Stocks In Action: November 2, 2012

Hexaware Technologies yesterday said that it was planning to enter a new vertical and is thus looking at prospective acquisitions. The new vertical would be that of manufacturing and the company has initiated the process of acquisition that would provide the company with capability in supply chain management. The company also reported its results for the quarter ending September 30, 2012, registering an increase in revenue by 1.7 per cent sequentially with the net profit declining by 5.6 per cent sequentially. The stock is expected to be in a volatile phase. 

Recently, a tiff between the workers and the management of Apollo Tyres resulted in a strike which has now completed ten days. Not having reached a consensus over the issue of recognition of the new union at the company’s Waghodia plant, this has resulted in a production halt. The workers have now decided to go on a daily fast starting tomorrow, thus making the situation worse. This situation combined with the scheduled result announcement is likely to bring about volatility in the stock. 

Gillette India announced its Q2FY13 results yesterday wherein it has posted a growth of 26.79 per cent in revenues with net sales rising to Rs 334.80 crore in Q2FY13 from Rs 264.06 crore in Q2FY12. The net profit of the company has increased too, marking an improvement in margins by reaching Rs 24.83 crore in Q2FY13 – a growth of 34.72 per cent. As such, the stock price of Gillette India is likely to see volatility with an upward directional bias today. 

L&T yesterday said that it had received new orders worth Rs 1,063 crore across various segments in October 2012, as reported by Business Standard. Of these orders, those worth Rs 323 crore were for the construction of an IT campus in Pune, Rs 371 crore in its water and effluent treatment business, Rs 109 crore in power transmission & distribution and Rs 158 crore from the Rail Vikas Nigam. The stock price of L&T is likely to see an upward movement today. 

Among the companies that are likely to announce their Q2FY13 results today are Apollo Tyres, Berger Paints, Crompton Greaves, Elder Health, Elder Pharmaceuticals, Great Eastern Shipping, Jet Air India, Marico, MCX, MT Educare, Shasun Pharma, SRF, Union Bank and Wipro. The stock prices of these companies are likely to see some volatility in today’s trading session with the directional movement depending on the results they announce.