If you like buying good quality stocks at rock bottom price then "Distressed Stocks" section is for you. These are good company stocks but at almost 52 week low price.
Today's Stock is
Amtek Auto
http://www.amtek.com/
For more details about Amtek Auto click on the above links
Saturday, 16 October 2010
Buy Mahindra and Mahindra - Target of Rs 831
PINC Research is bullish on Mahindra and Mahindra and has recommended buy rating on the stock with a target of Rs 831 in its October 15, 2010 research report.
“Mahindra and Mahindra (M&M), with a major rural presence, is expected to benefit from strong monsoons this year. The automobile segment is expected to record volume growth of 20.8% in FY11, after an impressive 30% growth in FY10. The tractor segment is expected to grow 10.3% in FY11, due to increased demand from the construction and infrastructure sectors.”
“Mahindra and Mahindra will move on this key
1) Ssangyong, Korea, has selected M&M as a preferred bidder. The acquisition would provide M&M a 2-3 year leap in terms of product development. Financial details on the transaction are awaited. 2) Production for the JV with Navistar has begun at the Chakan plant.
2) M&M has received EPA approval for launch in the US.
3) There is strong demand for small commercial vehicles (SCVs), the fastest-growing CV segment, which M&M recently entered into with the launch of Maximmo and Gio.
4) The company is expected to roll out expansion plans to ramp up capacity given current growth in the tractor segment.”
“We expect EPS of Rs 39.6 and Rs 43.7 in FY11 and FY12 respectively. Our FY11 earnings estimate is 3.3% lower than consensus estimate of Rs 40.9. We value M&M using SOTP at Rs 831, discounting the standalone business at 14x FY12E earnings," says PINC Research report.
“Mahindra and Mahindra (M&M), with a major rural presence, is expected to benefit from strong monsoons this year. The automobile segment is expected to record volume growth of 20.8% in FY11, after an impressive 30% growth in FY10. The tractor segment is expected to grow 10.3% in FY11, due to increased demand from the construction and infrastructure sectors.”
“Mahindra and Mahindra will move on this key
1) Ssangyong, Korea, has selected M&M as a preferred bidder. The acquisition would provide M&M a 2-3 year leap in terms of product development. Financial details on the transaction are awaited. 2) Production for the JV with Navistar has begun at the Chakan plant.
2) M&M has received EPA approval for launch in the US.
3) There is strong demand for small commercial vehicles (SCVs), the fastest-growing CV segment, which M&M recently entered into with the launch of Maximmo and Gio.
4) The company is expected to roll out expansion plans to ramp up capacity given current growth in the tractor segment.”
“We expect EPS of Rs 39.6 and Rs 43.7 in FY11 and FY12 respectively. Our FY11 earnings estimate is 3.3% lower than consensus estimate of Rs 40.9. We value M&M using SOTP at Rs 831, discounting the standalone business at 14x FY12E earnings," says PINC Research report.
Saturday, 9 October 2010
Godawari Power & Ispat
Karvy Stock Broking has maintained an outperformer rating on Godawari Power & Ispat with a target of Rs 260 in its October 7, 2010 research report.
“In Q2FY11, we expect Godawari Power & Ispat (GPIL) to report a sales growth of 19% (YoY) and 2.2% (QoQ) to Rs 1822 million. Steel segment sale is expected to record a 15% (YoY) growth, primarily driven by 9% improvement in realization over Q2 FY10. Further, power segment is expected to record sales of Rs 272 million in Q2 FY11, 140% growth (YoY) backed by volume growth of 87% (YoY), with expanded power generation capacity. Sequential, sales growth is estimated ~2%, where steel segment should grow by 3.4%. Steel segment realization is expected to be flat sequentially; while volume to inch up by ~5%. Despite above 30% volume growth, power sales to register only 2.5% (QoQ) growth, as we expect 22% drop in realization, in line with lower merchant power prices.”
“We expect GPIL to maintain EBITDA margin of 19.8%, in line with Q1 FY11. However, it would be 843 bps margin expansion (YoY), owning to backward integration through iron ore mines and pellet plant. In Q2 FY11, we estimate EBITDA of Rs 360 million, 107% growth (YoY) and 2% growth (QoQ). Net profit should be around Rs 134 million, a flat growth sequentially but staggering 436% growth (YoY) backed by back ward integration coupled with improved steel prices. GPIL had faced production constraint in Q1 FY11; hence production slipped below our estimates. We expect constraint to continue in Q2 FY11 also. Hence, we retain our valuation cautiously and watch the production constraint issue. We retain our target price at Rs 260 (1x FY12 BV) but upgrade rating from Market performer to Outperformer owning to recent price correction,” says Karvy Stock Broking research report.
Thursday, 2 September 2010
Buy Visa Steel; target of Rs 52: Networth Stock Broking
Networth Stock Broking is bullish on Visa Steel and has recommended buy rating on the stock with a target of Rs 52 in its September 2, 2010 research report.
“VISA Steel, a part of Rs 5000 crore VISA Group, is an emerging integrated specialty steel company. It is engaged in the manufacturing of pig iron, lam coke, ferro chrome, sponge iron, captive power and soon entering into special steel products with its operations in Orissa and Chhattisgarh. Currently the stock is quoting at 8.4x on TTM EPS of Rs 4.2. We give BUY rating on Visa Steel Limited at current levels with FY12 price target of Rs 52, an upside of 47%,” says Networth Stock Broking research report.
“VISA Steel, a part of Rs 5000 crore VISA Group, is an emerging integrated specialty steel company. It is engaged in the manufacturing of pig iron, lam coke, ferro chrome, sponge iron, captive power and soon entering into special steel products with its operations in Orissa and Chhattisgarh. Currently the stock is quoting at 8.4x on TTM EPS of Rs 4.2. We give BUY rating on Visa Steel Limited at current levels with FY12 price target of Rs 52, an upside of 47%,” says Networth Stock Broking research report.
Jaiprakash Associates Ltd
If you like buying good quality stocks at rock bottom price then "Distressed Stocks" section is for you. These are good company stocks but at almost 52 week low price.
Today's Stock is
Jaiprakash Associates Ltd
http://www.jalindia.com
For more details about Sterlite Industries Ltd click on the above links
Today's Stock is
Jaiprakash Associates Ltd
http://www.jalindia.com
For more details about Sterlite Industries Ltd click on the above links
Buy Reliance Industries: Baliga
Buy Reliance Industries, says Ambareesh Baliga, Karvy Stock Broking.
Baliga told CNBC-TV18, "We have been betting on Reliance for quite a while and even at these levels we feel that possibly the downside is very-very limited. It actually should not really have come below those Rs 950-960 levels but we took it as an opportunity to picked up at lower levels."
He further added, "There is nothing fundamentally wrong with Reliance as a company. The markets may not have liked those recent investments they have made but then for that I do not think this stock should have punished so much. So at these levels clearly we are buyers. We still feel that possibly next 15-18 months we should see the levels of Rs 1384-1400 which I think is a decent return from these levels."
Baliga told CNBC-TV18, "We have been betting on Reliance for quite a while and even at these levels we feel that possibly the downside is very-very limited. It actually should not really have come below those Rs 950-960 levels but we took it as an opportunity to picked up at lower levels."
He further added, "There is nothing fundamentally wrong with Reliance as a company. The markets may not have liked those recent investments they have made but then for that I do not think this stock should have punished so much. So at these levels clearly we are buyers. We still feel that possibly next 15-18 months we should see the levels of Rs 1384-1400 which I think is a decent return from these levels."
Friday, 27 August 2010
Buy Max India target of Rs 231
Sharekhan is bullish on Max India and has recommended buy rating on the stock with a target of Rs 231, in its August 26, 2010 research report.
“Max India reported a consolidated loss after tax of Rs 23 crore during Q1FY2011 as compared to a loss of Rs 75 crore in Q1FY2010. The total revenues contracted by 19% year on year (yoy) to Rs 1860 crore due to a 64% year-on-year (y-o-y) contraction in investment revenues. The operating revenues however expanded by 17% yoy. We remain convinced about the long-term growth prospects of the life insurance industry in spite of the regulatory concerns plaguing the insurance sales in the near term. Although the changes are positive for life insurers in the long run (as they will improve persistency and allow for a more sustainable growth), they would be negative from a short term perspective leading to a compression in margins as well as a slowdown in new business premium sales. However MNYL with its bancassurance tie up with Axis bank coupled with its high conservation ratio and balanced portfolio mix is at an advantage over other players to weather the current regulatory turmoil. Further the other subsidiaries of Max India such as Max Bupa and Max Healthcare, which also put up a strong show during the quarter, would aid in boosting the bottom line in the future.”
“We continue to maintain our optimistic take on the stock based on the bright prospects of the life insurance sector in the long run, while alerting investors with a short-term horizon to exercise caution as the stock may witness increased volatility post the implementation of the regulatory changes from September. We maintain our Buy recommendation on the stock while revising our target price downward to Rs 231 to factor in the impact of the regulatory changes,” says Sharekhan research report.
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