JMCPROJECT SL 217 TGT 275
JMCPROJECT SL 217 TGT 275
BUY ENGINEERS INDIA SL 228 TGT 365
Cairn India has started selling crude oil from its Mangala oil field in Rajasthan to private sector Reliance Industries and Essar Oil using a heated oil pipeline. (ET)
ONGC has said that its Assam asset is losing production due to ‘infinite' shut-down of Numaligarh Refinery Ltd, a subsidiary of Bharat Petroleum. (BL)
Oil regulator Petroleum and Natural Gas Regulatory Board has approved the tariff that GAIL India will charge from consumers for moving natural gas through its two main trunk pipelines. (ET)
Reliance Infratel has all but approved a merger deal that could see its tower assets combine with smaller rival GTL Infrastucture in exchange for Rs150bn in cash and a significant stake in a new entity for shareholders of its parent company. (ET)
Tata Motors is contemplating a price hike of the new Nanos in the region of Rs5,000-15,000 from August-September this year. (ET)
M&M will hold negotiations with former JV partner Renault for reforming the Logan platform and making it usable for applications other than passenger cars. (BS)
Larsen & Toubro, one of the contenders for NTPC's Rs250bn bulk tender, asserted that there was no technical irregularity in its bid. (FE)
Bank of India raised Rs10bn through bonds. (FE)
Fortis Healthcare is yet to decide on its course of action to respond to Malaysian fund Khazanah’s offer to take control of Singapore’s Parkway Holdings. (ET)
Dr Reddy’s said that the US court injunction on the launch of Allegra D24 in America will hit its revenue targets. (ET)
Cipla plans to acquire a significant minority stake in two biotech companies, one each in Goa and Shanghai, for US$65mn. (ET)
Gammon Infrastructure entered into a memorandum of agreement for acquisition of an entity, which is setting up a 250MW coal-based power plant in Western India. (FE)
Rallis India plans to spend Rs1bn over the next 12-18 months towards acquiring new equipment and the launch of various products. (BL)
Aban Offshore is close to either hiring or buying a drill ship to complete the job in Venezuela. (BL)
Strides Arcolab has received the USFDA approval for a drug taken for acute migraine attacks. (BL)
Emami is in the final stages of acquiring a manufacturing unit of an FMCG company in Egypt for ~Rs1bn. (BS)
Shriram Transport Finance Company’s new equipment finance subsidiary, Shriram Equipment Finance Company, will commence operations from September 1, 2010, with an initial capital of Rs500mn. (BS)
JK Lakshmi Cements plans to invest ~Rs1bn to set up ready mix- concrete plants in Mumbai, Gujarat and North India. (ET)
DQ Entertainment entered into an exclusive broadcasting agreement with Sun TV Network for the provision of animation content. (BL)
Falcon Tyres plans to set up Rs5.5bn greenfield project in Uttarakhand to produce tyres for two- and three-wheelers. (BL)
The government has okayed the sale of a 10% stake each in state-run Coal India and Hindustan Copper, that could raise around Rs150bn. (ET)
Trading Ideas
l Remain stock specific from current levels.
l Trading ideas which we like are Hindalco (Target Rs160), Dena Bank (Target
Rs108), SBI (Target Rs2,450) and Sesa Goa (Target Rs388). Traders maintain stop
loss accordingly.
Investment Ideas
Strategy should be to accumulate investment idea like JSW Steel.
JSW Steel: CMP @ Rs1,233
l JSW Steel reported consolidated 4QFY10 results, which were in line with our estimates.
l The company has announced acquisition of coking coal mines in US having resources
of 123mt. This is expected to make JSW 20% cpative for coal in FY12E.
l JSW has announced issuance of 17.5mn warrants at a total consideration of Rs21.2bn,
indicating a conversion price of Rs1,210/share.
l JSW has plans to increase iron ore integration from current 25% to around 70% in
next 2-3 years.
l JSW will witness significant volume growth of around 55% in FY12 with the
commissioning of 3.2mtpa capacities. Hence we expect the company to report a
growth of around 70% in EPS for FY12E to Rs145.7 from Rs84.1 in FY11E.
l We maintain BUY on the stock with target price of Rs1,521 (5.5x FY12E EV/
EBITDA).
l Remain stock specific from current levels.
l Trading ideas which we like are Hindalco (Target Rs160), Dena Bank (Target
Rs108), SBI (Target Rs2,450) and Sesa Goa (Target Rs388). Traders maintain stop
loss accordingly.
Investment Ideas
Strategy should be to accumulate investment idea like JSW Steel.
JSW Steel: CMP @ Rs1,233
l JSW Steel reported consolidated 4QFY10 results, which were in line with our estimates.
l The company has announced acquisition of coking coal mines in US having resources
of 123mt. This is expected to make JSW 20% cpative for coal in FY12E.
l JSW has announced issuance of 17.5mn warrants at a total consideration of Rs21.2bn,
indicating a conversion price of Rs1,210/share.
l JSW has plans to increase iron ore integration from current 25% to around 70% in
next 2-3 years.
l JSW will witness significant volume growth of around 55% in FY12 with the
commissioning of 3.2mtpa capacities. Hence we expect the company to report a
growth of around 70% in EPS for FY12E to Rs145.7 from Rs84.1 in FY11E.
l We maintain BUY on the stock with target price of Rs1,521 (5.5x FY12E EV/
EBITDA).
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