Monday, May 26, 2008

Stock Ideas: Koutons Retail, ITC

Prabhudas Lilladher has maintained its buy rating on Koutons Retail India with a price target of Rs 1140 in its May 26, 2008 research report. "Company increased number of stores from 687 in FY07 to 1,175 in FY08. It is looking to expand the store count to 1,800 in FY09 and 2,300 in FY10. This would entail expansion of space from 0.88m sq ft in FY08 to 1.45m sq ft in FY09 and 2m sq ft in FY10. Company plans to enter Middle East by tying up MBOs to place Koutons range in FY09. It would be opening 50 exclusive stores of Koutons there in FY10."
"Factoring in 6% equity dilution in FY10, we estimate EPS of Rs 35.8 in FY09E and Rs 57.0 in FY10E. At CMP of Rs 740, the stock is trading at 20.7x FY09E & 13.0x FY10E. We maintain BUY rating on the stock with price target of Rs 1,140 (20x FY10E and PEG of 0.3)," says Lilladher's research report.

IndiaInfoline has maintained its buy rating on ITC with a target price of Rs 258 in its May 26, 2008 research report. "ITC recorded 14.7% yoy growth in revenues at Rs 139.5 billion slightly below our expectation of Rs 140 billion during FY08 led by 7.7% yoy growth at Rs 138 billion in the core cigarettes segment. We believe ITC to have recorded a flat growth (or a decline of 1%) in cigarette volumes during FY08. The non-cigarette businesses recorded 18.9% yoy growth at Rs 98.4 billion driven by strong 48.6% yoy growth in FMCG [led by branded packaged foods - 57%, biscuits – 53%, confectionary – 40%, lifestyle retailing – domestic 26%, exports 17%], 10.5% yoy in agri, 12.6% yoy in paper and packaging and 11.6% yoy rise in hotels segment. The leaf tobacco exports recorded a new high in tobacco exports for the third consecutive year growing by 21% yoy in value terms and 27% yoy in volume terms (at 62mn kgs)."
"ITC has managed to sustain the extent of losses in the FMCG - others segment with a revenue growth of 50% and we expect this segment to turn profitable by FY10. With the entry into the personal care category, we expect ITC to become a tough competitor for HUL and GCPL, given its strong distribution network in the rural (6,400+ e-choupals and 21 Choupal Saagars) and urban markets. Also, strong cash flows from cigarette business can be invested in advertising heavily to build the personal care portfolio in the initial stage. At the current market price of Rs 205, the stock is trading at 18.2x FY10E EPS of Rs 11.7 per share. We maintain BUY on the stock with a one-year price target of Rs 258, an upside of 20.9%," says IndiaInfoline's research report.

Stock Idea: Chennai Petroleum Corporation

Chennai Petroleum Corporation, as expected, has posted very good results for year ended 31-03-08. Though the topline growth was marginal, profit growth was spectacular.

Its net sales rose 13% at Rs.28,018.60 crore. It managed to keep its operating expenses at consistent levels, it rose 11%. EBIDTA showed a 65% jump at Rs.2,618.10 crore. Interest outgo rose just 3% and depreciation by just 4%. Its PBT consequently shot up 95% at Rs.1,721.60 crore. Tax outgo was up 90%, yet it managed to show a spectacular 98% jump in PAT at Rs.1,122.90 crore.

The company, a subsidiary of Indian Oil Corporation (IOC), supplies its entire production to IOC at prices which it would pay to an international supplier. Hence, the biggest advantage which the company has is that its entire production is already booked but at existing international oil prices. It is not shackled under the Govt’s pricing. So it enjoys international rates, keeps its costs same and thus manages to reap a bounty.

The company is putting up another hydro diesel desulphurization unit at its Cauvery basin refinery. This would help the company overcome the problem of feedstock availability and expand its crude product line.

Chennai Petro is sure to have a fantastic year ahead, what with crude now scaling $ 135 per barrel and with predictions coming in of there being no let up in the prices. Currently quoted at Rs.348, if you have the stock, hold on, it could prove to be a goldmine.
Source: sptulsian.com

Markets Today

Markets Snapshot
Markets end near day's low in line with Asian markets
Nifty closes below 4900 since Apr 16; end down 71.5 pts at 4875Sensex down 301 pts at 16348
Midcap and small-caps witness profit booking
Nifty Junior down 3.5%, CNX Midcap, BSE Small-cap Indices down 2.3%
MTN Buzz Effect: Rel Comm down 5%, Bharti up 3.2%, Idea up 3.6%
BSE Bank Index down 3.3%, ICICI Bank down 4.5%, SBI down 2.4%, PNB down 2.1%
BSE Metal, FMCG, Cap Goods Index down nearly 2.5%
Index losers; BHEL down 4.6%, BPCL down 4.5%, Grasim down 4%, Ambuja Cem down 3.7%, ITC down 3.5%
BSE IT Index limits the fall, ends up 2%; Infosys, TCS up nearly 3%, HCL Tech up 1.8%
Losers; Sita Shree Foods down 13.5%, Bajaj Holding down 11.5%, South Indian Bank down 9%, Mercator Lines down 8.4%, Praj Ind down 7%, JP Associates down 6%
Momentum stocks: Chambal fert down 5.5%, Nag Fert down 4.5%, IFCO down 5%
Sugar losers; Bajaj Hind down 8.7%, Upper Ganges down 8.5%, Shree Renuka Sugar down 7.5%
Bank of Raj up 14.5%: board meet on May 31 to consider bonus issue
Bajaj Finserve ends at Rs 509 Vs listing price at Rs 545
Bajaj Auto ends at Rs 605 Vs listing price at Rs 725
NSE Advance Decline ratio at 1:7
Total market turnover at Rs 60414 cr; FNO turnover at Rs 44104 cr
FNO Snapshot
Nifty rollover at 37%, market wide 25%, stock futures rollover at around 22%
Nifty futures end at mild premium due to cash selling; net add 70 lakh shares in OI
Nifty 5000 put shed 6.5 lakh shares in OI, 5100 put shed 1.8 lakh shares, 4700 shed 1.5 lakh shares in OI
Nifty 4800 put add 2.7 lakh shares
Nifty 4900 call add 4.2 lakh, 4800 call 3.5 lakh, 5000 call add 2.75 lakh shares in OI
Rollover happening on short side; Bank, cement, metal witness short rollover
Unwiding continue to happen in put options
Source: moneycontrol.com

Intraday Trading Calls for 26th May

Today Indian Stock Market may open gap down and remains nagetive for the day. But some recovery expected from intraday lows.

Intraday Stock Tips/Trading Calls:

CROMPTON GREAVES
ADHUNIK METALICS
IDEA
IOC
CAIRN INDIA
SATYAM COMPUTER

For Levels and Targets download the file by CLICK HERE.
Others: Core Projects, Rama Paper (500357), Bank of Rajasthan (Bonus News)
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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