Granules India jumps on Chinese joint venture

Granules India jumped 6.62% to Rs 107.55, on a joint venture agreement with a Chinese pharma firm. A total of 2.13 lakh shares changed hands in the counter on BSE.

The stock witnessed volatile movements in the past. From Rs 111.20 on 28 August 2006, it slipped to Rs 96.55 by 12 September 2006, on selling pressure. It found support at this level and started moving higher to Rs 108.15, by 29 September, only to fall to 101.15 by 11 October 2006, on profit-booking.

Granules India signed a memorandum of understanding (MoU) with Hubei Biocause Heilen Pharmaceutical Company (Biocause) of China. The company is acquiring 50% stake in a joint venture entity to manufacture and sell APIs, including Ibuprofen. Hubei Biocause Heilen Pharmaceutical Company is one of the biggest Ibuprofen manufacturers and exporters in the world.

Under the agreement, the manufacturing bases of Biocause, located in Jingmen, Hubei province, China, will be transferred to the Joint Venture entity, where both will hold 50:50 stake. Granules will be responsible for the development and growth of the market for the products manufactured by the joint venture.

In August, Granules India and Amneal Pharmaceuticals (United States) got approval for their ANDA of anti-diabetic drug Metformin Hydrochloride tablets of 500 mg, 850 mg and 1,000 mg. This is the first time that the FDA has approved an ANDA with a PFI (Pharmaceutical Formulation Intermediate) - DMF as a raw material.

Granules India manufactures compressible granules as a value added product to the pharmaceuticals formulations segment. The company currently caters to Pharmaceutical Formulation Intermediates (PFI) requirements in the OTC segment.

The company manufactures directly compressible (DC) paracetamol, ibuprofen, metformin and muaifensin. It is already supplying PFIs and Active Pharmaceutical Ingredients (APIs) to Merck and Ratio Pharma, BMS (UPSA), Herron Pharmaceuticals, and GlaxoSmithKline in India.

Granules India registered a net profit growth of 25.30%, to Rs 2.43 crore for Q4 June 2006, compared to a net profit of Rs 1.94 crore for Q4 June 2005. Net sales rose 36.60%, to Rs 47.74 crore (Rs 34.95 crore).

Source: Capitalmarket

Madhucon Project edges up as subsidiary achieves financial closure

Madhucon Project edges up as subsidiary achieves financial closure. Madhucon Project rose 0.83% to Rs 256.50, on the financial closure of its TN (DK) Expressways unit, a Rs 360-crore road project in Tamil Nadu.

As many as 8,377 shares were traded on the BSE.

The current price of Rs 256.50 discounts its projected FY 2007 (year ended 31 March 2007) EPS of Rs 18.30, by a PE multiple of 14.

Madhucon Projects has announced that its unit TN (DK) Expressways had achieved financial closure for a Rs 360-crore road project in Tamil Nadu. The State Bank of India is the lead banker in the consortium of the special purpose vehicle.

Madhucon also said it had a strong order backlog of over Rs 5,000 crore in highways, toll roads, irrigation, and residential and commercial projects.

Recently, the company increased the aggregate limit of FII-holding up to 40% in the paid-up equity capital of the company.

In July, the company had signed a concession agreement with the National Highways Authority of India (NHAI) for an over 126 km stretch of road between Madurai and Tuticorin on a build, operate and transfer (BOT) basis. The Rs 820-crore toll road project is scheduled to be completed in 36 months, with a concession period of 20 years and with a positive grant of Rs 145 crore, which is payable by NHAI.

In June, Madhucon Projects purchased six computerised hot-mix plants from a German company, Lintec GmbH, for Rs 28 crore. The company already has three such hot-mix plants of Lintec.

Madhucon Projects in March bagged an order from the National Highway Authority of India (NHAI) relating to a highway project in Tamil Nadu. The total project cost is over Rs 330 crore.

In February 2006, Madhucon raised about Rs 300 crore through a GDR issue.

In the construction segment, Madhucon Projects focusses on roads and irrigation contracts. The company uses limited subcontracting for orders and employs own equipment for executing the projects, enabling it to earn better margins compared to peers. Further, Madhucon's margins have remained unaffected by raw material price fluctuations on account of price escalation clauses built into all its contracts.

For Q1 June 2006, Madhucon Projects reported 163% growth in net profit to Rs 9.10 crore (Rs 3.46 crore), on 85% growth in revenue to Rs 113.05 crore (Rs 61.03 crore).

News Before Market Opening: Madhucon Projects may edge higher on strong order backlog

Source: CM

Shringar Cinemas elated as Ambani siblings vie for stake

Shringar Cinemas surged 10% to Rs 61.15, on reports that the Ambani siblings are in contention to buy a substantial stake in the multiplex operator.

The promoter Shroff family, which is in the film exhibition business under the 'Fame' umbrella, is in talks with both groups for selling a large stake. They currently own about 47.5% stake.

As many as 60,333 shares were traded in the counter on BSE with pending buy orders of 2.06 lakh shares at the maximum limit.

The counter witnessed a solid surge in the past couple of days, from Rs 46.05 on 26 September, to Rs 60 by 9 October 2006, only to fall to Rs 55.60 by 11 October, ahead of this development.

Reports say that discussions now centre on the amount of stake to be sold. The existing promoters would continue to retain a small stake in the company. The company is likely to be valued around Rs 175 - Rs 200 crore.

The new investor will own a majority 51% stake possibly through a part purchase and infusion of fresh equity.

While the purchase of Shringar Cinemas will greatly help the Anil Ambani group's Adlabs Films to expand and consolidate its position in the multiplex business, the Mukesh Ambani group is looking for partners as it forays into real estate and infrastructure development.

Shringar has been looking to raise money for some time now from other investors. The company was talking to Standard Chartered private equity fund and South Korean multiplex operator, Megabox, some time ago. However, these proved futile.

As per reports in April, Shringar Cinemas plans to raise $ 20 million through FCCBs. The bonds will be listed on the Singapore Stock Exchange.

Shringar Cinema is a film distribution and exhibitor. The distribution business of the company was managed under a 100% subsidiary, Shringar Films. The company, currently, operates its multiplexes under the Fame brand.

Shringar Cinema registered a net profit growth of Rs 1.26 crore for Q1 June 2006, compared to a loss of Rs 1.22 crore for Q1 June 2005. Net sales rose 80.10%, to Rs 10.57 crore (Rs 5.87 crore).

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Madhucon Projects may edge higher on strong order backlog

Madhucon Projects said on Wednesday its unit TN (DK) Expressways had achieved financial closure for a Rs 360 crore road project in Tamil Nadu. The State Bank of India is the lead banker in the consortium of the special purpose vehicle.

Madhucon also said it had a strong order backlog of over Rs 5000 crore in highways, toll roads, irrigation, and residential and commercial projects.

Torrent Pharmaceuticals has entered into an agreement with Tasly, one of China's largest pharma companies, to exclusively market their blockbuster drug, Cardio-tonic pill, in India. Cardiotonic is sold globally in 13 countries, including US. The USFDA-approved drug has sales of $360 million globally with $30 million in US alone, besides being the highest selling single medicine in China, with sales of over $160 million.

Electrical appliance maker Asian Electronics said on Thursday its board had approved issuing 2.1 million equity shares to qualified institutional buyers at Rs 460 a share. The stock had settled at Rs 505.75 on BSE on Wednesday (11 October), ahead of the announcement.

Apollo Hospitals Group on Wednesday signed a joint venture agreement with Deutsche Krankenversicherung AG (DKV) to invest 20% of the equity capital of the proposed Joint Venture Company to carry on health insurance operations in India. Apollo Hospitals had on Tuesday approved forming a joint venture with Deutsche Krankenversicherung AG. Deutsche Krankenversicherung is part of the German reinsurer Munich Re group.

Aztec Software & Technology reported a 7.9% growth in net profit for Q2 September 2006 at Rs 6 crore (Rs 5.56 crore). Net sales rose 46% to Rs 45.87 crore (Rs 31.40 crore).

Capita Telepholio Gives BUY Recommendation

BUY	     : Infosys Technologies at Rs 1981
BSE Code  : 500209
 NSE Symbol: INFOSYSTCH
Market Lot: 1

Infosys continues to offer earning surprises and one of the best  
visibility in earnings growth. Another secondary ADS offer will also aid 
faster appreciation

Actual consolidated EPS for March 2005	:  Rs 33.3
Actual  consolidated EPS for March  2006	:  Rs 44.4
Projected consolidated EPS for March 2007	:  Rs  68