Stock Idea: Nava Bharat Venture

PINC has maintained buy rating on Nava Bharat Venture with target price of Rs 340 in its June 04, 2008. "Nava Bharat Ventures Ltd. (NBVL) reported a YoY net sales growth of 89% to Rs 3.4 billion for Q4FY08. This was mainly on back of a 140% YoY rise in the revenues of its ferro alloy division. Power segment revenues also increased by 55% YoY. The OPM for the period witnessed a substantial 2,000bps jump to 46.4%, as NBVL capitalised on the unprecedented boom in the ferro alloy cycle. This led to around three fold jump in both operating profit and the net profits to Rs 1.6 billion and Rs 1.3 billion respectively."

"At the CMP of Rs270, the stock is trading at a P/E of 4.8x and EV/EBIDT of 3.8x its FY09E earnings. These, we believe are very attractive valuations for a company with very robust business model and effectively ‘Zero Debt’ . Moreover if ferro alloys continue to trade at these levels for entire FY09 (a strong possibility), then NBVL’s profitability could increase substantially. Hence, we initiate coverage with ‘BUY’ recommendation on the stock with a 12- month price target of Rs340" according to PINC report.

*****Moneybazzar's 12 month Target for Nava Bharat Venture Rs. 500+

Stock Idea: HCC

Prabhudas Lilladher has maintained its buy rating on Hindustan Construction Company with a price target of Rs 178 in its June 2008 research report. "Hindustan Construction Company’s (HCC) Rs 105 billion order book as on March 2008 includes the Rs 19.8 billion Sawalkote project, which is currently under dispute. Adjusting for this project, the order book would be Rs 85.2 billion, of which 50% contracts would have a wholesale price-based escalation, 30% would be star rate-linked and 10% linked to the metal index. The balance 10% would be fixed price contracts."
"We have a price target of Rs 178. HCC’s core business has been valued at 17x FY09 EPS, Lavasa has been valued at Rs 44 per share, the Vikhroli IT Park has been valued at Rs 16.7 per share, and the two SRS projects and annuity BOT projects at Rs 13.6 per share. We maintain BUY rating on the company," says Lilladher's research report.

Markets Today

GAP UP OPENING - SLIP IN THE LAST HOUR
Markets opened gap up at 4725.40 and flip-flopped between 4660 and 4710 through the session. However the market slipped in the later part probably due to lack in conviction to carry trade over the week-end.
Nifty closed down - 1.05 % losing 49.15 pts to end at 4627.18
Sensex closed down - 1.25 % to end at about 15572 down 197.54 pts
Broader markets too witnessed selling in late trade
Nifty Junior was down 1.31% (down 101.8 pts) ; while the CNX Midcap 100 lost 0.35% (- 21.75 pts)
BSE Small Cap Index was down about 0.51% ( -39.54 pts)
BSE Oil and Gas down 0.55% (- 55.75 pts)
BSE Healthcare Index down 1.15% (-49.88 pts)
BSE Metals Index lost 1.27% (- 199.80 pts)
BSE FMCG Index down 2.65% (-64.28 pts)
Gainers:SpiceJet gained smartly today, was up 14.49 % Cairn up (8.61%) had respectable gains by end of trade on the back of rise in crude oil price.Voltas gained 7.47%, HCC up 6.52%, Impex Ferro up 4.94%, Indiabulls Realty up 4.60%, Suzlon up 4.32%
Losers:ONGC ended its gaining streak to end with a 1.90% loss.GHCL (-11.3%), Neyveli Lignite (-7.65%), Piramal life Sciences (-7.63%), HPCL (-5.92%) all lost significantly The resilient Wipro (-4.44%), ITC (-4.07%), Mercator Lines (-4.20%) too lost.
NSE Advance Decline ratio at closing was 1 : 1.66
Total cash turnover at Rs 17589 cr today
Total F&O turnover at Rs 33425 cr Vs Rs 42656 cr on Thursday
Total market turnover was at Rs 51015 cr Vs Rs 65134 cr on Thursday
Global ShotAsian Indices ended mostly in the green, barring Shanghai and Kospi which were marginally in the red.
Nikkei (1.03%), Thailand (0.95%), Hang Seng (0.61%), Taiwan (0.08%) ended on a positive note; Kospi (-0.08%), Shanghai (-0.66%), ended in the red.
F&O Snapshot

Short Covering of Yesterday dint last long, Nifty sees fresh short build up in latter halfNifty fut slips into discount of 20 points in intra day’s trade Real Estate & Bank Stock sees short build up continuing in today’s trade as wellNSE F&O Turnover at 42888 cr lower than weekly averageNifty fut turnover at 13900 cr lower than weekly average
Options:Nifty 4800 put sheds 10.8 lakh shares

Nifty 4700 call adds 15.3 lakh shares

Nifty 4500 put adds 8.2 lakh shares
Star Trade: Cairn up 7.5%; adds 17.7 lakh shares
Fresh Short:Nifty dn 1.4%; adds 26.5 lakh sharesITC dn 3.2%; adds 13.5 lakh sharesDLF dn 4.4%; 10.7 lakh sharesNeyvli dn 8%; adds 5.5 lakh sharesIDFC dn 4%; adds 3.8 lakh shares
Long Unwinding:IFCI dn 3.1%; sheds 16.9 lakh sharesIspat dn 3.7%; sheds 13.7 lakh sharesJP Associates dn 3%; sheds 6.8 lakh sharesChambal dn 3.7%; sheds 6.6 lakh shares
Short Covering: Voltas up 6%; sheds 4.4 lakh sharesHCC up 5.6%; sheds 3.3 lakh shares

Intraday Trading Calls for 06th June

Indian Stock Market may open with gap up but remains volatile as today is inflation data friday. But US markets closed higher yesterday and all other global markets also performing well today so market will remains positive and positive closing expected.

Today's Intraday Trading Calls/Stock Tips:

APTECH

RPL

BANK OF INDIA

PRAJ INDUSTRIES

INDIABULLS REALEST

GSS AMERICA INFO

For Levels and Targets CLICK HERE.

Short-Med Term Delivery Call: Buy GHCL (57) Target 90+

Others: Cairn India, Videocon Industries and Midcap, Smallcap IT sector like 3i Infotech, Micro Tech, KPIT, Tanla Solutions, Prithvi Info.

Good Luck