NSE/BSE STOCK MARKET TIPS

Analysts' picks: NTPC
4 Oct, 2008.

CMP: Rs 171.85
Target price: Rs 208

Goldman Sachs Research has initiated coverage on the stock with a ‘buy’ rating, saying NTPC’s business model entails a high degree of earnings visibility with core business consistently yielding 20% plus return on equity (RoE).

“NTPC scores well as a defensive growth option. It has the lowest risk to funding amongst its peers, competitive cost of generation, RBI guarantee for payment realisation from its customers (financially-constrained SEBs) up to FY2016 and inexpensive valuations,” said Goldman Sachs Research in a note to its clients.

The firm expects the company’s net profit to grow at a compounded annual rate of 7.3% between FY2008 and FY2011E (estimated) on the back of a 30% growth in wholly-owned commercial generation capacity over this period.

“Net income growth would rise progressively over the next three years, as we expect around 45% of the 7,760MW of commercial capacity addition over this period only in FY2011E,” the note said.

Analysts' pick: IVRCL
4,Oct, 2008

IVRCL
CMP: Rs 235.05
Target price: Rs 308

Broking house Prabhudas Lilladher has maintained its ‘buy’ rating on the stock saying the stock is attractively valued at 14.5 times FY09 (estimated) earnings and 11.2 times FY10E earnings at the current market price.

“We expect the company to register a CAGR (compound annual growth rate) of 32% and 25% in revenues and PAT (profit after tax), respectively, for FY08-10(estimated),” said the broking house in a note to its clients.

According to the broking outfit, a substantial order book growth would be the primary driver of revenues for the company.

“The order book as on May 2008 stood at Rs 12,200 crore (year on year growth of 71%) as against Rs 7,100 crore. On account of focus on cash contracts, IVRCL enjoys a healthy order book position amongst the peers,” the note said.

IVRCL has improved upon its Sales/WC (working capital) ratio at 1.9 times as against 1.7 times in FY07 and is expected to maintain the same, says the broking house. “We believe that NWC (net working capital) position in future will depend upon order intake and projects reaching revenue reorganisation level,” the note added.

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Ranbaxy Labs: Canadian jolt
September 28, 2008

The stock closed at almost a six-year low on Friday on a report that the Canadian drug regulator, Health Canada, had issued a notice to the company to review its medicines. Earlier, the stock was under pressure on the USFDA’s decision to ban import of 30 of its drugs manufactured at its facilities in Paonta Sahib and Dewas.

The scrip fell from Rs 356.85 to Rs 272.39 during the week, reporting an almost four-fold rise in the combined turnover on the bourses. A total 30.6 million equity shares were traded on BSE and NSE last week against 8.24 million shares changing hands in the previous week.

Ranbaxy Laboratories, the country’s largest drug-maker by sales, dropped as much as 40 per cent from Rs 453.95, after the US drug regulator blocked the sale of more than 30 generic medicines and seven APIs made at its two facilities.

Dabur up as Nepal facility resumes operations
DALAL STREET SPIKES
September 27, 2008.

The share price of Dabur moved up by 2.30 per cent, or Rs 2, to close at Rs 89.05 on the Bombay Stock Exchange (BSE). The company's subsidiary in Nepal has resumed operations, ending nearly a month-long lock-out by a pro-Maoist union over labour tussle.

The company at Birgunj in the Parsa district resumed operations yesterday after it reached an agreement with the All Nepal Trade Union Federation Revolutionary and dropped a clause that said it would not pay wages for the strike period, sources in the company said. The stock touched a high of Rs 90 and a low of Rs 87 on BSE.

Vishal Info: Acquisition boost

The stock gained 12.4 per cent from Rs 314.55 to Rs 353.65 in a falling market last week after the company announced that it was considering acquisitions in the UK and Europe. The company has announced a board meeting on October 1 to consider raising funds through external commercial borrowings and global depository receipts (GDRs).

The combined trading volume on the counter almost doubled, with 11 million equity shares changing the hands last week compared with 6 million shares traded in the week earlier. The stock, which got listed in August this year, has appreciated by 136 per cent from its issue price of Rs 150 on BSE.

The company covers almost all segments in IT-enabled services sector other than the voice call centre. Currently, the company’s revenues are generated from projects and services and e-publishing, including data digitisation.