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Tuesday, 24 July 2018

TOP CORPORATE NEWS- 24 JULY 2018

Corporate News


Cement stocks rally as ACC surprises with strong quarter in turbulent times
Cement stocks have gained 5-13% since the market opening today. Led by ACC’s strong performance reported yesterday, all the stocks are seen to have a strong rally. ACC jumped 12.8% followed by India Cements (9.2%), Sagar Cement (8.7%) and Ambuja (7.9%).
ACC’s 2QCY18 results were significantly ahead of expectations on the back of higher realisations, led by increased sales in the eastern region and higher share of premium products. Company’s realistion was up by ~4% yoy; while volume growth at 7% was broadly in-line with estimates. Against the street expectation of significant decline in EBITDA by 22% on yoy basis, ACC reported mere 1.9% yoy decline. Beat in EBITDA was led by premiumisation and various cost control measures undertaken by the company (reduction in lead distance by 2%, higher home market sales, route optimisation & improvement in energy efficiency and higher usage of industrial waste). Resultantly PAT was up by 1% yoy (25% beat).

Alkem gets EIR at Daman, revise price target to Rs2,320
In line with expectations, Alkem has received establishment inspection report at its Daman facility. The plant had received 13 observations at this facility in March 2019 USFDA inspection with six repeat observations. Most observations were of routine in nature and there was no data integrity issue. The stock had corrected 16-17% post the USFDA observations. Post this event, we had cut the target price on Alkem.
Post the USFDA action, Alkem had sent the detailed corrective and preventive action (CAPA) plan to the regulator within the stipulated timelines.

Maruti Suzuki clocks 20 mn production
Maruti Suzuki India Ltd (MSIL) today announced that it has crossed production of 20 mn vehicles in India at its Gurugram and Manesar facilities. The distinctive feat, achieved first time by a car maker in the country, has been attained in 34 years and 6 months since start of production in December 1983.
Maruti Suzuki had achieved the 1 million production in March 1994, nearly after a decade after start of manufacturing cars. The 5 million milestone was achieved in April 2005, while 10 million was hit in March 2011. In the next seven years, the Company achieved 20 million production milestone.

Cyient to develop system for sustainable operation, management of water for Varanasi
Cyient, a global provider of engineering, manufacturing, geospatial, networks, and operations management services to global industry leaders, announced that it has been selected as a consultant by the Varanasi Nagar Nigam (VNN) to develop the Geographical Information System and Management Information System for the city of Varanasi.
The project is part of the Institutional Development Program, financed by the Japan International Cooperation Agency (JICA), under the Ganga Action Plan-II. The National Mission for Clean Ganga (NMCG) and the Ministry of Water Resources, River Development, and Ganga Rejuvenation are spearheading the project. Its is expected to be completed within 12 months.

Sterlite Tech’s subsidiary completes the acquisition of Metallurgica Bresciana
Fibre optic cable manufacturing company Sterlite Tech’s wholly-owned subsidiary Sterlite Technologies S.p.A. has completed the process of acquiring Metallurgica Bresciana, a European specialized optical cable manufacturer based in Italy. In a BSE filing, Sterlite Tech claimed that the acquisition was completed on July 20, 2018. This entire deal was completed in an all-cash deal for €47mn.
Metallurgica Bresciana, which has operations in Italy and China, designs and manufactures special precision optical fibre cables and specialized copper cables for various communication applications.


Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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