Equity Bulls Recommendations-HDFC, GODAWARI POWER & ISPAT, ABAN OFFSHORE, BPCL, INDRAPRASTHA GAS

HDFC

RESEARCH: INDIABULLS SECURITIES RATING: BUY CMP: Rs 2,053

HDFC continued to post consistent growth in FY08. Its net profit surged 55% in FY08, while its asset size increased 29%. Indiabulls Securities reiterates its 'buy' rating on the stock due to the following factors: Loans grew at 29% over the year. The compound annual growth rate (CAGR) for mortgage lending for the past five years is 27%. During the slowdown in FY08, the company maintained its growth rate by substituting corporate loans with individual loans. Indiabulls is upbeat about HDFC's future as the company is focused on maintaining its key strength, i.e. maintaining its momentum in lending, despite changes in the demand dynamics and following sound risk management policies. In the fourth quarter (Q4) of '08, HDFC's spreads increased by 14 basis points (bps) to 2.32%. Its net interest margin (based on quarterly averages) rose by 29 bps yearon-year (y-o-y) to 1.26%. Going forward, high margins, coupled with growth in advances, will help HDFC to sustain its growth momentum. The company has consistently reduced its non-performing loans (NPLs) by adhering to sound risk management policies such as adopting a low loan-to-value ratio (average of 65%, maximum of 85%) and lending primarily to end users of property. At the end of FY08, gross NPLs (three months) fell 8 bps y-o-y to 0.84% and the credit cost fell 8 bps to 0.84%.
Also Read: gem worth investing - HDFC BANK

 

GODAWARI POWER & ISPAT

RESEARCH: MOTILAL OSWAL RATING: BUY CMP: Rs 207

GODAWARI Power & Ispat has received an 'in principle' approval from the forest department for mining iron ore from 107 hectares at Ari Dongri in Chhattisgarh, which was pending for 18 months. This is a major milestone achievement in obtaining the final mining approval. Now, the company will be able to complete all legal formalities to get the final mining licence within three months. Ari Dongri has high grade lumpy ore that is suitable for sponge iron production. Iron ore production is expected to be ramped up to 400-600 kilo tones per annum (ktpa) in FY10. The company is currently buying iron ore from private miners at ~Rs 4,000/tonne. Once the iron ore mine is operational, the cost of mined iron ore will be ~Rs 1,000/tonne, which will generate savings of more than Rs 100 crore in FY10 due to substitution of purchases. During FY09, sponge iron production is expected to increase 17% and margins are likely to improve due to substantial increase in sponge iron and steel prices, while the cost increases will be moderate. Margins have already expanded, as is evident from the recently announced Q4 FY08 results. The current prices of sponge iron and steel are substantially higher than the average prices during Q4. Hence, margins are likely to be even better in subsequent quarters. The stock trades at a price-to-earnings (P/E) multiple of 4.1x FY09E and 2.5x FY10E. If the savings of Rs 100 crore on account of captive mining of iron ore are factored in, the stock trades at a P/E of 1.7x FY10.

ABAN OFFSHORE

RESEARCH: EMKAY SHARE & STOCK BROKERS RATING: BUY CMP: Rs 2,993

EMKAY Share & Stock Brokers maintains a 'buy' recommendation on Aban Offshore with a revised price target of Rs 5,330. The price target is based on 10x Aban's FY10 earnings per share (EPS) of Rs 533. In order to protect the US from the spiralling oil prices, President George W Bush called for an end to the long-standing federal ban on offshore drilling and open the Arctic National Wildlife Refuge for oil exploration. Even though Mr Bush called for repealing of the ban on offshore drilling, an acute shortage of deep water offshore rigs promises to impede any rapid turnaround in oil exploration and supply. Over the past few years, a near 100% utilisation for offshore and a fairly long gestation period for newly built rigs has created a critical bottleneck, constraining the ability of exploration & production (E&P) companies globally to exploit known reserves or find new ones. As a result, the day rates for deepwater rigs in the Gulf of Mexico are now hovering around $600,000 a day. The day rates for such rigs will continue to remain firm with an upward bias. As 35% of the company's revenue is expected to be derived from the deepwater segment in FY09, Aban is likely to be a beneficiary of this uptrend in day rates for deepwater assets. Also, Aban has one deepwater semi-submersible rig, Bulford Dolphin, currently under refurbishment to get contracted. The offshore oilfield services industry's fundamentals remain compelling and Aban is the best play to drive the strong demand for offshore rigs and continued uptrend in day rates. Aban is currently trading at 8.4x its FY09 earnings and 5.9x its FY10 earnings.

Also Read: gem worth investing - ABAN OFFSHORE

 

BPCL

RESEARCH: MACQUARIE RATING: OUTPERFORM CMP: Rs 247

BHARAT Petroleum Corporation (BPCL) reported a recurring profit after tax (PAT) of Rs 58.4 crore in Q4 FY08, which was below the expected profit of Rs 120 crore. The difference was primarily on account of higher net interest burden due to the pending issuance of Rs 4,000-crore oil bonds by the government. BPCL's sales volumes grew 11% y-o-y to 7 million metric tonnes (mmt) in Q4 FY08, as a result of 8.5% y-o-y growth in domestic sales and 77% y-o-y growth in exports. The refinery throughput declined 5.1% y-o-y and 4.2% q-o-q to 5 mmt. This, coupled with the increase in petrol and diesel prices in February '08, resulted in 35% y-o-y and 13% q-o-q growth in net sales. BPCL reported gross refining margins (GRMs) of $6.65/bbl in Q4 FY08 (vs $5.83/bbl in Q4 FY07 and $5.28/bbl in Q3 FY08), in line with the sharp increase in GRMs globally. Petrol and diesel retail margins remained significantly negative during Q4 FY08 as the rise in global crude prices could not be passed through. In addition, BPCL received oil bonds worth Rs 3,970 crore (vs Rs 900 crore in Q4 FY07 and Rs 2,080 crore in Q3 FY08) from the government as compensation for under-recoveries. The initial ad-hoc announcement by the government for subsidy-sharing in FY09E suggests that oil marketing companies such as BPCL will be significantly disadvantaged. The government's primary intent is to keep BPCL's earnings largely between Rs 1,000 crore and Rs 1,500 crore. Since early '08, BPCL had started outperforming, given its defensive, deep value (0.6x PBV, 6.1x FY10E PER) nature.

INDRAPRASTHA GAS

RESEARCH: ENAM SECURITIES RATING: OUTPERFORMER CMP: Rs 115

ENAM Securities maintains sector outperformer rating on Indraprastha Gas. IGL reported net sales of Rs 187 crore, up 14% y-o-y, and PAT of Rs 48.2 crore, up 20% y-o-y. For the full year, a jump in CNG and PNG volumes helped IGL post an impressive 27% increase in PAT (Rs 174 crore for FY08, against Rs 138 crore for FY07). Strong growth in the conversion of private vehicles to CNG and rapid expansion of PNG network led to a rise in volumes. Full-year sales for CNG and PNG were 386.2 million kg (vs 344 million kg in FY07) and 42.9 mmscm (vs 36.6 mmscm in FY07), respectively. High crude prices, fresh supply coming in from Reliance Industries' Krishna Godavari D6 gas in H2 FY09, and favourable economics that gas offers over oil, can lead to acceleration in CNG/PNG demand. The Delhi government plans to enhance transport infrastructure in view of the Commonwealth Games in '10. IGL will benefit from high volume growth with the introduction of radio taxis and high capacity buses on CNG. IGL currently supplies ~1.6 mmscmd of gas and has allocation for 2.2 mmscmd. It has applied for an additional 0.4 mmscmd for supply to other areas in the NCR. In Enam's view, the market is largely ignoring IGL's business franchise and its ability to manage costs, and seems to be more concerned about the impact of regulations. But at current valuations (9.1x FY09E EPS), the concerns seem to be overdone, and the stock offers a great investment opportunity.

Also Read- Research Report: The Right Choice - INDRAPRASTHA GAS (IGL)

 

Source: Equity Bulls

Some of the Best stocks below Rs. 100

Where to shop when you have just 100 bucks. Here is the list of companies which showcase robust financials and belong to the universe of firms that trade at a price below Rs 100

“Psychology is probably the most important factor in the market — and one that is least understood.”

SO BELIEVES David Dreman, the guru of contrarian investing. His statement testifies itself more often than ever in times of panic in the stock market. A slump in the market may augment manifold the impression of every bad news on the investor’s psyche. This may result in a lower risk-taking ability, while placing bets in the market.
Though at ET Intelligence Group, weclosely track the stock market and provide insights on trends and future expectations, psychology and that too, market psychology, is not our expertise. But it becomes not only an interesting exercise, but also an essential one to tap into the way investors shape their thinking during times of turbulence.

This week, ETIG presents a list of companies which have performed exceptionally well over the past three years based on a stringent set of parameters. Though this may appear to be a regular exercise from ETIG’s stable, it is unique as it takes into account only those companies whose stocks have been trading at a price below Rs 100. The reason behind drawing up such a list in the first place was to address the issue of declining risk appetite of investors who feel battered by the recent crash in the stock market. But what does it have to do with the stocks that carry a price tag of Rs 100 and below?
The general perception is that stocks of blue-chip companies, which trade at prices in three and four digits, are expensive in terms of absolute numbers. Though their ‘expensiveness’ is backed by healthy business fundamentals, investors often turn their back on these heavyweight scrips during tough times. This is because it requires a sizeable kitty to buy a good number of shares of these companies. For instance, to accumulate 100 shares of a scrip that trades at Rs 3,500, one may have to shell out Rs 3.5 lakh. In happier times, it may not be a tough call for a retail investor to go for the kill. However, during market adversities, an investor may feel apprehensive about the same bet.

In contrast, a scrip that costs, say, Rs 50 may call for a lower sum of investment and may appeal more for the same reason. This feeling of ‘buying cheap’ becomes prominent when times are bad. To help investors zero-in on the space populated by stocks that cost less than 100 bucks, ETIG carried out an exercise involving over 1,400 stocks. These were then put through a stringent criteria to select 10 stocks that fit the bill. Do read the methodology we put to use in order to get the list out.
While these companies trade at a price below Rs 100, they boast of an enviable track record. Here, we present the list of 10 companies that met our criteria.
The companies that have made it to our list are from various sectors. There are four companies from the IT sector and two from electrical machinery. The list also contains two bearings companies.

Interestingly, six out of 10 companies in our list are currently trading at a price-toearnings (P/E) multiple of less than 10. Further, the stock prices of two companies in the list have fallen more than 50% over a span of one year. The period encompasses the current fall in the market.
We ranked the companies based on their FY07 revenues. On top was Kolkata-based storage battery maker Exide Industries. At Rs 2,085.5 crore, its FY07 net sales grew by 35.6%. This is the fastest rate of growth in the past three years. Sales further grew to Rs 3,606 crore in FY08. It has a debtequity ratio of 0.52 and generates an over 20% return on capital employed (RoCE).

Berger Paints is the second company on the list. It is among the top few paint manufacturers of India. Apart from offering a range of paints, it also provides customised home painting solutions. At a 31% RoCE, the company has a low debt-equity ratio of 0.4. With a P/E multiple of 12, it is cheap when compared to the industry average of 24. However, its net profit margin is comparable at 7%.

Teledata Informatics, which currently trades at Rs 15.9, is the third biggest company in our list. It provides software solutions to utilities and education sectors and also offers network communications solutions. The company has been recording robust financials. However, its valuations have undergone a substantial decline over one year. The company, which was trading at a P/E of about seven times its trailing 12 month earnings, now trades at a P/E of about one. It needs to be mentioned that the company demerged its business late last year. Teledata’s stock has fallen by about 71% in a year, the sharpest for any company in our list. Other software companies that secured a berth in our list were Aftek, Aztecsoft and Visesh Infotecnics. Apart from these companies, bearings companies NRB Bearings and ABC Bearings also feature in our list. Each of them makes ball and roller bearings. Each of them makes ball and roller bearings. Out of the two, ABC Bearings has a higher RoCE, yet it is currently trading at a lower valuation in terms of P/E. But there is a caveat emptor. Do not mistake this list for stock recommendations. Do a little bit of your own calculations and assess your risk appetite and only then take a plunge into these stocks. As they say, past performance is no guarantee for future returns...

M E T H O D O L O G Y

AMONG 1,500 companies that were trading at a price below Rs 100, we selected companies with net sales of more than Rs 100 crore and profit after tax (PAT) of at least Rs 10 crore. We then looked for companies with robust financial performance. We started off by eliminating all those companies that had recorded less than 15% growth in net sales and PAT in any of the past three years. Further, we filtered companies on the basis of debt-to-equity ratio and return on capital employed (RoCE). While a high debt-to-equity ratio indicates that a company may not be able to generate enough cash to satisfy its debt obligations, a low leverage ratio increases a company’s potential to raise funds. Hence, we selected companies which had a debtto-equity ratio of less than 1.5. In order to carry sustainable operations, it is necessary for a company to operate at an RoCE which is well above its cost of capital. Only those companies with an RoCE of more than 15% could make it to the next stage. The final criterion was to do away with all companies whose three-year average net cash flows from operating activities was less than 50% of their reported cash profit.

Source : ETIG (Economic times)

Ennore Coke Ltd - Story favourite with stock operators

Scrip:Ennore Coke Ltd

Code:512369

Cmp:29

 

Story:-The new coke kid is on the block for you guys now. Ennore coke is an unique story and has already been a great favourite to some operators. The scrip in the present market condition fell drastically from the recent highs of 70 rs.Some times back the company has been taken over by great business minded guys having long experience in the coal and coke trade business.Now it belongs to the 16000crs shriram group. If market rumuors are to be beleived then the company is going to do wonders in the coming days.The buzz in the bourses is that the company is going to report a turnover of over 30crs from nothing last year.

 

 

Zicom Security Systems - Best stock for long term ...

Praj Industries - Best Indian Stock Pick

POWERGRID CORPORATION OF INDIA (PGCIL) - Research ...

The Right Choice - INDRAPRASTHA GAS (IGL)

 

 

The Raw material (Prime Quality metallurgical coal) supply has been tiedup with a foreign company.The company has also signed a MOU with Eco securities Mumbai for Carbon credits.The coke prices is expected to reach new highs which is expected to provide further push to the bottomline of the company.Since there are not many direct coke plays many investors are betting on it as a steel end-user proxy play. Though it should be keenly watched how the things materilizes but already the company seems to be finding lot of takers among the investors fraternity. So if you have got a brave heart filled with lot of risks apetite,Go for it.

Cairn Energy - Buy recommendation research report

Cairn Energy-BUY

Scripscan:Cairn india ltd

CMP:260

Target:374

Traded in:Nse-bse

 

 

Its an interesting report from UBS and if cairn comes out with numbers as per UBS estimates-Expect huge upsides on the counter.

 

 

[Cairn india ltd news,views and analysis/Oil exploration company/turning it on/buy call given by ubs/major beneficary of high crude oil prices/upcoming results/great future prospects/going to do wonders/target price/Hidden gem/Great bet to own/what to do with cairn energy ltd?]

 

Upgrading to Buy on revision of UBS crude oil prices:We upgrade our rating on Cairn India to Buy (from Sell) and price target to Rs374 (from Rs246) on the back of the upward revision to UBS forecasts for crude oil price. UBS revised the oil price forecasts for all years from CY08 and including the long-term forecast. Given our new explicit oil price forecasts till CY12, we believe the current price reflects a long-term oil price of only $48/bbl.

 

Sasken Communications:Buy recommendation

Buy RIL on a big correction

Buy Aban Offshore, tgt Rs 5330: Emkay

Bull's Eye - NESTLE, GAIL, ONGC, AUROBINDO PHARMA,...

 

 

UBS raises the oil price forecasts including long-term forecast:UBS has raised the oil price forecast to US$ 113.5/120/116/135/155 per barrel in 2008/09/10/11/12 respectively primarily driven by the expectation of supplies falling short of demand substantially pulling down spare capacities. UBS has also raised its long-term oil forecast from $73/bbl to $95/bbl from 2013, on the expectations of higher cost inflation in key upstream projects and GlobalOilCo.

 

Raising earnings estimates for Cairn India:Driven by the new higher forecasts for crude oil, we raise the earnings estimates for Cairn India in CY08/09/10 by 209%/110%/73% to Rs 1.4/14.0/74.6 respectively. We do not revise any of our assumptions on productions costs in doing so.

 

Valuation:We change our rating to Buy and raise our target price to Rs 374. Our price target is based on our NAV estimate for Cairn India's E&P assets. We use a DCF to value CIL's stake in Rajasthan, Ravva and Cambay blocks. For the remainder of CIL's assets, we use EV ($)/boe. We also factor in exploration upside by assuming net unrisked reserves of 550 mmboe adjusted by a risk weight of 20%.

Source:UBS

Zicom Security Systems - Best stock for long term investment

Undisputed leader in Indian Electronic Security market Zicom Security Systems is providing strong investment opportunity for visionary long term investors. Zicom is a niche player in a highly unorganised sector which has very strong growth possibilities. Future stars: Zicom Security SystemsCompany is planning to open 180 exclusive retail outlets by 2011 which will expand its market further. Joint venture with CNA group, Singapore helps the company to offer integrated intelligent building management solutions.

Companies prefer Zicom over unorganised players because as it provides complete electronic security solutions for them. Zicom launched Z-security, first hi-tech electronic security service in India. Zicom tied up with Future group to have exclusive outlets at its retail show rooms like Pantaloons and Big Bazaar etc.

 

Zicom Security products:

1. CCTVs.

2. Smart cards.

3. Fire alarms.

4. Remote video surveillance

5. Biometrics and video door phones 6. Spy gadgets 7. Jammers 8. Sting operation kits 9. Mobile signal boosters 10. Access control systems etc. Important news: Zicom Board meeting will be held on June 30th. Company will announce FY2008 results at board meeting which will give real direction to the share moment.

 

Zicom stock price analysis:

CMP: 142.9

P/E: 18.9

1 year high-low: 270-111.

Verdict: Zicom Electronic Security Systems is a "must buy" for long term investors who can understand the business potential in the home and corporate security segments. Growing awareness about electronic security systems and lack of competition in the market make this company a "safe buy" for good returns over long term. Reasonable valuations despite operating in the niche segment make Zicom Security Systems a compelling buy. Analysts are expecting better than expected results from the company on June 30th. Closely watch out for the outcome of board meeting.

Praj Industries - Best Indian Stock Pick

Biofuel technology and equipment provider Praj Industries is always loved by Stock market investors. Pune based alternative fuel major attracted legendary investors like Vinod Khosla and Rakesh Jhunjhunwala. Praj Industries is in good position to capitalise on the world search for alternative energy sources due to high crude oil prices. Praj Industries developed ground breaking Lignocellulosic technology to produce ethanol from non-crop products like Sugarcane.

Significant News:

1. Praj Industries started the commercialisation of Lignocellulosic technology process- Biomass magazine (July, 2008). Praj started commercialisation process 1 year earlier than analysts' expectations.
2. Praj recently got Rs 1.2 billion order for bio-ethanol equipment from UK-based Vivergo. Company set up manufacturing unit at Kandla SEZ to meet global demand.
3. Praj Industries won the Star SME award at Business Standard annual awards function.
4. Biofuel equipment agreement with Maple Energy for its South American plant.

Praj Industries Stock analysis:

CMP: 165
P/E: 19.6
1 Year high-low: 273-100.

Image source: Business Week.

Praj Industries target price: It is better for short term investors to stay from this scrip. Long term investors can accumulate more on further fall without hesitation.

1 year target: 220-230 (EPS will be around 10 and P/E will improve to 22). This is a conservative estimate due to current bear market conditions.
Ideal investment duration: 3-4 years.

Interesting statistic: Praj Industries gave more than 2500% returns in the last 5 years.

 

 

Sasken Communications:Buy recommendation

Buy RIL on a big correction

Buy Aban Offshore, tgt Rs 5330: Emkay

Why Praj Industries is a good long term stock?

1. Praj has 10 years experiences in Biofuels and has 9% market share in global Biofuel market. It is an undisputed leader in India.
2. Lignocellulosic technology developed by Praj will provide huge commercial opportunities.
3. Government policy of ethanol blending with petrol is another opportunity.
4. It is a zero debt company which is good in high interest rate times.
5. It is in alternative energy business which has good prospects in these high crude oil price times.
6. It is providing advance technology to firms like Tata Chemicals and Praj has more than Rs 900 crore order book from 35 countries.
7. Most of the mutual funds increased their holdings in Praj Industries in May.
8. Its global acquisitions will add revenues to the balance sheet in the next 1-2 years.
9. Analysts are expecting 25% growth in sales and 30% growth in profits. Praj may beat their expectations due to Lignocellulosic technology.
10. Sugar companies will make huge investments in Biofuel space- huge demand for Praj technology and solutions.

Negative triggers for Praj Industries:

1. Change in policies of Governments towards Biofuels due to food shortage.
2. Government interference in sugarcane prices is another concern.

Advice for technical investors: Praj Industries is currently trading just above its strong support levels. Fall to below 158 levels is a concern. This information is only for the sake of short term investors.

 

Choppy markets hit book values of cos

Blue Chip stocks that hit their 52-week low

Bear run pushes DLF below issue price

Verdict: If you believe in the alternate energy theory, you should buy Praj Industries. It has strong management, giant investors' support, vast experience, ability to grab upcoming opportunities; ability to develop new technologies coupled with strong growth visibility made Praj Industries a strong buy for long term investors with 24-30 months horizon. Tata Sons bought 7% stake in Praj Industries and Praj is working closely with Tata Chemicals in the Biofuel space.

 

Source: stockmarketguide .in

POWERGRID CORPORATION OF INDIA (PGCIL) - Research report

POWERGRID CORPORATION OF INDIA (PGCIL)
BSE CODE: 532898
NSE SYMBOL: POWERGRID
Current : 105,
Target : 250 in 1 year

POWERGRID was incorporated in October, 1989 with the mission of “Establishment and Operation of Regional and National Power Grids to facilitate transfer of electric power within and across the regions with Reliability, Security and Economy, on sound commercial principles”.Transmission assets and manpower from the constituent central sector undertakings namely NTPC, NHPC, NEEPCO, NLC, etc were progressively transferred to POWERGRID. POWERGRID is engaged in Construction and Operation & Maintenance of inter-State transmission system and operation of Regional Power Grids and has been notified as the Central Transmission Utility of the country.

· PGCIL has plans to invest INR 550 bn in transmission projects for the Eleventh Plan(FY08-12). This will include increasing the inter-regional power transfer capacity to more than 37,000 MW by 2012 from 17,000 MW currently. During the nine months ending December FY08, projects of INR 52.6 bn were commissioned, including INR 19 bn in Q3FY08. The company is expected to commission projects of INR 30 bn in Q4FY08. In FY09, it is expected to spend ~INR 85 bn for investment in various transmission projects. PGCIL is expected to invest ~INR 350 bn during FY10-12E.

· This year, the company has increased its inter-regional power transfer capacity from 13,700 MW to 17,000 MW. It has added about 4,800 ckt kms, 8 new sub-stations, and around 7,200 MVA of transformation capacity.

Sasken Communications:Buy recommendation
Buy RIL on a big correction
Buy Aban Offshore, tgt Rs 5330: Emkay

· The company is expected to have net profit of INR 20,343 mn in FY09E and INR 26,022 in FY10E, after inclusion of profits from telecom and Consultancy. From the telecom business, PGCIL is expected to have profits of INR 1,297 mn and INR 2,847 mn in FY09 and FY10, respectively, including profits from leasing of fibre optic bandwidth and usage of transmission towers as mobile towers.

· PGCIL currently has an overhead optic fibre network of 20,000 km, spanning 100 cities in the country. The company has order of over INR 3,000 mn from various telecom players for leasing the optic fibre bandwidth. It also holds license for national long distance dialing (NLD) and offering services as internet service provider (ISP); the company has been generating revenues from both these segments over the past two quarters.

· PGCIL is in talks with telecom players for leasing its transmission towers as mobile towers,it is expected to lease close to 23,000 transmission towers to mobile operators in the next three years.

· Power Grid Corporation of India Ltd (PGCIL) said its revenue increased to a whopping 62 per cent to Rs 125 crore during FY08. This is the first time the Company's foray into telecom business garnered such a sizeable amount in revenues. 'The company is serving major telecom players in mobile and National Long Distance Operator (NLDO) segment and is also planning to tap customers in the entertainment and broadcasting industry.

· It is planning to spread its business overseas, reports Business Line. The company is eyeing opportunities in West Asia and the African markets, with consultancy forays in Nigeria and Dubai on the anvil. The company is in talks with Dubai Electricity and Water Supply (DEWA) to operate consultancy business. Power Grid has already received a contract for laying three transmission lines in Myanmar, while the firm has completed a pre-feasibility report on a proposed under-sea transmission between India and Sri Lanka.

· According to the Budget of 2008, PGCIL can take loan from any bank around the world on a low interest rate. As observed, 26% of expenditure of PGCIL is that of paying bank loan interest. PGCIL is in process of obtaining loans for its further expansion at a low interest rate from banks around the world.

· Power Grid Corporation of India Ltd (PGCIL) has bagged a $600 million loan from the World Bank to strengthen its electricity transmission system. Announcing the loan, which is backed by a Government of India guarantee, the Bank said in a statement that the Fourth Power System Development Project (PSDP IV) would aim to reduce transmission losses and cut the cost of energy through further investments in the utility’s systems.

· PGCIL is entering Nifty. According to shareholding pattern, only 8.4% is held by public. So within 3 months, 3% will enter in Nifty basket because of which there will be shortage of liquidity in this stock.

· Power Grid Corporation of India Limited (POWERGRID) has paid an interim dividend of Rs.176.68 Crore, for the financial year 2007-08.

Bull's Eye - NESTLE, GAIL, ONGC, AUROBINDO PHARMA,...
'A' group stocks falling prey to Inflation, hit 52...

· Three projects of Power Grid Corporation of India Limited (POWERGRID) have bagged the prestigious National Awards for Meritorious Performance instituted by the Government of India for the year 2006-07. POWERGRID’s 132 kV Transmission System in North-Eastern region received the Gold award while Silver awards were conferred on the 220 kV and 400 kV Transmission System in Western Region and the 400 kV D/C Kahalgaon-Patna-Ballia Transmission Line.

· Power Grip Corporation of India has obtained permission to generate power from coal and gas along with transmission. It can extract gas and generate power from it by own gas block.

Share Holding Pattern (%):
Promoters : 86.4
MFs, FIs & Banks : 1.3
FIIs : 4.0
Others : 8.4

We expect Power Grid to be the best runner in future years and a strong BUY is recommended.

BEATING INFLATION - with defensive stocks

Stocks News & Views

June 23, 2008Keeping you up-to-date BEATING INFLATION - with defensive stocks During times of crisis such as these, certain defensive stocks enjoy a bull run of their own, as money flows in from all directions to seek a safe refuge in them. Click Here To Read ---------------------------------------------- Stock Analysis - The Right Choice - INDRAPRASTHA GAS (IGL) - Click Here To Read ---------------------------------------------- e A Safe Ride Home- LIC Housing Finance. Click Here To Read Market crash: A quick guide for young investors For the Indian stock markets are caught in a whirlwind and you might need a straw to hold on to something. Some words of wisdom, some nuggets that may help you to relax, howsoever often you may have heard them before. Click Here To Read Complete Article -------------------------------------------- BUYING IS MORE IMPORTANT THAN SELLING !! Click Here To Read Complete Article 'A' group stocks falling prey to Inflation, hit 52-wk low Click Here To Read Complete Article Feel free to forward this newsletter to all of your investment savvy friends Enhancing Life.. Quotes from Most Ancient Indian Management Guru Click Here to Read Complete Article Think Before Speaking !! Relevant Links Stock News In Media Info - Valuable stocks Property Plus Click Here To Read Previous Newsletters Read Articles About Trading Techniques & Fundamentals Something Light !! Hilarious Jokes!!

http://stocks-information.blogspot.com

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http://biznessnews.blogspot.com

Sasken Communications:Buy recommendation

Stock : Sasken Communications
CMP : Rs 141.8
Risk : Low Risk High Gain Stock
Stop Loss : Rs 136
Sasken Communications has a board approval to buy up to 9.45 per cent stake in the company, or shares worth up to Rs 40 crore, at up to Rs 260 a share.
Now the Stock off its high from 172.4 and down nearly more than 15%. Now the stock looks a valuable buy at this level with a strict stop loss at Rs 136 for
Better Gains. The Target of the stock may extend anywhere between 180-200.

The Right Choice - INDRAPRASTHA GAS (IGL)
Take A Safe Ride Home- LIC Housing Finance

Technicals say that stocks has support at Rs 138 and there is a chance of formation Bullish Morning star Pattern in this counter and also more recently the
stock was up with heavy volumes. So it the Stock moves gap up in tommorow's morning little bit then dont forget to grab this stock earlier.

BEATING INFLATION - with defensive stocks
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Pioneer Embroideries Ltd - Investment view

Please Trade this stock with strict stop in this counter.
Source: marketcalls .org

Buy RIL on a big correction

Amit Dalal of Amit Nalin Securities is of the view that one should buy Reliance Industries on any big correction.

Dalal told CNBC-TV18, "In the short term we have a price risk as Udayan has pointed out we have a value at risk where the whole market is concerned and so will Reliance suffer. But if you take the fact that it is India’s largest company now, it is going to be the company, which will show you the highest delta in earnings in FY09 and FY10, with a complete visibility of earnings and if you take almost all other sectors, I could put a question mark on where we are going in terms of their earnings. That’s one stock if you want to be in the equity market and in any big correction then one should buy."

He further added, "I would buy Reliance but I am not sure about Larsen & Toubro because in terms of valuations it’s still not cheap. If Reliance comes down below Rs 2,000, like it did couple of days ago and anything below that if the foreigners are ready to sell it at those levels, then I would definitely buy Reliance. I see big positive year for Reliance in 2009-2010 in terms of earnings growth, in terms of PE ratio or valuation of course the market will only decide for us. But below Rs 2,000 I would definitely be an investor for Reliance."   

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the stock/sector.

Source: Moneycontrol website

Buy Aban Offshore, tgt Rs 5330: Emkay

Emkay report has maintained buy rating on Aban Offshore with taret price of Rs 5330, in its June 23, 20087 report. "With 35% of its revenues expected to be derived from deepwater segment in FY2009 we believe that Aban offshore is likely to be beneficiary of this uptrend in day rates for deepwater assets.

Also Aban has one deepwater semisubmersible rig, Bulford Dolphin, currently under refurbishment to get contracted. We expect this rig to fetch very handsome day rate. We believe that offshore oilfield service’s industry fundamentals remain compelling and Aban is the best play to drive the strong demand for offshore rigs and continued uptrend in day rates.

Aban is currently trading at 8.4X its FY2009 earnings and 5.9X its FY2010 earnings. We maintain our Buy recommendation on the stock with a revised price target of Rs 5330. Our price target is based on 10X Aban’s FY2010 EPS of Rs 533" according to Emkay report. 

Source: Moneycontrol website

The Right Choice - INDRAPRASTHA GAS (IGL)

A very low beta, high dividend yield and stability in its growth outlook make Indraprastha Gas an ideal investment choice in these uncertain times

INDRAPRASTHA GAS (IGL) is a Delhi-based city gas distributor promoted by GAIL, Bharat Petroleum (BPCL) and the government of Delhi together holding 50% stake. The company distributes compressed natural gas (CNG) and piped natural gas (PNG) in Delhi and nearby region. With high inflation and slowing global economic growth, the company is expected to grow steadily over the next few years, thanks to its mature business model, strong cash flows, healthy returns on capital and assured supply of natural gas.

BUSINESS:
Under the administered pricing mechanism, IGL gets a total allocation of 2 million metric standard cubic meters a day (mmscmd) of natural gas from GAIL, which is nearly 25% more than the company’s current gas sales.
The company derives over 90% of its revenue through the sale of CNG for automobiles, while the rest comes from PNG. During FY08, CNG sales volume increased by 12.3% to 3,862 lakh kg and PNG sales volumes increased by 17.2% to 43 million standard cubic meters (mscm) over FY07. On an overall basis the sales volumes grew 12.6% to 549 mscm during FY08.
With a number of new commercial and retail customers shifting to piped natural gas, the company has witnessed a strong cumulative annual growth of 39% over the past six years in this segment. In comparison, the sales in the CNG segment have grown at a slower rate of 25%.

GROWTH FACTORS:
After witnessing fast growth in initial years after its incorporation, the company is expected to see a steady growth in the years to come. CNG and PNG being highly cost efficient options to petrol and LPG, consumer acceptance for these
alternative fuels is growing fast. Also, expansion in adjoining regions will provide the company access to other lucrative markets. For this, the company will invest around Rs 250 crore annually over the next couple of years.
Commissioning of the Petroleum and Natural Gas Regulatory Board (PNGRB) earlier this year and its recommendations afterwards had created doubts about IGL’s future profitability. However, the marketing margins charged by the company remain out of regulatory control and hence the company is not required to change its tariff rates. This ensures the sustenance of IGL’s profit growth in future.

FINANCIALS:
IGL came out with a marginally improved performance for the
quarter ended March ’08. It earned a net profit of Rs 48.2 crore on net sales of Rs 187.4 crore. Sales were 14% higher yearon-year (y-o-y), while the net profit was up 20%. For the whole year, the company posted 26.5% growth in net profit to Rs 174.5 crore while its sales grew 15% to Rs 706 crore.
IGL has reported consistent growth in operating profit margin over the past few years. It closed FY08 with an operating margin of 42.5% against 41.2% in the previous year. However, the last quarter of FY08 witnessed a slight erosion in margin to 41.8% from 43.3% in the corresponding period in the previous year.
The company holds a healthy track record of dividends. The rate of dividend has increased consistently over last six years to reach 40% in FY 2008. At the current market price of Rs 118, this translates in a dividend yield of 3.4%.


VALUATIONS:
The price-toearnings (P/E) multiple of Indraprastha Gas at the current market price of Rs 118.7 works out to 9.5. Its peer Gujarat Gas is trading at a P/E of 9.9. The current high inflation is expected to favour the company, which offers low-cost alternatives to highcost petroleum products. Considering the growing number of CNG vehicles in the Delhi region and the fact that high prices of LPG are forcing retail consumers to shift to PNG, we expect the company to grow at 20% per annum over the next two years. A very low beta, high dividend yield and stability in its growth outlook make it an ideal investment choice in these uncertain times.

Take A Safe Ride Home- LIC Housing Finance

Low valuation multiples and an above-average dividend yield make LIC Housing Finance an interesting bet for long-term investors

LIC HOUSING Finance is the secondlargest housing finance company in India. Most of its business comes from giving loans to individuals. The company also provides project loans to builders and developers. It is one of the oldest companies in the home loans market along with HDFC. And this shows that it has weathered ups and downs of economic cycle and has developed expertise and network necessary for the industry. It increased its share in home loans market to 7% in FY08 from more than 5% in a year earlier. This was due to an increased focus on promotional activities. The portion of floating rates loan increased last year to the extent that most of the loans are offered on a floating rate basis. This led to improvement in net interest margins (NIMs). The long-term prospects of the business are positive, as India is seeing the fastest pace of urbanisation in its recent history. More and more young people are buying houses, thanks to rising disposable incomes.

The interest rates are rising due to inflationary pressure and these are testing times for housing finance companies. The recent RBI decision to hike the repo rate by 25 bps has made bankers rethink about their lending rates. HDFC, India’s largest home loan provider, has said that it will take a decision on hiking its lending rate by end-June. If it does hike the rate, it could trigger an across-the-board increase in interest rates on home loans in the industry.
However, it is important to realise that disposable income, which creates demand for home loan credit, is not expected to be hit that badly by rising inflation. Besides, young professionals are expected to continue buying homes to save taxes, as both principal and interest payments are tax deductible. Also, the demand for home loans is less elastic as compared to other loans, which provides a cushion to companies in this business in times of rising interest rates.

FINANCIALS:
The company has been on a high growth track in the past five years, as the balance sheet was expanding at a compound annual growth rate (CAGR) of more than 20%. The performance got a boost in FY08 due to widening NIMs. The impact was visible as the net profit grew by more than 40%, while the balance sheet size expanded by only 24%. This was due to a 40-basis point improvement in net interest margin, which grew to 2.85% in FY08. The company aims to maintain NIMs, as most of the loans are on a floating rate basis and it can pass on the rise in interest to the borrowers. It also expects an approximately 25% growth in business, which will translate into an equivalent growth in the bottomline, if margins remain stable. The company has a capital adequacy ratio (CAR) of 14% vis-à-vis the minimum required 12%. This provides headroom for further expansion in the loan book.
Its return on assets (RoA) was at 1.8% in FY08. This is on the lower side as compared to HDFC’s RoA of 2.4%. However, HDFC’s stock trades at more than five times its book value, while LIC Housing Finance’s stock trades at just 1.3 times its book value, which shows that the stock market has more than factored in the gap in the operational performance of the two mortgage players.

VALUATIONS:
The stock trades at a price to book value multiple of 1.3. Like LIC Housing Finance, the stocks of smaller players in the housing finance sector like Dewan Housing Finance and GIC Housing Finance also trade at low multiples. However, LIC Housing Finance is larger in scale as compared to these companies and has a better reach, which provides it better avenues of growth. The stock trades at P/E of 6.4, which seems too low considering the 25% expected growth rate in earnings in FY09. The dividend yield at current prices is 3.6%, which makes the stock an interesting bet for even conservative investors.

Source: ETIG (economic times)

Bull's Eye - NESTLE, GAIL, ONGC, AUROBINDO PHARMA, PUNJ LLYOD, PARSVNATH DEVELOPERS

PARSVNATH DEVELOPERS
RESEARCH: MORGAN STANLEY
RATING: UNDERWEIGHT
CMP: 152
MORGANStanley has downgraded Parsvnath Developers (PDL) to ‘underweight’ by reducing the price target to Rs173, a 50% discount to FY09 NAV estimate (at par to NAV earlier). PDL’s stretched balance sheet coupled with capital requirements for land payment/construction, early stages of execution for SEZ portfolio, and tough property market conditions will impede stock price performance in the near- to mid-term. Morgan Stanley has argued for a 50% discount to account for the stretched balance sheet and tough credit/physical property market conditions, which together will likely limit NAV growth. As of December ’07, PDL had Rs1,300 crore pending land payment (70% of December ’07 equity) to be paid over next 2-3 years; plus, upfront construction cost for commercial projects such as SEZs and DMRC malls. Morgan Stanley see value in PDL’s SEZ portfolio, township portfolio, DMRC/Chandigarh/Rohini malls, and Noida group housing projects.

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PUNJ LLYOD
RESEARCH: CITIGROUP
RATING: BUY
CMP: 242
PUNJ Lloyd’s business prospects remain good with an order backlog of Rs 19,600 crore (~2.5x FY08E sales) and continued order inflow momentum evident in the Rs 649 crore order win from IndianOil . Besides Rs 305 crore from SABIC, an amount totalling Rs 54.1 crore from other parties is also under dispute. However, the remaining Rs 276 crore can significantly reduce FY09E/FY10E profits and EPS estimates if written off. Punj Lloyd has had a history of contractual disagreements with clients, case in point being: 1) IOCL–PIL; 2) GAIL; 3) Petronet; and 4) Spie Capag Petrofac. Though the nature of business is such that scope/design changes need to be treated prudently in the accounts. The cut from Rs 493 earlier factors in: 1) Cut in target multiple to 18x (23x); 2) Reducing earnings estimates by 2-3% and 3) Cut subsidiary value to Rs 21 (Rs 38). Punj Llyod has maintained its ‘buy’ rating given 1) stock has fallen 55+% from its peak; and 2) potential upside of 30+% to new target price. Recent sharp correction has largely factored in the Rs 305 crore SABIC order-related auditor qualification. However, it is imperative that outstanding amounts are settled and management follows conservative accounting: 1) writing off disputed amounts outstanding for a long time; and 2) writing them back when it gets settled.

AUROBINDO PHARMA
RESEARCH: HSBC
RATING: OVERWEIGHT
CMP: 308
HSBC has decided to terminate equity coverage of Aurobindo Pharma as a result of reallocation of resources towards different Indian pharmaceutical stocks. Aurobindo was established in 1986 and is one of the largest active pharmaceutical ingredients (API, or bulk drugs) manufacturers in India. Its products include antiinfectives, gastroenterologicals, anti-retrovirals, and products for the cardiovascular and central nervous systems. Final rating and target price HSBC has given final target price of Rs 902 to Aurobindo Pharma. This is based on a three-stage DCF-based valuation which consists of three years of explicit forecasts, 10 years of semi-explicit forecasts and a 25-year fade period. The final rating on Aurobindo Pharma stock is ‘overweight.’ Key risks include USFDA strictures for noncompliance of manufacturing protocols, and any large acquisition, which can necessitate equity dilution for funding the acquisition.

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ONGC
RESEARCH: ABN AMRO
RATING: BUY
CMP: 867
Given the lack of transparency in government policy, ABN Amro has raised ONGC discount rate to 13%, thereby maintaining the target price at Rs 1,400. Despite an apparently positive package on upstream subsidies in FY09, ONGC shares continue to underperform the market as investors choose to take the worst-case view. The Indian government (GoI) has pegged upstream subsidies at Rs 45,000 crore in FY09, assuming gross under-recoveries are Rs 2,03,400 crore. The GoI has not clarified what happens if under-recovery turns out to be higher or lower than Rs 2,03,400 crore. The market appears to be assuming the worst, i.e., if the oil price is higher, the entire additional burden will have to be borne by upstream, but if it is lower, the subsidy would remain at Rs 45,000 crore. Given the GoI has declared an apparently positive subsidy package for upstream (contrary to market expectations), we see no logic for assuming the worst case scenario. ABN Amro has raised thier Brent forecasts by $10-25/bbl over FY09-11. In FY09, the upstream subsidy is assumed at the GoI figure of Rs 45,000 crore, despite a lower oil price assumption ($110/bbl), resulting in net oil realisation of $65/bbl. In subsequent years the subsidy is estimated at one-third of gross under-recovery. The price hike in diesel/gasoline has raised the effective price paid by consumers by nearly $20/bbl, which should have positive long-term implications for upstream subsidies.

GAIL
RESEARCH: INDIA INFOLINE
RATING : BUY
CMP: 380
INDIAInfoline has recommend a ‘buy’ on GAIL with a target price of Rs 483. The Petroleum & Natural Gas Regulatory Board is expected to announce tariff notifications for natural gas transmission business, much in line with notification for city gas distribution (CGD) projects. Return on net assets (RoNA) is likely to be capped at 14%. With tariffs for GAIL’s existing pipeline already in line with stipulated RoNA, not much downside to tariffs on these pipelines is expected. For new projects, the 10-year tax holiday will enable the companies to earn actual RoNA higher than 14%. GAIL, with plans of setting up pipelines with capacity of 136 mmscmd, will be a prime beneficiary of the new regulations. India is a gas-starved nation with demand of 180 mmscmd and supply of 85 mmscmd. The scenario will improve with the commencement of production from Reliance Industries’ KG-D6 field (peak production of 80 mmscmd). Further, import of LNG will increase as Petronet LNG raises its capacity at Dahej and commences operations at Kochi. With increasing supplies, GAIL’s core operations of natural gas transmission will witness robust growth over the foreseeable future. GAIL has stakes in more than 30 E&P blocks and three coal bed methane blocks. Any announcement of hydrocarbon discoveries will only add value to GAIL. The only concern is a margin decline on account of petrochemical business and subsidy burden. The stock is attractively valued at FY10E P/E (adjusted for value of listed investments) of 8.1x.

NESTLE
RESEARCH: INDIABULLS SECURITIES
RATING: BUY
CMP: 1,670
NESTLE India posted another good set of numbers for the first quarter of CY08. Net sales in Q1’08 surged 26.4% to Rs 1,090 crore, primarily on the back of a strong growth in domestic sales, which grew 29.2% yoy. Domestic sales witnessed growth across all product groups and collectively crossed the Rs 1,000 crore mark. EBITDA rose 38.2% yoy to Rs 250 crore and EBITDA margin increased 195 bps yoy to 22.8%. This appreciation in the margin was attributable to a judicious price increase, economies of scale, and an improved sales channel mix. All these factors offset the impact of rising raw material prices and energy costs. Net profit soared 54.8% yoy to Rs. 1.6 bn while margin jumped 276 bps on the back of the tax holiday benefits applicable on the Pantnagar factory operations. Nestle possesses a strong pricing power as the Company has achieved consistent growth despite the increase in raw material prices. With increasing disposable incomes in the hands of the middle class, Nestle is well-equipped to tap the opportunities in the FMCG sector, given its operational efficiencies, effective marketing strategies, and innovative product launches.

BEATING INFLATION - with defensive stocks

During times of crisis such as these, certain defensive stocks enjoy a bull run of their own, as money flows in from all directions to seek a safe refuge in them.

TROUBLE IS a strange creature — it never comes alone. Just ask any Indian investor who is currently stuck in the market and he will bear this out. With most of us having got used to an extended period of stupendous economic growth, the ongoing crisis seems to have caught virtually everyone on the wrong foot. Not only are equity investors sulking because their portfolios are melting away like an ice-candy on a hot summer afternoon, but even the risk-averse investors who trust bank deposits over everything else are feeling cheated, as double-digit inflation is eating into the real value of their savings. In fact, at current levels, the real return from a bank deposit is actually negative, given that the rate of inflation now stands higher than the deposit rate. Even the one asset, which seemed to be inflationproof — real estate — is now starting to show signs of softening. And if the performance of real estate stocks were anything to go by, then one will have to say that the worst for real estate prices is yet to come.
So, in a market such as this, the question that everyone is asking is that does one invest with an eye on the long term or just wait for the proverbial bottom to be reached? We believe that this might be an excellent time to enter the market, especially for those who have a longterm outlook. While double-digit inflation is hammering the equity market, ironically the truth is that it has made stocks a compelling investment choice by ruling out fixed-income instruments. Moreover, during times of crisis such as these, certain defensive stocks enjoy a bull run of their own, as money flows in from all directions to seek a safe refuge in them. These stocks, generally, have a strong cash flow, dividend payouts that match earnings growth, low debt or inelastic demand for the products or services that these companies make. More often than not, these companies are dominant forces in their industries to such an extent that they can become price makers and thereby insulate their bottomlines from the vagaries of inflation. They need not necessarily possess all of the above, but very often they will meet more than a couple of the above-mentioned criteria. Given our belief that in even the worst of markets, there is always hope we at Investor’s Guide decided to search for some compelling ideas that long-term investors can enter at the current levels and probably accumulate further if the market continued to slide.

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In order to pick this rather select band of stocks, we looked at the financial performance of leading companies across sectors during the last economic downturn, which began in 1997. It was pretty similar to the current downturn in that, it too was preceded by a high inflationary period. At its peak inflation, which peaked in 1998, soared to around 13%. This was followed by a period of stagnation in corporate earnings. And this was clearly reflected in the trajectory of the Sensex, which stayed flat during this period. In fact, if not for the traction provided by IT stocks such as Infosys, Wipro and Satyam during the dot-com run, the Sensex would have done even worse. Sans the IT pack, it was a bad period for old economy companies. Companies ranging from sectors as diverse as capital goods, cement, steel, construction, automobiles and hospitality among others, all witnessed slow topline growth coupled with declining or stagnant profitability. However, if we exclude the big names of old economy, leading companies in quite a few sectors displayed strong earning and dividends growth during this period. In many cases, the market recognised this and there was a corresponding rise in the market cap of these companies. Even when the market failed to reward the growth of these leaders, they were more than made up by generous dividend payouts by these companies. Nonetheless, shareholders gained. Most of these slowdown busters are still around and we expect them to outshine the broader market once again. Especially, given the fact that this may not be a full-blown slowdown as we witnessed during that period, the recovery may take place much soon.

For The Bravehearts
WHILE our list of storm shelters include the usual suspects from typically defensive sectors such as fast moving consumer goods and pharma, it also includes companies from capital-intensive sectors such as power and oil & gas utilities.
While it’s obvious for assetlight and cash-rich FMCG and pharma manufacturers to make it to our list, the latter are there because their financial fortune is, to a great extent, dependent on government regulations rather than market forces.
For instance, the price at which NTPC sells its power to consumers is determined by the Central Electricity Authority and not by the forces of demand/supply.
What’s more, the fact that the tariff is determined in such a manner that NTPC is virtually guaranteed a minimum 14% return on capital employed (RoCE) regardless of what the state of the economy or the inflation numbers are.
The same is the case with companies such as Tata Power, GAIL and IGL, where pricing power remains intact even in periods such as these. That said, we have decided to steer clear from large energy utility companies which are in a high investment phase and where the benefits of the same will kick in only a couple of years down the line.

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Other group of stocks in our list includes agri-commodity producers such as sugar and paper makers. While the former’s fortunes are linked to the sugar cycle, the latter is a staple product with inelastic demand.
In fact, in recent times paper is one industry where realisations have shown a massive up-tick and demand outstrips supply by far.
And this mismatch is likely to continue for at least a couple of years before any fresh capacity comes into play.

All in all, we believe that these stocks make sense for those of you whose sole aim while investing in equity is not a quick appreciation in capital. For in the long run, both with the kind of dividend payouts that you will receive and the long-term appreciation these stock may just give you better returns than any other avenue.

Source: ETIG (Economic times)

'A' group stocks falling prey to Inflation, hit 52-wk low

Markets continue to trade in deep red as all sectoral indices are trading negative. Markets started drifting down after inflation data was announced for the week ended June 7 at 11.05%, which is at 13-year high. It was more than experts’ expectations, they were forecasting around 9.5-10%. The highest inflation numbers were 11.11%, which was in May 1995.

 

The broader indices Sensex and Nifty have made new 2008 lows. The BSE realty index has underperformed the other sectoral indices; it was down over 4%. Heavy selling pressure is also seen in metal, oil & gas, bank, FMCG, auto, power and capital goods.

 

In this free fall lots of ‘A’ group stocks like Andhra Bank, Bajaj Holdings, BEML, BPCL, Dish TV India, DLF, GMR Infra, Parsvnath, Reliance Power, Siemens,Sobha Developer and UltraTechCement have touched their 52-week low.

 

Reliance Industries has hit 2008 low and trading at 6 month low at Rs 2101.

 

 

List of 'A' Group stocks that have touched their 52-week low during the day.

 

 

Company Name	Group	Today’s High	Today’s Low	Last Price
Andhra Bank	A	67.85	64.30	64.30
Ansal Propertie	A	100.30	92.20	93.50
Bajaj Holdings	A	499.95	479.00	483.00
BEML	A	955.00	915.10	919.95
BPCL	A	274.80	256.10	262.00
Dish TV India	A	41.00	37.85	38.10
DLF	A	484.00	456.00	456.50
GMR Infra	A	109.10	101.00	102.30
Parsvnath	A	164.65	151.70	153.00
Phoenix Mills	A	249.00	230.00	231.00
Reliance Power	A	183.50	174.10	175.10
Siemens	A	482.80	451.00	453.00
Sobha Developer	A	397.00	361.95	362.50
UltraTechCement	A	636.00	594.00	599.75