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Reports India

Indian stock market and companies daily report (July 28, 2014, Monday)

July 28, 2014, Monday, 05:06 GMT | 00:06 EST | 09:36 IST | 12:06 SGT
Contributed by Angel Broking

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

US market started under pressure remaining firmly negative till the end of the session. This was due to partly due to the negative reaction on the earnings, leads to profit booking by the traders. Additionally, the worries about the situation in Ukraine and New Ukrainian PM resignation also weighed on the markets on Friday.

Meanwhile, European markets ended the day sharply lower after German business confidence came below expectation along with the geopolitical tension persisting on Middle-East region.

Indian markets also fell sharply on profit booking in the absence of any major triggers after the sharp gain in previous few trading sessions.

Markets Today

The trend deciding level for the day is 26,145 / 7,793 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,282 - 26,438 / 7,838 - 7,886 levels. However, if NIFTY trades below 26,145 / 7,793 levels for the first half-an-hour of trade then it may correct 25,989 - 25,852 / 7,746 - 7,701 levels.

Ranbaxy and Cipher Announce Signing of Licensing Agreement for Isotretinoin

Ranbaxy Laboratories has signed a licensing agreement with Cipher Pharmaceuticals Inc to exclusively market, sell and distribute Cipher's isotretinoin capsules in Brazil. The agreement extends the current relationship with Cipher, under which Ranbaxy is marketing and distributing Cipher's isotretinoin product in the United States under the brand Absorica. Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional pre-commercial milestone payments. Cipher will be supplying the product and Ranbaxy will be responsible for gaining regulatory approval of the product in Brazil.

Ranbaxy plans to promote the product through a brand dermatology division in Brazil. The isotretinoin formulation is expected to be a flagship product in Ranbaxy's dermatology franchise in Brazil, once it achieves regulatory approval. Cipher's isotretinoin product is a novel formulation of isotretinoin, which is used in the treatment of severe recalcitrant nodular acne. Isotretinoin is the most effective severe acne therapy available to teenagers who suffer from acne. The product is marketed in the United States by Ranbaxy as Absoric. We remain neutral on the stock.

Result Review

H T Media (CMP: Rs.114 / TP: Rs.165 / Upside: 45%)

For 1QFY2015, H T Media's reported disappointing results both on top-line and bottom-line front. The company reported ~1% yoy growth in top-line to Rs.546cr which was below our expectation mainly due to lower advertising revenue posting ~3% yoy growth to Rs.421cr.    On the operating front, the company reported operating profit of ~Rs.62cr (down by 20.5% yoy) and margin contracted by 307bp yoy on account of higher raw material cost (up 149bp yoy) and staff cost (up 340bp yoy).This led to lower PAT (which de-grew by 31.2% yoy to Rs.33cr). We would revise our target price and rating post the earnings conference call.

Result Preview

Alembic Pharmaceuticals (CMP: Rs.331/ TP:/ Upside:)

Alembic Pharmaceuticals, is expected to announce its 1QFY2015.For the quarter, the company is expected to post a 18.8% yoy growth on the sales to end the period at Rs.506cr, lead by exports growth of 20% yoy. On the operating front, the OPM is expected to come in at 18.5% V/s 16.7% in 1QFY2014, an expansion of 180 yoy. Thus, PAT is expected to come in at Rs.65.4cr, registering a yoy growth of 40.2%. We remain neutral on the stock.

Economic and Political News

- Govt not to hike import duty on sugar

- Govt to hike direct tax collection: Jaitley

- Govt has no proposal to reduce gold import duty

Corporate News

- Jaguar Land Rover forced to slash prices in China

- RCom subsidiary raises $350 million through global bonds

- Adani Group in discussions with Jaypee for buying hydel projects

Stock Market Forum