Tuesday, December 23, 2008

Stock Idea: Bajaj Hindustan

Bajaj Hindusthan, the country's largest sugar manufacturing firm, posted a consolidated net loss of Rs 197.62 crore in the financial year ended September 2008 as against a consolidated net loss of Rs 4.01 crore last year. This loss was on a total income rose to Rs 2,120.26 crore in FY08 from Rs 1,812.86 crore in the last fiscal.
On a standalone basis, the net loss was lower at Rs.50.17 crore when compared to the consolidated net loss but higher than the Rd.45.65 crore net loss it posted last fiscal.
Despite the loss, company has declared a dividend of 60% at the rate of 60 paise on shares of face value of Re.1/- for 2007-08.
If one looks carefully, it becomes quite apparent that it is only due to forex loss and higher interest outgo in Q4, that the net loss has burgeoned. In fourth quarter ended 30th September 2008, the PBT of Rs.131.57 crore was due to forex loss of Rs.71.4 crore, which was earlier not booked due to non completion of capex. This apart, it also had a higher interest outgo of Rs.59.02 crore in Q4 against Rs.139.44 crore of FY08 on completion of capex,
UP government has recently announced SAP for sugarcane for season 08-09 at Rs.1,400 per MT. This year, lot of damage has been caused to the sugarcane crop in UP and hence mills are not likely to operate for more than 150 days in this season against, an average pf 180 days in the earlier years. So there would be mad scramble to purchase sugarcane by the mills even at a higher rate of more than Rs 1,400 per MT.
All this would give a great advantage to company, being the largest player. Due to lower estimated sugar production of India for season 08-09, at about 20 million tonnes, sugar prices will start rising from April 09, once general elections in the country happens and crushing in UP and Maharashtra stop. Sugar price can rise by about Rs 3 to Rs 4 per kg, after April 09, which will give huge advantage to the sugar mills.
Season 08-09 and season 09-10 is going to be excellent for the company and despite the loss, given the positive outlook for the sector, qualifies a good buy at the current rate of Rs.60.
Source: sptulsian.com

Intraday Trading Calls for 23rd December

Indian Stock Market may open negative and see some profit booking but some recovery expected from lower levels in mid session today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

ESSAR OIL

Buy Above

93.20

96.35

100.00

Sell Below

91.15

88.35

85.00

GULF OIL

Buy Above

46.50

48.65

51.00

Sell Below

44.80

42.30

40.00

ZEE ENTE

Buy Above

141.20

145.20

150.00

Sell Below

137.60

134.10

130.00

BAJAJ HINDUSTAN

Buy Above

61.30

64.10

67.00

Sell Below

58.25

55.55

53.00

ROLTA INDIA

Buy Above

123.10

128.15

134.00

Sell Below

119.70

115.40

111.00

HDIL

Buy Above

157.50

162.15

168.00

Sell Below

154.35

150.45

145.00

SUJANA TOWER

Buy Above

24.75

26.45

28.00

Sell Below

23.60

21.50

20.00


Others for Intraday: GHCL & Lloyd Electric.

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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