Monday, November 30, 2009

Stock Idea: Apollo Tyres

This leading tyre manufacturing company posted a very good set of results for the second quarter ended 30th September 2009. On a consolidated basis, net sales rose 62.12% at Rs.2046.19 crore and net profit was up by 755.33% on YoY at Rs.129.2 4crore.
On a standalone basis, net profit shot up by an unbelievable1209% to Rs 102.1 crore versus Rs.7.8 crore on a YoY. Comparing on a YOY is not all that a true representation of the picture as last September, the recession had set in and hence the base effect would be lower. On a QoQ, net sales was up 3% and net profit was up 8%. So in the true sense, the company has maintained its performance.
Growth in volumes and growth in the passenger radial car helped boost the performance. The recovery in the auto sector is truly being reflected in the performance of Apollo. Its market share in radial tyres currently stands at 25%.
The company, after deferring its plan to set up a greenfield project at Hungary, instead acquired a Dutch company and that gives the company a ready market to tap in East Europe. It is now working full throttle in setting up a Greenfield project in Chennai and this is expected to get on stream by December 09’.
The going is expected to get better. Though raw material costs are expected to go up in the coming months, the company is hopeful of offsetting the rise in cost by rising volumes. Its main raw material is natural rubber and it is currently at an all time high of around Rs 108-110. To offset this, it has also hiked prices by 3% in October.
The company, over the next 3-4 years hopes to make a name for itself amongst the top 10 global tyre companies of the world.
Source: Internet (www.premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 30th November

Indian Stock Market may open positive and a good positive 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

ATLANTA

Buy Above

157.20

162.45

168.00

Sell Below

154.35

150.10

145.00

CAIRN INDIA

Buy Above

269.25

273.40

278.00

Sell Below

267.40

263.10

260.00

APTECH

Buy Above

168.60

174.35

180.00

Sell Below

165.35

161.40

156.00

RENUKA SUGAR

Buy Above

218.75

224.65

230.00

Sell Below

215.05

210.35

204.00

THINKSOFT

Buy Above

321.10

328.70

336.00

Sell Below

316.45

310.05

302.00

ADSL

Buy Above

209.20

214.55

220.00

Sell Below

206.45

201.55

195.00

KPIT CUMMINS

Buy Above

117.60

121.40

125.00

Sell Below

115.40

111.65

107.00

Short to Medium Term Delivery Buy:

Buy ATLANTA LTD. (532759) CMP Rs. 155/- Short to Med. Term Target Rs. 200/- & Rs. 235/-.

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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