Stock Idea: Sintex India

Religare Research has maintained its buy rating on Sintex India with a revised target price of Rs 503 in its July 15, 2008 research report. "Sintex Industries (Sintex) has reported disappointing Q1FY09 numbers due to lower volumes in the BT Shelter business and below-expected textiles revenues. While net sales increased 108% YoY to Rs 7.1 billion, this was spurred by the acquisitions of Bright AutoPlast, Nief Plastics and Wausaukee rather than growth in core operations. Higher employee costs and other expenditure shaved 590bps off the EBITDA margin to 11%. Sintex reports installation income on prefab construction under other income, which trebled to Rs 380 million during the quarter. Increased interest and depreciation offset the positive impact of other income, causing Sintex's net profit to grow much below our expectations at 68% YoY to Rs 567 million."
"The company's monolithic construction order book totaled Rs 15 billion at the end of the quarter with an execution period of two years. Further, the acquisition of Digvijay Communication during Q1FY09 will expand Sintex's geographical reach and product offerings in the telecom infrastructure sector. We are revising our estimates downwards in view of the below-expected quarterly results, tight market conditions and higher cotton and crude oil prices, which are weighing on margins. We maintain our Buy recommendation on the stock and roll over our target price to a one-year horizon. Our revised target for the stock is Rs 503 from Rs 587 previously," says Religare's research report.

Markets Today

Market Snapshot
New 15-mths closing for Sensex, Nifty
Sensex ends down 100 pts at 12575.8; hits a low of 12514 during the day
Nifty ends down 44 pts at 3816.7; hits a low of 3790.2 during the day
CNX Midcap Index ends down 1.5%; BSE Small-Cap Index down 1.3%
Ranbaxy bounces back after management clarification; gains 15%
BSE Realty Index down 5.9%; Unitech down 11%; DLF down 8%
BSE Metals Index down 1.7%; Nalco down 6%; SAIL down 4%; Tata Steel down 3.5%; Sesa Goa down 5%
BSE Bank Index down 1.7%; Banks continue to lose ahead of inflation numbers on Thursday at 5:00 pm
SBI down 3.9%; ICICI Bank down 1.8%, HDFC Bank down 1.6%
Results Impact: S Kumars, PFC, HDFC, TTML
Midcap Losers: Guj NRE Coke down 7%, GMR Infra down 5.5%, Nag Fert down 4.8%, Parsvanth down 4.6%
Small-cap losers; Nitco Tiles down 12.8%, RSWM down 10.5%, Asian Elec down 10%
Buzzers; Usher Agro up 14.3%, BGR Energy up 13.5%, First Winner up 10.2%
NSE Advance Decline at 1:3
Total F&O turnover at Rs 45738.2 cr Vs Rs 44,123 cr a day ago
Total Market Turnover at Rs 61636.2 cr Vs Rs 59,029 cr a day ago
F&O Snapshot
Nifty discount trims; signs of short covering pushes Nifty in premium in last trade
Ranbaxy up 15 %; sheds 11.1 lakh shares, 3 rd highest turnover in F&O
Fresh shorts seen in Real Estate stocks
NSE F&O turnover at Rs 45738.3 cr Vs Rs 44122.9 cr in yesterdays trade
Nifty 3800, 3900 & 4000 call adds open intrest; premium increases
Nifty Put continues unwinding; nifty 4000 put sheds 3.7 lakh shares
Option Activity: Nifty 4000 put sheds 3.7 lakh shares Nifty 3800 call adds 6.7 lakh shares Nifty 3900 call adds 6.9 lakh shares Nifty 4000 call adds 2.1 lakh shares
Fresh Short: Unitech dn 9.2 %; adds 21.5 lakh shares Dlf dn 7.2%; adds 5.8 lakh shares RPL down 4.15%; add 18.5 lakh shares in OI Cairn India down 4%; add 10.6 lakh shares in OI
Fresh Long: Shree Renuka up 7.5%; add 14.3 lakh shares in OI Bharti up 3.4%; add 5.2 lakh shares in OI HUL up 4.5%; add 4.2 lakh shares in OI PFC up 5.8%; add 3.8 lakh shares in OI
Short Covering : Misc: ITC, Alok Text, Balrampur Chini

Source: moneycontrol.com

Intraday Trading Calls for 16th July

Indian Stock Market may see a good bounce back due to short covering. A positive trading and closing expected today.

Today's Intraday Trading Calls / Stock Tips:

SATYAM COMPUTER

YES BANK

NIIT TECH

SASKEN COMMUNICAION

ROLTA INDIA

KSK ENERGY

For Levels and Targets CLICK HERE.

Good Luck

Stock Idea: Infosys Technologies

Karvy Stock Broking has maintained its buy rating on Infosys Technologies with a target price of Rs 2250 in its July 15, 2008 research report. "Infosys for Q1FY09 reported a sequential revenue growth of 6.9% to Rs 48.54 billion, with onsite and offshore billing rates inching up by 2% and 1% respectively, in an environment, where getting billing rate increases are difficult. Over the last one quarter there is some worsening of the environment in US (particularly in BFSI and retail), but clients of Infosys has decided on stick to the budgets and there is no real threat its full year dollar revenue guidance of USD 4.97–5.05 billion, which it gave at the end of Q4."
"At the current price, the stock is trading 16xFY09E and 12xFY10E, and the return ratios are at healthy levels of close to 37%. Though the stock has fallen by more than 10%, post the results, mainly on the back that the company has not revised its dollar revenue guidance and the fear that the BFSI vertical might experience much weaker revenue growth going forward. We believe it is an ideal opportunity to accumulate as the company would be growing its earnings close to 30%, and maintain our BUY rating with a price target of Rs 2250, which would give a return of 40% over the next one year," says Karvy's research report.

Intraday Trading Calls for 15th July

Indian Stock Market may open weak as all global markets trading weak. Some recovery expected in mid-session and again Stock Market India may close flat today.

Today's Intraday Trading Calls / Stock Tips:

Buy following scrips at Lower Levels of about 2-3% down to previous close for fast recovery gains with appropriate Stop Loss.

PUNJ LLOYD (211)

SATYAM COMPUTER (409)

HCL TECH (225)

INDIABULLS REALEST (277)

ROLTA INDIA (283)

VIDEOCON INDUSTRIES (275)

RPL (167)

Good Luck

Stock Idea: Orbit Corporation

A realty company, infact it is the first in the sector to declare its first quarter performance for period ended 30th June 2008. And clearly the troubled times seem to be showing on the bottomlines of the company. If times were booming in the last quarter of FY08, it is very apparent that the going is getting tough.
On a standalone basis, when the sales of the company itself falls, on a QoQ, by a whopping 86% at Rs.25.19 crore as against Rs.183.19 crore in Q4FY08, can much be expected of the profit margins? The company has managed to reduce its operating expense but naturally, that has not helped. EBIDTA was down 88% at Rs.11.06 crore, PBT fell 93% at Rs.6.40 crore and PAT was down 94% at Rs.4.82 crore as against its life time best of Rs.88.83 crore for Q4FY08. OPM was down sharply from 52.25% to 43.89% and NPM was down from 48.45% to 19.14%.
The company had raised Rs.100.10 crore in the IPO, of which it has utilized Rs.91.28 crore. What is gratifying to note is that it had earmarked Rs.50 crore for acquiring land for the said developments and this it has managed to do. The company acquired 85% stake in Ahinsa Buildtech Pvt. Ltd. consequent to which it has become a subsidiary of the Company. Ahinsa Buildtech has entered into a Deed of Conveyance with the receiver of Debt Recovery Tribunal (DRT) for acquiring the property of Orkay Mills situated at Kurla Andheri Road, Saki Naka, Andheri East. This gives the company 275,000 sq.feet of saleable land, which it plans to develop into a 5 star Residential Serviced Apartment with office complex.
The company had issued shares at Rs.110 per share, which is still quiet realistic if one were to go by the many other IPOs that followed at unjustifiable prices. At that time, realty was the toast of the marketmen and hence any price was ok. But it is at times like these, when the markets are down that those and realty is the most butchered sector, that the real test comes. Those who have issued shares at more realistic levels would manage to keep its head above water.
Orbit had touched a high at Rs.1080 and it today ruling at levels of Rs.248, Stay invested as the bottom seems to have been tested.

Source: sptulsian.com

Stock Idea: South Indian Bank

At a time when the banking industry is being hammered down by the investors and analysts have been stating that the Indian banks would be having a rough time, the financial performance and the 1:4 bonus issue comes as a tight smack on the face of all the detractors.
The first bank to always declare its results, the bank, with 500 branches, 26 extension counters and 226 ATMs seems to be doing well. YoY, deposits have gone up from Rs 12,834 crore to Rs 15,378 crore registering a growth of 19.82%. Advances increased from Rs 8,509 crore to Rs 10,643 crore registering a growth of 25.08%. The bank earned a total income of Rs 405.89 crore during the quarter as against Rs 321.97 crore for the previous year registering a growth of 26.06%. It posted a net profit of Rs.38.62 crore in as against Rs 30.37 crore for the previous year quarter, registering a growth of 27.16%.
The Capital adequacy ratio of the bank is high at 13.93% against the regulatory requirement of 9%. During the quarter, the Book value per share has increased from Rs 107.01 to Rs 132.70.
From April 09, once the banking sector would be made open for investments by the foreign banks and industrial groups, lot of interest would get noticed in these banks which would vastly improve their valuations. At the current rate of Rs.104, South Indian Bank makes a good buy as the downside risk is minimal.

Source: sptulsian.com