Intraday trading Calls for 16th September

Indian Stock Market may open positive and remains good positive for the today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
NAGARJUN CONSTRUCT	Buy Above	144.75	149.35	154.00
	Sell Below	142.70	139.55	136.00
SUBEX LTD. (532348)	Buy Above	81.20	85.60	90.00
	Sell Below	79.40	75.60	71.00
REPRO INDIA	Buy Above	112.75	118.10	124.00
	Sell Below	109.50	105.10	100.00
AREVA T&D	Buy Above	316.75	322.10	328.00
	Sell Below	312.40	305.65	300.00
NATCO PHARMA	Buy Above	125.10	130.25	135.00
	Sell Below	121.70	116.55	111.00
RAJESH EXPORTS	Buy Above	66.20	69.55	73.00
	Sell Below	64.35	61.65	58.00
ROYAL ORCHID HOTEL	Buy Above	64.20	67.60	72.00
	Sell Below	62.40	59.35	57.00

GOOD LUCK

Q2 Advance Tax

Q2 ADVANCE TAX - CLEAR SIGNS OF MORE GREEN SHOOTS
By Ruma Dubey
When the Govt released the figures of tax collections for first five months of current fiscal, not too much was expected from the Q2 Advance Tax. Q1 collection, as expected was too high and a similar kind of flat mop up was expected in Q2. But clearly, things seem to have improved much more than what we all have probably construed.
The deadline for payment of this second instalment of the advance tax was September 15, 2009 and advance tax figures for Q2 have just started tricking in and a few of them have left our mouths open. Broking firm, CLSA has paid Rs.210 crore as against Rs.20.4 crore paid in Q2FY09. Clearly at that time, markets were down in the pits and now, things are looking up and hence this major improvement. The word on the street is that most of the broking firms and financial companies are expected to post a similar, robust Q2 Advance Tax.
Another big surprise came from Mahindra & Mahindra, which paid Rs.112 crore v/s a meagre Rs.17.50 crore in Q2FY09. This is again a reflection of the sector – the auto sector has bounced back from where it was a year ago and this figure of M&M is a reflection of precisely this.
The other big ‘mouth opener’ was TCS. It paid a whopping Rs.220 crore v/s Rs.53 crore in Q2FY09. This is also good news as it is pointer at improvement in the sector.
It has been a fantastic year till now for the PSU oil companies and this is further reiterated by the tax paid by BPCL at Rs.312 crore, compared to a meagre Rs.40 crore in Q2FY09.
Ambuja Cement paid Rs.150 crore v/s Rs.70 crore (YoY). The cement sector has had a robust Q1 and this better figure of Ambuja is a reflection of this good time.
Another private sector company which has done well and is obviously doing well too is Lupin - it paid Rs.49.70 crore v/s Rs.11.40 crore paid in Q2FY09.
In the banking sector, the collection has been robust to say the least - SBI paid Rs.1832 crore v/s Rs.1068 crore (YoY), Bank of India paid Rs.470 crore as against Rs.230 crore, alomsot double over last Q2; Yes Bank paid Rs.58 crore v/s Rs.33 crore, BoB paid Rs.412 crore v/s Rs.255 crore (YoY) which is a huge jump and Central Bank paid Rs.79 crore v/s Rs.53 crore. HDFC paid Rs.320 crore v/s Rs.290 crore (YoY) which is again a reflection of the realty sector which is yet to get out of the woods.
Videocon paid Rs.30 crore v/s Rs.25 crore, Bajaj Electrical paid Rs.21 crore v/s Rs.15.50 crore, showing that the consumer durable sector is yet to recover fully but surely a marginally higher tax figure indicates that green shoots have started coming up.
Figures from the other bigwigs are yet to come in but the initial data has been encouraging. It is a clear indication that things are indeed improving, slowly but surely. And it is this news which the market has also been celebrating today.
These better Q2 Advance tax numbers also indicate that we can look forward to a much better Q2 report card from India Inc and that is some good news indeed!

Source: www.premiuminvestments.in

Intraday Trading Calls for 15th September

Indian Stock Market may open flat to positive and remains flat 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
NAGARJUN CONSTRUCT	Buy Above	139.20	143.60	148.00
	Sell Below	136.70	132.75	128.00
PSL LTD.	Buy Above	171.60	177.40	182.00
	Sell Below	169.35	165.25	160.00
EXCEL INFOWAY	Buy Above	83.60	88.20	94.00
	Sell Below	81.10	77.55	74.00
AREVA T&D	Buy Above	288.75	295.20	302.00
	Sell Below	285.35	280.15	275.00
NATCO PHARMA	Buy Above	104.25	108.75	114.00
	Sell Below	102.05	97.55	92.00
ESSAR OIL	Buy Above	153.80	158.45	162.00
	Sell Below	151.35	147.15	143.00
IDFC	Buy Above	145.10	148.60	153.00
	Sell Below	143.20	140.15	136.00

Buy SEL Manufacturing Company Ltd. (532886) CMP Rs. 72/- Short to Med Term Target Rs. 120/-.

GOOD LUCK

Intraday Trading Calls for 14th September

Indian Stock Market may open Negative and remains very volatile 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
GODREJ INDUSTRIES	Buy Above	200.10	207.25	212.00
	Sell Below	197.15	192.35	186.00
PSL LTD.	Buy Above	172.60	178.20	184.00
	Sell Below	170.05	165.25	160.00
UNITED PHOSPH	Buy Above	170.65	175.50	182.00
	Sell Below	168.20	164.10	159.00
ROLTA INDIA	Buy Above	167.80	173.10	178.00
	Sell Below	165.20	161.35	156.00
MRO TEK(532376)	Buy Above	43.20	45.65	48.00
	Sell Below	41.70	39.20	37.00
TIMKEN (522113)	Buy Above	122.70	128.20	133.00
	Sell Below	120.10	115.35	110.00
LANCO IND. (513605)	Buy Above	47.10	50.20	53.00
	Sell Below	45.45	43.10	41.00

GOOD LUCK

Stock Idea: KPIT Infosystems Ltd.

Company overview—
KPIT Infosystems Ltd. was promoted by Kirtane & Pandit, an accountancy firm to add Information Technology to its suite of services. The group is one of the front-line Indian groups in the area of Information Technology, Business Consulting and Management. The company has its headquarters at Pune, and has two other India offices in Bangalore and Mumbai to house its various functions. The company was incorporated in 1989 and came out with its premium public offering (IPO) in February 1999 at Rs 90 per share, aggregating Rs 11.61 crore. KPIT has partnership agreement with CONSOR AG, a leading IT consulting and solution provider in Switzerland. CONSOR has been providing IT consulting services and solutions over the last 20 years. It provides technical consultation for project conception and design. The client list of CONSOR includes some of the biggest names in the Swiss market and will act as the front-end in the Swiss market. In May 2002, the IT subsidiary of engine major Cummins India-Cummins Infotech (CIL) has merged with KPIT Infosystems, for forming a mid-sized software developer, KPIT Cummins Infosystems.
Products & services—
KPIT Infosystems Limited provides software development, maintenance and implementation services for the banking & finance, consumer packaged goods, engineering, and telecommunications software sectors. Company’s strengths lie in Internet consulting and development, re-engineering & migration, software product development & management, business intelligence solutions, oracle applications, control automation and engineering solutions. Company has four core areas of its operations i.e. Advanced Technology solutions, Manufacturing Business IT, Diversified Financial services, BPO. Company is CMM Level 5, ISO 9001:2000 certified.
Advanced Technology solutions:
Company has expertise in product development and embedded systems at optimal costs and faster timeframe. Company offers turnkey technology solutions from pre-product design to its release and maintenance. These solutions encompass industries like Automotive Electronics, Industrial Automation, and Semiconductor Solutions. Company has presence in development of Supervisory Control and Data Acquisition systems, projects in automotive engine controls, development of high speed Video DAC for HDTV and video/graphics applications, I/O Cells Development, and open source (GNU) tool chain for a family of micro-controllers.
Manufacturing business IT:
Company has presence into development of our proprietary Business Intelligence tools, center of excellence of the Oracle Apps practice and the focused SAP practice, consulting projects in supply chain management, product lifecycle management, and architecture consulting. We have developed strengths in ERP Audits, Risk Management and Compliance consultancy services and Activity based costing.
Diversified financial services:
In the Diversified Financial Services domain we create applications through IT, support through BPO, and manage change through consulting. KPIT Cummins' has a strong lineage in the financial industry - being a descendant of KPCA, one of the country's most prominent accounting firms providing financial services to national and global banks since the past six decades. Our business consultants have extensive experience in securities services, retail banking, credit cards, fund administration, leasing and finance, insurance.
Business Process Outsourcing:
Company is involved into Knowledge Based outsourcing in Risk Management & Compliance Services, Sarbanes Oxley, SAS-70 Compliance, BS7799, Internal Controls, Audits related to Business & IT Processes, Business Intelligence & Data Analytics, Business Process Transformation Services, Skills & Rules Based, Finance & Accounting and Related Services, Transaction Management, General Accounting, Financial Reporting, Financial Analysis, Human Resource Managed Services, Compensation & Benefits, 401(K) & Retirement Services, Employee Stock Options (ESOP), Stock Options Management / Administration, Human Resourcing Activities, Human Resource Administrative Activities, Transaction Processing Services, Mortgage, Insurance. In technology based services company has presence in Security Operations Center, Network Operations Center and Technical Help Desk.

Recent developments—
KPIT Cummins has acquired substantial part of mechanical design services business of Harita TVS Technologies, a part of the TVS Group. Harita TVS offers design services under two segments viz, automotive and construction and industrial machinery.
KPIT Cummins Infosystems, product engineering partner to the automotive industry and VaST, a player in electronics virtualisation, have announced a partnership to deliver electronic virtualisation tools and specialised services to global automotive OEMs, and Tier-1 suppliers and ODMs. The partnership between VaST and KPIT focuses on methodology adoption services that speed up the deployment of advanced virtual prototyping tools and methodologies such as networked ECU Virtual-Hardware-In-the-Loop simulations. Electronic virtualisation is highly effective in reducing engineering costs while simultaneously enabling improved end-system software quality.
Valuation—
A relationship-based and vertical focused business model (Focus on two verticals: Manufacturing & Diversified Financial services) has helped the company to grow at a fast pace with top line revenue growth of 10x and increase in market capitalization of 15x over the last 5 years. Its 95 plus active global clients and strategic partnerships with some of the largest & renowned players in their respective areas are a testimony to its business model.
At CMP, stock trades at very attractive valuation of 6.42 P/E multiple of its FY2010 Estimated Earnings. We recommend investors to “Strong BUY” “KPIT Cummins” for medium to long-term investment horizon.

Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea:Vivimed Labs Ltd.

Vivimed Labs Ltd (Rs 92)
(BSE Code- 532660 NSE Code- VIVIMEDLAB)
(P/E- 3.3, Promoter's stake- 58.44%, Mkt Cap- Rs86 cr)
Vivimed Labs Ltd (VLL) is a leading manufacturer and exporter of an API, viz. Triclosan. Apart from Triclosan, it also manufactures other Specialty Active Ingredients such as Avis, Chlorophenesin, NDGA and CaGP. Vivimed caters to both domestic as well as Export markets and its major customers are Hindustan Unilever Ltd., Anchor Healthcare, Marico Industries, Unilever, Harmet International Inc., USA, Benckiser (North America) etc. Vivimed has a strong product portfolio catering to need of various segments like: Oral care (Triclosan - anti microbial agent, Calcium Glycerophosphate - dental enamel protection), Skin care (clinbazole - anti fungal agent, Vicrol - hair dye coupler) and Hair care (Avis- UV protection cream). VLL manufactures ingredients mainly for the Cosmetic industry which has been growing at an accelerated pace for the last few years. Due to this, the company is experiencing continuous increase in demand for its products
VLL is based out of Karnataka with its manufacturing plants in Bidar (Karnataka), Medak and Bonthapally (AP). The Research and Development (R&D) which is the key success factor for this company was set up to support its manufacturing. Vivimed has a state of art laboratory in Hyderabad with about 35 highly qualified professionals with experience in diverse fields of organic synthesis, analytical knowledge, microbiology & formulations, who conduct and supervise research. Triclosan (Viv-20) is the bread earner for Vivimed. It is the most widely used antibacterial, which goes into Oral care, personal hygiene and cosmetics. In July 2005, Vivimed came out with a public issue at Rs 70 per share for the expansion of Triclosan capacity. Globally Ciba Speciality Chemicals, Switzerland is a largest player in Triclosan with 75% market share while Vivimed has 12% market share. Another speciality product manufactured by VLL is Avis, which improves UV absorbing ability of Sunscreen and make them more effective. L' Oreal is a main client for Avis. It has also approved Vivimed as Global Supplier to L'Oreal- France.
For the year ended March 2009, the company had posted net sales of Rs 280 cr.. and net profit of Rs 22 cr. on consolidated basis. On a equity capital of 9.4 cr.(Promoters'stake-58.44%), the EPS stood at Rs 23.4 and the dividend declared is 15%. For the Q1 ended June 2009, VLL has posted a 65% rise in net profit to Rs 6.96 cr. on a 50% rise in net sales to Rs 78.96 cr. on consolidated basis. During the first quarter, FCCB's of USD 12.5 million were bought back and cancelled. Of the total issue, bonds worth USD 12.5 mn were bought back and Bondholders opted for conversion of balance Bonds worth USD 2.5 mn into equity shares. The Company in its Board Meeting held on August 31, 2009 considered allotment of equity shares to the Bondholder and has issued 5,63,918 equity shares of the Company, converted at Rs 185 per equity share.
Vivimed Labs is a niche player focused on manufacturing of ingredients for various segments of cosmetic products. It has show a steady growth in its revenues and earnings over the past four years and also established itself as a supplier to some globally leading cosmetic companies like L'Oreal, Revlon etc. Vivimed has a sustainable business model, which is scaleable .The demand for products are buoyant with little pressure on the pricing. In February 2008, Vivimed announced acquisition of James Robinson, a subsidiary of UK-based global chemicals major Yule Catto & Co. for about $30 million. The company has a leadership position in the Hair Dyes and Intermediate segments. The Personal Care products of James Robinson complement Vivimed's strong portfolio of active ingredients for this sector and this acquisition will be EPS accretive.
Going forward, VLL has decided to introduce new products at regular intervals. It has short-listed six active ingredients in the Sunscreen range for development, marketing & sales. It's also exploring the possibilities of offering `custom blends' for large personal care product manufacturing company. Vivimed's vision is to become a major supplier for speciality chemicals. Focus remains on personal care and cosmetics and this is a good proposition. With its R&D and high skill expertise VLL is set for decent growth. In terms of valuations, the scrip is available at 3.9 times x its FY09 earnings(Rs 23.4) and at 3.1 times FY10E earnings(Rs 29-30) and holds good potential for appreciation in the medium term. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 50%-60% over the next 6-8 months.

Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Subex Ltd.

Company overview—
Subex systems a banglore based software company was incorporated as a private limited company on Dec’94. Company commenced operations after the takeover of a partnership firm engaged in the manufacturing of telecom equipment and accessories. Company has significant portion of the revenues from telecom testing and measurement equipments and cellular infrastructure solutions. During 1999 company made a foray into telecom software services and products major growth driver, which was a major growth driver for the company.
Company provides both offshore and onsite consultancy services and also has a software product Ranger for the cellular market. Software services of the company are mainly for the high margin export markets. With increasing competition, product differentiation and subsequently pricing will become a key differentiator for these telecom companies. It is at that juncture that they would start feeling the pinch in bottom lines and would try and get every piece of revenue owed to them but is losing. This augurs well for a telecom software product company like Subex. Except Reliance, VSNL and BSNL every telecom company in India is Subex's customer. Company has a strong presence in the Asian, African, Eastern European and Middle Eastern markets.
Products & services—
Subex Systems is global telecom software products company that offering comprehensive and flexible solutions. Subex has a global presence across North America, Europe and Asia. Subex’s Ranger™ has the largest installed base worldwide for Fraud Management Systems. Subex has over 70 leading telecom companies in its customers list and they span across 42 countries in the Americas, EMEA and Asia Pacific. Company is an ISO 9001 certified company. Company has significant portion of the revenues from telecom testing and measurement equipments and cellular infrastructure solutions. Company’s differentiating factors are its customer support and product features.
Company’s business can be mainly divided into 3 categories i.e. Test & Measurement Equipment, Cellular Infrastructure Solutions and Telecom Software.
Test & Measurement Equipment:
Division provides solutions and systems for test and measurement application for major telecom and data communication technologies like Fibre Optic, Frame relay ATM, ISDN, GSM, XDSL and SDH/ PDH. Equipments are mainly used to measure performance so that they can be compared with specifications. Company’s customers in this division include Department of Telecommunications, Basic telecom Operators, PSUs, Railways, Defense, cable manufacturers etc.
Cellular Infrastructure Solutions:
Division’s services are basically used to strengthen the signals for cellular phones both indoors and outdoors. The division also offers fraud control devices for cellular operators. Thus the clients are mainly cellular operators.
Telecom Software:
Division provides telecom applications in operation support systems, revenue assurance etc. Company has a huge growth potential worldwide given the rising demand for telecom software globally. Except that, company also works as a distributor to various foreign telecom equipment manufacturers for which it receives commission.
Valuation—
The company has developed significant skill and knowledge base in the telecom segment, which will help in acquire a sizeable share of the telecom sector. The company’s telecom software services and products division will be the major growth driver in the coming years. Company has business alliances with well-known international telecom companies, which it plans to capitalize on its software services. Some of the partners include Oracle Corporation, Ericsson Cables, EXFOE-O Engineering Inc, Allgon Systems etc.
At current market price, Stock is trading at very attractive valuation of 5.42 P/E multiple of its estimated earnings of FY2010. We recommend investors to “Buy” Subex Limited” at every dips with long-term investment horizon.

Source: Internet (Valuenotes by Abhishek Jain)