Stock Idea: JB Chemicals & Pharma

JB Chemicals & Pharma. Ltd— BUY—66—INR
Sector — Pharmaceuticals
Regd.Off.— Neelam Centre, Hind Cycle Road, Worli, Mumbai - 400030
Listed — NSE, BSE.
Company overview—
J. B. Chemicals & Pharmaceuticals Ltd. (JBCPL) is one of India’s fastest growing, professionally managed, global pharmaceutical companies manufacturing a wide range of innovative specialty medicines for domestic and international markets. A flagship company of the Unique Group, it is also known as "Unique". J. B. Chemicals & Pharmaceuticals Ltd. known to many, as Unique Pharmaceutical Laboratories is one of India’s leading global pharmaceutical companies. The company manufactures and markets a wide range of pharmaceutical formulations, herbal remedies, bulk drugs, intermediates and radio-diagnostics. J B Chemical & Pharmaceuticals Ltd. is a customer driven, financially sound company, consistently enhancing value for its shareholders by rewarding them with healthy dividends year after year. It has a large global presence with operations in over 50 countries across the globe. Over 50% of the Company’s revenue comes from exports to USA, Europe, Latin America, Africa, and South East Asia. To further enhance its strength in foreign markets, company has also entered into joint venture and strategic tie-ups with key partners in USA etc.
Products & Services—
Its product portfolio consists of pharmaceutical specialties in various dosage forms, herbal remedies, diagnostics, generic drugs, active pharmaceutical ingredients (APIs). Some of the products within these categories enjoy leadership positions in the Indian and foreign markets. Company is strategically focused on R&D and totally committed to respond promptly to market needs by developing quality products at affordable prices for the masses. With a strong base of 11 state-of-the-art manufacturing units (including 3 US FDA approved Tablet & API plants) and two DSTC approved R&D centers, the company has entered a dynamic phase of expansion into newer and faster growing therapeutic segments such as anti-diabetics, CNS and Respiratory. It manufactures basic chemicals, petrochemicals, pharmaceuticals, photographic chemicals and agro-based products. Its product portfolio includes metrogyl, rantac (a ranitidine-based formulation), and nicardia (a cardiac care medicine). It has a fully automated 100 per cent EOU lozenges plant of capacity 400 million units par annum at Daman, manufacturing hard catidies.
J. B. Chemical & Pharmaceuticals Ltd.'s top four brands are Doktor Mom, Metrogyl, Rantac, Nicardia, OF. API products are not offered in countries where valid patents exist. However, final responsibility with respect to third party's patent rights in a specific country lies exclusively with the user." In formulations company manufactures ANTHELMINTICS, ANTI DIARRHOEAL, ANTIBIOTICS & CHEMOTHERAPEUTIC AGENTS, ANTIDIABETIC, ANTIHISTAMINE SYSTEMIC, CARDIOVASCULAR/CARDIC CARE, G.I/PROKINETIC, G.I/ANTIULCERANT, NASAL DECONGESTANTS, NEURO / PSYCHIATRY, NSAID's/ANTIRHEUMATIC, NUTRITIONAL & TONICS, RADIODIAGNOSTICS, SEX STIMULANTS, UROLOGY, COUGH & COLD, TROPICAL PREPRATIONS, TROPICAL ANTIBACTERIAL/ANTISEPTIC, DENTAL PREPARATIONS, MULTIVITAMINS & REJUVENTORS, SEX STIMULANTS, HERBAL PREPARATIONS.
Research & Developments—
R&D is the lifeblood of J. B. Chemicals & Pharmaceuticals Ltd. Company’s scientists has discovered 20 New Molecules in NSAID therapeutic segments. Two state-of-the-art R&D laboratories at Mumbai & Ankleshwar match superior standards. Its current and future R&D activities focus on development of Generic Products for Regulated Markets.
Recent News—
Company has received US food and drug administration (USFDA) approval to the abbreviated new drug application (ANDA) for Cetirizine 5 mg. and 10 mg. tablets. These formulations have been found to be bioequivalent to the innovator McNeil Consumer Healthcare’s product "Zyrtech". Cetirizine tablets are now sold over the counter (OTC) in USA. It has sales of about USD 1.4 billion in USA prior to it became OTC product. Company would manufacture these formulations at its state of the art manufacturing facility at Panoli (Gujrat), which has already been classified as acceptable and GMP compliant by USFDA. Company is in the process of negations with its marketing partners in USA for the launch of these products in USA. The approval has potential to further strengthen the company’s Rest of the World (RoW) business that has shown good growth in the last several years.
Valuation—
At current market price, stock is trading at 5.6 P/E multiple of its FY2011 estimated earnings. We recommend investors to Buy "JB chemicals and Pharmaceuticals ltd." for medium to long-term investment horizon.

Source: Internet (Valuenotes by Abhishek Jain)

Intraday Trading Calls for 18th February

Indian Stock Market may open flat to positive and remains flat with high volatility for the day today. A good positive closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SASKEN COMM.	Buy Above	180.55	186.35	192.00
	Sell Below	178.05	173.20	168.00
APTECH LTD.	Buy Above	173.20	178.55	184.00
	Sell Below	171.15	167.35	162.00
IDFC	Buy Above	150.00	154.75	158.00
	Sell Below	148.55	144.20	140.00
ATLANTA	Buy Above	190.70	196.25	202.00
	Sell Below	188.05	183.10	178.00
GODREJ INDUSTRIES	Buy Above	161.20	165.70	170.00
	Sell Below	159.30	155.60	151.00
PRISM CEMENT	Buy Above	52.00	54.15	56.00
	Sell Below	51.05	49.55	48.00
WALCHAND NAGAR IND	Buy Above	250.00	258.65	268.00
	Sell Below	244.55	237.15	230.00

GOOD LUCK

Stock Idea: KEC International Ltd.

This RPG group company, a global leader in the project management business has posted a good set of results for the third quarter ended 31st Dec 2009.
The company’s net sales were at Rs. 937.66, up 8% on a QoQ and 6% on a YoY. PBT was up at Rs.63.61 crore, up 15% on a QoQ and 66% on a YoY. Net profit QoQ grew 15% and 68% on a YoY at Rs.41.99 crore. Growth in topline was lackluster as most of the orders came in only during the end and hence did not have enough time to be executed and get reflected in the numbers.
The company’s order book is at an all time high at Rs. 6051 crore as on date, of which Rs.1800 crore came in during Q3. Of this 53% comes from the South Asia market and the balance 47% from the International market. Most of these are to be executed in FY10.
Raw material costs have started rising and we can see some this getting reflected in Q3 itself. It rose sequentially from Rs.430.97 crore to Rs.479.94 crore. And given the rate of inflation, this cost component is only expected to rise further.
For 9MFY10, net sales was at Rs.2192.25 crore and net profit was at Rs.116.57 crore. As against this, for 12MFY09, the net sales was at Rs.3427.67 crore and net profit was at Rs.116.29 crore. So the company’s net profit will surely surpass that of FY09 and that makes it a safe bet.

Source: Internet (premiuminvestments.in by S P Tulsian)

Stock Idea: Indian Bank

Indian Bank posted, for the third quarter ended 31st Dec 2009, a YoY 11.44% rise in total income at rs.2308.29 crore. Net Interest Income improved by 21.31% to Rs.872.97 crore. Operating profit was up 19.35% at Rs.690.67 crore. Net Profit was at Rs. 441.38, up 25.86%. What really helped the bottomline was cost control of deposits. It also focused more on the quality of credit and concentrated more on sectors like sugar, power, pharma, cement, steel of different sectors. The company remains conservative in the retail sector but prefers to lend towards education and gold, where the bank says recovery is around 96%.
NIM was at 3.82% compared to 3.91% in Q3FY09. Its Capital Adequacy as per Basel I norms improved to 13.15% against 12.68 % as in Q3FY09. And as per Basel II norms, it improved to 13.75% v/s 13.09% YoY.
Gross NPAs declined to 0.89% (Rs.514.27 crore) as on 31.12.2009, from 0.92% (Rs.462.46 crore) as on 31.12.2008 and Net NPAs was maintained at 0.16%. During the nine months, total NPA recovery was Rs.471.07 crore.
Total Business of the Bank measured in terms of total deposits and gross advances increased to Rs.1,42,200 crore, up from Rs.1,20,120 crore recording a growth of Rs.22,080 crore (18.38%). Total Deposits rose by 21.64% (Rs.15,072 crore) to Rs.84,732 crore from Rs.69,660 crore. Gross Advances increased by 13.89% (Rs.7008 crore) to Rs.57,468 crore from Rs.50,460 crore.
Total number of branches in India as at 31/12/09 stood at 1702 branches. It opened 60 new branches till Q3FY10 and by Q4, hopes to open 40 more.
Indian Bank for 9Mfy10 had a total revenue of Rs.6713.05 crore and net profit of Rs.1145.03 crore. For FY09, total revenue was at Rs.6830.33 crore and net profit was at Rs.1245.32 crore. Clearly the bank will end FY10 on a much higher note, net profit is expected to be around Rs.1450 crore.

Source: Internet (premiuminvestments.in by S P Tulsian)

Stock Idea: Ashok Leyland

Despite the impending fear of an interest rate hike and expectation of an excise duty hike in the Budget, Ashok Leyland has been moving strong on the bourses. If 2009 was a year dominated by the passenger cars sales surge, looks like 2010 would be year when we will see the commercial vehicle segments showing robust growth.
India’s second- biggest truck maker reported an over times YoY rise in truck sales in January 10’ at 7,871 units from 2,444 units a year earlier. And the god news is that it has reduced the number of vehicles in stock by 1,200 in January and this cut in inventory will continue into March too. As per the new plans, the company aims to hold no more than three weeks of stocks.
Its third quarter ended 31st Dec 2009 was its best for the entire fiscal. If it had begun Q1FY10 on a very somber note, the indications are that it will end the year on a high note. In Q3, sales and net profit have almost doubled from that we saw in Q1. There has been a significant improvement in the profit margins too. OPM for Q3 was at 11.41%, up from 10.82% sequentially and from 7.86% in Q1. NPM has also risen, from a meager 0.85% in Q1 and 5.62% in Q2 to 5.76% in Q3. Apart from the surge in sales, what has also helped is the consistent reduction in operating costs. Its interest costs, which were a matter great concern earlier are now significantly low.
For 9MFY10, the company’s net sales stood at Rs.4305.66 crore v/s Rs.5981.07 crore for 12MFY09. Net profit was at Rs.201.01 crore v/s Rs.190 crore. There is no doubt that the company would end FY10 on a very high note. But at the same time also keep in mind impact of the base effect, which will automatically make FY10 look extremely good.
Higher steel and tyre costs might prompt the company to hike its prices, which when compared with Tata Motors, is already on the higher side. It is expected to end FY10, with a NPM, which would be over 10%. The outlook looks bright but it has to watch out for increasing competition from M&M and MAN.
Source: Internet (premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 17th February

Indian Stock Market may open positive and remains positive with high volatility for the day today. A good positive closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SASKEN COMM.	Buy Above	178.65	184.55	190.00
	Sell Below	176.45	172.10	168.00
GODREJ INDUSTRIES	Buy Above	148.75	154.35	160.00
	Sell Below	147.35	144.20	140.00
IDFC	Buy Above	149.20	153.40	158.00
	Sell Below	147.40	143.15	140.00
ATLANTA	Buy Above	192.60	199.25	205.00
	Sell Below	190.00	185.10	180.00
VIDEOCON INDUSTRIES	Buy Above	220.10	228.05	235.00
	Sell Below	216.35	210.25	205.00
SELAN EXPLO	Buy Above	430.10	440.35	450.00
	Sell Below	422.35	415.05	405.00
ONMOBILE	Buy Above	370.25	378.90	390.00
	Sell Below	364.50	357.15	348.00

Short To Medium Term Delivery Buy: Natco Pharma (524816) CMP Rs. 127/- Target Rs. 155 - 170/-.

GOOD LUCK

Intraday Trading Calls for 16th February

Indian Stock Market may open positive and remains positive with high volatility for the day today. A good positive closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SASKEN COMM.	Buy Above	178.65	184.55	190.00
	Sell Below	176.45	172.10	168.00
MBL INFRA	Buy Above	212.75	218.25	224.00
	Sell Below	209.35	203.70	198.00
IDFC	Buy Above	148.25	152.30	156.00
	Sell Below	146.70	143.15	140.00
ATLANTA	Buy Above	190.60	196.75	204.00
	Sell Below	187.45	182.55	178.00
JYOTI STRUCTURE	Buy Above	172.10	177.45	182.00
	Sell Below	169.35	165.25	160.00
JAI HIND PROJECTS	Buy Above	175.10	180.60	186.00
	Sell Below	172.40	168.10	163.00
APTECH	Buy Above	171.55	178.40	184.00
	Sell Below	169.05	164.15	160.00

GOOD LUCK