Tag Archives: Cadila Healthcare

Portfolio Review: 16 October 2010

Indian share market closed the week in red for the second consecutive week. BSE Sensex slipped 0.62% to end the week at 20,125 points and NSE Nifty slipped 0.67% to end at 6,063. My portfolio lost 0.80% during the week. In the year to date, the gain in my portfolio is 14.21%. During the current month, Hindustan Zinc, Biocon, Dr. Reddy’s, Maharashtra Seamless, and NIIT Technology were the largest gainer in my portfolio while Bharti Airtel, NTPC, Blue Star, Berger and Dabur India contributed to loss!

Good buys in my watch list

Script Sector 3 Years Target Current Price Margin
Hero Honda Auto 3,108.00 1,802.40 72%
Maharashtra Seamless Metal 739.00 435.15 70%
HUL FMCG 477.00 298.10 60%
Divis Laboratories Pharma 1,095.00 717.45 53%
Bharti Airtel Telecom 510.00 334.25 53%
Tech Mahindra IT 1,112.00 752.45 48%

News Update

Wind turbine manufacturer, Suzlon Energy, today announced new orders for developing 168.5 megawatt (MW) wind turbine capacity. Most of these are repeat orders and have come from the corporate and small and medium business segments as well as public sector undertakings (PSU). These orders have come on the back of the Techno group’s order of 202 MW on September 21 and the Altrade group’s order of 30 MW on September 3. – Business Standard, 2010 October 15

Belgium-based gearbox maker Hansen Transmissions, a subsidiary of Suzlon Energy, is planning to sell its industrial gearbox division to Sumitomo Heavy Industries for Rs 465 crore (euro 75 million). The division gets about 16 per cent of Hansen’s revenues; the company is mainly a wind energy gearbox manufacturer. After the transaction, Hansen will become a purely renewable energy company, the statement said. The division had generated revenues of Rs 514 crore (euro 83 million) in 2009-2010 and Rs 580 crore (euro 94 million) in the previous financial year, representing 15.6 per cent and 15.5 per cent of total sales of Hansen. – Business Standard, 2010 October 16

Bharti Airtel, India’s largest telco by both revenues and customers, may have to fork out more than Rs 1,800 crore to buy out Telecom Consultants of India’s (TCIL) 30% stake in its subsidiary Bharti Hexacom, which offers mobile services in six northeastern states (excluding Assam) and Rajasthan. – The Economic Times, 2010 October 16

Top mobile operator Bharti Airtel , which recently outsourced the IT requirements for its Africa operations to IBM, is now close to finalising a deal to outsource its customer support services. The deal could be a landmark in the African continent, where customer support is limited and rarely outsourced. – The Economic Times, 2010 October 15

Infosys Technologies on Friday reported consolidated revenues of Rs.6,947 crore in the second quarter ended September 30, an increase of 24.4 per cent over the previous year. The company made a net profit of Rs.1,737 crore in the second quarter, an increase of 13.2 per cent on an annualised basis. Earnings per share were higher by 13 per cent at Rs.30.41 compared to the previous year. – The Hindu, 2010 October 15

Dr Reddy’s Laboratories said on Saturday it had received an approval from the U.S. Food and Drug Administration for lansoprazole delayed-release capsules. The firm will be launching the capsules, a bioequivalent generic version of Prevacid Delayed Release Capsules, in the U.S. market, it said in a statement to the Bombay Stock Exchange. – Reuters, 2010 October 16

Eli Lilly, the US pharma giant, has sued Dr Reddy’s Laboratories over an alleged patent infringement involving Gemzar. The drug, an injection, is used in treatment for non-small cell lung cancer, pancreatic cancer, breast cancer and ovarian cancer and is estimated to have a market of about $700 million. – DNA, 2010 October 12

Drug firm Cadila Healthcare today said it has launched generic Pramipexole tablets, used for treating Parkinson’s disease, in the American market. The sale of Pramipexole tablets in 2010 is estimated to be USD 632 million according to healthcare information solutions company NDC Health, Cadila said. – The Economic Times, 2010 October 14

Global power equipment major Alstom will tie up with Bhel to supply turbines for Nuclear Power Corporation’s (NPCIL) 700-mw pressurised heavy water reactors (PHWR) based nuclear power plants. A tripartite joint venture (JV) agreement between the French company, Bhel and NPCIL will be signed soon, a senior executive of Alstom Power said. – The Financial Express, 2010 October 14

Interesting Reading

HUL plans ‘Bharat’ packs for rural markets

Hindustan Unilever Ltd (HUL) is going beyond the Shakti Ammas to drive penetration in the rural markets. After witnessing a good monsoon which might lead to increased rural spending, HUL is planning to bring out branded packs called ‘Bharat,’ targeted at the rural hinterland pegged at Rs 25. Considering nearly half the FMCG behemoth’s turnover (Rs 17,524 crore) comes from the rural markets, it is now ready to have customised branded packs with lower-priced SKUs to cater specifically to them. According to industry sources, HUL is now in talks with rural marketing agencies to create a ‘Bharat Pack.’ The pack would comprise smaller SKUs costing Rs 4-5, and consist of toothpaste, shampoos, powder and soaps. http://www.thehindubusinessline.com/2010/10/15/stories/2010101553440900.htm

HUL, P&G, Reckitt, Kellogg’s raise margins up to 25%

Modern retail has taken a lead in its fight against consumer product companies with consumer product companies including Hindustan Unilever and Procter & Gamble increasing retailers’ margins on the wake of tough competition from the latter’s private brands. http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/HUL-PG-Reckitt-Kelloggs-raise-margins-up-to-25/articleshow/6750769.cms

Foreign institutions hike stake in 14 out of 16 Sensex companies

Foreign institutional investors (FIIs), which exert a substantial influence on the Indian markets, have increased their stake in nearly half of the Sensex companies in the past quarter. Among the 16 Sensex firms that have disclosed their shareholding pattern for the quarter ended September 30, 2010, 14 saw a rise in the FII holdings. This shows that FIIs were mostly bullish on large caps in the September quarter. – http://www.financialexpress.com/news/Foreign-institutions-hike-stake-in-14-out-of-16-Sensex-companies/698227/

Infosys Technologies: The Leadership Factory

Barney is the head of leadership development at Infosys Leadership Institute. Never in the storied 29-year history of Infosys has so much hinged on this responsibility. The seven founders, each of them pillars in their own right, have built and run a company that is solid in its business construct and has values that are unimpeachable. But they are leaving, one by one.  In his earlier assignments, Barney helped some of the world’s top companies, including Motorola , AT&T and Lucent Technologies , to identify their next set of leaders. But, with Infosys, he’s working for the first time with founders seeking to pass on the baton.  http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/Infosys-Technologies-The-Leadership-Factory/articleshow/6750920.cms

Paint industry indicates resurgent real estate sector

Economists who perceive sales of paint as an indicator of the state of the economy may be counting the numbers already, but these days business is a shade different. With the rise in disposable income and rapid urbanisation, the seasonality of the business is flatenning out—paints are selling all round the year. http://economictimes.indiatimes.com/features/sunday-et/business/Paints-no-longer-a-seasonal-business/articleshow/6761604.cms

The mystery known as Bharti Airtel

Bharti Airtel. Investors will likely have mixed feelings on hearing this name. Depending on when one has invested in the stock, one will either be thrilled or dejected. Year on year, the stock has returned next to nothing. But for those who’ve invested 3-4 months back, the returns have been fantastic to say the least. http://www.equitymaster.com/detail.asp?date=10/13/2010&story=8

A pure value proposition

The water purification category grows on the back of storage water purifiers with a range of value-for-money models launched by Eureka Forbes and HUL. W hen Shapoor Mistry, Chairman of Eureka Forbes, made a rare public appearance at a press conference to announce the launch of new variant of Aquasure, it emphasised his company’s vision to provide pure and safe drinking water to every Indian home. Today the pioneer and leader in water purification is targeting the mass market with value-for-money (VFM) products. Competing with Eureka Forbes is one of the largest FMCG majors in the country, Hindustan Unilever Ltd (HUL), with its Pureit brand. http://www.thehindubusinessline.com/catalyst/2010/10/14/stories/2010101450030100.htm

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week -0.80% -0.62% -0.67%
This month 1.12% 0.28% 0.54%
This Year 14.21% 15.23% 16.57%
Since 1-1-2009 133.86% 108.61% 104.89%
Since 1-1-2008 57.18% -0.41% -0.28%
Since 1-4-2007 95.28% 53.95% 58.64%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 9 2.91 Years 84
Tata Global Beverages FMCG 6 1.90 Years 144
Bharti Airtel Telecom 6 9 months 15
HUL FMCG 6 3 Months 17
Maharashtra Seamless Metal 5 3 months 11

Shares I bought this month

Company Avg Price
Graphite India 93.61
Mangalam Cement 160.87
Ess Dee Aluminium 491.95
Opto Circuits 309.05
Divi’s Laboratories 723.45
Tech Mahindra 768.85

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 217 2.4 Years
Dabur India 158 4.5 Years
Tata Global Beverages 144 1.9 Years
Berger Paints 156 3.6 Years
Infosys 84 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -8 1 month
Graphite India -3 2 months
Tech Mahindra -4 0 month
Hero Honda -3 4 months
Ess Dee Aluminum -4 0 months

Archive of previous portfolio reviews

Pharma may log modest growth in Q4

The pharma sector is expected to log a modest performance for the quarter ended March 2010. Mid-sized pharma companies like Cadila Healthcare, Lupin, Piramal Healthcare, Biocon, Glenmark Pharma are likely to outperform sector biggies like Cipla and Ranbaxy. – A report in Economic Times says.

Aggressive product launches in the US, growth registered in the emerging markets and revival in contract manufacturing are likely to trigger this growth. Though rupee appreciation is negative for export oriented companies, the companies with foreign debts will benefit.

Read complete report of Economic Times

Related Link

Biocon | Cadila Healthcare | Glenmark Pharma | Pharma

Good Buys in Indian Shares

Sensex declined 1.91% to 17,591 and Nifty declined by 1.85% to 5,263 this week. With this, year to date gain of Sensex reduced to mere 0.72% and Nifty to 1.18%. Year to date gain in my equity portfolio stands at 1.98% which lightly beat the market!

In the Indian share market which is believed to be overpriced, there are still a few stocks that are attractively priced. In my watch list, Bharti Airtel (304.35) and Tata Communications (280.40) in Telecom sector, Hero Honda (1,919.50) in Automobile sector, and NIIT Technologies (179.15) in IT sector are the good buys at the current market price. As always, set limits for individual shares and individual sectors in order to avoid concentration on a few shares in your portfolio.