Ballarpur Industries Ltd.    
21 Aug 2019, 06:10PM
0.70
-6.67%
Ballarpur Industries, where Gautam Thapar owns stake, sees independent director resign
Ballarpur Industries Ltd. has lost -93.17% in the last 1 Year
Trendlyne Marketwatch    
21 Aug 2019, 03:45PM
Markets close lower as analysts flag slowdown

Indian markets slumped today with BSE Sensex closing at 37060.37 (-0.72%) and the NSE Nifty 50 declining to close at 10,918.7 (-0.89%). The broader Nifty 500 Index fell 1.04%. The market breadth was tilted in favour of sellers. About 1,340 stocks declined and 441 shares rose on the National Stock Exchange. The day's updates are here.

Riding High:

Largecap and midcap gainers today include Nestle India Ltd. (12614.65 5.39%), Biocon Ltd. (223.90 2.61%) and Max Financial Services Ltd. (449.00 2.00%).

Downers:

Largecap and midcap losers today include Indiabulls Housing Finance Ltd. (472.45 -9.39%), Tata Motors Ltd. (112.35 -9.29%) and YES Bank Ltd. (64.80 -8.99%).

Crowd Puller Stocks

26 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Hathway Cable & Datacom Ltd. (32.50 19.93%), Navin Fluorine International Ltd. (685.50 6.43%) and Nestle India Ltd. (12614.65 5.39%).

Top high volume losers on BSE were Parag Milk Foods Ltd. (142.50 -11.55%), Gayatri Projects Ltd. (115.05 -11.12%) and Somany Ceramics Ltd. (278.20 -4.79%).

Cholamandalam Financial Holdings Ltd. (463.00 -1.25%) was trading at 18.9 times of weekly average. Mahindra CIE Automotive Ltd. (150.15 -0.86%) and Sanofi India Ltd. (6101.00 -0.43%) were trading with volumes 11.4 and 9.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 52 week highs, while 74 stocks hit their 52 week lows.

Stocks touching their year highs included - GlaxoSmithKline Consumer Healthcare Ltd. (7985.00 0.23%), Nestle India Ltd. (12614.65 5.39%) and Trent Ltd. (471.00 -0.99%).

Stocks making new 52 weeks lows included - Allahabad Bank (32.00 -8.18%) and Andhra Bank (18.35 -2.91%).

6 stocks climbed above their 200 day SMA including Hathway Cable & Datacom Ltd. (32.50 19.93%) and Navin Fluorine International Ltd. (685.50 6.43%). 17 stocks slipped below their 200 SMA including KEC International Ltd. (272.95 -5.57%) and NMDC Ltd. (86.40 -4.16%).

The Baseline    
21 Aug 2019, 02:38PM
Reports Screener: Stocks seeing new target and recommendation upgrades

Despite market volatility and weakening sentiment, some stocks continue to see bullish sentiment from brokerage analysts.

This stock screener identifies companies that have received target price or recommendation upgrades from research analysts. The companies include Kotak Mahindra Bank, which has received 5 target price upgrades from brokerage analysts in the past month, cement company ACC Limited, which both HDFC Securities and Geojit upgraded their recommendations to BUY; Asian Paints which posted strong results and has got target upgrades from ICICI Securities and Axis Direct.  See the stock screener for all 130 stocks. 

Trendlyne Marketwatch    
21 Aug 2019, 09:45AM
LIVE: Markets lower, Gati sees credit downgraded

Markets are volatile in trading, with the Sensex marginally higher and the Nifty50 flat as of 10 am.
The market breadth is tilted in favour of sellers. About 882 stocks declined and 608 shares advanced on National Stock Exchange.

  • Despite market volatility, some stocks like Kotak Mahindra Bank and ACC Limited are still getting broker target price or recommendation upgrades.
  • The Sensex is sharply down as the day nears market close, 0.73% lower as of 315 pm. Nifty50 is down 0.91% at 10,916.
  • Nomura expects India GDP growth to slow further in the April-June quarter of this year to 5.7 per cent. Slowdown drivers according to analysts are falling consumer spend, weak investments and service sector. 
  • Logistics company Gati is trading lower on downward rating for its long term and short term banking facilities. 
  • Navin Flourine, Coffee Day among the top gainers in markets today.
  • Dr. Reddy fell sharply after the company received eight Form 483 observations by U.S. FDA in the audit of formulations manufacturing plant at Duvvada, Vishakapatnam.


 

Riding High:

Largecap and midcap gainers today include Biocon Ltd. (223.25 2.31%), Eicher Motors Ltd. (16185.95 1.83%) and Future Retail Ltd. (420.80 1.83%).

Downers:

Largecap and midcap losers today include Edelweiss Financial Services Ltd. (112.50 -5.78%), Oberoi Realty Ltd. (506.70 -3.60%) and Vodafone Idea Ltd. (5.65 -3.42%).

BSE 500: highs, lows and moving averages

2 stocks took off, crossing 52 week highs, while 31 stocks hit their 52 week lows.

Stocks touching their year highs included - GlaxoSmithKline Consumer Healthcare Ltd. (7959.00 -0.10%) and Trent Ltd. (478.00 0.48%).

Stocks making new 52 weeks lows included - Bharat Heavy Electricals Ltd. (48.30 -3.30%) and Britannia Industries Ltd. (2336.00 -2.40%).

3 stocks climbed above their 200 day SMA including Bharat Electronics Ltd. (94.65 1.39%) and Max Financial Services Ltd. (437.40 -0.64%). 11 stocks slipped below their 200 SMA including IDFC First Bank Ltd. (44.10 -1.78%) and JSW Holdings Ltd. (2635.00 -1.28%).

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Trendlyne Marketwatch    
20 Aug 2019, 03:45PM

Markets closed lower today. The Sensex fell 0.2 percent to close at 37,328.01 and the Nifty50 declined as much as 0.33 percent to 11,017. The broader Nifty 500 Index fell as much as 0.45 percent. The day's updates are here. Eight out of 11 sectors compiled by NSE traded lower, while the NSE Nifty IT Index was the top sectoral gainer, up 1.2 percent.
 

Riding High:

Largecap and midcap gainers today include Max Financial Services Ltd. (440.20 5.07%), Rajesh Exports Ltd. (727.25 4.33%) and Maruti Suzuki India Ltd. (6190.95 3.48%).

Downers:

Largecap and midcap losers today include NMDC Ltd. (90.15 -11.53%), Edelweiss Financial Services Ltd. (119.40 -8.68%) and YES Bank Ltd. (71.20 -7.11%).

Movers and Shakers

20 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Venky's (India) Ltd. (1486.70 9.92%), Mahanagar Gas Ltd. (848.60 7.83%) and Himachal Futuristic Communications Ltd. (19.80 5.04%).

Top high volume losers on BSE were NMDC Ltd. (90.15 -11.53%), Inox Wind Ltd. (36.00 -8.28%) and Oberoi Realty Ltd. (525.60 -3.65%).

JSW Holdings Ltd. (2669.10 -1.11%) was trading at 15.7 times of weekly average. Varroc Engineering Ltd. (426.50 -2.76%) and Apar Industries Ltd. (553.75 0.67%) were trading with volumes 12.2 and 10.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks overperformed with 52 week highs, while 36 stocks hit their 52 week lows.

Stocks touching their year highs included - Berger Paints (India) Ltd. (366.70 0.98%), GlaxoSmithKline Consumer Healthcare Ltd. (7967.00 1.60%) and Trent Ltd. (475.70 0.85%).

Stocks making new 52 weeks lows included - Asahi India Glass Ltd. (185.10 -3.24%) and Bank of India (66.55 -3.55%).

6 stocks climbed above their 200 day SMA including Max Financial Services Ltd. (440.20 5.07%) and KNR Constructions Ltd. (246.80 0.53%). 18 stocks slipped below their 200 SMA including NMDC Ltd. (90.15 -11.53%) and Bharat Electronics Ltd. (93.35 -4.60%).

Aurobindo Pharma Ltd.    
20 Aug 2019, 01:48PM
589.50
-1.79%
USFDA warning letter to Aurobindo Pharma Srikakulam facility casts a shadow on Q1FY20

by Sandhya Krishnan

The USFDA warning letter is a major adverse regulatory hurdle faced by Aurobindo Pharma. Nonetheless, company officials have put up a brave face, and have committed to completing the required CAPAs by the end of this calendar year to allow re-inspection of units XI, I and IX by the FDA.

Quick Takes

  • Delay in clearance on issues raised by the FDA warning letter would impact not FY20, but launches for FYE 2021.
  • For Q1FY20, the formulations business captured the lion’s share, contributing Rs. 4,712 crores, i.e. 86.6% to the total revenue, and clocking a growth of 35% YoY.
  • As part of its deleveraging strategy, the net debt for Aurobindo declined by $131 million QoQ to US$593 million in Q1FY20.

FDA issues will not impact exising business, says management

“We believe the existing business from this facility will not be impacted,' Managing Director N Govindarajan said. 'We will be engaging with the regulator and are fully committed in resolving this issue at the earliest. The firm is committed to maintaining the highest quality manufacturing standards at all of its facilities.’’

While there is no immediate material impact, given that negligible products manufactured by this facility were awaiting approval, the public perception and investor sentiment might take a hit. There is also the anticipated risk of similar regulatory action from other sites, pending inspection. Aurobindo Pharma will have to take remedial steps involving a prolonged process with resultant site costs to comply with the USFDA’s CGMP standards on product quality.

All of these developments have been reflected in the share prices that slumped over 7% to a low of Rs 578.75 on the BSE. The silver lining is that around 15 products with API source are expected to be derived from all the three facilities spread over 2-3 years.

In the event of delays in clearance, the fallout of future product launches - estimated at 25% of new drug applications connected to these sites - would not be felt in the near term, but on launches for FYE 2021. Currently, a large portion of these products are channeled towards captive consumption. In spite of an export ban from these units, existing products will be allowed to be sold in the U.S.

Q1 performance: Along expected lines with headroom for more growth, Regulatory risk continues to cast a shadow

Revenue grew 28% YoY to Rs. 5,445 crores supported by growth in formulations business across markets. The operating income, which stood at Rs 1146 crores, registered a 47% Y-o-Y jump compared to the previous year. EBITDA margins were a robust 21.1%, with bottom-line growth of 40% to Rs.636 crores.

In terms of result breakdown by business verticals, the formulations business captured the lion’s share, contributing Rs. 4,712 crores, i.e. 86.6% to the total revenue, clocking a growth of 35% YoY. This was attributable to the increase in revenues realized from US markets i.e. a 42% YoY jump to Rs 2688 crores owing to new product launches and higher volumes of existing products. API business came a distant second with revenues of Rs.732 crores, a decline of 2% YoY.

This is aligned to Aurobindo’s strategy of vertical integration, with considerable internal API sales. As part of its deleveraging strategy, the net debt declined by $131 million QoQ to US$593 million in Q1FY20, largely due to robust topline growth, with resultant reduction in working capital requirement. 

For the quarter ended 30th June 2019, out of 551 ANDAs filed, cumulatively, 386 obtained final approval with 26 attaining tentative approvals and 139 ANDAs to be reviewed.

Future outlook includes a deep product pipeline

While regulatory concerns continues to remain a downside risk, Aurobindo’s focus on a robust product pipeline with continuous launches (40 incremental launches expected in 9MFY20, in addition to the 15 launches in Q1FY19-20 in the US markets) and the ramping up of the injectables business could boost growth prospects. Additionally, the enhanced R&D investment, slated to be 5-5.5% of revenue in FY19-20 (4.5% of revenue in Q1FY19-20) could keep Aurobindo in good stead. Any adverse regulatory outcome however, could negatively affect the earnings estimates.

About the company

Aurobindo Pharma, engaged in the manufacture of generic formulations and active pharmaceutical ingredients (APIs), derives over 90% of revenues from global markets and enjoys a strong brand positioning in the US. With a diversified product portfolio and significant backward linkages, the company derives about 70% of its API from in-house facilities.

As part of its inorganic growth strategy in the US markets, Aurobindo acquired Sandoz’s dermatology and oral solid business. Upon deal completion, this would establish Aurobindo as the #2 generics player in the US by subscriptions volume.

Aurbindo Pharma is currently in 14 stock screeners

Aurobindo Pharma Ltd. is trading below it's 50 day SMA of 591.31
CG Power and Industrial Solutions Ltd.    
20 Aug 2019, 12:31PM
11.85
-19.93%
CG Power falls sharply on news of fraudulent transactions

CG Power fell sharply in share price today on news of fraudulent employee transactions. YES Bank, which owns 12.79 per cent stake in the company, also declined on investor worries of exposure.  The board published comments to exchanges after a 13 hour long meeting which included discussions with the risk and audit committees. The board members emerged bleary-eyed at 4 am with key disclosures to the Exchanges. CG Power noted, "The total liabilities of the Company and the Group may have been potentially understated by approximately Rs 1053.54 crores and Rs 1,608.17 crores respectively as at 31 March 2018; and by INR 601.83 crores and INR 401.83 crores respectively as at 1 April 2017."

The company added, "Advances to related and unrelated parties of the Company and the Group may have been potentially understated by INR 1,990.36 crores and INR 2,806.63 crores respectively as at March 31, 2018; and by INR 1,479.34 crores and INR 1,331.47 crores respectively as at April 1, 2017."

CG Power said the fraud came about when company assets "were purportedly provided as collateral without due authority; and the Company was made a co-borrower and/or guarantor for enabling ostensibly unrelated third parties to obtain loans without due authorisation. The moneys so obtained were immediately and without due authorisation routed out of the firm".

CG Power is identified as a "weak stock" on trendlyne, with low durability, valuation and momentum scores. The CFO of the company had resigned on March 8, but was asked to continue in light of the revelations. 

 

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CG Power and Industrial Solutions Ltd. has lost -33.80% in the last 1 Week
Trendlyne Marketwatch    
20 Aug 2019, 09:45AM
LIVE: Markets close lower, Gautam Thapar in focus

Markets are volatile in trading.  Seven out of 11 sectoral gauges compiled by NSE are lower, with NIfty Metal the top loser and Nifty IT the top gainer.

Riding High:

Largecap and midcap gainers today include Havells India Ltd. (682.35 2.81%), MindTree Ltd. (717.75 2.21%) and Infosys Ltd. (794.00 2.10%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (5.65 -5.83%), YES Bank Ltd. (73.50 -4.11%) and IDBI Bank Ltd. (27.10 -3.04%).

BSE 500: highs, lows and moving averages

1 stock made 52 week highs, while 13 stocks tanked below their 52 week lows.

Stock touching their year highs included - Trent Ltd. (474.30 0.55%).

Stocks making new 52 weeks lows included - Biocon Ltd. (219.90 1.69%) and Britannia Industries Ltd. (2440.50 -1.53%).

9 stocks climbed above their 200 day SMA including Intellect Design Arena Ltd. (230.05 2.45%) and JSW Energy Ltd. (69.95 0.07%). 4 stocks slipped below their 200 SMA including Gulf Oil Lubricants India Ltd. (830.05 -1.02%) and Cholamandalam Investment & Finance Company Ltd. (263.25 -0.34%).

Sanghi Industries Ltd.    
19 Aug 2019
53.35
-3.44%
Rakesh Jhunjhunwala's RARE Enterprises meets with Sanghi Industries

Rakesh and Rekha Jhunjhunwala's investment company RARE Enterprises will be meeting with senior management of cement firm Sanghi Industries on August 20th. Sanghi Industries according to management comments, is looking to increase its cement grinding capacity from 4.1 mt in the current scenario to 8.2 mt by FY21, by adding one addiitonal line of clinker unit, as well as split grinding units of 2 mt each in Kutch and Surat.

The company saw a reasonably strong June quarter performance, but volumes declined 12% YoY in the quarter due to what it said was demand pressure in Gujarat (Gujarat accounts for over 85% of the company's sales mix), driven by water shortage issues, elections and labor shortages. 

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Sanghi Industries Ltd. has an average target of 69.67 from 3 brokers.