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

Realty drags markets
Wed, 11 Aug 01:30 pm

Indian indices continue to languish in the red on heavy selling in heavy weights during the last two hours of trade. The auto index is up on account of Tata Motors, while stocks from the realty and pharma sectors are the top losers.

The BSE-Sensex is trading down 76 points while NSE-Nifty is trading 19 points below the dotted line. BSE-Midcap and BSE-Smallcap indices are both trading flat. The rupee is trading at 46.59 to the US dollar.

FMCG companies are trading down led by ITC and Godrej Consumer. As per a leading financial daily, FMCG companies are looking to increase their product prices. While competition had forced the FMCG companies to absorb part of cost increase last year, these companies are now looking to increase prices to protect their margins. Among the leading FMCG companies, Dabur is implementing a price increase of 5% across its product portfolio while Britannia is planning to increase margins by 5-10%. It may be noted that for 1QFY11, Britannia's net profits fell by 30% YoY. Similarly, HUL is also looking to increase prices of some of its products. However, the company has not disclosed details of this. Godrej and Marico are also expected to increase prices as the prices of palm oil and copra are up by 23% and 14% respectively. However, the price increases could be for the medium term only and may be brought down with food inflation softening.

As per a leading financial daily, a good show by Jaguar Land Rover (JLR) had a significant contribution to the strong top line growth for Tata Motors in 1QFY11. It may be noted that the top line for Tata Motors grew by 64% YoY in 1QFY11 while the net profit stood at '20 bn against a loss of '3.3 bn in the corresponding quarter last year. The JLR business reported a net profit of '15.9 bn during the quarter as against a loss of '4.9 bn in 1QFY10. Volumes for JLR grew by 53% to 57,153 units as the brands recovered from the global slowdown. In fact, the CEO for Tata Motors stated that the sales for the two brands could have been much higher. However, owning to shortfall in engines, the demand could not be met. Going forward, the company plans to assemble the Land Rover vehicles in India. This would bring down costs significantly for the company, adding further to the bottom line. The stock is trading higher currently.

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 "Realty drags markets". 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.