Intraday Trading Calls for 28th February

Indian Stock Market may open positive and positive trading expected today with very high volatility.
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
STC India	Buy Above	246.25	252.70	260.00
	Sell Below	242.45	237.15	232.00
UFLEX LTD.	Buy Above	140.60	146.15	152.00
	Sell Below	138.05	133.25	128.00
HIND OIL EXPLOR	Buy Above	162.40	168.25	174.00
	Sell Below	158.15	153.70	150.00
C MAHINDRA EXPORTS	Buy Above	212.60	218.40	224.00
	Sell Below	208.40	202.45	196.00
VIDEOCON INDUSTRIES	Buy Above	188.60	194.35	201.00
	Sell Below	185.05	181.50	176.00
SUZLON	Buy Above	47.50	49.25	52.00
	Sell Below	45.40	43.15	41.00
GMR INFRA	Buy Above	40.20	42.35	44.00
	Sell Below	39.15	37.50	36.00

BUY UFLEX LTD. (500148) CMP RS. 140/- SHORT TERM TARGET RS. 175/-++.

GOOD LUCK

Stock Idea: Brandhouse Retails

Brandhouse Retails is looking undervalued, says Ashish Chugh, Investment Analyst.

Chugh told CNBC-TV18, "Brandhouse Retail is a part of S Kumar group. This company is involved in developing and managing exclusive brand outlets for foreign brands in India. The companies, which are in the brand portfolio, include Reid & Taylor, Stephen Brothers, Carmicheal House, Belmonte and Dunhill. This company has got a store network of close to 800 stores, which are spread over 90 cities in India and a total covered area of about nine lakh sq feet. Besides the metropolitan cities, this company has got stores in tier 2 and tier 3 cities also in India."

He further added, "The company has set up a JV with the Italian brand called OVC, under which Brandhouse Retail will hold about 62.5% and 37.5% will be held by OVC. The plan is to open about 200 exclusive retail outlets for OVC brand over a period of the next five years."

"If you look at the financials of the company, FY10 sales were about Rs 660 crore, which were up by about 20% of FY09. Profit after tax (PAT) was about Rs 16.2 crore, which was again up by about 20%. In the first nine months of the current financial year, sales are about Rs 570 crore, which is up by 12% over same period last year. The PAT is almost flat at about Rs 19.5 crore. EPS on an annualised basis is expected to be about Rs 4.5-5. The stock currently trades at about Rs 25, which means that it is trading at a P/E multiple of about five-six."

"This company is a play on India’s consumption story. This is a play on the retailing of international brands in the domestic market and taking them to not just the metropolitan cities, but also tier II and tier III cities. I think the opportunity in the business is very big because there are a number of brands, which want to have a presence in India, given India’s rising consumption theme. There are many foreign companies interested in establishing a presence here."

"Brandhouse has got the knowledge and experience of the local markets. It has already handled business for a number of international players. I think it is a fit company for any foreign brand to employ for creating a brand network or the store network in the India domestic markets."

"If you look at the valuations of the company, I think at a P/E multiple of about five-six for a company where the opportunity is very large, I think the stock is currently available at very reasonable valuations. Also, a current marketcap of about Rs 135 crore as against expected sales of about Rs 700 crore, it is available at just about 20% of one year sales. I think this is a stock where the potential of growth is good. It is a niche stock; you don’t have too many peer companies listed on the exchanges having this kind of a business model. I think at a P/E multiple of five-six and a marketcap of about Rs 130-135 crore, the stock looks undervalued."

Source: Internet (moneycontrol.com)

Stock Idea: Pitti Lamination

Pitti Lamination can be a big outperformer, says Ashish Chugh, Investment Analyst.

Chugh told CNBC-TV18, "For Pitti Lamination, the numbers for the past few quarters have been pretty good. Also, in December quarter, there has been a significant increase in both revenues and profitability of the company. This company provides ancillary support to power, transportation and capital goods sectors. This company manufactures electrical laminations used in electrical motors, pumps, alternators and other electrical machines."

He further added, "If you look at the financials of the company, for the first nine months of the current financial year, the company has registered 80% increase in revenues to about Rs 183 crore. The operating profit is up by almost 100% from Rs 11 crore to Rs 22 crore. The company has registered profit before tax (PAT) of about Rs 5.6 crore as against the loss of roughly Rs 2.5 crore for the same period last year. Its full year earning per share (EPS) is expected to be between Rs 8-9. That means that at the current price of about Rs 35, the stock is trading at a P/E multiple of just about four. Cash EPS this year is expected to be between Rs 14 and 15, which means that stock is available at a price to cash EPS of about 2.5."

 

"This company has learnt a lot from global slowdown, it was more of a soul searching and learning experience for the company. The company, which was focused mainly on the export market before the global meltdown, started exploring the Indian markets where they realised that there is a lot of potential and also the operating margins are much better compared to the exports markets. So, right now the mix of the Indian business in the total revenues of the company has increased much more than it was about two years back. The growth in revenues is on account of growth in both the domestic business as well as the export business."

 

"This company has got orders from various domestic and international companies. Besides the smaller orders, this company has got about Rs 170 crore of order from GE, which is to be executed over the next few quarter. So that is something which provides revenue visibility to the company atleast for the next couple of quarters."

"If you look at the valuations of the company, at the current market price of about Rs 36, this company has got a marketcap of about Rs 35 crore. This company is expected to do operating profit of about Rs 30 crore this year. So, for a company doing an operating profit of Rs 30 crore, marketcap of Rs 36-35 crore looks very cheap."

"Also, P/E multiple of about four and price to cash EPS of about 2.5, I think is very reasonable for a company where the user industry is witnessing a good growth. The company has got a book value of about Rs 65 as against that the market price is about Rs 35-36 which means that it is traded at almost 50% of the book value. A marketcap of Rs 35 crore against expected revenues of Rs 250 crore, I believe the stock looks extremely cheap from all counts."

"I think what is happening is that the good performance of the company has been ignored by the markets mainly because of the uncertainty prevailing for some time. Also because of the fear psychosis in the minds of investors, people are not willing to look at smaller companies. But I think that the company has been consistent in delivering performance, there is growth which is taking place in the user industry. I think as sanity returns to the market and people start again looking at smaller companies, I think these are the kind of stocks, which can really go up very fast.

"Also, the stock is trading at very close to its 52-week low of about Rs 32. So, I think from the current levels of Rs 35-36, the market is uncertain, it may drop by 10-15%, but I do not see a fall more than that. In the event of the markets recovering and midcaps performing, I think the stock can be a big outperformer."

Source: Internet (moneycontrol.com)

Intraday Trading Calls for 22nd February

Indian Stock Market may open negative and flat to negative trading expected today with very high volatility
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
STC India	Buy Above	272.60	278.25	285.00
	Sell Below	265.35	258.25	252.00
UFLEX LTD.	Buy Above	148.20	153.15	158.00
	Sell Below	144.35	140.25	136.00
HIND OIL EXPLOR	Buy Above	172.75	177.25	182.00
	Sell Below	170.00	166.35	162.00
C MAHINDRA EXPORTS	Buy Above	210.00	215.40	221.00
	Sell Below	205.05	200.45	194.00
VIDEOCON INDUSTRIES	Buy Above	194.25	199.15	205.00
	Sell Below	191.05	187.45	182.00
RCOM	Buy Above	94.20	97.60	100.00
	Sell Below	92.40	88.25	85.00
GSPL	Buy Above	93.50	96.70	99.00
	Sell Below	91.70	88.35	86.00

GOOD LUCK

Intraday Trading Calls for 21st February

Indian Stock Market may open positive and positive trading expected today with very high volatility
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
STC India	Buy Above	271.35	277.65	285.00
	Sell Below	265.35	258.25	252.00
UFLEX LTD.	Buy Above	150.00	155.35	161.00
	Sell Below	147.50	142.35	138.00
HIND OIL EXPLOR	Buy Above	172.750	177.25	182.00
	Sell Below	170.00	166.35	162.00
C MAHINDRA EXPORTS	Buy Above	203.75	208.10	215.00
	Sell Below	199.35	193.45	188.00
COROMANDAL INTERNATION	Buy Above	292.20	300.15	310.00
	Sell Below	285.50	278.15	270.00
RCOM	Buy Above	93.65	97.15	100.00
	Sell Below	91.40	88.25	85.00
HIND COPPER	Buy Above	325.85	334.70	350.00
	Sell Below	320.00	308.35	295.00

GOOD LUCK

Intraday Trading Calls for 17th February

Indian Stock Market may open positive and positive trading expected today with very high volatility
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	78.05	81.65	85.00
	Sell Below	76.35	73.25	70.00
UFLEX LTD.	Buy Above	160.00	164.75	170.00
	Sell Below	156.40	152.05	147.00
HIND OIL EXPLOR	Buy Above	178.65	182.75	187.00
	Sell Below	175.55	171.05	168.00
BARTRONICS	Buy Above	65.25	68.15	71.00
	Sell Below	63.40	60.25	58.00
COROMANDAL INTERNATION	Buy Above	272.65	280.15	288.00
	Sell Below	267.15	261.05	255.00
RCOM	Buy Above	100.60	104.25	108.00
	Sell Below	98.50	95.35	92.00
HEXAWARE	Buy Above	111.70	115.40	120.00
	Sell Below	108.70	104.35	100.00

GOOD LUCK

Intraday Trading Calls for 16th February

Indian Stock Market may open positive and positive trading expected today with very high volatility
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
DEWAN HOUSING	Buy Above	268.05	275.35	282.00
	Sell Below	261.35	254.60	248.00
UFLEX LTD.	Buy Above	153.25	158.15	162.00
	Sell Below	150.40	146.05	142.00
NMDC	Buy Above	270.65	276.35	282.00
	Sell Below	267.35	261.05	255.00
APTECH LTD.	Buy Above	108.60	112.35	116.00
	Sell Below	106.40	103.55	100.00
RELIANCE MEDIA	Buy Above	161.25	165.35	170.00
	Sell Below	158.60	154.45	150.00
RCOM	Buy Above	102.60	105.70	110.00
	Sell Below	100.05	97.05	94.00
HEXAWARE	Buy Above	108.50	111.75	116.00
	Sell Below	105.35	101.35	96.00

GOOD LUCK

Stock Idea: Uflex Ltd.

Uflex continues to look like a no-brainer at the current market price, says Ashish Chugh, Investment Analyst & Author of Hidden Gems.

Chugh told CNBC-TV18, "Uflex has plummeted from a high of about Rs 325 to the current price of about Rs 155 in about three months time. This has been on account of negative newsflow. The first was the news of the arrest of the chairman of the company in the month of December. Then was the Egypt crisis, where Uflex has got its manufacturing operations. Inspite of the company’s profit rising five fold from Rs 46 crore to Rs 250 crore in the quarter ending December, the stock fell from about Rs 325 to Rs 155."

He further added, "It is the largest integrated flexible company in India and one of the largest in the world. The company has got manufacturing operations in India, Egypt, Mexico and Dubai. They have aggressive plans to setup operations in other countries and are currently undertaking expansion projects at Mexico, Egypt, Jammu and Poland. Mexico phase II is going operational in the month of June 2011. In Jammu, the expanded capacity is going operational in September 2011 and Egypt is going operational in December 2011. It may get delayed because of the current situation in Egypt."

"For the first nine months of the current financial year, this company has registered sales of about Rs 2,600 crore, which is up by about 50%. Profit after tax (PAT) for nine months, is up by close to 250% from Rs 144 crore to Rs 515 crore. The current equity of the company is about Rs 72 crore."

"I am taking a conservative scenario, on the impact of the Egypt crisis on the operations of the company and also the impact of the softening finish product prices, they can conservatively do a PAT of about Rs 150 crore in the quarter ended March 2011 which means that the full year EPS is going to be on a conservative basis at about Rs 90."

"My hunch is that the EPS can be anywhere between Rs 95 to Rs 100. At the current price of Rs 155, you are getting the stock at PE multiple of just about 2. Having a profit of Rs 700 crore and marketcap of just about Rs 1,100 crore, it looks to be at least for the short-term. In future, the impact of the softening finish product prices will be more than made up for the expanded capacities, which are going on-stream in the next one year."

"This company has been a regular dividend payer. In the past, the policy has been to distribute about 15-20% of the profit as dividend. They paid a dividend of 50% in FY10 and given an EPS of close to Rs 100 this year, even assuming a 10% dividend payout, it would lead to a dividend of about 100% which at the current market price gives you dividend yield of about 6.5% to 7%."

m taking a reverse calculation just to be safe on whether to buy this stock or not. In a normal market, this stock should command a PE multiple of about 5. At the current price of Rs 150-155 the market is assuming that the EPS of the company is going to drop to about Rs 30. From a level of Rs 90-100 EPS, something has to be drastically gone wrong with the company or the economy or the market for the stock to stay at these levels."

"In the month of October, promoters have taken 1 crore 35 lakh warrants to be converted at a price of about Rs 300. Out of this, 35 lakh warrants have already been converted in the month of December, which shows the confidence of the promoters in the company."

"I believe that the fall from Rs 325 to Rs 155 is largely overdone but given the state of the market as of now and the negative sentiment prevailing, I don’t rule out the possibility of the stock dropping by another 5-10% from these levels. More or less, however, the stock trading at a PE multiple of just about 1.5 and dividend yield of about 6.5% to 7%, it looks to be a no-brainer at the current market price."

Source: Internet (moneycontrol.com)

Stock Idea: Sumeet Industries

Accumulate Sumeet Industries, says Ashish Tater, Fort Share Broking.

Tater told CNBC-TV18, "We feel the market has entered into a long-term consolidation phase with a broad range of close to 4,700-5,600. We have been suggesting to our clients that every time you enter into a midcap, at least twice short the Nifty itself. We have been recommending this from January in the New Year itself where we recommended Alok Industries and others because we have been quite bullish on textile for quite some time now."

He further added, "This strategy has been paying off well for us even now. If I see the last 10-12 recommendations that we have given to clients, there has been good Nifty returns in terms of shorting but the textile stocks have stabilised plus-minus 5%. Overall, net-net these pair trading strategies have worked well for us."

"On Sumeet Industries, for the last 20-25 days has seen a broad range of Rs 25 to Rs 28-29 mark but the Nifty has again fallen by 6-7% and is still having a negative bias attached to it. If I look into their expansion, they are going to post an EPS of close to Rs 6-6.5 for current fiscal, which will be available at Rs 28. In FY10 itself, the company has commissioned a two lakh plant on continuous polymer plants along with that capacity expansion into the FDY and POY yarns close to 23,000 TPA’s. That means one year or two year forward, the company would clock an EPS of close to Rs 12. The current price is Rs 28-30. I do not deny that the stock cannot fall to the Rs 24-22 odd levels, but that means the PE would be translated into 1-1.5 times."

"Taking a call on the textile industry, we feel the budget would be largely neutral to negative, to maximum sectors in this space but there would be some benefits to the textile stocks. If I see the demand for textile - cotton and denim, we feel there are another 2-3 quarters left for sheer outperformance in terms of share prices for the stock before this euphoria dies out."

"During this time, commodity stocks normally trade at 5 times their peak levels. That means on an estimated EPS of close to Rs 12 and discounting it by 20%, the stock should command a PE of 4 in the next six-eight months. We are targeting Rs 40-48 and we have an accumulate call on the stock."

"Looking at their entire expansion project, it needs to be funded close to Rs 500 crore, which means a lot of debt will come into the balance sheet of the company. This is one question that is worrying me, but the way they have managed their cash flows in the past, I am confident about the management. One good thing is that the management has not been sellers of the stock despite the stock having given good returns in the past.

Source: Internet (moneycontrol.com)