Market Outlook
The markets opened on a nervous note and ended the session with losses as the bulls failed to keep the Nifty above the 5510 bullish pivot throughout the session. The benchmark indices ended with approx 1 % losses at close. The traded volumes were lower as compared to the previous session, which is a routine indicator for a downtick session. The indices have closed in the lower end of the intraday range as the bulls were unable to offer support at higher levels. The intraday range specified for the Nifty between the 5525 / 5450 was breached marginally as the Nifty tested the 5439 levels, thereby mildly exceeding our intraday levels on the downside. The coming session is likely to witness resistance at the 5490 levels on advances. Support is likely at the 5400 levels below which the 5375 level maybe tested.
Technical Calls
Buy Bombay Dyeing 367.00 target 375
Buy GVK Power & Infra 22.30 target 30
Buy ING Vysya 335.000 target 340
Buy BGR Energy 496.50 target 500
Buy Everonn 541.00 target 550
Buy Shriram Transport 634.00 target 645
Buy ONGC 268.00 target 275
Momentum Calls
Buy KPIT 170.00 target 175
Buy Hindustan Zinc 133.70 target 140
Buy SPIC 29.00 target 35
Buy
Buy Provogue 39.10 target 45
Buy ITC 194.00 target 205
Buy Time Techno 65.00 target 70
Investment
Sintex Industries: BUY, TP-Rs 240 (25% upside) PINC
What`s the theme?
Sintex has a diversified business model marked by low volatility in sales, profit and cash flows. It is a market leader in the Monolithic and Prefab segment.
What will move the stock?
We like Sintex primarily because of: - The Monolithic and Prefab segments are expected to grow at 25% and 27% CAGR over FY11-FY13E respectively. The acquired overseas and domestic subsidiaries are likely to show operational improvement with 300bps increase in margin to 12.2% in FY13e vs. FY10. We expect the company to emerge cash flow positive in FY12-FY13e through better management.
Where are we stacked versus consensus?
Our earnings estimates (EPS) for FY12 and FY13 are Rs 20.2 and Rs 23.6 respectively. Our FY12 earnings estimate is 1.5% higher than consensus estimate of Rs 19.9. We have a `BUY` recommendation on the stock with a target price of Rs 240, which discounts FY12E earnings by 12x.
What will challenge our target price?
Execution risks in the Monolithic and Prefab segments
Fluctuation in raw material prices denting margin
Delay in improvement of subsidiaries
Investment
Phoenix Mills: BUY, TP-Rs 238 (19% upside) PINC
What`s the theme?
PHNX`s key project, High Street Phoenix (HSP), is now fully operational and is likely to generate rental income of Rs 2-2.2billion in FY12E. In addition, rental income would accrue from renewal of 0.15 msf in HSP.
What will move the stock?
We see the following near-term triggers for the stock: (1) Commencement of three Market City Projects in Q1 & Q2 FY12; (2) Commencement of the first phase of Shangri-La Hotel in Q2FY12; (3) HSP-Phase IV (0.25 msf) - although this provides a strong delta to the company`s valuation, it may add significant upside if PHNX manages to secure hospitality FSI (5x).
Where are we stacked versus onsensus?
Our EPS estimates for FY12 and FY13 are Rs 14.3 and Rs 15.8 respectively. Our FY12 earnings estimate is 40% higher than consensus estimate of Rs 10.2. We have a `BUY` recommendation on the stock with a target price of Rs 238, which discounts FY12E gross NAV by 20%.
What will challenge our target price?
Slowdown in execution in
Visit the Blog http://www.bazaaredge.com/blog
Affordable Website Design + Hosting Plans start from Rs 4999 http://www.simplyweb.in
Disclaimer : This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. And not soliciting any action based upon it. The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. We or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report
----------------------------------------------
The message was checked by Zillya! Antivirus 1.1.2942.0, bases 2.0.0.672 - No viruses detected
No comments:
Post a Comment