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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4003)	4/5/1999 11:03:00 AM
From: Mohan Marette	Respond to of 12475

THE INSIDER->German Remedies,Nestle India,MRF,Sterlite & Indo-Gulf. The perfect prescription MULTINATIONAL pharma company, German Remedies Limited is planning a clutch of new product launches this year leading to a step up in topline growth as well as profits. The Insider learns that the company is expected to clock growth rates of nearly 20 per cent in the next two years against the industry average of 12 per cent. German Remedies is expected to post an earnings per share of Rs 40 per share in FY2000 making the scrip very attractively priced among the MNC pharma stocks. Insiders also expect price controls to be removed from its top selling brand Deriphillin, leading to a significant upside in earnings. German Remedies is well positioned in the high growth female healthcare and respiratory product segments. It has strong relationships with collaborators who have no direct presence in India and passing of the patents bill is expected to improve its product licensing prospects. Analysts tracking the pharmaceutical sector are recommending a higher rating for the stock in view of its higher profitability, improving cashflows and superior earnings growth. Moving with the times LEADING market players expect tyre giant MRF Limited [http://www.mrftyres.com/], to shed its conservative policy towards bonus issues soon. MRF has an annual turnover exceeding Rs 2000 crore and a net profit of over Rs 100 crore per annum, but it has a paid up capital of only Rs 4.24 crore. The earnings per share (EPS) thus works out to more than Rs 240 per share and the networth of the company as at the end of last financial was over Rs 350 crore. However even with such sound fundamentals the company has never given a bonus to its shareholders. Market insiders now believe that MRF is likely to consider a liberal bonus issue this year. The company has undertaken an aggressive marketing campaign to increase its marketshare. MRF has also reached a 4 year wage settlement with its workers' union to step up a seven days working week. This should add significantly to its productivity in the next few years. Sweet news NESTLE India Limited [http://www.nestle.com/] is all set to report a huge jump in profits for the first quarter of the current year (January - March ‘99). The Insider learns that the company has recorded a net profit growth of over 60 per cent in the first quarter compared to that of the first quarter last year. For the full year, the growth in bottomline is projected at over 40 per cent in the current financial year. Nestle had reported a net of Rs 85 crore last fiscal. The bottomline for FY'99 will be nearly Rs 120 crore, it is estimated. This year the company is also likely to derive major benefits from the settlement of excise dispute over the Kitkat brand which will lead to a major gain in revenue. It has also relaunched Maggi in the old form to regain the lost market share. Nestle has so far missed the re-rating seen in other FMCG stocks like Britannia, Dabur and Cadburys. With the bottomline expected to grow at a record pace this year, Nestle could well be the FMCG stock of the year this fiscal. Looking up THE uptrend in prices of copper is very good news for producers such as Sterlite Industries and Indo Gulf [http://www.indogulf.co.in/index.html]. Prices of copper have risen by over Rs 1000 per tonne. This implies that for producers such as Sterlite who have a capacity of 100,000 tonnes, annualised gains can be huge on this count alone. With international trends for copper prices looking up, the prices at home may rise further giving a further fillip to copper producers in the current year. Sterlite may also gain as it produces value added products from copper thus increasing its margins and competitiveness vis-a-vis others who have to source their copper requirement from outside. (Source:The Economic Times)