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Showing posts from February 24, 2008

IFCI banks on financial aid by government

IFCI jumped 3.67% to Rs 64.90 at 15:30 IST on BSE after Government allocated Rs 433 crore to the company in the Union Budget 2008-09 for restructuring old liabilities. On BSE, 1.72 crore shares of the scrip were traded. The stock had an average daily volume of 1.46 crore shares on BSE in past one quarter. The scrip had touched a high of Rs 68.90 and a low of Rs 60.05 so far during the day. The stock had hit a 52-week high of Rs 121.20 on 17 December 200 and a 52-week low of Rs 23.15 on 6 March 2007. The scrip had outperformed the market in the one month to 28 February 2008, adding 5.83% as against the Sensex's 0.37% rise. It had, however, underperformed the market in the past three months, falling 33.83% against the Sensex's 7.95% slide. The state-run term lending institution has an equity capital of Rs 763.73 crore. Face value per share is Rs 10. At the current price of Rs 64.90, the scrip trades at a PE multiple of 3.24, based on Q3 December 2007 annualised EP…

GOOD STOCKS TO BUY

capital good sector, banking, infrastructure stocks should do well. HCC, HIND DOR, IHP, REVATHI EQUIPMENTS, ION EXCHANGE, MATHER PUMPS, JMC PROJECTS,PRATIBHA IND, SUPREME INDUSTRY ( HIGHER PROVISION FOR AGRI SECTOR ), GARWARE WALL ROPE, ATLAS COPCO,RPL, BARTRONICKS LTD, KALPATARU POWER,SANGHVI MOVERS,SHOULD DO WELL. banking sector: dena bank, idbi, ICICI BANK, IFCI, CANARA BANK capital goods: L&T, BHEL STEEL SECTOR LIKE TISCO, SAIL, RAMSARUP, SESA GOA SHOULD DO  VERY WELL.

RIL, Reliance Cap among Asia's 20 best for future investor returns

NEW DELHI: Seven Indian firms, including Reliance Industries and Reliance Capital from the two Ambani groups, have been named among Asia Pacific's 20 best companies in terms of expected investor returns over next five years.

The list titled "Tomorrow's Winners" prepared by global investment banking giant Morgan Stanley also includes telecom major Bharti Airtel, engineering and construction major Larsen & Toubro, Kishore Biyani-led Pantaloon Retail, infrastructure company IDFC and real estate firm Sobha Developers.

"Of the companies selected, more than half are listed in either China or India. Many of these are capitalising on major secular trends, such as infrastructure investment and per capita consumption growth," Morgan Stanley said in a report.

"The rapid growth of Asian markets, India and China in particular, has led to an unparallelled focus on the region and its businesses," it said, adding that these are the companies &…

power grid corporation

i recommend a buy in Power Grid Corporation of India from a short-term perspective. It is evident from the charts of the company that the stock has been on an intermediate-term downtrend from its 52-week high of Rs 167 marked on November 19, 2007. However, the stock found support at around Rs 95 recently and bounced off. The positive divergence in the daily momentum indicator supports the stock's recent bounce. Following this, the stock breached the medium-term down trendline, which is drawn from the January peak of Rs 155. On February 27, the stock gained momentum by surging more then 5 per cent on good volume. The stock is currently trading well above the 21-day moving average. The daily momentum indicator is rising in the neutral region towards the bullish territory. Our short-term outlook for the stock is bullish and we expect the stock to move up to our target price level of Rs 123 in the upcoming days. Investors with a short-term perspective can buy the stock whil…

Aban Offshore sets sail on new order

Aban Offshore gained 2.15% to Rs 4106 at 11:40 IST on BSE after the company said its subsidiary has secured a contract worth about $25 million from PTTEP International. The company made this announcement during trading hours today, 28 February 2008. On BSE, 15,317 shares were traded in the counter. The scrip had an average daily volume of 20,167 shares in the past one quarter. The stock hit a high of Rs 4153 and a low of Rs 4011 so far during the day. The stock had a 52-week high of Rs 5555 on 20 November 2007 and a 52-week low of Rs 1700 on 16 March 2007. The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, gaining 3.65% compared to the Sensex's decline of 1.47%. It had underperformed the market in the past one quarter, declining 11.20% compared to Sensex's decline of 6.20%. The company's current equity is Rs 7.56 crore. Face value per share is Rs 2. The current price of Rs 4106 discounts its Q3 December 2007 annualiz…

Aluminium stocks shine as prices hit 2-year high on LME

Three aluminium makers rose between 1.97% to 3.5% after aluminium futures hit their highest in nearly two years on the London Metal Exchange. National Aluminium Company (up 3.95% to Rs 464.30), Hindalco Industries (up 2.58% to Rs 201) and Madras Aluminium Company (up 1.97% to Rs 654.65), moved higher. Aluminium prices on the London Metal Exchange (LME) are currently at two year high on a plethora of cues. The inventories of the metal hit a one month low of 950200 tonnes yesterday on the LME while the extremely bearish undertone in the US dollar, which hit an all time low of 1.5162 against the Euro yesterday, also supported the metal. The continuous deceleration of the US dollar is seen positive for the dollar denominated assets. Expectations that China's recent snowstorms and power outages may reduce primary aluminium output by about 600,000 tonnes this year, equal to 5% of the country's 2007 output, also support aluminiuim prices. The three-month aluminium futu…

Tightrope walking

Every year, as the annual Budget draws closer, expectations across all sections of the society start building up. This year too, it is no different. What is different this time, though, is that the finance minister has a tightrope to walk on. On one hand, global as well as domestic economies (including corporate earnings) are heading for a slowdown leading to an added element of uncertainty, whether India will be able to sustain its gross domestic product (GDP) growth rate of 8-9 per cent seen in the past three-four years. In effect, it also indicates a potential slowdown in revenue collections for the government. On the other hand, with inflationary pressures (higher prices of agri-produce, crude oil and other commodities), many are expecting duties to be lowered or at least, rationalised. The industry is thus hoping for initiatives or steps that will help ease the cost pressures, while simultaneously…

Select stocks rise as rail budget signals new initiatives

Stocks of the companies that cater to Indian railways gained after Indian Railways Minister Lalu Prased Yadav on 26 February 2008 announced some new initiative towards easing infrastructure bottlenecks in the Railways. Train wagon manufacturing companies Texmaco (up 5% to Rs 1712) and BEML (up 2.70% to Rs 1180), rose after the Railway Budget laid down plans to procure a record 22,000 train locomotives for the coming year. These two companies derive sizable portion of their revenues from from the manufacture of of wagons for the Railways. Kalindee Rail Nirman (up 1.11% to Rs 475), rose on expectations that the firm may benefit significantly from the setting up of dedicated freight corridors by the Railways. This may translate into topline growth for the company from the next financial year. Kalindee Rail Nirman is a frontrunner in railway related infrastructure works such as construction of new line and gauge conversion. Kernex Microsystems India rose 5% to Rs 230.30 on …

Fund raising buzz generates interest in IDBI

On BSE, 5.39 lakh shares of the scrip were traded. The stock had an average daily volume of 22.77 lakh shares on BSE in past one quarter. The scrip had touched a high of Rs 120.60 and a low of Rs 117.55 so far during the day. The stock had hit a 52-week high of Rs 181 on 20 November 2007 and a 52-week low of Rs 66.50 on 8 March 2007. The scrip had underperformed the market in the one month to 26 February 2008, sliding 7.60% as against the Sensex's 1.91% decline. It had also underperformed the market in the past three months, falling 28.04% against the Sensex's 5.98% slide. The mid-cap state-run lender has an equity capital of Rs 724.68 crore. Face value per share is Rs 10. At the current price of Rs 120.10, the scrip trades at a PE multiple of 12.36, based on Q3 December 2007 annualised EPS of Rs 9.71. Details about the follow-on public offer (FPO) and rights issues are still being worked out between the bank and the government and cannot be disclosed unless the…

Bartronics India (Rs 223.90) strong Buy on dips

i recommend a buy in Bartronics India from short-term perspective. From the charts of Bartronics India we see that the stock has been consolidating in the range between Rs 200 and Rs 285 since mid September 2007. The stock had been on a medium-term downtrend between early January and late February (from the upper boundary of the sideways consolidation of Rs 285 to the lower boundary of Rs 200). Recently, the stock found support at Rs 200 (which is the lower boundary, a key support level and also coincides with 200-day moving average). On February 26, the stock jumped up by 8 per cent penetrating the medium-term down trendline and the 21-day simple moving average, accompanied with heavy volume. The daily momentum indicator is rising in the neutral region towards the bullish zone. We are bullish on the stock in the short-term. We expect Bartronics India to move up to our target price of Rs 255 in the short-term. Investors with a short-term perspective can buy the stock while …

Railway Budget: Record outlays may benefit a host of cos (indian stock market)

Growth initiatives appear promising
Armed with a cash surplus of Rs 25,000 crore, the Indian Railways has announced several initiatives towards easing infrastructure bottlenecks in the Railways. These moves may open up a host of business opportunities for many companies. Backed by the largest ever annual plan outlay of over Rs 37,500 crore, the Railways Minister's growth initiatives appear promising.Rolling stock The Budget has laid down plans to procure an all-time high number of 20,000 wagons, 250 diesel and 220 electric locomotives for the coming year. This opens up sizeable potential revenues for wagon manufacturing companies such as Texmaco, BEML and Titagarh Wagons (the company has recently filed for an initial public offering with SEBI), which derive a significant portion of their revenues from the manufacture of wagons for the Railways. Besides revenue growth, these companies may also benefit by way of margin expansion over the long-term, given the proposal to mi…

Bartronics soars (SENSEX)

Bartronics surged 13.83% to Rs 235.05 at 14:09 IST on BSE after Railway Minister, Lalu Prasad Yadav proposed smart card-based ticketing system. Meanwhile, the BSE Sensex was up 87.46 points, or 0.50%, to 17739.61, following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs. On BSE, 4.28 lakh shares of the scrip were traded. The stock had an average daily volume of 88,053 shares on BSE in past one quarter. The scrip had touched a high of Rs 238.40 and a low of Rs 206 so far during the day. The stock had hit a 52-week high of Rs 294.50 on 7 January 2008 and a 52-week low of Rs 93 on 8 March 2007. The scrip had underperformed the market in the one month to 25 February 2008,falling 9.86% as against the Sensex's 3.87% decline. It had, however, outperformed the market in the past three months, slipping …

Texmaco gets a boost from rail budget

Texmaco moved up 1.77% to Rs 1615 at 13:21 IST on BSE after the railway minister said 20,000 new freight wagons are expected for 2008/09 and another 5,000 open wagons are to be upgraded to stainless steel. Meanwhile, the BSE Sensex was up 83.10 points, or 0.47%, to 17732.12, following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs. On BSE, 9336 shares of the scrip were traded. The stock had an average daily volume of 5157 shares on BSE in past one quarter. The scrip had touched a high of Rs 1660 and a low of Rs 1614 so far during the day. The stock had hit a 52-week high of Rs 1965.50 on 2 January 2008 and a 52-week low of Rs 710 on 7 March 2007. The scrip had outperformed the market in the one month to 25 February 2008, adding 2.81% as against the Sensex's 3.87% decline. It had also outperforme…

Buyback plan stimulates Reliance Energy(indian stock market)

Reliance Energy jumped 3.20% to Rs 1674.70 at 10:05 IST on BSE after the firm said its board would meet on 5 March 2008 to consider buyback of equity shares of the company. The company made the announcement before market hours on Tuesday, 26 February 2008. Meanwhile, BSE Sensex was up 110.80 points, or 0.63%, to 17764.99, as Asian stocks were mostly in green following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs. On BSE, 1.28 lakh shares of the scrip were traded. The stock had an average daily volume of 10.99 lakh shares on BSE in past one quarter. The scrip had touched a high of Rs 1691.55 and a low of Rs 1660 so far during the day. The stock had hit a 52-week high of Rs 2631.70 on 10 January 2008 and a 52-week low of Rs 448.20 on 5 March 2007. The scrip had underperformed the market in the on…

Centurion Bank of Punjab sinks after setting swap ratio for merger

Centurion Bank of Punjab declined 10.02% to Rs 50.75 on BSE at 10:59 IST after HDFC Bank set the merger ratio of Centurion Bank of Punjab with itself at 1:29. The HDFC Bank announced the share swap ratio for merger before trading hours today, 25 February 2008. Meanwhile, BSE Sensex was down 138.86 points or 0.80% to 17,210.21. On BSE, 57.14 lakh shares were traded in the counter. The scrip had an average daily volume of 72.38 lakh shares in the past one quarter. The stock hit a high of Rs 53 and low of Rs 50 so far during the day. The stock had a 52-week high of Rs 75.25 on 7 January 2008 and a 52-week low of Rs 30 on 5 March 2007. The mid-cap scrip had underperformed the market over the past one month till 22 February 2008, declining 0.44% compared to the Sensex's return of 0.74%. It had outperformed the market in the past one quarter, gaining 30.86% compared to Sensex's decline of 7.98%. The bank's current equity is Rs 187.30 crore. Face value per share is…

Reliance Power to give 3 bonus shares for every 5 held

NEW DELHI: Anil Ambani-promoted Reliance Power on Sunday said it will give three bonus shares for every five shares held by its shareholders.

The board of directors at its meeting today considered and approved a bonus issue excluding promoters, as per which three shares would be allotted for every five held.

This issue would benefit over four million investors in the company and the cost would be borne by the promoter group by way of diluting its stake.
Post bonus issue, the cost of acquisition of Reliance Power shares would come down to Rs 269 for retail shareholders and Rs 281 for institutional investors.

Saying that retail investors are the bedrock and foundation of Reliance Power, its Chairman Anil Ambani said: "In these two weeks, the number of retail shareholders have actually increased. In these 10 trading days, retail investors have acquired 2.5 crore shares."

The approval of bonus issue is an unprecedented step in the history of capital market in India…

market khaber by c. kutumbarao---hyderabad broker

Trading volumes still below peakMarket Khabar by C. Kutumba Rao
Markets continued to remain highly unpredictable, moving erratically with global trends, dictating the near-term market trend. On the BSE the Sensex fell by 816 points to close at 17,349 and the Nifty on the NSE fell by 192 points to close at 5,111. Rising commodity prices and weak global cues continued to keep the sentiment negative. Lack of volumes clearly shows investors apathy and aversion for equities at present. Despite expectations of an election oriented budget market men expect the finance minister to come out with a rational growth oriented budget. If 'wishes' of investors and corporates are met positively a strong post-budget rally is not ruled out since there is low open interest position and no pre-budget build up. After the talks of recession, fears of the US economy could be heading for a period of "stagflation" —the unwanted combination of stagnant economic growth and destructive inflation…

Decent debut for Tulsi Extrusions (indian stock market)

Tulsi Extrusions was trading at Rs 109.20 on BSE at 10:06 IST, a premium of 28.47% over the IPO price of Rs Rs 85 per share. The stock debuted at Rs 93.45, a premium of 9.04% over the IPO price. On BSE, 26.17 lakh shares were traded in the scrip. The stock touched a high of Rs 118 and a low of Rs 93.45 so far during the day. The current price of Rs 109.20, discounts the year ended March 2007 EPS of Rs 3.3 by a PE multiple of 33.09. The company had set a price band of Rs 80-85 a share. The IPO of Tulsi Extrusions, which closed on 5 February 2008, was subscribed by 2.08 times. The issue received bids for 1.18 crore shares as against 57 lakh shares on offer. The qualified institutional buyers (QIBs) portion was subscribed 1.54 times, the non institutional investors portion 3.10 times and the retail investors portion 2.45 times. The portion reserved for employee was subscribed 1.06 times. The company makes PVC pipes in its manufacturing facility based in Maharashtra. Its pr…

NTPC: Buy (indian stock market)

Investors seeking a defensive play in the run-up to the Budget can consider putting their money into the NTPC stock. The stock is now trading at more reasonable valuations compared to the peak of the market euphoria over power stocks barely a month ago. At the current market price of Rs 197, the stock trades at 20 times the projected earnings for 2007-08; down from over 26 at its height. While the pace of appreciation from current levels could be slower compared to the recent past, the downside appears minimal. There's likely to be little in the Budget to affect the stock adversely; if anything, it could make things brighter for the company through a sharper focus on the power sector accompanied by higher allocations.NTPC plans to scale up its present capacity of around 27,000 MW to over 50,000 MW in the next five years. The company will also be commissioning by early-2009 its first hydro power plant at Kol Dam in Himachal Pradesh. NTPC is an efficient generator when it…

Aban Offshore: Buy

Spurt in global exploration activities on the back of a steadily rising oil price scenario suggest good prospects for Aban.

Tight supply of rigs worldwide may help Aban scale up revenuesGiven the large fleet size and presence in global markets through its foreign subsidiaries, Aban could emerge as one of the leading beneficiaries of this demand uptrend. Aban's well-timed fleet expansion moves are backed by good operating efficiency and re-pricing of old contracts at higher rates. At the current market price of Rs 3,887, the stock trades at 11 times its likely FY-09 per share earnings. This appears reasonable considering Aban's historical earnings growth and the ongoing cyclical uptrend in the offshore drilling industry. Investors can utilise the recent correction in the stock market to accumulate the stock.Expansion in fleet size Aban's strategy of expanding its fleet size has helped given the rising demand for rigs on the back of a relative stagnation in availa…