Author: CP

Bajaj reported 4QFY10 PAT of Rs5.3 bn, comfortably beating our PAT estimate of Rs4.5 bn. The upside was largely operational with EBITDA margins coming in at 22.9% for the quarter compared
to our estimate of 21.5%. The margin upside was driven by better-than-expected realizations and lower other expenditure. Net realizations increased 4% qoq, higher than our expectation of 2%, driven by higher mix of Pulsar brand sales and price increases.

Other expenditure declined 18% sequentially, which the company attributed to better cost control and lower advertisement spend. (more…)

Ranbaxy reported 1Q PAT of Rs9.6bn, on exclusivity sales of Valtrex, US$50m (Rs2.3bn) income from Flomax settlement & forex gains of Rs4.5bn. Besides one-offs, base biz trends appear strong with most markets growing, despite a 6% INR appreciation. While EBITDA margins were skewed by exclusivity sales, cost containment measures seem to have borne fruit as SG&A costs declined QoQ.11.

Ranbaxy’s 1Q results reflect its ability to monetize its FTF pipeline despite its issues in the US. Both Valtrex & Flomax have (more…)

Hindalco Industries’ (Hindalco, standalone) Q4FY10 net revenues, at INR 54.0 bn, were below our expectation of INR 58.2 bn. EBITDA, at INR 8.35 bn, was below estimates due to preponed shutdown of copper smelter for 38 days leading to ~15 kt of lost production. However, net profit, at INR 6.6 bn, was above our estimate of INR 5.5 bn due to higher-than-expected other income and tax write-back of INR 1.1 bn. (more…)

I am pretty sure that you are calling me insane of giving a 100,000 / 1 Lakh Target for BSE Sensex. Well, it isn’t me but Chris Roberts of Mizuho Securities Asia Limited from Hong Kong. Chris in his report said that,

Our roadmap on India sees the April 1992 through September 2001 period as a completed secular bear market. From the 1992 low of 2,595, we expect a large five-wave advance to form, given that we have only completed waves i and ii of that move we (more…)