Stocks In Action: November 9, 2012

State-run ONGC published its Q2 results after the market hours yesterday. The company reported revenues of Rs 19,790 crore. Its net profit was down by 32 per cent to Rs 5,896 crore. The street expected a net profit of Rs 6,000 crore. We expect volatile trades in ONGC shares today.

Sun Pharma yesterday came out with its Q2 results after the market hours. The company has reported 40 per cent jump in its consolidated revenues to Rs 2,657 crore. Its domestic revenues grew by 15 per cent while that in international formulations grew by 21 per cent. The U.S. finished dosages grew by 38 per cent. The EBITDA margins have improved by 300 basis points to 44 per cent. The net profit however fell on account of provision of Rs 584 crore against potential damage in respect of litigation related to the generic of Protonix. On the back of this we expect volatile trades with positive bias in Sun Pharma’s shares today.

Another pharmaceutical major, Ranbaxy also came in with its results yesterday. Its total income increased from Rs 2,132 crore for the quarter ended September 30, 2011 to Rs 2,757 crore for the quarter ended September 30, 2012. The net profit was at Rs 757 crore against loss of Rs 456 crore in the same quarter last fiscal. The base business in the U.S. has continued to grow which is a good sign. We expect some positive movement in its shares today.

Some positive action will also be seen in the shares of Vadilal Industries after it said that the company aims to double its sales to Rs 800 crore in the next three years. Last fiscal its topline was Rs 450 crore. For exports the company will focus on North America, South Africa, Australia and the Middle East. The company also said that huge capex is not required as the existing capacity can take care of the incremental revenues.

Among major companies to announce their Q2FY13 results today are Apollo Hospital, Aurobindo Pharma, BPCL , Coal India, Eicher Motors, Fortis Healthcare, HDIL, HPCL, Indian Oil Corporation, Jindal Steel, Lanco Infra, OMDC, Pantaloon Retail, Power Finance Corporation, SBI, Sun TV Network, Suzlon Energy, Tata Steel and United Spirits. These stocks are likely to see volatility with the directional movement depending on the results they announce.