Best Absolute Buys: ONGC, ICICI Bank, HDFC, Sterlite, REL, GAIL, HZL, Grasim,
Maruti, PNB, HDIL, Sun TV, BEL, Punj, Union Bank
Wednesday, February 27, 2008
Tuesday, February 26, 2008
Long term buy calls for BSE & NSE 27/02/2008
Thermax tgt 950
ENIL tgt 650
Provogue tgt 1500
Grasim Ind tgt 4025
Welspun Guj tgt 600
Aventis Pharma tgt 1198
ENIL tgt 650
Provogue tgt 1500
Grasim Ind tgt 4025
Welspun Guj tgt 600
Aventis Pharma tgt 1198
Budget Railway
Railways to make steel coaches from now onwards this should benefit steel producing companies. Railways to implement IT technologies, and smart cards, online booking facilities on mobiles, etc. This should provide oppotunities to software and IT companies for providing the same facilities.
Thursday, February 21, 2008
Intra day trading stocks for 21st Feb, 2008
GMR Infrastructure, Buy around Rs 173, Target1 -Rs180, Target 2 - Rs. 185, Stop Loss- Rs 170
Gujrat NRE Coke, Buy around Rs 157, Target 1- Rs. 164, Target 2- Rs 167, Stop Loss- Rs 152
Gujrat NRE Coke, Buy around Rs 157, Target 1- Rs. 164, Target 2- Rs 167, Stop Loss- Rs 152
Wednesday, February 20, 2008
Tuesday, February 19, 2008
tip 19/2
Oil Country Tubular, CMP- Rs. 86, Target - Rs. 105, Short term
Mcdowell, CMP- Rs. 1602, Target - Rs. 2000, Short term
Mcdowell, CMP- Rs. 1602, Target - Rs. 2000, Short term
India Foils
We had initated buy call in India Foils at Rs 27 which got hammered to Rs 14 in very thin volume in last 2 weeks.
Mr Dutta CEO of ESS DEE Aluminium in an interview to a wire channel has indicated a price of Rs 150 crs for India Foil and also indicated to acquire 90% shares which mean the shares will be de listed and the current market cap of Rs 46 crs too much under priced.
At Rs 150 crs market cap basis and in view of the fact that promoters hold only 39% the first fair price of open offer could Rs 50 per share where the market cap of Rs 150 crs gets matched.
The scope of revision in the price is also not ruled out as 57% stake is held by others.
Investors may take their own call on the approximate price of open offer as our price calculations are only indicative.
We have vested interest in the stock.
Mr Dutta CEO of ESS DEE Aluminium in an interview to a wire channel has indicated a price of Rs 150 crs for India Foil and also indicated to acquire 90% shares which mean the shares will be de listed and the current market cap of Rs 46 crs too much under priced.
At Rs 150 crs market cap basis and in view of the fact that promoters hold only 39% the first fair price of open offer could Rs 50 per share where the market cap of Rs 150 crs gets matched.
The scope of revision in the price is also not ruled out as 57% stake is held by others.
Investors may take their own call on the approximate price of open offer as our price calculations are only indicative.
We have vested interest in the stock.
Monday, February 18, 2008
some accumulation for BSE
Market seems to be volatile and weak. I would like to advise investors to be cautious and keep investing in step in every fall and keep some cash available.
Some value stocks to keep watch on and accumulate -
Bharati Shipyard - CMP- Rs 580 , target - Rs. 700, Short term
Alps Industries, CMP- Rs 46.8, Target - Rs. 60 , short term
Gv films , CMP- Rs 6.83, Target Rs. 9, short term.
Nagarjuna Fertilizer, CMP- Rs. 48, Target - Rs. 60, short term
Some value stocks to keep watch on and accumulate -
Bharati Shipyard - CMP- Rs 580 , target - Rs. 700, Short term
Alps Industries, CMP- Rs 46.8, Target - Rs. 60 , short term
Gv films , CMP- Rs 6.83, Target Rs. 9, short term.
Nagarjuna Fertilizer, CMP- Rs. 48, Target - Rs. 60, short term
BSE tips for 18/02
Buy Petronet @ 77 tgt 90
Buy Bombay dyeing at 700 tgt 850
Sell R power at 430 (closing buy call)
Cuy Rpower at 400-410 if available today only
Buy Nifty 5250 March
Buy Powergrid 107 tgt 120
Buy Bombay dyeing at 700 tgt 850
Sell R power at 430 (closing buy call)
Cuy Rpower at 400-410 if available today only
Buy Nifty 5250 March
Buy Powergrid 107 tgt 120
Wednesday, February 13, 2008
Long Term Tips
Infosys buy @ cmp tgt 2000
RCom cmp tgt 800
Bharti cmp tgt 1100
Ranbaxy cmp tgt 550
R Power cmp tgt 525
Powergrid cmp tgt 136 in a month
NTPC @ cmp tgt 300
RCom cmp tgt 800
Bharti cmp tgt 1100
Ranbaxy cmp tgt 550
R Power cmp tgt 525
Powergrid cmp tgt 136 in a month
NTPC @ cmp tgt 300
Tuesday, February 12, 2008
Friday, February 8, 2008
Ahmednagar Forgings
Recommendation: Book Out
Current market price: Rs203
Book out
Result highlights
*
The Q2FY2008 results of Ahmednagar Forgings Ltd (AFL) are below our estimates.
*
The company's sales for the quarter grew by only 8.8% to Rs165.8 crore. The domestic sales remained flat at Rs111 crore and the export sales grew by 30% to Rs54 crore. The export revenues were flat on a quarter-on-quarter (q-o-q) basis.
*
The operating profit margin (OPM) has been maintained at 20.6%. As a result, the operating profit grew by 8.5% to Rs34.2 crore. Higher interest and depreciation costs led the profit after tax (PAT) to remain flat at Rs17.7 crore.
*
The ramp up in exports is not happening, as expected. There has been a delay in product approvals for exports. The domestic revenues are also not growing due to a slowdown in the domestic market.
*
AFL is making preferential allotment of 17 lakh shares and 38 lakh warrants to its promoters at a price of Rs240, thereby raising Rs132 crore. The funds will be used in buying assets such as forging lines. The preferential allotment would lead to an equity dilution of 16%. The resolution to raise money through debt of Rs2,000 crore has also been cleared.
*
Slow ramp up in exports, slow down in domestic market and 16% equity dilution would be a dampener on AFL's performance. We downgrade our earning estimates for FY2008 and FY2009 by 25% to Rs16.3 and Rs20.6 respectively. At the current market price of Rs203, the stock is trading at 9.9x its FY2009E earnings and is available at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.0x. We advise investors to Book out of the stock.
Current market price: Rs203
Book out
Result highlights
*
The Q2FY2008 results of Ahmednagar Forgings Ltd (AFL) are below our estimates.
*
The company's sales for the quarter grew by only 8.8% to Rs165.8 crore. The domestic sales remained flat at Rs111 crore and the export sales grew by 30% to Rs54 crore. The export revenues were flat on a quarter-on-quarter (q-o-q) basis.
*
The operating profit margin (OPM) has been maintained at 20.6%. As a result, the operating profit grew by 8.5% to Rs34.2 crore. Higher interest and depreciation costs led the profit after tax (PAT) to remain flat at Rs17.7 crore.
*
The ramp up in exports is not happening, as expected. There has been a delay in product approvals for exports. The domestic revenues are also not growing due to a slowdown in the domestic market.
*
AFL is making preferential allotment of 17 lakh shares and 38 lakh warrants to its promoters at a price of Rs240, thereby raising Rs132 crore. The funds will be used in buying assets such as forging lines. The preferential allotment would lead to an equity dilution of 16%. The resolution to raise money through debt of Rs2,000 crore has also been cleared.
*
Slow ramp up in exports, slow down in domestic market and 16% equity dilution would be a dampener on AFL's performance. We downgrade our earning estimates for FY2008 and FY2009 by 25% to Rs16.3 and Rs20.6 respectively. At the current market price of Rs203, the stock is trading at 9.9x its FY2009E earnings and is available at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.0x. We advise investors to Book out of the stock.
Ranbaxy Laboratories
Recommendation: Buy
Price target: Rs558
Current market price: Rs374
Generic Nexium—a potential exclusivity opportunity
Key points
*
Ranbaxy Laboratories (Ranbaxy) has received tentative approval from the US Food and Drug Administration (US FDA) for generic Esomeprazole Magnesium Delayed-Release Capsules, 20 mg (base) and 40 mg (base), the generic version of Astra Zeneca's blockbuster drug Nexium. Annual sales of Nexium is around $5.5 billion (IMS - MAT: December 2007).
*
Ranbaxy was the first to file a Para IV abbreviated new drug application (ANDA) with the US FDA, seeking approval to market Nexium in the USA. It will thus gain from being awarded a 180-day period to exclusively market the product in the USA upon final approval from the USFDA. We expect the final approval for Ranbaxy's version of generic Nexium to come by April 2008, when the 30-month stay expires, thus allowing Ranbaxy to launch the product 'at-risk' in the USA with 180-day exclusivity.
*
Based on our calculations, we believe the Nexium opportunity could yield $550 million in revenues and $220 million in profits for Ranbaxy during the 180-day exclusivity. This will translate into incremental earnings of Rs21 per share for Ranbaxy. However, we do not believe Ranbaxy would launch the product 'at-risk' in the USA before the outcome of the litigation. In such a case, Ranbaxy could attempt to enter into an out-of-court settlement with Astra Zeneca for the launch of generic Nexium.
*
Ranbaxy has already announced four exclusivity opportunities until 2010, collectively valued at Rs68 per share. Further, Ranbaxy has in its kitty, 18 more Para IV filings with potential first to file (FTF) status, representing a market size of about $27 billion. The company expects to monetise at least one FTF opportunity every year. We expect the news flow on Para IV challenges and associated exclusivity opportunities to continue.
*
We expect the announcements on de-merger of the new drug discovery research (NDDR) division, clarity on the Lipitor launch in Canada and other countries across the world and news flow on potential FTF opportunities to act as positive triggers for the stock. At the current market price of Rs374, Ranbaxy is trading at 17.5x its estimated CY2008E and 15.3x its estimated CY2009E earnings. We maintain our Buy recommendation on the stock with a sum-of-the-parts price target of Rs558 (20x CY2009E earnings of base business plus Rs68 for exclusivity opportunities).
Price target: Rs558
Current market price: Rs374
Generic Nexium—a potential exclusivity opportunity
Key points
*
Ranbaxy Laboratories (Ranbaxy) has received tentative approval from the US Food and Drug Administration (US FDA) for generic Esomeprazole Magnesium Delayed-Release Capsules, 20 mg (base) and 40 mg (base), the generic version of Astra Zeneca's blockbuster drug Nexium. Annual sales of Nexium is around $5.5 billion (IMS - MAT: December 2007).
*
Ranbaxy was the first to file a Para IV abbreviated new drug application (ANDA) with the US FDA, seeking approval to market Nexium in the USA. It will thus gain from being awarded a 180-day period to exclusively market the product in the USA upon final approval from the USFDA. We expect the final approval for Ranbaxy's version of generic Nexium to come by April 2008, when the 30-month stay expires, thus allowing Ranbaxy to launch the product 'at-risk' in the USA with 180-day exclusivity.
*
Based on our calculations, we believe the Nexium opportunity could yield $550 million in revenues and $220 million in profits for Ranbaxy during the 180-day exclusivity. This will translate into incremental earnings of Rs21 per share for Ranbaxy. However, we do not believe Ranbaxy would launch the product 'at-risk' in the USA before the outcome of the litigation. In such a case, Ranbaxy could attempt to enter into an out-of-court settlement with Astra Zeneca for the launch of generic Nexium.
*
Ranbaxy has already announced four exclusivity opportunities until 2010, collectively valued at Rs68 per share. Further, Ranbaxy has in its kitty, 18 more Para IV filings with potential first to file (FTF) status, representing a market size of about $27 billion. The company expects to monetise at least one FTF opportunity every year. We expect the news flow on Para IV challenges and associated exclusivity opportunities to continue.
*
We expect the announcements on de-merger of the new drug discovery research (NDDR) division, clarity on the Lipitor launch in Canada and other countries across the world and news flow on potential FTF opportunities to act as positive triggers for the stock. At the current market price of Rs374, Ranbaxy is trading at 17.5x its estimated CY2008E and 15.3x its estimated CY2009E earnings. We maintain our Buy recommendation on the stock with a sum-of-the-parts price target of Rs558 (20x CY2009E earnings of base business plus Rs68 for exclusivity opportunities).
Deepak Fertilisers & Petrochemicals Corporation
Recommendation: Buy
Price target: Rs169
Current market price: Rs132
JV with Yara International
Key points
*
Deepak Fertilisers & Petrochemical Corporation Ltd (DFPCL) has agreed to form a joint venture (JV) company with Yara International ASA (Yara International) to produce and market ammonium nitrate and specialty fertilisers in India.
*
DFPCL will own 51% stake in the JV, while the Norway-based Yara International will own the balance 49% stake. The current heads of agreement will be converted into final agreement after due diligence and necessary company and regulatory approvals.
*
The JV will provide DFPCL stability and flexibility in its operations in ammonium nitrate and specialty fertilisers segments through Yara International's leadership in the ammonia value chain and a large-scale ammonia/urea production base in the low-cost natural gas regions. The JV will also invest in the company's Paradip project of setting up a 300,000 million tonne per annum (MTPA) ammonium nitrate plant.
*
Indian technical ammonium nitrate (TAN) consumption is growing at about 5-6% per annum on the back of high coal demand for power generation. DFPCL is the only major domestic producer of TAN, with the balance being met through imports.
*
DFPCL has already increased its ammonia capacity to 130,000 tonne per annum (TPA) from 90,000TPA during the second quarter. This along with increased natural gas availability and additional ammonia storage tank would benefit the company in reducing the raw material cost and enhancing its nitric acid production.
*
For FY2009, we expect the company to post a revenue growth of 18.8%.
*
At the current market price of Rs132, the stock is trading at 8.5x its FY2009E earnings and at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.2x. We maintain our Buy recommendation on the stock with a price target of Rs169.
Price target: Rs169
Current market price: Rs132
JV with Yara International
Key points
*
Deepak Fertilisers & Petrochemical Corporation Ltd (DFPCL) has agreed to form a joint venture (JV) company with Yara International ASA (Yara International) to produce and market ammonium nitrate and specialty fertilisers in India.
*
DFPCL will own 51% stake in the JV, while the Norway-based Yara International will own the balance 49% stake. The current heads of agreement will be converted into final agreement after due diligence and necessary company and regulatory approvals.
*
The JV will provide DFPCL stability and flexibility in its operations in ammonium nitrate and specialty fertilisers segments through Yara International's leadership in the ammonia value chain and a large-scale ammonia/urea production base in the low-cost natural gas regions. The JV will also invest in the company's Paradip project of setting up a 300,000 million tonne per annum (MTPA) ammonium nitrate plant.
*
Indian technical ammonium nitrate (TAN) consumption is growing at about 5-6% per annum on the back of high coal demand for power generation. DFPCL is the only major domestic producer of TAN, with the balance being met through imports.
*
DFPCL has already increased its ammonia capacity to 130,000 tonne per annum (TPA) from 90,000TPA during the second quarter. This along with increased natural gas availability and additional ammonia storage tank would benefit the company in reducing the raw material cost and enhancing its nitric acid production.
*
For FY2009, we expect the company to post a revenue growth of 18.8%.
*
At the current market price of Rs132, the stock is trading at 8.5x its FY2009E earnings and at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.2x. We maintain our Buy recommendation on the stock with a price target of Rs169.
Bank of Baroda
Recommendation: Buy
Price target: Rs500
Current market price: Rs393
Treasury gains drive strong PAT
Result highlights
*
For Q3FY2008, Bank of Baroda (BoB) reported a profit after tax (PAT) of Rs501 crore, beating our estimate of Rs402.6 crore and the consensus estimate of Rs378.3 crore. The PAT indicates a growth of 52.3% year on year (yoy) and 53.1% quarter on quarter (qoq) primarily driven by a strong growth in the non-interest income.
*
The net interest income (NII) growth was moderate at 9.8% yoy to Rs997.5 crore. The NII growth was largely due to the continued pressure on the net interest margin (NIM) and a relatively slower credit growth of 23% compared with that of 27.1% during H1FY2008.
*
During the quarter, the deposits grew by 22% yoy to Rs136,900 crore, while the advances rose by 23% yoy to Rs 95,518 crore. With the advances growth outpacing the deposit growth, the credit-deposit (CD) ratio improved to 69.8% for the quarter from 68.7% for the previous quarter and 69.2% for the year-ago period.
*
The non-interest income spiked up 85.2% yoy to Rs618 crore on the back of strong treasury gains, thereby supporting the bottom line. The treasury gains for the quarter came in around Rs194.4 crore, about five times the gain in the year ago period.
*
The operating expenses growth was contained at 7.1% yoy to Rs683 crore, while on quarter-on-quarter (q-o-q) basis it declined by 14.4%. This was largely due to a 8.5% year-on-year (y-o-y) decline in the staff expenses, partially offset by 40% y-o-y jump in the other operating expenses.
*
The asset quality remained healthy with the gross non-performing assets (GNPA) declining by 14.6% yoy to Rs2,040.3 crore, while the net non-performing assets (NNPA) were largely flat yoy at Rs517.2 crore. However, the provisioning coverage declined to 75% for the quarter from 77% for the previous quarter and 78% for the year ago period.
*
The bank remains well capitalised with a capital adequacy ratio (CAR) of 13.5% at the end of December 2007 compared with 12.9% at the end of September 2007 and 12.2% at the end of December 2006.
*
In short term, the proposed initial public offering (IPO) of the UTI Mutual Fund should act as a trigger for BoB, as the bank holds 25% stake in the fund. Recent media reports suggest a valuation of about Rs6,500 crore for the UTI Mutual Fund compared with our valuation of Rs4,000 crore.
*
At the current market price of Rs393 the stock is quoting at 8.2x its FY2009E earnings per share (EPS), 4.3x its pre-provision profit (PPP) and 1.3x FY2009E book value (BV). We maintain our Buy recommendation on the stock with a price target of Rs500.
Price target: Rs500
Current market price: Rs393
Treasury gains drive strong PAT
Result highlights
*
For Q3FY2008, Bank of Baroda (BoB) reported a profit after tax (PAT) of Rs501 crore, beating our estimate of Rs402.6 crore and the consensus estimate of Rs378.3 crore. The PAT indicates a growth of 52.3% year on year (yoy) and 53.1% quarter on quarter (qoq) primarily driven by a strong growth in the non-interest income.
*
The net interest income (NII) growth was moderate at 9.8% yoy to Rs997.5 crore. The NII growth was largely due to the continued pressure on the net interest margin (NIM) and a relatively slower credit growth of 23% compared with that of 27.1% during H1FY2008.
*
During the quarter, the deposits grew by 22% yoy to Rs136,900 crore, while the advances rose by 23% yoy to Rs 95,518 crore. With the advances growth outpacing the deposit growth, the credit-deposit (CD) ratio improved to 69.8% for the quarter from 68.7% for the previous quarter and 69.2% for the year-ago period.
*
The non-interest income spiked up 85.2% yoy to Rs618 crore on the back of strong treasury gains, thereby supporting the bottom line. The treasury gains for the quarter came in around Rs194.4 crore, about five times the gain in the year ago period.
*
The operating expenses growth was contained at 7.1% yoy to Rs683 crore, while on quarter-on-quarter (q-o-q) basis it declined by 14.4%. This was largely due to a 8.5% year-on-year (y-o-y) decline in the staff expenses, partially offset by 40% y-o-y jump in the other operating expenses.
*
The asset quality remained healthy with the gross non-performing assets (GNPA) declining by 14.6% yoy to Rs2,040.3 crore, while the net non-performing assets (NNPA) were largely flat yoy at Rs517.2 crore. However, the provisioning coverage declined to 75% for the quarter from 77% for the previous quarter and 78% for the year ago period.
*
The bank remains well capitalised with a capital adequacy ratio (CAR) of 13.5% at the end of December 2007 compared with 12.9% at the end of September 2007 and 12.2% at the end of December 2006.
*
In short term, the proposed initial public offering (IPO) of the UTI Mutual Fund should act as a trigger for BoB, as the bank holds 25% stake in the fund. Recent media reports suggest a valuation of about Rs6,500 crore for the UTI Mutual Fund compared with our valuation of Rs4,000 crore.
*
At the current market price of Rs393 the stock is quoting at 8.2x its FY2009E earnings per share (EPS), 4.3x its pre-provision profit (PPP) and 1.3x FY2009E book value (BV). We maintain our Buy recommendation on the stock with a price target of Rs500.
Good time to buy
sensex has previously tested its 200 dma which is currently @ 16780 while
the 200 ema @ 17160.
previous chart patterns suggests whenever the fall in sensex is in excess of
10% it takes minimum 2-3 instances at 200 dma to form a bottom.
I think panic bottom has already been found @ 15400 and it would be not be
tested unless we r in extreme grim situation.
the correction which has started from 18900 is a technical correction, in
fact sensex attempted to cross 100 dma @ 18800 but failed to sustain
resulting in testing of 200 dma again @ 16800.
critical levels to look out are 17170 , 16774 on daily charts, 16777, 16220
on weekly charts on down sides.
16220 levels would be the major support level based on moving averages.
the above comments are purely based on moving average theory, which is the
most popular theory , further chart patterns from during JAN2004- JULY 2004
also suggest intermediate bottom @ 16200 below the median trend line, the
same has been posted previously & would be posted with recent developments
by monday.
--
Make a habit to book half of yours profit at 1tgt & rest in half prts. at
every consecutive tgt.
the 200 ema @ 17160.
previous chart patterns suggests whenever the fall in sensex is in excess of
10% it takes minimum 2-3 instances at 200 dma to form a bottom.
I think panic bottom has already been found @ 15400 and it would be not be
tested unless we r in extreme grim situation.
the correction which has started from 18900 is a technical correction, in
fact sensex attempted to cross 100 dma @ 18800 but failed to sustain
resulting in testing of 200 dma again @ 16800.
critical levels to look out are 17170 , 16774 on daily charts, 16777, 16220
on weekly charts on down sides.
16220 levels would be the major support level based on moving averages.
the above comments are purely based on moving average theory, which is the
most popular theory , further chart patterns from during JAN2004- JULY 2004
also suggest intermediate bottom @ 16200 below the median trend line, the
same has been posted previously & would be posted with recent developments
by monday.
--
Make a habit to book half of yours profit at 1tgt & rest in half prts. at
every consecutive tgt.
Wednesday, February 6, 2008
Godawari Power & Ispat
CMP: Rs 292.65
Target price: Rs 400
India Infoline has maintained a ‘buy’ on Godawari Power & Ispat as it feels that the company’s capacity additions will lead to robust volume growth thereby driving the bottomline in the coming years.
“Capacity additions, which were commissioned 100% in September 2007, will lead to robust volume growth for the company. GPIL’s strong volume growth coupled with higher realisations, will lead to its revenues rising by a CAGR of 50.9% over the period FY07-10E,” says the report. Operating margins are expected to remain flat at 19.8% in FY08 and 19.9% in FY09 and then expand to 22.9% in FY10, it adds.
Target price: Rs 400
India Infoline has maintained a ‘buy’ on Godawari Power & Ispat as it feels that the company’s capacity additions will lead to robust volume growth thereby driving the bottomline in the coming years.
“Capacity additions, which were commissioned 100% in September 2007, will lead to robust volume growth for the company. GPIL’s strong volume growth coupled with higher realisations, will lead to its revenues rising by a CAGR of 50.9% over the period FY07-10E,” says the report. Operating margins are expected to remain flat at 19.8% in FY08 and 19.9% in FY09 and then expand to 22.9% in FY10, it adds.
Yes Bank
CMP: Rs 257.40
Target price: Rs 300
CItigroup Global Markets has maintained its ‘buy’ rating on Yes Bank while raising the target price from Rs 230 to Rs 300 to factor in the proposed capital raising and continued strong growth of the bank.
“We rate Yes Bank with a buy/medium risk rating and an EVA-based Rs 300 target price,” says the report. The foreign brokerage feels that even though Yes Bank is relatively young, it has strong execution skills.
“It has built a focused asset portfolio, has strong treasury and advisory income businesses, and has kept risks relatively low. Moreover, we believe the bank offers aggressive growth potential,” the report adds. It further adds that the key catalysts for the stock's medium-term performance are likely to be easing domestic interest rate & liquidity environment, fresh capital raising and strong growth in investment banking fees.
Target price: Rs 300
CItigroup Global Markets has maintained its ‘buy’ rating on Yes Bank while raising the target price from Rs 230 to Rs 300 to factor in the proposed capital raising and continued strong growth of the bank.
“We rate Yes Bank with a buy/medium risk rating and an EVA-based Rs 300 target price,” says the report. The foreign brokerage feels that even though Yes Bank is relatively young, it has strong execution skills.
“It has built a focused asset portfolio, has strong treasury and advisory income businesses, and has kept risks relatively low. Moreover, we believe the bank offers aggressive growth potential,” the report adds. It further adds that the key catalysts for the stock's medium-term performance are likely to be easing domestic interest rate & liquidity environment, fresh capital raising and strong growth in investment banking fees.
JAIN iRRIGATION
CMP: Rs 636
Target price: Rs 760
Morgan Stanley has maintained ‘overweight’ on Jain Irrigation Systems as it expects the company’s margins to expand over the next three to five years with faster growth in micro irrigation systems (MIS).
“We believe that Jain Irrigation Systems is an interesting play on India agriculture with industry leadership in the fast-growing MIS business and presence in high growth potential agro processing business,” says the report.
Strong growth momentum in micro-irrigation systems and fruits & vegetables processing continues to drive strong growth, it adds. According to the brokerage, MIS and fruits & vegetables (FV) processing businesses have registered a growth of 71% and 86% year-on-year for the first nine months of the current financial year.
Target price: Rs 760
Morgan Stanley has maintained ‘overweight’ on Jain Irrigation Systems as it expects the company’s margins to expand over the next three to five years with faster growth in micro irrigation systems (MIS).
“We believe that Jain Irrigation Systems is an interesting play on India agriculture with industry leadership in the fast-growing MIS business and presence in high growth potential agro processing business,” says the report.
Strong growth momentum in micro-irrigation systems and fruits & vegetables processing continues to drive strong growth, it adds. According to the brokerage, MIS and fruits & vegetables (FV) processing businesses have registered a growth of 71% and 86% year-on-year for the first nine months of the current financial year.
News
WE ARE BULLISH ON THE MARKET AS LONG AS IT STAY ABOVE 18000. THE MARKET IS FINDING ITS FEET HERE WHICH IS VERY GOOD FOR LONG TERM. I.T. AND PHARMA STOCKS LOOKS VERY ATTRACTIVE FOR LONG TERM. INFOSYS, TCS, SATYAM, CIPLA, RANBAXY CAN BE BOUGHT FOR A LONG TERM VIEW YOU WILL DEFINITELY GET GOOD RETURN. POWER STOCK CAN RALLY ON ACCOUNT OF RPOWER LISTING AHEAD, BUY NTPC TATA POWER, POWER GRID FOR SHORT TERM GAIN. HAVE AN EYE ON SAIL! THERE IS SOME NEWS IN HFCL ALSO!
recoo
2/5/2008 J P Hydro 85.00 140.00 81.00 30 days target
2/5/2008 Hindustan Oil 126.50 175.00 98.00 Average
2/4/2008 LIC Housing 301.00 375.00 290.00
2/5/2008 Hindustan Oil 126.50 175.00 98.00 Average
2/4/2008 LIC Housing 301.00 375.00 290.00
Tuesday, February 5, 2008
tips
Investors are advised to wait as the market is going to fall and then buy.
GV Films, CMP- Rs. 7.85, Target - Rs. 10, Short term
KEI Industries, CMP- Rs. 90, Target, 120, Short term
KRBL, CMP- Rs. 138.45, Target - Rs. 180, Short term
Bharati Shipyard, CMP- Rs. 630, Target - Rs. 800, short term
GV Films, CMP- Rs. 7.85, Target - Rs. 10, Short term
KEI Industries, CMP- Rs. 90, Target, 120, Short term
KRBL, CMP- Rs. 138.45, Target - Rs. 180, Short term
Bharati Shipyard, CMP- Rs. 630, Target - Rs. 800, short term
Sunday, February 3, 2008
Bartronics India
Angel Broking has recommended buy on Bartronics India with a target of Rs 364 in its report dated 30 January 2008. "Bartronics India is a company operating in the automatic identification and data capture solutions segment. BIL enjoys a pre-eminent position in the Indian AIDC segment, and is all geared up to record strong growth going ahead. It is set to leverage the strong growth expected in the Retail sector. The company is also the only smart cards manufacturer in India and this segment is expected to surge on strong demand from the Telecom, Banking and Government sectors. We expect BIL to record CAGRs of 128% and 115% in topline and bottomline respectively over FY2007-10E. At the cmp, the stock is trading at .5x FY2010E EPS on the fully diluted equity capital. We Initiate Coverage on the stock, with a Buy recommendation and 15-month Target Price of Rs364." says Angel Broking Research Report
Friday, February 1, 2008
29 calls gave fruit
Hope you got the fruit of calls made for 29 jan.. will keep posting some tips for future eeryday soon.. and also starting mcx posts also
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