Sunday, November 12, 2006
Hindu Share Market Price Values
Common myths of share market The stock markets' reactions to the changing political scenario continue to hog as much attention as the political developments themselves. The election results were a surprise, the share markets did not countenance a non-NDA Government and the share prices dived as a consequence. Last Friday and into the following week the Sensex dived precipitously to touch 4228 at one stage on Monday. In fact so sharp was the drop in share prices on Monday that the exchange authorities had to intervene and stop trading for a full three hours. Although political uncertainty in the wake of an unexpected election verdict seemed to have drastically altered the sentiment, a proximate cause is attributed to some strong anti-economic reform language of a few Left leaders. By taking a rigid line on privatisation many days before a Congress-led coalition Government (to be supported by them) was even visualised, the Communist party leaders allegedly brought down the share prices in an unprecedented manner. Get More Hindu Share Market Price Values
Reliance stock market Price Values
E&P to contribute 10-15% to RIL`s topline
Reliance Industries, the country`s largest private sector company, expects its exploration and production (E&P) business to contribute to 10-15 per cent to total revenues within next three to four years. Anil Ambani, vice-chairman and managing director of Reliance disclosed this information at a analyst meet held to discuss the company`s second quarter results.
The company expects its E&P efforts to gross around Rs 10,000 crore in revenues within the same period. `The earning before interest depreciation and tax margins would be around 40-50 per cent and the payback period will be around 3-4 years`, said Anil Ambani.
`The capital expenditure would be funded through internal cash accruals and debts` he added. The company has strong cash flow of around Rs 7,500 crore. According to Ambani, this money is sufficient to fund its capex plans related to E&P, retail marketing and infocomm etc. Moreover, the company enjoys a low leverage ratio (Debt Equity Ratio) of 0.59 and high interest coverage ratio of 17.3.
Commenting on the results, Ambani said,`Robust demand for petrochemical products, high capacity utilisation, improved product mix with focus specialised products and lower interest cost led to robust performance`. The company reported improvement in OPM and NPM, which stood at 13.5 per cent (13.2 per cent) and 7 per cent (6 per cent), respectively.`
Earlier in the day, Reliance declared its second quarter results. The company reported a 26 per cent rise in net profit to Rs 1,263 crore for the second quarter ended September 30, 2003, compared to Rs 1,002 crore in the corresponding period last fiscal. The gross turnover has gone up to Rs 18,036 crore from Rs 16,206 crore. For the six months ended September 30, 2003, the company has reported net profit of Rs 2,367 crore, as against Rs 1,920 crore for the corresponding period last year. The gross turnover rose to Rs 35,202 crore from Rs 31,782 crore.
The company has increased its refining capacity to 31 MMTPA from 27 MMTPA and the company plans to increase it to 31 MMTPA by March, 2004. The company expects its refinery margins to remain robust in the balance two quarters.
Talking about the petrochemical cycle, he said, that the industry pundits have forecast upsides in the petrochemical cylce for the year 2005-06 and we are at start of it now.
Today's Share Market Price Values
Today's Share Market Price Values
World in its eyes...
There is a storm brewing for India Inc. The storm is not indicative of the earnings momentum that the corporates have maintained in the September quarter and the need to sustain the same over the next quarter, and the next one. Rather, the storm is indicative of a major revolution brewing within Indian boardrooms, for devising strategies to go global, to challenge the incumbents in their own territories. Be it the Tata Group's thirst to acquire scale, or the Aditya Birla Group's strategy to garner a bigger raw material resource base, India inc. is increasingly taking benefit from the 'flattening' of this world. But do these opportunities come alone minus the challenges. We believe, not really!
The opportunities it gets...
Global business strategy definitely brings along a whole set of opportunities in forms of bigger markets (more customers to sell to), wider geographical coverage (that de-risks businesses from a single region), global resource base, access to best business practices, higher revenues and, of course, better recognition (that in turn leads to more business). Most of the Indian companies that are going global have one of these reasons for doing so. Take for example Tata Steel. Its recent 'successful' bid for Corus, will not only catapult it to the sixth position in the world steel manufacturers' list (from the 56th position). Also, the Indian steel major will now find place in the elite Fortune 500 club, straightaway from nowhere to almost being at the middle of the list. Do these rankings mean mere rankings? Not really, they mean a whole lot more - in terms of a much bigger global recognition and greater access to global monetary and commodity resources. Plus, the bigger size will give Tata Steel increased pricing power in the commoditised steel market. Increased global presence and larger clientele are added benefits!
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