Why Is Prabhat Dairy Quoting at a 60.10% Discount to its Value?
Prabhat Dairy has struck a deal with French major Lactalis to sell its dairy business for Rs1,700 crore at 1.1 times its FY17-18 sales. The transaction constitutes 98.24% of the consolidated revenue of Prabhat Dairy and contributed Rs1,529 crore in sales in FY17-18. The deal is expected to close by Q1FY19-20.
 
The deal value is significantly higher than Prabhat Dairy's enterprise...
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Nifty, Sensex looking Weak – Thursday closing report
We had mentioned in Wednesday’s closing report that if Nifty, Sensex might head lower if it breaks today’s low. The major indices of the Indian stock markets were range-bound on Thursday and closed with gains over Wednesday’s close. On the NSE, there were 584 advances, 1,119 declines and 354 unchanged. The major trends of the Indian stock markets are given in the table below:
 
 
The Sensex declined and the Nifty traded marginally higher on Thursday over concerns of global growth and the ongoing earnings' season. Banking, auto and finance stocks declined while the export-oriented IT (information technology) sector gained as the rupee continued to gain for the second day. The rupee was last trading at Rs71.26 per dollar from its previous close of Rs71.34 as global crude oil prices soothed.
 
Globally, investors were cautious ahead of the vote on a bill that may end the partial US government shutdown. Foreign institutional investors sold Rs775.82 crore worth of stocks while domestic institutional investors bought Rs583.77 crore. 
 
Automobile major Tata Motors has launched its new SUV "Harrier" at a starting price of Rs12.69 lakh, ex-showroom Mumbai. According to the company, "Harrier" is powered by "Kryotec 2.0" Diesel engine, which is mated to a 6-speed manual transmission. Commenting on the launch, Tata Motors CEO and MD Guenter Butschek said: "With this product, Tata Motors has rightfully entered the premium mid-size SUV segment. The 'Harrier' is a strong proof point of our Turnaround 2.0 strategy and it will be a game changer in the market," Butschek said. "I am confident that with the 'Harrier', Tata Motors Passenger Vehicle Business Unit will continue to win sustainably in the times to come," Butschek added. Tata Motors shares closed at Rs175.55, down 2.61% on the NSE.
 
United Spirits Ltd reported Rs192 crore standalone net profit for the third quarter of fiscal 2018-19, registering 42% annual growth from Rs135 crore in the same period a year ago. Sequentially, net profit, however, declined 25.9% from Rs259 crore a quarter ago. In a regulatory filing on the BSE, the Indian arm of the British liquor major Diageo said standalone revenue from operations grew 8.8% annually to Rs7,764 crore from Rs7,137 crore in the like period a year ago and 8.9% sequentially from Rs7,128 crore a quarter ago. Earnings before interest and tax (Ebit) grew 70% yearly to Rs298 crore from Rs184 crore a year ago but declined 21.8% from Rs381 crore a quarter ago. "We delivered double-digit sales growth for a third consecutive quarter this year. Net sales grew 16% in the prestige and above segment and 11% overall, including the popular segment," said Chief Executive Anand Kripalu in a statement later. Though the company had a stable operating environment during the fiscal, it expects the general elections, due in April-May, to impact its sales in the first quarter of fiscal 2019-20. "We will, however, make progress towards strategic priorities to capture the opportunity in spirits market in India," said Kripalu. Within the Scotch portfolio, Johnnie Walker and Black & White showed robust growth. United Spirits shares closed at Rs571.75, down 1.46% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the Asian indices are given in the table below:
 
 
 

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Nifty, Sensex May Head Lower If It Breaks Today’s Low – Wednesday closing report

We had mentioned in Tuesday’s closing report that Nifty, Sensex were directionless. The major indices of the Indian stock markets suffered a correction on Wednesday and closed with losses over Tuesday’s close. On the NSE, there were 682 advances, 1,012 declines and 364 unchanged. The trends of the major indices in the course of Wednesday’s trading are given below:

 

 
After a largely choppy trade session for the better part of Wednesday the Sensex closed lower owing to the last hour selling in index heavyweight ITC, which missed estimates in its quarterly result. ITC lost over 4% after it reported its third quarter results on Wednesday. The FMCG (fast moving consumer goods) major reported a 3.85% year-on-year (y-o-y) growth in its standalone net profit. Globally, market sentiments were weak over concerns of a slowing global economy and the ongoing US-China trade tension. 
 
Metal stocks were back in favour on Wednesday after closing 2% lower on Tuesday, while IT (information technology), FMCG (fast moving consumer goods) and financials came under selling pressure. Markets globally had reversed course after the International Monetary Fund (IMF) revised down its forecast for global growth.
 
Analysts said IMF now projects a 3.5% growth rate worldwide for 2019 and 3.6% for 2020 which is 0.2% and 0.1% points below its last forecasts in October 2019, making it the second downturn revision in three months. Investors were also cautious owing to reports that the US turned down an offer to hold preparatory trade talks with China. This was later denied by the US administration.
 
The Indian rupee, however, gained 17 paise to trade at 71.27 (around 3.30 p.m.,) against the US dollar, providing some support to the overall dismal sentiment. It closed at 71.27 per dollar on Tuesday.
 
FMCG (fast moving consumer goods) major ITC Ltd reported a 3.85% year-on-year (y-o-y) growth in its standalone net profit to Rs3,209.07 crore for the third quarter ending on December 31, 2018 as compared to Rs3,090.20 crore in the corresponding period last year. Driven mainly by FMCG (fast moving consumer goods), agri business and paperboards, paper and packaging, its gross revenue for the quarter soared to Rs11,340.15 crore, up by 15.1% from Rs9,852.74 crore in the corresponding period last year.
 
Private life insurer HDFC Life Insurance Co Ltd closed the nine month period with a net profit of about Rs913 crore, said a top company official, against Rs762 crore registered for the earlier corresponding nine month period. HDFC Standard Life Insurance Company shares closed at Rs372.00, down 3.09% on the NSE.
 
Budget airline IndiGo said its flight from Lucknow to Jaipur returned after take-off after the pilot noticed high vibration in the engine. "The pilot observed high vibration on engine number 2. As a precaution, he returned the aircraft to Lucknow," a company statement added. InterGlobe Aviation shares closed at Rs1,111.00, down 0.86% on the NSE.
 
Hearing an appeal by ArcelorMittal for early resolution of bankrupt Essar Steel, the National Company Law Appellate Tribunal (NCLAT) on Wednesday ordered its Ahmedabad Bench to pass the verdict in the case by January 31. Failing which, the two-member bench of NCLAT headed by Justice S.J. Mukhopadhyay said it would call the matter and pass an order at its next hearing. The appellate tribunal has asked for the matter to be listed for next hearing on February 4. ArcelorMittal's Rs42,000 crore resolution plan was approved by the Committee of Creditors (CoC) to Essar Steel last October and has been waiting for the Ahmedabad NCLT's approval. The next hearing on the matter by the Ahmedabad Bench is on January 31. Essar Shipping shares closed at Rs12.15, down 0.82% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given below:
 
 

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