Top 10 performers of Indian equities market
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suguhopes
Jul 9, 2008, 6:38:52 AM7/9/08
to Kences1
Four of the top-10 performers in Indian equities market since January
are pharmaceutical stocks. Ranbaxy, Sun Pharma, Glenmark and Cipla
have managed to stay put even in extreme bearish sessions.
Says Angel Broking vice-president research and pharmaceutical analyst
Sarabjit Kour Nangra: "For three years, pharma stocks have been
underperforming overall market on concerns of severe margin pressure.
The view, however, has undergone a slight change over the past few
months. Performance of pharma companies have been good enough, though
not really reflecting on the stock price. Going ahead, the sector will
continue to perform reasonably well in the coming quarters. There is
great value in some mid -cap pharma stocks," Ms Nangra added.
ABOUT THE 'TOP TENNERS
======================
Ranbaxy Lab
-------------------
% CHANGE: +26.50
Average Daily volume from January 1, 2008: 695676
The stock is expected to remain steady because of the impending open
offer by Dalichi Sankyo. Market watchers feel there could be decent if
not lavish money to be made from the open offer.
Most analysts are recommending investors to tender their shares at the
open offer.
Sun Pharma
--------------------
% CHANGE: +9.91
Average Daily volume from January 1, 2008: 55235
The company is currently engaged in a legal battle with Israeli firm
Taro Pharmaceuticals, and most analysts feel that Sun could emerge the
victor.
However, they also caution that the stock is fairly valued, and is
unlikely to rise much in the near future.
Nestle India
------------------
% CHANGE: +8.78
Average Daily volume from January 1, 2008: 29662
In times of high agri-inflation, analysts feel it is a good time to
invest in food processing companies.
High raw-material prices notwithstanding, analysts expect Nestle'
earnings growth to accelerate on the back of increased pricing power
and strong underlying volume growth.
Satyam Comp
----------------------
% CHANGE: +8.65
Average Daily volume from January 1, 2008: 674169
Satyam Computer is expected to report good quarterly numbers since te
has not raised wages during the first quarter.
The company, which had earlier projected a conservative outlook for
the year, is expected to log decent numbers, thanks to a weakening
rupee.
Infosys Tech
-------------------
% CHANGE: +2.94
Average Daily volume from January 1, 2008: 325246
Infosys too is expected to come out with better-than-expected numbers.
Most brokerages have a 'buy' rating.
"As the company is not likely to face any rise in tax liability, we
expect it to report a sequential net growth of 6.8%, as against 5.3%
dip guided by the company for Q1," an analyst report said.
Glenmark Pharma
---------------------------
% CHANGE: +1.88
Average Daily volume from January 1, 2008: 158150
The company will benefit hugely from product licensing in this
quarter. Analysts expect strong numbers for this quarter as well.
Glenmark estimates sales of $15 million from the seven brands for
2008-09 with a 20% growth in 2009-10.
Hero Honda
-------------------
% CHANGE: -0.95
Average Daily volume from January 1, 2008: 69388
Though interest rates have gone up, analysts expect the two-wheeler
segment to do well in the coming quarters.
Mid-layer customers will opt for a fuel-efficient bike rather than a 4-
wheeler, which consumes more fuel and offers less mileage. Sales for
Q1 this fiscal has gone up by 11%.
Cipla
--------------
% CHANGE: -1.54
Average Daily volume from January 1, 2008: 373614
Analysts are expecting a flattish quarter for Cipla in terms of
earnings. "There will be no positive surprises for sure," says an
analyst.
Cipla is a fairly-valued stock and there is upside left in it for the
near term. On the downside, analysts do not expect the stock to fall
more than 15% at worst.
Hindustan Unilever Limited
--------------------------------------
% CHANGE: -3.97
Average Daily volume from January 1, 2008: 476557
Like Nestle, Hindustan Unilever is a good stock to have in times of
agri-inflation. Analysts expect the company's turnover to grow at a
CAGR of 15% between 2007 and 2009.
Interestingly, FMCG giant Hindustan Unilever is the least favoured of
the lot, high valuations being the key factor.
Cairn India
-----------------
% CHANGE: -4.11
Average Daily volume from January 1, 2008: 2124176
Though Cairn India has fallen over 4% over the past 6-odd months, it
is one of the better performers in the oil & gas space.
It's ownership of valuable oil reserves in Rajasthan should generate
steady cash flows from '09(estimated), besides having the potential to
generate further upside from exploration.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
are pharmaceutical stocks. Ranbaxy, Sun Pharma, Glenmark and Cipla
have managed to stay put even in extreme bearish sessions.
Says Angel Broking vice-president research and pharmaceutical analyst
Sarabjit Kour Nangra: "For three years, pharma stocks have been
underperforming overall market on concerns of severe margin pressure.
The view, however, has undergone a slight change over the past few
months. Performance of pharma companies have been good enough, though
not really reflecting on the stock price. Going ahead, the sector will
continue to perform reasonably well in the coming quarters. There is
great value in some mid -cap pharma stocks," Ms Nangra added.
ABOUT THE 'TOP TENNERS
======================
Ranbaxy Lab
-------------------
% CHANGE: +26.50
Average Daily volume from January 1, 2008: 695676
The stock is expected to remain steady because of the impending open
offer by Dalichi Sankyo. Market watchers feel there could be decent if
not lavish money to be made from the open offer.
Most analysts are recommending investors to tender their shares at the
open offer.
Sun Pharma
--------------------
% CHANGE: +9.91
Average Daily volume from January 1, 2008: 55235
The company is currently engaged in a legal battle with Israeli firm
Taro Pharmaceuticals, and most analysts feel that Sun could emerge the
victor.
However, they also caution that the stock is fairly valued, and is
unlikely to rise much in the near future.
Nestle India
------------------
% CHANGE: +8.78
Average Daily volume from January 1, 2008: 29662
In times of high agri-inflation, analysts feel it is a good time to
invest in food processing companies.
High raw-material prices notwithstanding, analysts expect Nestle'
earnings growth to accelerate on the back of increased pricing power
and strong underlying volume growth.
Satyam Comp
----------------------
% CHANGE: +8.65
Average Daily volume from January 1, 2008: 674169
Satyam Computer is expected to report good quarterly numbers since te
has not raised wages during the first quarter.
The company, which had earlier projected a conservative outlook for
the year, is expected to log decent numbers, thanks to a weakening
rupee.
Infosys Tech
-------------------
% CHANGE: +2.94
Average Daily volume from January 1, 2008: 325246
Infosys too is expected to come out with better-than-expected numbers.
Most brokerages have a 'buy' rating.
"As the company is not likely to face any rise in tax liability, we
expect it to report a sequential net growth of 6.8%, as against 5.3%
dip guided by the company for Q1," an analyst report said.
Glenmark Pharma
---------------------------
% CHANGE: +1.88
Average Daily volume from January 1, 2008: 158150
The company will benefit hugely from product licensing in this
quarter. Analysts expect strong numbers for this quarter as well.
Glenmark estimates sales of $15 million from the seven brands for
2008-09 with a 20% growth in 2009-10.
Hero Honda
-------------------
% CHANGE: -0.95
Average Daily volume from January 1, 2008: 69388
Though interest rates have gone up, analysts expect the two-wheeler
segment to do well in the coming quarters.
Mid-layer customers will opt for a fuel-efficient bike rather than a 4-
wheeler, which consumes more fuel and offers less mileage. Sales for
Q1 this fiscal has gone up by 11%.
Cipla
--------------
% CHANGE: -1.54
Average Daily volume from January 1, 2008: 373614
Analysts are expecting a flattish quarter for Cipla in terms of
earnings. "There will be no positive surprises for sure," says an
analyst.
Cipla is a fairly-valued stock and there is upside left in it for the
near term. On the downside, analysts do not expect the stock to fall
more than 15% at worst.
Hindustan Unilever Limited
--------------------------------------
% CHANGE: -3.97
Average Daily volume from January 1, 2008: 476557
Like Nestle, Hindustan Unilever is a good stock to have in times of
agri-inflation. Analysts expect the company's turnover to grow at a
CAGR of 15% between 2007 and 2009.
Interestingly, FMCG giant Hindustan Unilever is the least favoured of
the lot, high valuations being the key factor.
Cairn India
-----------------
% CHANGE: -4.11
Average Daily volume from January 1, 2008: 2124176
Though Cairn India has fallen over 4% over the past 6-odd months, it
is one of the better performers in the oil & gas space.
It's ownership of valuable oil reserves in Rajasthan should generate
steady cash flows from '09(estimated), besides having the potential to
generate further upside from exploration.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
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