Wednesday, May 30, 2007

Research Report

For download report about Hindalco: Click Here

Different Views about Different Stocks

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."
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."
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.
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%."
Source: moneycontrol.com

Markets Today

The markets closed in red near the day lowest points of the day. It spend most of the day hovering near its previous close but slipped during the last hour of trade. The market breadth was in favour of declines. The fall was inline with its gloabal and Asian peers on the back of fall in Chinese markets.
The BSE Midcap which opened in green slipped and underperformed the frontline index. Except for the the captal goods index, all the BSE sector indices closed in red. IT, metal, FMCG and banking indices ended lower. The turnover was quite brisk ahead of the F&O expiry day.
Sensex was down 96.83 points or 0.67% at 14411.38, and the Nifty down 43.60 points or 1.02% at 4249.65.
About 959 shares have advanced, 1580 shares declined, and 65 shares are unchanged.
The BSE Small Cap Index closed at 7,349.56 down 0.5%.
The BSE Midcap Index ended at 6,191.61 down 1%.
The BSE Capital Goods Index was up 1.7% at 11,079.43. L&T up 7.39%, Bharat Elec up 4.41%, Thermax up 4.25%, Alstom Projects up 3.58%, Gammon India up 1.87% .
The BSE FMCG Index down 1.7% at 1,881.32. Tata Tea, Colgate, Britannia, Marico, HLL, Dabur India closed in red.
The BSE Metal Index was down 1.4% to close at 10,344.67. JSW Steel, JindalStainless, SAIL, Hindalco, Welspun Guj were among the losers
The BSE Health Care Index was down 0.8% at 3,827.38. Nicholas Pirama, Glenmark, Novartis India, Panacea, Biotech, Cipla closed lower.
The BSE Auto Index closed at 4,948.16 down 0.2%. TVS Motor, Asahi India, Maruti Udyog, Bharat Forge, Mah and Mah, Escorts among the losers
The BSE IT Index closed at 4,814.09 down 1.9%. Patni Computer, Moser Baer, Infosys, HCL Info, I-Flex Solution ended weak.
The BSE Bankex was down 1.3% at 7,659.09. Federal Bank, HDFC Bank, Andhra Bank, Kotak Mahindra, Allahabad Bank closed lower.
The BSE Oil and Gas Index closed at 7,755.58 down 0.5%. Reliance Natura, IOC, MRPL, Petronet LNG closed in red.
Source: moneycontrol.com

Intraday Calls for 30th May

Nifty supports are 4280, 4260 and resistance are 4310 and then 4325.
Sensex Supports are 14475, 14450 and resistance are 14525 and then 14565.
High volatility can be seen in today's market but will remains flat.

Buy Petronet LNG @ Rs. 53/- Target Rs. 56-58/- SL Rs. 51/-
Buy Siemens @ 1285-1290/- Target Rs. 1300-1320/- SL Rs. 1280/-
Buy GDL @ Rs. 185/- Target Rs. 190-192/- SL Rs. 182/-
Buy Jaiprakash Associates @ Rs. 685-690/- Target Rs. 710-725/- SL Rs. 680/-
Buy Sintex @ Rs. 215/- Target Rs. 220-222-225/- SL Rs. 212/-
Buy Hindalco @ Rs. 144-145/- Target Rs. 150-152/- SL Rs. 141/- (One can buy its delivery also for 5-10 days target of Rs. 160-165/- with strict SL of Rs. 139/-)
Buy Rain Calcining @ Rs. 37/- Target Rs. 39-40/- SL Rs. 35/-

Others buy are Great Offshore (772), KPIT (141), IFCI(48.5), Visu Intl(13.4), Paramount Communication (36), Andhra Bank (89).

New listing today are: MIC Electronics, Insecticides India.
Good Luck.

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



free counter