>Balrampur chinni (ICICI Direct)

Balrampur Chini’s results were below our estimates. The company reported
its Q4SY08 (sugar year 2008) results with a topline growth of 40.0% to Rs
416.7 crore from Rs 297.8 crore in Q4SY07, supported by volume growth
and improvement in price realisations. The quarter has also witnessed a 15.2% increase in raw material costs to Rs 287.3 crore from Rs 249.5 crore in Q4SY07. The company is currently holding a large sugar inventory, in anticipation of higher sugar prices, going forward. The rise in sugar prices resulted in a significant improvement in EBITDA margins this quarter to 17.3% from 0.8% in Q4SY07. Interest costs rose drastically by 115.3% to Rs 28.3 crore in Q4SY08 on account of higher interest rates. The company reported a net profit of Rs 14.6 crore in Q4SY08 as against
a net loss of Rs 33.7 crore in the corresponding quarter of last year.

To read full report Balrampur chinni (ICICI Direct)

>Sun pharma , Shoppers stop(BRICS)

Major Setback for Sun as USFDA grants Osmotica's citizen petition
In a major setback to the prospects of Sun Pharma’s launch of generic tablet
version of EffexorXR (Venlafaxine extended release tablets), USFDA has granted
Osmotica's citizen petition. The USFDA has advised Sun to submit a new ANDA
if it wishes to pursue approval of the aforesaid tablets. However, our prima
facie analysis suggests that even if the company re-submits the ANDA application
with Osmotica's venlafaxine extended release tablet being the reference drug, it
would take at least one - one and half years before it gets the approval. On the
flip side, as per the settlement with Wyeth, Teva is expected to launch the
aforesaid generic capsules in July 2010. In this scenario, there may be very little
incentive for Sun Pharma to resubmit the ANDA application.

To read to full report Sun pharma , Shoppers stop(BRICS)

>Reliance(Edelweiss)

Petrochemical margins have corrected due to the huge fall in demand on account of
the ongoing global slowdown and demand destruction. Reliance Industries (RIL),
however, is better off than its peers because of its focus on the domestic market and
high level of integration, which shields it from offtake risks. We consider negative-tozero
cracker margins unsustainable and expect them to improve as crackers cut
operating rates. Margins are, however, likely to remain below FY07 and FY08
averages, as cracker operating rates are expected to reach 85% only by FY12.

Read full report here Reliance(Edelweiss)

>Steel sector (Edelweiss)

Globally, with the financial crisis spilling into the real economy, demand outlook for steel has
taken a severe beating. We expect Chinese steel demand to decline 10% in Q4CY08E, and
virtually stall at 0.8% in CY09E, led by slowdown in construction, appliances, and auto
sectors. With recession/recession-like conditions in the developed world (the US, Japan, and
a few European countries), we see their steel consumption declining 5-20% over CY09-10E;
past recessions have seen US steel consumption drop 10%, on an average. Though growth in
developing nations is likely to mitigate this impact to some extent, global steel consumption
is slated to decline 5.0% in CY09E, contrary to earlier assumption of 6% growth. This will be
first decline since CY98. Recovery in CY10E is likely, but there will still be a decline of 1.0%.

Read full report here Steel sector (Edelweiss)