Industry watchers say the move is positive for the sector and will benefit sugarcane producers

Most sugar stocks opened August 29 session with healthy gains, a day after Union Cabinet approved export subsidy for exporting 60 lakh metric tonne of sugar.

Giving a big relief to the sugar industry, the Cabinet on August 28 gave its nod to a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October. The move is aimed at liquidating surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers.

Industry watchers say the move is positive for the sector and will benefit sugarcane producers.

“The cabinet announcement for export subsidy support for sugar stocks comes as a breather for the stagnant sugar industry. We hope the benefits percolate down to farmers in the form of pending payments. However, much needs to be done to revive the industry," said Ajay Kakra, Leader - food and agriculture, PwC India.

Around 0925 hours, shares of Dharani Sugars & Chemicals (up 9.24 percent), Mawana Sugars (up 4.92 percent), Shree Renuka Sugars (up 4.57 percent) and Sakthi Sugars (up 4.05 percent) were trading with strong gains on BSE.

Shares of Uttam Sugar Mills (up 3.77 percent), Bajaj Hindusthan Sugar(up 3.69 percent), Balrampur Chini (up 3.32 percent), Magadh Sugar (up 3.03 percent), Avadh Sugar (up 3.03 percent), Dhampur Sugar Mills (up 2.14 percent), Dalmia Bharat Sugar (up 2.75 per cent), Dhampur Sugar Mills (up 2.44 percent) and Ugar Sugar Works (up 1.44 percent) also climbed higher.

Equity benchmarks Sensex and Nifty were in the negative territory in the light of weak Asian cues as worries over the US-China trade war and looming recession kept investors away from equities.

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Nestle's revenues have grown 22 percent and net profit increased by 73 percent

Shares of Nestle India, the food and beverages company well-known in the Indian market for its Maggi brand of instant noodles, jumped nearly 23-fold in the last 10 years due to its consistent performance and market share in key products.

Despite a six-month ban on Maggi in 2015 for high monosodium glutamate (MSG) and lead content, Nestle India regained strength and rallied 149 percent from lows of Rs 5,011 per share hit in March 2016.

Over the last two years, from CY2016 to CY2018, Nestle's revenues have grown 22 percent and net profit has jumped 73 percent.

In 2015, Nestle's profit and topline declined 52 percent and 17 percent year-on-year (YoY), respectively following the Maggi ban. Albeit on a low base, the company's profit has grown a whopping 185 percent on a 38 percent rise in revenue from 2015 to 2018. Nestle follows the January-December financial year.

In the recent quarter ended June 2019, its profit and revenue grew around 11 percent each compared to the same period last year while the bottom line and topline growth in the first half of current year was 10 percent each YoY.

"Nestle has delivered 10 straight quarters of volume and mix-led growth on the back of consistent innovation and renovation, though environment continued to be challenging with headwinds in commodity prices and softer demand conditions," Suresh Narayanan, Chairman and Managing Director said.

The consistent performance has helped Nestle India grab a spot on the Nifty 50, the benchmark index of National Stock Exchange, with effect from September 27.

After a stupendous rally and addition into the Nifty 50, the question is whether it still deserves investor attention? Analysts Moneycontrol spoke to are optimistic about the company's growth prospects.

"Going forward, we expect Nestle's revenues to remain buoyant owing to the continued focus on innovating and renovating its brands, new launches in nutrition segment and emphasis on expanding penetration through expansion in the distribution cycle," Vineeta Sharma, Head of Research, Narnolia Financial Advisors said.

The change in product mix and judicious pricing is expected to cushion the declining margin in the wake of higher input prices.

"We continue to maintain a positive view of Nestle. After inclusion in Nifty, liquidity too will drive the stock price as the weight of consumer staples will increase from 8.5 percent to around 10 percent. Our 12-month target for the company is Rs 13,742," she added.

Prashanth Tape, AVP Research at Mehta Equities also said overall outlook remains optimistic on Nestle's growth despite a slowdown across various sectors in the economy.

He feels fast-moving consumer goods (FMCG) companies have emerged as a safe haven for investors and stay a safe bet in slowdown season, with steady and stable growth in revenues and profits.

"With respect to including Nestle into Nifty index we shoulder it as a better low volatility counter which can be considered upon fulfilling the eligibility criteria for inclusion of stocks in Nifty indices as per NSE revision Methodology," he said.

He is positive on Nestle's long-term growth prospects and advises investors to add at current levels for long term portfolio because he believes Nestle would continue to strengthen its presence by increasing market share, expanding distribution reach in the rural and urban areas, premiumizing and launching innovative products, steady capacity addition, and improved product mix.

On the technical front also, Romesh Tiwari, Head of Research, CapitalAim said the stock is moving from strength to strength and with this momentum, it is likely to touch 12,950 levels.

"I will advise traders to continue to hold on this stock with a stop-loss of 11,964 but no new buying at this stage. Investors should wait for the 11,500 level to buy in Nestle for the short term," he added.

Initially, in August, Nestle said it would soon commence construction of its newest, and ninth factory in India, at Sanand, Gujarat

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Berger Paints with a stop loss of Rs 362 and a target of Rs 380 and Petronet LNG with a stop loss of Rs 251 and a target of Rs 275

The market gained for the third consecutive session with the Nifty closing above 11,100 levels on August 27, driven by banking & financials, auto, FMCG and metal stocks. Positive global cues and RBI's decision to transfer Rs 1.76 lakh crore to the government, aided sentiment.

The BSE Sensex climbed 147.15 points to 37,641.27 while the Nifty 50 rose 47.50 points to 11,105.40 and formed a Doji kind of candle on the daily charts, which generally signals indecisiveness among the bulls and bears.

The gains in broader markets were higher than benchmarks as the Nifty Midcap rose 0.74 percent and Smallcap index was up 1.8 percent.

According to the pivot charts, key support level is placed at 11,055.93, followed by 11,006.57. If the index starts moving upward, key resistance levels to watch out for are 11,148.23 and 11,191.17.

Nifty Bank closed at 28,126.15, up 0.63 percent on August 27. The important pivot level, which will act as crucial support for the index, is placed at 27,965.44, followed by 27,804.67. On the upside, key resistance levels are placed at 28,282.34 and 28,438.47.

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Auto stocks have been witnessing traction after the Finance Minister Nirmala Sitharaman announced measures to boost the sector

Most auto stocks were trading with decent gains in morning trade on August 27, keeping their sectoral index in the green

The BSE auto index traded 1.61 percent higher at 16,048.24 around 1010 hours (IST) and looked on course to extend its gaining spree into the third consecutive session.

Among the total 16 components in the index, only one - Cummins India - was in the red at that time.

Ashok Leyland, Tata Motors, Mahindra & Mahindra, Hero MotoCorp and Maruti Suzuki gained significantly.

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Credit Suisse cut FY20/FY21 EPS estimates by 10/14 percent and factored in lower US sales & profits in estimates.

Shares of Cipla fell more than 2 percent intraday on August 26 after global brokerage Credit Suisse maintained neutral call on the stock, but cut-price target by nearly 14 percent.

The research firm slashed price target to Rs 445 from Rs 515 per share earlier saying high competition in generic Voltaren gel could be a key risk in the near term.

The Voltaren is used to treat joint pain in the hands, wrists, elbows, knees and feet.

Credit Suisse cut FY20/FY21 EPS estimates by 10/14 percent and factored in lower US sales & profits in estimates. It also factored in recovery in trade generic from Q3FY20. Any delay is a risk, it said.

India Rx business growth has been below peers, it added.

The stock was quoting at Rs 463.35, down Rs 2.55, or 0.55 percent on the BSE  

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Mitessh Thakkar of  recommends buying Mahindra & Mahindra with a stop loss of Rs 528 and target of Rs 546 and Reliance Industries with a stop loss of Rs 1262 and target of Rs 1300

Indian indices ended on a positive note on August 23 in hopes of a stimulus package from the government. Buying was seen in the metal, auto, pharma, infra and IT, while FMCG stocks remained under pressure.

Sensex was up 228.23 points at 36,701.16, while Nifty was up 88.00 points at 10,829.40. About 1,310 shares advanced, 1,125 shares declined, and 130 shares were unchanged.

IndusInd Bank, ITC, ICICI Bank, Eicher Motors and Kotak Mahindra Bank were among major losers on the Nifty, while gainers were Zee Entertainment, Vedanta, UPL, BPCL and Yes Bank.

According to the pivot charts, key support level is placed at 10,690.17, followed by 10,551.03. If the index starts moving upward, key resistance levels to watch out for are 10,915.47 and 11,001.63.

Nifty Bank closed at 26,958.7, down 684.85 points on August 23. The important pivot level, which will act as crucial support for the index, is placed at 26,610.43, followed by 26,262.16. On the upside, key resistance levels are placed at 27,257.13 and 27,555.57.

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Gangwal said the board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the company's upcoming annual general meeting (AGM) to increase the board size to 10 directors

InterGlobe Aviation promoter Rakesh Gangwal on Friday said the company’s board has approved a new policy on related-party transactions, amid an ongoing feud with co-promoter Rahul Bhatia over governance issues. The company is the parent of the country’s largest airline IndiGo. “While much work lies ahead, including mending some fences and the regulators completing their investigations on the governance issues raised with them, it is gratifying to see progress towards better governance,” Gangwal said in a statement.

Gangwal said the board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the company’s upcoming annual general meeting (AGM) to increase the board size to 10 directors. “In light of this positive and important development, I will be supporting the proposed changes to the Articles,” he said.

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India's Reliance Industries is seeking a liquefied natural gas (LNG) cargo for delivery in October, two industry sources said on Friday

The refiner is seeking the cargo on a delivered ex-ship (DES) basis for delivery over Oct. 5 to 14 into Hazira, one of the sources said.

The tender closed on Thursday and it was not immediately clear if it had been awarded.

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The stock fell 23 percent in three straight sessions to Rs 138.30, the lowest level since January 31, 2017

Shares of real estate major DLF fell 19.4 percent intraday on August 22 to hit its 31-month low on August 22 after getting a notice from the Supreme Court for non-disclosure of key information in Qualified institutional placement (QIP).

The stock fell 23 percent in three straight sessions to Rs 138.30, the lowest level since January 31, 2017. It was quoting at Rs 144, down Rs 27.60, or 16.08 percent on the BSE at 0952 hours.

Petitioner KK Sinha, on whose complain SEBI had earlier barred DLF promoters from markets and imposed a penalty, told SC that DLF failed to mention key cases regarding the violation of the Haryana Land Ceiling Act, 1972, where adverse orders were passed by the Punjab and Haryana High Court, and the matter is pending with the SC, reported BusinessLine.

The report said the court had ordered directed investigation into DLF group companies and its admitted subsidiaries for violation of land ceiling laws and other laws, matters concerning Benami purchases, licensing, stamp duty payment and transfer pricing issues.

But Ashok Tyagi, Wholetime Director of DLF said in an interview to CNBC-TV18, "All material disclosures had been made in the QIP and complaint is about 5-6 acres of land by a co which is not company's arm.".

He further said, "DLF has received the notice from Supreme Court a month ago and SC notice does not ask us for any disclosures. SC has asked DLF & SEBI whether the complainant should be impleaded in the case."

The report said if there is an adverse decision by the apex court then it could impact DLF investors as petition prays that the company be asked to return more than Rs 5,000 crore that it raised via two qualified institutional placements (QIPs), one of which was in 2019.

In addition, DLF patriarch K P Singh has stepped down as whole-time director but will continue to be its non-executive Chairman, the realty firm said on August 19.

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Indian shares fell on Thursday as investors fretted over the chances of a fiscal stimulus and anxiously awaited the U.S. Federal Reserve chairman's speech later this week for clues on future rate cuts

Real estate stocks were among the top losers, with the Nifty real estate index shedding 7.2%, its biggest intra-day dip since late 2016, as DLF Ltd slumped 19.6%.

A report in the Hindu BusinessLine newspaper said https://www.thehindubusinessline.com/companies/supreme-court-issues-notice-to-dlf-sebi-on-non-disclosure-of-key-information-in-qip/article29204691.ece the Supreme Court had issued a notice to the real estate developer for allegedly suppressing material information from shareholders.

The broader NSE Nifty was down 0.42% at 10,873.00 as of 0445 GMT, while the benchmark BSE Sensex was lower by 0.34% at 36,933.80.

The minutes of the Fed's July meeting showed policymakers deeply divided over rate cuts, while hopes for a fiscal stimulus dimmed as President Donald Trump said he was not looking at cutting payroll taxes.

Much now depends on how dovish Fed Chair Jerome Powell chooses to be in his speech on Friday.

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.35%. [MKTS/GLOB]

Meanwhile, markets awaited news on an economic stimulus from the Indian government amid a bruising slowdown that has hammered industries including the crucial automotive sector, leading to production cuts and job losses.

"The disappointment factor is increasing day by day because we've not heard anything from the government," said Rusmik Oza, head of fundamental research at Kotak Securities in Mumbai. "Earnings have also been a big disappointment."

June-quarter net profits for India Inc grew at a moderate pace of 6.6% year-over-year, compared with 24.6% a year earlier, CARE Ratings said on Wednesday, based on an analysis of 2,976 companies.

The Nifty metals index fell 2.13%, with miner Vedanta Ltd declining 3.9%.

The Nifty FMCG index, which tracks manufacturers of fast-moving consumer goods, was the lone gainer with a rise of 1.17%.

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Vietnamese carrier Vietjet, popularly called 'bikini airline', would operate direct flights from Ho Chi Minh City (commonly known as Saigon) and Hanoi to New Delhi starting from December 6 with thousands of "super-saving tickets".

"The Ho Chi Minh City-New Delhi route will operate four return flights per week on every Monday, Wednesday, Friday and Sunday starting from December 6, 2019," the airline said in a statement.

The Hanoi-New Delhi route will operate three return flights per week.

Vietjet currently operates around 400 flights daily on 129 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, South Korea, Taiwan, mainland China, Thailand, Myanmar, Malaysia and Cambodia.

The air traffic between India and Vietnam has been growing over the last few years. As per consultancy firm Centre for Asia Pacific Aviation (CAPA), Hanoi-Delhi was the third-largest Vietnam-India city pair, accounting for almost 12 per cent of Vietnam-India bookings in 2018.

Rajan Mehra, CEO of Club One Air and former India head of Qatar Airways, said that both leisure and business traffic on the India-Vietnam sector has been witnessing significant growth.

"A lot of corporates are going to Vietnam to set up businesses there. The tourist traffic has also been growing. It's a mix of both," he said.

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Prakash Gaba of prakashgaba.com recommends buying Asian Paints with the target at Rs 1620 and stop loss at Rs 1580 and Nestle India with a target at Rs 13000 and stop loss at Rs 12250

The BSE Sensex plunged 267.64 points to 37,060.37 while the Nifty 50 lost 98.30 points to close below 11,000 levels, at 10,918.70, forming a bearish candle on the daily charts.

Experts feel the bearish bias may continue in coming session also if the index breaks its August lows.

Among sectors, Nifty Metal fell most with loss of nearly 3 percent followed by Bank and FMCG which declined nearly a percent each. The correction in broader markets was quite high compared to benchmarks as the Nifty Midcap index fell 1.6 percent and Smallcap index lost 1.9 percent.

According to the pivot charts, key support level is placed at 10,872.2, followed by 10,825.7. If the index starts moving upward, key resistance levels to watch out for are 10,999.7 and 11,080.7.

Nifty Bank closed at 27,719.05, down 263.40 points on August 21. The important pivot level, which will act as crucial support for the index, is placed at 27,557.24, followed by 27,395.37. On the upside, key resistance levels are placed at 27,989.94 and 28,260.77.

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Coffee Day Enterprises (CDE) owns Café Coffee Day, India's largest cafe chain that operates 1,750 outlets across the country

Shares of Coffee Day Enterprises gained on August 19, the first time in 17 trading sessions, after a media report said that the promoters were likely to resume talks with Coca-Cola for a stake sale in Cafe Coffee Day chain to cut the debt.

In fact, the stock traded high for the first time after the shock death of founder VG Siddhartha, whose body was found on the banks of the Netravati river in Karnataka on July 31, two days after the 60-year-old businessman had gone missing.

The stock was locked in 5 percent upper circuit at Rs 66.05 on the BSE. It was in lower circuit for previous consecutive 12 trading sessions after July 29 and lost 68.5 percent in the previous 16 sessions.

"The promoters of the Coffee Day Group plan to restart talks with Coca-Cola for selling a chunk of their stake in the Café Coffee Day (CCD) chain in a bid to cut the group's debt further," The Economic Times reported on August 19.

Siddhartha had begun talks with the beverage giant, seeking a valuation of Rs 8,000-10,000 crore for the company in June but was reluctant to sell a majority stake, the report said.

Coffee Day Enterprises (CDE) owns Café Coffee Day, India's largest cafe chain that operates 1,750 outlets across the country.

The deal will help Coca-Cola get a foothold in the cafe space as it tries to expand beyond its core carbonated drinks portfolio.

The move will help Coffee Day Group reduce debt obligations significantly. The company's debt as on July 31 was Rs 4,970 crore, with the debt incurred by its logistics arm, Sical, accounting for about Rs 1,488 crore.

The group recently sold Global Village Tech Park, under it is real estate arm Tanglin, in Bengaluru to Blackstone Group for about Rs 2,600-3,000 crore.

The total debt position of Coffee Day Group will reduce by Rs 2,400 crore after the payment for the deal is received.

The debt position of the Coffee Day Group (excluding Sical and Magnasoft) post repayment of debt out of proceeds from the sale of Global Village will be Rs 1,000 crore in the next 45 days.

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The share touched its 52-week high Rs 404 and 52-week low Rs 79.50 on 20 August 2018 and 05 August 2019, respectively

Shares of Yes Bank fell nearly 3 percent intraday on August 9 after the private lender announced the opening of qualified institutional placement (QIP) at a floor price of Rs 87.90 per equity share with a proposed discount of not more than 5 percent.

Yes bank is planning to raise about Rs 2,000 crore ($ 285 million) via QIP.

JM Financial, Motilal Oswal and CLSA are managers to the sale.

The announcement was made after market hours on 8 August 2019.

Yes Bank was quoting at Rs 87.60, down Rs 1.55, or 1.74 percent on the BSE.

The share touched its 52-week high of Rs 404 and its 52-week low of Rs 79.50 on 20 August 2018 and 5 August 2019, respectively.

Currently, it is trading 78.24 percent below its 52-week high and 10.57 percent above its 52-week low.

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Seltos, the first car manufactured for India by South Korean auto major Kia Motors, rolled out of its plant in Andhra Pradesh's Anantapur district on Thursday

The world's eighth-largest automaker rolled out the production version of the sports utility vehicle (SUV), which will be launched on August 22.

The company announced the commencement of mass production of Seltos after testing the vehicle over 20 lakh km in different climatic conditions and some of the most challenging terrains in India.

The first Kia Seltos was rolled off the assembly line by South Korea's ambassador to India, Shin Bong-Kil, and Managing Director and Chief Executive Officer (CEO) at Kia Motors India, Kookhyun Shim.

"The roll-out of the first Seltos is an emotional moment for all of us, especially for the people at the plant as we worked together relentlessly to build the future of Kia Motors in India. The invaluable contribution made by the government of Andhra Pradesh has enabled us to achieve our target of manufacturing the Seltos in record time. The first Seltos is the symbol of our promise and commitment to the Indian market," said Kookhyun Shim.

"The Seltos will be BS-VI compliant right from its launch. It will be available in a highly efficient, brand new smart stream engine that will come in three variants: 1.5 Petrol, 1.5 Diesel and first in segment 1.4 Turbo Petrol, offering the perfect balance of performance and efficiency," the company said.

The Seltos will be launched on August 22 and bookings are being accepted across all Kia dealerships along with the Kia official website.

Since the commencement of pre-booking on July 16, Kia Seltos has already gathered 23,311 bookings.

The Seltos is available for test drives across all Kia dealerships. 

Kia's manufacturing facility in Anantapur is spread over 536 acres and has an annual capacity of 300,000 vehicles. The plant will also be capable of producing hybrid and electric vehicles.

The plant in Anantapur is equipped with the most advanced global technologies such as robotics and artificial intelligence and is remarkably environment-friendly with capabilities like 100 per cent water recycling within the plant, the company said.

The plant also houses a five-acre training facility offering the basic technical course (BTC) in automobiles for skill development to provide all skills necessary for an entry-level job on the factory floor.

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The Sensex was up 636.86 points at 37,327.36, and the Nifty was up 177 points at 11,032.50

After remained volatile in the first half on August 8, the bulls took the charge in the second half and help Nifty to close above 11,000 after media reports suggested that the government is likely to roll-back recently impose a higher tax on foreign portfolio investors (FPIs).

At close, the Sensex was up 636.86 points at 37,327.36, and the Nifty was up 177 points at 11,032.50. About 1379 shares have advanced, 1020 shares declined, and 149 shares are unchanged. 

HCL Technologies, Tata Motors, JSW Steel, Reliance Industries and M&M were among major gainers on the indices, while losers were Tata Steel, Cipla, UltraTech Cement, Indiabulls Housing and IndusInd Bank.

All the sectoral indices ended higher led by the IT, auto, bank energy, FMCG, metal, pharma and infra.

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India VIX is down 1.97 percent and is trading at 16.41

Indian benchmark indices are trading on a positive note with Nifty up 39 points to 10,894 while the Sensex jumped 131 points to 36,822.

Nifty PSU Bank along with the realty index has added over a percent each. The top performers from the PSU banking space are Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank and State Bank of India.

The top gainers from the real estate space are Indiabulls Real Estate, DLF, Sobha and Sunteck Realty.

Nifty Auto added half a percent led by Tata Motors, which jumped 2 percent followed by Hero MotoCorp, Maruti Suzuki, Bosch and Ashok Leyland. However, Motherson Sumi Systems is down over 5 percent.

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The results did not meet analyst estimates. An analysts’ poll of Reuters estimated the net profit at Rs 492.9 crore and revenues at Rs.4461.6 crore

Shares of Cipla fell 3 percent intraday on August 8, a day after the pharma major reported muted numbers for the June quarter as revenues declined in India and South Africa, which account for nearly half of the company's sales.

The company’s net profit grew 0.4 percent at Rs 447.2 crore in Q1FY20 against Rs 445.6 crore in the year-ago period.

Revenue declined 1 percent to Rs 4,067.39 crore in Q1, compared to Rs 4,109.10 in June 2018.

The results did not meet analyst estimates. An analysts’ poll of Reuters estimated the net profit at Rs 492.9 crore and revenues at Rs 4461.6 crore.

The Indian business, which accounts for one-third of Cipla's sales, declined 12.2 percent year on year (YoY) to Rs 1,355 crore due to the realignment of distributors in the trade generics, a company report has said.

Revenues from South Africa, Sub-Saharan Africa and Global Access (SAGA) declined 17 percent YoY to Rs 691 crore on the softness of tender business. However, sales from the private market in South Africa continued to grow.

Post Q1 results, the global brokerage firm CLSA downgraded the stock from Outperform to Sell on dismal Indian sales, slashing the target price to Rs 460 from Rs 600.

CLSA also cut EPS (earning per share) estimates over FY20-22 by 9-14 percent, citing the absence of a near-term catalyst.

"No big launches in the US in the near-term should keep growth outlook muted," the brokerage said.

Financial services company Citi also cut the target price to Rs 580 from Rs 600, maintaining a neutral call on India's fourth-largest drugmaker.

According to Citi, the company has beaten expectations on EBITDA and net income.

"Moving parts make it difficult to gauge the underlying strength of numbers. The company believes trade generics could take one more quarter to normalise. Other businesses should be back to normal from Q2," said Citi.

The brokerage revised FY20-21 EPS estimates by 4-5 percent, citing uncertainty over the pace of recovery in the trade generics business.

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Revenue of the company rose 4.1 percent to Rs 3,198.4 crore versus Rs 3,073 crore

Shares of Siemens added 5 percent in the early trade on August 8 as the company posted better numbers for the quarter ended June 2019.

The company's Q3FY20 profit jumped 21.4 percent to Rs 248.1 crore versus Rs 204.4 crore in the same quarter last fiscal.

Revenue of the company rose 4.1 percent to Rs 3,198.4 crore versus Rs 3,073 crore.

The company's new orders stood at Rs 3,023, registering a 6.4 percent increase over the same quarter last year. 

Sunil Mathur, Managing Director and Chief Executive Officer, Siemens said, “We have delivered very solid results in the third quarter although we see a slowdown in capex related ordering by our customers, both public and private, and across our market verticals."

"Liquidity is becoming a concern in the industry, with payments being delayed and inventory offtake slowing down. In this scenario, our focus continues on driving our short term and digitalization businesses with a clear focus on profitable growth and working capital management,” he added.

Siemens was quoting at Rs 1,154.25, up to Rs 53.50, or 4.86 percent on the BSE.

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Lupin Ltd got the much-needed stimulus from the domestic market for its June quarter profitability. Shares of the company perked up 4% on Wednesday, as investors seemed relieved with the largely in-line performance

The company’s revenues for the first quarter were up 15.4% year-on-year, but little changed compared to the March quarter. Sales growth in the domestic market stood at 9.6% year-on-year. This market is gaining stature and now accounts for about 30% of global sales. On a sequential basis, revenues have increased by 24%, which is commendable. The same, however, cannot be said for its US sales, which accounts for about 35% of its global revenues. North American sales dipped by 11.4% quarter-on-quarter due to lower sales of key drugs and rising competition.

Thankfully, cost-control measures backed up domestic performance. Material and other costs were lower than the year-ago period. Needless to say, this bolstered its operating performance. As a result, Ebitda (earnings before interest, tax, depreciation and amortization) margins came in at 19.47%, as against 13.67% in the year-ago period. Analysts said this was along expected lines. However, the measure was lower on a sequential basis due to its poor performance in the US market. As such, Ebitda margins were 33 basis points lower compared to Q4 FY19.

Lupin still faces tough competition overseas. Of late, some of its new product launches, such as Solosec, have been gaining traction in the US. A positive is that it launched five products in the US market during the quarter. Besides, it has about 175 products in the US generics market. Nevertheless, growth in most of its overseas markets has been slower this quarter compared to Q4 FY19, and that does not bode well.

Besides, there are several overhangs on the Lupin stock. Pending US regulatory issues will continue to weigh as delays in resolving these issues are impacting sales and profitability. Another key development to watch out for is the number of new approvals it can get in the US market.

That apart, the Lupin stock appears expensive at a price-earnings multiple of about 25.4 times FY20 earnings estimates. A pickup in the US and overseas markets holds key to a long-term revival.

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