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The markets have closed the session on a strong note as decline in Inflation numbers boosted the markets sentiments and giving the positive signals to the government measures to control inflation. Positive global cues also fueled to the sentiments. The Sensex rose by 237.01 points or 1.46% to settle at 16481.20, and the Nifty up 71.10 points or 1.45% at 4958.40

This is how Phani Sekhar, Fund Manager of Angel Broking views stocks

On CESC:
CESC has been transforming itself off late into a conglomerate with interest in electrical utility, retailing and real estate. Tthe capacity addition targets in the power generation segment are pretty impressive at 1,850 mega watts; the company already has a capacity of 950 mega watts. So they are talking about tripling themselves over the next 4 years although a lot of that growth will be back ended.

But the real story is in retail, the Spencer retail arm of CESC is expected to add around 3 million square feet by FY09 and our estimate suggest that Spencer retail itself could be valued at around Rs 1,250-1,500 crore which is roughly around the 25-30% of the market cap of CESC. Now if you take out Spencer retail and even if you do not assign any tangible value to the real estate, adjusted for the retail segment the power utility business of the company is available at a price to book value of around 1-1.2, which is fair and its he cheapest among all its peers, and this 1-1.2 on an ROE of around 12% is also fair.

So we are positive about this company because the story according to us lies in sum of the parts, with Spencer retail probably being unlocked somewhere in the next 15-18 months. So we will be expecting an upside of around 30-35% conservatively on CESC.

On Sunil Hi-tech:
The company has aggressive growth plans, and it has been growing pretty well also, its an interesting midcap power capital goods company, with strong execution capabilities in the fabrication of steel super structures used in power and steel plants, at this point in time, the company is catering to power plants up to 500Mw and it has also forayed into, BoP contracts, where in it is scouting for partners to cater to power plants above 500Mw.

The real story lies in the aggressive growth and the orderbook that the company has, with 5 times the order book sales of FY07, the margins look strong, the ROEs are going up, and we do expect that the company will log in around 65% to 70% bottom line growth over the next 2 years that is FY08 to FY10, and on that basis, this stock is available at single digit PE multiples, so we think there is nothing to loose if you invest in this stock, again upside of a conservative basis of 30% to 35% is what we expect.

This is how Anil Manghnani, Modern Shares & Stock Brokers views stocks on board:

On Orchid Chemicals:
Very difficult call. I think it hit a 3-4 months highs at around Rs 326 yesterday and that’s why it is probably falling, but the move has been so veracious that any fall would be a buy. Where to buy is a very difficult to call, there is too much corporate action, too much rumours out there. But I think every time it comes closer to Rs 300-330, its going to see selling pressures because that’s being top end of the range in the last 6 months, and I think somebody buying the buy back should wait for deeper falls and not probably at these levels.

On Chambal Fertilizers and RNRL:
For Chambal definitely it is out performing Nagarjuna, it has crossed February 28 levels where after the disappointment of the Budget since there was not much for the fertilizer pack, it broke that day the highs of the Rs 67 and hit a major target of Rs 70-71 levels. So if it can trade above Rs 71, then next trading target is about Rs 79. Nagarjuna is probably doing a much smaller retracement, the all time high is closer to Rs 90 but even the February 28 high is around Rs 59, so it’s still way off there, Rs 48.50 is a major resistance out there. If it can cross Rs 48.50 then probably it is headed towards Rs 59 again.

RNRL is not one of my favourites, I think there is too much speculation in there Rs 112-113 is a major resistance, if it can cross that then probably Rs 123. But there is too much speculation out there, rather go for some of the large caps which are still much way of their highs and much more fundamentally attractive.

Source: Moneycontrol.com