Stock Idea: Petronet LNG

Angel Broking has upgraded its rating on Petronet LNG to buy rating with a target price of Rs 90 in its May 9, 2008 research report. "Dahej expansion to 12.5 mmtpa (current 6.5 mmtpa) is slated to come on stream July onwards in a phased manner. Expanded capacity will help Petronet process more Spot volumes till the 2.5mmtpa contracted supplies from Qatar commence October 2009 onwards. For the next 2-3 years, growth will primarily be driven by Spot LNG and the expanded capacity will benefit from the situation."
"The company is now also diversifying into different segments like power, port development, etc., which is expected to generate value over a period of time. We have valued Petronet on DCF methodology with a Cost of Equity of 15.2% (high as it is a high beta stock), Cost of Debt - 10% and WACC - 9.2%. The stock is currently available at 9.8x FY2010E EPS of Rs7.7. Based on our DCF valuation model, we upgrade the stock to a Buy, with a target price of Rs 90," says Angel's research report.

Markets Today

Markets Snapshot
Markets end near day's high led by metal & tech stocks
Sensex ends up 225 pts at 16978; Nifty ends up 54 pts at 5012
CNX Midcap Index up 0.9%, BSE Small-cap Index up 0.5%
Metal Index up 4.36%; base metal prices gain due to earthquake in China
IT Index up 3.9% as rupee hits 42.665
Hind Zinc up 17%; Zinc prices was up nearly 6.5% ; China accounts for about 39% of the global zinc production
Index Gainers; DRL up 8%, TCS up 7.3%, Infy up 4.35%
Metal pack: Hindalco up 6.8%, Sterlite up 5%, Tata Steel up 4%
Index losers; ONGC down 6%, GAIL down 3.3% on concerns of oil subsidy burden
Satyam off days high as the co loses appeal against HC judgement in upaid case
Buzzers; Chambal Fert up 6%, Orchid Chem up 7.4%, Alok Ind up 9.4%, NIIT Tech up 5.2%, Deccan Aviation up 5.5%
Lanco Infra up 11%; wins 8000 cr rs Vizhinjam international terminal container project in Kerala
NSE Advance Decline ratio at 5:4
Total market turnover at Rs 51837 cr Vs Rs 58431 cr on Tuesday
F&O Snapshot
Nifty futures end at mild premium; add 16.5 lakh shares in OI
Some unwiding of long positions seen in later part of the day
Volumes in FNO remain low; Total NSE F&O turnover at Rs 32919 cr Vs Rs 38108 cr on Tuesday
Momentum, metal stocks saw addition of long positions
ONGC, Satyam, IOV witness addition of short posiitons
Long Positions
IFCI up 3.6%; add 26.4 lakh shares in OI
Ispat up 4.6%; add 19 lakh shares in OI
Arvind up 5%; add 14 lakh shares in OI
RPL up 3.1%; add 13 lakh shares in OI
Tata Steel up 4.6%; add 11 lakh shares in OI
Hindalco up 7.6%; add 8.8 lakh shares in OI
Polaris up 5.9%; add 5.5 lakh shares in OI
Lanco Infar up 13%; add 2.5 lakh shares in OI
Fresh Shorts
ONGC down 5.9%; add 11.3 lakh shares in OI
Satyam down 1%; add 6.5 lakh shares in OI
IOC down 4.5%; add 2.8 lakh shares in OI
Short Covering
Sterlite up 4.5%; shed 2.4 lakh shares in OI
Cairn India up 2.16%; shed 2.8 lakh shares in OI
TCS up 6.5%; shed 1.2 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 14th may

Market may open gap down but after that smart recovery expected.

Today's Intraday Picks:

INDIABULL REALEST
NALCO
UNITECH
SAIL
ORCHID CHEMICAL
3I INFOTECH

For Leves and Targets download the file by CLICK HERE.

Good Luck

Stock Idea: JAI CORP

Jai Corp has got major market fancy on the bourses. The reason could also be partly attributed to the fact that one of the promoters of the company, Anand Jain is best buddy of Mukesh Ambani. Call it reflected glory or anything else, for the markets, any association with Reliance is reason enough!

The company, engaged in steel, plastic processing, and spinning yarn has now evolved itself more into a realty company, having taken up development of SEZs. It has posted very good results for the year ended 31st March 2008.

The net sales of the company rose 23% at Rs.334.14 crore and the surge in ‘other income’ also helped boost the topline and thus the bottomlines. PBT rose 76% at Rs.148.32 crore and PAT rose by a sharp 91% at Rs.141.10 crore. On an equity of Rs.17.85 crore, the company posted an EPS of Rs.8.05 on a face value of Re.1 per share.

The company has recommended a dividend of 100% and the promoters have irrevocably waived their entitlement to dividend on equity shares held by them for the financial year 2007-08.

The company has now chalked out plans to invest around Rs.1000 crore in two SEZs - Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ (MSEZ). Both are being co promoted by Reliance Industries. It is also developing a greenfield port in Rewas, jointly promoted by Maharashtra Maritime Board, Amma Lines, Reliance Logistics and Jai Corp. The company plans to invest in building airport, roads and bridges.

There is very little floating stock in the market, with 72.54% being held by the promoters and 10.23% being held by the FIIs. The public shareholding is just 12.40%. That and the association with Reliance, explains the high fancy for the stock.
Currently quoted at Rs.700, the share price dipped despite the robust performance. Stay invested.

Source: Sptulsian.com

Markets Today

Market Snapshot:
Markets end near day's low amid political noise through out the day
Oil stocks under pressure after profit booking in upstream cos and markeing/ refining cos hit on FM comment
FM not okay with sharing 57% of oil cos revenue loss; not looking at hiking auto fuel prices now
Sensex ends down 108 pts at 16753; slips 332 pts from day's high
Nifty ends down 55 pts at 4956; slips 110 pts from day's high
CNX MIdcap, BSE Small-cap ends flat
Oil & Gas Index down 2.5%; Cairn India down 8%, ONGC down 2.8%, BPCL down 2.4%, RIL down 2%
Metal stocks gain; Nalco up 6.5%, Hindalco up 2.9%, Tata Steel up 1%
Steel Secretary working on Cabinet proposal to mitigate export duty impact: Sources
MphasiS up 10% on back of expectations of open offer from HP
Buzzers; Rane Holding up 20%, LG Bros up 12%, Orchid Chem up 7.7%, Gwalior Chem up 5.4%
Losers; HOEC down 4.8%, Oswal Chem down 4%, Essar Oil down 3.9%, GMR Infra down 3.6%
NSE Advance Decline ratio at 1:1
Total market turnover at Rs 58431 cr Vs Rs 60102 cr on Monday
Total NSE F&O turnover at Rs 38108 cr Vs Rs 41000 cr on Monday
F&O Snapshot
Nifty futures ends at 7 pts discount after trading in premium for last 5-6 days
Nifty futures add 27.5 lakh shares in OI
Put writing witness at 4800, 4900 level
Unwinding of long positions seen in momentums stocks
Short covering seen in Orchid, BILT

Stock Idea: TTML

HDFC securities has maintained its buy rating on Tata Teleservices (Maharashtra) with a price target of Rs 63 in its May 13, 2008 research report. "Media reports have indicated that Tata Teleservices (TTSL) is placing 10% equity for its expansion in the CDMA and the soon-to-be-launched GSM services. Mexican billionaire Carlos Slim-controlled Telcel, UAE’s Emirates Telecommunications (Etisalat), Russian operator Altimo and buyout fund Apax Partners are in the fray, valuing the firm at USD 10 billion."
"DoT has granted GSM license to Tata Tele (including TTML) in 19 circles under the dual technology policy, but the launch of GSM services will depend on spectrum availability. TTML has shown a remarkable turnaround in financial and operational parameters, which we believe will reflect in its future performance, backed by expert top management. Subscriber acquisition rate for TTML at 38% CAGR for FY07-10E will be higher than the industry CAGR of 27% in Maharashtra and Mumbai circle, with a gain in market share from 12.26% to 15.65%, due to extensive micro coverage expansion and increased focus on data products. The data card business is on track with acquisition rates hovering around 13000-15000 per month. The stock is currently trading at 11.1x EV/EBIDTA on FY09E basis at a premium of 5% to Bharti and 7% discount to RCOM. We maintain our BUY rating with a price target of Rs 63, an upside of 78% from the CMP," HDFC securities' research report.

Intraday Trading Calls for 13th May

Market may open with positive but remains very volatile. A positive closing expected today in Stock Market India.

Today's Trading Calls:

BLUE STAR

RANBAXY
GMR INFRA
PRAJ INDUSTRIES
INDIABULLS
CROMPTON GREAVES

For Levels and Targets download the file by CLICK HERE.

Others: Indiabulls Realest, Dewan Housing.

Good Luck