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Reports India

Indian stock market and companies daily report (August 18, 2014, Monday)

August 18, 2014, Monday, 05:25 GMT | 00:25 EST | 08:55 IST | 11:25 SGT
Contributed by Angel Broking

Indian markets expected to open on flat note tracking SGX Nifty and most of the Asian markets.

US market fluctuated over the course of the trading day on Friday before eventually ending the session mixed. Markets were choppy on account renewed geopolitical concerns as well as the release of a mixed batch of U.S. economic data.

European markets ended negative after news that Ukrainian artillery destroyed part of a military convoy that crossed from Russia into eastern Ukraine.

Back home, Indian markets ended positive on Thursday, after official data showed IndiaRs.s WPI inflation hit a five-month low in July, helped by a moderation in fuel costs. The WPI rose 5.19% year-on-year last month, its slowest pace since February. In June, prices rose 5.43% from a year earlier.

Markets Today

The trend deciding level for the day is 26,061 / 7,776 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,177 - 26,251 / 7,813 - 7,833 levels. However, if NIFTY trades below 26,061 / 7,776 levels for the first half-an-hour of trade then it may correct

Zee Entertainment on global expansion drive

Zee Entertainment Enterprise Ltd is increasing overseas presence by expanding operations in South-East Asia, Middle East and Africa to be among the top 10 global media and entertainment firms within 5-10 years. The Essel group firm ZEEL, which forayed into Indonesia and Thailand this year, is now considering Vietnam as its next destination with a strategy of providing Hindi content dubbed or subtitled in local languages.

The company has already strong presence in the West Asia(Currently, ZEELRs.s international subscription revenue is around 11-12%). Thus, we believe that this is positive move taken by company and it will increase the revenue from international business.

Result Review

Cipla (CMP: Rs.448/ TP: - / Upside:-)

1QFY2015 results for the company came below expectations. For the quarter, the company posted consolidtaed sales of Rs.2647 cr V/s Rs.2720cr , expected ( Rs.2331cr in 1 QFY2014) a yoy growth of 13.6%. The growth on the topline came on back of domestic sales posting a growth of 17% yoy to end the period at Rs.1289cr, while exports posted a low growth of 10.5%. The export formulation grew by 12.7% yoy to end the period at Rs.1218cr, while export API posted a dip in sales which ended the period at Rs.140cr V/s Rs.148cr during the last corresponding period. With this formulations now constitute 95% of sales for the company. On the operating front, the EBDITA margins came in at 1 7.7% V/s 24.5% expected and V/s 22.2% during the last corresponding period. This was however much better than 13.1% during 4QFY2014. The main reason for the dip in margins came on back of a 48.5% yoy rise in employee expenses. Thus the PAT came in at Rs.295cr V/s Rs.575cr expected , (Rs.485cr in 1QFY2014) registering a yoy de-growth of 39.1%. We would be revising our numbers and target on the stock.

Economic and Political News

- Rs.15,000cr worth industrial projects cleared in Karnataka

- Gold import rules likely to stay until next year

- IndiaRs.s car exports down 5% in Apr-Jul, global hub aim dented

Corporate News

- Binny Ltd to acquire windmill and set up spinning unit

- Welspun to invest Rs.15,000cr in solar, wind energy segments

- Bajaj Auto hikes wages by up to Rs.10,000 a month