Stocks In Action, October 31, 2012

Mahindra Satyam announced its Q2FY13 results yesterday. Though not impressive, these results were in line with expectations. The company reported a sequential growth in topline by 3 per cent with revenues reaching Rs.1938 crore in Q2FY13 from Rs.1880 crore in Q1FY13. The bottomline of Mahindra Satyam was under tremendous pressure and the company reported a 21 per cent sequential drop in net profit. Mahindra Satyam’s stock prices are expected to see volatility in today’s trading. 

Glenmark Pharmaceuticals announced their Q2FY13 results, posting a sequential increase of 100 per cent in the bottomline with net profit reaching Rs.157 crore in Q2FY13 as compared to Rs.78 crore in Q1FY13. There was strong revenue growth seen from Glenmark’s US subsidiary, EU formulations business, Indian formulations business and generics business, with growth of 44 per cent, 110 per cent, 36 per cent and 45 per cent respectively. Strong numbers are likely to push the stock price of Glenmark upwards today. 

Mindtree yesterday announced that it has partnered with Chennai-based Kryptos Networks to enhance its distribution of VMUnify solutions across Asia. This is a cloud platform solution enabling setup and delivery of infrastructure as a service. With the company’s new strategy and re-branding that focuses on emerging areas like cloud computing for growth, the alliance is in line and would edge operations. The stock price of Mindtree is likely to see an upswing today. 

Competition watchdog Competition Commission of India (CCI) said that it has found no evidence against tyre companies in terms of cartelisation. The body would thus not implement any penalty on any of the players in the sector. Alleged cartelisation charges against 5 major companies, Apollo Tyres, Birla Tyres, Ceat, JK Tyre and MRF, which control 95 per cent of the market were waived with. Stock prices of these companies are likely to see an upward trend today. 

Among major companies to announce their Q2FY13 results today are Atlas Cycle, Bata India, Bharat Forge, Bharat Gears, Claris Lifesciences, Container Corporation of India, GTL Infra, Gujarat Pipavav, JK Sugar, Kalpataru Power, Karur Vysya Bank, LIC Housing Finance, Power Grid Corporation of India, State Bank of Mysore and TVS Motor. These stocks are likely to see volatility today with the directional movement being dependent on the results they announce.