Nifty: Daily
For the day we may see the gap up opening on the back of strong global cues. As we mentioned on Thursday we may
come across sharp bounce back today, however as the market is in medium term down trend traders should be cautious
while entering into trading long positions around 4890/4900 (16560) levels as failure to breach these levels may invite
fresh short sellers. In case the market extends its pull back and able to reach 50% of the fall, which is at 4960/16740
levels then it will neutralize the pain of the current fall and may minimize the down side for the market.
4 The Centre approved REC’s proposal for a follow-on public offering on
Thursday. The issue will constitute 20% of the existing paid – up capital –
fresh equity of 15% and dis-investment of 5%. (BL)
4 Bank of India has reported a decline of 57% in net profit to Rs.3.23bn
for the second quarter of current fiscal, over the same period a year
earlier. However, the bank's total income grew by 12% to Rs.51.6bn in
the latest quarter of the current financial year from Rs.46.1bn of the year
ago quarter.(ET)
4 Mahindra & Mahindra reported a net profit of Rs.8.4bn for the second
quarter ended September 30, 2009, driven by good sales in both
automotive and farm equipment sectors. The company, which posted net
profit of Rs.3.7bn in the same quarter previous fiscal, said its results are
not comparable owing to restatement of accounts after merger of
Punjab Tractors Ltd last year. Gross revenues and other income stood at
Rs.82.6bn in the second quarter, while it had reported Rs.77.7bn in the
same period a year ago. (ET)
4 DLF registered a profit of Rs 4.39bn during the quarter, compared with
Rs 19.3bn during the comparable quarter last year, shows the
consolidated results announced by the company today. Sales (and other
receipts) during the quarter also dipped 53% to Rs 17.5bn (BS)
SHREE CEMENTS
PRICE: RS.1577 RECOMMENDATION: ACCUMULATE
TARGET PRICE: RS.1825 FY11E P/CEPS: 4.4X
Result highlights
q Revenues for Q2FY10 grew by 43% YoY led by 23% growth in dispatches,
13% growth in cement realizations as well as increased captive
power sales.
q Operating margins of the company registered an increase on account of
improvement in realizations, reduction in overall costs as well as higher
captive power sales and stood at 45.4% for Q2FY10 as against 29% for
Q2FY09.
q Healthy revenue growth as well as improvement in operating margins
resulted in 169% growth in the net profits in the current quarter as
compared to Q2FY09.
q At current market price of Rs.1577, stock is trading at 4.1x and 4.4x P/
CEPS and 3.2x and 3.8x EV/EBITDA for FY10 and FY11 respectively. We
revise our cement dispatch numbers and power sales upwards for FY10
and also introduce FY11 estimates. We roll forward our price target to
FY11 and arrive at a revised price target of Rs 1825 based on average of
5x P/CEPS and 4x EV/EBITDA as against Rs 1690 earlier on FY10 estimates.
We continue to maintain ACCUMULATE rating on the stock and
would advise investors to use any decline in the price to buy the stock.
