Stocks In Action, November 01, 2012

Force Motors yesterday launched its new 26-seater monocoque oanel van in the mid bus segment in Rajasthan. The company plans to sell 1000 of these vehicles from October 2012 to March 2013 and 4500 units in the next fiscal year, according to Business Standard. This announcement has come in after a series of announcements made in the last few days. These were related to Force developing a high-end multi-purpose vehicle in association with Daimler and investment plans of up to Rs.1000 crore in the next 2-3 years. This investment would be focused around the launch of new models and ramping up production. The stock price of Force Motors is likely to see an upward move today.

TVS Motor Company posted their Q2FY13 results yesterday posting a YoY decline in net profit of 41 per cent and a YoY decline in total income from operations of 15.1 per cent. Sales for this two-wheeler company have been drastically affected lately due to an overall slowdown in the automobile industry due to high inflation, high interest rates and delayed monsoons. With these factors in play, overall sales of TVS declined by 30.71 per cent in Q2FY13 as compared to Q2FY12. This is likely to cause a downward move in the stock price of TVS Motor Company.

The Board of Directors of IDBI Bank approved, a proposal to merge Stock Holding Corporation of India Ltd (SHCIL) with IDBI Bank subject to statutory and shareholder’s approvals as may be required in this regard. The merger of SHCIL with IDBI Bank will be consummated through a non cash Share Swap deal. Leading Merchant Bankers are being appointed for undertaking due diligence and valuation of SHCIL for arriving at the Swap Ratio for the merger. On the back of this news one may see volatility in the share price of IDBI bank in today's trading session.

Zylog Systems touched the 20 per cent lower circuit on the back of heavy volumes and major price depreciation. According to information filed by the company, Zylog has pledged a higher amount of shares as collateral in order to secure loans. At the same time, promoters have been buying a higher stake in the company. The stock has already seen high amounts of volatility in the last couple of days and this trend is likely to continue today as well.

Titan Industries announced their Q2FY13 results yesterday post market hours and had their net profit growing by 21.34 per cent YoY to Rs.180.14 crore in Q2FY13. Revenues during the same period saw a growth of 9 per cent with revenues touching Rs.2276 crore in Q2FY13. All the businesses in the company (watches, jewellery, eyewear and precision engineering) saw good growth. The company also plans to launch new products and new stores in the third quarter. This is likely to push the stock prices of Titan Industries upwards today.

Among companies that are to announce their Q2FY13 results today are Ajmera Realty, Bajaj Steel, BGR Energy, Gillette India, Godrej Properties, Hexaware Technologies, Hindustan Motors, JSW Energy, Jyothy Lab, NDTV, Network18 Media, Sundaram Clayton and TV18 Broadcast. These stocks are likely to see volatility with the directional movement depending on the results they post.