Buy Ashokleyland: Rs.73/- Target Rs.78/-
Expects good halfyearly results today.
Cement, steel,power and all infra structure stocks and also oil stocks have got good future.Cement companies results will be announced one by one within next 2 to 3 days.
Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Tata steel:Buy :
Good stock Rs.622-. short term Target(2 months) Rs.660/- Long term target: Rs.800/-(one year) It may move slowly up to long term target. PE ratio is only 8 and will reduce further due to increase in EPS.
The corus is also growing well and in addtion this, new port ( Dhamra port )value will be added soon so that the share will hit Rs.800 within ayear.
Steel value Rs.650 + port value Rs.150 = Rs.800. When the news of opening of port flashes, the tata steel price will jump for nearly Rs.100/-.
With good indian market, this stock stands to gain substantially soon.
Dhamra port- 50% equity by Tata steel will be operational in Nov 2010. This will increase the potent value of tata steel as all the port shares commanding premium and the Dhamra port is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here. Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons.
Buy reliance industries Rs.1045. short Target:Rs.1070
Buy JP Associates Rate: Rs.127 ST(shorttime target) Rs. 140
Cement price increased by Rs.25 per bag through out india by all cement companies.
When we recall the old news i.e. Jaiprakash Associates Limited announced sales results for the month and four months ended Aug. 2010. For the month, the company reported a 51% jump in sales at 1.085 million. The company had dispatched 719,000 tonnes cement in the same month last year. Cumulative sales of the company in April-August period of the current year stood at 620,000 tonnes, up 59% from the same period last year. So expect good results from JP associates and corner the shares now at this rate.
Also the interview with chairman, JP associate recently hints about good things to come in JP associate table. So don't lack behind to own good share which is having limited retail public holdings to the extent of 11% only ;rest is in the hands of institutions and promoters who will not sell it as JPAssociate is multi-business entity and growing company.
"Q: What about the current year? What kind of guidance can you hold out on the topline and if you could break it up between the three segments as well?
A: I can tell you that it is almost the second month of Q1 of FY11 and we all know how Indian economy has shown its resilience. With the grace of God and on our strong foundation—all the three revenue streams of the JP Ltd are on good track, there is good momentum. Our commissioned cement capacity as of March 2010 is 22 million tonne including the 2.2 million tonne capacity, which the group gets from its joint venture with SAIL, which has been commissioned ahead of schedule.
We are optimistic and we are seeing the type of production we are able to get and the type of sales we are able to realize in the market that before March 2011, we would be able to sell and produce almost 20 million tonne, up from 11 million tonne in year ending March 2010. The E&C business, on the strength of healthy order book and projects under advance implementation, is expected to contribute handsomely.
I have all the reason to believe that if all goes well for the economy, and GDP is able to sustain more than 7% rate, we are in for a very good year as far as FY11 is concerned. It’s logical that for cement, we will be able to produce 20 million tonne up from 11 million tonne—the turnover from cement itself will be more than Rs 9,000 crore and total turnover we hope to achieve in excess of Rs 16,000 crore for current financial year.
Q: If that is your guidance for FY11, Rs 16,000 crore on turnover, what kind of margin profile will you enjoy given your view on cement prices and E&C margins this year?
A: The EBITDA was almost 40% for year ended March ‘10 and we have been able to maintain healthy margin of 28-29%. I am reasonably sure that we will be able to maintain this level of margin because of the type of business we are in and the type of efficiency we are able to achieve consistently."
Buy IFCI Rs.70.70Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Coal India IPO appears to be priced high as per some experts.Price may be around Rs.150 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses for initial subscription in order to earn some profit. The share price will go down from IPO price. So exercise caution as you may be enter into loss. Think twice before subscription.
The ongoing initial public offering (IPO) of Coal India (CIL), the country’s biggest ever, is unlikely to evince much interest from its 400,000-strong workforce, despite about 10 per cent of the 631.6 million shares on offer being reserved for the employees.Disinvestment Secretary Sumit Bose refrained from expressing disappointment at the possible lackluster response from the CIL workforce. “The employee response can be determined only after the issue closes, but in certain cases, there can be problems.".This is first day reaction. Only FII has shown interest in the issue who are not aware of the real situation in coal india affairs.
Sterlite indus: Hold
Supreme court has given permission to continue operation till Mid-Dec 2010 by this time, it will receive replies from state and other authorities for some questions raised. So temporary relief to sterlite.
Mahindra Satyam: Sell as suggested earlier.
DVR(Different voting right) share issue which is being preferred by some companies is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority for the said issue.The DVR/QIP portion is issued at around 30% discount to PE companies. Here the purchasers will get limited voting right i.e.they may be having one voting right for ten shares held (vs) one voting right for one share. This helps the promoters to safeguard their hold in the management. Here the sufferers are small investors who will face the erosion of the intrinsic value of the share and DVR holders will get benefit. In order to safeguard the small investors, SEBI should intervene in these cases and issue directive that only in extreme cases , they should go to DVR/QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI. Though the funding will be interest free for the company and in the long run, the company will get benefit, in the initial stages,minority share holders gets the jolt. Right issue will be the alternative which will benefit the company when response is expected positively and will reduce loans of the companies. SEBI should allow DVR module only to weak companies which may not able to raise funds from banks or from rights.They can sell shares at discount and get funds. Ispat industries can be an example for this.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
No comments:
Post a Comment