Stock Idea: JAI CORP

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

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

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

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

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

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

Source: Sptulsian.com

Markets Today

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

Stock Idea: TTML

HDFC securities has maintained its buy rating on Tata Teleservices (Maharashtra) with a price target of Rs 63 in its May 13, 2008 research report. "Media reports have indicated that Tata Teleservices (TTSL) is placing 10% equity for its expansion in the CDMA and the soon-to-be-launched GSM services. Mexican billionaire Carlos Slim-controlled Telcel, UAE’s Emirates Telecommunications (Etisalat), Russian operator Altimo and buyout fund Apax Partners are in the fray, valuing the firm at USD 10 billion."
"DoT has granted GSM license to Tata Tele (including TTML) in 19 circles under the dual technology policy, but the launch of GSM services will depend on spectrum availability. TTML has shown a remarkable turnaround in financial and operational parameters, which we believe will reflect in its future performance, backed by expert top management. Subscriber acquisition rate for TTML at 38% CAGR for FY07-10E will be higher than the industry CAGR of 27% in Maharashtra and Mumbai circle, with a gain in market share from 12.26% to 15.65%, due to extensive micro coverage expansion and increased focus on data products. The data card business is on track with acquisition rates hovering around 13000-15000 per month. The stock is currently trading at 11.1x EV/EBIDTA on FY09E basis at a premium of 5% to Bharti and 7% discount to RCOM. We maintain our BUY rating with a price target of Rs 63, an upside of 78% from the CMP," HDFC securities' research report.

Intraday Trading Calls for 13th May

Market may open with positive but remains very volatile. A positive closing expected today in Stock Market India.

Today's Trading Calls:

BLUE STAR

RANBAXY
GMR INFRA
PRAJ INDUSTRIES
INDIABULLS
CROMPTON GREAVES

For Levels and Targets download the file by CLICK HERE.

Others: Indiabulls Realest, Dewan Housing.

Good Luck