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Free Intraday Tips – 5 Jan 2012

admin — Thu, 05 Jan 2012 03:31:32 +0000

Buy Tata Motors at Rs 195-198.5, Stop loss at Rs 193.1, Target at Rs 203.9-212.8 Buy ONGC at Rs 262.5-265.1, Stop loss at Rs 261.6, Target at Rs 268.6-274.7 Related posts:Free Trading Tips – 12 Jan 2012 Free Day Trading Tips – 06 Feb 2012 Free Day Trading Tips – 29 March 2011 Related posts:

Buy Tata Motors

admin — Mon, 21 Mar 2011 15:00:21 +0000

Tata Motors Ltd.

BSE : 500570

NSE : TATAMOTORS

Strong JLR performance drives margins: The key highlight of the result was JLR performance, which reported net sales of ` 2660 crores, growth of 36% y-o-y. Jaguar’s global retail sales registered a decline of 11% y-o-y offset by strong performance from Land rover which contributes 80% of the JLR’s topline. Land Rover realizations improved 3.3% q-o-q on the back of favorable market mix, strong product mix & favorable currency movements. Consequently OPM for JLR improved significantly by 754 bps y-o-y & 73 bps q-o-q to 17.3%.

Tata motors registered strong topline growth of 22% y-o-y to ` 31685.2 crores driven by strong performance by JLR & domestic business. The standalone business registered strong growth of 28.4% y-o-y to ` 11519 crores primarily driven by 21.5% y-o-y volume growth in the CV segment in the domestic market & increased demand of CV’s in the export markets (SAARC & South Africa). JLR continued to surprise with its stellar performance led by strong volumes in Land Rover & improved realizations due to better product mix.

Buy Bajaj Finserv

admin — Fri, 11 Mar 2011 04:43:11 +0000

BSE ID : 532978

NSE ID : BAJAJFINSV

Bajaj Finserv is going to launch infra finance & wealth planning business this quarter. The company recently got SEBI nod for MF business with Allianz. It is likely to launch MF business over the next 9-12 months. Infra finance business of the company will get capital from Bajaj Finance. The company has invested about Rs 30 crore for retail wealth management business. It expects initial capital requirement of Rs 23-30 crore for MF business. The company expects 25-30% growth in lending business and 16% growth in general insurance business.

Bajaj Allianz said that this is purely an insurance tie up With Berkshire India and there is no space for 3rd shareholder. There will be no investment by Berkshire Hathway in the company. Berkshire India launch is likely in next 4 weeks and it will be exclusive corporate agent for the company. There is no possibility of company divesting stake in insurance JVs.

Sanjiv Bajaj, MD of Bajaj Finserv said that there is no equity partnership of the company with Berkshire Hathaway and the tie up between Berkshire and Bajaj Allianz is only an operational tie-up. Allianz will hike stake in Bajaj Allianz as regulations permit. Allianz is expected to take stake to 49% if FDI is allowed.

Hitachi Home – Buy

admin — Mon, 07 Mar 2011 15:22:00 +0000

BSE Code: 523398

The stock of this company, popularly known as Hitachi Home and Life solution, is currently quoted with 14 PE. Unfortunately the price of this has been corrected 40 % during last five months thanks to its poor performance for the last two quarters. Of course the company has chalked out a plan to bring drastic changes in its marketing strategy so as to cover most of the geographic area of the company as it seriously intends to enter in most of the two tier cities. The company, only exists in premium air condition market, has also decided to jump in to mass premium category. It is also going to announce 4 % price hike of its various products. The debt equity ratio of the company is as low as 0.3 % indicating strong balance sheet. The company, having 7.5 % share in market, is mainly engaged in luxury brand and is dominating high air condition market indicating increasingly growing inflation would not create any negative impact. There is also strong possibility of its re-rating.

ICICI Bank – Buy

admin — Fri, 25 Feb 2011 15:40:43 +0000

ICICI Bank reported PAT of Rs1437 crore up 31% y-o-y and 16% q-o-q above our expectation and market consensus; driven by core earnings and lower provisioning expenses. Net interest income up 12.3% y-o-y and 4.9% q-o-q driven by 15% y-o-y loan growth and sequential flat NIM. Fee income saw strong traction during the quarter, grew 14% yoy and 2% qoq driven by largely wholesale business. Asset quality improved significantly during the quarter. Provisioning expenses declined 28% q-o-q during the quarter. Provision coverage ratio stood at 72% (without technical write off). CASA has shown a healthy growth of 23 % y-o-y. CASA ratio remained at 44% during the quarter. Consolidated earnings up 77% y-o-y and 46% q-o-q to `2039 crore driven by core performance of banking and non-banking businesses. Maintains BUY.

Strong operating income: Net interest income up 12.3% y-o-y and 4.9% q-o-q driven by strong sequential loan growth at 6% and flat margin at 2.6%. Growth in loan is almost in line with sequential industry growth which is 6% q-o-q during the quarter. Fee Income has shown a healthy growth of 14.3% y-o-y and 2.2% q-o-q to Rs 1,625 cr on the back of strong growth in corporate loan book, corporate advisory and higher volume in transactional fee products. Fee income contributed 93% of total non-interest income which grew 4.5% y-o-y and 10.8% q-o-q. Treasury Gains reported at `21 cr against trading loss of Rs 144 crore in Q2FY11.

Buy Elecon Engineering with a price target of Rs 107 – SKP Securities

admin — Wed, 03 Mar 2010 03:09:15 +0000

“Elecon Engineering Company (Elecon) is a leading manufacturer of industrial gears with the market share of 26%, operating in multiple core industries. It is also one of the largest players in material handling equipments (MHE) in India. Majority of its MHE revenues are derived from buoyant power sector. Elecon is also present in wind turbine segment. It has its state of the art facilities at Vallabh Vidyanagar, Gujarat. At the current market price of Rs 75, the stock is trading at a P/E of 13x, 11x and 8x of FY10E FY11E and FY12E earnings of Rs 5.7, Rs 7.1 and Rs 9.7 respectively. We recommend BUY rating on the stock with a target price of Rs 107/- (43% upside) in 18 months at the P/E of 11x on FY12 earnings of Rs 9.7, “says SKP Securities research report.

Buy Allied Digital target Rs 260- Firstcall Research

admin — Thu, 25 Feb 2010 03:12:58 +0000

Firstcall Research has recommended to buy Allied Digital Services with a target price of Rs 260 in its report dated February 20, 2010.

“Allied Digital Services reported a substantial rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 43.66% to Rs 267.50 million from Rs 186.20 million in the same quarter previous year. Net sales for the quarter for the quarter rose 27.30% to Rs 1,224.20 million, while total income for the quarter rose 28.38% to Rs 1,239.90 million, when compared with the prior year period. At the market price of Rs 220.30, the stock trades at 10.08x and 8.83x for FY10E and FY11E respectively. The topline and bottomline of the company are expected to grow at a CAGR of 22% and 39% respectively over FY08 to FY11E. We recommend a “BUY” in this stock with a target price of Rs 260 for medium to long term,” says Firstcall research report.

Buy Hindustan Unilever – IIFL

admin — Mon, 14 Sep 2009 03:45:43 +0000

Hindustan Unilever
Reco Price: Rs 273
Current market price: Rs 255.95
Target price: Rs 304
Upside: 18.7%
Brokerage: IIFL

Hindustan Unilever’s (HUL) top management is pursuing volume growth and this is now visible in every brand in its portfolio. HUL is re-launching earlier de-focussed soap brands Liril, Hamam, Rexona and Breeze to regain share from regional players in specific geographies. The company has reintroduced key price points of Rs 10 and Rs 5 toothpastes and soap brand Lifebuoy.With competition (GPCL, Wipro and Ghari) not reacting to price cuts in HUL’s discount brands, prospects of a recovery have improved. Channel checks suggest that the new re-launches/price points/price cuts have been well received in trade, though it is too early to judge consumer offtake at this stage. HUL has lost the maximum ground over the past 15 months in soaps, with its market share dropping by over 650 bps from 53 per cent to just over 46 per cent. Its old brands are being re-focussed after 2-3 years to take on competitors such as Godrej No 1 and Santoor, which have specific regions of strength.

Buy Amtek Auto – Anand Rathi

admin — Mon, 14 Sep 2009 03:44:24 +0000

Amtek Auto
Reco Price: Rs 183
Current market price: Rs 183.85
Target price: Rs 254
Upside: 38%
Brokerage: Anand Rathi

The research house expects Amtek Auto to benefit from the relatively strong growth in automobile demand at home and the nascent recovery globally. Its amalgamation with five group companies would lead to integrated operations and greater efficiencies. Domestic auto demand has rebounded, and overseas markets, too, are showing signs of improvement. Amtek has a significant presence in the overseas markets through subsidiaries, which would boost revenue from its subsidiaries as well its joint ventures with leading global suppliers such as Magna and ARI. Given the secular growth in demand ahead, Amtek (ex-merger impact) to register a robust 50 per cent CAGR in earnings over FY09-12.

Amtek is amalgamating five group companies with itself, bringing all the forgings and castings units under the ‘Amtek Auto’ umbrella. This is expected to lead to better integration of operations, clearer efficiencies in sourcing and negotiations, and greater transparency in operations. Amtek Auto is valued at 15x FY11e earnings, which is a 25 per cent discount to the target PE multiple for Bharat Forge. The target price is Rs 254 (without considering the impact of its amalgamation with four other group entities).

Buy State Bank of India – Daiwa Securities

admin — Mon, 14 Sep 2009 03:42:09 +0000

State Bank of India
Reco Price: Rs 1,813
Current market price: Rs 1,918
Target price: Rs 2,109
Upside: 10%
Brokerage: Daiwa Securities

The broking house believes that one of State Bank of India’s (SBI) biggest advantages is the high interest spread on its bond portfolio. The incremental cost of funds for SBI has fallen by almost 210 bps over the past nine months, whereas the incremental yield on its government-bond portfolio has remained more or less the same. Currently, if SBI buys a 10-year government bond, then it is making an incremental interest spread of 200-250 bps, compared with a negative interest spread six months ago and a positive spread of around 10 bps nine months back.

SBI moved almost Rs 35,000 crore of short-term cash to statutory liquidity ratio (SLR) securities in 1Q FY10, and this is likely to have a positive impact and reflect in the NIM in the latter half of FY10. The re-pricing of high-cost deposits in November-December 2009 would also give the NIM a further boost. SBI has underperformed both the broader and Nifty banking indices over the past six months, but this trend will reverse over the next six months. The six-month target price is revised to Rs 2,109 from Rs 1,043, based on a target PBR of 1.5x on FY10 consolidated BVPS forecast and adding Rs160 per share for the life-insurance venture.