Moneycontrol
Feb 07, 2014 01:34 PM IST | Source: CNBC-TV18

Nifty to be in 5900-6300 range; like Aurobindo: Amisha Vora

Stock specific, Amisha Vora thinks Aurobindo Pharma could appreciate about 25-30 percent. The house has a target price of Rs 625-650.

Amisha Vora, joint MD, Prabhudas Lilladher is of the view that Nifty for the short-term could remain rangebound between 5900-6300 and the correction could bottom out around 5850-5900 levels.

She thinks the Exchange Traded Funds (ETFs) or the global investors pulling out of emerging markets were not only due to taper announcements but also because of recent events taking place in Turkey, Argentina etc. The market seems to gradually adjusting to tapering, says Vora in an interview to CNBC-TV18.

Stock specific, she thinks Aurobindo Pharma could appreciate about 25-30 percent. The house has a target price of Rs 625-650.

With regards to NTPC the house is becoming slightly optimistic now because a lot of pessimism has already been built into the stock.

Below is the interview of Amisha Vora, Joint MD of Prabhudas Lilladher with Ekta Batra and Anuj Singhal on CNBC-TV18.

Anuj: Do you think the worst is over for the market, that really is the first question or you think it is still going to be all about looking at how the DOW is doing, how the emerging markets (EMs) are doing and then taking a call every morning?

A: I think the EMs pull out of money by Exchange Traded Funds (ETFs) or the global investor which happened also was triggered not only by tapering but also by some of the few events which happened say in Argentina, Turkey or whatever. So as far as tapering is concerned market has gradually adjusted to it.

However, this trend of emerging market money being pulled out in such a rigorous way will not be continuous. So, there is possibility of  some more volatility but nothing much to worry about and may be closer to 5850-5900, the correction should get over somewhere around here and we should remain in that range of 5800-6300 for a while.

Q: Your view on Aurobindo Pharma’s numbers?

A: The numbers are excellent but good portion of that, compromises  from the new drug which they launched in US this quarter. So, this USD 20-25 million kind could be a one time profit, which cannot sustain. Although some portion of the profits may also come into the next quarter but may not to the extent it came in Q3. So this is in terms of the quarterly profits, a very good base but one should remain cautious that this may or may not be sustainable.

Coming back to the broader numbers and the direction that the stock has, I feel even in one quarter the stock has more than doubled from Rs 250-260 levels last quarter results to almost Rs 500-525. So the speed has been just too good.

However from a one year perspective we still have a target of somewhere close to Rs 625-650. So what I am trying to say here is that the speed of appreciation has been just too fast. From here on I feel a stage of little consolidation will continue and over a medium to long-term I feel the appreciation of 25-30 percent per annum is still possible.

Q: Today we have the Supreme Court hearing on discoms versus NTPC National Thermal Power Corporation (NTPC), in that context how would you trade it?

A: Particularly in NTPC the current rate at which it is going closer to Rs 125-130, we think that a lot of pessimism or pressure has been built-in. I would not be exactly updated in terms of the Supreme Court angle into it but at these rates we are becoming slightly optimistic on NTPC.

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