New York: 19:47 || London: 00:47 || Mumbai: 04:17 || Singapore: 06:47

Reports India

Indian stock market and companies daily report (July 23, 2014, Wednesday)

July 23, 2014, Wednesday, 04:42 GMT | 23:42 EST | 08:12 IST | 10:42 SGT
Contributed by Angel Broking

Indian markets are expected to open on a positive note tracking positive opening on SGX Nifty along with positive global cues.

US markets closed on positive side backed by the better home sales and economic data. Better inflation numbers further helped the rally.

European market also ended higher as Ukraine rebellions started co-operating by handing over the black box of Malaysian airlines for further investigation.

Back home the Indian markets ended on the higher side due to buying seen in Index heavy weights. Further continued foreign investment on the verge on expectation of economic turnaround by the government

Markets Today

The trend deciding level for the day is 25,952 / 7,749 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,124 - 26,222 / 7,793 - 7,818 levels. However, if NIFTY trades below 25,952 / 7,749 levels for the first half-an-hour of trade then it may correct 25,854 - 25,682 / 7,724 - 7,680 levels.

Indoco Remedies Gets Approval From US Drug Regulator for Goa Facilities

Indoco Remedies has received a nod from the USFDA for two of its facilities in Goa. The US health regulator has approved the sterile facility (plant-II) and solid dosage facility (plant -III) located at Verna.The nod will facilitate the generic approvals in the US market and subsequent product launches there and will boost high-margin revenues from the highly remunerative US market. Officials from the US drug regulator visited the facilities in August last year. With this, the number of Indoco facilities having approval from the US regulator has gone up to six- three for finished dosages, two for APIs or active pharmaceutical ingredients. The company derived 35% its revenues from exports in 2013-14.

The development is very positive, as Indoco's ophthalmic business , as company has filed products from these facilities, and hence the approval opens up avenues for high-margin, low-competition product sales in the US. In the last four years, the company has filed ~15 ANDAs in the ophthalmic space and expects to secure approval for ~5 products over FY15-FY16E, addressing opportunities of US$1 bn brand sales. Thus we estimate, the company to garner around Rs.120cr sales in FY2016, and hence enhance our estimates on sales and net profit front by 12.1% and 34.1% respectively. Thus for FY2014-16E, we expect the company to post a sales and net profit of CAGR of 17.9% and 47.5% respectively. Also we upgrade our price target on the stock to Rs.192 with a buy rating on the stock.

Sanofi (CMP: Rs.2,933/ TP:/Upside: )

For 2QCY2015, we expect the company to post a sales and net profit of Rs.440cr and Rs.55cr, regtistering a yoy growth of 7.3% and 7.2% respectively. The growth would be predominatley aided by domestic sales.On the OPM front, we expect the OPM's to come at 15.1% V/s 15.2% during the last coressponding period. We maintain our neutral on the stock.

Economic and Political News

- Govt allays fears over FDI in Railways

- Govt to set up SEZ for chemical, petrochemical feedstock complex abroad

- Review royalty rate hike on iron ore: Assocham to govt

Corporate News

- Britannia looks to milk more value from dairy business

- Exide to invest Rs.350cr to increase capacity

- TCS partners with MapR Technologies to make new big data offerings