HOLD CMP: Rs287 Target Price: Rs308 ______________________________________ Increasing approvals for niche filings and sustainable FTF pipeline with 10-12 ANDA launches annually, improve US market revenue visibility Domestic market to sustain growth momentum and outperform industry by 200bps Higher securitized receivables, huge intangibles and R&D capitalization remain key concerns Maintain earning estimates with a Hold rating
- Infosys, ICICI Bank, Maruti, DLF, GIC Hsg, IDBI, L&T, Siemens
News clippings
· Kuwait Petroleum Corporation (KPC) is likely to bid in the forthcoming round of New Exploration Licensing Policy (NELP) with state-owned ONGC. Kuwait Foreign Petroleum Exploration Company (KUFPEC), a subsidiary of KPC, will join ONGC in bidding for oil and gas blocks to be offered in the ninth round of NELP scheduled to be launched on October 15.
· PSL has recently bagged orders worth Rs 5.65 billion. The new orders include an order worth Rs 2 billion from Indian Oil Corporation.
· Sun Pharmaceutical Industries has announced that USFDA has granted a tentative approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Sanofi Aventis`s Rilutek tablets 50 mg.
· Aqua Logistics and its subsidiaries have bagged new contracts worth Rs 1.1 billion. The orders are from clients in pharma, heavy engineering and FMCG verticals for outsourcing and managing logistics.
· Grindwell Norton has acquired about 20 acres of land in the state of Gujarat for setting up a manufacturing facility for its high performance refractories business. The estimated investment for this project is Rs 540 million and it is expected to be completed by end 2011.
Technical Comments
Support of 50-HSMA holds
After a weak opening, profit booking activity remained on the dominant side, until last sixty minutes, where Nifty managed to find support at the 50-hourly simple moving average (50-HSMA) and rebounded sharply to end the day on a flat note. Moreover, today’s price action depicts that a new bullish wave has just begun after a 2-day profit taking session. Hence, we suggest the market participant to ride this fresh leg of impulse upto the target of 6250.
BSE Realty:
After a gap up opening the Realty index managed to hold the bullish gap all through the day, which indicates that the upside momentum is still dominant. Moreover, today’s price action produced a positive crossover of 20- and 50-HSMA, which indicates that our short term target of 3950 will be witnessed shortly.
FOR MORE DETAILS VISIT htp://www.insighttechnicl.netSeptember 10, 2010; Fortnightly round up of key banking and economic indicators
l The growth in the non food credit increased marginally to 19.9% for the week ended Sept. 10, 2010 and deposit mobilization
marginally improved to 14.7%
l As a result the CD ratio moved upwards to 72.1% for the week ended Sept. 10, 2010
l Money supply growth remained unchanged at 15.6% and the money multiplier inched down to 4.86
l Call money rates as on Sept. 27, 2010 have dropped 7 bps from last fortnight to 5.6%
l The spread between call money and reverse repo rates as on Sept. 27, 2010 stands at 60 bps
l Excess liquidity in the system dropped to `34 bn. The repo balances stood at ~ `183 bn. and reverse repo at ~ `15 bn. for the week
ended Sept. 10, 2010
l The spread between the long and short end OIS is trending downwards and stands at 53 bps
FOR MORE DETAILS VISIT http://www.insighttechnical.netKey take aways
§ Reliance, Maruti, DLF, GIC Hsg, ICICI, IDBI, L&T, Siemens, Rel Com, Bharti, Ranbaxy,
Infosys, Rolta
Ashoka Buildcon IPO Note; Attractive valuation ‘SUBSCRIBE’
l Portfolio of 17 projects covering ~3400 lane kms makes Ashoka Buildcon, India’s premier BOT developer. In house EPC arm leads
to timely execution of projects
l NHAI expects to award 18000 kms over FY11-12 - expect Ashoka with significant track record to be amongst the primary beneficiary
l Lucrative BOT portfolio leading to re-leveraging of B/S – 15 out of 20 had got re-leveraged. B/S can be further leveraged by Rs3.5
bn, providing dilution free growth.
l Stock attractively valued - base case value at Rs378 provides 17% upside - Recommend SUBSCRIBE
For more details visit http://www.insighttechnical.net
