Thursday, February 19, 2009

Stock Idea: KEC International

Part of the RPG group, KEC International, a leader in power transmission, engineering, procurement and construction (EPC) business, the stock was in the limelight yesterday on the back of having received huge orders.

The company won an order worth Rs 255 crore for rural electrification from West Bengal State Electricity Distribution Company and another worth Rs 67 crore from Power Grid Corp. It also won a third order worth Rs 43 crore for a turnkey transmission project from Transmission Corporation of Andhra Pradesh.

For the third quarter ended December 31, 2008 it posted a revenue of Rs.886.31 crore as against Rs 708.91 crore during the corresponding period last year, a growth of 25%. During the quarter, the operating margin of the company declined to 8.21% compared with the previous year period. Interest cost increased 67.06% to Rs.29.72 crore while depreciation cost rose 4.82%. Net profit for the third quarter was at Rs.24.97 crore, down 52% on a YoY.

Its order book was at Rs.5000 crore as on Dec 31, 2008. Despite this fall in the Q3 bottomline, KEC remains a good stock. Its biggest strength is that it has insulated itself, to some extent with a focus on international as well as domestic market. 65% of its revenue comes from international markets including 25% from the Middle East region. It is is catering to about 20 countries globally of which majority are underdeveloped in terms of power infrastructure, meaning big business opportunity. KEC is also nearly doubling its combined (outsourced and own) manufacturing capacity from 110,000 tonne to 200,000 tonne per year.

KEC is expected to end FY09 on a robust note. Best to stay invested.
Source: Sptulsian.com

Intraday Trading Calls for 19th February

Stock Market India may open flat to positive but high volatility can be seen in today's trading.

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

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

REL INFRA

Buy Above

505.60

515.45

528.00

Sell Below

496.40

488.45

478.00

COMPACT DISK

Buy Above

35.20

37.10

39.00

Sell Below

34.30

33.10

31.00

HANUNG TOYS

Buy Above

33.60

35.75

38.00

Sell Below

32.40

31.25

29.00

LIC HOUSING

Buy Above

202.80

209.15

220.00

Sell Below

198.35

194.25

188.00

REL CAPITAL

Buy Above

383.40

391.75

400.00

Sell Below

376.15

369.40

364.00

GMR INFRA

Buy Above

81.50

84.25

88.00

Sell Below

78.70

76.25

73.00

VOLTAS

Buy Above

40.55

42.60

45.00

Sell Below

38.80

37.10

35.00

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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