Market Updates 31 May11
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Market Outlook »
Nifty is likely to test a level of 5225.
Technically, the domestic markets have made a temporary bottom at the
5329 levels as it is not only a swing support but coincides with a
bullish trendline threshold on the weekly charts. For intraday
momentum players, theNifty spot must remain above the weekly high of
5485 level to make a continuous higher highs and lows.In case of
declines, the Nifty is likely to test a level of 5225 as long as the
bears keep the Nifty below the 5375 levels.
Technical Calls »
Buy Aban Offshore 560.90 target 575
Buy Bajaj Finserv 488.00 target 500
Buy Coal India 388.25 target 400
More
Momentum Calls »
Buy V Guard 204.00 target 215
Buy J. K. Cement 114.10 target 125
Buy Indian Cement 84.00 target 90
More
Investment »
Axis Bank
Axis Bank has registered buoyant loan growth on a balanced portfolio
skewed towards corporate advances than retail. Retail advances
contributed 20% to the total loan portfolio. Thus, it has better scope
for aggressively expanding across segments where it has a low
presence.It is also spreading across geographies and targeting
presence in more than 75% of India`s districts in the next five years.
The bank`s
Investment »
Jyoti Structures
For 4QFY2011, Jyoti Structures reported 32% yoy top-line growth to
`722cr, which was higher by 2.3% from our expectation of `703cr. For
FY2011, revenue grew by 18% yoy to `2,380cr (`2,016cr). EBITDA margin
for the quarter came in at 11.6%, which was higher by 80bp from our
estimates of 10.8%. Higher sales volume coupled with lower raw-
material costs aided margin improvement, resulting into EBITDA growing
by 18%
Stock Watch
Orbit Corporation
Orbit`s consolidated revenue for Q4FY2011 fell by 21% year on year
(YoY) due to a) a reversal of Rs 430 million of revenue booked in
Villa Orb Annex for M9FY2011 as it failed to cross the revenue
recognition threshold limit of 25%, b) slower execution of projects
due to commercial and regulatory issues and c) poor sales volume.
However, on account of lower cost ofconstruction and other
expenditure, margins expanded to 77.9% from 47.6% in Q4FY2010.. At the
currentmarket price, the stock trades at 6.3x FY2012 estimated
earnings
Stock of the Week
Arvind Ltd
Arvind is engaged in the manufacture of textiles and branded segments.
Operates in three segments, textiles which inlcude yarn,fabric and
branded garments and others which include EPABX and rural automatic
exchange systems, It services and construction business. With an
equity base of Rs 254cr supported with huge reserves of Rs 1235cr. For
FY11 it recorded net sales of Rs 2691cr with net profit of Rs 134cr.
FY11 EPS is Rs 5.64. At cmp the stock is available at a forward
multiple of just 14.
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