Anand Rathi - Alembic

Anand Rathi Research report on Alembic:

Company is fully integrated player in Antiinfective segment which is largest segment for this company accounting for over 60% of sales. In this segment company's sales is growing at higher pace compared to industry rate. Apart from this company is also in to - Cough [OTC], Nutraceuticals, Pain management, CV, Diabetese and Gestro-intestinal segments. Company manufactures - bulk drugs, formulations with 4- Brands falling under top selling 300 pharma brands. Company has OTC brands like - Glycodin & Zero, in cough and sugar free sweetner segments.

Company has large fermentation facility to manufacture basic antibiotic - Penicillin. But mostly this is used for captive consumption only. Company is in to Contract manufacturing and has filed around 10 DMFs also and planning to file 6-8 DMFs every year going forward. Company also have a 36 Bed, Clinical Research facility, for Bio-Equivalence trials. So company is capable of offering - Pre-Clinical / Clinical Research and CRAMS to global players.After setting up unit in tax heaven - HP, the company's margins improved significantly for domestic business. Company's Panelav unit in Gujarat, is making both - bulk drugs and formulations. The bulk drug facility is US FDA approved, but formulation unit is approved by - MCC, MHRA; while FDA inspection is due in Current quarter and final approval is expected in last quarter. Right now the major sales is from domestic formulations [69%], but going forward with more approvals from regulated markets, the share of Formulation exports to regulated markets will grow, leading to improved margins.

Company has very recently in April'07, acquired Formulation unit of Dabur Pharma at a cost of Rs 1.59 billion. This will further boost the revenue and profits in the current and coming quarters. With this acquisition, company will be able to increase market share in CV, diabetes and Gynecology segments.

Last quarter of '07 was affected by final settlement with ONGC dues also. But going forward with growth from new acquisitions, new launches and supplies to new regulated markets; will boost the revenue and profits significantly. We expect the company to report EPS of Rs 8.30 and 9.39 for 08 & 09 respectively. So at current price of Rs 73, stock discounts '09 earnings by less then 8 times, which looks quite attractive. Buy for medium term gains.

Anand Rathi - Daily Strategist

The NIFTY futures saw a rise of 3.20 % in OI with prices moving up indicating fresh long positions built up in the market thus forcing bears to cover their positions thus indicating further strength in the market .The nifty June series futures discount came up from 6 to 14 points indicating short positions built up at higher levels Market if it sustains above 4210 levels then we may see further short covering their positions and fresh built up of long positions. The FII were sellers in index futures marginally to the tune of 31 crs and buyers in index options to the tune of 156 crs. The PCR has changed from 1.37 to 1.42 levels indicates some buying support may be seen in the market. IV in the market was 25.35 and HV was 22.37.

Among the Big guns, ONGC saw rise in OI with prices coming down indicating shorts positions built up in the counter suggesting some weakness may be seen in the counter. Whereas RELIANCE saw rise in OI with prices flat indicating some profit booking seen in the counter suggesting one may take long positions in he counter on any dip.

In the TECH counters INFOSYSTCH & WIPRO saw gain in OI with prices remaining flat indicating that both bulls and bears were aggressive in the counter suggesting some buying may be expected in the counter at lower levels .SATYAMCOMP & TCS saw rise in OI with prices facing resistance indicating short positions built up in the counter suggesting further weakness may be seen in the counter.

In the BANKING counters, SBIN saw rise in OI with prices moving up indicating fresh long positions built up in these counters and shorts covered their positions indicating further strength may be seen in this counters in coming days. ICICIBANK & HDFCBANK saw gain in OI with prices in a range suggesting that both bulls and bears made aggressive position in the counter indicating uncertainty may prevail in these counters.

In the Metal pack, TATASTEEL saw rise in OI with prices almost flat indicating that both bulls and bears were aggressive in the counter indicating counter is seeing buying support at current levels suggesting further strength may be seen in the counter. SAIL saw rise in OI with prices facing resistance at current levels suggesting some uncertainty may prevail I the counter. HINDALCO saw rise in OI with prices crossing the resistance suggesting further strength may be seen in the counter. NALCO saw marginal rise in OI with prices coming up indicating buying emerging at lower levels. STER saw rise in OI with price facing resistance at current levels suggesting some weakness may be seen in this counter.

We feel that the volume and built up in OI suggests that market may show strength if it sustains above 4210 levels where we may see fresh long positions built up in the market thus one should not take aggressive short positions in the market . One should trade with strict stop losses to be adhered too.

STOCKS TO WATCH:

HINDALCO, KOTAKBANK, CUMMINSIND, CENTURYTEX, REL.

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4215 (Nifty) and 14350 (Sensex) as the stop loss level.

Nifty faces resistance at 4335 and Sensex at 14700.

Nifty Range 4225 to 4335.

BSE Smallcap and BSE Midcap also exhibited bullish candlesticks.

CNX IT has closed flat.

In the Punter's zone we have a Buy in Biocon, Auropharma and indiaglyco.

In the Technical call section, we have a Buy in NDTV, NagarConst and BajajAuto

Anand Rathi - Daily Technicals - Jun 22 2007

Anand Rathi - Daily Technicals - Jun 21 2007

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4180 (Nifty) and 14270 (Sensex) as the stop loss level.

Nifty faces resistance at 4280 and Sensex at 14550.

Nifty Range 4190 to 4280.


BSE Smallcap and BSE Midcap also exhibited bullish candlesticks.


CNX IT has closed flat.


In the Punter's zone we have a Sell in Ranbaxy, BPCL and Cummins.

In the Technical call section, we have a Buy in REL, Patel Engg and Amtekauto.

Anand Rathi - Daily Technicals - Jun 21 2007

Daily Technical Note

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4155 (Nifty) and 14140 (Sensex) as the stop loss level.

Nifty faces resistance at 4280 and Sensex at 14500.

Nifty Range 4170 to 4280.

BSE Smallcap and BSE Midcap also exhibited bullish candlesticks.

CNX IT has closed flat.

In the Punter's zone we have a Buy in Cairns & India cement and Sell in Tata Steel.

In the Technical call section, we have a Buy in M&M, IVRCL & InfosysTCH.

Anand Rathi - Daily Technicals - Jun 20 2007

Anand Rathi - Weekly Strategist

Anand Rathi - Weekly Strategist

Anand Rathi - Weekly Technicals

Anand Rathi - Weekly Technicals

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4100 (Nifty) and 13950 (Sensex) as the stop loss level.

Nifty faces resistance at 4210 and Sensex at 14350.

BSE Smallcap and BSE Midcap exhibited a bullish candlestick.

CNX IT has gained ground.

In the Punter's zone we have a BUY in Bata India , PNB and SELL in ICICI Bank.

In the Technical call section, we have a BUY in Mcdowell's , L&T and SELL in ACC.

Anand Rathi - Daily Technicals - Jun 15 2007

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bearish candlestick.

Technically, one may use the level of 4050 (Nifty) and 13850 (Sensex) as the stop loss level.

Nifty faces resistance at 4170 and Sensex at 14200.

BSE Smallcap and BSE Midcap also exhibited bearish candlesticks.

CNX IT has lost ground.

In the Punter's zone we have a Sell in Tata Steel , VSNL & J.P Associates.

In the Technical call section, we have a Sell in L&T , Bombay Dyeing and Titan Industries.

Anand Rathi - Daily Technicals - Jun 14 2007

Anand Rathi - Daily Fundamental Snippets - June 13 2007

Anand Rathi - Daily Fundamental Snippets - June 13 2007

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4100 (Nifty) and 13900 (Sensex) as the stop loss level.

Nifty faces resistance at 4210 and Sensex at 14250.

BSE Small cap and BSE Midcap also exhibited bearish candlesticks.

CNX IT has lost ground.

In the Punter's zone we have a Sell Parsvnath.

In the Technical call section, we have a Sell in ICICI Bank, Ibrealest and Ivrclinfra.

Anand Rathi - Daily Technicals

Anand Rathi - Fundamental Snippets

Anand Rathi - Fundamental Snippets

Anand Rathi - Weekly Wrap

Anand Rathi - Weekly Wrap

Anand Rathi - Weekly Strategist

Anand Rathi - Weekly Strategist

Anand Rathi - Weekly Technicals

Anand Rathi - Weekly Technicals

Daily Fundamental Snippets - June 8 2007

TVS Motor Co Ltd has cut production of motorbikes as high interest rates slow demand, and expects sales to improve only from the second half of the fiscal year. TVS, India's third-biggest motorbike maker, is adjusting its production mix by cutting back on motorbikes and stepping up production of cheaper mopeds and scooters.

Ansal Properties & Infrastructure has launched an integrated township at Agra, Uttar Pradesh, which is strategically located near the Delhi-Agra highway, on the Ring Road, Agra.

International Finance Corp (IFC), the private sector arm of World Bank, will take 5.84 per cent stake in Lanco Infratech's subsidiary - Lanco Amarkantak Power Pvt Ltd - for 8 million dollars (about Rs 32.5 crore). IFC has signed an agreement with Lanco Amarkantak to subscribe to a stake of 5.84 per cent amounting to 8 million dollars.

Strides Arcolab has launched US $ 75-million direct, unsubordinated, unconditional and unsecured zero coupon foreign currency convertible bonds due 2012.

Moser Baer India's subsidiary Moser Baer Photo Voltaic (MBPV) had commenced commercial shipment of its solar photovoltaic cells. MBPV has firm customer orders and memorandum of understanding (MoUs) exceeding $100 million.

Ispat Industries reported Q4 net profit of Rs 82.12 crore versus loss of Rs 153 crore on YoY basis. During the corresponding quarters, its net sales was up at Rs 2105 crore versus Rs 1281 crore. Its operatinf profit margin stood at 24% versus 12% during the corresponding quarters.

PVR's Q4 net profit was up at Rs 2.20 crore versus Rs 1.67 crore on QoQ basis. During the corresponding quarters, its net sales was up at Rs 40.6 crore versus Rs 39.5 crore. Its operating profit margin stood at 16% versus 13.5% during the corresponding quarters.

Gujarat State Petronet has posted Q4 net profit at Rs 19.3 crore (Rs 193 million) versus Rs 10.8 crore (Rs 108 million) in corresponding quarter of previous year. Net sales stood at Rs 83.1 crore (Rs 831 million) as against Rs 67 crore (Rs 670 million).

Daily Fundamental Snippets - June 8 2007

Anand Rathi - Daily Strategist

The NIFTY futures saw a gain of 6.23 % in OI with prices coming down sharply and closing low indicating short positions built up in the market thus suggesting if the follow up continues then we may see fresh built up in positions with shorts more aggressive and forcing weak bulls to liquidate their positions. The nifty June series futures closed at 31 points discount to spot nifty suggesting lack of confidence among players resulting in liquidation of positions by weak hands. Market if it sustains below 4240 levels then we may see further short positions built up in the market and longs liquidation. The FII were sellers in index futures to the tune of 164 crs and buyers in index options to the tune of 274 crs. The PCR has come up from 1.62 to 1.60 indicates some strength may be seen in the market.

IV in the market was 26.35 and HV was 22.78.

Among the Big guns, ONGC saw 7.19 % rise in OI with prices coming down indicating built up of short positions in the counter suggesting the counter may show weakness. Whereas RELIANCE saw gain in OI with prices closing down indicating selling pressure emerging in the counter at higher levels thus suggesting the counter may show further weakness in the coming days if market doesn't take support at current levels.

In the TECH counters all the major counters INFOSYSTCH, WIPRO, TCS & SATYAMCOMP saw gain in OI with prices down significantly indicating fresh short positions built up in overall IT pack suggesting further weakness may be seen in these counters.

In the BANKING counters, SBIN saw rise in OI with prices up indicating fresh money coming in the counter with buying spree suggesting further strength in the counter. ICICIBANK & HDFCABKN saw rise in OI with prices remaining in a range suggesting some profit booking may be seen in the counter.

In the Metal pack, TATASTEEL & SAIL saw rise in OI with prices facing resistance at higher levels indicating fresh short positions built up in the counter thus suggesting some weakness may be seen in the counter HINDALCO saw significant gain in OI with prices going up indicating built up of fresh long positions in the counter suggesting further strength in the counter. STER saw gain in OI with prices closing at day's low suggesting fresh short positions built up in the counter suggesting weakness in the counter. NALCO saw gain in OI with prices closing near day's low indicating short positions built up in the counter suggesting weakness in the counter.

We feel that the volume and built up in OI suggests that market may show some weakness if it remains below 4240 levels suggesting one should avoid taking aggressive positions in the market and should hedge the positions appropriately to avoid any unexpected movement in the market. One should trade with strict stop losses to be adhered too.

Stocks to watch: NEYVELILIG, SBIN, HCC, GESCOCORP (Looking positive)

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bearish candlestick.

Technically, one may use the level of 4250 (Nifty) and 14450 (Sensex) as the stop loss level.

Nifty faces resistance at 4340 and Sensex at 14600.

BSE Smallcap and BSE Midcap also exhibited bearish candlesticks.

CNX IT has lost ground.

In the Punter's zone we have a Buy in Federal Bank & Sell in Shri Renuka Sugars and M&M.

In the Technical call section, we have a Buy in Reliance Capital & Sell in ONGC and Reliance Industries.

Anand Rathi - Weekly Technical Note, Weekly Strategist, Weekly Wrap

Weekly Technical Note

Weekly Strategist

Weekly Wrap

Anand Rathi - Daily Strategist

The NIFTY futures saw a gain of 7.42 % in OI with prices coming up and closing dear day's high indicating long positions built up in the market thus suggesting some strength may be seen in the market in the new settlement month as market crossed the resistance of 4280 levels thus may force bears to cover their positions .The nifty June series futures closed at 17 points discount to spot nifty suggesting lack of confidence among players resulting in liquidation of positions by weak hands. Market if it sustains above 4240 levels then we may see further long positions built up in the market and shorts covering their positions. The FII were buyers of index futures to the tune of 392 crs and buyers in index options to the tune of 311 crs. The PCR has come down from 1.53 to 1.54 indicates some consolidation may be seen in the market.

IV in the market was 28.55 and HV was 23.79.

Among the Big guns, ONGC saw drop in OI with rise in prices indicating shorts covering up their positions in the counter suggesting some strength may be seen in the counter. Whereas RELIANCE saw drop in OI with prices remaining in a range suggesting some consolidation may be seen in the counter before taking any harp direction on either side.

In the TECH counters, INFOSYSTCH & WIPRO saw drop in OI with prices up indicating shorts covered their positions indicating buying support emerging at lower levels suggesting some strength may be seen in these counters. SATYAMCOMP saw drop in OI with prices coming up suggesting buying emerging at lower levels in the counter thus forcing bears to cover their positions .TCS saw rise in OI with prices coming down indicating short positions built up in the counter suggesting some weakness may be seen in the counter.

In the BANKING counters, SBIN saw rise in OI with prices up indicating fresh money coming in the counter with buying spree suggesting further strength in the counter.ICICIBANK saw rise in OI with prices remaining in a range suggesting some profit booking may be seen in the counter. HDFCBANK saw drop in OI with prices moving up and closing high indicating shorts covering their positions aggressively in the counter suggesting further strength may be seen in the counter.

In the Metal pack, TATASTEEL & SAIL saw rise in OI with prices facing resistance at higher levels indicating fresh short positions built up in the counter thus suggesting some weakness may be seen in the counter .HINDALCO saw gain in OI with prices in a range suggesting some consolidation may be seen in the counter .NALCO saw gain in OI with prices closing near day's low indicating short positions in the counter suggesting weakness in the counter .STER saw marginal drop in OI with rise in prices indicating fresh long positions built up in the counter suggesting strength in the counter.

We feel that the volume and built up in OI suggests that market may show some profit booking in the coming few days as lot of positions are outstanding in the market so one should not take aggressive positions in the market. Market may show further weakness and we may see fresh selling emerging in the market if market sustains below 4220 levels. One should trade with strict stop losses to be adhered too.