New York: 20:54 || London: 01:54 || Mumbai: 07:24 || Singapore: 09:54

Reports India

Indian stock market and companies daily report (July 24, 2014, Thursday)

July 24, 2014, Thursday, 04:34 GMT | 23:34 EST | 09:04 IST | 11:34 SGT
Contributed by Angel Broking

Indian markets are expected to open on a negative note tracking negative opening on SGX Nifty

US market closed mixed bagged on account of earnings season. The concern about conflicts in Ukraine still persist which lead to volatile session in the markets

European Markets closed positive on the hopes of easing tension in Ukriane and Gaza. However, markets neglected the potential sanction against Russia even though situation still remains tensed.

Back home, Indian markets ended positive on expectation of domestic recovery. The new government is taking serious efforts to stabilise the economy. Further, markets were also lead by improvement in global economy with better economic number

Markets Today

The trend deciding level for the day is 26,112 / 7,786 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,224 - 26,300 / 7,819 - 7,842 levels. However, if NIFTY trades below 26,112 / 7,786 levels for the first half-an-hour of trade then it may correct 26,036 - 25,924 / 7,763 - 7,730 levels.

Result Review

Sanofi India (CMP: Rs.2944/ TP: / Upside: )

Sanofi India, announced results better than expected both on top and bottom line. On sales the company posted sales of Rs.486.7cr V/s Rs.440cr expected, posting a yoy growth of 18.7%. On the OPM front, the company posted an OPM of 16.2% V/s 15.1% expected a 100bps expansion yoy, inspite of GPM dipping to 49.4% from 51.5%. This was on back of staff cost and other expenses , rising only by 12.9% yoy and 5.2% yoy respectively. This aided the net profit come in at Rs.57.5cr V/s 55.0cr expected, registering a yoy growth of 12.3%.We maintain a neutral stance on the stock.

MRF- 3QSY2014 (CMP - Rs.24,364, TP - Rs.29,332, Upside - 20%)

For 3QSY2014, MRF reported a good set of numbers. Its top-line for the quarter witnessed a growth of 9.4% yoy to Rs.3,337cr above our estimate of 3,218cr. Raw materials cost as percentage of sales declined by 124bp yoy during the quarter to 63.7%. Though the EBITDA margins declined by 119bp yoy to 14.7%, it expanded by 215bp on sequential basis. Net profit for the quarter came flat on yoy basis at Rs.230cr but it was 8.2% higher than our estimate of Rs.213cr. At current market price, the stock is trading at a PE of 10.0x for SY2015E and P/B of 1.9x for SY2015E. We have revised our recommendation to Buy on the stock with a target price of Rs. 29,332 based on a target P/E of 12.0x for SY2015E.

Result Preview

Wipro (CMP: Rs.569/ TP: Rs.689/ Upside: 21.1%)

Wipro is slated to announce its 1QFY2015 results today. We expect the company's IT services segment to post revenues of US$1,730.6mn, up 0.6% qoq. At the consolidated level, we expect the company to record revenues of Rs.11,220cr, down 4.1% qoq. At a consolidated level, Wipro is expected to record ~80bp qoq dip in its EBIT margin to 21.2%. PAT is expected to come in at Rs. 2,049.1cr, down by 8.5% qoq. We maintain our buy on the stock with a target price of Rs. 689.

Economic and Political News

- Govt developing sophisticated PPP model to boost infra

- Antidumping duty: FinMin considering DGAD view on solar cells

- India diversifying its sources of crude oil imports: Minister

Corporate News

- BGR Energy secures contracts worth Rs.303cr from core sector

- Strides Arcolab gets USFDA approval to sell transplant drug

- United Bank to raise Rs.300cr by selling shares to LIC soon