Wednesday, October 19, 2005

Ranbaxy recovers

Battered Ranbaxy Laboratories rose 1% to Rs 415 after the company said
trials showed that a malaria treatment it was developing jointly with the
Geneva-based Medicines for Malaria Venture reduced the malarial parasite

1.9 lakh shares changed hands in the counter on BSE.

Ranbaxy shares had tumbled nearly 16% in the past five trading sessions to
Rs 410.90 on 19 October 2005 from Rs 489.15 on 11 October 2005 after the UK
High Court dismissed its legal challenge to protecting Pfizer’s patent of

Ranbaxy said on Wednesday that proof-of-concept Phase II studies for the
molecule called RBx11160, a synthetic peroxide anti-malarial drug, had been
completed successfully and that findings indicated it was safe and effective
in reducing the parasite count.

The partners have decided to take the drug forward to Phase II dose-range
studies, which will be conducted in India, Thailand and Africa, Ranbaxy said
in a statement. Ranbaxy is hopeful the new drug will both reduce the
treatment period and cost less than current artemesinin derivatives.

Automobile Corporation of Goa gained 5% to Rs 356 after the company reported decent Q2 results

1,585 shares changed hands in the counter on BSE.

The stock plunged 7.7% on Wednesday (19 October 2005) to Rs 338.90 ahead of
the results announcement.

Automobile Corporation of Goa has reported a 30.4% growth in Q2 September
2005 net profit to Rs 2.96 crore compared to Rs 2.27 crore in Q2 September
2004. Net sales have jumped 88.9% to Rs 58.79 crore from Rs 31.12 crore.

On a sequential basis, net profit has risen 44.3% from Rs 2.05 crore in Q1
June 2005. Sales have risen 31.1% from Rs 44.84 crore in Q1 June 2005.

Jointly promoted by the Economic Development Corporation of Goa (EDC) and
Tata Motors, the Automobile Corporation of Goa, is a major supplier of
pressed parts and bus bodies to Tata Motors. The company's business is
essentially outfitting the chassis manufactured by Tata Motors. Automobile
Corporation of Goa (ACGL) executes a process that converts these chassis
into completed trucks or buses.

Thirumalai Chemicals jumped 10% to Rs 168.55, the maximum permissible level of the day, on the back of a surge in Q2 September 2005 net profit

Ahead of the results, the stock plunged 5.4% on Wednesday (19 October 2005)
to Rs 153.25. Earlier, the stock had spurted mid-September 2005. It had
turned volatile later.

Thirumalai Chemicals’s net profit jumped 70% to Rs 8.32 crore (Rs 4.89
crore). Net sales rose 9.9% to Rs 122.62 crore (Rs 111.55 crore).

Thirumalai Chemicals is a leading manufacturer of Phythylic Anhydride (PAN).
PAN is a downstream product derived from Orthoxylene. It is used mainly in
plasticisers, followed by alkyd resins and then dyes.

The company’s business model is derisked with the forward integration of the
company into maleic anhydride (MAN) and food acids, which are less prone to
cyclical price fluctuations which happens in case of PAN.

The company is looking at inorganic growth opportunities to become a
dominant player in PAN and other downstream value-added products.

Reliance Energy put on 2.5% to Rs 523.50 after it reported vibrant Q2 results on Wednesday

The stock moved lower by 2.5% to Rs 510.65 on Wednesday (19 October 2005)
ahead of the announcement.

Reliance Energy (REL) has reported a 24.5% growth in Q2 September 2005 net
profit to Rs 159.57 crore (Rs 128.13 crore). Total income leaped up 32% to
Rs 1,161.36 crore (Rs 878.55 crore) on the back of higher income from
engineering contracts and improved sales in electrical energy.

In Q2 September 2005, REL’s equity capital went up to Rs 201.90 crore from
Rs 195.40 crore, following the conversion of warrants and foreign currency
convertible bonds. REL had allotted 41.8 lakh equity shares to FIIs and a
corporate entity on a preferential basis. It also allotted 1.1 lakh shares
on conversion of warrants and converted FCCBs into 22.8 lakh equity shares.

Satyam Computer surges on upward revision in EPS, revenue guidance

Satyam Computer jumped 4% to Rs 580.50 after the company reported strong Q2
results and revised upwards its FY 2006 EPS and revenue guidance.

3.1 lakh shares changed hands in the counter on BSE.

The stock gained 0.89% on Wednesday (19 October 2005) to Rs 557.45 in
volatile trade ahead of the results announcement.

As in the case of the three other IT majors, TCS, Infosys and Wipro, Satyam
Computer has reported impressive Q2 results on the back of strong volume
growth due to robust outsourcing demand.

Like Infosys, Saytam has also revised upwards EPS and revenue guidance for
FY 2006.

Satyam’s consolidated net profit as per Indian GAAP jumped 34% to Rs 237.33
crore from Rs 176.86 crore in Q2 September 2004. Net sales rose 33.9% to Rs
1,154.96 crore from Rs 862.08 crore. The rise in net profit was partly due
to a surge in other income by 31.6% to Rs 31.55 crore from Rs 23.97 crore.
Both net profit and sales have beaten market expectations.

Satyam Computer expects EPS for FY 2006 at between Rs 29.12 and Rs 29.23,
implying a growth rate of 30.0% to 30.5%. At the time of announcing Q1 June
2005 results, Satyam had forecast EPS of Rs 27.22 and Rs 27.44 for FY 2006,
which indicates a growth rate of 21.5%-22.5%.

The company expects revenue as per consolidated Indian GAAP financials to be
between Rs 4,700 crore and Rs 4,718 crore. This implies a growth rate of
33.5% to 34.0%. At the time of announcing Q1 June 2005 results, Satyam had
forecast FY 2006 revenue at between Rs 4,536 and Rs 4,569 crore, which pegs
annual growth rate at 29%-30%.

Satyam added 1,977 associates during the quarter. It added 32 customers,
including some marquee names from the airline, engineering and the retail
industries, the company said.

Sensex fails to sustain higher level; market breadth quite weak

The market failed to sustain the higher level. Satyam Computer firmed up on
expectations of strong Q2 results. Tisco, Reliance Industries, and Ranbaxy
Laboratories came off the higher level. ACC bounced back from the lower

Suzlon Energy held firm. The stock was trading at Rs 655 - a 28.4% premium
over the IPO price of Rs 510. Volumes in the stock were a huge 66.3 lakh
shares on BSE.

Select side counters edged higher. Stocks like Revathi Equipment, TRF, India
Gelatine, Biopac India, Rishi Laser Cutting, Punjab Communications, Majestic
Auto, Max India, Taj GVK Hotels, Dabur India, Malwa Cotton, PNB Gilts, Tata
Teleservices (Maharashtra), Reliance Capital, Raymond, GE Shipping, i-flex
solutions, Alstom, Scandent Solutions, and Bharat Forge edged higher.

A host of small- and mid-cap stocks lost ground. Stocks like Bombay Dyeing,
Jindal SAW, Indo Gulf Fertilizers, Sunflag Iron & Steel, Mukta Arts,
Padmalaya Telefilms, Mukand, Wimco, Pantaloon Retail, Neyveli Lignite, Essar
Shipping, Hotel Leelaventure, Motherson Sumi Systems, Essar Oil, and CEAT
edged lower.

Market breadth remained quite weak. 2,011 stocks declined on BSE as compared
to 268 stocks that rose. 30 scrips were unchanged. Losers outpaced gainers
by a ratio of 7.5:1.

At 12:17 IST, the Sensex was down 110 points at 8,011. It came off the day’s
high of 8,084.79.

The market opened on a subdued note and the Sensex plunged 150 points by
early trade taking cue from the weakness across global markets. It recovered
from the lower level in mid-morning trade.

The rupee dropped to fresh 11-month lows today, adding to concerns that the
firmer dollar and signs of higher US rates would stem the flow of foreign
funds into India.

Satyam Computer gained 1.6% to Rs 561.80 on expectation of strong Q2
results. Satyam Computer announces Q2 results today. 15.5 lakh shares
changed hands in the counter on BSE.

The strong listing of Suzlon Energy triggered a recovery in power equipment
major Bhel. The stock rose 0.3% to Rs 1,176.

NTPC gained 1.2% to Rs 100.15. 7.5 lakh shares changed hands in the counter
on BSE

Cement major ACC rose 0.3% to Rs 449.25. The stock came off the day’s low of
Rs 442. 86,150 shares changed hands in the counter on BSE.

But Gujarat Ambuja Cements (GACL) (down 1.6% to Rs 65.20) remained weak
ahead of the announcement of Q1 September 2005 results. GACL announces Q1
results today. 4.4 lakh shares changed hands in the counter on BSE.

Wipro (down 0.2% to Rs 372.50) failed to sustain the higher level. Wipro’s
consolidated net profit, as per Indian GAAP, rose 16% to Rs 478 crore (Rs
411.70 crore). Net profit growth was in line with market expectations. Wipro
’s revenue from the global IT services & products business rose 26% to Rs
1,894.80 crore (Rs 1,502 crore). The growth in revenue of the global IT
services & products business beat market expectations.

The company expects revenue from the global IT services business at $ 463
million for Q3 December 2005 – a sequential growth of 7.4% compared to a
revenue of $430.7 million in Q2 September 2005.

Dr Reddy’s Laboratories plunged 4% to Rs 820, ONGC lost 3.9% to Rs 943.50,
Hero Honda shed 3.9% to Rs 688, ITC shed 1.8% to Rs 122.30, and Grasim lost
1.9% to Rs 1,148.

Pidilite’s net profit rose 43.7% growth in Q2 September 2005 to Rs 26.07
crore (Rs 18.15 crore). Net sales rose 16.2% to Rs 232.16 crore (Rs 199.65

Deccan Chronicle Holdings plunged 6.6% to Rs 261.20 even as the company
reported a surge in Q2 September 2005 net profit. The Q2 net profit jumped
51% to Rs 10.62 crore (Rs 7.03 crore). Net sales rose 90.7% to Rs 76.09
crore (Rs 39.88 crore)


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