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)

Intraday Trading Calls for 30th April

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	50.65	53.15	56.00
	Sell Below	49.50	47.25	45.00
SASKEN COMM.	Buy Above	214.25	220.00	226.00
	Sell Below	211.10	206.70	201.00
ESCORTS	Buy Above	177.65	182.20	188.00
	Sell Below	175.30	171.15	167.00
PURVANKARA	Buy Above	108.60	114.35	120.00
	Sell Below	105.45	100.20	96.00
APTECH LTD.	Buy Above	172.50	178.10	183.00
	Sell Below	169.35	165.20	160.00
REL POWER	Buy Above	164.25	168.25	172.00
	Sell Below	162.45	158.20	155.00
VIDEOCON INDUSTRIES	Buy Above	231.10	236.75	244.00
	Sell Below	228.15	223.35	218.00

GOOD LUCK

Intraday Trading Calls for 29th April

Indian Stock Market may negative but buying expected from lower levels.A flat to positive closing expected.
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	50.65	53.15	56.00
	Sell Below	49.50	47.25	45.00
SASKEN COMM.	Buy Above	206.75	213.25	220.00
	Sell Below	204.10	198.70	192.00
ESCORTS	Buy Above	173.10	178.10	184.00
	Sell Below	171.40	167.15	162.00
POWER GRID	Buy Above	111.75	116.35	121.00
	Sell Below	109.35	105.20	101.00
APTECH LTD.	Buy Above	168.60	173.70	178.00
	Sell Below	166.35	162.20	158.00
REL POWER	Buy Above	158.70	163.55	167.00
	Sell Below	156.35	153.20	150.00
VIDEOCON INDUSTRIES	Buy Above	230.00	235.55	241.00
	Sell Below	227.15	223.35	218.00

GOOD LUCK

Intraday Trading Calls for 28th April

Indian Stock Market may negative but buying expected from lower levels.A flat to positive closing expected.
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	51.60	54.15	57.00
	Sell Below	50.35	48.25	46.00
SASKEN COMM.	Buy Above	213.75	218.20	224.00
	Sell Below	210.30	205.10	200.00
ESCORTS	Buy Above	175.65	180.15	186.00
	Sell Below	173.40	168.50	164.00
BRFL	Buy Above	220.10	226.35	232.00
	Sell Below	216.45	211.20	206.00
APTECH LTD.	Buy Above	173.65	178.70	184.00
	Sell Below	171.05	167.20	162.00
REL POWER	Buy Above	159.20	163.55	167.00
	Sell Below	156.35	153.20	150.00
L G BALAKRISHNAN (500250)	Buy Above	267.25	274.55	282.00
	Sell Below	263.15	257.15	250.00

GOOD LUCK

Stock Idea: Sonata Software

This small cap IT company posted revenues of Rs.319.10 crore (Rs 368.38 crore) during the quarter ending March 31, 2010, a drop of 13%. But it managed to hold its fort by reducing expense, depreciation, taxation and interest outgo and posted a 9% higher net profit at Rs.18.78 crore.

About 42% of the company’s revenues came from Europe, 49% from the US and the remaining from the rest of the world. The company added 19 new clients during the year.

Its net profit rose 12.8% to Rs.60.20 crore on 3.1% fall in net sales to Rs 236.09 crore in FY10 compared to FY09. The company's equity capital is Rs 10.52 crore. Face value per share is Re. 1, giving an EPS of Rs.5.72.

Like most of the IT companies, this company too had a nightmarish time due to the strong currency. With the Indian rupee expected to remain strong in the current fiscal too, the company has to look at volume growth or more concentration in Indian markets to probably get over its weak forex earnings. Infact the company is looking at increasing the client list in the European market and plans to go beyond its major partner-cum-client TUI AG and expand into new markets. TUI InfoTec is a joint venture between Sonata Software Ltd and TUI AG, where Sonata owns a majority stake. About 60 per cent of the work from TUI AG is outsourced to Sonata at India with remaining 40% coming to TUI InfoTec. The company is now planning to tap non-TUI clients. Its focus for the coming year would be around Outsource Products Development (OPD), building solutions framework, travel & tourism and Enterprise segment.

The company is looking at new acquisitions in Singapore and Malaysia in the range of $25- $50 million.

The stock price is expected to remain range bound but any news of an acquisition could lead to a spurt. Keep a tab on this stock.

Source: Internet (Premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 27th April

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VIDEOCON INDUSTRIES	Buy Above	241.75	248.25	254.00
	Sell Below	238.35	233.55	228.00
SASKEN COMM.	Buy Above	225.00	231.20	237.00
	Sell Below	221.30	215.10	210.00
ESCORTS	Buy Above	178.60	183.75	188.00
	Sell Below	176.40	172.20	168.00
ATLANTA	Buy Above	275.20	282.15	290.00
	Sell Below	270.45	264.20	258.00
BARTRONICS INDIA	Buy Above	157.10	162.20	168.00
	Sell Below	153.50	148.65	144.00
REL POWER	Buy Above	160.25	164.55	168.00
	Sell Below	158.35	155.20	152.00
L G BALAKRISHNAN (500250)	Buy Above	265.25	272.35	278.00
	Sell Below	261.35	256.15	250.00

GOOD LUCK

Stock Ideas: TIL Ltd., Indian Nippon, GNFC, Jyoti Lab, Punj Lloyd

TIL Ltd (Rs. 354.00) (Code : 505196) At present the company is associated with a strategic business group and its business includes material handling, construction, power systems and mining. During the Q3 ended in the sales of company has increased to Rs. 210.64 crores with growth of 11 % and its net profit also increased to Rs. 6.28 crore with a rise of 19 % It is highly expected  that during the CY 2010 the company may earn the net profit of Rs. 34 crore with  the sales of Rs. 811 crore and will achieve the EPS of Rs. 34. earing the PE of only 7.5 this scrip may spurt anytime.

Indian Nippon (Rs. 241.00) (Code : 532240) The company is a joint venture of Lucas group and Hitachi group. During the Q3 ended in December the company has earned the net profit of Rs. 4.04 crore with sales of Rs. 41.55 crore and also achieved the EPS of Rs. 20. The company has very tiny equity of Rs. 8.08 crore which is the main attraction for the investors, hence they are recommended to include this scrip in to their portfolio for short term.

GNFC (Rs. 117.00) (Code : 500670) Owned by Gujarat government this company is mainly engaged in production of basic chemicals like Methanol, Acetic acid, TDI, cane and ANP. The company has chalked out a capex plan of Rs. 4000 crore for its up gradation and diversification. The company has market cap of Rs. 1764. 2 crore. During the Q3 ended in December the company has earned the net profit of Rs. 59.7 crore with sales of Rs. 765.9 crore which suggests the EPS of 3.8. Investors are recommended to add this scrip in their portfolio for mid to long term investment.

Jyoti Lab (Rs. 171.00) (Code : 532926) This company is mainly engaged in production of fabric care, household, insecticide, fragrance, personal care and its allied business. The company during last five years has achieved the7 % growth in its top line and 10 % growth in its bottom line. It is expected that during the next two years the company will achieve the growth of 18 to 19 % in its sales, net profit and EBITDA margin. The debt free company has very robust cash balance of Rs. 100 crore. Investors are recommended to grab this scrip at present price as it is quoted at 14 multiple of estimated income of 2010-11.

 

Punj Lloyd (Rs. 168.00) (Code : 532693) The second largest engineering and procurement company may get maximum benefit of investment from Indian as well as some overseas companies. For the last so many months company has witnessed some recovery in its order book which may provide the best prospectus to the company for the next two-three years. At present the company has orders of hefty amount of Rs. 26305 crore in its kitty. During the Q3 ended in December company has earned the net profit of Rs. 12.47 crore with the sales of 2903.97 crore. The share, at present available at the book value of 105, is quoted at PE of 1.74. Investors are recommended to grab this scrip at every dip.

Source: Internet (SmartInvestment)