Stock Idea: Aurobindo Pharma

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company’s manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company’s robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.

For the first quarter ended 30th June 2009, on a consolidated basis, the company registered a total operating income of Rs 852.8 crore, up 25% on a YoY. Formulation sales were up 62% at Rs.469 crore and this comprised 57% of its gross sales. Operating Profit before Forex was at Rs.195.7 crore, up by 71%. PAT after forex was at Rs 166.6 crore as against Rs.16.4 crore in Q1FY09. However, the PAT before Forex was at Rs.109 crore, up 55%.

During the quarter, the company repurchased and cancelled FCCBs of face value of USD 1.8 million. In Q1 FY 2009-10, it had 8 ANDA filings in USA, taking the total cumulative filings to155. It also had 13 Dossier filings in Europe in Q1 FY 2009-10 , taking the total cumulative filings to 677.

In August, the company acquired Hyderabad-based Trident Life Sciences for about Rs.134 crore. It will fund the deal through internal cash flow and will repay the debt on Trident Life Sciences' books in the next six to nine months. This acquisition will give Aurobindo an opportunity to enter the injectables business as Trident is building a liquid injectables facility in Medak, Hyderabad, scheduled to go on stream in April 2011.

Since the last few days, Aurobindo has acquired quite a few approvals for its drugs from USFDA as well as Switzerland. And that is precisely why the stock price has remained up and is expected to remain firm in the coming days too. A strong company, it’s a long term stock for portfolio building.

Source: www.premiuminvestments.in (By S P Tulsian)

Intraday Trading Calls for 17th September

Indian Stock Market may open positive and remains good positive for the today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
NAGARJUN CONSTRUCT	Buy Above	144.75	149.35	154.00
	Sell Below	142.70	139.55	136.00
CRANES SOFTWARE	Buy Above	43.25	45.50	48.00
	Sell Below	41.75	39.45	37.00
REL POWER	Buy Above	164.80	169.20	174.00
	Sell Below	162.40	158.35	155.00
TATA STEEL	Buy Above	534.65	545.75	560.00
	Sell Below	527.15	518.55	505.00
EKC	Buy Above	220.10	226.45	232.00
	Sell Below	216.45	211.20	205.00
ORCHID CHEMICAL	Buy Above	160.05	165.30	170.00
	Sell Below	155.35	150.60	145.00
SELAN EXPLO	Buy Above	305.75	312.65	320.00
	Sell Below	301.20	295.20	288.00

Buy Purvankara Projects Ltd. (532891) CMP Rs. 120/- Short to Medium Term Target Rs. 175/-.

GOOD LUCK

Intraday trading Calls for 16th September

Indian Stock Market may open positive and remains good positive for the today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
NAGARJUN CONSTRUCT	Buy Above	144.75	149.35	154.00
	Sell Below	142.70	139.55	136.00
SUBEX LTD. (532348)	Buy Above	81.20	85.60	90.00
	Sell Below	79.40	75.60	71.00
REPRO INDIA	Buy Above	112.75	118.10	124.00
	Sell Below	109.50	105.10	100.00
AREVA T&D	Buy Above	316.75	322.10	328.00
	Sell Below	312.40	305.65	300.00
NATCO PHARMA	Buy Above	125.10	130.25	135.00
	Sell Below	121.70	116.55	111.00
RAJESH EXPORTS	Buy Above	66.20	69.55	73.00
	Sell Below	64.35	61.65	58.00
ROYAL ORCHID HOTEL	Buy Above	64.20	67.60	72.00
	Sell Below	62.40	59.35	57.00

GOOD LUCK

Q2 Advance Tax

Q2 ADVANCE TAX - CLEAR SIGNS OF MORE GREEN SHOOTS
By Ruma Dubey
When the Govt released the figures of tax collections for first five months of current fiscal, not too much was expected from the Q2 Advance Tax. Q1 collection, as expected was too high and a similar kind of flat mop up was expected in Q2. But clearly, things seem to have improved much more than what we all have probably construed.
The deadline for payment of this second instalment of the advance tax was September 15, 2009 and advance tax figures for Q2 have just started tricking in and a few of them have left our mouths open. Broking firm, CLSA has paid Rs.210 crore as against Rs.20.4 crore paid in Q2FY09. Clearly at that time, markets were down in the pits and now, things are looking up and hence this major improvement. The word on the street is that most of the broking firms and financial companies are expected to post a similar, robust Q2 Advance Tax.
Another big surprise came from Mahindra & Mahindra, which paid Rs.112 crore v/s a meagre Rs.17.50 crore in Q2FY09. This is again a reflection of the sector – the auto sector has bounced back from where it was a year ago and this figure of M&M is a reflection of precisely this.
The other big ‘mouth opener’ was TCS. It paid a whopping Rs.220 crore v/s Rs.53 crore in Q2FY09. This is also good news as it is pointer at improvement in the sector.
It has been a fantastic year till now for the PSU oil companies and this is further reiterated by the tax paid by BPCL at Rs.312 crore, compared to a meagre Rs.40 crore in Q2FY09.
Ambuja Cement paid Rs.150 crore v/s Rs.70 crore (YoY). The cement sector has had a robust Q1 and this better figure of Ambuja is a reflection of this good time.
Another private sector company which has done well and is obviously doing well too is Lupin - it paid Rs.49.70 crore v/s Rs.11.40 crore paid in Q2FY09.
In the banking sector, the collection has been robust to say the least - SBI paid Rs.1832 crore v/s Rs.1068 crore (YoY), Bank of India paid Rs.470 crore as against Rs.230 crore, alomsot double over last Q2; Yes Bank paid Rs.58 crore v/s Rs.33 crore, BoB paid Rs.412 crore v/s Rs.255 crore (YoY) which is a huge jump and Central Bank paid Rs.79 crore v/s Rs.53 crore. HDFC paid Rs.320 crore v/s Rs.290 crore (YoY) which is again a reflection of the realty sector which is yet to get out of the woods.
Videocon paid Rs.30 crore v/s Rs.25 crore, Bajaj Electrical paid Rs.21 crore v/s Rs.15.50 crore, showing that the consumer durable sector is yet to recover fully but surely a marginally higher tax figure indicates that green shoots have started coming up.
Figures from the other bigwigs are yet to come in but the initial data has been encouraging. It is a clear indication that things are indeed improving, slowly but surely. And it is this news which the market has also been celebrating today.
These better Q2 Advance tax numbers also indicate that we can look forward to a much better Q2 report card from India Inc and that is some good news indeed!

Source: www.premiuminvestments.in

Intraday Trading Calls for 15th September

Indian Stock Market may open flat to positive and remains flat 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
NAGARJUN CONSTRUCT	Buy Above	139.20	143.60	148.00
	Sell Below	136.70	132.75	128.00
PSL LTD.	Buy Above	171.60	177.40	182.00
	Sell Below	169.35	165.25	160.00
EXCEL INFOWAY	Buy Above	83.60	88.20	94.00
	Sell Below	81.10	77.55	74.00
AREVA T&D	Buy Above	288.75	295.20	302.00
	Sell Below	285.35	280.15	275.00
NATCO PHARMA	Buy Above	104.25	108.75	114.00
	Sell Below	102.05	97.55	92.00
ESSAR OIL	Buy Above	153.80	158.45	162.00
	Sell Below	151.35	147.15	143.00
IDFC	Buy Above	145.10	148.60	153.00
	Sell Below	143.20	140.15	136.00

Buy SEL Manufacturing Company Ltd. (532886) CMP Rs. 72/- Short to Med Term Target Rs. 120/-.

GOOD LUCK

Intraday Trading Calls for 14th September

Indian Stock Market 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
GODREJ INDUSTRIES	Buy Above	200.10	207.25	212.00
	Sell Below	197.15	192.35	186.00
PSL LTD.	Buy Above	172.60	178.20	184.00
	Sell Below	170.05	165.25	160.00
UNITED PHOSPH	Buy Above	170.65	175.50	182.00
	Sell Below	168.20	164.10	159.00
ROLTA INDIA	Buy Above	167.80	173.10	178.00
	Sell Below	165.20	161.35	156.00
MRO TEK(532376)	Buy Above	43.20	45.65	48.00
	Sell Below	41.70	39.20	37.00
TIMKEN (522113)	Buy Above	122.70	128.20	133.00
	Sell Below	120.10	115.35	110.00
LANCO IND. (513605)	Buy Above	47.10	50.20	53.00
	Sell Below	45.45	43.10	41.00

GOOD LUCK

Stock Idea: KPIT Infosystems Ltd.

Company overview—
KPIT Infosystems Ltd. was promoted by Kirtane & Pandit, an accountancy firm to add Information Technology to its suite of services. The group is one of the front-line Indian groups in the area of Information Technology, Business Consulting and Management. The company has its headquarters at Pune, and has two other India offices in Bangalore and Mumbai to house its various functions. The company was incorporated in 1989 and came out with its premium public offering (IPO) in February 1999 at Rs 90 per share, aggregating Rs 11.61 crore. KPIT has partnership agreement with CONSOR AG, a leading IT consulting and solution provider in Switzerland. CONSOR has been providing IT consulting services and solutions over the last 20 years. It provides technical consultation for project conception and design. The client list of CONSOR includes some of the biggest names in the Swiss market and will act as the front-end in the Swiss market. In May 2002, the IT subsidiary of engine major Cummins India-Cummins Infotech (CIL) has merged with KPIT Infosystems, for forming a mid-sized software developer, KPIT Cummins Infosystems.
Products & services—
KPIT Infosystems Limited provides software development, maintenance and implementation services for the banking & finance, consumer packaged goods, engineering, and telecommunications software sectors. Company’s strengths lie in Internet consulting and development, re-engineering & migration, software product development & management, business intelligence solutions, oracle applications, control automation and engineering solutions. Company has four core areas of its operations i.e. Advanced Technology solutions, Manufacturing Business IT, Diversified Financial services, BPO. Company is CMM Level 5, ISO 9001:2000 certified.
Advanced Technology solutions:
Company has expertise in product development and embedded systems at optimal costs and faster timeframe. Company offers turnkey technology solutions from pre-product design to its release and maintenance. These solutions encompass industries like Automotive Electronics, Industrial Automation, and Semiconductor Solutions. Company has presence in development of Supervisory Control and Data Acquisition systems, projects in automotive engine controls, development of high speed Video DAC for HDTV and video/graphics applications, I/O Cells Development, and open source (GNU) tool chain for a family of micro-controllers.
Manufacturing business IT:
Company has presence into development of our proprietary Business Intelligence tools, center of excellence of the Oracle Apps practice and the focused SAP practice, consulting projects in supply chain management, product lifecycle management, and architecture consulting. We have developed strengths in ERP Audits, Risk Management and Compliance consultancy services and Activity based costing.
Diversified financial services:
In the Diversified Financial Services domain we create applications through IT, support through BPO, and manage change through consulting. KPIT Cummins' has a strong lineage in the financial industry - being a descendant of KPCA, one of the country's most prominent accounting firms providing financial services to national and global banks since the past six decades. Our business consultants have extensive experience in securities services, retail banking, credit cards, fund administration, leasing and finance, insurance.
Business Process Outsourcing:
Company is involved into Knowledge Based outsourcing in Risk Management & Compliance Services, Sarbanes Oxley, SAS-70 Compliance, BS7799, Internal Controls, Audits related to Business & IT Processes, Business Intelligence & Data Analytics, Business Process Transformation Services, Skills & Rules Based, Finance & Accounting and Related Services, Transaction Management, General Accounting, Financial Reporting, Financial Analysis, Human Resource Managed Services, Compensation & Benefits, 401(K) & Retirement Services, Employee Stock Options (ESOP), Stock Options Management / Administration, Human Resourcing Activities, Human Resource Administrative Activities, Transaction Processing Services, Mortgage, Insurance. In technology based services company has presence in Security Operations Center, Network Operations Center and Technical Help Desk.

Recent developments—
KPIT Cummins has acquired substantial part of mechanical design services business of Harita TVS Technologies, a part of the TVS Group. Harita TVS offers design services under two segments viz, automotive and construction and industrial machinery.
KPIT Cummins Infosystems, product engineering partner to the automotive industry and VaST, a player in electronics virtualisation, have announced a partnership to deliver electronic virtualisation tools and specialised services to global automotive OEMs, and Tier-1 suppliers and ODMs. The partnership between VaST and KPIT focuses on methodology adoption services that speed up the deployment of advanced virtual prototyping tools and methodologies such as networked ECU Virtual-Hardware-In-the-Loop simulations. Electronic virtualisation is highly effective in reducing engineering costs while simultaneously enabling improved end-system software quality.
Valuation—
A relationship-based and vertical focused business model (Focus on two verticals: Manufacturing & Diversified Financial services) has helped the company to grow at a fast pace with top line revenue growth of 10x and increase in market capitalization of 15x over the last 5 years. Its 95 plus active global clients and strategic partnerships with some of the largest & renowned players in their respective areas are a testimony to its business model.
At CMP, stock trades at very attractive valuation of 6.42 P/E multiple of its FY2010 Estimated Earnings. We recommend investors to “Strong BUY” “KPIT Cummins” for medium to long-term investment horizon.

Source: Internet (Valuenotes by Abhishek Jain)