TVS reported 7.4% yoy growth in net sales, while on qoq basis, it declined by 11.2% to Rs17.33 mn. This was due to a 1% yoy growth on volumes to 5.27 lakh units, which was a decline of 12.7% qoq. Volumes for the company in the months of November and December were on a decline. Softness in two wheeler industry impacted TVS as monthly volumes saw ~5% qoq declines in the last two months. RM to sales as a % of sales came in at 73.4% v/s 75.5% qoq as commodity prices are cooling off.

The price hike taken in Q3 was reflected as net realizations moved up by 1.6% qoq. PAT came in at Rs566 mn which was just 1.4% up yoy while it was down 26% qoq.

Sell MCX Feb Crude Oil at Rs 4790/ 4795, Stop loss at Rs 4815, Target at Rs 4750/4740

Buy MCX March Silver at Rs 56320/ 56370, Stop loss at Rs 56170, Target at Rs 56770

Buy IVRCL Infra at Rs 52-54.4, Stop loss at Rs 50.3, Target at Rs 58.5-65.1

Buy GAIL at Rs 376.70, Stop loss at Rs 374, Target at Rs 383

Buy Kotak Bank at Rs 510.95, Stop loss at Rs 507, Target at Rs 519

Buy Bombay dyeing at Rs 418.65, Stop loss at Rs 415, Target at Rs 427

NSE Code AUTOAXLES

Automotive Axles Limited (AAL) a joint venture of Kalyani Group and Arvin Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation) was established in 1981, AAL has developed an impressive domestic OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur, Mahindra & Mahindra, Volvo and Bharat Earth Movers.

Products manufactured at AAL are based on technology provided by Meritor Inc., USA, through Meritor HVS (India) Ltd, India. With manufacturing facilities located at Mysore, the company is currently one of the largest independent manufacturers of Rear Drive Axle Assemblies in the country and with around 27 years of axle-producing experience and advanced gearing technology from Meritor HVS (India) Ltd, has been manufacturing reliable, long-life heavy duty drive axles

The company’s sales was at Rs.2925.51 million for the quarter ended December 31st 2011 whereas the same was at Rs.1794.64 million for the quarter ended December 31st 2010, representing an increase of 63.01%; helped by the acquisition of brakes business and strong domestic growth.

Operating profit surged up to Rs.371.58 million from the same quarter previous year of Rs.222.30 million; a hike of 67.15% aided by lower raw material expenses. Net profit skyrocketed more than 100% y-o-y to stay at Rs.197.34 million from Rs.97.64 million clocked in a year ago quarter. On the margins front, operating profit margins surged to 12.70% and net profit margins advanced to 6.75%

The P/E ratio (price-to-earning ratio) of a stock is a measure of the price paid for a share relative to the per share income or profit earned by the company. This is one of the important matrix.So, the P/E Ratio is 12.07

Buy Ashok Leyland at Rs 26.9-27.3, Stop loss at Rs 26.8, Target at Rs 27.8-28.8

Buy MCX April Gold at Rs 28480/ 28470, Stop loss at Rs 28420, Targets at Rs 28580/28630

MindTree Ltd. is a global IT and Product Engineering Services Company with deep knowledge in specific domains. MindTree is acknowledged as the best mid-size software services company out of India for its capability to build, test and deploy solutions as much as emphasis on culture, customer centricity and corporate governance.

EBTIDA margin improved by 438 bps QoQ to 17.3% in Q3FY12 against our expectation of increase in margin by 351 bps QoQ. Better than expected EBITDA margin improvement was led by onetime transition revenue from Europe based client, leading to significant improvement in billing rate.

The company reported forex losses of Rs.2.5 crore in Q3FY12 against our projection of forex gain of Rs.1.4 crore. However, lower than estimated tax of 17.4% in Q3FY12 against our expectation of 22% led higher than projected net profit of Rs.60.6 crore in Q3FY12 against our forecast of Rs.56.3 crore.

Volume declined by 0.8% QoQ against our expectation of 3.7% QoQ growth in Q3FY12. The de-grwoth was primarily led by Product Engineering Services PES) segment which declined by 5.4% QoQ to USD34.3 mn in Q3FY12. PES was impacted by lower number of working days and its exit from 9 clients in non focus areas (i.e. (industrial automation and core automotive) impacting revenue by 2.5% QoQ and 2% QoQ, respectively, in Q3FY12.

CMP – Rs.63

BSE Code : 531147

NSE Symbol : ALICON

Q2FY12 & FY11 Results of ALICON CASTALLOY

During FY11, sales on consolidated basis advanced by 65.1% to `346.3 crore but net profit rose by 14.2% to `15.3 crore. OP and NP margin stood at 12.1% and 4.4% against 17.3% and 6.3% respectively in the corresponding period last year. EPS stood at `13.9. A dividend of 20% was paid.

The debt-equity ratio as on FY11 stood at 1.3:1 whereas the value of the gross block, including `13 crore added in H1FY12 works out to `204 crore.

During Q2FY12, sales on consolidated basis advanced 42.7% to `119.4 crore and net profit rose 23% to `4.2 crore. (YoY). OPM and NPM stood at 9.5% and 3.5% compared to 12.9% and 4.0% respectively in Q2FY11.

About ALICON CASTALLOY

Incorporated in 1990 as Enkei Castalloy, ACL is a joint venture between Rai and Associates, India and Enkei Corporation, Japan. ACL’s main site is located at Shikrapur, Pune while the other site is at Gurgaon in North India. During FY10, ECL separated its wheel business (Enkei Wheels) in 1:1 ratio. ACL has set up 100% subsidiary in Austria, which will be used as special purpose vehicle (SPV) for acquisitions. Mfg capacity is 24, 000 tpa in India and Euro 20 Mn in Europe.

ACL is one of the largest integrated aluminium casting manufacturing group in India offering end to end solutions across the entire value chain and delivers best-in-class Gravity & Low Pressure casting experience to its customers at the most optimal costs.

The Punjab-based drug maker reached a settlement with the US drug regulator while setting aside US$500 million to address its potential liability from a separate US Justice Department investigation. The new consent decree with the US Food and Drug Administration (FDA), which is subject to approval by the US District Court in Maryland. comes after the regulator banned the company in 2008 froni importing more than 30 of its generic dms because of violations of manufacturing practices at two plaits, at Dewas in central India and Paonta Sahib in northern India. The FDA also halted review of drug applications from Paonta Sahib in 2009, alleging Ranbaxy had falsified data. The agreement with the FDA would strengthen its procedures on data integrity and comply with current good manufacturing practices. The generic drug maker also said its new US$500 million reserve would cover all potential civil and criminal liability.

The Bengaluru-based power and automation company jumped after the ABB group booked an order worth more than Rs 4000 cs-ore front Power Grid Corporation of India to deliver all ultrahigh-voltage direct current transmission system to supply hydropower from mountainous northeast India to the populous region of Agra in central India, 1.700 kilometers away. ABB in India will book over Rs 500 cl-ore of the total order value for local equipment supplies and will additionally contribute to the project with design and engineering services.