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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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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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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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.

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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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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