Short-Med Term Delivery Picks

Tyre sector:

Apollo Tyre (47) Target 53-55+

CEAT Ltd. (136) Target 155-160+

J K Tyre (139) Target 160+

MRF Ltd. (4600) Target 5250-5500

Intraday Calls for 2nd May

Stock Market India may open with gap up but profit booking at higher levels contineous. Markets may see strong rally if inflation declines.

Today's Trading Calls:
APTECH
RENUKA SUGAR
DCB
STERLITE INDUSTRIES
IOC
MAHINDRA LIFE
For Levels and Targets download the file by CLICK HERE.

Others: Dish TV & India Glycols.
Short-Med Term Delivery Pick Buy Surya Pharma (109) For Target 150+.
Good Luck

Stock Ideas: Sesa Goa, HUL, Bharti Airtel

ICICI Securities has maintained its buy rating on Sesa Goa with a price target of Rs 6300 in its April 29, 2008 research report. "Sesa Goa’s Q4FY08 results beat expectations, with stellar 207% YoY net profit growth on the back of record quarterly iron-ore sales of 5mnte. Revenues were up 108% YoY and 140% QoQ to Rs 17.1 billion. EBITDA increased 208% YoY and 61% QoQ to Rs 12.2 billion with EBITDA margin at 71%."
"We are revising our FY08E, FY09E and FY10E earnings estimates upwards 18.7%, 52.5% and 62.8% respectively, given high earnings trajectory on the back of: i) positive volume surprise in the quarter as well as FY08 (12.44mnte) combined with volume guidance of 25-30% increase per annum, ii) robust pricing scenario via increased spot sales mix and 65% price increase in contract sales. Post achieving our earlier price target of Rs 3,989 per share, we are upgrading our price target to Rs 6300 per share based on FY10E P/E and EV/EBITDA of 8x and 3.9x respectively. Maintain BUY," says I-Sec's research report.

Angel Broking has recommended an accumulate rating on Hindustan Unilever with a target price of Rs 276 in its April 29, 2008 research report. "For 1QCY2008, Hindustan Unilever (HUL) posted a solid Topline growth of 19.1% yoy (highest quarterly growth since 2002) to Rs 3,794 crore (Rs 3,184 crore), beating our expectation of 14.7% growth to Rs 3,652 crore. Topline growth was largely led by a strong 19.4% growth (volume growth of 10.2%) in the company’s core FMCG business backed by 19.9% growth in the Soaps/Detergents segment (aided by price hikes and marketshare gains in the Laundry segment) and 23.5% growth in Personal Products segment (aided by low base, extended winter and re-launch of several brands).
"We have revised our Target Price upwards to Rs 276 (Rs 237) as we introduce CY2009E numbers and assign a P/E multiple of 25x to our CY2009E EPS of Rs11.1. We believe HUL’s accelerated sales growth momentum, revival in its Personal Products portfolio and scale up of new businesses would help it sustain premium valuations. While inflationary pressures remain a key cause of concern, we believe HUL is well placed to combat such pressures owing to its cost saving initiatives, wide product portfolio mix and ability to undertake price hikes owing to strong brands. At the CMP of Rs251, the stock is trading at 22.7x CY2009E EPS of Rs11.1 and 21.5x EV/EBITDA. We recommend an Accumulate rating on the stock, with a revised Target Price of Rs 276 (Rs 237), says Angel's research report"

IndiaInfoline has recommended a buy rating on Bharti Airtel with a target price of Rs 1123 in its April 28, 2008 research report. "The company's revenues increased by 13.1% qoq driven by 12.4% qoq subscriber growth; FY08 subscriber added up 67%. Q4 wireless margins fell by 360 bps yoy on transfer of passive infrastructure to Infratel. Q4 PAT was higher by 32.9% qoq on lower interest cost."
"We value Bharti’s core wireless business on a DCF basis with 12. 1% WACC and terminal growth of 3% for a price of Rs 943. With Infratel and Indus combine likely to add about 35000 towers in FY09 and assured tenancy on Indus, the tower JV, we put the value of tower arm at USD 8.7 billion, or Rs 180 per share of Bharti. At our target price of Rs 1123, Bharti trades at a P/E of 18.3x and EV/EBIDTA of 8.3x FY10E earnings. As network coverage reaches a majority of population, mobile capex would gradually decline which implies company would have significant free cash flows going forward (estimated USD 3.1 billion by FY10) that could be used for inorganic growth or to bid aggressively in 3G auctions. Recommend BUY," says IndiaInfoline's research report.

Stock Idea: CIPLA

The largest pharmaceutical company in the domestic market, with a 5.42% market share, ahead of Ranbaxy and GSK, Cipla has posted encouraging financial results for the year ended 31st March 2008.

The net sales of the company increased 18% at Rs.4,226.81 crore. Interest outgo increased from Rs.6.97 crore in FY07 to Rs.11.59 crore in FY08. PBT was up 4% at Rs.830.66 crore and PAT was up 6% at Rs.700.48 crore. On an equity of Rs.155.46 crore, the EPS is at Rs.9.01.

Employee cost increased by a whopping Rs.254.31 crore due to overall increase in manpower, salary revisions and change in Bonus Act. Operating margin was down at 23.06% and NPM was also down at 16.57%.
It had a whopping ‘other expenditure’ of Rs.1,041.23 crore and this was mainly on account of sales promotion/advertisement campaign and processing charges. The hi-profile advertising campaign on Cipla’s I-pill, “the morning after pill”, accounted for a large part of this expense.
Regarding the SEZ in Goa where Cipla was to set up its plans, on which the company had already invested Rs.200 crore, the project eventually got scrapped due to a petition filed by Meditab Specialities Pvt Ltd, developer of the SEZ. The case is still being pursued in the courts and it would require only a crystal ball to see and tell us what the future holds regarding the SEZ.

What does not require a crystal ball is that the company, for the current fiscal, has projected a growth between 12 -15%.

There is no doubt that Cipla is one of the bluest of the blue-blooded pharma companies listed on the Indian bourses today. There have some concerns regarding the various demand notices it has been receiving from the Supreme Court though the legal advisors to the company continue to maintain the opinion that the demand notices of the government are not tenable and sustainable.

Currently quoted at Rs.217, Cipla is a great pharma company. Hold on.

Intraday Calls for 30th April

Stock Markets India may open flat to positive but some profit booking can be seen at higher levels. A nagetive closing expected today.

Today's Intraday Pick:

SATYAM COMPUTER
REC
ADLABS FILMS
AKRUTI CITY
PNB
SAIL
For Levels and Targets download the file by CLICK HERE.

Short Term Delivery Buy RAYMOND LTD. (280) Target 325+.

Good Luck

Intraday Calls for 29th April

Indian Stock Markets remains positive for the day today but with very high volatility as RBI will announce monetary policy today.

Today's Intraday Picks:

GUJARAT NRE COKE
INDIA INFOLINE
FUTURE CAPITAL (FCH)
CIPLA
MUNDRA PORT
BAJAJ HIND

For Levels and Targets download the file by CLICK HERE.
Others: RNRL, CEAT.
Short Term Delivery Buy CEAT (133) Target 160+.
Good Luck

Intraday Calls for 28th April

A flat to positive opening and then some profit booking expected in Stock Market India today..

Today's Intraday Picks:
HCC
RNRL
India Cement
REL
HDIL
IBREALEST
For Levels and Targets Download the file by CLICK HERE.

Good Luck