Intraday tips and market outlook for 31st March.

>> Tuesday, March 31, 2009

Yesterday our markets cracked badly.
US markets had a bad day yesterday and wal street is down over 2% as automakers plans were rejected.
Asia has opened a positive note.
Expect Indian Markets to open positive.

The support for the Sensex is 9332 and the resistance to the up move is at 9900

Nifty: (2978) the support for the Nifty is at 2900 and the resistance to the up move is at 3050



Day Trading Ideas -



HDIL

Buy above 79.45 for targets of 80.45 and 81.60


Sell below 75.40 for targets of 73.10 and 72.25



ICICI


Buy above 341 for targets of 346 and 352


Sell below 324 for tergets of 320 and 314



LNT


Buy above 660 for tergets of 668 and 674


Sell below 630 for tergets of 624 and 619


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Intraday Tips and Market Outlook for 30th March.

>> Monday, March 30, 2009

US markets plunge on Friday evening.
Europe ended marginally lower.
Asia has opened weak.
Expect the Indian Markets to open in the same mannar.
We may have a negative opening.

The support for the Sensex is 9635 and the resistance to the up move is at 10201

Nifty: (3109) the support for the Nifty is at 3040 and the resistance to the up move is at 3142-3184


Day Trading Ideas -

IFCI
Buy above 21.10 for targets of 21.90 and 22.45
Sell below 20.10 for targets of 19.45 and 19.05

LNT
Buy above 689 for targets of 696 and 708
Sell below 658 for targets of 650 and 641

Reliance Industry
Buy above 1560 for targets of 1569 and 1576
Sell below 1535 for targets of 1529 and 1520

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Weekly news letter and stocks to watch out for.

>> Sunday, March 29, 2009

The week began on an extremely positive note supported by strong global cues on account of economic announcements in US and China.
Back home, short covering in the derivatives segment and fall in headline inflation to a record low lifted the BSE Sensex to the psychological 10,000 mark and the S&P CNX Nifty to the 3,000 mark.
Banking stocks extended gains after the RBI issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs).
Indian Economy Headed towards deflation , current inflation stands at 2.27
Tata Motors however garnered significant buying interest as it launched the Nano.

Many stocks gave superb returns in the week.
NIFTY gained 300 odd points last week.

Monday markets are expected to open negative as Walstree had a fall after good rise last week.
Over all market sentements are driven by Election 09.

Stocks to watch out for in Short term -

RNRL - (49.25) Target 56. SL 45.55
Hindalco - (55.05) Target 61.25 SL 51.90
RCom - (183.85) Target 194. SL 176.50

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NIFTY Weekly Technicals.

Last week we saw NIFTY was in a bullish mode. A good uptrend was seen.
Last week NIFTY closed at 2807 and this week at 3108 an increase of 300 points odd. A good one. 
The week was followed with good global cues.
NIFTY TRIN at 1.424
Over all Nifty is mixed.

Support - 2990 and 2918
Resistance - 3140 and 3240
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)


Though the Sensex is below its November 2008 and January 2009 peaks, Nifty has already reached these resistance levels that lie between 3140 and 3240. 38.2 per cent retracement of the recent leg of the down-move also gives us the resistance at 3200.

We have also been reiterating that the upper end of the medium-term trading range in the Nifty is around 3200.

In other words, Nifty is at decisive level.

A strong break above the 3240 level will mean that the index is in a strong counter-trend rally that can take it higher to 3500 or even 3800.

However, a reversal from the 3200 level can drag it lower to 2500 again. Short-term supports are at 2990 and 2918. Fresh longs should be avoided on a decline below the first support.

Medium-term investors can stay sanguine as long as the index holds above 2800.


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US Markets Information now on stockezy.com

>> Saturday, March 28, 2009

Using RBI’s $200,000-per-person-perannum window it is now possible for Indian investors to trade in almost all asset classes like stocks, derivatives, commodities, currencies etc on international exchanges.

Think about it, now you can directly buy stocks from New York Stock Exchange, Nasdaq and be able to diversify your portfolios with US stocks. Many Indian brokerage firms are providing this facility. Reliance Money is tied up with Options Xpress of US, Unicon India Brokerage is tied up with Choicetrade.com, again a brokerage from the US. Another major player is Interactive Brokers of US, which is opening shop in India and is a member of NSE.

The investor funds will be protected under SIPC - Securities Investor Protection Corporation visit http://www.sipc.org/ for more information.

To make sure the stockezy community members are up to date with US stocks and market infomation, we are proud to announce our new feature offering - US Markets in http://stockezy.com/US/

This is our first step towards providing important news headlines from prominent websites catering to US markets, for example Reuters, CNBC, WSJ, CNN and Bloomberg. We are working to align with new partners to provide education materials and also invite bloggers from US to share thier views, insights and suggestions about US Markets.

Another very intreresting feature is PredictWallStreet . Surely we understand that users would be new to following US Indexes and hence we provide an easy prediction widget. Simply make your poll, about tomorrow's market, select UP or DOWN and instantly see what the rest of the community is saying about which way the market will move the next day.

We encourage all our users to Try out the PredictWallStreet widget at the US Markets page.(http://stockezy.com/US/ )

We will be moving fast in adding new functionalities and make available new services very soon. Do let us know your suggestions and feedback. We look forward to your comments to this post.

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Multibagger - Hercules Hoist Ltd.

>> Friday, March 27, 2009

Script - Hercules Hoist Ltd.
CMP - Rs 87
BSE Code - 505720
52 Week H/L - 329.00 - 71.55

Summary -
The company was incorporated in Jul,y 1962 at Mumbai. The company is engaged in manufacture of Spur Gear chain pulley blocks, electric hoists of various capacities. It has technical and financial collaboration agreement with Hernrich de Fries GmbH Germany.

Business -
Hercules Hoists has distinct features like, an ultra modern manufacturing facility equipped with, CNC machines, gear cutting machines, broaching machines. It has enviable set of customers. In automobile manufacturers its clients are, Tata Motors, Mahindra & Mahindra, Maruti Udyog, New Holland, Escorts, Premier Auto, Bajaj Auto, Kinetic, Ford India, Daewoo Motors, Ashok Leyland and Punjab Tractors. In Steel industry it caters to Tisco, Bokaro Steel Plant, Rourkela Steel Plant, SAIL, Mukund, and Jindal. In the Cement industry, its clients are Ultratech, Ambuja Cements, ACC and Birla Cement and in State Electrcity Boards, it caters to MPEB, RSEB, MSEB and BSES.

The whole range of material handling equipment manufactured by Hercules Hoists is marketed by Indef Marketing Services Limited (IMSL). The company has merged ISML with itself in FY 2005. ISML has a network of 45 Authorized
Marketing Associates and is an established name in India and internationally. The merger with ISML enabled Hercules Hoists to achieve higher efficiency in operational management and reduced avoidable administrative expenses, which has lead to improvement in overall profitability of the larger company.

Diversification -
The company is also diversifing itself in to new segment of Wind Energy. It has already started its operation in 2005 - 2006.
This would also benefit the stock price / balance sheet.

Key Financials -

Capital 1.60 Cr.
PBT 25.38 Cr. for 9 months ending Dec. 08
NP 16.56 Cr. - do -
EPS 10.35 Cr. - do -
EPS 13.80 Cr. (Projected for march ending 09)
FV 1.00
Gen. Reserves 61.00 Cr.

Gross Profits stands at 29.54 cr. on YoY basis.
The general public hold only 15.18% shares of the company i.e. 2428800 shares only.
The stock is good for long term.

Target arround 250 (2 years)

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Intraday Tips and Market outlook for 27th March.

US markets rallied once againg.
Europe was trading flat.
Asia has opened mixed.
Expect Indian Markets to open flat to negative.
A range bounded mode expected.
Inflation at 30 years low at 0.27%.

The support for the Sensex is 9740 and the resistance to the up move is at 10201

Nifty: (3082) the support for the Nifty is at 3040 and the resistance to the up move is at 3142-3184


Day Trading Ideas -

SBI
Buy above 1095 for targets of 1115 and 1132
Sell below 1062 for targets of 1050 and 1040

TCS
Buy above 563 for targets of 568 and 572
Sell below 545 for targets of 540 and 533

Wipro
Buy above 262 for targets of 266 and 271
Sell below 245 for targets of 240 and 234

NIFTY Autogenerated Technical Analysis

What do you think who will win the General Elections ? Cast your vote here.

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Intraday Tips and Market outlook for 25th March.

>> Wednesday, March 25, 2009

US markets plunge in the later half of the section.
Europe ended in RED.
Asia is bonded to open weak.
Expect Indian Markets to open flat to negative.

The support for the Sensex is 9070 and the resistance to the up move is at 9650-9700

Nifty: (2939) the support for the Nifty is at 2835 and the resistance to the up move is at 3142


Day Trading Ideas -

Suzlon Energy.
Buy above 43.10 for targets of 44.25 and 45.30
Sell below 40.25 for targets of 39.45 and 38.60

Ranbaxy
Buy above 172 for targets of 175 and 178
Sell below 163 for targets of 160 and 158

NIFTY Autogenerated Technical Analysis

What do you think who will win the General Elections ? Cast your vote here.

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Intraday Tips and Market outlook for 23rd March.

>> Monday, March 23, 2009

US Markets ends negative.
Europe was trading flat.
Asia is bonded to open flat to positive.
Expect Indian Markets to open in the same mannar.

The support for the Sensex is 8850-8710 and the resistance to the up move is at 9140-9378

Nifty: (2807) the support for the Nifty is at 2770-2723 and the resistance to the up move is at 2823-3142


Day Trading Ideas -

Jet Airways.
Buy above 163 for targets of 166 and 168
Sell below 156 for targets of 154 and 152

DLF
Buy above 174 for targets of 176 and 179
Sell below 171 for targets of 168 and 165

Tata Steel Ltd.
Buy above 179 for targets of 181 and 184
Sell below 172 for targets of 169 and 166

NIFTY Autogenerated Technical Analysis

What do you think who will win the General Elections ? Cast your vote here.

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NIFTY Weekly Technicals

>> Sunday, March 22, 2009

Last week we saw NIFTY was in a rangebounded mode.
Last week NIFTY closed at 2719 and this week at 2807 an increase of 90 points odd.
The week was volatile.
NIFTY TRIN at 1.118
Over all Nifty is bearish.

Pivot - 2824
Support - 2720 and 2660
Resistance - 2902 and 2945
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Nifty struggled with the psychological resistance at 2800 last week; reversing from an intra-week peak at 2836. But the correction so far has been extremely mild and the index has been meandering in a narrow band between 2770 and 2820 in the last two sessions. Traders need to exercise caution until the index records a strong move above 2800. For a reversal from here will cause a medium term decline to 2570 or lower. Short-term supports for the index are at 2720 and 2660. Stop-loss for long positions ought to be at 2700.

A strong move above 2800, on the other hand, will take the index to 2946 or 3054 in the near-term. Fresh long positions should therefore be initiated only on a strong move beyond 2820. It however needs to be remembered that a run-away rally is not likely in the Nifty yet since the medium-term ceiling for the index could be at 3000 or 3200.

CHART -



NIFTY Autogenerated Technical Analysis

What do you think who will win the General Elections ? Cast your vote here.

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How to better the current economic situation in India

Economic Times in an article today reported that the based on the lower the expected Inflation numbers (0.44% ) the Reserve Bank of India must further cut its Repo, Reverse Repo and may be CRR rates to provide necessary stimulus to the economy. We all remember that RBI already has cut its rates to record minimum, the latest cut being announced on March 4th, which led to repo rate being brought down from 5.5 to 5%, and the reverse-repo down to 3.5% from 4%.

What do the rate cuts serve to achieve? - Encourage banks to ease consumer and business borrowing by offering lower lending rates.

Well this makes sense in theroy, but is the consumer ready to borrow? Is he or she ready to invest in a car or home or decide to increase their discretionary spending? I do not think so.

The consumer has retreated in to a shell, from where it is difficult to spend money. But why are they consumers so wary of spending? The underlying problem is the fear of uncertainty about tomorrow. If we take a back in to the past 6-8 months, the words slowdown and/or recession were being mocked at in India. The so-called pundits helped build a wall around peoples minds telling them that India will remain more or less unaffected by the ills of the credit crisis plaguing US and much of the major economies. This mis-information shrouded us for taking precaution and preparing ourselves for the upcoming misery. And when the truth dawned up on it was too late to take any evasive action and because it was so sudden the impact has been far more worse.

But who is to blame for all of this. The pundits, the media, the newspapers, TV programs? The onus lies on each and every one of us. If it is our hard earned money we are investing in the market, then we cannot blame someone else for our losses. We had to stay more informed and follow information without verifying and applying logic to it. In one way we cannot even trust the government. If you remember the speech in Feb-08 from P Chidambaram he was very confident of India continuing on the pace of 8-9% fiscal growth. Even 6 months in to 08 the finance ministry did not forewarn or raise flags of possible reactions to the credit crisis of US and Europe.

Today the condition is so bad that business big or small, individuals rich or poor, in one way or other are feeling the pinch. The Elections provide another reason for the consumer to push oneself further deep in the shell. The announcement of the Third Front, Mayawati being projected as the prime ministerial candidate, Congress and BJP not being strong enough to win a majority leads to many investors to believe that the economic stimulus, change in fiscal policy needed to fight the downturn may not be able to come till July-August time frame.

So should the RBI cut rates again? Will this have a big impact on the current state of the economy? Will bank easing borrowing rates encourage people to buy new homes or new cars?

It is the weekend, definitely something for all us to think about !


You can find me at Stockezy.com - or tushar@stockezy.com

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Intraday Tips and Market outlook for 20th March.

>> Friday, March 20, 2009

US markets ends lower after few days succesive rallies.
Europe ended marginally higher.
Asia has opened mixed.
Expect the Indian Markets to open flat to negative.
The support for the Sensex is 8900 and the resistance to the up move is at 9140-9378

Nifty: (2807) the support for the Nifty is at 2750 and the resistance to the up move is at 2848-3142


NIFTY Autogenerated technical Analysis.

Day Trading Ideas -

Unitech
Buy above 27.25 for targets of 27.80 and 28.45
Sell below 26.10 for targets of 25.45 and 25.10

SAIL
Buy above 86.10 for targets of 87.25 and 88.45
Sell below 83.25 for targets of 82.10 and 81.45

DLF
Buy above 175.10 for targets of 176.25 and 177.25
Sell below 171.25 for targets of 170.10 and 169.25

Happy Investing.

What do you think who will win the General Elections ? Cast your vote here.

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Intraday Tips and Market outlook for 19th March.

>> Thursday, March 19, 2009

US markets had a good week so far. Yesterday too the US markets rallied.
Europe ended mixed.
Asia has opened marginally lower.
Expect Indian markets to open flat to negative.

The support for the Sensex is 8950 and the resistance to the up move is at 9140-9378

Nifty: (2795) the support for the Nifty is at 2750 and the resistance to the up move is at 2848-3142


Day Trading Ideas -

TCS
Buy above 511 for targets of 515 and 518
Sell below 501 for targets of 495 and 491

Unitech
Buy above 26.90 for taregts of 27.45 and 28.10
Sell below 25.10 for targets of 24.80 and 24.35

Praj Industry
Buy above 51.10 for targets of 52.25 and 53.10
Sell below 48.10 for targets of 47.50 and 46.90

What do you think who will win the General Elections ? Cast your vote here.

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Intraday Tips and Market outlook for 18th March.

>> Wednesday, March 18, 2009

US markets ended positive.
Europe ended flat/ mixed.
Asia has opened higher.
Expect Indian Markets to have a flat to positive opening.

The support for the Sensex is 8651 and the resistance to the up move is at 9065-9140

Nifty: (2757) the support for the Nifty is at 2704 and the resistance to the up move is at 2805-2843



Day Trading Ideas.



HDIL


Buy above 71.45 for targets of 72.45 and 73.80


Sell below 69.45 for targets of 68.20 and 67.15



RPL


Buy above 81.20 for taregst of 82.10 and 83.25


Sell below 79.45 for taregst of 78.90 and 78.10


TCS


Buy above 502 for taregst of 506 and 510


Sell below 489 for targets of 486 and 481

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Intraday Tips and Market outlook for 17th March.

>> Tuesday, March 17, 2009

US markets ended negative.
Europe ended positive.
Asia has opened mixed.
Indian Markets are expected to open lower.
The support for the Sensex is 8725 and the resistance to the up move is at 9065-9140
Nifty: (2617) the support for the Nifty is at 2539 and the resistance to the up move is at 2677-2704


Day Trading Ideas -

IFCI
Buy above 18.10 for targets of 18.65 and 19.20
Sell below 16.90 for targets of 16.45 and 16.10

RNRL
Buy above 44.90 for targets of 45.50 and 46.25
Sell below 42.20 for targets of 41.55 and 40.10

GAIL
Buy above 222.10 for targets of 223.25 and 224.50
Sell below 218.40 for targets of 217.10 and 216.05

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Intraday Tips and Market outlook for 16th March.

>> Monday, March 16, 2009

US markets ended mixed.
Europe also ended mixed.
Asian markets have opened a bit higher.
Expect Indian Markets to have a flat to positive opening.
The support for the Sensex is 8600 and the resistance to the up move is at 8872-9066
Nifty: (2719) the support for the Nifty is at 2665 and the resistance to the up move is at 2755-2805

Day Trading Ideas -

ICICI Bank.
Buy above 314 for targets of 322 and 331
Sell below 289 for targets of 380 and 272

TCS
Buy above 512 for targets of 520 and 526
Sell below 501 for targets of 492 and 486

Sintex Industries
Buy above 88.45 for targets of 89.90 and 91.25
Sell below 84.25 for targets of 83.10 and 82.45

Happy Investing.

Write for IndianMoneyPlus.Com and gain popularity.
Start writing - Just mail me about yourself and what you specilize in.
Mail at indianmoneyplus (at) gmail.com

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How important is Market News to trading

>> Sunday, March 15, 2009

The last week was good, at least friday the 13th moved away from its notorious reputation and Sensex delivered a stellar performance of 412 points or 4.95% up side move, closing well above 8750 levels. So what is next for Monday, will we see 9000? Well gauging market levels is not the objective for this post.



This brings me to the golden question, How important is reading or getting latest news important to trading in these markets. Some might just disagree with the notion of Trading the news, while others that there are so many sources, blogs, websites, how much can one read.


Similar frustations led me to think if all the news from top news sites such as NDTV, Moneycontrol, Reuters, Business-Standard and some others could be available at one place, how much simpler and easy my life would become. More deep thought led me see, what if this news items are sorted and categorised in to Industry, Sector, Economy, Latest News, Earnings-Results then it would be just like heaven.



This leads me to share with you India-Business-News from best news sites, sorted and ordered in to different heads.

Check out http://stockezy.com/inthenews/

Well this is not a promotional message, I really feel having acess to all the news at one central location helps me while I try to play catch up for market events and news on a day to day basis. So let me know how you guys feel about this, share your comments and suggestions.


thanks


tushar

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NIFTY Weekly Technicals.

Last week we saw NIFTY was in a rangebounded mode.
Last week NIFTY closed at 2620.15 and this week at 2719 an increase of 100 points.
The week was volatile.
NIFTY TRIN at 0.538
Over all Nifty is rangebounded.

Pivot - 2720
Support - 2645 and 2590
Resistance - 2800 and 2845
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Over all mode "Volatile"

Nifty held above the support at 2502 last week and rebounded strongly on Friday to end the week up 3.7 per cent. Nifty needs to make a little more headway before the short-term outlook turns positive. Key near-term resistance for the index is at 2800. Presence of the 50-day moving average at this level adds to its significance.

Failure to move above 2800 will imply that the near-term outlook for Nifty stays negative and the index can reverse down to decline to 2500 or 2252. However, a close above 2800 will make the near-term view positive for Nifty. Such a move will indicate that the index can move higher to 3000 or 3250 over the medium-term.

CHART -

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Buy :Mahindra and Mahindra.

M&M derives about 65 per cent of its automotive revenues from utility vehicles (UVs), where it has steadily improved market share from 45 per cent in 2004 to 53 per cent now. Interest from institutional buyers such as small and medium businesses and cab operators has helped the company manage the slowdown better than most other vehicle-makers. Backed by sales of Scorpio and Bolero, M&M’s UV sales volumes were flat in 2008, after averaging a 14 per cent growth in the preceding three years.

Though the segment did witness deceleration in the December quarter, growth has picked up to 20 per cent in the first two months of 2009, driven by launches. LCVs and three-wheelers constitute 20 per cent of M&M’s automotive revenues (though it is not a prominent player in this segment) and this segment relies largely on rural demand.

Introduced in January 2009, Xylo, targeted at retail buyers, infused the much-needed buoyancy to M&M’s sales (4,000 units sold until February). Since it is strategically priced below other sedans and MUVs such as Toyota Innova and Chevrolet Tavera, Xylo appears well-positioned against competition.

Apart from this, the company launched an upgraded model of Scorpio this month. M&M has recently passed on to consumers the excise duty cuts, which , may be visible from the next quarter. The demand for SUVs usually accelerates ahead of elections and that may deliver a short-term boost to sales as well.

Farm equipment

M&M holds 40 per cent market share in the farm equipment segment. After sustaining growth in the first half of this fiscal, the segment witnessed a 7 per cent decline in volumes during October-December 2008. Going by favourable factors such as adequate monsoon and increased credit availability in the hands of farmers, the segment appears well-placed to sustain sales growth this year. Punjab Tractor’s amalgamation with M&M, which is to take effect from this quarter, may add market share and strengthen M&M’s presence in the Northern market, though it is unlikely to have a material near term impact on the per share earnings.

Financial Aspects

After a sustained net profit growth of 25-30 per cent (excluding exceptional gains) in the five years to 2006-07, M&M saw a sharp deterioration in the profit picture in the first nine months of 2008-09, concentrated mainly in the December quarter. While revenues on a consolidated basis grew 13.2 per cent to Rs 21,652 crore, net profit after minority interest declined by 26 per cent to Rs 809.5 crore from Rs.1095 crore.

On a standalone basis, the December quarter saw the company report a loss of Rs 26 crore (before other income, interest and exceptional items), compared to a profit of Rs 280 crore in the same period last year. However, profits were depressed to a significant extent by forex losses of Rs 182 crore (gain of Rs 13.9 crore last year) taken this quarter. This pertains to cancellation of forward contracts and revaluation of foreign currency borrowings. Of this, Rs 136 crore may be of a one-time nature and is unlikely to impact profitability in the coming quarters.

While forex losses did play a role in depressing the profit picture, lower production and revenues — the company sold mainly from inventories — higher raw material costs and possible inventory losses on excise duty cuts also contributed to the decline in profit margins. However, with the company substantially drawing down its inventories in the December quarter and raw material costs (steel, aluminium and paint) easing significantly, profit margins may stage a sharp improvement, from here on. A recovery in sales volumes and the recent excise duty cut will also help improve revenues, helping better recovery of fixed costs. Going forward, though forex losses on existing loans (due from 2011) will remain a drag, lower interest rates on working-capital borrowings may help lower financing costs.

Expansion plans

Fairly ambitious capex plans have also weighed on the M&M stock’s valuations. The company had previously lined up a capex of around Rs 7,500 crore. Due to the overall slowdown in the sector, the company has revised its plans downward to Rs 5,000 crore, phased out over the three years to 2012.

M&M appears to have funded the major portion of this by means of FCCBs and ECBs and is setting up a new UV plant in Chakan with a capacity of 3,50,000 vehicles. This plant would be operational from FY 2010. Debt-equity ratio, which stood at 0.6 at end-March 2008, continues to be at the same level.- HBL

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Buy : SAIL

Investors can consider buying the Steel Authority of India (SAIL) stock (Rs 82), given its low valuation. The stock trades at a price-to-earnings multiple of 4.5 times the trailing 12 month earnings. Though the jury is still out on whether the recovery in steel demand seen so far in 2009 is sustainable, SAIL remains one of the better-placed companies in the steel sector to weather the challenging times. A sharp drop in contract prices for coking coal and iron ore, expected to be negotiated for the coming year, suggests scope for margin expansion, even if steel prices continue to soften.

Low dependence on international orders, a focus on orders from government agencies which may benefit from higher public spending and low leverage and strong cash flows, make the company a preferred exposure in the steel sector. Investors in the stock, however, should be prepared for high volatility, as the stock’s performance may continue to carry strong linkages to global commodity price trends.

Domestic focus helps

The prospect of slowing and even recessionary trends in much of the developed world has weakened the demand for steel from user industries such as forgings, castings, automotive and construction. Both the US and Europe have seen a decline in construction and industrial activity in the last two quarters of 2008. Falling demand prompted production and price cuts by the global steel majors, with players such as Corus, Tokyo Steel and many others cutting back output by up to 30 per cent in October-November ’08.

In India, however, demand has held up better than in the other regions, with the industry’s production still up by about a per cent in the April-December 2008 period. Higher infrastructure spending by the government as a part of its two stimulus packages and a pick up in construction activities following low interest rates could help stimulate growth.

CMIE expects domestic steel production to grow by 1.5 per cent in 2008-09 and achieve a growth of 6.5 per cent in 2009-10. Responding to softening demand, steel prices have been under pressure since last year; hot-rolled coil prices fell 20 per cent from a high of Rs 48,500 per tonne in June 2008 to Rs 39,200 in December 2008.

SAIL’s sales fell in the quarter ended December 31, 2008, given a 11 per cent cut in HRC prices in November. While the effect of price cuts may continue to show up on revenues, a revival in steel volumes (up 9 per cent y-o-y in February ’09), driven by automobile and construction demand, offers some hope. On the cost front, iron ore contracts for the coming year are expected to see a price correction of 30 per cent-plus and coking coal prices are also expected to be 40 per cent lower for the year. Lower input costs would bring substantial margin relief for SAIL, given its high reliance on imported coking coal.

In the December quarter of 2008, SAIL’s profits took a hard blow (down 56 per cent) following a substantial increase in raw material costs as international coking coal prices shot up from $98 per tonne in 2007 to $300 per tonne in 2008.

Resilient to current slowdown

SAIL also looks better placed than its peers to tackle an uncertain global demand environment. SAIL derives just 3 per cent of its revenues from overseas, even as peers such as Tata Steel and JSW Steel have a much larger global exposure.

Within the domestic market too, 40 per cent of the orders are from the government agencies. With the stimulus packages promising higher infrastructure spending by the government, the company may sustain healthy order inflows in the coming quarters.

A diversified customer base is also an advantage, with the company serving a wide range of industries from construction, engineering, power, railway, to automotive and defence. The company has also been realigning its product mix, with value-added products now accounting for 40 per cent of production.

Even as other steel companies are shelving their capex plans, SAIL appears well-placed to bankroll its own expansion. The company had Rs 13,760 crore in cash balances by end-FY08, following strong operating cash flows of over Rs 8,300 crore during the year.

The company’s debt-to-equity ratio of 0.18:1 (in FY08) is low, allowing room to increase borrowings for the planned capex. SAIL has outlined a capex of Rs 53,000 crore for expanding its capacity from 14 million tonnes to 26 million tonnes by 2010-11. Of this, the company has already spent Rs 3,230 crore and has placed orders for equipment worth Rs 36,000 crore. As there are certain equipment sourcing-related delays, the projected additions to capacity may be delayed.

Given its relatively strong balance-sheet, we expect SAIL to reap benefits from recent interest rate cuts, though it may still contract higher borrowings for capex. - HBL

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Intraday Tips and Market outlook for 13th march.

>> Friday, March 13, 2009

US markets ended higher.
Europe ended marginally higher.
Asia has opended higher. Expect the Indian Markets to opwn positive with a gap up opening.
Inflation for the weekended comes to 2.43% which is seven years low. Is the figure inflated? God knows.
The support for the Sensex is 80470 and the resistance to the up move is at 8522-8676
Nifty: (2617) the support for the Nifty is at 2539 and the resistance to the up move is at 2677-2704

Day Trading ideas

SBI
Buy above 916 for targets of 921 and 928
Sell below 901 for targets of 896 and 884

LNT
Buy above 582 for targets of 588 and 596
Sell below 568 for targets of 560 and 554

Axis Bank
Buy above 312 for targets of 316 and 320
Sell below 300 for taregts of 296 and 292

Sterlite Industry
Buy above 268 for targets of 273 and 278
Sell below 252 for targets of 248 and 245

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Inflation slips to seven-year lows at 2.43%

Continuing its southward journey, inflation slipped below 3% to 2.43% during the week ended February 28 from 3.03% a week earlier.

The WPI number for week-ended January 3 has been revised to 5.33% versus 5.24%.

Earlier a Reuters poll showed that the inflation rate was expected to have fallen to near seven-year lows at the end of February, following lower prices of manufactured goods and food articles.

The median forecast of 10 analysts was for a 2.34% rise in the wholesale price index in the 12 months to February 28, compared with a rise of 3.03% in the previous week.

Inflation was at 2.18% on June 8, 2002. Its lowest ever was 1.13% on Feb 2, 2002.

The RBI had forecast annual inflation to be below 3% by the end of the fiscal year on March 31, with some analysts predicting deflation by mid-2009. The RBI had recently cut its policy rates by 50 basis points to their lowest since they were introduced in 2000.

Axis Bank has also said in a note recently that India’s most commonly watched barometer for inflation is expected to fall to zero percent by end March 2009 following a cut in factory gate duties, aviation turbine fuel prices and a base effect. - Economic Times.

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Intraday Tips and Market outlook for 12th march.

>> Thursday, March 12, 2009

US markets ended mixed.
Europe also ended mixed.
Asia has opened lower. Expect Indian Markets to open flat to negative.

The support for the Sensex is 80470 and the resistance to the up move is at 8522-8676

Nifty: (2573) the support for the Nifty is at 2539 and the resistance to the up move is at 2704


Inflation data wil be released today. Inflation may slip below 3% today.

Day Trading Ideas -

HDIL
Buy above 65.10 for targets of 65.90 and 66.85
Sell below 62.10 for targets of 62.05 and 61.25

LNT
Buy above 566 for targets of 571 and 578
Sell below 546 for targets of 540 and 535

DLF
Buy above 140.20 for targets of 141.10 and 142.50
Sell below 136.25 for targets of 135.10 and 134.25

Happy Investing.

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Value Investing - Jaiprakash Associates.

>> Tuesday, March 10, 2009

Multibagger Tip - Jaiprakash Associates.
BSE Code: - 532532
CMP: - 65.85
Target: - 85 (3 - 4 months) Long term target - 140 (12 - 18 months)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December 08 and now is down almost 85%.
Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged
in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering in this sector which this script is the first to cherish.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.

Happy Investing.

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The great Indian Mobile Revolution

>> Monday, March 9, 2009

Despite the current economic gloom the mobile phones business in India is continues to surprise and continue to boom. Led by worlds lowest call rates and availibility of cheapest handsets this is one sector which promises continued growth in otherwise troubled times in Indian economy.

To give you some insight to the kind of acclerated growth being seen in India' mobile market, let me highlight some key numbers. In January of 09 alone a the mobile market added 15.4 million new wireless subscirbers the biggest monthly growth ever.

To see this magnitude of unprecedented expansion in the telecom sector in the midst of deep slowdown in consumer demand and cut-back in domestic spending is proof enough that there is tremendous potential for staying invested for the long term.

The Indian mobile market boasts the most fierce and cut-throat competition and at the same time offers the worlds lowest call rates . But this is no bad news. Afforadibility is seen as the single-most important catalyst which is fueling this rapid growth.

Customers pay less that 50 paise for a call and new handset can be bought for as little as Rs.750. It is no surprise that India has now surpassed China to be the worlds fastest growing cellular market.

>> The beginning of the mobile revolution
It is not just affluent indians who are buying mobile phones, but the real growth is driven by the poor; Labourers, maids, drivers and other lowly paid people in cities are now buying mobile phones too.

The mobile service providers are aggresively rolling out new networks, sharing infrastructure costs and aiming to drive the mobile revolution deeper in to India's poorer markets. In rural areas the farmers are using mobile phones to call other farmers to find out market price for crops and also to stay in touch with distant relatives more often than before. The rural market of India presents a new opportunity to expand growth further.

The key to this surge in rural mobile subscriptions is due to the fact that these people are not affected by the global crunch. They do not own shares, or real estate hence are not being hit by the US credit or mortgage crises. There is enough employment for all and the crops being produced are to a great extent being consumed by the domestic markets.

>>Opportunity for further Growth for Cellular Companies
Rural India accounts for 70% of the 1.1 billion total population. Till the end of January of the total population who own a telephone only 9% were situated in rural areas, hence it is obvious that the next acclerator for mobile growth will come from rural india.

Expected growth
: The forecast for 2010 is for total mobile subscirbers to rise to 525 million , and rise further to 740 million in 2012. The telecom providers know this fact and are moving fast. Bharti Airtel, Reliance Communication and Idea Cellular are 3 top Private service providers, followed by BSNL and MTNL which are backed by the government.

BSNL also announced rollout for 3G services in 700 cities in India by July 2009. This is another encouraging piece of information which will allow added revenue from data services, email and more profitable Business and Enterprise customers.

Stocks to Watch out for:

Bharti is a very experienced player in the market and has the reach and financial backing to aggresively invest in newer markets, rural as well as Urban.

Idea already has good reach and is expanding on its customer base in rural India and is beginning to establish itself in urban towns and cities with pervasive advertising campaingns and publicity.

MTNL is backed by the state and is expanding is data networks bringing Internet to the rural areas which has good potential in the coming years.

I am not too optimistic about Reliance Communications due to continued hinderance caused by Mukesh Ambani Group. In my opinion the telecom sector will see M&A activity and ADAG-Mukesh Group standoff creates uncertainity which is not good for the stock price.


---

The source for numbers and facts & figures provided in this article are coutesy: The Associated Press. The original article can be found at STOCKEZY.COM - India's Social Investing Community. You can connect with me at tushar@stockezy.com


Also I would like for you to check out http://stockezy.com/answers/

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Intraday tips and market outlook for 9th March.

US markets ended mixed.
Asia has also opened mixed.
Expect Indian markets to open flat to negative.
NIFTY resistance at 2640 and support at 2606.

Day trading ideas -

Sterlite Industry -
Buy above 255 for targets of 261 & 265.
Sell below 245 for targets of 239 & 235.

Other stocks to look out for -
LNT.
IFCI
DLF.
Hindalco.

Happy Investing.

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Multibagger tip - Nestlay India Ltd.

>> Sunday, March 8, 2009

Nestlay India Ltd - Buy
CMP - 1,417.25
52 week H/L - 1880 / 1220

Summary -
Nestle India Limited engages in the manufacture and sale of nutritious food products in India. The company’s products primarily comprise milk products, such as sweetened condensed milk, baby milk foods, milk powders, acidified infant food, and other milk products. It also offers beverages, prepared dishes and cooking aids, and chocolates and confectionery under various brand names, such as KitKat, Friskies, NESCAFE, Maggi, Nestle, Dreyer’s, DogChow, and NESTEA. The company is headquartered in Gurgaon, India. NestlĂ© India Limited operates as a subsidiary of Nestle S.A.

Result analysis -
Nestlay India has decalred its fourth quarter results. The company's Q4 net profit was up 29.1% at Rs 534 crore.
Its net sales were up 23.4% at Rs 432.4 crore.
(A good result during recession time)

Growth -
Nestle India is best placed to ride on the expected growth in processed food market due to the strong technology of the parent company. Dominant market share and strong brands will prevent margin erosion of the company. Going ahead, high penetration and innovative prod-uct launches would further fuel its growth.

Positive Factors -
Good financials/results.
A divident paying stock (paid 25.50 Rs per share last yr)
Good market demand / growth potential.

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Weekly news letter and stocks to watch out for.

Last week we started off with RIL and RPL merger news. RIL has announced share swap ratio of 1:16 for its merger with RPL.
We saw RBI reducing rates.
Inflation breached to 3.03%.
We say global markets touching new lows.
US markets is now at 5 years low.
Next week IIP data will be announced we will see a bad number again due to bad global cues.

Sectors to watch out for -
Sugar Stocks.
GOLD Stocks (Rajesh Exports)
Power stocks.

Stay away from Capital goods stock before IIP data is released.

Stocks to watch out for -

Reliance - Reliance has a good support at 1150 and above 1195 it can move till 1260 (weekly basis.) (SL of 1120)

TCS - buy above 474. It has good support at 469 and a resistance at 494 . SL of 463

Other stocks to watch out are -

IDFC
HDFC
Ranbaxy
DLF

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Mutual Fund idea - HSBC Dynamic

Investors can consider adding the HSBC Dynamic Fund to their portfolio. Though the fund is relatively new , it has done well to contain its downside in turbulent markets. Not only has it significantly outpaced its benchmark, the BSE 200 but it has also bettered its returns over some of the well-established large-cap funds such as Kotak 30 and Sundaram BNP Paribas Select Focus. While a good part of this outperformance can be credited to the fund’s high debt exposure, the fund’s mandate allows it to even switch completely to debt: investors should note that the high debt could limit returns when the markets look up again. On that note, the fund’s flexibility in switching to and from equity to debt also gives it a significant edge over balanced funds. This also spares investors from incurring entry and exit loads if they were to dynamically switch between equity and debt funds themselves.


Performance

In the last one year, HSBC Dynamic’s NAV has fallen by over 43 per cent, while that of its benchmark, the BSE 200, declined by over 53 per cent. The fund’s mandate that allows making tactical asset allocation calls appears to have come to its rescue. While that does make the fund reliant on the fund manager’s ability to get dynamic asset allocation calls right, it has acquitted itself well in this respect.


As early as June 2008, the fund had increased its debt exposure to 31.5 per cent. Such a high exposure to debt would have helped it pre-empt the impact of the equity fall that followed in October. Having the ability to make such dynamic asset allocation calls may also help the fund deliver returns better that that of balanced funds, which have a fixed asset allocation strategy (65-35 equity-debt). Its one-year returns lag that of balanced funds such as HDFC Prudence only marginally.


So, while the debt exposure will help the fund score over pure equity funds in the markets such as these, it may lag their returns if and when the markets turn around. In the brief four-month stint that fund had in the bull market, during September 2007-January 2008, the fund just about managed to keep pace with its benchmark.


Portfolio

In the equity portion of the fund’s portfolio, which makes up for 74 per cent of its total assets, it is the large cap stocks that find greater prominence, making up for about 54 per cent of the assets.


Mid and small-cap stocks contribute to over 10 per cent and 9 per cent, respectively. In terms of sector allocation, the fund has the highest presence in consumer non-durables, followed by that in banks and pharmaceuticals. With respect to its debt allocation, while the overall exposure to debt has moderated in recent months, it still is significant, at about 15 per cent.

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NIFTY Weekly technical analysis.

Last week we saw NIFTY was in a rangebounded mode.
Last week NIFTY closed at 2763 and this week at 2620.15 a decrease of 150 points odd.
The week was volatile.
NIFTY TRIN at 3.045
Over all Nifty is Bearish.
5 day EMA at
2646.68

Pivot - 2597

Support - 2595 and 2490
Resistance - 2691 and 2745
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Over all mode "Volatile"

The medium-term outlook for the index is negative and this view will be mitigated if Nifty closes above 3000. Last week’s move signals that the long-term down move from last January’s peak could have resumed that can take the index down to 2252 or 2172.

Chart -

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Bharti Airtel a stock worth buying.

Investments with a one-, two-year horizon may be made in the shares of Bharti Airtel. The company’s continuing leadership in the mobile division, increasing strength of its enterprise carrier division and improvement in the tenancy in its towers suggest that it is well placed to sustain strong earnings growth.


At Rs 602, the stock trades at 11-12 times its likely 2009-10 per share earnings, a steep discount to its historic valuations. Despite a subscriber addition pace of over 2.5 million a month, especially in rural areas, at lower ARPUs (average revenue per user), the company has been able to maintain its EBITDA (earnings before interest, taxes, depreciation and amortisation) margin above 40 per cent.


The company has joined the competition and launched life-time prepaid recharges at Rs 99, which is further expected to augment subscriber additions. Simultaneously, it has rationalised tariffs across the country and removed/reduced free minutes of usage. This has resulted in stabilising realisations per minute at 64-paise levels, though ARPUs are still declining (they remain the highest in the country).


Realisation per minute may be a better metric as it blends minutes of use and revenues generated on an average. Bharti’s mobile subscriber market share has increased by more than a percentage point over the last one year to 24.7 per cent.


The mobile services division may receive a further fillip with the launch of 2G and 3.5G services in Sri Lanka. It remains to be seen if the low-cost model of India is replicated there, but the company rationalised tariffs and made incoming calls free there, which is expected to boost subscriber growth.


This also opens up provisions for increasing ARPUs through value-added services. Bharti’s enterprise carrier division that carries national and international voice and data traffic has been increasing contribution to the company’s revenues (18 per cent currently up from 16 per cent a year ago) and has seen EBITDA margins expand steeply to 45.4 per cent for the latest quarter (up from 32.2 per cent last year). This has been possible due to the fact that the company carries the traffic for several operators, in addition to its own.


The company’s passive infrastructure business is also witnessing increasing action. Tenancy in its towers has over the last three quarters increased from 1.22 to 1.34, as have rentals. Both these divisions have significant opportunities in the form of the entry of several new players entering the fray and incumbent players acquiring a pan-India presence, who will need new towers and require a network to carry voice and data traffic nationally and internationally. The DTH rollout by Bharti, where it adds about one lakh subscribers a month, is another area to watch out. Though this may post losses in initial years, it may be a source of long-term growth.

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Few stocks worth investing.

Lupin: Healthy growth

Investors with a long-term perspective can consider accumulating the Lupin stock, now trading at Rs 590. Steady growth in revenues over the years combined with strong presence in key target markets such as the US, the EU and Japan, besides a healthy pipeline in drug filings, underscore our recommendation. At the current market price, the stock is valued at about 11 times its likely FY-09 per share earnings, at a discount to its peers. Consistent historic growth rates also lend confidence.


In the last three years, Lupin has (on a consolidated basis) managed to grow its revenues and earnings at a compounded growth rate of over 29 per cent and 65 per cent respectively. Driven by the renewed focus on generics in markets such as the US and Japan (where it marked its presence through the acquisition of Kyowa), the company is likely to deliver steady growth in future too. That among the Indian generic companies operating in the US, Lupin enjoys the largest share of prescription sales and has the highest per product sales validates our view. That said, its presence in the domestic formulation business too inspires confidence.


However, in the light of the recent credit turmoil, the company’s API business has started showing some early signs of a slowdown. That, however, may not hamper its growth prospects significantly, as the incremental growth in future would rely more on its formulation business, primarily in the US and Japan.


In terms of risk, however, investors may need to closely monitor the developments on the USFDA front. Last November, the FDA had issued Lupin an inspection report (483) listing 15 inspectional observations. The management, however, has since then responded to the FDA on the concerns that were raised. While this certainly is not as grave as the FDA issue pertaining to Ranbaxy, developments on this front nonetheless will require close monitoring. The closure of the issue, hence, would be the key catalyst to the stock’s movement.


Tata Chem: Good yields

The global de-rating of commodity stocks and worries about weakening demand and prices for soda ash have contributed to a sharp fall in the Tata Chemicals stock to Rs 104 levels. However, at its trailing P-E of four times, the stock’s valuation appears to factor in most of the risks to earnings, while ignoring the investment positives.


Though Tata Chemicals’ global soda ash business does face the prospect of both a volume and a price decline from the levels managed in the first nine months, this is likely to be offset partly by higher sales (driven by volumes) in the fertiliser business and continued gains in the salt business.


The company’s soda ash operations are much less vulnerable to global recession than other commodities as they cater mainly to user industries such as detergents and container glass, which face little demand destruction even in a slowdown.


Flat glass, which accounts for about 20 per cent of the global soda ash offtake, is the only user sector facing the prospect of lower offtake now. This segment too may receive a boost if the Chinese stimulus plan really does pep up construction and infrastructure activity in the Asian region.


On the pricing front, Tata Chemicals’ diversified geographic presence has helped; with soda ash contracts in the US and Europe already locked in at higher prices, though contracts in Asia face price erosion.


Even if the soda ash business does see shrinkage in earnings over the new few quarters, the fertiliser business (60 per cent of revenues) appears set to ramp up its earnings performance. The completion (on March 3) of the de-bottlenecking project at Babrala increases the company’s urea capacities from 8.64 lakh to 11.55 lakh tonnes per annum and will bring in realisations linked to import parity prices. Improved gas availability from the Reliance project is also set to improve the margin profile of the urea business.


While phosphatic fertilisers may make a lower revenue contribution on the back of lower output or realisations, input cost pressures in this segment have eased significantly.


Though it too has sewn up several global acquisitions, Tata Chemicals is better placed than its peers in the group in terms of net debt:equity (now at 1:1), borrowing costs (averaging just 6.2 per cent of the outstanding debt) and operating cash flows (both the fertilizer and salt businesses are cash cows).


With the urea expansion already completed and other capex deferred, future cash flows can be deployed to draw down debt on the balance-sheet. The attractive dividend yield of 8.6 per cent on the stock (last year’s dividend was at Rs.9 per share, with a low payout ratio) at current market prices, also curtails downside risks.


BHEL: Powered-up

Investors can accumulate the stock of BHEL, given its consistently strong order inflows, timely capacity expansion measures to meet the increased opportunities and negligible funding issues, despite the tough environment. At the current price of Rs 1,311, the stock trades at about 15 times its expected earnings for FY10.


The market has traditionally awarded a premium to the stock as a result of its highly visible and sustainable growth prospects. Buy the stock on declines linked to broad markets to average costs.


An order backlog of Rs 1,13,600 crore, as of end-2008, speaks of the revenue potential for BHEL over the next two years, though power cuts, component shortage and delays in certain clearances led to lower revenues in the December quarter.


We believe that these issues are inevitable for a company of this size, give the customised component requirement and its dealings mostly with other government organisations such as the State electricity boards.


Operating profit margins too declined to the less than 17 per cent mark on account of higher raw material cost and employee expenses. These two parameters could see some improvement in the coming quarters.


The competitive threat from BHEL’s Chinese counterparts have receded to some extent, given the spate of quality issues raised over the past year regarding Chinese equipment. The appreciating dollar has also helped narrow the pricing gap between the local and Chinese equipment.

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Sun Pharmaceutical Industries - Buy

Sun Pharmaceutical Industries
CMP - 1,021.55

Unlike its peers whose performance hasbeen mixed, Sun Pharma has not only been consis 240, tent in its growth, but it has also managed to improve its performance over the years. Its net worth has,grown steadily by 28 per cent and revenues by 33 per cent on an average over the last ten years. Profit has grown even more impressively at an average 37 per cent (CAGR) over the period and average profit margins have stayed close to 24 per cent. Shareholders haven’t had much to complain about, as the average RoE has been close to 31 per cent over the ten years. Around 72 per cent of Sun’s domestic revenues come from products for lifestyle related diseases. The demand for drugs to treat diabetes (which has grown at 16 per cent CAGR) and cardiovascular diseases (15 per cent CAGR) is expected to grow the fastest in the therapy segment in 2007-11 and this will benefit Sun Pharma. The company has maintained its revenue guidance for the current year, notwithstanding the cautious outlook of its subsidiary Caraco Pharmaceuticals for business in the US. Sun’s base business growth is on track with domestic formulations and bulk business (domestic and exports) continuing to post strong growth. Branded generics exports are likely to be the incremental growth drivers. The stock has declined just 4 per cent in the past year. It is trading at EV/Ebitda of lix and 1 2x of its FY09 and FY10 earnings.

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Areva T&D bags order worth 60 crores.

>> Saturday, March 7, 2009

Areva T&D bags order worth 60 crores from RRVPNL.
Areva TD has secured a contract worth Rs 60 crore from Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL) for setting up hybrid gas-insulated substation for Indira Gandhi Nagar substation at Jaipur. The contract also includes annual maintenance for three years after commissioning.
I had recomended this scrip earlier. This is just one more positive factor to it. LINK to research report on Areva TD

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Multibagger - OnMobile Global Ltd.

Stock - OnMobile Global Ltd.
CMP: Rs 230.05
52 Week H/L: 744.70 - 185.20
Market Cap: 1320.49
Target price: Rs 425 ( 9 - 10 months)

Summary: -
OnMobile Global Limited is a provider of mobile value added services and products (MVAS) in India. The Company has a range of applications that are delivered by its customers, who are telecom operators and media companies, to their subscribers. The products of the Company are Network based in-call solutions like caller ringback tones, dynamic voicemail and missed call alert service, Voice-based multi-modal portal which allows subscribers to access informational and entertainment content such as music, sports updates, news, stock and commodity price updates, in multiple languages using speech-based navigation; on-device client software applications; interactive media solutions, such as tele-voting, interactive programming, mobile auditioning and auctions; mobile commerce solutions like ticketing (movie and railway ticketing), utility payments and mobile marketing services, and business support solutions like phone backup and pre-paid and post-paid bill payments.

Key Factors/ Drivers: -
OnMobile Global is India’s largest VAS (value-added services) operator (35% share) in a rapidly growing market FY08-11 (estimated) CAGR at 51%.

The estimated 36% EPS (earnings per share) CAGR over FY08-11 (estimated), was due to the company’s increasing international presence.

The domestic VAS has graduated from being a glorified sub-set of p-to-p SMS to a well-demarcated segment. “The current contribution of the company at 3.4% of wire-less revenues is likely to increase to 6% by FY12E.

Key Positive: -
Mobile sector will see a boom as it is keeping on adding numbers of subscribers on a daily basis.
More over every one need a cell phone.
Strong growth potential.

Key Negative: -
Markets looking volatile so this is the biggest threat to the stock.
Technicals are not in favor.

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