Amit Dalal of Amit Nalin Securities is of the view that one can buy FMCG stocks.
Dalal told CNBC-TV18, "I like the FMCG sector. I would look at Dabur, Marico and in the largecaps I like ITC. They are growing very well and as the rural penetration improvement will comes the FMCG sector will see their ability to push up prices, sell larger packets and these small things make a big difference to their bottom line. We won’t perhaps see in the beginning but once we see it there will be a steep upward curve and that would be difficult to time, so it’s a good time to buy them right now."
Source: Moneycontrol.com
Showing posts with label share bazaar tips india. Show all posts
Showing posts with label share bazaar tips india. Show all posts
Wednesday, January 30, 2008
Friday, January 25, 2008
Stocks to watch: Syndicate Bank
It was a day of absolute strength for the markets. The bulls were back with vengence they not only reversed yesterday's loses but added more weight to close near the highest point of the day. Sensex added over 1150 points and Nifty closed with gains of around 350 points. It was the biggest single day absolute gain for Sensex.
On a weekly basis, Nifty closed down 320 points after swinging around 910 points Sensex down over 600 points after swinging over 3,000 points.
Technical Analyst Ashwani Gujral is positive on Syndicate Bank.
This is how Ashwani Gujral views stocks on board.
On Syndicate Bank:
Syndicate can be bought, currently it has a support at Rs 87, which can be used as a stop. In case interest rates do decline, I think it could easily retest its previous high of about Rs 130.
Source: Moneycontrol.com
On a weekly basis, Nifty closed down 320 points after swinging around 910 points Sensex down over 600 points after swinging over 3,000 points.
Technical Analyst Ashwani Gujral is positive on Syndicate Bank.
This is how Ashwani Gujral views stocks on board.
On Syndicate Bank:
Syndicate can be bought, currently it has a support at Rs 87, which can be used as a stop. In case interest rates do decline, I think it could easily retest its previous high of about Rs 130.
Source: Moneycontrol.com
Tuesday, December 11, 2007
Above Rs 1260, ONGC can touch Rs 1300
Technical Analyst, Rajat K Bose is of the view that chart patterns suggest above Rs 1260, Oil and Natural Gas Corporation, ONGC can touch Rs 1300 in the short-term. He added that ONGC had a very good move today but this kind of a move of 3-4% in a day is not carried forward the very subsequent day.
Bose told CNBC-TV18, "Bharti has actually posted a breakout, it has been consolidating between Rs 850 and Rs 950 for quite a while. Rs 1,040 is a very crucial level for this stock. Once it stays above that decisively then one can expect it to move upto Rs 1,100 and it can even go beyond that if the momentum is sustained."
He further added, "ONGC has a very good move today. This kind of a move of 3-4% in a day is not carried forward the very subsequent day. But overall definitely ONGC chart pattern suggest that if we get pass for about Rs 1,260 then more than Rs 1,300 levels would be seen in the short-term and that of course occurs well for the Nifty because they are heavy weights for the index."
ICIC
Source: Moneycontrol.com
Bose told CNBC-TV18, "Bharti has actually posted a breakout, it has been consolidating between Rs 850 and Rs 950 for quite a while. Rs 1,040 is a very crucial level for this stock. Once it stays above that decisively then one can expect it to move upto Rs 1,100 and it can even go beyond that if the momentum is sustained."
He further added, "ONGC has a very good move today. This kind of a move of 3-4% in a day is not carried forward the very subsequent day. But overall definitely ONGC chart pattern suggest that if we get pass for about Rs 1,260 then more than Rs 1,300 levels would be seen in the short-term and that of course occurs well for the Nifty because they are heavy weights for the index."
ICIC
Source: Moneycontrol.com
Wednesday, December 5, 2007
Hind Motors has target of Rs 65
Technical Analyst, Rajat K Bose is of the view that Hindustan Motors has medium term target of Rs 65.
Bose told CNBC-TV18, "Today, Hindustan Motors is posting at 18 months high, earlier Rs 46-48 kind of range it used to test and then moveddown. For the first time, I see this is trading above Rs 50 after May 2006. So, this should be considered a breakout with more than Rs 15 crore volume at the NSE, this is a high volume breakout and it is one of the volume leaders today. If you look at the kind of breakout it has posted, so technical target for the medium-term would be Rs 65 to about Rs 68. For this move to be sustained it should not go down below Rs 46, atleast there should not be any two consecutive closes below that. However, the overall moves seems to be pretty strong, so we can expect Hindustan Motors to carry on with this current swing."
Source: Moneycontrol.com
Bose told CNBC-TV18, "Today, Hindustan Motors is posting at 18 months high, earlier Rs 46-48 kind of range it used to test and then moveddown. For the first time, I see this is trading above Rs 50 after May 2006. So, this should be considered a breakout with more than Rs 15 crore volume at the NSE, this is a high volume breakout and it is one of the volume leaders today. If you look at the kind of breakout it has posted, so technical target for the medium-term would be Rs 65 to about Rs 68. For this move to be sustained it should not go down below Rs 46, atleast there should not be any two consecutive closes below that. However, the overall moves seems to be pretty strong, so we can expect Hindustan Motors to carry on with this current swing."
Source: Moneycontrol.com
Tuesday, December 4, 2007
Buy Tata Motors
Anish Damania of Emkay Stock Brokers is of the view that in the commercial vehicle space one can buy Tata Motors. It is a dominant player in 16 tonne and the 25 tonne segment and we are seeing greater potential for this stock to surprise on the upside.
Damania told CNBC-TV18, "If I were to buy anything in the commercial vehicle space, I would prefer to buy Tata Motors because if I were to look at it, economy is still going strong nothing wrong there, some financial troubles were there because the interest rates were high and maybe some delinquencies have stated on the lending front, so there was a slowdown there. But now when we speak to our banking channels inquires have started coming in for the 16 tonne and the 25 tonne segment in which Tata Motors is more dominant. If you look at it the inquires have picked up more in the north and therefore Tata Motors being a dominant player there, we are seeing probably greater potential for Tata Motors to surprise on the upside."
He further added, "Thirdly, as we go into the next year we will have a low-based effect so which would mean that you should see early better growth than most of the expectations. So today Tata Motors is underweight in most of the funds, so I would definitely start looking at this counter."
Source: Moneycontrol.com
Damania told CNBC-TV18, "If I were to buy anything in the commercial vehicle space, I would prefer to buy Tata Motors because if I were to look at it, economy is still going strong nothing wrong there, some financial troubles were there because the interest rates were high and maybe some delinquencies have stated on the lending front, so there was a slowdown there. But now when we speak to our banking channels inquires have started coming in for the 16 tonne and the 25 tonne segment in which Tata Motors is more dominant. If you look at it the inquires have picked up more in the north and therefore Tata Motors being a dominant player there, we are seeing probably greater potential for Tata Motors to surprise on the upside."
He further added, "Thirdly, as we go into the next year we will have a low-based effect so which would mean that you should see early better growth than most of the expectations. So today Tata Motors is underweight in most of the funds, so I would definitely start looking at this counter."
Source: Moneycontrol.com
Wednesday, November 28, 2007
RPL has critical support at Rs 189-190
Rahul Mohindar of viratechindia.com is of the view that Reliance Petroleum, RPL has critical support at Rs 189-190.
Mohindar told CNBC-TV18, "RPL had a fairly good correction. The thing we have got to keep in mind is Rs 189-190 is a very big, critical support. If we break that level, you are possibly looking at a lot more downside. So, it is really level specific story here. I think you need to clearly wait for these breakouts to come in."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the stocks/sectors that have been spoken about.
Source: Moneycontrol.com
Mohindar told CNBC-TV18, "RPL had a fairly good correction. The thing we have got to keep in mind is Rs 189-190 is a very big, critical support. If we break that level, you are possibly looking at a lot more downside. So, it is really level specific story here. I think you need to clearly wait for these breakouts to come in."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the stocks/sectors that have been spoken about.
Source: Moneycontrol.com
Top midcap stocks for your portfolio
DD Sharma of Anand Rathi Securities’ midcap stock picks are RayBan Sun Optics, Sujana Towers and Amar Remedies.
The fundamentals of RayBan Optics are very strong and the demand for its products are growing very fast, said Sharma.
Sujana Towers is also a pick because the margins in the telecom business are quite healthy and there is a sustained demand in the towers, for telecom and power transmission.
According to DD Sharma, Amar Remedies is an attractive pick because as an FMGC company, it is available at a very attractive discounting.
Excerpts from CNBC-TV18’s exclusive interview with DD Sharma:
Q: Your first choice is RayBan Sun Optics. What is the kind of escalation or appreciation you expect in the share price from here?
A: This stock is quite steady since the last six months or so. It is moving in the range of Rs 87 to Rs 96-97. But the fundamentals of the company are quite strong. It is into lifestyle products. Typically, 80-85% of the revenue comes from goggles and frames. So, the demand for such products is growing very fast.
Apart from that, the company is a 70% subsidiary of Luxottica, which is a dominant global player in these kind of products and has 5,500 stores across the globe. They have very good brands under its portfolio. Gradually, they are launching these premium brands in the domestic markets. With the launching of those brands, the margins of the company will go up significantly.
From January 2007, they have launched two premium brands worth Rs 12,500 and Rs 10,000. They offered the biggest margins in this business. So, in the current year, for December 2007-end, the company could report EPS of around Rs 8 or so. That is discounted by 12 times the latest earnings or current year earnings. That is quite attractive for a multinational company in lifestyle products. Typically, lifestyle and retail are having discount of 20-25-30 times. So, in that way it looks very attractive to me.
Q: How much appreciation it would have?
A: I think it would appreciate by atleast 50%, in the next 6-12 months.
Q: The other pick that you have is Sujana Towers. Apparently, it is in the ancillary space to telecom. Financially, however, the company has not done well in Q2. Their margins jumped up from about 13-18%. What are you buying in the company?
A: I think this company is into the tower business. Almost 60% capacity is meant for power transmission towers and 40% is for the telecom towers. Actually, it is not into the project business. So, it supplies towers to either the telecom companies or to those companies, which are engaged in the project implementation for power transmission.
Margins in this business are quite healthy, because there is a huge and sustained demand in the towers, for telecom as well as for power transmission. The company has expanded the capacity of the tower, in the last 12-15 months, from 28,000 metric tonne to 1,28,000 metric tonne. It is now further expanding the capacity from 1,28,000 to 2,28,000, which is a significantly large capacity.
The margins are still healthy and therefore, we expect the earnings for the company in the current year, will be close to around Rs 15. The current price is discounting this Rs 15 earning by only ten times and that is very attractive. No other power transmission company or telecom tower transmission company is available at 10 P/E.
Q: What would be a fair valuation of this stock?
A: Most of the peers are discounted at 20-25 times.
Q: Amar Remedies have just taken an approval of around Rs 150 crore. They are into healthcare and dental care. What is it about the company that is worth investing?
A: This company is mainly into the toothpaste business and mainly 85% of the revenue comes from toothpaste and the toothbrushes business. These are ayurvedic toothpaste and not the general kind of toothpaste. The demand for these kind of natural or ayurvedic products is rising, not only in the rural areas, but also in the urban areas.
So, the demand is pretty good. The problem, so far, with this company was that it has one plant in Uttaranchal. The new plant was ready since the last six months, but it was not operational because of the environment clearance that was pending.
Now, the company got the environment clearance from the Centre and they hope to get it from the state. So, this investment in the new plant, which was so far useless, will now start giving results from December ‘07.
They hope to start this plant, which is in the tax free area or tax exempt area. So, the margin of the company’s products from those plants will be very good. Since, the last two years, the company is not showing any growth. Due to this new capacity, the growth will come. So, in the current year, the company can show earnings of around Rs 9 or so and next year, by ’09, it could be around Rs 13-14. Going by that, as an FMGC company, this is again available at a very attractive discounting.
Source: Moneycontrol.com
The fundamentals of RayBan Optics are very strong and the demand for its products are growing very fast, said Sharma.
Sujana Towers is also a pick because the margins in the telecom business are quite healthy and there is a sustained demand in the towers, for telecom and power transmission.
According to DD Sharma, Amar Remedies is an attractive pick because as an FMGC company, it is available at a very attractive discounting.
Excerpts from CNBC-TV18’s exclusive interview with DD Sharma:
Q: Your first choice is RayBan Sun Optics. What is the kind of escalation or appreciation you expect in the share price from here?
A: This stock is quite steady since the last six months or so. It is moving in the range of Rs 87 to Rs 96-97. But the fundamentals of the company are quite strong. It is into lifestyle products. Typically, 80-85% of the revenue comes from goggles and frames. So, the demand for such products is growing very fast.
Apart from that, the company is a 70% subsidiary of Luxottica, which is a dominant global player in these kind of products and has 5,500 stores across the globe. They have very good brands under its portfolio. Gradually, they are launching these premium brands in the domestic markets. With the launching of those brands, the margins of the company will go up significantly.
From January 2007, they have launched two premium brands worth Rs 12,500 and Rs 10,000. They offered the biggest margins in this business. So, in the current year, for December 2007-end, the company could report EPS of around Rs 8 or so. That is discounted by 12 times the latest earnings or current year earnings. That is quite attractive for a multinational company in lifestyle products. Typically, lifestyle and retail are having discount of 20-25-30 times. So, in that way it looks very attractive to me.
Q: How much appreciation it would have?
A: I think it would appreciate by atleast 50%, in the next 6-12 months.
Q: The other pick that you have is Sujana Towers. Apparently, it is in the ancillary space to telecom. Financially, however, the company has not done well in Q2. Their margins jumped up from about 13-18%. What are you buying in the company?
A: I think this company is into the tower business. Almost 60% capacity is meant for power transmission towers and 40% is for the telecom towers. Actually, it is not into the project business. So, it supplies towers to either the telecom companies or to those companies, which are engaged in the project implementation for power transmission.
Margins in this business are quite healthy, because there is a huge and sustained demand in the towers, for telecom as well as for power transmission. The company has expanded the capacity of the tower, in the last 12-15 months, from 28,000 metric tonne to 1,28,000 metric tonne. It is now further expanding the capacity from 1,28,000 to 2,28,000, which is a significantly large capacity.
The margins are still healthy and therefore, we expect the earnings for the company in the current year, will be close to around Rs 15. The current price is discounting this Rs 15 earning by only ten times and that is very attractive. No other power transmission company or telecom tower transmission company is available at 10 P/E.
Q: What would be a fair valuation of this stock?
A: Most of the peers are discounted at 20-25 times.
Q: Amar Remedies have just taken an approval of around Rs 150 crore. They are into healthcare and dental care. What is it about the company that is worth investing?
A: This company is mainly into the toothpaste business and mainly 85% of the revenue comes from toothpaste and the toothbrushes business. These are ayurvedic toothpaste and not the general kind of toothpaste. The demand for these kind of natural or ayurvedic products is rising, not only in the rural areas, but also in the urban areas.
So, the demand is pretty good. The problem, so far, with this company was that it has one plant in Uttaranchal. The new plant was ready since the last six months, but it was not operational because of the environment clearance that was pending.
Now, the company got the environment clearance from the Centre and they hope to get it from the state. So, this investment in the new plant, which was so far useless, will now start giving results from December ‘07.
They hope to start this plant, which is in the tax free area or tax exempt area. So, the margin of the company’s products from those plants will be very good. Since, the last two years, the company is not showing any growth. Due to this new capacity, the growth will come. So, in the current year, the company can show earnings of around Rs 9 or so and next year, by ’09, it could be around Rs 13-14. Going by that, as an FMGC company, this is again available at a very attractive discounting.
Source: Moneycontrol.com
Monday, November 26, 2007
Hold DLF: Emkay Research
Emkay Research has recommended hold rating on DLF with a target of Rs 868, November 22, 2007 report. “The company has a large land reserve of around 14,000 acres with a saleable area of 738 million square feet (m sft). It has over the years established a strong brand name for itself and has an experienced management team with an established track record. The company has also diversified into various related segments viz. Infrastructure development (including SEZ development), hospitality etc. which will ensure a steady stream of revenue. We have arrived at the target price of Rs 868 based on a premium of 20% to the NAV of the company’s land bank. The stock seems to be fairly priced with limited room for upside in the short run. However, given the strong visibility (huge land bank coupled with an established brand) and established track record of the management, we believe that the company has the potential to deliver growth on a sustained basis. We maintain ‘HOLD’ rating on the stock.” according to the Emkay Research report.
Source: Moneycontrol.com
Source: Moneycontrol.com
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