Sunday, September 28, 2008
Emami up as SAT doesn't restrain its Zandu offer
DALAL STREET SPIKES
September 27, 2008.
The Emami stock today surged 6.36 per cent, or Rs 17, to close at Rs 284.50 on the Bombay Stock Exchange. The Securities Appellate Tribunal (SAT) has decided not to pass any order restraining the open offer given by Emami to buy a 20 per cent stake in Zandu Pharmaceuticals.
The open offer started today. During the day, the share touched a high of Rs 317 and a low of Rs 259 on the BSE. The counter generated a volume of over 39,000 shares on BSE. The owners of Zandu had approached SAT to get the open offer cancelled.
Saturday, September 20, 2008
Analysts' pick: Hindustan Unilever
20 Sep, 2008.
Hindustan Unilever
CMP: Rs 245.15
Target Price: Rs 277
HSBC Securities has upgraded its rating on the stock to “overweight” saying crude and palm oil prices have weakened in the past few months and since these make up the bulk of material costs for HUL, cost pressures have eased. “Crude oil and palm oil have declined by around 30% in the past 3-4 months. Palm oil is the main input cost in soap manufacture, while crude affects other inputs such as packing materials and LAB (Linear Alkyl Benzene).
We believe that the correction in commodity prices will not be meaningfully reversed in the near term and will impact HUL’s bottom line positively,” a HSBC note said. The brokerage has increased the 2008 (estimated) EPS estimates by 2.9% and 2009(E) EPS by 4.4%.
According to HSBC Securities, the topline growth may slow for the company. “We estimate the topline growth next year will slow to 11.8%, from 18% estimated this year, as volume growth (due to macro-economic slowdown) and price growth (due to heavy price increases taken this year) both moderate from current levels,” the HSBC note said.
However, cooling commodity prices will result in margin expansion, and bottomline growth expected next year at 18.5% will be higher than this year’s 17.1%, the note added.
20 Sep, 2008.
Hindustan Unilever
CMP: Rs 245.15
Target Price: Rs 277
HSBC Securities has upgraded its rating on the stock to “overweight” saying crude and palm oil prices have weakened in the past few months and since these make up the bulk of material costs for HUL, cost pressures have eased. “Crude oil and palm oil have declined by around 30% in the past 3-4 months. Palm oil is the main input cost in soap manufacture, while crude affects other inputs such as packing materials and LAB (Linear Alkyl Benzene).
We believe that the correction in commodity prices will not be meaningfully reversed in the near term and will impact HUL’s bottom line positively,” a HSBC note said. The brokerage has increased the 2008 (estimated) EPS estimates by 2.9% and 2009(E) EPS by 4.4%.
According to HSBC Securities, the topline growth may slow for the company. “We estimate the topline growth next year will slow to 11.8%, from 18% estimated this year, as volume growth (due to macro-economic slowdown) and price growth (due to heavy price increases taken this year) both moderate from current levels,” the HSBC note said.
However, cooling commodity prices will result in margin expansion, and bottomline growth expected next year at 18.5% will be higher than this year’s 17.1%, the note added.
IT stocks could be preferred investors' choice: analysts
20, Sep, 2008.
MUMBAI: IT stocks could be the preferred investors' choice due to rupee depreciation and hopes of improvement in global market sentiment after the intervention of the US Federal Reserve for rescuing insurance giant AIG, according to market analysts.
The persistent global financial turmoil is likely to ease following prompt efforts by the US government. And coupled with rupee’s weakness against the greenback, this can be seen as a positive trigger for IT stocks as the sector's revenue visibility is expected to improve, HDFC Securities, Head Retail Research, Deepak Jasani said.
“The US financial crisis may be coming to end temporarily and sales orders would be visible for the IT companies in the near future,” he said.
A weaker rupee would also help the sector earn more margins on their future orders, Jasani added.
Echoing similar sentiments, an analyst with a leading broking house said this is the right time to enter the market and IT sector could be one of the better options as yields are more or less based on company profile in the current scenario.
However, SBI Capital Securities’ Head of Research, Anil Advani, said, "Market is yet to come out of the adverse global financial crisis but the companies having less exposure can be a better option for the investors."
Most of the IT stocks, on Wednesday, surged during the day on fresh buying, despite a down trend in the market, after a sharp fall in rupee and reports of softening credit crisis. Early buying also emerged in the tech counters on hopes that a weaker rupee would help the sector regain some of the lost sheen.
IT sectoral index on BSE was one of the least affected indices that ended with a marginal negative gap. However, it moved up over 2 per cent in the afternoon and most of the IT stocks traded with a comfortable positive gap for most of the time during the session.
Wipro was the top gainer ending up 2.04 per cent at Rs 399.75. Infosys Technologies ended up 0.75 per cent at Rs 1576.00, after moving up 3.6 per cent at Rs 1,612.10. However, Satyam Computer Services closed 1.91 per cent down and TCS down by 2.77 per cent.
Continuous depreciation of rupee, to nearly 47.00 level on Tuesday, has raised hopes of improvement in IT stocks, which were hit badly in the last couple of years when the Indian unit kept on appreciating, according to market analysts.
The partially convertible Indian currency fell to 46.98 against the dollar--its weakest level since July 24, 2006, on increasing demand from banks earning arbitrage between domestic and offshore markets amidst fluctuating sentiments in the stock market.
Sustained high demand from oil companies and the banks indulged in non-deliverable forward contracts resulted in a sharp depreciation of rupee against the greenback this year due persisting global financial crisis but has raised hopes for companies much dependent on rupee movement, marketmen observed.
20, Sep, 2008.
MUMBAI: IT stocks could be the preferred investors' choice due to rupee depreciation and hopes of improvement in global market sentiment after the intervention of the US Federal Reserve for rescuing insurance giant AIG, according to market analysts.
The persistent global financial turmoil is likely to ease following prompt efforts by the US government. And coupled with rupee’s weakness against the greenback, this can be seen as a positive trigger for IT stocks as the sector's revenue visibility is expected to improve, HDFC Securities, Head Retail Research, Deepak Jasani said.
“The US financial crisis may be coming to end temporarily and sales orders would be visible for the IT companies in the near future,” he said.
A weaker rupee would also help the sector earn more margins on their future orders, Jasani added.
Echoing similar sentiments, an analyst with a leading broking house said this is the right time to enter the market and IT sector could be one of the better options as yields are more or less based on company profile in the current scenario.
However, SBI Capital Securities’ Head of Research, Anil Advani, said, "Market is yet to come out of the adverse global financial crisis but the companies having less exposure can be a better option for the investors."
Most of the IT stocks, on Wednesday, surged during the day on fresh buying, despite a down trend in the market, after a sharp fall in rupee and reports of softening credit crisis. Early buying also emerged in the tech counters on hopes that a weaker rupee would help the sector regain some of the lost sheen.
IT sectoral index on BSE was one of the least affected indices that ended with a marginal negative gap. However, it moved up over 2 per cent in the afternoon and most of the IT stocks traded with a comfortable positive gap for most of the time during the session.
Wipro was the top gainer ending up 2.04 per cent at Rs 399.75. Infosys Technologies ended up 0.75 per cent at Rs 1576.00, after moving up 3.6 per cent at Rs 1,612.10. However, Satyam Computer Services closed 1.91 per cent down and TCS down by 2.77 per cent.
Continuous depreciation of rupee, to nearly 47.00 level on Tuesday, has raised hopes of improvement in IT stocks, which were hit badly in the last couple of years when the Indian unit kept on appreciating, according to market analysts.
The partially convertible Indian currency fell to 46.98 against the dollar--its weakest level since July 24, 2006, on increasing demand from banks earning arbitrage between domestic and offshore markets amidst fluctuating sentiments in the stock market.
Sustained high demand from oil companies and the banks indulged in non-deliverable forward contracts resulted in a sharp depreciation of rupee against the greenback this year due persisting global financial crisis but has raised hopes for companies much dependent on rupee movement, marketmen observed.
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