Sensex slips into the red
The BSE Sensex was not able to sustain the strength, as selling began at higher levels, and promptly slipped into the red. At 13:37 IST the BSE Sensex was down 15.29 points, at 14,501.09.
Earlier, the benchmark Sensex had opened lower, at 14,479.58, and slipped to 14,468.99 on heavy selling. Here, it recovered to strike a fresh all-time high of 14,554.91 as buying resumed, only to slip again on selling at the higher levels.
The market is suffering from acute volatility, moving in and out of positive ground, on account of a mixed trend in pivotals.
The total turnover on BSE amounted to Rs 4335 crore, boosted by three huge block deals of 23.14 lakh shares each in TCS, at an average Rs 1299.26 per share in opening trade. The counter was the top-traded on BSE with a turnover of Rs 913.47 crore. The TCS stock was down 0.66% to Rs 1296.50 on total volumes of 70.30 lakh shares.
The market-breadth was positive. For 1,447 shares advancing on BSE, 1128 declined. Just 53 scrips remained unchanged.
Autoline Ind sustains interest
Recently-listed auto component maker Autoline Industries surged 20% to Rs 391.35, extending the surge post listing.The stock rose on a volume of 62.1 lakh shares on BSE.The stock had made only a modest debut at Rs 261.15 on BSE on 31 January 2007 compared to the IPO price of Rs 225. It had settled at Rs 257.95 on the first day of listing. The next day, the stock had slipped to Rs 250.20. Here, it had gained 56.4% in just three trading sessions.
Huge volumes have accompanied the rally in the stock. As many as 59.4 lakh shares got traded on BSE on 2 February and 68.3 lakh shares got traded on 5 February.
Autoline’s IPO was subscribed 17.36 times. The company had priced the IPO at the upper end of the Rs 200 - Rs 225 price-band. Qualified institutional bidders (QIBs) applied for 3,04,93,900 shares compared to 18.75 lakh reserved for this segment. Among QIBs, FIIs applied for 1,74,31,425 shares, while domestic financial institutions bid for 90,28,550 and mutual funds for 40,29,775 equity shares.
Autoline Industries supplies complex sheet metal assemblies and sub-assemblies to Tata Motors, Bajaj Auto, Kinetic Engineering, Mahindra & Mahindra, Walker Exhaust and Fiat India. Tata Motors, which buys components for passenger cars and commercial vehicles, is Autoline's largest customer accounting for about 85% of revenues in FY 2006 (year ended 31 March 2006).
From a turnover of Rs 51 crore in FY 2004, Autoline's revenues scaled up to Rs 118 crore for the eight months of the ongoing fiscal. The sharp acceleration in top line also coincides with the success enjoyed by Tata Motors' Ace minitruck, for which Autoline is the single-source supplier of load bodies.
Funds raised through the IPO will be used to upgrade and expand Autoline's Chakan facility in Pune; set up another manufacturing facility at the same location; relocate and consolidate a couple of smaller units; establish a corporate office; fund acquisitions, and provide long-term working-capital resources.
Autoline has tried to diversify operations The company is expanding the capabilities of its design-engineering unit to supply offshore development and manufacturing (ODM) services to foreign companies. Autoline registered a net profit of Rs 7.48 crore on sales of Rs 118.28 crore for April-November 2006.
The current price of Rs 391.35 discounts its April-November 2006 annualised EPS of Rs 10.60, by a PE multiple of 36.91. The post-issue equity capital of the company is Rs 10.36 crore.
R&D pact with GSK supports Ranbaxy
Ranbaxy Laboratories rose 1.11% to Rs 419, after signing a new R&D pact with GlaxoSimthKline that could help it earn over $100 million in potential payments.Around 2.14 lakh shares of Ranbaxy Laboratories were traded on the BSE
The scrip, after slipping from the recent high of Rs 730.50 on 15 January, to Rs 397.25 by 25 January, started moving north to reach Rs 414.40 by 5 February 2007. Earlier, the stock had surged amidst volatile trading from Rs 359.65 on 12 December 2006 to Rs 430.50 by 15 January 2007.
At the current market price of Rs 419, Ranbaxy Laboratories trades 38.44 times its six-month ended 31 December 2006 annualized EPS of Rs 10.9.
Ranbaxy Laboratories posted a 41.92% rise in net profit to Rs 139.07 crore for the fourth quarter ended December 2006, compared to Rs 97.99 crore for the quarter ended December 2005. Total income increased 13.66% to Rs 1035.33 crore (Rs 910.84 crore).
For FY-2006, the company posted a net profit of Rs 386.45 crore as compared to Rs 223.70 crore in FY 2005. Total income for FY-2006 increased to Rs 4004.98 crore (Rs 3651.30 crore).
On Tuesday, Ranbaxy Laboratories entered into a research & development pact with GlaxoSimthKline (GSK), which can earn over $ 100 million for a drug developed by Ranbaxy, and to be subsequently launched by GSK. The agreement enables Ranbaxy to expand its drug development programme and financial responsibilities. The company said it will retain the right to sell the products in India.
Recently, Ranbaxy Labs had received approval from the US FDA to market Amoxicillin and Clavulanate Potassium for oral suspension. The Ranbaxy formulation is therapeutically equivalent to Augmentin ES-600 for oral suspension of GlaxoSmithKline.
Further, the company is exploring the option to join private equity firms like Carlyle Group, Citigroup and Standard Chartered Private Equity after they approached Ranbaxy to support their bids for the generic business of Merck in India.
It should be remembered that the bidding processes of the generics business of German pharmaceutical corporation, Merck, is set to begin in a few days. The advisors to Merck have invited bids by 10 February 2007 and Indian drug makers are in hectic parleys with private equity funds to freeze their plans.
However, Ranbaxy’s plan to acquire Merck’s generic business is likely to face stiff competition from global generic giants -- Israel's Teva and US-based Sandoz. According to analysts, these two companies are expected to drive up the valuations way beyond the $5.2 billion mark. With valuations soaring that high, Ranbaxy's current balance sheet size may not be able to support a substantially higher bid.
Though Teva and Sandoz spokespersons declined to comment whether the companies will bid for Merck, speculation in the market is that they are most likely to succeed. For Ranbaxy, the stakes are very high. If successful, it could emerge as the world's third largest generics company after Teva and Sandoz. But analysts say the Merck unit might fetch a price 2-3 times its annual sales of $2.5 billion.
The company produces over 400 substances and claims to be the largest supplier of generic drugs in Australia, France and Scandinavia. Given the kind of balance sheet Ranbaxy has, it is not easy to garner money required for 100% stake in the target company. However, the task may be easy if it just pitches for a controlling stake. The challenge would be stiff if Ranbaxy goes for 100% stake.
The board of Ranbaxy Laboratories, on 18 January 2007, had approved a strategic stake of 14.9% in Krebs Biochemicals and Industries, Hyderabad.
Ranbaxy has been on an acquisition spree this year, snapping up generic drug makers in Italy, Spain, Belgium and Romania. Recently, it bought South Africa's Be-Tabs Pharmaceuticals for $70 million.
Ranbaxy Laboratories received the US Food and Drug Administration (FDA) approval to market atenolol tablets, an equivalent of AstraZeneca's hypertension drug, Tenormin(r). The total annual market sales for atenolol were $133.6 million according to market research agency IMS' September 2006 data.
In December 2006, Ranbaxy Laboratories, Zydus Cadilla and Aurobindo Pharma received approval from the US FDA to market cholesterol lowering drug, Simvastatin, the generic version of Merck's `Zocor'. Ranbaxy has permission to sell the drug in strengths of 5 mg, 10 mg, 20 mg and 40 mg. The company has been selling the drug in 80 mg dosage since June.
Growth prospects spur Reliance Energy
Interest in the power sector assets of Globeleq, and a contract to build a large power project in Haryana have triggered a solid rebound in Reliance Energy over the past few days.
The stock was up 2.6% to Rs 563 in afternoon trade. It was the top gainer among 30-Sensex scrips. As many as 3 lakh shares changed hands in the counter on BSE.
From a recent low of Rs 502.10 on 25 January 2007, the stock has gained 12.1% in a short while. Earlier, the stock had tumbled to Rs 502.10 by 25 January 2007 from a high of Rs 534.80 on 17 January 2007. The stock had declined after Q3 results were announced on 18 January 2007.
On 31 January 2007, Reliance Energy (REL) announced that it had won an engineering, procurement and construction (EPC) contract worth Rs 3,800 crore for setting up a 1,200 Megawatt (Mw) coal-fired power plant at Yamuna Nagar, Haryana. REL has received a time schedule of 35 - 38 months to complete the project. After completing the project, REL will hand over it to the state electricity board.
Recent reports had it that Reliance Energy Transmission (RETL), a subsidiary of REL, has emerged as the lowest bidder for two transmission packages (B and C) invited by Power Grid Corporation for setting up power lines linked with the ‘Western Region Strengthening Scheme’ in Gujarat and Maharashtra. This was the first International Competitive Bid invited by Power Grid under the 100% private equity routes.
Meanwhile, REL is also set to put in its bid for Globeleq, having power sector assets in Asia, Africa and the Americas. Globeleq has put its power-generating assets on the block. Globeleq’s operations span over 13 countries and accounts for about 5,000 Mw in 13 power companies. Globeleq's stake totals about 3,000 Mw, most of which are gas-based power plants. Globeleq's assets have been divided into four blocks - Asia, Africa, the Americas and Egypt. Bidders have the option of bidding for one block or for all the blocks.
About a couple of months back, REL, along with its consortium, signed a contract with the Ministry of Petroleum and Natural Gas (MoPNG) for exploration and production of four coal-bed methane (CBM) blocks –two in Rajasthan, one in Andhra Pradesh and one in Madhya Pradesh. REL will be responsible for utilising CBM from the four blocks for power generation.
Reliance Energy, a part of the Reliance - Anil Dhirubhai Ambani Group, is India’s leading private sector utility company. The group distributes nearly 21 billion units of power consumers in Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 sq kms. The company generates about 941 Mw of power, through its power plants located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
REL reported a 22% jump in its net profit in Dec-2006 quarter at Rs 201.03 crore, against Rs 164.64 crore in the corresponding quarter of the last fiscal.
Earlier, the benchmark Sensex had opened lower, at 14,479.58, and slipped to 14,468.99 on heavy selling. Here, it recovered to strike a fresh all-time high of 14,554.91 as buying resumed, only to slip again on selling at the higher levels.
The market is suffering from acute volatility, moving in and out of positive ground, on account of a mixed trend in pivotals.
The total turnover on BSE amounted to Rs 4335 crore, boosted by three huge block deals of 23.14 lakh shares each in TCS, at an average Rs 1299.26 per share in opening trade. The counter was the top-traded on BSE with a turnover of Rs 913.47 crore. The TCS stock was down 0.66% to Rs 1296.50 on total volumes of 70.30 lakh shares.
The market-breadth was positive. For 1,447 shares advancing on BSE, 1128 declined. Just 53 scrips remained unchanged.
Autoline Ind sustains interest
Recently-listed auto component maker Autoline Industries surged 20% to Rs 391.35, extending the surge post listing.The stock rose on a volume of 62.1 lakh shares on BSE.The stock had made only a modest debut at Rs 261.15 on BSE on 31 January 2007 compared to the IPO price of Rs 225. It had settled at Rs 257.95 on the first day of listing. The next day, the stock had slipped to Rs 250.20. Here, it had gained 56.4% in just three trading sessions.
Huge volumes have accompanied the rally in the stock. As many as 59.4 lakh shares got traded on BSE on 2 February and 68.3 lakh shares got traded on 5 February.
Autoline’s IPO was subscribed 17.36 times. The company had priced the IPO at the upper end of the Rs 200 - Rs 225 price-band. Qualified institutional bidders (QIBs) applied for 3,04,93,900 shares compared to 18.75 lakh reserved for this segment. Among QIBs, FIIs applied for 1,74,31,425 shares, while domestic financial institutions bid for 90,28,550 and mutual funds for 40,29,775 equity shares.
Autoline Industries supplies complex sheet metal assemblies and sub-assemblies to Tata Motors, Bajaj Auto, Kinetic Engineering, Mahindra & Mahindra, Walker Exhaust and Fiat India. Tata Motors, which buys components for passenger cars and commercial vehicles, is Autoline's largest customer accounting for about 85% of revenues in FY 2006 (year ended 31 March 2006).
From a turnover of Rs 51 crore in FY 2004, Autoline's revenues scaled up to Rs 118 crore for the eight months of the ongoing fiscal. The sharp acceleration in top line also coincides with the success enjoyed by Tata Motors' Ace minitruck, for which Autoline is the single-source supplier of load bodies.
Funds raised through the IPO will be used to upgrade and expand Autoline's Chakan facility in Pune; set up another manufacturing facility at the same location; relocate and consolidate a couple of smaller units; establish a corporate office; fund acquisitions, and provide long-term working-capital resources.
Autoline has tried to diversify operations The company is expanding the capabilities of its design-engineering unit to supply offshore development and manufacturing (ODM) services to foreign companies. Autoline registered a net profit of Rs 7.48 crore on sales of Rs 118.28 crore for April-November 2006.
The current price of Rs 391.35 discounts its April-November 2006 annualised EPS of Rs 10.60, by a PE multiple of 36.91. The post-issue equity capital of the company is Rs 10.36 crore.
R&D pact with GSK supports Ranbaxy
Ranbaxy Laboratories rose 1.11% to Rs 419, after signing a new R&D pact with GlaxoSimthKline that could help it earn over $100 million in potential payments.Around 2.14 lakh shares of Ranbaxy Laboratories were traded on the BSE
The scrip, after slipping from the recent high of Rs 730.50 on 15 January, to Rs 397.25 by 25 January, started moving north to reach Rs 414.40 by 5 February 2007. Earlier, the stock had surged amidst volatile trading from Rs 359.65 on 12 December 2006 to Rs 430.50 by 15 January 2007.
At the current market price of Rs 419, Ranbaxy Laboratories trades 38.44 times its six-month ended 31 December 2006 annualized EPS of Rs 10.9.
Ranbaxy Laboratories posted a 41.92% rise in net profit to Rs 139.07 crore for the fourth quarter ended December 2006, compared to Rs 97.99 crore for the quarter ended December 2005. Total income increased 13.66% to Rs 1035.33 crore (Rs 910.84 crore).
For FY-2006, the company posted a net profit of Rs 386.45 crore as compared to Rs 223.70 crore in FY 2005. Total income for FY-2006 increased to Rs 4004.98 crore (Rs 3651.30 crore).
On Tuesday, Ranbaxy Laboratories entered into a research & development pact with GlaxoSimthKline (GSK), which can earn over $ 100 million for a drug developed by Ranbaxy, and to be subsequently launched by GSK. The agreement enables Ranbaxy to expand its drug development programme and financial responsibilities. The company said it will retain the right to sell the products in India.
Recently, Ranbaxy Labs had received approval from the US FDA to market Amoxicillin and Clavulanate Potassium for oral suspension. The Ranbaxy formulation is therapeutically equivalent to Augmentin ES-600 for oral suspension of GlaxoSmithKline.
Further, the company is exploring the option to join private equity firms like Carlyle Group, Citigroup and Standard Chartered Private Equity after they approached Ranbaxy to support their bids for the generic business of Merck in India.
It should be remembered that the bidding processes of the generics business of German pharmaceutical corporation, Merck, is set to begin in a few days. The advisors to Merck have invited bids by 10 February 2007 and Indian drug makers are in hectic parleys with private equity funds to freeze their plans.
However, Ranbaxy’s plan to acquire Merck’s generic business is likely to face stiff competition from global generic giants -- Israel's Teva and US-based Sandoz. According to analysts, these two companies are expected to drive up the valuations way beyond the $5.2 billion mark. With valuations soaring that high, Ranbaxy's current balance sheet size may not be able to support a substantially higher bid.
Though Teva and Sandoz spokespersons declined to comment whether the companies will bid for Merck, speculation in the market is that they are most likely to succeed. For Ranbaxy, the stakes are very high. If successful, it could emerge as the world's third largest generics company after Teva and Sandoz. But analysts say the Merck unit might fetch a price 2-3 times its annual sales of $2.5 billion.
The company produces over 400 substances and claims to be the largest supplier of generic drugs in Australia, France and Scandinavia. Given the kind of balance sheet Ranbaxy has, it is not easy to garner money required for 100% stake in the target company. However, the task may be easy if it just pitches for a controlling stake. The challenge would be stiff if Ranbaxy goes for 100% stake.
The board of Ranbaxy Laboratories, on 18 January 2007, had approved a strategic stake of 14.9% in Krebs Biochemicals and Industries, Hyderabad.
Ranbaxy has been on an acquisition spree this year, snapping up generic drug makers in Italy, Spain, Belgium and Romania. Recently, it bought South Africa's Be-Tabs Pharmaceuticals for $70 million.
Ranbaxy Laboratories received the US Food and Drug Administration (FDA) approval to market atenolol tablets, an equivalent of AstraZeneca's hypertension drug, Tenormin(r). The total annual market sales for atenolol were $133.6 million according to market research agency IMS' September 2006 data.
In December 2006, Ranbaxy Laboratories, Zydus Cadilla and Aurobindo Pharma received approval from the US FDA to market cholesterol lowering drug, Simvastatin, the generic version of Merck's `Zocor'. Ranbaxy has permission to sell the drug in strengths of 5 mg, 10 mg, 20 mg and 40 mg. The company has been selling the drug in 80 mg dosage since June.
Growth prospects spur Reliance Energy
Interest in the power sector assets of Globeleq, and a contract to build a large power project in Haryana have triggered a solid rebound in Reliance Energy over the past few days.
The stock was up 2.6% to Rs 563 in afternoon trade. It was the top gainer among 30-Sensex scrips. As many as 3 lakh shares changed hands in the counter on BSE.
From a recent low of Rs 502.10 on 25 January 2007, the stock has gained 12.1% in a short while. Earlier, the stock had tumbled to Rs 502.10 by 25 January 2007 from a high of Rs 534.80 on 17 January 2007. The stock had declined after Q3 results were announced on 18 January 2007.
On 31 January 2007, Reliance Energy (REL) announced that it had won an engineering, procurement and construction (EPC) contract worth Rs 3,800 crore for setting up a 1,200 Megawatt (Mw) coal-fired power plant at Yamuna Nagar, Haryana. REL has received a time schedule of 35 - 38 months to complete the project. After completing the project, REL will hand over it to the state electricity board.
Recent reports had it that Reliance Energy Transmission (RETL), a subsidiary of REL, has emerged as the lowest bidder for two transmission packages (B and C) invited by Power Grid Corporation for setting up power lines linked with the ‘Western Region Strengthening Scheme’ in Gujarat and Maharashtra. This was the first International Competitive Bid invited by Power Grid under the 100% private equity routes.
Meanwhile, REL is also set to put in its bid for Globeleq, having power sector assets in Asia, Africa and the Americas. Globeleq has put its power-generating assets on the block. Globeleq’s operations span over 13 countries and accounts for about 5,000 Mw in 13 power companies. Globeleq's stake totals about 3,000 Mw, most of which are gas-based power plants. Globeleq's assets have been divided into four blocks - Asia, Africa, the Americas and Egypt. Bidders have the option of bidding for one block or for all the blocks.
About a couple of months back, REL, along with its consortium, signed a contract with the Ministry of Petroleum and Natural Gas (MoPNG) for exploration and production of four coal-bed methane (CBM) blocks –two in Rajasthan, one in Andhra Pradesh and one in Madhya Pradesh. REL will be responsible for utilising CBM from the four blocks for power generation.
Reliance Energy, a part of the Reliance - Anil Dhirubhai Ambani Group, is India’s leading private sector utility company. The group distributes nearly 21 billion units of power consumers in Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 sq kms. The company generates about 941 Mw of power, through its power plants located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
REL reported a 22% jump in its net profit in Dec-2006 quarter at Rs 201.03 crore, against Rs 164.64 crore in the corresponding quarter of the last fiscal.
posted by SY at 3:41 PM
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