Sharekhan Investor's Eye dated July 03, 2006

0 views
Skip to first unread message

Sunil

unread,
Jul 3, 2006, 10:24:35 PM7/3/06
to dps...@googlegroups.com, EquityRese...@googlegroups.com
 
Investor's Eye
[July 03, 2006] Please see the attachment for details
Summary of Contents

PULSE TRACK

  • Monsoon forecast lowered by one percentage point

  • Current account balance improves for Q4FY2006


STOCK UPDATE

ICI India
Cluster: Ugly Duckling 
Recommendation: Buy 
Price target: Rs420
Current market price: Rs297

Annual report review
We have reduced our earnings estimates for ICI India for FY2007 and FY2008 by 17% each to take into account the divestment of the surfactant business. Adjusted for the divested business, we expect ICI's earnings to grow at a compounded annual growth rate of 43% over FY2006-08E. We expect the company to have cash and cash equivalents of Rs182.5 per share at the end of FY2008E. We reiterate our Buy recommendation on the stock with the price target of Rs420.


SECTOR UPDATE

Automobile

Strong growth continues
The growth across the two-wheeler as well as the four-wheeler segments in June was strong and impressive. The exports from the sector are also picking up. The tractor segment has turned out an impressive performance for the month.

The two-wheeler manufacturers as well as the our-wheeler manufacturers are looking at increasing the prices due to the increase in the prices of the raw materials and the increase in the freight costs. The expected price increase would be in the range of 3-5%.

Regards,
The Sharekhan Research Team
myac...@sharekhan.com  

FREE FirstStep Seminar! Book your seat TODAY!
To buy and sell shares, log on to www.sharekhan.com or call our DialnTrade unit on 1-800 227050/ 30307600.
For account related queries call our Customer Service cell on 1-800-22-7500/ 39707500.

Investor's Eye-July03.pdf
Reply all
Reply to author
Forward
0 new messages