Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Capital goods stocks lead opening gains
Fri, 20 May 09:30 am

Most Asian stock markets have opened on a mixed note. Stock markets in South Korea (up 0.4%), Japan (up 0.3%) and Indonesia (up 0.1%) are trading firm whereas China (down 0.1%) and Hong Kong (down 0.1%) are trading in the red. The Indian stock markets have opened the day on a firm note. Stocks in the capital goods and auto space are leading the gains. However, IT and realty are trading marginally in the red.

The BSE-Sensex is trading higher by around 90 points (0.5%), while the NSE-Nifty is up by around 27 points (0.5%). Midcap and small cap stocks are trading in the positive as well, with the BSE Midcap and the BSE Small cap indices up by about 0.3% and 0.2% respectively. The rupee is trading at 44.95 to the US dollar.

Auto stocks have opened the day on a firm note. Ashok Leyland is currently leading the pack of gainers. Commercial vehicles manufacturer, Ashok Leyland announced its fourth quarter results of financial year 2010-2011 (4QFY11) and year ended March 2011. For the full year, revenues and profits rise by 54% and 49% YoY respectively. During the quarter, the company has reported a 30% YoY increase in revenues, while profits grew by 34% YoY. Operating margins improved marginally despite higher input costs on account of lower staff costs and other expenditure. Increase in operating profit coupled with higher other income led to the 34% YoY growth in net profits. The company rewarded a dividend of Rs 2 per share (dividend yield of 4%) to its shareholders.

Power stocks have opened the day on a firm note with Tata Power, Reliance Power and Suzlon trading firm. Tata Power has announced its results for financial year ended March 2011. During FY11, the company's standalone revenues declined by 4.3% YoY mainly on the back of lower sales of the power business. The company's operating margins dropped from 24% in FY10 to 18.6% in FY11 due to higher cost of power purchased. At the bottomline level, the company's net profits registered a flat growth of 0.4% YoY due to the poor operating performance. However, a substantial rise in other income and lower effective tax rate caused net profit margins to improve marginally from 13.6% in FY10 to 14.3% in FY11. The company's board has recommended a dividend of Rs 12.5 (125%) per share for the financial year 2010-11. It has also approved subdivision of the company's equity shares of Rs 10 each into equity shares of Rs 1 each.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Capital goods stocks lead opening gains". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.