Stock Idea: Pyramid Saimira Theatre Ltd (PSTL)

Pyramid Saimira Theatre Ltd (PSTL) is India’s largest theatre chain company operating mainly across South India. The company has posted good results for the first quarter ended 30th June 2008. It would not be fair to compare the performance of Q1 of current year with that of Q1FY08 as the company has grown much larger than what it began with.
Its net revenue for the first quarter rose to Rs.250.15 crore as against Rs.245.45 crore in Q4FY08. Of this net revenue, Rs.182.38 crore came via exhibition income, which is a QoQ rise of 113%. It earned Rs.67.77 crore via food & beverages (F&B), which is again a whopping 114% QoQ rise.
Sequentially, PBT for current Q1 was lower by 7.61% but as against a loss of Rs.3.11 crore in Q4FY08, it posted a net profit of Rs.13.45 crore. What is surprising is that though the company has gone much more than what it was during Q1FY08, its profit margins were much lower. So doesn’t this mean that though the business has grown, margins have declined considerably? Though YoY its income has grown 104%, its margins have slipped.
In Q1FY08, the company had 371 screens and the average revenue per user was Rs 38.20 including F&B revenue. As against this, by current Q1, the company had 802 screens in India, with 414 screens in Tamil Nadu, 96 in Karnataka and 265 in Andhra Pradesh and 27 in other states. The average revenue per user was Rs 41.49 including F&B revenue.
In Q1FY08, the company had 306.25 lakhs footfalls with an average occupancy rate of 44.26%, with a total seat capacity per show of 2.41 lakhs. As against this, in current Q1, the company had 602.85 million footfalls and the average occupancy rate dropped to 33.72%. Its total seat capacity per show stood at 5.09 lakhs.
Surviving solely on exhibition would not exactly give a superlative growth to the company and knowing this fully well, it is developing its F&B segment into more than just a provider of snacks and drinks at the theatres. It is trying to create a niche for itself in the F&B segment with 3 food courts, 1 restaurant and 110 cafeterias inside theatres in operation with the following brands – Apple Tree, Red Curry, Shivalay, Augrita, Asparagus, Thall, Cineteria, Beverage & More and the latest being Brahmin’s Kitchen, an initiative to bring traditional Brahmin food in the modern format. This division of PSTL is well on its growth path in becoming a full-fledged food and restaurant business entity.
For this year, in the first half of the current fiscal, the revenues are expected to come in from the recently released Rajanikanth – starrer film, Kuselan, for which it has bagged worldwide release rights, with 11 years Intellectual Property Rights (IPR) of much talked about, in both Tamil and Telugu for an undisclosed amount.
Yesterday, the stock price rose nearly 3% to Rs 138 on reports the company is close to acquiring UK’s oldest theatre chain Reel Cinemas, earlier Associated British Cinemas or ABC, for around Rs 200 crore.

Stay invested. Picture abhi baaki hai!

Pyramid Saimira had earlier distributed / exhibited “Sivaji” in Tamilnadu, Andhra Pradesh, Karnataka, and Malaysia with 252 screens, 928 shows daily and 6.78 lakh seats and earned considerable collections. Pyramid Saimira distributes almost eight films a month on an average in Tamil, Telugu, Hindi, Kannada, Malayalam and many other languages.

Source: sptulsian.com

Intraday Trading Calls for 29th August

Indian Stock Market may open gap up and may see a smart rally today. A good strong positive closing expected.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

MPHASIS BFL (237)

Buy Above 238.90 Target 244.25, 250.00

Sell Below 235.40 Target 231.75, 227.00

CORE PROJECTS (288)

Buy Above 290.70 Target 296.45, 304.00

Sell Below 285.55 Target 280.35, 275.00

PSTL (137)

Buy Above 138.20 Target 142.50, 146.00

Sell Below 135.70 Target 132.25, 128.00

DECCAN CHRONICLE (DCHL) (118)

Buy Above 118.85 Target 122.35, 126.00

Sell Below 116.55 Target 113.75, 110.00

VOLTAS (120)

Buy Above 120.90 Target 123.75, 127.00

Sell Below 118.75 Target 115.50, 112.00

RPL (154)

Buy Above 155.35 Target 158.45, 161.00

Sell Below 153.20 Target 151.05, 149.00

Others for Intraday: CAIRN INDIA, ACC, INDIA CEMENT, PRISM CEMENT, CHAMBAL FERTILIZER.
GOOD LUCK

Intraday Trading Calls for 28th August

Indian Stock Market may open flat to Positive, it may see a small rally in mid session and trade in small range for the day today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ESSAR OIL (212)
Buy Above 213.85 Target 217.55, 222.00
Sell Below 210.05 Target 206.45, 202.00
GSS AMERICA INFO (247)
Buy Above 249.50 Target 254.60, 260.00
Sell Below 245.05 Target 241.05, 236.00
VISHAL INFORMATION TECH (296)
Buy Above 298.80 Target 304.70, 310.00
Sell Below 293.60 Target 288.55, 282.00
STERLITE TECHNOLOGIES (174)
Buy Above 175.05 Target 178.45, 183.00
Sell Below 172.40 Target 169.05, 165.00
GUJARAT NRE COKE (101)
Buy Above 101.90 Target 104.65, 108.00
Sell Below 100.00 Target 97.50, 94.00
RPL (158)
Buy Above 158.75 Target 161.45, 164.00
Sell Below 157.20 Target 154.35, 151.00

Others for Intraday: CAIRN INDIA, HIND OIL EXPLORATION, VOLTAS, CHAMBAL FERTILIZER.

GOOD LUCK

Stock Idea: Tanla Solution

Tanla Solutions Ltd, a leading telecommunications software and services provider posted very good results for the first quarter ended 30th June 2008. There has been accelerated growth in revenues and profitability with consolidated total income of Rs. 166.86 crore, up by a whopping 86% on a YoY. Net profit increased by 69.60% to Rs. 56.41 crore. On a sequential basis, total revenues increased by 14.71%. EBITDA margins stood at 48.20% for the quarter on a consolidated basis.

During the quarter, the company acquired 85% in Finland based Openbit for US$15.81 million at a total valuation of US$18.60 million. Integration with Tanla’s UK aggregation platform has been completed Accounts & Finance, HR and R&D to be completed during Q2. It added 145 employees during the quarter, taking the global workforce to 526.

It added 18 new content providers’ clients in UK and Ireland and 20 in India. It has signed up voice portals with BSNL for setting up voice portals in all 23 circles in India, covering both GSM & PSTN networks. These services are to be live in Q2 across the country. It has also signed connectivity agreements with all operators in Spain, South Africa, Dubai and Singapore, wherein the revenues are to commence from Q2.

The stock is currently quoted at Rs.216. The company’s fortunes are directly linked to that of the telecom sector and with the sector all set to takeoff further, though right now things look a bit dull; things could only get better for Tanla during the fiscal. Best to hold on to this stock. One can also consider buying at all declines.

Source: sptulsian.com

Intraday Trading Calls for 27th August

Indian Stock Market may open Positive, it may see a small rally in mid session and trade in small range for the day today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (244.30)

Buy Above 246.05 Target 250.00, 254.50

Sell Below 243.05 Target 239.45, 235.00

GATI LTD. (67)

Buy Above 68.20 Target 70.60, 74.00

Sell Below 65.95 Target 63.55, 61.00

POLARIS SOFTWARE LABS (103)

Buy Above 104.65 Target 107.70, 111.00

Sell Below 101.50 Target 98.65, 95.00

VIDEOCON INDUSTRIES (272)

Buy Above 275.05 Target 280.35, 288.00

Sell Below 269.40 Target 264.05, 258.00

HIND OIL EXPLORATION (124)

Buy Above 124.80 Target 127.55, 131.00

Sell Below 123.20 Target 120.25, 117.00

PRAJ INDUSTRIES (173)

Buy Above 174.75 Target 178.45, 182.00

Sell Below 171.70 Target 168.25, 165.00

Others for Intraday: NIIT LTD., GRAPHITE INDIA, HEG LTD., RPL.

GOOD LUCK

Intraday Trading Calls for 26th August

Indian Stock Market may open Nagetive but it may recover from lower levels very fast and a flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (244.70)
Buy Above 246.15 Target 250.00, 254.50
Sell Below 243.05 Target 239.45, 235.00
MERCATOR LINES (79)
Buy Above 80.20 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
CHAMBAL FERTILIZER (77.70)
Buy Above 78.60 Target 81.35, 84.00
Sell Below 76.50 Target 74.45, 71.65
SEL MANUFACTURING (287)
Buy Above 290.55 Target 298.75, 310.00
Sell Below 284.20 Target 277.05, 265.00
SASKEN COMMUNICATION (153)
Buy Above 154.40 Target 157.80, 162.00
Sell Below 151.75 Target 148.25, 144.00
PRAJ INDUSTRIES (175)
Buy Above 176.65 Target 180.45, 185.00
Sell Below 173.70 Target 170.15, 166.00

Others for Intraday: INFOSYS TECH, SATYAM COMPUTER, TECH MAHINDRA, HCL TECH, MPHASIS BFL, ROLTA INDIA, RPL.

GOOD LUCK

Intraday Trading Calls for 25th August

Indian Stock Market may open gap up and remains positive for the day today. A smart & Strong rally expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (247)
Buy Above 248.45 Target 252.35, 256.00
Sell Below 245.50 Target 241.25, 237.00
MERCATOR LINES (79)
Buy Above 80.20 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
ADHUNIK METALIKS (112)
Buy Above 113.60 Target 116.40, 120.00
Sell Below 110.55 Target 108.45, 104.00
SEL MANUFACTURING (285)
Buy Above 288.55 Target 296.75, 305.00
Sell Below 281.80 Target 275.05, 267.00
INDIABULLS (251.50)
Buy Above 253.65 Target 258.80, 265.00
Sell Below 249.50 Target 245.25, 240.00
YES BANK (128)
Buy Above 130.00Target 134.25, 138.00
Sell Below 127.05 Target 124.15, 120.00

Others for Intraday: RPL. REL INFRA, AXIS BANK, KOTAK BANK, PUNJAB NATIONAL BANK, BANK OF BARODA, BANK OF INDIA.

Good Luck

Intraday Trading Calls for 22nd August

Indian Stock Market may Negative and remains the same for the day today. A small recovery expected in mid-session from lower levels.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (243)
Buy Above 244.75 Target 250.35, 256.00
Sell Below 241.55 Target 238.05, 234.00
MERCATOR LINES (79)
Buy Above 80.10 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
HIND OIL EXPLORATION (125)
Buy Above 126.20 Target 129.30, 133.00
Sell Below 124.30 Target 121.45, 118.00
VIDEOCON INDUSTRIES (275)
Buy Above 277.55 Target 282.65, 288.00
Sell Below 272.80 Target 268.05, 262.00
PETRONET LNG (61.50)
Buy Above 62.45 Target 64.75, 67.00
Sell Below 60.50 Target 58.25, 56.00
HINDALCO (129)
Buy Above 130.40 Target 133.25, 136.00
Sell Below 128.05 Target 125.55, 122.00

Others for Intraday: ASIAN OILFIELD, SHIV VANI OIL, SELAN EXPLORATION, GREAT OFFSHORE, SEL MANUFACTURING.
Good Luck

Fertiliser Companies: Good Time Ahead

The centre has agreed to release Rs.22,000 crores, in cash, to the fertilizer companies against subsidies due to them, by availing loan from SBI and interest on such loan would be paid by the Centre. Another subsidy of Rs.31,000 crores shall be paid within the next three months. Fertiliser Ministry is estimating a total subsidy of Rs.1,15,000 crores for 2008-09, against Rs.30,986 crores, provided for it, in the budget.

In view of sharp rise in crude prices in the year 2008, the prices of feedstock of fertilizer being Furnace Oil and Naptha as well as Natural Gas, have also increased. The cost of production has thus increased with domestic cost of Urea at around Rs.13,000 per MT while imported cost at Rs.31,000 per MT.

The first tranche of subsidy of Rs.30,986 crores, provided in the budget, already got exhausted in first four months. An eyebrow by the industry experts were raised at the time of budget provision of Rs.30,986 crores, considering the fact that it was inclusive of a backlog of about Rs.8,000 crores and against a subsidy of Rs.45,000 crores of year 2007-08.

In view of administered selling price of fertilizers, presently subsidy component is almost 80% of the cost of production, and for the first time, the subsidy payment was made by the government last year by issuing Fertiliser Bonds, for the first time, of Rs.7,500 crores last year. Obviously, issuing bonds helps the government to curtail its deficit as these items are appearing below the line.

Finance Minister, while presenting his Budget for 2008-09, has given a separate para for “Revisiting the Roadmap for Fiscal Adjustment, which reads as under :--

“I acknowledge that significant Liabilities of the Government on account of oil, food and fertiliser bonds are currently below the line. This accounting arrangement is consistent with past practice. Nevertheless, our fiscal and revenue deficit are understated to that extent. There is a need to bring these Liabilities into our fiscal accounting. As a first step I have shown these liabilities clearly in “Budget at a Glance”. I intend to request the Thirteenth Finance Commission to revisit the roadmap for fiscal adjustment and suggest a suitably revised roadmap.”

Inspite of having realized the flaws of understating the fiscal deficit by issuing bonds, finance ministry, this time, were also keen to issue bonds only. All the bonds received by fertiliser company were discounted by them and the present discount rate on such bonds are as high as 15 per cent. Since these bonds are not having SLR status, even banks are not too keen to buy them.

Sometime back, the government had cleared the Urea pricing policy. Out of the estimated demand of 40 million MT of fertilisers in the country, Urea demand constitutes about 27 million tonnes while domestic production is close to 20.5 million tonnes only. The gap of over 6 million tonnes is purely met by the imports, on which, subsidy burden alone comes to over Rs.15,000 crores. In 06 – 07 the total demand of Urea was at 25 million tonnes against production of 20.3 million tonnes while that of DAP at 8 million tonnes against production of 4.86 million tonnes.

With Urea pricing now in place for incremental production by the domestic companies, which is linked to Import Parity Price within a band of 85% to 95% with a floor and cap of $ 250 per MT to $ 425 per MT, would encourage the companies to expand. The present cost of production of Urea by a domestic company is at $ 300 per MT while imported Urea cost about $ 710 per MT. Considering new investments on capacity expansions or de-bottle necking, the companies would be able to realize about $ 360 per MT (85% of cap price of Urea of $ 425 per MT). But these companies were wary of receiving subsidy reimbursement by way of bonds as it was putting about 10% loss to them on redeeming these bonds.

In India, prominent Urea manufacturers are Chambal Fertilisers, RCF, (Thal Plant) National Fertilisers, (2 Plants) Indo Gulf Ferilisers, GSFC, Nagarjuna Fertilisers and Tata Chemicals all are gas based, while GNFC, National Fertilisers (3 Plants), Zuari are either FO or Naptha based urea plants. Some of the DAP makers are Coromandal Fertilisers, RCF, and Deepak Fertilisers.

With dust having settled on payment of subsidy by the government in cash as also on Urea pricing, fertiliser companies would be encouraged to go for expansion, which should result in higher production after 12 months. But let’s hope that government does not revert back, to issue of fertiliser bonds, as this time, it has not happened due to PM’s intervention in the matter.

If we have assured supply on Natural Gas and payment of subsidy by the government in cash, fertiliser companies have good time ahead.

Intraday Trading Calls for 21st August

Indian Stock Market may open flat. A small rangebound trading expected today.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

BALAJI TELEFILMS (164)
Buy Above 165.60 Target 169.35, 174.00
Sell Below 162.50 Target 159.05, 155.00
MERCATOR LINES (83)
Buy Above 83.70 Target 86.45, 89.05
Sell Below 81.60 Target 78.75, 75.
INDIABULLS (272)
Buy Above 274.60 Target 280.00, 288.00
Sell Below 269.30 Target 265.15, 260.00
SEL MANUFACTURING (314)
Buy Above 318.75 Target 326.45, 336.00
Sell Below 310.00 Target 300.05, 290
RCOM (415)
Buy Above 417.65 Target 423.85, 430.00
Sell Below 412.40 Target 406.05, 398.00
HCC (100)
Buy Above 101.60 Target 105.40, 109.00
Sell Below 99.25 Target 96.05, 92.00

Others for Intraday: CAIRN INDIA, SELAN EXPLORATION, HIND OIL EXPLORATION.

Good Luck

STOCK IDEA: HCC

Hindustan Construction Company or HCC as it is popularly known, is a well known civil engineering company. This is the company which built the Mumbai-Pune expressway, built India’s first underground metro at Kolkata and the second one in New Delhi, made the world’s longest barrage at Farakka in West Bengal, built the unique double curvature arch dam at Idukki in Kerala and also made one of Asia’s largest breakwaters at Ennore Port in Tamil Nadu. It would thus be wrong call it as a mere realty company.

The financial performance of the company for the first quarter ended 30th June 2008, like all in the sector, has been affected but mainly on account of a forex loss which, to a large extent was nullified on account of sale of one of its property.

The turnover of the company rose 22.5% on a YoY at Rs.895 crore. Its EBITDA margin was up 16% at Rs.91 crore. PBT stood at Rs.39 crore as against Rs.56 crore in the previous year same quarter owing to decline in other income (Rs 13 crores this quarter as against Rs 32 crores last year).

But what is also significant to note is that its other income includes a capital gain on sale of its land at Vikhroli (East) of Rs 61.9 crore. It also has a forex MTM loss of Rs.50.6 crore. So if both these are taken into account, the other income has increased by Rs.11.30 crore.

There is no doubt, going by the trend in the industry that there will be a slowdown in the orders. Apart from the soaring costs, being a civil engineering company, where most of the projects are dependent largely on debt, the higher interest rates at the moment would be an impediment. HCC has a well diversified order backlog of Rs 10,196 crore. It is currently executing 37 projects including the two projects it recently bagged in this quarter. HCC is the lowest bidder in four projects worth Rs 4924 crore (HCC share) and is awaiting award of the contracts. Further, it has several tenders under submission worth Rs.11,174 crore.

This means, that to a large extent, HCC will be insulated from taking a turn for the worse. It will be able to maintain its growth but rising above it would be a challenge.

Its wholly owned real estate subsidiary, HREL, is developing LEED certified, state-of-the-art, 1.8 million sq ft multi-tenanted IT Park located at Vikhroli, Mumbai. It is also developing India’s largest Hill Station, Lavasa, spread across a picturesque landscape of 12,500 acres, located 45 minutes away from Pune. Axis Bank has invested Rs.250 crore in this project in the form of convertible preferential shares and debentures. That places the valuation of Lavasa at about Rs 10,000 crore. In terms of direct sales, its June tranche of sales was sold out in about 5-6 days and till date its registered revenue from sales is about Rs.550 crore in Lavasa.

Currently quoted at Rs.97, stay invested and it makes an attractive buy if it falls below Rs.80.

Source: sptulsian.com

Intraday Trading Calls for 20th August

Indian Stock Market may open positive. Smart rally expected today in Stock Market India.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

BALAJI TELEFILMS (169)
Buy Above 170.60 Target 174.55, 179.00
Sell Below 167.70 Target 164.05, 160.00
MERCATOR LINES (80)
Buy Above 80.80 Target 83.95, 88.05
Sell Below 79.00 Target 76.15, 73.
PUNJ LLOYD (281)
Buy Above 283.50 Target 288.25, 295.00
Sell Below 279.10 Target 274.75, 270.00
SEL MANUFACTURING (310)
Buy Above 313.85 Target 322.40, 335.00
Sell Below 307.20 Target 300.05, 290
INDIABULLS REALEST (311)
Buy Above 314.20 Target 320.10, 328.00
Sell Below 308.80 Target 302.05, 295.00
ESSAR OIL (221)
Buy Above 222.75 Target 227.45, 232.00
Sell Below 219.45 Target 215.35, 210.00

Others for Intraday: RPL, RCOM, REL Infra, RPOWER, CAIRN INDIA.

Short Term Delivery Buy SELMCL 532886 (310) Target 450+
Very Short Term Delivery Buy SCI 523598 (215) Target 260+

Good Luck

Stock Idea: TATA POWER

Tata Power has a presence in all the segments of the power sector viz generation (thermal, hydro, solar and wind), transmission and distribution. The company has posted a consistent performance for the first quarter ended 30th June 2008. Its net revenues, YoY, rose 34.05 % at Rs.2026.13 crore. Sales volume rose by 1.45% at 4115 MUs against 4056 MUs in the corresponding period last year.

PBT was up 17% at Rs.266.84 crore. PAT for the quarter stood at Rs.190.55 crore. The company undertook change in the accounting method during the quarter. Regulatory adjustments which used to be made on an annual basis in the fourth quarter would now onwards be made on a provisional basis every quarter. But for this, the PAT would have been at Rs. 210.55 crore. The PAT for the corresponding period last year was Rs.190.20 crore.

One major victory for the company was winning the Court judgement in its favour to supply power to retail consumers in Mumbai, irrespective of consumption limits. The Supreme Court allowed Tata Power to supply electricity to retail consumers having a requirement of 1,000 KV or less in Mumbai, rejecting Reliance Energy's contention that Tata Power had the licence to supply power to only bulk customers.

The company has acquired a 26% stake in Dagachhu Hydro Electric Power Project, while Tata Power Trading has negotiated to purchase all the power generated from the project for a period of 25 years and the power would be delivered at the India-Bhutan border.

The company’s 4000 MW Ultra Mega Power Project (UMPP) at Mundra is on fast track and has established a global footprint by acquiring 30% stake in Indonesian Coal Mines. It has successful public-private partnerships in generation, transmission and distribution- North Delhi Power Limited with Delhi Vidyut Board for distribution in North Delhi, ‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro project in Bhutan to Delhi and ‘Maithon Power Ltd.’ with Damodar Valley Corporation for a 1050 MW Mega power project.
The stock price has been range bound between Rs.1000-1050 over the last one month. Currently at Rs.1035, best to stay invested; a bankable power stock.

Source: sptulsian.com

Intraday Trading Calls for 19th August

Indian Stock Market may open Nagetive but smart recovery and rally expected from lower levels in mid session.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ANSAL INFRA (106)

Buy Above 107.25 Target 110.20, 114.00

Sell Below 104.70 Target 101.35, 97.00

MERCATOR LINES (79)

Buy Above 80.60 Target 83.55, 87.05

Sell Below 78.00 Target 75.05, 72.

ADHUNIK METALIKS (119)

Buy Above 120.50 Target 123.75, 128.00

Sell Below 117.80 Target 114.45, 110.00

YES BANK (133)

Buy Above 134.65 Target 138.20, 143.00

Sell Below 131.50 Target 128.05, 124

GMR INFRA (101)

Buy Above 102.70 Target 105.65, 109.00

Sell Below 99.50 Target 96.05, 92.00

RPL (156)

Buy Above 157.20 Target 160.00, 164.00

Sell Below 154.75 Target 151.35, 148.00

Others for Intraday: IT & TECH SECTOR MAY PERFORM WELL AS DOLLAR IS CONTINEOUSLY GOING STRONGER. ROLTA INDIA, INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, POLARIS, MPHASIS, SASKEN COMMUNICATION, MICRO TECHNOLOGIES, CORE PROJECTS.

Short Term Delivery Buy SELMCL (322) Target 450+

Very Short Term Delivery Buy SCI (220) Target 260+
Good Luck

Intraday Trading Calls for 18th August

Indian Stock Market may open flat to Positive. Stock market India will remain in range and small but good rally expected from lower levels. A positive closing exptected Today.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

PRAJ INDUSTRIES (180)
Buy Above 182.60 Target 186.25, 190.00
Sell Below 178.70 Target 175.00, 171.00
IDEA Cellular (86)
Buy Above 87.10 Target 90.05, 93.05
Sell Below 85.20 Target 82.75, 78.
LANCO INFRA (312)
Buy Above 314.60 Target 320.25, 328.00
Sell Below 309.80 Target 303.20, 295.00
GUJARAT NRE COKE (104)
Buy Above 105.15 Target 108.75, 112.00
Sell Below 102.75 Target 98.65, 95.0
SATYAM COMPUTER (412)
Buy Above 415.00 Target 421.40, 428.00
Sell Below 409.50 Target 403.70, 395.00
3I INFOTECH (114)
Buy Above 115.50 Target 118.75, 123.00
Sell Below 112.55 Target 109.35, 105.00

Others for Intraday: IT & TECH SECTOR MAY PERFORM WELL AS DOLLAR IS CONTINEOUSLY GOING STRONGER. INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, POLARIS, MPHASIS, SASKEN COMMUNICATION, MICRO TECHNOLOGIES, CORE PROJECTS.

Good Luck

Multi Bagger: Genus Power Infrastructure Ltd

Multi Bagger: Genus Power Infrastructure Ltd Recommended Price Rs 313.65

Play on huge power investments: Genus Power Infrastructure Ltd (Genus) is a play on significant investments planned in the power sector. Company manufactures electronic meters, power inverters and undertakes turnkey projects. Genus provides closed loop metering solutions that offer operational advantages to energy utilities enabling reduction in T&D losses and thereby enhancing their revenues. Power sector reform to drive momentum:Implementation of the APDRP scheme, under which the government needs to implement 100% tamper proof metering, is expected to result into higher demand for meters over the next couple of years. Genus has an order book position of Rs 4.17 billion including turnkey projects. Company has participated in tenders more than worth Rs 48.4 billion, of which, it is the ´L-1´bidder in orders worth Rs 4.5 billion.

Tax exemption and JV with Mobix to accelerate growth: The company's second manufacturing facility in Uttaranchal (first being in Jaipur), enjoys 16% excise duty exemption for a period of 10 years, and increases the capacity from 1.4 million to 2.4 million pieces. Joint venture with Mobix has provided Genus the platform to enter high demand markets like Latin America, Africa, etc. We expect the JV to contribute 10%-15% to company's revenues going forward. The company is already doing pilot projects in Brazil for the past two years and has got all necessary approvals. Valuation and Recommendation: Genus posted a healthy revenue growth of 19.9% yoy in Q1 FY09. The operating margin expanded by 50 bps yoy to 16.9%. PAT stood at Rs 85.4 million vs Rs 69.2 million in Q1 FY08, an increase of 23.4% yoy. The company is expected to witness robust revenue and earnings growth driven by significant investments planned towards the addition of 78GW generation capacity in the 11th Five Year Plan.

Source: India Infoline Picks Report Dated: Aug 11, 2008

Intraday Trading Calls for 14th August

Indian Stock Market may open flat to Nagetive. Stock market India will remain in range and good recovery expected from lower levels. A positive closing exptected Today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

MTNL (109)

Buy Above 110.20 Target 113.05, 116.00

Sell Below 107.70 Target 105.05, 102.00

IDEA Cellular (87)

Buy Above 88.10 Target 90.65, 93.05

Sell Below 86.20 Target 84.05, 81.

YES BANK (138)

Buy Above 139.60 Target 143.25, 147.00

Sell Below 136.80 Target 133.50, 130.00

CORE PROJECTS (254)

Buy Above 256.60 Target 262.45, 270.00

Sell Below 251.60 Target 246.35, 240.0

SASKEN COMMUNICATION (156)

Buy Above 157.10 Target 160.40, 164.00

Sell Below 154.50 Target 151.20, 14700

INDIAN BANK (121)

Buy Above 122.10 Target 125.05, 129.00

Sell Below 119.50 Target 116.45, 113.00

Others for Intraday: IT & TECH SECTOR MAY PERFORM WELL AS DOLLAR IS CONTINEOUSLY GOING STRONGER. INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, POLARIS, SASKEN COMMUNICATION, 3I INFOTECH, PRITHVI INFORMATION, MICRO TECHNOLOGIES.

Good Luck

Intraday trading Calls for 13th August

Indian Stock Market may open Nagetive as all global markets trading lower. Crude Oil at $113. Stock market India will remain in range and good recovery expected from lower levels at mid session.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CHAMBAL FERTILIZER (86)
Buy Above 86.60 Target 88.45, 91.00
Sell Below 84.90 Target 83.05, 81.00
SATYAM COMPUTER (402)
Buy Above 404.70 Target 410.25, 416.05
Sell Below 398.50 Target 392.45, 385
WIPRO LTD. (433)
Buy Above 435.60 Target 441.65, 447.00
Sell Below 430.00 Target 425.05, 418.00
CORE PROJECTS (229)
Buy Above 231.00 Target 236.25, 242.00
Sell Below 227.20 Target 222.35, 216.0
SELMCL (404)
Buy Above 408.50 Target 418.00, 430.00
Sell Below 400.00 Target 392.20, 380.00
GMR INFRA (110.5)
Buy Above 111.20 Target 113.55, 116.00
Sell Below 109.10 Target 107.05, 104.00

Others for Intraday: INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, SASKEN COMMUNICATION, 3I INFOTECH, PRITHVI INFORMATION.

Short- Med Term Delivery Buy Ramsarup Industries 532690 (121) Target 175+

Good Luck

Intraday Trading Calls for 12th August

Indian Stock Market may open flat to positive. Some Profit booking expected today. But Crude Oil at $113 so market will remain in range and recovers later. A flat to positive closing expected.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (120)

Buy Above 121.45 Target 125.60, 130.00

Sell Below 118.50 Target 115.00, 112.

LANCO INFRA (352)

Buy Above 355.30 Target 361.25, 368.05

Sell Below 348.40 Target 342.25, 335

DCB (58)

Buy Above 59.60 Target 62.55, 65.00

Sell Below 57.20 Target 55.05, 53.00

RCOM (454)

Buy Above 456.70 Target 463.05, 470.00

Sell Below 451.20 Target 445.35, 438.0

SELMCL (401)

Buy Above 405.20 Target 415.00, 425.00

Sell Below 396.40 Target 386.10, 375

GMR INFRA (106.5)

Buy Above 107.65 Target 110.50, 114.00

Sell Below 105.40 Target 102.70, 100.00

Others for Intraday: Pratibha Industries, Praj Industries, HCC, WS Industries

Short- Med Term Delivery Buy Sunil HiTech Engineers Ltd. 532711 (202) Target 275+
Short Term Delivery Buy Adhunik Metaliks 532727 (120) Target 155+.

Good Luck

Intraday Trading Calls for 11th August

Indian Stock Market may open gap up as all global markets trading higher and US Markets closed higher and Crude Oil at $116. A strong rally and good positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (120)
Buy Above 121.45 Target 125.60, 130.00
Sell Below 118.50 Target 115.00, 112.
GUJARAT NRE COKE (105)
Buy Above 106.30 Target 109.25, 113.05
Sell Below 103.50 Target 100.05, 96.00

BANK OF BARODA (286)
Buy Above 288.60 Target 294.85, 300.00
Sell Below 283.70 Target 278.05, 272.00
YES BANK (138)
Buy Above 140.10 Target 143.95, 148.00
Sell Below 136.60 Target 133.35, 129.50
VOLTAS (137)
Buy Above 138.70 Target 142.55, 146.00
Sell Below 135.40 Target 132.10, 129
GMR INFRA (101.5)
Buy Above 102.25 Target 105.65, 109.00
Sell Below 100.00 Target 97.45, 94.00

Others for Intraday: RPL, RNRL, RCOM, REL, RPOWER.

Short Term Delivery Buy Adhunik Metaliks 532727 (120) Target 155+.

Good Luck

Stock Idea: Micro Technologies, Ramsarup Industries Ltd

Once again Micro Technologies (India) Ltd. (Code: 532494) (Rs.230) has announced excellent results for Q1FY09. Total revenue as well as net profit shot up by 65% to Rs.58 cr. and Rs.17.50 cr. respectively recording an EPS of Rs.16 in this single quarter itself. For FY08, it had recorded an EPS of Rs.48 with net profit of Rs.53 cr. on its total revenue of Rs.171 cr. The company is a global provider of security, safety and life-support solutions with the first of its kind and innovative products for security of home, office, shop, vehicle, laptop, mobile etc. It also has a business agreement with MTNL as well as Airtel to offer Lost Mobile Tracking System to their customers. Few weeks ago, it introduced a GPS based product called ‘Buddy Tracking System’ to know the real time location of users. Given the current share market condition, the company has again reduced the FCCB conversion price by 18% from Rs.304 to Rs.250. Although this indicates that both bondholders and the company are interested in conversion, not redemption, this will lead to further equity dilution by 45 lakh shares. For FY09, it is expected to report a topline of Rs.250 cr. with bottomline of Rs.70 cr. i.e. an EPS of Rs.54 on its fully diluted equity of Rs.13 cr. Even at modest discounting by 8 times, the share price has the potential to hit a new high of above Rs.400 in 12-15 months.

Recently, Ramsarup Industries Ltd. (Code: 532690) (Rs.122) has come out with decent Q1FY09 results while sales grew by 10% to Rs.383 cr., net profit increased by 25% to Rs.15.80 cr. on the back of better operating margins. The company manufactures a variety of steel wires (mainly used by the power industry) and TMT Bars. To cater to the rising demand, the company is expanding its total wire manufacturing capacities from 233,000 tonnes to 600,000 tonnes including the production of Low Relaxation Pre-stressed Concrete (LRPC) wires over the next two years. It has acquired 60 acres of land in West Bengal and the major plant and machinery are being imported from Italy. And to access cheaper and regular raw material supplies, the company took over Balasore Minerals Co., which has iron ore, limestone and dolomite mines located in neighbouring Orissa. But importantly, the company is merging its group company called ‘Ramsarup Loha Udyog’, which is emerging as an integrated steel producer with captive production of sponge iron, pig iron, billets, power etc. As no official figures are available for the group company, on a standalone basis the company is expected to clock a turnover of Rs.1750 cr. with PAT of Rs.65 cr. for FY09. This translates into an EPS of Rs.37 on its current equity of Rs.17.50 cr. Post merger, its equity is expected to get diluted to about Rs. 35 cr.

Source: Internet

Stock Idea: Usha Martin

PINC Research has maintained its buy rating on Usha Martin with a 12-month target price of Rs 135 in its August 8, 2008 research report. "Usha Martin Ltd. (UML) reported net sales of Rs 7 billion for Q1FY09, a YoY growth of 39% driven by sales volumes of value added products and overall buoyancy in realisations. The above factors also led to a 323bps expansion of OPM, as the company could sustain raw material cost advantage through its captive iron ore mines. Operating profit consequently rose to 1.5 billion (+62%). Net profits grew 73% to Rs 651 million."
"The stock trades at a P/E 6.2x, which we believe does not factor in the volume growth and the upcoming backward integration. We remain positive on the stock and reiterate our ‘BUY’ recommendation with a 12-month price target of Rs 135," says PINC's research report.

Investment Ideas: Great Offshore, Indoco Remedies, JSW Steel

Emkay Global Financial Services has maintained its buy rating on Great Offshore with a target price of Rs 710 in its August 4, 2008 research report. "Great Offshore’s (GOFF) Q1FY2009 pre-exceptional net profit at Rs 356 million is below our expectation primarily because of lower revenue continuation from high margin offshore segment and higher than expected repairs & maintenance cost for the quarter."
"We are not changing our earnings estimates for GOFF. The company has announced that it has called of its intention to acquire majority stake in Seadragon Offshore. Hence is absence of any near term upside from acqusition we are downgrading price target of GOFF to Rs 710. We have valued GOFF at 8X its FY2010 earnings of Rs 66 and added FY2010 estimated cash per share of Rs 180 on its book. Stock currently trades attractive valuations of 6.3X its FY2010 earnings and 3.74 X EV/EBIDTA. Maintain BUY," says Emkay Global Financial Services' research report.

Angel Broking has maintained its buy rating on Indoco Remedies with a revised 15-month target price of Rs 400 in its July 31, 2008 research report. "For 1QFY2009, the company posted Net Sales of Rs 109.5 crore (Rs 100.3 crore), a yoy growth of 9.1%. Growth during the period was mainly aided by Exports, which grew 16.1% and contributed 22.1% (20.8%) of overall sales. The company’s Domestic business, on the other hand, posted a yoy growth of 8.6% during the period, with Domestic Formulations registering a growth of 8.7%. Overall, the company ended with Profits of Rs 24.6 crore (Rs 22.1 crore)."
"At the CMP, the stock is trading at 6.1x FY2009E and 5.3x FY2010E Earnings, which we believe is attractive. Going ahead, we expect Topline to clock a CAGR of 15% over FY2007-10E primarily led by Exports. The growth in Exports would be on the back of better contribution from the Regulated markets to 22% of Sales during FY2010E (17% of Sales during FY2008) registering a CAGR of 36% over FY2007-10E. We have pruned our FY2009 and FY2010 estimates by 9.8% and 9.9%, respectively. We maintain a Buy on the stock, with a revised 15-month Target Price of Rs 400 (460)," says Angel's research report.

Emkay Global Financial Services Ltd has recommended buy rating on JSW Steel, with price target of Rs 1380, in its report dated 4th August, 2008.
“JSW Steel reported 1QFY09 results, which are significantly ahead of our estimates. Net sales stood at Rs 44.56 billion (yoy up 85.9%, qoq down 9.3%), EBITDA stood at Rs 8.15 billion. However, this includes forex loss of Rs 3.67 billion of which Rs 2.29 billion is on capital account translational loss. Adjusting for the notional Fx loss (including the impact on deferred tax on the same) EBITDA stood at Rs 10.4 billion (yoy up 46.5%, qoq down 1.5%) and APAT stood at Rs 4 billion (yoy up 35.7%, qoq up 30.1%). JSW reported Adjusted FDEPS of Rs 20. We believe a large part of this performance is attributable to the exports where we believe the realization is significantly higher as compared to the domestic markets. At CMP of Rs 797, the stock is trading at 8.6x FY09 and 5.7x our FY10 FDEPS estimate of Rs 93 and Rs 138 respectively. On EV/EBITDA, the stock currently trades at 5.7x and 4.3x FY09 and FY10 estimates. We maintain BUY on the stock with target price of Rs 1,380 which is 10x our FY10E consolidated FDEPS”.

Stock Idea: Kanoria Chemicals

Kanoria Chemicals is a leading maker of chemical intermediates of India. But its performance for the first quarter ended 30th June 2008 has not been too encouraging. Rising costs and exchange loss have dented the profit margins.
YoY, the company’s sales revenue was up 19% at Rs.126 crore. Operating expenses rose 17% and consequently, EBIDTA was down marginally by 1.75% at Rs.26.36 crore. PBT fell down further by 37% at Rs.7.68 crore. OPM was down from 25.39% to 20.92%.
The company suffered an exceptional MTM loss of Rs.6.24 crore on the various FCCB related transactions and this pulled down the PAT, which was down 45% at Rs.5.68 crore. NPM thus declined sharply from 9.72% to 4.51%. In Q1FY08, the company had an exceptional gain of Rs.6.74 crore on its forex transactions.
The company recently commissioned Chlorinated Paraffin project with an installed capacity of 11,500 TPA. It recently completed the acquisition of land, around 30 acres, for its greenfield project in Vizag to manufacture pentaerythritol. The new unit will have an annual capacity of 10,000 tonnes, with an estimated capex of Rs 175-200 crore, to be spread over two years. This unit is expected to go on stream by March 2010. It already has one more pentaerythritol unit in Ankleshwar, Gujarat.
Kanoria Chemicals also has a caustic soda manufacturing facility at Renukoot and it recently commissioned the expanded capacity from 90,00 to 130,000 tonnes per year. IFC, the private arm of the World Bank Group, has invested up to $20 million in the company, to fund the expansion.
The company expects to end the current fiscal on a high note as it expects higher growth due to the expanded capacity also going online. The price of caustic soda has been on the rise and if the company manages to bring down the costs, then it may be able to reap better gains. Stay invested.

Source: sptulsian.com

Stock Idea: Mysore Cement

Mysore Cements, earlier an SK Birla company, it is now a subsidiary of Cementrum I. B.V, Netherlands, which is 100% controlled by HeidelbergCement AG.
The financial performance of Mysore Cements can be rated as being just about ok. The company ends its year on 31st December, hence these are the second quarter results for the period ended 30th June 2008. Rise in the costs and inability to increase the prices seems to have impacted the margins.
YoY, net sales was up 20% at Rs.165.78 crore. Operating expense rose 6% and EBITDA was down 10% at Rs.28.45 crore. PBT was down 13% at Rs.24 crore and PAT was down 14% at Rs.23.91 crore. OPM was down from 19.53% to 17.46% and NPM was down from 16.93% to 14.42%. The inability of the company to pass on the soaring costs to the consumers has affected the overall profitability of the company. Companies had voluntary agreed to hold prices as part of the Government measure to cool down the raging inflation.
The net realisations have been down and though the company was able to match the demand with supply, due to inability to increase price, it had to absorb the losses and cut costs. Its overall input costs have been going up by 15-20%. The company cut down on its raw material consumption due to more efficient fuel and power consumption.
The company had initiated a VRS last year and hence its increase in employee cost has been just 2% and now the company is taking all possible cost cutting measures on internal factors, as it has no control on the external factors.
The company has now sought approvals to expand its Clinkerisation capacity front 1.2 MTPA to 3.1 MTPA at Madhya Pradesh, expand its cement grinding capacity Uttar Pradesh and Madhya Pradesh. It also seeks to expand its cement manufacturing capacity from 0.4 MTPA to 1.2 MTPA at Karnataka. It has placed some orders of machinery and expects the expanded plant in Karnataka to go on stream by 2010 and that in Madhya Pradesh and Uttar Pradesh by 2011. Its capacity by 2011 will thus stand increased from the present 2.1 million tonnes, to 6 million tonnes.
Cement stocks have been on the buyers since the past few days and that is because the markets expect the cement companies to hike their prices once the monsoon season is over and by then, demand is also expected to pick up. Currently quoted near its low of Rs.25 at Rs.34, stay invested.

Source: sptulsian.com

Intraday Trading Calls for 8th August

Indian Stock Market may open flat to nagetive. A nagetive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

TRIVENI ENGINEERING (111.50)
Buy Above 112.75 Target 115.60, 119.00
Sell Below 110.00 Target 107.1, 102.50
RENUKA SUGAR (133)
Buy Above 134.40 Target 137.45, 141.05
Sell Below 131.70 Target 128.05, 124.00
GUJARAT ALKALI (164)
Buy Above 165.55 Target 168.45, 172.00
Sell Below 162.50 Target 159.05, 155.00
JAIPRAKASH ASSOCIATES (187)
Buy Above 188.75 Target 192.20, 196.55
Sell Below 185.40 Target 182.05, 178.00
VOLTAS (144)
Buy Above 145.20 Target 148.55, 152.00
Sell Below 142.50 Target 139.05, 136.00
MIC ELECTRONICS (135)
Buy Above 136.70 Target 140.20, 144.00
Sell Below 133.20 Target 129.05, 125.00

Others for Intraday: PRITHVI INFO, VAKRANGEE SOFTWARE, PRISM CEMENT, Crew BOS Products Ltd, SAKTHI SUGAR.
Good Luck

Stock Idea: Allahabad Bank

Established in 1865, it is one of the oldest banks in India and though one of the profitable banks too, the first quarter ended 30th June 2008 financial performance of the company has not been too good. Its net profit for the period dropped by around 53%, YoY and this was mainly on account of the provisioning made for Rs 264.08 crore owing to the increase in yield of government securities (G-Sec). The yields went up due to inflation and hence it affected the margins. Apart from this major glitch, the rest of the performance was up to the mark.
Total income increased by 20.48 per cent at Rs (Rs 1,535.10 crore). The total business stood at Rs 1, 23,451 crore, up from Rs 1,03, 378 crore. Operating profit increased by 6.18% at Rs.306.73 crore.
Deposits grew by 16.53% at Rs.73,207 crore while advances went up by 23.87% at Rs.50,244 crore. Net NPA was at 0.75% as against 0.76% in Q1FY08. The total investment portfolio of the bank was at Rs 24,974 crore, of which 58% was in the Held-to-Maturity category while the rest was in Available for Sale category.
The Bank has squashed all rumours and stated categorically that it has no plans to raise capital in the immediate future. Though the Bank has the Boards approval to raise Rs.300 crore, it feels that the current market situation is not right and would prefer to wait out till things stabilize. It is yet to receive the nod from the Government for its proposed rights issue.
The Bank opened 12 more branches during the quarter taking total number of branches to 2165 (excluding 1 Foreign Branch). The bank plans to open a branch in Bangladesh and convert its representative office in China into a full-fledged branch. On the domestic front, it has received Reserve Bank of India’s approval to open 113 branches this year and has also applied to RBI for 180 more branches.
Currently quoted at Rs.64, it is closer to its low of Rs.53 than to its high of Rs.143. Stay invested.

Source: sptulsian.com

Intraday Trading Calls for 7th August

Indian Stock Market may open flat to nagetive. A flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMR INFRA (101.50)
Buy Above 103.20 Target 106.60, 110.00
Sell Below 100.40 Target 96.50, 93.05
SUZLON ENERGY (241)
Buy Above 243.50 Target 247.75, 252.05
Sell Below 239.40 Target 235.05, 231.00
INDIA CEMENT (162)
Buy Above 163.55 Target 166.45, 170.00
Sell Below 160.50 Target 157.05, 153.00
MOSER BAER (97)
Buy Above 98.20 Target 101.20, 104.55
Sell Below 95.80 Target 93.05, 90.00
VOLTAS (138)
Buy Above 139.40 Target 143.05, 147.00
Sell Below 136.50 Target 132.45, 128.00
MERCATOR LINES (93.50)
Buy Above 94.70 Target 98.20, 102.00
Sell Below 92.10 Target 89.05, 86.00

Others for Intraday: PRITHVI INFO, 3i Infotech, UNITECH, INDIABULLS REALEST, HDIL, DLF.

Med Term Delivery Buy Prithvi Information Solutions 532675 (147) Target 240.
Short Term Delivery Buy Prism Cement 500338 (37) Target 50+

Good Luck

Intraday Trading Calls for 06th August

Indian Stock Market may open gap up as all global markets trading higher and US Markets closed higher yesterday and Crude Oil at $118. A strong rally and good positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (122)

Buy Above 123.20 Target 126.60, 130.00

Sell Below 120.40 Target 116.50, 113.05

GUJARAT NRE COKE (104)

Buy Above 105.30 Target 108.75, 113.05

Sell Below 102.70 Target 98.75, 95.00

BANK OF BARODA (298)

Buy Above 300.90 Target 306.65, 314.00

Sell Below 295.70 Target 290.05, 285.35

YES BANK (138)

Buy Above 140.10 Target 143.95, 148.00

Sell Below 136.60 Target 133.35, 129.50

JAI BALAJI INDUSTRIES (308)

Buy Above 310.90 Target 316.55, 324.00

Sell Below 305.40 Target 300.10, 294.00

APTECH LTD. (210)

Buy Above 212.25 Target 216.65, 221.00

Sell Below 208.10 Target 204.45, 200.00

Others for Intraday: BONGAIGAON REFINERY, HPCL, BPCL, IOC, ESSAR OIL, VOLTAS.

Short Term Delivery Buy Mercator Lines 526235 (93) Target 115+.

Short Term Delivery Buy Prism Cement (36) Target 50+
Good Luck

Intraday Trading Calls for 05th August

Indian Stock Market may open flat to positive. A small rally and good positive closing expected today as crude oil goes down to $120.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (121)
Buy Above 122.55 Target 125.60, 129.20
Sell Below 119.80 Target 116.50, 113.05
GUJARAT NRE COKE (110)
Buy Above 111.20 Target 114.05, 117.55
Sell Below 109.20 Target 106.55, 103.60
PRAJ INDUSTRIES (188)
Buy Above 189.90 Target 193.75, 198.00
Sell Below 186.20 Target 183.05, 179.35
GMR INFRA (102)
Buy Above 103.10 Target 106.75, 110.00
Sell Below 100.00 Target 97.35, 94.50
IBREALEST (304)
Buy Above 307.30 Target 312.55, 320.00
Sell Below 301.40 Target 296.45, 290.00
NAV BHARAT VENTURE (270)
Buy Above 272.50 Target 276.65, 281.00
Sell Below 268.10 Target 264.05, 260.00

Others for Intraday: HPCL, BPCL, IOC, ESSAR OIL, VOLTAS.

Short Term Delivery Buy Mercator Lines 526235 (91) Target 115+.

Good Luck

Investment Pick: Kamanwala Housing

Investment Analyst, Ashish Chugh is of the view that Kamanwala Housing is looking undervalued.
Chugh told CNBC-TV18, "Kamanwala Housing Construction is a real estate company located in Bombay; it is doing most of the projects in Bombay only. This company was not doing well till about the year 2006. The company saw a turnaround in performance in financial year 2006-07, wherein the revenues of the company grew six fold from about Rs 12 crore to Rs 80 crore to Rs 85 crore and the PAT increased from about Rs 50 lakh to about Rs 12.5 crore. That was the starting point for this company and from there on, this company has maintained its performance and has given good performance QoQ."
He further added, "This Company is doing projects mainly in Bombay. Some of the projects which it is doing in Bombay are, one is the commercial project called Pinnacle corporate park which it is doing at BKC ( Bandra Kurla Complex), this is about 75,000 sq. ft and besides that, this company is doing a residential project in Malad (West) having a total saleable area of about 4 lakh sq. ft and in the first phase, it is doing about 2 lakh sq ft. It is also doing a residential project in Santacruz (West) which is about 60,000 sq. ft. It has also bought a building called Vallabh Terraces in Opera House in Bombay and it is doing re-development of this building and will probably sell this building after the re-development. It is also doing a commercial and residential project in Versova in Bombay and also developing the famous Filmistan Studio into a residential cum commercial project.”
“It has about 8-9 lakh sq. ft of area from Bombay alone and besides that the company has bought land in New Bombay also. It has bought about 10,000 meters of land at a total consideration of about Rs 15 crore. It is going to develop a residential and commercial project there also. To de risk the business model, it has diversified to Hyderabad also where in it has taken about 20% stake in a project which is spread over an area of about 35 acres."
"For FY08, this company has achieved the sales of Rs 96 crore. The PAT is of about Rs 24.5 crore. It’s got a small equity of about Rs 6.4 crore which translates into an EPS of Rs 40 for FY07-08. In the first quarter also, the performance has been maintained there. The topline is increased about 92% to about Rs 33 crore and the bottom-line is up by about 37% to Rs 4.25 crore. You may say that when the real estate market is bad and most analysts are predicting that the real estate prices might correct in Bombay. Why this stock, the reason this is trading at very reasonable valuations, it is going at a PE ratio of less than 2.5."
"The promoters have been increasing their stake for the past few quarters; they have increased their stake from about 40% to about 45% through the preferential route. The one which gives about confidence of sustainability of earnings is that the company has recently declared a bonus in 1:1 ratio. Declaring a bonus in an industry which most people perceive not doing well that only gives and talks about the confidence which the promoters have when talking about the sustainability of the earnings in future, so this stock is trading at a reasonable valuation and it is available cum bonus and dividend which is of 25%. Also, the promoters increasing their stake at a market cap of Rs 60 crore. This stock looks undervalued."

Source: moneycontrol.com

Stock Idea: Gujarat NRE Coke

With coal prices going through the roof, it was a foregone conclusion that Gujarat NRE Coke would post a superlative performance for first quarter ended 30th June 2008, it was only a question of “how superlative”.
YoY, exuberant would be more like it. On a whopping 154% rise in net sales, the company’s EBIDTA rose over two times, the PBT of the company rose 2.26 times and PAT was up by a whopping 2.20 times at Rs.94.40 crore. But the margins indicate that there is some pressure. OPM was down from 42.10% to 34.68% and NPM was down from 28.76% to 25%.
QoQ, the performance was mixed. Though net sales was down marginally by 0.8%, it managed to reduce its operating costs by 14.38% and this helped the EBITDA which was up 23%. It reduced its interest outgo by 13% and depreciation rose 31%. PBT rose 28%. Its taxation for the quarter was down 22% and this further helped boost the net profit, which was up 47%. Unlike YoY, the QoQ margins showed an improvement. OPM was up from 27.85% and NPM from 16.87%, which is quite substantial.
The company currently manufactures one million tonne of coke from its three existing facilities in Gujarat and Karnataka. An additional 0.25 mt capacity is being commissioned at Dharwad, which is expected to go on stream by March 2009. It plans to set up a one million tonne coke manufacturing facility at Nellore in Andhra Pradesh, at a capex of Rs.450 crore, to be financed mostly from internal accruals and is expected to be commissioned by 2010. It has dropped its rights issue plan.
It has also lined up Rs.600 crore worth of power projects. It has installed 30 MW wind power capacity and installation of another 30 MW at Rs.170 crore is to be completed by September 2008. The company is also installing 60 MW waste heat recovery power plants at its coke plants, costing Rs.300 crore. Once all these go on stream, the total power generation capacity is expected to be 147.5 MW.
The company has also lined up investments tuning over $500 million (of which it has already invested $300 million) in developing its two coal mines in Australia, which is expected to take its total coal production capacity to 7 million tonnes by 2012-13. This investment is also being funded through internal accruals. Goes on to show, how much money the company managed to make due to soaring coal prices. And it’s gratifying to know that instead of sitting on these gains, it is ploughing back the gains and distributing to shareholders also. It has recommended a bonus issue in the ratio of 2 shares for every five held. This is the sixth bonus since 1995-96.
The average net realisation of the company has gone up from Rs 8,600 a tonne to Rs 19,100 a tonne during Q1. From $450 a tonne in April, spot coke prices reached $600 a tonne in June and is now ruling at $700. The company sells 60% of its production on spot basis.
Clearly, the prospect for coal remains highly bullish in the current fiscal too. One can consider buying this stock at every decline for good long term gains.

Source: Sptulsian.com

Stock Idea: Bank of Rajasthan

Total income of the bank, YoY, rose 25% at Rs.341.40 crore. Treasury operations were at Rs.116.46 crore as against Rs.97.91 crore in Q1FY08; Corporate or wholesale banking income was at Rs.126.92 crore while retail banking income was at Rs.92.26 crore. PBT was down 11% at Rs.37.76 crore. The bank managed to reduce its taxation by 44% and that helped the net profits, which was more or less flat at Rs.30.92 crore as against Rs.30.17 crore in Q1FY08.

Its capital adequacy was at 12.26% compared to 11.90% last Q1. Gross NPA was at 1.65%, down from 2.70% while net NPA was at 0.42% as against 0.62% in previous Q1.

The Bank is now well on its path to make a bigger presence in the Indian banking sector. It has converted all its branches online on a pan India basis and has emerged as one of the most technology driven private sector banks. The bank currently has a network of 469 branches and has applied to RBI for an additional 40 branches.

The bevy of activity in the bank, specially with so many FIIs picking up a stake in the bank indicates that many are stocking up their stake, in a run-up to the opening up of the banking sector to foreign investors in April 2009. Currently, this is one of the most profitable banks in the Indian banking sector, and it is little wonder then that most of the FIIs want to be prepared to hike their stake beyond 5% once they are presented with the opportunity.

Banking stocks might not be too good right now, but stay invested, as once April 09 comes, the entire dynamics of the banking industry will change.

Source: sptulsian.com

STOCK IDEA: GMR INFRA

All those familiar with this website, would know that this has been one of the stocks which we have been recommending steadfastedly. The stock price has come down, keeping in tandem with the stock indices, which have also slipped down considerably. Yet despite the fall in the stock price and the current Q1 results, which have not exactly been trailblazing, we stand by our recommendation. This is a stock, which should not be viewed on a QoQ basis, GMR Infra is more of a long term stock and its real value would get recognized only on a long term basis.
For the first quarter ended 30th June 2008, the consolidated performance of the company has been good when one looks at the improvement in the sales but the forex losses, higher fuel charges, depreciation and interest outgo, plus the not-so-good performance of some of its subsidiaries have dented the profit margins. YoY, net sales was up 86% at Rs.885.47 crore. Operating expenses rose by a whopping 91% and of this, over 59% constituted of the fuel cost. EBITDA was up 55% at Rs.244.92 crore. The interest outgo rose from Rs.37.53 crore to Rs.68.91 crore. Depreciation was up from Rs.40.64 crore to Rs.80.16 crore. This higher interest and depreciation outgo is on account of the starting of its Hyderabad airport.Profit before tax and exceptional item was at Rs.96.57 crore as against Rs.79.58 crore in Q1FY08, a rise of 21%. Its subsidiaries, Vemagiri Power Generation Ltd (VPGL) and GMR Hyderabad International Airport Ltd (GHAIL) together have accounted for a notional foreign exchange translation loss of Rs.45.59 crore as against an exchange gain of Rs.9.33 crore in previous quarter. This loss/gain is with reference to their project loans. However, both these subsidiaries have adequate foreign currency revenues to provide hedge against any currency fluctuation risks that may arise as and when the interest payments and principal repayments of these loans are made. Also, GHIAL has not been able to levy the User Development Fee (UDF) on overseas passengers for three weeks in April 2008 and on domestic passengers for the entire current quarter, pending approval from the Government of India.
After maintaining its tax at almost the same levels, the PAT was down 9.72% at Rs.41.90 crore. These consolidated results include the accounts of GMR Infrastructure Ltd, its subsidiaries, joint ventures and associates. The overseas joint venture entity, being ´Istanbul Sabiha Gocken Uluslarasi Havalimani Yatirim Yapum Ve Isletme Sirketi (SGIA)´ has been accounted as per Accounting Standard 27 on Financial Reporting of Interests in Joint Venture based on 40% shareholding.VPGL has now suspended its power generation activities due to non-availability of natural gas and it has also incurred an operating loss of Rs.27.52 crore in current Q1. This too has dented GMR’s margins. Following the expiry of the seven year Power Purchase Agreement, GMR Energy Ltd´s 220 MW plant at Tanir Bavi near Mangalore in Karnataka ceased to operate. Work has been undertaken to relocate the plant to KG Basin, near Kakinada in Andhra Pradesh to operate it as merchant plant after changes to run the plant with natural gas as fuel. This will take some time to generate income and by next fiscal, this unit too should be able to contribute to the margins. Also through its step-down subsidiary, GMR Energy Global, has entered into necessary arrangements to acquire 50% equity stake in a Dutch company - InterGen NV by means of compulsory convertible debentures. It has also given a corporate guarantee up to a maximum of US$1.3 billion to the mandated lead arrangers on behalf of a fellow subsidiary to enable it to raise debt for financing the aforesaid acquisition.
This blip in the performance is just that, just a blip. GMR Infra is a great infrastructure story - its presence in the airport, in the road project, in the power generation, SEZ, property development all still makes it a great stock. Things will only get better once its realty development begins at Delhi and Hyderabad. The stock price is just a reflection of all the infrastructure and realty stocks listed on the bourses.One must take a long term call in GMR Infra because all these infrastructure projects would start giving profits in one year’s time. There is no point in taking a day to day call. Keep some patience and the returns would come, stay invested.

Source: sptulsian.com

Intraday Trading Calls for 01st August

Indian Stock Market may open nagetive as all global markets trading lower and US Markets closed lower yesterday. A small recovery can be seen in mid session but nagetive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (114.5)
Buy Above 116.20 Target 119.60, 123.20
Sell Below 112.80 Target 110.20, 106.55
TRIVENI ENGINEERING (93)
Buy Above 93.80 Target 96.05, 99.00
Sell Below 91.70 Target 89.25, 86.75
YES BANK (127)
Buy Above 128.80 Target 132.05, 136.00
Sell Below 125.50 Target 122.30, 118.35
GWALIOR CHEMICAL (117)
Buy Above 118.70 Target 121.60, 124.80
Sell Below 115.40 Target 112.20, 108.70
ALEMBIC LTD. (45.50)
Buy Above 46.30 Target 48.15, 50.55
Sell Below 44.60 Target 42.80, 41.00
SASKEN COMMUNICATION (143)
Buy Above 144.60 Target 147.35, 151.00
Sell Below 141.50 Target 138.45, 135.25

Others: SAIL, TATASTEEL, BHUSHAN STEEL, Hindalco, Welspun Gujarat.
Good Luck