Stock Idea: Unichem Lab

Karvy Stock Broking has maintained its buy rating on Unichem Laboratories with a traget price of Rs 225 in its May 16, 2008 research report. "The company's net revenues for the quarter were up by 3.2 % to Rs 1383 million. The growth has been driven by a 11 % growth in domestic formulations business revenues which has been offset by degrowth in exports. Operating margins were lower by 500 bps to 14.2 % mainly on account of lower gross margins and higher excise. Profits for the quarter were higher by 13 % to Rs 153 million."
"We upgrade our FY 2009E EPS nos by 7.3% to Rs 22.1 and maintain our FY 2010E nos at Rs 31.3. We upgrade our price target by 10 % to Rs 225 based on 10.2x FY 2009E. The Company is quoting at attractive valuation of 6.6X FY09E. We maintain our BUY rating on Unichem," says Karvy's research report.

Market This Week

Market This Week
Sensex up 4%; Nifty up 3.5%
CNX Midcap Index up 2.5%; BSE Small Cap Index up 1.2%
BSE Metal Index up 9.5%, BSE IT, Bank Index up 5% each
BSE Cap Goods Index up 4.2%, BSE Healthcare Index up 4%
Nifty Gainers: Hindalco up 19%, Suzlon up 13%, SAIL, RComm up 12%, PNB up 13%
Nifty Gainers: Ranbaxy up 8.3%, Nalco up 19%, Tata Steel up 5.6%, TCS up 6.7%
Nifty Losers: ONGC down 8%, BPCL down 4.2%, ACC down 4.8%, Bajaj Holdings down 4.6%
Midcap Gainers: Chambal Fert up 21.7%, JSW Steel up 25%, Mercator Lines up 16%
Midcap Gainers: Lanco Infra up 15%, NIIT Tech up 10%, Orchid Chem up 10%, BILT up 8.5%
Source: moneycontrol.com

Markets Today

Markets Snapshot
Markets end in the green amid volatile trade
Sensex ends up 81.4 pts at 17435; Nifty up 42.5 pts at 5158
CNX Midcap Index up 0.8%, BSE Small-cap Index up 0.86%
BSE Metal Index up 2%; SAIL up 7.5% post results
BSE Bank Index up 1.8%; PNB up 6.5% on back of good numbers declared yesterday
Index gainers; BPCL up 5.8%, Suzlon up 5.2%, Cairn India up 4.6%, Tata Power up 3.6%, Ranbaxy up 3.25%
BSE IT Index down 0.5%; HCL Tech down 2.3%, Infosys down 1.1%
Result Impact: SAIL, Bongaingaon Refinery
Buzzers: Assam Co up 10%, Harrisons Malayam up 11.6%, Tamilnadu Petro up 20%, Hyderabd Ind up 20%
Buzzers; Chambal Fert up 8.5%, Guj NRE Coke up 6%, BOI up 5.7%, Dish TV up 5.5%, Nag Fert up 5.5%
Losers; Welspun India down 5.3%, Megasoft down 6.2%, BF Utilitiues down 5%
NSE Advance Decline at 2:1
Total market turnover at Rs 57402 cr Vs Rs 58476 cr on Thursday
Total NSE F&O turnover at Rs 37877 cr Vs Rs 38196 cr on Thursday
F&O Snapshot
Nifty futures discount at 12 pts; add 7.3 lakh shares in OI
Traders buying 5100 call option and hedging it by shorting Nifty 4900, 5000 witness put wriitng and 5100 witness call writing
Long positons witness in momentum stcoks like Chambal Fert, Nag Fert, Ispat and stcoks like SAIL, Suzlon
Sugar stcoks witnmess unwinding of long positons and fresh shorts
Long Positions
Brigade Ent up 14.5%; add 1.68 lakh shares in OI
Chambal Fert up 9.5%; add 44.2 lakh shares in OI
Nag Fert up 5.2%; add 32 lakh shares in OI
Ispat up 2.3%; add 22.7 lakh shares in OI
HCC up 3%; add 10.5 lakh shares in OI
SAIL up 7.8%; add 7.2 lakh shares in OI
Suzlon up 4.6%; add 6 lakh shares in OI
HDIL up 4.35; add 4.3 lakh shares in OI
Short Covering
India Cement up 2%; shed 5.3 lakh shares in OI
Petronet LNG up 4.7%; shed 3.5 lakh shares in OI
Aptech up 2%; shed 2.6 lakh shares in OI
BOI up 5.25%; shed 1.6 lakh shares in OI
Sugar Stocks
Bajaj Hind down 2.4%; shed 1.6 lakh shares in OI
Triveni Eng down 2%; shed 2.8 lakh shares in OI
Shree Renuka down 1.5%; add 12.5 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 16th May

Market may open positive but face profit booking at higher levels. It may remains positive but with very high volatility and again a positive closing expected.

Today's Intraday Trading Picks:

MERCATOR LINES
VOLTAS
CHENNAI PETRO
INDIABULLS SECURITIES
YES BANK
HIND OIL EXPLORATION

For Levels and Targets download the file by CLICK HERE.
Others: IT Sector: Infosys Tech, Satyam Computer, 3i Infotech & Prithvi Info.

Good Luck

Stock Idea: FSL, Redington India

PINC Research has maintained its buy rating on Firstsource Solutions with a 12-month price target of Rs 66 in its May 14, 2008 research report. "Firstsource Solutions Ltd. (FSL) reported sales of Rs 3.8 billion in Q4FY08, a flat QoQ growth. However, operating profits posted a 7.4% QoQ rise to Rs 622 million, as the previous quarter had one-off items. Net profit growth, though was subdued due to a provisioning for FCCB’s (Rs 195.6 million) which resulted in only a 1.9% QoQ growth to Rs 210 million."
"At the CMP of Rs 40, FSL is trading at a P/E of 14.3x and EV/EBIDTA of 7.6x. Though FSL could face short term uncertainties in key segments we continue to believe that its offerings are expected to witness greater traction due to the under penetration of outsourced BPO services. Hence, as FSL possesses proven capabilities to capture these opportunities, it has the potential to report robust earnings growth and stable free cash flows which should enable its valuations to align with that of its global peers. Thus, we maintain our ‘BUY’ recommendation with a 12-month price target of Rs 66," says PINC's research report.

PINC has maintained buy rating on Redington India with target price of Rs 445 in its May 13, 2008 research report. "For Q3FY08, Redington posted consolidated net sales of Rs25.9 billion, a 14% YoY growth. This was on back of consistent growth in the distribution business across geographies. While domestic revenues (52% of net sales) grew 18.4% YoY at Rs13.5 billion, overseas revenues rose 7.9% YoY to Rs 12.4 billion. Scale up in volumes has improved its operational metrics and its PBIT margins have expanded 50bps in two years to 2.3%. Net profit contribution ratio from both markets is at 50/50, because of low effective tax rate overseas i.e. 5%, where as Indian business attracts highest tax rate at 35%. Going forward, we expect higher contribution from India because of higher growth prospects in same."
"Considering the track record and consistent ability to deliver SCM and support services solutions for IT and consumer lifestyle products, we believe Redington is well positioned to maintain its market share in highly competitive scenario. At CMP of Rs 351, the stock is ruling at a P/E of 9.3x and EV/EBITDA of 7x in FY10E. Assuming a terminal growth rate of 6% and 13% cost of equity, we arrive at a DCF value of Rs 445 for the stock excluding NBFC valuations. We initiate coverage with a ‘BUY’ recommendation on a 12-month perspective" according PINC report.

Markets Today

Market Snapshot
Market witness strong session led by across sector buying
Sensex ends up 375 pts at 17353; Nifty up 103.5 pts at 5115
CNX Midcap Index up 1.5%, BSE Small-cap Index up 1.3%
BSE Cap Goods Index up 3.5%; L&T up 5%, BHEL up 3.2%, Suzlon up 3%
BSE Realty Index up 3.4%; Unitech up 4.25%, DLF up 3.5%
BSE Oil & Gas Index up 2.6%; RIL up 3.6%, ONGC up 1.3%
Index gainers; Hindalco up 6%, Nalco up 4.1%
PNB, R Comm up 5.5% on better than expected results
Satyam down 3% as co loses appeal against HC judgement in Upaid case
Sugar stocks gain; Triveni Eng up 8.3%, Bajaj Hind up 6.7%, Shree Renuka Sugar up 6%, Balrampur Chini up 4.5%
NSE Advance Decline ratio at 3:1
Total market turnover at Rs 58476 cr Vs Rs 51837 cr on Wednesday
Total NSE F&O turnover at Rs 38196 cr Vs Rs 32919 cr on Wednesday
Buzzers
Mercator Lines up 14% on back of better than expected numbers
Lupin up 11% on back of better than expected numbers
Madras Aluminiuim up 10%; board to mull stock split
Nelco up 10%; Q4 Net Profit At Rs 9.2 Cr Vs Rs 4.3 Cr
F&O Snapshot
Nifty futures premium ends flat; add 20.1 lakh shares in OI
Short covering seen in large cap stcoks like RIL, DLF, Unitech, R Comm and cap goods stcoks
Fresh longs seen in sugar stocks
5000, 4800 Nifty put seen most active
5100, 5200 Nifty call seen most active
Short covering in Biggies
RIL up 3.3%; shed 2.3 lakh shares in OI
R Comm up 4.8%; shed 2.2 lakh shares in OI
Unitech up 4.6%; shed 1.7 lakh shares in OI
DLF up 3.2%; shed 1 lakh shares in OI
JP Associates up 2%; shed 6.2 lakh shares in OI
Short Covering in Cap Goods
L&T up 4.8%; shed 1.3 lakh shares in OI
Crompton Greaves up 7%; shed 1.1 lakh shares in OI
BHEL up 3.2%; shed 85 thousand shares in OI
Fresh longs in sugar stocks
Shree Renuka up 6%; add 33 lakh shares in OI
Balrampur Chini up 5%; add 9.6 lakh shares in OI
Trivein Eng up 8.3%; add 6 lakh shares in OI
Fresh longs
IFCI up 2.2%; add 28 lakh shares in OI
RNRL up 2.8%; add 16.5 lakh shares in OI
Hindalco up 5%; add 9.5 lakh shares in OI
Source: moneycontrol.com

Intraday Calls for 15th May

Today Indian Stock Market may open positive but remains very volatile. A positive closing expected.

Today's Intraday Trading Calls:

Mercator Lines
JP Associates
IOC
Essar Oil
Sterlite Industries
3i Infotech

For Levels and Targets download the file by CLICK HERE.

Good Luck