Stock In Action 2nd August 2012

Acrysil, after market hours yesterday, announced that its board of directors would discuss the bonus issue of the equity shares of the company on August 14, 2012. On the back of this news one may see volatility with a positive bias in Acrysil’s shares in today’s trade.

Adani Power announced its results for the June quarter yesterday. The company has made a net loss of Rs 810 crore as against the profit of Rs 181 crore in the same period last year. This was mainly on account of a forex loss of Rs 244 crore which impacted the bottomline of the company. In a press conference after the Q1 results, Adani Power said that the revenue loss was mainly due to the rupee depreciation and also due to non-availability of linkage coal. The plant load factor toned down to 63 per cent in the quarter. The results have disappointed the investors and we may see some pressure in the stock today.

Jaypee Infratech yesterday reported a decline of 11.71 per cent in net profit to Rs 209.94 crore for the quarter ended June 30, 2012 on account of the increase in total expenditure. The company’s total expenditure was Rs 406.81 crore, amounting to about 60 per cent of the total income.  However, the net sales of the company grew by 9.94 per cent to Rs 678.30 crore during the quarter as against Rs 616.97 crore in the April-June period of FY12. The Jaypee Group, which has developed the 165 km long Yamuna Expressway connecting Noida and Agra, had reported net profit of Rs 237.78 crore during the corresponding quarter of the previous fiscal. The Yamuna Expressway is ready for commercial operation. The expenditure incurred on the project up to June 30 aggregated to Rs 12,839 crore. The numbers have disappointed the investing fraternity and therefore we may see some pressure on the stock today.

As per Business Standard, Crisil has published a report stating that the Indian capital goods’ makers are witnessing the highest strain in their working capital requirements over a five-year period, which is weakening their credit risk profile. The pressure on equipment manufacturers and construction firms is primarily due to the deferred capital investment plans by their clients since the last fiscal, it said in a study conducted on 50 capital goods firms. The liquidity of these companies has been affected as a large portion of the working capital needs have been funded either through high-cost short-term debt or through delayed payments to suppliers, the agency said. The report may create negative sentiments for the capital goods’ stocks today.

Tyre maker Ceat yesterday announced its results for the June quarter. The company posted a net profit of Rs 29 crore as against loss of Rs 41.05 crore in the same period last year. Moreover, the revenue for the quarter stood at Rs 1,232 crore as against Rs 1,114 crore in the same period last year. The result has come in line with the market expectation and we believe that there will be some positive momentum in the stock today. 

For today watch out for stocks like Cummins India, Glenmark Pharma, Hotel Leela Venture, Madras Cement, Oracle Fin, Satyam Computers, Tamilnadu Petrochemicals, Shasun Pharma, 3i Infotech, Berger Paints, etc as these companies are going to announce their June quarter numbers.