Wednesday, July 16, 2008

Stock Idea: Sintex India

Religare Research has maintained its buy rating on Sintex India with a revised target price of Rs 503 in its July 15, 2008 research report. "Sintex Industries (Sintex) has reported disappointing Q1FY09 numbers due to lower volumes in the BT Shelter business and below-expected textiles revenues. While net sales increased 108% YoY to Rs 7.1 billion, this was spurred by the acquisitions of Bright AutoPlast, Nief Plastics and Wausaukee rather than growth in core operations. Higher employee costs and other expenditure shaved 590bps off the EBITDA margin to 11%. Sintex reports installation income on prefab construction under other income, which trebled to Rs 380 million during the quarter. Increased interest and depreciation offset the positive impact of other income, causing Sintex's net profit to grow much below our expectations at 68% YoY to Rs 567 million."
"The company's monolithic construction order book totaled Rs 15 billion at the end of the quarter with an execution period of two years. Further, the acquisition of Digvijay Communication during Q1FY09 will expand Sintex's geographical reach and product offerings in the telecom infrastructure sector. We are revising our estimates downwards in view of the below-expected quarterly results, tight market conditions and higher cotton and crude oil prices, which are weighing on margins. We maintain our Buy recommendation on the stock and roll over our target price to a one-year horizon. Our revised target for the stock is Rs 503 from Rs 587 previously," says Religare's research report.

Markets Today

Market Snapshot
New 15-mths closing for Sensex, Nifty
Sensex ends down 100 pts at 12575.8; hits a low of 12514 during the day
Nifty ends down 44 pts at 3816.7; hits a low of 3790.2 during the day
CNX Midcap Index ends down 1.5%; BSE Small-Cap Index down 1.3%
Ranbaxy bounces back after management clarification; gains 15%
BSE Realty Index down 5.9%; Unitech down 11%; DLF down 8%
BSE Metals Index down 1.7%; Nalco down 6%; SAIL down 4%; Tata Steel down 3.5%; Sesa Goa down 5%
BSE Bank Index down 1.7%; Banks continue to lose ahead of inflation numbers on Thursday at 5:00 pm
SBI down 3.9%; ICICI Bank down 1.8%, HDFC Bank down 1.6%
Results Impact: S Kumars, PFC, HDFC, TTML
Midcap Losers: Guj NRE Coke down 7%, GMR Infra down 5.5%, Nag Fert down 4.8%, Parsvanth down 4.6%
Small-cap losers; Nitco Tiles down 12.8%, RSWM down 10.5%, Asian Elec down 10%
Buzzers; Usher Agro up 14.3%, BGR Energy up 13.5%, First Winner up 10.2%
NSE Advance Decline at 1:3
Total F&O turnover at Rs 45738.2 cr Vs Rs 44,123 cr a day ago
Total Market Turnover at Rs 61636.2 cr Vs Rs 59,029 cr a day ago
F&O Snapshot
Nifty discount trims; signs of short covering pushes Nifty in premium in last trade
Ranbaxy up 15 %; sheds 11.1 lakh shares, 3 rd highest turnover in F&O
Fresh shorts seen in Real Estate stocks
NSE F&O turnover at Rs 45738.3 cr Vs Rs 44122.9 cr in yesterdays trade
Nifty 3800, 3900 & 4000 call adds open intrest; premium increases
Nifty Put continues unwinding; nifty 4000 put sheds 3.7 lakh shares
Option Activity: Nifty 4000 put sheds 3.7 lakh shares Nifty 3800 call adds 6.7 lakh shares Nifty 3900 call adds 6.9 lakh shares Nifty 4000 call adds 2.1 lakh shares
Fresh Short: Unitech dn 9.2 %; adds 21.5 lakh shares Dlf dn 7.2%; adds 5.8 lakh shares RPL down 4.15%; add 18.5 lakh shares in OI Cairn India down 4%; add 10.6 lakh shares in OI
Fresh Long: Shree Renuka up 7.5%; add 14.3 lakh shares in OI Bharti up 3.4%; add 5.2 lakh shares in OI HUL up 4.5%; add 4.2 lakh shares in OI PFC up 5.8%; add 3.8 lakh shares in OI
Short Covering : Misc: ITC, Alok Text, Balrampur Chini
Source: moneycontrol.com

Intraday Trading Calls for 16th July

Indian Stock Market may see a good bounce back due to short covering. A positive trading and closing expected today.
Today's Intraday Trading Calls / Stock Tips:
SATYAM COMPUTER
YES BANK
NIIT TECH
SASKEN COMMUNICAION
ROLTA INDIA
KSK ENERGY
For Levels and Targets CLICK HERE.
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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