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Summary of Contents
PULSE TRACK
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January 2007 IIP up 10.9%
STOCK
UPDATE
Sun Pharmaceutical
Industries
Cluster: Ugly
Duckling
Recommendation: Buy
Price target: Rs1,341
Current
market price: Rs1,014
De-merger of the innovative R&D
division
Sun Pharmaceutical Industry is finally
preparing to de-merge its innovative research division, and the
company is holding a management presentation on March 15, 2007 to
share and discuss the information about the new chemical entity
(NCE) and novel drug delivery system (NDDS) research projects.
Considering the innovative research and development (R&D) as low
predictable business, longer time frame for commercialisation and
significantly higher spending vis-à-vis the generics R&D, the
company had proposed to spin-off its innovative R&D division
covering NCEs and NDDSs into a separate company. As per the earlier
proposal, the de-merger would be effective from April 01, 2006.
SECTOR UPDATE
Telecom
Taking a breather
After months of
exhilarating growth, the cellular service industry took a slight
breather in February, with the overall subscriber base growing by
only 3.9% as against a growth of over 5% in some of the previous
months. The subscriber addition during the month was lower partly
owing to a lesser number of days in February; higher inflation could
also have had an impact on the growth though. The overall numbers
were particularly affected by the lower additions reported by
Reliance Communications in the CDMA space partly due to the
stringent user verification norms implemented recently by the
Department of Telecommunications. Moreover, the fact that Reliance
Communications is planning to gradually shift away from the CDMA
space could have also had an impact.
MUTUAL
GAINS
Sharekhan's top equity
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FAMA measures the returns generated through
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