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Summary
of Contents
PULSE TRACK
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April-July FY2007
fiscal deficit up 11.5% yoy
STOCK UPDATE
Deepak Fertilisers & Petrochemicals
Corporation
Cluster: Ugly
Duckling
Recommendation: Buy
Price target:
Rs126
Current market price: Rs83
IPA plant begins production
Deepak Fertilisers and Petrochemicals Corporation
Ltd (DFPCL) has commenced production at its Isopropyl Alcohol (IPA)
plant at Taloja. Here are some key points pertaining to the
plant.
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The plant has been commissioned with a total
investment of Rs154 crore.
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The current market size of the product in India
is about 65,000 tonne per annum (TPA) with a growth rate of about
6-7% per annum. DFPCL also plans to begin strategic exports this
financial year.
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The project is unique as it will be a gateway
for the company to enter a ready 100% import substitute market and
will synergistically utilise the company's marketing and
distribution channel for methanol across fast-growing sectors like
pharmaceuticals, agrochemicals, organic chemicals, imaging
chemicals and paints.
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It is in line with the company's three-pronged
strategy of maximising the existing asset-base, expanding core
competence and diversifying into new sunrise
sectors.
Godrej Consumer
Products
Cluster: Apple
Green
Recommendation: Buy
Price target: Rs205
Current
market price: Rs177
GCPL completes acquisition of
Rapidol
Godrej Consumer Products Ltd (GCPL) today
completed the acquisition of the South African business of Rapidol,
UK as well as its subsidiary Rapidol International. As announced in
July 2006 GCPL had entered into an agreement to acquire these
entities subject to certain regulatory approvals. These acquisitions
give GCPL distinct advantages of (1) ownership of strong ethnic hair
colour brands in ten countries and Rapidol's existing manufacturing
base in Pinetown (near Durban), South Africa; and (2) an opportunity
to introduce some of its products, which would include other hair
colour offerings and the FairGlow and Evita soap brands in the
African continent.
SECTOR
UPDATE
Automobile
Mixed show due to lean
season
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Bajaj Auto: The sales for the month of
August 2006 seem to have been impacted due to the monsoon.
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TVS Motors: The growth in the motorcycle
segment boosted the overall sales of TVS in August 2006. The
overall two-wheeler sales rose by 20% to 121,462 units.
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Hero Honda: The sales of Hero Honda were
impacted in August due to the lack of new products and aggressive
competition.
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Maruti Udyog: The lean season impact
continued for Maruti as well.
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Mahindra & Mahindra: The recovery in
the sales of utility vehicles (UVs) continued with the segment
reporting a growth of 6%, with the sales of the new Scorpio
recording a new high with sales at 3,482 numbers, a growth of 29%
yoy and 14% month on
month.
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