Intraday Trading Calls for 16th June

Indian Stock Market may open with Gap Up and can see a smart rally today. A positive closing with good gains expected.

Today's Intraday Stock Tips/Trading Calls:

GAIL INDIA

HOTEL LEELA

JP HYDRO POWER

RPOWER

ANU'S LABORATORIES

JP ASSOCIATES

For Levels and Targets CLICK HERE.

Others: RPL, Alembic Pharma, Prithvi Info, KPIT may see very good gains.

Good Luck

Investment Idea: Bhagyanagar India, FCS Software

Bhagyanagar India (31.00) :- Including its subsidiaries, boasts of having around 175 acre of land bank valued at more than Rs 600 cr. It includes 25 acres of prime land in Gachibowli area Hyderabad , 50 acres in SEZ, Chennai, 25 acres near new Hyderabad airport etc. To ride the boom, company has aggressively forayed into real estate development, focusing mainly on housing and construction of IT Parks, SEZ etc. Recently, it has formed a SPV along with IL&FS Infrastructure for undertaking, various infrastructure and entertainment projects such as theme parks, special economic zone, industrial parks etc on a large scale basis. On the other hand, it has successfully commissioned the wind power project with an installed capacity of 9 MW in Karnataka last fiscal. At the same time its traditional copper & telecom products business is doing okay. Notably, of late company has formed a joint venture with group company for setting up of solar photo voltaic cell and module project and has even been allotted 25 acres of land in the Fab City, Hyderabad. Although promoters are shaddy, but being an operater driven scrip it has potential to give handsome return from here on.

FCS SOFTWARE SOLUTIONS LTD (Rs 96.00) (Code : 532666) FCS has been managing IT Consulting Services, E-Learning and Digital Content Management, Application Helpdesk and Infrastructure Management Services for its 118 clients since 14 years. With over 900 employees, company has development centres in Delhi, Chandigarh, Chennai and Dheradun. Its top 10 clients contribute 40% of total revenues. Average order size of 10 clients is USD 1.50 mn each. Its main clients include GE, Canon, AIG, Merck, Parker, Dominos etc. Segment wise revenue contribution is as under: Application Support (10%) E Learning (25%), Infrastrucuture (10%), IT Consulting (55%) Company has been paying 25% dividend has been growing almost 30% CAGR. FCS Scope of Work can include: 1. Outline the solution and definte the solution architecture 2. Develop prototypes for demos to users 3. Design, Build and Validate solution against requirements 4. Rolling out solution across the organisation 5. Continuous support for the solution

APPLICATION PORTFOLIO MANAGEMENT :- FCS wokrs with clients to maintain their IT Application on T&M basis or FPFT basis. FCS replicates application environment based on project needs or will use secure VPN connections to directly log in client servers, Set Centres of Excellence to leverage talent skilled in a set of specific technologies and domains and set up Lab Model for temporary deployment of resources for one time knd of work. IT Consulting aer one of the stable revenue generators for FCS which contributed 81.88 cr revenues in 06-07, with revenues of 19.73 lacs per employee and generated Net Margin of 11.39 cr

INFRASTRUCTURE MANAGEMENT SERVICES :- It includes Data Centre management, Network management, Technical support, Infrastructure consulting and Application Operations support. In 06-07, it generated revenues of 15.88 crs with revenues of 31.15 lacs per employee and NET margin of 5.07 crs. E-Learning Services :- This division builds AICC/SCORM compliant
multimedia and multi-lingual content, Learning Management Systems, Learning Content Management Systems and Assessment Engines to manage all corporate training needs: Focused on training programs for employees, partners and End users Training portals, LMS platform Consistent Training means Consistent services Company deployes ADDIE methodology to build state of art training programs that dont become obsolete. In 2006-07, this division contributed 38.39 cr worth revenues and Net margin of 6.90 crs. Revnues generation per employee was Rs 18.28 lacs Stock is trading at : 1. 4.15XFY08E EPS, 2. 3.26XFY09E EPS With established track-record of this dividend paying company, valuations deserve to be much higher. Perhaps this is the cheapest stock in mid-cap IT Segment. Company is issuing 25 lac warrants to some big investors. Share price is likely to appreciate minimum 50% in next 6 months and can even double in 12 months if markets are stable without panic situation. Investment strongly recommended.

Source: internet (Smart Investment)

Market Whispers

Natco pharma (Rs. 71.00) (Code 524 816):- USA based Mylan Corporation has acquired the marketing and distribution right of products of Natco Pharma’s Glatiramer and signed an agreement for the license of the same has resulted increase in volume by six time in the scrip and price has jacked up. The trend is expected to continue in the scrip.
PSL (Rs. 42.00) (Code 526 801):- The company has succeeded in bagging an order of Rs. 2000 crore from Gail India for itspipeline project of Vijaypur-Dadra- Bavna. The company was given order to supply carbon steel pipes. PSL’s total order book has increased to Rs. 6000 crores with
new order from Gail. The company has to complete the work as per the order of Gail during the FY 2008-09, which will help the PSL to improve its top line and bottom line and change the whole complexion of the financial performance of the company.
ABG Shipyard(Rs. 418.00) (Code 532682):- The leading company of shipping sector of the country has received order of Rs. 305 crores from Italian company Manvi Spa of instruments of anchor handling, towing, rescue and offshore supply. Order book of the company has fattened to reach to the level of Rs. 8500 crores. The stock is once again in limelight after a crash of 30 per cent during last one month.

Boch Chassis (Rs. 567.00) (Code 505185):- Meeting of board of directors was conveyed to discuss the issue of delisting of the stock of the company. Offer to the share holder is expected to be at higher price than the current marketprice may provide current to the counter in days to come.

Alembic (Rs. 52.00) (Code506235):- The pharma sector company is on the verge of selling around 50 acre of land . The company has planned to use the fund raised by selling the land for expansion project.

RPL (Rs. 179.00) (Code 532743):- Mukesh Ambani has announced commissioning of new refinery in Jamnagar with in six month at the capital expenditure of almost 50 per cent in comparison to other refineries of the world has given boost to the volumes and price of the stock.

Ranbaxy’s Impact (Rs. 566.00) (Code 500359):- Ranbaxy has penned a deal diachi has resulted in to advantageous for its other group companies in southern states. Ranbaxy has big stakes in the companies. The companies includes Fortis health care (Rs. 82), Zenetech Labs (Rs. 109), Kerbs Bio (Rs. 51) and Orchid chemicals (Rs. 248) and Jupiter Bio (Rs. 137).
Ispat Ind. (Rs. 28.00) (Code 500305):- Due to bearish trend in secondary market the stock price had crashed. But looking at the huge expansion projects of the company investors making investment at current market price are likely to earn good return on the investments.

Confidence Petro (Rs. 17.00) Code 526829):-The company is connected with the production of Gas Cylinder has good reputation all over the Asia. New policy will prove to be advantageous for the company.
Fertilizers and Chemicals (Rs. 32.00) (Code 524244):- Prediction of normal monsoon by meteorological department and move to increase subsidy for the fertilizer sector has provided momentum to the stock price of companies connected with the sector. Company has attractive valuation in comparison to the other companies of the sector may lead to swift upward revision in the stock price.
India Foils(Rs. 19.00) (Code 509684):- The Kolkatta based company’s stock price has touched the peak level of Rs. 30. A Delhi based operator is active in the scrip. The scrip price may touch level of Rs. 25 in short duration.
Crazy Software (Rs. 4.88) (Code 524 388):- The Chhatisgarh based company is shifting it’s headquarter to Tamilnadu. Considering the movement on the counters of software companies investors have a chance to earn good return on the investment.

Prajay Engineering (Rs. 138.00) (Code 531746):- A Mumbai based broker is buyer in the scrip as the scrip price has dipped by almost 65 per cent from the peak price of 52 weeks. Price rise of Rs. 20 to 25 is expected in the scrip in short term.

RNRL(Rs. 90.00) (Code 532709):-HNI are investing heavily in the Anil Ambani group company. The scrip price is likely to surpass the level of Rs. 100 in short duration.
Spice communications (Rs. 62.00) (Code 532863):- Idea Group is planning to take over stake of Modi group at a price of Rs. 78 per share. The news may follow with the offer of buying the scrip at higher price in comparison to market price.
Birla Power (Rs. 27.00) (Code 517001):- The stock has book value of Rs. 44 and company has turnover of Rs. 200 crores. The valuation of the stock is likely to attract the investors.
Deccan Gold (Rs. 35.00) (Code 512068):-A south based operator has once again become active on the counter.

Source: Internet (Smart Investment)

Investment Pick: Genus Power Infrastructure ltd.

Genus Power Infrastructure Ltd
CMP Rs.398 Buy, Upgraded Target Price of Rs.644
Genus Power Infrastructure Ltd. (Genus), has delivered robust growth in the top line as well as the bottom line for the quarter ended 31st March 2008. Some of the key highlights of the financial performance of Genus for the said period are as follows:
Net sales increased by 27.4% YoY and 83.8% QoQ to Rs.1936.7 mn in Q4FY '08.
EBIDTA increased to Rs.350.5 mn in Q4FY '08 i.e a at YoY growth of 75.9% and 112.1% QoQ growth. EBIDTA margins jumped by around 499 bps YoY to 18.1%. This was mainly due to a 913 bps reduction in the other expense although the raw materials as a percentage of sales increased to 77.8% from 70.4% during Q4FY07.
The Profit before Tax (PBT) including Other Income increased by 89.5% to Rs.294.4 mn in Q4FY '08. The PBT margins increased by 498 bps to 15.2% in this period.
The Profit after Tax (PAT) increased to Rs.255.5 mn in Q4FY'08, exhibiting a growth of 102.2% YoY.
For the full year FY'08 period, the Company showed a growth in net sales of 35.3% to Rs.4832.8 mn.The EBIDTA increased 53.7% to Rs.818.7 mn mainly due to lower other expenses, which decreased by 49.4%. Its PAT increased to Rs.516 mn, registering a growth of 85.9%. Its energy meters segment contributed around 48.3% (Rs.2430 mn) and turnkey projects segment contributed 42.1% (Rs.2120 mn) to its revenues during FY'08.
The Company has an order backlog of Rs 4170 mn, of which about 60% orders are from meters business. The Company has already participated in tenders more than worth Rs 48390 million, out of which the Company is already ´L-1´ in orders worth Rs 4500 million.
Genus has bought a 6 MW power generation plant from Genus Power Products Ltd (GPPL). Subsequently the GPPL shareholders would receive 1 fully paid-up share of GPIL for every 60 fully paid-up shares of GPPL currently held by them.

We have increased our numbers for FY09E and introduced new numbers for FY10E on back of better then expected numbers in FY08 and better visibility. At the current market price of Rs 398, the stock is available at an attractive valuation of 9.6x its FY '09E earnings of Rs 41.4 and 7.4x its FY '10E earnings of Rs.53.7. We upgrade our rating on the stock to a BUY with an increased price target of Rs.644 (12x FY '10E EPS).

Source: Internet

Stock Idea: C&C Constructions Ltd.

Multi Bagger: C&C Constructions Ltd (K.R Choksey Picks Report Dated: June 09, 2008)
C&C Constructions Ltd (C&C) is an infrastructure project development company providing engineering, procurement and construction (EPC) services for infrastructure projects in India and abroad (Afghanistan). Their project expertise is primarily in transportation engineering projects including roads, bridges flyovers and airport runways especially in inhospitable environments. We Initiate coverage on C&C with a BUY recommendation based on SOTP valuations giving a 12 months price target of Rs 276, an upside of around 46% from the current levels. Investment Rationale:Robust Order Book: C&C has a robust order book of Rs 1,668 crore (5.05x FY2007 and 3.87x TTM net sales) which has swollen by about 58.7% since FY2007. Road segment constitutes approximately 96% of the total order backlog.

Strong operating margins compared to peers: C&C enjoys operating margins in the range 18-20%, inspite of 96% of the order backlog in road segment. The high margin is attributable to operations in areas which has geographical and political constraints. Operations from Afghanistan fetch margins in the range of 22-25%. We believe C&C is well placed to enjoy higher operating margins due to expertise in executing these projects. Expertise in executing projects in inhospitable conditions:C&C have been successful in executing projects in difficult operating terrains and adverse weather conditions which helps them in commanding higher operating margins. In addition unavailability of key resources like machinery, material and personnel along with security challenges also poses execution risk for the company.

Impressive financial performance: C&C reported revenue CAGR of 38.6% from FY2005 to FY2007. On operating margin front also, it enjoyed industry highest margins of 29.7% in FY2006 and 23.4% in FY2007. The company plans to diversify its areas of operations into Urban Infra, Irrigation and Power Transmission business with approximately 30% contribution by FY2010. We believe operating margin to take marginal hit, however will continue to enjoy margins above 17% going forward. Foray into BOT space:C&C has recently won BOT project from Kurali to Kiratpur on NH-21. We believe this project to be value accretive on the basis of IRR and is expected to contribute Rs 42 to the target price.

Valuations & Financials: At the CMP of Rs 172, C&C is trading at a trailing P/E of around 8.2x and at a forward P/E of around 7.46x FY08E EPS and 5.63x FY10E EPS.

Source: Internet (PYT)

Investment Idea: GSPL

Gujarat State Petronet
Low risk, high growth
The company offers low risk bet on opportunities thrown up by almost doubling of gas supplies in India over the next two years.
Buy Gujarat State Petronet
BSE Code 532702 NSE Code GSPL
52-week High/Low Rs 114 / Rs 50
Current Price Rs 60
Inadequate gas supply has constrained growth of gas consumption in India. There is large unmet demand for gas with several existing users not getting enough gas and several potential consumers not getting any gas. As the natural gas supply in India is expected to almost double in the next couple of years, the Indian natural gas sector has become an attractive investment avanue. Since the demand is supply and infrastructure driven, there is huge potential across the gas value chain at the upstream, transmission and distribution sectors.
Low risk, high growth
The transmission segment has the lowest business risk in the gas value chain. This is due to negligible price risk and absence of competition due to natural monopoly. This makes the companies operating in this segment very attractive. One such company is Gujarat State Petronet (GSPL) which offers its transmission network in Gujarat on open access basis. It offers the best visibility among listed gas transmission utilities on volume growth based on already tied up contracts
Currently GSPL’s pipeline capacity is 40 mmscmd, but it carries less than 20 mmscmd due to non availability of gas. However, as the gas supply in India is likely to double over the next couple of years and Gujarat being one of the most gas conscious state, gas transported through GSPL will almost double over the next two years. This makes GSPL one of the best picks in the Indian gas utilities space, being most highly levered to increasing and visible domestic gas supplies.
GSPL is a gas transmission company with a network of pipelines in the western Indian state of Gujarat. It has a gas transmission network comprising over 1,100 kms of pipeline connecting Hazira, Vadodara, Ahmedabad, Kalol, Himmatnagar, Mehsana, Rajkot, and Vapi. GSPL's network connects all major supply sources in Gujarat to important consumption centres in the state and transports 18-19 mmscmd of gas.
Reliance Industries’ commencement of supply of KG Basin gas will be a major booster
Reliance Industries (RIL) has signed 15 year agreement with GSPL to transport 11mmscmd of gas in Gujarat from mid-2008. RIL is expected to start the supply of KG Basin gas during the second half of calendar year 2008 which will be initially of 40 mmscmd of gas which can be increased to 80 mmscmd at peak level (thus doubling the gas production in India from around 80 mmscmd in FY 2008 to around 160 mmscmd by FY 2010), within one year from the date of commercial production.
The transmission pipelines are set to be utilized much more efficiently with RIL commencing the production of natural gas in KG basin by second half of FY09. The idle capacity is to be brought to use with GSPL carrying 11-20-mmscmd of RIL gas in Gujarat for RIL’s captive use as well as for other consumers The existing pipeline grid itself would suffice for transmission of the additional gas from RIL.
GSPCL’s gas supply ensures GSPL’s long term growth
GSPL’s parent Gujarat State Petroleum Corporation (GSPCL) has made a large gas discovery in the KG basin. GSPCL is set to start gas production from KG basin after FY 2010, which could boost GSPL’s volumes by further 10-15 mmscmd.
There is scope for further accretion of reserves as GSPCL has several other exploration blocks in highly prospective basins. GSPC has 26 exploration blocks allotted under the NELP regime with 10-80% interest. Of its 26 NELP blocks six are in the highly prospective KG basin. Six other blocks are in the eastern offshore region in the Cauvery and Palar basin to the south of the KG basin. It also 12 other blocks in basins like Mumbai offshore, Cambay and Rajasthan, where commercial oil and gas discoveries have been made. It also has 11 pre-NELP blocks.
GSPL to gain from GSPCL’s role as gas aggregator in Gujarat
GSPCL, besides being a gas producer, is emerging as a gas aggregator in Gujarat, too. GSPL gets to transport most of the gas GSPC has marketing rights to. GSPC has a pool of 16 mmscmd of gas of which GSPL transport 15.5 mmscmd. Thus most additional imported LNG supplies are and will be routed through GSPL.
Gujarat to remain and will continue to remain the most favoured destination for gas supplies
Gujarat is the largest gas consumer and accounts for 30% of India’s gas consumption currently. This is because a large part of Indian gas production lands up in Gujarat either to be consumed or for onward transportation to northern India. Over 80% of India’s current gas production is produced in Gujarat onshore and Mumbai offshore region. A large part of Mumbai offshore lands up at Hazira in Gujarat and then is transported out of the state by the HVJ pipeline. Another reason is that both the operating LNG import terminals in India are located in Gujarat. Moreover, Gujarat is one of the most industrialized states in India and therefore has large gas demand.
Gujarat’s share in gas consumption to remain high atleast for the next 3-4 years
Most of the incremental gas production in India will come from the eastern offshore region. Gujarat will however continue to retain a share of 30% in Indian gas consumption even in FY12. There are large gas consumers like NTPC and RIL in Gujarat. This is because a significant portion of the gas produced in the eastern offshore region will get transported to Gujarat.
GSPL has 1,130 km of trunk and spur transmission network with a transportation capacity of 40-50 mmscmd. All the pipelines of GSPL are bidirectional, implying that in these pipelines can be used to transport gas in either direction. The flexibility such a network provides is likely to prove useful in future as gas flows into Gujarat from multiple sources. It also offers the best pipeline connectivity in Gujarat.
Capacity expansion to continue
GSPL is all set to expand its pipeline from 1,180 km to 2,000 km. The extension plan of another 800-900 km of pipeline will be operational in different phases by FY2010. The pipeline will connect to Pipavav port in South Gujarat and will extend to Mundra in West Gujarat. Further, the Company is developing several spur lines to connect Industrial clusters and medium size customers along the pipeline network. The Company has taken up development of spur lines in Vapi, Morbi, Mehsana and Baroda regions on priority basis. The company is likely to invest Rs 1100 crore by FY 2010 on extending its network.
Strategic stakes to add value
The Company has aquired strategic stakes in Krishna Godavari Gas Network Limited (planning to develop gas transmission & CGD (Compressed Gas Distribution) network in Andhra Pradesh), GSPC Gas Company Limited and Sabarmati Gas Limited which are developing CGD Network in the State of Gujarat. Increased availability of gas for automobiles in Andhara Pradesh as well as Gujarat will boost the business prospects of these subsidiaries/ associates, bring additional value.

Source: Internet

Markets Today

Markets Snapshot
Markets end in the red amid volatile day of trade.
Inflation for week ended May 31 at 8.75% Vs 8.24%
Sensex ends down 60.5 pts at 15189; NIfty ends down 22.2 pts at 4517
CNX Midcap Index down 0.22%, BSE Small-cap Index up 0.74%
Realty Index continues to drag; index down 2.5%; DLF down 3.5%, Unitech down 0.7%
BSE Metal Index down 2%; Sterlite down 4.1%, SAIL down 2.15%
Index losers; Tata Comm down 5.2%, Tata Power down 4.5%, Suzlon down 3.9%
BSE Healthcare Index up 1.2%; Ranbaxy up 4.2%, DRL up 3.5%
Buzzers; GHCL up 13.2%, Asian Elec up 10.5%, NFL up 20%, Sintex up 11%, Vaibhav Gems up 20%
Fertliser stocks: Chambal fert up 9.5%, Madras Fert up 9%, RCF up 5%
Losers; Indiabulls Real Estate down 5.5%, RPG Life down 8.5%, Bajaj Auto Fin down 12.4%
Total market turnover at Rs 58736 cr Vs Rs 72145 cr yesterday
F&O turnover at Rs 41003 cr Vs Rs 52334 cr yesterday
F&O Snapshot
Nifty futures continue to witness short build-up; discount widens to 35 poitnts
Large cap like SAIL, DLF, HDFC bk continue short build-up
ranbaxy witness shoryt covering coupled with soem speculative buying
Fertilisers sees fresh long build-up
Options: Nifty 4400 put adds 2.7 lakh shares, Nifty 4600 call adds 3.1 lakh shares
Star Trade:Chambal Fert up 8%; adds 65 lakh shares ( 70%)
Long Unwinding:Rnrl dn 4.7%; sheds 10.5 lakh sharesIfci dn 4.7%; sheds 10.7 lakh shares
Long Build Up:Chambal Fert up 8%; adds 65 lakh shares ( 70%)Hotel Leela up 4.1%; adds 3.9 lakh sharesOthers : Naga Fert, Ongc , JPA , DCB, Indus Ind,
Short Covering:Ranbaxy up 4.3%; sheds 7.2 lakh sharesOthers : Idfc, Punj Lloyd
Fresh Short:Sail dn 3%; adds 15.6 lakh sharesDlf dn 4.2%; adds 9.5 lakh sharesHdfc bank dn 3.8%; adds 1.9 lakh sharesSuzlon dn 4%; adds 11.6 lakh sharesOthers : Tata Comm, Gmr Infra, Sterlite Ind, SBI, Jsw Steel
Markets This Week
Sensex, Nifty down 2.5% each
Sensex recovers nearly 500 points from week's low of 14,645.3
CNX Midcap, BSE Small Cap Indices down over 1.5% each
BSE IT Index down 5.5%; TCS, Infosys & Satyam down 6% each
BSE Realty Index down 9%; DLF down 7%, Unitech down 8.5%
Index Losers: Suzlon down 12.5%, Tata Comm down 12%, ONGC, HDFC down 10%, JP Assoc down 11%
Index Gainers: Ranbaxy up 12% at Rs 567, Daiichi to buy promoter stake at Rs 737/sh
Index Gainers: BHEL up 9.5%, RPL up 7.5%, DRL up 4.5%, NALCO up 4%
Midcap Gainers: GHCL up 42%, Aurobindo Pharma up 17%, Chambal Fert up 13%
Midcap Gainers: Fortis Healthcare up 15%, Nagarjuna Fert up 10%
Source: moneycontrol.com