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Last Updated : Jul 20, 2016 09:13 AM IST | Source: CNBC-TV18

Stocks that must be on your radar

Some of the stocks that should be on your radar are: Wipro, Glenmark Pharma, Aurobindo Pharma, Alkem Laboratories, Torrent Pharmaceuticals, CRISIL, Ricoh India, Housing Development and Infrastructure, Max Financial Services, Tata Global Beverage.


Wipro: IT company Wipro's first quarter (April-June) consolidated profit fell 8.3 percent sequentially to Rs 2,051.9 crore due to restructuring in some of the clients. Its IT services revenue matched analysts' expectations but margin and Q2 guidance disappointed.
 
Revenue on a consolidated basis declined 0.3 percent to Rs 13,697.6 crore while operating profit slipped 5.5 percent and margin contracted by 109 basis points on quarter-on-quarter basis.


Revenue from its IT services business increased 2.4 percent sequentially to Rs 13,109 crore for the quarter ended June 2016. Dollar revenue of IT services rose 2.6 percent quarter-on-quarter to USD 1,930.8 million and constant currency revenue grew by 2 percent sequentially, the country's third largest IT company said in its filing.

Pharma companies: US judge allows approval of generic versions of Astrazeneca's cholesterol drug. Around 5-6 players likely to be in the market initially. Glenmark, Aurobindo likely to be Indian cos to launch soon. Alkem likely to launch based on clarity on whether other cos forfeit exclusivity. Torrent Pharma likely to be in the second round of launches. Crestor generic has USD 500 m market size. Cos can make approx USD 30-70 million (dependent on number of companies that launch).

Crisil: Credit rating agency Crisil reported 7.5 percent growth in consolidated net profit to Rs 69.81 crore for the quarter to June.


Consolidated revenue rose 13.8 percent to Rs 375.10 crore in the second quarter from Rs 329.56 crore a year ago.

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"Crisil continues to deliver strong overall performance driven by growth in its international businesses, especially in the research and risk and analytics verticals, while domestic businesses held ground despite weak investment cycle and low credit off-take," Crisil Managing Director and Chief Executive Ashu Suyash said.


In an environment of weak bond issuances and muted demand for working capital, the ratings business focused on maintaining its market position and continued to step up engagements with market participants and customers, while working on innovative structures and products, she said.

Ricoh India: Ricoh India continues to be in troubled water as probe indicates that the company's accounts have been falsified.


According to preliminary findings of PricewaterhouseCoppers (PWC), the "company's financial statements of June and September quarter 2015 did not reflect a true and fair view of the state of affairs and the company is investigating extent of deviations and also reason for it."

In a statement to the exchanges, Ricoh said that it appears that the accounts have been flasified and its accounting principles and standards have been violated. "Such acts of omission and commission have caused a grave loss to the company and its shareholders," it added.

As per its estimates, Ricoh India had an unaudited estimate of aggregate loss after tax of Rs 1123 crore, which includes profit of Rs 40 lakh for Q1FY16, loss of Rs 147.4 crore in Q2FY16, cumulative loss of Rs 976.5 crore in Q3 and Q4 FY16. As per report, Ricoh Global may infuse Rs 1123 crore into the Indian arm.

HDIL: HDIL to consider & approve warrants on preferential basis to promoter. It plans to issue share warrants upto Rs 150 crore. Warrants to be issued at a price of Rs 100. Money to be used for working capital and debt reduction. Promoter stake will rise by 3.5 percent post warrant issue. Promoter stake will rise to approx 37 percent post warrant issue.

Aurobindo Pharma: JP Morgan has initiated coverage with overweight rating with target of Rs 900 percent, indicating 15 percent potential upside.

Other stocks in limelight are Max Financial and Tata Global.



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First Published on Jul 20, 2016 09:13 am
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