Thursday, June 26, 2008

Stock Idea: Idea Cellular

Angel Broking has maintained its buy rating on Idea Cellular in its June 25, 2008 research report. "We view the deal with Spice favourably and even though it does seem as though the price that Idea is paying for Spice is a bit steep, it should be looked at in light of the benefits that the deal will give Idea over a longer-term time frame. Typically, such acquisitions are always made with a time-frame of at least a few years in mind, given the time taken for the synergies to be realised, cost savings, qualitative benefits to play out and EPS accretion."
"Undoubtedly, in the short-term, Idea's equity will see a 23% dilution, leading to lower EPS and its margins will also witness some pressure due to the lower profitability of Spice, but this can be viewed as 'newer circles' (Punjab and Karnataka) that are already profitable and going ahead, the situation can be improved with better execution skills and operating leverage. We are working on our projections for Idea to factor in the effect after the merger with Spice. We view the deal as a long-term positive, even though a short-term negative impact cannot be ruled out. We maintain a Buy on the stock and our Target Price is under review," says Angel's research report.

Stock Idea: Spice Jet

Karvy Stock Broking has maintained its buy rating on SpiceJet with a revised target price of Rs 50 in its June 26, 2008 research report. "We expect SpiceJet to report revenues of Rs 4352 million for the quarter as against Rs 4085 million reported during 3QY08. Revenues would increase on account of increase in the number of departures. We expect the company to report net loss of Rs 805 million as against net profit of Rs 93 million reported during 3QFY08."
"For FY09E we expect the company to report net loss of Rs 1568 million, which is 7.8% higher then our previous loss estimate of Rs 1455 million. On account of the above mentioned reasons, we are downgrading our price target by 16.7% from Rs 60 to Rs 50. During the recent past the stock has fallen sharply and therefore even though we are downgrading the target price the stock still remains a BUY," says Karvy's research report.
Markets Snapshot
Markets end near days high on tripple witching day
Strenghth seen in Nifty, Sensex; Midcap Index end in the red
Market held on back of Reliance Ind
Sensex ends up 201.7 pts at 14422; Nifty ends up 63.2 pts at 4316
CNX Midcap Index ends down 0.62%; BSE Smallcap Index up 1%
BSE Oil & Gas Index up 2.8%; RIL up 4.85%, RPL up 2.2%
BSE IT Index up 2%; Wipro up 6.3%, Satyam up 3%, Infy up 2.2%
Index Gainers; Tata Comm up 9.3%, Ambuja Cem up 7%, Power Grid up 5.7%, Cipla up 4.2%, HDFC up 3.2%'
Index Losers; Hindalco, R Comm, Maruti down nearly 2.5%, Ranbaxy down 2.1%
NSE Advance Decline at 7:5
Total market turnover at Rs 1 lakh cr Vs Rs 98568 cr on Friday
F&O turnover at Rs 79103 cr Vs Rs 81000 cr on Tuesday
Small-cap Buzzers
Ray Ban - Ray Ban India may delist, receives proposal from minority shareholders. At present, Ray Ban Indian Holdings Inc.holds 70.54% of the fully paid-up capital of the Company
Atlas Copco Stock down 10%Defers buy back decision
Kaveri TelecomStock down 20%Q4 Net profit at Rs 3.1 cr Vs Rs 6.1 (QoQ)Q4 Net Sales at Rs 38.6 cr Vs Rs 43 cr
LG BrosRenold to acquire Industrial Chain Biz of LG Balakrishnan For 5.7 m Pounds
Rane Engines: recent re-listingRe-listing price at Rs 275 on June 24
Madras FertSubmits Financial Restructuring package to govt
SpiceMarket believes that Spice group will pump more money in Spice Mobile
F&O Snapshot
NIfty July futures end at 65.85 pts discount; add 1 cr shares in OI Nifty Rollover at 72% Vs 66% in May series
Marketwide rollover at 80% Vs 82% in May series
Aggressive short rollover seen in Nifty futures; cost of rollover expanded in the last half an hour
Low rollover seen in stock futures as some investors not ready to pay rollover cost to next series
Fertilizers stock sees fresh long build-ups after new policy announcement
Momentum Stocks Ispat down 2.3%; add 1.5 cr shares in July seriesIFCI down 4.3%; add 1.38 cr shares in July seriesTTML down 3%; add 1.2 cr shares in July seriesRNRL down 3.4%; add 88 lakh shares in July series
Options : Nifty July 4300 call adds 25.5 lakh shares Nifty July 4400 call adds 22.5 lakh shares Nifty July 4000 put adds 25.3 lakh shares Nifty July 4100 put adds 24.5 lakh shares
Rollover Analysis-Cement, Metal & Banking stocks continue to witness strong rollovers -Auto and Oil & Gas have seen a good spurt in rollover -Rollovers in Chemical and Pharma remain weak-Lowest rollover seen in IVR Prime (55%), Crompton Greaves (55%), Matrix (57%), Divi's (59%), United Phosphorus (60%)-Highest rollover seen in Ultratcech (95%), Syndicate Bank (90%), OBC (89%), Sobha (84%), Hindalco, Tata Comm (82%), L&T, SAIL (80%)
Source: moneycontrol.com

Intraday Trading Calls for 26th June

Indian Stock Market may open with gap up but remains very volatile as Expiry day today. A positive closing expected for the Stock Market India.

Today's Intraday Stock Tips/Trading Calls:

HCC
MERCATOR LINES
CENTURY TEXTILE
CIPLA
ASIAN ELECTRONICS
INDIABULLS REALEST

For Level and Targets CLICK HERE.

Today's Watch List: SATYAM COMPUTER, VOLTAS, PSTL & CAIRN INDIA.

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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