Ranbaxy Laboratories said Norwegian court ruled in its favor against Pfizer Inc

Generic drugmaker Ranbaxy Laboratories on Tuesday said a Norwegian court ruled in its favor against Pfizer Inc. involving two patents on a cholesterol-lowering drug. The Oslo city court found that Ranbaxy's Atorvastatin was not infringing Pfizer's Norwegian patents, Ranbaxy said in a statement.

Radha Madhav Corporation to allow foreign investment upto 30% of expanded capital

Packaging company Radha Madhav Corporation said late on Tuesday that its board had decided to allow foreign investment in the company up to 30% of the expanded capital.

Geometric Software Solutions Company has announced formation of a new group for Virtual Product Design

Geometric Software Solutions Company has announced formation of a new group for Virtual Product Design. This would further align the focus of the company to that of the OEM's who are moving away from physical prototypes to virtual or digital mock ups to reduce cost and time to market entry of new models, the company said in a statement. The VPD group will facilitate additional capability to the company in terms of offering services in the area of advanced CAE and CFD for automobile, aerospace and the general engineering domains, the company said.

Lloyd Electric & Engineering has signed a memorandum of understanding (MOU) with Hanyung Alcobis Company

Lloyd Electric & Engineering has signed a memorandum of understanding (MOU) with Hanyung Alcobis Company, a Korea based company, for manufacturing of Roll Bond and Fin Cross Evaporators including all type of Evaporator/condensor for refrigerators produced by the Korean Company.

EMCO may gain on new order win

EMCO has received power transformers order worth Rs 270 crore from Karnataka Power Transmission Corporation (KPTCL) which is funded by Power Finance Corporation and is to be executed within 1 year. With this order, the company's order book stands at a record high of Rs 810 crore, EMCO said in a statement.

Volatility may heighten ahead of derivatives expiry - 30th August 2006

The market may open firm on the back of steady to firm Asian markets and on further fall in crude oil price. In the next two days, the market may turn volatile due to alternate bouts of short covering and bull unwinding in the derivatives segment ahead of expiry of August 2006 derivatives contracts on Thursday (31 August). Historically, short covering has been witnessed ahead of the futures expiry.

Asian stock markets inched higher on Wednesday on growing expectations of an extended pause in US interest rate rises, but gains were limited by worries of flagging consumer confidence in the world's biggest economy. Key benchmark indices in Hong Kong, Japan, Taiwan and Singapore were up by between 0.29% to 1.6%. South Korea's Seoul Composite was slightly lower.

US stocks rose on Tuesday as minutes from the latest Federal Reserve meeting helped to cement investors' view that the Fed won't need to raise interest rates again any time soon and crude oil prices dropped below $70 a barrel. The Dow Jones industrial average gained 17.93 points, or 0.16% to end at 11,369.94. The Standard & Poor's 500 Index added 2.50 points, or 0.19% to finish at 1,304.28. The Nasdaq Composite Index climbed 11.60 points, or 0.54% to close at 2,172.30.

Crude oil recouped part of Tuesday's fall. NYMEX crude for October delivery rose 29 cents to $70 a barrel in Asian trading on Wednesday, supported by an expected decline in US crude and gasoline stocks in statistics due later on Wednesday and Iran's determination to press ahead with its nuclear programme.

As per provisional data, FIIs bought shares worth a net Rs 203 crore on Tuesday (29 August), the day when Sensex had risen 87 points. On Monday 28 August, FIIs bought shares worth a net Rs 43.40 crore. There has been sustained FII buying since late July 2006.

 

Mutual funds sold shares worth a net Rs 11 crore on 28 August. Mutual funds are sitting on good amount of cash and they may step up purchases at declines.

 

Source: Capitalmarket

Derivative Pick for Medium Returns with Medium Risk

HOLDING PERIOD - FIFTEEN DAYS

BHARAT ELECTRONICS ( Rs.1202) : The stock has broken out of a very bullish pattern in the daily chart and both the 14 day RSI and StochRSI has given a fresh buy signal. Buy above Rs.1205 with a stop loss of Rs.1184 for a minimum target price of Rs.1262. Higher targets of Rs.1295-1305 are also possible.

SUZLON ( Rs.1241) : The stock has moved up after a decent consolidation and has closed on a strong note. All the oscillators are supporting the likely upmove. Buy above Rs.1245 with as stop loss of Rs.1224 for a target price of Rs.1264 and Rs.1282.

 

High Risk and High Return Investment

HIGH RISK / HIGH RETURN Investment
 

INDIA BULLS ( Rs.301.70) is being bought by a Mumbai based operator in a big way and he expects the stock to cross the Rs.350 mark very soon.

ESAB INDIA ( Rs.375.25 ) is likely to report excellent numbers in the next two quarters, says a leading engineering analyst from Mumbai. He expects the stock to cross the Rs.500 mark in the next one year.

TRF is likely to receive a big order and a leading brokerage house is recommending this stock to all their clients with a price target or Rs.600 plus in one year.

Pune Based Praj Industries shall give 30% returns on investment

PRAJ INDUSTRIES
Present Price - Rs.175 Projected Price - Rs.225

Praj industries based in Pune is engaged in the manufacture of distillery and fuel ethanol plants and is the leader in the domestic market with a market share of more than 75%. The world ethanol consumption has grown from 27 billion litres in the year 2001 to 41 billion litres in 2005, which has been mainly driven by the increasing consumption of fuel ethanol. By 2010 the world ethanol consumption is
expected to reach a level of 72-80 billion litres. Apart from the domestic market, PIL already has a presence in South East Asia, Australia, Africa and Latin America, where the company will focus on organic growth to improve its financial performance. On the technical front, one can notice in the adjacent technical chart that the stock has broken out of triangular pattern and is headed for substantially higher levels. Long term holders can expect higher targets.

 

35% to 40% returns on this stock recommended by Anand Rathi securities

We initiate coverage on REI Agro. with a BUY recommendation and a price target of
Rs.170/-. CMP is Rs. 124.

Investment Arguments
Largest Basmati Rice Miller in the World
REI has in a timespan of less than a decade, emerged as the largest Basmati rice miller & enhanced capacities will enable the company to cater to growing market demands, particularly from modern retail & export markets.

Shift from Unorganized to Organized
There's a perceptible shift of market share from unorganized players to organized ones, as they are able to offer quality product in volumes & at affordable price. REI, being a key player, will be able to leverage it's economies of scale to garner greater market share.

Favorable Demographics
India's Favorable Demographics, coupled with rising incomes & the willingness of consumers to pay a price premuim will provide greater opportunities for Branded players.

Improved Revenue Mix
Over the last 2 years, the contributions from Branded Sales & Export sales are rising & management is taking credible steps to further better that mix.

 

Enhancing Margins
Company's initiative to emerge as a branded player, both domestically & overseas is enhancing the margins, a trend likely to continue in near future.

Risk Factors

Being an Agro-based player, company is vulnerable to vagaries of nature.

High Leverage, with relatively low net margins could doubly hurt the company, in case of bumper basmati crops.

Valuations

At the current Market Price, the stock discounts FY07E Earnings by 6.5x & FY08E earnings by 4.9x, which is lower than the historical multiple stock traded at. Also, given the leadership status of the company & earning visibility, we initiate coverage with an
Buy rating & a price target of Rs.170/-