GSPL
Deven Choksey: Gujarat State Petronet, GSPL is a company which is riding more on the oil and gas boom in this country. They have already laid down in 12 districts the pipeline network in Gujarat and they are expanding it to 25 districts inGujarat. The total amount of capacity would be 40mmscmd from 30mmscmd which would be carried by this company in the next 1½ - 2 years time with Rs 120-150 crore capex. It is providing a growth visibility of 40% in the next 2-3 years. From that perspective I find Gujarat State Petronet can be retained in the portfolio and for short term advantage if one wants to sell one can book profit at Rs 100 level and re-enter at lower levels."
Sudarshan Sukhani: I think GSPL continues to be in an uptrend and that means we should see higher levels as time goes by but the easy money has been made not just in this stock but in most of the stocks. I expect a modest target of Rs 115 for GSPL in the next one year or so but there is going to be volatile movement in between that all investors would have to accept. If at all something goes wrong keep a stop around Rs 70, below that we will know that we are in a big correction. "
Parsvnath Developers
Sudarshan Sukhani: The stock has shown a remarkable chart patterns suggesting that a target of Rs 240 is possible. I am not making any comments on the viability of the targets or the possibility or the workings of the company but the charts tell us that it has broken out of a large consolidation pattern and it is heading up. In case things go wrong and realty is one volatile sector keep a stop which should be around Rs 115 for Parsvnath, but there are higher targets."
IDBI Bank
Deven Choksey: IDBI Bank has seen a good performance. Last quarter the NIMs have stabilized and probably they are showing signs to going to about 2.5 NIMs in coming two quarters and after. The company is already is going to write back Rs 500 crore provision which they have made for the Dabhol project once the project get started. With the higher increase in the deposits the kind of bank would get re-rated. It is quoting at a price to book value of around 1 which would get re-rated to about 1.5 so IDBI Bank would be buy on dips and sell on rise if one wants to trade in this particular counter."
Sudarshan Sukhani: Banks are going to outperform the broad market. Now if there is a correction banks will also correct and among the banks I feel IDBI Bank is an out performer inside that sector. I would expect IDBI to cross its all time highs recorded earlier which was at Rs 180 and move higher which means I am looking at a target beyond Rs 200 for IDBI. This is not going to be easy, there will be volatile movements, corrections ups and downs but the trend is up so investors really need to buy on every dip. Just to ensure that they do not get caught keep a stop around Rs 96 and this stock goes up and I hope IDBI moves up. The stock is a buying opportunity for traders and investors and probably needs to be put in your portfolio.
Dishman Pharma
Deven Choksey: Dishman Pharma basically was driven by Abbott stake over of Solvay and as we know 150% of the turnover of Dishman comes out of Solvay. Solvay was troubled because of the cash crunch and with this particular takeover of Abbott. About 14 APIs would definitely find good amount of market due to Abbott sell which Dishman would be supplying to Solvay so from that perspective I find that Dishman Pharma is definitely sitting on a very high prospects. One negative with a larger debt component but in the next two years time it is sufficient amount of cash transaction taking place even Dishman should get addressed. Maybe time being it is quoting at 10 kind of a PE on FY10 earnings estimates. If one gets it at around a little lower 10% it would be a good buy in the portfolio.”
Sudarshan Sukhani: I like Dr Reddy and Cipla. Dr Reddy has been life time highs and Cipla is on the verge of doing so. Clearly those two stocks remain favourites. Third is Ranbaxy which is recovering from a very sharp bear market. So as far as Dishman Pharma is concerned I think there is significant resistance between Rs 280-330 and that is what the targets are for the stock. Since we are very close to targets either the investors buys on a significant correction and that will come about. Keep a stop of about Rs 190 or shift to the three stocks I have named. Dr Reddy, Cipla and Ranbaxy in any order or all three of them are worth buying on every correction.
Sterlite Industries
Deven Choksey: Sterlite Industries is a story which is now emerging very fast with the power business coming up in the next fold as 100% subsidiary. As we know that 10,000 mega watts power plant will get commissioned in 2012-2013 in a gradual manner. This year they will be having 600 mega watt in subsequently next year around 3,000 mega watt total capacity of operations so if one wants to buy and invest for three years 30% plus kind of a return can be easily expected. Over and above that I think all other metal spaces be it aluminium, copper and zinc in all the three spaces they are expected to grow at around 35-40% in the FY10-11 period. So I think we definitely recommend this stock for investment portfolio with a yearly target of around Rs 925 levels.
Sudarshan Sukhani: My charts are suggesting that most non-ferrous metals are going to face heavy weather from now on. If the market continues its rally then Sterlite won’t actually go in decline but that Rs 800-1100 zone in Sterlite is again strong resistance. The maximum targets for the stock in the next one year or one or a half years as of now appears to be Rs 1100. The investor if he wishes to take advantage of that move 300 point move from current levels is going to require a strong stoploss because things can go wrong and for Sterlite the stop loss is somewhere around Rs 720 so keep a stop and look at the metal non-ferrous sector but it is likely to be an underperformer.”
Parsvnath Developers
Deven Choksey: Parsvnath is a stock which one would have to hold on and accumulate at lower levels once again. More because out of 190 plus million sq feet of land bank that they have, they have commissioned about 80 million sq feet of land bank and that is where I think the company is likely to deliver about 30 million sq feet of land bank in the next two years time. Here the company is talking of growing at about 40-50% in the next 2 years so maybe around Rs 200 levels a short term trader can book some profit but a long term investor can wait for a higher price target in the next 2-3 years.
Sudarshan Sukhani: The stock has shown a remarkable chart patterns suggesting that a target of Rs 240 is possible. I am not making any comments on the viability of the targets or the possibility or the workings of the company but the charts tell us that it has broken out of a large consolidation pattern and it is heading up. In case things go wrong and realty is one volatile sector keep a stop which should be around Rs 115 for Parsvnath, but there are higher targets."
Mindtree
Deven Choksey: After Mindtree took over the control of Aztec, the company has two main streams in IT services and R&D services in the IT side so I think from that perspective the business model is quite good. The valuation of this company is close to around 13-14 times on a FY10 forward basis. So, from that perspective the company looks quite interestingly placed. Maybe one will have to see how much growth it is bringing in two years time but my recommendation is that those investors who are looking at this company for short term they may take an exit around Rs 750 odd levels and those are holding it for long term they may end up getting around 20% average growth in the next two years."
Sudarshan Sukhani: NIIT appears to have good chart but Mindtree itself has some very good charts which is very surprising after significant rallies Mindtree has again broke out of a consolidation pattern and it is suggesting that it is likely to go to its earlier highs between Rs 800-900. That means there is some money to be made from current prices. Keep a stop somewhere around Rs 520 because a stop loss is necessary to prevent large losses. If a sudden correction starts you do not want to hold stocks when a deep correction is going on. But beyond that Mindtree is one of the outperformers in the midcap IT space and is likely to be so in the near term."
Sesa Goa
Deven Choksey: Sesa Goa completely transformed since Vedanta Group took over, from about 10-12 million production capacity. The company is expanding and this year they should be having a kind of a production around 16-17 million tonne of iron ore and next year it would be around 25 million tonne of iron ore. They are expanding to bring it up to 50 million tonne of iron ore production in 2012-2013 so they are putting in good amount of money about Rs 6000 crore worth of capex for organic as well as inorganic growth is being planned. So, in my view I think the company is available also at a valuation which is quite attractive so from that prospective one can definitely hold on to this company. Since it is a cyclical play any down cycle should be used to accumulate this stock further and stay invested for three years."
Sudarshan Sukhani: Sesa Goa gives an impression of forming a major top. The charts suggest that the stock prices are looking tired. Ten weeks ago it was at Rs 255 now it is at Rs 267. The Nifty has done a lot in this period so my impression is that the volatile movements that we are seeing in this stock it fell down 20% then rallied almost 50% these volatile movements are signs of a large top formation. It has move up 6 times in the last 6 months. So there are trading opportunities in Sesa Goa but I would not advice any investor to enter now. For a trader look to buy, keep a stop at Rs 255 and then you could look at Rs 300 or 300 plus but that is not enough for an investor."
Oil India
Deven Choksey: Oil India is clearly a buy on dips as recommendation. The company is quoting at a discount to ONGC even though I think the size of the company is just 10% of ONGC. The next 2-3 years growth programme is quite stupendous. Rs 4500 crore worth of capex is being executed and that is going to result in to higher oil and gas supply from the Oil India side. I see a continued growth in absence of a major subsidy burden. I see a continued growth coming from Oil India in excess of 30% on the bottomline basis so from that prospective one can buy Oil India at lower levels."
Arvind
Sudarshan Sukhani: I think there is good news on the charts for Arvind. First the worst seems to be over and that saying a lot because Arvind had seen highs of Rs 150 earlier and fell down to Rs 15 but those bad days are probably finished for the stock. We can see a target of Rs 55-60 that means there is a lot of headroom even currently at current prices. There is a stop which is roughly around Rs 30. The stop is wide because the stock has rallied a lot an the stock needs time to catch up. But in either case whether you are in investor or a trader you might like to look at the stock, a buy on dips and you could expect a very significant gain over the next one year."
Bharti Airtel
Sudarshan Sukhani: Bharti was in a very narrow zone for four months so the upside targets are also limited. We are looking at a value of somewhere around Rs 500 at which point we would say okay Bharti has met its targets. But that is about all for Bharti. Beyond that it will move with the broad market."
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