Stocks In Action For July 31, 2012

The Competition Commission of India has found Shree Cement guilty of indulging in restrictive trade practices and has imposed a penalty of Rs 397.51 crore. This penalty is 0.5 times the profits made over the years 2009-10 and 2010-11. Just to remind our readers, CCI last month had imposed a whopping Rs 6,307 crore fine on 11 leading cement makers. On the back of this news we expect the price of Shree Cement to show some negative trades.

The country’s top IT firm, Tata Consultancy Services, announced that one of its customers, the Kuwait Clearing Company (KCC), has upgraded from the existing version of TCS BaNCS to a new version with highly scalable architecture for market infrastructure. This has helped KCC to eliminate the registrar services system, thereby minimising operational risks. On the back of this news we expect some volatility in the stock price.

Bharat Electronics has posted net profit of Rs 19 crore in the June quarter compared to Rs 122.80 crore for the quarter ended June 30, 2011. Its total income has decreased from Rs 1,084.99 crore in the corresponding quarter last fiscal to Rs 960.16 crore in the June quarter of the current fiscal. We expect negative trades in the stock.

Angel Broking is bullish on IRB Infra and has put a ‘buy’ call on it with a target price of Rs 166. The recommendation comes on the back of its robust Q1 numbers, higher margins and strong revenue growth. It has a strong order book providing a positive outlook on future revenue flow. IRB also expects the order book to improve despite the current slowdown in the infrastructure sector.