Sensex

Wednesday, February 27, 2008

DG - FW: Sharekhan Post-Market Report dated February 27, 2008

 

 

From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: 27 February 2008 19:23
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated February 27, 2008

 

 

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February 27, 2008

 

Index Performance

Index

Sensex

Nifty

Open

17,983.42

5,271.40

High

18,137.28

5,368.15

Low

17,770.65

5,249.75

Today's Cls

17,825.99

5,268.40

Prev Cls

17,806.19

5,270.05

Change

19.80

-1.65

% Change

0.11

-0.03

 

Market Indicators

Top Movers (Group A)

Company

Price 
(Rs)

%
chg

Gainers

Punjab Tractors

271.25

10.26

JB Chemicals

59.00

6.79

CESC

546.25

6.53

Lanco Infra

482.35

6.42

Asian Paints

1,193.85

5.83

Losers

Grasim Industries

2,888.65

-5.06

India Cements

210.85

-3.96

Reliance Energy

1,631.35

-3.88

NALCO

446.65

-3.71

Suzlon Energy

303.70

-3.54

Market Statistics

-

BSE

NSE

Advances

1,437

628

Declines

1,292

559

Unchanged

76

26

Volume(Nos)

30.47cr

51.06cr

 Market Commentary 

Profit taking trims Sensex gains

A late bout of selling saw the Sensex erase its early gains and end lower at 17,773.

The market was poised for another positive finish, but a late bout of selling pressure dragged the Sensex below 17,800 and halted its resurgence.On the back of  

 

firm international indices, the Sensex opened with a positive gap of 177 points at 17,983 and moved up sharply to touch the day's high of 18,137. However, the market came under a sharp bout of profit taking and was 33 points down from the yesterday's close, with the index slipping to an intra-day low of 17,772. Finally, the Sensex erased most of its losses and ended 20 points up at 17,826, while the Nifty was down two points at 5,268.

Movers & Shakers

  • Great Eastern Shipping Company moved up on reports that the company has contracted to sell two of its double hull Medium Range (MR) product tankers
  • Reliance Industries ended a tad higher on report that the company has struck eighth gas discovery in Block NEC-25 of Mahanadi basin
  • Infosys moved down in spite of the report that the company has been selected as a global preferred vendor for Information Technology by Cummins Inc


The market breadth was marginally positive. Of the 2,805 stocks traded on the Bombay Stock Exchange (BSE), 1,437 stocks advanced, 1,292 stocks declined and 76 stocks ended unchanged. On sectoral front, BSE CG index flared up by 2.37% at 16,507 and BSE HC index gained 1.22% at 3,860, while BSE Power ended marginally higher at 3,733. Other sectoral indices were down around 1% each.

Among the major losers Grasim Industries declined 5.06% at Rs2,888.56, Reliance Energy lost 3.88% at Rs1,631.35, Satyam Computer Services slumped 2.81% at Rs437.10 and Infosys was down 2.69% at Rs1,617.40. Select heavyweights attracted buying support. M&M rose 4.52% at Rs658.65, HDFC moved up by 4.27% at Rs2,684.40, Ranbaxy advanced 4.10% at Rs436.35 and BHEL gained 3.78% at Rs2,262.90.

Over 2.05 crore Ispat Industries shares changed hands on the BSE followed by Tulsi Extrusion (1.86 crore shares), IRB Infrastructure (1.53 crore shares), Central Bank of Punjab (0.86 crore shares) and Power Grid (0.85 crore shares).

European Indices at 16:18 IST on 27-02-2008

Index

Level

Change (pts)

Change (%)

FTSE 100 Index

6050.40

-37.00

-0.61

CAC 40 Index

4945.89

-27.18

-0.55

DAX Index

6948.74

-37.23

-0.53

Asian Indices at close on 27-02-2008

Index

Level

Change (pts)

Change (%)

Nikkei 225

14031.30

206.58

1.49

Hang Seng Index

24483.84

769.09

3.24

Kospi Index

1720.89

11.76

0.69

Straits Times Index

3094.45

16.62

0.54

Jakarta Composite Index

2740.14

1.27

0.05

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DG - FW: Unity Infraprojects: Sharekhan Stock Idea dated February 26, 2008

 

 

From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: 26 February 2008 17:27
To: The Sharekhan Research Team
Subject: Unity Infraprojects: Sharekhan Stock Idea dated February 26, 2008

 

Stock Idea
[February 26, 2008] Please see the attachment for details

Sharekhan
www.sharekhan.com

Summary of Contents

STOCK IDEA

Unity Infraprojects
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs970
Current market price: Rs692

Riding on realty and infrastructure boom

Key points

  • Real estate sector growth supports strong order inflows: Unity Infraprojects (Unity) is a leading construction company with well-diversified expertise across the projects. We believe the strong growth in real estate sector will trickle down to construction companies, which would lead to strong order inflows for these companies. The growth in real estate sector coupled with government thrust on infrastructure spending would lead to over 20% compounded annual growth rate (CAGR) growth in Unity's order inflows during the period FY2007-2010.
  • Strong order book provides growth visibility: Unity has strong order book of approximately Rs2,450 crore, which is 4.8x its FY2007 revenues. We believe the robust order book coupled with growth in order inflows would lead to a strong financial performance. Consequently, we expect Unity's revenues and earnings to grow at a CAGR of 37.1% and 31.8% respectively during the period FY2007-2010.
  • Real estate subsidiary to unlock value: Unity has forayed into real estate sector through a wholly owned subsidiary, Unity Realty and Developers Limited (URDL). The real estate projects include those at Nagpur, Pune, and Goa, which are on the build-operate-transfer (BOT) basis. Beside this, the company plans to develop 15 million square feet (mn sq ft) in Kolkata. In line with this, the company has acquired 150 acre of land for Rs100 crore in Kolkata. To fund these projects, the company plans to dilute its stake in URDL, which will unlock value for Unity's shareholders.
  • Attractive valuation: We value the stock using sum-of-parts-valuation (SOTP) method. We value Unity’s core construction business at Rs757 per share ie 10x at its FY2010 estimated earnings. To value Nagpur and Goa projects in the real estate sector and Ulhasnagar water supply project, we have used net present value (NPV) method. These projects contribute Rs192 per share to our valuation. We value the company's Pune project at Rs21 per share based on the recent stake sale to Clear Hotel Capital. We have not factored in Kolkata project since there are no development plans as of date. We initiate Buy recommendation on Unity with a price target of Rs970.   

Regards,
The Sharekhan Research Team

myaccount@sharekhan.com

 

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