Today's Intraday Stock Tips/Trading Calls:
CAIRN INDIA
HIND OIL EXPLORATION
RPL
STERLITE INDUSTRIES
SATYAM COMPUTER
JP ASSOCIATES
For Levels and Targets CLICK HERE.
Today's Watch List: NALCO, Mercator Lines, Neyveli Lignite.
Good Luck
Tuesday, July 1, 2008
Monday, June 30, 2008
Stock Idea: Tata Chemicals
Tata Chemicals, the Tata Group promoted inorganic chemical and fertiliser major, has posted exuberant results for the year ended 31st March 2008.
On a consolidated basis, though its net sales improved only marginally by 3.67% at Rs.6023.14 crore, the over 4 times rise in other income helped give a fantastic boost to the bottomlines. Other income for the year was at Rs.566.74 crore of which Rs.487.47 crore came in via profit on sale of investment.
The company’s soda ash business performed very well despite floods at Mithapur and operational difficulties at Magadi. Its urea operations performed strongly with production for the year under review at a record high. Erratic availability of phosphoric acid however impacted phosphatic fertiliser operations. Revenues for FY08 from the fertiliser business stood at Rs 2,506 crore. The plants at Babrala recorded its highest urea production this year, despite natural gas supply interruptions
The operating expense of the company for FY08 was at Rs.5048 crore, of this Rs.2060.07 crore was due to raw material costs and Rs.938.73 crore was due to power and fuel costs.
Consequently EBIDTA was up 46% at Rs.1618.58 crore. The company also made an exceptional gain of Rs.76.70 crore on exchange rates and this pushed up the PBT by 57% at Rs.1175.87 crore. The company’s tax outgo was marginally down and this further helped the Pat, which was up by a whopping 90% at Rs.964.40 crore. On an equity of Rs.230.98 crore, it posted an EPS of Rs.43.51.
Tata Chemicals, the second largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, sold over 680,000 tonnes of soda ash during the financial year. Higher input costs, especially those of coal, coke and limestone impacted production. Though at the same time, price increases of soda ash on the back of strong demand, helped mitigate these threats.
Work on debottlenecking of the urea plant at Babrala is progressing on schedule and is expected to be completed by December 2008. It has started the integration process of the acquired US based soda ash business of General Chemical Industrial Products Inc.in March for $ 1,005 million, from Harbinger Capital Partners. Civil construction at site for the ethanol project at Nanded has commenced and is expected to be commissioned the plant by the end of this year. It has also acquired land in Madurai for setting up a bio diesel pilot plant.
Like all the old generation Tata companies, even here, the promoters stake is very low at 29.15%. Institutions hold 40.91%. Interestingly, Hindustan Unilever holds a 2.36% stake in the company.
A month ago, the stock was quoted at Rs.410, closer to its 52-week high of Rs.440 and today it is quoted at Rs.291, which is closer to its 52-week low of Rs.231. Stay invested and at further decline you can consider long term investment.
On a consolidated basis, though its net sales improved only marginally by 3.67% at Rs.6023.14 crore, the over 4 times rise in other income helped give a fantastic boost to the bottomlines. Other income for the year was at Rs.566.74 crore of which Rs.487.47 crore came in via profit on sale of investment.
The company’s soda ash business performed very well despite floods at Mithapur and operational difficulties at Magadi. Its urea operations performed strongly with production for the year under review at a record high. Erratic availability of phosphoric acid however impacted phosphatic fertiliser operations. Revenues for FY08 from the fertiliser business stood at Rs 2,506 crore. The plants at Babrala recorded its highest urea production this year, despite natural gas supply interruptions
The operating expense of the company for FY08 was at Rs.5048 crore, of this Rs.2060.07 crore was due to raw material costs and Rs.938.73 crore was due to power and fuel costs.
Consequently EBIDTA was up 46% at Rs.1618.58 crore. The company also made an exceptional gain of Rs.76.70 crore on exchange rates and this pushed up the PBT by 57% at Rs.1175.87 crore. The company’s tax outgo was marginally down and this further helped the Pat, which was up by a whopping 90% at Rs.964.40 crore. On an equity of Rs.230.98 crore, it posted an EPS of Rs.43.51.
Tata Chemicals, the second largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, sold over 680,000 tonnes of soda ash during the financial year. Higher input costs, especially those of coal, coke and limestone impacted production. Though at the same time, price increases of soda ash on the back of strong demand, helped mitigate these threats.
Work on debottlenecking of the urea plant at Babrala is progressing on schedule and is expected to be completed by December 2008. It has started the integration process of the acquired US based soda ash business of General Chemical Industrial Products Inc.in March for $ 1,005 million, from Harbinger Capital Partners. Civil construction at site for the ethanol project at Nanded has commenced and is expected to be commissioned the plant by the end of this year. It has also acquired land in Madurai for setting up a bio diesel pilot plant.
Like all the old generation Tata companies, even here, the promoters stake is very low at 29.15%. Institutions hold 40.91%. Interestingly, Hindustan Unilever holds a 2.36% stake in the company.
A month ago, the stock was quoted at Rs.410, closer to its 52-week high of Rs.440 and today it is quoted at Rs.291, which is closer to its 52-week low of Rs.231. Stay invested and at further decline you can consider long term investment.
Source: Sptulsian.com
Intraday Trading Calls for 30th June
Indian Stock Market is likely to start recovery from today. A positive trading expected but with volatility.
Today's Intraday Stock Tips/Trading Calls:
CAIRN INDIA
RPL
HIND OIL EXPLORATION
CIPLA
SATYAM COMPUTER
PUNJ LLOYD
For Levels and Targets CLICK HERE.
Today's Watch List: PSTL, VOLTAS, Mercator Lines.
Good Luck
Today's Intraday Stock Tips/Trading Calls:
CAIRN INDIA
RPL
HIND OIL EXPLORATION
CIPLA
SATYAM COMPUTER
PUNJ LLOYD
For Levels and Targets CLICK HERE.
Today's Watch List: PSTL, VOLTAS, Mercator Lines.
Good Luck
Saturday, June 28, 2008
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
Friday, June 27, 2008
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
Thursday, June 26, 2008
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.
"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.
"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.
Subscribe to:
Posts (Atom)
