Range Trading : GMR Infrastructure Ltd

Range Trading


A strategy that involves buying as price moves to lower support levels and selling as price moves to upper resistance levels

GMR Infrastructure has been largely trading in the range of 50 to 66 levels from almost a year.


Buy at around 50
Sell at around 62
Gain 24%


Risk : Sell it if it breaks 50 and trades below 50 level for few days
Reward : Hold if moves above 62 on large volume

Amtek Auto

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

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.

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.

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.

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

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."