Stock Idea: Tata Chemicals

Tata Chemicals, the Tata Group promoted inorganic chemical and fertiliser major, has posted exuberant results for the year ended 31st March 2008.
On a consolidated basis, though its net sales improved only marginally by 3.67% at Rs.6023.14 crore, the over 4 times rise in other income helped give a fantastic boost to the bottomlines. Other income for the year was at Rs.566.74 crore of which Rs.487.47 crore came in via profit on sale of investment.
The company’s soda ash business performed very well despite floods at Mithapur and operational difficulties at Magadi. Its urea operations performed strongly with production for the year under review at a record high. Erratic availability of phosphoric acid however impacted phosphatic fertiliser operations. Revenues for FY08 from the fertiliser business stood at Rs 2,506 crore. The plants at Babrala recorded its highest urea production this year, despite natural gas supply interruptions
The operating expense of the company for FY08 was at Rs.5048 crore, of this Rs.2060.07 crore was due to raw material costs and Rs.938.73 crore was due to power and fuel costs.
Consequently EBIDTA was up 46% at Rs.1618.58 crore. The company also made an exceptional gain of Rs.76.70 crore on exchange rates and this pushed up the PBT by 57% at Rs.1175.87 crore. The company’s tax outgo was marginally down and this further helped the Pat, which was up by a whopping 90% at Rs.964.40 crore. On an equity of Rs.230.98 crore, it posted an EPS of Rs.43.51.
Tata Chemicals, the second largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, sold over 680,000 tonnes of soda ash during the financial year. Higher input costs, especially those of coal, coke and limestone impacted production. Though at the same time, price increases of soda ash on the back of strong demand, helped mitigate these threats.
Work on debottlenecking of the urea plant at Babrala is progressing on schedule and is expected to be completed by December 2008. It has started the integration process of the acquired US based soda ash business of General Chemical Industrial Products Inc.in March for $ 1,005 million, from Harbinger Capital Partners. Civil construction at site for the ethanol project at Nanded has commenced and is expected to be commissioned the plant by the end of this year. It has also acquired land in Madurai for setting up a bio diesel pilot plant.
Like all the old generation Tata companies, even here, the promoters stake is very low at 29.15%. Institutions hold 40.91%. Interestingly, Hindustan Unilever holds a 2.36% stake in the company.
A month ago, the stock was quoted at Rs.410, closer to its 52-week high of Rs.440 and today it is quoted at Rs.291, which is closer to its 52-week low of Rs.231. Stay invested and at further decline you can consider long term investment.

Source: Sptulsian.com

Intraday Trading Calls for 30th June

Indian Stock Market is likely to start recovery from today. A positive trading expected but with volatility.

Today's Intraday Stock Tips/Trading Calls:

CAIRN INDIA
RPL
HIND OIL EXPLORATION
CIPLA
SATYAM COMPUTER
PUNJ LLOYD

For Levels and Targets CLICK HERE.

Today's Watch List: PSTL, VOLTAS, Mercator Lines.

Good Luck

Stock Ideas: Mindtree Ltd., Polaris

MindTree Ltd, an IT and R&D services company, announced its consolidated results for the fourth quarter ending March 31, 2008 and FY08.
For Q4FY08, the company’s total income grew by 37.3% YoY and 14.6% QoQ to Rs.217.80 crore. PAT rose 41.5% YoY and 66.9% QoQ to Rs.34.70 crore. IT services constituted 77.8 per cent of total income and the remaining came from R&D services. Revenue from India increased to 8.9% of total revenue, compared with 4.7% in Q4FY07 while the revenue from USA declined marginally to 62.4% from 64.7%.
For FY08, on a consolidated basis, total income grew by 28.4% over the previous year to Rs.767.78 crore. PAT increased by 14.7% over the previous year to Rs.103.28 crore. The EPS grew to Rs 27.45 against the guidance of Rs 24.50.
102 new customers were added during the year, bringing the current active customer base to 206, including 41 Fortune Global 500 companies. Its employee strength was increased to 5,640 (as on March 31, 2008), a net addition of 1,478 people during the FY. Of this, 934 were recruited from campuses across the country. It also commenced operations from its own SEZ development center in Chennai and the SEZ facility in Bangalore.
For FY09, the company has given a robust guidance. It is expected to earn $228 million to $238 million in software revenue, indicating a growth of 24-29% as compared to that of FY2007-'08. Net profit is expected to be $31.7 million to $33.1 million, representing a growth of 23-29%. EPS is expected to be in the range of Rs 32.7-34.1, a growth of 19-24%. And when the company has issued this guidance, it was made on the basis of Rs 39.40 per US dollar. Since then the rupee has depreciated substantially and this would translate into profits surpassing the given guidance.
Currently at Rs.427, stay invested and buy for long term if it dips below Rs.400-395.

Polaris : For the year ended 31 March 2008, the total income was Rs 1,117.41 crore. Revenues from the sale of the Intellect range of banking products comprised 19.6% of total revenues, with 12 installations in areas like wealth management, credit cards and core banking solutions.

Operating profit (EBITDA) was Rs 136.30 crore and profit after tax (PAT) was Rs 73.21 crore. The company recorded 22% growth in total income in dollar terms. This is quite good considering that the rupee had appreciated during this period. The company posted a net profit of Rs.73.21 crore, and EPS for the year was at Rs.7.42 per share.
For the quarter ended 31 March 2008, total income was Rs 290.06 crore. Operating profit (EBITDA) was Rs 36.21 crore and profit after tax (PAT) was Rs 21.45 crore. The company billed the orders in Q4FY08 at Rs 39.83 a dollar, Rs 4.92 less than that the billing rate in the same quarter in the previous year. It has hedged the revenues for the FY09 at an average rate of Rs 40.07 against the dollar. The dollar is currently hovering in the range of Rs.42.60/42.80. The company has given a guidance of 20% CAGR for the current year.
Polaris bagged 14 new deals in the quarter including a master services agreement with a Fortune 10 bank in North America. It also increased its utilisation rate by 200 basis points to 76.55% on a q-o-q basis.
The board considered a proposal of buy-back of its equity shares and had discussions on this subject. In the course of the discussions, members drew attention to the real estate investments made by the company and suggested that best options to maximise shareholder value from these investments be explored. Accordingly the board decided to defer its decision on the buy-back of equity shares and appointed a committee to give recommendations to enable the board to take a decision at its next meeting.
Currently quoted at Rs.78, best to stay invested, what with the dollar improving against the rupee.

Source: sptulsian.com

Intraday Trading Calls for 27th June

Indian Stock Market will open gap down of about 350-450 points for Sensex and 100-150 points for Nifty. In Mid-session some recovery expected but remains nagetive with high volatility.

Today's Intraday Stock Tips/Trading Call:

Buy following stocks at decline to yesterday's close With Stop Loss of 1.5% :

CAIRN INDIA (271) around 265

HIND OIL EXPLORATION (131) around 128

SHIV VANI OIL (526) around 515-520

CIPLA (216) around 212

GUJARAT ALKALI (175) around 170-172

RPL (173) around 167

Good Luck

Stock Idea: Idea Cellular

Angel Broking has maintained its buy rating on Idea Cellular in its June 25, 2008 research report. "We view the deal with Spice favourably and even though it does seem as though the price that Idea is paying for Spice is a bit steep, it should be looked at in light of the benefits that the deal will give Idea over a longer-term time frame. Typically, such acquisitions are always made with a time-frame of at least a few years in mind, given the time taken for the synergies to be realised, cost savings, qualitative benefits to play out and EPS accretion."
"Undoubtedly, in the short-term, Idea's equity will see a 23% dilution, leading to lower EPS and its margins will also witness some pressure due to the lower profitability of Spice, but this can be viewed as 'newer circles' (Punjab and Karnataka) that are already profitable and going ahead, the situation can be improved with better execution skills and operating leverage. We are working on our projections for Idea to factor in the effect after the merger with Spice. We view the deal as a long-term positive, even though a short-term negative impact cannot be ruled out. We maintain a Buy on the stock and our Target Price is under review," says Angel's research report.

Stock Idea: Spice Jet

Karvy Stock Broking has maintained its buy rating on SpiceJet with a revised target price of Rs 50 in its June 26, 2008 research report. "We expect SpiceJet to report revenues of Rs 4352 million for the quarter as against Rs 4085 million reported during 3QY08. Revenues would increase on account of increase in the number of departures. We expect the company to report net loss of Rs 805 million as against net profit of Rs 93 million reported during 3QFY08."
"For FY09E we expect the company to report net loss of Rs 1568 million, which is 7.8% higher then our previous loss estimate of Rs 1455 million. On account of the above mentioned reasons, we are downgrading our price target by 16.7% from Rs 60 to Rs 50. During the recent past the stock has fallen sharply and therefore even though we are downgrading the target price the stock still remains a BUY," says Karvy's research report.

Markets Snapshot
Markets end near days high on tripple witching day
Strenghth seen in Nifty, Sensex; Midcap Index end in the red
Market held on back of Reliance Ind
Sensex ends up 201.7 pts at 14422; Nifty ends up 63.2 pts at 4316
CNX Midcap Index ends down 0.62%; BSE Smallcap Index up 1%
BSE Oil & Gas Index up 2.8%; RIL up 4.85%, RPL up 2.2%
BSE IT Index up 2%; Wipro up 6.3%, Satyam up 3%, Infy up 2.2%
Index Gainers; Tata Comm up 9.3%, Ambuja Cem up 7%, Power Grid up 5.7%, Cipla up 4.2%, HDFC up 3.2%'
Index Losers; Hindalco, R Comm, Maruti down nearly 2.5%, Ranbaxy down 2.1%
NSE Advance Decline at 7:5
Total market turnover at Rs 1 lakh cr Vs Rs 98568 cr on Friday
F&O turnover at Rs 79103 cr Vs Rs 81000 cr on Tuesday
Small-cap Buzzers
Ray Ban - Ray Ban India may delist, receives proposal from minority shareholders. At present, Ray Ban Indian Holdings Inc.holds 70.54% of the fully paid-up capital of the Company
Atlas Copco Stock down 10%Defers buy back decision
Kaveri TelecomStock down 20%Q4 Net profit at Rs 3.1 cr Vs Rs 6.1 (QoQ)Q4 Net Sales at Rs 38.6 cr Vs Rs 43 cr
LG BrosRenold to acquire Industrial Chain Biz of LG Balakrishnan For 5.7 m Pounds
Rane Engines: recent re-listingRe-listing price at Rs 275 on June 24
Madras FertSubmits Financial Restructuring package to govt
SpiceMarket believes that Spice group will pump more money in Spice Mobile
F&O Snapshot
NIfty July futures end at 65.85 pts discount; add 1 cr shares in OI Nifty Rollover at 72% Vs 66% in May series
Marketwide rollover at 80% Vs 82% in May series
Aggressive short rollover seen in Nifty futures; cost of rollover expanded in the last half an hour
Low rollover seen in stock futures as some investors not ready to pay rollover cost to next series
Fertilizers stock sees fresh long build-ups after new policy announcement
Momentum Stocks Ispat down 2.3%; add 1.5 cr shares in July seriesIFCI down 4.3%; add 1.38 cr shares in July seriesTTML down 3%; add 1.2 cr shares in July seriesRNRL down 3.4%; add 88 lakh shares in July series
Options : Nifty July 4300 call adds 25.5 lakh shares Nifty July 4400 call adds 22.5 lakh shares Nifty July 4000 put adds 25.3 lakh shares Nifty July 4100 put adds 24.5 lakh shares
Rollover Analysis-Cement, Metal & Banking stocks continue to witness strong rollovers -Auto and Oil & Gas have seen a good spurt in rollover -Rollovers in Chemical and Pharma remain weak-Lowest rollover seen in IVR Prime (55%), Crompton Greaves (55%), Matrix (57%), Divi's (59%), United Phosphorus (60%)-Highest rollover seen in Ultratcech (95%), Syndicate Bank (90%), OBC (89%), Sobha (84%), Hindalco, Tata Comm (82%), L&T, SAIL (80%)

Source: moneycontrol.com

Intraday Trading Calls for 26th June

Indian Stock Market may open with gap up but remains very volatile as Expiry day today. A positive closing expected for the Stock Market India.

Today's Intraday Stock Tips/Trading Calls:

HCC
MERCATOR LINES
CENTURY TEXTILE
CIPLA
ASIAN ELECTRONICS
INDIABULLS REALEST

For Level and Targets CLICK HERE.

Today's Watch List: SATYAM COMPUTER, VOLTAS, PSTL & CAIRN INDIA.

Good Luck

Markets Today

Markets Snapshot
Markets end at day's high led by short covering
Sensex ends up 113.5 pts at 14220; recovers nearly 500 pts from day's low
Nifty ends up 61.5 pts at 4,252.6; recovers nearly 160 pts from day's low
Nifty slips below 4,100 during the opening trade
CNX Midcap Index ends up 0.8%, BSE Small-cap Index up 0.7%
BSE Metal, Oil & Gas Indices up nearly 3%, BSE Realty Index up 2.15%
Deal of the day: Idea to acquire 40.8% stake in Spice Comm at Rs 77.3/sh
Telecom Buzzers; Spice Comm up 33%, R Comm up 7.3%, Bharti up 3.9%, Tata Comm up 4.1%
Realty Buzzers; Unitech up 7.9%, DLF up 4.3%
Index Gainers; Tata Steel up 4.4%, Reliance Infra up 4.1%, RIL up 3.5%, TCS up 3.8%
Stocks under pressure; Indiabulls Real down 7.4%, Panacea Biotec down 7.5%, OCL India down 8%
NSE Advance Decline at 7:5
Total F&O turnover at Rs 81,000 cr; highest since Jan 21, 2008
Total market turnover at Rs 98568 cr Vs Rs 87406 cr cr on Tuesday
F&O turnover at Rs 81000 cr Vs Rs 70250 cr on Tuesday
Buzzers-LG Bros up 20%; Renold to acquire Industrial Chain Biz Of~LG Balakrishnan For 5.7 m Pounds-Niraj Cem up 20%; Recent listing-GHCL up 10%; Dow Chem to increase prices by another 25% in July-Spice up 17.2%; market believes that Spice group will pump more money in Spice Mobile -Sasken Comm, HOEC, BOI, Punj Lloyd, Shree Renuka, Rel Cap
F&O Snapshot
Nifty rollover at 53%, Market wide at 53%
Short covering seen in the Nifty futures
Nifty June at 8 pts discount Vs 19 pts disc in the morning
July futures at 42 pts disc Vs 50.7 pts disc in the morning
Cement and construction continued to witness strong rollovers
Options: Nifty 4200 July call adds 12.9 lakh shares Nifty 4300 July call adds 10.3 lakh shares Nifty 4000 July put adds 6.8 lakh shares
Star Trade: Sasken up 14%; adds 2.4 lakh shares in July
Fresh Longs: Hind Oil up 9%; adds 12 lakh shares in July Century Text up 9.3%; adds 5.5 lakh shares in July Bombay Deying up 8.4%; adds 2.1 lakh shares in July Essar Oil up 4.3%; adds 8.6 lakh shares in July Reliance Ind up 3.5%; adds 16.7 lakhs shares in July Tata Steel up 3.8%; adds 21.9 lakh shares in JulyRPL up 4.5%; adds 1.1 cr shares in July SAIL up 3.2%; adds 55 lakh shares in July
Short Covering: Bank of India up 8.5%; sheds 1.7 lakh shares in July
Fresh Short : Oriental Bank dn 6%; adds 3.3 lakh shares in JulyYes Bank dn 4.5%; adds 6.6 lakh shares in July

Source: moneycontrol.com

Intraday Trading Calls for 25th June

Indian Stock Market BSE & NSE may open with gap down due to Repo and CRR hike by RBI to control the inflation. But some recovery expected from lower levels today. I think that Markets is going to touch the bottom today or tomorrow. Markets may starts recover and see a good rally in the month of July.

Today's Intraday Stock Tips/Trading Calls:

RPOWER

RPL

RCOM

NTPC

INDIABULLS FINANCIALS

GSS AMERICA INFO

For Levels and Targets CLICK HERE.

Good Luck

Indian Stock Market at Long Term

When the going gets rough, you can either decide to mop around and think that life generally sucks or else you can decide to take life as it comes and learn to look at life all the time with a “glass half full” attitude. And we being the die-hard optimists we always are, its time to look at the brighter side of things.

The one big positive news which came in today was that of advance tax collections. This is the time of the year when corporate's start paying the advance taxes for the fiscal 2008-09. Typically, the collection figures of Q1 and Q2 gives an indication of the way in which the cookie will crumble in the coming months. And going by the writing on the wall right now, looks like things are indeed not as bad as they look right now.

As per data released by the Revenue Department, the advance tax pay-out of India Inc is estimated to have recorded a 30% increase for the June 15 instalment on a year-on-year basis. ONGC is the number one tax payer and PSUs continue to dominate the list of the top 10 tax payers like always. Private sector saw Reliance Industries, Tata Steel and ICICI Bank. Infact ICICI Bank, which did not find a place in the final list of top ten advance taxpayers’ for 2007-08, has returned to the top ten list in the June 15 instalment with an advance tax payment of Rs 340 crore (Rs 250 crore).

Why so much hullabaloo about advance tax figures, right? Advance tax is paid every three months, four times a year and in four instalments:
On or before the 15th June --- Not less than fifteen per cent.
On or before the 15th September--- Not less than forty-five per cent, as reduced by the amount, if any, paid in the first instalment.
On or before the 15th December --- Not less than seventy-five per cent, as reduced by the first and second instalments.
On or before the 15th March --- which is 100%, as reduced by the amount paid in the earlier instalments.

And once the advance taxation is declared it will soon be followed by the first quarter (Q1) results of FY08-09. These will start streaming in by July 10th and that in the true sense will dictate the market sentiments. That has been the case till now but this year, the prices of crude will also to a large extent dictate the market trends. This year, given the unprecedented rise of crude prices and its impact on economic growth and inflation, the indices will sway to the tune of the crude prices. If crude manages to settle down lower due to increased supply by Saudi in July that will give the much needed relief to inflation and help recoup some of the lost economic growth. That will help the index settle at 14,000 levels.

When the markets fell last week, the banking stocks were beaten down to the pulp by the investors. But the advance tax figures indicate that the banking sector might actually have a very robust Q1 in current fiscal. Union Bank of India’s advance tax payment was 88% higher YoY and SBIs tax payment of Rs.663 crore for the April-June 2008 period was the highest. The IT sector has the rupee once again to its advantage and this is bound to reflect much positively for the IT companies.

The next few weeks will be tough and inflation would be in double digit but the much needed cushion would be provided by the Q1 results and the trend of the results, in the true sense would be the trigger. If the Q1 results are good then it will help hold the markets at the 14,000 levels. But if the results turn out bad, then markets could slip to 13,000 levels.

There is pain in the market right now and will continue to give pain for some more time. But the advance tax figures indicate that the long term story continues to remain good. Take the opportunity of the falling market to buy into good value stocks, with a long term perspective. If you had missed the bus earlier and were left watching others make money, then maybe this is the time for you to make up for that lost opportunity.

One bad year cannot wash away all that has been achieved till now. There is a slowdown, so use that to your advantage to build a powerful portfolio. There is always morning after a dark night, sometimes the night is longer but the morning is always there!

By Ruma Dubey

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Market's Today Summary

Markets Snapshot
Markets slide during the mid of the day on European jitters; US Fed decision announcement tomorrow
Sensex ends down 187 pts at 14106.58; slips below 14,000 for the 1st time since Aug 21, 2007 during the day
Nifty ends down 75.3 pts at 4191; closes below 4,200 for 1st time since Aug 24, 2007
CNX Midcap Index down 1.65%, BSE Small-cap Index down 1.8%
All BSE sectoral indices end in the red
BSE Metal Index down 3.5%; Nalco down 9%, Sterlite down 5.2%, Tata Steel down 4.65%
BSE FMCG Index down 2.5%; HUL down 5.4%, ITC down 2%
Index losers; Sun Pharma down 6.7%, Tata Power down 6.25%, Siemens down 5.3%, L&T down 4%
Biggest Losers; ONGC down 3.5%, NTPC down 4%, Infy down 2.8%
Siemens, L&T, Tata Comm, HDFC Bank, MUL, M&M hit news 2008 lows
Re-listing: Rane Engine closes at Rs 146 Vs re-listing price at Rs 275
Losers; Radico Khaitan down 12.6%, C&C Cons down 10.7%, Adani Ent down 9.8%, Educomp down 9.4%, Welspun Guj, Wockhardt down 8%
NSE Advance Decline at 1:3
Total market turnover at Rs 87406 cr Vs Rs 83165 cr on Monday
F&O turnover at Rs 70250 cr Vs Rs 66917 cr on Monday
F&O Snapshot
Nifty Rollover at 39%; Market wide rollover at 38%
Nifty Futures sees fresh short build up in today’s trade
Nifty July discount widens to 50 point in intraday trade
Options:Nifty 4100 put adds 9.1 lakh sharesNifty 4200 put adds 2 lakh sharesNifty 4300 call adds 2.9 lakh sharesNifty 4500 call adds 1.7 lakh shares
Star Trade: Nalco dn 11.3%; adds 9.1 lakh shares in July series
Fresh Shorts : WWIL dn 8.7%; adds 10.8 lakh shares in July series Welspun Guj dn 8.7%; adds 8.7 lakh shares in July series HUL dn 7.8%; adds 16.4 lakh shares in July series R Power dn 7%; adds 13.4 lakh shares in July series Tata Steel dn 6.7%; adds 12 lakh shares in July series NTPC dn 6.5%; adds 35 lakh shares in July series
Roll Overs: India cement 63% Bank of Baroda 63% Bank of India 55% Hindalco 54% PNB 53%Grasim 53% Hdfc Bank 51% Unitech 49% SBI 49%

Source: moneycontrol.com

Markets Today

Markets witnessed sharp sell off for fifth consecutive trading session on the back of heavy selling from foreign investors, especially European investors. It seemed like bears become uncontrollable for bulls. Sensex and Nifty have touched new 2008 lows; Nifty slipped below 4200 and the Sensex below 14000 mark, the crucial levels. Heavy sell off in European markets also fueled to further weakness in the markets. Midcap and small cap stocks also hammered a lot.
It was a mild bounce back in opening trade after heavy sell off in last few sessions but that could not sustain for long. Markets had turned choppy and in the second half of session, it caught again in bears' grip. Last hour of session was very critical for the markets; heavy sell off has seen across sectors.
Reliance Industries was the only stock, which tried to hold back in the green and being supportive for the whole markets but crack in other heavyweights have put more selling pressure. The stock has touched a high of 2133.70 (5.5% over previous close) before closing the day at Rs 2066.20, up 2.18%.
Both indices closed at new 2008 lows. The Nifty ended below 4,200 for the first time since August 24, 2007, even the Sensex breached psychological level of 14000 in the last five minutes of trade but managed to back above that level at close. The Nifty touched a low 4156.10 before ending at 4191.10, down 1.76% or 75.3 points. The Sensex finished at 14,106.58, down 186.74 points or 1.31% after hitting an intraday low 13,991.31.
Turnover traded by the markets stood at Rs 87406.31 crore, which has been improving since last few sessions. This includes Rs 11760.63 crore from NSE Cash segment, Rs 70250.13 crore from NSE F&O and the balance Rs 5395.55 crore from BSE Cash segment.
Market breadth was weak; about 783 shares have advanced while 2064 shares declined. Nearly 280 shares have unchanged.
Amongst frontliners, NALCO was down -9.09%, Sun Pharma -6.77%, Tata Power -6.25%, HUL -5.37%, Tata Steel -4.60%, NTPC -3.92% and ONGC -3.61% while Suzlon Energy gained 5.09%, BHEL 2.85%, Ranbaxy Labs 2.33%, HDFC 2.28% and Reliance Ind 2.18%.
Metal Index has underperformed other indices, down 3.52% or 487.51 at 13,368.82 due to heavy selling in NALCO, Sterlite Ind, Tata Steel, Jindal Steel, Hindalco and Sesa Goa.
FMCG stocks remained under selling pressure through the day, which includes Marico, HUL, Dabur India, ITC, Nestle and Colgate. Index fell 2.54% at 2,146.63.
BSE IT Index plunged 2.17% at 4,141.51 on the back of weakness in Infosys, Tech Mahindra, Mphasis, Wipro, HCL Tech, TCS and Satyam.
Auto stocks like Bajaj Auto, Hind Motors, Hero Honda, M&M, Ashok Leyland, Maruti Suzuki and Tata Motors lost the road. Index was down 2.06% at 3,842.77.
Banking stocks like Allahabad Bank, Kotak Mahindra, HDFC Bank, Axis Bank, Oriental Bank and ICICI Bank were also draggers for the markets. Bankex slid by 130.92 points or 1.97% at 6,499.66.
Realty Index crashed by 1.72% at 5,098.44, which led by selling in Orbit Corporation, Mahindra Life, HDIL, Omaxe, Indiabulls Real and DLF.
Power stocks like Tata Power, Reliance Power, NTPC, Power Grid Corp, GVK Power, Torrent Power, GMR Infra and Reliance Infra lost ground. Index fell 1.64% at 2,398.09.
Capital Goods Index was down 157.41 points or 1.46% at 10,639.60 due to sell off in Siemens, Rel Ind Infra, Bharat Elec, L&T, BEML, Bharat Bijlee and Thermax. However, buying has seen in Suzlon Energy, BHEL and Alstom Projects.
Pharma stocks also butchered, which includes Wockhardt, Sun Pharma, Piramal Health, Orchid Chemical, Matrix Lab and Lupin. Index plunged 1.29% at 4,165.61. On the other hand, Panacea Biotech, Ranbaxy Labs, Cadila Health, Dr Reddy's Labs and Dishman Pharma have gained.
Oil & Gas Index ended with just 0.28% at 9,146.43. Selling has seen in GAIL, RNRL, ONGC, Petronet LNG, Cairn India, Essar Oil, IOC, BPCL and HPCL. However, Reliance Industries gained.
Midcap Index fell 1.76% or 102.49 points at 5,712.74 and the Small Cap Index down by 129.88 points or 1.82% at 7,006.42. Amongst midcap stocks, Educomp Sol, Spice Comm, Welspun Guj, Wockhardt, Phoenix Mills, Bajaj Holdings, Adhunik Metalik and BGR Energy slipped over 7%.
In the small cap segment, Simplex Project, Bliss GVS, Radico Khaitan, C and C Const, Surana Ind, Andhra Cemen, EIH Assoc Hotel, Mukta Arts and Kirloskar Pneum lost over 9%.
Most active counters on the bourses were Reliance Ind, Reliance Communication, L&T, Reliance Infrastructure, Reliance Petroleum and BHEL.
On the global front, Asian markets ended mixed. Shanghai was up 1.54%, Jakarta 0.11% while Taiwan Weighted fell -1.76%, Kospi -0.3%, Hang Seng -1.14% and Nikkei -0.06%. European markets crashed.

Source: moneycontrol.com

Intraday Trading calls for 24th June

Market may see small but good relief rally today. A positive closing expected. But be very carefull as high volatility contineous.

Today's Intraday Trading Calls/Stock Tips:

INDIABULLS REALEST
RPL
BOMBAY DYEING
ADLABS
PRAJ INDUSTRIES
SAIL

For Levels and Targets CLICK HERE.

Today's Watch List: GMR Infra, Voltas, Prithvi Info & LIC Housing Finance.

Good Luck

Stock Idea: Marg Ltd.

Marg Ltd has posted excellent results for the year ended 31/03/08. The company had an exceptional Q4 and that has reflected amply in the overall performance for the full year.
For FY08, it reported a 95% surge in net sales at Rs.242.75 crore and despite a 97% rise in operating expenses, it managed to post an EBITDA of Rs.91.84 crore, a rise of 95%. PBT was up by a whopping 117% at Rs.83.53 crore and PAT was even better, it went up by 125% at Rs.67.44 crore. On an equity of Rs.25.61 crore, it managed to post a very healthy EPS of Rs.31.88 as against Rs.28.76 in FY07.
The company has had a phenomenal Q4. Its net profit was more than the combined net profit of the previous three quarters. And this is precisely how the company managed to end the fiscal FY08 on such a resounding note.
In the latest development, the Government of Tamilnadu has selected the company for developing a minor port at Cheyur, Tamil Nadu for handling coal for power generation besides other cargo. It is also setting up a fishing harbour on a Public-Private-Partnership model at Rajakamangalam Thurai in Kanyakumari, Tamil Nadu, expected to be completed by 2010 through a Special Purpose Company already formed in the name of Rajakamangalam Thurai Fishing Harbour Private Ltd. A trust formed by the public of Rajakamangalam holds 51% stake in the Special Purpose Company. The company has struck a very innovative deal wherein, as per the agreement, the fishermen shall have to give 10% of their catch to the Special Purpose Company for availing the services of the harbour which in turn shall sell to exporters or any other person.
Currently quoted at Rs.187, stay invested.

Source: sptulsian.com

Intraday Trading Calls for 23th June

Indian stock Market is likely to starts recover after gap down opening today. But market will remains very volatile this week as it is expiry week.

Today's Intraday Stock Tips/ Trading Calls:

Buy at Decline (For Intraday):

CAIRN INDIA

JP ASSOCIATES

YES BANK

RPL

HCL TECH

SATYAM COMPUTER

Today's Watch List: Selan Exploration, Hind Oil Exploration and Cairn India may bounce back as crude oil trading at $136 again.

IT & Tech Sector may also see a good bouce back as ruppee is going to more weaker now and may touch the Rs. 44/- against $1 soon. So Keep an eye on Infosys, Satyam, NIIT Tech, Mphasis, Rolta, Wipro, TCS, Tech Mahindra, Prithvi Info etc.

Good Luck

Investment Picks: IDEA, Llyod Electric, IGL

Idea cellular (Rs. 105.00) (Code 532822) :-Financial performance of the one of the leading wireless telecom company was excellent in the quarter ended on 31st March 2008. The company has its operations in 11 out of the 22 circles in the country. The company will start its operations in other 11 circles in around one year. The company is expected to increase its subscriber base by on crore customers and with inclusion of new subscribers base total subscribers of the company will reach to the level of 2.5 crores. Company is likely to add around 17 lac customers, a month after six months and growth rate of the company is expected to touch the level of 50 per cent by the end of calendar year 2008. The company has turn over of Rs. 6719 crores and net profit of Rs. 1044 crores during the FY ended on 31 March 2008. Company has EPS of Rs. 3.96 and PE of 27. EPS of the company is likely to reach to the level of Rs. 5.66 and Rs. 8 in FY 2008-09 and 2009-10 respectively, where as PE of the company is expected to
touch the level of 19.26 and 13 respectively during the two FY. Private equity company Aditya Birla has invested Rs. 64 crores in the company to purchase 20 per cent equity stake of the company. Aditya Birla has total 57.69 per cent stake in the company. Even international investors have started taking interest in the company.

Lloyd Electric & Engineering (Rs. 94.00) (Code 517518) :- The Company is largest producer of Evaporate and conditioner coils in the country. The company has captured 60 per cent market share. The company manufactures window split Air conditioners for MNC’s. The company also provides AC coach on turn key basis to railways. The company is also in the field of designing, manufacturing, supply and installation plus maintenance services. Gross turnover of the company was Rs. 650 crores and profit of Rs. 31 crores after payments of tax of around Rs. 58 crores (PAT) and has EPS of Rs. 19. Investors may invest in the scrip as the price is damn cheap.

Indraprasth Gas (Rs. 118.00) (Code 532514) :- Company was promoted by BPCL and GAIL to work in the area of distribution. Both promoters has 22.5 stakes in the company, where as mutual funds has total holding of around 40 per cents. Public has 15 per cent shares in their kitty. Total equity capital of the company is Rs.120 crores. Gross income of the company during FY 2007-08 was Rs. 706 crores, which is in comparison to the income of company during FY 2006-07 of Rs. 614 crores. PAT of the company stood at Rs. 174.50 crores and EPS at Rs. 12.46. Company has increased its dividend payments. Stock has seen 52 weeks high of Rs. 182 and low of Rs. 102. Investment the scrip may provide good return in 8 to 12 months period.

Source: internet (Smart Investment)

Stock Idea: Pondy Oxides & Chemicals Ltd.

Pondy Oxides & Chemicals Ltd. (Code: 532626) Rs.20
Incorporated in 1995, Pondy Oxides & Chemicals Ltd. (POCL) is one of India’s leading integrated metallic oxides and plastic additives producers. It manufactures zinc oxide, litharge (Lead monoxide), grey oxide (lead sub oxide) red lead and solid/liquid stabilizers of PVC. Metallic Oxides are largely used in batteries and the automobile sector whereas plastic additives are primarily used for the manufacture of PVC stabilizers. POCL has even promoted a subsidiary company, M/s. Baschem Pharma Ltd. to manufacture liquid stabilisers, epoxy oil and paint dryers. Besides, it also has a facility to manufacture lead acid batteries, which manufactures stationary batteries used for uninterrupted power supply (UPS), inverters, emergency lamps, photovoltaic batteries and automobile batteries. But recently, the company decided to dispose-off the same so that it can concentrate on its core business. Importantly, POCL boasts of being an integrated producer with in-house production facility of lead metal for captive consumption.
POCL’s has four manufacturing plants spread across Pondichery & Tamil Nadu with an installed capacity of 4680 MTA for lead sub oxide, 2880 MTA for zinc oxide, 1800 MTA for litharge and 360 MTA for red lead. To sum up, it has the capability to produce 9720 MTA of metallic oxides and 4200 MTA of PVC stabilizers. In addition it has a name plate capacity to manufacture 96,000 units of lead acid batteries at its Madurantagam plant, which the company is looking to sell off. Incidentally, lead is the major raw material for production of metallic oxides followed by zinc. Hence in order to reduce its dependence on suppliers and ensure regular and economical supply, POCL undertook backward integrated in late 2006 to manufacture lead and lead compounds. It has established a state-of-the-art manufacturing plant with a rated capacity of 14,4000 MTA for lead and lead alloys and another 3600 MT for lead compounds. The company is also engaged in the smelting, refining and alloying of lead metal and specialises in manufacturing lead alloys like lead tin calcium, lead tin, lead selenium alloy, lead antimony selenium alloy and others, which find use in the battery industry for grid casting for lead-acid batteries. Meanwhile, POCL is also looking to venture into the manufacture of refined Zinc and the project is under consideration. Another significant step recently finalized by the company is to acquire 51% stake in M/s. Lohia Metals Pvt. Ltd. at an investment of around Rs.2.25 cr. and make it a subsidiary. Lohia Metals is an associate company with a turnover of roughly around Rs.25-30 cr. and is engaged in the process of refining and alloying of lead metal with an installed capacity of 12,000 MTA. To fund its backward integration project, POCL had raised Rs.7.35 cr. in August 2006 through a 2:3 rights issue Rs.4 per share on the face value was Rs.2 per share. Subsequently, the company also issued 1:10 bonus and later consolidated all the equity shares on 20th January 2007 from the face value of Rs.2 to Rs.10 per share. On better capacity utilisation of the lead smelter and higher price realisation for metallic oxides, POCL’s sales shot up 60% to Rs.170 cr. and net profit jumped up 55% to Rs.4.50 cr. for FY08. It is expected to announce 15% dividend, which will give a yield of mind-boggling 7.5% at CMP. With robust metallic oxide prices and being an integrated producer as far as lead is concerned, POCL is expected to clock a turnover of Rs.200 cr. with PAT of Rs.5 cr. for FY09 i.e. EPS of Rs.5 on its equity of Rs.10 cr. So despite its low profit margin and low promoter holding, investors can buy this scrip at current levels as it can give 50% return in 12-15 months.

Source: Internet (MT)

Stock Idea: Prime Property Development Corp.

Prime Property Development Corpn. (Code: 530695) Rs.65.75
Incorporated in 1992, Prime Property Development Corporation Ltd. (PPDCL) is small real estate developer based in Mumbai. It made a late entry and started its real estate activity only in 2002. PPDCL is led by Shri Padamshil L Soni who has a rich experience of nearly two decades in construction. Apart from his two sons, the company has eminent personalities on its board including Shri Y. C. Pawar, Shri K. Nalinakshan, Dr. B. Samal to name a few. Under their leadership, the company has now positioned itself as a unique company catering to the niche segment of the property market. Within a short span of time, the company boasts of constructing landmark residential and commercial buildings for high end customers in Mumbai. ‘Prime Beach’ and ‘Prime Centre’ constructed in Santracruz by the company are among the most luxurious apartments and also well known for its modern and elegant architecture. On the other hand, its ‘Prime Plaza’ is a 100% commercial project with ultra modern facilities in Santacruz was a huge success. ‘Prime Avenue’ – a 100,000 sq. ft. residential cum commercial project in Vile Parle was the flagship project of the company comprising residential flats and large commercial units like showrooms, shops and offices.
Currently, PPDCL is developing two projects that are nearing completion. Of these, ‘Prime Down Town Mall’ project is much bigger being a 270,000 sq ft luxurious composite Mall with multiplexes. The mall is at the prime location of Hughes Road, Mumbai and is being constructed in partnership with others. Once operational it will be among the largest malls in Mumbai with hi-tech elevation and an international feel. ‘Prime Tech Park’, the other project is a 90,000 sq ft commercial building in Vile Parle mainly for IT /ITES companies. It is just next to the Western Express highway and barely a few kms away from the domestic and international airports. Apart from these two projects, the company has undertaken two more projects, of which both are shopping malls – one in Mumbai and the other in Pune. The Mumbai mall name ‘Prime Square’ is a four storey, 70,000 sq ft mall located on, S.V. Road, in Goregaon – a flourishing suburb of Mumbai. The Pune mall called ‘Prime Pune Mall’ will be a gigantic 430,000 sq. ft. state-of-the-art mall with anchor shops, multiplexes, food courts, entertainment area and a hotel. In short, the company is estimated to generate more than Rs.500 cr. of revenue over the next 2-3 years.
PPDCL has also finalised a location in Vile Parle (W) to construct a 60,000 sq ft shopping mall and has even created a blue print for the same. It is also planning to develop a residential project in Pimpri, Pune. The plan is still on paper and yet to be finalized. Financially, due to sale of units in ‘Prime down Town Mall’ and ‘Prime Tech Park’, PPDCL has ended FY08 on quite a buoyant note. It recorded a topline of Rs.105 cr. and bottomline of Rs.32.70 cr. Importantly, it has made the highest tax provisioning of Rs.17.50 cr., which ensures the integrity of its real profit. This translates into an EPS of Rs.16 on its equity of Rs.10 cr. with face value of Rs.5 per share. It is expected to declare Rs.2.50 as dividend which gives a yield of nearly 4%. Considering the company’s current projects on hand and that too at prime locations, it may report total revenue of Rs.150 cr. with net profit of Rs.40 cr. for FY09 i.e. an EPS of Rs.20 on its current equity. Hence, the scrip is available fairly cheap at a current P/E ratio of merely 4 times. At the same time, adverse profiling of the sector coupled with higher input prices, imposition of service tax on rentals of commercial property & hardening interest rates are bound to dampen the sentiment and affect the demand for certain categories of properties. Yet, the company is largely insulated from the downturn and investors can buy the scrip at current levels with a price target of Rs.100 in 9-12 months.

Source: Internet (MT)

Stock Ideas: Mercator Lines, Rohit Ferro Tech, UTV Software

Religare Research has recommended a buy rating on Mercator Lines with a target price of Rs 160 in its June 16, 2008 research report. "On an expansion spree – fleet size doubled over last two years to 29 vessels with firm plans to ramp up to 33 vessels by December 2010. Also, an oil drilling jack up rig, scheduled for delivery in Q1FY09, has already been contracted for 3 years.Augmented fleet amid favourable day rate conditions to drive revenue and margins. Revenues expected to log 22.3% CAGR over FY08-FY10, with earnings CAGR of 28.6% and ROE of 30%."
"Attractively priced at P/E of 4.9x and P/BV of 1.1x on FY10E. Our valuation of Rs 160 is based on 1.2x current NAV. At our target price, the stock would trade at a P/E of 6.9x and P/BV of 1.6x, which is reasonable given the expanded fleet and strong earnings growth," says Religare's research report.

Religare Research has recommended a buy rating on Rohit Ferro Tech with a target price of Rs 216 in its June 16, 2008 research report. "Riding high on the ferro alloy super cycle, as a severe ferro chrome supply crunch in the world market has escalated prices of this metal to unprecedented levels. Rohit Ferro is thus witnessing a sharp increase in profit per tonne.Timely expansion coupled with increasing feedstock linkages would further bolster growth."
"Acquisition of an operational coal mine in Indonesia (60% economic interest in thermal coal reserve of 20mn tonnes and coking coal reserve of 5 mn tonnes) and arrangements with a chrome ore mine in Iran would provide substantial raw material links. Coal mine would meet input requirements of a 110MW captive power plant coming up by FY10, besides generating revenues from sale of coal in the open market. Business valued at Rs 216 using an average of 5.5x P/E and 5x EV/EBITDA on FY10E, based on industry average multiples," says Religare's research report.

Religare Research has recommended a buy rating on UTV Software Communications with a target price of Rs 1068 in its June 16, 2008 research report."Media industry valued at Rs 513 billion and expected to log an 18% CAGR over the next five years, with films growing at 13%, television at 22% and animation & gaming at 25% (CAGR). UTV is a vast media conglomerate with strong business verticals and ample funding to ride on the opportunities in the sector. Fund infusion of Rs 13bn through recently concluded deals with Disney and the increased promoter group stake would anchor the company’s growth. UTV set to register a CAGR of 86% in revenue and 80% in PAT over FY08-FY10. Film business projected to grow at 47%, television at 40% and gaming at 140% CAGR."
"We have an SOTP-based target price of Rs 1068. At its peak, the stock traded at 23.7x FY10E earnings, while valuations are now at 16.2x – a significant discount to its previous high," says Religare's research report

Stock Idea: Hotel Leela

Hotel Leela Venture has announced a consistent performance for the year ended 31/03/08. The company reported a 24% rise in net sales for FY08 and this was matched with a 49% rise in total operating expenses. What is noteworthy is that its employee cost surged up from Rs.59 crore in FY07 to Rs.80.73 crore in FY08. Consequently, EBIDTA rose by 16%. It maintained its interest outgo at almost the same levels and depreciation was up marginally. This led to PBT improving by 18%.
For FY08, its total tax outgo was also maintained at Rs.73.18 crore as against Rs.74.06 crore in FY07. But what is significant here is that it made its entire tax provisioning in Q4 FY08 which saw a huge outgo at Rs.49.85 crore and this led to the PAT in Q4 being at the lowest levels when compared to the remaining three quarters of the year. Its PAT for Q4 was at Rs.29.41 crore and it ended the year FY08 with a PAT of Rs.148.55 crore. On an equity of Rs.75.56 crore, it ended the year with an EPS of Rs.4.01 on a face value of Rs.2 per share.
Continued buoyancy, especially in the Bangalore and Mumbai markets, led to the company performing better and as per current trends, is poised to continue with the growth in the current year inspite of the slowdown in the US and European economies from where most of the corporate an leisure travelers originate.
The various projects under implementation are progressing well with Gurgaon opening in October 2008, Udaipur in January 2009, Chennai in October 2009 and Chanakyapuri Delhi in 2010.
The stock has remained more or less lackluster at Rs.38-39 levels for the past whole week, which is more or less at its low of Rs.37. No major spurts are expected in the short term. Stay invested with a long term perspective.

Source: sptulsian.com

Markets Today

Inflation in double digit has bruised the markets very badly; the Sensex lost over 500 points. Blood-thirsty bears marched harshly on bulls and remained active through the day. The Sensex and Nifty hit new 2008 lows; it was lowest closing for both indices since August 2007. Indices of rate sensitive sectors like Bankex, Realty and Auto also touched new 2008 low. Advance:Decline ratio was pathetic. All BSE indices battered severely. Experts say that RBI will have to use monetary tools to contain inflation.
Inflation Internals
Fuel, power, lubricants 7.80%
ATF prices 14%
Diesel 21%
LPG 20%
Naptha 17%
Furnace Oil 15%
Food articles -1.10%
Non-food articles 1.40%
Manufactured pdts 0.30%
Edible Oil Major Gainer
Sunflower oil 6%
Groundnut 3%
Soybean/vanaspati 2%
Mustard seed 4%
Wholesale Price Index for the week ended June 7 stood at 11.05% as against 8.75% in earlier week. This is way above markets' estimation, which was expected around 9.93%. It is at 13-year high; last time inflation touched a high of 11-11% in May 1995. Inflation for April revised to 7.95% versus 7.33% earlier.
Oil price hike, which declared on June 4, 2008, was the main reason behind this higher inflation. Commerce Secretary says that they see high inflation for next 2 months and will consider food grain, vegetable price control to contain inflation.

Finance Minister says, "Rise in inflation was expected and we will have to look at stronger steps on fiscal, monetary side. Hike in petrol price is unavoidable."
Analysts feel that fuel price hike has not fully reflected in inflation numbers. It will see more impact in the next few weeks. They expect that the RBI will hike CRR or Repo rate before Monetary Policy. It will affect growth in infrastructure sectors as capital availability become scare, squeeze banks margin and impact on auto sales.
Moody's says, "RBI looks set to further tighten Monetary Policy and not to wait until next formal review. Inflation and tightening monetary policy will weigh on investor sentiment."
Broader indices have shattered completely and hit new 2008 lows again in just 10 days after June 10. The Sensex and Nifty hit new 2008 lows of 14,519.27 and 4333.60, which broken earlier lows of 14645.3 and 4369.8. Volumes were very high today; total turnover traded by the markets stood at Rs 85088.58 crore. This includes Rs 21056.2 crore from NSE Cash segment, Rs 58533.66 crore from NSE F&O and the balance Rs 5498.72 crore from BSE Cash segment.
The Sensex crashed nearly 569 points and the Nifty 171 points while touching day's low. The Sensex closed at 14,571.29, down 516.70 points or 3.42% and the Nifty at 4347.55, down 156.7 points or 3.48%. All BSE and NSE indices closed in red. ONGC is the only stock, remained strong through the day.
Amongst frontliners, Zee Entertainment was down -8.45%, Reliance Communication -6.68%, Reliance Ind -6.63%, Hindalco -6.39% and Jaiprakash Associates -6.03% while ONGC was up 1.56%.
Market breadth was weak; about 514 shares have advanced while 2328 shares declined. Nearly 284 shares remained unchanged.
Realty Index was the worst hit and hit new 2008 low. Index fell by 250.79 points or 4.45% at 5,383.81 due to huge selling in HDIL, Akruti City, Sobha Developers, Parsvnath, Indiabulls Real, DLF, Omaxe and Unitech.
Metal stocks like NALCO, Hindalco, Tata Steel, Sesa Goa, Jindal Steel, SAIL and Sterlite Ind lost shine. Index was down 603.80 points or 3.99% at 14,528.06.
Bankex lost 208.40 or 2.97% to settle at 6,804.78. Major losers were Bank of India, Bank of Baroda, IOB, SBI, Union Bank, Kotak Mahindra, ICICI Bank and HDFC Bank. Deutsche Bank says, "We see another 1/2 quarter of double-digit inflation and more RBI tightening."
Oil & Gas stocks took huge beating; Index fell 5.03% or 498.96 points at 9,419.89 as selling pressure seen in RNRL, Essar Oil, Reliance Ind, Cairn, GAIL and BPCL. Reliance Industries has hit new 2008 low and closed down by 6.63% at 2,099.20.
FMCG Index went down 2.51% at 2,234.23 on the back of weakness in GSK Consumer, United Breweries, Colgate, HUL, ITC, Marico and Dabur India.
Power stocks like Torrent Power, Reliance Infra, Reliance Power, Power Grid Corp, Tata Power, NTPC, CESC and Suzlon Energy have lost ground. Index plunged 2.5% at 2,539.84.
Auto stocks like TVS Motor, Bharat Forge, Hero Honda, Ashok Leyland, Tata Motors, Maruti Suzuki and Punj Tractors lost the road. Index was down 101.27 points or 2.44% at 4,042.86. Ashok Leyland says that such high inflation may result in incresae in interst rates; CRR hike will affect the CV industry and overall industry.
IT Index also caught into bears' grip, lost 101.28 points or 2.35% at 4,204.62. Major losers were Satyam, Patni Computer, Tech Mahindra, Wipro, TCS, HCL Tech and Infosys. S Gopalakrishnan of Infosys says that higher inflation will increase the cost of doing business.
Capital Goods stocks also hammered a lot. This includes Gammon India, Praj Industries, Siemens, Rel Ind Infra, Crompton Greaves, Punj Lloyd, BEML, Bharat Elec, ABB, L&T and BHEL. Index fell 267.90 points or 2.3% at 11,399.79. Lanco Infratech says that Inflation concerns are in the direction of interest rates and rising rates will be a concern for the infrastructure sector as a whole. They see hardening of interest rates by 50 bps from now.
Pharma stocks like Piramal Healthcare, Sun Pharma Adv, Aurobindo Pharma, Matrix Labs, Biocon, Dr Reddy's Labs, Wockhardt, Cipla and Ranbaxy Labs lost ground. Index fell 101.52 points or 2.29% at 4,325.40.
Midcap Index slipped 3.17% or 197.74 points at 6,032.43. Amongst midcap stocks, UB Holdings, Gammon India, Rajesh Exports, Corporation Bank, National Fert, BGR Energy, IFCI, Akruti City, Piramal Healthcare, Walchandnagar, Torrent Pharma, Deccan Aviation and Usha Martin were down over 7%.
In the small cap segment, Sical Logistics, OCL India, ETC Networks, Rain Commodities, Suprajit Eng, Hind Nat Glass, English Ind Cla, Arrow Webtex, Tata Metaliks, Automotive Axle, Zenotech Labs, Gayatri Project and Panchmahal Stee crashed over 9%. Small Cap index fell 262.76 points or 3.43% at 7,397.66.
Most active counters on the bourses were Reliance Industries, L&T, Reliance Comm, Ranbaxy Labs, ICICI Bank and HDFC.
On weekly basis, the markets smashed out cruelly. Sensex plunged 4% and the Nifty 3.7%; respective indices slipped nearly 1200 points and 325 points from weekly highs. BSE Capital Goods, Oil & Gas, Realty and Metal Indices were down 5%. Reliance Industries lost -7.5%, Bharti Airtel -6%, Reliance Communication -9.5%, TCS -5% and DLF -4.5%.
On the global front, Asian markets ended mixed; Nikkei was down -1.33%, Taiwan Weighted -1.8%, Hang Seng -0.23% and Kospi -0.56% while Shanghai was up 3.01% and Straits Times 0.31%. European markets were trading flat, at the time of writing market report.

Source: moneycontrol.com

Intraday Trading Calls For 20th June

A Good Bounce Back expected in Stock Market India. Closing should be positive with good gains today.

Today's Intraday Stock Tips/Trading Calls:

VOLTAS

RPL

JP ASSOCIATES

YES BANK

PRAJ INDUSTRIES

LIC HOUSING FINANCE

For Levels and Targets CLICK HERE.

Buy Spanco Tele 508976 (120) for Very Short Term Target of Rs. 145-160.

Good Luck

Stock Idea: GIPCL

Religare has maintained its buy rating on Gujarat Industries Power Company with a revised target price of Rs 123 in its June 18, 2008 research report. "We have revised our earnings estimates for FY09 and FY10 to reflect the commencement of operations of the expanded plant and higher fuel prices. GIPCL continues to trade close to its book value and at a considerable discount to peers."
"We have valued the company based on an average of the P/BV and DCF methods. Our estimate revision coupled with a tweaking of DCF assumptions generates a revised target price of Rs 123 for the stock from Rs 136 previously. We maintain our Buy recommendation," says Religare's research report.

Emkay Research has maintained its buy rating on NIIT with a price target of Rs 132 in its June 13, 2008 research report. "NIIT reported strong Q4FY08 numbers with revenues of Rs 2725 million (+14.1% QoQ, 6.2% YoY) along with impressive operating margin expansion of 170 bps QoQ (V/s our expectation of 100 bps) and YoY increase of 320 bps. Net profits came in significantly ahead of our expectations at Rs 253 million (+83.3% QoQ, +47% YoY) helped by operating margin expansion and higher other income."
"We remain confident on the prospects of the retail training business (company continues to surprise positively) as well expect more ICT wins in the coming quarters in the Institutional business. We maintain ‘BUY’ with a price target of Rs 132," says Emkay's research report.

Stock Idea: Aurobindo Pharma

Fundamentally a very sound company, the financial performance has been, as expected, very good.
Net sales of the company rose 8.25% at Rs.2435.90 crores. Operating expenses grew consistently: EBITDA was up 24% at Rs.435.36 crore. PBT was up 41% at Rs.291.75 crore. And despite an over 12 times rise in taxation outgo, the company posted a PAT of Rs.238.48 crore; a 19% rise over previous year.
The company reported a 45% rise in formulation sales and this, to a large extent, helped shore up the profit margins. Despite pressure in generic prices, its sales to US was at US $ 59 million and in Europe at US $ 50 million. The price of Pen-G remained stable and even its operations in China stabilized during the year.
The best part is that company’s overall borrowing during the year stood at RS.1847 crores, which is down from Rs.2078 crore in FY07.
As on 31/3/08, 67 ANDAs have been approved in USA including 18 tentative approvals. It has till now launched 33 products in the USA market. FOB value of exports is Rs.1339.49 crores as against Rs.1096.83 crore in FY07.
The company’s “other income” stood at a significant Rs.94.25 crore in FY08. Of this, Rs.85.50 crore came in via exchange fluctuation gain on account of FCCB’s.
Pharma stocks are once again in the limelight on the bourses. The recent sellout of Ranbaxy has stoked speculative forces on most of the other front line pharma stocks. Aurobindo has also been moving up significantly and is currently at Rs.330. Stay invested, it’s a sound company.

Source: sptulsian.com

Intraday Trading Calls for 19th June

Indian Stock Market may open with gap down but again a smart recovery expected from lower levels and A flat closing expected.

Today's Intraday Trading Stock Tips:

CAIRN INDIA
INDIA CEMENT
HIND OIL EXPLORATION
GMDC
GSS AMERICA
SUJANA TOWER

For Levels and Targets CLICK HERE.

Today's Watch List: Ranbaxy, Selan Exploration, Videocon Industries.
Future Stock: CIPLA June Future Around 215-218 For Target 230+.

Good Luck

Stock Idea: Mcnally Bharat Engineering

Emkay Research has maintained its buy rating on Mcnally Bharat Engineering with a target price of Rs 255 in its June 17, 2008 research report. "We continue to maintain a positive view on MBE considering its presence in all industry verticals with varied product and solutions offerings. We believe that MBE with its all round capabilities will be a principal beneficiary of ongoing investment supercycle."
"Our core argument of (1) changing order book mix in favor of steel and mineral vertical and (2) aggression in product business are playing out, thus reinforcing our positive stance. At CMP of Rs 149, the stock is trading at 17.1X FY2008, 11.0X FY2009E and 7.8X FY2010E earnings of Rs8.7, 13.5 and 19.1 per share respectively (standalone earnings). We maintain our BUY rating with a target price of Rs 255," says Emkay's research report.

Stock Idea: Godawari Power & Ispat

Hem Securities has recommended a buy rating on Godawari Power & Ispat with a target price of Rs 371 in its June 17, 2008 research report. "The company stands waiting for forest clearance for the iron ore mines and once is through with the clearance shall boost the position of the company. The presently proposed JV with Ardent Steel shall also be a step forward towards strengthening of the company".
"GPIL has grown with a CAGR of 68.73% and 57.96% in its top line as well as bottom line from FY05 to FY08. The stock at the current market price of Rs 200 trades at 5.91 times to its earning per share of Rs 33.84 and 1.46 times to its book – value of Rs 136.83. The stock looks attrac-tive at the current valuation with the strong upside potential in the medium to long term investment horizon. Therefore, we are initiating ‘BUY’ signal on the stock with the target price of Rs 371 which is approximately 86% up from the current market price of Rs 200," says Hem's research report.

Markets Today

Markets Snapshot
Markets slide in the 2nd part of day on back of European jitters
Reports that Royal Bank of Scotland analysts are telling clients to prepare for a crash in world stock & credit markets during the next 3 months
Sensex ends down 275 pts at 15422; Nifty ends down 70.6 pts at 4582.4
CNX Midcap Index down 1%, BSE Small-cap Index ends flat
BSE Bank Index down 3.5%; ICICI Bank down 4.1%, HDFC Bank down 3.7%
BSE Realty Index down 3.5%; DLF, Unitech down 3%
Index Losers; HCL Tech down 4.5%, Tata Steel down 3.3%, L&T down 3.2%, Tata Comm down 3%
Index Gainers; Ambuja Cem up 3.7%, Zee Ent up 3.4%, Ranbaxy up 2.7%
Buzzers; SRF up 10.3%, Cambrideg Sol up 20%, Andrew Yule up 20%, PTC India up 5.5%
Media Buzzers; NDTV up 11.5%, Raj TV up 11.9%, Midday up 9.5%, TV Today up 14.5%
Losers; Bank of Mah down 6.5%, Vaibhav Gems down 7.1%, Ibulls Real down 6.5%, Unichem Lab down 8.5%
NSE Advance Decline at 5:7
Total market turnover at Rs 65956 cr Vs Rs 58912 cr on Tuesday
F&O turnover at Rs 47440 cr Vs Rs 42624 cr on Tuesday
F&O Snapshot
Nifty Fut sees short rollover; June trades at 10-20 point discounts
Nifty Fut July at 25 point discount
Unwinding seen in Momentum stocks in latter half
Fertilizer stocks see long unwinding
Cement stocks sees fresh long build up
Star Trade: NDTV up 11.65 ; adds 1.5 lakh shares Ambuja Cem up 4.2%; adds 15.7 lakh shares
Fresh Shorts:IFCI dn 4.8%; 12.9 lakh shares Unitech dn 3.6 %; adds 9.9 lakh shares SAIL dn 3.6 %; adds 8.9 lakh shares ICICI Bank dn 4.1 %; adds 7.4 lakh shares DLF dn 3.4%; adds 6.9 lakh shares
Long Unwinding:Nagarjuna Fert dn 4.8%; sheds 12 lakh shares Chambal Fert dn 4.4%; sheds 12 lakh shares Praj dn 4.85; sheds 12 lakh shares
Long Build up:Ranbaxy up 2.5%; adds 6.5 lakh shares Zee Ent up 3.5%; adds 5.5 lakh shares
Roll Overs pick Up: NDTV 53% IDBI 19% Power Grid 16% NTPC 15%Unitech 14% Ranbaxy 14%

Source: moneycontrol.com

Intraday Trading Calls for 18th June

Indian stock Market may see some profit booking at higher levels but remains flat for the day today. A flat to nagetive closing expected.

Today's Intraday Stock Tips/ Trading Calls:

RCOM
CROMPTON GREAVES
SATYAM COMPUTER
GMR INFRA
ANSAL INFRA
PFC

For Levels and Targets CLICK HERE.

Today's Watch List: RPL, Nav Bharat Venture, Escorts Ltd. may see a good rally today.
Future Call: Buy Cipla June Future around 215-218/- For Target 230+ SL 210.

Good Luck

Stock Idea: Jindal Saw

Sharekhan has maintained its buy rating on Jindal Saw with a price target of Rs 910 in its June 16, 2008 research report. "We believe that the core business of JSL would continue to do well on the back of buoyant demand outlook. As mentioned in our previous update, the margins of the DI pipes division might be impacted due to the rising coking coal prices. However, the capacity expansion and the commencement of the captive power plant should help mitigate the adverse impact to a certain extent."
"At the current level, the stock is trading at 6.3x its CY2009E earnings and is available at an enterprise value (EV)/ earnings before interest, depreciation, tax and amortisation (EBIDTA) of 3.2x. We maintain our Buy recommendation with a price target of Rs 910," says Sharekhan's research report.

Investment Idea: Gujarat Mineral Development Corporation (GMDC)

Gujarat Mineral Development Corporation (GMDC) is a Gujarat State government undertaking engaged in the business of lignite, bauxite and fluorspar mining as also power generation units based on lignite.
As expected, the company has posted a superlative performance. This is one company which would surely not complain about soaring prices! Reporting a 68% jump in net sales and a 133% jump in other income, the company clinched a very healthy bottomline. EBITDA was up 85% at Rs.574.20 crore and its interest outgo was actually down 5% though, this was offset by the 21% rise in depreciation. Yet, the company posted a whopping 160% rise in PBT at Rs.408.40 crore. And despite taxation burden going up by 179%, its PAT was up by a smart 150% at Rs.264 crore. On an equity of Rs.31.80 crore, it posted an EPS of Rs.16.60 crore. Obviously enthused by the performance, the company also went ahead and declared a 1:1 bonus.
Not the one to rest on the laurels, it is ploughing back all the bounty it is earning into building up more for the company. It is leveraging all the coal capabilities into cement, power, SEZ and port in Gujarat. How does it plan to do that? It is getting into a JV with cement unit and another with a power unit. The cement unit would also develop a mineral based SEZ and a port with GMDC. Thus GMDC would have a captive coal customer in each cement plant as well as power plant and the power plant would have captive customer in cement plant. Now that’s real foresight!
The company is presently producing about 80 lakh MT of lignite at its three mines. New mines have been developed at the various locations at Surat to cater to South Gujarat where estimated annual production would be 10 lakh MT. 10 lakh MT of lignite production at Amod near Bharuch would fully contribute in FY09. 30 lakh tonne of lignite production is estimated from Bhavnagar mines to cater to Saurashtra region and Central Gujarat. So, in FY 09, the production of lignite will get increased by about 40%. The company also has 250 MW power plant in operation based on lignite.
Lignite referred to as brown gold, is an alternative for coal, which is in great demand, as natural resources are becoming scarce all over the world. Currently quoted at Rs.289, a cum-bonus price, it is an excellent buy at this rate.

Source: sptulsian.com

Stock Idea: KPIT Cummins

KPIT Cummins Infosystems, a specialist solutions partner to global manufacturing companies, announced very good results for the year ended 31-03-08.
Revenue for FY 08, rose 52% at Rs.480.44 crore. Despite a 52% rise in operating expenses, EBITDA rose by 30.39%, resulting in EBITDA margin of 15.37%. And despite a 89% rise in depreciation and 155% rise in taxation, the company managed to show a 40% rise in PAT at Rs.64.08 crore. On an equity of Rs.15.58 crore, its EPS currently stands at Rs.8.33.
During the year, the company added 21 new customers of which, 5 were added during Q4 FY 08. Its total employee strength currently stands at 4,481, of which, 329 were added in Q4 FY 08.
Growth in offshore revenue was at 40.18%. As a proportion of total revenues, offshore revenues increased to 52.77% as against 48.75% in FY 07.
In June 08’, the company formed a partnership with SAP to provide solutions to the automotive industry.
The company’s strategy to remain focused on co-creating domain intensive technologies for manufacturing companies has helped the company post a robust performance. It is also increasing its focus on emerging markets, Japan and Europe.
For FY 09, the company has given improved guidance. Total revenues are expected to be in the range of Rs.700 – 760 crore, a growth of 23% - 26%. PAT is expected to be in the range of Rs.65 crore, a growth of 27% - 31%.
Currently quoted at Rs.70, best to stay invested as growth story in the company looks good.

Source: sptulsian.com

Markets Today

Markets Snapshot
Markets end near day's high led by banking & real estate stocks
Sensex ends up 300 pts at 15697; NIfty ends up 80.5 pts at 4653
CNX Midcap Index up 2%, BSE Small-cap Index up 1.46%, NIfty Junior up 3.6%
All BSE Sectotal Indices end in the green
BSE Bank Index up 4.3%; HDFC Bank up 5.6%, SBI up 4.6%, ICICI Bank up 2.9%
BSE Realty Index up 3.9%; Unitech up 4.2%, DLF up 3.12%
Index Gainers; HDFC up 6.3%, MUL up 5.35, ONGC up 4.5%, L&T up 4%, Power Grid up 3%, RIL up 2.2%
Bank Stocks: Bank of Mah up 16.5%, IOB up 8.5%, Axis Bank up 8%, Kotak Mah Bank up 7.5%, BOI up 6.2%
Midcap Buzzers: Sasken Comm up 14.3%, Bank of Mah up 16.5%, Unichem Lab up 17.9%, Gwalior Chem up 10%
Stocks locked at 20% circuit: Transwarranty Fin, Vaibhav Gems, Raj TV, Torrent Pharma, Atlas Copco, Salora Int
NSE Advance Decline at 3:1
Total market turnover at Rs 58912 cr Vs Rs 55401 cr on Monday
F&O turnover at Rs 42624 cr Vs Rs 40167 cr on Monday
F&O Snapshot
Nifty futures discount at 14 pts Vs 2 pts yesterday; add 41.7 lakh shares in OI
Build up of long positions seen in real estate, bank and momentum stocks
Action seen in single stocks futures; traders continue to hedge their positions by taking short positions on NIfty
Options : Nifty 4600 call adds 10 lakh sharesNifty 4600 put adds 6.9 lakh sharesNifty 4700 put adds 1.9 lakh sharesNifty 4500 call sheds 1.8 lakh shares Nifty 4800 put sheds 1.7 lakh shares
Long Buildup: RPL up 3%; add 25.7 lakh shares in OI RNRL up 2.5%; add 22.5 lakh shares in OI Suzlon up 1.3%; add 16.5 lakh shares in OI Ranbaxy up 3.55; add 11.5 lakh shares in OI SAIL up 2.5%; add 10.5 lakh shares in OI SBI up 4%; add 3.5 lakh shares in OI Unitech up 5.2%; add 3.3 lakh shares in OI Shree Renuak up 8.5%; add 3.1 lakh shares in OI
Short Covering: GMR Infra up 3.2%; shed 5.6 lakh shares in OIIDFC up 4.1%; shed 2.3 lakh shares in OIDLF up 3.2%; shed 1.3 lakh shares in OIIDBI up 6.2%; shed 1.3 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 17th June

A flat to positive opening but remains volatile and consolidate in small range. Today A Positive closing expected again in Stock Market India.

Today's Intraday Trading Stock Tips:

MERCATOR LINES (MLL)

INDIABULLS FINANCIALS

PRAJ INDUSTRIES

RPOWER

NIIT LTD.

JP ASSOCIATES

For Levels and Targets CLICK HERE.

Others: Keep an eye on Brokerage Co.: Indiabulls Securities, Indiainfoline, Religare, Emkay Shares, Edelwiess Capital, Reliance Capital etc. may see smart rally today.

Also watch Cairn India, It can bounce back up to 300 levels.

Good Luck

Stock Ideas: Kamat Hotel, Blue Bird, Kolte Patil Developers, Allahabad Bank

Kamat Hotels Ltd. (Code: 526668) (Rs.137) primarily operates a 245-room five star Ecotel hotel, ‘The Orchid’, near the Mumbai domestic airport and 190 room service apartments, ‘Lotus Suites’ (now renamed as VITS) near Mumbai international airport. In December 2007, the company opened another 100-room five star hotel called ‘Garh Heritage’ in Pune and a 200-room ‘Orchid Hotel’ in Vaishnodevi. Besides, it runs around 10 highway restaurants, which contribute less than 5% of its turnover. Notably, the company is adding 130 rooms to ‘The Orchid’ at an investment of Rs.80 cr. and has a capex plans of Rs.250 cr. for setting up various properties under the VITS brand at Aurangabad, Nagpur, Pune, Nashik, Goa, Baroda etc. To fund its expansion plans, the company raised a capital of Rs.80 cr. through FCCB route last year. Each FCCB will be converted into an equity share at Rs.225 per share. For FY08, it reported 30% growth both in its topline and bottomline at Rs.148 cr. and Rs.27 cr. respectively. This translates into an EPS of Rs.20 on its current equity of Rs.13.80 cr. incidentally; foreigners contribute around 40% of its total revenue even though the company follows the rupee tariff system. Although the company boasts of very aggressive expansion plans, it is actually slow in execution. Hence on a conservative basis for FY09, it may report total revenue of Rs.175 cr. with net profit of Rs.30 cr., which works out to an EPS of Rs.17 on its diluted equity of around Rs.18 cr. A strong buy for 50% gain in 12-15 months.
******
Blue Bird (India) Ltd. (Code: 532781) (Rs.36.55) is one of the leading manufacturers of paper based notebook products and office stationery. Although notebooks form its core business, the company has also ventured into publishing academic textbooks and self study books for children apart from general publications on subjects such as ayurveda and biographies. It also offers end to end solutions in commercial printing. Its marketing and sales team supports the distribution network of over 600 dealers and distributors spread across 18 cities in India and overseas representatives in many countries. In order to cater the Central and South India markets efficiently, the company has put up two new plants at Indore and Bangalore apart from its main plant in Pune. Financially, the company is weak in managing receivables as it has very high debtors equivalent to four months of sales. This has led to huge debts and the company has privately placed Rs.100 cr. Redeemable NCDs with LIC Mutual Fund for one year recently to fund its working capital requirements. Hence, interest cost is the biggest drag on its financials. Despite healthy margins, it is estimated to report total revenue of Rs.485 cr. and net profit of Rs.28 cr. for FY08 i.e. an EPS of Rs.8 on its equity of Rs.35. Still, it can easily give 30-40% return within a year from current levels.
******
Kolte-Patil Developers Ltd. (Code: 532924) (Rs.86.65) is in the midst of developing 28 projects (24 in Pune and 4 in Bangalore), with a total saleable area of around 18 million sq. ft. consisting of 10 residential complexes, 11 commercial buildings, 5 IT parks, 1 integrated township and 1 service apartment. In addition, it has entered into a MoU or has acquired development rights for another 22 million sq. ft. of saleable area in and around Pune and Bangalore. Although the actual land bank owned by the company is less than 15 acres but the development rights is equivalent to whopping 755 acres of land. With this, the company has a total developable space of massive 40 million sq. ft. For FY08, its revenue jumped by 60% to Rs.369 cr. and net profit shot up 55% to Rs.129 cr. after paying tax to the tune of Rs.37 cr. Hence it reported an EPS of Rs.17 on its equity of Rs.75.30 cr. Assuming the company reports lower operating margin of 30% for FY09 (against 43% in FY08), it is estimated to clock a turnover of Rs.650 cr. with PAT of Rs.150 cr. i.e. an EPS of Rs.20 cr. on its current equity. In short, although the profit margin of company is incredibly high, the scrip can still give decent returns in the medium-term.
******
Due to hardening of interest rate, rising CRR and recent hike in repo rate, the banking sector has taken a huge beating on the bourses. Most banks are trading at their 52-week low levels and Allahabad Bank Ltd. (Code: 532480) (Rs.68.45) is no exception. It is among the very few banks which are trading at a huge discount against their book values. Moreover, Allahabad Bank is fundamentally a strong bank with Gross NPA at 2%, Net NPA at 0.80%, Capital Adequacy Ratio above 12%, Net interest margin at 2.80% and importantly with a book value of Rs.117. For FY08, it registered 20% growth in total deposit and gross advance whereas its net profit shot up by 30% to Rs.975 cr. This works out to an EPS of a whopping Rs.22 on its current equity of Rs.447 cr. Against this, it declared 30% dividend. Hence the scrip is currently trading at a P/E ratio of less than 3 times and with a dividend yield of 5% at CMP. To maintain its growth momentum, the bank has obtained approval for opening 116 more branches and has additionally applied for authorization of 180 more branches in FY09. Besides, the bank is focusing to improve its fee based income and has made tie-ups with several organisations for marketing of mutual funds and insurance products. A safe bet.

Source: Internet (MT)

Markets Today

Markets Snapshot
Markets off day's high in last hour of trade but manage to end with modest gains
Sensex ends up 206 pts at 15396; off nearly 150 pts from day's high
Nifty ends up 55.5 pts at 4572.5; off nearly 40 pts from day's high
CNX Midcap Index up 1%, BSE Small-cap Index up 1.15%
Bank, Realty stocks made a comeback from recent lows
BSE Realty Index up 3.5%; Unitech up 5.9%, DLF up 2.5%
BSE Bank Index up 2.8%; PNB, ICICI Bank up 4.2%, HDFC Bank up 2.4%
Index Gainers; Tata Power up 4%, Rel Infra up 3.8%, BPCL up 3.7%, Tata Comm up 3.6%
Sugar & fertliser stocks buzz in small-cap and midcap space
Buzzers; NFL up 10%, Balrampur Chini up 5.7%, Shree Renuka Sugar up 4.7%
Realty Stocks: IBulls Real Estate up 6.7%, HDIL up 3.7%, Kolte Patil up 2.3%
NSE Advance Decline at 2.5:1
Total market turnover at Rs 55401 cr Vs Rs 58736 cr on Friday
F&O turnover at Rs 40167 cr Vs Rs 41003 cr on Friday
Buzzers
Hind Rectifiers: board meet on June 24 to consider the issue of bonus shares
Atlas Copco board meet on June 25 to mull buyback
F&O Snapshot
Nifty Future discount narrowed down to 7 pts Vs 30 pts on Friday
Private Banks sees fresh long buildup
Fertilizers stock sees long unwinding
Options: Nifty 4800 put sheds 7 lakh shares, Nifty 4600 put adds 5.1 lakh shares, Nifty 4700 put adds 2.8 lakh shares
Star Trade:Welspun Guj up 9.8%; adds 2.3 lakh sharesPower Grid up 6.6%; sheds 17.7 lakh shares
Short Covering :Power Grid up 6.6%; sheds 17.7 lakh shares Ntpc up 3.8%; sheds 7.1 lakh sharesSail up 2.2%; sheds 3.7 lakh shares Balrampur Chini up 5%; sheds 1.2 lakh shares
Fresh Long:Gmr Infra up 3.4%; adds 10.9 lakh sharesEssar Oil up 3.6%; adds 6.3 lakh shares Icici Bank up 4.8%; adds 5.5 lakh sharesPraj up 4.5%; adds 5.2 lakh sharesJsw Steel up 5.6%; adds 1 lakh shares

Source: moneycontrol.com

Intraday Trading Calls for 16th June

Indian Stock Market may open with Gap Up and can see a smart rally today. A positive closing with good gains expected.

Today's Intraday Stock Tips/Trading Calls:

GAIL INDIA

HOTEL LEELA

JP HYDRO POWER

RPOWER

ANU'S LABORATORIES

JP ASSOCIATES

For Levels and Targets CLICK HERE.

Others: RPL, Alembic Pharma, Prithvi Info, KPIT may see very good gains.

Good Luck

Investment Idea: Bhagyanagar India, FCS Software

Bhagyanagar India (31.00) :- Including its subsidiaries, boasts of having around 175 acre of land bank valued at more than Rs 600 cr. It includes 25 acres of prime land in Gachibowli area Hyderabad , 50 acres in SEZ, Chennai, 25 acres near new Hyderabad airport etc. To ride the boom, company has aggressively forayed into real estate development, focusing mainly on housing and construction of IT Parks, SEZ etc. Recently, it has formed a SPV along with IL&FS Infrastructure for undertaking, various infrastructure and entertainment projects such as theme parks, special economic zone, industrial parks etc on a large scale basis. On the other hand, it has successfully commissioned the wind power project with an installed capacity of 9 MW in Karnataka last fiscal. At the same time its traditional copper & telecom products business is doing okay. Notably, of late company has formed a joint venture with group company for setting up of solar photo voltaic cell and module project and has even been allotted 25 acres of land in the Fab City, Hyderabad. Although promoters are shaddy, but being an operater driven scrip it has potential to give handsome return from here on.

FCS SOFTWARE SOLUTIONS LTD (Rs 96.00) (Code : 532666) FCS has been managing IT Consulting Services, E-Learning and Digital Content Management, Application Helpdesk and Infrastructure Management Services for its 118 clients since 14 years. With over 900 employees, company has development centres in Delhi, Chandigarh, Chennai and Dheradun. Its top 10 clients contribute 40% of total revenues. Average order size of 10 clients is USD 1.50 mn each. Its main clients include GE, Canon, AIG, Merck, Parker, Dominos etc. Segment wise revenue contribution is as under: Application Support (10%) E Learning (25%), Infrastrucuture (10%), IT Consulting (55%) Company has been paying 25% dividend has been growing almost 30% CAGR. FCS Scope of Work can include: 1. Outline the solution and definte the solution architecture 2. Develop prototypes for demos to users 3. Design, Build and Validate solution against requirements 4. Rolling out solution across the organisation 5. Continuous support for the solution

APPLICATION PORTFOLIO MANAGEMENT :- FCS wokrs with clients to maintain their IT Application on T&M basis or FPFT basis. FCS replicates application environment based on project needs or will use secure VPN connections to directly log in client servers, Set Centres of Excellence to leverage talent skilled in a set of specific technologies and domains and set up Lab Model for temporary deployment of resources for one time knd of work. IT Consulting aer one of the stable revenue generators for FCS which contributed 81.88 cr revenues in 06-07, with revenues of 19.73 lacs per employee and generated Net Margin of 11.39 cr

INFRASTRUCTURE MANAGEMENT SERVICES :- It includes Data Centre management, Network management, Technical support, Infrastructure consulting and Application Operations support. In 06-07, it generated revenues of 15.88 crs with revenues of 31.15 lacs per employee and NET margin of 5.07 crs. E-Learning Services :- This division builds AICC/SCORM compliant
multimedia and multi-lingual content, Learning Management Systems, Learning Content Management Systems and Assessment Engines to manage all corporate training needs: Focused on training programs for employees, partners and End users Training portals, LMS platform Consistent Training means Consistent services Company deployes ADDIE methodology to build state of art training programs that dont become obsolete. In 2006-07, this division contributed 38.39 cr worth revenues and Net margin of 6.90 crs. Revnues generation per employee was Rs 18.28 lacs Stock is trading at : 1. 4.15XFY08E EPS, 2. 3.26XFY09E EPS With established track-record of this dividend paying company, valuations deserve to be much higher. Perhaps this is the cheapest stock in mid-cap IT Segment. Company is issuing 25 lac warrants to some big investors. Share price is likely to appreciate minimum 50% in next 6 months and can even double in 12 months if markets are stable without panic situation. Investment strongly recommended.

Source: internet (Smart Investment)

Market Whispers

Natco pharma (Rs. 71.00) (Code 524 816):- USA based Mylan Corporation has acquired the marketing and distribution right of products of Natco Pharma’s Glatiramer and signed an agreement for the license of the same has resulted increase in volume by six time in the scrip and price has jacked up. The trend is expected to continue in the scrip.
PSL (Rs. 42.00) (Code 526 801):- The company has succeeded in bagging an order of Rs. 2000 crore from Gail India for itspipeline project of Vijaypur-Dadra- Bavna. The company was given order to supply carbon steel pipes. PSL’s total order book has increased to Rs. 6000 crores with
new order from Gail. The company has to complete the work as per the order of Gail during the FY 2008-09, which will help the PSL to improve its top line and bottom line and change the whole complexion of the financial performance of the company.
ABG Shipyard(Rs. 418.00) (Code 532682):- The leading company of shipping sector of the country has received order of Rs. 305 crores from Italian company Manvi Spa of instruments of anchor handling, towing, rescue and offshore supply. Order book of the company has fattened to reach to the level of Rs. 8500 crores. The stock is once again in limelight after a crash of 30 per cent during last one month.

Boch Chassis (Rs. 567.00) (Code 505185):- Meeting of board of directors was conveyed to discuss the issue of delisting of the stock of the company. Offer to the share holder is expected to be at higher price than the current marketprice may provide current to the counter in days to come.

Alembic (Rs. 52.00) (Code506235):- The pharma sector company is on the verge of selling around 50 acre of land . The company has planned to use the fund raised by selling the land for expansion project.

RPL (Rs. 179.00) (Code 532743):- Mukesh Ambani has announced commissioning of new refinery in Jamnagar with in six month at the capital expenditure of almost 50 per cent in comparison to other refineries of the world has given boost to the volumes and price of the stock.

Ranbaxy’s Impact (Rs. 566.00) (Code 500359):- Ranbaxy has penned a deal diachi has resulted in to advantageous for its other group companies in southern states. Ranbaxy has big stakes in the companies. The companies includes Fortis health care (Rs. 82), Zenetech Labs (Rs. 109), Kerbs Bio (Rs. 51) and Orchid chemicals (Rs. 248) and Jupiter Bio (Rs. 137).
Ispat Ind. (Rs. 28.00) (Code 500305):- Due to bearish trend in secondary market the stock price had crashed. But looking at the huge expansion projects of the company investors making investment at current market price are likely to earn good return on the investments.

Confidence Petro (Rs. 17.00) Code 526829):-The company is connected with the production of Gas Cylinder has good reputation all over the Asia. New policy will prove to be advantageous for the company.
Fertilizers and Chemicals (Rs. 32.00) (Code 524244):- Prediction of normal monsoon by meteorological department and move to increase subsidy for the fertilizer sector has provided momentum to the stock price of companies connected with the sector. Company has attractive valuation in comparison to the other companies of the sector may lead to swift upward revision in the stock price.
India Foils(Rs. 19.00) (Code 509684):- The Kolkatta based company’s stock price has touched the peak level of Rs. 30. A Delhi based operator is active in the scrip. The scrip price may touch level of Rs. 25 in short duration.
Crazy Software (Rs. 4.88) (Code 524 388):- The Chhatisgarh based company is shifting it’s headquarter to Tamilnadu. Considering the movement on the counters of software companies investors have a chance to earn good return on the investment.

Prajay Engineering (Rs. 138.00) (Code 531746):- A Mumbai based broker is buyer in the scrip as the scrip price has dipped by almost 65 per cent from the peak price of 52 weeks. Price rise of Rs. 20 to 25 is expected in the scrip in short term.

RNRL(Rs. 90.00) (Code 532709):-HNI are investing heavily in the Anil Ambani group company. The scrip price is likely to surpass the level of Rs. 100 in short duration.
Spice communications (Rs. 62.00) (Code 532863):- Idea Group is planning to take over stake of Modi group at a price of Rs. 78 per share. The news may follow with the offer of buying the scrip at higher price in comparison to market price.
Birla Power (Rs. 27.00) (Code 517001):- The stock has book value of Rs. 44 and company has turnover of Rs. 200 crores. The valuation of the stock is likely to attract the investors.
Deccan Gold (Rs. 35.00) (Code 512068):-A south based operator has once again become active on the counter.

Source: Internet (Smart Investment)

Investment Pick: Genus Power Infrastructure ltd.

Genus Power Infrastructure Ltd
CMP Rs.398 Buy, Upgraded Target Price of Rs.644
Genus Power Infrastructure Ltd. (Genus), has delivered robust growth in the top line as well as the bottom line for the quarter ended 31st March 2008. Some of the key highlights of the financial performance of Genus for the said period are as follows:
Net sales increased by 27.4% YoY and 83.8% QoQ to Rs.1936.7 mn in Q4FY '08.
EBIDTA increased to Rs.350.5 mn in Q4FY '08 i.e a at YoY growth of 75.9% and 112.1% QoQ growth. EBIDTA margins jumped by around 499 bps YoY to 18.1%. This was mainly due to a 913 bps reduction in the other expense although the raw materials as a percentage of sales increased to 77.8% from 70.4% during Q4FY07.
The Profit before Tax (PBT) including Other Income increased by 89.5% to Rs.294.4 mn in Q4FY '08. The PBT margins increased by 498 bps to 15.2% in this period.
The Profit after Tax (PAT) increased to Rs.255.5 mn in Q4FY'08, exhibiting a growth of 102.2% YoY.
For the full year FY'08 period, the Company showed a growth in net sales of 35.3% to Rs.4832.8 mn.The EBIDTA increased 53.7% to Rs.818.7 mn mainly due to lower other expenses, which decreased by 49.4%. Its PAT increased to Rs.516 mn, registering a growth of 85.9%. Its energy meters segment contributed around 48.3% (Rs.2430 mn) and turnkey projects segment contributed 42.1% (Rs.2120 mn) to its revenues during FY'08.
The Company has an order backlog of Rs 4170 mn, of which about 60% orders are from meters business. The Company has already participated in tenders more than worth Rs 48390 million, out of which the Company is already ´L-1´ in orders worth Rs 4500 million.
Genus has bought a 6 MW power generation plant from Genus Power Products Ltd (GPPL). Subsequently the GPPL shareholders would receive 1 fully paid-up share of GPIL for every 60 fully paid-up shares of GPPL currently held by them.

We have increased our numbers for FY09E and introduced new numbers for FY10E on back of better then expected numbers in FY08 and better visibility. At the current market price of Rs 398, the stock is available at an attractive valuation of 9.6x its FY '09E earnings of Rs 41.4 and 7.4x its FY '10E earnings of Rs.53.7. We upgrade our rating on the stock to a BUY with an increased price target of Rs.644 (12x FY '10E EPS).

Source: Internet

Stock Idea: C&C Constructions Ltd.

Multi Bagger: C&C Constructions Ltd (K.R Choksey Picks Report Dated: June 09, 2008)
C&C Constructions Ltd (C&C) is an infrastructure project development company providing engineering, procurement and construction (EPC) services for infrastructure projects in India and abroad (Afghanistan). Their project expertise is primarily in transportation engineering projects including roads, bridges flyovers and airport runways especially in inhospitable environments. We Initiate coverage on C&C with a BUY recommendation based on SOTP valuations giving a 12 months price target of Rs 276, an upside of around 46% from the current levels. Investment Rationale:Robust Order Book: C&C has a robust order book of Rs 1,668 crore (5.05x FY2007 and 3.87x TTM net sales) which has swollen by about 58.7% since FY2007. Road segment constitutes approximately 96% of the total order backlog.

Strong operating margins compared to peers: C&C enjoys operating margins in the range 18-20%, inspite of 96% of the order backlog in road segment. The high margin is attributable to operations in areas which has geographical and political constraints. Operations from Afghanistan fetch margins in the range of 22-25%. We believe C&C is well placed to enjoy higher operating margins due to expertise in executing these projects. Expertise in executing projects in inhospitable conditions:C&C have been successful in executing projects in difficult operating terrains and adverse weather conditions which helps them in commanding higher operating margins. In addition unavailability of key resources like machinery, material and personnel along with security challenges also poses execution risk for the company.

Impressive financial performance: C&C reported revenue CAGR of 38.6% from FY2005 to FY2007. On operating margin front also, it enjoyed industry highest margins of 29.7% in FY2006 and 23.4% in FY2007. The company plans to diversify its areas of operations into Urban Infra, Irrigation and Power Transmission business with approximately 30% contribution by FY2010. We believe operating margin to take marginal hit, however will continue to enjoy margins above 17% going forward. Foray into BOT space:C&C has recently won BOT project from Kurali to Kiratpur on NH-21. We believe this project to be value accretive on the basis of IRR and is expected to contribute Rs 42 to the target price.

Valuations & Financials: At the CMP of Rs 172, C&C is trading at a trailing P/E of around 8.2x and at a forward P/E of around 7.46x FY08E EPS and 5.63x FY10E EPS.

Source: Internet (PYT)