Wednesday, November 12, 2008

Stock Idea: Punj LLoyd

This is one company which has been advertising extensively on television, even in these difficult times of a slowdown. But one look at the second quarter performance of the company indicates why the company is go gung-ho and foresees no need to cut down on advertising.

For the second quarter ended 30th September 2008, the net sales rose 54% at Rs.2926.05 crore on a YoY. Its EBIDTA was up 77% at Rs.363 crore. Consolidated PAT was up a healthy 61% at Rs.144 crore.

Interest costs have gone up by around 25% during Q2FY09. Though this cost is not expected to come down soon, the fall in the prices of commodities is expected to offset the rise in interest cost.

During the quarter the company bagged orders from Qatar Petroleum for over Rs.3636 crore and GVK Power of Rs.1005 crore amongst others. Its subsidiary, Punj Lloyd Upstream won its first drilling contract in Libya from Waha Oil Company.

The order backlog currently stands at over Rs.21,000 crore of which only 21% is from the Indian operations. This company also get carried away with the boom in realty and ventured into the sector. For now, it has slowed down but its exposure stands at Rs.100 crore (around 15 acres of land), which in the overall macro picture of the company is not too much.

For Q2FY09, the company had a OPM of around 9% and in the remaining two quarters of this fiscal, it hopes to either maintain it or even post higher margins. It plans to focus on markets in West Asia, North Africa, Sub-Sahara and Africa
Source: sptulsian.com

Intraday Trading Calls for 12th November

Indian Stock Market may open flat to Nagetive but remains very volatile throughout the day today. A flat to positive closing expected.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
AGRO TECH FOODS (112)
Buy Above 113.80 Target 117.45, 122.00
Sell Below 110.15 Target 106.55, 102.00
INDIABULLS REALEST (130)
Buy Above 131.75 Target 135.40, 140.00
Sell Below 128.20 Target 124.45, 120.00
HPCL (200)
Buy Above 202.25 Target 208.65, 215.00
Sell Below 197.75 Target 193.20, 188.00
BPCL (303)
Buy Above 305.80 Target 312.10, 320.00
Sell Below 300.10 Target 295.55, 290.00
CIPLA (201)
Buy Above 202.85 Target 206.15, 210.00
Sell Below 199.40 Target 195.20, 191.00
CORE PROJECTS (58) Short to Med Term Target Rs. 100+
Buy Above 59.25 Target 62.35, 65.00
Sell Below 57.15 Target 55.10, 52.00

Multibagger: Ankur Drugs & Pharma (531683) CMP Rs. 122/- One Year Target Rs. 300+

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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