=80)
Indian Hotels (IHCL), which has underperformed the markets, is currently trading below its book value. This appears pretty cheap as it has always traded between 1.4 and 5 times the book value in the last five years. The last few bad quarters indicate that the scrip is trading 28 times its past 12 months earnings.
The hospitality industry is now going through a tough phase. However, being the industry leader, IHCL could well be the first one to move up once the tide turns. The Commonwealth Games being held in Delhi next year can be one major trigger for the industry, apart from the global economic revival.
Supreme Industries Ltd (CMP=362)
Supreme Industries, India’s leading plastic goods manufacturers, has always enjoyed a healthy history of profit growth, cashflows and dividends. Its decision to exit unprofitable businesses, coupled with rising domestic demand for plastics and a likely glut situation in polymers, are likely to keep its profit growth strong in the coming quarters.
At the same time, the company has constructed a commercial complex at Andheri with 2.5-lakh square feet of saleable area at a cost of Rs 115 crore. The sale proceeds from this property will boost the company’s bottomline for the next few quarters. The scrip at Rs 363 values the company just 8.6 times its earnings for trailing 12 months, much cheaper compared to its peers.
IndusInd Bank Ltd (CMP=124)
IndusInd Bank has made a huge turnaround in the past one year, reporting a dramatic improvement on key parameters such as non-performing assets (NPAs), net interest margin (NIM) and business per employee. Its gross NPAs or bad loans as a percentage to gross advances have halved in the quarter ended September 2009 against the year-ago period, with NIM rising to 2.86% from 1.68%.
The bank has cleaned up its balance sheet and has more than doubled its profit in the September quarter. The next growth driver will be expansion of its loan book beating the industry growth and continued improvement in its NIM, which can transform it into one of the fastest growing banks.
Dalmia Cement (Bharat) Ltd. (CMP=170)
Dalmia Cement (Bharat) (DCBL) is aggressively expanding its cement capacity and is shortly bringing on stream 38% additional cement capacity, taking its total capacity to 9 million tonnes. It is also well positioned in the booming sugar business with a combined capacity of 22,500 TCD (tonnes of cane per day) at three locations in UP. These two businesses should help the company grow its net sales aggressively in the next two years.
In the past four years, the company has quadrupled its revenues and is expected to maintain its growth trajectory in the next few years. Dalmia Cements recently announced plans to raise nearly Rs 3,000 crore to fund its expansion plans. The company plans to add a further 10 million tonnes capacity across the country in a phased manner over the next three years. At Rs 169.3, Dalmia Cement (Bharat) trades at a P/E of 8.2 and looks cheap.
Via:E.T
ET Bureau It’s that time of the year again when many investors rejig their portfolio and take position on their favourite stocks. With most of the blue chips having turned expensive, the only option for most investors is the mid-cap sector.
We at ET Intelligence Group bring you a list of 5 mid-cap stocks that could make your next Diwali brighter. But, as always, make sure you’ve done the due diligence before placing your bets on these.
Tata Teleservices (Maharashtra) Ltd (CMP=32.6)
TTML, which has recently joined hands with Japan’s NTT Docomo, is the Rs 2,000-crore Tata Group company that provides telecom services in the circles of Mumbai and Maharashtra, including Goa. TTML has reported net loss in each of the past six years. However, the picture is likely to change soon.
The company is aggressively adding new subscribers and has topped the 10-million mark, following its innovative pricing methods. Higher users would improve network efficiency, thereby reducing cost per user. The company has undertaken necessary capex in the last few years.
TTML has reduced the level of net loss in the last three quarters. It is likely to post quarterly profit by the March 2010 quarter.
Indian Hotels Company Ltd (CMP=80)
Indian Hotels (IHCL), which has underperformed the markets, is currently trading below its book value. This appears pretty cheap as it has always traded between 1.4 and 5 times the book value in the last five years. The last few bad quarters indicate that the scrip is trading 28 times its past 12 months earnings.
The hospitality industry is now going through a tough phase. However, being the industry leader, IHCL could well be the first one to move up once the tide turns. The Commonwealth Games being held in Delhi next year can be one major trigger for the industry, apart from the global economic revival.
Supreme Industries Ltd (CMP=362)
Supreme Industries, India’s leading plastic goods manufacturers, has always enjoyed a healthy history of profit growth, cashflows and dividends. Its decision to exit unprofitable businesses, coupled with rising domestic demand for plastics and a likely glut situation in polymers, are likely to keep its profit growth strong in the coming quarters.
At the same time, the company has constructed a commercial complex at Andheri with 2.5-lakh square feet of saleable area at a cost of Rs 115 crore. The sale proceeds from this property will boost the company’s bottomline for the next few quarters. The scrip at Rs 363 values the company just 8.6 times its earnings for trailing 12 months, much cheaper compared to its peers.
IndusInd Bank Ltd (CMP=124)
IndusInd Bank has made a huge turnaround in the past one year, reporting a dramatic improvement on key parameters such as non-performing assets (NPAs), net interest margin (NIM) and business per employee. Its gross NPAs or bad loans as a percentage to gross advances have halved in the quarter ended September 2009 against the year-ago period, with NIM rising to 2.86% from 1.68%.
The bank has cleaned up its balance sheet and has more than doubled its profit in the September quarter. The next growth driver will be expansion of its loan book beating the industry growth and continued improvement in its NIM, which can transform it into one of the fastest growing banks.
Dalmia Cement (Bharat) Ltd. (CMP=170)
Dalmia Cement (Bharat) (DCBL) is aggressively expanding its cement capacity and is shortly bringing on stream 38% additional cement capacity, taking its total capacity to 9 million tonnes. It is also well positioned in the booming sugar business with a combined capacity of 22,500 TCD (tonnes of cane per day) at three locations in UP. These two businesses should help the company grow its net sales aggressively in the next two years.
In the past four years, the company has quadrupled its revenues and is expected to maintain its growth trajectory in the next few years. Dalmia Cements recently announced plans to raise nearly Rs 3,000 crore to fund its expansion plans. The company plans to add a further 10 million tonnes capacity across the country in a phased manner over the next three years. At Rs 169.3, Dalmia Cement (Bharat) trades at a P/E of 8.2 and looks cheap.
Via:E.T
Tuesday, October 13, 2009
EID Parry scrip seen playing catch-up
14 Oct 2009, 0124 hrs IST, Shikha Sharma, ET Bureau
Eid Parry (India), part of the $3.14-bn Murugappa Group, saw its stock price move up close to 4% to end at Rs 318 on Monday after hitting an intra-day high of Rs 329.
Although the diversified company generates a significantly large chunk of consolidated revenues from its fertiliser subsidiary, Coromandel Fertiliser, the latest uptick on the scrip is attributed to the acquisition of 76% equity stake in privately-held Sadashiva Sugar (SSL) for a consideration of Rs 50 crore.
With the acquisition of Bangalore-based SSL, its sugar production capacity is expected to grow 15% to around 21,500 tonnes crushed per day (TCD). Assuming the current capacity utilisation at 75% with increased capacity and the ruling price of sugar at Rs 30/kg, EID Parry is likely to grow standalone revenues in the coming quarters. At the consolidated level, however, the business is dominated by its fertiliser subsidiary, which accounted for 92% of the company’s revenues and its entire profits in FY09.
Its standalone turnover for the year ended March 2009 stood at Rs 755 crore compared with Rs 616 crore last year. For the first quarter ended June 2009, it posted 0.8% growth in standalone revenues to Rs 205 crore and net profit was Rs 26 crore compared with Rs 3 crore during the same quarter last year, due to improved realisation in sugar prices. Sugar is the main business of the company besides co-generation power and distillery.
EID Parry’s operating margin for the June quarter ended 2009 at 29.71% is comparable to its peers in the sugar industry and has improved significantly compared with 11.78% in the corresponding quarter last year. As the industry estimates supply deficit of close to 5 million tonnes of sugar during the sugar season 2009-10, prices may continue to see an upward trend. But availability of sugarcane poses challenge for sugar producers.
Despite the recent run-up in its stock price, the company looks cheaper than its peers. At its current stock price of Rs 318, the stock is trading at a trailing price-earning multiple of close 20x (on a standalone basis) and looks pricey, considering that sugar companies are currently trading at a P/E of around 10x.
However, the market value of EID Parry investment is equivalent to around 70% of its total market capitalisation, which means that either its sugar division is not getting fair valuation, or its investments in fertilisers are being undervalued by the market.
In the current rally, the EID Parry scrip has underperformed its peers. The stock has risen 115% between April 1 and September 30 against 147% rise in the ET Sugar index during the period. So the current move could be seen as the stock playing catch-up.
via:E.T
Eid Parry (India), part of the $3.14-bn Murugappa Group, saw its stock price move up close to 4% to end at Rs 318 on Monday after hitting an intra-day high of Rs 329.
Although the diversified company generates a significantly large chunk of consolidated revenues from its fertiliser subsidiary, Coromandel Fertiliser, the latest uptick on the scrip is attributed to the acquisition of 76% equity stake in privately-held Sadashiva Sugar (SSL) for a consideration of Rs 50 crore.
With the acquisition of Bangalore-based SSL, its sugar production capacity is expected to grow 15% to around 21,500 tonnes crushed per day (TCD). Assuming the current capacity utilisation at 75% with increased capacity and the ruling price of sugar at Rs 30/kg, EID Parry is likely to grow standalone revenues in the coming quarters. At the consolidated level, however, the business is dominated by its fertiliser subsidiary, which accounted for 92% of the company’s revenues and its entire profits in FY09.
Its standalone turnover for the year ended March 2009 stood at Rs 755 crore compared with Rs 616 crore last year. For the first quarter ended June 2009, it posted 0.8% growth in standalone revenues to Rs 205 crore and net profit was Rs 26 crore compared with Rs 3 crore during the same quarter last year, due to improved realisation in sugar prices. Sugar is the main business of the company besides co-generation power and distillery.
EID Parry’s operating margin for the June quarter ended 2009 at 29.71% is comparable to its peers in the sugar industry and has improved significantly compared with 11.78% in the corresponding quarter last year. As the industry estimates supply deficit of close to 5 million tonnes of sugar during the sugar season 2009-10, prices may continue to see an upward trend. But availability of sugarcane poses challenge for sugar producers.
Despite the recent run-up in its stock price, the company looks cheaper than its peers. At its current stock price of Rs 318, the stock is trading at a trailing price-earning multiple of close 20x (on a standalone basis) and looks pricey, considering that sugar companies are currently trading at a P/E of around 10x.
However, the market value of EID Parry investment is equivalent to around 70% of its total market capitalisation, which means that either its sugar division is not getting fair valuation, or its investments in fertilisers are being undervalued by the market.
In the current rally, the EID Parry scrip has underperformed its peers. The stock has risen 115% between April 1 and September 30 against 147% rise in the ET Sugar index during the period. So the current move could be seen as the stock playing catch-up.
via:E.T
Sunday, October 11, 2009
KG basin gas row
KG basin gas row
What is the Krishna-Godavari (KG) basin?
As the name implies, this refers to the area broadly enclosed by the deltaic basins of the two major rivers in Andhra Pradesh Krishna and Godavari. It includes part of the Bay of Bengal into which these rivers drain.
The area has been identified as one of India's biggest oil and gas fields, several times the size of Bombay High.
Onland, the KG basin has an area of about 28,000 sq km, while the offshore area is estimated at 21,000 sq km till a depth of 200m and another 18,000 sq km between 200m and 3000m.
KG basin controversies
How is Reliance Industries involved in the KG basin?
Under the government's New Exploration and Licensing Policy (NELP), various blocks in identified oil and gas fields were offered to private operators on lease for exploration and production. RIL won the bids for 12 such blocks in the KG basin in 2000.
Under the NELP, private operators sign a production sharing contract (PSC) with the government, which sets out the terms and conditions under which they operate their lease, including the share of revenues that would accrue to the government.
The PSC for block D6, which is at the heart of the current controversy, was signed between RIL, the government and Niko, which is partnering RIL, in April 2000.
Ambani group broke up in 2005
How is the Anil Ambani group involved?
When the Reliance group was still a unified entity with both brothers sharing management responsibilities, RIL had announced in 2003 that group company Reliance Energy Ltd (REL) would be setting up a gas-based power plant at Dadri in western Uttar Pradesh for which gas would supplied from RIL's KG basin production.
In 2005, however, the group broke up with each brother acquiring control of different business areas. While the oil and gas business went to elder brother Mukesh, Anil had control of the power business.
As part of the division of the group, RIL was demerged and Reliance Natural Resources LTD (RNRL) was formed to act as a conduit for the gas from the KG basin to REL.
All RIL shareholders were made RNRL shareholders, except that Mukesh's holding in the parent company was substituted by Anil in the new firm. Thus, RNRL was part of the Anil Dhirubhai Ambani group (ADAG).
MoU singed between RNRL-RIL in 2005
What is the MoU often referred to?
In 2005, RNRL and RIL signed a memorandum of understanding (MoU) on the terms under which gas would be supplied for the Dadri project . This MoU specified that the price at which the gas would be supplied would be the same as the price at which RIL would supply gas to an NTPC project. NTPC had invited global bids for supply of gas in 2003 and RIL finally won the bid and was issued a letter of intent by NTPC in June 2004.
The price quoted by RIL in its bid was $2.34 per mmbtu (million metric British thermal units). So what’s the dispute about? RIL argues that the $2.34 per unit price is not applicable to its deal with RNRL for various reasons. First, gas prices had since the 2005 MOU risen sharply.
Second, it has not concluded a deal with NTPC on that price, since it had some issues pertaining to damages it would have to pay in case of failure to supply the agreed quantity of gas. Hence, it says, there is no NTPC price to be followed as per the MOU with RNRL. Third, it says under the PSC signed with the government, the government has the final say on the price at which it can sell gas to third parties and in fact can even dictate to whom the gas should be sold.
RNRL contests each of these claims. It argues that international gas prices have historically been much higher than Indian prices and so that can't be a benchmark . Further, the bid price for the NTPC project must be followed under the MOU irrespective of whether or not RIL and NTPC have finalized their deal. Finally, it maintains that the government only has the right under the PSC to fix the price at which gas will be valued for the purpose of determining the government's share of revenues from the project. RIL, it insists , is free to sell its share of the gas at whatever price it decides.
RNRL-RIL gas row
Where did the price of $4.2 per unit come from?
In May 2007, RIL invited bids from various gas users like power and fertilizer companies and on that basis arrived at a price of $4.2 per, which was then approved by the petroleum ministry as a market-determined price.
RNRL alleges that this was an eyewash and an orchestrated auction between small time users and that the ministry has been partisan towards RIL in the whole issue.
Governments involvement in RIL-RNRL gas row!
How did the government get involved?
When, after sustained pressure from RNRL, RIL sought approval of the government for the price of $2.34 per unit, the government refused. It said the price was not marketdetermined and in any case gas was a national asset and its allocation could not be decided by some private agreement between two brothers.
ADAG points out that the ministry's stance in the matter which suits RIL's current position — has been a feature since Murli Deora became the petroleum minister in 2006.
How are courts involved? Following RIL's refusal to supply gas at the terms specified in the MOU with RNRL, the Anil group company went to the Bombay HC seeking an order to RIL to follow the terms of the MOU.
The Bombay HC finally in June this year passed an order that RIL must renegotiate a deal with RNRL that would make suitable arrangements for supply of gas. It also added that the basis for such an arrangement must be the scheme of demerger agreed between the brothers in 2005.
RNRL has now gone to the Supreme Court seeking a direction from the apex court that the HC order on renegotiation should be set aside and RIL should be asked to supply gas under the terms of the MoU.
via: E.T
What is the Krishna-Godavari (KG) basin?
As the name implies, this refers to the area broadly enclosed by the deltaic basins of the two major rivers in Andhra Pradesh Krishna and Godavari. It includes part of the Bay of Bengal into which these rivers drain.
The area has been identified as one of India's biggest oil and gas fields, several times the size of Bombay High.
Onland, the KG basin has an area of about 28,000 sq km, while the offshore area is estimated at 21,000 sq km till a depth of 200m and another 18,000 sq km between 200m and 3000m.
KG basin controversies
How is Reliance Industries involved in the KG basin?
Under the government's New Exploration and Licensing Policy (NELP), various blocks in identified oil and gas fields were offered to private operators on lease for exploration and production. RIL won the bids for 12 such blocks in the KG basin in 2000.
Under the NELP, private operators sign a production sharing contract (PSC) with the government, which sets out the terms and conditions under which they operate their lease, including the share of revenues that would accrue to the government.
The PSC for block D6, which is at the heart of the current controversy, was signed between RIL, the government and Niko, which is partnering RIL, in April 2000.
Ambani group broke up in 2005
How is the Anil Ambani group involved?
When the Reliance group was still a unified entity with both brothers sharing management responsibilities, RIL had announced in 2003 that group company Reliance Energy Ltd (REL) would be setting up a gas-based power plant at Dadri in western Uttar Pradesh for which gas would supplied from RIL's KG basin production.
In 2005, however, the group broke up with each brother acquiring control of different business areas. While the oil and gas business went to elder brother Mukesh, Anil had control of the power business.
As part of the division of the group, RIL was demerged and Reliance Natural Resources LTD (RNRL) was formed to act as a conduit for the gas from the KG basin to REL.
All RIL shareholders were made RNRL shareholders, except that Mukesh's holding in the parent company was substituted by Anil in the new firm. Thus, RNRL was part of the Anil Dhirubhai Ambani group (ADAG).
MoU singed between RNRL-RIL in 2005
What is the MoU often referred to?
In 2005, RNRL and RIL signed a memorandum of understanding (MoU) on the terms under which gas would be supplied for the Dadri project . This MoU specified that the price at which the gas would be supplied would be the same as the price at which RIL would supply gas to an NTPC project. NTPC had invited global bids for supply of gas in 2003 and RIL finally won the bid and was issued a letter of intent by NTPC in June 2004.
The price quoted by RIL in its bid was $2.34 per mmbtu (million metric British thermal units). So what’s the dispute about? RIL argues that the $2.34 per unit price is not applicable to its deal with RNRL for various reasons. First, gas prices had since the 2005 MOU risen sharply.
Second, it has not concluded a deal with NTPC on that price, since it had some issues pertaining to damages it would have to pay in case of failure to supply the agreed quantity of gas. Hence, it says, there is no NTPC price to be followed as per the MOU with RNRL. Third, it says under the PSC signed with the government, the government has the final say on the price at which it can sell gas to third parties and in fact can even dictate to whom the gas should be sold.
RNRL contests each of these claims. It argues that international gas prices have historically been much higher than Indian prices and so that can't be a benchmark . Further, the bid price for the NTPC project must be followed under the MOU irrespective of whether or not RIL and NTPC have finalized their deal. Finally, it maintains that the government only has the right under the PSC to fix the price at which gas will be valued for the purpose of determining the government's share of revenues from the project. RIL, it insists , is free to sell its share of the gas at whatever price it decides.
RNRL-RIL gas row
Where did the price of $4.2 per unit come from?
In May 2007, RIL invited bids from various gas users like power and fertilizer companies and on that basis arrived at a price of $4.2 per, which was then approved by the petroleum ministry as a market-determined price.
RNRL alleges that this was an eyewash and an orchestrated auction between small time users and that the ministry has been partisan towards RIL in the whole issue.
Governments involvement in RIL-RNRL gas row!
How did the government get involved?
When, after sustained pressure from RNRL, RIL sought approval of the government for the price of $2.34 per unit, the government refused. It said the price was not marketdetermined and in any case gas was a national asset and its allocation could not be decided by some private agreement between two brothers.
ADAG points out that the ministry's stance in the matter which suits RIL's current position — has been a feature since Murli Deora became the petroleum minister in 2006.
How are courts involved? Following RIL's refusal to supply gas at the terms specified in the MOU with RNRL, the Anil group company went to the Bombay HC seeking an order to RIL to follow the terms of the MOU.
The Bombay HC finally in June this year passed an order that RIL must renegotiate a deal with RNRL that would make suitable arrangements for supply of gas. It also added that the basis for such an arrangement must be the scheme of demerger agreed between the brothers in 2005.
RNRL has now gone to the Supreme Court seeking a direction from the apex court that the HC order on renegotiation should be set aside and RIL should be asked to supply gas under the terms of the MoU.
via: E.T
Wednesday, October 7, 2009
RIL to issue bonus shares, ratio 1:1
7 Oct 2009, 2000 hrs IST, PTI
Investors' darling Reliance Industries today announced issue of bonus shares after a 12 year-hiatus, a move that analysts expect would flare up the markets on the eve of Diwali.
The company founded by Dhirubhai Ambani, credited for drawing retail investors to stock markets in the 1970s, recommended an issue of one bonus share for every share held by shareholders and would help unlock value.
The shares fell 1.57 per cent to Rs 2,099 on the Bombay Stock Exchange, but is expected to jump after the unscheduled announcement.
The board has also approved a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, Reliance Industries CFO Alok Agarwal said.
Analysts said that the surprise announcement of a bonus issue by RIL, will definitely act as trigger for the market tomorrow.
"This comes as a big surprise to the shareholders of Reliance Industries and would propel investor sentiment. The scrip, which has been under-performing for the past few days, is likely to open strong. It is a move by RIL to win back ivestor confidence," SMC Global Vice President Rajesh Jain said.
The last time Reliance Industries announced a bonus issue was in October 1997.
"Both the bonus shares and dividend will accrue to the shareholders of RPL," RIL CFO Agarwal said.
Geojit BNP Paribas Financial Services Research Head Alex Mathew said, "The company had last announced a bonus issue way back in 1997, so this is good move in the interest of investors. However, after an initial surge some profit booking may come into the stock later in the day."
The bonus issue could help regain flagging investor confidence in the scrip.
RIL scrip has been on a downslide since October one and has plunged over four per cent to Rs 2,099 today from Rs 2,201 on September 30.
Reliance Power, part of the other Reliance group led by Anil Ambani, had announced a 3:5 bonus issue in February 2008 after its disappointing debut at the bourses.
"The proposal for bonus and dividend continue RIL's tradition of awarding shareholders on a sustained basis. If we look at our track record since we listed in 1978, our shareholders have got 25 per cent compounded return over these 31 years since it became a public company," Agarwal said.
"The announcement can act as a trigger point for the stock (RIL) which was mired in controversy. RIL management is convinced that it can serve the investor interest and so it is thinking about increasing the equity share capital. It can hold up the momentum and the counter can outperform the Sensex in the coming days," Unicon Financial CEO G Nagpal said.
via: E.T
Investors' darling Reliance Industries today announced issue of bonus shares after a 12 year-hiatus, a move that analysts expect would flare up the markets on the eve of Diwali.
The company founded by Dhirubhai Ambani, credited for drawing retail investors to stock markets in the 1970s, recommended an issue of one bonus share for every share held by shareholders and would help unlock value.
The shares fell 1.57 per cent to Rs 2,099 on the Bombay Stock Exchange, but is expected to jump after the unscheduled announcement.
The board has also approved a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, Reliance Industries CFO Alok Agarwal said.
Analysts said that the surprise announcement of a bonus issue by RIL, will definitely act as trigger for the market tomorrow.
"This comes as a big surprise to the shareholders of Reliance Industries and would propel investor sentiment. The scrip, which has been under-performing for the past few days, is likely to open strong. It is a move by RIL to win back ivestor confidence," SMC Global Vice President Rajesh Jain said.
The last time Reliance Industries announced a bonus issue was in October 1997.
"Both the bonus shares and dividend will accrue to the shareholders of RPL," RIL CFO Agarwal said.
Geojit BNP Paribas Financial Services Research Head Alex Mathew said, "The company had last announced a bonus issue way back in 1997, so this is good move in the interest of investors. However, after an initial surge some profit booking may come into the stock later in the day."
The bonus issue could help regain flagging investor confidence in the scrip.
RIL scrip has been on a downslide since October one and has plunged over four per cent to Rs 2,099 today from Rs 2,201 on September 30.
Reliance Power, part of the other Reliance group led by Anil Ambani, had announced a 3:5 bonus issue in February 2008 after its disappointing debut at the bourses.
"The proposal for bonus and dividend continue RIL's tradition of awarding shareholders on a sustained basis. If we look at our track record since we listed in 1978, our shareholders have got 25 per cent compounded return over these 31 years since it became a public company," Agarwal said.
"The announcement can act as a trigger point for the stock (RIL) which was mired in controversy. RIL management is convinced that it can serve the investor interest and so it is thinking about increasing the equity share capital. It can hold up the momentum and the counter can outperform the Sensex in the coming days," Unicon Financial CEO G Nagpal said.
via: E.T
RIL announces bonus bounty
A surprise bonus issue announced by India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) after trading hours may boost the bourses at the onset of the trading session on Thursday, 8 October 2009,
Despite correction in broad market, the market breadth was positive, although it was not as strong as it was in the opening session. Index heavyweight RIL which surprised the street with a liberal 1:1 bonus announcement after market hours.
Despite correction in broad market, the market breadth was positive, although it was not as strong as it was in the opening session. Index heavyweight RIL which surprised the street with a liberal 1:1 bonus announcement after market hours.
Wednesday, September 30, 2009
Bilpower : Hike in promoter stake
Bilpower rose 1.48% to Rs 174.80 at 15:07 IST on BSE, after one of the promoters hiked stake in the firm.
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 175.50 and a low of Rs 171.50 so far during the day. The stock had hit a 52-week high of Rs 194 on 16 September 2009 and a 52-week low of Rs 60 on 5 November 2008.
The company's equity capital is Rs 10.50 crore. Face value per share is Rs 10.
The current price of Rs 174.80 discounts the company's Q1 June 2009 annualized EPS of Rs 17.33, by a PE multiple of 10.09.
Suresh Kumar Choudhary, chairman and a promoter of Bilpower has hiked his stake to 5.31% from 5.29% after acquiring 2,164 shares through open market purchases on 25 September 2009. Increase in stake by promoters in a company helps bolster investor confidence.
Total promoters shareholding in the company is 35.52% (as on 30 June 2009).
Bilpower reported net profit of Rs 4.55 crore in Q1 June 2009 as compared to net loss of Rs 26.30 crore in Q1 June 2008. Net sales rose 17% to Rs 104.47 crore in Q1 June 2009 over Q1 June 2007.
The company is engaged in manufacturing and marketing electrical steel products and other steel products related to transformer industry. The products of the group include electrical lamination, stamping and power transformers. The group's plants are located in Gujarat, Uttaranchal and Maharashtra.
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 175.50 and a low of Rs 171.50 so far during the day. The stock had hit a 52-week high of Rs 194 on 16 September 2009 and a 52-week low of Rs 60 on 5 November 2008.
The company's equity capital is Rs 10.50 crore. Face value per share is Rs 10.
The current price of Rs 174.80 discounts the company's Q1 June 2009 annualized EPS of Rs 17.33, by a PE multiple of 10.09.
Suresh Kumar Choudhary, chairman and a promoter of Bilpower has hiked his stake to 5.31% from 5.29% after acquiring 2,164 shares through open market purchases on 25 September 2009. Increase in stake by promoters in a company helps bolster investor confidence.
Total promoters shareholding in the company is 35.52% (as on 30 June 2009).
Bilpower reported net profit of Rs 4.55 crore in Q1 June 2009 as compared to net loss of Rs 26.30 crore in Q1 June 2008. Net sales rose 17% to Rs 104.47 crore in Q1 June 2009 over Q1 June 2007.
The company is engaged in manufacturing and marketing electrical steel products and other steel products related to transformer industry. The products of the group include electrical lamination, stamping and power transformers. The group's plants are located in Gujarat, Uttaranchal and Maharashtra.
Aksh Optifibre recovers on preferential issue plan
Aksh Optifibre was up 0.41% to Rs 24.60 at 12:47 IST on BSE, off the session's low of Rs 23.70, after the company's board approved raising up to $20 million through issue of shares on preferential basis.
At the day's low of Rs 23.70, the stock declined 3.27% before the company made this announcement during trading hours.
The stock hit a high of Rs 25.30 and a low of Rs 23.70 so far during the day. The stock had hit a 52-week high of Rs 31.05 on 29 September 2008 and a 52-week low of Rs 8.05 on 5 March 2009.
The company's equity capital is Rs 29.48 crore. Face value per share is Rs 5.
The funds would be used for the company's services division comprising of IPTV and VoIP businesses, Aksh Optifibre said.
Aksh Optifibre reported net profit of Rs 6.73 crore in the quarter ended June 2009 as compared to net loss of Rs 4.10 crore in the quarter ended June 2008. Net sales rose 36.1% to Rs 43.19 crore in the quarter ended June 2009 over the quarter ended June 2008.
The company is engaged in manufacturing optical fibre cables in India.
At the day's low of Rs 23.70, the stock declined 3.27% before the company made this announcement during trading hours.
The stock hit a high of Rs 25.30 and a low of Rs 23.70 so far during the day. The stock had hit a 52-week high of Rs 31.05 on 29 September 2008 and a 52-week low of Rs 8.05 on 5 March 2009.
The company's equity capital is Rs 29.48 crore. Face value per share is Rs 5.
The funds would be used for the company's services division comprising of IPTV and VoIP businesses, Aksh Optifibre said.
Aksh Optifibre reported net profit of Rs 6.73 crore in the quarter ended June 2009 as compared to net loss of Rs 4.10 crore in the quarter ended June 2008. Net sales rose 36.1% to Rs 43.19 crore in the quarter ended June 2009 over the quarter ended June 2008.
The company is engaged in manufacturing optical fibre cables in India.
ICSA (India) (Formerly: Innareddy Computers)
ICSA (India) gained 3.35% to Rs 214.60 at 11:39 IST on BSE, after the company entered into the supervisory control and data acquisition business in the power sector.
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 215.80 and 208.65 so far during the day. The stock had hit a 52-week high of Rs 240 on 30 September 2009 and a 52-week low of Rs 48.35 on 13 March 2009.
The company's equity capital is Rs 9.42 crore. Face value per share is Rs 2.
The current price of Rs 214.60 discounts the company's Q1 June 2009 annualized EPS of Rs 28.92, by a PE multiple of 7.42.
The supervisory control and data acquisition (SCADA) system will help achieving load balancing and considerable improvement in voltage profiles, ICSA said. It would also facilitate proper handling of loads, efficient planning of network for future growth by using proven power system planning tools, it said.
The company expects that the SCADA opportunity in India would grow to around Rs 2500 crore in next three years.
ICSA (India) had in July 2009 secured orders worth Rs 133.92 crore from M P Poorv Kshetra Vidyut Co for commissioning new three phase 11 kilovolt (KV) lines.
ICSA (India)'s net profit slipped 0.11% to Rs 34.02 crore on 6.85% rise in net sales to Rs 305.69 crore in Q1 June 2009 over Q4 March 2009.
ICSA (India) is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines.
Promoters have pledged more than 25.32 lakh shares representing 5.38% of the equity capital of the company (as on 30 June 2009). Promoter shareholding in the company is 20.64% (as on 30 June 2009).
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 215.80 and 208.65 so far during the day. The stock had hit a 52-week high of Rs 240 on 30 September 2009 and a 52-week low of Rs 48.35 on 13 March 2009.
The company's equity capital is Rs 9.42 crore. Face value per share is Rs 2.
The current price of Rs 214.60 discounts the company's Q1 June 2009 annualized EPS of Rs 28.92, by a PE multiple of 7.42.
The supervisory control and data acquisition (SCADA) system will help achieving load balancing and considerable improvement in voltage profiles, ICSA said. It would also facilitate proper handling of loads, efficient planning of network for future growth by using proven power system planning tools, it said.
The company expects that the SCADA opportunity in India would grow to around Rs 2500 crore in next three years.
ICSA (India) had in July 2009 secured orders worth Rs 133.92 crore from M P Poorv Kshetra Vidyut Co for commissioning new three phase 11 kilovolt (KV) lines.
ICSA (India)'s net profit slipped 0.11% to Rs 34.02 crore on 6.85% rise in net sales to Rs 305.69 crore in Q1 June 2009 over Q4 March 2009.
ICSA (India) is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines.
Promoters have pledged more than 25.32 lakh shares representing 5.38% of the equity capital of the company (as on 30 June 2009). Promoter shareholding in the company is 20.64% (as on 30 June 2009).
Ingersoll-Rand jumps on delisting buzz
Ingersoll-Rand India jumped 5.23% to Rs 333 at 11:35 IST on reports the company has revived an earlier plan to buy back shares, which could eventually lead to delisting.
The stock hit a high of Rs 333.30 and a low of Rs 326.25 so far during the day. The stock had hit a 52-week high of Rs 356.80 on 11 September 2009 and a 52-week low of Rs 200.15 on 20 February 2009.
It has an equity capital of Rs 31.57 crore. Face value per share is Rs 10.
The current price of Rs 333 discounts the company's Q1 June 2009 annualised EPS of Rs 8.32, by a PE multiple of 40.02.
US-based Ingersoll-Rand currently owns 74% in Ingersoll-Rand (India). The company had announced its plan to buy back share in March 2009. It then got delayed, as the promoter company was unwilling to participate. The buyback would have shrunk the share holding, leading to the promoters' holding going above 75%. According to the regulator's guidelines this would have mandatorily meant an open offer by the promoter.
Ingersoll-Rand India's net profit fell 63.7% to Rs 6.57 crore on a 12.1% decline in sales to Rs 85.32 crore in Q1 June 2009 over Q1 June 2008.
Ingersoll-Rand India manufactures industrial equipment. The Company's products include air compressors and stationary generators.
The stock hit a high of Rs 333.30 and a low of Rs 326.25 so far during the day. The stock had hit a 52-week high of Rs 356.80 on 11 September 2009 and a 52-week low of Rs 200.15 on 20 February 2009.
It has an equity capital of Rs 31.57 crore. Face value per share is Rs 10.
The current price of Rs 333 discounts the company's Q1 June 2009 annualised EPS of Rs 8.32, by a PE multiple of 40.02.
US-based Ingersoll-Rand currently owns 74% in Ingersoll-Rand (India). The company had announced its plan to buy back share in March 2009. It then got delayed, as the promoter company was unwilling to participate. The buyback would have shrunk the share holding, leading to the promoters' holding going above 75%. According to the regulator's guidelines this would have mandatorily meant an open offer by the promoter.
Ingersoll-Rand India's net profit fell 63.7% to Rs 6.57 crore on a 12.1% decline in sales to Rs 85.32 crore in Q1 June 2009 over Q1 June 2008.
Ingersoll-Rand India manufactures industrial equipment. The Company's products include air compressors and stationary generators.
Sundaram Clayton strikes 52-week high after setting record date for bonus
Sundaram Clayton rose 3.62% to Rs 232 at 11:02 IST on BSE, after the company fixed 12 October 2009 as the record date for a liberal 1:1 bonus issue.
The company announced the record date after market hours on Tuesday, 29 September 2009.
Meanwhile, the BSE Sensex was up 138.38 points, or 0.82%, to 16,991.29.
On BSE, 11,573 shares were traded in the counter as against an average daily volume of 4,261 shares in the past one quarter.
The stock hit a high of Rs 235 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 226 so far during the day. The stock had hit a 52-week low of Rs 53.55 on 13 March 2009.
The company's equity capital is Rs 9.48 crore. Face value per share is Rs 5.
This is the fourth bonus from Sundaram Clayton. The company had earlier issued a 1:3 bonus in 1979, followed by bonus in the ratio of 2:3 in 1987 and a liberal 1:1 bonus in 1996.
Sundaram Clayton reported a net loss of Rs 2.09 crore in Q1 June 2009 as against a net profit of Rs 6.25 crore in Q1 June 2008. Sales declined 26.5% to Rs 93.69 crore in Q1 June 2009 over Q1 June 2008.
Sundaram-Clayton manufactures automotive products. The automotive products include air driers, actuators, automatic slack adjusters and wedge brake chambers.
The company announced the record date after market hours on Tuesday, 29 September 2009.
Meanwhile, the BSE Sensex was up 138.38 points, or 0.82%, to 16,991.29.
On BSE, 11,573 shares were traded in the counter as against an average daily volume of 4,261 shares in the past one quarter.
The stock hit a high of Rs 235 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 226 so far during the day. The stock had hit a 52-week low of Rs 53.55 on 13 March 2009.
The company's equity capital is Rs 9.48 crore. Face value per share is Rs 5.
This is the fourth bonus from Sundaram Clayton. The company had earlier issued a 1:3 bonus in 1979, followed by bonus in the ratio of 2:3 in 1987 and a liberal 1:1 bonus in 1996.
Sundaram Clayton reported a net loss of Rs 2.09 crore in Q1 June 2009 as against a net profit of Rs 6.25 crore in Q1 June 2008. Sales declined 26.5% to Rs 93.69 crore in Q1 June 2009 over Q1 June 2008.
Sundaram-Clayton manufactures automotive products. The automotive products include air driers, actuators, automatic slack adjusters and wedge brake chambers.
Strides Arcolab strengthens on buzz PE funds eye stake in injectables biz
Strides Arcolab rose 2.46% to Rs 179.35 at 10:57 IST on reports private equity firms Carlyle and 3i were among those holding preliminary discussions to take a minority stake in the drug maker's injectables business.
The stock hit a high of Rs 181.40 and a low of Rs 176 so far during the day. The stock had hit a 52-week high of Rs 182.10 on 7 September 2009 and a 52-week low of Rs 60.65 on 5 March 2009.
The small-cap drug maker has an equity capital of Rs 40.16 crore. Face value per share is Rs 10.
The current price of Rs 179.35 discounts the company's Q1 June 2009 annualised EPS of Rs 60.05, by a PE multiple of 2.98.
According to reports, Strides had recently inducted New York-based financial advisory firm Lazard to bring investors on board for its injectables business, with a valuation of around $170-$200 million.
The Bangalore-based firm manufactures sterile injectables and oral dosage formulations including tablets and soft gel capsules. Injectables that are prepared in a sterile environment where the ingredients are protected against cross contamination are referred to as sterile injectables.
Strides Arcolab recently launched a generic version of Roche's anti-viral Tamiflu, used to treat H1N1 swine flu, for retail sales in pharmacies. Strides has priced its product - Starflu - at Rs 460 for a strip of ten 75-milligram capsules. The retail launch follows the government's approval for restricted retail sale of oseltamivir, the chemical name for the drug.
Strides Arcolab reported a net profit of Rs 60.13 crore in Q2 June 2009 as compared to net loss of Rs 55.96 crore in Q2 June 2008. Net sales rose 9.1% to Rs 175.41 crore in Q2 June 2009 over Q2 June 2008.
Strides Arcolab manufactures a variety of pharmaceutical products that are distributed in over 35 countries. The group's therapeutic portfolio includes steroids, cephalosporins, antibiotics, vitamins, and analgesics. Strides Arcolab also runs a contract research and manufacturing division.
Promoters have pledged 68.96 lakh shares, or 17.22% equity capital of the firm. The total promoter shareholding in the company is 25.80%. (As on 30 June 2009.)
The stock hit a high of Rs 181.40 and a low of Rs 176 so far during the day. The stock had hit a 52-week high of Rs 182.10 on 7 September 2009 and a 52-week low of Rs 60.65 on 5 March 2009.
The small-cap drug maker has an equity capital of Rs 40.16 crore. Face value per share is Rs 10.
The current price of Rs 179.35 discounts the company's Q1 June 2009 annualised EPS of Rs 60.05, by a PE multiple of 2.98.
According to reports, Strides had recently inducted New York-based financial advisory firm Lazard to bring investors on board for its injectables business, with a valuation of around $170-$200 million.
The Bangalore-based firm manufactures sterile injectables and oral dosage formulations including tablets and soft gel capsules. Injectables that are prepared in a sterile environment where the ingredients are protected against cross contamination are referred to as sterile injectables.
Strides Arcolab recently launched a generic version of Roche's anti-viral Tamiflu, used to treat H1N1 swine flu, for retail sales in pharmacies. Strides has priced its product - Starflu - at Rs 460 for a strip of ten 75-milligram capsules. The retail launch follows the government's approval for restricted retail sale of oseltamivir, the chemical name for the drug.
Strides Arcolab reported a net profit of Rs 60.13 crore in Q2 June 2009 as compared to net loss of Rs 55.96 crore in Q2 June 2008. Net sales rose 9.1% to Rs 175.41 crore in Q2 June 2009 over Q2 June 2008.
Strides Arcolab manufactures a variety of pharmaceutical products that are distributed in over 35 countries. The group's therapeutic portfolio includes steroids, cephalosporins, antibiotics, vitamins, and analgesics. Strides Arcolab also runs a contract research and manufacturing division.
Promoters have pledged 68.96 lakh shares, or 17.22% equity capital of the firm. The total promoter shareholding in the company is 25.80%. (As on 30 June 2009.)
Sensex settles above 17,000 for the first time in 16 months
30th Sept-09
Sensex settles above 17,000 for the first time in 16 months
The key benchmark indices extended gains for second straight day on optimism about Q2 September 2009 which will start trickling in from the second week of October 2009.
The BSE 30-share Sensex rose 273.93 points or 1.63% to 17126.84, its highest closing since 21 May 2008.
The S&P CNX Nifty rose 77.10 points or 1.54% to 5,083.95, its highest closing level since 21 May 2008.
Sensex settles above 17,000 for the first time in 16 months
The key benchmark indices extended gains for second straight day on optimism about Q2 September 2009 which will start trickling in from the second week of October 2009.
The BSE 30-share Sensex rose 273.93 points or 1.63% to 17126.84, its highest closing since 21 May 2008.
The S&P CNX Nifty rose 77.10 points or 1.54% to 5,083.95, its highest closing level since 21 May 2008.
Piramal Glass >>to be a multibagger
Piramal Glass :
Hope it proves to be a multibagger for me.Here also I expect QOQ improvement in performance .
CURRENT MARKET PRICE:34 (on 29-sep-09)
Hope it proves to be a multibagger for me.Here also I expect QOQ improvement in performance .
CURRENT MARKET PRICE:34 (on 29-sep-09)
» FCCBs are back in vogue
FCCB's caused a lot of pain to Indian companies in the form of forex and mark to market losses during 2008 with the unexpected depreciation in the rupee. But that bad phase seems to be forgotten rather quickly with a spurt in FCCB issues by many companies once again. As per reports, in the past four days, four companies have announced plans to raise a total of about US$ 702 m through FCCBs. Infact, even the coupon rates being offered on the same have seen a fall, going from 7% to 8% earlier this year to 4% to 4.5% recently. Despite that, we doubt if this propensity of Indian companies to expose themselves to the risk of foreign exchange rate volatility by way of FCCBs can be good for investors.
Forget Gold, buy SILVER instead...
Book on sensible investing sell over 26 million copies, Robert Kiyosaki, the author of the hugely popular Rich Dad, Poor Dad series of books and about his favorite investment recently; we thought it worthwhile to share the same with you. And guess what, his favorite investment is neither stocks nor gold, asset classes that are immensely popular with other investors currently. Instead, Kiyosaki lists silver as his favorite investment.
There could be some merit in his argument. After all, in addition to being a storehouse of wealth just as gold, silver's growing use in industries such as superconductors and microcircuits, is leading to more and more demand being created while the supply remains constrained. Hence, this could lead to prices of silver growing at a faster pace than that of gold in the future, making it a better investment than gold.
However, this is not the only asset class that Kiyosaki is bullish on. He also likes real estate as unlike stocks where investors get no leverage, buying real estate does involve debt and hence, even a small rise in real estate values could lead to a significant jump in the return that an investor earns from it. However, as Kiyosaki rightly points out, if you are playing a game of debt, you've got to be a lot smarter than the average bear out there.
There could be some merit in his argument. After all, in addition to being a storehouse of wealth just as gold, silver's growing use in industries such as superconductors and microcircuits, is leading to more and more demand being created while the supply remains constrained. Hence, this could lead to prices of silver growing at a faster pace than that of gold in the future, making it a better investment than gold.
However, this is not the only asset class that Kiyosaki is bullish on. He also likes real estate as unlike stocks where investors get no leverage, buying real estate does involve debt and hence, even a small rise in real estate values could lead to a significant jump in the return that an investor earns from it. However, as Kiyosaki rightly points out, if you are playing a game of debt, you've got to be a lot smarter than the average bear out there.
L&T can build higher capacity nuclear plants’
Naik aims to get orders worth Rs. 1,500 crore in this sector
NEW DELHI: Engineering major Larsen and Toubro on Tuesday said it could build nuclear plants capable of producing 3,000-4,000 MW of power every year.
“It is not difficult for us to build 3,000-4,000 MW nuclear plants every year,” company Chairman and Managing Director A. M. Naik told reporters here.
The company had expertise to build 1,000 MW plants and had inked memoranda of understanding with “almost all” companies keen on doing business in the country in the nuclear sector except Areva, he said, adding that L&T was in talks with Canadian nuclear firms to build 1,200 MW reactors.
Mr. Naik said the company had invested about Rs. 5,000 crore in establishing a nuclear shop at Hazira in Gujarat which could undertake all activities related to building an atomic power plant.
The company aimed to get orders worth Rs. 1,500 crore in the nuclear sector annually if it continued to do “piecemeal projects” as it did now.
The nuclear business could be worth Rs. 7,000 crore annually if we were allowed to do projects on a turn-key basis, he said.
“Let me do the whole thing (nuclear plant) and I will deliver it in five years,” Mr. Naik said. He stressed for changing the mode of execution of projects from piecemeal to turn-key.
The company carries out jobs on a component basis and claims to have the capacity to build entire nuclear plants.
In turn-key projects, a developer builds the entire facility and hands over it to the buyer in ready-to-use condition.
L&T manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors. It has also designed technology and critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors.
The company also offers onsite integration and installation of massive structure of reactor main vessel, reactor safety vessel, end shield, calandria, coolant channels assembly and reactivity devices for new and operating plants. — PTI
NEW DELHI: Engineering major Larsen and Toubro on Tuesday said it could build nuclear plants capable of producing 3,000-4,000 MW of power every year.
“It is not difficult for us to build 3,000-4,000 MW nuclear plants every year,” company Chairman and Managing Director A. M. Naik told reporters here.
The company had expertise to build 1,000 MW plants and had inked memoranda of understanding with “almost all” companies keen on doing business in the country in the nuclear sector except Areva, he said, adding that L&T was in talks with Canadian nuclear firms to build 1,200 MW reactors.
Mr. Naik said the company had invested about Rs. 5,000 crore in establishing a nuclear shop at Hazira in Gujarat which could undertake all activities related to building an atomic power plant.
The company aimed to get orders worth Rs. 1,500 crore in the nuclear sector annually if it continued to do “piecemeal projects” as it did now.
The nuclear business could be worth Rs. 7,000 crore annually if we were allowed to do projects on a turn-key basis, he said.
“Let me do the whole thing (nuclear plant) and I will deliver it in five years,” Mr. Naik said. He stressed for changing the mode of execution of projects from piecemeal to turn-key.
The company carries out jobs on a component basis and claims to have the capacity to build entire nuclear plants.
In turn-key projects, a developer builds the entire facility and hands over it to the buyer in ready-to-use condition.
L&T manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors. It has also designed technology and critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors.
The company also offers onsite integration and installation of massive structure of reactor main vessel, reactor safety vessel, end shield, calandria, coolant channels assembly and reactivity devices for new and operating plants. — PTI
Wednesday, September 23, 2009
PSU banks gallop as World Bank infuses fund
Ten public sector banks rose by 0.73% to 6.60% after the World Bank sanctioned $2 billion, or nearly Rs 10,000 crore, to the government to recapitalise public sector banks.
At 11:13 IST, the BSE Bankex was up 0.42% at 9,454.12. It outperformed the Sensex, which was down 0.27% at 16,840.79.
Indian Overseas Bank (up 6.60%), Vijaya Bank (up 5.31%), UCO Bank (up 5.09%), Bank of Maharashtra (up 4.49%), Syndicate Bank (up 2.90%), Andhra Bank (up 2.52%), Allahabad Bank (up 2.19%), Punjab National Bank (up 1.60%), Bank of Baroda (up 1.30%), Canara Bank (up 0.73%), spurted.
However, Bank of India (down 0.18%), Oriental Bank of Commerce (down 0.35%), and State Bank of India (down 0.66%), declined.
The World Bank on Tuesday, 22 September 2009, approved $4.3 billion in loans for India to bolster its economic stimulus programme and support the infrastructure sector. The loans are part of the World Bank's $14 billion in crisis-related lending for India over three years through 2012.
Of this $2 billion is for the banking sector, which will provide budgetary support to India, helping it maintain its broad economic stimulus program by enhancing the capital of select public sector banks.
The government had proposed Rs 18,000 crore to replenish the capital of state-owned banks during the current fiscal year in a bid to boost their balance-sheet muscle in line with international regulatory standards to help them lend more money to companies and individuals.
The funds would help these banks to shore up their capital adequacy ratio (CAR) above 12% till fiscal 2012 while helping them to adhere to the stringent Basel II norms.
The Reserve Bank of India (RBI) stipulates that banks need to maintain a capital adequacy ratio (CAR) of 9%, which includes tier I capital (equity and free reserves) and tier II capital or subordinated debt. However, the government had earlier announced that it would ensure that CAR of public sector banks did not fall below 12%.
According to reports, Bank of Maharashtra, Syndicate Bank, Indian Overseas Bank, Oriental Bank of Commerce, Andhra Bank and Vijaya Bank, have sought extra capital from the government.
Meanwhile, Bank of India, Canara Bank and Allahabad Bank have reportedly told the finance ministry that they may not require capital infusion from the government.
At 11:13 IST, the BSE Bankex was up 0.42% at 9,454.12. It outperformed the Sensex, which was down 0.27% at 16,840.79.
Indian Overseas Bank (up 6.60%), Vijaya Bank (up 5.31%), UCO Bank (up 5.09%), Bank of Maharashtra (up 4.49%), Syndicate Bank (up 2.90%), Andhra Bank (up 2.52%), Allahabad Bank (up 2.19%), Punjab National Bank (up 1.60%), Bank of Baroda (up 1.30%), Canara Bank (up 0.73%), spurted.
However, Bank of India (down 0.18%), Oriental Bank of Commerce (down 0.35%), and State Bank of India (down 0.66%), declined.
The World Bank on Tuesday, 22 September 2009, approved $4.3 billion in loans for India to bolster its economic stimulus programme and support the infrastructure sector. The loans are part of the World Bank's $14 billion in crisis-related lending for India over three years through 2012.
Of this $2 billion is for the banking sector, which will provide budgetary support to India, helping it maintain its broad economic stimulus program by enhancing the capital of select public sector banks.
The government had proposed Rs 18,000 crore to replenish the capital of state-owned banks during the current fiscal year in a bid to boost their balance-sheet muscle in line with international regulatory standards to help them lend more money to companies and individuals.
The funds would help these banks to shore up their capital adequacy ratio (CAR) above 12% till fiscal 2012 while helping them to adhere to the stringent Basel II norms.
The Reserve Bank of India (RBI) stipulates that banks need to maintain a capital adequacy ratio (CAR) of 9%, which includes tier I capital (equity and free reserves) and tier II capital or subordinated debt. However, the government had earlier announced that it would ensure that CAR of public sector banks did not fall below 12%.
According to reports, Bank of Maharashtra, Syndicate Bank, Indian Overseas Bank, Oriental Bank of Commerce, Andhra Bank and Vijaya Bank, have sought extra capital from the government.
Meanwhile, Bank of India, Canara Bank and Allahabad Bank have reportedly told the finance ministry that they may not require capital infusion from the government.
Piramal Healthcare in the pink of health as GSK eyes acquisition
Piramal Healthcare jumped 5.71% to Rs 376 at 12:34 IST on reports UK-based GlaxoSmithKline Plc is looking for potential acquisitions in the Indian market and has shortlisted Piramal Healthcare and Dr Reddy's Lab for the proposed acquisition.
The stock hit a high of Rs 382, which is also its 52-week high. It hit a low of Rs 357 so far during the day. The stock had hit a 52-week low of Rs 163.75 on 19 February 2009.
The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 376 discounts the company's Q1 June 2009 annualised EPS of Rs 14.18, by a PE multiple of 26.51.
GlaxoSmithKline Plc (GSK), which is looking to expand its presence in emerging markets such as India, has reportedly engaged investment bank Lazard and Co. to evaluate potential acquisitions in the country.
In February 2009, the media had reported that GSK was in talks to buy Piramal for roughly $1.5 billion (Rs 7,230 crore). However, Piramal Healthcare had denied media reports .
A senior official from Piramal Healthcare was quoted by media as saying on Monday, 21 September 2009, that the company keeps receiving proposals from merchant bankers, but that the promoters have not so far looked at those offers seriously. Rather, the company wants to grow through organic as well as inorganic route in the domestic market
Meanwhile, shares of Dr Reddy's Laboratories were up 0.20% at Rs 865 on the BSE.
According to reports, GSK's strategy to consolidate its presence in India is similar to that of its global rivals such as Pfizer Inc., Sanofi Aventis SA, and Daiichi Sankyo Co.
All these firms want to ensure sustained supply of cheap off-patent drugs or generics from India to cater to the global market. At least $70 billion worth of patented drugs will go off patent by 2012.
India's Rs 35,000 crore drug market, which is expanding by 14-15% a year, is another reason for multinationals to look seriously at the country.
Piramal Healthcare's net profit rose 45.5% to Rs 74.11 crore on a 16.5% increase in sales to Rs 569.73 crore in Q1 June 2009 over Q1 June 2008.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
The stock hit a high of Rs 382, which is also its 52-week high. It hit a low of Rs 357 so far during the day. The stock had hit a 52-week low of Rs 163.75 on 19 February 2009.
The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 376 discounts the company's Q1 June 2009 annualised EPS of Rs 14.18, by a PE multiple of 26.51.
GlaxoSmithKline Plc (GSK), which is looking to expand its presence in emerging markets such as India, has reportedly engaged investment bank Lazard and Co. to evaluate potential acquisitions in the country.
In February 2009, the media had reported that GSK was in talks to buy Piramal for roughly $1.5 billion (Rs 7,230 crore). However, Piramal Healthcare had denied media reports .
A senior official from Piramal Healthcare was quoted by media as saying on Monday, 21 September 2009, that the company keeps receiving proposals from merchant bankers, but that the promoters have not so far looked at those offers seriously. Rather, the company wants to grow through organic as well as inorganic route in the domestic market
Meanwhile, shares of Dr Reddy's Laboratories were up 0.20% at Rs 865 on the BSE.
According to reports, GSK's strategy to consolidate its presence in India is similar to that of its global rivals such as Pfizer Inc., Sanofi Aventis SA, and Daiichi Sankyo Co.
All these firms want to ensure sustained supply of cheap off-patent drugs or generics from India to cater to the global market. At least $70 billion worth of patented drugs will go off patent by 2012.
India's Rs 35,000 crore drug market, which is expanding by 14-15% a year, is another reason for multinationals to look seriously at the country.
Piramal Healthcare's net profit rose 45.5% to Rs 74.11 crore on a 16.5% increase in sales to Rs 569.73 crore in Q1 June 2009 over Q1 June 2008.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
Tata Power 2 Mundra power units to be ready by 2012
2 Mundra power units to be ready by 2012
Tata Power will bid for domestic coal-based projects only
NEW DELHI: Tata Power on Wednesday said its first two units of 800 MW each of the Mundra Ultra Mega Power Project (UMPP) in Gujarat would be commissioned by early 2012 during the XI Plan itself. The company would bid for new UMPPs only when the market conditions were favourable. Talking to reporters, Tata Power Executive Director S. Ramakrishnan said the company would only bid for domestic coal-based projects as import of the dry fuel was quite expensive. “We would bid for the 4,000 MW ultra mega power projects only if it is not an imported coal-based project and the financial market should be good,” he added. “We are already importing coal for the Mundra project. We are sourcing it from Indonesia where we have 30 per cent stake in the coal blocks,” Mr. Ramakrishnan said.
Out of the five 800 MW units of the Mundra UMPP project, two (2x800 MW) are scheduled to come up during the current Plan (2007-12). The project entails an investment of Rs. 17,000 crore and is being funded on a debt and equity ratio of 75:25. He said the company cannot go in for another imported fuel-based project in the near future as imported coal was expensive. Tata Power with an installed capacity of 2,768 MW, plans to become a 12,000 MW company by 2014.
Tata Power will bid for domestic coal-based projects only
NEW DELHI: Tata Power on Wednesday said its first two units of 800 MW each of the Mundra Ultra Mega Power Project (UMPP) in Gujarat would be commissioned by early 2012 during the XI Plan itself. The company would bid for new UMPPs only when the market conditions were favourable. Talking to reporters, Tata Power Executive Director S. Ramakrishnan said the company would only bid for domestic coal-based projects as import of the dry fuel was quite expensive. “We would bid for the 4,000 MW ultra mega power projects only if it is not an imported coal-based project and the financial market should be good,” he added. “We are already importing coal for the Mundra project. We are sourcing it from Indonesia where we have 30 per cent stake in the coal blocks,” Mr. Ramakrishnan said.
Out of the five 800 MW units of the Mundra UMPP project, two (2x800 MW) are scheduled to come up during the current Plan (2007-12). The project entails an investment of Rs. 17,000 crore and is being funded on a debt and equity ratio of 75:25. He said the company cannot go in for another imported fuel-based project in the near future as imported coal was expensive. Tata Power with an installed capacity of 2,768 MW, plans to become a 12,000 MW company by 2014.
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