Stocks news of the day.
17 May 2011, 03:11 PM SAIL melts down 4.5%
Steel Authority of India (SAIL) touched a 52-week low of Rs 145.25. At 15:09 hrs the share was quoting at Rs 145.40, down Rs 6.85, or 4.50%. It was trading with volumes of 449,391 shares. In the previous trading session, the share closed down 1.87% or Rs 2.90 at Rs 152.25. Share Price Movement During The Last 12 Months Period Price Latest Price Gain/Loss (Rs.) % Gain/Loss 3-Days 153.05 145.40 -7.65 -5.00 5-Days 155.75 145.40 -10.35 -6.65 7-Days 154.65 145.40 -9.25 -5.98 15-Days 159.20 145.40 -13.80 -8.67 1-Month 167.85 145.40 -22.45 -13.38 3-Month 163.20 145.40 -17.80 -10.91 6-Month 189.25 145.40 -43.85 -23.17 9-Month 190.35 145.40 -44.95 -23.61 1-Year 209.75 145.40 -64.35 -30.68.
"State Bank itself has starting to look very tempting. In the PSU space I also like Oriental Bank a lot, but my preference would be for the private sector banks, HDFC Bank and Axis Bank are very interesting and the smaller ones South Indian Bank and Karnataka Bank."
17 May 2011, 03:11 PM
SAIL melts down 4.5%
Steel Authority of India (SAIL) touched a 52-week low of Rs 145.25. At 15:09 hrs the share was quoting at Rs 145.40, down Rs 6.85, or 4.50%. It was trading with volumes of 449,391 shares. In the previous trading session, the share closed down 1.87% or Rs 2.90 at Rs 152.25. Share Price Movement During The Last 12 Months Period Price Latest Price Gain/Loss (Rs.) % Gain/Loss 3-Days 153.05 145.40 -7.65 -5.00 5-Days 155.75 145.40 -10.35 -6.65 7-Days 154.65 145.40 -9.25 -5.98 15-Days 159.20 145.40 -13.80 -8.67 1-Month 167.85 145.40 -22.45 -13.38 3-Month 163.20 145.40 -17.80 -10.91 6-Month 189.25 145.40 -43.85 -23.17 9-Month 190.35 145.40 -44.95 -23.61 1-Year 209.75 145.40 -64.35 -30.68.
"State Bank itself has starting to look very tempting. In the PSU space I also like Oriental Bank a lot, but my preference would be for the private sector banks, HDFC Bank and Axis Bank are very interesting and the smaller ones South Indian Bank and Karnataka Bank."
Nifty volatile; SBI, ONGC struggle to recover
The Indian markets managed to bounce back from the day's low taking support around 5400-mark despite getting a body blow from countrys largest lender, SBI, in the form of poor Q4 earnings.
Oil&gas and banking stocks continued to remain under pressure. The broader markets too recouped their losses marginally. The European markets too recovered from day's low and managed to trade in green territory. At 14.56 hrs IST, the Sensex was down 155.19 points or 0.85% at 18189.84, and the Nifty was down 47.05 points or 0.86% at 5451.95.
About 998 shares advanced, 1782 shares declined, and 861 shares remain unchanged. Top losers on the Sensex were SBI at Rs 2,425 down 7.35%, ONGC at Rs 279.70 down 5.98%, Hero Honda at Rs 1,818 down 2.52%, Reliance at Rs 922.80 down 2.28% and Jaiprakash Asso at Rs 82.95 down 2.12%.
However, Top gainers on the Sensex were Jindal Steel at Rs 646.15 up 2.45%, HUL at Rs 309.10 up 1.66%, TCS at Rs 1,144.30 up 1.46%, ITC at Rs 188.45 up 1.26% and Tata Power at Rs 1,238 up 0.94%.
Top gainers on the BSE Midcap - Puravankara Pro, Berger Paints, Jubilant Food, Stride Arcolab and Den Networks were up 3-5%. Top losers on the BSE Midcap - Abbott India, Techno Electric, KGN Industries, Indiabulls and India Cements were down 4-5%. Top gainers on the BSE Smallcap - Saint-Gobain, Man Industries, Mahindra Forg, Lumax Inds and Prabhav Indust were up 5-16%. Top losers on the BSE Smallcap - Empee Sugars, Parenteral Drug, Kanani Industries, Globus Spirits and Halonix were down 7-10%.
17 May 2011, 12:54 PM
Moneycontrol Bureau India's largest lender State Bank of India's fourth quarter net profit tumbled nearly 99% year-on-year to Rs 21 crore on higher provisioning against non-performing assets and gratuity. This is much below the street expectations. According to CNBC-TV18 forecast, PAT was up 59% at Rs 2963 crore versus Rs 1866 crore year-on-year.
The January-March quarter NII was estimated at Rs 9176 crore. Following the worse-than-expected results, shares of SBI plunged more than 6% to Rs 2,454 on the NSE.
The stock slips sharply The bank's January-March quarter net interest income was up 20% year-on-year to Rs 8058 crore. Net interest margin sequentially fell 31 bps to 3.3% in Q4, FY11. It made a provision of Rs 4157 crore versus Rs 2349 crore a year ago. Out of total provision, the bank has earmarked Rs 3264 crore for NPAs as against Rs 2187. Gratuity provision rose to Rs 1565 crore as against Rs 46 crore in FY10.
| The company's provision for NPAs was up 49% at Rs 3,264 crore versus Rs 2,187 crore, YoY. Its gross NPA at 3.28% versus 3.05%, YoY. Its net NPA was at 1.63% versus 1.72%, YoY. The Reserve Bank of India has mandated that banks must reach provisioning coverage ratio of 70% for the NPAs recorded till September, 2010. The fall in the share price, according to analysts, may be a short term reaction. The bank's balance sheet is now cleaned up. Long term outcome will be healthy for the bank. Bank's loan book expanded 20.32% y-o-y to Rs 7.72 lakh crore while deposits grew a little above 16% to Rs 9.34 lakh crore. |
Nifty ends with moderate gains; Ranbaxy surges 6%
Indian equity benchmarks closed with moderate gains on Wednesday amid a choppy trade, helped by financial, metal, realty, FMCG and Anil Dhirubhai Ambani Group companies' shares. The market has seen a consolidation for the third consecutive session and remained in a range of 5500-5600 levels.
Hemant Thukral, Head - Derivatives Research at SBI Capital Securities says that 5500 seems to the support right now.
"It seems that the market participant’s jitteriness is getting slightly lighter. So people are thinking that 5500, 5450 can hold. If we manage to cross somehow that magical figure of 5630, then we can see a very aggressive short covering on the upside. But till that time it will be more like between 5510-5520 on the downside and 5600-5625 on the upside
Hold Hero Honda Motors; target of Rs 1887: KRChoksey
KRChoksey has maintained hold rating on Hero Honda Motors with a target price of Rs 1887 in its May 5, 2011 research report.
“Hero Honda Motors’ result although inline with our estimates for the fourth quarter was disappointing despite that the company had achieved its highest ever volumes in the current quarter. It was expected that the RM costs would bring a drop in the company’s earnings but depreciation on intangible assets eroded earnings even further. The Net Sales for the quarter stood at Rs 5390.9 crore. V/s Rs 4122.3 crore. in Q4FY10 and Rs 5162 crore. in Q3FY11 which is a growth of 30.8% Y-o-Y & 4.4% Q-o-Q respectively. The average net realization per vehicle also increased in the current quarter Q4FY11 by 6.7% Y-o-Y and 2.5% Q-o-Q.”
“The company saw an increase in raw material expenses and other expenses which included higher advertising spends in the ICC Cricket World Cup. The RM costs for the quarter stood at Rs 3925 crore. an increase of 41% Y-o-Y and 5% Q-o-Q while in FY11 RM costs increased by 32%. The EBIDTA for the quarter stood at Rs 829.9 crore. a growth of 44% Q-o-Q and 17% Y-o-Y. The EBIDTA margins were down by 188 bps Y-o-Y but grew by 420 bps Q-o-Q mainly on account of high topline growth. RM cost have gone up considerably to 73% in Q4FY11 V/s 67% in Q4FY10 as a percentage of sales while in FY11 it increased to 73% from 68% in FY10. The company had trice taken pricing action during the current fiscal but although the realizations improved profitability took a hit since the company could not pass on the entire effect of commodity price hike to its customers. The PAT of the company stood at Rs 501.6 crore. in Q4FY11 V/s Rs 598.8 crore in Q4FY10 a drop of 16% and Rs 430 crore. in Q3FY11 an increase of 17%. The PAT margins declined by 522 bps Q-o-Q due to higher deprecation and higher tax rate of 24% in current quarter.”
“We continue to maintain our positive outlook on Hero Honda’s growth prospects given the growing demand from the rural market and the company’s increasing reach in those markets, better brand recall, no major impact of DEPB or interest rate hike. Although a concerns remain about the impact of commodity prices on the earnings of the company. At the CMP of Rs 1697, Hero Honda is trading at 15.2x its FY12E EPS of Rs 111. With the target price at Rs 1887 using target multiple of 17x, we recommend “HOLD” on the stock,” says KRChoksey research report.
Date : 10 may 11
Nifty lacks spark; HUL, NTPC stand out in flat market
Rajan Malik, Head equities, Private client group, MF Global advised caution at current level. "Right now the joker in the pack is going to be oil and it is difficult to say how it is going to move going forward. But one would assume at least for the next quarter one would have to be very careful with these markets and if anything I would tend to believe that there is more downside risk than upside risk," Malik said.
The 50-share NSE Nifty traded in broad range of 5540-5590 during the day, before closing at 5541.25, down 9.85 points. The 30-share BSE sensex fell just 16.19 points, to end at 18,512.77.
From the general trend in the market, N Sethuram, CIO, Daiwa Mutual Funds said there could be a little more of correction.
"But in terms of the valuation of the stocks and the general market as a whole, we are at levels where the valuations are quite comfortable. I do not see any case for the markets to go down much further from these levels," he said.
Private financial, capital goods, cement and even oil & gas companies' shares saw selling pressure. However, telecom, FMCG and realty stocks provided a support the market.
NTPC and HUL stood out in the flat market, with rising more than 4%. India's largest power generation company NTPC has reported net profit for the quarter ended March 2011 at Rs 2,782 crore - that was quite better than provisional figure of Rs 2,505 crore. Same with net sales figure.
HUL remained on buyers' radar for second consecutive day after fourth quarter numbers yesterday. Even the company had approved demerge of its exports division.
Sterlite Industries, Ranbaxy Labs (ahead of numbers) and Jaiprakash Associates were other top gainers on Nifty, with gaining 2-3%. Heavyweights like TCS, ITC and Bharti Airtel too were gainers.
However, oil marketing companies' shares slipped after Empowered Group of Ministers (EGoM) meeting on fuel price hike has been deferred, reports CNBC-TV18 quoting PTI. BPCL lost 0.5% and Reliance Industries lost 0.9%.
Private financials like HDFC Bank, ICICI Bank, HDFC, Kotak Mahindra Bank and Axis Bank saw profit booking today, with losing 0.5-1.5%. Infosys, BHEL and L&T were other losers, which lost 0.5-1%.
SKS Microfinance and Essar Shipping were locked at 10% upper circuit. SKS rebounded after seeing fall in 12 consecutive sessions and Essar Shipping will be demerged into two companies - existing company will be called Essar Port & demerged entity will be called Essar Shipping.
However, Kwality Dairy was locked at 20% lower circuit despite strong quarterly numbers. Jubilant Foodworks was down 6% on profit booking.
Market breadth was mixed - about 608 shares advanced as against 679 shares advanced on the National Stock Exchange.
But global markets were strong. European markets were trading higher by 1%. Dow Jones and nasdaq futures too were up nearly 0.5%.
London Brent crude was trading at USD 115.14 a barrel, down USD 0.76 and NYMEX crude fell USD 1.29 to USD 101.26/barrel.
HDFC expects margins to remain stable ahead
Private sector lending major, HDFC Limited, announced a 23% jump in net profits at Rs. 1,142 crore for quarter-ended March 2011, compared to Rs 926 crore for the same period last year. A CNBC-TV18 poll had pegged the net profit at Rs 1,054 crore.
Meanwhile, the company's net operating income came in at Rs. 1,655 crore versus Rs 1,339 crore, year-on-year.
Speaking at a press conference, Keki Mistry of HDFC said loan approvals were up 24% while loan disbursals rose by 20%. “The fourth quarter net interest income stood at Rs 1,511 crore compared to Rs 1,287 crore same period last year,” he said.
HDFC's consolidated profit after tax (PAT) was up 40% at Rs 4,528 crore versus Rs 3,241 crore. The consolidated return on equity came in at 22.96% versus 19.6%, year-on-year.
The sequential spreads were stable at 2.33%. Its NIMs were at 4.39% versus 4.27%, year-on-year. HDFC expects margins to remain stable going forward.
“We have always targeted a growth of around 20% and we are reasonably confident that we should be going forward, continue to look at a growth of 20%,” Mistry said.
On the operation side, Mistry said, “Our loan approvals for the year totaled up to Rs 75,185 crore, which represents an increase of 24% over last year's approvals of Rs 65,611 crore. Our total loan disbursements for the year stood at Rs 65,314 crore, which represents and increase of 20% over last year’s disbursements of Rs 50,413 crore.”
“But in this year, the individual component, which is our core business, the individual component has grown at a faster pace with loan approvals growing by 25% and loan disbursements growing by 27%,” he said.
On the provisions, he said, “From a regulatory perspective, we are required to make a provision as per the NHP guidelines — both on standard assets as well as on the sub-standard assets. In addition to that, we have also had a provision that we made in respect of dual rate loans that we had introduced or which we have now discontinued but which were there in the books a year ago. So the total provision that we are required to carry as per regulatory requirement is Rs 814 crore. Of that Rs 814 crore, Rs 447 crore relates to the dual rate loan product which in any case over the next two years will start getting reversed.”
“So from a regulatory perspective including that provision, which will get reversed in future, which will no longer be required in future we require a total provision of Rs 814 crore against which we are actually carrying a provision of as much as Rs 1,124 crore. So in reality, we are 1.4 times higher than what the regulatory prescription for us is,” he said.
