Elder Health Care to build its own brands

Elder Health Care a part of Elder group of companies is planning to build its own brands. In this regard, the company has lined up about half-a-dozen launches this year. Following this, the company aims to have a 50:50 ratio between in-licensed products and own brands over the next three to five years as against the present 90:10 in favour of in-licensed products

The company is also targeting for a massive increase in its turnover by FY13 at Rs 300-crore against Rs 80-crore in FY10. It plans to launch Octane in April and together with fuel and targeting an 8-9% market share in deodorants.

Elder Health Care is engaged in manufacturing of a range of FMCG and skin care products through research and development and also products through licensing agreements with Indian and International companies. It has a strong portfolio of brands -- Fairone, Tiger, AMPM, Anthical, Eldercoid, Isoace among others -- that are having major market shares in their respective segments. The company has manufacturing facilities in Patalganga and Rabale.

BUY SESAGOA(500295) 21/03/2011

BUY SESAGOA(500295): 258-259 STOP-LOSS:253 TARGET:263 TGT2:269.70  FOR 2-3DAY CALL FOR POSITIONAL  

BANKNIFTY FOR SUPPORT 21/03/2011

BANKNIFTY (2nd Resistance) 11036.7
(1st Resistance) 10896.4
Pivot point 10817.7
(1st Support) 10677.4
(2nd support) 10598.7

NIFTY FOR SUPPORT 21/03/2011

NIFTY (2nd Resistance) 5545.22
(1st Resistance) 5466.03
Pivot point 5423.02
(1st Support) 5343.83
(2nd support) 5300.82

Reliance Power gains on getting 5 power projects in Himachal Pradesh

Reliance Power is currently trading at Rs 122.55, up by 1.30 points or 1.07% from its previous closing of Rs. 121.25 on the BSE.

The scrip opened at Rs. 122.60 and has touched a high and low of Rs 123.45 and Rs 122.10 respectively. So far 75,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 191.00 on 11-Nov-2010 and a 52 week low of Rs 106.15 on 25-Feb-2011.

Last one week high and low of the scrip stood at Rs. 127.60 and Rs. 120.10 respectively. The current market cap of the company is Rs. 34011.63 crore.

The promoters holding in the company stood at 80.42% while Institutions and Non-Institutions held 6.46% and 13.08% respectively.

Corporate giant, Reliance Power has got five out of the 18 hydropower projects for which global bids were invited by the Himachal Pradesh. The company was allotment the 300 MW Purthi, 94 MW Teling and 44 MW Shangling, all in Lahaul and Spiti district, 130 MW Sumte Kothang and 104 MW Lara Sumta projects in Kinnaur district.

As per Himachal Pradesh's amended power policy, the bidder who offers more free power to the state in addition to the fixed quota are allotted projects. During the previous Congress government, the projects were allotted on the basis of highest upfront premium.

Himachal Pradesh has ample water resources with a power potential of about 23,000 MW. About 6,672 MW have been harnessed till now by the central and state governments, private players and joint venture companies.

REC to raise $1 billion in FY12 through ECBs or corporate bond

India’s state-run lender Rural Electrification Corporation (REC) is planning to mop up about $1 billion in FY12 through issue of external commercial borrowings (ECBs) or corporate bond issues in the USA.

Recently, the company had raised $500-million through a bond issue in the international market. The company also announced to raise $200 million from the offshore loan market by the end of the current financial year.

Rural Electrification Corporation is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them. The company reported a surge of 40.08% in net profit of Rs 664.09 crore for the quarter ended December 2010 compared to Rs 474.07 crore in the same quarter last year.

Godawari Power get courts sanction to amalgamate Hira Industries and R.R.Ispat with itself

The High Court of Chhattisgarh and Bilaspur have sanctioned the scheme of amalgamation of Hira Industries (HIL) and R.R.Ispat (RRIL) with Godawari Power and Ispat (GPIL). The order was passed dated March 17, 2011 and the company has received the certified copy on March 19, 2011.

Pursuant to the said Scheme of Amalgamation GPIL shall issue 36,86,440 equity shares of Rs 10 each fully paid to the equity shareholder of HIL. The shares of RRIL shall be cancelled since the entire share capital of RRIL is been held by GPIL. Further as per the scheme of amalgamation 11,25,000 equity shares of GPIL held by the RRIL shall be transferred to GPIL beneficiary trust.

The said Scheme of amalgamation shall come into effect after filing of the certified copy of the said order with Registrar of Companies within 14 days from the date of receipt of copy of the order.

Lanco Infratech’s group company synchronizes its 600 MW unit

Lanco Infratech’s group company - Lanco Anpara Power - has successfully synchronized Unit I (600 MW) on March 19, 2011. With this Lanco Infratech becomes the country's no 1 independent Power Producer (IPP) with present installed capacity of about 3,292 MW.

Recently, Lanco’s another group company - Udupi Power Corporation - has successfully synchronized Unit II (600 MW) with the grid on March 08, 2011. The Unit 1 (600 MW) of Udupi Power Corporation (UPCL) was synchronized with the grid on June, 3 2010.

Lanco Infratech is one of the fastest growing integrated infrastructure enterprises of India, operating across a synergistic span of verticals comprising power generation, power trading, non-power infrastructure, construction, EPC, property development and renewable (solar and wind). Lanco Infratech posted net profit of Rs 133.56 crore for the quarter ended December 31, 2010 as compared to Rs 114.51 crore for the quarter ended December 31, 2009, up 16.63%.

Kingfisher Airlines, RCom, Monnet Ispat and United Spirits likely to witness some action today

Both lenders and promoters will pick up equity in debt-laden Kingfisher Airlines at a substantial 64% premium to its current market price by March 31 if the company keeps its commitment on timelines earlier agreed upon.

FMCG player, Elder Health Care, has decided to give more focus to building its own brands and has lined-up about half-a-dozen launches this year.

Bharati Shipyard plans to focus strongly on the offshore and defence segments and expects over Rs 2,000-crore of orders over the next one year.

Monnet Ispat and Energy has bought a 100-million tonne coal mine in Indonesia. The company has been in serious talks for the past 5 months to buy a 100-million tonne thermal coal mine in Indonesia. The acquisition is now complete and the announcement will happen on Monday.

Air conditioner maker Voltas has signed an agreement with Germany-based Kion Group to establish a joint venture in India for developing and servicing industrial trucks and warehousing equipment.

The finance ministry said that the government should not arm-twist Cairn Energy by linking the approval of the $9.6-billion Cairn-Vedanta deal with disputes between the British explorer and its estranged partner, ONGC. At a time when the episode of Cairn's acquisition by Vedanta is unfolding, the shareholders of the petroleum explorer are facing a confusing predicament. With crude oil prices soaring above $100, a number of broking houses are valuing Cairn's shares at Rs 420 or higher apiece.

Vijay Mallya-led United Spirits (USL) will invest around Rs 600 crore to set up glass manufacturing plants, as the world's largest liquor firm by volume tries to rein in volatile input costs.

State-run Rural Electrification Corporation (REC), plans to raise around $ 1-billion in 2011-12 through a corporate bond issue in the USA.

Consumer products major Procter & Gamble’s (P&G’s) recent move to slash prices of its hygiene products, Whisper and Pampers, is likely to push its rivals to take price cuts soon.

With the Centre’s clean energy cess on coal, Coal India (CIL) is set to pay a little over Rs 2,150 crore on it. The cess is expected to put additional burden on consumers.

Ansal Properties & Infrastructure has booked sales of about 2.92 million sq ft, aggregating to sale value of about Rs 294 crore in the month February.

BF Utilities’ all transactions in relation to the FDI in Nandi Economic Corridor Enterprises (NECE) have been recently completed by NECE.

Corporate giant, Reliance Power has got five out of the 18 hydropower projects for which global bids were invited by the Himachal Pradesh.

Union Bank of India has entered into an agreement with Lintas Media Group for a period of two years from October 01, 2010 to September 30, 2012. As per the agreement, Lintas Media will develop, plan and implement media strategy for the bank.

State Bank of India (SBI) has raised around Rs 150 crore through 3 months certificates of deposit (CDs)  at 9.75% and Rs 820 crore via one year CDs at 9.95%.

HDFC Bank, second largest private bank in the country, has inked an agreement with Shri Jirawala Parshwanath Chowis Tirthankar Trust for offering online donation.

Reliance Communications' plan to sell its 50,000 towers asset faces a set back as American Tower Corporation (ATC) is not eyeing these towers. There was an increased speculation that Reliance Communications was being wooed by players to pick up the company’s asset with US headquartered - ATC one among them.

Hindustan Motors (HML), India’s pioneering automobile manufacturing company is set to get its most radical makeover of Ambassador in the six decades of its history.

Spectacle Infotek, a leading provider of software development and support services, has successfully completed implementation of its software to various professional colleges and schools.

Tata Group’s arm Titan Industries (TIL) is likely to enter Indonesia by July this year as a part of overseas expansion plans and it is also looking to appoint local partner in the country.

Engineering solutions company Hindustan Dorr-Oliver (HDO) has received orders worth Rs 54.64 crore from Nuclear Power Corporation of India, or NPCIL, for manufacture and supply of process equipment, namely, emergency condensers and D20 exchangers for its Kakrapar Atomic Power Project in Gujarat and Rawatbhatha Atomic Power Project in Rajasthan.

Markets likely to get a positive start on supportive global cues

The Indian markets once again suffered sharp cuts on Friday; investors were still to overcome from the pressure of rate hike by RBI and the rise in crude prices too weighed on the sentiments. Today the start is likely to be positive as the global cues are supportive, however the crude prices are still moving higher after the Gaddafi violated cease fire and air bombardment from American, French and British forces took place to protect Libyan civilians from government troops. On the domestic front Finance Minister Pranab Mukherjee has said that the Reserve Bank of India's move to hike key policy rates by 25 basis points would help curb inflationary pressure. On the same time there is a bad news for the oil marketing companies as the Prime Minister’s Economic Advisory Council (PMEAC) has said that the government would wait for inflationary pressure to calm down before freeing the diesel prices. However the PMEAC has exuded confidence that inflation will decline to below 6 per cent in the first few months of the next fiscal, even as the Reserve Bank revised upwards its March-end inflation projection. The PMEAC Chairman C Rangarajan also said that RBI would halt increase in key policy rates once the headline inflation comes down to around 6 per cent.

The US markets managed to close in green on Friday as the Libyan tension eased a bit, also the G7 nations pledge to support Japanese currency from moving higher in the time of crisis helping the markets closed higher. Most of the Asian markets have made a green start and major indices are trading higher by half to one percent.

Back home, Indian benchmarks once again settled in the red zone on the last trading day of the week as hefty profit booking by funds and retail investors continued for the second straight day after the RBI hiked its key policy rates to curb inflation on Thursday. Sentiments remained subdued as investors feared that more rate hikes are on cards as RBI’s tone was hawkish as it battles spiraling inflationary pressures which threaten to derail the robust growth of Indian economy. The gloomy reports from the political front too did no good to the local sentiments as the opposition demanded resignation of Indian Prime Minister following a wikileaks cable showing bribes had been given by the ruling UPA government members for votes during a no confidence motion after an Indo-US nuclear treaty. While in the global space, sanguine cues from the Asian and European markets went largely unnoticed as investors factored in the spike in international crude oil prices which surged in the session after a vote by the United Nations Security Council (UNSC) authorizing the imposition of a no-fly zone over the Libya. The NSE’s 50-share broadly followed index Nifty, breached the crucial 5,400 support level while Bombay Stock Exchange’s Sensitive Index, Sensex infringed the psychological 18,000 mark after shaving off over two hundred fifty points. The broader markets traded with some resilience though and finished with relatively smaller losses thereby outshining their larger peers. Earlier on Dalal Street, the benchmark ricocheted by around 100 points in the opening trade, with finance and other sector stocks rising on the back of supportive cues from overnight US markets which surged around one and half a percent on a slew of good economic reports that helped to put aside the fear of Japanese crisis. However, the frontline indices immediately erased all the opening gains and treaded on a southbound journey thereafter, since unpleasant reports related to the index heavyweight RIL’s lower than estimated gas production from its KG Basin block hit headlines. Sentiments were also dampened after the opposition raised questions on Congress, which is already burdened by corruption charges, culpability after wikileaks cables revelation. The bourses touched intraday lows in the dying hours of session as they infringed crucial support levels to eventually settle with losses of around one and half a percent. Finally, the BSE Sensex plunged by 271.06 points or 1.49% to settle at 17878.81 while the S&P CNX Nifty fell by 72.95 points or 1.34% to end at 5373.70.

FII DII DATA 21/03/2011

Net Index Futures (-510), Net Stock Futures (-273), Derivative Market: Total Open Interest (Rs 1,44,986 cr), Stock Futures Open Interest (Rs 31,711 cr)

India Inc raises $2.7 billion in foreign borrowings

As rate domestic cost of borrowing begins to rise amidst continued monetary tightening by the central bank, India Inc is increasingly looking to overseas sources of funds. In the month of January, Indian companies raised over $2.7 billion through External Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds, showed the data compiled by the Reserve Bank of India (RBI).

Out of the total amount, around $1.93 billion were raised through the automatic route, which does not require the approval of either the central bank of government. A total of 35 companies availed foreign borrowings under automatic route. The remaining sum of around $773 million was raised by four companies under the approval route.

The biggest funding was availed by the government controlled Hindustan Petroleum Corporation (HPCL) that raised $400 million through the ECBs for modernizing its plants in India. Another major borrowing came from the construction and Infrastructure company SP Jammu Udhampur Highway that brought in $ 350 million via ECBs for various road projects being undertaken by it.

Indian companies are allowed to raise up to $500 million from overseas sources in a financial year under the automatic route for specified purposes. In case the objective for raising loans is not covered explicitly under the automatic route, the central bank takes a decision under the approval route. Often when the domestic rate cycle is on the uphill journey, as is the case presently, the foreign borrowings of India Inc increase as foreign funds become cheaper in many cases.

Monnet Ispat to acquire Indonesian coal mine

Monnet Ispat is close to acquiring a coal mine in Sumatra, Indonesia. The company would complete the acquisition of the coal mine by this week and will announce the news of acquisition early next week.

Monnet Ispat will utilize the coal from the Indonesian mine for its merchant power plant of about 2000 MW. The company is already setting up a 1050 MW plant in Orissa for which the coal will be sourced from its domestic mines.  It has ventured into merchant power business through its subsidiary – Monnet Power.

As there is mismatch in demand supply of coal due to which there is short supply of coal and prices rises sharply, power and steel companies are scouting for coal assets abroad. To keep control on their coal costs in future the company has been looking for a coal mine from a long time.

Last month, Monnet Ispat and Energy’s subsidiary --Monnet Power Company -- was aiming to invest around Rs 3,300 crore for increasing power generation capacity of its plant being built at Angul in Orissa. The company is engaged in the business of sponge iron, steel ingot and billets and coal mining.

Bharti Airtel set to buy Qualcomm Inc’s 4G licenses

Bharti Airtel, India’s largest integrated telecom services provider is likely to buy Qualcomm Inc.'s (QCOM) India’s yet-to-be-launched broadband wireless licenses for about $1.2-1.3 billion, with a premium of 25-30%. The US-based chip maker is set to be in discussions with the country's largest telecom operator to sell its BWA licences in all four circles.
The U.S. mobile phone chip maker in 2010 had won licenses and bandwidth to offer wireless broadband in four service areas of Delhi, Mumbai, Kerala and Haryana at a cost of more than $1.05 billion in a government-run auction.
The deal, if it goes through, will give Bharti BWA spectrum in eight circles. At present, it has BWA licences for Maharashtra, Karnataka, Kolkata and Punjab. It plans to start 4G services by the end of this year, a few months after the launch of 3G services.
The deal will also help Bharti compete with Mukesh Ambani’s Reliance Industries, which has bought a pan-India BWA licence from HFCL. Reliance and Bharti are both expected to launch 4G services around the same time.

Axis Bank, Idea introduce mobile based financial inclusion initiative -- “Idea MyCash”

Axis Bank along with Idea Cellular has introduced a mobile based financial inclusion initiative “Idea MyCash”, a facility aimed at providing basic banking services including money transfer, using the mobile platform.

This service will provide basic banking services like cash deposit, cash withdrawal and balance enquiry besides enabling money transfer between the migrants in urban areas to their beneficiaries back home. The remittance facility is being offered in the Dharavi -- Allahabad remittance corridor to begin with and will be extended to other remittance corridors subsequently.

As per this scheme, the customer can open a no-frills bank account of Axis Bank at Idea’s outlet by submitting minimal documents. Once on board, he/she can perform basic banking services like deposits and withdrawals at the Idea outlet either free or for a charge.

Biocon’s drug development partner gets US patent for fidaxomicin

Optimer Pharmaceuticals, drug development partner of Asia’s largest biotechnology company Biocon, has received a US patent for fidaxomicin, an antibiotic used in the treatment of clostridium difficile infection (CDI). The patent will be extended up to March 2027.

CDI is an illness caused by an infection that can result in severe diarrhoea and in serious cases, death. Biocon will manufacture the active pharmaceutical ingredient (API) for fidaxomicin.

Biocon produces anti-diabetic agents like Acarbose, Pioglitazone, Repaglinides and Rosiglitazone. In the biological segment it produces Insulin, Erythropoietin (EPO), Filgrastim (GCSF), Streptokinase and Monoclonal Antibodies. The drug major also produces mycophenolate mofetil, sirolimus and tacrolimus.

Jubilant FoodWorks mulls to diversify its present business

Jubilant FoodWorks which is operating Dominos Pizza chain in India is aiming to diversify its business into new areas, including operating hotels and other non-food segments such as garments and fashion accessories. The company will get to know if the shareholders have approved new plan when the result of the postal ballot is announced on April 21, 2011.
As per the company's plan, it is seeking to enter into businesses such as stationary items, fashion accessories, toys, gift items, DVDs, VCDs and home decor items. Apart from this, it is also looking to operate hotels, restaurants, beach resorts, health resorts, cafes and motels. The company has drawn up plans to tap huge market available by venturing into new business initiatives in the food business. Other items that the company could start dealing in are baby and dietetic products, pickles, spices, wines and liquors. The firm also has intentions to cultivate, prepare or market any organic, agricultural or plantation produce and sell it in India or elsewhere.
The company is also planning to construct, own, hire or maintain cold storages, ice plants, warehouses, freezing houses and room coolers for storing food products being dealt by the company as a part of its business in India.

Sundram Fasteners soars on plans to make its biggest capital investment in 2011-12

Sundram Fasteners is currently trading at Rs. 48.20, up by 0.80 points or 1.69% from its previous closing of Rs. 47.40 on the BSE.

The scrip opened at Rs. 48.00 and has touched a high and low of Rs. 48.50 and Rs. 47.55 respectively. So far 5,209 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 76.50 on 12-Nov-2010 and a 52 week low of Rs. 43.15 on 11-Jun-2010.

Last one week high and low of the scrip stood at Rs. 49.00 and Rs. 46.00 respectively. The current market cap of the company is Rs. 1013.87 crore.

The promoters holding in the company stood at 49.53% while Institutions and Non-Institutions held 18.32% and 32.15% respectively.

Sundram Fasteners (SFL) part of the TVS group, will be making its biggest capital investment in 2011-12 in an attempt to target the wind energy and automotive segments with new products. SFL plans to step up its capex to nearly Rs 200 crore, a third more than 2010-11, with significant sums allotted for making wind turbine fasteners and bevel gears.

On the other hand, the company is also tapping the know-how of two of its overseas arms to launch these products. While it is likely to use the technology of its German subsidiary Peiner Umformtechnik GmbH to make wind turbine fasteners, its UK arm Cramlington Precision Forge will transfer technology for the manufacture of bevel gears.

The wind turbine fasteners facility, in which SFL plans to spend up to Rs 50 crore, would be coming up near Puducherry by August, this year. Both the products would be marketed for the local as well as overseas markets. The company is also upgrading the existing mills with higher production capacity and which would create demand for such fasteners. Currently, it has 23 factories, including 20 in India.

The company has reported a net profit of Rs 28.01 crore for the quarter ended December 31, 2010 up by 30.58% as compared to Rs 21.45 crore for the quarter ended December 31, 2009. Its total income from operations has increased by 29.37% to Rs 465.49 crore for the quarter ended December 31, 2010 from Rs 359.82 crore for the quarter ended December 31, 2009.SFL’s product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, hubs and shafts, tappets and iron powder

Jubilant FoodWorks rise on mulling to diversify its present business

previous closing of Rs. 561.75 on the BSE.

The scrip opened at Rs. 565.70 and has touched a high and low of Rs. 576.90 and Rs. 560.00 respectively. So far 83,571 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 670.70 on 01-Dec-2010 and a 52 week low of Rs. 251.65 on 21-May-2010.

Last one week high and low of the scrip stood at Rs. 580.75 and Rs. 523.90 respectively. The current market cap of the company is Rs. 3628.02 crore.

The promoters holding in the company stood at 61.29% while Institutions and Non-Institutions held 30.68% and 8.03% respectively.

Jubilant FoodWorks which is operating Dominos Pizza chain in India is aiming to diversify its business into new areas, including operating hotels and other non-food segments such as garments and fashion accessories. The company will get to know if the shareholders have approved new plan when the result of the postal ballot is announced on April 21, 2011.

As per the company's plan, it is seeking to enter into businesses such as stationary items, fashion accessories, toys, gift items, DVDs, VCDs and home decor items. Apart from this, it is also looking to operate hotels, restaurants, beach resorts, health resorts, cafes and motels. The company has drawn up plans to tap huge market available by venturing into new business initiatives in the food business. Other items that the company could start dealing in are baby and dietetic products, pickles, spices, wines and liquors. The firm also has intentions to cultivate, prepare or market any organic, agricultural or plantation produce and sell it in India or elsewhere.

The company is also planning to construct, own, hire or maintain cold storages, ice plants, warehouses, freezing houses and room coolers for storing food products being dealt by the company as a part of its business in India.

Allcargo Global Logistics marginally up on its plan to foray into third-party logistics biz

Allcargo Global Logistics is currently trading at Rs. 160.25, up by 0.20 points or 0.12% from its previous closing of Rs. 160.05 on the BSE.

The scrip opened at Rs. 162.00 and has touched a high and low of Rs. 162.00 and Rs. 160.10 respectively.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 200.80 on 15-Apr-2010 and a 52 week low of Rs. 125.05 on 31-Jan-2011.

Last one week high and low of the scrip stood at Rs. 163.80 and Rs. 146.50 respectively. The current market cap of the company is Rs. 2114.57 crore.

The promoters holding in the company stood at 69.83% while Institutions and Non-Institutions held 11.81% and 18.36% respectively.

In an aim to become an integrated logistics player in a few months, Allcargo Global Logistics is planning to enter third-party logistics business space. It is also planning to expand its warehousing capacity at Verna (Goa), Hosur and Nagpur to 400,000 sq ft with an investment of Rs 40 crore.

Allcargo is a market leader in the less-than-container-load (LCL) segment -- shipments that are insufficient either in weight or quantity for standard containers. The company is planning to rapidly expand the ICD (inland container deposit) footprint across India and aims to grow by setting up own facilities or through acquisitions. The company is actively scouting for acquisitions in the fast growing markets of India and East Asia as it aims to almost double its revenue to $1 billion by 2014.

Of its total capex of Rs 250 crore for the year ending December 2011, the company plans to utilise Rs 40 crore for ICD development at Dadri and Hyderabad. Last year, Allcargo had acquired business rights and controlling stake in Hong Kong based companies engaged in NVOCC business in China and other parts of eastern regions.

Third-party logistics providers handle all or most of a company's freight and production distribution activities, thus relieving the customer from day-to-day logistical issues. Allcargo provides various services such as inbound and outbound consolidation, multi-city consolidation, FCL forwarding airfreight forwarding activities project cargo handling and transportation and CFS operations.