Top 10 performers of Indian equities market

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Four of the top-10 performers in Indian equities market since January are pharmaceutical stocks. Ranbaxy, Sun Pharma, Glenmark and Cipla have managed to stay put even in extreme bearish sessions.

Says Angel Broking vice-president research and pharmaceutical analyst Sarabjit Kour Nangra: "For three years, pharma stocks have been underperforming overall market on concerns of severe margin pressure. The view, however, has undergone a slight change over the past few months. Performance of pharma companies have been good enough, though not really reflecting on the stock price. Going ahead, the sector will continue to perform reasonably well in the coming quarters. There is great value in some mid -cap pharma stocks," Ms Nangra added.

WHAT ANALYSTS HAVE TO SAY ABOUT THE 'TOP TENNERS'........


Ranbaxy Lab

% CHANGE: +26.50
Average Daily volume from January 1, 2008: 695676

The stock is expected to remain steady because of the impending open offer by Dalichi Sankyo. Market watchers feel there could be decent if not lavish money to be made from the open offer.

Most analysts are recommending investors to tender their shares at the open offer.

Sun Pharma

% CHANGE: +9.91
Average Daily volume from January 1, 2008: 55235

The company is currently engaged in a legal battle with Israeli firm Taro Pharmaceuticals, and most analysts feel that Sun could emerge the victor.

However, they also caution that the stock is fairly valued, and is unlikely to rise much in the near future.


Nestle India

% CHANGE: +8.78
Average Daily volume from January 1, 2008: 29662

In times of high agri-inflation, analysts feel it is a good time to invest in food processing companies.

High raw-material prices notwithstanding, analysts expect Nestle' earnings growth to accelerate on the back of increased pricing power and strong underlying volume growth.

Satyam Comp

% CHANGE: +8.65
Average Daily volume from January 1, 2008: 674169

Satyam Computer is expected to report good quarterly numbers since te has not raised wages during the first quarter.

The company, which had earlier projected a conservative outlook for the year, is expected to log decent numbers, thanks to a weakening rupee.

Infosys Tech

% CHANGE: +2.94
Average Daily volume from January 1, 2008: 325246

Infosys too is expected to come out with better-than-expected numbers. Most brokerages have a 'buy' rating.

"As the company is not likely to face any rise in tax liability, we expect it to report a sequential net growth of 6.8%, as against 5.3% dip guided by the company for Q1," an analyst report said.

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Glenmark Pharma

% CHANGE: +1.88
Average Daily volume from January 1, 2008: 158150

The company will benefit hugely from product licensing in this quarter. Analysts expect strong numbers for this quarter as well.

Glenmark estimates sales of $15 million from the seven brands for 2008-09 with a 20% growth in 2009-10.


Hero Honda

% CHANGE: -0.95
Average Daily volume from January 1, 2008: 69388

Though interest rates have gone up, analysts expect the two-wheeler segment to do well in the coming quarters.

Mid-layer customers will opt for a fuel-efficient bike rather than a 4-wheeler, which consumes more fuel and offers less mileage. Sales for Q1 this fiscal has gone up by 11%.

Cipla

% CHANGE: -1.54
Average Daily volume from January 1, 2008: 373614

Analysts are expecting a flattish quarter for Cipla in terms of earnings. "There will be no positive surprises for sure," says an analyst.

Cipla is a fairly-valued stock and there is upside left in it for the near term. On the downside, analysts do not expect the stock to fall more than 15% at worst.

Hindustan Unilever Limited

% CHANGE: -3.97
Average Daily volume from January 1, 2008: 476557

Like Nestle, Hindustan Unilever is a good stock to have in times of agri-inflation. Analysts expect the company's turnover to grow at a CAGR of 15% between 2007 and 2009.

Interestingly, FMCG giant Hindustan Unilever is the least favoured of the lot, high valuations being the key factor.

Cairn India

% CHANGE: -4.11
Average Daily volume from January 1, 2008: 2124176

Though Cairn India has fallen over 4% over the past 6-odd months, it is one of the better performers in the oil & gas space.

It's ownership of valuable oil reserves in Rajasthan should generate steady cash flows from '09(estimated), besides having the potential to generate further upside from exploration.


Source: Economic Times