Bajaj Auto Shows Sharp Increase in Quarterly Sale and Profit: Result
Result Overview: Net Profit Increase 40%
Bajaj Auto sprang up a surprise when it has reportedly registered a 40% increase in its net profit in the third quarter that culminated on December 31, 2010. With this unexpected jump, the Indian two wheeler giant has pocketed a net profit of Rs.667 crore.
The company with its impressive performance has wronged the speculation of the trade pundits. Analysts now believe that the remarkable growth is hugely motivated by the success of company’s popular brands “ Bajaj Discover” and “Bajaj Pulsar”.
Latest financial results show that the turnover of the company has grown by 28% to Rs 4,277 crore. The official statement issued by Bajaj Auto Limited confirmed that the last financial quarter saw overall progress in the input costs. The statement further told that the company remained focused towards achieving excellence in the production of high quality motorcycles. This focus allowed the company to uphold great margins in addition to 20%.
During the third quarter, the company sold more than 8.38 units of motorcycles. This figure marks a growth of 18%. Domestic sales increased by 23% to about 6 lakh units while exports increased by 7% to more than 2.39 units. Company’s flagship bike segment “Pulsar” registered a record-breaking quarterly sale that reached the magical figure of 2.62 lakh units.
ITC Limited Announces Rs 3,000-Crore Paper Unit Plan in Andhra: Buzzing Stock
Breaking News: ITC Limited India Giant’s Expansion Plans
The new paper manufacturing unit which would come up in Khammam district, Andhra Pradesh is expected to consolidate ITC’s domination over the fast-developing paper and paperboards market in the nation.
Presently, ITC, one of prestigious business conglomerates in the country, owns 4 paper manufacturing facilities which account for the production of 5.5 lakh tonnes of paper and paperboards. The company has been playing leadership roles in the supply of specialty papers used mainly for printing, writing and packaging purposes.
The plan to set up new paper manufacturing unit has received on-paper consent from the state government. It is expected that the Union Ministry of Environment and Forests would extend its approval for the project within the next 6 months.
Pradeep Dhobale, the executive director of ITC Limited, informed that the projected paper manufacturing unit would cover an area of 1,000 acres with expected production capacity of about 300,000 tonnes per annum. This capacity would make the plant highest paper manufacturing facility in the country.
Industry analysis suggests that the paperboard demand in the country stands around 1.8 million tonnes annually. This demand is increasing at the rate of 8 to 10 percent every year. ITC alone captures about 22% of the domestic paperboard market.
The company’s Bhadrachalam unit, located in Andhra Pradesh, is also in the process of expansion. The company plans to invest Rs 1,100 crore in this unit as part of its capacity extension plan.
Tata Coffee-Starbucks Sign MOU For Strategic Alliance In India
Tata Coffee Sign MOU with Starbucks
With the inking of the non-binding collaboration deal with the Indian Coffee giant, Starbucks Coffee Company has announced its entry into the Indian market. The US-based Starbucks Coffee Company has global reputation for ethically sourcing and roasting top quality of Arabica coffee.
The MOU is being termed as a strategic alliance between the two coffee producing giants. Experts are hopeful that the deal would create new avenues of collaboration between both of the companies in the production of premium quality coffee beans in the Tata Coffee producing facility located in Coorg, India. Apart from it, the involved companies are also expected to find out development and expansion options of Starbucks retail outlets in related retail stores and hotels.
The alliance also acknowledges mutual commitment of Tata Coffee and Starbucks towards dependable business values. According to the MOU signed, both the companies would collaborate with each other for promoting reliable agronomy practices which include initiating training programs for local farmers, agronomists and technicians. These efforts would improve and enrich the milling and coffee growing skills among the professionals.
Future Plans and Strategies
Tata Coffee owns huge expertise in the production and processing of coffee beans with firm focus on quality. The company has won world-wide appreciation for its wide range of premium coffee brands. Its Arabica coffee producing base is stretched over various South Indian districts. In the past, the company has provided top-quality coffee beans to Starbucks. The strategic alliance would enable both the companies to enter into a new phase of long-term relationship.
Initially, the business collaboration would enable the companies to explore further options in the fields of coffee beans sourcing and roasting. It is expected that both the companies would attempt towards green coffee procurement from the Tata Coffee estates. Then, they would use the roasting facilities owned by Tata Coffee presently.
Stock Trading Advice: Mid Term Stock Picks of the Day | Daily Stock Picks
Smart Planet brings some new stocks picks from their kitty, every day we will analyze 4 to 5 stock which you bet for medium to long term investment perspective, so for todays 4 stocks are as follows:
Aurobindo Pharma:
Buy: Market Price: Rs 858
Target Price: Rs 1334
Aurobindo Pharma, is currently trading at 5x Financial Year 2010 EV/ EBIDTA, (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization or Enterprise Multiple) it is currently running on a substantial discount as compared to other industry peers because of its legacy API model. But with the conversion vertically integrates business model, and with capacity build up in niche segment also deals with the MNCs, it can touch figures of Rs 1334 based on 7x Fy12 EV / EBI
DTA for 12- 15 months investment horizon.
SHILPA MEDICARE
BUY – Market Price: Rs 126
Target Price: Rs 170
Shilpa Medicare: We are Bullish on this stock on medium term perspective because we expect incremental sales generation from Shilpa’s new oncology blocks post the EDQM (European Directorate for the Quality of Medicines & HealthCare approval). The company may target about two off patented oncology molecules for API supplies every year. The new JOINT VENTURE with custom synthesis partners will be EBIDTA accretive. Medium Term target price is Rs 494, based on 12x FY 12E EPS ( Standalone) of Rs 41. Also if you analyze the First quarter it was Rs267.20 on March 29 and in second quarter it increased to Rs293.9 as on 25 June. So there is not much downside on the stock and even has not break the support of Rs250, so we can expect rise in fourth quarter.
GMDC – GUJRAT MINERAL DEVELOPMENT CORPOARTION
BUY – Market Price: Rs 126
Target Price: Rs 170
GMDC’s EBIDTA may grow up to Rs 950 crore by Financial Year2011 – 2012E. It is currently trading at Rs 126; it has an EV/ EBIDTA of 5.1X and 3.6X of its FY 11E EDIBTA respectively. We are taking into consideration its lignite volumes, power plants and bauxite volumes, thus we have assign a one year forward multiple of 5X to the company’s FY12E EBIDTA.
HINDUJA GLOBAL SOLUTIONS
BUY Market Price: Rs 443
Target Price: RS 593
The Company likes to grow at a CAGR (Compound Annual Growth Rate) of 15.5% from financial year2010 – 2011 / 2012E. It has a cash mountain of Rs 6423million. They will like to uses for their inorganic growth. Cash per share of Rs 312 and a dividend yield of 4.5% limit downside risk. With the stock valued at 8.5X FY 12E EPS, the target price is %93 with a buy rating.
Stock Trading Advice: Stock Tips For Medium Term to Long Term Investment
Smart planet brings you Top 5 Stocks that you can bet on with a medium term perspective. These are based on extensive research by the team.
ASTRAL POLY TECHNIK:
BUY – Market Price: Rs250
Target Price: Rs 325
APTL, A leading manufacturer of CPVC pipes, is substituting GI pipes in the plumbing space. APTL is a licensee of US – based Lubrizol for sourcing CPVC resins, the key entry barrier for CPVC pipes. Proactively planned CAPEX will ensure unhindered growth without any financial risks.
