SPINNING MONEY ON THE WEB
Seven webpreneurs on how to make the online format work for you
*Figures are business estimates by online research agencies based on the adspend and traffic on the website. The entrepreneurs refused to share actual business figures
Saameer Mody|40
Location: Mumbai Company: 1takemedia YouTube Channel: youtube.com/1takemedia Business: Distribution of “alternate content” ie. short films, documentaries, indie films, etc Started in: 2006; Joined YouTube: 2008 Before Google: Less than 1,500 viewers a day After Google: 14 million views, adding 50,000 views a day Service Used: YouTube Partner Programme Money Matters: 9,460 a day* Google Gyan
“Being online doesn’t get traffic. You have to network offline. We are present at all film festivals, take part in seminars and connect via social media”
Rishi Sachdev|27
Location: Yamuna Nagar Company: Aryan Florist Website: aryanflorist.com Business: Worldwide flower and gift delivery Started in: 2004 After Google: 30-fold increase in order volumes Service Used: AdWords Money Matters: 46,000 a day* Google Gyan
“Google should keep an eye on clicks from network partners to ensure that they are not spamming to generate more business for themselves. Once you have established your credentials, channelise towards search engine optimisation. The idea is to feature on the first page of Google for key search words”
MR Hari |47
Location: Thiruvananthapuram Company: Invis Multimedia YouTube Channel: youtube.com/indiavideodotorg Started in: 1996; Joined YouTube: 2008 Before Google: Less than 1,000 views a day After Google: 50,000 views a day Service Used: YouTube Partner Programme Money Matters: Earned 25 lakh last year from YouTube alone Google Gyan
“Google should update their view meter. Their counter for measuring views is not reliable. In certain cases, we know that the video has been watched by more than 1 lakh people but the counter shows 10,000. Using YouTube as the host server you save on bandwidth, server and security cost. Secondly, it rids you of all technical hurdles and saves manpower”
Name: Amit Agarwal|34
Location: Agra Company: Digital Inspiration Website: labnol.org After Google: 4.5 million views a month and 1,25,000 subscribers Service Used: Google Adsense, YouTube Partner Programme Money Matters: Few crores per year Google Gyan
“One area where Google can improve is “support.” The premium AdSense partners do have dedicated account managers but the smaller publishers can only reach Google by email or though online forums. Also the YPP is still relatively new. Google can help in the training area so that the quality of produced content can get better. They do have initiatives like YouTube Next in the US — maybe they can introduce something similar here”
Amit Bhawani|27
Location: Hyderabad Company: Digital World Solutions
Website:
techadvices.com (tech blog), mastergadgets.com (gadget blog), androidadvices.com (Android blog), helpfulhealthtips.com (health blog), autoadvices.com (auto blog), hyderabadadvisor.com (city blog) Business: Websites and blogs on technology, health, automobiles, city info Started in: 2006 After Google: 1.2 million views per day Service Used: AdSense Money Matters: 1.2 crore last year Google Gyan
“Start with a generic brand name even if your blog is a personal blog. It’s difficult to pitch a personalised blog (with your name) as a viable business brand to get advertisers in the future. Never under estimate the power of your social connections and start sharing your blog content with them which can go viral and help you reach a broader audience”
Hitendra Merchant |39
Location: Mumbai Company: YoBoHo New Media; YouTube Channel: youtube.com/bollywoodbackstage, youtube.com/hollywoodbackstage, youtube.com/desimad, youtube.com/hooplakidz, youtube.com/ anandayoga, youtube.com/aniskitchen, youtube.com/nehabhasin Business: Video content on entertainment, health, cooking, children, etc Started in: 2008 Before Google: 30,000 views After Google: More than 2 million video views per day across 30 channels Service Used: YouTube Partner Programme Money Matters: Approx 30 lakh a month* Google Gyan
“You’d be surprised as to what can get you more traffic online. For instance, a nursery rhyme gets us our maximum hits at 50,000 a day”
Raju PP|29
Location: Bangalore Company: Techpp Website: techpp.com Business: Personal & consumer tech blog Started in: 2007 After Google: 2 million views a month, with 1.23 million unique users Service Used: AdSense Money Matters: 4,60,000 a month* Google Gyan “You have to scale the blog to stay topical. Extend your coverage area”
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9/18/11
GOOGLE MADE ME RICH - AN ARTICLE ABOUT PEOPLE EARNING MONEY FROM GOOGLE SERVICES - PART 1
Google Made Me Rich
The story of web entrepreneurs who made plenty of money, thanks to Google and a great idea
:: Nupur Amarnath
At 27, Amit Agarwal grew restless. A techie working in Bangalore, he wanted to live with his family in Agra. But what about the monthly pay cheque? Idea: a tech blog that will help him get freelance assignments. So in 2004, labnol.blogspot.com was born. The first post was the review of a new printer he had bought. And soon he was fielding questions from people who had the printer or any other gadgets.
Agarwal didn’t know it then but the blog would become his full-time profession. Seven years later, he is still writing the blog (now labnol.org), and no longer looking for freelancing. The blog with 4.5 million page views per month has him clocking in 14-hour workdays. The only difference: he works from home. “Back then, I didn’t think or know that a blog could be my source of income,” he confesses. His source of revenue: Google AdSense, the Google service that places contextual ads on blogs. The blog and Google stay his chief source of income, with 75% of the revenue coming from it.
With little to no capital required, taking your business to the web is clearly the way forward. But decoding the web is not that easy. As yet another tech blogger, 27-yearold Amit Bhawani, found out. Starting as a personal blogger (amitbhawani.com now techadvices.com), the MBA graduate from Hyderabad has 300 domain names registered under his company Digital World Solutions with 40 sites and blogs operational, covering technology, health, education and automobiles. Bhawani started blogging as a 22-year-old in 2006 and soon realised that it’s the only business where there’s an assured 100% year-on-year growth. Last year he made 1.2 crore from his blog with 70% of the revenue coming from Google AdSense.
Unlike Agarwal, Bhawani has a team of content writers (four on the rolls) and is soon planning to move out of his home office and set up a team of 16 writers to feed his 40 websites. “It’s easy to make money online and you keep hearing offhand stories of webpreneurship. But it’s difficult to find any guidance,” he says. There are no agencies telling you what to do, and competition will misguide you. The web is the only source. But as Mitch Kapor, founder of Lotus Development and supporter of many internet-oriented businesses, famously said, “Getting information off the Internet is like taking a drink from a fire hydrant.”
In his five years as a web entrepreneur, Bhawani says the three Ps that help you are passion, persistence and patience. But a few pointers never hurt.
Find a Niche
While studying to be an engineer, which he never got down to pursuing, Rishi Sachdeva, 27, realised that there’s no specific service that caters to NRIs who wish to deliver flowers to India. His mother had a small florist business catering to local clients. His idea: to provide “similar or better virtual environment”. He started aryanflorist.com in 2004, when he was studying engineering. Based out of Yamuna Nagar, he built a network of 100 florists within India to deliver pan-India, even to remote villages like Sangrur in Punjab for an additional cost. Today, the company has started delivering gift items like champagne, chocolates along with flowers and has a pan-world presence with a network of 250 florists in countries like the US, the UK, UAE, Canada, Australia and New Zealand.
Sachdeva has Africa and Europe on his list next. After setting up the website in 2004, designed by a Delhi web designer, he only used Google AdWords to popularise the site. “When I started out, there was no one to help me out. I made mistakes — in reading the Ad-Words clauses, how to get traffic to the site and the search keywords to be used — and learnt from them,” he says. The first five years of business were spent in understanding how Google works and how to increase his site’s visibility. The money that came in was pumped back into advertising. Result: what started as a 200 per day ad spend has spiralled into 50,000 a day (AdWords works on a pay-perclick model). “There has to be a key differentiator to your blog, site or service you offer that will drive people onto your site,” says Raju PP, a tech blogger who runs the site techpp.com (started in 2008). It started as a personal blog in 2005 and took on a life of its own as a consumer and personal tech blog in 2008. In 2009 Raju quit his job with Infosys to start full-time blogging. The blog has 2 million page views per month with 1.23 million unique users. Raju says he’s working harder than he has ever done in any job but he’s happy with the results. AdSense contributes 60% towards his monthly kitty of a few lakhs while Tribal Fusion make the rest.
Get the Numbers
Ultimately it’s all about the numbers, read the traffic on your site. “It has to be more content creative than resource intensive as the people will come back to you only if they like what they see,” says Hitendra Merchant of YoBoHo New Media. Merchant hosts 35 YouTube channels and nearly 10,000 videos on Bollywood, Hollywood, general entertainment, cooking, kids and yoga and is part of the YouTube Partner Program (YPP). An old hand from the music industry, Merchant was in music marketing with HMV and Times Music for some time. In 2007, he joined promoter Shripal Morakhia who exited out of ShareKhan in 2007, to launch a service for digital downloads. The licensing hassles stopped the idea from taking off.
Then they decided to create entertainment content for mobile phones, but were few years too early. In December 2007, the same set of animators designed web content and desimad.com was launched. But Merchant and his men were still struggling with the numbers and thus getting the advertiser interested. In 2008, Desimad started uploading on YouTube. “Within 7-8 months, YouTube started paying up and as soon as the YPP started we got regular cheques within 45 days from them, very encouraging for a start-up, and now we are one of the leading partners with the YPP” he says.
YPP is Google’s way of sharing advertising revenue with its most popular and successful video creators. Once in the YPP, ads start appearing overlaid or next to their videos. The content developer gets 68% share of the revenue while Google pockets 32%.
“There’s a fair bit of handholding from Google, as they advise on what content will fetch us more views, key searches, feature placements on youtube etc,” Merchant says. But over time, he has found out that sometimes what they think will work and what actually does are poles apart. Take for instance, some of our nursery rhymes on the Hooplakidz Channel on youtube gets YoBoHo nearly 50,000 views a day.
For 40-year-old Saameer Mody, part of the YPP, YouTube has been helpful in getting the numbers. Mody, along with two friends, started 1takemedia.com to provide opportunities within the Indian Film & TV Industry. The site also had job postings — a sort of yellow pages for the Mumbai film industry. “In 2009, we took the next step by deciding to set up a distribution platform for short films and documentaries through YouTube,” Mody says.
The 1takemedia channel on YouTube has over 14 million views and is adding over 50,000 views a day for its library of over 1600 videos from over 800 independent and aspiring filmmakers. According to Mody, there’s been a 400% jump in the company’s revenues. “The way content is consumed today is changing and it’s this evolution that keeps me going,” he says.
Optimise your Earnings
Mody is now planning to launch a video app for Apple and Android platforms, which will generate revenues through AdMobs from Google, one of the world’s largest mobile advertising networks, offering solutions for discovery, branding and monetisation on the mobile web. He also regularly conducts short film contests including the recent exclusive branded contest called Gorbatschow Pure Shorts. Agarwal of labnol.org has started making tech videos for YouTube and monetises it through YPP but as he says it’s a “work in progress”.
Once the idea takes off and you have the eyeballs, the rest is a matter of channelising the same resources to develop more content. M R Hari of Invis Multimedia that runs indiavideo.org is an old hand at developing video content. It was in 1996 he got into the industry and made several cultural videos for Kerala Tourism. In 2004, they realised that DVD is on its way out. And indiavideo.org was born. But how to monetise it? In 2008, their YouTube channel started. From less than 1,000 views a day they are at 50,000 views per day at present. “This is amazing as most of our content is serious and educational in nature,” he says.
But more than numbers, aligning with Google has had other benefits too. Like using YouTube as a host server rather their own, which helped in cutting down on bandwidth, server and security costs. “Our annual savings in this regards is more than 10 lakh. Plus, we are free of technical hurdles and save on manpower too,” he says. While Indiavideo made 25 lakh last year from YouTube, they follow suggestions from YouTube and Ad-Sense that help in maximising revenues. “Our group is one of the earliest certified marketing partners for AdWords. We use the skills of the advertising team in increasing revenues from advertising by selecting most searched topic in content production,” he says.
Also, since 50% of their viewership comes by way of related videos, they have started setting up brand pages of clients on their host site with videos uploaded to our brand channel in YouTube. “This has become a major player in multiplying our revenue and we are seriously thinking of a shift in policy,” he says.
What Next?
Sachdeva of Aryan Florist has hired a UKbased web service agency to carry out search engine optimisation (SEO) plan for Aryan Florist that will help to get it on the first page of Google search engine as a search response to certain keywords. “I will keep using Ad-Words but I want Aryan Florist to grow organically too,” he says. And after that he plans to have a physical presence for his company through florist and gift shops.
Mody has also launched an education-related video content channel called Pocketgyan which will have tutorials for engineering students and will extend it for other subjects as well.
“You could have started your online venture just for fun and it paid for some time but you can’t sustain it without continued focus. It’s not rocket science,” says Bhawani of techadvices.com. After all, failure can be a click away.
CONTINUED..... (Source:Economic times)
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7/7/11
Buy Tecpro Systems; target of Rs 355: Nirmal Bang - Moneycontrol.com -
Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 355 in its July 1, 2011 research report.
“Tecpro Systems, incorporated in 1990, undertakes turnkey projects in material handling, ash handling, balance of plant (BoP) & engineering, procurement & construction (EPC) contracts. Tecpro started focus on turnkey BoP contracts by leveraging its expertise from coal handling and ash handling business. and bagged its first BOP order from state of chattishgarh in FY10. Currently it is executing three BOP contracts worth of Rs. 2100 crs. Company has entered into the technical collaboration & license agreement with several international companies, which strengthens its technical credentials and also enables it to service the clients with advance technology.”
“According to CRISIL, Investment worth of Rs. 9.5 trillion is expected in core sector like Steel, power, port etc. during 2011-2014. MHE ( Material Handling Equipment ) segment will account for Rs. 468 billion, with majority of investment coming from power sector. Current Order book of company is around Rs 4371 crores, which is 2.2xFY11 revenues.
From: http://www.google.com/url?sa=X&q=http://web.moneycontrol.com/news/recommendations/buy-tecpro-systems-targetrs-355-nirmal-bang_562009.html&ct=ga&cad=CAcQARgAIAEoATAAOABAla_L8ARIAlgAYgVlbi1VUw&cd=UCIK5TnghL0&usg=AFQjCNFWxdTQPBT9B909n36ObThCH2rbog
“Tecpro Systems, incorporated in 1990, undertakes turnkey projects in material handling, ash handling, balance of plant (BoP) & engineering, procurement & construction (EPC) contracts. Tecpro started focus on turnkey BoP contracts by leveraging its expertise from coal handling and ash handling business. and bagged its first BOP order from state of chattishgarh in FY10. Currently it is executing three BOP contracts worth of Rs. 2100 crs. Company has entered into the technical collaboration & license agreement with several international companies, which strengthens its technical credentials and also enables it to service the clients with advance technology.”
“According to CRISIL, Investment worth of Rs. 9.5 trillion is expected in core sector like Steel, power, port etc. during 2011-2014. MHE ( Material Handling Equipment ) segment will account for Rs. 468 billion, with majority of investment coming from power sector. Current Order book of company is around Rs 4371 crores, which is 2.2xFY11 revenues.
From: http://www.google.com/url?sa=X&q=http://web.moneycontrol.com/news/recommendations/buy-tecpro-systems-targetrs-355-nirmal-bang_562009.html&ct=ga&cad=CAcQARgAIAEoATAAOABAla_L8ARIAlgAYgVlbi1VUw&cd=UCIK5TnghL0&usg=AFQjCNFWxdTQPBT9B909n36ObThCH2rbog
Buy Yes Bank; target of Rs 368: LKP
LKP is bullish on Yes Bank and has recommended buy rating on the stock with a target of Rs 368 in its July 5, 2011 research report. “We recently met the management of Yes Bank. The purpose was to review the business prospects and the version 2 plan in ...
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From: http://www.google.com/url?sa=X&q=http://www.moneycontrol.com/news/recommendations/buyyesbanktargetofrs368lkp_562782.html&ct=ga&cad=CAcQARgAIAAoATAAOABAjNnL8ARIAlAAWABiBWVuLVVT&cd=vfxRCPCMWFo&usg=AFQjCNGpPzTSv5qGTnSOw0Qity1YMn_WEw
Buy BHEL from long term perspective Irani
Buy BHEL post FPO from long term perspective, says Mehraboon Irani, Principal and Head- Pvt Client Group Business, Nirmal Bang Securities. Irani told CNBC-TV18, “BHEL could definitely correct, but allow me to state, I feel this present level to which ...
From: http://www.google.com/url?sa=X&q=http://www.moneycontrol.com/news/stocks-views/buy-bhellong-term-perspective-irani_562885.html&ct=ga&cad=CAcQARgAIAAoATAAOABAn77M8ARIAlAAWABiBWVuLVVT&cd=cQEX8NC8-l0&usg=AFQjCNFDZAcGPjZThy8pbq35WegBbYg30Q
From: http://www.google.com/url?sa=X&q=http://www.moneycontrol.com/news/stocks-views/buy-bhellong-term-perspective-irani_562885.html&ct=ga&cad=CAcQARgAIAAoATAAOABAn77M8ARIAlAAWABiBWVuLVVT&cd=cQEX8NC8-l0&usg=AFQjCNFDZAcGPjZThy8pbq35WegBbYg30Q
6/24/11
LONG TERM TTRADING TIPS - Buy Bharti Airtel from long term perspective: Irani
Buy Bharti Airtel from long term perspective, says Mehraboon Irani, Principal and Head- Pvt Client Group Business, Nirmal Bang Securities.
Irani told CNBC TV18, “I have been negative on the telecom space for more than two years. And I have gone to the extent to say that Indian telecom story according to me is over. But if you as me, at the present valuations some of the names like Bharti Airtel would be a great stock to buy from a very long-term angle.”
He further added, “If I was an institutional investor, I would definitely look at this space and Bharti would be the top pick, but I think not many of us over here right now are ready to look at the markets even from the next 3-4-5 months angle, and I personally, because of that, I remained underweight on this particular sector. So 2G or no 2G scams, the fact is at the present levels not interested in looking at any telecom stock.”
SOURCE: moneycontrol
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Irani told CNBC TV18, “I have been negative on the telecom space for more than two years. And I have gone to the extent to say that Indian telecom story according to me is over. But if you as me, at the present valuations some of the names like Bharti Airtel would be a great stock to buy from a very long-term angle.”
He further added, “If I was an institutional investor, I would definitely look at this space and Bharti would be the top pick, but I think not many of us over here right now are ready to look at the markets even from the next 3-4-5 months angle, and I personally, because of that, I remained underweight on this particular sector. So 2G or no 2G scams, the fact is at the present levels not interested in looking at any telecom stock.”
SOURCE: moneycontrol
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6/7/11
MEDIUM-TERM TRADING TIPS - Buy Varun Industries with target of Rs 207: Kapadia - CNBC-TV18 -
Hemen Kapadia of chartpundit.com has recommended buying Varun Industries with a target of Rs 207.
STOCK TIPS 4 U - Buy HDIL; target of Rs 225: PINC Research - Moneycontrol.com -
PINC Research is bullish on Housing Development and Infrastructure (HDIL) and has recommended buy rating on the stock with a target of Rs 225 in its June 6, 2011 research report.
“Housing Development and Infrastructure (HDIL)’s Mumbai International Airport Ltd (MIAL) project got a green signal as the issue with respect to ‘eligibility criteria’ has been sorted and MMRDA has commenced the shifting of eligible slum dwellers from MIAL slums to Kurla Premier Compound. This decision of MMRDA is a positive move for HDIL as (1)it paves way for Phase-II of the project leading to ramp up in phase-I & II of the project.(2) the development work in phases is likely to help increase TDR generation. We expect TDR generation to exceed 1 msf post two quarters; this is higher from company’s earlier guidance of 0.75-0.9 msf per quarter for FY12 given in their Q4FY11 conference call. (3) Tax rate going forward might be lower than earlier as MAT rate is applicable on TDR sale.”
“MMRDA has commenced shifting of all eligible slum dwellers from MIAL slums to Kurla Premier Compound and also have issued allotment letter for flats to eligible slum dwellers. The total slum dwellering families is ~28,000 families. We believe that almost 75% of the construction work has been completed and most of the buildings are in ready to shift stage. This shifting clears the cloud over the work on the MIAL project. The management, in Q4FY11 conference call, had given a guidance of 0.75-0.9 msf per quarter TDR recognition for FY12. Post the current development, we expect that work on other phases of MIAL project to ramp up and see TDR generation exceed 1 msf post two quarters. This is likely to lead to higher cash generation. Higher TDR generation is likely to make tax rate fall marginally as TDR is taxed at MAT. We maintain a ‘BUY’ on the stock with a NAV based target price of Rs 225 post 20% discount to NAV. Gross airport valuation is at Rs 132 per share,” says PINC Research report.
SOURCE: Buy HDIL; target of Rs 225: PINC Research - Moneycontrol.com -
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“Housing Development and Infrastructure (HDIL)’s Mumbai International Airport Ltd (MIAL) project got a green signal as the issue with respect to ‘eligibility criteria’ has been sorted and MMRDA has commenced the shifting of eligible slum dwellers from MIAL slums to Kurla Premier Compound. This decision of MMRDA is a positive move for HDIL as (1)it paves way for Phase-II of the project leading to ramp up in phase-I & II of the project.(2) the development work in phases is likely to help increase TDR generation. We expect TDR generation to exceed 1 msf post two quarters; this is higher from company’s earlier guidance of 0.75-0.9 msf per quarter for FY12 given in their Q4FY11 conference call. (3) Tax rate going forward might be lower than earlier as MAT rate is applicable on TDR sale.”
“MMRDA has commenced shifting of all eligible slum dwellers from MIAL slums to Kurla Premier Compound and also have issued allotment letter for flats to eligible slum dwellers. The total slum dwellering families is ~28,000 families. We believe that almost 75% of the construction work has been completed and most of the buildings are in ready to shift stage. This shifting clears the cloud over the work on the MIAL project. The management, in Q4FY11 conference call, had given a guidance of 0.75-0.9 msf per quarter TDR recognition for FY12. Post the current development, we expect that work on other phases of MIAL project to ramp up and see TDR generation exceed 1 msf post two quarters. This is likely to lead to higher cash generation. Higher TDR generation is likely to make tax rate fall marginally as TDR is taxed at MAT. We maintain a ‘BUY’ on the stock with a NAV based target price of Rs 225 post 20% discount to NAV. Gross airport valuation is at Rs 132 per share,” says PINC Research report.
SOURCE: Buy HDIL; target of Rs 225: PINC Research - Moneycontrol.com -
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IIFL is bullish on Indian Hotels and has recommended buy rating on the stock with a target of Rs 101 in its June 6, 2011 research report.
SHORT-TERM TRADING TIPS - Buy Tech Mahindra; target of Rs 730: IIFL - Moneycontrol.com -
Buy Tech Mahindra; target of Rs 730: IIFL - Moneycontrol.com -: "IIFL is bullish on Tech Mahindra and has recommended buy rating on the stock with a target of Rs 730 in its June 7, 2011 research report.
“Tech Mahindra has given an upside breakout after consolidating in rounding bottom formation which resembles bullish structure. Also, yesterday the stock gave a close above its 200- DMA for the first time since April 2011. Breakout is also seen in daily RSI after formation of rounding bottom, this provide supplementary evidence of sustainable up move in the counter and stock is likely to head towards Rs 730 in the medium term. We advise buying the stock above Rs 705 with stop loss of Rs 697 for an immediate target of Rs 730,” says IIFL research report."
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“Tech Mahindra has given an upside breakout after consolidating in rounding bottom formation which resembles bullish structure. Also, yesterday the stock gave a close above its 200- DMA for the first time since April 2011. Breakout is also seen in daily RSI after formation of rounding bottom, this provide supplementary evidence of sustainable up move in the counter and stock is likely to head towards Rs 730 in the medium term. We advise buying the stock above Rs 705 with stop loss of Rs 697 for an immediate target of Rs 730,” says IIFL research report."
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IIFL is bullish on Ambuja Cements and has recommended buy rating on the stock with a target of Rs 147 in its June 7, 2011 research report.
“Ambuja Cement has broken out of a bullish pattern of inverted head and shoulder above Rs 140 and current pullback can be construed as an attempt of a minor retracement. Based on amplitude of the pattern, it indicates near term target of Rs 150. The daily RSI has been sustaining above the 50 mark reinforcing bullish trend in the counter and any declines is likely to meet with buying interest. Recently stock has pierced above the 200 DMA along with golden cross from 10DMA and 20DMA. Observing price pattern on right shoulder of a ‘bullish belt hold’ on candlestick on indicate very strong support. We advise buying stock in the range of Rs 138- 139 with stop loss of Rs 135 for target of Rs 147. (Duration 5 days),” says IIFL research report.
Buy Ambuja Cements; target of Rs 147: IIFL - Moneycontrol.com -
“Ambuja Cement has broken out of a bullish pattern of inverted head and shoulder above Rs 140 and current pullback can be construed as an attempt of a minor retracement. Based on amplitude of the pattern, it indicates near term target of Rs 150. The daily RSI has been sustaining above the 50 mark reinforcing bullish trend in the counter and any declines is likely to meet with buying interest. Recently stock has pierced above the 200 DMA along with golden cross from 10DMA and 20DMA. Observing price pattern on right shoulder of a ‘bullish belt hold’ on candlestick on indicate very strong support. We advise buying stock in the range of Rs 138- 139 with stop loss of Rs 135 for target of Rs 147. (Duration 5 days),” says IIFL research report.
Buy Ambuja Cements; target of Rs 147: IIFL - Moneycontrol.com -
5/25/11
25 May, 2011, 11.26AM IST,ET Now Shortsell BPCL: Sudarshan Sukhani, Technical Trends
Sudarshan Sukhani , Technical Trends, in a chat with ET Now, give his stock ideas for the day
What are you recommending to the viewers today?
BPCL, it is a short sell. Short selling is done only by professional traders but crude is going up, has gone up 3% in the last two days and crude or no crude, BPCL is not likely to see any kind of significant rally. So this is a sell on every rally, sell even without a rally. We will probably see much more levels here and commodities are not coming down. So that is another disadvantage the stock has. For more stock tips visit WWW.STOCKWALA.SHOUTEM.COM NOW.
SOURCE: ET
What are you recommending to the viewers today?
BPCL, it is a short sell. Short selling is done only by professional traders but crude is going up, has gone up 3% in the last two days and crude or no crude, BPCL is not likely to see any kind of significant rally. So this is a sell on every rally, sell even without a rally. We will probably see much more levels here and commodities are not coming down. So that is another disadvantage the stock has. For more stock tips visit WWW.STOCKWALA.SHOUTEM.COM NOW.
SOURCE: ET
5/19/11
STOCK RECOMMENDATION FROM NETWORTH STOCK BROKING: BUY MARG @ TARGET OF RS.256
Networth Stock Broking is bullish on Marg and has recommended buy rating on the stock with a target of Rs 256 in its May 19, 2011 research report.
5/18/11
RECOMMENDATION FROM ADITYA BIRLA MONEY : BUY BATA INDIA @ TARGET OF RS.490
Aditya Birla Money is bullish on Bata India and has recommended buy rating on the stock with a target of Rs 490 in its May 17, 2011 research report.
“Bata India has been rising in a well defined channel formed joining pivotal highs and lows. After a sharp run up from Rs 16 to 436 the stock had been consolidating in a range bound manner since last four weeks. Last week the stock has breached the consolidation range and resumed its uptrend indicating that prices could now head higher towards the upper band of the rising channel at 520. Weekly momentum though in over bought zone is rising thus supporting our bullish expectations.”
“The stock is trading above all the crucial moving averages (21, 55, 200) indicating that the short term trend is positive. Buy Bata India at CMP Rs 463.70 and on dips to Rs 453 for a target of Rs 490- 500 with stop placed below Rs 438 on closing basis,” says Aditya Birla Money research report. (source: moneycontrol.com)
“Bata India has been rising in a well defined channel formed joining pivotal highs and lows. After a sharp run up from Rs 16 to 436 the stock had been consolidating in a range bound manner since last four weeks. Last week the stock has breached the consolidation range and resumed its uptrend indicating that prices could now head higher towards the upper band of the rising channel at 520. Weekly momentum though in over bought zone is rising thus supporting our bullish expectations.”
“The stock is trading above all the crucial moving averages (21, 55, 200) indicating that the short term trend is positive. Buy Bata India at CMP Rs 463.70 and on dips to Rs 453 for a target of Rs 490- 500 with stop placed below Rs 438 on closing basis,” says Aditya Birla Money research report. (source: moneycontrol.com)
5/16/11
STOCK RECOMMENDATION FROM ANGEL BROKING - BUY NIIT @ TARGET OF RS.68
Angel Broking is bullish on NIIT and has recommended buy rating on the stock with a target of Rs 68 in its May 11, 2011 research report.
“For 4QFY2011, NIIT’s results were in line with our expectations on the revenue front but were disappointing on the operational front. Revenue growth was driven by all businesses, but operational performance was dented due to the SLS business, which posted a 1,557bp yoy dip in EBITDA margin. Consolidated revenue came in at Rs324cr, up 9.8% yoy. Revenue from ILS-IT, SLS and CLS businesses increased by 6.7%, 16.5% and 9.5% yoy to Rs122cr, Rs37cr and Rs153cr, respectively. Revenue from new business grew by 27.2% yoy to Rs11.7cr. Blended EBITDA margin declined by 362bp yoy to 12.5% due to margin decline in all its business segments. EBITDA margin decline in the SLS segment was extensive at 1,557bp yoy to 7.5%. EBITDA margin of the ILS and CLS business segments declined by 205bp and 226bp yoy to 22.6% and 7.9%, respectively.”
“The hiring environment in the Indian IT sector is strengthening, as indicated by Indian IT players such as Infosys and TCS aiming to collectively hire ~1,05,000 people in FY2012. Thus, we expect ILS to record strong growth of 14% yoy in FY2012, with strengthening of the hiring environment expected to result in return in demand for vocational courses. With developed economies such as the US returning to growth, we expect the discretionary spend related to training outsourcing, learning products and managed training services to turn robust and expect 7% yoy growth in the CLS business. At the CMP, the stock is trading at EV/EBITDA of 4.3x FY2013E EBITDA, but the stake in NIIT Technologies provides for strong upside. Hence, we recommend Buy on the stock with a target price of Rs 68,” says Angel Broking research report.
FOR MORE STOCK TIPS AND IDEAS VISIT WWW.STOCKWALA.SHOUTEM.COM
“For 4QFY2011, NIIT’s results were in line with our expectations on the revenue front but were disappointing on the operational front. Revenue growth was driven by all businesses, but operational performance was dented due to the SLS business, which posted a 1,557bp yoy dip in EBITDA margin. Consolidated revenue came in at Rs324cr, up 9.8% yoy. Revenue from ILS-IT, SLS and CLS businesses increased by 6.7%, 16.5% and 9.5% yoy to Rs122cr, Rs37cr and Rs153cr, respectively. Revenue from new business grew by 27.2% yoy to Rs11.7cr. Blended EBITDA margin declined by 362bp yoy to 12.5% due to margin decline in all its business segments. EBITDA margin decline in the SLS segment was extensive at 1,557bp yoy to 7.5%. EBITDA margin of the ILS and CLS business segments declined by 205bp and 226bp yoy to 22.6% and 7.9%, respectively.”
“The hiring environment in the Indian IT sector is strengthening, as indicated by Indian IT players such as Infosys and TCS aiming to collectively hire ~1,05,000 people in FY2012. Thus, we expect ILS to record strong growth of 14% yoy in FY2012, with strengthening of the hiring environment expected to result in return in demand for vocational courses. With developed economies such as the US returning to growth, we expect the discretionary spend related to training outsourcing, learning products and managed training services to turn robust and expect 7% yoy growth in the CLS business. At the CMP, the stock is trading at EV/EBITDA of 4.3x FY2013E EBITDA, but the stake in NIIT Technologies provides for strong upside. Hence, we recommend Buy on the stock with a target price of Rs 68,” says Angel Broking research report.
FOR MORE STOCK TIPS AND IDEAS VISIT WWW.STOCKWALA.SHOUTEM.COM
RECOMMENDATION FROM ANGEL BROKING - Buy Apollo Tyres; target of Rs 82
Angel Broking is bullish on Apollo Tyres and has recommended buy rating on the stock with a target of Rs 82 in its May 11, 2011 research report.
“For 4QFY2011, Apollo Tyres reported better-than-expected top line on a standalone as well as consolidated basis, driven by strong volume growth and higher prices. Standalone operating margin came below expectations due to a steep increase in natural rubber prices, while consolidated margin benefitted due to gain of Rs90cr on account of pension and inventory revaluations.”
“Standalone top line registered strong 34.2% yoy (23% qoq) growth to Rs1,762cr, led by higher volumes (up 14% yoy) and prices. After three straight quarters of declining volumes, the company reported higher volumes in 4QFY2011, led by pick-up in demand in the replacement segment. Operating margin declined considerably by 575bp yoy and 209bp qoq to 8.3% mainly due to the 60% yoy and 16% qoq increase in natural rubber cost. Thus, net profit recorded a sharp 43% yoy decline to Rs66cr, though sequentially it grew by 22.8%. Noticeably, higher other income and lower tax rate on account of MAT credits positively helped the company’s bottom line.”
“Consolidated net revenue grew by 27.4% yoy (15.2% qoq) to Rs2,730cr due to a 12% yoy increase in volumes and a 15.6% jump in average realisation. In 4QFY2011, revenue of South African and European operations grew by 31% and 10% yoy, respectively. Operating margin declined by 215bp yoy to 11.8%, but improved by 24bp qoq. Operating performance benefitted due to gain of Rs90cr on account of pension and inventory revaluations. Net profit grew by 9.6% yoy (59.4% qoq) to Rs193cr.”
“We remain positive on the tyre industry in view of the structural shift that the industry is going through. We expect the company to deliver a healthy revenue CAGR of 15.3% over FY2011–13E, as the production ramp up at the Chennai facility continues as scheduled. However, volatile raw-material prices are a concern, and we expect margins to remain under pressure. We estimate the company to post EPS of Rs10.3 in FY2013. We maintain our Buy view with a target price of Rs 82, valuing it at 8.0x FY2013E earnings,” says Angel Broking research report.
FOR MORE STOCK TIPS AND IDEAS VISIT WWW.STOCKWALA.SHOUTEM.COM
“For 4QFY2011, Apollo Tyres reported better-than-expected top line on a standalone as well as consolidated basis, driven by strong volume growth and higher prices. Standalone operating margin came below expectations due to a steep increase in natural rubber prices, while consolidated margin benefitted due to gain of Rs90cr on account of pension and inventory revaluations.”
“Standalone top line registered strong 34.2% yoy (23% qoq) growth to Rs1,762cr, led by higher volumes (up 14% yoy) and prices. After three straight quarters of declining volumes, the company reported higher volumes in 4QFY2011, led by pick-up in demand in the replacement segment. Operating margin declined considerably by 575bp yoy and 209bp qoq to 8.3% mainly due to the 60% yoy and 16% qoq increase in natural rubber cost. Thus, net profit recorded a sharp 43% yoy decline to Rs66cr, though sequentially it grew by 22.8%. Noticeably, higher other income and lower tax rate on account of MAT credits positively helped the company’s bottom line.”
“Consolidated net revenue grew by 27.4% yoy (15.2% qoq) to Rs2,730cr due to a 12% yoy increase in volumes and a 15.6% jump in average realisation. In 4QFY2011, revenue of South African and European operations grew by 31% and 10% yoy, respectively. Operating margin declined by 215bp yoy to 11.8%, but improved by 24bp qoq. Operating performance benefitted due to gain of Rs90cr on account of pension and inventory revaluations. Net profit grew by 9.6% yoy (59.4% qoq) to Rs193cr.”
“We remain positive on the tyre industry in view of the structural shift that the industry is going through. We expect the company to deliver a healthy revenue CAGR of 15.3% over FY2011–13E, as the production ramp up at the Chennai facility continues as scheduled. However, volatile raw-material prices are a concern, and we expect margins to remain under pressure. We estimate the company to post EPS of Rs10.3 in FY2013. We maintain our Buy view with a target price of Rs 82, valuing it at 8.0x FY2013E earnings,” says Angel Broking research report.
FOR MORE STOCK TIPS AND IDEAS VISIT WWW.STOCKWALA.SHOUTEM.COM
5/15/11
KNOW HOW TO TRADE IN GOLD - Want to trade in gold?
Gold is catching eyeballs of traders in the market. That should not come as a surprise given the fact that gold is trading at Rs 2,195/gram currently after beginning the year much lower at Rs 2,057/gram. It touched Rs 2,248/gram early this month. You can also cash-in on this opportunity with the an outlay of just Rs 9,000; that is the margin required for trading in Gold Mini on MCX.
5/9/11
STOCK INVESTMENT MADE SIMPLE - TIPS AND TRICKS
Investing in direct equity may not be everyone's cup of tea, but it isn't very complicated either. As long as you are aware of the risks involved, following some simple rules and applying a lot of common sense may help you pick the right stocks. The key is to un- derstand the company instead of relying on tips from friends and brokers.
Look around you Let's refer to a “Lynchlike“ ap- proach (courtesy One Up on Wall Street by Peter Lynch) to investing in stocks, which en- courages looking around you for stock ideas. The best place to begin looking is your own home, in your weekly shopping list or among the things you use daily.
Have you noticed how the word “Parachute“ has become synonymous with coconut oil and “Saffola“ with refined cook- ing oil? Look further and you'll find the same company, Marico Ltd, manufactures both the products and also owns a top skincare chain, Kaya Skin Clinic.
Havells India Ltd (switchboards and fans), Dabur India Ltd (REAL fruit juice and honey) and Pidilite Industries Ltd (Fevicol, Fevi Stik and M-Seal) are a few more stock ideas you can get from things you see or use.
If you run out of ideas in your house, look out of your window and you'll find many more ideas staring at you. For instance, Ba- jaj Auto Ltd (motorcycles and scooters) and Shree Cement Ltd (cement). Stock prices of these companies have increased be- tween 16.9% and 32.26% com- pounded annual growth rate (CAGR) in the last five years ow- ing to a spurt in consumption and infrastructure investment in the Indian economy. Com- pared with this, the Nifty index has yielded 10.91% CAGR over the same period.
Look at Bharti Airtel Ltd--15 years ago, few could afford to own a cellphone; today almost everyone has one. A thought about your own cellphone us- age over the years will confirm the theory. Since 2002, the stock has risen almost 10 times.
Do some research Once you have narrowed down on an idea, begin your re- search. Start by analysing basic parameters such as sales and profit growth over the last few years. The relevant data can be found in the archives of www.nseindia.com or on the official website of the company.
Next, dig in a little deeper.
Debt: Taking a loan means interest payment, which can strain the earnings of a compa- ny just as a housing loan strains the income of a family.
While looking at the balance sheet, compare the amount of debt versus shareholder's eq- uity; typically, a ratio under 2:1 is considered healthy.
Return on equity (ROE): This is basically a company's earn- ings (net profit) divided by the shareholder's equity. This ra- tio shows how much profit a company generates on share- holders' money. It is an indica- tion of the level of return you can expect to make.
For example, Asian Paints Ltd is a high-growth business benefiting from the real estate boom in the country over the last 10 years. The ROE for the company, as per its annual report, has consistently remain- ed above 30% for the last five years and at 56% for 2009-10.
ROE doesn't necessarily translate into stock returns in a particular year; rather it is an indication of returns to be made over a period of time.
For instance, the annual re- turns of Asian Paints have been positive every year in the last five financial years, except in 2008-09, when even the ROE and net profit declined. Since the business (net profit) has continued to grow, the stock price increased close to 160% in 2009-10. This reflects a con- sistently high ROE and makes up for the lost returns (stock price) in the previous year.
Typically, stock returns are higher than ROE if growth ex- pectations are high and lower if growth expectations are low. Cash on books: Looking at this number helps determine the company's ability to pay back any debt and continue its operations along with manag- ing growth and expansion. As- certain the cash available with the company and also see if it is being utilized to enhance as- sets and operations.
Price-earnings (P-E) multi- ple: An important market- linked consideration, P-E is the net profit divided by the number of shares issued. It in- dicates whether the stock price is in line with expected earn- ings growth rate. As a rule of thumb, a high growth compa- ny should have a relatively higher P-E as compared with others in the same industry.
Further, P-E of a company changes with changes in its earnings perception. P-E needs to be seen in the context of the industry or the compa- ny's own historical P-E.
For instance, Bajaj Auto's P-E in May 2008 was 11.1 com- pared with 16 for Hero Honda Motors Ltd. Hero Honda had posted a 32% increase in net profit for 2008-09 versus a de- cline of 16% for Bajaj Auto. In 2010, the Indian two-wheeler industry grew 23%. Moreover, innovations, product launch and positioning helped Bajaj Auto recover. Subsequently, its stock price increased and so did its P-E--it was 16.9 in April 2010 following a stock price and earnings growth of 200% and 160%, respectively. It was now on par with Hero Honda's P-E of 17.4. Bajaj Auto was very attractive at a low P-E given that its future growth pros- pects hadn't diminished much. Others: A few more checks to run include the shareholding pattern and dividend history.
Additionally, through new and published reports try to track the top management of the company; people are key to businesses.
Go by fundamentals, not trends While in one quarter, bank- ing stocks could be in favour, metals could take over in the next. But don't get swayed by the trend and instead keep your focus tight on company funda- mentals. By following a trend, you may end up buying close to the peak and selling too soon if the stock shows weakness.
Also, just because the stock price falls doesn't mean you panic and sell. As long as the fundamentals are sound, you need not sell. For instance, in the second half of 2008, Havells corrected 50% in six months.
However, the fundamentals of the company, driven by domes- tic demand and consumption, had not changed significantly to warrant such a sharp correction.
Investing in Havells at that time would have yielded returns of nearly 75% CAGR today.
Track your stock Once you've bought your stock, read up about the compa- ny, follow the management's re- leases and implications of any new announcements. Also, track other things such as raw material costs, change in prod- ucts portfolio or prices, changes in the management profile and ownership. Sometimes even the government regulation impacts products and prices. A good source of information is the an- nual report published at the end of every financial year.
Remember that stock market investment works only in the long term, so you will have to take near-term volatility in your stride. Investing in stocks need not be a daunting task, just ap- ply your good judgement.
Disclaimer: The stocks men- tioned in this article are not recommendations. The compa- nies will have to be studied be- fore investing. (SOURCE:WWW.LIVEMINT.COM)
CLICK 2 EARN MONEY :
Look around you Let's refer to a “Lynchlike“ ap- proach (courtesy One Up on Wall Street by Peter Lynch) to investing in stocks, which en- courages looking around you for stock ideas. The best place to begin looking is your own home, in your weekly shopping list or among the things you use daily.
Have you noticed how the word “Parachute“ has become synonymous with coconut oil and “Saffola“ with refined cook- ing oil? Look further and you'll find the same company, Marico Ltd, manufactures both the products and also owns a top skincare chain, Kaya Skin Clinic.
Havells India Ltd (switchboards and fans), Dabur India Ltd (REAL fruit juice and honey) and Pidilite Industries Ltd (Fevicol, Fevi Stik and M-Seal) are a few more stock ideas you can get from things you see or use.
If you run out of ideas in your house, look out of your window and you'll find many more ideas staring at you. For instance, Ba- jaj Auto Ltd (motorcycles and scooters) and Shree Cement Ltd (cement). Stock prices of these companies have increased be- tween 16.9% and 32.26% com- pounded annual growth rate (CAGR) in the last five years ow- ing to a spurt in consumption and infrastructure investment in the Indian economy. Com- pared with this, the Nifty index has yielded 10.91% CAGR over the same period.
Look at Bharti Airtel Ltd--15 years ago, few could afford to own a cellphone; today almost everyone has one. A thought about your own cellphone us- age over the years will confirm the theory. Since 2002, the stock has risen almost 10 times.
Do some research Once you have narrowed down on an idea, begin your re- search. Start by analysing basic parameters such as sales and profit growth over the last few years. The relevant data can be found in the archives of www.nseindia.com or on the official website of the company.
Next, dig in a little deeper.
Debt: Taking a loan means interest payment, which can strain the earnings of a compa- ny just as a housing loan strains the income of a family.
While looking at the balance sheet, compare the amount of debt versus shareholder's eq- uity; typically, a ratio under 2:1 is considered healthy.
Return on equity (ROE): This is basically a company's earn- ings (net profit) divided by the shareholder's equity. This ra- tio shows how much profit a company generates on share- holders' money. It is an indica- tion of the level of return you can expect to make.
For example, Asian Paints Ltd is a high-growth business benefiting from the real estate boom in the country over the last 10 years. The ROE for the company, as per its annual report, has consistently remain- ed above 30% for the last five years and at 56% for 2009-10.
ROE doesn't necessarily translate into stock returns in a particular year; rather it is an indication of returns to be made over a period of time.
For instance, the annual re- turns of Asian Paints have been positive every year in the last five financial years, except in 2008-09, when even the ROE and net profit declined. Since the business (net profit) has continued to grow, the stock price increased close to 160% in 2009-10. This reflects a con- sistently high ROE and makes up for the lost returns (stock price) in the previous year.
Typically, stock returns are higher than ROE if growth ex- pectations are high and lower if growth expectations are low. Cash on books: Looking at this number helps determine the company's ability to pay back any debt and continue its operations along with manag- ing growth and expansion. As- certain the cash available with the company and also see if it is being utilized to enhance as- sets and operations.
Price-earnings (P-E) multi- ple: An important market- linked consideration, P-E is the net profit divided by the number of shares issued. It in- dicates whether the stock price is in line with expected earn- ings growth rate. As a rule of thumb, a high growth compa- ny should have a relatively higher P-E as compared with others in the same industry.
Further, P-E of a company changes with changes in its earnings perception. P-E needs to be seen in the context of the industry or the compa- ny's own historical P-E.
For instance, Bajaj Auto's P-E in May 2008 was 11.1 com- pared with 16 for Hero Honda Motors Ltd. Hero Honda had posted a 32% increase in net profit for 2008-09 versus a de- cline of 16% for Bajaj Auto. In 2010, the Indian two-wheeler industry grew 23%. Moreover, innovations, product launch and positioning helped Bajaj Auto recover. Subsequently, its stock price increased and so did its P-E--it was 16.9 in April 2010 following a stock price and earnings growth of 200% and 160%, respectively. It was now on par with Hero Honda's P-E of 17.4. Bajaj Auto was very attractive at a low P-E given that its future growth pros- pects hadn't diminished much. Others: A few more checks to run include the shareholding pattern and dividend history.
Additionally, through new and published reports try to track the top management of the company; people are key to businesses.
Go by fundamentals, not trends While in one quarter, bank- ing stocks could be in favour, metals could take over in the next. But don't get swayed by the trend and instead keep your focus tight on company funda- mentals. By following a trend, you may end up buying close to the peak and selling too soon if the stock shows weakness.
Also, just because the stock price falls doesn't mean you panic and sell. As long as the fundamentals are sound, you need not sell. For instance, in the second half of 2008, Havells corrected 50% in six months.
However, the fundamentals of the company, driven by domes- tic demand and consumption, had not changed significantly to warrant such a sharp correction.
Investing in Havells at that time would have yielded returns of nearly 75% CAGR today.
Track your stock Once you've bought your stock, read up about the compa- ny, follow the management's re- leases and implications of any new announcements. Also, track other things such as raw material costs, change in prod- ucts portfolio or prices, changes in the management profile and ownership. Sometimes even the government regulation impacts products and prices. A good source of information is the an- nual report published at the end of every financial year.
Remember that stock market investment works only in the long term, so you will have to take near-term volatility in your stride. Investing in stocks need not be a daunting task, just ap- ply your good judgement.
Disclaimer: The stocks men- tioned in this article are not recommendations. The compa- nies will have to be studied be- fore investing. (SOURCE:WWW.LIVEMINT.COM)
CLICK 2 EARN MONEY :
Earn Credits Worth Rs 50 On Dealivore By Referring Friends And Help Your Friends Get Rs 50 On Dealivore @ WWW.DEALIVORE.COM NOW
VISIT :STOCKINDIA.SLINKSET.COM>FOR MORE STOCK TIPS AND NEWS****VISIT :BEST EARN MONEY & BEST WEBSITES INFOANGEL BROKING RECOMMENDS : BUY CIPLA @ TARGET OF RS.377
Angel Broking is bullish on Cipla and has recommended buy rating on the stock with a target of Rs 377 in its May 5, 2011 research report.
“For 4QFY2011, Cipla reported mixed numbers with top-line growth beating our estimates but margin and bottom-line performance coming in below our expectations. The Indore SEZ (Rs900cr invested) is expected to contribute ~10% to Cipla’s total revenue in FY2012, which would boost its overall growth as well as margins.”
“For 4QFY2011, Cipla reported net sales of Rs1,615cr (Rs1,317cr), growth of 22.6% yoy and above our estimates of Rs1,478cr. Gross margin reported a dip of 310bp yoy to 50.5% (53.6%). Raw-material costs increased during the quarter due to change in product mix, which had higher proportion of anti-retrovirals in formulation exports. OPM came in at 15.4% (15.2%), led by increased manpower cost and negative contribution of Indore SEZ, as it is in the optimisation phase. Overall, other operating income reported a drop of 5.6% yoy to Rs54cr (Rs57cr) in 4QFY2011. Furthermore, adjusted net profit came in at Rs214cr (Rs181cr), growth of 18.5% yoy, lower than our estimates due to increased depreciation and interest costs during the quarter.”
“We have revised our estimates and expect net sales to post a 16.6% CAGR to Rs 8322 cr and EPS to record a 25.2% CAGR to Rs18.9 over FY2011–13E. The stock is trading at 19.9x and 16.1x FY2012E and FY2013E earnings, respectively. We recommend Buy on the stock with a revised target price of Rs 377,” says Angel Broking research report.
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“For 4QFY2011, Cipla reported mixed numbers with top-line growth beating our estimates but margin and bottom-line performance coming in below our expectations. The Indore SEZ (Rs900cr invested) is expected to contribute ~10% to Cipla’s total revenue in FY2012, which would boost its overall growth as well as margins.”
“For 4QFY2011, Cipla reported net sales of Rs1,615cr (Rs1,317cr), growth of 22.6% yoy and above our estimates of Rs1,478cr. Gross margin reported a dip of 310bp yoy to 50.5% (53.6%). Raw-material costs increased during the quarter due to change in product mix, which had higher proportion of anti-retrovirals in formulation exports. OPM came in at 15.4% (15.2%), led by increased manpower cost and negative contribution of Indore SEZ, as it is in the optimisation phase. Overall, other operating income reported a drop of 5.6% yoy to Rs54cr (Rs57cr) in 4QFY2011. Furthermore, adjusted net profit came in at Rs214cr (Rs181cr), growth of 18.5% yoy, lower than our estimates due to increased depreciation and interest costs during the quarter.”
“We have revised our estimates and expect net sales to post a 16.6% CAGR to Rs 8322 cr and EPS to record a 25.2% CAGR to Rs18.9 over FY2011–13E. The stock is trading at 19.9x and 16.1x FY2012E and FY2013E earnings, respectively. We recommend Buy on the stock with a revised target price of Rs 377,” says Angel Broking research report.
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PINC Research recommends - Buy NIIT Tech; target of Rs 285
PINC Research is bullish on NIIT Technologies and has recommended buy rating on the stock with a target of Rs 285 in its May 6, 2011 research report.
“NIIT Technologies reported revenue growth of 9.2%QoQ to Rs 3,123 million led by strong volume growth of 7.8%QoQ (excl. hardware revenues). Onsite shift in revenue impacted margin, which was lower than expectation. Lower taxes (due to lower India revenue) led to in-line expected PAT. Robust growth in revenue, PAT and EPS in-line with estimates – Overall revenue grew 5%QoQ to Rs 3,157 million (PINCe Rs 3,078 million). EBITDA margin declined 20bpsQoQ to 20.5%, PAT stood at Rs 500 million (PINCe Rs 511 million), growth of 6.5%QoQ and EPS grew 4.9%QoQ to Rs 8.5 (PINCe Rs 8.6).”
“EMEA and US each grew 9.2%QoQ with each contributing 35% to the revenue. APAC and India with each 15% contribution to revenue grew 17%QoQ and 2.3%QoQ, respectively. BSF deal is almost over and next year we will see only small hardware revenues. Among verticals, Transport and Logistics grew 16%QoQ, BFSI grew 6.5%QoQ but Retail & Manufacturing declined 15.1%QoQ due to ramp down at a Japanese client. Top 5 clients grew 12.8%QoQ and top 20 clients grew 10.9%QoQ. During the quarter four new clients were added, of which one was from EMEA and three were from RoW. Utilisation rate declined marginally by 80bpsQoQ to 83.6%. Non-linear services grew 8%QoQ with 27% contribution to overall revenue. There was net addition of 448 employees taking the total headcount to 5,806.”
“Fresh order intake was USD116mn taking the order book executable over the next 12 months to USD169mn, which does not include any hardware revenues. We have downward revised our EBITDA margin expectations for FY12 but it is expected to improve in FY12 compared to FY11 due to absence of hardware revenues and improvement in non-linear revenues with increased traction in managed services. At CMP, NIIT Tech trades at 6.2x and 5.4x FY12E and FY13E earnings, respectively. We maintain ‘BUY’ recommendation on the stock with a revised target price of Rs 285 (Rs 300 earlier) based on 8xFY13E earnings,” says PINC Research report.(source: moneycontrol.com)
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“NIIT Technologies reported revenue growth of 9.2%QoQ to Rs 3,123 million led by strong volume growth of 7.8%QoQ (excl. hardware revenues). Onsite shift in revenue impacted margin, which was lower than expectation. Lower taxes (due to lower India revenue) led to in-line expected PAT. Robust growth in revenue, PAT and EPS in-line with estimates – Overall revenue grew 5%QoQ to Rs 3,157 million (PINCe Rs 3,078 million). EBITDA margin declined 20bpsQoQ to 20.5%, PAT stood at Rs 500 million (PINCe Rs 511 million), growth of 6.5%QoQ and EPS grew 4.9%QoQ to Rs 8.5 (PINCe Rs 8.6).”
“EMEA and US each grew 9.2%QoQ with each contributing 35% to the revenue. APAC and India with each 15% contribution to revenue grew 17%QoQ and 2.3%QoQ, respectively. BSF deal is almost over and next year we will see only small hardware revenues. Among verticals, Transport and Logistics grew 16%QoQ, BFSI grew 6.5%QoQ but Retail & Manufacturing declined 15.1%QoQ due to ramp down at a Japanese client. Top 5 clients grew 12.8%QoQ and top 20 clients grew 10.9%QoQ. During the quarter four new clients were added, of which one was from EMEA and three were from RoW. Utilisation rate declined marginally by 80bpsQoQ to 83.6%. Non-linear services grew 8%QoQ with 27% contribution to overall revenue. There was net addition of 448 employees taking the total headcount to 5,806.”
“Fresh order intake was USD116mn taking the order book executable over the next 12 months to USD169mn, which does not include any hardware revenues. We have downward revised our EBITDA margin expectations for FY12 but it is expected to improve in FY12 compared to FY11 due to absence of hardware revenues and improvement in non-linear revenues with increased traction in managed services. At CMP, NIIT Tech trades at 6.2x and 5.4x FY12E and FY13E earnings, respectively. We maintain ‘BUY’ recommendation on the stock with a revised target price of Rs 285 (Rs 300 earlier) based on 8xFY13E earnings,” says PINC Research report.(source: moneycontrol.com)
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MEDIUM-TERM TRADING TIPS - BUY V-GUARD INDUSTRIES
ACCORDING TO BUSINESS ONLINE : Investors with medium-term horizon can consider buying the stock of V-Guard Industries (Rs 191.7). The company is a leading manufacturer of voltage stabilisers and also manufactures water heaters, fans and low-tension power cables. After bottoming at Rs 38 in March 2009, the stock has been on steady long-term uptrend forming rising peaks and troughs.
However, the stock reversed direction since marking an all-time high at Rs 215 in early November 2010. It was on a medium-term corrective downtrend since then. After retracing 38.2 per cent Fibonacci retracement level of its prior uptrend, the stock found support from its long-term uptrend-line around Rs 146 in February 2011.
Medium-term trend is also up for V-Guard from this February trough. In late March, the stock conclusively breached its moving average compression (21, 50, and 200-day moving averages) around Rs 164 and in early April it emphatically broke through its key medium-term resistance at Rs 180. The 14-day relative strength index, which determines the speed and alteration of price movements, has re-entered in to the bullish zone and weekly RSI has entered in to this zone from the neutral region. Daily and weekly moving average convergence divergence indicators are featuring in the positive territory. Further, daily and weekly price rate of change indicators are hovering in the positive terrain signalling buying interest. Both long and medium-term uptrend-lines are in tact.
We are bullish on the stock from a medium-term perspective. We believe that V-Guard Industries has the potential to move higher and reach our medium-term price target of Rs 230, following a minor consolidation around Rs 210. Investors with medium-term horizon can consider buying the stock with stop-loss at Rs 172.
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However, the stock reversed direction since marking an all-time high at Rs 215 in early November 2010. It was on a medium-term corrective downtrend since then. After retracing 38.2 per cent Fibonacci retracement level of its prior uptrend, the stock found support from its long-term uptrend-line around Rs 146 in February 2011.
Medium-term trend is also up for V-Guard from this February trough. In late March, the stock conclusively breached its moving average compression (21, 50, and 200-day moving averages) around Rs 164 and in early April it emphatically broke through its key medium-term resistance at Rs 180. The 14-day relative strength index, which determines the speed and alteration of price movements, has re-entered in to the bullish zone and weekly RSI has entered in to this zone from the neutral region. Daily and weekly moving average convergence divergence indicators are featuring in the positive territory. Further, daily and weekly price rate of change indicators are hovering in the positive terrain signalling buying interest. Both long and medium-term uptrend-lines are in tact.
We are bullish on the stock from a medium-term perspective. We believe that V-Guard Industries has the potential to move higher and reach our medium-term price target of Rs 230, following a minor consolidation around Rs 210. Investors with medium-term horizon can consider buying the stock with stop-loss at Rs 172.
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5/5/11
SHORT-TERM TRADING TIPS - BUY 3i INFOTECH AT RS.50.1
HINDUBUSINESSLINE REPORTS : We recommend a buy in the stock of 3i Infotech. It is seen from the charts that they stock found support at its long-term base in the band between Rs 38 and Rs 40 in February 2011. After re-testing this significant support in mid-March, it bottomed. A medimum-term uptrend then started, triggered by positive divergence in the weekly relative strength index. On April 25, the stock decisively broke through its medium-term downtrend-line that was in place since November 2010. Further, reinforcing the uptrend, the stock penetrated its immediate resistance positioned at Rs 48 by jumping 6 per cent on Thursday. We notice that there has been an increase in volumes over the past six trading sessions. Daily moving average convergence divergence indicator has signalled a buy and is hovering in the positive territory implying upward momentum. We are bullish on 3i Infotech from a short-term horizon. We anticipate its up-move to continue until it reaches our price target of Rs 52 or Rs 53.5. Traders with short-term perspective can buy the stock with stop-loss at Rs 48.5.
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SHORT-TERM TRADING TIPS - BUY VIDEOCON INDUSTRIES
YOGANAND OF BUSINESSLINE recommend a buy in the stock of Videocon Industries from a short-term perspective. It is evident from the charts of the stock that following an intermediate-term downtrend from its October 2010 peak, the stock found support at its March 2011 low of Rs 175. The stock reversed direction triggered by positive divergence in daily moving average convergence divergence and price rate of change indicators. It has been on a short-term uptrend since then.
On April 29, the stock jumped four per cent penetrating its 21- and 50-day moving averages, showing signs of bullishness. Reinforcing the bullish momentum, the stock advanced almost two per cent on Monday. Daily MACD has signalled a buy and is featuring in the positive territory indicating upward momentum. We are bullish on the stock from a short-term horizon. We expect the stock to move higher until it touches our price target of Rs 207.5 or Rs 213.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 195 levels. (Source: http://www.thehindubusinessline.com ).
On April 29, the stock jumped four per cent penetrating its 21- and 50-day moving averages, showing signs of bullishness. Reinforcing the bullish momentum, the stock advanced almost two per cent on Monday. Daily MACD has signalled a buy and is featuring in the positive territory indicating upward momentum. We are bullish on the stock from a short-term horizon. We expect the stock to move higher until it touches our price target of Rs 207.5 or Rs 213.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 195 levels. (Source: http://www.thehindubusinessline.com ).
5/4/11
WATCH STOCK RECOMMENDATION VIDEO : Petronet LNG can test Rs 140: Rajesh Jain
Petronet LNG can test Rs 140, says Rajesh Jain, Independent Market Strategist. WATCH THE VIDEO TO KNOW MORE ABOUT THIS STRATEGY AND TIPS :
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VIDEO: Gold to be lower but not as much as silver: Vertex Sec
Ashok Mittal of Vertex Securities, in an interview with CNBC-TV18's Mitali Mukherjee and Udayan Mukherjee, spoke about some commodity strategies and how are they expected to react going forward.
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VIDEO : Be aware of risk in banks, look for more weakness: Udayan
CNBC TV18's managing editor Udayan Mukherjee says banks will have heavy newsflow to contend with for the next few weeks if not the next couple of quarters. WATCH THE VIDEO NOW FOR MORE DETAILS :
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4/28/11
MEDIUM TERM STOCK - TIPSADITYA BIRLA MONEY RECOMMENDS TO BUY GODREJ INDUSTRIES
Aditya Birla Money is bullish on Godrej Industries and has recommended buy rating on the stock with a target of Rs 195/200 in its April 27, 2011 research report.
“Godrej Industries, prices are in a medium-term up trend from the February low of Rs 154 however have pulled back slightly and consolidating above the support zone formed by the 55-day and 200-day EMA over the last few weeks. Momentum in oscillators RSI (14) and Stochastic (14, 3, 3) is mixed to weak on daily charts but is positive on the weekly charts. Hence prices could witness minor dips towards the lower end of aforesaid support zone near Rs 180 remain in shortrun but are expected to turn positive towards Rs 194 and higher eventually.”
“On the upside, short-term falling trend line near Rs 186/187 acts as immediate resistance. Early break above it is likely to negate the possibility of further dips and turn the sentiments positive. Buy Godrej Industries initially above Rs 186 and on dips to Rs 182, with a closing stop of Rs 179 for a possible target of Rs 195/200,” says Aditya Birla Money research report. (SOURCE: MONEYCONTROL.COM)
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“Godrej Industries, prices are in a medium-term up trend from the February low of Rs 154 however have pulled back slightly and consolidating above the support zone formed by the 55-day and 200-day EMA over the last few weeks. Momentum in oscillators RSI (14) and Stochastic (14, 3, 3) is mixed to weak on daily charts but is positive on the weekly charts. Hence prices could witness minor dips towards the lower end of aforesaid support zone near Rs 180 remain in shortrun but are expected to turn positive towards Rs 194 and higher eventually.”
“On the upside, short-term falling trend line near Rs 186/187 acts as immediate resistance. Early break above it is likely to negate the possibility of further dips and turn the sentiments positive. Buy Godrej Industries initially above Rs 186 and on dips to Rs 182, with a closing stop of Rs 179 for a possible target of Rs 195/200,” says Aditya Birla Money research report. (SOURCE: MONEYCONTROL.COM)
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STOCK TIPS 4 ALL - IIFL RECOMMENDS A BUY BIOCON @ TARGET OF RS.398
IIFL is bullish on Biocon and has recommended buy rating on the stock with a target of Rs 398 in its April 27, 2011 research report.
“Biocon had been consolidating in a range between the levels of Rs 360-378 for last two weeks. On Tuesday, in a weak market, the stock broke past the upper-end of the trading range. The stock is witnessing strong accumulation at current levels, which suggest that it may eventually result into an upward breakout. Furthermore, the stock had been consolidating above its 200-DMA for last two weeks. A break above Rs 340 could lead to a fresh directional move in the same direction. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock above Rs 384 with stop loss of Rs 377 for target of Rs 398,” says IIFL research report. (source: moneycontrol.com)
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“Biocon had been consolidating in a range between the levels of Rs 360-378 for last two weeks. On Tuesday, in a weak market, the stock broke past the upper-end of the trading range. The stock is witnessing strong accumulation at current levels, which suggest that it may eventually result into an upward breakout. Furthermore, the stock had been consolidating above its 200-DMA for last two weeks. A break above Rs 340 could lead to a fresh directional move in the same direction. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock above Rs 384 with stop loss of Rs 377 for target of Rs 398,” says IIFL research report. (source: moneycontrol.com)
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STOCK TIPS 4 U : BUY RELIANCE INDUSTRIES @ TARGET OF RS.1189 - ANGEL BROKING
Angel Broking is bullish on Reliance Industries (RIL) and has recommended buy rating on the stock with a target of Rs 1189 in its April 23, 2011 research report.
“Reliance Industries (RIL) reported 14.1% yoy growth in its bottom line due to higher refining and petrochemical margins for 4QFY2011. On a qoq basis, PAT growth was restricted to 4.7% because of the dip in production from KG-D6 field. Overall, numbers were below our expectations on the top-line and bottom-line fronts on account of lower-than-expected refining margins (due to the impact of FCCU shutdown) and output from KG-D6 field.”
“RIL’s top line increased by 26.2% yoy to Rs 72,674 crore (Rs 57,570 crore), primarily on the back of 22.3% yoy growth in refining revenue to Rs 62,704 crore (Rs 51,250 crore) and a 17.8% yoy increase in petrochemical revenue to Rs 18,194 crore (Rs 15,448 crore). Growth in the refining and petrochemical segments was due to higher product prices. Crude oil processed during the quarter was flat at 16.7mn tonnes. KG-D6 gas production declined sequentially, with average production at 51mmscmd (54.5mmscmd). Operating profit grew by 7.7% yoy to Rs 9,843 crore (Rs 9,136 crore), which was below our estimate due to lower-than-expected refining margins.”
“RIL’s extant businesses (refining and petrochemical) have been doing quite well and we expect the company to report higher refining margins in the coming quarters as FCCU of DTA Refinery has started. On the petrochemical side, we do not expect margins to fall below the current level. However, there are some concerns on the KG basin gas output. Nevertheless, we believe RIL’s deal with BP deal is a positive one, as the combined expertise of both the parties will result in optimisation of producing blocks and enhancement of resources in exploratory blocks. Thus, timely ramp-up in producing fields would improve investor confidence and lead to factor other prospective basins as well. We maintain our Buy rating on RIL with an SOTP-based target price of Rs 1,189,” says Angel Broking research report.
SOURCE: MONEYCONTROL.COM
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“Reliance Industries (RIL) reported 14.1% yoy growth in its bottom line due to higher refining and petrochemical margins for 4QFY2011. On a qoq basis, PAT growth was restricted to 4.7% because of the dip in production from KG-D6 field. Overall, numbers were below our expectations on the top-line and bottom-line fronts on account of lower-than-expected refining margins (due to the impact of FCCU shutdown) and output from KG-D6 field.”
“RIL’s top line increased by 26.2% yoy to Rs 72,674 crore (Rs 57,570 crore), primarily on the back of 22.3% yoy growth in refining revenue to Rs 62,704 crore (Rs 51,250 crore) and a 17.8% yoy increase in petrochemical revenue to Rs 18,194 crore (Rs 15,448 crore). Growth in the refining and petrochemical segments was due to higher product prices. Crude oil processed during the quarter was flat at 16.7mn tonnes. KG-D6 gas production declined sequentially, with average production at 51mmscmd (54.5mmscmd). Operating profit grew by 7.7% yoy to Rs 9,843 crore (Rs 9,136 crore), which was below our estimate due to lower-than-expected refining margins.”
“RIL’s extant businesses (refining and petrochemical) have been doing quite well and we expect the company to report higher refining margins in the coming quarters as FCCU of DTA Refinery has started. On the petrochemical side, we do not expect margins to fall below the current level. However, there are some concerns on the KG basin gas output. Nevertheless, we believe RIL’s deal with BP deal is a positive one, as the combined expertise of both the parties will result in optimisation of producing blocks and enhancement of resources in exploratory blocks. Thus, timely ramp-up in producing fields would improve investor confidence and lead to factor other prospective basins as well. We maintain our Buy rating on RIL with an SOTP-based target price of Rs 1,189,” says Angel Broking research report.
SOURCE: MONEYCONTROL.COM
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STOCK TIPS 4 ALL - BUY MOIL @ TARGET OF RS.448 : A C CHOKSI
A C Choksi is bullish on MOIL and has recommended buy rating on the stock with a target of Rs 448 in its April 26, 2011 research report.
“MOIL, demand for manganese ore is derived from steel, as the steel consumption is expected to increase in future years, the manganese ore consumption is also likely to follow. The company being the largest producer of manganese ore by volume in India having access to 21.7 million tonnes of proved and probable reserves and a total of 61.3 million tonnes of resources (as per JORC code refer )is likely to gain the most under such a scenario. In the high interest cost environment, MOIL is immune to increase in interest rates at least directly, because it doesn't have the burden of debt in its balance sheet. That's one reason for its high PAT Margins (48.03% for FY 10).”
“Production capacities in manganese alloys have been on the rise during the past ten years. The capacity increases by about 19-20% each year, whereas the domestic demand increases by 17-18%. In light of the brighter future potential for steel sector, global demand for ferro alloys is expected to be robust; the company is planning to encash this opportunity by entering into joint ventures with SAIL & RINL for setting up ferro manganese and silico manganese plant. Collectively, this is expected to expand the ferro manganese capacity by 51,000 Tonnes per annum and silico manganese capacity by 112,500 Tonnes per annum.”
“We expect MOIL's Sales, EBITDA & PAT to grow at a 2 year CAGR of 19%, 24% & 24% respectively till FY 12 E. We expect MOIL's Sales, EBITDA & PAT to grow at a 2 year CAGR of 19%, 24% & 24% respectively till FY 12 E. We have employed the EV/EBITDA method for valuing MOIL. MOIL is currently trading at 5.1 times(x) and 4.4 times(x) EV upon FY 11 E & FY 12 E forward EBITDA. We assign a forward multiple of 5.5 times (x) EV/EBITDA to its FY 12 E EBITDA of Rs 9,238 Mn .(refer exhibit 68). We feel MOIL is undervalued at the current levels and offers a scope for a value buy. It also comes with a dividend yield of 1.4% FY 10 and on a conservative basis we expect it to achieve a dividend yield of 2.2% for FY 12 E. We initiate coverage with a BUY Rating on MOIL with a target price of Rs 448, valuing it at 5.50x FY2012E EV/EBITDA, giving it an upside potential of 16% from current levels,” says A C Choksi research report.
“MOIL, demand for manganese ore is derived from steel, as the steel consumption is expected to increase in future years, the manganese ore consumption is also likely to follow. The company being the largest producer of manganese ore by volume in India having access to 21.7 million tonnes of proved and probable reserves and a total of 61.3 million tonnes of resources (as per JORC code refer )is likely to gain the most under such a scenario. In the high interest cost environment, MOIL is immune to increase in interest rates at least directly, because it doesn't have the burden of debt in its balance sheet. That's one reason for its high PAT Margins (48.03% for FY 10).”
“Production capacities in manganese alloys have been on the rise during the past ten years. The capacity increases by about 19-20% each year, whereas the domestic demand increases by 17-18%. In light of the brighter future potential for steel sector, global demand for ferro alloys is expected to be robust; the company is planning to encash this opportunity by entering into joint ventures with SAIL & RINL for setting up ferro manganese and silico manganese plant. Collectively, this is expected to expand the ferro manganese capacity by 51,000 Tonnes per annum and silico manganese capacity by 112,500 Tonnes per annum.”
“We expect MOIL's Sales, EBITDA & PAT to grow at a 2 year CAGR of 19%, 24% & 24% respectively till FY 12 E. We expect MOIL's Sales, EBITDA & PAT to grow at a 2 year CAGR of 19%, 24% & 24% respectively till FY 12 E. We have employed the EV/EBITDA method for valuing MOIL. MOIL is currently trading at 5.1 times(x) and 4.4 times(x) EV upon FY 11 E & FY 12 E forward EBITDA. We assign a forward multiple of 5.5 times (x) EV/EBITDA to its FY 12 E EBITDA of Rs 9,238 Mn .(refer exhibit 68). We feel MOIL is undervalued at the current levels and offers a scope for a value buy. It also comes with a dividend yield of 1.4% FY 10 and on a conservative basis we expect it to achieve a dividend yield of 2.2% for FY 12 E. We initiate coverage with a BUY Rating on MOIL with a target price of Rs 448, valuing it at 5.50x FY2012E EV/EBITDA, giving it an upside potential of 16% from current levels,” says A C Choksi research report.
4/25/11
FREE STOCK TIPS 4 ALL - BUY JINDAL FILMS : FIRSTCALL RESEARCH
Firstcall Research is bullish on Jindal Poly Films (JPFL) and has recommended buy rating on the stock with a target of Rs 486 in its April 23, 2011 research report.
“Jindal Poly Films (JPFL) is India’s leading producer of flexible packaging films. Jindal Poly Films Ltd is a part of Rs 30 Billion B C Jindal Group, A 50- Year Old Industrial Group Offering a Wide Range of Products. During the quarter the company has incorporated three wholly owned subsidiaries. Jindal Poly Subsidiary Awarded Coal Block in Mozambique. Jindal Metal and Mining Limited have entered into a joint venture agreement for prospecting, exploration and mining of coal. Net Sales and PAT of the company are expected to grow at a CAGR of 31% and 88% over 2009 to 2012E respectively.”
“Jindal Poly Films reported a rise of 88% sales in the standalone net sales for the quarter ended December 2010. During the quarter, the company disclosed a standalone profit of Rs 2210.90 million as against of Rs 348.50 million for the quarter ended December 31, 2009. Net sales are increased by 88% to Rs 7290.40 million from Rs 3869.80 million in the same quarter previous year. Total income of the company was at Rs 7440 million, a rise of 88% over the prior year period. Company EPS is stood at Rs 48.02 for the quarter ended December 2010.”
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“Jindal Poly Films (JPFL) is India’s leading producer of flexible packaging films. Jindal Poly Films Ltd is a part of Rs 30 Billion B C Jindal Group, A 50- Year Old Industrial Group Offering a Wide Range of Products. During the quarter the company has incorporated three wholly owned subsidiaries. Jindal Poly Subsidiary Awarded Coal Block in Mozambique. Jindal Metal and Mining Limited have entered into a joint venture agreement for prospecting, exploration and mining of coal. Net Sales and PAT of the company are expected to grow at a CAGR of 31% and 88% over 2009 to 2012E respectively.”
“Jindal Poly Films reported a rise of 88% sales in the standalone net sales for the quarter ended December 2010. During the quarter, the company disclosed a standalone profit of Rs 2210.90 million as against of Rs 348.50 million for the quarter ended December 31, 2009. Net sales are increased by 88% to Rs 7290.40 million from Rs 3869.80 million in the same quarter previous year. Total income of the company was at Rs 7440 million, a rise of 88% over the prior year period. Company EPS is stood at Rs 48.02 for the quarter ended December 2010.”
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STOCK TIPS 4 U - BUY ONGC AT A TARGET OF RS.330 TO 360 :ADITYA BIRLA MONEY
Aditya Birla Money is bullish on ONGC and has recommended buy rating on the stock with a target of Rs 330-360 in its April 25, 2011 research report.
“With a strong Bullish Belt Hold pattern ONGC has given a breakout from a Bullish inverse Head and Shoulder pattern in Thursday’s trade session. Measuring implications from the pattern indicate an up move towards Rs 330/360. Along with the pattern breakout the ONGC has also breached the falling channel of last 7 months adding strength to our bullish view. With this the stock is also trading above all crucial moving averages implying that the short term trend has turned positive.”
“A positive crossover in daily momentum from oversold zone while the weekly momentum continues to rise is likely to support prices. Only a close below the right shoulder at Rs 280 would indicate that the breakout was false and negate our bullish expectations. Buy ONGC at CMP for a target of Rs 330/360 with stop placed below Rs 287 on closing basis,” says Aditya Birla Money research report.
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“With a strong Bullish Belt Hold pattern ONGC has given a breakout from a Bullish inverse Head and Shoulder pattern in Thursday’s trade session. Measuring implications from the pattern indicate an up move towards Rs 330/360. Along with the pattern breakout the ONGC has also breached the falling channel of last 7 months adding strength to our bullish view. With this the stock is also trading above all crucial moving averages implying that the short term trend has turned positive.”
“A positive crossover in daily momentum from oversold zone while the weekly momentum continues to rise is likely to support prices. Only a close below the right shoulder at Rs 280 would indicate that the breakout was false and negate our bullish expectations. Buy ONGC at CMP for a target of Rs 330/360 with stop placed below Rs 287 on closing basis,” says Aditya Birla Money research report.
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4/19/11
STOCK TIPS 4 U FROM ADITYA BIRLA MONEY- Sell Welspun Corp; target of Rs 195-192
Aditya Birla Money is bearish on Welspun Corp and has recommended sell rating on the stock with a target of Rs 195-192 in its April 19, 2011 research report.
“Welspun Corp, prices lost ground sharply and closed below the 200-day EMA in yesterday’s session. The 14-day RSI is turning down towards the equilibrium after showing negative divergence while the Stochastic (14, 3, 3) has made a bearish crossover and is easing out of the overbought territory. As the prices also closed comfortably below the rising trend line sentiment is likely to remain mixed to weak towards support near Rs 192/189 in the short-run.”
“On the higher side, 200-day EMA near Rs 208 and yesterday’s high of Rs 214 will act as immediate resistance levels. Only an early close above the latter could negate the expected weakness and extend the prevailing positive tone above Rs 220 subsequently. Sell Welcorp initially below Rs 203 and then on any rise to Rs 207, with a closing stop of Rs 212 and for a possible target of Rs 195/192,” says Aditya Birla Money research report. (Source: moneycontrol.com)
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“Welspun Corp, prices lost ground sharply and closed below the 200-day EMA in yesterday’s session. The 14-day RSI is turning down towards the equilibrium after showing negative divergence while the Stochastic (14, 3, 3) has made a bearish crossover and is easing out of the overbought territory. As the prices also closed comfortably below the rising trend line sentiment is likely to remain mixed to weak towards support near Rs 192/189 in the short-run.”
“On the higher side, 200-day EMA near Rs 208 and yesterday’s high of Rs 214 will act as immediate resistance levels. Only an early close above the latter could negate the expected weakness and extend the prevailing positive tone above Rs 220 subsequently. Sell Welcorp initially below Rs 203 and then on any rise to Rs 207, with a closing stop of Rs 212 and for a possible target of Rs 195/192,” says Aditya Birla Money research report. (Source: moneycontrol.com)
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LONG TERM TRADING TIPS FROM ANGEL BROKING - IDBI Bank has target of Rs 195-200
IDBI Bank has target of Rs 195-200, says Phani Sekhar, Fund Manager, Angel Broking.
Sekhar told CNBC-TV18, "IDBI Bank is one of those few midcap public sector banks that I like because it happens to be a turnaround case and we have been seeing that the bank has met with remarkable success in its strategy albeit the growth has been moderated below the industry averages but having said that I think next year is going to be crucial as far as the growth is concerned, business quality issues have more or less been sorted out and I think that is discounted in the price."
He further added, "Although at the same time, I must mention here that the street is also factoring in a smart recovery in next year. The only risk here is that if the growth doesn’t come back beyond Q2, I think that there might be some disappointment. But having said that, I think it is worthwhile to hold this bank because the valuations are inexpensive when you compare it with some of its peers. So I would say that maybe over one year timeframe one can expect a target of around Rs 195-200."
SOURCE: MONEYCONTROL
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Sekhar told CNBC-TV18, "IDBI Bank is one of those few midcap public sector banks that I like because it happens to be a turnaround case and we have been seeing that the bank has met with remarkable success in its strategy albeit the growth has been moderated below the industry averages but having said that I think next year is going to be crucial as far as the growth is concerned, business quality issues have more or less been sorted out and I think that is discounted in the price."
He further added, "Although at the same time, I must mention here that the street is also factoring in a smart recovery in next year. The only risk here is that if the growth doesn’t come back beyond Q2, I think that there might be some disappointment. But having said that, I think it is worthwhile to hold this bank because the valuations are inexpensive when you compare it with some of its peers. So I would say that maybe over one year timeframe one can expect a target of around Rs 195-200."
SOURCE: MONEYCONTROL
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4/18/11
SHORT-TERM TRADING TIPS - Buy Ambuja Cements; target of Rs 163: Aditya Birla Money
Aditya Birla Money is bullish on Ambuja Cements and has recommended buy rating on the stock with a target of Rs 163-165 in its April 18, 2011 research report.
“Ambuja Cement, prices have pulled back slightly after breaking above the higher end of the prior consolidation last week. The 14-day RSI is staying mixed near the overbought territory while the MACD (12/26/9) is moving flat above its signal line. Hence a break above immediate resistance near Rs 153.5/154 levels could signal the resumption of prevailing up trend and keep the sentiment positive towards Rs 165 levels subsequently.”
“On the downside, prices find support near Rs 147 (formed by the previous minor swing low and the 13-day EMA). Only an early close below it would invite a downside correction in prices towards 140 levels and lower negating the expected gains. Outlook remains positive as long the stock stays above Rs 147. However, one may consider buying only a break above Rs 153.50, with a stop loss of Rs 149 and target of Rs 163/165,” says Aditya Birla Money research report. (source: moneycontrol.com)
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“Ambuja Cement, prices have pulled back slightly after breaking above the higher end of the prior consolidation last week. The 14-day RSI is staying mixed near the overbought territory while the MACD (12/26/9) is moving flat above its signal line. Hence a break above immediate resistance near Rs 153.5/154 levels could signal the resumption of prevailing up trend and keep the sentiment positive towards Rs 165 levels subsequently.”
“On the downside, prices find support near Rs 147 (formed by the previous minor swing low and the 13-day EMA). Only an early close below it would invite a downside correction in prices towards 140 levels and lower negating the expected gains. Outlook remains positive as long the stock stays above Rs 147. However, one may consider buying only a break above Rs 153.50, with a stop loss of Rs 149 and target of Rs 163/165,” says Aditya Birla Money research report. (source: moneycontrol.com)
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STOCK TIPS 4 U - Buy Infosys Tech; target of Rs 3400: Motilal Oswal
Motilal Oswal is bullish on Infosys Technologies and has recommended buy rating on the stock with a target of Rs 3400 in its April 15, 2011 research report.
“Infosys Technologies, 4QFY11 revenue well below expectations (US$1,602m v/s est. of US$1,653m), driven by volume decline of 1.4% v/s est. of 4% increase. Volume decline primarily driven by continued weakness in Telecom (revenue down 4.8% QoQ in CC) and surprising weakness in the Insurance sub-segment within BFSI. Decline in North America revenues was also a surprise (0.5% QoQ) in the context of recent management commentary. Volume decline of 1.4% represented a rare but material miss relative to Infosys' guidance which had called for volume growth of 1-2% in 4QFY11. A 5% point sequential decline in utilization (including trainees) primarily drove 120bp sequential decline in EBIT margin (an aggregate drag of 260bp). This was despite a 2.1% sequential increase in realization (should have helped margin by only ~100bp as part of the increase was driven by business mix) and tailwinds from Rupee depreciation v/s the US dollar (margin benefit of ~40bp).”
“Though US$ revenue guidance for FY12 of between 18-20% and INR revenue guide of 15.4-17.3% is in-line with our expectations, EPS estimates fall well short. INR EPS guidance implies a growth of just 5.7-7.37% as operating margins are expected to decline 300bp YoY. Full year FY12 implied net margin of 22.7% at the midpoint represents a decline of ~230bp even from 4QFY11 level of ~25% and FY11 net margin of 24.8%. Also, though US$ revenue guidance of 18-20% is in-line with expectations, volume growth guidance at the mid-point is just 16%.”
“Full year margin decline to be driven primarily by currency (~100bp) and utilization staying near current low levels (impact of ~125bp). Wage inflation impact (10-12% offshore, 2-3% onsite) is expected to be 100bp (300bp inflation impact offset by 200bp improvement on employee pyramid management). S&M expenses may also go up as a % of revenues on significant local and front-end hiring. The magnitude of offset from 3% blended realization improvement should be moderate as most of the improvement is on account of cross currency and business mix. US$ revenue growth guidance for 1QFY12 of just 3% (traditionally strong quarter) at mid point v/s our estimate of 4.2%. Implied CQGR for next three quarters would be 5.5%+, implying a sharply backended revenue growth profile to meet guidance. Rupee revenue growth guidance is just 1.3% at the midpoint for 1QFY12 whereas EPS is expected to decline 12.6% QoQ (v/s our prior est. for growth of 2.3% for revenue and EPS decline of 5.3%). Margins and EPS will get impacted in the quarter because of wage hikes and assumption of Re/US$ of Rs44.5 v/s Rs45.26 in 4QFY11.”
“The absence of one-offs or timing delays in 4QFY11 and the already sharply backended nature of guidance means that it is hard for the consensus to justify any upside to its current US$ revenue growth estimate of 25%. Though one can presumably believe that the margin guidance is conservative, the base case to assume will still be a decent decline, if not a decline as high as 300bp. Consensus prior to today's results was projecting flat to a slight decline in margins for FY12, which implies an inevitable downgrade to earnings. We are revising our top line estimate slightly higher to 24% driven primarily on account of expectation of higher blended realization increase of 2.6% v/s our prior estimate of 1.5%. We are assuming a lower margin decline of 150bp v/s management guidance of a decline of 300bp, though that still represents a downside relative to our prior assumption of flat margins (ex-currency). It may however be noted that the 150bp decline is on a lower base for FY11 driven by the 4QFY11 miss on margins.”
“This results in an EPS downgrade of 7.6% from Rs152 to Rs 140.6 (implying YoY growth of 17.7%). Assuming similar margin profile for FY13, we have downgraded our FY13 EPS estimate by 7.3% to Rs 169.5 v/s prior estimate of Rs 183. Keeping FY13 target P/E at 20x, our revised price target is Rs 3400, implying an upside of 14% from the CMP of Rs 2989. Maintain Buy,” says Motilal Oswal research report.
SOURCE: MONEYCONTROL.COM
“Infosys Technologies, 4QFY11 revenue well below expectations (US$1,602m v/s est. of US$1,653m), driven by volume decline of 1.4% v/s est. of 4% increase. Volume decline primarily driven by continued weakness in Telecom (revenue down 4.8% QoQ in CC) and surprising weakness in the Insurance sub-segment within BFSI. Decline in North America revenues was also a surprise (0.5% QoQ) in the context of recent management commentary. Volume decline of 1.4% represented a rare but material miss relative to Infosys' guidance which had called for volume growth of 1-2% in 4QFY11. A 5% point sequential decline in utilization (including trainees) primarily drove 120bp sequential decline in EBIT margin (an aggregate drag of 260bp). This was despite a 2.1% sequential increase in realization (should have helped margin by only ~100bp as part of the increase was driven by business mix) and tailwinds from Rupee depreciation v/s the US dollar (margin benefit of ~40bp).”
“Though US$ revenue guidance for FY12 of between 18-20% and INR revenue guide of 15.4-17.3% is in-line with our expectations, EPS estimates fall well short. INR EPS guidance implies a growth of just 5.7-7.37% as operating margins are expected to decline 300bp YoY. Full year FY12 implied net margin of 22.7% at the midpoint represents a decline of ~230bp even from 4QFY11 level of ~25% and FY11 net margin of 24.8%. Also, though US$ revenue guidance of 18-20% is in-line with expectations, volume growth guidance at the mid-point is just 16%.”
“Full year margin decline to be driven primarily by currency (~100bp) and utilization staying near current low levels (impact of ~125bp). Wage inflation impact (10-12% offshore, 2-3% onsite) is expected to be 100bp (300bp inflation impact offset by 200bp improvement on employee pyramid management). S&M expenses may also go up as a % of revenues on significant local and front-end hiring. The magnitude of offset from 3% blended realization improvement should be moderate as most of the improvement is on account of cross currency and business mix. US$ revenue growth guidance for 1QFY12 of just 3% (traditionally strong quarter) at mid point v/s our estimate of 4.2%. Implied CQGR for next three quarters would be 5.5%+, implying a sharply backended revenue growth profile to meet guidance. Rupee revenue growth guidance is just 1.3% at the midpoint for 1QFY12 whereas EPS is expected to decline 12.6% QoQ (v/s our prior est. for growth of 2.3% for revenue and EPS decline of 5.3%). Margins and EPS will get impacted in the quarter because of wage hikes and assumption of Re/US$ of Rs44.5 v/s Rs45.26 in 4QFY11.”
“The absence of one-offs or timing delays in 4QFY11 and the already sharply backended nature of guidance means that it is hard for the consensus to justify any upside to its current US$ revenue growth estimate of 25%. Though one can presumably believe that the margin guidance is conservative, the base case to assume will still be a decent decline, if not a decline as high as 300bp. Consensus prior to today's results was projecting flat to a slight decline in margins for FY12, which implies an inevitable downgrade to earnings. We are revising our top line estimate slightly higher to 24% driven primarily on account of expectation of higher blended realization increase of 2.6% v/s our prior estimate of 1.5%. We are assuming a lower margin decline of 150bp v/s management guidance of a decline of 300bp, though that still represents a downside relative to our prior assumption of flat margins (ex-currency). It may however be noted that the 150bp decline is on a lower base for FY11 driven by the 4QFY11 miss on margins.”
“This results in an EPS downgrade of 7.6% from Rs152 to Rs 140.6 (implying YoY growth of 17.7%). Assuming similar margin profile for FY13, we have downgraded our FY13 EPS estimate by 7.3% to Rs 169.5 v/s prior estimate of Rs 183. Keeping FY13 target P/E at 20x, our revised price target is Rs 3400, implying an upside of 14% from the CMP of Rs 2989. Maintain Buy,” says Motilal Oswal research report.
SOURCE: MONEYCONTROL.COM
4/15/11
SHORT-TERM TRADING TIPS - Buy Bajaj Auto; target of Rs 1482/1500: Aditya Birla Money
Aditya Birla Money is bullish on Bajaj Auto and has recommended buy rating on the stock with a target of Rs 1482/1500 in its April 15, 2011 research report.
“Bajaj Auto, prices are in a short-term down trend from the recent high of Rs 1482 however have given a decent bounce back after testing the 55-day EMA in Wednesday’s session. However the intermediate-term trend (from February lows) is still up and historically any pull back within the same seems to be getting good support at the said moving average.”
“The 14-day RSI is hovering near the equilibrium while the very short-term Stochastic (5/3/3) has just made a bullish crossover near the oversold territory. Hence a break above immediate resistance near Rs 1410 could signal a turn around and keep the sentiment positive towards prior swing high of Rs 1482 and higher subsequently. Only an early close below the support zone of Rs 1363/1351 would turn the overall sentiment weak negating the upside potential. Buy Bajaj Auto initially above Rs 1410 and then on any dips to Rs 1400, with a target of Rs 1482/1500 and closing stop of Rs 1363,” says Aditya Birla Money research report.
“Bajaj Auto, prices are in a short-term down trend from the recent high of Rs 1482 however have given a decent bounce back after testing the 55-day EMA in Wednesday’s session. However the intermediate-term trend (from February lows) is still up and historically any pull back within the same seems to be getting good support at the said moving average.”
“The 14-day RSI is hovering near the equilibrium while the very short-term Stochastic (5/3/3) has just made a bullish crossover near the oversold territory. Hence a break above immediate resistance near Rs 1410 could signal a turn around and keep the sentiment positive towards prior swing high of Rs 1482 and higher subsequently. Only an early close below the support zone of Rs 1363/1351 would turn the overall sentiment weak negating the upside potential. Buy Bajaj Auto initially above Rs 1410 and then on any dips to Rs 1400, with a target of Rs 1482/1500 and closing stop of Rs 1363,” says Aditya Birla Money research report.
4/13/11
SHORT-TERM TRADING TIPS - Zee Entertainment : Buy
HINDU BUSINESSLINE recommend a buy in the stock of Zee Entertainment from a short-term perspective. The stock is in a medium-term uptrend since the January-18 low of Rs 106. It is also moving higher forming higher peaks and troughs since then. The stock took support from this medium-term uptrend line on Monday and reversed higher. The bullish engulfing candle formed in the daily chart is encouraging.
The stock also took support from its 21-day moving average in the last session and moved higher. The moving average convergence divergence oscillator in the weekly chart is signalling a buy while the 14-week relative strength index is in the neutral zone on the verge of moving in to bullish zone.
The near-term outlook for the stock is bullish, and it has the potential to move up to Rs 129 or Rs 132 in the upcoming sessions. Short-term traders can, therefore, buy the stock with stop at Rs 125.
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The stock also took support from its 21-day moving average in the last session and moved higher. The moving average convergence divergence oscillator in the weekly chart is signalling a buy while the 14-week relative strength index is in the neutral zone on the verge of moving in to bullish zone.
The near-term outlook for the stock is bullish, and it has the potential to move up to Rs 129 or Rs 132 in the upcoming sessions. Short-term traders can, therefore, buy the stock with stop at Rs 125.
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4/5/11
SHORT-TERM TRADING TIPS: BUY BANK OF INDIA @ TARGET OF RS.505
IIFL is bullish on Bank of India (BOI) and has recommended buy rating on the stock with a target of Rs 505 in its April 5, 2011 research report.
Last week Bank of India crossed critical hurdle of Rs 470-472 and has been able to sustain above same for third consecutive trading session. Daily chart shows that the stock has broken out from Ascending triangle and manage to close above in positive terrain for third trading day. RSI on the weekly chart has also given positive crossover after moving in a rounding bottom pattern. Based on above mentioned technical parameters, we recommend traders to buy the stock above Rs 489 with stop loss of Rs 483 for target of Rs 505,” says IIFL research report.
Last week Bank of India crossed critical hurdle of Rs 470-472 and has been able to sustain above same for third consecutive trading session. Daily chart shows that the stock has broken out from Ascending triangle and manage to close above in positive terrain for third trading day. RSI on the weekly chart has also given positive crossover after moving in a rounding bottom pattern. Based on above mentioned technical parameters, we recommend traders to buy the stock above Rs 489 with stop loss of Rs 483 for target of Rs 505,” says IIFL research report.
4/3/11
STOCK TRADING TIPS: Buy Maruti Suzuki; target of Rs 1547
KRChoksey is bullish on Maruti Suzuki India and has recommended buy rating on the stock with a target of Rs 1547 in its April 1, 2011 research report.
“Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for majority of the domestic car market.”
“Maruti continues to hold dominant position in the passenger car segment with a 51% market share. We expect Maruti to maintain its domestic market leadership in passenger cars, especially in small and compact cars on the back of its strong product mix, efficient marketing strategies & widespread distribution network. With increased focus on export markets would lead to additional volumes in the coming years. Also with recovery in European markets auto demand is set to improve in the next 2-3 years. Maruti’s key export markets are Algeria, Indonesia, Egypt & Sri lanka and company has been ahead of its peers in increasing the capacities to meet the rising domestic & export demand.”
“Maruti Suzuki launched its priciest offering in the sedan segment in India, Kizashi, in the month of February. Also it plans to come out with refreshes of its current models. It is expected to launch a variant of the Swift sometime around diwali with several other products in the pipeline. MSIL has been one of the most aggressive companies in terms of new product launches. The company expects the demand momentum to continue and expects the demand for its products to grow by 15% in the next financial year. The company also says that it is prepared for the increase in demand since its Manesar facility will be operational by start of FY12 taking the total production to 1.4 million units/annum. Also the third plant is expected to be operational by H2 of FY12 which will take the overall production to 1.7 million units/annum.”
“Despite recording highest ever sales during the current quarter the company’s profit degrew by 18% y-o-y on the back of rising input costs. We expect margins to remain under pressure as commodity prices continue their upward trend. But the additional capacity expansion taken by the company will cater to increasing demand, thus reducing waiting period for its products and increasing overall volumes. At the CMP of R 1276, Maruti Suzuki is trading at 15.3x its FY11E EPS of R 82 and at 12.9x its FY12E EPS of R 97, we recommend “BUY” on the stock with target price of Rs 1547,” says KRChoksey research report.
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“Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for majority of the domestic car market.”
“Maruti continues to hold dominant position in the passenger car segment with a 51% market share. We expect Maruti to maintain its domestic market leadership in passenger cars, especially in small and compact cars on the back of its strong product mix, efficient marketing strategies & widespread distribution network. With increased focus on export markets would lead to additional volumes in the coming years. Also with recovery in European markets auto demand is set to improve in the next 2-3 years. Maruti’s key export markets are Algeria, Indonesia, Egypt & Sri lanka and company has been ahead of its peers in increasing the capacities to meet the rising domestic & export demand.”
“Maruti Suzuki launched its priciest offering in the sedan segment in India, Kizashi, in the month of February. Also it plans to come out with refreshes of its current models. It is expected to launch a variant of the Swift sometime around diwali with several other products in the pipeline. MSIL has been one of the most aggressive companies in terms of new product launches. The company expects the demand momentum to continue and expects the demand for its products to grow by 15% in the next financial year. The company also says that it is prepared for the increase in demand since its Manesar facility will be operational by start of FY12 taking the total production to 1.4 million units/annum. Also the third plant is expected to be operational by H2 of FY12 which will take the overall production to 1.7 million units/annum.”
“Despite recording highest ever sales during the current quarter the company’s profit degrew by 18% y-o-y on the back of rising input costs. We expect margins to remain under pressure as commodity prices continue their upward trend. But the additional capacity expansion taken by the company will cater to increasing demand, thus reducing waiting period for its products and increasing overall volumes. At the CMP of R 1276, Maruti Suzuki is trading at 15.3x its FY11E EPS of R 82 and at 12.9x its FY12E EPS of R 97, we recommend “BUY” on the stock with target price of Rs 1547,” says KRChoksey research report.
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SHORT-TERM TRADING TIPS: BUY: Kalpataru Power (Rs 126.9)
Investors with short-term perspective can consider buying the stock of Kalpataru Power Transmission. It is seen from the charts of the stock that after peaking out at Rs 250 in January 2010, it has been on an intermediate-term downtrend. The stock's short-term downtrend that was in place from its January 2011 peak of Rs 174 came to an halt finding support at its longer-term support level of Rs 110 in mid of March. The stock, however, changed its direction triggered by positive divergence in daily relative strength index and moving average convergence divergence.
On March 24, the stock penetrated its short-term down trend-line and 21-day moving average by jumping four per cent with good volume. Reinforcing the stock's bullish momentum, it increased four per cent on Tuesday. The 14-day RSI is on the verge of entering in to the bullish zone and weekly RSI is on the brink of entering the neutral region from the bearish zone. The daily MACD is steadily inching higher towards the positive territory. Daily price rate of change indicator is featuring in the positive zone indicating buying interest.
We are bullish on the stock from a short-term perspective. We expect it to move higher until it reaches our price target of Rs 131 or Rs 135 in the upcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 123 levels.
SOURCE: BUSINESSLINE
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On March 24, the stock penetrated its short-term down trend-line and 21-day moving average by jumping four per cent with good volume. Reinforcing the stock's bullish momentum, it increased four per cent on Tuesday. The 14-day RSI is on the verge of entering in to the bullish zone and weekly RSI is on the brink of entering the neutral region from the bearish zone. The daily MACD is steadily inching higher towards the positive territory. Daily price rate of change indicator is featuring in the positive zone indicating buying interest.
We are bullish on the stock from a short-term perspective. We expect it to move higher until it reaches our price target of Rs 131 or Rs 135 in the upcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 123 levels.
SOURCE: BUSINESSLINE
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3/29/11
SHORT-TERM TRADING TIPS 4 ALL - BUY Unichem Laboratories(Rs 195.60)
We recommend a buy in the stock of Unichem Laboratories from a short-term perspective. It is apparent from the charts of the stock that following a medium-term downtrend, the stock took support from its intermediate-term support level of Rs 170 in early March and bounced up. This move was also triggered by positive divergence shown in daily relative strength index as well as moving average convergence divergence indicator.
On Monday, the stock jumped 7.4 per cent with an upward gap and good volumes, breaching its 50-day moving average. Moreover, the stock's long-term uptrend that commenced in early 2009 low of Rs 52 is in tact and the stock appears to have resumed this trend. The daily RSI has entered into the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region.
Daily rate of change indicator is featuring in the positive territory signalling buying interest. We are bullish on the stock from a short-term horizon. We anticipate its current rally to prolong until it hits our price target of Rs 201 or Rs 207 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 190.
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On Monday, the stock jumped 7.4 per cent with an upward gap and good volumes, breaching its 50-day moving average. Moreover, the stock's long-term uptrend that commenced in early 2009 low of Rs 52 is in tact and the stock appears to have resumed this trend. The daily RSI has entered into the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region.
Daily rate of change indicator is featuring in the positive territory signalling buying interest. We are bullish on the stock from a short-term horizon. We anticipate its current rally to prolong until it hits our price target of Rs 201 or Rs 207 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 190.
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3/22/11
SHORT-TERM TRADING TIPS: BUY - Amara Raja Batteries (Rs 180)
BUSINESS LINE recommends a buy in the stock of Amara Raja Batteries from a short-term horizon. It is apparent from the charts of the stock that following a medium-term downtrend from it all-time high of Rs 228 recorded in October 2010 to the February low of Rs 158, it found support at its significant long-term support band between Rs 155 and Rs 160.
Triggered by positive divergence in daily relative strength index as well as moving average convergence divergence indicator, the stock changed direction. Since then, it has been on a short-term uptrend. On March 16, the stock jumped four per cent with good volume, conclusively penetrating its medium-term downtrend-line and its 50-day moving average. The 14-day RSI has entered the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region.
Daily MACD is on the brink of entering in to the positive territory signalling upward momentum. Both daily and weekly price rate of change indicators are featuring in the positive area indicating buying interest. Our short-term forecast on the stock is bullish. We expect it to rally further until it hits our price target of Rs 187 or Rs 191 in the ensuing trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 175.5.
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Triggered by positive divergence in daily relative strength index as well as moving average convergence divergence indicator, the stock changed direction. Since then, it has been on a short-term uptrend. On March 16, the stock jumped four per cent with good volume, conclusively penetrating its medium-term downtrend-line and its 50-day moving average. The 14-day RSI has entered the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region.
Daily MACD is on the brink of entering in to the positive territory signalling upward momentum. Both daily and weekly price rate of change indicators are featuring in the positive area indicating buying interest. Our short-term forecast on the stock is bullish. We expect it to rally further until it hits our price target of Rs 187 or Rs 191 in the ensuing trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 175.5.
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3/16/11
SHORT-TERM TRADING TIPS : Ceat (Rs 104.9) - Buy
According to Hindu Businessline Stock tips, Investors with short-term perspective can consider buying the stock of Ceat. It is seen from the charts of the stock that after peaking out in September 2010, it started to decline. In January 2011, the stock conclusively penetrated its key support and was on a medium-term downtrend until it found support in the range between Rs 85 and 90 in early February. However, the stock changed direction subsequently and has been on a short-term uptrend since then.
The stock jumped almost eight per cent accompanied by heavy volumes on Monday, reinforcing its short-term uptrend. Moreover, the stock has breached its 21-day moving average showing initial signs of bullishness. Daily relative strength index is about to enter the bullish zone from the neutral region and weekly RSI is on the verge of entering the neutral region from the bearish zone. The daily price rate of change indicator has entered the positive territory implying buying interest. We are bullish on the stock from short-term perspective.
We expect the stock to rally further until it hits our price target of Rs 108.5 or Rs 112 in the forthcoming trading session. Short-term perspective traders can buy the stock with stop-loss at Rs 102 levels.
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The stock jumped almost eight per cent accompanied by heavy volumes on Monday, reinforcing its short-term uptrend. Moreover, the stock has breached its 21-day moving average showing initial signs of bullishness. Daily relative strength index is about to enter the bullish zone from the neutral region and weekly RSI is on the verge of entering the neutral region from the bearish zone. The daily price rate of change indicator has entered the positive territory implying buying interest. We are bullish on the stock from short-term perspective.
We expect the stock to rally further until it hits our price target of Rs 108.5 or Rs 112 in the forthcoming trading session. Short-term perspective traders can buy the stock with stop-loss at Rs 102 levels.
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3/14/11
EMKAY RECOMMENDS: Accumulate Hexaware Tech; target of Rs 66
Emkay Global Financial Services is bullish on Hexaware Tech and has recommended accumulate rating on the stock with a target of Rs 66 in its March 11, 2011 research report.
“Hexaware, like other mid tier peers, bore the brunt of downturn during late FY09/early FY10 as its historical policy of a horizontal led sales strategy adversely impacted its revenues (-18% in FY10). However, Hexaware used the downturn to address its inherent weaknesses by hiring senior talent, revamping the entire management team as well adopting a vertical led sales approach. Hexaware’s ability to survive vendor consolidation exercises at several clients has driven strong revenue growth in the past 3 quarters (13%, 11%, 9% q-o-q) as clients reverted to normal spending levels.”
“We expect revenue momentum to sustain through FY12/13 driving an improvement in operating margins ahead Operating margins have already improved by ~500 bps in the last 2 quarters after a steep fall over Sep’09-June’10. We forecast a 25% US$ revenue CAGR, driving a 52% EBITDA CAGR over FY11-13E. Despite a step up increase in tax rate to 20%/22% in FY12/13 (V/s 10% in FY11), we estimate a 50% profits CAGR over FY11-13E, with further help from a favorable hedging V/s significant forex losses over nearly 3 years. We believe that the company’s FY12 revenue guidance of USD 290 mn (+25% YoY) could err on conservative side, given the strong momentum evident in the past few quarters. We estimate 30%+ revenue growth for FY12 as we expect pickup in discretionary spending to fuel Enterprise Services revenues.”
“Hexaware like most other mid tier peers has had a chequered past in the form of (1) forex hedging mishaps and (2) flip flops on guidance policy (along with misses in between). However, valuations at ~9.7xFY12E/8.3xFY13E earnings are attractive, given the imminent uptick in financial performance. Initiate coverage with ACCUMULATE rating and a TP of Rs 66,” says Emkay Global Financial Services research report.
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SOURCE: moneycontrol.com
“Hexaware, like other mid tier peers, bore the brunt of downturn during late FY09/early FY10 as its historical policy of a horizontal led sales strategy adversely impacted its revenues (-18% in FY10). However, Hexaware used the downturn to address its inherent weaknesses by hiring senior talent, revamping the entire management team as well adopting a vertical led sales approach. Hexaware’s ability to survive vendor consolidation exercises at several clients has driven strong revenue growth in the past 3 quarters (13%, 11%, 9% q-o-q) as clients reverted to normal spending levels.”
“We expect revenue momentum to sustain through FY12/13 driving an improvement in operating margins ahead Operating margins have already improved by ~500 bps in the last 2 quarters after a steep fall over Sep’09-June’10. We forecast a 25% US$ revenue CAGR, driving a 52% EBITDA CAGR over FY11-13E. Despite a step up increase in tax rate to 20%/22% in FY12/13 (V/s 10% in FY11), we estimate a 50% profits CAGR over FY11-13E, with further help from a favorable hedging V/s significant forex losses over nearly 3 years. We believe that the company’s FY12 revenue guidance of USD 290 mn (+25% YoY) could err on conservative side, given the strong momentum evident in the past few quarters. We estimate 30%+ revenue growth for FY12 as we expect pickup in discretionary spending to fuel Enterprise Services revenues.”
“Hexaware like most other mid tier peers has had a chequered past in the form of (1) forex hedging mishaps and (2) flip flops on guidance policy (along with misses in between). However, valuations at ~9.7xFY12E/8.3xFY13E earnings are attractive, given the imminent uptick in financial performance. Initiate coverage with ACCUMULATE rating and a TP of Rs 66,” says Emkay Global Financial Services research report.
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SOURCE: moneycontrol.com
DAY TRADING TIPS FOR 13.3.2011
March 13, 2011:
DLF
Make use of rallies to sell the stock with tight stop-loss at Rs 232 levels.
ICICI Bank
Initiate fresh short position if the stock reverses from Rs 1021 levels with tight stop-loss.
Infosys
Fresh long position can be initiated only if the counter moves beyond Rs 3075 levels with stiff stop-loss.
L&T
The stock is experiencing sell pressure at higher levels. Utilise rallies to sell the stock while maintaining stiff stop-loss at Rs 1565 levels.
ONGC
We recommend a buy in the stock of ONGC with fixed stop-loss at Rs 275 levels.
Reliance Industries
Make use of dips to buy the stock while maintaining tight sop-loss at Rs 976 levels.
SBI
The near-term stance is bearish for the stock. We recommend a sell in the stock with tight stop-loss at Rs 2596 levels.
Tata Motors
Fresh long position is recommended only if the counter climbs above Rs 1176 levels with tight stop-loss.
Tata Steel
Fresh short position can be initiated if the stock fails to move beyond Rs 591 with stiff stop-loss.
Nifty Futures
Initiate fresh long position only if Nifty Futures advances above 5500 levels with tight stop-loss.
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DLF
Make use of rallies to sell the stock with tight stop-loss at Rs 232 levels.
ICICI Bank
Initiate fresh short position if the stock reverses from Rs 1021 levels with tight stop-loss.
Infosys
Fresh long position can be initiated only if the counter moves beyond Rs 3075 levels with stiff stop-loss.
L&T
The stock is experiencing sell pressure at higher levels. Utilise rallies to sell the stock while maintaining stiff stop-loss at Rs 1565 levels.
ONGC
We recommend a buy in the stock of ONGC with fixed stop-loss at Rs 275 levels.
Reliance Industries
Make use of dips to buy the stock while maintaining tight sop-loss at Rs 976 levels.
SBI
The near-term stance is bearish for the stock. We recommend a sell in the stock with tight stop-loss at Rs 2596 levels.
Tata Motors
Fresh long position is recommended only if the counter climbs above Rs 1176 levels with tight stop-loss.
Tata Steel
Fresh short position can be initiated if the stock fails to move beyond Rs 591 with stiff stop-loss.
Nifty Futures
Initiate fresh long position only if Nifty Futures advances above 5500 levels with tight stop-loss.
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3/11/11
SHORT-TERM TRADING TIPS: Aries Agro (Rs 122.6): Buy
We recommend a buy in the stock of Aries Agro from a short-term perspective. It is evident from the charts of the stock that after encountering resistance at Rs 200 in late September 2010, the stock started to decline and was on a medium-term downtrend. However, after retracing approximately 61.8 per cent Fibonacci retracement level of its prior up move, the stock found support in the band between Rs 95 and Rs 100 in early February 2011. Moreover, Rs 100 is key medium-term support level. Subsequentlytriggered by positive divergence in the daily relative strength index as well as moving average convergence divergence indicator, the stock reversed direction. It has been on a short-term uptrend since then.
On March10, the stock conclusively broke through its medium-term downtrend line and 50-day moving average by jumping seven per cent with good volumes. With this, the stock appears to have resumed its long-term uptrend. The daily RSI has entered the bullish zone and daily MACD is on the verge of entering the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue until it reaches our price target of Rs 127 or Rs 130 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 119.5.
FOR MORE STOCK TIPS VISIT http://stockindia.slinkset.com
sourced from: Business Line
On March10, the stock conclusively broke through its medium-term downtrend line and 50-day moving average by jumping seven per cent with good volumes. With this, the stock appears to have resumed its long-term uptrend. The daily RSI has entered the bullish zone and daily MACD is on the verge of entering the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue until it reaches our price target of Rs 127 or Rs 130 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 119.5.
FOR MORE STOCK TIPS VISIT http://stockindia.slinkset.com
sourced from: Business Line
3/10/11
SHORT TERM TRADING TIPS : BUY - Elgi Equipments (Rs 90.5)
We recommend a buy in the stock of Elgi Equipments from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend from its March 2009 trough around Rs 14, forming higher peaks and higher troughs. In early February 2011, the stock found support (200-day moving average) around Rs 75 following a corrective decline from its November 2010 peak of Rs 106. The stock resumed its long-term uptrend triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend as well.
Reinforcing this trend, it jumped almost six per cent accompanied by good volume on Wednesday. Moreover, it is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. Daily moving average convergence divergence indicator has entered positive territory implying upward momentum. Our short-term forecast for the stock is bullish.
We expect it to move higher until it touches our price target of Rs 94 or Rs 96 in the forthcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.
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SOURCE: BUSINESS LINE
Reinforcing this trend, it jumped almost six per cent accompanied by good volume on Wednesday. Moreover, it is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. Daily moving average convergence divergence indicator has entered positive territory implying upward momentum. Our short-term forecast for the stock is bullish.
We expect it to move higher until it touches our price target of Rs 94 or Rs 96 in the forthcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.
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SOURCE: BUSINESS LINE
3/9/11
SHORT-TERM TRADING TIPS: BUY - Apollo Tyres (Rs 61.9)
We recommend a buy in the stock of Apollo Tyres from a short-term perspective. It is evident from the charts of the stock that following its all-time high of Rs 88 marked in September 2010, it was on a medium-term downtrend until it found support at its long-term base of around Rs 45 in early February 2011. With positive divergence displayed in the weekly relative strength index and due to the presence of significant long-term support at this level, the stock changed direction . Since then, Apollo Tyres has been on a short-term uptrend. The stock jumped 7 per cent on March 1, breaching its 21-day moving average conclusively and also formed a bullish engulfing candlestick pattern. Moreover, on Tuesday the stock surged 4 per cent, decisively penetrating its immediate resistance at Rs 60 as well as its 50-day moving average.
We notice that there has been an increase in daily volumes over the past six trading sessions, strengthening the bullish momentum. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. Daily moving average convergence divergence indicator has entered the positive territory implying upward momentum. We are bullish on the stock from a short-term horizon. We expect its up move to prolong until it hits our price target of Rs 64 or Rs 66 in the approaching sessions. Short-term traders can consider buying the stock with stop-loss at Rs 60.
Source: Business Line
We notice that there has been an increase in daily volumes over the past six trading sessions, strengthening the bullish momentum. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. Daily moving average convergence divergence indicator has entered the positive territory implying upward momentum. We are bullish on the stock from a short-term horizon. We expect its up move to prolong until it hits our price target of Rs 64 or Rs 66 in the approaching sessions. Short-term traders can consider buying the stock with stop-loss at Rs 60.
Source: Business Line
2/28/11
Hold Punj Lloyd; target of Rs 91: Emkay
Emkay Global Financial Services has recommended hold rating on Punj Lloyd with a target of Rs 91, in its February 28, 2011 research report.
“Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. No progress on Libyan orders worth Rs 62 billion (placed on SEC) - fortunes for which always stood at abeyance. Commenced execution on projects worth Rs 36 billion - Punj Lloyd is cash positive to the tune of Rs 2.65 billion. For FY12E, Libyan contribution at 4% of revenues and 18% of net profit. Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. Further, there was no progress on Libyan orders worth Rs 62 billion (placed on Sembawang Corporation) - fortunes for which always stood at abeyance. These orders were not factored for execution and revenue booking in ensuing quarters . Some progress was accorded on Libyan orders worth Rs 36 billion placed on Punj Lloyd - however progress remain tardy as mentioned in Q3FY11 result update. On exclusion of Libya orders from order backlog, Punj Lloyd forward order book stands at 2.1X FY11E revenues - lending revenue visibility for 8 quarters.”
For more reading visit : http://www.moneycontrol.com/news/recommendations/hold-punj-lloyd-targetrs-91-emkay_526527.html
“Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. No progress on Libyan orders worth Rs 62 billion (placed on SEC) - fortunes for which always stood at abeyance. Commenced execution on projects worth Rs 36 billion - Punj Lloyd is cash positive to the tune of Rs 2.65 billion. For FY12E, Libyan contribution at 4% of revenues and 18% of net profit. Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. Further, there was no progress on Libyan orders worth Rs 62 billion (placed on Sembawang Corporation) - fortunes for which always stood at abeyance. These orders were not factored for execution and revenue booking in ensuing quarters . Some progress was accorded on Libyan orders worth Rs 36 billion placed on Punj Lloyd - however progress remain tardy as mentioned in Q3FY11 result update. On exclusion of Libya orders from order backlog, Punj Lloyd forward order book stands at 2.1X FY11E revenues - lending revenue visibility for 8 quarters.”
For more reading visit : http://www.moneycontrol.com/news/recommendations/hold-punj-lloyd-targetrs-91-emkay_526527.html
2/23/11
SHORT TERM TRADING TIPS - Gujarat Narmada Valley Fertilizers Company (Rs 107.8): Buy
YOGANAND recommends a buy in the stock of Gujarat Narmada Valley Fertilizers Company (GNFC) from a short-term perspective. It is apparent from the charts of the stock that its long-term uptrend that started in March 2009 low of Rs 52 has ended after encountering resistance around Rs 145 in November 2010. Since then, the stock has been on a medium-term downtrend. The stock breached its key support at Rs 120 and 200-day moving average around this level in early January, and continued to decline.
However, the stock's decline appears to have come to an end recently as it found support at Rs 105 and bounced up almost 4 per cent on February 22. We notice that there is an increase in volumes over the last seven trading sessions. Moreover, the daily moving average convergence divergence indicator is displaying positive divergence signalling an impending trend reversal. Both daily and weekly relative strength indices have entered into the neutral region from the bearish zone.
Considering that the stock is reversing from significant long-term support, MACD is displaying positive divergence and the increase in daily volume we take a contrarian view on the stock from a short-term perspective. We expect it to move higher until it hits our price target of Rs 111 or Rs 114.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 105.
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SOURCE: HINDUBUSINESS
However, the stock's decline appears to have come to an end recently as it found support at Rs 105 and bounced up almost 4 per cent on February 22. We notice that there is an increase in volumes over the last seven trading sessions. Moreover, the daily moving average convergence divergence indicator is displaying positive divergence signalling an impending trend reversal. Both daily and weekly relative strength indices have entered into the neutral region from the bearish zone.
Considering that the stock is reversing from significant long-term support, MACD is displaying positive divergence and the increase in daily volume we take a contrarian view on the stock from a short-term perspective. We expect it to move higher until it hits our price target of Rs 111 or Rs 114.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 105.
For best discounts and Offers visit : SOUTHSPICE OFFER
SOURCE: HINDUBUSINESS
2/18/11
SHORT-TERM TRADING TIPS - Rolta India (Rs 147.6): Buy
D.YOGANAND recommend a buy in the stock of Rolta India from a short-term perspective. It is seen from the charts of the stock that it resumed its downtrend, after encountering resistance around Rs 188 in November 2010. Since then, the stock was on a medium-term downtrend until it found support at Rs 128 last week. While trending down, the stock has formed a falling wedge pattern (a bottom reversal pattern) spanning between December 2010 and early February 2011.
On February 14, the stock gained 3.6 per cent breaching its falling wedge pattern, medium-term down trend-line and its 21-day moving average. Moreover, triggered by positive divergence displayed in the daily moving average convergence divergence indicator the stock appears to have changed direction.
The daily relative strength index is on the brink of entering into the bullish zone from the neutral region and the weekly RSI has entered into the neutral region from the bearish zone. Daily MACD has signalled a buy and is inching towards positive territory. We are bullish on the stock from a short-term perspective considering its penetration of falling wedge pattern. We anticipate it to rally until it reaches our price target of Rs 152.5 or Rs 157 in the forthcoming trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 144.
SOURCE: HINDU BUSINESSLINE
On February 14, the stock gained 3.6 per cent breaching its falling wedge pattern, medium-term down trend-line and its 21-day moving average. Moreover, triggered by positive divergence displayed in the daily moving average convergence divergence indicator the stock appears to have changed direction.
The daily relative strength index is on the brink of entering into the bullish zone from the neutral region and the weekly RSI has entered into the neutral region from the bearish zone. Daily MACD has signalled a buy and is inching towards positive territory. We are bullish on the stock from a short-term perspective considering its penetration of falling wedge pattern. We anticipate it to rally until it reaches our price target of Rs 152.5 or Rs 157 in the forthcoming trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 144.
SOURCE: HINDU BUSINESSLINE
2/2/11
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1/27/11
Asahi India Glass (Rs 95.5): Buy [SHORT-TERM TRADING TIPS]
It is recommended a buy in the stock of Asahi India Glass from a short-term perspective. It is evident from the charts of the stock that since bottoming out in March 2009 after touching a low of Rs 33, the stock has been on a long-term uptrend forming higher peaks and troughs. However, following a minor corrective decline from its November 2010 peak, the stock found support at Rs 88 in December and bounced up. The stock recently took support from this short-term base of Rs 88 and bounced up again, triggered by the positive divergence displayed in the daily moving average convergence divergence indicator. Moreover, long-term uptrend-line is in tact and also provides support for the stock at Rs 88. In the past two trading sessions, the stock gained 5.8 per cent, forming a bullish engulfing candlestick pattern in the weekly chart that signals trend reversal. Both the daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone. Daily MACD has signalled a buy and is heading towards the positive territory whereas weekly MACD is featuring in this territory. We are bullish on the stock from a short-term perspective. We anticipate it to continue climbing higher until it reaches our price target of Rs 100 or Rs 102. Traders with short term perspective can consider buying the stock with stop-loss at Rs 92.
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