Sensex

Saturday, August 02, 2008

Flash News Investment August 4, 2008

 
Page 1
Flash News Investment August 4, 2008 1
T
he Reserve Bank of India (RBI) Governor, Y
V Reddy, is fond of springing surprises. For
yet another time, he has lived up to his reputation,
be effecting a higher-than-expected hike in the repo
rate – rate at which banks borrow from the central
bank – and a hike in the cash reserve ratio (CRR)
– the amount of funds banks have to keep with the
central bank.
In what is technically his last monetary policy
review, Dr Reddy raised both CRR and the repo
rate to a more than seven-year high of 9 per cent.
With the unexpected move, where most of the
markets players were only expecting a CRR hike of
25 basis points, the stock market promptly reacted
and stocks tumbled on that day.
The impact of rate hike was further buttressed by
the RBI's lower GDP projection of 8 per cent, down
from 8.0 -8.5 per cent earlier, clearly indicating that
it is planning to control the inflation at the cost of
growth. Now, the inflation rate is projected close to
7 per cent by end March 2009, which is still higher
from earlier target of five per cent. Now with RBI's
forecast of higher than anticipated inflation, and
lower than expected growth, which was coupled
with the tough medicine by the way of double dose
was enough to spook markets.
Now to be fair with RBI, domestic macroeconomic
signals remain ambiguous and there is no clarity
on the global scenario hence we believe that the
Vol 24, No 18, August 4, 2008, Subscriber's Copy Total 8 Pages
A NEWSLETTER TO MAKE YOU WEALTHY
RBI Call Based On
Long-term Vision
TURN TO PAGE NO 2
Market Capsule
RNI No : MAHENG / 2000 / 986 Reg No : MH / MR / South - 123 / 2006 - 08LICENCE NO. South - 68 / 2006 - 08.
Licence to post without prepaymentPosted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001 on every Friday
CHANGE OF THE WEEK
Net Investment
Turnover
Top 5 Gainers
Sensex
Volume
(in crore)
Editorial
(Rs.Cr)
Scrip
30-July-08
24-July-08
% Gain
Scrip
30-July-08
24-July-08
% Loss
31-July-08
Rise/Gain
NSE
BSE
Combined
Rs 50
FII
MF
Top 5 Losers
Samtel
15.60
11.10
40.54
Shriram Epc
224.05
162.45
37.92
Alchem
94.10
74.15
26.90
Alph Ageo
430.75
341.80
26.02
Sterlin Bio
251.05
200.35
25.31
24-Jul-08
17670
7,445.00
25,115.00
25-Jul-08
14742
5,867.00
20,609.00
28-Jul-08
11098
4,632.00
15,730.00
29-Jul-08
12191
5,103.00
17,294.00
30-Jul-08
12734
5,354.00
18,088.00
Zandu Pharm
20181.50
24017.25
-15.97
Sun TV
232.85
276.65
-15.83
BEL
990.10
1162.75
-14.85
Supreme Tex
10.00
11.70
-14.53
ABB
789.65
904.45
-12.69
23-Jul-08
1635.60
334.50
24-Jul-08
556.30
-270.40
25-Jul-08
-546.30
-32.90
28-Jul-08
-609.30
203.70
29-Jul-08
-332.30
-249.40
Total
704.00
-14.50
(Rs.Cr)
Sensex
14355.75
80.80
Nifty
4332.95
21.10
24.07.08 - 30.07.08
Advance
Decline
Unchanged
BSE
1203
1346
42
NSE
653
545
19
Sensex
V
olume
KRBL
Buy Rs 142.85
Parsoli Corp
Buy Rs 078.65
(Closing prices of 31/07/2008)
Asian Paints
Buy Rs 1210.00
Areva T&D
Buy Rs 1635.00
HERE'S A FLASH
TECHNICAL RECOMMENDATIONS
Flash News Investment August 4, 2008 2
Link to profit
Good amount of investor interest has
been seen in the scrip of D-Link India
(BSE Code 532419) trading at Rs 78.50.
High risk investors can enter the scrip
with medium term perspective.
High on Delivery
High risk appetite investors can take
exposure to the scrip of Madhav Marbles
(BSE Code 515093) trading at Rs 39.
The counter has witnessed good traded
and delivery volume in the last few
trading sessions.
Tuesday August 5
FOMC Meeting Announcement
The Fed determines interest rate policy at FOMC meetings. For
weeks in advance,
market participants speculate about the possibility of an
interest rate change. But this time no change in Interest rate is
expected.
Wednesday August 6
EIA Petroleum Status Report
The Energy Information Administration (EIA) provides weekly
information on
petroleum inventories in the U.S., whether produced here or
abroad. The level of inventories helps determine prices for
petroleum products.
With crude prices impacting the global economies, it is most
sought after data.
Thursday August 7
India Wholesale Price Index Inflation Numbers
It is the most important factor at current level. With Inflation
becoming a major
threat RBI is taking tuff stance. Any increase in the inflation will
lead to further tightening of monetary policy.
Jobless Claims
New unemployment claims are compiled weekly to show the
number of individuals who filed for unemployment insurance
for the first time. An increasing (decreasing) trend suggests
a deteriorating (improving) labor market. Just remember, the
lower the number of unemployment claims, the stronger the job
market, and vice versa.
current increase in monetary measures is justifiable, as
high inflationary expectations could have deprived long-
term economic growth. Now, whether the long-term gain
will be worth the short-term pain or whether it will prove
excessive is something we will know only some quarters
from now.
Now as impact of this, going forward we expect banks
to increase the PLR. Interest rate sensitive sectors like
auto and real estate will be further hit. The after effect
of the measures affected today will have a lag effect and
impact of the same could be seen in firmness in interest
rates. The interest rate sensitive sectors real estate and
financials could come under pressure for some more time.
As a result the growth in Q2FY09 looks quite subdued
and could extent itself to Q3FY09 also.
Now as far as the Q1FY09 results are concerned, much
was talked about the earning downgrades. But the results
are out and our study of 1114 companies which have
announced results so far shows that, although the figures
are not great these are better than expectations. Here the
1114 companies have posted a topline of growth of 28.41
per cent and bottomline growth of just 5.93 per cent.
Now at the first go this does not appear good. But the
impact on overall bottomline has been caused by Oil
marketing companies. If we consider the results without
considering oil marketing companies, topline growth of
India Inc stands at 25 per cent and bottomline growth
stands at 12.45 per cent.
But there are certain alarming factors, the raw material
cost has shot up by 31 per cent or Rs 52481.95 crore,
which is huge, thus keep the operating margins flat.
The interest cost for India Inc too has gone up by 30.77
per cent. Even on adjusting for interest cost of banks
and financial institutions, the net interest cost shoots up
by 72.23 per cent. In absolute terms also it is only Rs
3059.47 crore, which we feel is on the higher side for
India Inc.
Regarding the performance of Sensex based companies,
27 companies have announced the results and have
posted a topline growth of 25.56 per cent and bottomline
growth of 15.58 per cent. Now the Q1 results have been
better than expectation. But the moot question is, is it
sustainable? As stated earlier the rising interest cost will
STREET TALKS
EDITORIAL
Next Week Events
make its impact in the Q2FY09 and Q3FY09. And hence
the expected EPS for Sensex for FY09 is estimated at Rs
975-980 from the earlier levels of Rs 1000. So we will not
be surprised if some slow down happens in next quarter.
Coming back to the markets, with no major triggers
available in the near term much will depend on the
performance of global markets. As regards the expected
movement, we expect the market to be range bound with
some negative bias.
Flash News Investment August 4, 2008 3
• Asian Paints is the leader in the Indian paint industry. It
has an overall market share of around 30 per cent and a 54
per cent market share in the decorative paint segment.
• Asian Paints, through in a 50:50 joint venture with PPG
Industries (US), also has a presence in the automotive paint
segment. Of late, the company has gone on an acquisition
spree that would increase contribution from international
operations significantly in the coming years.
• It is a strong brand portfolio. The strength of its brands
enables it to push products to its dealers without giving
high incentives. The performance of the company on
the exterior paint segment (leadership position within a
period of five years) strengthens our view. With the paint
sector witnessing increasing customer involvement, we
believe that the strong brand portfolio is of significance
from a long-term perspective.
• Asian Paints has also been active in launching products
in the high-end segments in a bid to improve the product
mix, which we believe will enable the company to sustain
its operating margins going forward despite the firm
crude prices.
• Even the capacity expansion of Rs 400 crore is on track
APL is increasing its annual capacity by 150000 KL
by 4QFY10 at its new facility in Rohtak. The capacity
expansion will entail an investment of Rs4b excluding the
cost of land in phase I. The company would look at phase
II after stabilization of phase I. This would enable it to
cater to the anticipated demand growth beyond FY10.
• On the valuation front, CMP of Rs 1210, discounts its
FY09E earnings by 23x. Although it seems to be higher
we are of the opinion that being a leader in the industry it
deserves the higher P/E. It is true that there are some raw
material related pressure on the company but the Crude
price are cooling off and hence will help the company in
next quarters.
Ticker: 500820
H/L: Rs 1334/811
Equity: Rs 95.92 crore
ASIAN PAINTS
Face Value: Rs 10.00 BUY: Rs 1210.00
SCRIP MOVEMENT
AREVA T&D
• Areva T&D is engaged in the business of power
transmission, distribution & manufacturing of other
industrial equipments. The company offers an entire
range of products and systems like energy automation
and information, electrical distribution systems, high
voltage switchgear, medium voltage switchgear, and
transformers.
• Areva has been by far in talks with some Indian
companies for setting up a nuclear power equipment
manufacturing base in India, and if the talks with
IAEA prove fruitful, the company shall stand as a core
beneficiary due to its expertise in the nuclear field.
• Areva plans to set up a uranium mining and recycling
plant once it gets the nod from Nuclear Power Corporation
of India using Mitsubishi boiler technology and would be
in a better position to take up project abroad and access
more related overseas technologies without hassles,
thereby opening door for immense future earnings
opportunities.
• The company has lined up investment in new green field
projects in Vadodara, Hosur and Padappai in addition
to in-creasing capacities at existing manufacturing
plants which shall be ready for production by Dec
2008. Vadodara and Hosur facilities will make power
transformers up to 765 KV and later till 1200 KV in
order to meet the growing needs with an investment of
around Rs 500 crore.
• In the past financial performance of the company has
been strong and we expect the company to maintain
the same. In addition the FII have not sold in the
counter during current downtrend which provides some
confidence. But with strong order book position we
expect the same to trade at lower valuations and hence
recommend the investors to buy the scrip at current levels
with a target price of Rs 2100 in next three quarters.
Ticker: 522275
H/L: Rs 3280/1199
Equity: Rs 47.82 crore
LAST FIVE QUARTERS (Rs/Cr)
Jun 08
Mar 08
Dec 07
Sep 07
Jun 07
Sales
995.24
868.51
916.24
891.20
740.21
Other Income
15.95
11.20
16.89
25.71
8.78
Operating Profit
143.68
132.45
154.14
151.16
116.25
Interest
2.26
1.28
2.69
2.55
1.75
Depreciation
11.60
11.40
11.19
10.75
10.43
Net Profit / Loss
98.55
88.07
105.63
109.96
74.23
Equity Capital
95.92
95.92
95.92
95.92
95.92
RECOMMENDATIONS
For last 1 year
Face Value: Rs 10.00 BUY: Rs 1635.00
SCRIP MOVEMENT
LAST FIVE QUARTERS (Rs/Cr)
Jun 08
Mar 08
Dec 07
Sep 07
Jun 07
Sales
621.75
555.70
816.70
469.20
430.18
Other Income
1.67
3.50
8.30
4.70
2.44
Operating Profit
110.12
79.20
140.40
78.70
60.11
Interest
4.02
2.90
4.90
1.10
1.62
Depreciation
9.56
5.90
6.60
6.30
3.30
Net Profit / Loss
64.66
54.10
83.90
48.00
37.85
Equity Capital
47.82
47.80
47.80
47.80
39.88
For last 1 year
Flash News Investment August 4, 2008 4
Company Name
Per cent
XDividend Date
DIVIDENDS DECLARED IN LAST FEW DAYS
Company Name
Ratio
XSplite Date
SPLITS DECLARED IN LAST FEW DAYS
Company Name
Ratio
XBonus Date
BONUS DECLARED IN LAST FEW DAYS
PERFORMANCE OF WORLD INDICES
MAJOR BULK DEALS, FOR LAST WEEK
Company
Deal
Buy/
Client
Quantity
Price
Name
Date
Sell
Name
(Rs)
LAST 5 DAYS CONTINUOUSLY MOVING UP
PERFORMANCE OF OTHER INDICES
Bliss GVS Pharma
3:05
NA
Shipping Corporation of India
1:02
NA
MM Forgings
1:01
NA
United Phosphorus
1:01
NA
Pantaloon Retail (India)
1:10
NA
P I Industries
1:01
NA
GEE
1:05
NA
Gujarat NRE Coke
2:05
NA
Madras Cements
1:01
NA
Jolly Board
4:01
NA
South Indian Bank
1:04
NA
Gloster Jute Mills
1:01
NA
Hind Rectifiers
1:01
NA
GAIL India
1:02
NA
IMP Finance
1:01
24-Jul-08
Bank of Rajasthan
1:05
NA
Areva T&D
10:02
NA
Adinath Bio-Labs
10:01
NA
Indian Infoline
10:02
8-Aug-08
Era Infra Engineering
10:02
NA
Country Club (India)
10:02
NA
Jindal Drilling & Industries
10:05
NA
Madras Cements
10:01
NA
Jindal Drilling & Industries
10:05
NA
Time Technoplast
10:01
NA
Mavens Biotech
10:01
NA
Ratnamani Metals & Tubes
10:02
NA
AIA Engineering
10:02
NA
IFCI
29-Jul-08
Buy
Goldman Sachs Invest 8030000
42.71
IFCI
29-Jul-08
Sell
Clean Finance & Invest 6653350
42.97
Chambal Ferti 24-Jul-08
Sell
Citigroup Global Mkts 2973000
70.78
IFCI
29-Jul-08
Sell
Ambit Securities Broking 4250975
42.79
Chambal Ferti 24-Jul-08
Sell
Clean Finance & Invest 2561163
70.28
Chambal Ferti 24-Jul-08
Buy
Clean Finance & Invest 2561163
70.23
Adlabs Films
24-Jul-08
Sell
A To Z Stock Trade
332315 527.79
BEST OF THE FLASH RECOMMENDATIONS
IN THE LAST ONE YEAR
Scrip
Date
Reco Price
CMP % Change
Jindal Drilling & Ind.
08/10/2007
870.35
1519.25
74.56
Abbott India
31/03/2008
353.00
543.10
53.85
Glenmark Pharma
28/01/2008
495.75
661.50
33.43
BASF
18/02/2008
230.00
285.60
24.17
BOC India
26/11/2007
139.95
170.90
22.12
BILT
07/04/2008
27.10
33.00
21.77
Hanung Toys & Textiles
15/10/2007
174.45
204.20
17.05
Sun Pharmaceutical
21/04/2008
1269.15
1435.65
13.12
Sanghvi Movers
27/08/2007
199.50
225.25
12.91
Glaxo Smithkline Pharma 28/04/2008
1001.20
1096.75
9.54
DATABANK
Menon Pistons
40
NA
Amrit Banaspati Company
10
NA
KS Oils
18
NA
ECE Industries
25
18/8/2008
Zenith Infotech
15
NA
Suraj Stainless
15
NA
AK Capital Services
35
18/8/2008
CHL
20
NA
Bhagwati Banquets & Hotels
10
NA
Uniproducts (India)
12
NA
Esab India
130
31/7/2008
GMM Pfaudler
35
7/8/2008
Jayant Agro Organics
25
NA
MRF
30
8/8/2008
Ambuja Cements
60
NA
Cochin Minerals & Rutile
12
NA
Softpro Systems
10
NA
Ricoh India
5
NA
Rolta India
30
NA
Ecoboard Industries
10
NA
Prime Property Development Corporation
30
NA
Veer Energy & Infrastructure
10
NA
Maithan Alloys
20
NA
Jindal Stainless
100
NA
Zenith Fibres
15
NA
TVS Electronics
10
18/8/2008
Mastek
130
NA
J Kumar Infraprojects
15
NA
GEE
15
NA
Jindal Hotels
8
NA
Shyam Star Gems
6
7/8/2008
VBC Ferro Alloys
20
NA
Aban Offshore
180
NA
Advani Hotels & Resorts (India)
10
18/8/2008
Velan Hotels
3
NA
Gremach Infrastructure Equipment & Projects 10
NA
BEML
65
NA
Gujarat NRE Coke
25
NA
ABG Infralogistics
25
NA
Ahlcon Parenterals (India)
15
NA
Anu's Laboratories
15
NA
Alpine Housing Development Corporation
12.5
NA
Amrutanjan Health Care
400
28/7/2008
Cipla
100
12/8/2008
Ckoramaandel Cements
20
NA
Steel Strips & Wheels
16
NA
Tata Consultancy Services
300
NA
Gillanders Arbuthnot & Company
40
NA
Indices
30-July-08
24-July-08
% Change
Indices
30-July-08
24-July-08
% Gain/Loss
Company Name
Jul30
Jul29
Jul28
Jul25
Jul24 %Gain
KDL BIOTECH
14.75
14.20
11.80
9.80
9.60
53.65
SHRIRAM EPC
204.50
201.85
178.55
162.45
143.65
42.36
PHOENIX MILL
185.10
182.75
166.30
156.90
137.65
34.47
EVINIX ACCES
9.60
9.10
8.65
8.20
7.80
23.08
ALCHEMIST
85.55
81.55
79.10
74.15
70.20
21.87
Dow Jones
11583.69
11349.28
2.07
Nasdaq
2329.72
2280.11
2.18
Nikkie
13367.79
13603.31
-1.73
FTSE
5382.60
5362.30
0.38
Hang Seng
22690.60
23087.72
-1.72
Strait times
2925.50
2977.91
-1.76
Shanghai Composite
2836.67
2910.29
-2.53
KLSE Composite
1159.94
1141.59
1.61
Seoul Composite
1577.70
1626.14
-2.98
MIDCAP
5,581.01
5,580.90
0.00
SMALL CAP
6,927.60
6,796.11
1.93
BSE-500
1,745.01
1,790.31
-2.53
BANEX
6,522.62
7,163.48
-8.95
AUTO
3,672.86
3,771.16
-2.61
FMCG
2,133.22
2,119.09
0.67
METAL
12,698.70
12,696.25
0.02
OIL & GAS
9,607.74
10,013.40
-4.05
POWER
2,554.22
2,654.45
-3.78
PSU
6,676.91
6,728.21
-0.76
*Closing Price as on 30-July 2008
*10:2 means old FV Rs 10 & New FV of Rs 2
*3:1 means, 3 bonus shares for one share held
Flash News Investment August 4, 2008 5
Announcement
Company
Corporate Announcement
Share Price On
Change %
Date
30 July 08
NEWS & EVENTS
29-July
Rolta
Rolta revealed that it will acquire Chicago-based management and technology
consulting services firm WhittmanHart Consulting for an undisclosed amount.
Both the companies Rolta and WhittmanHart Consulting have signed an
agreement to this effect. With this transaction, Rolta would acquire an
impressive track record, a significant customer base, highly experienced
consultants, unique methodologies and technologies.
302
4.25
IT People
IT People will raise $25 million (around Rs 105 crore) through Global Depository
Receipt (GDR) . The company intends to use the proceeds for enhancing its
product development plans and its reach into new markets in India and oberseas.
The company will also invest a part of the funds in Exchanges and in inorganic
growth opportunities.
35
-0.14
28-July
Seshasayee Paper &
Seshasayee Paper & Boards revealed that the Board of Directors at its meeting
Boards
held on July 26, have decided to embark on the Mill Development Plan -
Phase II, to scale up the installed capacity of the Mill from 115000 tonnes per
annum to 225000 tonnes per annum at an estimated cost of 350 Crores. This in
the long run will be beneficial for the firm.
137
-2.56
Great Offshore
Great Offshore has been awarded a lump-sum turn key engineering contract of
around Rs 234 crores by ONGC, the country's largest oil and gas producer. The
contract execution is scheduled to be completed by middle of CY 2010. The
scope of contract involves carrying out engineering , fabrication, transportation
and installation of barge bumpers, boat landings, riser protectors on 79 ONGC s
offshore platforms aimed at accomplishing ONGCs commitment to enhancing safety
411.7
-0.31
Sunil Hitech Engineers Sunil Hitech Engineers, one of the fastest growing company in the power sector
has bagged orders worth Rs 649.22 crore in the first quarter of the financial year
2008-09. This has enabled the company's order book to cross the Rs 1300 crore
mark for the first time.
190.45
-3.13
Flash News Investment August 4, 2008 6
• We recommended Usha Martin in issue 37 (Dated
14-Jan -2008) at Rs 127.20. Our recommendation was
backed by company's strong product portfolio, financial
performance and its ability to maintain its margins. Now
at current level the scrip is trading at Rs 87 (Down 35.80
per cent) on account of bad sentiments in the market.
• First is, the company has lined capex plan from FY08
to FY10. As per the undergoing Rs2100 crore capex plan,
the steel making capacity of the company would increase
2.5x to 1mtpa with a commensurate increase in iron
making (pig iron and sponge iron) and finishing facility
by March 2010.
• Secondly the financial performance of the company has
been good for the five quarters and on the valuation front
the scrip is trading at 8.59X of its FY09E earnings (EPS
of Rs 9.50). Sentiments do not take much time to change
and hence we recommend the investors to hold the scrip.
• We recommended Marico in issue 38 (Dated 21-Jan-
2008). We recommended Marico as we wanted to change
our strategy according to the market conditions and
also wanted recommend some scrip form the defensive
FMCG sector.
• As regards our current recommendation, with company
posting good results for the June 2008 quarters we advice
the investors to hold the scrip with long term perspective.
• On the stands alone basis, for Q1FY08 Marico posted
the topline of Rs 498.40 crore and bottomline of Rs 38.69
crore as compared to Rs 396.06 crore and Rs 39.57 crore.
but on the consolidated basis topline stood at Rs 600.901
crore and bottomline stood at Rs 46.30 crore as compared
to 469.10 crore and Rs 40.30 crore.
• On valuation front the scrip is trading at 18.53x of
FY09e earnings. We recommend the investors to hold the
scrip for next three quarters.
REVIEWS
Ticker: 517146
H/L: Rs 154/45
Percentage: 35.80
USHA MARTIN
Rec. Price Rs 127.20 CMP Rs 87.00
Ticker: 531642
H/L: Rs 85/48
Percentage: 16
MARICO
Rec. Price Rs 66.85 CMP Rs 53.40
LAST FIVE QUARTERS (Rs/Cr)
Mar 08
Dec 07
Sep 07
Jun 07
Mar 07
Sales
549.13
448.69
437.18
417.77
450.08
Other Income
6.40
1.65
1.63
5.96
1.88
Operating Profit
100.22
79.36
84.25
77.55
77.45
Interest
23.98
19.63
19.24
17.53
17.68
Net Profit / Loss
44.31
32.45
35.86
32.22
29.02
Equity Capital
25.09
25.09
25.09
25.09
24.00
EPS (in Rs.)
1.77
1.29
1.43
1.28
1.21
LAST FIVE QUARTERS (Rs/Cr)
Jun 08
Mar 08
Dec 07
Sep 07
Jun 07
Sales
498.40
371.29
415.59
385.84
396.06
Other Income
1.66
2.30
3.02
2.20
2.55
Operating Profit
58.33
34.13
53.91
51.63
56.51
Interest
6.25
6.54
2.89
2.73
3.13
Net Profit / Loss
38.69
25.51
40.23
38.11
39.57
Equity Capital
60.90
60.90
60.90
60.90
60.90
EPS (in Rs.)
0.64
0.42
0.66
0.63
0.65
LAST FIVE QUARTERS (Rs/Cr)
Jun 08
Mar 08
Dec 07
Sep 07
Jun 07
Sales
119.49
116.10
110.63
95.36
95.80
Other Income
6.80
8.79
9.63
5.64
5.33
Operating Profit
107.56
102.99
97.16
80.96
83.40
Interest
21.81
20.26
20.81
20.65
19.80
Net Profit / Loss
32.64
40.57
25.20
16.28
17.87
Equity Capital
562.03
562.01
561.86
542.94
542.90
EPS (in Rs.)
0.58
0.72
0.45
0.30
0.33
LAST FIVE QUARTERS (Rs/Cr)
Jun 08
Mar 08
Dec 07
Sep 07
Jun 07
Sales
297.23
306.14
259.73
266.73
231.28
Other Income
1.16
0.53
1.32
1.28
1.00
Operating Profit
71.12
53.04
70.71
59.42
49.18
Interest
7.61
7.61
5.46
7.55
6.13
Net Profit / Loss
14.38
21.76
36.52
28.23
21.42
Equity Capital
19.33
19.33
19.33
19.33
19.33
EPS (in Rs.)
7.44
11.26
18.89
14.60
11.08
• We recommended GSPLat Rs 94.55 in issue 37) dated 14
Jan-2008. Our recommendation was backed by company's
expansion plans and strong financial performance. We
also stated that its enhanced pipeline network will help the
company to put good results. But at current level the scrip
is trading at Rs 58.55 (Down by 37 per cent).
• But although the company is down we recommend the
investors to hold the scrip. The company has posted strong
results in Q1FY09. Here the company posted a topline of
Rs 119.49 crore and bottomline of Rs 32.64 crore as
against Rs 95.80 crore and 17.87 crore respectively in
Q1FY08.
• On the valuation front, the CMP of Rs 59 discounts
its trailing 12 month earnings by 28x. Event he price
to book ratio of just 3x seems to be placed well. Hence
we recommend the investors to hold the scrip at Current
level.
• We recommended Balkrishna Industries to our investors
in issue No 37 (Dated 14-Jan-2008). We had reasons
like consistent financial performance and diversified
business of the company. Now at current levels the scrip
is trading at Rs 405 and has lost 50 per cent from our
recommendations.
• The company has come out with the Q1FY09 results
where it posted a topline of Rs 297.23 crore and
bottomline of Rs 14.38 crore. Now although the topline
growth was good, bottomline has declined due to extra
ordinary item of Rs 30.60 crore.
• Now at current level, we would recommend the investors
to hold the scrip as the scrip is available at attractive
valuations. It is also available near to its 52 week low.
Hence we recommend the investors to hold the scrip with
long term perspective.
Ticker: 532702
H/L: Rs 114/47
Percentage: 37
GSPL
Rec. Price Rs 94.55 CMP Rs 58.55
Ticker: 502355
H/L: Rs 900/382
Percentage: 49
BALKRISHNA INDUSTRIES
Rec. Price Rs 806.00 CMP Rs 401.05
Flash News Investment August 4, 2008 7
Flash News Investment August 4, 2008 8
SENSEX NEEDS TO SUSTAIN 13,800 LEVEL
The Sensex has been choppy and it remains to be seen
how things pan out, especially taking support at 13800 and
staging another customary comeback. A bearish gap on the
daily chart had been covered up while another bearish gap
needs to get covered. Asustained closing above 15000 would
give fillip to the ongoing momentum. Sensex has once again
managed to close below the 55 Day EMA. A solid support
comes in at the 13800 level. Sensex now needs to sustain
above 13800, followed by 12800, and 12300 levelevel. The
next resistance comes at 15300. The Sensex remains below
the 55 Day Exponential Moving Average (14670.07), below
the 200 Day Exponential Moving Average (15978.20) and
above the 55 Week Exponential Moving Average (15901.20)
indicating some resistance for the Sensex.
KRBLbottomed out by posting an intra-day low of Rs 074.00
on October 22, 2007, moved upwards with continuous support
in the form of the 073 level (congestion area) and continuous
resistance in the form of the 55 Day EMA. The scrip finally
posted an intra-day low of Rs 078.60 on November 8, 2007.
These levels have not been seen since then. It commenced a
short-term uptrend from here, struggled but overcame the 55
Day EMA, posted a series of progressively higher tops and
bottoms, started moving within the confines of an upward
sloping channel, almost gave a throwover from this channel
and finally peaked at an intra-day high of Rs 178.65 on January
9, 2008. KRBL now seems on the verge of commencing a
short-term uptrend. There are further upside from here.
Parsoli Corp peaked by posting an intra-day high of Rs 043.50
on June 5, 2007, but couldn't sustain it for long and bottomed
out by posting an intra-day low of Rs 034.35 on July 6, 2007
where strong support prevented further downside. The scrip
finally posted an intra-day low of Rs 033.85 on August 23,
2007. These levels have not been seen since. Parsoli Corp
commenced a medium -term uptrend from here, struggled
but eventually overcame the 55 Day EMA, posted a series
of higher tops and bottoms, moved within the confines of an
upward sloping channel, almost gave a throwover from this
channel and finally peaked to Rs 272.10 on January 8. 2008.
Uptrend lies ahead even while it seems have exhaused the
weekly correction. Further upside cannot be ruled out.
Note: The publishers do not hold any position in the stocks recommended herein.
All rights reserved with Ramdeo Media Ltd. Resale or distribution of Flash News in its original form or a reproduction/extract thereof shall be severely dealt with. Procurement of Flash News from any other
source than the publishers is illegal. All material contained herein is based on fundamental and technical analysis and other in-house methods, which though reliable is not infallible. Errors cannot be ruled out.
The information given above is of an advisory nature. Flash News does not accept responsibility for any losses. All disputes are subject to Mumbai jurisdiction only. Printer & Publisher Tarun Pal on behalf of
Achivement Merchandise Pvt. Ltd. Printed at Print House India Pvt. Ltd., 6, Datta Mandir Rd., Bhandup Mumbai - 400 078. Edited & Published from Motlibai Wadia Building, 104-A, 1st Floor, 22 D, SA. Brelvi
Road, Fort, Mumbai - 400 001.
sms "DSJ"
to 57575
CUSTOMER
SERVICE
LEGEND : EMA – Exponential Moving Average. MACD – Moving Average Convergence Divergence RSI – Relative Strength Index
RMI – Relative Momentum Index ROC – Rate of Change
KRBL LTD. (DAILY)
BUY
RS. 142.85
TECHNICALS
Trend (Index) – Sideways
Last Index Closing – 14287.21
Support – 14046, 13780
Resistance – 14431, 14732
55 WEEK EMA – 15901.26
100 WEEK EMA – 14985.90
MACD – SELL MODE
RMI – SELL MODE
ROC – BUY MODE
RSI – BUY MODE
1st Target : 175.00 2nd Target : 189.00 Stoploss : 141.00 (cls)
Subscription Rates
Trading Pointers :
Indicators : MACD-Buy
RMI-Buy
Stochastic-Buy
ROC-Buy
RSI-Buy
Support : 142, 118
Resistance : 155, 183
BSE Code – 530813
55 Day EMA : 126.28
Trading Pointers :
Indicators : MACD-Buy
RMI-Buy
Stochastic-Sell
ROC-Buy
RSI-Buy
Support : 074, 059
Resistance : 091, 117
BSE Code – 530071
55 Day EMA : 093.61
PARSOLI CORP. (DAILY)
BUY
RS. 078.65
1st Target : 095.00 2nd Target : 108.00 Stoploss : 073.00 (cls)
1 Yr. - 48 Issues (Print OR Online) Rs. 1699
3 Yr. - 144 Issues (Print OR Online) Rs. 3600
1 Yr. - 48 Issues (Print + Online) Rs. 1899
3 Yr. - 144 Issues (Print + Online) Rs. 3799
Ramdeo Media Ltd., 239, Roopam Building, 3rd Floor,
P.D'Mello Road, Opp. G.P.O., Fort, Mumbai - 400 001.
Call: 020 40197200 E-mail: service@dalalstreetjournal.com

No comments: