Tuesday, July 21, 2009

Intraday Trading Calls for 21st July

Stock Market India may open positive but some profit booking can be seen at mid session. A flat closing expected today.

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

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

IDFC

Buy Above

142.80

147.25

152.00

Sell Below

141.15

137.35

132.00

3I INFOTECH

Buy Above

78.65

81.55

85.00

Sell Below

77.35

75.15

72.00

CAIRN INDIA

Buy Above

247.65

252.45

258.00

Sell Below

244.35

239.45

235.00

SELAN EXPLO

Buy Above

187.60

192.55

198.00

Sell Below

184.60

180.25

176.00

HIND OIL EXPLO

Buy Above

126.75

131.25

135.00

Sell Below

124.35

120.45

116.00

WELSPUN GUJARAT

Buy Above

197.60

205.35

212.00

Sell Below

195.15

189.45

182.00

VIDEOCON INDUSTRIES

Buy Above

175.20

180.45

185.00

Sell Below

173.40

168.55

164.00

GOOD LUCK

Stock Idea: Rain Commodities

Rain Commodities (Rs. 142.00) (Code : 500339)

Andhra based Rain group is headed by Mr N Jagan Mohan Reddy having interests in cement and CPC. Earlier, the group had 2 listed entities-Rain Commodities, the holding company for the 1.5mn tonne cement business, and Rain Calcining(RCL),comprising 0.6mn tonnes of CPC capacity. Post a scheme of arrangement, RCL was merged with RCom by way of a share swap, wherein 2 shares of RCom were issued for every 7 shaers of RCL. Main features: A. Transfer of cementbusiness from Rain Industries to RCom B. Amalgamation of RCL with RCom C. Transfer of CPC and power business from RCom to Rain Industries (100% subsidiary of RCom) Thus cement asset is now held under RCom-the holding company. CPC asset is held under Rain Industries. Group, thru 100% subsidiaries of Rain Industries and RCom USA, has acquired 100% stake in the Texas based 1.9mn tonne CII Carbon, CII Carbon, until acquisition, was 2nd largest producer of CPC in the world. Post acquisition, RCOM is the largest CPC producer in the world with a capacity of 2.49 mn tonnes. Company is further erxpanding its CPC capacity by 0.6 mn tonnes by early 2010.


1. Expansion of cement capacities to 3.16mn tonnes has already been completed in previous quarter. Pithead mines at both units with reserves sufficient to carry out operations for next 70 years at expanded capacity. Potential to add 4 million TPA of cement capacity at existing locations at capital cost of USD 50/MT.

2. CII Carbon LLC : A. Has 48 years of experience and track record in industry leadership B. Production facilities across N America-Louisiana (4), Mississippi1), W Virginia(1), Illinois(1) C. Access to waterways-Mississippi river terminal, Calcasieu river terminal and Ohio river terminal D 62.5% Sales made to international customer having strong relationship with all Global Aluminium majors E. 95% Sales pursuant to multi-year contracts (quantity fixed but not price) F. 77% Raw materials procured fom suppliers having relationship of over 10 years

3. CPC-Changing Business Model :- A. Limited supply (or no increase in supply) of Anode Grade GPC B. No new CPC capacities are announced or expected C. Consolidation in the industry 4. Rain now enjoys 13% share of Global CPC capacity and 22% market share of Western World production 5. Unmatched access to GPC suppliers and CPC customers across the globe Slowdown in aluminium industry : In last 12 months, aluminium prices have crashed. It has led to correction in prices of CPC also. However GPC prices have also corrected sharply and Rain still commands comfortable profit margins. Recently, Company has signed agreement with Karnataka Power to get Fly Ash which will enable it to enhance production of blended cement.

VALUATIONS : Stock is trading at :- 1. 2.42 x CY08 EPS 2. 2.48 xCY09E EPS Such valuation are very compelling considering the following; A. Company has emerged the largest prodcuer of CPC in the world. B. Big entry barriers due to limited availability of GPC. C. Metal Industry is likely to rebound in 2010. Once it happens CPC producers may report sharp jump in profits. Recently, promoters had converted their warrants into equity @ Rs 200 per share. In 2007, share price had gone upto Rs. 300/-. However, share price crashed due to aggressive selling by some FIIs although Citi group has increased stake in the company. Reliance Mutual and UTI also hold significant stake in Rain. We feel that current valuations do not fully capture potential of the company. Even if scrip had P.E. Ratio of 5, share price should be Rs. 285/-. However, in current market conditions such a sharp rise in share price may not be possible. We put our price target of Rs. 210/- in 6 months. Investors can also hold this scrip for 3 years in which case appreciation can be 200%.
Source: Internet (SmartInvestment) Hemant K. Gupta (Mumbai)

Stock Idea: Allahabad Bank

This bank has once again presented a very good set of results for the first quarter ended 30th June 2009. Treasury income was its biggest bread winner during the quarter and that alone has helped shore up the earnings quite substantially.

For Q1FY10, the bank posted a YoY 28% rise in total income earned at Rs.2377.70 crore. Deposits were at Rs 89,400 crore and advances at Rs 61,000 crore, meaning the total business of the bank has crossed Rs,150,000 crore. Operating profit was at Rs 591 crore almost twice that was posted in Q1FY09. The net profit rose three times at Rs.302.86 crore. This surge is more pronounced as in Q1FY09, the bank had made a huge provisioning of Rs.202.24 crore as against Rs.39.63 crore in current Q1. Its net interest income grew 34.3% to 629 crore. The growth in trading profit was also quite smart – it was up over 5 times at Rs.214 crore.
The bank has recovered Rs 50 crore from defaulters. It upgraded loans to the tune of Rs.97 crore and has written off Rs.50 crore. Gross NPA is at 1.79% as against 1.87% in Q1FY09 and net NPA was at 0.37%, up from 0.72% in Q1FY09.
This is one of the oldest public sector banks of India, established way back in 1865. The Govt of India has a 55.23% stake and institutions hold 26.45% of which LIC has a 11.63%, leaving a floating stock of 18.32%.
The stock touched a high of Rs.90 on 2nd June 2009 in anticipation of the Budget making some favorable recommendations, Since then, it has come down but yet managed to hold strong and is now quoted at Rs.79. Remains a good banking stock to hold.
Source: www.premiuminvestmetns.in (S P Tulsian)

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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