Stocks in focus: Infosys, TCS, Alkem Labs, DCB Bank

Agencies Updated - January 20, 2018 at 09:15 AM.

Infosys hits record high on growth outlook

Infosys shares gained as much as 8.11 per cent to touch a lifetime high of Rs 1,267.90 today.

The stock ended 5.70 per cent or Rs 66.75 higher at Rs 1,238.80.

The country's second-largest IT services firm on Friday posted better-than-expected March-quarter earnings and forecast stronger growth as it chases $20 billion sales target.

Infosys said it expects 11.5-13.5 per cent revenue growth in fiscal 2017, faster growth rate than industry average.

Some analysts said they expected 11-13 per cent growth. The company's US-listed shares touched their highest in 16 years on Friday.

"We think the momentum in large deals coupled with efficient use of margin levers would help Infosys deliver our above-consensus FY17 EPS of Rs 68," Macquarie has said.

“We remain positive on the stock as revenue growth trajectory continues to improve without compromising margins or cash flows,” Ambit Capital said in a report.

Alkem Labs' shares fall on row over fudging trial data

Shares in Alkem Laboratories Ltd fell as much as 8 per cent on Monday after the company confirmed it was in talks with German authorities who had accused it of fudging data in some clinical trials.

The stock partially recovered its losses to finish 4.44 per cent or Rs 59.25 lower at Rs 1,276.25. The company debuted on the stock exchanges in December.

Reuters reported on Friday that German authorities had accused the company of manipulating heart readings of patients in some trials for the antibiotic cefuroxime and the brain disorder drug rulizole, following an inspection of Alkem's plant in Taloja in western India in March 2015.

The European Medicines Agency is investigating the medicines after Germany reported its findings to the EMA and urged it to take action in a report that was posted on the EMA website.

Alkem said in a statement on Saturday that the company had responded to the German authorities with a “robust remediation plan” and would also submit “suitable clarification” to the EMA.

Similar findings by European regulators concerning manipulation of electrocardiogram data at two other Indian firms, GVK Biosciences and Quest Lifesciences, led to the recall of nearly 700 medicines last year.

Alkem said the inspection concerned studies conducted by the company between March 2013 and March 2015 on two products, one of which is selling, while the other is yet to reach the market. It did not name the products.

It also said it had changed staff, upgraded equipment and improved its quality assurance systems at the Taloja plant since Germany's inspection.

Alkem, among the fastest-growing drugmakers in India, said sales from Europe made up less than 1 per cent of its total revenue in the nine months to December 2015.

TCS shares down on $940 mn fine ahead of earnings

Shares of TCS fell by over 3 per cent today after a US grand jury imposed a fine of $940 million on it and another Tata Group company Tata America International Corp in a trade secret lawsuit.

The stock ended down 0.03 per cent at Rs 2,522.40 on the BSE.

TCS on Saturday stated there was no IP infringement in the Epic Systems case and said it plans to “defend its position vigorously in appeals to higher courts“.

The company is due to announce its earnings later in the day.

DCB Bank shares jump as Q4 net soars

Shares of DCB Bank today surged nearly 9 per cent after the company reported a 10.5 per cent rise in net profit for the fourth quarter ended March 31.

The stock gained 5.52 per cent or Rs 4.60 at Rs 87.90 on the BSE.

Published on April 18, 2016 10:56