Intraday Tips and Market Outlook for 31st August

>> Monday, August 31, 2009

State of Markets abroad :
US markets ended mixed.
Asia has opened in deep red.
Expect the Indian Markets to follow to the same.

NIFTY Technicals :

Current Spot : 4732.35
Supports : 4674.65 & 4616.8
Targets : 4767 & 4801.55

Day Trading Ideas :

RNRL : Buy above 85 for targets of 86.10 and 87.25. SL of 83.90

HUL : Buy above 260 for targets of 262 and 265. SL of 258

Adlabs : Buy above 335 got targets of 238 and 341. SL of 333

Happy Investing!

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NIFTY Weekly Technical analysis and Stocks to watch out for.

>> Sunday, August 30, 2009

Last week Markets witnessed marginal rise.
Expect the markets to zoom more in short term.
Check Out NIFTY's Technicals : CLICK HERE.

Stocks to watch out for :

MNM : Buy above 820 for targets of 845 and 860. SL of 810

Aurobindo Pharma : Buy above 700 for targets of 720 and 740. SL of 690

Thermax : Buy above 460 for targets of 480 and 500. SL of 450

GVK Power & Infra. : Buy above 47 for targets of 49 and 51. SL of 46.10

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Intraday Tips and Market Outlook for Aug 28th.

>> Friday, August 28, 2009

State of Markets Abroad :
US markets ended in green.
Europe ended flat.
Asia has opened mixed.
The crucial support for the Sensex is 15690 and the resistance is at 15904-16046
Nifty: (4688) the crucial support for the Nifty is at 4660 and resistance is at 4700-4789

Day Trading Ideas :


GVK Power & Infra : Buy above 48 for targets of 49.25 and 50.40. SL of 47.10

RPower : Buy above 160 for targets of 165 and 169. SL of 157

HCC : Buy above 112 for targets of 113.20 and 115.10. SL of 110.

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Intraday Tips and Market Outlook for 27th August.

>> Thursday, August 27, 2009

State of Markets abroad :
US markets ended flat.
Europe ended in red.
Asia has opened negative.
Expect the Indian Markets to open flat to positive.

The crucial support for the Sensex is 15700-15690 and the resistance is at 15783-15904
Nifty: (4681) the crucial support for the Nifty is at 4660 and resistance is at 4700-4790

Day Trading Ideas :

RNRL : Buy above 90 for targets of 91.25 and 92.50. SL of 88.45

HDIL : Buy above 310 for targets of 315 and 319. SL of 305

Gujarat NRE Coke : Buy above 56 for targets of 57.10 and 58.25. SL of 55.10
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Intraday Tips and Market Outlook for 26th Aug.

>> Wednesday, August 26, 2009

State of Markets abroad :
US markets ended flat to positive.
Europe ended flat.
Asia has opened positive.
Expect the Indian Markets to open positive.

NIFTY Technicals:
Current Spot : 4659.35
Support :4603.6 & 4547.85
Resistance :4694 & 4728.65

Day Trading Ideas:

RNRL : Buy above 82 for targets of 82.85 and 83.90. SL of 81.15

IFCI : Buy above 53 for targets of 54.10 and 55.05. SL of 52.1

HCC : Buy above 110 for targets of 112 and 113.50. SL of 108.10

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Intraday Tips and Market outlook for 25th Aug.

>> Tuesday, August 25, 2009

State of Markets abroad :
US markets ended mixed.
Europe ended in green.
Asia has opened and trading in red.
Expect a gap down opening.
The logical target for the Sensex is 15500-15314 and the resistance is at 15783-15904
Nifty: (4643) the logical target for the Nifty is at 4600 and resistance is at 4700-4790

Day Trading Ideas :

Praj Ind : Buy above 94 for targets of 95.10 and 96.05. SL of 93.10

IndusInd Bank : Buy above 101 for targets of 102.10 and 103.05. SL of 99.90

HDIL : Buy above 297 for targets of 300 and 305. SL of 291

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Stock Idea : Puravankara Projects Ltd.

>> Monday, August 24, 2009

Stock : Puravankara Projects Ltd.
CMP : 128.25
The net debt to equity ratio at 0.58:1 and currently the company has dent of over 500 cr.

It also plans to launch high-end villa project in 26-acre parcel in Colombo and to launch 4 lakh-sq ft apartment/office complex in a downtown area.


Expansion plans
Subsidiary Provident Housing in talks to acquire land in Mumbai
Plans to enter mumbai in affordable housing projects
Set to revive Lankan foray, post-civil war

Land acquisition plans
In advanced talks to buy land
Estimates land acquisition cost at Rs1500 cr
Estimates construction financing at Rs6500 cr for first phase
Coimbatore 37 acres
Hyderabad 50 acres
Banglore 50 acres
Kochi 28 acres
Mysore 61 acres

QIP Plans
To raise Rs750 cr Via QIP
Equity dilution around 20% at CMP

Results for Q1FY10 (QoQ) cons
Net sales down 18% at Rs55.97 cr vs Rs67.92 cr
Operating profit down 6% at Rs10.24cr vs RS14.58 cr
OPM up 200 bps at 17% vs 15%
Net profit down 30% at Rs10.24 vs Rs14.58 cr


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Buy JP Associates, target of Rs 250: IIFL

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its August 24, 2009 research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.
Source : Money Control

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Buy DCM Shriram Industries, target of Rs 175: Sunidhi Sec

Sunidhi Securities & Finance has recommended a buy rating on DCM Shriram Industries with a target price of Rs 175 in its August 12, 2009 research report.

"In view of DCMSIL’s diversified business model, expected lower domestic sugar production, increase in the sugar consumption, increasing sugar prices coupled with improved Q1FY10 results by DCMSIL, the shares are recommend to 'BUY' with a target of Rs 175 in the medium term," says Sunidhi Securities & Finance's research report.
Source : Money Control

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Accumulate Mphasis, target of Rs 560: Emkay

Emkay Global Financial Services has recommended an accumulate rating on Mphasis with a target price of Rs 560 in its August 21, 2009 research report.

"Mphasis beats expectations yet again with USD 232 million (+9.2% QoQ, highest in the sector once again). ITO leads the way with a 13% sequential growth; Apps/BPO grow by 9%/6% QoQ. Higher revenue/operating margins combined with lower translation losses and effective taxes drive net profit beat. Still like Mphasis as the best demand play in the sector however cut our rating to 'ACCUMULATE' with a revised target price of Rs 560," says Emkay Global Financial Services' research report.
Source : Money Control

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Buy Crompton Greaves, target of Rs 365: Hem

Hem Securities has recommended a buy rating on Crompton Greaves with a target of Rs 365 in its August 22, 2009 research report.

"The company has reported good set of numbers for the quarter ended June 2009. Net sales stood at Rs.21975.20 million up by 8.00% from the corresponding quarter last fiscal, thereby converting in operating profit of Rs.2476.00 million. Looking at the strong financial and quarterly results, we recommend 'BUY' on this stock with a medium-term price target of Rs.365.00," says Hem Securities' report.
Source: Money Control

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Guest Bloggers are invited

IndianMoneyPlus invites guest bloggers to blog here. Guest blogging is a way of Free Promotion of a brand, Website or a Product.
We will mention your name and your web URL (Website) at the bottom of the post.
If you want to blog too often we have a revenue sharing programme for you.

All Guest Post can be mailed across indianmoneyplus[at]gmail.com


All article should be related to Stock Markets, Personal Finance, Insurance, Mutual Funds and Tax.

You can also send us across your tips along with a detailed analysis and your web URL and even your photo! Stock analysis should range from 120 to 500 words.

So why are you waiting mail us across your article and promote or Blog, Brand or Product.

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Godrej Industries Technical View

I will give you Technical View on Godrej Industries through some Charts We will see Long term and very short term chart of the company to give a BUY or SELL signal . First Lets see a brief overview of Company . Godrej Industries Limited is India's leading manufacturer of oleochemicals and makes more than a hundred chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats. Besides, it operates real estate.

Share prices are at very important Resitance Level of Rs 150 at this point . Over last 2-3 yrs , Rs 150 has played important level for this company , to understand more , view the charts below , Click on it to enlarge .


Current prices are near that resistance level of 150 once again and from last some days dancing near those levels, This is a point where one has to really be patient to let the stock give you signal for buying or selling , one can buy above 160 and sell below 140 with proper stop loss. We can also see a short term chart to make a short term buy or sell signal . See the 5 day chart below .




I would recommend buying only above 158 and selling below 148 with strick stoplosses . If you new to Trading I would recommend you first get the basics , you can refer to this Ebook for new comers in stock market .

With Godrej Properties IPO coming soon , This stock can give surprises . So watch it closely .

This post is Written by Manish Chauhan , He blogs at http://www.jagoinvestor.com

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Intraday Tips and Market Outlook for 24th Aug.

State of markets abroad :
US markets ended higher.
Europe ended higher.
Asia has opened higher.
Expect the Indian Markets to open higher.

NIFTY Technicals
NIFTY Spot : 4528.8
Support : 4440.2 & 4351.65
Resistance : 4578 & 4627.25

Day Trading Ideas :

Yes Bank : Buy above 174 for targets of 176 and 178. SL of 172

GVK Power&Infra : Buy above 48 for targets of 49.15 and 50.10. SL of 46.90

LNT : Buy above 1495 for targets of 1505 and 1520. SL of 1488

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Weekly NIFTY Technicals , News Letter and Stock Ideas

>> Sunday, August 23, 2009

Markets were volatile last week.
Get NIFTY Technicals here.

No special news this week.
Adani Power IPO which was offered at Rs100 opened at 8% premium.

Sectors on which we are bullish this week :
IT.
Pharma.

Stocks to watch out for this week :

Aurobindo Pharma : Buy above 690 for targets of 720 and 735. SL of 681

MNM : Buy above 800 for targets of 820 and 845. SL of 792

TATA Motors : Buy above 430 for targets of 440 and 448. SL of 425

Happy Investing!

Read Oil India IPO Review.

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Stock Idea : Tantia Constructions (BUY)

Investors can buy the stock with a two-year perspective but should actively consider booking profits occasionally by setting target returns.

Tantia Constructions can be a small part of the portfolio of investors with a penchant for risk. Reasonable revenue and profit growth in FY-09, a tough year especially for smaller construction companies, strong order book and presence in lucrative segments such as Railways and urban infrastructure lend themselves well to future earnings growth.

This Kolkata-based player is well-positioned to tap infrastructure development activities in the east and north-eastern regions of the country — geographies that hold higher potential for business, given the relatively slow growth, compared with the rest of the country.

At the current price of Rs 90.5 the stock trades at 4.2 times its expected earnings for FY-10. Given that the company managed a 12 per cent profit growth in FY-09 which was a difficult year, the coming year’s earnings growth with the recent spate of order inflows can only be better.

Investors can buy the stock with a two-year perspective but should actively consider booking profits occasionally by setting target returns.

This would help them lock into gains that small cap stocks often make in a market rally.

Niche player
Tantia Constructions is a contractor with presence in road, rail, bridges and urban infrastructure projects. For a small-sized contractor with revenue of Rs 450 crore (FY-09), the company has enjoyed lucrative profit margins. Its operating profit margin (OPM) for FY-09, for instance, was 13 per cent — superior to a number of listed players.

This high margin can be attributed to two factors: One, the company’s presence in urban infrastructure and rail projects that typically carry healthy return on investments. Two, its well-entrenched presence in the north-eastern regions such as Mizoram and Assam, where there is little competition, given the tough conditions; thus providing scope for higher bidding prices.

Given the government’s steady increase in the budgetary allocations for the region, and the recent creation of the North-East Rail Development Fund, Tantia could emerge as a key beneficiary especially in smaller contractual works.

Tantia has witnessed a spate of order flows from the beginning of this year taking its total order book position to Rs 1,935 crore, four times its revenue for the latest ended financial year.

Projects from Railways, including the Delhi Metro, and road projects account for a good 34 per cent each of the total order book. Urban infrastructure stands next at 28 per cent. Tantia has presence in power transmission and airports as well, though the value of such projects is not significant.

The current order-book proportion could well ensure that the company’s OPMs are in the 12-15 per cent range, provided it is not hurt by any sharp hike in commodity prices. On this account, Tantia did witness a decline in its OPMs in the quarter ending September 2008 but quickly recovered, perhaps due to price escalation clauses available for raw materials costs.

Steady revenue growth
While Tantia’s earnings growth for FY-09 was a muted 12 per cent, its earnings over the last three years has grown at a compounded annual rate of 26 per cent. Recent quarters ending March and June suggest that the company’s earnings growth is back on track after a dip in the December quarter.

Interestingly, Tantia is among the few small infrastructure players that have managed to expand their revenues (on a year-on-year basis) over the last four quarters. This provides comfort as it suggests that the execution of projects has not been hurt as a result of economic slowdown or credit crunch.

Execution, though, has come only at the cost of high leveraging. The company’s debt: equity ratio at about 1.7 times although not alarming, is rather tight, limiting scope for further leveraging, given the small size.

However, that 15 per cent or Rs 30 crore of the total Rs 192 crore of long-term debt is from FCCBs due only in 2012 provides some comfort. The decline in interest rates has also provided marginal relief to the company’s profits.
Source : Hindu Business Line

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Stock Idea : Zodiac Clothing

Shareholders can stay invested in the stock of Zodiac Clothing, which is among the premium players in the retail space, catering primarily to luxury formalwear for men. At Rs 295, the stock trades at a multiple of 17 times standalone four-quarter trailing per share earnings, at a premium to a good number of retail peers. Zodiac commands a substantial brand recall, and has design offices across countries to pick up on trends.

A low debt equity ratio, high operating margins, and quick movement of inventory bode well for the premium retailer. However, considering the company’s premium bent, declining sales growth and higher valuations, fresh investments may not be made at this level.

Brand equity
The company’s flagship brand ‘Zodiac’ is an established name catering to formal menswear, reaching out to older men. In an effort to branch out and reach a wider segment of customers, Zodiac launched two more brands that have been successful.

‘ZOD!’ is a brand aimed at party and club wear for young men, while ‘Z3’ is meant for casual wear, but could be used as office wear, again for young men.

All three are luxury brands. Related accessories such as ties, cuff-links and belts are also marketed by Zodiac, and the company is contemplating entering men’s footwear, which constitutes the majority of the Indian footwear market. Zodiac has a design studio in Mumbai with support from design and sales offices in London, New York and Dusseldorf (Germany).

Store count
Zodiac currently has a retail network of more than 1,200 stores in multi-brand outlets besides 69 (as of March 2009) own stores, including overseas outlets in Dubai. All the exclusive brand outlets are owned by the company and not franchised. This has thus translated into higher depreciation, which has kept pace with sales growth.

Deviating from strategies followed by its retail peers, Zodiac has not, and does not plan to, increase store count through franchisees. Franchising has been the preferred expansion method in this industry for some time since it requires minimal capital investment on the part of the retailer, reduced rentals and store maintenance.

Zodiac, though, is not beset by the funding woes plaguing most retailers and can therefore meet capital requirements quite easily. It operates on a debt-equity ratio of 0.21 times, a high interest cover of 11 times, a positive operating cash flow, and has reserves of Rs 87 crore to draw on.

Margin performance
Operating margins stand at 11.4 per cent for 2008-09, higher when compared with a good many of the company’s retail peers. Even so, margins have dropped from the 16.5 per cent in the preceding year, primarily due to losses on foreign exchange fluctuations.

Given its high own-store count, depreciation and taxes cut net profit margins to 5.7 per cent, though this is still higher than peers. In fact, operating and net profit margins improved to 13 and 7 per cent, respectively, in the June 2009 quarter on the backs of lower raw material costs. In terms of inventory turnover, at 5.67 times sales in FY-09, Zodiac has not only managed to improve on this count over the previous year but is also among the better performers in the retail space.

Working capital too has seen a faster rotation in the past three years, perhaps one key reason why it has managed with little borrowing for operations.

Diminishing sales growth
Superior margins notwithstanding, sales growth has been on the wane, even as consumer spending staged a revival. From a 23 per cent growth in the September 2008 quarter over the same period the preceding year, sales growth progressively declined, slipping to a 3 per cent growth in the June 2009 quarter. Added to declining sales growth, increased expenditure resulted in profits dropping 24 per cent in 2008-09.

Zodiac also has an export component; exports constitute a good 36 per cent of revenues. Even with domestic sales outpacing international sales, and the company’s efforts to keep up with changing fashion trends for the international market, it is still open to slackening global demand and forex fluctuations.

In the domestic market itself, recovery in consumer spending has centred on value-for-money products, leaving premium players such as Zodiac still searching for sales. However, the festival season is now on, and Zodiac has traditionally clocked a healthy sales growth during the September and December quarters.

If Zodiac has to capture a larger piece of the retail apparel market through diversification — either into value retail or women’s and kids’ apparel — it may yet face challenges as a result of its premium, masculine positioning in consumers’ minds.
Source : Hindu Business Line

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L&T Finance - Non Convertible Debentures (NCD): Invest

Investments can be considered in L&T Finance’s secured non-convertible debentures (NCD), especially the longer-term options as they offer attractive rates and provide a hedge against the interest rate volatility over a 10-year period. With banks’ term deposit rates hovering in the 6.5-8 per cent range across comparable tenures, the rates offered by the debenture appear attractive.

However, investors can give the five-year quarterly and semi-annual options a skip. For one, they offer lower rates of interest compared to many fixed deposit options with similar or marginally higher credit risk.

Locking into the shorter term options also appears unattractive given the expectation that interest rates will trend up over the next few quarters.

The NCD has received LAA+ and CARE AA+ ratings (both indicating ‘investment grade’) from ICRA and CARE respectively. This apart, diversified revenue stream, high proportion of capital adequacy and reasonable growth prospects of segments such as commercial vehicles, micro-financing, where the company has recently set foot and which have high yields, are the key investment arguments.

About the company
L&T Finance was set up 15 years ago as a SME financing company to fund its parent company’s vendors and distributors. Today, it has evolved into a full-fledged NBFC that provides equipment financing, tractor and commercial-vehicle financing, micro-financing and lending against shares. The company has 311 branches and points of presence.

L&T Finance had an advance book size of Rs 5,218 crore. Ninety per cent of the loans are secured by assets. The advances book is divided into corporate finance group (37 per cent of loans) and retail finance group (63 per cent of loans). Construction equipment, other retail financing such as tractor and farm equipment financing, CV financing are major segments in that order, according to the management. Most of its borrowings come from bank loans (69 per cent) followed by commercial paper and NCDs.

In the previous fiscal, the company’s interest income grew 38.3 per cent over 2007-08 to Rs 830 crore but due to the prevailing slowdown the profits fell 14 per cent to Rs 98 crore.

The interest spread is 2.7 per cent for the company, which has fallen due to increase in the borrowing costs and higher provisioning for the NPAs (non-performing assets). After providing for Rs 22 crore, the net NPA ratio is at 2.04 per cent, up from 0.7 per cent in 2007-08.

The company has a comfortable capital adequacy of 16 per cent and debt-equity ratio (post issue) of 6.68 times. .

Choosing the best option :



The issue is secured by the receivables of the company and 50 per cent of the capital raised in NCD is set aside as debenture redemption reserve.

Of the four options, the 88-month cumulative and the 10-year semi-annual one are good investment options. In the light of the new Tax Code that is expected to come into force from 2011, the post-tax returns of these longer-term options appear more attractive. For instance, for an individual earning Rs 6 lakh per annum, the cumulative option which gives pre-tax yield of 9.5 per cent on an accrued basis may yield only 7.2 per cent as he is in the 30 per cent tax bracket.

However, if the new Tax Code comes into force, the post-tax yield will increase to 8.7 per cent as he would be in the 10 per cent tax bracket. Investors can consider the cumulative option as it reduces the re-investment risk as the accrued interest continues to grow at the same rate, maintaining the yield-to-maturity at relatively higher levels.

The other instrument with similar tenor is Kisan Vikas Patra, which has 1.55 percentage points lower spread over the NCD.

The semi-annual 10-year option, on the other hand, is a one of its kind for the retail investors issued by any NBFC which provides an annualised return of 10.24 per cent, semi annually over a period of 10 years. The only other retail option for such a long tenor is a 10-year government bond with a coupon rate of 6.94 per cent.

A cumulative option is attractive for those who do not require a periodic payout. Investors seeking regular payout may choose the interest payout options.

One advantage of the current NCD issue is that it can be traded on the NSE which makes the bonds liquid. Any major increase in the price of the NCD would present the investor with an opportunity to cash out, especially if interest rates reach a ‘trough’. But investors do not face downside risk. Even if the price of the NCD falls in the secondary market, investors can redeem it at par value on maturity.

For example, the Tata Capital NCD (option 4), with a coupon rate of about 12 per cent and face value of Rs 1000, trades at Rs 1,130 giving an annualised return of more than 25 per cent because of the fall in yields of most debt instruments.

Apart from the exit option that enables selling the NCD in NSE, company may also announce buybacks from time to time and investors can voluntarily retire their NCD.

Risks
The limited track record of L&T Finance in some of its segments may create business risk. There are signs of revival in segments in which L&T Finance has exposure, but it is uncertain if the recovery will uncertain.

The NPAs have continuously trended up for the last four years from 0.1 per cent to 2 per cent and may continue to put pressure on company’s earnings for next few quarters.

Source: Hindu Business Line
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Jindal Cotex fixes IPO price band at Rs 70-75 per share

>> Saturday, August 22, 2009

Textile company Jindal Cotex, which will come out with its initial public offer on August 27, has fixed the price band for the issue at Rs 70-75 per share to raise about Rs 94 crore.

The Ludhiana-based company, which would issue 1.24 crore shares for public subscription, has fixed the price band for the issue at Rs 70-75, the company said in a press release.

At the upper price band the company expects to garner Rs 93.40 crore while at the lower price band it hopes to raise Rs 87.17 crore.

Up to 50 per cent of the issue would be allocated to Qualified Institutional Buyers, the release said.

The funds of the forthcoming issue would be used mainly for entering technical textile space through investment in wholly-owned subsidiaries -- Jindal Medicot and Jindal specialty Textiles, it said.

Jindal Cotex is engaged in manufacturing acrylic and polyester yarns, including polyester viscose, polyester cotton, and combed and carded yarns, used in the making of apparels, suiting and knitted fabrics.
Source : Economic Times

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OIL India IPO Trends, Analysis and Review

OIL India IPO has been announced as the next Big IPO from Government sector.
OIL India Ltd is the second biggest Oil and Natural Gas company in India.
The company has already filed DHRP with SEBI. Govt of India has decided to sell 10% Equity in this company and promoter stake will fall to 78% after the offering.

IPO Date: Will open for Subscription on September 7 2009 and closes on 11th Sept.
Price Band: Yet to be announced.Rs.1200 to Rs. 1450

We have posted research Reports here : <Oil India IPO Review and Analysis
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ONGC Videsh IPO,OVL IPO

ONGC Videsh IPO , OVL IPO Subscription , Price , Date
ONGC may soon launch IPO for its subsidiary ONGC Videsh Ltd ( OVL ) .

Government is divesting in its jewel companies this year. After many successful IPOs , Government may announce this offering to raise funds for overseas Buy.
ONGC Videsh Ltd is the company engaged in Oil and Gas exploration and it has operations in many countries directly and also through JV.
Operations run through Africa , Asia , America , Russia.
The company has assets in Russia (Sakhalin-I), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A) and Venezuela (San Cristobal Project).
And many projects are in Exploration Phase.
IPO Subscription and other information will be posted here.

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Sahara Prime City IPO - The 1 Billion $ issue

Sahara group Real Estate Arm , Sahara Prime City Ltd is in the verge of filing Draft prospectus for a propsed IPO Offering. Company plans to raise Rs. 5000 crores for exansion plans using this IPO. This offer can be expected in the year end.
Real estate hasn’t seen any ipo in the past 1 year due to adverse market condition.
Ambey valley project is however not under this Sahara Prime City Ltd.
All other details about this Sahara Primecity IPO will be posted soon.


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Cox & Kings prepares again for IPO issue

With the primary market showing signs of revival, one of India’s oldest tour operators, Cox & Kings, has initiated the process for an initial public offering (IPO) and has filed the preliminary draft prospectus with market regulator Sebi. The travel company had earlier planned to go for an IPO last year but was forced to shelve its plans because of adverse market conditions.

The scenario has now improved with Indian companies having raised over Rs 9,000 crore so far this year. Cox & Kings expects to raise $100 million through the IPO.

If the IPO materialises, Cox & Kings will be the third well-known listed company in the travel space. Interestingly, unlike travel industry’s sibling—hotels—not too many travel services are listed.

The other publicly quoted travel firms include Thomas Cook and International Travel House. While Thomas Cook trades at Rs 53, International Travel House, owned by ITC, on Friday closed at Rs 97.65 on BSE.

Cox & Kings median sale of 18.49 million shares would comprise a fresh issue of 15.45 million shares and sale of 3.04 million shares by its current financial investors, Lehman Brothers, Deutsche Securities and Merrill Lynch. The company has also reserved two lakh equity shares for its employees.

The issue would constitute 29.4% of the fully diluted post-issue paid-up capital of the company, Cox & Kings said in a media statement. It added that it was considering a pre-IPO placement. India Infoline is the sole book running lead manager to the issue.
Source : Economic Times

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JSW Energy IPO likely in two months

Sajjan Jindal-led JSW Energy is looking to come out with its initial public offering in the next two months to raise about Rs 3,000 crore for partly funding its expansion plans.

"Provided we get the necessary regulatory approval, we may come out with an IPO in the next two months," JSW Group CFO Seshagiri Rao said in an interview.

The company had last week filed for the Draft Red Herring Prospectus (DRHP) with SEBI to hit the capital market. The market watchdog normally takes 30 days to give its nod for the initial public offer (IPO), he said, adding "subject to that JSW Energy may come out with the offering."

The company is targeting to install a capacity of 11,000 MW in the next five years which would entail an investment of about Rs 55,000 crore.

Currently, JSW Energy is setting up a 3,200 MW super critical thermal power plant entailing an investment of Rs 15,000 crore at Ratnagiri in Maharashtra.

The company had earlier withheld its plans to come out with an IPO citing weak market condition amid the global financial meltdown.

With improved market conditions, Adani Power and NHPC were the first two power firms to give shape to their IPO plans. While, Adani Power got listed today at Rs 105 on the Bombay Stock Exchange, a premium of five per cent over its issue price, state-run NHPC is expected to get listed soon.
Source : Economic Times

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Buy Apollo Tyres, target of Rs 53: Sharekhan

>> Friday, August 21, 2009

Sharekhan has maintained its buy rating on Apollo Tyres with a target price of Rs 53 in its August 20, 2009 research report.

"According to media reports, Apollo Tyres is contemplating to increase tyre prices in the wake of rising raw material prices. Price of natural rubber, the key input for tyre manufacturers, has inched to around Rs102/kg at present from the low of around Rs70/kg in January 2009. At the current market price the stock is trading at 5.4x its FY2011 earnings and EV/EBITDA of 2.5x. We maintain our Buy recommendation with price target of Rs 53," says Sharekhan's research report.
Source : Money Control

Check out our report on Apollo Tyres

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5 smart ways to tackle Income Tax

Submitting proof of investments is an extremely traumatising affair for all salaried individuals. First, you have to deal with the painful task of collecting and organising hordes of receipts. To top it off are the anxiety levels of not knowing if you’ve invested enough and worrying about how much money you’ll lose to tax in the following couple of months.

Naturally, we all have tax consultants, who will tell us what we need to do to ensure the least possible impact of tax, but it’s even more helpful if we, ourselves are very clear on exactly how much of our salary can we claim as exempted from tax. This way, we know exactly how much we must invest to minimise tax liability. Make no mistake, investing in order to save tax is absolutely necessary, but knowing deductibles on your salary ensures you don’t overdo your tax saving investments.

Basic salary: high or low?
If you earn a salary of Rs 1,00,000 per month, you are definitely aware that the basic amount in your salary is taxable. A high basic salary will come in good stead when you retire, but the flip side, as mentioned above is the tax liability of the same. Let’s say your basic is Rs 40,000. That would make your HRA as 20,000, which can only be claimed as tax deductible if you submit proof of rent to your employer.

Allowances: Double edged sword
Take note that any allowances included as a fixed component in your salary, like petrol, mobile phone bills, etc will be tax deductible. However, if the same were being given to you separately as reimbursement, these aren’t deductible for tax. So, if your pay package has reimbursements as opposed to allowances and that too separate from your monthly package these can be claimed as exempt from tax.

Provident Fund contribution
The Provident Fund contribution from your salary is deductible. You don’t really need to specify this in your declaration. This is something your employers factor in when deducting tax. If you have switched jobs and requested for withdrawal of PF, then the number of years of service will determine whether that withdrawn PF amount is taxable or not. According to the law, PF withdrawal after continuous service of 5 years (with single or multiple employers) is exempt from tax. So, if you’ve worked for less than 5 years, then the interest component on PF is treated as ‘income from other sources’ and is hence taxable. Also, the employer’s contribution is considered as income and is therefore taxable.

Home loans: boon and bane
There is one oft-used and essential tax-saver – home loans. What is commonly done (if both partners are working) is that one partner shoulders the EMI responsibility while the other handles the household expenses. Instead what can be done is that both the partners become co-applicants to the loan. This mean each can claim the rebate individually. Let’s say, the rebate to the loan is Rs 1,00,000 plus another lakh on principal amount, if you have a co-applicant to the loan, then each of you can individually claim Rs200,000 (that’s Rs400,000 in total). Use the rest of your taxable income for some sensible investment then. Note though, home loan tax benefits will come to both the co-applicants only if each has a source of steady income (and proof of payment made is submitted by both). Dependant partners can be co-applicants but won’t avail tax benefits if they aren’t earning.

And, finally education
Another expenditure to take note of, is the amount you spend on your child’s education. In your child’s school fees, there is the tuition fee component, which is entirely tax deductible (under Section 80 C). So keep those receipts handy.
These are some basic deductions, applicable to salaried individuals that need to be factored in before you invest (last-minute) for ‘tax purposes’.
Article Source : UTVi

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Stock Research KS Oils

Stock : KS Oils

Acquired an edible oil refinery in Haldia port from Kolkata-based Ambo Agro Products
Deal is valued in the range of Rs 125-150 cr


Factors to watch
Edible oil companies are looking at buying refineries nearer to ports
Nearness to port to reduce transportation costs and take advantage of falling crude oil prices
Sources said that debt to fund 2/3rd of the acquisition and the rest from internal accruals
First refinery in east India for the company
The refinery has a capacity of nearly 500 tonne crushed per day (tcpd)
The acquisition will have a total refining capacity of 1,800 tcpd
Newly acquired unit will sell refined oil in WB, Bihar, Jharkhand, Orissa, North East and UP
Plans to become an integrated edible oil player in SE Asia and a leading FMCG player in India
The acquisition is a part of backward integration
To refine crude palm oil produced at the company’s palm plantations in Indonesia and Malaysia
Major portion of edible oil companies revenues’ are generated in second half of the financial year

About the company:

Largest rapeseed crusher in India
Manufactures products in mustard oil, soybean oil and palm oil categories
Produces brands like Kalash, Double Sher, K S Gold
Enjoys 7% market share in the overall mustard oil segment
Has a 25% market leadership in branded mustard oil
Current installed capacity of 1,475 MT/day
Presence across eastern and central India
Source: UTVi

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Intraday Tips and Market Outlook for 21st Aug.

US Markets ended positive.
Europe ended positive too.
Asia has opened mixed.
Expect a flat to positive opening on the Indian Stock Markets.
The logical target for the Sensex is 14915-14685-14234 and the resistance is at 15256-15575
Nifty: (4453) the logical target for the Nifty is at 4359-4247 and resistance is at 4533-4632

Day Trading Ideas :

RNRL : Buy above 80 for targets of 81.50 and 83.25. SL of 78.90

MNM : Buy above 775 for targets of 782 and 790. SL of 771

LNT : Buy above 1490 for targets of 1500 and 1510. SL of 1485

Gujrat NRE Coke : Buy above 54 for targets of 55 and 56.25. SL of 53.10

Happy Investing !
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Add Sterlite Ind, target Rs 684: IIFL

IIFL has recommended an add rating on Sterlite Industries with a 12-month price target of Rs 684 in its report dated August 20, 2009.

"Sterlite has raised its bid for ASARCO’s acquisition with the upfront cash component now at USD 2.1 billion along with an unchanged USD 207 million in staggered note payments. This bid would be value-neutral at long-term copper prices of USD 4,500/tonne. Current copper price is at USD 6,100/tonne, thereby leaving headroom for further increase in the bid-amount. ASARCO falls within the highest quartile in terms of cost of production. This acquisition would be a departure from the company’s strategy of being cost leader in all its businesses. Sterlite is already executing a number growth projects in India with potential of further expanding its capacity in power business which in our view could be more value accretive as compared to ASARCO’s acquisition. Add Sterlite Industries, with 12-month price target of Rs 684," says IIFL's report

Source: Money Control
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Add Housing Development Finance Corporation: IIFL

IIFL has recommended an add rating on HDFC in its report dated August 20, 2009.

"Over the past few years, HDFC has transformed itself from a pure mortgage player to a financial services conglomerate that derives 44% of its value from non-mortgage businesses. HDFC has three distinct strengths that distinguish it from an average bank or NBFC. Firstly, it has a low-cost and diversified funding base. Its AAA credit rating and familiarity amongst retail depositors allow it to borrow at very competitive rates. Secondly, its operating costs are by far the lowest amongst all financial intermediaries in India and perhaps globally. And finally, its credit costs have consistently remained low and are also the lowest in the industry. Growth prospects remain bright for all businesses and investors can trust HDFC for flawless execution. This, in our view, justifies the stock’s premium valuation of 4.0x FY11ii P/B," says IIFL's report.

Source : Money Control
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Buy Bharti Airtel, target of Rs 453: Sharekhan

Sharekhan has maintained its buy rating on Bharti Airtel with a target price of Rs 453 in its August 19, 2009 research report.

"For April-June 2009 quarter, Bharti Airtel (Bharti) has been successful in strengthening its gross revenue (GR) market share to 33.8% and maintaining its subscriber market share at 24%, despite the tough competition due to entry of new players. We maintain our 'Buy' recommendation and price target of Rs 453 for the stock," says Sharekhan's research report.

Source : Money Control
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Intraday Tips and Market Outlook for Aug 20th

>> Thursday, August 20, 2009

US markets ended in green.
Europe ended mixed.
Asia has opened flat.
Expect the Indian Markets to open flat to positive.

NIFTY Current Spot : 4394.1
Support:4284.25 & 4339.15
Resistance: 4463.25 & 4532.45

Adani Power is listing today. Grey Market premium is Rs 6 -8/-
Day Trading Ideas :

IFCI: Buy above 52 for targets of 53.10 and 54. SL of 50.95

NTPC:Buy above 203.10 for targets of 205 and 206.50. SL of 201.10

RPower: Buy above 156 for targets of 158 and 160. SL of 154.10

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Intraday Tips and Market outlook for 19th Aug

>> Wednesday, August 19, 2009

US Markets ended higher.
Europe ended higher.
Asia has opened flat to negative.
The logical target for the Sensex is 14731-14234 and the resistance is at 15256-15575
Nifty: (4559) the logical target for the Nifty is at 4325-4247 and resistance is at 4533-4632

Day trading Ideas :

Adlabs : Buy above 320 for targets of 326 and 335. SL of 314

RNRL : Buy above 82 for targets of 83 and 84. SL of 80.50

IFCI : Buy above 52 for targets of 53.50 and 54.25

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Intraday Tips and Market outlook for August 18th

>> Tuesday, August 18, 2009

US markets ended in deep red.
Europe also ended in red.
Asia has opened Flat.
Expect the Indian Markets to open flat to positive.

NIFTY Technicals :
Current Spot : 4387.9
Supports : 4341.6 & 4295.4
Resistance : 4467 & 4546.2

Day Trading Ideas :


DLF : Buy above 368 for targets of 375 and 379. SL of 359

ICICI Bank : Buy above 705 for targets of 715 and 722. SL of 699

RNRL : Buy above 79 for targets of 81 and 83. SL of 77.50


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Market outlook and Intraday Tips for August 17th.

>> Monday, August 17, 2009

US markets ended lower.
Europe also ended in red.
Asia has opened in deep red.
Expect the Indian Markets to have a gap down opening.
The support for the Sensex is 15217 and the logical technical target is at 15621-15724-15880
Nifty: (4580) the support for the Nifty is at 4520 and logical technical target at 4622-4652-4594

Day trading Ideas :


Jet Airways : Buy above 265 for targets of 272 and 276. SL of 261

Bhushan Steel : Buy above 930 for targets of 940 and 950. SL of 922

IFCI : Buy above 51.50 for targets of 52.25 and 52.90. SL of 50.90

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NIFTY Technicals and Weekly Free Stock Tips

>> Sunday, August 16, 2009

NIFTY had a relatively good run this week compared to last week.
The week ahead looks good.

NTFTY Trin : 2.294
Current spot : 4580.05
Support : 4425 and 4375
Resistance : 4641 and 4729

We have Adani Power Listing on Thursday i.e. 20th.

Weekly Stock Tips :

Bharti Airtel : Buy above 410 for targets of 430 and 455. SL of 395

Cairn India : Buy above 250 for targets of 260 and 270. SL of 242

GMR Infra : Buy above 135 for targets of 145 and 152. SL of 130

IndusInd Bank : Buy above 95 for targets of 103 and 110. SL of 89

NIFTY Autogenerated technical.

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Intraday Tips and Market outlook for 14th August

>> Friday, August 14, 2009

US markets end in green.
Europe ended higher.
Asia has opened higher.
Expect the Indian Markets to open higher.
The support for the Sensex is 15235 and the logical technical target is at 15724-15880
Nifty: (4605) the support for the Nifty is at 4550 and logical technical target at 4652-4594

Day Trading Ideas :


Adlabs : Buy above 330 for targets of 334 and 337. SL of 326

Cairn India : Buy above 244 for targets of 249 and 253. SL of 239

DLF : Buy above 402 for targets of 406 and 410. SL of 397.

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City Union Bank an underperformer: Karvy

Karvy Stock Broking has maintained its underperformer rating on City Union Bank with a target price of Rs 19 in its August 13, 2009 research report.

"In Q1FY10, City Union Bank (CUB) reported marginal de-growth of 0.7% (Y/Y) in net interest income to Rs 563 million compared to our estimates of Rs 604 million; deviation from our estimates was due to higher cost of deposits. We maintain our Under Performer rating on the stock with a price target of Rs 19 at 1.1x adjusted book value FY11. At current price, the stock quotes at 1.33x ABV FY11," says Karvy's research report.

Source : Money Control

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Add Ambuja Cements, target of Rs 110: IIFL

IIFL has maintained its add rating on Ambuja Cements with a target price of Rs 110 in its August 13, 2009 research report.

"We reiterate our positive view on Ambuja Cements (ACL), post our meeting with the management. The company’s 2.2mtpa Bhatapara clinker expansion is nearing completion and is likely to be commissioned in September 2009. Post stabilisation of this unit in 1QCY10, ACL will stop buying clinker for its Farakka unit. High-cost coal inventory was exhausted in 2QCY09 and ACL’s average price of imported coal is likely to be 25% lower in 3QCY09 compared to 2QCY09 (40% of the coal ACL uses is imported)."

Source : Money Control.

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Hold Shree Cements, target of Rs 1750: Sharekhan

Sharekhan has maintained its hold rating on Shree Cements with a target price of Rs 1750 in its August 12, 2009 research report.

"Despite the overall slowdown in the economy, the revenue of the company grew by a robust 29% in FY2009. We maintain our Hold recommendation on the stock with price target of Rs 1,750 (valued at EV/tonne of USD90)," says Sharekhan's research report.

Source : Money Control

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Market Outlook and Intraday tips for 13th August.

>> Thursday, August 13, 2009

US markets ended higher.
Europe also ended in green.
Asia has opened positive with a gap up.
Expect the Indian markets to have a gap up opening.

NIFTY Current Spot : 4457.5
Support : 4391.45 & 4325.45
Resistance : 4491.4 & 4525.3

Day Trading Ideas :

MNM : Buy above 785 for targets of 786 and 798. SL of 777

LNT : Buy above 1434 for targets of 1450 and 1460. SL of 1428

RNRL : Buy above 78.10 for targets of 79.50 and 80.45. SL of 77.25

IFCI : Buy above 47 for targets of 48.15 and 49.35. SL of45.85

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Intraday Tips and Market outlook for 12th August.

>> Wednesday, August 12, 2009

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

NIFTY Current Spot : 4471.35
Support : 4409.9 & 4348.45
Resistance : 4521.8 & 4572.25

Day Trading ideas :


GVK Power & Infra : Buy above 47.10 for targets of 48.45 and 49.10. SL of 45.90

HDIL : Buy above 262 for targets of 265 and 269. SL of 258

Adlabs : Buy above 319 for targets of 325 and 331. SL of 315

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Buy CMC, target of Rs 1084: Reliance Money

Reliance Money has recommended a buy rating on CMC with a target price of Rs 1084 in its August 7, 2009 report.

"CMC is witnessing significant business traction and profitability in the last few years with its renewed business focus on high margins business coupled with “Joint-goto- Market” strategy with TCS is also playing a big role in the business transformation. In the last three fiscals over FY07-09, CMC has recorded EPS CAGR of 29%. We recommend a 'BUY' with 12 months target Rs 1084, at our target price stock will be valued at 11x FY11E," says Reliance Money's research report.

Source: Money Control.

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Buy KSK Energy, target of Rs 225: IIFL

IIFL has recommended a buy rating on KSK Energy with a 12-month target of Rs 225 in its August 11, 2009 report.

"KSK Energy (KSK) builds and operates power plants on the ‘group captive generation’ principle, making its revenue model a unique one in India. It currently has 144MW capacity operational, and is set to commission an additional 675MW through 3QFY10-1QFY11 in phases. Successful completion of these projects would showcase KSK’s ability to undertake 3.6GW projects at Chhattisgarh, and enhance visibility of projects for a further 6GW."

Source : Money Control.

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Grasim an underperformer, target Rs 2303: Karvy

Karvy Stock Broking has maintained its underperformer rating on Grasim Industries with a revised price target of Rs 2303 in its report dated August 11, 2009.

"We have revised our earning estimates and price target upward due to delay in cement price decline and cost reduction. However despite earning upgrade; the company is currently trading at PER multiple of 11.3x and EV/EBIDTA multiple of 5.3x on FY11E earning. Looking at bleak outlook for cement and VSF segment; we maintain our underperformer rating with revised target price of Rs 2,303 based on our SOTP valuation," says Karvy Stock Broking's report.

Source : Money Control.

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Hold Sanwaria Agro Oils, target of Rs 72: KRChoksey

KRChoksey has maintained its hold rating on Sanwaria Agro Oils with a price target of Rs 72 in its report dated August 10, 2009.

"The consumption of soy oils is outstripping the production and also use of oils for bio fuels will be a key bullish factor for increasing demand of soy oil. Also, margins for SAOL will improve with production of production of soyabean derivative products having higher margins. With this, we maintain our ‘HOLD’ recommendation on Sanwaria Agro Oils, with a target price of Rs 72 giving an upside potential of 10% from its current levels," says KRChoksey's report

Source: Money Control.

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Cinemax India: Buy

Investors with a two-year horizon can buy the shares of Cinemax India, considering that the worst may be over for the company and the multiplex industry, with a string of releases charted for the next few months, steep increases in footfalls, and occupancies and increases in food and beverage revenues.

At Rs 50.50, the stock trades at about 14 times its expected 2009-10 earnings and 11 times its next year's estimates; on very conservative assumptions. This is at a discount to Fame India, despite the company's larger scale of operation.

The past two-three quarters were exceptionally challenging for multiplexes with the Mumbai terror attacks reducing footfalls and occupancies, the IPL-2 keeping audience glued to the small screen and the standoff with distributors over quantum of revenue sharing, delaying fresh releases.

For the June quarter, the company's revenues fell by over 18 per cent over June 2008 to Rs 25.3 crore, while EBITDA fell by 88 per cent to Rs 0.53 crore.

Many other multiplex operators incurred losses even at the EBITDA-level.

But with these one-off challenges behind it, the prospects of improvements over the next few months are bright. Recent reports suggest that in July, after the multiplex-distributor tussle ended, there has been a doubling of monthly box-office earnings.

Cinemax, which has 74 screens across 24 locations and many in the lucrative Mumbai market, has benefited from recent releases. Multiplex players have benefited from the large draw such movies as New York, Kambakt Ishq and Love Aaj Kal have had. Over 50 movie releases are expected over the next two quarters (that were held back due to the tussle), starring some big names in Bollywood.

Some big-ticket ones such as Kaminey, 3 Idiots, London Dreams, and Kites are expected to set the box-office ringing. Surprisingly, even English movies such as Terminator Salvation and The Hangover are reportedly running at 60-70 per cent occupancy.

Cinemax has seen its average ticket price decline to Rs 114 in the June quarter from the Rs 125 levels earlier. But the average spends on food and beverages have witnessed an increase to Rs 31 from Rs 29. As occupancies increase to 25 per cent plus levels on the back of higher footfalls and hit movies, the ticket price is set to increase.

The company, despite the slump in the June quarter, hopes to achieve an EBITDA margin of 25 per cent for the full year and an occupancy level of 25-27 per cent.

Source : Hindu business Line.

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Supreme Industries: Buy

nvestors with a risk appetite for commodity stocks can buy the stock of plastic products maker Supreme Industries (Rs.295). The company’s diversified product profile — consisting of pipes, packaging and industrial products — makes it a beneficiary of spending in segments such as irrigation, housing and infrastructure.

A relatively stable outlook for raw material costs and demand, after several challenges last year, make this a reasonable time to pick up the stock. The company’s current market price discounts the trailing four quarter earnings by eight times, at a par with players such as Sintex Industries.
Product profile

Supreme Industries operates across four segments — plastic pipes, which contribute to 40 per cent of total turnover, packaging (27 per cent), industrial (21 per cent) and consumer products (12 per cent).

Pipes made by the company find extensive use in irrigation, bore-wells, portable water supply, plumbing, drainage, underground sewerage, rainwater harvesting and water management. A derived demand could come from the increase in rural irrigation as well infrastructure outlays. Replacement of metal pipes with plastic is also a positive factor for the company.

The packaging division caters to a wide spectrum of user industries, such as sports goods, electronics, food items, textiles, healthcare, toys, insulation and construction. Offerings in this segment range from packaging film to protective packaging material. The company also makes cross laminated films or tarpaulin sheets which have agricultural and industrial applications.

In the industrial products segment, Supreme Industries manufactures dashboards and other components for automobile companies (Tata Motors and Mahindra and Mahindra being some of the important customers) and equipments for consumer electronic goods such as LCD TVs and air-conditioners.

That apart, it also manufactures industrial craters for storage of textiles, fisheries, food items and soft-drinks. PepsiCo India and Coca Cola India are major customers. In the consumer products division, the company is a market leader in the moulded furniture segment, which offers scope for better margins.

Recently, the company expanded its production capacity of cross-laminated film and products, at its Halol, Silvassa, Gadegaon and Pondicherry plants, from 9000 TPA to 13000 TPA. It has also increased the capacity of injection moulding machines and ancillary equipments and has started a new factory at Jamshedpur for the ‘World Truck’ project of Tata Motors. Similarly, it has expanded plant capacities in Gadegaon and Jalgaon to launch varieties of plastics piping systems.
Financials

While operating profit margins from segments such as pipes and packaging are vulnerable to raw material cost increases, Supreme Industries has managed to hold its margins at a steady 11-12 per cent in recent years. Volume driven growth in the pipes segment has been complemented by reasonable pricing power in the industrial and consumer segments.

It has managed a compounded annual sales growth of 9 per cent and operating profits growth of 13 per cent in the last three years. However, performance in 2008-09 did take a brief knock from the ups and downs of the commodity cycle. The company ended 2008-09 with a sales growth of 26 per cent and net profits growth of 82 per cent, but slipped briefly into losses in the December 2008 quarter mainly due to unusual fluctuations in raw material prices — polypropylene prices fell steeply from $1800 a tonne in July 2008 to $625 by end of the year. (Major raw materials consumed are PVC resin, polyethylene and polypropylene and they account for nearly 80 per cent of the total raw materials cost.) That prompted order cancellations, as the company’s customers expected a further fall in the prices of plastic products and opted to wait before making fresh purchases.

With commodity prices improving along with the crude oil cycle, polypropylene prices have since moved back to $940 levels. Net sales and margins started improving from the March quarter as material prices began to stabilise and customers resumed their orders. The expansion in the past year, pick-up in demand and a tilt in product mix towards high margin products, point to stability in margins in the coming quarters.
Risk factors

Unlike its peers, such as Time Technoplast and Sintex Industries, Supreme Industries has negligible exposure to foreign currency fluctuations. More than 60 per cent of the raw materials are domestically procured and less than 10 per cent of its total turnover is through exports to countries such as the UK Australia and New Zealand.

However, another bout of volatility in crude oil and thus polymer prices could destabilise margins.

Source : Hindu Business Line.

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Dhampur Sugar Mills (Rs 77.65): Buy

We recommend a buy in Dhampur Sugar Mills from a short-term perspective. It is evident from the charts of the stock that it has been trending upwards since November 2008 low of Rs 19.50. Since then, it has been forming higher peaks and higher troughs. In mid-July, the stock took support around Rs 50 and bounced resuming its long-term uptrend. The stock surpassed a medium-term resistance around Rs 72last week and is currently trading well above 21- and 50-day moving averages. The intermediate-term uptrend from March low is intact. We notice that there is an increase in weekly volume over the past four weeks. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The daily as well as weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook is bullish on the stock. We anticipate it to move up until it hits our price target of Rs 85. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 73.

Source : Hindu Business Line

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Intraday Tips and Market outlook for 11th August.

>> Tuesday, August 11, 2009

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

NIFTY Current Spot : 4437.65
Support : 4370.75 and 4304
Resistance : 4533.4 and 4629.25

Day Trading Ideas :

RNRL : Buy above 77 for targets of 78.50 and 79.85. SL of 75.25

ICICI : Buy above 720 for targets of 726 and 734. SL of 712

IRB Infra : Buy above 176 for targets of 178 and 181. SL of 172

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Stock Picks & Market Newsletter from Indian Institute of Management student fund Credence Capital

>> Monday, August 10, 2009

Hello Friends, this is a friendly message for all the entire investor community. The students of premier management school of India, IIM-Lucknow, are now working together with India’s Social Investing community – stockezy.com, to bring market information and stock recommendations to you.

Yes this is available to you for free. Simply visit –http://stockezy.com/profiles/credence_iiml/ and see Market Outlook Newsletters and Stock Recommendations complete with detailed analysis. It is rare to find such in-depth information both in terms of Technical Indicators and Fundamental Analysis, which will help you decide why you invest your hard earned money in a specific stock. Stockezy proprietary software system tracks Starting Price, Target and Stop Loss levels for each stock recommendation.

You can also drop a message to the IIM-L team by simply adding a comment on the newsletter or stock pick.

This weeks market outlook can be found at –http://www.stockezy.com/opinions/credence_iiml/
This weeks Stock Picks can be found at –http://www.stockezy.com/picks/credence_iiml/


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Market outlook and Intraday Tips for August 10th.

US markets ended higher.
Europe ended higher too.
Asia has opened higher.
Expect the Indian Markets to open positive.

NIFTY Spot : 4481.4
Support : 4432.9 & 4384.45
Resistance : 4560.8 & 4640.3

Day Trading Ideas :

Adlabs : Buy above 334 for targets of 345 and 355. SL of 328

Axis Bank : Buy above 820 for targets of 835 and 845. SL of 810

HCC : Buy above 106.25 for targets of 108 and 109.45. SL of 105.10

GMR Infra : Buy above 132.20 for targets of 135.45 and 141.10. SL of 129.85

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Weekly NIFTY Technicalsand short term Stock Tips

>> Sunday, August 9, 2009

NIFTY Started of good on Monday but by the end of the week gave up all.

NTFTY Trin : 1.44
Current spot : 4481.4
Support : 4390 and 4275
Resistance : 4551 and 4685

Expect volatility in coming sessions.

Stock tips for the week.

Aban offshore : Buy above 1080 for targets of 1105 and 1128. SL of 1065

BOB : Buy above 430 for targets of 436 and 442. SL of 425

DLF : Buy above 375 for targets of 385 and 398. SL of 366

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Intraday tips and market outlook for 7th August.

>> Friday, August 7, 2009

US and European Markets ended in red.
Asia has opened negative.
Expect the Indian Markets to open negative.

NIFTY Current Spot : 4585.5
NIFTY Support : 4523.95 & 4462.5
NIFTY Resistance : 4682.5 & 4779.55

Day Trading Ideas :

DLF : Buy above 381 for targets of 385 and 389. SL of 377

LNT : Buy above 1487 for targets of 1496 and 1502. SL of 1479

ICICI Bank : Buy above 768 for targets of 774 and 787. SL of 759

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Intraday Tips and Market outlook for 6th August.

>> Thursday, August 6, 2009

US markets ended negative.
Europe also ended in red.
Asia has opened flat.
Expect the Indian Markets to open flat to positive.
NIFTY : 4694
NIFTY Support : 4643.55 and 4593.10
NIFTY Resistance : 4730 and 4767.7

Day Trading Ideas :


REC : Buy above 198.10 for targets of 199.45 and 200.10. SL of 197.25

Adlabs : Buy above 352 for targets of 355 and 358.25. SL of 349

HDIL : Buy above 274 for targets of 277 and 280. SL of 271

Happy Investing !

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Intraday Tips and Market outlook on 5th August.

>> Wednesday, August 5, 2009

US markets ended flat but in green.
Europe ended with minor loses.
Asia has opened mixed.
Expect the Indian Markets to open positive.
The support for the Sensex is 15725-15600 and the logical technical target is at 15895-16046-16507
Nifty: (4681) the support for the Nifty is at 4651 and logical technical target at 4704-4789-4926
Day Trading Ideas :

MNM : Buy above 930 for targets of 945 and 954. SL of 919

IDBI : Buy above 107 for targets of 108.50 and 110. SL of 105.50

RNRL : Buy above 83 for targets of 85 and 86.50. SL of 82.10

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Intraday Tips and market Outlook for 4th Aug.

>> Tuesday, August 4, 2009

US markets ended higher.
Europe ended higher too.
Asia has opened Positive.
Expect the Indian Markets to open positive (Higher).
The support for the Sensex is 15790 and the logical technical target is at 16046-16507
Nifty: (4711) the support for the Nifty is at 4618 and logical technical target at 4789-4926
Day Trading Ideas :

MNM : Buy above 920 for targets of 927 and 935. SL of 910

NTPC : Buy above 218 for targets of 222 and 225. SL of 215

RNRL : Buy above 84.10 for targets of 85.50 and 86.90. SL of 83.25

Praj Ind : Buy above 100.10 for targets of 102.50 and 104.10. SL of 99.20

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Larsen Toubro wins order worth 5300 crores

L&T has won two major offshore platform contracts from ONGC aggregating over Rs. 5300 crores.The order is for the Mumbai High North (MHN) process platform & living quarters project, with an additional order for supply of three process gas compression modules to be installed in the same complex. The Execution time for the same is 33 months.

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Intraday Tips and Market outlook for 3rd August.

>> Monday, August 3, 2009

US markets end flat.
Europe ended in red with minor losses.
Asia has opened flat to positive.
Expect the Indian Markets to open flat to positive.

The support for the Sensex is 15000 and the resistance to the up move is at 16046
Nifty: (4636) the support for the Nifty is at 4557 and the resistance to the up move is at 4700-4789

Day Trading Ideas :

RNRL : Buy above 84 for targets of 85.50 and 87.10. SL of 82.25

IFCI : Buy above 51.85 for targets of 52.10 and 53.15. SL of 50.20

HDIL : Buy above 280 for targets of 285 and 289. SL of 274

REC : Buy above 205 for targets of 208 and 210. SL of 202

NTPC : Buy above 217 for targets of 219 and 222. SL of 214.85

Happy Investing !

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Weekly News letter and Stocks to watch out for.

>> Sunday, August 2, 2009

Last week we saw Indian stocks giving some good returns.
Inflation is still in negative zone.
RIL and RNRL have yet not come to a solution.
Adani power gets 22 times over subscribed.
Good results posted by Indian Companies.

Sectors to watch for :

  • IT
  • Infra
  • PSU
Stocks to watch out for :

  • LNT : Buy above 1415 for targets of 1430 and 1440. SL of 1389
  • RNRL : Buy above 84.10 for targets of 85.45 and 86.10. SL of 82.85
  • DLF : Buy above 401 for targets of 410 and 425. SL of 392
  • ICICI Bank : Buy above 765 for targets of 779 and 789
NIFTY Weekly technicals

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Boom boom boom : Nifty looks strong | Weekly technical analysis.

NIFTY Showing some amount of strength.
The global cues are looking positive.

NIFTY Technicals :

NIFTY TRIN at 1.321
NIFTY Range - Between 4400 - 4850

Current Spot - 4636.5
Support - 4580 and 4505
Resistance - 4695 and 4790
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

NIFTY Short term target : 4750.



NIFTY Autogenerated technical analysis.

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Blog carnival on Saturday !

>> Saturday, August 1, 2009

Aban Offshore Technical Analysis :
Stock is still in uptrend with immediate resistance near 1180-1200 zone.Immediate Breakout could target 1800 in medium term. However failure will once again could take back to 728 zone once again.21 day Twiggs money flow indicator above zero shows a buying pressure in this stock. Read Full Story on Market Calls

Power Companies leading the Renewed IPO Buzz :
Yes, the buzz is back and testing markets and testing mettle of individual investors. Three power sector companies, viz. Adani Power, Indianbulls Power, and NHPC, are in fray to get investors money. I had expressed my thoughts about Reliance Power IPO. Let us revisit some of the few tidbits in the context of this latest buzz. Read Full story on TIPBlog

How Builders are Not keeping their Promises in Real Estate :
Deepak Shenoy came up with a very nice article on How Builders are not keeping there promises while delivering the Residential Properties . He shares his views on Why it does not make sense to buy Residential Properties currently at idiotic prices level currently . He also links to another article of this where he compares Renting Vs Buying a Flat . Read Full post on JagoInvestor.


NHPC IPO Analysis and Review :

NHPC IPO will hit Indian Markets on 7th of August. Just like Adani Power issue I think this issue will also be in high demand. Read Full story on SQUAMBLE


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