Stocks In Action: November 6, 2012

The shares of Tech Mahindra may see some price appreciation after it reported its September quarter earnings yesterday post the market hours. On a standalone basis the revenues grew by 19 per cent to Rs 1,508 crore against Rs 1,267 crore in the September quarter last fiscal. The net profit grew by 47 per cent to Rs 160 crore as against Rs 109 crore reported in the corresponding quarter last fiscal. On a consolidated basis the company beat the forecasted net profit of Rs 250 crore by positive actual net profit of Rs 396 crore. One may therefore see a good show on the bourses today.

Jubilant Life Sciences also reported its earnings after the market hours yesterday. Its income from operations rose by 16 per cent to Rs 1,225 crore. The net profit grew by 92 per cent to Rs 152 crore. The company also reported unrealised mark to market gain of Rs 55.8 crore on account of currency movement which helped the company to post net profit growth. However, the EBITDA margins declined on a sequential and YOY basis. Since this result came in after the market hours, one may see some price appreciation in today’s session.

Pharmaceutical major Cipla also announced its results yesterday after the market hours. Its revenues grew by nearly 24 per cent to Rs 2,220 crore. The net profit growth was an impressive 61 per cent to Rs 500 crore. Its domestic business grew by 13.5 per cent while exports grew by 33.1 per cent. The operating margins are at 57.7 per cent compared to half yearly margins of 54 per cent. We expect some price appreciation today.

The shares of Reliance Power may show some volatility on the back of a 2.1 per cent jump in its net profit of Rs 240 crore for the second quarter ended September 30, 2012. Its consolidated net sales grew up by 121 per cent to Rs 1,079.2 crore. The EBITDA also expanded by 227 per cent to Rs 393 crore in the quarter under review.

Hindustan Copper may show some negative trades since the company has posted a decline in its net profit. Its topline witnessed 5 per cent growth to Rs 283 crore while its net profit declined by 6 per cent to Rs 43.7 crore.