Indian Equity Market: Up dated 16th Sept.16:Lower Revenue for Indian I.T. Cos.: facing Volatile Macro Economic Conditions-World over:

16th Sept.2016:-
Post Brexit: Volatile Macroeconomic Conditions in Europe.
Lower Revenue Expected for IT Comapnies: Main Reasons are:-
Main Dependance are on U.S. and U.K.
Decline in consulting Business.
In India Finacle and other BFSI is showing declining trend.
High Foreign Currency Fluctuations,
Large Deals even though finalized, taking more time than expected to take off/Complete. Immenient uncertainty has compelled Clients World over to delay IT Projects & reduce discretionary spendings.
US Federal Reserve keeping its Interest Rate at Record low
Hence earlier recommendation of 15th July 2016 is not continuing.
15th July2016:
Strong Recommendation for Continuing with TCS &Infosis.















TCS rated world's most powerful brand in IT Services: Report

Scoring highly on a wide variety of measures such as familiarity,

loyalty, staff satisfaction and corporate reputation, Tata Consultancy

Services (TCS) emerged as the IT services industry's most powerful brand

with a score of 78.3 points earning it an AA+ rating has been rated as the world's most powerful brand in Information Technology Services by a leading global brand valuation firm, Brand Finance's 2016 annual report evaluated thousands of the world's top brands to determine which are the most powerful and the most valuable. "TCS' customer focus has been central to its recent success, but a

closer look at our data shows strong and improving scores for brand

investment and staff satisfaction too," said David Haigh, CEO, Brand

Finance. "It has emerged as a dominant force in the IT services industry and is the strongest brand in the sector. Its brand power is indisputable,"Haigh said.According to the report, TCS is also the fastest growing brand within its industry over the last 6 years. The company's overall brand value has increased from USD 2.34 billion in 2010 (when the first evaluation of the TCS brand was conducted) to USD 9.4 billion in 2016. The efforts of our 344,000 employees

our best brand ambassadors have helped our brand strength to be rated at

the top of our industry," said N Chandrasekaran, CEO and Managing

Director of TCS.

 

1. Growth from outsourcing becomes harder to generate or the erstwhile levels of growth from outsourcing becomes harder to generate, 
2.  In this volatile Market Choose TCS and HCL Tech are recommended.

* Second-largest software firm Infosys today

 Aikido services, bringing the power of intelligent systems,

automation and software to amplify the skills and imaginations of our people," 

Share Price Rs 1,126.55          

Particulars Period   F.Y.   Rs.Crores   Revenue       Net Profit


Liquid Assets         31.12.15                            31526                          

                             30.09.15                            32099

Quarter ending       31.12.15                                                         US$240 Crore         US$ 52.40 Crores

                             31.12.15                                                          Rs.15902 Crore       Rs.3465 Crores
                                                                                                                      
Quarter Ending      30.09.15                                                         Rs.15635 Crores       Rs.3398 Crores

Quarter ending      31.12.14                                                         Rs.13796Crores        Rs.3250 Crores

Revenue                                                                                                    

Current fiscal constant Currency Revenue guidance upwards to 12.8-13.2 per cent.

B.Analysis of3rd Quarter Results of TCS Mumbai-:

1. Revenue rose just 0.5% sequentially,if exchange rate fluctuations were eliminated, and shrank 0.3% otherwise.
2. The third-quarter performance makes it unlikely that the nation's top software exporter will beat Nasscom's industry growth guidance of 12-14%for fiscal 2016.  TCS
3. IT spending to shrink as much as 5.5% in 2015.volatility, uncertainty and an adverse currency.
4. TCS' revenue for the quarter rose 0.5% sequentially to $4.14 billion in constant currency terms. On the same basis, and after factoring in the impact of the floods, analysts on average had expected about 0.8% growth. In rupee terms, TCS reported sequential revenue growth of 0.7% to Rs 27,364 crore. Profit after tax was flat at $926 million. In rupee terms, the net profit rose 0.9% sequentially to Rs 6,109 crore. Operating margin contracted 0.48 percentage point to 26.6%.
5. Digital, one of the bright spots for the company in the recent past,also slowed.
6. Revenue from India, which contributes about 6% to the total,fell 6.7% sequentially. Revenue from international markets grew 1.1% sequentially.
   North America, which accounts for 53.5% of revenue, grew 1.4% sequentially, but in the UK, a market that contributes about 16%, revenue fell 0.7%. 
7. Most of the UK contraction has been attributed to the continuing weakness in TCS' insurance platform, Diligenta. "still need a quarter before Diligenta bottoms out. Business demand and order inflow remains intact
8. Rival Accenture, which recently reported results for its fiscal first quarter ended November 30, posted double-digital growth in its digitalbusiness. 

C.Wipro quarter ended December 31

In-line with Analyst Expectations.

"A pick-up in large deal closures led by Global Infrastructure Services. 
Customers want to simplify operations, optimize their IT spend while investing in Digital to transform their business & are well-positioned ,"

*Net profit: *

Quarter ended 
December 31, 2015,           December 31, 2014
Rs. 2,234 crore              Rs. 2192crore

Increase of around 2% year-on-year.

*Dividend:*

Interim dividend of Rs.5 per equity share of par value Rs.2/- each

*Outlook for March Quarter - Guidance:*

 IT Services business to be in the range of $ 1,875 million to $1,912 million. 

Expectation for Next Financial Year.

*IT Services Segment: *

1. • IT services segment Profit rose to Rs 2,480 crore ($375 million), while margins stand at 20.2%.
   • IT services segment Non-GAAP constant currency revenue in dollar terms grew 1.4% sequentially and grew 6.3% YoY.  
   • Headcount of 170,664 
   • Added 39 new customers during the quarter.

*Large deals:*

Signed a Definitive agreement to acquire Viteos Group, a BPaaS provider for Alternative Investment Management Industry.

Winning Large Deals globally  Wipro has entered into a multi-year global infrastructure support engagement with one of the largest medical devices companies in the world.

Standardization & Simplification:-  Wipro will standardize and simplify the customer's IT infrastructure across multiple service lines and in over 90 countries.

"Acquisition:-During the quarter, competitive differentiation BY Acquisition of Two high-potential companies - Cellent and Viteos,"

"Business Continuity Plans:-Impact of Chennai floods minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted

 

Indian Equity: Pharma11.10.16: Consolidation/Fresh Entries in Pharma Shares:Piramal Acquisition of-5Anaesthesia&Pain-Mgmt.brands from Janssen Pharma AND IPO-Rs.2000 Crore (US$300Million) from Eris Lifesciences:

________________________________________________
October10,2016:-Front Page News:-
Eris is only( From-2007) 10yrs old, owned by Mr Amit Bakshi: 
Entering in Public Issue Market 
 Private Equity Firm Chrys Capital having 16.25% holding is ready for Multi Bagger exit.
Listing through Offer for Sale Route(OFS) during Next Calender yr 2017:
Financial Indices:Net Proit- 26%
                            EBITDA- 44%
                            ROC-     140%

Very High Stafff Productivity Rs.5Lac per Month(PCPM).

 Products in Chronic Life Style ailments like Diabiteic and High Blood Pressure.
Other Therauptic Segments r Cardilogy,Gasteroenterology,Orthopaedics,Paediatrics.

25 Brands Contributing 92% Revenue.

Recent introduction in Polycystic Ovarian Syndrome(PCOS): Lifestyle disorder in Women of  Reproductive Age.

No Export.

Tough Competition from Lupin, Cadila & Sun Pharma.

_________________________________________________________________________________

• June22,2016:-New FDI policy in Pharma Industry:-

74% FDI allowed for Acquisition, Merger and Amalgamation.

•  The Latest news is that Mr Rakesh Jhujunwala has recommended Pharma Industry as a very good Long Term Investment. Base of Recommendation are as under:-
• Indian pharma supplies 40 per cent of American generics and has 7 per cent of value. If this 40 per cent is to be 50 per cent and we have to go up the value chain, what is going to happen?  Indian costs are very very low, Indian companies are getting size, Indian entrepreneurs have understood the market. Why will this company not grow and the whole market has an absolute lottery.

                                Price           Market Cap 

*Cadila Healthcare: Rs317/-      Rs.32000/- Crores

Problem of warning letter of US business

*Torrent Pharma: Rs.1317/-       Rs22000 Crores

The US plants have clean FDA status and stable India business accounts for half of the profits.

*Ipca Laboratories: Rs.496/-      Rs6300/-Crores

Resolution in US post warning letter?

*GSK Consumer Healthcare: Rs.5815/-        Rs.24400Crores 

*Lupin: Rs.1461/-                                       Rs.65900/-Crores

Generic drugs such as gFortamet and gGlumetza offer strong near-term earnings support,Lack of competition, strong demand for gFortamet. Low regulatory concerns, less exposure to adverse currency movements are key positives.
high opportunities in the US, increased consumption in
India, more opportunities in Japan which will be key drivers to support

growth.

Lupin:-Products like Gulmetza, Gavis Portfolio, and Steep Price hike expected in Fortamet. 

Aurobindo: Rs.727/-                                 Rs.42600Crores
Aurobindo now has a total of 224 ANDA approvals (196 final approvals, including 10 from Aurolife Pharma LLC and 28 tentative approvals) from USFDA.
The promoters holding in the company stood at 53.92 per cent while institutions and others held 34.97 per cent and 11.11 per cent, respectively

Aurobindo Pharma received USFDA’s approval to manufacture and market Loperamide Hydrochloride tablet and Methylprednisolone Sodium Succinate injection used for treating diarrhoea and allergy.

Dr Reddy:- The Product NEXIUM expected to contribute EPS Rs24/- in coming Two Three years.

  Benefiting from its leading position in the bio-similars market is Dr Reddy. In 2007, Dr Reddy the first to launch a bio similar to Roche cancer drug Rituximab (Rituxan), and has four other biosimilars on the market. The company drug characterization strategy and quality measures give Dr Reddy a significant competitive advantage

that reduces the uncertainty of potential outcome differences

Overall Scenario:-

The pharmaceuticals market in India, valued at $ 20 billion in 2015, is set to soar to $ 55 billion by 2020,representing an impressive compound annual growth rate (CAGR) of 22.4 percent, according to the UK-based research and consulting firm Global Data. India’s rapidly growing generics market is the primary driver of the nations pharmaceutical with sales expected to soar by nearly 84 percent to $ 26.1 billion in 2016. Generic drugs, with their low costs and easy accessibility, now dominate India pharmaceutical space, accounting for around 70 percent of the market.

Adam Dion, senior industry analyst, Global Data, said, India supplies 20 percent of global generic medicines in terms of export volume, making the country the largest provider of generic medicines globally. Indeed, Indian pharmaceutical companies are now exporting to countries like Brazil, Mexico, South Africa, Russia and Japan, and,

according to India Ministry of Commerce and Industry, the nation pharmaceutical export segment has more than doubled from $ 7.8 billion in 2008 to $ 16.5 billion in 2014.

Another driver of India’s pharmaceutical sector is the potentially lucrative bio-similar market, which is expected to increase to $40 billion globally by 2020, as biologic treatments are introduced fordiseases such as diabetes, cancer, multiple sclerosis, and rheumatoidarthritis.

in patients, explained Dion.