Havells India Q3 net profit stands at Rs. 120.7 crore; sales up 7.8%

Total Income has increased from Rs. 1256.3 crore for the quarter ended December 31, 2014 to Rs. 1357.7 crore for the quarter ended December 31, 2015.

Havells India Ltd has announced the following Unaudited Standalone results for the quarter ended December 31, 2015 

The Company has posted a net profit of Rs. 120.7 crore for the quarter ended December 31, 2015 as compared to Rs. 116.2 crore or the quarter ended December 31, 2014. Total Income has increased from Rs. 1256.3 crore for the quarter ended December 31, 2014 to Rs. 1357.7 crore for the quarter ended December 31, 2015.

Net sales in third quarter stood at Rs. 1,344 crore, up 7.8% from Rs. 1,247 crore in the year-ago period. During the quarter under review, cable segment revenue were at Rs. 522 crore compared with Rs. 495 crore.

Stock Commentary:

Havells India Ltd is currently trading at Rs. 291.95, down by Rs. 9.9 or 3.28% from its previous closing of Rs. 301.85 on the BSE.

The scrip opened at Rs. 301.95 and has touched a high and low of Rs. 301.95 and Rs. 291.3 respectively. So far 1644124(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 18853.18 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 321.9 on 01-Jan-2016 and a 52 week low of Rs. 235.6 on 09-Nov-2015. Last one week high and low of the scrip stood at Rs. 304.7 and Rs. 272.85 respectively.

The promoters holding in the company stood at 61.63 % while Institutions and Non-Institutions held 29.24 % and 9.12 % respectively.

The stock is currently trading above its 50 DMA.

Indigo soars! Interglobe Aviation gains 4%

The company reportedly said that it is in discussions with aircraft maker Airbus regarding the delay and revised schedule for the delivery of new planes.

Interglobe Aviation Ltd stock was up by 4% at Rs. 939. The company reportedly said that it is in discussions with aircraft maker Airbus regarding the delay and revised schedule for the delivery of new planes.

 The scrip opened at Rs. 908 and has touched a high and low of Rs. 961 and Rs. 908 respectively. So far 3040399(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 32540.2 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 1395.5 on 01-Jan-2016 and a 52 week low of Rs. 848.1 on 10-Nov-2015. Last one week high and low of the scrip stood at Rs. 1239 and Rs. 888 respectively.

The promoters holding in the company stood at 86.15 % while Institutions and Non-Institutions held 7.2 % and 6.65 % respectively.

The stock is currently trading above its 50 DMA.

Lakshmi Precision Screws approves sale of 49% in LPS Bossard

The company approved the sale of the entire stake of 49% of LPS Shares in LPS Bossard Private Limited, Joint venture which was valued equal to Rs. 40.18 crores.

Lakshmi Precision Screws Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 25, 2016, has transacted the following:

1. The company approved the sale of the entire stake of 49% of LPS Shares in LPS Bossard Private Limited, Joint venture which was valued equal to Rs. 40.18 crores (Total Valuation of LPS Bossard Limited as per Discounted Cash Flow Method is Rs. 82.08 Crores as per Valuation Report) to any other related party i.e. Mr. Rajesh Jain and Associates where Rajesh Jain holds majority of shareholding.

2. It has also approved the proposal for obtaining members approval by special resolution being Material related party transaction for sale of stake of 49% LPS Shares in LPS Bossard Private Limited by the postal ballot process. The cut-off date for the purpose of the Postal Ballot will be January 29, 2016.

3. Mr. Suresh Kumar, Practicing Company Secretary has been appointed as Scrutinizer to conduct the postal ballot voting process.

Lakshmi Precision Screws Ltd is currently trading at Rs. 46.2, up by Rs. 4.2 or 10% from its previous closing of Rs. 42 on the BSE.

The scrip opened at Rs. 46.2 and has touched a high and low of Rs. 46.2 and Rs. 46.2 respectively. So far 6584(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 45.95 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 64 on 22-Dec-2015 and a 52 week low of Rs. 30.35 on 14-Sep-2015. Last one week high and low of the scrip stood at Rs. 44.85 and Rs. 40.3 respectively.

The promoters holding in the company stood at 63.16 % while Institutions and Non-Institutions held 0.04 % and 36.8 % respectively.

The stock is currently trading above its 50 DMA.

Gold prices are set for a gradual recovery in 2016? GFMS Gold Survey suggests that

India's Jewellery consumption increased 14% year-on-year to 204 tonnes in the fourth quarter of 2015, the highest since Q3 2008 and the all-time high for fourth quarter demand.

Total gold supply dropped by 7% in the final quarter of 2015, due to an estimated 4% drop in global mine output, the largest quarterly reduction since 2008, and a shift to net de-hedging, compared with a year earlier.  

Thomson Reuters, today published the GFMS Gold Survey: Q4 2015 Review and Outlook.  First published in 1967, the GFMS Gold Survey is the world’s most authoritative source of independent supply and demand data for the gold industry.  
 
Physical gold demand rose 2% year-on-year in the fourth quarter of 2015, as a strong pickup in net official sector purchases and a moderate increase in retail investment were partially offset by losses in the jewellery and industrial sectors. Jewellery fabrication posted a 2% year-on-year drop, largely on the back of disappointing demand in China, although this was partially neutralised by continued growth in India.  
 
Gold prices are set for a gradual recovery in 2016, particularly in the second half, driven largely by improving fundamentals, as we expect to see a rebound in pent-up demand from Asia and a further contraction in global mine production.  
 
In country markets, India retained its top position in global gold consumption for the second year in a row, fuelled by record high jewellery consumption at 703 tonnes.  
 
India: 
 
Jewellery consumption increased 14% year-on-year to 204 tonnes in the fourth quarter of 2015, the highest since Q3 2008 and the all-time high for fourth quarter demand. Meanwhile, retail investment rose by 18% year-on-year to 52 tonnes, the highest since Q4 2013. The lower gold price in rupee terms, as well as festive and wedding-related demand helped to buoy consumption.
 
China: 
 
Jewellery fabrication dropped by 4%, to an estimated 144 tonnes, the lowest fourth quarter offtake since 2010, on the back of disappointing sales during the labour holiday period in October. It is worth pointing out, though, that demand picked up again towards the end of the year, as retailers started to build inventories ahead of the Chinese New Year holiday season. Jewellery consumption declined by 6%, to an estimated 139 tonnes in Q4 2015.
 
In contrast, retail investment surged by 24% year-on-year in the final quarter of 2015, to an estimated 54 tonnes, the highest Q4 demand since 2013. The lower gold price environment and growing concerns about its slowing economy boosted safe-haven demand for gold. Anecdotal evidence suggests that elevated fears about the economy and weakening currency had encouraged China’s older generations to purchase gold bars (especially 200 gramme bars) as gifts to their third generation in celebration of the Chinese New Year or birthdays. The introduction of ‘Year of the Monkey’ gold bars (based on the Chinese zodiac symbol) into the market during the fourth quarter had also stimulated market demand during the period.
 
Supply: 
 
Global mine supply is estimated to have fallen by 4% year-on-year in Q4 2015, representing the largest quarterly decline since 2008. We expect this trend to continue in 2016, due to lower production at more mature operations and a lack of new mines coming on stream. We currently forecast global mine output to shrink in 2016, marking the first annual decline since 2008 and the largest decline in percentage terms since 2004.
 
Supply from scrap was marginally higher in Q4 2015, up by 1% year-on-year, as gains in China and India were largely outweighed by a 17% decline in the United States, the third largest supplier of gold scrap.
 
Market balance:
 
The final quarter of 2015 marked the sixth quarter out of the past seven in which the gold market was in surplus, and tied to this backdrop, allied to the financial environment, it is unsurprising that the bear market continued. That said, a 7% drop in total supply and a modest increase in physical demand saw the market surplus shrink to 41 tonnes in Q4.
 
Investor Sentiment:
 
Investor sentiment remained generally weak in Q4 2015, as markets were impatiently waiting for the final verdict from the US Federal Reserve. At its most recent policy meeting, the Federal Open Market Committee finally announced a quarter-point increase in the target range for the federal funds rate, marking a new chapter for the United States and the global economy. That said, there was a temporary rebound in safe-haven demand for gold at the start of the quarter due to increased concerns about the slowdown in emerging market economies.
 
ETF gold holdings declined by 69 tonnes in the fourth quarter, although we have seen some safe-haven buying so far this year.
 
Price Outlook: 
 
While the gold price is likely to remain under pressure for some time, the prospects look brighter for 2016, particularly in H2. Firstly, slowing Chinese growth and the negative outlook for the yuan should benefit gold in the medium term, and once there are clear signs of a price recovery, or at least, stabilisation we should see investors coming back to the market. Moreover, the market has been arguably pricing in four U.S. rate rises this year. However, given a weak economic recovery, persistently low inflation and highly accommodative stance of monetary policies outside the United States, we are likely to see only two small rises, at most. This should again strengthen market sentiment. We expect a slow recovery in 2016 in dollar terms, with the gold price trading above $1,200/oz towards the end of the year, and averaging $1,164/oz.

Container Corp down 2%; Q3 net profit at Rs. 206.12 crore

The Company posted a net profit of Rs. 2061.20 mn for the quarter ended December 31, 2015 as compared to Rs. 3010.80 mn for the quarter ended December 31, 2014.

Shares of Container Corporation of India Ltd were down 2% at Rs. 1184 after the company posted Q3 results.

The Company posted a net profit of Rs. 2061.20 mn for the quarter ended December 31, 2015 as compared to Rs. 3010.80 mn for the quarter ended December 31, 2014. 

Total Income has decreased from Rs. 15370.10 mn for the quarter ended December 31, 2014 to Rs. 14858.60 mn for the quarter ended December 31, 2015.

The scrip opened at Rs. 1188 and has touched a high and low of Rs. 1188 and Rs. 1175.1 respectively. So far 19434(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 23646.94 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1944 on 01-Jun-2015 and a 52 week low of Rs. 1125 on 19-Jan-2016. Last one week high and low of the scrip stood at Rs. 1241.15 and Rs. 1125 respectively.

The promoters holding in the company stood at 61.79 % while Institutions and Non-Institutions held 35.08 % and 3.12 % respectively.

The stock is currently trading above its 200 DMA.

Persistent Systems surges 3%

Persistent Systems Ltd. is targeting annual revenue of US$1 bn and will focus on acquisitions to achieve the same, reports a financial newspaper.

Persistent Systems Ltd stock was up by 3% at Rs. 625. Persistent Systems Ltd. is targeting annual revenue of US$1 bn and will focus on acquisitions to achieve the same, reports a financial newspaper. 

"Along with our recently-closed acquisition, our run rate (revenue) is around US$361 million a year and we are sticking to the target of US$1 billion, which is natural aspiration for a company of our size," Persistent Chairman and MD Anand Deshpande has been quoted as saying.

In December 2014, the company had said that it would like to achieve the US$1 billion revenue mark in three-to-five years.

The scrip opened at Rs. 600.05 and has touched a high and low of Rs. 627 and Rs. 600.05 respectively. So far 27282(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4864 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 947.5 on 04-Mar-2015 and a 52 week low of Rs. 577 on 29-Jun-2015. Last one week high and low of the scrip stood at Rs. 639 and Rs. 586 respectively.

The promoters holding in the company stood at 38.53 % while Institutions and Non-Institutions held 34.31 % and 22.18 % respectively.

The stock is currently trading above its 200 DMA.

Sun Pharma and Lupin get tentative USFDA nod for schizophrenia drug

The drug is used to treat certain mental disorders such asschizophrenia, depression associated with bipolar disorder.

Sun Pharma and Lupin Ltd have received tentative approval for Lurasidone Hydrochloride by the US Food and Drug Administration (USFDA). The drug is used to treat certain mental disorders such asschizophrenia, depression associated with bipolar disorder. 

Sun Pharmaceuticals Industries Ltd is currently trading at Rs. 817.55, up by Rs. 9.75 or 1.21% from its previous closing of Rs. 807.8 on the BSE. The scrip opened at Rs. 817 and has touched a high and low of Rs. 822.9 and Rs. 815 respectively. So far 944861(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 194410.48 crore.

Lupin Ltd is currently trading at Rs. 1718.25, up by Rs. 19 or 1.12% from its previous closing of Rs. 1699.25 on the BSE. The scrip opened at Rs. 1720 and has touched a high and low of Rs. 1724.75 and Rs. 1708.6 respectively. So far 114619(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 76550.61 crore.

World Bank lowers 2016 forecasts for crude oil prices to $37 per barrel

Oil prices fell by 47 percent in 2015 and are expected to decline, on an annual average, by another 27 percent in 2016.

The World Bank is lowering its 2016 forecast for crude oil prices to $37 per barrel in its latest Commodity Markets Outlook report from $51 per barrel in its October projections.

The lower forecast reflects a number of supply and demand factors. These include sooner-than-anticipated resumption of exports by the Islamic Republic of Iran, greater resilience in U.S. production due to cost cuts and efficiency gains, a mild winter in the Northern Hemisphere, and weak growth prospects in major emerging market economies, according to the World Bank’s latest quarterly report.

Oil prices fell by 47 percent in 2015 and are expected to decline, on an annual average, by another 27 percent in 2016. However, from their current lows, a gradual recovery in oil prices is expected over the course of the year, for several reasons. First, the sharp oil price drop in early 2016 does not appear fully warranted by fundamental drivers of oil demand and supply, and is likely to partly reverse. Second, high-cost oil producers are expected to sustain persistent losses and increasingly make production cuts that are likely to outweigh any additional capacity coming to the market. Third, demand is expected to strengthen somewhat with a modest pickup in global growth.

The anticipated oil price recovery is forecast to be smaller than the rebounds that followed sharp drops in 2008, 1998, and 1986. The price outlook remains subject to considerable downside risks. 

“Low prices for oil and commodities are likely to be with us for some time,” said John Baffes, Senior Economist and lead author of the Commodities Markets Outlook. “While we see some prospect for commodity prices to rise slightly over the next two years, significant downside risks remain.”

Beyond oil markets, all main commodity price indices are expected to fall in 2016 due to persistently large supplies, and in the case of industrial commodities, slowing demand in emerging market economies. In all, prices for 37 of the 46 commodities the World Bank monitors were revised lower for the year.

Emerging market economies have been the main sources of commodity demand growth since 2000. As a result, weakening growth prospects in these economies are weighing on commodity prices. A further slowdown in major emerging markets would reduce trading partner growth and global commodity demand.

“Low commodity prices are a double-edged sword, where consumers in importing countries stand to benefit while producers in net exporting countries suffer,” said Ayhan Kose, Director of the World Bank’s Development Prospects Group. “It takes time for the benefits of lower commodity prices to be transformed into stronger economic growth among importers, but commodity exporters are feeling the pain right away.”

Non-energy prices are expected to slip 3.7 percent in 2016, with metals dropping 10 percent after a 21 percent fall in 2015, due to softer demand in emerging market economies and gains in new capacity. Agriculture prices are projected to decline 1.4 percent, with decreases in almost all main commodities groups, reflecting adequate production prospects despite fears of El Niño disruptions, comfortable levels of stocks, lower energy costs, and plateauing demand for biofuel.

HDFC, Colgate Pamolive, HCL Tech among 25 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Colgate Pamolive: Colgate Pamolive India Ltd, a leading manufacturer of personal care products, will announce its Q3 results today. IIFL expects net profit to rise 26.10% to Rs. 165 crore yoy and 5.2% qoq.  

HCL Technologies: Two former Disney employees have filed separate lawsuits in a US court against Disney, HCL Tech and Cognizant, claiming that the companies replaced American employees with Indian workers, reports a business daily. HCL Technologies announced its acquisition of Point to Point Limited and Point to Point Products Limited (jointly referred as Point to Point or P2P). 

Bharti Infratel: The company will announce its Q3 results today. According to IIFL estimates, the company’s net profit for Q3FY16 is likely be around Rs. 605.5 crore, a rise of 19.5 % on Y-o-Y basis and 4.5 % on Q-o-Q basis.

Bajaj Auto: Bajaj Auto is scheduled to launch a new motorcycle on 1st February that could be a new brand introduction by the Pune-based two-wheeler major, reports a business daily. The new brand could be called 'Bajaj V', according to a recent teaser video.

Reliance Power Ltd: Reliance Power Ltd. has written to the Andhra Pradesh government, seeking to exit the stalled 4,000 MW Ultra Mega Power Project (UMPP) in Krishnapatnam, reports a business daily.

Hinduja Foundries: Hinduja Foundries has announced that the Committee of Board of Directors at their meeting held on January 25, 2016 recommended to the Board of Directors to issue Global Depository Receipts (GDRs) to promoters, promoter group, group company(ies) and any other entity which is a subsidiary, associate of its parent, group companies or any other entity eligible to invest in GDR for an amount upto Rs.400 Crores.

Gujarat Fluorochemicals: The company has announced that Inox Wind Infrastructure Services Limited, a step down Subsidiary of Gujarat Fluorochemicals Limited, has acquired 100% of Equity Shares of Vinirrmaa Energy Generation Private Limited with effect from January 23.

IOC,BPCL,HPCL: Public sector oil firms IOC, BPCL, HPCL and EIL will invest Rs. 1.5 lakh crore in setting India's biggest refinery on the west coast, Oil Minister Dharmendra Pradhan reportedly said.

BEL: The company will announce its Q3 results today. IIFL expects net profit to plunge 7.4% to Rs. 252 crore yoy; however, Q3 net profit is expected to rise 21.7% qoq.

Persistent Systems Ltd: Persistent Systems Ltd. is targeting annual revenue of US$1 billion and will focus on acquisitions to achieve the same, reports a financial newspaper. 

CONCOR: Container Corporation of India Ltd reported standalone net profit of Rs. 206.12 crore for the quarter ended December 31, 2015, registering decline of 31.53% yoy. The company’s standalone total income from operation of Rs. 1404.56 crore, declined by 3.25% yoy

United Spirits: United Spirits will announce its Q3 results today.According to IIFL estimates, the company’s net profit for Q3FY16 is likely be around Rs. 173.9 crore, a rise of 132.9 % on Y-o-Y basis while 81.3 % decline on Q-o-Q basis.

HDFC: Housing Development Finance Corporation Ltd will announce its Q3 results today.IIFL expects net profit to rise 15.4% to Rs.1,746.10 crore yoy and 8.8% qoq. 

Tata Power: Tata Power announced termination of a share purchase agreement (SPA) with Ideal Energy Projects Limited (IEPL) for acquisition of 100% stake in a 270 MW coal based thermal power project in Maharashtra, extendable to 540 MW. 

Kajaria Ceramics: The company will announce its Q3 results today.IIFL expects net profit to rise 63.8% to Rs. 74.70 crore yoy and 27.2% qoq.

RCOM: Reliance Communications has increased capital expenditure outlook by Rs. 1,000 crore to Rs. 4,000 crore for the financial year ending on March 31, according to reports.

Power Grid: Power Grid will announce its Q3 results today.IIFL forecasts the company’s net revenue for Q3 FY16 to rise to Rs. 5,195 crore, growing at a rate of 19.3% yoy and 5.6% qoq. 

Reliance Capital: Reliance Capital Ltd announced that it has acquired more than 5% voting rights in Radiant Hues CRM Solutions.

Kirloskar Oil Engines: Kirloskar Oil Engines, leading auto parts and equipments company, will announce its Q3 results today. According to IIFL estimates, the company’s net profit for Q3FY16 is likely be around Rs. 29.8 crore, a decline of 12.6 % on Y-o-Y basis and 16.6 % on Q-o-Q basis.

HCL Infosystems: The net loss for the quarter stands at Rs. 65.7 crore as against loss of Rs.49.2 crore (YoY). The consolidated net sales stands at Rs. 1146.6 crore as against Rs. 1470.6 crore (YoY).

HT Media: HT Media, leading media and publishing company, will announce its financial results for the quarter ended December 2015 today. HT Media is likely to witness higher ad revenue growth backed by increase in corporate spending due to festive season. According to IIFL estimates, the company’s net profit for Q3FY16 is likely be around Rs. 53.0 crore, a decline of 28.3 % on Y-o-Y basis and 10.4 % rise on Q-o-Q basis.

Nilkamal: Nilkamal, home furniture manufacturer in India, reported standalone net profit of Rs. 20.19 crore for the quarter ended December 31, 2015, registering over two folds jump yoy but decline of 21.56% qoq. The company’s revenue stood at Rs. 428.42 crore, witnessing growth of 1.76% yoy.

Veto Switchgears:The company has bagged additional order worth Rs. 40 crore from dealers conference, Rajasthan.

Subros: Subros, manufacturer of air-conditioner systems and thermal products, reported standalone net profit of Rs. 6.01 crore, registering growth of 55.7% yoy but decline of 2.12% qoq. 

Mcleod Russel India: Mcleod Russel India, world's largest tea planter, reported standalone net profit of Rs. 56.98 crore for the quarter ended December 31,2015, registering decline of 29.15% yoy and 73.67% qoq. 

MRF: The net profit for the quarter stands at Rs. 388 crores.The company's EBITDA Margin at 22.6% as against 19.2% (YoY).

Kansai Nerolac Paints: The company's total income has increased by 8.7% at Rs. 965 crore for the quarter against Rs.887 crore in the corresponding quarter of the previous year.

HDFC Bank: The bank reported standalone net profit of Rs. 3,356.84 crore for the quarter ended December 31, 2015, registering growth of 20.12% yoy. The bank’s Net Interest Margin stood at 4.3% for the quarter.

Eveready Industries: The company recorded a rise of 10.8% in its net profit at Rs. 17 crore for the quarter ended December 31, 2015 as compared to Rs.15.3 crore for the quarter ended December 31, 2014. 

Blue Star Limited: The company has announced the launch of a stylish range of airconditioners comprising a wide array of highly energy-efficient as well as eco-friendly split airconditioners for the residential and commercial segments.

Swaraj Engines: Swaraj Engines, Hi-tech engine components manufacturer, reported standalone net profit of Rs. 8.36  crore for the quarter ended December 31,2015, registering marginal growth of 0.96% yoy. The Company’s standalone revenue stood at Rs. 105.59 crore, witnessing growth of 3.48% yoy.