Thursday, May 8, 2008

Stock Ideas: Sintex India

Emkay Research has maintained its buy rating on Sintex India with a price target of Rs 860 in its May 7, 2008 research report. "Sintex Industries have declared their Q4 FY08 results which were in line with our expectations. The top line increased by 143% to Rs 9284.5 millions resulting in an increase in EBIDTA by 105% to Rs 1758 millions. The top line growth was in line with our expectations and it is expected to grow at a rapid pace because of the company’s continued focus on the plastic business. The Management has also maintained that the textile business segment will grow at a CAGR of 15% over the next 2 years."

"We expect the company's top line and bottom line to grow at a CAGR of 24.2 % and 26.3% in FY09 & FY10 respectively. We have maintained our earnings estimates for FY09E and FY10E respectively. On the basis of FY09E and FY10E EPS of Rs 20.5 and Rs 36.8 the stock trades at a P/E multiple of 23.6x and 13.1x respectively. We maintain our rating of BUY and maintain our target price of Rs 860," says Emkay's research report.

Markets Today

It was a lacklustre day for the markets, volumes were low. Technology, private banks, FMCG and capital goods stocks were biggest culprits, dragged the Sensex and Nifty lower by more than 1%. The Sensex still held above 17000 mark and the Nifty above 5000. Market breadth remained negative, nearly 1:2. Midcap and small cap stocks also closed in the red. On the global front, Asian markets finished lower barring Shanghai. European markets were trading lower; Nymex Crude was trading USD 123.67 per barrel at the time of writing closing market report.
The Sensex touched an intraday high 17,212.61 and low of 17,038.03, before closing the day at 17,080.65, down by 1.49% or 258.66 points. The Nifty Fifty ended at 5081.70, down 1.05% or 53.8 points which hit high/low of 5143.05 and 5062.45, respectively.
The CNX Midcap fell 0.94% at 6959.15. The BSE Midcap and Small Cap indices ended at 7,153.43 and 8,689.04, fell by 0.67% and 0.44%, respectively.
Market breadth was in negative, about 1211 shares have advanced, 1698 shares declined, and 177 shares remained unchanged.
Major losers were ITC, Satyam, L&T and, Infosys while gainers - Tata Comm, Tata Steel, Idea Cellular, Bharti Airtel, and ACC.
Banking stocks were draggers especially private banks. The BSE Bankex lost 2.9% or 261 points at 8,755.48 as selling pressure seen in Kotak Mahindra Bank, Bank of Baroda, Bank of India, Axis Bank, Union Bank, Yes Bank and ICICI Bank.
Technology stocks like Mphasis, Satyam, Infosys, TCS, Wipro and Tech Mahindra have crashed despite rupee depreciation, which hit 41.79/$. Major reason was the first quarter numbers from Cognizant, which given the Q2 guidance below market expectations. Market expected 8-9% while the company guided only 5.7%. The BSE IT Index fell 2.69% or 119 points at 4,294.46.
FMCG stocks including ITC, United Breweries, P and G, Dabur India, Marico and Bata India also crushed under selling pressure. The BSE FMCG Index was down 2.6% to close at 2,445.12.
The BSE Capital Goods Index finished at 13,375.19, down 1.95% as selling pressure seen in Jyoti Structure, Rel Ind Infra, Kirloskar Bros, Gammon India, Larsen, Kirloskar Oil and BHEL.
Power stocks haven't charged up, BSE Power Index lost 0.93% at 3,264.00. Power stocks like Reliance Petro, Power Grid Corp, Crompton Greaves, Tata Power, Suzlon Energy, CESC and NTPC closed in red.
Realty stocks like Mahindra Life, Anant Raj Ind, Ansal Properties, Unitech, DLF and Omaxe collapsed, which pulled the BSE Realty Index down by 0.94% to close at 8,130.70.
The BSE Oil & Gas Index fell 0.81% at 11,628.45 due to selling in RNRL, GAIL, Petronet LNG, IOC, ONGC, Essar Oil and Reliance.
Pharma stocks like Panacea Biotech, Glenmark, Ipca Labs, Apollo Hospital, Opto Circuits and Cipla also lost the sheen. The BSE Healthcare Index dropped 0.40% to settle at 4,221.29. The BSE Auto Index slid 0.42% at 4,766.96 as auto stocks like Punj Tractors, Ashok Leyland, Escorts, Hind Motors, TVS Motor, Tata Motors, Hero Honda and Maruti Suzuki slipped.
Reliance Industries, Reliance Power, Reliance Capital, Aishwarya Telecom, Bharti Airtel and Cairn India were most active counters.
Total market turnover for the day stood at Rs 47583.62 crore including Rs 12692.39 crore NSE cash, Rs 28943.79 crore from NSE F&O and the balance Rs 5947.44 crore from BSE cash.
Source: moneycontrol.com

Intraday Trading Calls for 8th May

Markets may open nagetive as US markets closed lower and all asian markets trading lower. But Indian Stock Market can recovers from lower levels and again a Flat closing expected.

Today's Trading Calls:

BAJAJ HINDUSTAN
WELSPUN GUJARAT
CAIRN INDIA
MERCATOR LINES
S. KUMARS
INDIAN BANK

For Levels and Targets download the file by CLICK HERE.

Good Luck

Disclaimer

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



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