Saturday, June 5, 2010

Stock Ideas: Fortis, GMDC, Aban, Mphasis

Fortis Healthcare (Rs. 147.00) (Code : 532181) : Fortis Healthcare jumped more than 6% on Friday after Malaysia's sovereign wealth fund Khazanah offered to raise its stake in Singapore healthcare firm Parkway Holdings to 51.5% for $835 million. Khazanah's Integrated Healthcare unit has offered Singapore dollar 3.78 a share for Parkway, a premium of 25% over Parkway's last traded price. This will allow it to raise its stake in the Singapore firm to 51.5%. Currently, it has a stake of nearly 24%. Khazanah's offer price represents a 6.17% premium to the price at which Fortis had acquired stake in Parkway in March 2010. Fortis had acquired 23.9%  stake in Parkway Holding at Singapore dollar 3.56 per share from US buyout firm TPG, aggregating in a deal worth $685 million. The stock has corrected quite a bit after it touched record high of Rs. 188 on 12th March. Buy the stock immediately.

GMDC (Rs. 121.00) (Code : 532181) : Gujarat Mineral Development Corporation reported jump of 28.2% in its net profit. The profit rose to Rs 90.49 crore on 9.3% increase in net sales to Rs 345.82 crore in Q4 March 2010 over Q4 March 2009. Gujarat Mineral Development Corporation (GMDC)'s net profit rose 18.4% to Rs 279.87 crore on 9% increase in net sales to Rs 1065.22 crore in the year ended March 2010 over the year ended March 2009. The board of directors of the company recommended a dividend of Rs 2.50 per share (125%) for the year ended March 2010. The stock hit a high of Rs 124.45 and a low of Rs 122.05 so far during the day. The stock had hit a 52-week high of Rs 187.70 on 19 January 2010 and a 52-week low of Rs 68.30 on 13 July 2009. It is very safe at current level. Buy.
 
Aban Offshore (Rs. 716.00) (Code : 523204) : Drilling services firm, Aban Offshore, on Tuesday reported a consolidated net profit of Rs 39.26 crore for the March quarter against a consolidated net loss of Rs 93  rore in the same period previous fiscal. Total income rose to Rs 1,020.98 crore in the fourth quarter of the past fiscal, from Rs 774 crore in the same period last year. The company board has proposed a dividend of Rs 3.60 per share, or 180 per cent, on the face value of Rs 2 each to the shareholders. The company has approved fund raising of USD 400 million through issue of FCCBs, GDRs, ADRs etc and QIP of upto Rs 2500 crore. Earlier, Aban Offshore had secured an order for deploying a jack-up rig in the Middle East. The estimated revenue from the contract with an estimated duration of approximately four years is around $187 million. The rig will be deployed in the second quarter of calendar year 2010. The stock has corrected from
Rs. 1200 plus to Rs. 650 within one month. It has now become attractive. There is very less to lose and huge to gain.
Mphasis (Rs. 580.00) (Code : 526299) : Angel Securities has maintained a buy on this stock with a target price of Rs 872, in its report dated May 27, 2010. The report says, "Mphasis reported strong performance for 2QFY2010 with revenue growing by 2.4% qoq to Rs 1,221 crore, in line with our estimate of Rs 1,223 crore. Revenue in dollar terms grew by 5.3% to US $270mn. Growth was largely contributed by robust volume growth in the ITO (up 10.5% sequentially) and application services (up 3.8% qoq) segments. The company continued to witness strong deal wins, with an addition of 22 clients, including 14 through the HP channel." The company will maintain its revenue outperformance in the industry because of its robust business flow from the HP channel. Buy.
Source (Internet Smartinvestments)

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