Jubilant Life tanks 13%, Q2 loss widens; Macquarie positive

However, Macquarie has an outperform rating on the stock with a target of Rs 220 per share but has cut FY15/ FY16E earnings per share to Rs 23.60/Rs 30.30.

Moneycontrol Bureau

Shares of  Jubilant Life Sciences tanked 13 percent intraday on Wednesday after it reported dismal July-September quarter results. The drug company's net loss widened to Rs 94.11 crore in Q2 from Rs 80.58 in year-ago period.  

During the quarter, its net sales fell around 4 percent to Rs 1362.11 crore. Its EBITDA margin fell to 8.1 percent primarily due to warning letter at Spokane and slowdown in Advanced Intermediates business in Chinese market. 

However, Macquarie has an outperform rating on the stock with a target of Rs 220 per share but has cut  FY15/ FY16E earnings per share to Rs 23.60/Rs 30.30.

According to the brokerage, margins recovery will be the key. The company expects margin to recover going forward as Montreal facility is back to normal production and the Spokane facility will resume full production by 4Q FY15.

At 12:04 hrs Jubilant Life Sciences was quoting at Rs 148.00, down Rs 16.85, or 10.22 percent on the BSE.

Posted by Nasrin Sultana

14.03 | 0 komentar | Read More

Here are few stock trading ideas from Ashish Chaturmohta

Watch the interview of Ashish Chaturmohta of Fortune Equity Broker with Anuj Singhal & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

Watch the interview of Ashish Chaturmohta of Fortune Equity Broker with Anuj Singhal & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

14.03 | 0 komentar | Read More

Buy IRB Infra, Burnpur Cement, Marksans Pharma: Pankaj Jain

Pankaj Jain of Sunteck Wealthmax advises buying Marksans Pharma for a target price of Rs 64.90 and IRB Infrastructure for a target price of Rs 265.

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Sunteck Wealthmax shares his trading strategies for the day.

One may go long in  Snowman Logistics for a target price of Rs 115 and keep a stoploss at Rs 103.

Buy  Burnpur Cement for a target price of Rs 15.90 and keep a stoploss at Rs 13.25.

One may go long in  Marksans Pharma for a target price of Rs 64.90 and keep a stoploss at Rs 57.75.

One may go long in  IRB Infrastructure for a target price of Rs 265 and keep a stoploss at Rs 248.

14.03 | 0 komentar | Read More

Margins may stay stressed; to grow 20% in FY15: Manjushree

Manjushree Technopack Limited  reported a weak set of earnings for July - September quarter. In an interview to CNBC-TV18, company MD Vimal Kedia spoke about the financial performance of the company in the quarter gone by and the road ahead.

According to him, cost pressure and competition impacted margins in Q2 preventing any price increase. Although plunging crude prices will eventually reduce raw material cost price, company's margins could remain under pressure, he adds.

Going ahead, he expects Manjushree Technopack to post a 20 percent revenue growth in FY15.

Below is the verbatim transcript of the interview:

Q: What went wrong in this quarter? I believe that at least on the top line you have shown a good growth of around 25 percent but on the operating margin front its come down to sub 20 percent. Why did we see this margin compression?

A: There as been a cost pressure towards the material as well as the manpower over the last year. The power tariff also has been increasing. There is a competition in the market in our area of pet bottles that we manufacture from the small people and unorganized sector. The customers are not willing to increase the prices hence we see this downtrend. However we are trying to do our best to bring down the other cost and we look forward for a better quarter in the third and fourth quarter.

Q: Are you still facing these higher cost pressures, increased competition and inability to raise your prices even in Q3 quarter? In Q3, what would your margins look like. Is there a scope for it to improve or will it come under further pressure?

A: We can't say correctly but it's under pressure because there is a huge competition over last two years. Large capacities have been built in the preform segment, which we supply to beverages majors and when the supply is more the buyers get a chance not to increase the prices and still try to buy at a lower price. However, with our quality and other parameters we are trying to increase the profitability by increasing the prices, which again is resisted by the customer.

Q: We normally look at it on a year-on-year basis but what went so right that in quarter one your numbers were looking absolutely blockbuster. Your topline was a good Rs 170 crore; your margins were around 22 percent, the profitability jumped up. What was so different in the first quarter of this year and what's so different in the second quarter?

A: Normally ours is a seasonal business also so the first quarter is always better than other quarters and due to higher sales the profitability increases. However if you compare the sales over the last quarter the sales are down by almost 20-25 percent and this is a normal feature. However there is a pressure on the cost that I already explained to you, which we are trying to solve it by many features and many actions taken by our end and try to increase the profits by increasing the prices with all the customer.

Q: How soon could you increase your prices?

A: It's revised with our customers normally once in a year but this year there is a lot of resistance because the fast-moving consumer goods (FMCG) market also is not reacting very positively.

Q: Just want to ask you at the halfway mark you have done close to around Rs 275 crore and it's seen a good growth of around 35 percent on a year-on-year basis that is at the halfway mark. Here you have been doing a 30 percent compound annual growth rate (CAGR) over the last few years is that possible this year and if that happens then will you be closer towards Rs 550-600 crore on the topline?

A: We should be able to grow by 20 percent over last year because of a larger base. We don't think we can cross Rs 550 crore however always the ambition is to get more and more but then we can't say if there are orders in the last quarter once we start the onset of decision. There may be improved numbers.

Q: So 20 percent revenue growth is what you are forecasting for FY15?

A: Right.

Q: Can you tell us little more about the promoter holding in the company. Where does it currently stand at, are the promoters looking to increase their stake. How much of they already bought by the creeping acquisition route?

A: Promoters are holding 71 percent as on today. In the current financial year we increased it by two percent last year it was 69 percent. We don't propose to increase our holdings at these prices because the prices are abnormally high. So we still hold the majority so we don't need to increase our shareholding further.

Q: What is your total capacity at present? I believe that there was an addition of around 20-25 percent so what will that mean in terms of numbers may be in the next couple of years?

A: At present our rated capacity is 80,000 metric tonnes and last year we achieved close to 70 percent that is about 60,000 metric tonnes. This year we should be doing about 65,000 to 70,000 metric tonnes and as per the sales growth the capacity also will be utilised with the built up of our last plant year before. There is a pressure on the margins because of higher debt and that should come down in times to come.

Q: How does the falling crude price benefit you all and how will it show in your profit and loss (P&L)?

A: Falling crude prices definitely will reduce our raw material prices in due course but the raw material sellers have a habit of increase the price immediately when it goes up but when it comes down they slow it down they don't give us the effect which actually should have been given. Although the international markets are down, we are not seeing the effect in India.

14.02 | 0 komentar | Read More

Bull or bear: Is BHEL about to enter a cyclical upturn?

Shares in Bharat Heavy Electricals Ltd (BHEL)  have been on an upturn recently amid hopes it would be a beneficiary of steps taken by the new government to revive India's flagging power sector.

Over the past six months, BHEL stock has risen about 33 percent, compared to an 18 percent gain for the Sensex while the stock has jumped over 80 percent of the past year, compared to a 30 percent rise for the benchmark.

CNBC-TV18's Latha Venkatesh and Sonia Shenoy caught up with two analysts who share different outlooks for the stock going forward. Dhirendra Tiwari of Antique Institutional Equities is bullish on BHEL and has a target price of Rs 315 on the stock, an upside of 27 percent from current levels, while Amol Rao of AnandRathi is neutral on the stock.

Read on to know their respective views.

Below is the transcript of the interview on CNBC-TV18.

Sonia: You have a fairly positive view on BHEL, why do you think the stock has rallied so much and when do you expect to see any kind of fundamental earnings recovery in the company?

Tiwari: You need to understand what Bharat Heavy Electricals (BHEL) is all about. There is the case for strong revival in power equipment market today. So two things, one BHEL is fundamentally strong company with very strong management and products. The problem with the stock performance and de-rating was the market was bad.

Now there are two aspects to the market, the near term revival is obviously visible. The second aspect is that if one looks at the long-term trend in the power market in India, we are of the opinion that there is likely scenario of acute shortage of power three-four years down the line. So what happens that policy makers in power business take a very holistic view. So today if one has to look up and see what is the power environment in 2018-19, one has to plan from today.

So based on my meetings with the top bureaucrats and the policymakers in Delhi, there is serious realisation that there is acute shortage waiting for India in next four-five years. So there is policy action towards that and therefore the market is expected to revise significantly. BHEL being the strong contender in the boiler-turbine-generator (BTG) market will benefit meaningfully from that as well.

Latha: When do you see orders coming in for BHEL?

Tiwari: The important thing is to understand what power is. Today there are three aspects of the power producers, there is an independent power producer (IPP), there is state electricity board and there are central PSUs. When you say there is surplus power or the power producers are in bad shape, you are talking about IPPs. So that is one segment of the market and state generation companies, they were not in the market. So why should I assume that if IPP is struggling, then the whole power sector is in a mess.

What I believe is there is a particular cycle, there was a cycle of IPPs for last four-five years and there is going to be a cycle for the central PSUs and state PSUs for next four-five years.

You will be surprised to know that in last seven months about 10000 megawatt power projects have already been awarded. I know for sure that there is a pipeline of 15000-16000 megawatt from mainly state and central PSUs to be awarded in next six-seven months. So the basic argument that where are the power projects, is already busted because we already have seen awarding of really 10000-11000 megawatt power projects in last seven-eight months. So that point is already taken care of.

The issue today with BHEL is that can we see the sustained growth and I believe that there is a likelihood of sustained growth in this particular market now.

Sonia: Last quarter the management already expressed that hope of recovery. If you look at what they mentioned in their conference call, they stated that as against 6.2 gigawatts of orders finalised in FY14, they expect 16 to 18 gigawatts by the end of FY15. So they had expressed that improvement in orders. How much of that do you think is already priced into the stock in this run-up or do you see more to go on the upside?

Tiwari: It is not priced in at all. If you look at what can result into. When you look at 16000-18000 megawatt of power projects, there is one state Telangana, this state has no power plants. There is new CM, new project and basically they are looking at significantly making state power.

Now if you go through the news of recent times you will understand that BHEL has signed an MOU with Telangana state government to set up 6000 MW power projects. Now that is not included in the 16-18000 mw that we are talking about.

Since this is an MOU this kind of order can straightaway come to BHEL over next five-six months. Understand the value of that, it is Rs 30,000 crore order value for BHEL. So what can happen to the stock. So today when we see at BHEL there is concern of ordering which is probably being taken care of, there is concern of margin which I think is going to be a bigger surprise. I firmly believe that BHEL can go to 15-16 percent margin and therefore it can result into meaningful earnings recovery. So if I look at this year definitely no earnings growth, probably there will be a degrowth but next year definitely is going to be at least 10-12 percent kind of earnings growth. But FY17 could be a year where one can look at 50-60 percent kind of earnings growth.

Now if you look at BHEL stock price it is a long gestation business so typically if you have studies BHEL for last 10-12 years you will realise that the market value discounts at least three years ahead of earnings. So if I see earnings recovery in FY17-18, I would definitely look the stock will start reacting today itself. So that is the reason I am saying that it is not discounted fully. So it is just Rs 50,000 crore market cap stock.

14.02 | 0 komentar | Read More

India Cements: Q2 results on Nov 12, 2014

India Cements has informed that meetings of the Audit Committee and Board of Directors of the Company will be held on November 12, 2014, to consider, the unaudited financial results for the quarter and half-year ended September 30, 2014 (Q2).

India Cements Ltd has informed BSE that meetings of the Audit Committee and Board of Directors of the Company will be held on November 12, 2014, inter alia, to consider, the unaudited financial results for the quarter and half-year ended September 30, 2014 (Q2).Source : BSE

Read all announcements in India Cements

14.02 | 0 komentar | Read More

FTIL may go Satyam way, but legal tussle could ensue

Moneycontrol Bureau

In what would be only the second instance since the Satyam Computers scam broke out in 2009, the government is considering superseding the board of Financial Technologies India Limited (FTIL) , the listed parent firm of scandal-tainted National Spot Exchange Limited (NSEL), according to a report in the Indian Express this morning which quoted sources.

FTIL is promoted by Jignesh Shah, who was arrested and later granted bail in the Rs 5,600 crore NSEL case, in which the spot exchange was, in August 2013, discovered to have violated regulations by facilitating forward trades without ensuring adequate underlying collateral. The trades initially fetched solid returns for investors but later turned out be a Ponzi scheme, according to the Mumbai police .

Shah owns 45.63 percent in FTIL, which in turn owns almost 100 percent stake in NSEL. However, Shah has denied wrongdoing, saying he was unaware of goings-on at the spot exchange and put the blame on its erstwhile management.

The regulator, Forward Markets Commission, has appointed its own nominees on the NSEL board and ordered FTIL to shed its stakes in any exchange it promoted: three major exchanges it anchored were commodity futures exchange MCX , stock exchange MCX-SX and the NSEL spot exchange. Before that, the Arvind Mayaram committee had recommended a management takeover of all three exchanges.

However, both the merger as well as supersession of the board could run into legal issues, considering FTIL is a listed entity and forcing it to essentially assume all of NSEL's liabilities could be considered detrimental to their interests.

In a discussion with the CNBC-TV18's Menaka Doshi in May this year , Shuva Mundal of AZB, laywer for the NSEL Investor Forum, said that the legal basis for supersession of FTIL's board would depend on whether it is proved if FTIL was actively involved in perpetrating the fraud. "If you ask me at this stage there are not enough facts out there to demonstrate that," he conceded.

While the above discussion took place several months ago, not much has moved in the case and while a criminal investigation is on by the CBI and Mumbai police as well as a court case is being heard, wrongdoing on Shah's or FTIL's part has not been proved.

A similar point was raised H Jayesh, another lawyer, who said such a takeover would hinge on proving the fact that FTIL set up NSEL with the sole intention of perpetrating fraud.

"That is the major intent out there we are talking about. If not so then on what basis are we talking about going after the assets of FTIL," he said, adding that even if a few directors of FTIL, Shah for instance, were proved to have the intent of committing fraud, "attributing the intent to a corporate entity as a whole was a different thing."

Shah's legal defence team has also rubbished parallels between Satyam and FTIL. In the former case, its founder Ramalinga Raju had confessed to inflating cash and profits at the firm for years, while in the case of FTIL, "there is the strongest possible denial of any wrongdoing," the defence laywers said. "You cannot penalise the holding company's shareholders for a mishap at one of its subsidiaries."

Some lawyers also insisted that there was a bit more needed to "lift the corporate veil", where key shareholders, who are normally not held liable for misgivings on the part of illegal activities company, can be prosecuted.

"If there are sufficient assets available [to recover money lost in the NSEL fraud] there is no question of lifting the veil and going after the assets of FTIL," said lawyer Akila Agarwal of Amarchand, who advised the government during the Satyam scam, pointing to the fact that the government has already attached assets worth thousands of crores of key NSEL borrowers to try and recover money. "The question of lifting the veil arises only when there are insufficient assets on the primary people concerned in NSEL."

14.02 | 0 komentar | Read More

Nifty holds 8000 amid consolidation; HUL slips over 1%

HUL traded weak ahead of it's second quarter earnings later today, down over a percent. A CNBC-TV18 poll expects sales growth to remain muted across most categories with 5 percent year-on-year volume growth. Operating profit margin is likely to see an improvement of 90 bps.

12:24

Moneycontrol Bureau The market remained directionless in the expiry week. The 30-share BSE Sensex declined 6.68 points to 26844.37 while the 50-share NSE Nifty held 8000 level, down 2.50 points to 8012.05. Banking and financials, and capital goods stocks supported the market while auto, FMCG and oil stocks declined.

Adrian Mowat of JPMorgan turned more bullish on India post the Brazilian election outcome, saying he would add more money into Indian equity market especially into banks and cyclicals like autos and building materials. He expects 20 percent returns from Indian market in next 12 months.

DLF and Jindal Steel topped the selling list in the Nifty, down nearly 8 percent. As far as DLF is concerned, reports indicated that the new BJP government in Haryana is going to heavily probe the company's land deals with Robert Vadra (son-in-law of Sonia Gandhi). In case of JSPL, report indicated that CBI registered preliminary enquiry against the company and some environment ministry officers for alleged diversion of forest land.

In key results today, HUL traded weak ahead of it's second quarter earnings later today, down over a percent. A CNBC-TV18 poll expects sales growth to remain muted across most categories with 5 percent year-on-year volume growth. Operating profit margin is likely to see an improvement of 90 bps.

L&T, Bharat Electronics and Walchandnagar Industries shot up 1-10 percent on the hope of additional orders after the centre gave nod to defence projects worth Rs 80,000 crore.

Tata Motors fell over 2 percent followed by ONGC, Reliance Industries, Wipro and NTPC with around a percent. However, Dr Reddy's Labs and BHEL gained 2-3 percent.

11:07

BHEL, Dr Reddy's Labs, HDFC, GAIL and SBI are major gainers while Tata Motors, ONGC, HUL, M&M and NTPC are major losers in the Sensex. DLF is down 8 percent.

Read More »

10:00

Commercial vehicle maker Tata Motors and utility vehicle maker Mahindra & Mahindra fell more than 1.5 percent on profit taking. Two-wheeler manufacturers Hero Motocorp and Bajaj Auto declined 0.8 percent each while car maker Maruti Suzuki lost 0.4 percent.

Read More »

09:11

Dr Reddy's Labs, TCS, BHEL and HUL are top gainers in the Sensex. Among the losers are Wipro, GAIL, Cipla and Sun Pharma.

Read More »

14.02 | 0 komentar | Read More

Buy Kalpataru Power, Den Networks: Shahina Mukadam

According to Shahina Mukadam of Varun Capital, one may buy Kalpataru Power Transmission with a day target of Rs 163 and Den Networks with a stoploss of Rs 176.

In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

Kalpataru Power Transmission  has moved up on good volumes. The transmission and distribution (T&D) business is doing pretty well with good growth and order book as well as profitability. I believe FY15 valuations are quite attractive, price to earnings (PE) would be in single digits. I buy it with a day target of Rs 163 and a stoploss of Rs 148.

Den Networks  is the India's largest cable network distributors. In terms of business the company is showing pretty good growth. Profits were affected due to some non-recurring items. I believe FY15 would be much better. I buy it with a stoploss of Rs 176.

Godrej Industries , the technical charts are showing very good patterns. It is bouncing up from its double bottom. I believe this bounce could take it up to Rs 300 odd in the short-term. The company gives you an exposure across segments which include chemicals, agri-feeds also in properties through Godrej properties. I buy it with a stoploss of Rs 289.

14.02 | 0 komentar | Read More

The Future Of Tax!

Published on Sat, Oct 25,2014 | 17:40, Updated at Sat, Oct 25 at 17:42Source : CNBC-TV18 |   Watch Video :

This week, The Firm reports from on location the 68th Congress Of The International Fiscal Association. 1000 tax professions in Mumbai debating Tax Morality, Double Non-Taxation, Base Erosion, Profit Shifting, Digital Economy Taxation & Treaty Abuse. As the global economy is awash with tax challenges, The Firm focussed on revenue reform – what are countries doing to stake claim to their 'Fair Share Of Taxes'. The many trillion dollar question is the impact on how MNC's do business across the world. In this special episode of The Firm, on location the 68th Congress Of The International Fiscal Association, Menaka Doshi speaks to four of the world's best tax experts - Porus Kaka, Senior Advocate & President - International Fiscal Association; Philip Baker -QC, Gray's Inn; Michael Lennard, Chief - International Tax Cooperation, United Nations & Pramila Shrivastav, Former Chief Commissioner - Income Tax.

14.03 | 0 komentar | Read More