Corporate News

Areva T&D has won an order worth Rs1.1bn from the West Bengal State Electricity Transmission Company.(BL)

Crompton Greaves eyes overseas acquisition.(BL)

Cairn India will begin commercial production of oil from the Rajasthan fields by mid-2009 for which sales talks are going on.(BL)

JSL has shelved its US$1.2bn JV project with Indonesia's PT Antam TBK in the southeast Asian country.(TOI)

Bharti Airtel launches low-cost PC.(FE)

Welspun Power and Steel, which had signed the agreement to buy Vikram Ispat 11 months ago completes the takeover of the sponge iron business from Grasim Industries.(TOI)

Satyam has 10,000 excess staff, says Tech Mahindra.(TOI)

HDIL to raise $600m via QIPs.(FE)

Tata Group to invest Rs2k-cr in logistics parks.(FE)

Reliance Capital to offload 26% in its life insurance subsidiary.(FE)

Essar Energy plans to raise a debt of Rs4bn to fund its project to produce gas found on coal beds in its Raniganj block in West Bengal. (BS)

Parsvnath to raise up to Rs25bn through issuance of securities, including Qualified Institutional Placements. (BS)

Era Infra bagged a Rs810mn contract from the Central Public Works Department for development of flats in New Delhi. (BS)

Matrix Laboratories has assigned its right to purchase 1% equity in Astrix Laboratories to Mylan Luxembourg, another subsidiary of Mylan. (BS)

Reliance Retail to add 1mn sq. ft of space; will invest Rs5bn.(Mint)

Ranbaxy Laboratories Chairman, CEO and MD Malvinder Mohan Singh stepped down, within a year of its acquisition by Japanese giant Daiichi Sankyo.(DNA)

BHEL cancels all its overseas acquisitions plans.(Mint)

Tata Housing Development Company has partnered with Micro Housing Finance Corporation to provide easy housing finance to the lower income group for its housing initiative. (BS)

Reliance Infrastructure to raise up to Rs43bn through issuance of 42.9mn equity shares to its promoters. (BS)

I-T authorities have slapped a tax liability of Rs3-4bn on DLF for understatement of income and fund diversion by the company. (BS)

Unitech sells more than a quarter of its launched projects in the first two months of the financial year. (BS)

Aurobindo Pharma expands its partnership with Pfizer Inc for supply agreements of solid dosage and sterile products for a number of emerging markets. (BS)

IOC plans to set up 40 retail outlets and 25 Kisan Seva Kendras in Orissa in 2009-10. (BS)

ONGC approaches the Directorate General of Hydrocarbons seeking permission to retain the Ambe field block, located off the Gujarat coast. (BS)

Dabur to foray into premium skin care. (ET)

ONGC to help fix price of Cairn's crude from Barmer oilfield. (ET)

Reliance Industries and Essar Oil may not buy crude oil that Cairn India will start pumping from Rajasthan in the next few weeks. (ET)

Jharkhand government grants a prospecting licence to Tata Steel for the Ankua iron ore mines. (ET)

Apollo Hospitals received a notice from the Mumbai Enforcement Directorate seeking explanation on the end-use of the GDR issue. (ET)

Sobha Developers to hive off non-realty businesses.(DNA)

CESC to invest Rs80bn in two 1000MW plants.(DNA)

GMR Infrastructure plans to raise US$1bn to fund the next phase of its growth.(DNA)

Source: Indiainfoline.com

Intraday Trading Calls for 25th May

Stock Market India may open positive and remains positive for the day.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
MAN INDUSTRIES	Buy Above	50.20	53.45	56.00
	Sell Below	48.60	46.15	44.00
STERLITE TECH	Buy Above	142.25	147.55	152.00
	Sell Below	138.50	134.35	130.00
KARNATAK BANK	Buy Above	142.60	148.15	154.00
	Sell Below	138.35	134.10	130.00
TATA METALIKS	Buy Above	105.20	110.25	116.00
	Sell Below	102.40	97.35	92.00
3i INFOTECH	Buy Above	71.25	73.65	78.00
	Sell Below	69.40	66.45	63.00
TATA STEEL	Buy Above	365.80	372.55	380.00
	Sell Below	361.40	355.35	348.00
IRB INFRA	Buy Above	136.80	141.55	147.00
	Sell Below	134.25	130.55	126.00

Short to Med. Term Delivery Buy:

Buy Indowind Energy (532894) CMP Rs. 28.55/- Short Term Target Rs. 40-45/-.

GOOD LUCK

Investment Pick: Dr.Reddy’s Laboratorie

If one looks at the fourth quarter performance of Dr.Reddy’s Laboratories for period ended 31st march 2009, on a QoQ, one would tend to believe that the company has ended the year on a positive note. A look at the standalone figures of the company for Q4FY09 indicates that QoQ, net sales rose 10% but net profit surged by a whopping 51%. On a YoY, the picture is a but more subdued. Though net sales rose 16%, net profit declined 3.7% at Rs.156.17 crore.

But the picture for the FY09 is not good. On a consolidated basis, it posted a net loss of Rs.917.24 crore for the year ended March 31, 2009 as compared to a net profit of Rs 438.1 crore for the previous corresponding year. This loss is directly attributed to its German company, which has been its profit drainer for some time now. During the year, there have been certain significant changes in the German generics market such as reference price cuts, increased presence of discount contracts, announcement of large sales tender from AOK etc. Due to these adverse market developments, the company tested its carrying value of intangibles and goodwill at the betapharm cash generating unit for impairment. The recoverable value of these intangibles was determined to be the Value-In-Use (“ViU”). The impairment testing indicated that the carrying value of certain product related intangibles was higher than its recoverable value and accordingly, the company has recorded an impairment loss with respect to such intangible assets amounting to Rs.86.24 crore. Additionally, as regards goodwill, the carrying value of the betapharm CGU was also higher than the recoverable amount resulting in a goodwill impairment of Rs.1376.60 crore. The company has stated that this is a one-time non-cash charge in the income statement and incorporates the provisions of applicable accounting standards.

Consolidated net sales for FY09 was up 38% at Rs.6790.37 crore. And this surge was mainly on account of launch of the authorized generic version of GlaxoSmithKline’s Imitrex in late November 2008. Growth in North America and Russia also helped the sales. Revenue from global generics business was at Rs.4,980 crore in FY09, up 51%. Revenues from pharmaceutical services and active ingredients increased by 13% to Rs.1,880 crore.

The company spent Rs.409.27 crore on R&D during the year, up 19% over FY08 R&D spend. During the year, the company launched 116 new generic products, filed 110 new generic product registrations and filed 55 DMFs globally.
The company does not foresee any more such write-offs in the future; this was just a one-time blip. It remains a fundamentally good stock; one can accumulate for long term at every decline.

Source: www.premiuminvestment.com (by S P Tulsian)

Corporate News

Infosys plans to raise US headcount by adding 1,000 employees in next 12-18 months. (BS)

Tata Motors to raise US$1bn through ECBs. (BS)

Bajaj Auto and Renault's plans to launch a small car might be delayed owing to branding issues. (ET)

Bajaj Auto to launch low cost car by 2011. (BS)

A division bench of Madras High Court has ruled that the TVS Motors can manufacture and market 125cc Flame in its original form. (ET)

Cairn India to sell Rajasthan crude at a discount of about US$16/bbl to the grade of ONGC's Mumbai High crude oil. (BS)

Maruti Suzuki's share in Suzuki Motor Corp's revenues has risen to 46% in FY09 from 30% in FY08, which will enable Maruti to get more freedom to take key decisions. (ET)

Tata Steel gets nod for Ankua iron ore mine. (FE)

Tata Power has been asked to provide fixed asset as collateral to hedge a Rs80bn foreign exchange loan. (BS)

HCL Tech signs a global outsourcing deal with MTV Networks to develop and support its online media platforms. (ET)

ICICI Bank gets more time to deposit guarantee amount for Maytas' highway project in Tamil Nadu. (ET)

Bharti Airtel to launch sub-Rs8,000 online computers powered by Microsoft and Nivio. (BS)

Reliance Power to invest Rs120bn in Arunachal Pradesh for executing 2,520MW hydro power projects in the next five years. (FE)

Reliance Capital is planning to list Reliance Life Insurance by divesting 26% in the company. (ET)

DLF is close to sell off its subsidiary DLF Wind Power to French Company Eole-Res for Rs10bn. (FE)

Dr Reddy's is moving all its drug R&D assets to its wholly-owned subsidiary Aurigene, effective July 1. (BS)

Ranbaxy acquires entire range of skin care and lifestyle products of Ochoa Labs. (BS)

Patel Engineering has bagged an order worth Rs7bn. (BS)

Bata India plans to open 240 stores in three years. (ET)

The Enforcement Directorate has sent a notice to Apollo Hospitals on charges of possible FEMA violations. (ET)

Areva T&D bags order to build a 400KV sub-station at Kharagpur. (BS)

Parsvnath to invest Rs1.3bn in developing an IT park in Gurgaon. (BS)

MRF to shift tyre production temporarily from its facility in Tamil Nadu to its Medak factory in Andhra Pradesh. (BS)

Coal India may raise prices to offset wage pressure. (BS)

MMTC to import 12.5mn tons of coal for NTPC. (BS)

Opto Circuits gets approval to sell its products in Brazil. (BL)

Pfizer has acquired rights to 60 products of Aurobindo Pharma. (BL)

Source: indiainfoline.com

Intraday Trading Calls for 22nd May

Stock Market India may open flat to positive and remains flat for the day.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
MAN INDUSTRIES	Buy Above	45.20	47.80	51.00
	Sell Below	43.70	41.25	39.00
PRITHVI INFO	Buy Above	63.65	66.75	70.00
	Sell Below	62.40	59.35	57.00
GMR INFRA	Buy Above	171.80	175.10	180.00
	Sell Below	169.35	166.15	162.00
SELAN EXPLO	Buy Above	172.75	178.30	185.00
	Sell Below	169.70	165.35	161.00
BILT	Buy Above	24.10	26.20	28.00
	Sell Below	23.20	21.60	20.00
MPHASIS LTD.	Buy Above	287.80	296.10	305.00
	Sell Below	283.40	278.25	270.0
IRB INFRA	Buy Above	134.60	139.45	145.00
	Sell Below	131.50	127.20	122.00

Short to Med Term Delivery Pick:

Buy Man Industries (513269) CMP Rs. 44/- Short Term Target Rs. 65/-.

GOOD LUCK

Corporate News

Reliance Industries has received the government go-ahead to sign agreements with firms supplying the much-needed gas to households and car owners in major cities. (ET)

ONGC and Oil India provide support of Rs9.4bn in form of subsidy. (BL)

Tata Steel rules out stake sale in Teesside plant. (FE)

Bharti-Wal-Mart will open its first cash and carry store in India in Amristar, Punjab next week. (BS)

Bharti Airtel plans to open 1600 Airtel service centres in Tamil Nadu by end of this month followed by another 4000 such centres by end of March '10. (FE)

PGCIL is in talks with atleast 4 US companies to jointly bid for transmission contracts there. (Mint)

Grupo Mexico has bid US$1.6bn for Asarco to counter Sterlite's offer. (BS)

TCS expects its Asia-Pacific business to grow faster than the overall company. (BS)

Tata Motors is understood to have begun refunding dealers across the country for unsold Nano booking forms. (ET)

Tata Motors has raised Rs42bn through the issue of secured non-convertible debentures (NCD) in the local market. (ET)

Punjab National Bank to sell 26% stake in housing finance arm to Dawnay Day. (BL)

Reliance Power has bagged 4 hydro power projects of 2.5GW capacity worth over Rs180bn. (BS)

Reliance Infrastructure has achieved the financial closure of the Western Region System Strengthening power transmission project and a consortium of banks led by SBI will fund Rs9.7bn as debt. (BS)

Grasim puts its RMC investments plans at rest. (FE)

Sobha Developers and Mumbai-based HDIL are considering raising funds through QIP. (ET)

Aditya Birla Group may sell a stake in its loss-making retail venture to private equity firms Warburg Pincus, KKR and Goldman Sachs. (ET)

Tech Mahindra eyes 50% stake of VGE in Satyam's JV. (FE)

Unitech has sold an office space in Saket, New Delhi, for Rs5bn as part of a plan to raise money. (BS)

Telenor hikes stake in Unitech Wireless to 49%. (BL)

HCL Technologies has entered into outsourcing services engagement with MTV Networks. (BS)

Jain Irrigation bags Rs650mn order from Balh Valley Medium Irrigation project in Himachal Pradesh. (BL)

Pfizer Inc has inked pact with Claris Lifesciences to market off patent injectibles. (BS)

Government plans to divest 10% in BSNL once the new minister assumes office. (BS)

BSNL may reject Huawei's bid for the GSM line order for the western telecom circles. (BS)

KS Oil to get Rs4.5bn funding from PE investors, GDR and promoter funding for development, expansion and acquisition of agricultural assets in South East Asia. (BL)

Surya Roshni to complete its Rs6bn expansion by fiscal end. (BL)

Prolec GE announced that it has enhanced its stake in Indo Tech Transformers to 74.35%. (BL)

Texmaco bags 3,455 wagon orders from Railways. (BL)

Swan Telecom is set to outsource its IT and backoffice functions to Tech Mahindra and will award a network equipment deal to Ericsson. (ET)

NHPC, MMTC, BSNL and Oil India are some of the public sector firms that may be upgraded to navratna status ahead of their IPOs. (ET)

MTNL executives have called off their strike. (BS)

Merck board has approved Rs1.6bn buyback offer. (BS)

Air India board plans to raise Rs30bn to meet its working capital requirements among others. (BS)

MMRDA has invited pre-qualification bids for construction of the tallest building with 101 floors. (BS)

Source: Indiainfoline.com

Intraday Trading Calls for 21st May

Stock Market India may open negative and remains very volatile for the day today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
IOC	Buy Above	463.65	470.50	480.00
	Sell Below	458.40	452.10	445.00
HPCL	Buy Above	284.25	290.35	300.00
	Sell Below	280.05	274.35	268.00
COMPACT DISC	Buy Above	48.70	52.25	55.00
	Sell Below	47.35	45.15	42.00
SELAN EXPLO	Buy Above	163.60	169.55	175.00
	Sell Below	160.40	156.35	152.00
F S L	Buy Above	21.50	23.25	25.00
	Sell Below	20.40	19.10	17.00
EKC	Buy Above	173.80	180.10	188.00
	Sell Below	169.70	165.15	160.00
CHAMBAL FERT.	Buy Above	61.20	63.75	67.00
	Sell Below	59.35	57.15	55.00

Keep an eye on MPHASIS ltd. (526299) CMP Rs. 273/- it can be hero of the day.

Short to Med. Term Delivery Buy:

Buy Excel Crop (532511) CMP Rs. 98/- Short Term Target Rs. 130/-.

GOOD LUCK