Stock Idea: Tata Power

For the second quarter ended 30th September 2008, revenues of India’s largest private sector power company - Tata Power rose by 45.04 % to Rs.1958.88 crores on a YoY. And this was mainly on account of the rise in fuel price. The revenues from license area were up by 42.18% to Rs.1666.38 crore. PAT for the quarter stood at Rs. 261.93Crores as against Rs. 257.43 Crores in the corresponding period, which is more or less a flat growth and this was also on account of a change in the accounting method that the company undertook in the fiscal.

Unlike majority of the companies which have posted forex losses, Tata Power managed to show a forex gain of Rs.76.60 crore as compared to Rs. 8.96 Crores in the corresponding period last year. The gain on sale of Long term Investments was Rs.0.17 crores as compared to Rs.85.13 crores in the corresponding quarter last year.

In this fiscal, the company struck a partnership with the Royal Government of Bhutan (RGoB) to develop the 114 MW Hydro Project. As part of this strategic partnership, Tata Power Trading has negotiated to purchase all the power generated from the project and will off-take power from the project for a period of 25 years.
It also acquired a 10% stake in Geodynamics, Australia to strengthens its renewable energy portfolio. And though today not much credence is given to rating agencies, it was gratifying to note that Moody’s revised outlook to stable from negative.

The Ultra Mega Power Project (UMPP) at Mundra, Gujarat is progressing on schedule. Civil work at site is progressing fast and erection of the boiler structure has commenced. The first unit will be commissioned by September 2011. The 50 MW Khandke Wind Farm project will be commissioned in third quarter. Its first unit of the 120 MW power project at Haldia was commissioned in August 2008. The synchronization of Unit 2 of 2 x 45 MW Phase of Haldia Project with the grid was completed during the quarter. The third unit of 30 MW is progressing well and will be commissioned this financial year.

Power stocks are the ones to back in these troubled times as these are the project which would neither get postponed nor shelved as India remains power starved. And amongst the power stocks, Tata Power remains strong.

Source: sptulsian.com

Intraday Trading Calls for 11th December

Indian Stock Market may open Positive with gap up but some profit booking expected at higher levels.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
DLF	Buy Above	265.70	271.15	278.00
	Sell Below	260.15	255.10	250.00
RCOM	Buy Above	230.70	235.15	240.00
	Sell Below	226.40	221.50	215.00
NITIN FIRE	Buy Above	140.80	145.20	150.00
	Sell Below	137.20	134.15	130.00
HDIL	Buy Above	102.60	105.75	110.00
	Sell Below	99.80	96.20	92.00
BANK OF BARODA	Buy Above	251.75	256.40	262.00
	Sell Below	247.40	243.35	238.00
RENUKA SUGAR	Buy Above	54.70	57.35	60.00
	Sell Below	51.80	49.20	46.00
ALKALI	Buy Above	156.60	162.25	168.00
	Sell Below	151.70	146.15	140.00

OTHERS: MERCATOR LINES (27.50)
GOOD LUCK

Intraday Trading Calls for 10th December

Indian Stock Market may open Positive with gap up and remains Positive 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
ABAN OFFSHORE	Buy Above	650.20	662.15	675.00
	Sell Below	638.40	628.20	615.00
RCOM	Buy Above	209.70	215.40	222.00
	Sell Below	204.80	200.10	195.00
NALCO	Buy Above	186.20	191.25	198.00
	Sell Below	181.70	177.20	172.00
HDIL	Buy Above	90.70	94.35	98.00
	Sell Below	87.55	84.15	80.00
ROLTA INDIA	Buy Above	135.60	139.40	145.00
	Sell Below	132.35	128.40	124.00
NEYVELI LIGNITE	Buy Above	56.70	59.20	62.00
	Sell Below	53.60	51.15	48.00
LANCO INFRA	Buy Above	125.40	129.15	134.00
	Sell Below	121.40	118.20	114.00

Short to Med. Term Delivery BUY:

Mercator Lines (526235) CMP Rs. 23/- Target Rs. 35+.

GOOD LUCK

Intraday Trading Calls for 08th December

Indian Stock Market may open Positive with gap up and remains Positive 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
LNT	Buy Above	734.60	745.45	760.00
	Sell Below	723.70	715.20	705.00
DLF	Buy Above	205.60	212.65	220.00
	Sell Below	201.40	196.20	190.00
INIDABULLS REALEST	Buy Above	105.10	110.25	115.00
	Sell Below	101.70	98.20	95.00
UNITECH	Buy Above	31.65	34.30	38.00
	Sell Below	29.40	27.20	24.00
MPHASIS BFL	Buy Above	164.60	169.10	175.00
	Sell Below	160.40	156.40	152.00
GMR INFRA	Buy Above	59.25	62.10	65.00
	Sell Below	57.15	55.05	52.00
IRB INFRA	Buy Above	89.40	93.20	98.00
	Sell Below	86.20	83.15	80.00

Short to Med. Term Delivery BUY:

Mercator Lines (526235) CMP Rs. 23/- Target Rs. 35+.

GOOD LUCK

Intraday Trading Calls for 05th December

Indian Stock Market may open Positive with gap up and remains Positive for the day today. Good news expected next week that Govt. may cut fuel prices, So a good rally expected in coming weeks.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
LNT	Buy Above	752.70	762.30	775.00
	Sell Below	743.40	735.25	725.00
BANK OF BARODA	Buy Above	254.60	260.20	268.00
	Sell Below	249.70	245.35	240.00
NTPC	Buy Above	165.75	169.20	173.00
	Sell Below	163.40	160.50	156.00
WELSPUN GUJARAT	Buy Above	89.20	92.45	96.00
	Sell Below	86.70	84.20	81.00
ROLTA INDIA	Buy Above	154.80	159.35	165.00
	Sell Below	151.40	148.20	144.00
ANSAL INFRA	Buy Above	27.50	29.70	32.00
	Sell Below	25.50	24.10	22.00
SUN TV	Buy Above	173.80	178.20	184.00
	Sell Below	170.20	166.40	160.00

Short to Med. Term Delivery BUY:

Adhunik Metaliks CMP Rs. 24/- Target Rs. 45+.

ATLANTA LTD. CMP Rs. 60/- Target Rs. 100.

GOOD LUCK

Great Expectations

All eyes are on Saturday. There are huge expectations of major fiscal measures to come in and this in turn is expected to give a major boost to the economy. But then, there are expectations. In reality, though it is good that the Govt is working towards making the Indian economy resilient, and is trying to infuse liquidity back into the system, the fact of the matter is that at this point of time, this infusion would simply not be enough. With Europe in recession and world over news of recession and slowdown coming in, there is no way in which India could emerge unscathed with just a small economic booster. At the same time, what is to be appreciated is that, yes, there is some action being taken – something is better than nothing. But remember, this liquidity would just not be enough.

 
 

There are major discussions and debates about what to expect on Saturday. And we give you a gist of what fiscal measures to expect, based on all these discussions and debates.

 
 

         CRR is not expected to be cut. The reverse repo rate which is at 6% could be reduced to 5% and the repo rates from 7.5% to 6%. Infact the prices of Government Securities (G-Sec) shot up by around Rs.2 on Wednesday on expectations that the RBI would soon announce "steep cuts" in its signal rates.

 
 

• External commercial borrowings (ECB) norms could be eased further.
  

 
 

• There is no doubt that interest rates, the PLR would come down. Expectation is that FD rates, which currently rules at 10.5% (11% for senior citizen) on the maximum slab, should be reduced to around 9%, bringing about a parity and making it easier for the banks.
  

 
 

• Falling exports have also become a major cause for concern. With buying from USA and Europe, the biggest markets, coming down, exports would need something more. Major export rebates, especially for sectors like textiles, leather, handicrafts.
  

 
 

• Import duty is also expected to be reduced and rationalised. The most beleaguered is the auto sector, which is now threatening to come down to a grinding halt. Major reliefs for auto and the metal sector – especially steel is on the anvil.
  

 
 

• Major announcements are expected in the housing sector. The Govt is expected to give boost to mass housing, making it easier for the common man to buy a house, which continues to remain out of his reach, even in this falling market. Refinance windows of over Rs.1,000 crore each is being talked about through National Housing Bank (NHB) and Small Industries Development Bank (SIDB).
  

 
 

• There is huge expectation that the Govt will raise the full tax deduction limit from the current maximum of Rs 1.5 lakh annual interest payment on housing loan for self-occupied property to Rs.2.50 lakhs. Similarly, also raise the limit of Rs.1 lakh annual housing loan principal repayment to Rs.2 lakhs.
  

 
 

• Another major revolutionary thought doing the rounds is that the Govt should give a SLR status to the Govt bonds. This alone has the ability to inject around Rs.1,50,000 crores into the system.
  

 
 

• There is also talk about raising liquidity with the NBFCs, which along with the banks, can really help India tide over, to some extent, the current liquidity crunch. NBFCs have the money, like the banks but no will to lend. And it is this "will" which the Govt has to change.
  

 
 

This basket of fiscal measures would go a long way in improving the sentiments but whether it would be able to inject enough liquidity and help tide over the slowdown needs to be seen.

 

By Ruma Dubey (Source: sptulsian.com

Stock Idea: Titan Industries

The watch company from the stables of Tata, which has changed the way in which we look at watches now – from being just a device to tell time to a fashion accessory, the company seems to be having a good time even in these bad times.

For the second quarter ended 30^th September 2008, net sales of the company rose 50% at Rs.1088.76 crore. Despite a 49% rise in operating expense, 58% rise in interest outgo, the company has managed to keep its bottomlines intact. It ended the second quarter with a 88% jump in PAT at Rs.87.14 crore.

The margins also indicate the same thing – at the OPM level the increase is flat – from 11.04% in Q2FY08 to 11.69% in Q2FY09. But the rise in NPM was from 6.39% to 8%.

Watch sales grew by 18.8%, jewellery income grew by 71.4% and its other business grew by 93.7%, all on a YoY basis. The company's network has expanded to 243 World of Titan and 12 Sonata watch showrooms, 114 Tanishq boutiques, 28 Gold plus stores and 34 Titan Eye+ outlets, a total of 431 exclusive stores making it one of the largest specialty retailers in India.

The stock price is holding strong at Rs.860 levels after having touched new low at Rs.710. Stay invested as the company is expected to grow by around 35% at the topline and around 40% at the bottomline.

Source: sptulsian.com