Stock Idea: Jindal Saw

Sharekhan has maintained its buy rating on Jindal Saw with a price target of Rs 910 in its June 16, 2008 research report. "We believe that the core business of JSL would continue to do well on the back of buoyant demand outlook. As mentioned in our previous update, the margins of the DI pipes division might be impacted due to the rising coking coal prices. However, the capacity expansion and the commencement of the captive power plant should help mitigate the adverse impact to a certain extent."
"At the current level, the stock is trading at 6.3x its CY2009E earnings and is available at an enterprise value (EV)/ earnings before interest, depreciation, tax and amortisation (EBIDTA) of 3.2x. We maintain our Buy recommendation with a price target of Rs 910," says Sharekhan's research report.

Investment Idea: Gujarat Mineral Development Corporation (GMDC)

Gujarat Mineral Development Corporation (GMDC) is a Gujarat State government undertaking engaged in the business of lignite, bauxite and fluorspar mining as also power generation units based on lignite.
As expected, the company has posted a superlative performance. This is one company which would surely not complain about soaring prices! Reporting a 68% jump in net sales and a 133% jump in other income, the company clinched a very healthy bottomline. EBITDA was up 85% at Rs.574.20 crore and its interest outgo was actually down 5% though, this was offset by the 21% rise in depreciation. Yet, the company posted a whopping 160% rise in PBT at Rs.408.40 crore. And despite taxation burden going up by 179%, its PAT was up by a smart 150% at Rs.264 crore. On an equity of Rs.31.80 crore, it posted an EPS of Rs.16.60 crore. Obviously enthused by the performance, the company also went ahead and declared a 1:1 bonus.
Not the one to rest on the laurels, it is ploughing back all the bounty it is earning into building up more for the company. It is leveraging all the coal capabilities into cement, power, SEZ and port in Gujarat. How does it plan to do that? It is getting into a JV with cement unit and another with a power unit. The cement unit would also develop a mineral based SEZ and a port with GMDC. Thus GMDC would have a captive coal customer in each cement plant as well as power plant and the power plant would have captive customer in cement plant. Now that’s real foresight!
The company is presently producing about 80 lakh MT of lignite at its three mines. New mines have been developed at the various locations at Surat to cater to South Gujarat where estimated annual production would be 10 lakh MT. 10 lakh MT of lignite production at Amod near Bharuch would fully contribute in FY09. 30 lakh tonne of lignite production is estimated from Bhavnagar mines to cater to Saurashtra region and Central Gujarat. So, in FY 09, the production of lignite will get increased by about 40%. The company also has 250 MW power plant in operation based on lignite.
Lignite referred to as brown gold, is an alternative for coal, which is in great demand, as natural resources are becoming scarce all over the world. Currently quoted at Rs.289, a cum-bonus price, it is an excellent buy at this rate.

Source: sptulsian.com

Stock Idea: KPIT Cummins

KPIT Cummins Infosystems, a specialist solutions partner to global manufacturing companies, announced very good results for the year ended 31-03-08.
Revenue for FY 08, rose 52% at Rs.480.44 crore. Despite a 52% rise in operating expenses, EBITDA rose by 30.39%, resulting in EBITDA margin of 15.37%. And despite a 89% rise in depreciation and 155% rise in taxation, the company managed to show a 40% rise in PAT at Rs.64.08 crore. On an equity of Rs.15.58 crore, its EPS currently stands at Rs.8.33.
During the year, the company added 21 new customers of which, 5 were added during Q4 FY 08. Its total employee strength currently stands at 4,481, of which, 329 were added in Q4 FY 08.
Growth in offshore revenue was at 40.18%. As a proportion of total revenues, offshore revenues increased to 52.77% as against 48.75% in FY 07.
In June 08’, the company formed a partnership with SAP to provide solutions to the automotive industry.
The company’s strategy to remain focused on co-creating domain intensive technologies for manufacturing companies has helped the company post a robust performance. It is also increasing its focus on emerging markets, Japan and Europe.
For FY 09, the company has given improved guidance. Total revenues are expected to be in the range of Rs.700 – 760 crore, a growth of 23% - 26%. PAT is expected to be in the range of Rs.65 crore, a growth of 27% - 31%.
Currently quoted at Rs.70, best to stay invested as growth story in the company looks good.

Source: sptulsian.com

Markets Today

Markets Snapshot
Markets end near day's high led by banking & real estate stocks
Sensex ends up 300 pts at 15697; NIfty ends up 80.5 pts at 4653
CNX Midcap Index up 2%, BSE Small-cap Index up 1.46%, NIfty Junior up 3.6%
All BSE Sectotal Indices end in the green
BSE Bank Index up 4.3%; HDFC Bank up 5.6%, SBI up 4.6%, ICICI Bank up 2.9%
BSE Realty Index up 3.9%; Unitech up 4.2%, DLF up 3.12%
Index Gainers; HDFC up 6.3%, MUL up 5.35, ONGC up 4.5%, L&T up 4%, Power Grid up 3%, RIL up 2.2%
Bank Stocks: Bank of Mah up 16.5%, IOB up 8.5%, Axis Bank up 8%, Kotak Mah Bank up 7.5%, BOI up 6.2%
Midcap Buzzers: Sasken Comm up 14.3%, Bank of Mah up 16.5%, Unichem Lab up 17.9%, Gwalior Chem up 10%
Stocks locked at 20% circuit: Transwarranty Fin, Vaibhav Gems, Raj TV, Torrent Pharma, Atlas Copco, Salora Int
NSE Advance Decline at 3:1
Total market turnover at Rs 58912 cr Vs Rs 55401 cr on Monday
F&O turnover at Rs 42624 cr Vs Rs 40167 cr on Monday
F&O Snapshot
Nifty futures discount at 14 pts Vs 2 pts yesterday; add 41.7 lakh shares in OI
Build up of long positions seen in real estate, bank and momentum stocks
Action seen in single stocks futures; traders continue to hedge their positions by taking short positions on NIfty
Options : Nifty 4600 call adds 10 lakh sharesNifty 4600 put adds 6.9 lakh sharesNifty 4700 put adds 1.9 lakh sharesNifty 4500 call sheds 1.8 lakh shares Nifty 4800 put sheds 1.7 lakh shares
Long Buildup: RPL up 3%; add 25.7 lakh shares in OI RNRL up 2.5%; add 22.5 lakh shares in OI Suzlon up 1.3%; add 16.5 lakh shares in OI Ranbaxy up 3.55; add 11.5 lakh shares in OI SAIL up 2.5%; add 10.5 lakh shares in OI SBI up 4%; add 3.5 lakh shares in OI Unitech up 5.2%; add 3.3 lakh shares in OI Shree Renuak up 8.5%; add 3.1 lakh shares in OI
Short Covering: GMR Infra up 3.2%; shed 5.6 lakh shares in OIIDFC up 4.1%; shed 2.3 lakh shares in OIDLF up 3.2%; shed 1.3 lakh shares in OIIDBI up 6.2%; shed 1.3 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 17th June

A flat to positive opening but remains volatile and consolidate in small range. Today A Positive closing expected again in Stock Market India.

Today's Intraday Trading Stock Tips:

MERCATOR LINES (MLL)

INDIABULLS FINANCIALS

PRAJ INDUSTRIES

RPOWER

NIIT LTD.

JP ASSOCIATES

For Levels and Targets CLICK HERE.

Others: Keep an eye on Brokerage Co.: Indiabulls Securities, Indiainfoline, Religare, Emkay Shares, Edelwiess Capital, Reliance Capital etc. may see smart rally today.

Also watch Cairn India, It can bounce back up to 300 levels.

Good Luck