Thursday, March 25, 2010

Intraday Trading Calls for 25th March

Indian Stock Market may open flat to positive and remains highly volatile for the day today. A good buying and 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
BRFL
Buy Above
220.00
225.75
232.00
Sell Below
217.25
212.75
207.00
ATLANTA
Buy Above
223.05
228.65
234.00
Sell Below
220.00
215.35
220.00
CAIRN INDIA
Buy Above
294.05
300.00
307.00
Sell Below
291.35
286.45
281.00

HIND OIL EXPLO
Buy Above
237.80
244.70
252.00
Sell Below
235.05
231.40
225.00

JINDAL SAW
Buy Above
220.65
225.35
231.00
Sell Below
218.35
212.65
208.00
ALEMBIC LTD.
Buy Above
50.25
52.55
55.00
Sell Below
49.35
47.25
45.00
APTECH
Buy Above
171.65
176.25
182.00
Sell Below
169.45
165.45
161.00
GOOD LUCK

Stock Idea: McLEOD RUSSEL

This B.M.Khaitan tea company has been literally on the boil. With tea prices perking up, the company has been able to brew a set of very good financial performance for the third quarter ended 31st Dec 2009.

The world's single largest producer of tea with gardens spread across India, Vietnam and Uganda, posted on a YoY, a whopping 184% jump in net profit at Rs.137.94 crore. This super jump in net was on account of the production going up from 205 lakh kgs to 227 lakh kgs. Sales volumes jumped up from 211 lakh kg to 235 lakh kg. More importantly, its sales realization, on an average for Q3 was at Rs.142.41 kg vis-à-vis Rs.114.91 per kg.

The bullish cycle in tea is expected to continue over the next 4 years. Next year, prices are estimated to remain high due to global tea shortage on account of drought in Kenya, Sri Lanka and India, which account for more than 50% of global tea exports. There has been a 32% drop in crop harvest in Sri Lanka and 21% drop in Kenya.

Tea prices in India are expected to remain at the current high levels till end of this year. The company aims to have a revenue of Rs.1,000 crore in current fiscal and net profit is expected to be around Rs. 480 crore for the full year.

Stay invested as FY10 will end at a historical high performance for Mcleod.

Source: Internet (premiuminvestments.in S P Tulsian)

Stock Idea: Dish TV

Expect DTH industry to add 10 million subscribers in each of the next three years. Based on our interaction with the managements of various DTH operators, we remain confident of our industry wide subscriber addition forecasts. We expect Dish to remain the market leader for the next five years, despite an assumed decline in net adds market share from 25.6% in FY3/09 to 22% in FY3/10E and thereafter. Dish has delivered positive EBITDA for three consecutive quarters, clearly surprising us and the Street positively. We now forecast EBITDA margins to double to 20.1% in FY3/11 from 9.3% in FY3/10E. Despite assuming no major up tick in margins in FY3/12 (20.5%), we forecast EBITDA to increase by over 3x to Rs3.7bn from Rs1bn in FY3/10E. Positive investment view based on strong improvement in operating cash flows, led by strong growth in subscriber base and tight cost control. We expect Dish TV to add 4.4m subscribers over the next two years, implying a CAGR of 27.4% in the subscriber base for FY3/10–12. Dish TV management has done a commendable job in capping the content cost as a percentage of subscription revenues by entering into fixed-price contracts; we view this as the key reason for the sharp rise in EBITDA. Funding overhang removed. Sixty-four percent of the money raised in a rights issue has been infused into the company, and we do not view funding as a bottleneck to growth.
Key Developments
Dish TV gadget to help switch DTH operator Dish TV, the country's largest DTH operator, proposes to launch Conditional Access Modules (CAM) in May that would help subscribers of other DTH players to switch over to the company's platform at a lower price. The proposed move by Dish TV, the first time in the country by any operator, could indirectly trigger inter-operability in the DTH sector. The company also proposes to launch High Definition TV (HDTV) services in the next three months. CAM is a card-like gadget that can be inserted in the STB, which will enable the subscriber to shift from the current DTH provider to another.
The licensing norms of the Telecom Regulatory Authority of India (TRAI) mandate that the STBs offered by the DTH players should be CAM-compliant or have an empty space where the card could be inserted.

Valuations
At CMP of Rs 36.6, the stock trades at 5.1x TTM EV/sales of Rs 987 crore. We believe the industry is looking attractive mainly on back of digitalization growth with HITS policy approved by cabinet. To capture the growth coming ahead we believe Dish TV is better placed than its peer group. We recommend ‘BUY’ on the stock with a price target of Rs 50 representing upside potential of 36%.

Source: Internet (Valuenotes by KRChoksey)

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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