Canara Bank
Cluster: Apple Green
Recommendation: Buy
Price target: Rs320
Current market price: Rs186
AMC JV between Canara Bank and Robeco
Key points
- Canara Bank has decided to sell its 49% stake in its asset management arm, Canbank Investment Management Services (CIMS), to the Netherlands-based Robeco Groep NV for Rs115 crore.
- The proposed venture has got the nod of the Reserve Bank of India. However approval from the capital market regulator, Securities and Exchange Board of India, and the Foreign Investment Promotion Board are awaited.
- The company plans to float five new equity-based products and aims to capture 5% market share in the next five years.
- The assets under management (AUM) of the bank stood at Rs2,200 crore, which is comparatively lower than that of industry leaders like Prudential ICICI (AUM of Rs43,280 crore as on February 2007).
Wockhardt
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs552
Current market price: Rs362
US FDA nod for painkiller
Wockhardt has received the approval of the US Food and Drug Authority (US FDA) for marketing painkiller tablets, containing a combination of Dextropropoxyphene napsylate and Acetaminophen (DPN+APAP), in the US market. The DPN+APAP combination is the generic version of Xanodyne Pharma's patented product, Darvocet-N. It is one of the more potent analgesic drugs and is widely used all over the world for control of various kinds of pain.
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