Thursday, June 19, 2008

Stock Idea: GIPCL


Religare has maintained its buy rating on Gujarat Industries Power Company with a revised target price of Rs 123 in its June 18, 2008 research report. "We have revised our earnings estimates for FY09 and FY10 to reflect the commencement of operations of the expanded plant and higher fuel prices. GIPCL continues to trade close to its book value and at a considerable discount to peers."
"We have valued the company based on an average of the P/BV and DCF methods. Our estimate revision coupled with a tweaking of DCF assumptions generates a revised target price of Rs 123 for the stock from Rs 136 previously. We maintain our Buy recommendation," says Religare's research report.

Emkay Research has maintained its buy rating on NIIT with a price target of Rs 132 in its June 13, 2008 research report. "NIIT reported strong Q4FY08 numbers with revenues of Rs 2725 million (+14.1% QoQ, 6.2% YoY) along with impressive operating margin expansion of 170 bps QoQ (V/s our expectation of 100 bps) and YoY increase of 320 bps. Net profits came in significantly ahead of our expectations at Rs 253 million (+83.3% QoQ, +47% YoY) helped by operating margin expansion and higher other income."
"We remain confident on the prospects of the retail training business (company continues to surprise positively) as well expect more ICT wins in the coming quarters in the Institutional business. We maintain ‘BUY’ with a price target of Rs 132," says Emkay's research report.

Stock Idea: Aurobindo Pharma

Fundamentally a very sound company, the financial performance has been, as expected, very good.
Net sales of the company rose 8.25% at Rs.2435.90 crores. Operating expenses grew consistently: EBITDA was up 24% at Rs.435.36 crore. PBT was up 41% at Rs.291.75 crore. And despite an over 12 times rise in taxation outgo, the company posted a PAT of Rs.238.48 crore; a 19% rise over previous year.
The company reported a 45% rise in formulation sales and this, to a large extent, helped shore up the profit margins. Despite pressure in generic prices, its sales to US was at US $ 59 million and in Europe at US $ 50 million. The price of Pen-G remained stable and even its operations in China stabilized during the year.
The best part is that company’s overall borrowing during the year stood at RS.1847 crores, which is down from Rs.2078 crore in FY07.
As on 31/3/08, 67 ANDAs have been approved in USA including 18 tentative approvals. It has till now launched 33 products in the USA market. FOB value of exports is Rs.1339.49 crores as against Rs.1096.83 crore in FY07.
The company’s “other income” stood at a significant Rs.94.25 crore in FY08. Of this, Rs.85.50 crore came in via exchange fluctuation gain on account of FCCB’s.
Pharma stocks are once again in the limelight on the bourses. The recent sellout of Ranbaxy has stoked speculative forces on most of the other front line pharma stocks. Aurobindo has also been moving up significantly and is currently at Rs.330. Stay invested, it’s a sound company.
Source: sptulsian.com

Intraday Trading Calls for 19th June

Indian Stock Market may open with gap down but again a smart recovery expected from lower levels and A flat closing expected.
Today's Intraday Trading Stock Tips:

CAIRN INDIA
INDIA CEMENT
HIND OIL EXPLORATION
GMDC
GSS AMERICA
SUJANA TOWER

For Levels and Targets CLICK HERE.

Today's Watch List: Ranbaxy, Selan Exploration, Videocon Industries.
Future Stock: CIPLA June Future Around 215-218 For Target 230+.

Good Luck

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