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Saturday 24 September 2011

Catch Them Young: ETIG's 100 Fastest Growing Companies

The economy is on a recovery mode and the bulls in stock market have once again taken the centre stage. The pundits in market have started predicting Sensex to reach 20K and beyond. Is this the beginning of another bull run? In last bull run which started in 2003, many small- and midcap companies broke into the large-cap club by the time rally came into an abrupt end in early 2008. While no one can guarantee about the future performance of current companies, the past performance is an essential tool to predict the future.

Sunday 28 August 2011

'The worst seems over for now' - Shankar Sharma


Shankar Sharma, chief global trading strategist, First Global, spoke to Ujjval Jauhari on the markets.

How do you see the markets panning out from here on, given the recent sell-off? What are the likely triggers for an upside / downside?

The worst seems to be over for now. We will have to see what fresh developments take place globally, but I don’t see an immediate downside from here on. The markets have corrected substantially and we can argue to a reasonable extent that the negatives are factored in at current levels.

Tuesday 9 August 2011

Buy GTL Infra; target of Rs 20: A C Choksi


A C Choksi is bullish on GTL Infra and has recommended buy rating on the stock with a target of Rs 20 in its July 29, 2011 research report.
“GTL Infrastructure Limited formed in Feb.2004 belongs to the Global Group enterprise. The Global Group has 7 operating companies (two of which are listed on the stock exchanges) operating in 46 different countries. GTL Infrastructure Limited is engaged in the business of Shared Passive Telecom Infrastructure in India. The company builds, owns, operates and maintains passive network infrastructure (towers) to cater to the infrastructure needs of cellular telecom operators. GTL's towers are distributed across High Average Revenue Per User (ARPU) generating Metros and Class A Circles and high growth regions of Class B & C Circles which benefits the telecom operators to rollout 2G, 3G or BWA on a pan-India basis in a short time.”

Wednesday 3 August 2011

Tulsian's multibaggers for today: Cummins & Ruby Mills


In an exclusive interview to CNBC-TV18, SP Tulsian of sptulsian.com spills out his multibagger picks —Cummins & Ruby Mills .
He finds Cummins strong business model, health order pipeline and consistence on margins lucrative to acquire the stock with a time horizon of about six to eight months. He sees vast rerating for the Ruby Mills stock and says, he is positive on the stock from both short-term and long-term point of view.
Below is an edited transcript of SP Tulsian’s comments on CNBC-TV18. Also watch the accompanying video.

Sunday 31 July 2011

Suzlon Energy can move upto Rs 75: SP Tulsian


SP Tulsian, sptulsian.com feels that Suzlon Energy can move upto Rs 75 in next 6 months or so.
Tulsian told CNBC-TV18, "Suzlon Energy - all the positive news and indications are coming in – Hansen stake sale, RePower getting squeezed or delisted or even the enabling resolution to raise Rs 5000 crore because in the last rights issue also we have seen the amount getting infused from the promoters or the associates because at that time the rights issue was made at much higher price than the prevailing market price, so maybe the debt of about Rs 12,000 crore, which is still remaining in the books of company may get partly liquidated by this fresh capital raising plan."
He further added, "If you see the results of Q1 all this indicates that management is now firm and taking the positive and affirmative steps which should go well for improving the valuations of the stock and I am expecting that the share can move to about Rs 75 level in the next 6 months or so."
Source:moneycontrol.com

Buy Sterlite Industries; target of Rs 205: Angel Broking


Angel Broking is bullish on Sterlite Industries and has recommended buy rating on the stock with a target of Rs 205 in its July 25, 2011 research report.
“Sterlite Industries’ (Sterlite) consolidated net revenue for 1QFY2012 stood at Rs 9,824cr, slightly below our estimate of Rs 10,200cr. Net profit at Rs 1,640cr was also slightly below our estimate of Rs 1,700cr. For 1QFY2012, Sterlite’s consolidated net sales grew by 65.8% yoy to Rs 9,824cr. Top-line growth was aided by higher metal sales volume as well as metal prices. Further, merchant power sales during the quarter increased by 244.2% yoy to 1,652mn units. However, the company’s power tariff declined by 28.7% yoy to Rs 3.6/unit.”

Tuesday 26 July 2011

Stocks that Sharekhan says will be roaring success


Sharekhan has come out with its report on various companies result update.
Allahabad Bank : Allahabad Bank’s Q1FY2011 was characterised by strong NII growth, decline in NPAs and strong fee income growth. The bank targets to grow its advances by 25% in FY2012. Currently the stock trades at 1.4 FY2012 book value. We have a positive outlook on the stock and will release a detailed note shortly.

Wednesday 20 July 2011

Tulsian's multibaggers: Tulip Star, Xpro India and Nile Ltd


SP Tulsian of sptulsian.com joins CNBC-TV18 to give his outlook of the market today and pick his multi-bagger ideas. He recommends Tulip Star Hotel, which recently won an arbitration at Juhu Centaur. Valuations reveal almost Rs 200 crore market cap and even when taking a very conservative view, the stock could go up to Rs 300 in about 6-12 months, Tulsian says.
His next pick is Xpro India . The company which is into commercial film packaging has shown sharp improvement in its financials, he says. Though topline remained steady, bottomline almost doubled in the previous quarter. The company barely has any debt on books and currently commands a book value of 100. Trading at earnings per share of Rs 10, it is very likely that over a 5-6 month period, the stock could breach Rs 75 level and return an EPS value of Rs 12.

Tuesday 12 July 2011

Multibagger in 5 years? Buy HDIL says PN Vijay

HDIL could be a multibagger with five year point of view, says PN Vijay, Portfolio Manager.
Vijay told CNBC-TV18, "There could be a bottom somewhere in the real estate sector in India because the correction here has been very severe and many other good companies at least have taken some very strong measures to cut the debt and improve the occupancy if you will like to call that. That is an amount of flats and offices sold as compared to the new."

Buy Fortis Healthcare; target of Rs 173: IIFL

IIFL is bullish on Fortis Healthcare and has recommended buy rating on the stock with a target of Rs 173 in its July 13, 2011 research report.
“Fortis Healthcare (on the daily chart) has given an upside breakout, considered to be an important bullish signal. The stock is poised for further gains in the next few trading sessions. The undertone is reasonably strong and is likely to push price higher. After consolidating in the range of Rs 160-165 for last five trading sessions, the stock closed above the peak of its trading range of Rs 640 last week. The upside breakout is well accompanied with decent volumes. Based on above mentioned technical evidences, we recommend traders to buy the stock above Rs 167 with stop loss of Rs 164 for target of Rs 173,” says IIFL research report
Source:moneycontrol.com

Aashish Tater cherry-picks Premier and Wabco-TVS

Aashish Tater joins CNBC-TV18 to cherry pick his favorite stocks for the day which he says are multi-bagger ideas.
He recommends Premier Ltd with a target price of Rs 180. The current price is around Rs 90. Trading at Rs 6-7 earnings per share, there is a good possibility of the stock rising up by 18% from current year EPS, he says. “There is limited downside to Premier.”

Sunday 10 July 2011

Sharekhan handpicks 15 stocks for investment

Sharekhan has come out with its report on Stock Ideas.
ADITYA BIRLA NUVO : the company is best valued using the sum-of-the-parts (SOTP) method. In the wake of the better than expected margin and efficiency of the insurance business, we have raised our new business achieved premium (NBAP) margin multiple for the insurance segment from erstwhile 16% to 18% for FY2012 with an assumption of a 15% growth in the new business premium (on the back of a 29% decline reported by the company in FY2011). Further, with the company for the first time reporting net worth for the consumer finance business, we incorporate the same at 1x its book value. Thus, the revised SOTP-based price target works out to Rs960 and we continue with our Hold recommendation on the stock.

Friday 8 July 2011

Upbeat on telecom, buy Bharti Airtel, Idea: Motilal Oswal

Motilal Oswal has come out with its report on telecom space. The research firm remains positive on the telecom sector.
Business momentum strong; 3G spectrum amortization and interest costs to impact earnings: We expect revenue momentum to remain strong, driven by continued growth in aggregate minutes of usage, relatively stable tariff environment and increased data usage. Amortization and interest costs related to 3G license fee paid last year would hit the P&L of companies from 1QFY12, depressing headline earnings.

Wednesday 6 July 2011

Tater's multibagger picks: Esab India, Phoenix Mills

Aashish Tater, Head of Research, Fort Share Broking has pickedEsab India and Phoenix Mills as his multibagger stock ideas for the day.
"Melrose came out with a open offer with 780 pence for the parent Charter Plc which is a holding company for Esab Holding Pvt Ltd which is a parent for Esab India. We have a target of Rs 1,000 if there is an open offer from Melrose. We will definitely ask our investors not to tender into the stocks because roughly we feel that open offer can come somewhere around Rs 550 to 600 depending upon the conditions. But on longer term this stock is a portfolio bet from our side."

Monday 4 July 2011

Bajaj Auto, M&M, Maruti Suzuki top picks: PINC Research


PINC Research has come out with its report on auto sector. The research firm has maintained neutral rating on the sector.
Finance, Fuel cost, Strike.... Indian automotive industry continues to witness soft demand emanating from high fuel cost and increase in interest rates. The passenger car industry has been the worst impacted by this and reported their worst performance over the last 30 months. Beside the slow demand, the industry was also besieged by employee strike at Maruti Suzuki’s Manesar plant. In this gloom, 2-wheeler segment maintained their outperformance with strong double digit growth. The prime factors behind strong performance of 2-wheeler segment is their low dependence on financing and lower operational cost. The surprise during the month was growth in medium and heavy commercial vehicle (MHCV) segment despite their high dependence on financing and weak freight market owing to monsoon.”
“We expect MHCV segment sales to see a decline over next 3 months due to increase in diesel price announced in June 2011. Moreover, last year the segment was doing very well due to recovery in the economy and impending emission norm changes.”

Sunday 3 July 2011

Brokerages bullish on Reliance Infra and Lupin


Merrill Lynch recommends buying Reliance Infra with a target of Rs 1,081, the stock is currently trading at Rs 540. They see positives from the bottoming of Mumbai license area profits, a pick-up in execution and growth across the power, roads and metro rail domains.
Credit Suisse has an outperform stance with a target of Rs 480 onLupin . The company is working on eight products and is planning to launch its first biosimilar in India in FY12. The two most advanced products are about to commence clinical trials.

Tulsian's top picks: Polyplex, Sterlite Technologies


SP Tulsian of sptulsian.com in an interview with CNBC-TV18 said that he sees Polyplex and Sterlite Technologies fetching good returns ahead.
He said, "Polypex is the fourth largest thin polyester filmmaker in the world and they have their manufacturing presence in India, Thailand and Turkey. The company posted robust financial performance in FY11 on the back of which they issued 1:1 bonus. This company is sitting on huge cash and looks good when considered from the current levels. The company is expected to post a topline of about Rs 2,500 crore plus in FY12."

Wednesday 29 June 2011

Buy Maruti Suzuki; target of Rs 1594: PINC Research


PINC Research is bullish on Maruti Suzuki India and has recommended buy rating on the stock with a target of Rs 1594 in its June 29, 2011 research report.
“Maruti Suzuki India, during FY09- 11, MSIL compact segment volumes grew at 25.7% CAGR against the segment CAGR of 27.9% i.e. a marketshare loss of 200bps. In the same period Hyundai lost 160bps while Tata Motor’s lost is at a whopping 580bps. Of the recent launches, the Figo has been largely successful, helping Ford garner a marketshare of 5% in the segment. The Beat, after tasting initial success fizzled out. Polo ramp up has been slow due to capacity constraints and monthly runrate has stabilized near the 3k mark, exceeding 200bps marketshare.”

Tuesday 28 June 2011

Five stocks that brokerages recommend to buy


Goldman Sachs reiterates buy on Bharti Airtel with a target of Rs 435. Both Bharti and MTN are well positioned to show double digit revenue.
UBS retains its buy rating on L&T with a target of Rs 2,100. L&T may launch the L&T Finance holdings IPO within the next six weeks, the capital raising would enable the to fund its growth.

Monday 27 June 2011

Buy Bharat Heavy Electricals; target of Rs 2600: KRChoksey


KRChoksey is bullish on Bharat Heavy Electricals (BHEL) and has recommended buy rating on the stock with a target of Rs 2600 in its June 26, 2011 research report.

Buy GMR Infra; target of Rs 40: Aditya Birla Money


Aditya Birla Money is bullish on GMR Infra and has recommended buy rating on the stock with a target of Rs 40 in its June 28, 2011 research report.

Sunday 26 June 2011

Dabur: Strong growth ahead, buy for an upside of 24%


Investment Rationale:
- Positive FMCG Industry outlook: Growing economy favors FMCG industry. Rural`s FMCG consumption is increasing. Dabur India Ltd (Dabur) enjoys a very strong brand equity.
- Organic and inorganic growth: Dabur is looking at organic and inorganic growth in healthcare and personal care categories. It has acquired energiser brand 30 Plus and is also in other acquisitions talks.

Understanding Technicals & how to use them to track markets


CNBC-TV18’s special show ‘The Informed Investor’ tries to simplify jargons that are often thrown. Over the course of the last few weeks Informed Investors has been talking at length about fundamental analysis, both for the equity market and for other asset classes. To switch gears a little bit, the focus is now on technicals.
Technical’s is a term that you often use or hear when we talk about equity markets or crude or where even the currency maybe headed. Managing director of Louise Yamada Technical Research, Louise Yamada and Chief Technical Analyst at Miller Tabak & Co, Phillip Roth talk to CNBC-TV18’s Mitali Mukherjee, and try and breakdown what technical analysis actually means and how it works for some of these asset classes.

Three stocks that brokerages recommend to buy


CLSA has upgraded ONGC to buy from outperform and raised the target price from Rs 330 to 375. CLSA says upstream companies have usually come out longer term winners after policy interventions, they would use any near-term strength to increase exposure in ONGC.
Nomura maintains a ‘buy’ on Lanco Infra with a target of Rs 51. The damages stated to be sought by Perdaman are currently unsubstantiated as Lanco has stated that the agreement has not been terminated and supply is only slated to commence in FY15.

Thursday 23 June 2011

PN Vijay's multi-bagger ideas: Orchid Chem, IndusInd Bank


Analysts on the street feel that interest rates, inflation numbers and rising crude prices have been hindering growth of the Indian market. PN Vijay, Portfolio Manager, told CNBC-TV18 that the Indian stock market is negatively correlated to oil over the past three years; however, he thinks that a recent drop in oil rates on the back of the International Energy Agency’s (IEA) announcement to release 60 million barrels is likely to push the market up.

4 stocks with top brokerages' stamp of approval


UBS maintains a "buy" on L&T with a target of Rs 2,100. L&T's has bagged new orders worth USD 55 billion this week. The strong order inflow growth augurs well for the stock price performance, it is currently trading at lower than average of its historical range and looks like an attractive opportunity to buy.

Tuesday 21 June 2011

Rakesh Jhunjhunwala : How to buy multi bagger stocks?

For any investor, buying stocks which can be multibaggers are the most attractive option. Raamdeo Agrawal, Director, Motilal Oswal Financial Services owned over 10 multibagger stocks, while Sanjoy Bhattacharyya, Partner, Fortuna Capital owned over 100 baggers. And we all know about the success story of Rakesh Jhunjhunwala, legendary investor in Indian stock market.

But how does one identify a multibagger? Valuation, a company's fundamentals, a business that promises growth over time, management's integrity, rational allocation of capital etc decide if a stock is of the multibagger variety.

Infosys a best value pick


Infosys is one of the best value picks in this market today, says PN Vijay, Portfolio Manager.
Vijay told CNBC-TV18, "The technology pack I think represents a great buying opportunity. In fact the bear operators had the temerity to short TCS and they quickly realized their mistake and covered. I think people did a little bit of over reaction to the possible fall in the contracts from US and the European Union (EU). EU of the big nations are doing quite well, the France’s and the Germany’s of the world and even UK started doing well. So, I don’t see any great slowdown in contracts and on the other hand the technology companies have hired adequately their bench level as the percentages back, they do have a cost problem. But I think the big technology players especially Infosys is one of the best value picks in this market today."
Source : Moneycontrol

Monday 20 June 2011

Rakesh Jhunjhunwala : Golden period of Indian equities is still ahead

In an exclusive conversation with ET Now, Big Bull Rakesh Jhunjhunwala says that the next 3 months are likely to be very difficult period for the markets, but he is extremely bullish on their long-term prospects. Excerpts: 

ET Now: Indian markets have been stuck in this range from last six months. Do you think we could remain in this range for an extended period of time? 

Rakesh Jhunjhunwala: The next three months are going to be a very difficult period for the markets. The chances to break down to me seem to be greater than the chances to break up, at least in the next three months.


Sunday 19 June 2011

GTL tanks 60%, firm says fall 'attack on group'



Shares of the GTL group plunged on Monday, even as it is not yet clear what triggered the sell-off in them.
Flagship GTL was down nearly 60% to Rs 135, and market talk is that the slide could have been accentuated by margin calls getting triggered. Promoters hold around 52% in the company, of which a little over 24% has been pledged with lenders, according to the company's filing with the stock exchanges as on March 31.

Friday 17 June 2011

Bull's Eye: 12 must-have stocks for your portfolio


Bull's Eye, the popular game show on CNBC-TV18, offer investors a chance to have a look at the stocks that can be added to their portfolio. In today's game, Prakash Diwan of Networth Stock Broking, Ashish Tater of Fort Share Broking and Kunal Bothra of LKP Securities place their respective bets in four stocks each. Investors can read into the detailed analysis made by these experts before agreeing to any or all the bets. Below are the stocks and their analysis:

Tuesday 14 June 2011

Rakesh Jhunjhunwala : Next 3 months to be very difficult for markets

In an exclusive conversation with ET Now, Big Bull Rakesh Jhunjhunwala says that he is concerned about the impact of inflation on Indian equities and it is indeed the biggest risk for the markets. He says that the next 3 months are likely to be very difficult period for the markets. Excerpts: 

What is your view on the markets? 

The next three months are going to be a very difficult period for the markets. The chances to break down to me seem to be greater than the chances to break up, at least in the next three months. 

Monday 13 June 2011

BHEL: Q4 revenues up 32% at Rs17,921.4 cr

Financial highlights
- Revenues in Q4FY11 rose 32.2% to Rs17,921.4 cr y-o-y with an OPM of 23.4%, a y-o-y  increase of 280 bps. 

- PAT stood at Rs2,798 cr, a growth of 46.5% y-o-y.  

- Change in accounting policy during FY11 related to provision for warranties resulted in an  increase in revenue and PBT of Rs2,772.8 cr and Rs695.5 cr respectively which was higher than Rs2,450 cr and Rs410 cr stated during the provisional results. 

- Order inflow during the quarter was down 4.1% y-o-y.  Outstanding order book as of 31st March 2011 stood at Rs1,624 bn providing revenue visibility of  over 3 years.

- Company declared a final dividend of Rs17.9 per share in addition to interim dividend of Rs 13.25 
per share during the year.

Transport Corporation of India

Delta Corp can give 25-35% return: Tater



Aashish Tater, Head of Research, Fort Share Broking is of the view that Delta Corp can easily give 25-35% return in no time


Tater told CNBC-TV18, "Delta Corp is one trading bet we have been taking on right from Rs 45 levels to 130 levels. We have been selling and buying this particular stock. I was just reading the F&O criteria as prescribed by SEBI and at market cap of Rs 2,000 crore this is one candidate that can be listed into F&O space from next three- six months perspective. I was calculating the quarter sigma for this stock and also calculating into the range. This is a fit that will hit the F&O space. Now my prior experience suggest that whenever these are midcap listing into F&O space which has a trading momentum by its side gives 40-50% return in no time."

Sunday 12 June 2011

How to choose between growth and dividend - Times of India

Choosing between hundreds of schemes is a difficult task for most mutual fund investors. For newbie investors , another dilemma is whether to go for the growth or the dividend option. While you don't stand to gain or lose significantly with either alternative, there are some aspects that need to be considered to make the correct decision. Let us first examine how one differs from the other.

Buy ONGC; target of Rs 328: Angel Broking

Angel Broking is bullish on Oil and Natural Gas Corporation (ONGC) and has recommended buy rating on the stock with a target of Rs 328 in its June 1, 2011 research report.

ONGC an underperformer, target of Rs 303: LKP Shares

LKP Shares has recommended an underperformer rating on ONGC with a target of Rs 303 in its June 3, 2011 research report.
“ONGC, Q4 FY11 results bore the brunt of the increased subsidy burden with ONGC having to suffer a whopping subsidy discount of $ 70.1/bbl during the quarter.
• Total sales for the quarter increased 5.2% yoy but fell 16.6% qoq to Rs 155,510 mn:
- Q4 FY11 subsidy burden at Rs 121,353.4 mn ($ 70.1/bbl) was almost triple the subsidy/bbl of $ 24.3/bbl in Q3 FY11. This resulted in the net realization plunging by 40% from $ 64.8/bbl in Q3 FY11 to $ 38.7/bbl in Q4 FY11.
- Q4 FY11 domestic crude production at 6.8 MMT was down 3.3% sequentially. Production from nomination fields dropped by 0.2 MMT during the quarter whereas a 5-day repair in MPT resulted in marginal drop of 0.03 MMT in output from JVs.
• Powered by the hike in APM gas price to $ 4.2/mmBtu, natural gas sales from nomination fields jumped by 110% y-o-y to Rs 29,970 mn in Q4 FY11.
- Production from nomination fields at 5.73 bcm was up 1.6% y-o-y, but dropped 1.4% q-o-q.
- Production & sales from JVs fell 11% & 16% y-o-y to 0.58 bcm & 0.52 bcm respectively during the quarter. Gas sales from JVs fell by 14% y-o-y to Rs 4,530 mn.
Operating expenses leaped by 33.1% q-o-q & 39.9% y-o-y to Rs 42,890 mn. Also, other expenses at Rs 5,300 mn were up 223.2% q-o-q driven by a four-fold jump in provisions & write-offs. This led to OPM falling by 1390 bps q-o-q & 1060 bps y-o-y to 46.8% for Q4 FY11. As a result, net profit for Q4 FY11 plunged 60.6% q-o-q & 26.1% y-o-y at Rs 27,908.6 mn. EPS for the quarter was Rs 3.3, as against Q3 FY11 EPS of Rs 8.3.
The upstream sector’s share of the gross under recoveries, which was fixed at ~33% during FY08-10, has been increased suddenly to ~39% in FY11. Since our FY12 & FY13 estimates of gross under-recovery at Rs 911.5 bn & Rs 860.6 bn are higher than gross under recovery of ~Rs 782 bn in FY11, we don’t foresee a return to the 33% sharing mechanism in the near term. Accordingly, we assume 39% of the subsidy burden to be borne by the upstream sector in perpetuity. We estimate post-subsidy realization for ONGC India to be $ 51.9/bbl and $ 54.9/bbl respectively in FY12 & FY13. As per our estimates, ONGC’s crude realizations are capped at ~ $ 58/bbl going forward. We estimate consolidated topline growth of 7.3% and 6.4% in FY12 & FY13 respectively. We estimate net sales of Rs 1,261.8 bn & Rs 1,342.7 bn in FY12 & FY13. We estimate EPS of Rs 26.5 and Rs 29.7 in FY12 & FY13 respectively. Our SOTP valuation for ONGC yields a target price of Rs 303. Our price target translates into EV/boe of $ 5.3/boe and FY12E & FY13E P/E of 11.4x and 10.2x respectively.
We note that the adhoc increase in the subsidy burden for the upstream sector has resulted in heightened uncertainty for investors. By virtue of its size, ONGC bears the lion’s share of the subsidy burden which is leading to depressed realizations & earnings. The upcoming FPO is also expected to result in downward pressure on the stock price as there have been precedents of PSU FPOs being issued at a discount to the CMP to achieve maximum subscription. At our target price of Rs 303, the potential upside is 8.2% only. Hence, in light of the near term external pressures on the company, we revise our rating to UNDERPERFORMER,” says LKP Shares research report.

Market Voices

The markets lost significantly after the release of disappointing IIP data but recovered in the last one hour of trade to close with moderate losses. Interest rate sensitive sectors like banking and realty were the worst performers in today's trade, consumer durables being the only sector to close in the green. The Sensex closed at 18268, down 116 points from its previous close, and Nifty shut shop at 5486, down 35 points. The CNX Midcap index was down 0.3% while the BSE Smallcap index lost 0.5% in today's trade. The market breadth was negative with advances at 439 against declines of 840 on the NSE. The top Nifty gainers were Hindalco, Cairn, ONGC and Ranbaxy and the biggest losers included Grasim, DLF, Reliance Capital and L & T.

Source : Rediff