The global management of LafargeHolcim at its first capital markets day event (after the merger) disclosed their medium-term targets.  By 2018, they target to increase FCF generation to a run rate of CHF3.5-4.0bn via cost synergies, capex reduction and other financial/tax synergies. From the India business standpoint, there are two key takeaways. First, India will contribute CHF150mn to a cost synergy target of CHF1,1 bn.

To meet the overall target of CHF1.1bn, it is essential that savings from the Indian operations are realised. Therefore, we believe there will be a greater focus from global management on achieving benefits from the Indian operations.

We believe this is positive for Ambuja as the Street has been skeptical in building these cost benefits in CY16F/CY17F estimates. Second, with stricter capex controls, particularly for new development projects, we believe there is a greater likelihood that over next two years, new cement capacity additions in India will be via the brownfield route rather than the greenfield route. Given ACEM is running at an average capacity utilisation of ~75%, which is quite evenly spread across regions, we do not think that capacity utilisation will be a constraint in delivering growth. We remain positive on Ambuja as we believe current valuations (on EV/tonne) are attractive, considering its strong retail franchise and size (second largest capacity, assuming 50% of ACC’s capacity).

About 100 companies hit their 52-week low on Friday as benchmark indices witnessed third straight day of selling. European Central Bank’s stimulus package fell short of markets’ expectations, while an interest-rate hike by the US Federal Reserve weakened investor sentiment.

Four front-line stocks —Tata Consultancy Services (TCS), IDFC, Adani Ports, and Bharat Heavy Electricals (BHEL) —hit their lowest levels since mid-2014.

TCS has fallen nearly 2% in the last three sessions and yielded -9% returns in the last one year. Analysts said investors’ preference appeared to be shifting towards Infosys from TCS, as India’s largest software company missed revenue forecast for the fifth consecutive quarter at the end of September.

In contrast, Infosys beat TCS’ quarterly revenue and volume growth for last two quarters as the Bangalore-based firm encounters the success of its turnaround plan. Infy shares have been flat for last one year, but has gained 12% since mid-July.

Bank of India hit 26-month low on Friday. The state-owned bank reported the highest quarterly loss in at least 14 years, Capitaline data showed.

BHEL and IDFC fell to the lowest since March 2014.

Other companies that touched new lows include Ashapura Intimates Fashion, Agro Tech Foods, Birla Cotsyn (India), Coffee Day Enterprises, DCB Bank, JM Financial, Jindal Stainless, Rallis India, Tribhovandas Bhimji Zaveri.

Zee Learn and Tree House share price gained as much as 10 per cent in the morning trade on Friday (Express Photo)

Zee Learn share price gained as much as 9.9 per cent in the morning trade on Friday after the Essel Group’s education arm, informed BSE that its Board has accorded in-principle approval for exploring consolidation options with pre-school chain Tree House Education and Accessories.

At 11.19 am, the share price of Zee Learn was trading 6 per cent up at Rs 45.05. The scrip opened at Rs 42.60 and had touched a high of Rs 46.80, in trade so far. Sensex was down 206 points at 25680.32.

Tree House share price surged 9.98 per cent to Rs 222.60 and hit upper circuit on Friday.

“The Board of Directors of the company has accorded in-principle approval for exploring consolidation options with Tree House Education and Accessories,” Zee Learn said in a BSE filing.

It further said: “The Board has constituted and authorised a committee to finalise the proposed consolidation and take all necessary steps, including appointment of necessary consultants.”

Zee Learn runs a chain of schools under brand names – Mount Litera Zee Schools, Kidzee pre-schools, Mount Litera World Pre-school and Mount Litera International School.

At 10.14 am, the share price of Dabur was trading 3 per cent down at Rs 269.60. (Photo:PTI)

Dabur share price fell as much as 3.5 per cent in the early trade on Friday after the FMCG major on Thursday informed BSE that its juice sales are likely to dip 10-15 per cent in October-November due to disruption of supplies from its plant in Nepal.

At 10.14 am, the share price of Dabur was trading 3 per cent down at Rs 269.60. The scrip opened at Rs 269.80 and had touched a high and low of Rs 272.60 and Rs 268.10, respectively, in trade so far. Sensex was down 167.28 points, or 0.65 per cent, at 25,719.34.

In a BSE filing, the company said, “We have lost some part of juice sale in October and November, 2015 and estimated juice sale during Q3 of FY2015-16 will be lower by 10 to 15 per cent against previous year. This is a onetime issue beyond our control and will have a near term impact on Q3 FY2015-16 performance,” Dabur said in a BSE filing.

There is no improvement in the eco-political situation in Nepal till date and the India-Nepal border continues to remain closed, it added.

Dabur has a plant at Birgunj in Nepal, which is currently catering only the domestic market there as it is unable to send supplies across the border.

The company said it has made alternate arrangements to overcome the hurdle.

“We had already ramped up the production of juices in Sri Lanka and Newai, Rajasthan and have also engaged with third parties to cater to our demand requirement for the month of December and going forward,” Dabur said.

In the past three months, Dabur India shares fell 2.51 per cent to Rs 277.95 on December 3. The scrip was at Rs 285.10 on September 3. Sensex gained marginally 0.47 per cent during the same period.

Dena Bank share price climbed as much as 5 per cent in the early trade on Friday after the public sector lender got board approval for dilution of government holding to up to 52 per cent (Express Photo)

Dena Bank share price climbed as much as 5 per cent in the early trade on Friday after the public sector lender got board approval for dilution of government holding to up to 52 per cent and raise capital up to Rs 2,500 crore from various bonds.

“To raise equity capital of the Bank by diluting GOI holding up to 52 per cent, on obtaining necessary approval government,” the bank said in a BSE filing.

At 9.42 am, the scrip was trading 3.34 per cent up at Rs 44.90. The share price of Dena Bank opened at Rs 44.80 and had touched a high and low of Rs 45.60 and Rs 44.35, respectively, in trade so far. Sensex was down 187.11 points at 25,699.51.

Government shareholding in the bank was 65 per cent at the end of September 30. Last year, the government allowed public sector banks to bring down its stake to 52 per cent so as to meet capital requirement.

The bank said it has got board approval to raise Additional Tier-1 (AT1) capital up to an amount of Rs 1,500 crore in one or more tranche, in one or more instruments.

It further added that the bank has got board approval to raise Tier 2 capital up to an amount of Rs 1,000 crore in one or more tranche, in one or more instruments.

(With inputs from PTI)