Wednesday, May 14, 2008

Stock Idea: Petronet LNG

Angel Broking has upgraded its rating on Petronet LNG to buy rating with a target price of Rs 90 in its May 9, 2008 research report. "Dahej expansion to 12.5 mmtpa (current 6.5 mmtpa) is slated to come on stream July onwards in a phased manner. Expanded capacity will help Petronet process more Spot volumes till the 2.5mmtpa contracted supplies from Qatar commence October 2009 onwards. For the next 2-3 years, growth will primarily be driven by Spot LNG and the expanded capacity will benefit from the situation."
"The company is now also diversifying into different segments like power, port development, etc., which is expected to generate value over a period of time. We have valued Petronet on DCF methodology with a Cost of Equity of 15.2% (high as it is a high beta stock), Cost of Debt - 10% and WACC - 9.2%. The stock is currently available at 9.8x FY2010E EPS of Rs7.7. Based on our DCF valuation model, we upgrade the stock to a Buy, with a target price of Rs 90," says Angel's research report.

Markets Today

Markets Snapshot
Markets end near day's high led by metal & tech stocks
Sensex ends up 225 pts at 16978; Nifty ends up 54 pts at 5012
CNX Midcap Index up 0.9%, BSE Small-cap Index up 0.5%
Metal Index up 4.36%; base metal prices gain due to earthquake in China
IT Index up 3.9% as rupee hits 42.665
Hind Zinc up 17%; Zinc prices was up nearly 6.5% ; China accounts for about 39% of the global zinc production
Index Gainers; DRL up 8%, TCS up 7.3%, Infy up 4.35%
Metal pack: Hindalco up 6.8%, Sterlite up 5%, Tata Steel up 4%
Index losers; ONGC down 6%, GAIL down 3.3% on concerns of oil subsidy burden
Satyam off days high as the co loses appeal against HC judgement in upaid case
Buzzers; Chambal Fert up 6%, Orchid Chem up 7.4%, Alok Ind up 9.4%, NIIT Tech up 5.2%, Deccan Aviation up 5.5%
Lanco Infra up 11%; wins 8000 cr rs Vizhinjam international terminal container project in Kerala
NSE Advance Decline ratio at 5:4
Total market turnover at Rs 51837 cr Vs Rs 58431 cr on Tuesday
F&O Snapshot
Nifty futures end at mild premium; add 16.5 lakh shares in OI
Some unwiding of long positions seen in later part of the day
Volumes in FNO remain low; Total NSE F&O turnover at Rs 32919 cr Vs Rs 38108 cr on Tuesday
Momentum, metal stocks saw addition of long positions
ONGC, Satyam, IOV witness addition of short posiitons
Long Positions
IFCI up 3.6%; add 26.4 lakh shares in OI
Ispat up 4.6%; add 19 lakh shares in OI
Arvind up 5%; add 14 lakh shares in OI
RPL up 3.1%; add 13 lakh shares in OI
Tata Steel up 4.6%; add 11 lakh shares in OI
Hindalco up 7.6%; add 8.8 lakh shares in OI
Polaris up 5.9%; add 5.5 lakh shares in OI
Lanco Infar up 13%; add 2.5 lakh shares in OI
Fresh Shorts
ONGC down 5.9%; add 11.3 lakh shares in OI
Satyam down 1%; add 6.5 lakh shares in OI
IOC down 4.5%; add 2.8 lakh shares in OI
Short Covering
Sterlite up 4.5%; shed 2.4 lakh shares in OI
Cairn India up 2.16%; shed 2.8 lakh shares in OI
TCS up 6.5%; shed 1.2 lakh shares in OI
Source: moneycontrol.com

Intraday Trading Calls for 14th may

Market may open gap down but after that smart recovery expected.

Today's Intraday Picks:

INDIABULL REALEST
NALCO
UNITECH
SAIL
ORCHID CHEMICAL
3I INFOTECH

For Leves 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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