Anil Manghnani of Modern Shares & Stock Brokers is of the view that Hindalco maybe a good long-term investment play.
He further added, "The one I probably take a punt on is Hindalco but not from a trading point of view. I am just using the same reasoning when Suzlon and Tata Steel announced their takeover bids abroad, the stock was beaten down quite badly but once the deal was done, the stock rebounded quite sharply. So maybe something like that eventually might happen in this also. I think, it has good support level in the Rs 120-130 range now it’s consolidating in a narrow range. So, Hindalco maybe a good long-term investment play."
He further added, "The one I probably take a punt on is Hindalco but not from a trading point of view. I am just using the same reasoning when Suzlon and Tata Steel announced their takeover bids abroad, the stock was beaten down quite badly but once the deal was done, the stock rebounded quite sharply. So maybe something like that eventually might happen in this also. I think, it has good support level in the Rs 120-130 range now it’s consolidating in a narrow range. So, Hindalco maybe a good long-term investment play."
Anil Manghnani of Modern Shares & Stock Brokers is of the view that Infosys Technologies has major support at Rs 1900.
Manghnani told CNBC-TV18, "Rs 1,900 is a major support for Infosys; the reason I say this because in the last three-four months it bounced back from Rs 1,908-1910 levels. I still probably go on a hunch and try to play more in the rupee front and till the rupee doesn’t break Rs 40 I will hold on to these stocks. But as a day trader, it gets a little tricky to how long one can wait so Rs 1,900 if Infosys breaks that could be some problem for it."
He further added, "I think TCS support will be Rs 1,210-1,200."
Ranjit Kapadia of Prabhudas Lilladher is of the view that Phillips Carbon Black has target of Rs 250.
Kapadia told CNBC-TV18, "Phillips Carbon Black is going in for power plant expansion, which is likely to come in FY09 and this plant will contribute for the entire year of ’09 which will be commissioned at Durgapur facility and the company is likely to rich benefit in FY09 and plus their expansion is going in middle of ’09 which contribute for atleast 1-2 quarters. Our price target on this is Rs 250."
Kapadia told CNBC-TV18, "Phillips Carbon Black is going in for power plant expansion, which is likely to come in FY09 and this plant will contribute for the entire year of ’09 which will be commissioned at Durgapur facility and the company is likely to rich benefit in FY09 and plus their expansion is going in middle of ’09 which contribute for atleast 1-2 quarters. Our price target on this is Rs 250."
Broking house, FinQuest Securities is bullish on Cinemax India and has recommended buy rating on the stock with a target of Rs 210.
FinQuest Securities report on Cinemax India:
Cinemax India (CIL) is an emerging entertainment company primarily focused on the exhibition business with limited interests in gaming and mall development. The company is on an expansion spree and is likely to establish a pan India presence in years to come.
Investment Argument
Factors like rising consumerism, increase in disposable income, favourable demographics, lower penetration of multiplexes within the country and boom in retail sector throw up excellent opportunities for the multiplex sector in India .
Mumbai accounts for 15% of all India box office collections. With 8 out of CIL's 9 current properties owned and located at prime locations in Mumbai, CIL is well poised to ride the multiplex boom in the west.
On the back of the real estate expertise of its promoter group, CIL has undertaken an ambitious expansion plan of establishing a pan India presence by geographically diversifying its properties by FY2009E. Lease model based expansion plan would enable CIL to achieve break-even at lower occupancy rates and avoid huge capital expenditure.
Healthy growth of revenues accompanied by E-Tax exemption benefits will push down CIL's cost structure thereby resulting in impressive growth in Revenues at a CAGR of 57%, EBIDTA at a CAGR of 61% and Net profit at CAGR of 78% over FY2007-09E
Valuations
At CMP of Rs 160, the stock trades at a P/E of 20.1x FY2008E EPS of Rs 8 and 11.5x FY2009E EPS of Rs 13.9, and EV/EBIDTA of 12.3x FY2008E and 7.7x FY2009E. Considering the positive outlook for the multiplex industry and CIL's expansion plans we Initiate Coverage on the stock with a 'Buy' recommendation and a target price of Rs 210.
FinQuest Securities report on Cinemax India:
Cinemax India (CIL) is an emerging entertainment company primarily focused on the exhibition business with limited interests in gaming and mall development. The company is on an expansion spree and is likely to establish a pan India presence in years to come.
Investment Argument
Factors like rising consumerism, increase in disposable income, favourable demographics, lower penetration of multiplexes within the country and boom in retail sector throw up excellent opportunities for the multiplex sector in India .
Mumbai accounts for 15% of all India box office collections. With 8 out of CIL's 9 current properties owned and located at prime locations in Mumbai, CIL is well poised to ride the multiplex boom in the west.
On the back of the real estate expertise of its promoter group, CIL has undertaken an ambitious expansion plan of establishing a pan India presence by geographically diversifying its properties by FY2009E. Lease model based expansion plan would enable CIL to achieve break-even at lower occupancy rates and avoid huge capital expenditure.
Healthy growth of revenues accompanied by E-Tax exemption benefits will push down CIL's cost structure thereby resulting in impressive growth in Revenues at a CAGR of 57%, EBIDTA at a CAGR of 61% and Net profit at CAGR of 78% over FY2007-09E
Valuations
At CMP of Rs 160, the stock trades at a P/E of 20.1x FY2008E EPS of Rs 8 and 11.5x FY2009E EPS of Rs 13.9, and EV/EBIDTA of 12.3x FY2008E and 7.7x FY2009E. Considering the positive outlook for the multiplex industry and CIL's expansion plans we Initiate Coverage on the stock with a 'Buy' recommendation and a target price of Rs 210.
Mehraboon Irani of Darashaw & Company is of the view that Shivalik Global has target of Rs 48-52.
Irani told CNBC-TV18, "Shivalik Global is a textile company; entire textile value chain that is from yarn to garments manufacturing it is into. As per the unaudited results the company’s EPS for 2006-2007 was Rs 3.5, which at the present price of Rs 34 this stock looks richly valued. But the main part, the main trigger for the stock for the reason, which we like, is the diversification of real estate business."
He further added, "The company has signed a definitive agreement with a real estate developer of North India in which the total size of the deal is estimated to be Rs 630 crore that’s the land with the company owns in Faridabad. This is spread over a period of four years, the total size of the deal of this Shivalik Global along with a group company Gandhar Exports the share is expected to be Rs 280 crore of which Rs 50 crore is already been paid."
"Land deal according to us, the real estate business should give company around Rs 20 per share and balance Rs 14 an EPS of Rs 5.5 from the textile business alone which we are expecting in the current year 2007-08. It makes the stock looks attractive to me and I think with the land value at Rs 20 per share we can safely expect a price target of Rs 48-52 over the next six-eight months. So on the present level for another Rs 15-16 means a return of 50%."
Irani told CNBC-TV18, "Shivalik Global is a textile company; entire textile value chain that is from yarn to garments manufacturing it is into. As per the unaudited results the company’s EPS for 2006-2007 was Rs 3.5, which at the present price of Rs 34 this stock looks richly valued. But the main part, the main trigger for the stock for the reason, which we like, is the diversification of real estate business."
He further added, "The company has signed a definitive agreement with a real estate developer of North India in which the total size of the deal is estimated to be Rs 630 crore that’s the land with the company owns in Faridabad. This is spread over a period of four years, the total size of the deal of this Shivalik Global along with a group company Gandhar Exports the share is expected to be Rs 280 crore of which Rs 50 crore is already been paid."
"Land deal according to us, the real estate business should give company around Rs 20 per share and balance Rs 14 an EPS of Rs 5.5 from the textile business alone which we are expecting in the current year 2007-08. It makes the stock looks attractive to me and I think with the land value at Rs 20 per share we can safely expect a price target of Rs 48-52 over the next six-eight months. So on the present level for another Rs 15-16 means a return of 50%."
Source: moneycontrol.com
