Stock In Action - 25th October 2012

Shares of Lupin may show high volatility after it reported its quarterly earnings on Tuesday. Company reported 12% rise in the net profit to Rs 290 crore. Total income grew by 29% to Rs 2239 crore. The stock on Tuesday fell as its EBITDA declined marginally. The net profit reported by the company was above the market expectations hence one may see some strength in the share price today.

Shares of Hero Motocorp also remain under pressure after company reporting decline in its earnings. The company in its quarterly earnings reported after the market hours on Tuesday reported 27% decline in the net profit to Rs 440 crore. Net income was down 11% to Rs 5,187 crore. Sales volumes were also down 13.67% due to the subdued domestic two wheeler market. On the back of this we expect the stock to show negative trades in today’s market.

Shares of Yes Bank may also show good gains today after it reported its Q2FY13 results in line with street expectations. It reported a YoY net profit growth of 30 per cent, Its Net Interest Income increased by 37 per cent to Rs.530 crore. Its gross NPAs stood at 0.24 per cent against 0.28 per cent in the corresponding quarter last fiscal. Current and Savings Account deposits also grew by 86.7 per cent on YoY basis and the Net Interest Margins widened by 10 basis points sequentially. On the back of this we expect positive movement in the stock which is already trading near its 52 week high of Rs 406.

Shares of Andhra Pradesh Paper Company may show gains today after the company reported profit in for the September quarter. For the corresponding period last fiscal company had reported loss at the operating level. The result is far better as company had reported loss for the last quarter as well as last fiscal. In the September quarter Results Company has turned profitable at the operating level which may be seen as a positive signal by the investors.

According to economic times, Syndicate Bank has raised $ 500 million (about Rs 2,600 crore) through bonds to fund its overseas business growth. According to reports, bond with maturity period of 5.5 years carries a coupon rate of 4.125 per cent per annum payable semi-annually in arrears.  The money raised would be utilised for expanding operation of the bank's London branch functioning since 1976. On the back of this news one may see volatility in the share price of Syndicate bank in today’ s trading session.

According to business standard, Tata Coffee, the Bangalore-based publicly-held coffee bean supplier, is set to storm into the closely-knit roasteries group of Starbucks. Starbucks has just six roasteries (five in the United States and one in Amsterdam) which supply to a massive network of 17,000 Starbucks cafes across the world, and the roastery set up by Tata Coffee, at Coorg in the pristine Western Ghats in Karnataka, will be the next to that group. On the back of this news one may see volatility in the share price of Tata Coffee in today’s trading session.

According to business standard, After months of intense stand-off, the Oil Ministry has given nod to Reliance Industries' plans to raise natural gas output from the flagging KG-D6 basin and agreed that CAG cannot do a performance audit of the company. The Ministry yesterday sent a letter to RIL stating that "all the government nominees" on the KG-D6 block oversight committee have "already approved" all the development proposals made by RIL. On the back of this news one may see volatility with a positive bias in the share price of RIL in today’s trading session.