Tata Steel, Cipla, Dabur, Lupin, Piramal and Bijlee: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, fell 218.42, or 1.3 percent, to 16,769.11. The S&P CNX Nifty Index on the National Stock Exchange declined 1.4 percent to 5,018.05. The BSE 200 Index decreased 1.8 percent to 2,127.07. SGX S&P CNX Nifty Index futures for May delivery climbed 1.8 percent to 5,036 at 10:45 a.m. in Singapore today.
Four Indian state-run banks will probably get 15 billion rupees ($330 million) as part of their recapitalization, the Press Trust of India reported, citing unidentified people that it didn’t identify. The government may give Vijaya Bank Ltd. (VJYBK IN) 7 billion rupees, while UCO Bank (UCO IN) may get 3 billion rupees. Central Bank of India (CBOI IN) and United Bank of India (UNTDB IN) may get 2.5 billion rupees each, the news agency said. No timeframe was given in the report.
Vijaya Bank sank 4 percent to 54.6 rupees. Uco dropped 3.6 percent to 70.3 rupees. Central Bank retreated 0.4 percent to 147.45 rupees, while United Bank fell 0.3 percent to 79.65 rupees.
Bharat Bijlee Ltd. (BIJL IN): The maker of electric motors and transformers said fourth-quarter profit climbed 23 percent to 172.5 million rupees. The stock dropped 1.8 percent to 980.35 rupees.
Cipla Ltd. (CIPLA IN): The drugmaker will acquire two manufacturing facilities for 820.2 million rupees, according to a statement on the Bombay Stock Exchange. The shares retreated 1 percent to 342.05 rupees.
Dabur India Ltd. (DABUR IN): The maker of products ranging from beverages to shampoos intends to proceed with overseas acquisition plans this fiscal year, particularly in the personal care and healthcare industries, in the Middle East and African countries, the Press Trust of India reported, citing Chief Executive Officer Sunil Duggal. The stock dropped 4.6 percent to 180.05 rupees.
Dalmia Cement (Bharat) Ltd. (DCB IN): KKR Mauritius Cement Investments Ltd. will invest as much as 7.5 billion rupees in the cement and clinker manufacturer. The shares lost 0.9 percent to 259.55 rupees.
DCM Shriram Consolidated Ltd. (DCMS IN): The producer of sugar, fertilizers, cement, chemicals and textiles will spend 800 million rupees in two years to develop a lignite mine in Rajasthan, the Press Trust of India reported, citing Chairman Ajay Shriram. The company will use the mine’s output to replace coal as the fuel at its Kota power plant, according to the report. The stock sank 4.7 percent to 50.15 rupees.
Dr. Reddy’s Laboratories Ltd. (DRRD IN): India’s second- biggest drugmaker was cut to “hold” from “buy” by Prashant Nair, an analyst at Citigroup Inc., who said the stock is “pricing in most near-term positives.” The stock fell 3 percent to 1,205.6 rupees.
Geodesic Ltd. (GEOD IN): The software maker approved a share buyback offer at a maximum price of 150 rupees. The stock slid 2.5 percent to 115 rupees.
Godrej Consumer Products Ltd. (GCPL IN): India’s second- biggest soap maker will add 500 million rupees to its net income in the year ending March from the acquisition of Indonesia’s PT Megasari Makmur, Chairman Adi Godrej said on May 7. The shares declined 3.2 percent to 304.9 rupees.
LIC Housing Finance Ltd. (LICHF IN): The mortgage lender controlled by India’s biggest life insurer is planning to enter the banking business, the Hindustan Times newspaper reported, citing Chief Executive Officer R.R. Nair.
Separately, the Economic Times reported LIC Housing is planning to raise 200 billion rupees. The stock lost 4.5 percent to 910.15 rupees.
Lupin Ltd. (LPC IN): Novo Nordisk A/S (NVO US), the world’s biggest diabetes-drug maker, sued the Indian company to prevent it from selling a generic version of PrandiMet in the U.S. Lupin shares dropped 1.1 percent to 1,796.95 rupees.
Maruti Suzuki India Ltd. (MSIL IN): The maker of half the cars sold in India asked about 200 vendors to cut their component costs by 3 percent in the year ending March, the Business Standard reported, citing Chairman R.C. Bhargava. The stock was little changed at 1,279 rupees.
MMTC Ltd. (MMTC IN): The state-run trading company expects its sales will increase to 1 trillion rupees in three years, from 450 billion rupees now, the Hindu Business Line reported, citing Chairman Sanjiv Batra. The stock fell 1.4 percent 30,051.6 rupees.
Panacea Biotec Ltd. (PNCB IN): The drugmaker reported a fourth-quarter profit of 575.2 million rupees compared with a loss of 401.7 million rupees in the same period last year. The shares lost 4.3 percent to 225.1 rupees.
Piramal Healthcare Ltd. (PIHC IN): The health care provider and drugmaker said fourth-quarter profit increased 53 percent to 4.82 billion rupees. The shares sank 5 percent to 546.85 rupees.
Reliance Power Ltd. (RPWR IN): The power producer was raised to “hold” from “reduce” by Girish Nair, an analyst at BNP Paribas, who said he sees “limited downside” from the stock’s current levels. The stock dropped 8.9 percent to 140.2 rupees.
Tata Steel Ltd. (TATA IN): Corus Group Ltd., the European unit of India’s biggest producer of the alloy, has hired Citigroup Inc. to sell its mothballed Teesside steel plant in northeast England, the Sunday Times reported, without saying how it obtained the information. Tata Steel declined 3.1 percent to 558.35 rupees.
Torrent Power Ltd. (TPW IN): The power generation and distribution company’s fourth-quarter profit doubled to 2.9 billion rupees. The shares slid 3.2 percent to 308.8 rupees.
Triveni Engineering & Industries Ltd. (TRE IN): The maker of mechanical equipment said quarterly profit declined 61 percent to 14.9 million rupees. Separately, the Press Trust of India reported the company will list its Triveni Turbine unit on local exchanges by the end of 2010, citing Chairman Dhruv Sawhney. The stock retreated 4.2 percent to 104 rupees.
Uflex Ltd. (UFLX IN): The maker of plastic packaging materials will invest 1.25 billion rupees to set up a factory in Jammu, the Press Trust of India reported today, citing Chairman and Managing Director Ashok Kumar Chaturvedi. The facility will begin operating by April 2011, the report said. The stock plunged 6 percent to 113.35 rupees.