Monday, May 3, 2010

Intraday Trading Calls for 03rd May

Indian Stock Market may open positive and remains good for the day today.
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):
SCRIP NAME
TRIGGER
PRICE
TARGET 1
TARGET 2
SUJANA TOWER
Buy Above
52.25
55.05
58.00
Sell Below
50.70
48.25
46.00
SASKEN COMM.
Buy Above
220.75
226.50
232.00
Sell Below
208.30
202.70
198.00
GODREJ INDUSTRIES
Buy Above
167.25
172.10
178.00
Sell Below
165.30
161.10
157.00

PURVANKARA
Buy Above
112.25
117.55
122.00
Sell Below
109.40
105.20
100.00
INDOWIND ENERGY.
Buy Above
54.50
57.20
60.00
Sell Below
53.35
51.20
49.00
REL POWER
Buy Above
163.70
167.55
171.00
Sell Below
161.55
158.20
155.00
INDIABULLS REALEST
Buy Above
171.25
176.75
182.00
Sell Below
169.05
165.15
160.00

GOOD LUCK

Stock Idea: Provogue India Ltd.

Provogue India Ltd (Rs 50) (Rs 2 paid up)
(BSE Code- 532647 NSE Code- PROVOGUE)
(P/E- 10, FY09 Sales - Rs363 cr, Market Cap - Rs575 cr)

Provogue India Ltd (PIL) operates in two core segments: designing, manufacturing and selling of branded ready-made garments and accessories under the brand, Provogue, which has been positioned as a fashion label in the Indian domestic market. A major portion of the apparels is manufactured at an in-house plant at Daman (Union Territory), with the remaining garments and accessories outsourced. Distribution is managed through a mix of owned branded stores and a network of national chains and single owner multi-brand outlets (MBOs). Exporting is the second business (acquired from a group company on 1 April 2004). Provogue is registered as an ‘export house’ by the government of India. The company exports finished fabrics, dyestuffs, chemicals and textile machinery to several markets in the African continent. All these products are outsourced from various suppliers. Provogue came out with an IPO at Rs 150 per share(Rs 10 paid up) in mid June 2005 to finance the expansion of the company's retail stores and its garment manufacturing and design capabilities.
Provogue has emerged as a leading fashion brand in the Indian ready to wear (RTW) markets, within a relatively short span of seven years since its launch in 1998. It commands a very high brand recall among customers, made possible due to its aggressive marketing strategies, innovative merchandise and famous brand ambassadors. Provogue made a net profit of Rs 59 cr. on revenues of Rs 363 cr. in FY09 on consolidated basis. On a equity of 22.96 cr.,(Promoters’ stake- 42.08%) the EPS on a Rs 2 paid up share stood at Rs 5 and the dividend declared was 30%.. For the nine months ended December, 2009, Provogue has posted net profit of Rs 24.55 cr.(up 16.5%) on net sales of Rs 310 cr.(up 15%) on standalone basis.
After a year of slow growth, apparel maker and retailer Provogue is reworking its business strategy to boost revenues and prop up margins. After the consolidation in the last two years, the company is ready to grow aggressively. Under the new strategy, Provogue plans to reduce the size of its stores, sell more of its vendor brands, slow expansion in its discount format, and scale down mall development. It is confident that this strategic shift, along with the perking up of the economy, will ensure a topline growth of 25-30% every year going forward. Provogue, which opened its first store in 2001, today has 126 stores and over 100 shop-in-shops. The company plans to open 50 new stores in the next two years with an investment of Rs 35 cr. to take its store count to 175. Prozone Liberty, the mall development arm of Provogue, has also scaled down its plans given the slowdown in the retail sector earlier. Originally, the company planned to build six malls, now it is going ahead with only three, in Jaipur, Indore and Aurangabad. The company is also exploring ways to use additional land in these sites for alternative uses such as residential development.
Provogue India is also in talks with FMCG companies to form a joint venture to distribute its bodycare products across the country. Currently, Provogue sells hair gel, body spray and other accessories under its own brand name in its stores and select outlets of Shoppers Stop’s department stores. The distribution JV is expected to help it gain better market share and expected to give Rs 50 cr. in revenues in the next couple of years. The company is planning to float a separate company in West Asia and is in talks with companies in the region to start retailing operations there and the company expects to sign a JV by the middle of next year and open stores by financial year 2011. Provogue is also planning to re-brand its discount format, Promart, into a value brand and a more youth-oriented concept. In view of the above developments and improving growth prospects, Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-45% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea; Smartlink Network Systems Ltd

Smartlink Network Systems Ltd (Rs 45) (Rs 2 Paid Up)
(BSE Code- 532419 NSE Code- SMARTLINK)
(P/E- 6.5, BV per share - Rs50, Equity - Rs6 cr, Market Cap - Rs135 cr)
Smartlink Network Systems Ltd (formerly known as D-Link (India) Limited): The Group's principal activities are to manufacture and market networking and communication products. The products include Interface cards, switches, modems, transceivers, print servers, internet servers and routers. Its broadband products include cable modem, wireless products/security products and networking storage products. The Group operates only in India. This Goa based company is engaged in production and marketing of equipments for Telecom industry. The company has restructured its operations. Its trading turnover has dipped sharply and income from manufacturing operations is rising, enabling much better bottom line.
For the nine months ended Dec. 2009, the company has posted net profit of Rs 14.06 cr.(up 330%) on net sales of Rs 122 cr. (almost flat). The EPS on a Rs 2 paid up share for nine months stands at Rs 4.7 on a equity of 6 cr.(Promoter’s stake-62.37%). The company is likely to achieve EPS of Rs 6.5-Rs 7 for FY10. Book Value is Rs 50 as company has reserves of about Rs 140 cr. At the current market price of Rs 45, the stock trades at 6.9 times expected FY10E earnings(Rs 6.5- Rs 7) and at 5.2 times its FY11E earning(Rs 8- Rs 9). Investors can start accumulating the stock at current levels and add more on declines for decent returns of 45%-50% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

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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