The Most Valuable Commodity Is Information!

Posts in category Financial Express

Glenmark share price jumps over 4% on tentative USFD nod for Lacosamide Tablets (30-10-2015)

Glenmark Pharma share price

Glenmark Pharmaceuticals share price gained as much as 4.5 per cent in the morning trade on Friday after the company informed stock exchanges that Glenmark Pharmaceuticals Inc., USA has been granted tentative approval by the USFDA for its Lacosamide Tablets. (Express Photo)

Glenmark Pharmaceuticals share price gained as much as 4.5 per cent in the morning trade on Friday after the company informed stock exchanges that Glenmark Pharmaceuticals Inc., USA has been granted tentative approval by the United States Food & Drug Administration (USFDA) for its Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg, the generic version of Vimpat Tablets, 50 mg, 100 mg, 150 mg and 200 mg of UCB, Inc.

At 10.18 am, Glenmark Pharmaceuticals shares were trading 3.90 per cent up at Rs 982.20. The scrip opened at Rs 970 and had touched a high and low of Rs 987.55 and Rs 970, respectively, in trade so far.

Glenmark will market this product upon receiving final approval of its Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg ANDA. The patent listed in the Orange Book for Vimpat Tablets, 50 mg, 100 mg, 150 mg and 200 mg is scheduled to expire on March 17, 2022.

The Vimpat market achieved annual sales of approximately $691.0 million, according to IMS Health sales data for the 12 month period ending September 2015.

Glenmark’s current portfolio consists of 102 products authorised for distribution in the US marketplace and 64 ANDA’s pending approval with the USFDA. In addition to these internal filings, Glenmark continues to identify and explore external development partnerships to supplement and accelerate the growth of its existing pipeline and portfolio.

All News   

Nestle India share price falls on Q3 results (30-10-2015)

Nestle India shares

Nestle India reported a 60.1 per cent decline in its standalone net profit figures at Rs 124.20 crore for the third quarter ended September 2015. (Photo: Reuters)

Nestle India share price fell over 1 per cent in the early trade on Friday after the company reported a 60.1 per cent decline in its standalone net profit figures at Rs 124.20 crore for the third quarter ended September 2015. Nestle India posted net profit of Rs 311.29 crore in the same period last fiscal.

At 9.32 am, Nestle India shares were trading 1.19 per cent down at Rs 6,207.35 apiece. The scrip opened at Rs 6,220 and had touched a high and low of Rs 6,231 and Rs 6156.50, respectively, in trade so far. Sensex was down 0.02 per cent at 26,834.10.

During the period under review, net sales declined 32.12 per cent to Rs 1,736.20 crore as against Rs 2,557.80 crore a year ago.

“Export sales decreased 6.4 per cent, which are impacted by the Maggi noodles issue and lower sales to Nepal due to the blockade of the border in the last week of September 2015,” the company said.

The company follows January-December financial year.

The promoters holding in the company stood at 62.76 per cent while institutions and non-Institutions held 17.05 per cent and 20.19 per cent respectively.

In the past one year, the share price of Nestle India gained around 2.89 per cent to Rs 6282.10 on October 29 while the benchmark index Sensex slid 0.96 per cent during the same period.

All News   

Live: Sensex, Nifty open flat; Nestle India down over 1%, Dr Reddy’s up over 1% (30-10-2015)

Sensex, Nifty, BSE, NSE

The BSE Sensex and NSE Nifty opened on a flat note on Friday. Sensex opened 40.34 points up at 26,878.48. Nifty opened 11.8 points up at 8,123.55.(Photo: Reuters)

9.44 am: Blue Star has entered into a Joint Venture (JV) in MEP contracting business with WJ Towell & Company LLC, Oman, by acquiring 51 per cent stake in the JV entity, Blue Star Oman Electro-Mechanical Company LLC. The share price of Blue Star was trading 1.49 per cent down at Rs 374. Sensex was down 2 points at 26,835.

9.40 am: Future & Option (F&O) total turnover stood at 5,16,209.36 crore on October 29 and the total number of contracts traded on the day were 1,96,23,236. 

9.38 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 2039.79 crore in index futures and options segments, as per Thursday’s data, October 29, 2015.

FIIs were net sellers of index futures to the tune of Rs 47.81 crore and they bought index options worth Rs 2087.60 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 997.74 crore, while they bought stock options worth Rs 3.48 crore.

9.16 am: Sensex was down 6.36 points at 26,831.78. Nestle India stocks will be in focus on Friday after the company post market hours on Thursday reported a 60.1 per cent decline in its standalone net profit at Rs 124.20 crore for the third quarter ended September 2015 after Maggi noodles controversy. Nestle shares were down 0.99 per cent at Rs 6,220 apiece in the early trade.

9.15 am: The BSE Sensex and NSE Nifty opened on a flat note on Friday. Sensex opened 40.34 points up at 26,878.48. Nifty opened 11.8 points up at 8,123.55.

Dr Reddy’s Lab will also be in focus as the drug major on Thursday reported 25.74 per cent increase in its consolidated net profit at Rs 721.89 crore for the second quarter ended September 30, 2015.

Global Markets

New York: US stocks ended slightly lower on Thursday as the market digested disappointing tech earnings reports and the potential for an interest rate hike in December.

London: Britain’s top share index fell on Thursday, underperforming European indexes, after a spate of disappointing earnings updates and a decline in copper prices that put pressure on mining shares.

Tokyo: Japanese stocks dipped in trade on Friday morning after the Bank of Japan announced that it would keep monetary policy steady.

All News   

ICICI Bank, ITC, Nestle India among 13 stocks in focus today (30-10-2015)

ICICI Bank

ICICI Bank will announce its second quarter results on Friday.

The BSE Sensex and NSE Nifty opened on a flat note on Friday. Sensex opened 40.34 points up at 26,878.48. Nifty opened 11.8 points up at 8,123.55.

Below are the stocks that are likely to be in focus today.

Nestle India: Nestle India on Thursday reported a 60.1 per cent decline in its stand-alone net profit at Rs 124.20 crore for the third quarter ended September 2015 after Maggi noodles controvesry. The company was forced to withdraw Maggi from market and stop production in June following tests by certain labs allegedly finding lead and MSG beyond permissible limits.

Dr Reddy’s Lab: The drug major on Thursday reported 25.74 per cent increase in its consolidated net profit at Rs 721.89 crore for the second quarter ended September 30.

ICICI Bank: The private sector lender will announce its Q2 results on Friday. For the first quarter ended June 30, 2015, the bank posted net profit of Rs 2,976.16 crore, up 12.08 per cent, against Rs 2,655.30 crore in the corresponding quarter a year.

HCL Technologies: The global IT services provider on Friday after market hours on Thursday announced that it has acquired Minneapolis-based PowerObjects – a leading North American provider of Microsoft Dynamics CRM. This will bolster HCL’s global applications business, which offers transformational programs and complex application management for a myriad of clients’ technology landscapes.

Cipla: The drug major has entered into an agreement to sell its entire stake in Biomab Holding to Biomab Brilliant Ltd for a consideration of USD 25,775,000 to focus on biological segment under its arm Cipla BioTec.

ITC: The FMCG major will also announce its Q2 results on Friday. ITC posted net profit of Rs 2265.44 crore for the quarter ended June 30, 2015 against Rs 2,186.39 crore in the same quarter last year.

Spicejet: SpiceJet’s chief operating officer Sanjiv Kapoor on Thursday put in his papers, nearly ten months after original promoter Ajay Singh took over the reins of the budget airline.

Grasim Industries: The Aditya Birla Group firm on Thursday reported 17 per cent growth in consolidated net profit at Rs 488.50 crore for the quarter ended September 30, 2015, helped by higher sales, among other factors.

Glenmark Pharmaceuticals: The drug company reported 19.81 per cent increase in consolidated net profit to Rs 197.78 crore for the second quarter ended September 30, driven by good growth in India, US and Europe.

Jaiprakash Associates: The company on Thursday said CCI has found that the company is not enjoying dominant position in the real estate market of Noida and Greater Noida. By a majority order, the Competition Commission of India (CCI) has dismissed charges of dominant market position abuse against Jaiprakash Associates in the real estate sector.

Emami: The FMCG company on Thursday reported 32.97 per cent decline in consolidated net profit at Rs 61.34 crore for the second quarter ended September 30, 2015 on account of amortisation of Kesh King intangibles.

Rajesh Exports: Rajesh Exports on Thursday said it has bagged a Rs 125-crore order of special range jewellery from Valcambi, for the European market.

Jet Airways: The airline on Thursday said it has repaid loans worth Rs 558 crore in the September quarter and expects its debt burden to come down as business improves.

All News   

Sensex, Nifty may open flat with negative bias on Asian cues; Nestle India, Dr Reddy’s in focus (30-10-2015)

IT stocks Sensex

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Friday tracking Asian markets. (Photo: Reuters)

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Friday tracking Asian markets.

Asian shares were down on Friday and on track for a weekly loss as investors, anxious over faltering global growth, fretted about the possibility that the US Federal Reserve could still raise borrowing costs this year.

Hang Seng, Shanghai and Nikkei were down 0.49 per cent, 0.40 per cent and 0.15 per cent, respectively.

SGX Nifty was amost flat, up 0.08 per cent at 8,140.

Back home, Sensex and Nifty fell for a fourth consecutive day on Thursday as market participants continued to square-up positions following last trading session of the October derivatives expiry. Concerns that likely Fed rate hike in December would see outflows from emerging markets, too dampened sentiments. Sensex closed 201 points down at 26,838.14 while Nifty closed 59.45 points down at 8,111.75.

Nestle India stocks will be in focus on Friday after the company after market hours on Thursday reported a 60.1 per cent decline in its stand-alone net profit at Rs 124.20 crore for the third quarter ended September 2015 after Maggi noodles controversy.

Dr Reddy’s Lab will also be in focus as the drug major on Thursday reported 25.74 per cent increase in its consolidated net profit at Rs 721.89 crore for the second quarter ended September 30.

All News   

InterGlobe Aviation IPO is overbooked (29-10-2015)

InterGlobe Aviation raised Rs 832.02 crore on Monday by allotting more than 1 crore shares to anchor investors in a pre-IPO placement at a price of Rs 765 per share. (Reuters)

InterGlobe Aviation raised Rs 832.02 crore on Monday by allotting more than 1 crore shares to anchor investors in a pre-IPO placement at a price of Rs 765 per share. (Reuters)

The initial public offering (IPO) of InterGlobe Aviation, which operates low-cost airline Indigo, ended on a high note on Thursday with subscriptions of R19,200 crore against the issue size of Rs 3,100 crore, as of 6.30 pm.

The issue saw tremendous response from qualified institutional buyers (QIB) and high net-worth individuals (HNIs) but retail investors and employees were less enthusiastic, probably because they felt the scrip was priced expensively.

So far this calendar year, 16 companies have raised close to Rs 7,500 crore from the primary market, the highest in last four years, data from Prime Database showed. The collections from the InterGlobe issue will take the IPO collections past the Rs 10,000 crore mark. However, of the last 17 IPOs, including that of InterGlobe, seven issues failed to see full retail subscription. InterGlobe’s IPO will be the biggest primary market offering since Bharti Infratel’s Rs 4,100-crore-plus public issue in December 2012, statistics compiled by Prime Database showed.

Gr10

InterGlobe’s IPO is also the first by an Indian airline since the 2006 listing of Deccan Aviation, which was later taken over by Kingfisher Airlines. Jet Airways, then India’s largest private airline, raised Rs 1,900 crore in February 2005.
Sources in the know said investor Rakesh Jhunjhunwala placed a bid worth Rs 400 crore in the HNI category.

Many large, well-known corporate bodies as well as treasuries of various private sector banks and non-banking financial companies also participated in the issue, sources added. Large foreign brokerages such as Goldman Sachs and Credit Suisse, as well as hedge-funds like Factorial Capital, which was allowed re-entry into Indian markets in June 2015, also bid for InterGlobe’s shares, sources added.

V Jayasankar, senior ED and head, equity capital markets, Kotak Investment Banking, said the issue received tremendous response from all category of investors. “The book has a good mix of domestic and foreign institutional investors. In terms of retail book, we have received bids more than Rs 1,000 crore,” Jayasankar said.

Gr11

Citigroup, JPMorgan and Morgan Stanley are the global coordinators for the issue while Barclays Capital, Kotak Investment Banking and UBS are the book-running lead managers for the issue.

The QIB portion was subscribed nearly 18 times as of 8 pm. A little over 15.17 crore shares were subscribed against 85.23 lakh shares reserved for this category. The non-institutional category comprising HNIs was subscribed 3.6 times on the last day. HNIs bid 2.078 crore shares against 58.2 lakh shares reserved.

The retail book was subscribed close to 92% of the shares reserved for the category. Retail investors, whose investment should not exceed a total Rs 2 lakh as per Securities and Exchange Board of India rules, bid for 1.25 crore shares against 1.35 crore on offer, data showed. The employees’ category was subscribed a meagre 12.5% of the 22 lakh shares on offer.

InterGlobe Aviation raised Rs 832.02 crore on Monday by allotting more than 1 crore shares to anchor investors in a pre-IPO placement at a price of Rs 765 per share. Names include Fidelity, the Singapore government, Merrill Lynch, Credit Suisse, Goldman Sachs, HDFC Mutual Fund, DSP BlackRock, and Abu Dhabi Investment, among others.

The company set a price band of Rs 700-765 per share for the three-day offering that ended on Thursday. At the upper price band, the company’s market capitalisation stands at nearly Rs 27,000 crore and ranks 22nd among the list of world’s most valued airline companies. US-based Delta Airlines is the world’s most valued airline company with a Rs 2.61-lakh-crore market capitalisation.

The IPO consists of a fresh issue of Rs 1,272.2 crore, and an offer for sale by promoters and existing shareholders to the tune of Rs 1,750 crore. Existing shareholders will sell a little more than 2.28 crore shares instead of the 2.61 crore share sale planned earlier.

All News   

FPIs to pay 5% tax on interest from offshore rupee bonds (29-10-2015)

Domestic companies waiting to tap the offshore market for funding by issuing rupee bonds would now find it easier as the government has clarified that foreign portfolio investors will have to pay only 5% withholding tax on their investments in offshore Indian rupee bonds.

Further, the government also said that possible capital gains arising out of movement in exchange rate would be exempt from tax.

For instance, an FPI standing to gain simply from the appreciation of the rupee against the dollar will not have to bear a tax burden on such a profit.

“In so far as taxation of interest income from these INR off-shore bonds in the case of non-resident investors is concerned, it is clarified that withholding tax at the rate of 5%, which is in the nature of final tax, would be applicable in the same way as it is applicable for off-shore dollar denominated bonds,” the Central Board of Direct Tax said in a release.

However, the legislative amendment to enable these tax breaks will be proposed only next year through the Finance Bill, 2016.

“The market has been waiting for this clarity and now that it has come, we will see greater interest. Although the legislative amendments will remain, the notification is enough to elicit interest from foreign investors,” said Ajay Manglunia, executive vice-president of fixed income at Edelweiss Securities.

Following the Reserve Bank of India’s move to allow Indian companies to issue rupee bonds in the offshore market in September, many domestic firms have been eying to raise funds through such offshore issuance.

HDFC, the largest home loan lender has already got an in-principle board approval to raise funds through offshore rupee bond issuance. This move will attract FPIs to such bond issuance given the tax liability is reduced and thereby returns are higher.

As per the RBI guidelines, a company can raise up to $750 million per year under the automatic route through rupee denominated bonds, popularly known as masala bonds.

All News   

Downgrade Thermax to ‘reduce’: Edelweiss (29-10-2015)

Thermax’s Q2FY16 numbers came below consensus with sales (down 9% YoY) and PAT (down 25% YoY) coming 13% and 25% lower than estimates, respectively. While consumption led business(packaged boilers & heaters) growth is expected to sustain, we believe decline in large boilers (utility grade) business poses a formidable challenge to FY16-17E earnings given the current scenario — sub-par utilisation & demand in cement, metals, and tepid demand & high competition in low volume utilities market.

We cut FY16E and FY17E earnings 20% and 25%, respectively, as we trim our intake assumptions due to weaker captive market and sub-par utilisation of new super-critical boilers JV.

While we view Thermax as the best play on industrial boilers & heaters segment, we believe overhang of a weak utilities market coupled with medium-term challenges for larger captives will pose a serious growth challenge over
the next 12-15 months, impacting near-term earnings.

Management does not envisage recovery in utilities market in the near term and estimates recovery only after 1.5-2.0 years.

Also, recovery in larger captive, which is driven by metal sector, is not in sight over the next 2.0-2.5 years, which coupled with sub-par utilisation levels in cement will pose a serious challenge to current captive power market growth.

All News   

Maintain ‘buy’ on Dabur, target Rs 310: Religare Institutional (29-10-2015)

Dabur posted a below-expected Q2 with net sales/EBITDA/adj. PAT up 8.7%/ 15.9%/18.7% YoY as domestic volumes grew at a slower than expected pace (5% YoY vs. RCMLe 6-7%) due to supply disruptions. EBITDA margins however were largely in line on lower input and stable A&P costs. We slightly pare estimates to factor in weak consumer demand and supply issues, given Dabur’s ability to churn out high single-digit volume growth on a consistent basis.

Consol.net sales grew 8.7% YoY to R2,090 crore with domestic/international FMCG revenues up 8.8%/6.4% YoY. Domestic volume growth came in at 5% YoY (RCMLe 6-7%) on account of a festive season shift to Q3 and supply disruptions from Nepal as political disturbances hit the beverage segment. Excluding the beverage segment, volume growth was in line at 7% YoY. Consumer care business grew 9.6% YoY with segment EBIT margins also improving 185bps to 24.2%. Hair Care segment posted 9.4% YoY growth with double-digit volume-led growth in hair oils, whereas shampoos reported slower growth amid heightened competition.

We pare our FY16/FY17/FY18 earnings estimates by ~1.9%/2.9%/3.9% to build in the slower-than-expected recovery in consumer demand. We accordingly revise down our Sep’16 TP to Rs 310 (from Rs 325 earlier).

All News   

SBI AMC not to take fresh SIPs from today (29-10-2015)

SBI Small & Midcap Fund will discontinue taking fresh subscriptions and systematic investment plans (SIPs) from investors from October 30. However, the scheme will continue to take money from existing investors.

Officials in the fund house said while filing the offer document with the market regulator, Securities & Exchange Board of India (Sebi), the fund house had stated that it would have capacity constrain of Rs 750 crore. Dinesh Kumar Khara, MD & CEO at SBI Asset Management Company (AMC), said: “We are nearing the target of Rs 750 crore and that is the reason we are not taking fresh money from investors. Apart from that, the market of mid and small cap is very limited and we want to remain true to our label of investments.”

Senior officials also said currently due to high valuations in mid- and small-cap stocks, it is not advisable to ask investors to put large sum of money into the volatile category. “It was possible for fund house to go to regulator and increase the capacity constrain. But they decided not to take fresh flows, which shows they are not able to get enough opportunity in stock selection. But, overall we believe it is a move which will benefit the end customer,” said a top officials from the fund house.

All News   

Latest News