STOCKS IN ACTION: AUGUST 10, 2012

Pharmaceutical giant Ranbaxy declared its June quarter earnings yesterday. The company has posted loss on a standalone as well as on a consolidated basis due to its forex contracts. The sales growth has been 55 per cent in rupee terms. In North America Ranbaxy it has doubled the sales due to high growth in its base business. The company has also received two U.S. FDA approvals in the quarter. Regulatory activity was also good. We will see high volatility in the shares of Ranbaxy today.

Tata Motors in its June quarter results has reported flat growth in its sales on a standalone basis while the net profit has declined. On a consolidated basis there was a jump of 30 per cent in revenue and a 12 per cent rise in the net profit. The sales in the standalone business were impacted due to lower volumes. We expect the stock to show some negative bias on account of this result.

Tech Mahindra reported its June quarter earnings after the market hours. Beating market expectations, it reported a 22 per cent rise in net profit. This was helped by the strong performance of its unit Mahindra Satyam. We expect the stock to move upwards in today’s session.

The shares of Adani Power may show some gains on account of the news that the company will soon start the construction of three power projects based on coal. The chairman of the company, Gautam Adani, expects the current power crisis in the country to get resolved within a year. He has also told the shareholders that the company will seek higher tariffs on power sourced through its projects.

RIL has cut its KG-D6 gas field reserves by 70 per cent due to unforeseen geological surprises. KG-D6 is the main production gas source of RIL and this news will work as a negative bias. The stock has been rising through this week but may go through a downward swing today.