Here is a list of Government owned companies that are likely candidates for Disinvestment. The Government holding in most companies is over 90% and if the 75% rule is brought into force Government will divest in most companies in the next 2 years upto 75% and then later reduce it to 51%. The following chart shows the details.
(more…)
Author: CP
Sell Reliance Industries – Increaed Risk – UBS
UBS Investment Research in a note on Reliance Industries Ltd has recommended a SELL as they see increased business and regulatory risks.
The government has now allowed tax holiday under section 80-IB(9) of the IT Act to be extended to natural gas only for NELP VIII. The value of RIL’s E&P segment accrues from blocks from NELP I-VII. If we were to assume no tax benefits on gas production, UBS estimates for RIL’s EPS in FY10 would be lower by 12% at Rs104 and price target (more…)
Mahindra Holidays – Basis of Allotment
We have received the final Basis of Allotment for Mahindra Holidays and Resorts IPO just a while ago from the Merchant Bankers which was finalized in consultation with SEBI.
All applications for Rs 100,000 [1 Lakh] have received firm allotment of 102 shares. The following data sheet shows the basis of allotment for all categories of retail investors. (more…)
No Recovery in Metals Yet – Analysts
Consensus estimates for Q1 results by Analysts on the street expect Metals to lead sharp earnings drop in SENSEX companies.
EPS for Sensex companies is set to decline for the 3rd consecutive quarter with forecast net profit expected to drop by 18.3%. Sales and EBITDA also decline for consecutive quarters. 10 of the 30 companies in the Sensex are expected to show drop in profits. (more…)
Sun Pharma up on getting USFDA approval for Bicalutamide tablets
Sun Pharmaceutical Industries has announced that United States Food & Drug Administration (USFDA) has granted its subsidiary an approval for an abbreviated new drug application (ANDA) for generic Casodex, Bicalutamide tablets.
These tablets are an androgen receptor inhibitor indicated for use in combination therapy with a luteinizing hormone-releasing hormone (LHRH) analog for the treatment of Stage D2 metastatic carcinoma of the prostate. Bicalutamide tablets are generic version of Casodex tablets from AstraZeneca, having annual sales of approximately $314 million in the US market.
Recently, the company received a tentative nod from the US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for the generic version of Optivar, azelastine ophthalmic solution 0.05%. The approval will enable the Indian pharma major to market the drug in the US market.
The sterile azelastine ophthalmic solution is the generic version of Optivar Ophthalmic Solution manufactured by Medpointe Pharmaceuticals, which has annual sales of around $48 million in the US market.
The drug is recommended for the treatment of the itching of the eyes associated with allergic conjunctivitis.
Last month, the USFDA seized drug products manufactured by Caraco Pharmaceutical Laboratories (Caraco) – the US subsidiary of Sun Pharma – at the company’s Michigan facilities in Detroit, Farmington Hills, and Wixom.
According to the FDA, Caraco repeatedly failed to meet current Good Manufacturing Practice (cGMP) requirements, which guarantee the quality of manufactured drugs. Following this action, the company has been asked to instantaneously stop from further distributing drugs until there is assurance that the firm complies with good manufacturing requirements.
GAIL – Tax Incentive for Pipeline Projects
We attempt to analyse the impact to GAIL’s DCF of the tax incentives provided in yesterday’s Union Budget for gas pipelines (Section 35AD – almost entire investment on gas pipelines to be made tax deductible).
As per our analysis DCF value could increase by ~Rs20/share (from Rs339 currently) due to the tax benefits accruing as the cash tax payable declines (more…)