How do experts view today's sparkling stocks?

Published on Wed, Sep 20, 2006 at 20:15 |  Source : Moneycontrol.com

Updated at Thu, Sep 21, 2006 at 14:03  

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The markets closed with significant gains, the Sensex closed up 139 points and Nifty closed above 3500 marks for the first time since May 17. While stocks like Voltamp Transformers, which got listed today has gained 21%, auto ancillaries stock, Gabriel India flared up 14% on the news that board has approved sale of Mumbai property for Rs 85 crore.

 

Indiabulls Financial Services from finance, investments sector has risen nearly 11%, it has touched its year high at Rs 424.  From technology pack Educomp Solutions and Geometric Software Solutions has moved up 9.42% and 8.46% respectively. Educomp Solutions has touched its 52-week high and it was locked at 10% upper circuit with a pending buy orders of 12,921 shares, with no sellers available.

 

Experts analyse select 5 stocks, which have surged over 8%.

 

 

Company

Today's gain (%)

52-wk high

200 DMA

1 mth return (%)

Voltamp 

20.88

430

0

0

Gabriel India

14.35

43.40

51.93

28.47

Indiabulls 

10.95

424

241.87

53.86

Educomp Sol

9.42

626

0

34.54

Geometric Soft

8.96

134.5

101.53

22.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DMA - Daily Moving Avg.

 

 

Investment Advisor SP Tulsian, " Voltamp Transformers  is a good company. I am quite hopeful and positive on their capital goods segment. If one takes a call on the earnings, which they have reported for FY06 as well as for Q1 of FY07, the valuation looks quite reasonable at these levels and one cannot really expect the upside from these levels, maybe to the extent of 5-10% from Rs 410."

 

He further added, "The company has to show its performance, has to show the growth in the coming quarters, then only one can really take a call because other companies are also available in the secondary market. So I am just satisfied with the present price level at which it is ruling."

 

 

Rajen Shah of Angel Broking, " Gabriel India is an auto ancillary which has been doing reasonably well. The first quarter numbers also were okay. They had a prime property at Mulund, which today they have decided to finally sell off and that infuse something around 80 crore (Rs 800 million). That could actually see interest burden coming down and the profit moving up. Also the decision of hiving off the engine bearing division could infuse some sort of cash in the company. So it is a good auto ancillary and one can expect a 20% upside from this stock over the next twelve months or so."

 

 

Ashish Kapoor, CEO of Investshoppe, " Indiabulls Financial Services is looking quite expensive. If one looks at their future prospect then it is more of a real estate play now. The fact that the real estate boom is likely to continue for sometime. It is not the safest stock to buy because it is quite expensive but most of the other players in real estate are also expensive."

 

He further added, "It is more of a real estate play now because the other businesses, which are sharebroking and customer lending, the sharebroking part at least has a lot of pressure on the margins and even the customer lending although it is picking up, will take time. But real estate is what is exciting about this stock and based on that one can buy on decline if one has a risk appetite and willing to take punt on the real estate story going forward."

 

 

VVLN Shastri of Firstcall India Equity Advisor, "If you look at the revenues of Educomp Solutions , they are quite small in number. And if you look at the way this price has risen between January and September this year, a range of between Rs 185 and Rs 623, it gives a clear feeling that expecting the fact that they are going in for some fund raising, there is not much of fundamental strength for the price to sustain at Rs 610 levels at the current market price."

 

He further added, "I really don't find any value for this company's price at the current market. Rather one should use this momentum for profit booking in this counter."

 

Anil Manghnani, Modern Shares & Stock Brokers, "The longer term charts of Geometric Software Solutions are still not showing anything. But on the shorter term if it can cross a resistance zone around Rs 122-123 then it should re-test the April-May high of around Rs 134.50."

 

 

 

By Ritesh Presswala

  

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