Sensex strikes fresh all-time high as auto cos recover
The market firmed up further and the Sensex struck a new high in early-afternoon trade. Auto shares recovered from the lower level. Telecom stocks held firm. Select media shares had spurted, while metal scrips remained weak.
Select side-counters surged. Side-counter Yuken India (up 20% to Rs 175.90), Rama Paper (up 20% to Rs 42.10), Mazda (up 18% to Rs 197), Shree Ashtavinayak Cine Vision (up 17% to Rs 362.90), UTV Software (up 14% to Rs 327) and KG Denim (up 23% to Rs 23.40) surged.
At 12:27 IST the Sensex was up 91 points, at 14,494. It rose as many as 94.08 points, to a high of 14,497.85, surpassing its previous all- time high of 14,467.19 struck at 10:15 IST.
The market-breadth was strong. For 1,577 shares rising on BSE, 951 declined. Just 62 shares were unchanged. Gainers outpaced losers by a ratio of 1.65:1.The BSE clocked a turnover of Rs 2296 crore.
Jain Irrigation soars as Citigroup hikes stake
Jain Irrigation was trading up by 5.67%, at Rs 423, after announcing that Citigroup had acquired nearly 2.29% stake in the company.As many as 48,165 shares changed hands in the counter on BSE.
Citigroup Global Markets (Mauritius) already held 3.54% in Jain Irrigation, and was now pursuing additional shares. Citigroup's holding now stands at 5.83%. The date of acquisition of additional shares was 31 January 2007.
The stock has been rising consistently since hitting an intra-day low of Rs 302 on 17 November 2006, to the current levels.
Jain Irrigation manufactures drip and sprinkler irrigation systems and components, PVC, polyethylene (HDPE, MDPE) & polypropylene piping systems, plastic sheets (PVC & PC sheets), dehydrated onions and vegetables, processed fruits, tissue culture, hybrid & grafted plants, greenhouses, poly and shade houses, bio-fertilizers, solar water heating systems and solar photovoltaic (Solar lighting systems). The company is the largest producer of plastic pipes in India, and annually processes one-lakh metric tonnes of different polymers in India.
Jain Irrigation came out with a good set of December 2006 quarter numbers, reporting 105.2% growth in net profit to Rs 31.30 crore over the corresponding previous year quarter. Net sales in the same quarter grew 37.8% to Rs 302.31 crore over the previous year's quarter.
In November 2006, Jain Irrigation picked up 65% stake in US-based Cascade Specialities, thereby gaining entry into the world’s biggest onion dehydration markets. Jain Irrigation, after acquisition, is now the third-largest dehydrated onion producer in the world with a total combined capacity in excess of 25,000 mt.
Merck's generics business on radar, Dr Reddy’s Labs rises
Dr Reddy’s gained 0.65% to Rs 750, on reports that it may join the race for Merck’s generic business.“Merck’s generic business is such a big asset and we cannot ignore it, if it is up for sale. We neither confirm our interest nor deny it,” a Dr Reddy’s spokesperson said.
The acquisition is likely to be valued over $ 5 billion. Recently, other pharma companies, Ranbaxy and Cipla, have already disclosed their interests in acquiring the company in partnership with private equity funds.
Merck’s generics business had sales of $2.35 billion last year, with leadership position in countries such as Australia, France and Scandinavia. The company also has subsidiaries in UK, Spain, Sweden and Belgium.
Merck’s Generics has major operations and facilities in Australia, Belgium, Canada, Germany, Italy, Netherlands, South Africa, Spain, UK, Sweden and USA. It is currently ranked among the top-ten global suppliers in the generics market, and has a wide-range of more than 400 products in all therapeutic areas.
The counter clocked 33,456 shares on BSE. It had slipped a bit from an intra-day high of Rs 754.50.
The stock declined sharply in the past few sessions, just after it announced its December quarter results. From Rs 815.95 on 17 January, the stock declined consistently to Rs 745.15 on 2 February 2007, on sustained selling.
Dr Reddy’s reported a surge in net profit in the December 2006 quarter. The Hyderabad-based firm, which acquired Germany's Betapharm last year, said quarterly net profit rose to Rs 188 crore from Rs 62.80 crore in the December 2005 quarter. Total revenue jumped to Rs 1540 crore from Rs 590 crore.
Dr Reddy's foreign acquisitions and better sales of generics in the United States drove growth, while overseas sales were expected to rise as drugs with annual sales of $30 billion are likely to go off patent in the next two years. For generics, Dr Reddy's Labs revenue rose to Rs 768 crore from Rs 83.10 crore. Analysts were expecting an even better performance from the company.
Revenues from core business, excluding contribution from authorised generics and acquisitions, increased by 38% to Rs 820 crore (Rs 590 crore). The API business revenues for the December 2006 quarter increased by 29% to Rs 270 crore from Rs 210 crore in the corresponding previous quarter. Similarly, revenues from the branded formulations business increased 18% at Rs 320 crore from Rs 270 crore in the corresponding quarter last year, mainly driven by growth in India and Russia. Revenues from the custom pharmaceuticals services business was up at Rs 156.9 crore from just Rs 10.1 crore in the corresponding quarter last year.
The 180-day marketing exclusivity for Ondansetron, the generic version of Zofran tablets, during the December 2006 quarter, which the company has launched also helped Dr Reddy's to capture 55% marketshare, adding Rs 22.3 crore to the third quarter under review. Ondansetron is the second drug gaining marketing exclusivity, after Fluextine substantially bolstered the company's revenues in 2001.
Dr Reddy's Labs launched six products in the United States last year. The company hopes to profit from the US approval of four new drug applications during the December quarter, and is awaiting approval for 58 more.
M&M riding on healthy January sales
Mahindra & Mahindra rose 1.88% to Rs 930, after reporting a 26% rise in January sales, to 19,875 units, compared to sales in the year ago period.
Mahindra & Mahindra (M&M) said domestic auto sales, including utility vehicles, light commercial vehicles and three-wheelers, rose 24% to 19,132 units from 15,472 units a year earlier. Exports more than doubled to 743 units from 351 units. Mahindra sold 8,668 tractors, up 13% from 7,658 sold a year earlier. Scorpio January sales stand at 4,190 units versus 3,306 units.
Recently, M&M hiked the price of sport utility vehicle (SUV) Scorpio by Rs 3,000 - Rs 13,000, while that of its utility vehicle (UV) Bolero by Rs 5,600 - Rs 6,500, beginning last week of January. According to Rajesh Jejurikar, Executive Vice President, Sales and Marketing, the price revision was necessitated by increasing input costs, as well as other inflationary strain.
As many as 1.13 lakh shares changed hands in the counter on BSE.The stock steadily rallied in the past few trading sessions, advancing from Rs 874.30 on 10 January to Rs 985.30 by 16 January 2007, on sustained buying. The scrip also surged to a life high of Rs 1002, on the same day. Here, the scrip began correcting till Rs 900.20 on 31 January 2007. The scrip again headed upwards from Rs 912.85 on 2 February, as buying resumed.
In January, M&M decided to invest Rs 2500 crore in a new plant for its joint venture with Navistar International Corp. The company has signed an agreement with the Maharashtra Government for the plant. Initially, the facility will have a capacity of 2,50,000 units and the production will begin in two years. Mahindra holds 51% stake in a joint venture with truck maker Navistar International to make light, medium and heavy trucks and buses.
In late-2006, M&M formed a joint venture with French car maker, Renault, to make 5 lakh cars a year in India. The plant will have equal equity participation. M&M's another existing 51:49 venture agreement with Renault, over a year old, envisages the manufacture of the Renault Logan, in which Euros 125 million have already been invested.
Mahindra & Mahindra is also readying itself to foray into North America, the world's largest market for sports utility vehicles (SUV) and pick-ups, with its flagship Scorpio, and a pick-up based on the same platform. In September, the company signed a distribution agreement with Global Vehicles, US, for distribution of M&M vehicles and accessories in the world's largest economy. M&M will be the first Indian automaker to enter the highly-competitive American passenger vehicle market.
The company posted 21% rise in net profit to Rs 242.12 crore for Q3 December 2006, compared to Rs 200.13 crore for Q3 September 2005. Total income increased 14% to Rs 2617.30 crore (Rs 2207.17 crore).
During the current quarter, CanvasM Technologies, CanvasM (Americas) Inc, JECO Holding AG. Gesenkschmiede Schneider GmbH, JECO - Jellinghaus GmbH, Falkanroth Umformtechnik GmbH, Falkenroth Grundstucksgesellschaft GmbH, Mahindra Forgings Mauritius, Mahindra Forgings Global have become subsidiaries of the company.
During the quarter, consequent to a successful institutional placement of shares by Mahindra Gesco Developers (MCDL), the direct and indirect ownership of M&M in MGDL was reduced to less than half of the voting power in the latter. As a result MGDL and its subsidiaries, Mahindra Infrastructure Developers, Mahindra World City Developers, Mahindra World City (Jaipur), Mahindra World City (Maharashtra) and Mahindra Integrated Township (formerly known as Mahindra Integrated Township), ceased to be subsidiaries and have become associates of M&M instead.
Select side-counters surged. Side-counter Yuken India (up 20% to Rs 175.90), Rama Paper (up 20% to Rs 42.10), Mazda (up 18% to Rs 197), Shree Ashtavinayak Cine Vision (up 17% to Rs 362.90), UTV Software (up 14% to Rs 327) and KG Denim (up 23% to Rs 23.40) surged.
At 12:27 IST the Sensex was up 91 points, at 14,494. It rose as many as 94.08 points, to a high of 14,497.85, surpassing its previous all- time high of 14,467.19 struck at 10:15 IST.
The market-breadth was strong. For 1,577 shares rising on BSE, 951 declined. Just 62 shares were unchanged. Gainers outpaced losers by a ratio of 1.65:1.The BSE clocked a turnover of Rs 2296 crore.
Jain Irrigation soars as Citigroup hikes stake
Jain Irrigation was trading up by 5.67%, at Rs 423, after announcing that Citigroup had acquired nearly 2.29% stake in the company.As many as 48,165 shares changed hands in the counter on BSE.
Citigroup Global Markets (Mauritius) already held 3.54% in Jain Irrigation, and was now pursuing additional shares. Citigroup's holding now stands at 5.83%. The date of acquisition of additional shares was 31 January 2007.
The stock has been rising consistently since hitting an intra-day low of Rs 302 on 17 November 2006, to the current levels.
Jain Irrigation manufactures drip and sprinkler irrigation systems and components, PVC, polyethylene (HDPE, MDPE) & polypropylene piping systems, plastic sheets (PVC & PC sheets), dehydrated onions and vegetables, processed fruits, tissue culture, hybrid & grafted plants, greenhouses, poly and shade houses, bio-fertilizers, solar water heating systems and solar photovoltaic (Solar lighting systems). The company is the largest producer of plastic pipes in India, and annually processes one-lakh metric tonnes of different polymers in India.
Jain Irrigation came out with a good set of December 2006 quarter numbers, reporting 105.2% growth in net profit to Rs 31.30 crore over the corresponding previous year quarter. Net sales in the same quarter grew 37.8% to Rs 302.31 crore over the previous year's quarter.
In November 2006, Jain Irrigation picked up 65% stake in US-based Cascade Specialities, thereby gaining entry into the world’s biggest onion dehydration markets. Jain Irrigation, after acquisition, is now the third-largest dehydrated onion producer in the world with a total combined capacity in excess of 25,000 mt.
Merck's generics business on radar, Dr Reddy’s Labs rises
Dr Reddy’s gained 0.65% to Rs 750, on reports that it may join the race for Merck’s generic business.“Merck’s generic business is such a big asset and we cannot ignore it, if it is up for sale. We neither confirm our interest nor deny it,” a Dr Reddy’s spokesperson said.
The acquisition is likely to be valued over $ 5 billion. Recently, other pharma companies, Ranbaxy and Cipla, have already disclosed their interests in acquiring the company in partnership with private equity funds.
Merck’s generics business had sales of $2.35 billion last year, with leadership position in countries such as Australia, France and Scandinavia. The company also has subsidiaries in UK, Spain, Sweden and Belgium.
Merck’s Generics has major operations and facilities in Australia, Belgium, Canada, Germany, Italy, Netherlands, South Africa, Spain, UK, Sweden and USA. It is currently ranked among the top-ten global suppliers in the generics market, and has a wide-range of more than 400 products in all therapeutic areas.
The counter clocked 33,456 shares on BSE. It had slipped a bit from an intra-day high of Rs 754.50.
The stock declined sharply in the past few sessions, just after it announced its December quarter results. From Rs 815.95 on 17 January, the stock declined consistently to Rs 745.15 on 2 February 2007, on sustained selling.
Dr Reddy’s reported a surge in net profit in the December 2006 quarter. The Hyderabad-based firm, which acquired Germany's Betapharm last year, said quarterly net profit rose to Rs 188 crore from Rs 62.80 crore in the December 2005 quarter. Total revenue jumped to Rs 1540 crore from Rs 590 crore.
Dr Reddy's foreign acquisitions and better sales of generics in the United States drove growth, while overseas sales were expected to rise as drugs with annual sales of $30 billion are likely to go off patent in the next two years. For generics, Dr Reddy's Labs revenue rose to Rs 768 crore from Rs 83.10 crore. Analysts were expecting an even better performance from the company.
Revenues from core business, excluding contribution from authorised generics and acquisitions, increased by 38% to Rs 820 crore (Rs 590 crore). The API business revenues for the December 2006 quarter increased by 29% to Rs 270 crore from Rs 210 crore in the corresponding previous quarter. Similarly, revenues from the branded formulations business increased 18% at Rs 320 crore from Rs 270 crore in the corresponding quarter last year, mainly driven by growth in India and Russia. Revenues from the custom pharmaceuticals services business was up at Rs 156.9 crore from just Rs 10.1 crore in the corresponding quarter last year.
The 180-day marketing exclusivity for Ondansetron, the generic version of Zofran tablets, during the December 2006 quarter, which the company has launched also helped Dr Reddy's to capture 55% marketshare, adding Rs 22.3 crore to the third quarter under review. Ondansetron is the second drug gaining marketing exclusivity, after Fluextine substantially bolstered the company's revenues in 2001.
Dr Reddy's Labs launched six products in the United States last year. The company hopes to profit from the US approval of four new drug applications during the December quarter, and is awaiting approval for 58 more.
M&M riding on healthy January sales
Mahindra & Mahindra rose 1.88% to Rs 930, after reporting a 26% rise in January sales, to 19,875 units, compared to sales in the year ago period.
Mahindra & Mahindra (M&M) said domestic auto sales, including utility vehicles, light commercial vehicles and three-wheelers, rose 24% to 19,132 units from 15,472 units a year earlier. Exports more than doubled to 743 units from 351 units. Mahindra sold 8,668 tractors, up 13% from 7,658 sold a year earlier. Scorpio January sales stand at 4,190 units versus 3,306 units.
Recently, M&M hiked the price of sport utility vehicle (SUV) Scorpio by Rs 3,000 - Rs 13,000, while that of its utility vehicle (UV) Bolero by Rs 5,600 - Rs 6,500, beginning last week of January. According to Rajesh Jejurikar, Executive Vice President, Sales and Marketing, the price revision was necessitated by increasing input costs, as well as other inflationary strain.
As many as 1.13 lakh shares changed hands in the counter on BSE.The stock steadily rallied in the past few trading sessions, advancing from Rs 874.30 on 10 January to Rs 985.30 by 16 January 2007, on sustained buying. The scrip also surged to a life high of Rs 1002, on the same day. Here, the scrip began correcting till Rs 900.20 on 31 January 2007. The scrip again headed upwards from Rs 912.85 on 2 February, as buying resumed.
In January, M&M decided to invest Rs 2500 crore in a new plant for its joint venture with Navistar International Corp. The company has signed an agreement with the Maharashtra Government for the plant. Initially, the facility will have a capacity of 2,50,000 units and the production will begin in two years. Mahindra holds 51% stake in a joint venture with truck maker Navistar International to make light, medium and heavy trucks and buses.
In late-2006, M&M formed a joint venture with French car maker, Renault, to make 5 lakh cars a year in India. The plant will have equal equity participation. M&M's another existing 51:49 venture agreement with Renault, over a year old, envisages the manufacture of the Renault Logan, in which Euros 125 million have already been invested.
Mahindra & Mahindra is also readying itself to foray into North America, the world's largest market for sports utility vehicles (SUV) and pick-ups, with its flagship Scorpio, and a pick-up based on the same platform. In September, the company signed a distribution agreement with Global Vehicles, US, for distribution of M&M vehicles and accessories in the world's largest economy. M&M will be the first Indian automaker to enter the highly-competitive American passenger vehicle market.
The company posted 21% rise in net profit to Rs 242.12 crore for Q3 December 2006, compared to Rs 200.13 crore for Q3 September 2005. Total income increased 14% to Rs 2617.30 crore (Rs 2207.17 crore).
During the current quarter, CanvasM Technologies, CanvasM (Americas) Inc, JECO Holding AG. Gesenkschmiede Schneider GmbH, JECO - Jellinghaus GmbH, Falkanroth Umformtechnik GmbH, Falkenroth Grundstucksgesellschaft GmbH, Mahindra Forgings Mauritius, Mahindra Forgings Global have become subsidiaries of the company.
During the quarter, consequent to a successful institutional placement of shares by Mahindra Gesco Developers (MCDL), the direct and indirect ownership of M&M in MGDL was reduced to less than half of the voting power in the latter. As a result MGDL and its subsidiaries, Mahindra Infrastructure Developers, Mahindra World City Developers, Mahindra World City (Jaipur), Mahindra World City (Maharashtra) and Mahindra Integrated Township (formerly known as Mahindra Integrated Township), ceased to be subsidiaries and have become associates of M&M instead.
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posted by SY at 1:55 PM
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