Stock Ideas: Mindtree Ltd., Polaris

MindTree Ltd, an IT and R&D services company, announced its consolidated results for the fourth quarter ending March 31, 2008 and FY08.
For Q4FY08, the company’s total income grew by 37.3% YoY and 14.6% QoQ to Rs.217.80 crore. PAT rose 41.5% YoY and 66.9% QoQ to Rs.34.70 crore. IT services constituted 77.8 per cent of total income and the remaining came from R&D services. Revenue from India increased to 8.9% of total revenue, compared with 4.7% in Q4FY07 while the revenue from USA declined marginally to 62.4% from 64.7%.
For FY08, on a consolidated basis, total income grew by 28.4% over the previous year to Rs.767.78 crore. PAT increased by 14.7% over the previous year to Rs.103.28 crore. The EPS grew to Rs 27.45 against the guidance of Rs 24.50.
102 new customers were added during the year, bringing the current active customer base to 206, including 41 Fortune Global 500 companies. Its employee strength was increased to 5,640 (as on March 31, 2008), a net addition of 1,478 people during the FY. Of this, 934 were recruited from campuses across the country. It also commenced operations from its own SEZ development center in Chennai and the SEZ facility in Bangalore.
For FY09, the company has given a robust guidance. It is expected to earn $228 million to $238 million in software revenue, indicating a growth of 24-29% as compared to that of FY2007-'08. Net profit is expected to be $31.7 million to $33.1 million, representing a growth of 23-29%. EPS is expected to be in the range of Rs 32.7-34.1, a growth of 19-24%. And when the company has issued this guidance, it was made on the basis of Rs 39.40 per US dollar. Since then the rupee has depreciated substantially and this would translate into profits surpassing the given guidance.
Currently at Rs.427, stay invested and buy for long term if it dips below Rs.400-395.

Polaris : For the year ended 31 March 2008, the total income was Rs 1,117.41 crore. Revenues from the sale of the Intellect range of banking products comprised 19.6% of total revenues, with 12 installations in areas like wealth management, credit cards and core banking solutions.

Operating profit (EBITDA) was Rs 136.30 crore and profit after tax (PAT) was Rs 73.21 crore. The company recorded 22% growth in total income in dollar terms. This is quite good considering that the rupee had appreciated during this period. The company posted a net profit of Rs.73.21 crore, and EPS for the year was at Rs.7.42 per share.
For the quarter ended 31 March 2008, total income was Rs 290.06 crore. Operating profit (EBITDA) was Rs 36.21 crore and profit after tax (PAT) was Rs 21.45 crore. The company billed the orders in Q4FY08 at Rs 39.83 a dollar, Rs 4.92 less than that the billing rate in the same quarter in the previous year. It has hedged the revenues for the FY09 at an average rate of Rs 40.07 against the dollar. The dollar is currently hovering in the range of Rs.42.60/42.80. The company has given a guidance of 20% CAGR for the current year.
Polaris bagged 14 new deals in the quarter including a master services agreement with a Fortune 10 bank in North America. It also increased its utilisation rate by 200 basis points to 76.55% on a q-o-q basis.
The board considered a proposal of buy-back of its equity shares and had discussions on this subject. In the course of the discussions, members drew attention to the real estate investments made by the company and suggested that best options to maximise shareholder value from these investments be explored. Accordingly the board decided to defer its decision on the buy-back of equity shares and appointed a committee to give recommendations to enable the board to take a decision at its next meeting.
Currently quoted at Rs.78, best to stay invested, what with the dollar improving against the rupee.

Source: sptulsian.com

Intraday Trading Calls for 27th June

Indian Stock Market will open gap down of about 350-450 points for Sensex and 100-150 points for Nifty. In Mid-session some recovery expected but remains nagetive with high volatility.

Today's Intraday Stock Tips/Trading Call:

Buy following stocks at decline to yesterday's close With Stop Loss of 1.5% :

CAIRN INDIA (271) around 265

HIND OIL EXPLORATION (131) around 128

SHIV VANI OIL (526) around 515-520

CIPLA (216) around 212

GUJARAT ALKALI (175) around 170-172

RPL (173) around 167

Good Luck

Stock Idea: Idea Cellular

Angel Broking has maintained its buy rating on Idea Cellular in its June 25, 2008 research report. "We view the deal with Spice favourably and even though it does seem as though the price that Idea is paying for Spice is a bit steep, it should be looked at in light of the benefits that the deal will give Idea over a longer-term time frame. Typically, such acquisitions are always made with a time-frame of at least a few years in mind, given the time taken for the synergies to be realised, cost savings, qualitative benefits to play out and EPS accretion."
"Undoubtedly, in the short-term, Idea's equity will see a 23% dilution, leading to lower EPS and its margins will also witness some pressure due to the lower profitability of Spice, but this can be viewed as 'newer circles' (Punjab and Karnataka) that are already profitable and going ahead, the situation can be improved with better execution skills and operating leverage. We are working on our projections for Idea to factor in the effect after the merger with Spice. We view the deal as a long-term positive, even though a short-term negative impact cannot be ruled out. We maintain a Buy on the stock and our Target Price is under review," says Angel's research report.

Stock Idea: Spice Jet

Karvy Stock Broking has maintained its buy rating on SpiceJet with a revised target price of Rs 50 in its June 26, 2008 research report. "We expect SpiceJet to report revenues of Rs 4352 million for the quarter as against Rs 4085 million reported during 3QY08. Revenues would increase on account of increase in the number of departures. We expect the company to report net loss of Rs 805 million as against net profit of Rs 93 million reported during 3QFY08."
"For FY09E we expect the company to report net loss of Rs 1568 million, which is 7.8% higher then our previous loss estimate of Rs 1455 million. On account of the above mentioned reasons, we are downgrading our price target by 16.7% from Rs 60 to Rs 50. During the recent past the stock has fallen sharply and therefore even though we are downgrading the target price the stock still remains a BUY," says Karvy's research report.

Markets Snapshot
Markets end near days high on tripple witching day
Strenghth seen in Nifty, Sensex; Midcap Index end in the red
Market held on back of Reliance Ind
Sensex ends up 201.7 pts at 14422; Nifty ends up 63.2 pts at 4316
CNX Midcap Index ends down 0.62%; BSE Smallcap Index up 1%
BSE Oil & Gas Index up 2.8%; RIL up 4.85%, RPL up 2.2%
BSE IT Index up 2%; Wipro up 6.3%, Satyam up 3%, Infy up 2.2%
Index Gainers; Tata Comm up 9.3%, Ambuja Cem up 7%, Power Grid up 5.7%, Cipla up 4.2%, HDFC up 3.2%'
Index Losers; Hindalco, R Comm, Maruti down nearly 2.5%, Ranbaxy down 2.1%
NSE Advance Decline at 7:5
Total market turnover at Rs 1 lakh cr Vs Rs 98568 cr on Friday
F&O turnover at Rs 79103 cr Vs Rs 81000 cr on Tuesday
Small-cap Buzzers
Ray Ban - Ray Ban India may delist, receives proposal from minority shareholders. At present, Ray Ban Indian Holdings Inc.holds 70.54% of the fully paid-up capital of the Company
Atlas Copco Stock down 10%Defers buy back decision
Kaveri TelecomStock down 20%Q4 Net profit at Rs 3.1 cr Vs Rs 6.1 (QoQ)Q4 Net Sales at Rs 38.6 cr Vs Rs 43 cr
LG BrosRenold to acquire Industrial Chain Biz of LG Balakrishnan For 5.7 m Pounds
Rane Engines: recent re-listingRe-listing price at Rs 275 on June 24
Madras FertSubmits Financial Restructuring package to govt
SpiceMarket believes that Spice group will pump more money in Spice Mobile
F&O Snapshot
NIfty July futures end at 65.85 pts discount; add 1 cr shares in OI Nifty Rollover at 72% Vs 66% in May series
Marketwide rollover at 80% Vs 82% in May series
Aggressive short rollover seen in Nifty futures; cost of rollover expanded in the last half an hour
Low rollover seen in stock futures as some investors not ready to pay rollover cost to next series
Fertilizers stock sees fresh long build-ups after new policy announcement
Momentum Stocks Ispat down 2.3%; add 1.5 cr shares in July seriesIFCI down 4.3%; add 1.38 cr shares in July seriesTTML down 3%; add 1.2 cr shares in July seriesRNRL down 3.4%; add 88 lakh shares in July series
Options : Nifty July 4300 call adds 25.5 lakh shares Nifty July 4400 call adds 22.5 lakh shares Nifty July 4000 put adds 25.3 lakh shares Nifty July 4100 put adds 24.5 lakh shares
Rollover Analysis-Cement, Metal & Banking stocks continue to witness strong rollovers -Auto and Oil & Gas have seen a good spurt in rollover -Rollovers in Chemical and Pharma remain weak-Lowest rollover seen in IVR Prime (55%), Crompton Greaves (55%), Matrix (57%), Divi's (59%), United Phosphorus (60%)-Highest rollover seen in Ultratcech (95%), Syndicate Bank (90%), OBC (89%), Sobha (84%), Hindalco, Tata Comm (82%), L&T, SAIL (80%)

Source: moneycontrol.com

Intraday Trading Calls for 26th June

Indian Stock Market may open with gap up but remains very volatile as Expiry day today. A positive closing expected for the Stock Market India.

Today's Intraday Stock Tips/Trading Calls:

HCC
MERCATOR LINES
CENTURY TEXTILE
CIPLA
ASIAN ELECTRONICS
INDIABULLS REALEST

For Level and Targets CLICK HERE.

Today's Watch List: SATYAM COMPUTER, VOLTAS, PSTL & CAIRN INDIA.

Good Luck

Markets Today

Markets Snapshot
Markets end at day's high led by short covering
Sensex ends up 113.5 pts at 14220; recovers nearly 500 pts from day's low
Nifty ends up 61.5 pts at 4,252.6; recovers nearly 160 pts from day's low
Nifty slips below 4,100 during the opening trade
CNX Midcap Index ends up 0.8%, BSE Small-cap Index up 0.7%
BSE Metal, Oil & Gas Indices up nearly 3%, BSE Realty Index up 2.15%
Deal of the day: Idea to acquire 40.8% stake in Spice Comm at Rs 77.3/sh
Telecom Buzzers; Spice Comm up 33%, R Comm up 7.3%, Bharti up 3.9%, Tata Comm up 4.1%
Realty Buzzers; Unitech up 7.9%, DLF up 4.3%
Index Gainers; Tata Steel up 4.4%, Reliance Infra up 4.1%, RIL up 3.5%, TCS up 3.8%
Stocks under pressure; Indiabulls Real down 7.4%, Panacea Biotec down 7.5%, OCL India down 8%
NSE Advance Decline at 7:5
Total F&O turnover at Rs 81,000 cr; highest since Jan 21, 2008
Total market turnover at Rs 98568 cr Vs Rs 87406 cr cr on Tuesday
F&O turnover at Rs 81000 cr Vs Rs 70250 cr on Tuesday
Buzzers-LG Bros up 20%; Renold to acquire Industrial Chain Biz Of~LG Balakrishnan For 5.7 m Pounds-Niraj Cem up 20%; Recent listing-GHCL up 10%; Dow Chem to increase prices by another 25% in July-Spice up 17.2%; market believes that Spice group will pump more money in Spice Mobile -Sasken Comm, HOEC, BOI, Punj Lloyd, Shree Renuka, Rel Cap
F&O Snapshot
Nifty rollover at 53%, Market wide at 53%
Short covering seen in the Nifty futures
Nifty June at 8 pts discount Vs 19 pts disc in the morning
July futures at 42 pts disc Vs 50.7 pts disc in the morning
Cement and construction continued to witness strong rollovers
Options: Nifty 4200 July call adds 12.9 lakh shares Nifty 4300 July call adds 10.3 lakh shares Nifty 4000 July put adds 6.8 lakh shares
Star Trade: Sasken up 14%; adds 2.4 lakh shares in July
Fresh Longs: Hind Oil up 9%; adds 12 lakh shares in July Century Text up 9.3%; adds 5.5 lakh shares in July Bombay Deying up 8.4%; adds 2.1 lakh shares in July Essar Oil up 4.3%; adds 8.6 lakh shares in July Reliance Ind up 3.5%; adds 16.7 lakhs shares in July Tata Steel up 3.8%; adds 21.9 lakh shares in JulyRPL up 4.5%; adds 1.1 cr shares in July SAIL up 3.2%; adds 55 lakh shares in July
Short Covering: Bank of India up 8.5%; sheds 1.7 lakh shares in July
Fresh Short : Oriental Bank dn 6%; adds 3.3 lakh shares in JulyYes Bank dn 4.5%; adds 6.6 lakh shares in July

Source: moneycontrol.com