Stocks to watch

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Tata Teleservices (Maharashtra) | TTK Prestige | Blue Bird (India) | Repro India | Infosys | Mahindra Satyam |

The markets closed in red but have recovered smartly at the end of the day as technology stocks surge on rupee depreciate. Rupee slips to 8-month low of Rs 40.96 per US dollar. The BSE IT and FMCG indices closed with good gains. However, realty, power capital goods and pharma indices witness selling pressure.

 

Sanjay Chhabria , Equity Analyst is positive on TTK Prestige, the company should give an EPS of around Rs 16 for FY08, On Blue Bird India he said that the Blue Bird brand enjoys the highest market share of 48% in the organized notebook market and that the company is expected to post net sales of Rs 480 crore and a net profit of Rs 27 crore for FY08. He is also positive on Repro India.

 

On TTK Prestige :

 

sanjaychhabria_ttkprestige_08may

 

TTK Prestige is India's leading kitchenware, kitchen appliance company, with products of entire kitchenware segment. Over the last couple of years the company transformed itself from a mere pressure cooker company to a total kitchen solutions company. The company has also transformed its distribution model by opening exclusive retail outlets known as Prestige Smart Kitchens. This way the company is well placed to capitalize on the consumption boom led by demographic nuclear families in India. The current valuations are around 9.3-times FY08 earnings and at around 7.5-times FY09 earnings. The company is also gearing upto unlock its real estate value and its real estate holding in Bangalore and foraying into realty development.

 

Coming to the long financials of the company for 9-months ended December 2007 is posted a net profit of Rs 15.75 crore and net sales of around Rs 262 crore which should give an EPS of around Rs 16 for FY08 and given a strong brand equity and aggressive retail foray and also product diversification, I have a price target of around Rs 225 for the stock.     

 

On Blue Bird  India:

 

sanjaychhabria_bluebirdindia_08may

 

Blue Bird India is a leading manufacturer of notebooks and stationeries in India. As a company the Blue Bird brand has a strong presence in Western India including the State of Maharashtra. It is also present in Southern India and expanding its presence there. According to AC Nelson, Blue Bird brand enjoys the highest market share of 48% in the organized notebook market. The company came with an IPO at Rs 105/ per share that was way back in November 2006. The company's operation is fairly large. Repro India :

 

sanjaychhabria_reproindia_08may

 

Repro India is an integrated printing service provider. The company provides printing solutions to major publishing houses like Orient Longman, Oxford University, Alligator Books and also to software companies like Lenevo, Microsoft and Wipro.

 

The company came with an IPO in November 2005 at around Rs 165/share. Talking of Repro's impressive financials for the 9-months ended December 2007, the company posted a net profit of Rs 10.26 crore.  Looking at earnings of  Rs13.5 for FY08, I have a price target of Rs 175 on the stock.      

 

 

  

 

E Mathew of Mathew Easow Fiscal Services feels that Infosys should correct down to about Rs 1650 - 1680. On Satyam, he said that the chart has been more of a gradual rise. So the danger in Satyam is less as compared to Infosys. TTML does not really inspire a lot of confidence at least according to the charts.

 

 

 ON INFOSYS & SATYAM :

 

emathew_infosys_satyam_08may

 

Though everyone is very gung-ho on IT as such, the movement in a stock like Infosys is almost like a vertical rise. So if this is to be a sustainable move, in a counter like Infosys which is incidentally viewed as the market leader as far as this sector is concerned, I think it is imperative for Infosys to correct down to about Rs 1650 to Rs 1680. That would be a healthy correction and possibly that would afford an opportunity also for those who are long term IT bulls and those who feel that the weakness in the Rupee is providing an  opportunity, that would be a very good opportunity possibly to get into a stock like Infosys.

 

IFCI and  TTML :

 

emathew_tradingstocks_08may

 

These are trading or momentum stocks. These are not really investment stocks. Take an IFCI for example. I thought the stock had formed a very good base around that Rs 43-44 zone. It has been a good move. We saw the stock trying to pierce a very tough resistance zone of around Rs 65-68 and it failed. Right now it is in a corrective mode. I think for IFCI there is critical support at around the Rs 46-48 zone. It is imperative that this does not break, because if this does break then I am afraid we could see it drift back to that region of around Rs 42-44 from where the good move started.

 

TTML is another stock, which is