Stock Idea: Reliance Communications (RCom)

Reliance Communications (RCom) stock surged more than 8% yesterday on news that it will buyback FCCBs at a discount of 52.5% for $25 million, becoming the first Indian company to do so after RBI relaxed the norms. R-Com had issued zero-coupon FCCBs in February 2007, to raise USD 1 billion. The premature buy back does not just reduce the liability, but this would mean that the Rcom after buying back these FCCBs, would now go for new FCCBs at today’s rates, thus keeping its capex plans intact and at the same time, adjusting liabilities to current rates.
RCom is the number two operator in the market of more than 320 million mobile users. And hence its growth is watched with a lot of interest and the pressure of growth and the slowdown seems to have crept in during Q2FY09. This quarter has reported the slowest profit growth rate ever.
For the second quarter ended 30th September 2008, revenue growth was to the tune of 23.3% at Rs. 5,645 crore from Rs. 4,579 crore in Q2FY08. While the company’s broadband business grew by 37.8 per cent, its wireless grew by 16.5% and global practices by 28.6%.
EBITDA was at Rs. 2,302 crore, up 17.3% on a YoY. EBITDA margin was at 40.8%, with strong contributions across all businesses - Wireless, Global and Enterprise. It ended the quarter with a net profit of Rs. 1,531 crore, up higher by 17.3%.
On the face of it, looks good but when you delve deeper you realise that the company has been quite smart and has presented a 17% growth in PAT due to non provision of MTM forex loss. Had the company followed AS-11, its net profit would have been lower by Rs 284 crore for realised and Rs 1,451 crore for unrealised currency fluctuations during the quarter, said the company’s notes to the accounts.
In November 08’, the company added 1.77 million new mobile phone subscribers, taking its total user base to 59.57 million.
The slowing down of profit growth rate was attributed to falling average revenue per user (ARPU), which fell by 3.9% to Rs.271 crore from Rs.282 crore in Q2FY08. The average minutes of use a customer (on a per month basis) was almost flat at 423 against 424 in Q2FY08.
FY09 is the peak of the company’s capex plans, it has spent Rs.4,773 crore during the quarter and these are being funded through long term borrowings and forex bonds. Interest costs would be an area of concern in the coming months.

Source: sptulsian.com

Intraday Trading Calls for 30th December

Indian Stock Market may open flat to positive but remains very volatile.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ROLTA INDIA	Buy Above	112.50	118.15	124.00
	Sell Below	109.70	106.15	102.00
REL COM	Buy Above	214.80	220.05	228.00
	Sell Below	210.60	205.15	200.00
RANBAXY	Buy Above	234.20	240.15	248.00
	Sell Below	230.05	225.50	220.00
MAYTAS INFRA	Buy Above	170.20	175.65	182.00
	Sell Below	166.40	161.35	156.00
HIND OIL EXPLORATION	Buy Above	65.30	68.45	72.00
	Sell Below	63.40	61.15	58.00
VIDEOCON INDUSTRIES	Buy Above	115.70	120.15	125.00
	Sell Below	112.50	109.35	105.00
CAIRN INDIA	Buy Above	173.60	178.25	184.00
	Sell Below	170.35	166.50	162.00

Short to Med Term Delivery Buy (Penny Stock):

LG Balakrishnan & Bros Ltd
(500250)
CMP Rs. 9.50/- Target Rs. 15-18/-

ELECTROSTEEL CASTING (500128) CMP Rs. 14/- Target Rs. 28-35/-.

GOOD LUCK

Intraday Trading Calls for 29th December

Indian Stock Market may open flat to positive but remains very volatile.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
HDIL	Buy Above	128.65	133.45	138.00
	Sell Below	125.40	121.55	118.00
INDIABULLS REALEST	Buy Above	130.80	135.10	140.00
	Sell Below	127.55	124.20	120.00
RANBAXY	Buy Above	218.75	223.15	228.00
	Sell Below	215.30	211.45	207.00
SATYAM COMPUTER	Buy Above	137.20	142.35	148.00
	Sell Below	133.60	130.15	125.00
HPCL	Buy Above	273.50	279.15	285.00
	Sell Below	269.20	265.45	260.00
SUN TV	Buy Above	166.50	171.15	176.00
	Sell Below	163.40	160.05	156.00
OPTO CIRCUIT	Buy Above	88.60	93.15	98.00
	Sell Below	85.70	83.15	80.00

Short to Med Term Delivery Buy (Penny Stock):

LG Balakrishnan & Bros Ltd
(500250)
CMP Rs. 9.40/- Target Rs. 15-18/-

ELECTROSTEEL CASTING (500128) CMP Rs. 15/- Target Rs. 28-35/-.

GOOD LUCK

Intraday Trading Calls for 26th December

Indian Stock Market may open positive & good positive closing expected. But high volatility can be seen in today's trade.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
HDIL	Buy Above	131.80	136.20	142.00
	Sell Below	128.40	125.15	121.00
INDIABULLS REALEST	Buy Above	133.75	138.15	144.00
	Sell Below	129.70	125.30	121.00
RENUKA SUGAR	Buy Above	65.50	68.45	72.00
	Sell Below	62.80	60.15	57.00
GSFC	Buy Above	70.80	74.05	78.00
	Sell Below	68.70	65.50	63.00
HPCL	Buy Above	283.60	288.35	295.00
	Sell Below	279.20	275.15	270.00
ROLTA INDIA	Buy Above	123.70	128.10	134.00
	Sell Below	120.60	116.35	112.00
BANK OF BARODA	Buy Above	270.60	276.45	282.00
	Sell Below	266.40	261.25	255.00

Short to Med Term Delivery Buy (Penny Stock):

LG Balakrishnan & Bros Ltd
(500250)
CMP Rs. 9.20/- Target Rs. 15-18/-

GOOD LUCK

Stock Idea: Crompton Greaves

Electrical engineering goods manufacturer Crompton Greaves, was beaten down by the investors on the bourses yesterday. It was down by around 4% on news that it has decided to scale down its capital expenditure, due to a softening demand, in the aftermath of the global economic crisis. It has decided to scale down its capex for the fiscal to Rs 150 crore from the earlier target of Rs 220 crore. Till date, the company has spent Rs 130 crore but given the volatility in the market, by March 2009, it will only spend another Rs 20 crore. For the fiscal 2009-10, the company will continue to have a capex in the range of Rs 200 crore. If the macro situation is not too good, it makes more economic sense to scale down rather than engage that money which might not even earn the returns. Crompton is not an isolated company which has scaled down capex, it is like the rest of the world, a victim of the global crisis and slowdown.

The company overall remains strong, fundamentally. For the second quarter ended 30th September 2008, it posted a PAT of 120.12 crore, up 32.09% on a YoY and total income rose to Rs.2,098.35 crore, up from Rs.1,583.61 crore in Q2FY08. On a consolidated basis, total income stood at Rs.2,105.28 crore against Rs 1,589.58 crore in the earlier year and PAT was up 32.09% at Rs 120.12 crore. Most importantly, in this era of high interest costs, this company remains totally debt free.

Crompton’s total order book position for current fiscal stands at Rs 7,400 crore with the international business contributing Rs 4,400 crore and the rest from domestic market, to be executed over the next 12 months. By then the slump, especially in the domestic markets would have corrected and being a major supplier to the power sector, slowdown or no slowdown, this is one sector which in India will continue to attract business. It hopes to end the fiscal with a growth of 18-20% in topline and bottomline.
Cutting down the capex is not a huge negative and those convinced about the fundamentals of the company should stay invested.

Source: sptulsian.com

Intraday Trading Calls for 24th December

Indian Stock Market may open negative but sharp recovery expected from lower levels in mid session today & a good positive closing expected.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GPIL	Buy Above	73.20	76.15	80.00
	Sell Below	71.40	68.35	65.00
RCOM	Buy Above	218.60	224.50	230.00
	Sell Below	214.70	209.15	205.00
BALAJI TELE	Buy Above	65.20	68.45	72.00
	Sell Below	62.80	60.15	57.00
BAJAJ HINDUSTAN	Buy Above	63.50	66.40	70.00
	Sell Below	61.70	58.60	56.00
HCL TECH	Buy Above	126.70	131.50	136.00
	Sell Below	123.10	119.50	115.00
ROLTA INDIA	Buy Above	124.70	129.20	134.00
	Sell Below	120.60	116.35	112.00
BANK OF BARODA	Buy Above	262.80	268.45	275.00
	Sell Below	257.40	252.60	246.00

Short to Med Term Delivery Buy (Penny Stock):

LG Balakrishnan & Bros Ltd
(500250)
CMP Rs. 9.20/- Target Rs. 15-18/-

GOOD LUCK

Stock Idea: Bajaj Hindustan

Bajaj Hindusthan, the country's largest sugar manufacturing firm, posted a consolidated net loss of Rs 197.62 crore in the financial year ended September 2008 as against a consolidated net loss of Rs 4.01 crore last year. This loss was on a total income rose to Rs 2,120.26 crore in FY08 from Rs 1,812.86 crore in the last fiscal.
On a standalone basis, the net loss was lower at Rs.50.17 crore when compared to the consolidated net loss but higher than the Rd.45.65 crore net loss it posted last fiscal.
Despite the loss, company has declared a dividend of 60% at the rate of 60 paise on shares of face value of Re.1/- for 2007-08.
If one looks carefully, it becomes quite apparent that it is only due to forex loss and higher interest outgo in Q4, that the net loss has burgeoned. In fourth quarter ended 30th September 2008, the PBT of Rs.131.57 crore was due to forex loss of Rs.71.4 crore, which was earlier not booked due to non completion of capex. This apart, it also had a higher interest outgo of Rs.59.02 crore in Q4 against Rs.139.44 crore of FY08 on completion of capex,
UP government has recently announced SAP for sugarcane for season 08-09 at Rs.1,400 per MT. This year, lot of damage has been caused to the sugarcane crop in UP and hence mills are not likely to operate for more than 150 days in this season against, an average pf 180 days in the earlier years. So there would be mad scramble to purchase sugarcane by the mills even at a higher rate of more than Rs 1,400 per MT.
All this would give a great advantage to company, being the largest player. Due to lower estimated sugar production of India for season 08-09, at about 20 million tonnes, sugar prices will start rising from April 09, once general elections in the country happens and crushing in UP and Maharashtra stop. Sugar price can rise by about Rs 3 to Rs 4 per kg, after April 09, which will give huge advantage to the sugar mills.
Season 08-09 and season 09-10 is going to be excellent for the company and despite the loss, given the positive outlook for the sector, qualifies a good buy at the current rate of Rs.60.

Source: sptulsian.com

Intraday Trading Calls for 23rd December

Indian Stock Market may open negative and see some profit booking but some recovery expected from lower levels in mid session today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ESSAR OIL	Buy Above	93.20	96.35	100.00
	Sell Below	91.15	88.35	85.00
GULF OIL	Buy Above	46.50	48.65	51.00
	Sell Below	44.80	42.30	40.00
ZEE ENTE	Buy Above	141.20	145.20	150.00
	Sell Below	137.60	134.10	130.00
BAJAJ HINDUSTAN	Buy Above	61.30	64.10	67.00
	Sell Below	58.25	55.55	53.00
ROLTA INDIA	Buy Above	123.10	128.15	134.00
	Sell Below	119.70	115.40	111.00
HDIL	Buy Above	157.50	162.15	168.00
	Sell Below	154.35	150.45	145.00
SUJANA TOWER	Buy Above	24.75	26.45	28.00
	Sell Below	23.60	21.50	20.00

Others for Intraday: GHCL & Lloyd Electric.

GOOD LUCK

Stock Idea: Lloyd Electric & Engg.

Lloyd Electric & Engg. (Rs. 24)

BSE Code : 517518

Market Cap : Rs. 75 Cr.
TTM EPS : Rs. 15
Pmt Stake : 32 %
52W H/L : Rs. 222/21
P/E Ratio : 1.6x
Dividend : 10%
Incorporated in 1988, Lloyd Electric and Engineering Ltd (LEEL) was primarily setup as a backward integrated unit of Fedders Lloyd Corp, the leading group company to manufacture coils for air conditioners. Since then it specializes in the custom design and manufacture of heating and cooling coils including 'U' bend and return bend tubes for heat exchanger coils, system tubing, header line etc and sheet metal items for air-conditioning and refrigeration applications. Over the year it has emerged as India's largest manufacturer of evaporator and condenser (E&C) coils with around 60% market share. With the increase in disposable income, change in lifestyle and drastic fall in prices, demand for air conditioners both in retail & institutional segment is rising at healthy pace. Financially, to fund its growth plan LEEL has issued 50 lakh convertible warrants @ Rs 225 per warrant. Accordingly on a standalone basis it may clock a turnover of Rs 650 cr and NP of Rs 30 for FY09 leading to an EPS of Rs 10 on current equity of Rs 31 cr. As company hasn't made the Luvata quarterly result public, its difficult to say whether consolidated nos are better or worst against standalone. And since marketmen expect the Luvata acquisition to be a drag on LEEL's financial its share price has been hammered down mercilessly to 10% from a high of Rs 220 in Jan'08. Although, in short term LEEL may take a hit of higher interest cost due to Luvata acquisition but in long term it will prove beneficial for the company. Investors are strongly recommended to buy at current levels as it can turn out to be a Multibagger if held for 3~4 years.

Stock Idea: Savita Chemicals

Savita Chemicals (Rs. 140)

BSE Code : 524667

TTM EPS : Rs. 42
Market Cap : 200 Cr.
Pmt Stake : 71 %
52W H/L : Rs. 420/119
P/E Ratio : 3.3x
Dividend : 115%
Incorporated in 1961, Savita Chemicals Ltd (SCL) specializes in manufacturing of petroleum specialty products like transformer oil, liquid paraffin, petroleum jelly, white mineral oil, automotive and other industrial lubricants. With 40% market share, it is the leading supplier of transformer oil in India. Automotive lubricant being a consumable item is expected to do well as the number of vehicles on road has shot up significantly in past few years. Similarly, the market for liquid paraffins and white oils will also grow in line with the growing importance for personal hygiene amongst the masses. However despite the promising future ahead, SCL's profitability mainly depends upon the price of base oil which is the major raw material for all its petroleum products and is a refined fraction derived from crude oil. Hence, company's margin was under tremendous pressure when crude oil price shot up to US$ 130 per barrel. But with the recent fall in crude oil prices to below US$ 50 levels, company is expected to report improved margin and healthy bottomline in coming quarters. Accordingly it may clock a turnover of Rs 1000 cr and NP of Rs 45 cr for FY08 which leads to an EPS of Rs 31 on equity of Rs 14.60 cr. Having a healthy book value of Rs 171, promoter holding of 71%, dividend yield of around 6~7% & very low debt equity ratio of 0.14x this company is available fairly cheap at a market cap of less than Rs 200 cr. Investors are recommended to buy at current levels and add on declines for a 50% return in 9~12 months.

Intraday Trading Calls for 22nd December

Indian Stock Market may open flat to positive but profit booking expected at higher levels. But a positive closing expected today also.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VIDEOCON INDUSTRIES	Buy Above	124.80	130.10	135.00
	Sell Below	121.40	118.15	114.00
CAIRN INDIA	Buy Above	154.10	158.40	163.00
	Sell Below	151.35	148.25	145.00
BGR ENERGY	Buy Above	157.20	162.50	168.00
	Sell Below	153.35	149.20	145.00
STERLITE INDUSTRIES	Buy Above	283.65	288.45	295.00
	Sell Below	277.55	272.35	265.00
ALPHAGEO INDIA	Buy Above	120.60	125.35	132.00
	Sell Below	116.35	112.50	108.00
PUNJ LLOYD	Buy Above	165.70	171.35	178.00
	Sell Below	162.40	158.35	154.00
SUN TV	Buy Above	167.55	172.35	178.00
	Sell Below	164.35	160.25	156.00

Others: Voltas & NIIT.

GOOD LUCK