Posts in category All News
Sebi notifies norms to dilute powers of chairman (18-09-2015)
Wellness start-up CureJoy raises Rs 7 cr (18-09-2015)
More reforms in pipeline, no investment proposals held up: FM (18-09-2015)
Kharif sowing area up 1.6% as on Friday (18-09-2015)
Govt hikes import duty on edible oils by 5% (18-09-2015)
All policy planners want low interest rate: Arun Jaitley (18-09-2015)
UIDAI shifted to IT Ministry from NITI Aayog (18-09-2015)
Reiterate top-pick on Just Dial: Nomura (18-09-2015)
We believe Justdial’s new Android app launched last weekend is a step-jump improvement over the previous version across look and feel, flow, categorisation of Search Plus offerings and newer features.
This, coupled with the launch of an advertising campaign in multiplexes, should allay investor fears of a further delay in the commercial launch of Search Plus beyond September.
Further, our interaction with senior management handling Search Plus execution and Search sales for regions like Mumbai and Madhya Pradesh gives us comfort on execution focus, progress and monetisation possibilities in Search Plus, while maintaining a steady revenue CAGR of 25%+ in the Search business over FY15-19F. Reiterate top pick status.
While there has been a near two-quarter delay in the Search Plus commercial launch, we remain enthused by: 1) the lower likelihood of further delays given the new App launch/start of advertising in multiplexes; 2) Progress on Search Plus, with 28 services live across web/app platforms; 3) Search Plus taking shape as a one-of-a-kind metasearch plus marketplace offering, with tie-ups with third-party platforms for 10 of 28 services and both offline and online players (Flipkart /Snapdeal /Amazon) for online shopping, which will likely aid monetisation possibilities with less capital intensity.
Post-Insite buy, OW on Sun Pharma: Morgan Stanley (18-09-2015)
Sun Pharma has announced the acquisition of Insite Vision US for the sum of $48 m in equity value (net debt of $3.5n on December14).
The transaction is valued at around 6.3x FY14 sales. Sun will commence a tender offer at a price of $0.35/ share, a 30% premium to the implied share price of the terminated acquisition between Insite and a competitor bidder’s price. Insite’s lifetime high and low share prices are $0.93 in April 2011 and $0.25 in Sep 2010. Its last closing price was $0.34, and it has a market cap of $46.8 m.
Insite Vision generated sales of $8.2/30.8/21.6 m in FY14/13/12 respectively, with R&D of $9.1/11.5/15.4 m. FY13 sales included one-time sales of rights of $15.5 for Besivance, and FY12 included a minimum royalty true-up payment of $11.9mn for Azasite. For the six months ended Jun 15, sales / EBITDA / net income were $3.8 /-6.4 /-7.5 m respectively.
The company expects to close the acquisition by December 2015.
Insite Vision focuses on the development of specialty ophthalmic products. The company operates in two major ophthalmic segments —anti-infective ($2bn market size) and ocular inflammation and pain ($1.7bn market size).
Sun is the process of establishing branded ophthalmic business in the US. It actively targets to expand its basket of specialty products and increasing sustainable source of revenue.
US Fed decision to keep interest rate unchanged lifts Indian markets: D-St focus shifts to RBI, China (18-09-2015)
WITH the US Fed maintaining a status quo on interest rates, the Street has now shifted its focus towards a likely rate cut by RBI later this month.
While the Street cheered the US central bank’s decision to keep the Fed funds rate unchanged near zero with the Indian benchmarks rallying nearly 1%, experts believe that a slew of important developments, including the data coming out of China as well as the financial health of India Inc, will continue to drive the equity market going ahead.
According to Hitesh Agrawal, head, research, Reliance Securities, investors’ focus will now shift back to global economic growth challenges in general. “For Indian equities, all eyes will now be on the RBI monetary policy on September 29,” said Agrawal.
After Friday’s recovery that helped benchmark indices close the week more than 2% higher, market participants expect more consolidation. “Our markets might find some amount of stability with a hope that RBI might consider a cut in the repo rate during the upcoming meeting,” said Rajesh Cheruvu, CIO, Royal Bank of Scotland.
On Friday the 30-share Sensex closed at 26,218.91, clocking in weekly gains of 608.7 points while the broader Nifty added 192 points to close at 7,981.90. With this rebound, the markets are now trading close to their long-term valuations of 15 times one-year forward earnings. Bank of America Merrill Lynch expects a rate cut as the four pre-conditions — greater transmission of lending rate cuts to consumers by banks, low inflation,monsoon out-turn and status quo in the US Federal interest rates — seem to have been met.
However, it also said that with a possible Fed rate hike now postponed to December 2015, capital flows could stall till till December.
Markets experts also point out that concerns about China would have a higher bearing on the Indian markets in the near-term, even more than a interest rate hike by the US Fed.
Saurabh Mukherjea, CEO of Institutional Equities, Ambit Capital, pointed out that events like further devaluation of yuan would pose bigger threat to domestic markets.
He points out that the rise of EM equity as an asset class around 12-13 years ago was on the back of a rising China. Most emerging markets have witnessed good inflows from foreign investors over the last 10-12 years.
‘It follows, therefore, that concerns about China can impact the perception of investors about the very concept of EM equity as an asset class. Most emerging markets have started to witness outflow of foreign funds already. This trend is expected to continue in the days to come and India is unlikely to ride this out without getting affected,” added Mukherjea .
After a prolonged selling streak, the Indian stock markets found some relief on Friday in terms of Foreign Portfolio Investors(FPIs). The FPIs who sold more than $3 billion worth equities since August bought shares worth $98 million, provisional data in the stock exchanges showed. This is the best buying by FPIs in nearly one month.