Stock Idea: Rural Electrification

A pioneer in the area of rural electrification, this PSU has posted a consistent performance for year ended 31-03-08.
With a 27% rise in net income and 20% rise in operating expense, on the profitability front, the company has done well. Its consolidated net profit rose 30% at Rs.860.14 crore. On an equity of Rs.858.66 crores, it posted an EPS of Rs.10.94.
Its sanctions were up 85% and Rs.60,764 crore while disbursements rose 19% at Rs.16,303 crore. Infact, it disbursed a subsidy of Rs.3,350 crore and a loan of Rs.401 crore under Rajiv Gandhi Grameen Vidyutikaran Yojana.
On 05-05-08, REC was granted the ‘Navratna’ status. This gives its financial and administrative autonomy. REC can now take decisions of investing up to Rs.1,000 crore or 15% of its net worth independently. It would be able to expand its electricity business in the rural areas.
REC had gone public in March 2008, in the wake of the turmoil in the IPO markets cuased by Reliance Power. Yet, it had managed to do well and to a large extent, was responsible for restoring some faith back into the primary markets.
It had issued shares at Rs.105 and had got listed at Rs.128. It is currently quoted at Rs.111. Unlike PSU banks, REC does not disburse loans to farmers or individuals, it finances public sector projects and mega power projects. It is in no way affected by the debt waivers announced. It’s risk is to the extent of recovering money from other PSU’s, a risk which all banks face.
REC is a good buy at CMP of Rs.107.

Stock Ideas: Rolta India

Prabhudas Lilladher has maintained its buy rating on Rolta India with a target price of Rs 437 in its May 27, 2008 research report. "The company management has indicated there is a huge opportunity for it in terms of airport redevelopment, 3D city mapping and work related to power distribution companies (discoms). Rolta is already involved with 26 airport projects across the country. Mapping a single city would be a Rs 1.5-Rs 2.0 billion project. Rolta has hands on experience in this as it has done 3D city mapping for Dubai. We also understand that Rolta is working on nine projects for power distribution companies."
"We expect Rolta to report 46.30% and 35.2% revenue growth in FY09 and FY10 respectively. We expect its earnings to grow by 34.2% and 48.6% during the same period. We maintain BUY rating on the stock with a target price of Rs 437 (14xFY10E earnings)," says Lilladher's research report.

Intraday Trading Calls for 30th May

There are so much annoucements will hit the market today like Inflation rate, GDP, Petrol price Hike etc. So Indian Stock Market may remains very volatile but I think there are some positive news also like Crude oils comes down to $126, Sebi eases registration norms for FIIs and sub accounts, FIIs can issue participatory notes to entities like hedge funds, Government allows infrastructure firms to borrow US$100mn abroad through ECBs for rupee expenditure under the approval route. So overall market may see a good and strong rally even today or from Monday.

Today's Intraday Stock Tips/ Trading Calls:

ELECON ENGINEERING

NEYVELI LIGNITE

PRAJ INDUSTRIES

INDIABULLS REALEST

ANSAL INFRA

INDIABULLS SECURITIES.

For Levels and Targets download the file by CLICK HERE.

Others: Bombay Dyeing & Pharma Sector.

Corporate News :
Reliance Industries and Standard Chartered Bank may co-bid for strategic stake in IFCI. (DNA)
Sun Pharma may take legal action against Israel’s Taro Pharma, for terminating merger. (BS)
L&T schedules first of three IPOs for 2009-10. (BL)
Jubilant completes acquisition of Canada's Draxis Speciality Pharma for US$253mn. (BS)
Exide plans investment worth Rs350mn to acquire lead smelter company. (BL)
SAT sets aside SEBI penalty on Holcim. (BS)
Tata group is setting up a BPO on its proposed steel plant site in Orissa. (BS)
Tata’s small car Nano is hit by rising input costs. (DNA)
Videocon is planning to set up a 1,000MW hydropower project in Uttaranchal. (DNA)
Piramal Life to invest Rs2bn p.a. for next 2-3 years on R&D. (DNA)
Gujarat Industries Power Co. (GIPCL) is expected to start work on the 500MW lignite based power plant soon. (DNA)
PTC plans to raise US$500mn. (BL)
Kavveri Telecom signs MoU with MS Ramaiah School of Advanced Studies to augment its R&D. (BL)
TCS to spend Rs19bn in the current fiscal year. (BL)
ABG Infralogistics is set to get deals for two Haldia dock terminal operations. (BL)
Havells India among 14 FDI plans cleared for issuing shares and warrants. (BL)
NMDC and Spice Minerals sign MoU for a JV to seek overseas acquisitions. (BL)
Linde Group, Germany plans to invest euro 1bn in its unit BOC India over 7-10 years. (FE)
ICICI Prudential ties-up with American Express Banking Corp.(FE)
Karuturi Global to raise US$250mn for agri project in Ethopia. (FE)
Dish TV to increase borrowing limits by Rs10bn. (FE)
Orchid Chemicals to convert business alliance with Ranbaxy into an agreement next month. (FE)
Hindustan Aeronautics to manufacture over 1,000 Honeywell TPE331 aircrafts engines for the US Company. (FE)
HPCL decides to put on hold Rs317.5bn worth of capital investment. (FE)
TDSAT directs BSNL to restore connection to Bharti Airtel in parts of Bangalore. (FE)
L&T proposes to set up 15-hector IT SEZ in Gujarat. (FE)
BoA to consider the in-principle approval to SEZ proposals of Gremach Infrastructure. (FE)
Maharashtra government delays land acquisition process, slows down Tata Power, Reliance Energy power project development. (FE)
Hanung Toys to acquire frontline US home furnishing marketing company. (ET)
Wipro wins an interim court ruling against bulb maker KK Lamps. (ET)
JB Group announces foray into food business by forming a new company JB N JEG Foods. (ET)
TTML in talks with Srei Group company Quippo Telecom to merge its tower arm. (ET)
Bombay Dyeing sold off its DMT plant to Gujarat Company. (ET)

Good Luck

Stock Idea: BHEL

Emkay Research has maintained its buy rating on Bharat Heavy Electricals with a price target of Rs 2330 in its May 27, 2008 research report. "BHEL declared its Q4FY2008 results with net sales of Rs 72 billion and net profit at Rs 11.1 billion. However the same is below our expectation. The net sales growth of barely 4.1% clearly shows execution problems with the company. The order book position is at Rs 85.5 billion which was ahead of expectations."
"In order to factor in a lower earnings growth we are downgrading our price target to Rs 2330, which is based on 22.5X its FY2010 earnings. At CMP of Rs 1655, BHEL is trading at 16X its FY2010 earnings and 10.4X its FY2010 EBIDTA, which is near the lower range of its trading band. We believe that BHEL is taking steps in right direction to address issue of supercritical order, increasing pace of execution and expanding capacity. Key positive triggers are negotiated orders for 800MW supercritical units from NTPC, visibility on execution of projects in JVs like that with TNEB for supercritical projects and award of 800X2 MW supercritical units from Krishnapatnam project. Faster execution of delayed order shall also improve near-term earnings growth. Maintain BUY," says Emkay's research report.

Stock Idea: Idea Celluler

By monetising 20% of its holding in Indus Towers, Idea has reduced its leverage from 1.5x to 0.6x, and armed itself with enough cash and debt capacity to undertake both network growth in its existing circles and footprint expansion in new circles, including potentially inorganic growth. We revise our revenue estimates for existing operations upwards by 6% and 8% for FY09 and FY10 respectively, on the back of stronger-than-expected performance on the subscriber addition and ARPU front. Idea also has been allocated spectrum in Tamil Nadu and Orissa circles, and will likely begin operations this year. We include these two circles in our estimates, and this takes 12% off our FY10 earnings estimate. We retain BUY with a DCF-based target price of Rs156 (previously Rs148).
Funding problem solved for the present: By raising US$640m through compulsorily convertible preference shares (CCPS) as an investment into its subsidiary Aditya Birla Telecom Limited (ABTL), Idea has reduced its debt-equity ratio to 0.6x. Idea can raise its cash reserves to nearly Rs130bn within a debt–equity ratio of 2x. With this, network growth in its current 11 circles as well as rollout in new circles can be executed for the first year, especially since rollout in the new circles will be staggered. While Idea will need more funds to fund its longer-term capex for the remaining seven circles, the dilution of stake in Indus is a positive move, especially as no dilution of rights in Indus Towers is involved. Operations in existing circles strong, rollout to accelerate: By managing to raise usage minutes on its network by 9% sequentially in 4Q, Idea managed to increase its ARPU by nearly 3%, leading to a strong revenue growth of 15% QoQ.
With subscriber additions now averaging more than 1.1m per month, we raise our subscriber forecast for Idea (in its current circles plus Mumbai and Bihar), for FY09 by 5% to 36m and for FY10 by 4% to 46m. We continue to model declining ARPU as we believe that for the present, new subscriber addition will continue to be strong and drag ARPU down. Spectrum in three new circles obtained; expect service launch by December 2008: Spectrum in Tamil Nadu (including Chennai) and Orissa has already been obtained and the company expects to start service by December. We expect spectrum in the remaining seven circles, including the prominent Punjab and Karnataka circles, to come Idea’s way in the next 12 months. We are adding these two circles in our model.

By Indiainfoline

Markets Today

Markets closed in red after a good morning start. During the day’s trade, it was trading almost volatile and suddenly slipped before the last half hour, as trade wound up. The BSE auto index has underperformed the other sectoral indices; it closed down over 3%. Bank, oil & gas, power realty, consumer durable & FMCG indices were witnessing selling pressure.
However, capital goods index closed with good gains; this sectoral was led by Larsen & Toubro as it came out with good financial numbers.
The Sensex closed down 209.11 points or 1.27% at 16316.26, and the Nifty was down 83.05 points or 1.69% at 4835.30.
About 1230 shares have advanced, 1670 shares declined, and 210 shares are unchanged.
The BSE midcap index down 0.17% and smallcap index down 0.68%.
The BSE auto index tumbled 3.24% or 147.69% at 4414.34.Tata Motors, Mahidra and Mahindra, Hindustan Motors, Hero Honda, TVS Motors closed down.
The BSE bankex fell 2.79% or 221.14 at 7712.36. SBI, ICICI Bank, Allahabad Bank, Bank of India, Canara Bank ended in red.
The BSE oil & gas index plunged 1.91% or 206.27 at 10571.64. ONGC, Reliance, RNRL, Gail, Petronet LNG, Essar Oil closed negative.
The BSE realty index dropped 1.45% or 105.04 at 7125.38. Puavankara Projects, HDIL, Ansal Properties, Unitech, Peninsula Land, DLF slipped.
The BSE power slipped 1.35% or 41.81 at 3062.48. Suzlon, GMR Infra, NTPC, GVK Power ended down.
The BSE FMCG index cut down 0.99% or 24.21 points at 2419.47. Colgaste, HUL, ITC, Nestle fell.
However, the BSE capital goods index surged 2.03% or 255.12 points at 12827.03. Larsen, Alstom Projects, Bharat Elec, Carborundum, BEML, Jyoti Structure surged.
The BSE metal moved up 0.58% or 96 points at 16745.65. Jindal Steel, Jindal Saw, JSW Steel,Sesa Goa, JindalStainless flared.
The NSE cash turnover was at Rs 18136 crore and the NSE F&O turnover was at Rs 64758.96 crore. The BSE cash turnover was Rs 6206.67 crore. Total market wide turnover was at Rs 89101.63 crore.

Source: moneycontrol.com

Intraday Trading Calls for 29th May

Today Indian Stock Market may open positive and remains same for the day. Little bit volatility can be seen because of expiry day. Overall market may see good rally today with positive closing.

Today's Intraday Trading Calls/Stock Tips:

RENUKA SUGAR

NEYVELI LIGNITE

PRAJ INDUSTRIES

INDIABULLS REALEST

RELIANCE INFRA

UNION BANK

For Levels and Targets download the file by CLICK HERE.

Others: Sitashree Food, Mundra Port.

Corporate News
IOC to ration supplies in order to cut revenue losses. (BL)

Tata Motors plans 3 types of rights issue having differential voting rights as part of its plan to raise Rs72bn for the Jaguar-Land Rover acquisition. (BL)

ITC raises the prices of 3 of its cigarette brands by 10%. (BS)

Sun Pharmaceuticals’ US$454mn proposal to acquire Israeli drug-maker Taro has been called off. (BL)

Ranbaxy gets mixed verdict on Pfizer’s Lipitor in Australia. (BL)

Tata Steel-Corus raised prices for structural sections by £90 per ton from its Europe operations. (BL)

Unitech is in final stages of negotiation with Lehman for a US$500mn PE investment in its two commercial projects in Mumbai. (BL)

ONGC may reimburse part of service tax to shipping companies. (BL)

Tata Power to invest Rs5bn for wind power expansion. (BL)

GMR to set up ONGC’s proposed refinery in Kakinada. (BL)

HPCL-Mittal energy JV has approached the Petroleum Ministry to seek tax incentives.Infosys Technologies to implement Finacle Universal Banking Solutions at BVA. (BS)

RIL and HPCL bid for control of three state-run sugar factories in Bihar. (BS)

Orbit Corp to foray in beachfront projects through SPV. (BS)

Reliance Communication to start due diligence of MTN.(BS)

Parsvnath to buy 30% stake in Nano City. (BS)

Adani Energy has been slapped with legal proceedings claiming US$100mn in losses by Petronas for violating an agreement to buy and sell LNG. (Mint)

Cipla has filed pre-grant oppositions for over 50 drugs. (ET)

Good Luck

Stock Idea: Bhushan Steel

Hem Securities has recommended a buy rating on Bhushan Steel with a target of Rs 1016 in its May 27, 2008 research report. "The company has posted the compounded annual growth rate of 16.16% in top line and 38.92% in bottom line in last three years and is expected to maintain its growth in coming years. The company is spearheading a technological revolution in India’s Cold Rolled Steel industry and, in the spirit of a true leader, is ceaselessly striving to raise the bar, achieve new milestones and set new benchmarks in terms of quality of products and degrees of customer satisfaction."
"The stock at the current market price of Rs 769.45 is trading 7.95 times to its earnings of Rs 96.80 and 2 times to its book value of Rs 382.76. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 1016 in the medium to long-term investment horizon with an appreciation of 32%," says Hem's research report.

Markets Today

Markets Snapshot
Market end at day's high; recover in last hour of trade on back of short covering
Sensex ends up 250 pts at 16525; Nifty ends up 58.5 pts at 4918
Profit booking seen in midcap and smallcap stocks
CNX Midcap Index up 0.85%, BSE Small-cap Index up 0.33%
FMCG Index up 4.2%; ITC up 6.15% on report of cigarrate price hike by 5-10%
Cement stocks in focus after partial removal of export ban; Ambuja Cement up 6.5%, ACC up 2%, India Cement up 3.5%
Bank Index up 3%, PNB up 3.75%, SBI up 2.9%, HDFC Bank, ICICI Bank up 1.25% each
IT Index continous to gain; up 2.6%; TCS up 4.2%, Wipro up 3.4%, Satyam up 2.9%
BSE Cap Goods Index down 1.5%; BHEL down 2.8%, L&T down 1.3%Cairn India down 3.65% as crude cools off in internatinal market
Suzlon down 2.5%; CLSA & Citi had downgraded stock post result
Ferliser gainers; NFL up 20%, Chambal Fert up 16.2%, Nag Fert 10.5%, Madras Fert up 9.8%
NSE Advance Decline at 1:1
Total market turnover at Rs 75109 cr; FNO turnover at Rs 56334 cr
Buzzers
Bajaj Finserve up 15.5%; ((Listing day action: Bajaj Finserve ends at Rs 509 Vs listing price at Rs 545))
Apar Ind up 12%; looking to hike stake in Uniflex Cables, may result in an open offer
MphasiS up 10%; Axis Bank up 9.5%, Aptech up 6%, Kotak Mah Bank up 6%
Sita Shree Food down 7.3%, Crompton Greaves down 6.3%, Jyoti Structures down 6.2%
F&O Snapshot
Nifty rollover at 51% Vs 45.3% & Market wide rollover at 55% Vs 46% yesterday's trading session
Short covering seen in last hour of trade
Nifty May disocunt ends at premium; Nifty June discount ends at premium Vs discount of 15 pts
Momentum stocks see long rollover in second half of day: IFCI, TTML, RPL, Idea
Large Caps NTPC , SAIL see rollovers pick up : around 60% for each with short bias.
Cement, Banking stongest rolls
Fertilizer, Sugar see rollovers pick up after unwinding in the beginning of the day
RIL (43%), Punj Lloyd (44%), RNRL (47%) see low rollover
Options Data
JP Associates June 230 call add 10.86 lakh shares in OI
Chambal Fertt May 80 put add 6.4 lakh shares, 90 call add 5 lakh shares in OI
Nifty June 4600 put add 4 lakh shares in OI; June 4800 put add 3 lakh shares in OI
NIfty May 5000 call shed 8.6 lakh shares in OI
Strong Roll Over IOB 84% Ultratech Cem 80% India cement 80% Hindalco 78%
Union Bank 77% Syndicate bank 74% Ambuja Cement 72% Century Textile 72%
PNB 71% SBI 70%
Low Rollover Hind Zinc 35% Indian Bank 38% MphasiS 40% RIL 43%

Punj Lloyd 44% RNRL 47%

Source: moneycontrol.com

Intraday Trading Calls for 28th May

Market may open positive but remains very volatile. Market may see good rally as crude oil comes down to $128 and US Markets closed higher yesterday.

Today's Intraday Tips/ Trading Calls:

MERCATOR LINES

NEYVELI LIGNITE

IDBI

WELSPUN GUJARAT

HDIL

SATYAM COMPUTER

For Levels and Targets download the file by CLICK HERE.

Also keep watch on Deepak Fertilizers, Chambal Fert.

Economic News:

Fertilizer Ministry expects fertilizer subsidy to double in FY09 to Rs950bn. (ET)
The Government is considering an option of including cess or surcharge on income tax and corporate tax to bailout oil marketing companies. (BL)
The Government has eased the ban on cement export by allowing shipment through ports in Gujarat. (DNA)
India’s crude oil import bill jumps over 40% to US$68bn in FY08. (ET)

Corporate New:

RIL Australia, a subsidiary of Reliance Industries, pays US$3.45mn in cash to acquire 49% stake in 4 exploration licenses of Uranium Exploration Australia Ltd. (BL)
OVL, subsidiary of ONGC has established commerciality of its Iranian asset, which is estimated to have 22tcf (trillion cu ft) of gas. (ET)
BHEL and Italian company in race for a Rs13bn order for supplying boilers to Neyveli Lignite. (BL)
Tata Steel gets mineral concession approvals from ministry of mines for two large mines in Jharkhand and Manipur. (DNA)
Omaxe is planning to raise Rs15bn in FY09 for various projects; promoters may dilute 5-10% stake via QIP. (DNA)
EKC is planning to invest Rs1.75bn in expanding capacities across plants in US, Dubai, China and India. (DNA)
PNB is keen to take a 51% stake in the proposed JV for setting up a bank in Bhutan. (BL)
SRF to acquire Thailand based tyre cord company for Rs1bn. (DNA)
Gujarat NRE Coke to raise fresh equity to fund its operations and expansion plans in Australia. (DNA)
BK Modi promoter of Spice Tele may sell its stake to AT&T or Etisalat. (ET)
Repro India to invest US$50mn to buyout digital printing solution firms abroad. (DNA)
Tesco in talks with Wadias, Parsvnath and Kalpataru Properties to enter the Indian market. (ET)
IT Department issues notice to Sesa Goa seeking information on the Vedanta deal. (ET)
DE Shaw raises its stake in Orient Express Hotel by ~2% to 7.6%. (ET)
GVK group is looking for opportunities in overseas airport development projects. (ET)
Jindal Drilling Singapore JV may explore opportunities for raising funds and listing. (BS)
Maytas Infrastructure wins contract for washery reject coal based power project. (BS)
Kirloskar Brothers gets order worth ~Rs1bn form Nuclear Power Corporation. (BS)
Elecon Engineering may acquire a European company. (BS)
Godrej Appliances plans to foray into selling chillers, deep freezers and other cold storage appliances. (BS)
Educomp Solution forms a 50:50 JV with Raffles Education. (BS)

Good Luck

Markets Today

Market Snapshot
Market end near day's low ahead of FNO expiry tomorrow
Sensex ends down 73 pts at 16276; slips nearly 230 pts from day's high
Nifty ends down 15 pts at 4860; slips nearly 70 pts from day's high
Interest rate sensitive stocks continue to drag; IT stocks continue to hold firm
BSE Bank Index down 2.3%; SBI down 4%, HDFC Bank down 1.1%
BSE Realty Index down 1.5%; Unitech down 4.7%
Index losers; Suzlon, Power Grid, Cairn down nearly 2.8%, RPL, HDFC down nearly 2%
BSE IT Index up 1.2%; rupee depreciates by 43 bps at 42.90
Satyam, Wipro up nealy 2.75%, TCS up 1.5%
Index Gainers; Tata Motors up 3%, Cipla up 2.9%, Sterlite up 2.7%
Fertliser stocks gains on back of subsidy news; Chambal Fert up 6.5%, Mangalore Chem up 4%
Sugar, engineering & bank stocks losers in midcap/small-cap space
OBC down 6%, Bank of Raj down 5.6%, BoI down 5%, IOB down 4.9%
NSE Advance Decline at 1:2
Total market turnover at Rs 66617 cr; FNO turnover at Rs 49968 cr
Buzzers
Chambal Fert up 7.5%; FY09 fertiliser subsidy seen at Rs 95,013 cr
Bajaj Finserve up 9%; sees buying interest after yesterday's re-listing
Firstsource up 7.3%; reports that Warbug Pincus is eyeing stake in the co; may look to merge with WNS
Aban Offshore: bagged around $10 m contarct today
Opto Circuit: Board Approves Bonus Issue Of~7 Shares For Every 10 Held
Losers
Eicher Motors down 8%; was up 17% during the day
Repro India down 9.5%; was up 11% yesterday on good results
Bank of Raj down 5.5%; was up 14.5% on back of board meet on May 31 to consider bonus issue
FNO Snapshot
Nifty rollover at 43%, Marketwide roll at 40%; net add 50 lakh shares in OI
Short build continue in Nifty futures; May Futures at 8 pts discount and June futures at 15 pts discount
Put writng seen at 4800 level
Nifty 4900 put shed 3.8 lakh shares in OI; Nifty 4800 put add 1.2 lakh shares in OI
Nifty 5000 call add 6.3 lakh shares, 4800 call add 3.8 lakh shares, 4900 call add 1.6 lakh shares in OI
Bank, cement, metal stcoks witness short rollover
Fertlizer stocks witness mild long build up in June series
Momentum stocks witness long unwiding and short rollover
Strong Rollover IOB 82% Ultratech 73% India Cem 72% UBI 71% Hindalco 70% BoI 62%
ICICI Bk 52% R COmm 51%
Low Rollover Neyveli Lignite 27% Indian Bank 25% Punj Lloyd 24% India Infoline 22%
Purvanakar 21% Hind Zinc 20%

Source: moneycontrol.com

Stock Ideas:HDIL, Havells India

PINC Research has maintained its buy rating on Housing Development and Infrastructure with an 18-month price target of Rs 1212 in its May 23, 2008 research report. "Housing Development & Infrastructure Ltd.’s (HDIL) Q4FY08 results were above expectations. Net sales doubled QoQ to Rs 9.8 billion and OPM expanded 2,175bps to 88.6% on back of lower cost of land in SRS projects. HDIL posted a net profit of Rs 7.1 billion (up 162%) owing to strong operating performance."
"We have valued HDIL’s core business NAV at Rs 714 per share (pre-bonus). The airport slum project is expected to add another Rs 498 per share, boosting its total NAV to Rs 1212 per share. Considering HDIL’s strong presence in MMR (Mumbai Metropolitan Region) and its expertise in high margin slum redevelopment business, we believe HDIL should trade at par with its NAV. Thus, we maintain our ‘BUY’ recommendation with an 18-month price target of Rs 1212," says PINC's research report.

PINC Research has mainatained its buy rating on Havells India with a 12-month price target of Rs 650 in its May 26, 2008 research report. "Havells India Ltd’s (Havells) consolidated Q4FY08 results were below expectations with Sylvania reporting a contraction in margins and flat net profits QoQ of Rs 78 million. While consolidated net sales rose by 2.6% QoQ to Rs 13.7 billion, OPM at 5.9% was lower by 150bps. Net profits rose by 5.4% to Rs 469 million. The growth was driven by lighting and electrical consumer durables segments."
"The CMP of Rs 470 discounts FY10E EPS of Rs 52.5 by 8.9x and the stock trades at an EV/EBIDTA of 6.7x FY10 estimates. We believe valuations do not factor in the improvement in Sylvania’s performance, which can have a significant leverage benefit in margins. With commencement of outsourcing to Havells, a significant ramp up in the same should accrue over the next 2-3 years. Thus, we maintain our ‘BUY’ recommendation with a 12-month price target of Rs 650," says PINC's research report.

Intraday Calls for 27th May

Today Indian Stock Market may open flat to positive and may see a small rally. A positive closing expected.

Intraday Tips/ Trading Calls:

OMAXE LTD.
LANCO INFRA (LITL)
RPOWER
BAJAJ HINDUSTAN
ESSAR OIL
SATYAM COMPUTER

For Levels and Targets download the file by CLICK HERE.

Short-Med Term Delivery Calls:
Premier Explosives 526247 (33.30) Target 45+
GULF OIL 506480 (127) Target 155+
INDO Borax & Chemicals 524342 (89) Target 120+

Good Luck

Stock Ideas: Koutons Retail, ITC

Prabhudas Lilladher has maintained its buy rating on Koutons Retail India with a price target of Rs 1140 in its May 26, 2008 research report. "Company increased number of stores from 687 in FY07 to 1,175 in FY08. It is looking to expand the store count to 1,800 in FY09 and 2,300 in FY10. This would entail expansion of space from 0.88m sq ft in FY08 to 1.45m sq ft in FY09 and 2m sq ft in FY10. Company plans to enter Middle East by tying up MBOs to place Koutons range in FY09. It would be opening 50 exclusive stores of Koutons there in FY10."
"Factoring in 6% equity dilution in FY10, we estimate EPS of Rs 35.8 in FY09E and Rs 57.0 in FY10E. At CMP of Rs 740, the stock is trading at 20.7x FY09E & 13.0x FY10E. We maintain BUY rating on the stock with price target of Rs 1,140 (20x FY10E and PEG of 0.3)," says Lilladher's research report.

IndiaInfoline has maintained its buy rating on ITC with a target price of Rs 258 in its May 26, 2008 research report. "ITC recorded 14.7% yoy growth in revenues at Rs 139.5 billion slightly below our expectation of Rs 140 billion during FY08 led by 7.7% yoy growth at Rs 138 billion in the core cigarettes segment. We believe ITC to have recorded a flat growth (or a decline of 1%) in cigarette volumes during FY08. The non-cigarette businesses recorded 18.9% yoy growth at Rs 98.4 billion driven by strong 48.6% yoy growth in FMCG [led by branded packaged foods - 57%, biscuits – 53%, confectionary – 40%, lifestyle retailing – domestic 26%, exports 17%], 10.5% yoy in agri, 12.6% yoy in paper and packaging and 11.6% yoy rise in hotels segment. The leaf tobacco exports recorded a new high in tobacco exports for the third consecutive year growing by 21% yoy in value terms and 27% yoy in volume terms (at 62mn kgs)."
"ITC has managed to sustain the extent of losses in the FMCG - others segment with a revenue growth of 50% and we expect this segment to turn profitable by FY10. With the entry into the personal care category, we expect ITC to become a tough competitor for HUL and GCPL, given its strong distribution network in the rural (6,400+ e-choupals and 21 Choupal Saagars) and urban markets. Also, strong cash flows from cigarette business can be invested in advertising heavily to build the personal care portfolio in the initial stage. At the current market price of Rs 205, the stock is trading at 18.2x FY10E EPS of Rs 11.7 per share. We maintain BUY on the stock with a one-year price target of Rs 258, an upside of 20.9%," says IndiaInfoline's research report.

Stock Idea: Chennai Petroleum Corporation

Chennai Petroleum Corporation, as expected, has posted very good results for year ended 31-03-08. Though the topline growth was marginal, profit growth was spectacular.

Its net sales rose 13% at Rs.28,018.60 crore. It managed to keep its operating expenses at consistent levels, it rose 11%. EBIDTA showed a 65% jump at Rs.2,618.10 crore. Interest outgo rose just 3% and depreciation by just 4%. Its PBT consequently shot up 95% at Rs.1,721.60 crore. Tax outgo was up 90%, yet it managed to show a spectacular 98% jump in PAT at Rs.1,122.90 crore.

The company, a subsidiary of Indian Oil Corporation (IOC), supplies its entire production to IOC at prices which it would pay to an international supplier. Hence, the biggest advantage which the company has is that its entire production is already booked but at existing international oil prices. It is not shackled under the Govt’s pricing. So it enjoys international rates, keeps its costs same and thus manages to reap a bounty.

The company is putting up another hydro diesel desulphurization unit at its Cauvery basin refinery. This would help the company overcome the problem of feedstock availability and expand its crude product line.

Chennai Petro is sure to have a fantastic year ahead, what with crude now scaling $ 135 per barrel and with predictions coming in of there being no let up in the prices. Currently quoted at Rs.348, if you have the stock, hold on, it could prove to be a goldmine.

Source: sptulsian.com

Markets Today

Markets Snapshot
Markets end near day's low in line with Asian markets
Nifty closes below 4900 since Apr 16; end down 71.5 pts at 4875Sensex down 301 pts at 16348
Midcap and small-caps witness profit booking
Nifty Junior down 3.5%, CNX Midcap, BSE Small-cap Indices down 2.3%
MTN Buzz Effect: Rel Comm down 5%, Bharti up 3.2%, Idea up 3.6%
BSE Bank Index down 3.3%, ICICI Bank down 4.5%, SBI down 2.4%, PNB down 2.1%
BSE Metal, FMCG, Cap Goods Index down nearly 2.5%
Index losers; BHEL down 4.6%, BPCL down 4.5%, Grasim down 4%, Ambuja Cem down 3.7%, ITC down 3.5%
BSE IT Index limits the fall, ends up 2%; Infosys, TCS up nearly 3%, HCL Tech up 1.8%
Losers; Sita Shree Foods down 13.5%, Bajaj Holding down 11.5%, South Indian Bank down 9%, Mercator Lines down 8.4%, Praj Ind down 7%, JP Associates down 6%
Momentum stocks: Chambal fert down 5.5%, Nag Fert down 4.5%, IFCO down 5%
Sugar losers; Bajaj Hind down 8.7%, Upper Ganges down 8.5%, Shree Renuka Sugar down 7.5%
Bank of Raj up 14.5%: board meet on May 31 to consider bonus issue
Bajaj Finserve ends at Rs 509 Vs listing price at Rs 545
Bajaj Auto ends at Rs 605 Vs listing price at Rs 725
NSE Advance Decline ratio at 1:7
Total market turnover at Rs 60414 cr; FNO turnover at Rs 44104 cr
FNO Snapshot
Nifty rollover at 37%, market wide 25%, stock futures rollover at around 22%
Nifty futures end at mild premium due to cash selling; net add 70 lakh shares in OI
Nifty 5000 put shed 6.5 lakh shares in OI, 5100 put shed 1.8 lakh shares, 4700 shed 1.5 lakh shares in OI
Nifty 4800 put add 2.7 lakh shares
Nifty 4900 call add 4.2 lakh, 4800 call 3.5 lakh, 5000 call add 2.75 lakh shares in OI
Rollover happening on short side; Bank, cement, metal witness short rollover
Unwiding continue to happen in put options
Source: moneycontrol.com

Intraday Trading Calls for 26th May

Today Indian Stock Market may open gap down and remains nagetive for the day. But some recovery expected from intraday lows.

Intraday Stock Tips/Trading Calls:

CROMPTON GREAVES
ADHUNIK METALICS
IDEA
IOC
CAIRN INDIA
SATYAM COMPUTER

For Levels and Targets download the file by CLICK HERE.
Others: Core Projects, Rama Paper (500357), Bank of Rajasthan (Bonus News)
Good Luck

Carbon Credits

Every cloud has a silver lining and here, in this gloom spread by the rising crude oil prices, one bright spark, which has emerged, is that of carbon credits.
Infact, on the recently launched carbon credit futures on the Indian commodity bourses, the valuation of carbon credits have gone up by over 10% in last one month. As crude oil is rising, many companies that trade in carbon credits have resorted to using cheaper fuel alternatives to reduce costs. They use coal instead of natural gas for power generation. As these increase emissions, the price of carbon credits is higher.
Carbon credits have two pronged advantages – firstly, it elevates the image of the company as being very socially responsible and secondly, carbon credits gets translated into money worth crore which adds on to the bottomlines. And the income derived from CERs is completely tax free.
India is the leader in the number of carbon credits issued so far and the number of clean development (CDM) projects registered with international CDM body. India has a market share of 32.01% in terms of total number of CERs issued, followed by China with a 20.21% share and Brazil at 12.65% share. 339 Indian companies have been registered with CDM for carbon credit trading. So the major companies that stand to benefit are – SKF, Gujarat Flurochemicals, Indian Acrylics, JSW Energy, JSW Steel, Shree Cement, RIL, Tata Chemicals, Tata Motors, Bharat Forge, Phillips Carbon being some of the prominent biggies that would benefit. (Take a look at the table given below)
India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits as USA has not signed the Kyoto Protocol and hence it cannot buy or sell. Today, carbon is being treated like any other commodity and the best part is that it is also now being traded on the Multi Commodity Exchange (MCX).
How this carbon credit market works is that typically, the companies in Europe, when they exceed the pollution norms, scout around for companies in the developing nations to buy carbon credits. This means that the companies in the developed country helps the company in the developing country to set up a new technology which is eco-friendly and in that way, it manages to earn carbon credits. The extent to which the emission gets lower, which means carbon dioxide emission gets lowered, as per standards fixed by UNFCC, the company gets credited in the developing country. This in a nutshell is how the carbon credit market works.
Today carbon credits are traded like any other commodity. There are buyers and sellers. Each carbon credit is sold at the rate of around Euro 22. It is traded on the European Climate Exchange. What this means is that for every one tonne less emission by a company, it will stand to gain Euro 22. These carbons can be held or sold now and being into future trading, one can also enter into contracts for a delivery to be taken in the next five years. Only those Indian companies that meet the UNFCCC norms and take up new technologies will be entitled to sell carbon credits.
The contracts expire every December and at that time, people who have bought or sold carbon will have to give or take delivery. They can take delivery even prior to December but that does not make sense as usually, December is the time of the year when European countries have to scout around for credits to meet the norms.
This platform to trade for the Indian companies is like a manna from the heaven as till now, they did not know whether the price which they were getting was fair or not. Transactions were made merely on bilateral agreement as there was no benchmark. But now, with this trading in MCX, companies, which were getting Euro15-18, now stand to gain over Euro 25.
So instead of tracking only companies that are into oil exploration, it would also be prudent to look at companies that have earned tonnes of carbon credit, which thanks to the rising crude prices and deadline of 2012 fast approaching, would reap a very rich harvest.

By Ruma Dubey (Source: sptulsian.com)

Stock Idea: GMR INFRA

As expected, GMR Infra has done well for itself for the year ended 31st March 2008.

For the year ended 31st March 2008, net sales rose 35% at Rs.2294.78 crore., of this power sector accounts for 64.29%, Airports 25.03%, Roads 4.78% and others 5.90%. EBITDA has gone up by 18.90% from Rs.562.01 crore to Rs.668.25 crore. PBT was up 33% at Rs.321.03 crore. PAT before minority interest was up 8.64% from Rs.241.77 crore to Rs.262.65 crore. And PAT after minority was at Rs.210.08 crore, up 20% from last years Rs.174.43 crore.
A loss of Rs.57.81 crore was incurred by GMR Hyderabad International Airport Ltd (GHIAL), a subsidiary of the company which commenced operations on March 23, 2008. The said loss for the quarter / year includes (a) Rs.26.61 crore, being non-recurring pre operative expenditure in the nature of revenue expenditure, and (b) Rs.23.38 crore being the inception costs, both of which are largely non-recurring in nature.
A provision of Rs.25 crore was made during the current quarter, by Delhi International Airport Pvt Ltd (DIAL), a subsidiary of the Company towards estimated arrears that may be payable on account of the implementation of VI Pay Commission recommendations for the employees of the Airport Authorities of India.
A loss of Rs.12.43 for the quarter (previous quarter Rs.35.21 crore ) and Rs.109.15 crore for the year (previous year Rs.85.13 crore) incurred by Vemagiri Power Generation, a 100% step down subsidiary of the company. It declared the Commercial Operations (COD) in September, 2006 but could not continue the operations due to non-availability of gas, resumed generation of power in February, 2008. The said loss is mostly due to interest on project borrowings and depreciation on idle assets which need to be charged to profit and loss account, in accordance with the GAAP (Generally Accepted Accounting Principles), during the post COD period regardless whether the project is in operation or otherwise.
On November 26, 2007, the company has made a Preferential offer to Qualified Institutional Buyers. It allotted 16,52,38,088 shares of Rs.2 each at a premium of Rs.238 per share on December 12, 2007 and received an amount of Rs.3965.71 crore. The net proceeds after the issue expenses are to be utilized towards capital expenditure for various projects under development (either directly or through our subsidiaries, joint ventures or affiliates) and general corporate purposes including working capital & strategic initiatives and acquisitions in India and abroad.
GMR Infra has four principal business verticals namely, Airports, Energy Highways and Urban Infrastructure. These are administered through Special Purpose Vehicles for the operations and management of various infrastructure projects. During the year, the company was able to commission the world class Rajiv Gandhi International Airport at Hyderabad ahead of schedule. During the year, GMR also built a satisfactory pipeline of projects. GIL forayed into a new sector with Krishnagiri SEZ. The company also made its first international footprint with Sabiha Gokcen Airport, Istanbul, Turkey, financial closure for which is likely to be achieved by 1st week of June.
The 388.5 MW gas based Vemagiri Power Plant resumed operations in February, 2008, ahead of the expected date of availability of gas. Though there is a temporary shutdown in May 2008, it will resume operations again shortly. Gas is expected to be continuously available from the second half of the current year.
The expansion and upgrading work at Delhi airport is progressing exceedingly well. Runway work is ahead of schedule and all other modernisation and upgrading works are on schedule. Runways and taxiways have achieved an overall progress of 86.20%. Terminal 1 registered an overall progress of 58.12%, while Terminal 2 recorded an overall progress of 80.58%. Terminal 3, scheduled to be commissioned by March 2010, has achieved an overall completion of 26.80%. Over Rs.3000 crore has already been spent on the development work at the airport, of the total project cost, exceeding Rs.8900 crore, post financial closure of the project.
The construction work of the four Highway projects is progressing well on schedule and will be commissioned before end of March 2009, within the concession timelines.

During the year, GMR won / acquired /signed MoUs for four hydro projects, two in Nepal and one each in Himachal Pradesh and Arunachal Pradesh, with an aggregate capacity of about 900 MW. The company also signed an MOU for a 1000 MW coal project in Chhattisgarh. The development work of all these projects is going at brisk pace. EPC contract for 1050 MW Orissa Kamalanga Project has been awarded while the 300 MW Alakananda Hydel Project has received environmental clearance.
GMR Energy Limited (GEL), 100% subsidiary of GIL, has entered into an MOU with Homeland Energy Corporation, Toronto, pursuant to whereof GEL acquired 10% equity interest in Homeland Mining and Energy SA (Pty) Limited, (HMESA), South Africa. HMESA owns three advanced development / pre-development stage coal project in South Africa. GEL also has non-obligatory option to acquire up to an additional aggregate 40% equity interest prior to December 31, 2008.

The land acquisition for Krishnagiri SEZ is progressing as per schedule and the company has already entered into arrangements for the acquisition of almost one third of the land requirement for the project.
GMR Infra would soon be diversifying into corporate jet business and would be investing Rs.800 crore for the same. The company will be buying three Faulkner and two Hawker aircraft along with one Bell helicopter for commencing charter operations by end of current financial year. The company has also placed an order for one more aircraft, which would be delivered only by 2010-2011. GMR Infra’s board of directors approved the proposal of amalgamation of GMR Aviation Pvt Ltd with the company.
GMR Infra is currently quoted at Rs.144, making it an excellent buy for safe 40-50% returns over next 10-12 months.

Source: sptulsian.com

Markets Today

Markets Snapshot
Markets end near day's low; Inflation at 7.82% Vs 7.83%
Sensex ends down 258 pts at 16650; Nifty down 79 pts at 4946
CNX Midcap Index down 1.35%, BSE Small-cap down 1.7%
Realty, Metal & Oil & gas Indices down nearly 2%
Oil & Gas: Cairn down 4.2%, ONGC down 2.8%, RIL down 2.6%
Metal stocks: Sterlite down 5%, Hindalco down 2.3%
Other Index losers; ITC down 4.4%, PNB down 4.3%, Tata Motors down 3.5%, TCS down 3%
Index gainers; BPCL up 3.6%, Bharti up 2.5%, Suzlon up 2.2%, HDFC up 1.8%
Midcap losers; Rel Cap,Bajaj Hind, India Cement down 5%, GVK Power, Lanco down 5.3%, Indiabulls Real down 4.8%
Losers; Manali Petro down 8%, Tamil Nadu Petro down 9.3%
Small-cap gainers; NEPC India up 20%, Tonira Pharma up 14.7%, Blue Bird up 11%, Graphite up 10.7%, Sita Shree up 8%
NSE Advance Decline at 1:3
Total market turnover at Rs 59391 cr; FNO turnover at Rs 41318 cr
F&O Snapshot
Nifty short build up continues, Nifty rollover around 30%
Short rollovers happeing in bank, cement & metal stocks
Nifty futures discount widens to 15 pts; net add 50 lakh shares in OI (June + May)
Nifty 5000 put shed 4 lakh shares
Nifty 4800 put shed 4.5 lakh shares
Nifty 5100 put shed 1.1 lakh shares in OI
Nifty June 4500 put add 2.2 lakh shares in OI
Put writers are unwinding positions and some of them are getting carried to June series
Strongest rollover
Ultratech: 60%
India Cem: 55%
Hindalco: 41%
HDFC bank: 30%
SBI: 25%

Intraday Trading Calls for 23rd May

A small but good rally expected today in Stock Market India. A positive closing expected.

Today's Intraday Trading Tips:

PRAJ INDUSTRIES
IDFC
GMR INFRA
Indiabulls Securities
HCC
NIIT TECH

For Levels and Targets download the file by CLICK HERE.

Others: Ispat Industries, Voltas & 3i Infotech.
Good Luck

Reliance Power Bonus

A unique opportunity is just a few days ahead but to grab it we haveto apply our sense. As per our past experience in stock market, we hadbeen seeing that if bonus is 1:1 than price is reduced to 50%, ifbonus is 1:2 than price is reduced to 33%. So on the same pattern, inrel power 3:5 bonus, price should be reduced to 5/8x100=62.5% , but itis not so in case of Rel Power. Dear all in all historical bonusexcept in Rel power, this bonus ratio is applied to Total Shares ofcompany Including Promoter. Anyone can check in bonus history that ifbonus is 1:1, than on ex date total shares of company become double soprice adjusted to 50%.

Take a example that if a company have 100 crore share, price of eachis 1000, so total market capital of company is 100x1000=1,00, 000 (1lack ) crore. Suppose bonus is issued 1:1 ratio than on ex date in themarket total shares are 200 crore, if we apply our sense than it isdefinitely not possible that with same price 200x1000= 2,00,000 (2lack crore) just over one night, So on ex date price will be 500 andmarket capital is same 200x500=1,00, 000 (1 lack) crore. Onlydifference is that before bonus company has liability of 100 croreshare of face value 10 each, so total face value(called as Paid upcapital) is 100x10=1000 crore. If company announce bonus of 1:1, thanface value (paid up capital) 200x10=2000 crore. Dividend is given onface value, if company announce dividend of 20% before bonus, thancompany liability is 1000x20/100= 200 crore dividend, And if companyannounce same dividens after bonus company has liability of2000x20/100= 400 crore.

So practically after bonus total market capital of company remain samebut total face value is increased proportionally and we get moredividend if announced after bonus.

Now come to Rel power. Here total share are 226 crore before bonus(anyone can check at NSE site). So paid up capital is 226x10(facevalue)=2260 crore . Bonus is 3:5 for non-promoter only(which arehaving only 22.8 crore share out of 226 crore), so after bonus totalshare are not 226x8/5=361. 6 crore but 203.2 crore(promoter) + 22.8(nonpromoter) + 22.8x3/5(=13. 68)(bonus) = 239.7 crore total. Plz gothrough 25.02.08 Rel Power NSE announcement on second page 17th line,that paid up equity shares are increase to 239.7 crore.

So, before bonus and after bonus company capital should be same(if nobig fall in market on ex date). Currently Rel power is quoting around400, so total market capital is 226 crore x 400=90,400 crore. Afterbonus total share are 239.7 crore, so keeping the same market capitalreduced price is 90,400/239.7= 377 which in other way 400x226/239. 7=377. Here scene is that Only 10% non promoter are given bonus and out of10% non promoter, if we leave FII, DII etc general public( retailinvestor, HNI )are 4.28%. And this 4.28% common public is unable todigest this opportunity that how 400x5=2000 can be 377x8=3016 just infew days. Did anyone see that FII, DII(MF) are crying on this issue,they are waiting for the opportunity when this common public willrelease their bonus share (which they are unable to digest) on ex dateat lower price and they will grab it. Dear investor compare the priceon the basis of total market capital before and after bonus. Some bigfish will try to low the price on and after ex date to compel smallinvestor to release their stake. Many are creating panic in marketthat ex bonus price will be around 300 or even less Than think in waythat 239.7 crore x 300=71,910 crore market capital. Did Anil announcebonus that company which was of 90,000 crore would become of 70,000crore. Believe on him he will take care for that but u all have tokeep patience for some time. Controlling price is also in public hand,if we all don't sell on ex date how price will come down, than onlyFII and DII will left and they are enough sensing the situation.

If u all can wait for three-six month than price will come around 500as project progress happen than imagine 400x5=2000 will be 500x8=4000,100% return in around 4 month. So don't think of selling but digestthe opportunity with sense(total market capital of company before andafter bonus). Best of luck.

Source: Internet

Markets Today

Markets Snapshot
Market closes near day's low on back of cues from US markets
Fed cuts GDP growth forecast, raises inflation and unemployment outlook
Sensex ends down 336 pts at 16907; NIfty down 92.2 pts at 5025NIfty finds constant support around 5020 during the day
CNX Midcap Index down 1.7%, BSE Small-cap Index down 1.4%
All BSE Sectoral Indiced end in the red
BSE Bank Index down 3% ahead of inflation data tomorrow; PNB down 3.7%, ICICI bank down 3.4%, SBI down 3.3%
BSE Realty Index down 2.7%; Unitech down 3%, DLF down 1.7%
BSE Cap Goods Index down 2.4%; BHEL down 1.3%, L&T down 2.5%
Index losers; Suzlon down 6%, Tata Motors down 4%, Idea down 3.9%, Rel Infra down 3.9%
Profit booking seen in tea and petro-related stocks
Tea Stock: Williamson Magor down 9%, McLeod Russel down 6.4%, Assam Co down 3.5%
Petro-related stock: Andhra Petro down 8.2%, Supreme Petro down 8.3%, Sah Petro down 7.6%
Profit booking; Videocon Appliance down 9%, MIC Elec down 7%, Lanco down 7%
Re-listing: Sylph Tech ends at Rs 200 Vs re-listing price at Rs 152 (hits a high of 800 during the day)
Buzzers: Manali Petro up 7.8%, Gujarat Siddhe up 10%, Shree Digivijay up 9.2%, Ispat up 4.4%
NSE Advance Decline ratio at 1:3
Total market turnover at Rs 64678 cr Vs Rs 61843 cr on Wednesday
Total NSE F&O turnover at Rs 45076 cr Vs Rs 39481 cr on Wednesday
F&O Snapshot
Nifty futures end at 2 pts premium after trading around 5-10 pts discount through out day
Fresh sohrts seen in Nifty futures; add 38 lakh shares in OI
Hugh Unwinding seen in Nifty Put options
Short Positions seen in Real Estate, Banking & Fmcg Sector
Nifty 5100 put shed 3 lakh shares in OI
Nifty 5000 put shed 2.65 lakh shares in OI
Nifty 5200 put shed 1.4 lakh shares in OI
Nifty 4800 put add 2.65 lakh shares in OI
Momemtum Stocks Unwinding :
HOEC down 5.7%; sheds 9.7 lakh shares in OI
Chambal Fert down 5.3%; sheds 37 lakh shares in OI
RNRL down 3.5%; sheds 13.5 lakh shares in OI
Praj Ind down 3%; sheds 5.5 lakh shares in OI
JP Hydro 3.4%; sheds 4.3 lakh shares in OI
Fresh Shorts:
IDFC down 4.5%; adds 16.4 lakh shares in OI
Suzlon down 5.8%; adds 14.4 lakh shares in OI
SBI down 3.6%; adds 5.1 lakh shares in OI
Short Built up Continues :
GMR Infra down 5%; adds 15.1 lakh shares in OI
Unitech down 3.5%; adds 5.3 lakh shares in OI
ICICI Bank down 3.9% ; adds 3.9 lakh shares in OI
NTPC down 2.2%; adds 3.9 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 22nd May

Indian Stock Market may open nagetive and see some selling presure as all global markets are trading lower and US Markets closed dip in red yesterday. But Indian stock market can recover again from lower levels and a flat to nagetive closing expected.

Today's Intraday Trading Tips:

PRAJ INDUSTRIES
IFCI
VOLTAS
HDIL
NEYVELI LIGNITE
RENUKA SUGAR

For Levels and Targets download the file by CLICK HERE.

Others: Keep an eye on Hind Oil Exploration, Selan Exploration, Videocon Industries, Essar Oil etc. as crude is trading very high at $135.

Good Luck

Stock Idea: CEAT Ltd., Titan Industries

Sharekhan has maintained its buy rating on Ceat with a revised price target of Rs 196 in its May 20, 2008 research report. "Ceat's Q4FY2008 results are ahead of our expectations, mainly on the sales front. The net sales of the company grew by 14.8% to Rs 646.2 crore in the quarter. The original equipment (OE) sales continued to decline whereas the replacement sales grew strongly by 28.2% in Q4FY2008. The operating profit margin (OPM) declined by 180 basis points to 6.0% as a result of a higher raw material cost. Consequently, the operating profit declined by 12.3% to Rs 38.5 crore."
"We maintain our positive view on Ceat, as the stock is trading at very cheap valuations. The volume growth could be higher than our expectations in view of the improvement in the OE volumes, the company's ability to pass on any further rise in input prices to its customers and the cooling off of the key raw material prices. At the current market price of Rs119 the stock is trading at 5.2x its FY2010 earnings of Rs24.5 and enterprise value (EV/earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.8x. We maintain our Buy recommendation on Ceat with a revised price target of Rs 196," says Sharekhan's research report.

Hem Securities has recommended a buy rating on Titan Industries with a target price of Rs 1630 in its May 20, 2008 research report. "The company has posted excellent results in the year 2008. Net sales have surged to Rs 3046 million showing a growth of 42.57%. The revenues from the jewellery and watches segment have been on a continuous uptrend. Net profit margins have been under pressure but the ongoing expansion plans of the company will enhance the profitability too. EPS for the year ended March 2008 comes out to Rs 33.24 against Rs 22.50 in 2007." "The company has posted a CAGR of 39.02% in the topline and 91.74% in the bottomline over a period of 3 years. The diversified range of products and strong brand presence in the market are expected to leverage its growth. New ventures like Titan eye+ and Gold plus are targeted to tap opportunities in the unexplored segments. The company’s foray into Precision engineering is also expected to become a significant contributor to the revenues in the coming years. Presently, the stock is trading at Rs 1212 which is at 36.46 times to its earnings and 12.07 times to its book value. Keeping in mind the prospects offered by the company, we initiate a ‘BUY’ signal on the stock with a target price of Rs 1630 in the medium to long term investment horizon, expecting an appreciation of 34%," says Hem's research report.

Markets Today

Markets Snapshot
Markets recover from days low in line with Asian markets
Sensex ends up 13 pts at 17243; recovers nearly 200 pts from days low
Nifty ends up 12.7 pts at 5118; recovers nearly 70 pts from days low
Midcap and small cap continue to outperform major indices
CNX Midcap Index up 0.78%; BSE Small-cap Index up 1.5%
BSE Oil & Gas Index up 2.36%; Nymex July crude hits new high of $ 130.28/bbl
Oil & Gas stocks; RIL up 2.5%, RPL up 3.8%, BPCL up 2.25%
BSE Metal Index up 1.24%; Metal stocks; Nalco up 5.2%, Tata Steel up 3%
BSE Bank Index down 1.4%; HDFC Bank down 3.5%, ICICI Bank down 1.7%, PNB down 1.5%
Tea and petro stocks buzz in midcap and small cap space
Tea stocks; Harrison Malayam, Duncans up 20%, Jay Shree Tea up 17%
Petro stocks; Manali Petro up 20%, Andhra Petro up 17%, Supreme Petro up 16%
Other buzzers; Videocon Appliances up 20% for 2nd day runinng
Relisting: KGN Ind shares suspended during the day; ends at Rs 15000 Vs relisting price of Rs 72, volumes traded at 827 shares
NSE Advance Decline at 2:1
Total market turnover at Rs 61843 cr Vs Rs 52860 cr on Tuesday
Total NSE F&O turnover at Rs 39481 cr Vs Rs 33290 cr on Tuesday
F&O Snapshot
Nifty futures prem at 7 pts Vs 8 pts discount yesterday; add 19.3 lakh shares in OI
Some p[rofit booking seen in the last half an hour of trade; Nifty OI addition came down to 19.3 from 29 lakh shares
5000 put add 1.85 lakh shares in OI; 4800 put shed 1.5 lakh shares in OI
5000 call add 1 lakh shares in OI
Momentums stosk witness long additions like Chambal Fert, RPL, Nag fett, Ispat, Praj, RNRL, HOEC, Essar Oil
Short covering seen in Rel Power, IDBI, lanco, India cement, BHEL, DRL
Fresh shorts seen in NTPC, HUL, ICICI Bank
Buzzers in F&O
Praj up 11%; add 10.3 lakh shares in OI
Aptech up 9.3%; add 71 thousand shares in OI
IFCI up 7.8%; add 64 lakh shares in OI
HOEC up 7%; add 14 lakh shares in OI
Chambal fert up 6%; add 29 lakh shares in OI
source: moneycontrol.com

Intraday Trading Calls for 21st May

Indian Stock Market may open with gap down. A smart recovery expected from lower levels. Flat to nagetive closing expected.

Today's Intraday Trading Tips:

CAIRN INDIA
VOLTAS
STERLITE INDUSTRIES
VIDEOCON INDUSTRIES
PFC
RENUKA SUGAR

For Levels and Targets download the file by CLICK HERE.

Others: GMR Infra, TTML, Adlabs & NTPC all these stocks may recover very fast from day's low.
Good Luck

Markets Today

Markets Snapshot
Markets recover from day's low, however profit booking seen at higher levels
Sensex ends down 205 pts at 17230.2; recovers nearly 100 pts from day's low
Nifty ends down 53 pts at 5105; recovers nearly 30 pts from day's low
CNX Midcap Index down 0.7%, BSE Small-cap Index outperforms all indices, ends up 0.44%
Interest rate sensitive sectors like Bank & Realty witness selling pressure
BSE Bank Index down 2.4%; SBI down 3.14%, HDFC Bank down 2.6%
BSE Realty Index down 1.9%, Unitech down 2.9%, DLF down 2%
Index losers; Rel Infra down 4.8%, BHEL down 3.5%, ABB down 3.1%, Bharti down 2.7%
Index gainers; Cairn India up 8.5% ((UBS upgrades to Buy from Sell and price target to Rs374 (from Rs246))
Sterlite Ind up 4.7%, Suzlon up 3.4%, May Sell Some Stake In REpower
Buzzers; Mundra Port up 14%, Videocon Ind up 16.5%, Adlabs up 6.6%, S Kumars up 5.4%, Sasken up 8%, Graphite India up 15.2%
Buzzers; Videocon Appliance, Tamilandu Petro, Hilton Metal up 20% each
NSE Advance Decline at 5:6
Total market turnover at Rs 52860 cr Vs Rs 57402 cr on Friday
Total NSE F&O turnover at Rs 33290 cr Vs Rs 37877 cr on Friday
F&O Snapshot
F&O action muted; very stock specific
Nifty seen short buildup; trades at a 10-15 point discount; Adds 34 lakh shares in Mar series
Turnover lower than last weeks average
Nifty 5100, 5200 Call adds over 1 lakh shares each
Nifty 5000, 4800 put sees unwinding of open interest
Long positions seen in Cairn, Suzlon, R Power, JSW Steel, SRF
Fresh shorts seen in NTPC, SAIL, Unitech, JP Associates, PFC, DLF
Unwiding of long positions seen in momentum stcoks like Chambal Fert, Nag Fert, IFCI, GMR Infra, Alok, RNRL, Arvind MIlls
Long Positions
Cairn India up 7.7%; add 24 lakh shares in OI
Suzlon up 3.7%; add 17.5 lakh shares in OI
R Power up 4.3%; add 8.7 lakh shares in OI
HDIL up 4.2%; add 8.6 lakh shares in OI
Unwinding of long positions
Chambal Fert down 2.6%; shed 13.8 lakh shares in OI
GMR Infra down 1.3%; shed 9.15 lakh shares in OI
Nag fert down 2%; shed 8.7 lakh shares in OI
RNRL down 2%; shed 4.6 lakh shares in OI

Source: moneycontrol.com

Investment Pick: Voltas

A Tata group company, the market did not take too kindly to the results of Voltas. The financial performance for year ended 31-03-08 can be labeled as consistent, not trailblazing, which is probably what the market expected.
The net sales of the company rose 26.8% at Rs.3,044.50 crore. Its operating expenses rose 22%. Yet, it managed to post a 76% higher EBIDTA at Rs.293.90 crore. PBT was up 38% at Rs.307.50 crores and PAT rose 12% at Rs.208.30 crore. On an equity of Rs.33.07 crore, its EPS stands at Rs.6.30.
Higher volumes managed to offset the rising prices and this helped its translation into better profits. Its engineering and machine tools division faced some slowdown.
The company is now looking at acquisitions, mainly in organic business and is scouting around in South Africa, North Africa, Vietnam, Singapore and Middle East.
Its order book was at Rs.800 crore in domestic market and Rs.3,800 crore in international market. The company is expecting manpower shortages in current fiscal in overseas market and to retain employees, it is considering pay hikes. Rising manpower costs is something that most companies will have to now learn to grapple with.
Voltas continues to be a good investment buy at the current price.

Source: sptulsian.com

Intraday Trading Calls for 20th May

Stock Market India may open flat and see some profit booking. It may remains rangebound of +/- 1%. A Nagetive closing expected.

Today's Intraday Trading Calls:

ORCHID CHEMICAL
GMR INFRA
BANK OF BARODA
KOLTE PATIL
S KUMAR NATIONWIDE
CAIRN INDIA

For Levels and Targets Download the file by CLICK HERE.

Others: Hind Oil Exploration, Selan, RPL as crude oil trading at all time high around $127.

Good Luck

Multibagger: Control Print (India) Ltd.

Control Print (India) Ltd.: Good growth potential
BSE Code: 522295
Book Value: Rs.47.53
EPS: Rs.9.15
P/E: 5.40
Dividend: 20%
Market Cap: Rs.37.18
Performance: Market out-performer
Target: Rs.130-160 in 18 months
Introduction: Control Print (India) Ltd. (CPL) began in 1991 with a dream of bringing Indian packaging at par with the international benchmarks in terms of coding & marking and is the undisputed market leader in the coding and marking machinery with a market share of around 40%. It has a product range of contact coders, superior touch coders, specialized metal marking systems, sophisticated ink jet coders and advanced laser coders that can be used to print on any type of surface like plastic, glass bottle, paper, wood, steel etc. The company operates in a single segment, viz. Coding & Marking machines and consumables thereof.
The company has entered into a technical collaboration with KBA-Metronic AG, Germany for manufacture of Industrial Ink-Jet Printers at Nalagarh, Himachal Pradesh. The company has also entered into technical collaboration for Thermal Transfer Overprinters, Large Character Printers and ink-jet consumables. KBA-Metronic AG, Germany, is the undisputed worldwide technology leader in Coding, Marking and Printing. The venture will lead to Industrial Ink-jet Printers manufactured in India based on the know-how transferred from KBAMetronic. It is worth noting that KBA-Metronic AG is a wholly owned subsidiary of Koenig & Bauer AG (KBA), the world's third largest printing equipment manufacturer.
The company will also be manufacturing KBA-Metronic's wide range of specialized ink formulations for various applications. With this tie-up, the company will be the first Indian manufacturer of industrial inkjet printers. The company has already set up a manufacturing and assembly facility for marking and coding devices at its facility in Nalagarh, Himachal Pradesh and which has already started commercial production from FY08. It shall he expanded for production of the Industrial Ink-jet Printers.
The company plans to export printers to other emerging markets in conjunction with KBAMetronic. The company has launched its ‘Conprint’ range of consumables for ink-jet printers and has also started marketing the full range of products.

Shareholding Pattern: The promoters hold 38.2% while the investing public holds 57.25% of which United India Insurance holds 4.52%, promoters have increased their holding from 36.57% to 38.2% in FY08.
Financials: For Q3FY08, its total income was flat at Rs.9.26 cr. as against Rs.10.45 cr. in Q3FY07 while the net profit was lower at Rs.1.04 cr. as against Rs.1.81 cr. in Q3FY07. This reduction in sales and profit was due to changeover of products.
Investment Rationale:
(1) Earlier, CPL made preferential allotments of 1,25,000 equity shares of Rs.10 each at a premium of Rs.53 per share i.e. Rs.63 per share as per SEBI guidelines to the promoters.
(2) The company declared a dividend of 20% for FY07 and may reward shareholders again in FY08.

(3) CPL plans to develop its land in a prime area of Mumbai, for commercial purpose in FY09. It will first develop its property at Chandivali, Andheri East, Mumbai. In fact, the value of its land is more than its market cap of Rs.37.18 cr. This is an important trigger for re-rating the scrip.
(4) CPL has commenced the commercial production of Conprint Hot Ink Coders and its consumables Ink Rolls at Nalagarh in Himachal Pradesh. The products are at par with similar imported products and it has received repeat orders from the users.

(5) The cumulative margins of printer and consumable sales are expected to expand further in FY09 and FY10.

(6) The company’s topline and bottomline is expected to see good growth from marketing of high end digital printers. The digital printers are used to print variable information on the Aluminum foil packaging of pharmaceutical tablet strips or on the packaging labels.
(7) One of the promoters has recently increased his holding in the company.
(8) The company’s clients include Coca Cola, Pepsi, P&G, Shaw Wallace, Cipla, Dr. Reddy’s Laboratories, Novartis, Rane Brakes, Tata Steel, SAIL, Hindalco, Jindal Iron, Aksh Optifibre and the like.
(9) With organized retailing coming off age in India, packaging has assumed importance. As a result, this technology has readymade domestic and overseas markets.
Concerns:
(1) Entry of new players could increase the already strong cut throat competition existing in the industry. With the market set to expand rapidly, many new players can be expected.
(2) Any delay in employing the latest technology could reduce growth targets. While CPL is lready in talks with many large companies for digital printers, the low cost machine sales would depend on its ability to market the product efficiently.
Conclusion: CPL is in a relatively new industry with mammoth growth potential. It is also the only listed company in this segment. This makes comparing valuations difficult and complex. It is worth understanding that CPL derives majority of its revenue from FMCG, Pharmaceutical and the Auto sectors. Since CPL is dependent on these sectors, it ought to get valuations closer to sectors dependent on these sectors. But the fact that it derives revenue from multiple sectors reduces its dependence on one particular sector. As a result stability in earnings is high. Profit visibility is also expected to improve as its printer base continues to grow over the next few years resulting in high consumable sales.
Considering these factors, the CPL share may get a valuation lower than the core sectors but closer to the dependent sectors. At a P/E of only 5.4, Book Value of Rs.47.53, Dividend of 20% and EPS of Rs.9.15, the scrip is available at an attractive CMP of Rs.49.45 and could get re-rated soon. The scrip is near its 52-week low of Rs.41 and thus has a minimum downside. In the short-term if the scrip is able to cross Rs.57 with good volume then the next target could be Rs.70-75. The stock is in the oversold territory and a bounce back could be expected very soon. Please keep a strict Stop Loss of Rs.45.5 in case it starts to slide or if the market dynamics change suddenly. I place a target of Rs.130-160 in 18 months time frame.

By Suman Mukherjee (Source: Moneytimes Internet)

Stock Ideas

Although Accurate Transformers Ltd. (Code: 530513) (Rs.130) is unable to fully capitalise on the boom in the power sector and registered a normal growth it’s still a value buy at the current level. For Q4FY08, it posted 10% rise in sales as well as net profit to Rs.95 cr. and Rs.3.40 cr. respectively. Accordingly for FY08, sales improved by 15% to Rs.197 cr. and PAT grew by 25% to Rs.7.90 cr. This translates into a healthy EPS of Rs.27 on its very tiny equity of Rs.2.97 cr. Due to shortage of working capital funds, the company is running at a very low capacity utilisation. Earlier, it tried to raise capital by a preferential allotment of around 31 lakh warrants at Rs.56 to promoters but it did not get SEBI approval due to some technical reason. The company has huge manufacturing facilities spread across Ghaziabad, Sikandrabad, Greater Noida, Dehradun and Haridwar with an installed capacity to manufacture nearly 8000 MVA of transformers. At a very modest discounting by 6-7 times, the share price can move up to Rs.175 in 6-9 months.
******
On an year-on-year (YoY) basis, Q4FY08 results of Tera Software Ltd. (Code: 590020) (Rs.50.50) look very disappointing as revenue declined by nearly 50% to Rs.16 cr. and PAT fell by 40% to Rs.3 cr. But if we examine quarter-on-quarter (Qo Q) basis, it posted the highest sale among all the four quarters of FY08. This implies that the company may have completed some big e-governance project in Q4FY07. Still for FY08, it posted marginal growth in revenue to Rs.59 cr. and 15% increase in PAT to Rs.12.25 cr. after making the highest tax provision of 38%. It reported an EPS of Rs.11 on its equity of Rs.12.50 cr. and may declare 25% dividend for FY08. Of late, the company has been empanelled as a vendor for the rollout of IT services in the government sector through National Informatics Centre Services Inc. for a period of one year, which can be extended by another year. Looking at its strong order book position, it may end FY09 with sales of Rs.75 cr. and profit of Rs.16 cr. i.e. an EPS of Rs.13. Also as per reliable sources, the company is planning to dispose off its 20 acres surplus land in Hyderabad, which is worth Rs.40 cr. Once the deal is finalised, its share price will shoot up.
******
Amar Remedies Ltd. (Code: 532664) (Rs.29.40) is a well-known manufacturer of ayurvedic, herbal and cosmetic dental care, personal care, skin care, beauty care & healthcare products like tooth pastes, toothpowders, shampoos, creams, lotions, shaving gels, balm & pain relieving ointments. Besides, it has successfully developed 24 different ayurvedic and herbal medicines and has also obtained the FDA approval for the manufacture and sale of these medicines, which include medicines for hypertension, diabetes, and heart ailments. Recently, it came out with excellent results for the December 2007 quarter as sales jumped by 70% to Rs.73 cr. and PAT increased by 40% to Rs.5.60 cr. However, the company is yet to start commercial production at its newly set up Dehradun facility as it is awaiting the clearance certificate the from pollution control authorities. On the back of aggressive capex, it has tripled its gross block from Rs.35 cr. to almost Rs.100 cr. For FY08 ending 30th June 2008, it can register sales of Rs.300 cr. with PAT of Rs.20 cr. i.e. an EPS of Rs.8 on its equity of Rs.26.20 cr. A safe bet in the current market sentiments.
******
Mazda Ltd. (Code: 523792) (Rs.73.35) is among the few engineering companies in the world manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilisers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly, its product profile is segmented into Vacuum systems, Valves, Air pollution control equipment, Crystallisers and Evaporators. It came out with satisfactory results for Q4FY08 and ended FY08 on quite a buoyant note. For FY08, its sales improved by 15% to Rs.60.50 cr. whereas profit increased by 30% to Rs.6.60 cr. Hence it registered a very healthy EPS of Rs.15.50 on its small equity of Rs.4.26 cr. Importantly, the company has technical collaboration with world renowned Croll-Reynolds Inc., USA, which holds 12% stake in the company. To cater to the increasing demand, it is setting up a third unit at an investment of approx. Rs.5.6 cr. Despite the promising future, this hi-tech engineering company is available very cheap at an enterprise value of around Rs.40 cr. and is a screaming buy.

Source: moneytimes (internet)

Stock Idea: Unichem Lab

Karvy Stock Broking has maintained its buy rating on Unichem Laboratories with a traget price of Rs 225 in its May 16, 2008 research report. "The company's net revenues for the quarter were up by 3.2 % to Rs 1383 million. The growth has been driven by a 11 % growth in domestic formulations business revenues which has been offset by degrowth in exports. Operating margins were lower by 500 bps to 14.2 % mainly on account of lower gross margins and higher excise. Profits for the quarter were higher by 13 % to Rs 153 million."
"We upgrade our FY 2009E EPS nos by 7.3% to Rs 22.1 and maintain our FY 2010E nos at Rs 31.3. We upgrade our price target by 10 % to Rs 225 based on 10.2x FY 2009E. The Company is quoting at attractive valuation of 6.6X FY09E. We maintain our BUY rating on Unichem," says Karvy's research report.

Market This Week

Market This Week
Sensex up 4%; Nifty up 3.5%
CNX Midcap Index up 2.5%; BSE Small Cap Index up 1.2%
BSE Metal Index up 9.5%, BSE IT, Bank Index up 5% each
BSE Cap Goods Index up 4.2%, BSE Healthcare Index up 4%
Nifty Gainers: Hindalco up 19%, Suzlon up 13%, SAIL, RComm up 12%, PNB up 13%
Nifty Gainers: Ranbaxy up 8.3%, Nalco up 19%, Tata Steel up 5.6%, TCS up 6.7%
Nifty Losers: ONGC down 8%, BPCL down 4.2%, ACC down 4.8%, Bajaj Holdings down 4.6%
Midcap Gainers: Chambal Fert up 21.7%, JSW Steel up 25%, Mercator Lines up 16%
Midcap Gainers: Lanco Infra up 15%, NIIT Tech up 10%, Orchid Chem up 10%, BILT up 8.5%
Source: moneycontrol.com

Markets Today

Markets Snapshot
Markets end in the green amid volatile trade
Sensex ends up 81.4 pts at 17435; Nifty up 42.5 pts at 5158
CNX Midcap Index up 0.8%, BSE Small-cap Index up 0.86%
BSE Metal Index up 2%; SAIL up 7.5% post results
BSE Bank Index up 1.8%; PNB up 6.5% on back of good numbers declared yesterday
Index gainers; BPCL up 5.8%, Suzlon up 5.2%, Cairn India up 4.6%, Tata Power up 3.6%, Ranbaxy up 3.25%
BSE IT Index down 0.5%; HCL Tech down 2.3%, Infosys down 1.1%
Result Impact: SAIL, Bongaingaon Refinery
Buzzers: Assam Co up 10%, Harrisons Malayam up 11.6%, Tamilnadu Petro up 20%, Hyderabd Ind up 20%
Buzzers; Chambal Fert up 8.5%, Guj NRE Coke up 6%, BOI up 5.7%, Dish TV up 5.5%, Nag Fert up 5.5%
Losers; Welspun India down 5.3%, Megasoft down 6.2%, BF Utilitiues down 5%
NSE Advance Decline at 2:1
Total market turnover at Rs 57402 cr Vs Rs 58476 cr on Thursday
Total NSE F&O turnover at Rs 37877 cr Vs Rs 38196 cr on Thursday
F&O Snapshot
Nifty futures discount at 12 pts; add 7.3 lakh shares in OI
Traders buying 5100 call option and hedging it by shorting Nifty 4900, 5000 witness put wriitng and 5100 witness call writing
Long positons witness in momentum stcoks like Chambal Fert, Nag Fert, Ispat and stcoks like SAIL, Suzlon
Sugar stcoks witnmess unwinding of long positons and fresh shorts
Long Positions
Brigade Ent up 14.5%; add 1.68 lakh shares in OI
Chambal Fert up 9.5%; add 44.2 lakh shares in OI
Nag Fert up 5.2%; add 32 lakh shares in OI
Ispat up 2.3%; add 22.7 lakh shares in OI
HCC up 3%; add 10.5 lakh shares in OI
SAIL up 7.8%; add 7.2 lakh shares in OI
Suzlon up 4.6%; add 6 lakh shares in OI
HDIL up 4.35; add 4.3 lakh shares in OI
Short Covering
India Cement up 2%; shed 5.3 lakh shares in OI
Petronet LNG up 4.7%; shed 3.5 lakh shares in OI
Aptech up 2%; shed 2.6 lakh shares in OI
BOI up 5.25%; shed 1.6 lakh shares in OI
Sugar Stocks
Bajaj Hind down 2.4%; shed 1.6 lakh shares in OI
Triveni Eng down 2%; shed 2.8 lakh shares in OI
Shree Renuka down 1.5%; add 12.5 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 16th May

Market may open positive but face profit booking at higher levels. It may remains positive but with very high volatility and again a positive closing expected.

Today's Intraday Trading Picks:

MERCATOR LINES
VOLTAS
CHENNAI PETRO
INDIABULLS SECURITIES
YES BANK
HIND OIL EXPLORATION

For Levels and Targets download the file by CLICK HERE.
Others: IT Sector: Infosys Tech, Satyam Computer, 3i Infotech & Prithvi Info.

Good Luck

Stock Idea: FSL, Redington India

PINC Research has maintained its buy rating on Firstsource Solutions with a 12-month price target of Rs 66 in its May 14, 2008 research report. "Firstsource Solutions Ltd. (FSL) reported sales of Rs 3.8 billion in Q4FY08, a flat QoQ growth. However, operating profits posted a 7.4% QoQ rise to Rs 622 million, as the previous quarter had one-off items. Net profit growth, though was subdued due to a provisioning for FCCB’s (Rs 195.6 million) which resulted in only a 1.9% QoQ growth to Rs 210 million."
"At the CMP of Rs 40, FSL is trading at a P/E of 14.3x and EV/EBIDTA of 7.6x. Though FSL could face short term uncertainties in key segments we continue to believe that its offerings are expected to witness greater traction due to the under penetration of outsourced BPO services. Hence, as FSL possesses proven capabilities to capture these opportunities, it has the potential to report robust earnings growth and stable free cash flows which should enable its valuations to align with that of its global peers. Thus, we maintain our ‘BUY’ recommendation with a 12-month price target of Rs 66," says PINC's research report.

PINC has maintained buy rating on Redington India with target price of Rs 445 in its May 13, 2008 research report. "For Q3FY08, Redington posted consolidated net sales of Rs25.9 billion, a 14% YoY growth. This was on back of consistent growth in the distribution business across geographies. While domestic revenues (52% of net sales) grew 18.4% YoY at Rs13.5 billion, overseas revenues rose 7.9% YoY to Rs 12.4 billion. Scale up in volumes has improved its operational metrics and its PBIT margins have expanded 50bps in two years to 2.3%. Net profit contribution ratio from both markets is at 50/50, because of low effective tax rate overseas i.e. 5%, where as Indian business attracts highest tax rate at 35%. Going forward, we expect higher contribution from India because of higher growth prospects in same."
"Considering the track record and consistent ability to deliver SCM and support services solutions for IT and consumer lifestyle products, we believe Redington is well positioned to maintain its market share in highly competitive scenario. At CMP of Rs 351, the stock is ruling at a P/E of 9.3x and EV/EBITDA of 7x in FY10E. Assuming a terminal growth rate of 6% and 13% cost of equity, we arrive at a DCF value of Rs 445 for the stock excluding NBFC valuations. We initiate coverage with a ‘BUY’ recommendation on a 12-month perspective" according PINC report.

Markets Today

Market Snapshot
Market witness strong session led by across sector buying
Sensex ends up 375 pts at 17353; Nifty up 103.5 pts at 5115
CNX Midcap Index up 1.5%, BSE Small-cap Index up 1.3%
BSE Cap Goods Index up 3.5%; L&T up 5%, BHEL up 3.2%, Suzlon up 3%
BSE Realty Index up 3.4%; Unitech up 4.25%, DLF up 3.5%
BSE Oil & Gas Index up 2.6%; RIL up 3.6%, ONGC up 1.3%
Index gainers; Hindalco up 6%, Nalco up 4.1%
PNB, R Comm up 5.5% on better than expected results
Satyam down 3% as co loses appeal against HC judgement in Upaid case
Sugar stocks gain; Triveni Eng up 8.3%, Bajaj Hind up 6.7%, Shree Renuka Sugar up 6%, Balrampur Chini up 4.5%
NSE Advance Decline ratio at 3:1
Total market turnover at Rs 58476 cr Vs Rs 51837 cr on Wednesday
Total NSE F&O turnover at Rs 38196 cr Vs Rs 32919 cr on Wednesday
Buzzers
Mercator Lines up 14% on back of better than expected numbers
Lupin up 11% on back of better than expected numbers
Madras Aluminiuim up 10%; board to mull stock split
Nelco up 10%; Q4 Net Profit At Rs 9.2 Cr Vs Rs 4.3 Cr
F&O Snapshot
Nifty futures premium ends flat; add 20.1 lakh shares in OI
Short covering seen in large cap stcoks like RIL, DLF, Unitech, R Comm and cap goods stcoks
Fresh longs seen in sugar stocks
5000, 4800 Nifty put seen most active
5100, 5200 Nifty call seen most active
Short covering in Biggies
RIL up 3.3%; shed 2.3 lakh shares in OI
R Comm up 4.8%; shed 2.2 lakh shares in OI
Unitech up 4.6%; shed 1.7 lakh shares in OI
DLF up 3.2%; shed 1 lakh shares in OI
JP Associates up 2%; shed 6.2 lakh shares in OI
Short Covering in Cap Goods
L&T up 4.8%; shed 1.3 lakh shares in OI
Crompton Greaves up 7%; shed 1.1 lakh shares in OI
BHEL up 3.2%; shed 85 thousand shares in OI
Fresh longs in sugar stocks
Shree Renuka up 6%; add 33 lakh shares in OI
Balrampur Chini up 5%; add 9.6 lakh shares in OI
Trivein Eng up 8.3%; add 6 lakh shares in OI
Fresh longs
IFCI up 2.2%; add 28 lakh shares in OI
RNRL up 2.8%; add 16.5 lakh shares in OI
Hindalco up 5%; add 9.5 lakh shares in OI
Source: moneycontrol.com

Intraday Calls for 15th May

Today Indian Stock Market may open positive but remains very volatile. A positive closing expected.

Today's Intraday Trading Calls:

Mercator Lines
JP Associates
IOC
Essar Oil
Sterlite Industries
3i Infotech

For Levels and Targets download the file by CLICK HERE.

Good Luck

Stock Idea: Petronet LNG

Angel Broking has upgraded its rating on Petronet LNG to buy rating with a target price of Rs 90 in its May 9, 2008 research report. "Dahej expansion to 12.5 mmtpa (current 6.5 mmtpa) is slated to come on stream July onwards in a phased manner. Expanded capacity will help Petronet process more Spot volumes till the 2.5mmtpa contracted supplies from Qatar commence October 2009 onwards. For the next 2-3 years, growth will primarily be driven by Spot LNG and the expanded capacity will benefit from the situation."
"The company is now also diversifying into different segments like power, port development, etc., which is expected to generate value over a period of time. We have valued Petronet on DCF methodology with a Cost of Equity of 15.2% (high as it is a high beta stock), Cost of Debt - 10% and WACC - 9.2%. The stock is currently available at 9.8x FY2010E EPS of Rs7.7. Based on our DCF valuation model, we upgrade the stock to a Buy, with a target price of Rs 90," says Angel's research report.

Markets Today

Markets Snapshot
Markets end near day's high led by metal & tech stocks
Sensex ends up 225 pts at 16978; Nifty ends up 54 pts at 5012
CNX Midcap Index up 0.9%, BSE Small-cap Index up 0.5%
Metal Index up 4.36%; base metal prices gain due to earthquake in China
IT Index up 3.9% as rupee hits 42.665
Hind Zinc up 17%; Zinc prices was up nearly 6.5% ; China accounts for about 39% of the global zinc production
Index Gainers; DRL up 8%, TCS up 7.3%, Infy up 4.35%
Metal pack: Hindalco up 6.8%, Sterlite up 5%, Tata Steel up 4%
Index losers; ONGC down 6%, GAIL down 3.3% on concerns of oil subsidy burden
Satyam off days high as the co loses appeal against HC judgement in upaid case
Buzzers; Chambal Fert up 6%, Orchid Chem up 7.4%, Alok Ind up 9.4%, NIIT Tech up 5.2%, Deccan Aviation up 5.5%
Lanco Infra up 11%; wins 8000 cr rs Vizhinjam international terminal container project in Kerala
NSE Advance Decline ratio at 5:4
Total market turnover at Rs 51837 cr Vs Rs 58431 cr on Tuesday
F&O Snapshot
Nifty futures end at mild premium; add 16.5 lakh shares in OI
Some unwiding of long positions seen in later part of the day
Volumes in FNO remain low; Total NSE F&O turnover at Rs 32919 cr Vs Rs 38108 cr on Tuesday
Momentum, metal stocks saw addition of long positions
ONGC, Satyam, IOV witness addition of short posiitons
Long Positions
IFCI up 3.6%; add 26.4 lakh shares in OI
Ispat up 4.6%; add 19 lakh shares in OI
Arvind up 5%; add 14 lakh shares in OI
RPL up 3.1%; add 13 lakh shares in OI
Tata Steel up 4.6%; add 11 lakh shares in OI
Hindalco up 7.6%; add 8.8 lakh shares in OI
Polaris up 5.9%; add 5.5 lakh shares in OI
Lanco Infar up 13%; add 2.5 lakh shares in OI
Fresh Shorts
ONGC down 5.9%; add 11.3 lakh shares in OI
Satyam down 1%; add 6.5 lakh shares in OI
IOC down 4.5%; add 2.8 lakh shares in OI
Short Covering
Sterlite up 4.5%; shed 2.4 lakh shares in OI
Cairn India up 2.16%; shed 2.8 lakh shares in OI
TCS up 6.5%; shed 1.2 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 14th may

Market may open gap down but after that smart recovery expected.

Today's Intraday Picks:

INDIABULL REALEST
NALCO
UNITECH
SAIL
ORCHID CHEMICAL
3I INFOTECH

For Leves and Targets download the file by CLICK HERE.

Good Luck

Stock Idea: JAI CORP

Jai Corp has got major market fancy on the bourses. The reason could also be partly attributed to the fact that one of the promoters of the company, Anand Jain is best buddy of Mukesh Ambani. Call it reflected glory or anything else, for the markets, any association with Reliance is reason enough!

The company, engaged in steel, plastic processing, and spinning yarn has now evolved itself more into a realty company, having taken up development of SEZs. It has posted very good results for the year ended 31st March 2008.

The net sales of the company rose 23% at Rs.334.14 crore and the surge in ‘other income’ also helped boost the topline and thus the bottomlines. PBT rose 76% at Rs.148.32 crore and PAT rose by a sharp 91% at Rs.141.10 crore. On an equity of Rs.17.85 crore, the company posted an EPS of Rs.8.05 on a face value of Re.1 per share.

The company has recommended a dividend of 100% and the promoters have irrevocably waived their entitlement to dividend on equity shares held by them for the financial year 2007-08.

The company has now chalked out plans to invest around Rs.1000 crore in two SEZs - Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ (MSEZ). Both are being co promoted by Reliance Industries. It is also developing a greenfield port in Rewas, jointly promoted by Maharashtra Maritime Board, Amma Lines, Reliance Logistics and Jai Corp. The company plans to invest in building airport, roads and bridges.

There is very little floating stock in the market, with 72.54% being held by the promoters and 10.23% being held by the FIIs. The public shareholding is just 12.40%. That and the association with Reliance, explains the high fancy for the stock.
Currently quoted at Rs.700, the share price dipped despite the robust performance. Stay invested.

Source: Sptulsian.com

Markets Today

Market Snapshot:
Markets end near day's low amid political noise through out the day
Oil stocks under pressure after profit booking in upstream cos and markeing/ refining cos hit on FM comment
FM not okay with sharing 57% of oil cos revenue loss; not looking at hiking auto fuel prices now
Sensex ends down 108 pts at 16753; slips 332 pts from day's high
Nifty ends down 55 pts at 4956; slips 110 pts from day's high
CNX MIdcap, BSE Small-cap ends flat
Oil & Gas Index down 2.5%; Cairn India down 8%, ONGC down 2.8%, BPCL down 2.4%, RIL down 2%
Metal stocks gain; Nalco up 6.5%, Hindalco up 2.9%, Tata Steel up 1%
Steel Secretary working on Cabinet proposal to mitigate export duty impact: Sources
MphasiS up 10% on back of expectations of open offer from HP
Buzzers; Rane Holding up 20%, LG Bros up 12%, Orchid Chem up 7.7%, Gwalior Chem up 5.4%
Losers; HOEC down 4.8%, Oswal Chem down 4%, Essar Oil down 3.9%, GMR Infra down 3.6%
NSE Advance Decline ratio at 1:1
Total market turnover at Rs 58431 cr Vs Rs 60102 cr on Monday
Total NSE F&O turnover at Rs 38108 cr Vs Rs 41000 cr on Monday
F&O Snapshot
Nifty futures ends at 7 pts discount after trading in premium for last 5-6 days
Nifty futures add 27.5 lakh shares in OI
Put writing witness at 4800, 4900 level
Unwinding of long positions seen in momentums stocks
Short covering seen in Orchid, BILT