Investment Idea: Rallis India Ltd.

Rallis India Limited, a Tata group company and a leading agrochemical player in India, announced excellent financial performance for the year ended 31st March 2008.

YoY, the net sales of the company rose by just 8% at Rs.692.16 crore. This is probably one of the rare companies to post a fall in its total expenses, which actually come down by 12% and this too helped the bottomlines substantially. EBIDTA was up by a whopping 70% at Rs.164.90 crore. PBT rose 1.65 times at Rs.146.18 crore. OPM was up from 15.07% to 23.82%. The company’s taxation shot up by over 6 times to Rs.20.98 crore and this did not dent the PAT much, which was infact up by a whopping 115% at Rs.125.19 crore. NPM doubled from 9.04% to 18.09%.

On an equity of Rs.11.99 crore, the EPS, on a face value of Rs.10 per share, stood at Rs.98.02. The company declared a very generous dividend of 180% as against 80% last year.

Its superlative performance during the year has been driven by significant improvements in the operations. The company has also earned an exceptional income of Rs 87.38 crore in FY08 as against Rs. 54.12 crore in FY07. While it has benefited from the exceptional income, the operational improvement has contributed significantly to its profit growth. The performance of the company has been driven by the higher volumes of its key brands. Its recently launched brand Applaud has performed extremely well in the rice areas across the country and has become the number one choice of rice growers for control of Brown Plant Hoppers. The company launched four new products in the Indian market during the year namely Takumi, Sedna, Royal and Ishaan. It has obtained more than 20 new registrations in different countries across the globe. The company also obtained a joint registration for one of its key product in the US market during the year. Disha, the enterprise value creation programme and Apollo, the initiative to drive international business growth contributed well to the year’s performance.

Currently quoted at Rs.460, Rallis is a very good stock, stay invested. One can also invest for long term on declines.

Source: Sptulsian.com

Intraday Calls for 16th April

Indian Stock Market may open positive. Nifty can touch 5000 levels today.

Today's Intraday Picks:

ROLTA
PFC
PETRONET LNG
IOC
SATYAM COMPUTER
MPHASIS

For Levels and Targets download the file by CLICK HERE.

Results Today: AUTOMO COR G BASF INDIA BIO WHGO IND BRESCON CORP
FULFORD IND FUTURISTIC S IND MER BANK INNOCORP L MERCK LTD MINDTREE
NDTV LTD. PETRONET LNG POWER FINAN SUDAL INDUST TCFC FINANCE
TUTI CORIN TYPHOON HOLD VICTORIA MIL
Good Luck

Intraday Calls for 15th April

Markets may open with flat to positive but remains volatile and rangebound throughout the day.

Today's Intraday Picks: (Buy at decline):

RCOM
GMR INFRA
HIND OIL EXPLORATION
PETRONET LNG
PRITHVI INFO

Today's Important event is INFOSYS RESULTS.

Good Luck
Today's Results: ANKU DR PH AUTOMAT AXLE AZTECSOFT L BARODA EXTR.
CHOIC NTERN DEEP INDS ELANTAS HCL TECHNO INFOSYS TECH JAY BHAR MAR
JAYPEE HOTEL NAKODA TEXT NALIN LEA FI NETTLINX LTD RALLI INDIA
REL INDL INF SANWAR AG OI SHILP GRAVUE UPSURGE INVS ZEE ENTER ZEE NEWS

NOTE: This blog will not be updated from 16th March to 21st March.

Stock Ideas: Steel Strips Wheels Ltd.

A part of the Steel Strips group, the company manufactures the steel rims which come around the wheels of automobiles. It supplies to Maruti, Mahindra & Mahindra and Bajaj Tempo.

The company has posted its results for the year ended 31st March 2008. In real terms, the company has shown an improvement but a look at the margins indicates that there has been some pressure. YoY, the net sales rose 31% at Rs.259.64 crore. The company’s operating expense rose 32% and though the EBIDTA rose 24% at Rs.49.42 crore, its OPM was down from 20.12% to 19.03%. PBT was up 17% at Rs.23.36 crore and PAT rose 22% at Rs.12.56 crore. NPM was also down marginally at 6.57% from 7.07% last fiscal.

The company’s future growth path looks good. It is setting up a new plant for manufacturing wheels rims for passenger cars and multi utility vehicles near Chennai in Tamil Nadu, with an initial capacity of 3 millions wheel rims p.a. This is likely to start trial production in 1st quarter of year 2008-09.

The company’s focus is expected to be exports and it has already started going ahead in that direction. In April 2008, Renault of France, one of the largest manufacturer of cars in Europe and the leading manufacturer of light commercial vehicles, has given an export order to the company for supply of approx 1 million steel wheel rims over 5 years, valued at approx Rs.110 crore. This export order is for one of their new vehicles to be produced in Europe.

Prior to this, PSA Peugeot Citroen, Europe's number two automotive manufacturer had given another export order for the supply of over 70,000 steel wheel rims for their existing passenger car model, valued over Rs 4.50 crore p.a This is the second order from them, they had already placed another order for 13,75,000 steel wheel rims, valued at over Rs 75 crore.

The company expects its exports to grow over 200% in FY 08-09 and hopes to cross export of 4,25,000 wheels rims in the current fiscal. The rising cost of steel is sure to hike up its operating costs this fiscal too but surely, it will be able to pass it on to the consumers.
Quoted at Rs.170, stay invested.

Source: Sptulsian.com

Markets Today

Rally in index heavyweight Reliance Industries led rally on the bourses today. Improved Index of Industrial Production (IIP) data aided the surge. Firm Asian and European markets also boosted the sentiment. However, Infosys slipped ahead its Q4 March 2008 results due on 15 April 2008.
Power and capital goods stocks rose. IT stocks were mixed. Banking stocks rose. Bharat Heavy Electricals and Larsen & Toubro were major gainers from Sensex pack. Ambuja Cements and Infosys were major losers from Sensex pack. The market breadth was strong.
Asian stocks rose today, 11 April 2008, after Banc of America Securities upgraded the US semiconductor sector and Wal-Mart Stores Inc, the world's largest retailer, raised its profit forecast. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore, and Taiwan were up by between 0.61% to 2.92%. European markets which opened after Indian markets were firm. Frances CAC 40, Germanys DAX and UKs FTSE 100 rose in between 0.69% to 1.15%.
India's industrial output (IIP) rose 8.6% in February 2008 from a year earlier, rising from the previous month's upwardly revised 5.8% growth, data showed today.
The wholesale price index rose 7.41% in 12 months to 29 March 2008, accelerating from the previous week's annual rise of 7%, government data showed today, 11 April 2008. The data was announced at about 10:45 IST. The rate is the highest reading since 13 November 2004 when it was 7.68%. The annual inflation rate was 5.94% during the corresponding week of the previous year.
The 30-share BSE Sensex provisionally ended up 121.88 points or 0.78% at 15,816.98. The Sensex gained 262.14 points at days high of 15,957.24, hit in early afternoon trade. At the days low of 15673.67 Sensex lost 21.43 points in mid-morning trade.
The BSE clocked a turnover of Rs 5556 crore today, 11 April 2008 as compared to turnover of Rs 5,519.49 crore on 10 April 2008.
The S&P CNX Nifty was up 52.25 points or 1.1% at 4785.25 as per provisional figures.
The BSE Mid-Cap index was up 0.62% at 6,519.09 and the BSE Small-Cap index was up 0.59% at 8,078.78.
The market breadth was strong: on BSE, 1634 stocks gained, 1055 stocks declined and 59 stocks were unchanged.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries rose 3.34% at Rs 2,550.05. Reportedly, Reliance is in talks with several oil majors to sell up to 10% in its deep-water D6 block off India's east coast.
IT stocks were mixed on the penultimate trading session ahead of Infosys annual guidance on Tuesday 15 April 2008. Infosys, Indias second largest IT exporter by sales, declined 1.96% to Rs 1,424.95. Tata Consultancy Services (up 0.69% to Rs 907) and Satyam Computer Services (up 2.96% to Rs 436 ), rose.
Banking stocks were mixed after higher inflation data. Indias largest private sector bank by operating income ICICI Bank declined 1.71% to Rs 787.25. It came off from its high of Rs 822. However, State Bank of India (up 0.2% to Rs 1,665.10) and HDFC Bank (up 0.34% to Rs 1,330) edged higher.
Capital goods stocks rose. Larsen & Toubro (up 3.65% to Rs 2,776), Bharat Heavy Electricals (up 3.67% to Rs 1,830) and Suzlon Energy (up 0.22% to Rs 290.35) edged higher.
Power stocks rose. Tata Power Company (up 3.95% to Rs 1,247.05) and Reliance Power (up 0.82% to Rs 361.35), NTPC (up 0.27% to Rs 186.50) edged higher. India's second largest power utility by revenue Reliance Energy rose 2.22% to Rs 1,281.15 after the company said on 10 April 2008 it has spent about a third of the Rs 800 crore ($200 million) allocated for buying back shares from the stock market.
Oil & Gas stocks rose. Cairn India (up 4.38% to Rs 252.75), Gail India (up 4.24% to Rs 445), Reliance Petroleum (up 3.68% to Rs 181.95) edged higher.
Hindalco Industries (up 1.67% to Rs 176.35), Reliance Communications (up 1.83% to Rs 493.25), Bharti Airtel (up 0.69% to Rs 804.20), Mahindra & Mahindra (up 1.31% to Rs 620.25) , Tata Steel (up 0.92% to Rs 692.20) edged higher from the Sensex pack.
Ranbaxy Laboratories (down 1.58% to Rs 443.55), Grasim Industries (down 0.78% to Rs 2,550), Hindustan Unilever (down 2.02% to Rs 235.15) , ITC (down 1.83% to Rs 204.15) and Ambuja Cements (down 3.61% to Rs 117.60), ACC (down 0.05% to Rs 813.20) edged lower from Sensex pack.
The near term trigger for the market is Q4 March 2008 results of India Inc. Analysts will be closely watching what the company managements have to say about the outlook for the year ending March 2009 (FY 2009). Analysts will also scrutinize disclosures that companies may make regarding foreign exchange derivatives products that they have bought on the advice of their bankers. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt. As per estimates by a domestic brokerage, the mark-to-market losses of corporate India under forex derivatives could be around $4 billion.
What added to the gloom regarding corporate earnings was lower-than-expected provisional results announced by Bharat Heavy Electrical (Bhel), Indias biggest power equipment firm by revenue, recently. Slower than expected execution rate and project specific delays could be the reasons for the lower-than-expected growth in the top line of Bhel.
Recent government action to rein in inflation has also added to uncertainty about outlook on corporate profits. The government has scrapped import duty on crude edible oil and banned the export of rice and pulses. It also surged steelmakers to cut prices of the alloy.
Prospects of further outflow by foreign funds to offset losses incurred by them in the US sub-prime mortgage market continue to weight on the market sentiment. In the calendar year so far, FIIs sold shares worth a net Rs 11455.60 crore (till 9 April 2008), to offset their huge losses in the US sub-prime mortgage market.
As far as domestic liquidity is concerned, inflows to equity mutual funds and unit linked insurance plans (with high weightage for equity) have slowed after the sharp setback on the bourses in the past two months. As per provisional data, domestic funds bought shares worth a net Rs 594.48 crore on Thursday, 10 April 2008.
Powered byCapital Market - Live News

Intraday Calls for 11th April

Today Indian Stock Markets will depends on two major announcements. First is Inflation Numbers which is going to be announced at 10.30 am and second is Industrial Growth Numbers which will be announced at 12.00 noon today. But as all global markets trading in green so A positive opening expected and if Inflation rate declines then market may see a huge and strong rally today.

Today's Intraday Picks:

Inox Leisure

Nagarjuna Construction

RPL

IOC

HDIL

Satyam Computer

For Levels and Targets download the file by CLICK HERE.

Good Luck

Markets Today

The market moved between positive and negative territory due to lack of strong participation from investors ahead of industrial production and inflation data on Friday, 11 April 2008. Key indices, which had soared in mid-afternoon trade, fell sharply in the last hour of trade led by sharp decline in banking stocks.
Oil gas stocks were the star performers of the session. IT stocks slipped due to profit booking after an early surge. Mid-caps and small-caps outperformed the frontliners.
Asian markets, which opened before Indian markets, were mostly in green. But European markets, which opened after Indian markets, were in the red.
As per provisional data, the 30-share BSE Sensex fell 124.41 points or 0.79% at 15,666.10. The Sensex gained 258.44 points at days high of 15,953.54, hit in mid-afternoon trade. The index lost 135.31 points at the sessions low of 15,655.20, hit at the fag end of the trading session.
The CNX S&P Nifty fell 22.55 points or 0.48% at 4724.50.
The BSE Mid-Cap index was up 0.12% at 6,478.96 and the BSE Small-Cap index was up 1.13% at 8,031.06.
On BSE, 1713 stocks gained, 949 stocks declined and 67 stocks were unchanged.
BSE clocked a turnover of Rs 5496 crore as against Rs 5,331.37 on Wednesday, 9 April 2008.
India's second largest power utility by revenue Reliance Energy surged 6.30% at Rs 1252 after the company said on Wednesday, 9 April 2008 that it bought-back 176,871 equity shares of the company. Since the commencement of the buy-back on 25 March 2008, the company has so far bought back 20,38,551 equity shares aggregating Rs 250.75 crore. Earlier, Reliance Energy's board had approved the buyback of shares worth about Rs 800 crore in the first phase.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.94% at Rs 2465.
Indias largest private sector bank by assets ICICI Bank slipped 4.36% at Rs 801.50.
Indias largest engineering and construction firm by revenue Larsen & Toubro rose 1.08% at Rs 2665.70.
TCS (up 2.86% at Rs 901.70), Ambuja Cements (up 1.50% at Rs 122), Mahindra & Mahindra (up 1.13% at Rs 614.75), Tata Steel (up 1.03% at Rs 685.90), Hindalco Industries (up 0.64% at Rs 173.75) and Maruti Suzuki (up 0.35% at Rs 736), were the top gainers from the Sensex pack.
Ranbaxy Laboratories (down 4.33% at Rs 450.05), HDFC Bank (down 3.64% at Rs 1326), Jaiprakash Associates (down 3.19% at Rs 212.55), Bharti Airtel (down 2.95% at Rs 795.80) and Reliance Communication (down 2.69% at Rs 483), were the top losers from the Sensex pack.
Software firm Financial Technologies was down 0.89% at Rs 1,690 despite the company announcing the acquisition of South African technology company ICX Platform for $1.50 million.
Auto ancillary firm Banco Products India jumped over 17.25% to Rs 36.70 after it said its board would meet on 17 April 2008 to consider buyback of shares.
Private sector lender Development Credit Bank tripped 2.86% to Rs 88.45 after the management denied reports of a merger with a large bank for business expansion. The scrip had jumped over 10% to Rs 100.45 earlier in the day.
Mukesh Ambani-run oil refining firm Reliance Petroleum was up 3.17% at Rs 175.50 after reports hinted at the possibility of an early start of the companys oil refinery.
Offshore transportation services provider Global Vectra Helicorp soared 20% at Rs 85.95 after the company said it plans a rights issue in December 2008 to fund the expansion plans, including an investment of $65 million to raise fleet size to 29 by March 2009.
Key indices in China, Hong Kong, South Korea and Taiwan were up by 0.57% to 1.86%. However, indices in Japan and Singapore were down by 0.65% to 1.27%.
European markets, which opened after Indian markets, were in red. Key indices in UK, France and Germany were down by between 0.65% to 1.34%.
US stocks fell on Wednesday, 9 April 2008, after United Parcel Service Inc slashed its earnings forecast and oil prices hit a record high above $112 per barrel, darkening the outlook for corporate results. The Dow Jones industrial average was down 49.18 points, or 0.39%, ending the day at 12,527.26. The Standard & Poor's 500 Index was down 11.05 points, or 0.81%, finishing at 1,354.49. The Nasdaq Composite Index was down 26.64 points, or 1.13%, at 2,322.12.
Powered byCapital Market - Live News