NSE/BSE STOCK MARKET TIPS

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Dabur up as Nepal facility resumes operations
DALAL STREET SPIKES
September 27, 2008.

The share price of Dabur moved up by 2.30 per cent, or Rs 2, to close at Rs 89.05 on the Bombay Stock Exchange (BSE). The company's subsidiary in Nepal has resumed operations, ending nearly a month-long lock-out by a pro-Maoist union over labour tussle.

The company at Birgunj in the Parsa district resumed operations yesterday after it reached an agreement with the All Nepal Trade Union Federation Revolutionary and dropped a clause that said it would not pay wages for the strike period, sources in the company said. The stock touched a high of Rs 90 and a low of Rs 87 on BSE.

Vishal Info: Acquisition boost

The stock gained 12.4 per cent from Rs 314.55 to Rs 353.65 in a falling market last week after the company announced that it was considering acquisitions in the UK and Europe. The company has announced a board meeting on October 1 to consider raising funds through external commercial borrowings and global depository receipts (GDRs).

The combined trading volume on the counter almost doubled, with 11 million equity shares changing the hands last week compared with 6 million shares traded in the week earlier. The stock, which got listed in August this year, has appreciated by 136 per cent from its issue price of Rs 150 on BSE.

The company covers almost all segments in IT-enabled services sector other than the voice call centre. Currently, the company’s revenues are generated from projects and services and e-publishing, including data digitisation.

Goldman Sacs retains 'buy' on Axis Bank
17 Sep, 2008.

Axis Bank
CMP: Rs 696.55
TARGET PRICE: Rs 1,010

Goldman Sacs has retained its ‘buy’ rating on Axis Bank, expecting the bank’s earnings per share of grow at a compounded annual rate of 33% between FY07 and FY10. The growth, says Goldman Sachs, would be driven by improvement in cost competitiveness, rising contribution from fee income and higher productivity arising from economies of scale.

“We believe Axis’ current valuation does not capture the upside potential from its rapid growth in franchise value. Investors appear to be concerned about the rapid growth witnessed by the bank in the past, and hence, the potential for increase in credit losses impacting the bank’s earnings growth prospects adversely in our view. We believe the bank’s credit portfolio is concentrated in the large corporate segment, which is less vulnerable to rapid deterioration in credit quality. As such, we believe increase in credit costs is unlikely to impair earnings growth expectations materially,” the note said.

ICICI Bank denies talk of share sale by top management
17 Sep, 2008.

MUMBAI: ICICI Bank has dubbed rumours about top management selling the company’s shares over the last few days as baseless and irresponsible.

No shares have been sold by members of the top management of the bank during the current year, the bank said in a release.

ICICI Bank is taking up this matter with regulatory authorities for necessary action against those responsible for the rumours.

Towards end of Wednesday’s trade, ICICI Bank shares were down 4.92 per cent at Rs 362.25 on BSE. The stock had fallen to a low of Rs 530 earlier.

ICICI Bank denies talk of share sale by top management
17 Sep, 2008.

MUMBAI: ICICI Bank has dubbed rumours about top management selling the company’s shares over the last few days as baseless and irresponsible.

No shares have been sold by members of the top management of the bank during the current year, the bank said in a release.

ICICI Bank is taking up this matter with regulatory authorities for necessary action against those responsible for the rumours.

Towards end of Wednesday’s trade, ICICI Bank shares were down 4.92 per cent at Rs 362.25 on BSE. The stock had fallen to a low of Rs 530 earlier.

ICICI Bank denies talk of share sale by top management
17 Sep, 2008.

MUMBAI: ICICI Bank has dubbed rumours about top management selling the company’s shares over the last few days as baseless and irresponsible.

No shares have been sold by members of the top management of the bank during the current year, the bank said in a release.

ICICI Bank is taking up this matter with regulatory authorities for necessary action against those responsible for the rumours.

Towards end of Wednesday’s trade, ICICI Bank shares were down 4.92 per cent at Rs 362.25 on BSE. The stock had fallen to a low of Rs 530 earlier.

Sensex likely to drop to 11K next month: Religare's Chakraborty

MUMBAI: The Sensex is likely to drop further to 11K level next month as foreign institutional investors are pulling out drastically due to liquidity crisis in the global market, said Amitabh Chakraborty, president-equity, Religare Securities.

“We are seeing the near-term bottom at 11,000 for the Sensex and 3,650 for the Nifty in the month of October because FIIs are in selling mode and will continue further," he said.

Foreign funds net sold $212.30 million in equity on Monday and $156 million Tuesday on news of Lehman Brothers filing for bankruptcy, according to SEBI data. So far, FIIs have pulled out over $1 billion from India.

Chakraborty said the present on-going problem is very much concerned with the financial economy, which is likely to shift towards non-financial economy by 2009 and the slowdown in real economy would be visible.

“More and more countries from emerging economies would come under the influence,” Chakraborty said.

However, there would be a short term bounce back in near future as a fair amount of liquidity has been pumped in by US, but the mid-term outlook is grim.

Retail investors should keep away for some more time and a better option for them would be to invest in a segment having strong cash position or other options like liquid and debt funds, he said.

Deutsche Securities puts 'hold' on Indiabulls Real Estate
10 Sep, 2008,

Indiabulls Real Estate
cmp: Rs 286.80
target price: Rs 300

Deutsche Securities has initiated coverage on Indiabulls Real Estate with a ‘hold’ rating as it feels the company has limited track record in execution. Weakness in the Mumbai office market for high-end office properties, and a large free float — which allows much larger head-room for “borrowing” and selling short — are downsides for the stock.

According to a Deutsche Bank note, Indiabulls’ revenue growth would be driven by volumes and stake sale of associate and/or subsidiaries. “We expect a revenue CAGR (compound annual growth rate) of 41% over FY08 to FY11 (estimated). \

We expect EBITDA margins to drop from 72% in FY08 to 55% in FY11 (estimated), mainly driven by higher costs (land, construction, employees, SG&A).

Further, we expect the tax rate to increase from around 28% in FY08 to nearly 30% in FY11 (estimated). Thus, while we expect volume growth (around 40%), we expect PAT (profit after tax) to grow by only a 19% CAGR over FY08-11 (estimated),” the note to clients said.

However, the Deutsche Bank note added that the demerging and listing of its forays in power and retailing would drive growth and shareholder value in the near term. Meanwhile, SEZs, townships and annuities from completed projects will drive long-term growth, it added.

Deutsche Securities puts 'hold' on Indiabulls Real Estate
10 Sep, 2008,

Indiabulls Real Estate
cmp: Rs 286.80
target price: Rs 300

Deutsche Securities has initiated coverage on Indiabulls Real Estate with a ‘hold’ rating as it feels the company has limited track record in execution. Weakness in the Mumbai office market for high-end office properties, and a large free float — which allows much larger head-room for “borrowing” and selling short — are downsides for the stock.

According to a Deutsche Bank note, Indiabulls’ revenue growth would be driven by volumes and stake sale of associate and/or subsidiaries. “We expect a revenue CAGR (compound annual growth rate) of 41% over FY08 to FY11 (estimated). \

We expect EBITDA margins to drop from 72% in FY08 to 55% in FY11 (estimated), mainly driven by higher costs (land, construction, employees, SG&A).

Further, we expect the tax rate to increase from around 28% in FY08 to nearly 30% in FY11 (estimated). Thus, while we expect volume growth (around 40%), we expect PAT (profit after tax) to grow by only a 19% CAGR over FY08-11 (estimated),” the note to clients said.

However, the Deutsche Bank note added that the demerging and listing of its forays in power and retailing would drive growth and shareholder value in the near term. Meanwhile, SEZs, townships and annuities from completed projects will drive long-term growth, it added.

Deutsche Securities puts 'hold' on Indiabulls Real Estate
10 Sep, 2008,

Indiabulls Real Estate
cmp: Rs 286.80
target price: Rs 300

Deutsche Securities has initiated coverage on Indiabulls Real Estate with a ‘hold’ rating as it feels the company has limited track record in execution. Weakness in the Mumbai office market for high-end office properties, and a large free float — which allows much larger head-room for “borrowing” and selling short — are downsides for the stock.

According to a Deutsche Bank note, Indiabulls’ revenue growth would be driven by volumes and stake sale of associate and/or subsidiaries. “We expect a revenue CAGR (compound annual growth rate) of 41% over FY08 to FY11 (estimated). \

We expect EBITDA margins to drop from 72% in FY08 to 55% in FY11 (estimated), mainly driven by higher costs (land, construction, employees, SG&A).

Further, we expect the tax rate to increase from around 28% in FY08 to nearly 30% in FY11 (estimated). Thus, while we expect volume growth (around 40%), we expect PAT (profit after tax) to grow by only a 19% CAGR over FY08-11 (estimated),” the note to clients said.

However, the Deutsche Bank note added that the demerging and listing of its forays in power and retailing would drive growth and shareholder value in the near term. Meanwhile, SEZs, townships and annuities from completed projects will drive long-term growth, it added.

Anand Rathi puts 'buy' on Bharat Electronics
8 Sep, 2008,

Anand Rathi Securities has a 'buy' call on Bharat Electronics around the current price of Rs 974 for target Rs 1,140 and stop loss of Rs 900.

Based on the chart pattern to date, the stock is likely to get support around Rs 930.

Bharat Electronics, after a descent consolidation, exhibits a trend reversal; rise in RSI from over sold zone indicates a medium term buy.