SENSEX NIFTY
Dec 02, 2012, 01.24 PM IST | Source: Moneycontrol.com

KYI: Handpicked stocks to make best of market rally

Moneycontrol.com got Astha Jain. Research Analyst, Hem Securities to answer the stock queries readers sent us on our Facebook page as part of KYI (Know Your Investment). Check out his comments.

The Sensex closed at 19339.90 up 168.99 points or 0.88% and the Nifty ended at 5876.20 up 51.20 points or 0.88%. It has also been a very good week for other segments of the market like the Bank Nifty which was up six percent. The midcap and the small-cap indices have also done quite well- rising 4.5 percent for the week- which was quite impressive for both the Sensex and Nifty.

Moneycontrol.com got Astha Jain. Research Analyst, Hem Securities to answer the stock queries readers sent us on our Facebook page as part of KYI (Know Your Investment). Check out his comments.

Also Read:

Approach mkt cautiously; bullish on energy: JRG Sec
Positive Rahul Mohindar sees Nifty touching 6050

Selva Ganapathy: What are the chances of Vijaya Bank going up from hereon?

A: Fundamentally, the bank has reported a fall of 39.38% in its net profit at Rs 123.37 crore for the quarter as compared to Rs 203.53 crore for the same quarter in the previous year. Also. gross non-performing assets (NPAs) of the bank has increased to 3.17% for the quarter as against 2.54% in the previous quarter. Net non-performing assets (NPAs) of the bank were at 1.90%, higher than 1.42% in the previous quarter. However Technically, Bank has shown uptrend and may rise to, level of 65.Therefore on the basis of technical analysis Vijaya Bank has chances to touch the level of 65.

Syed Hayat Bukhari: What is your three-month target for IDFC ?

A:Three month target for  IDFC is Rs 195.

Srikanth Venna: Can I buy Unitech with a short-term perspective? The stock is up 20% in the last few trading sessions; any fundemental or technical reason?

A: Execution ramp up by the debt burdened real estate player, Unitech has helped company's stock to gain over 30% in the last one month. The company is seeing sustained increase in prices and expects the demand to remain stable for the next two-three quarters. To ramp up the execution, the company has increased the number of workers at its project site to 20,000 from 10,000 at the bottom. The company expects to increase this number to 25,000 by March 2013. Also another reason for the recent rally in the stock is price improvement. The average price per square feet increased by 5% year on year in the second quarter. In short term Unitech can yield 10% return from current level, hence one can buy stock for same.

Kishore Tirumala: What is your long-term view/target for 3i Infotech ?

A: In 3i Infotech, the sales is pegged at Rs 950.10 million for the September 2012 quarter. The mentioned figure indicates a decline of about -41.74% as against Rs 1630.70 millions during the year-ago period. Net Profit for the quarter ended September 2012 zoomed to 113.37% from Rs 256.60 millions to Rs. 547.50 millions. Operating profit for the quarter ended September 2012 decreased to Rs 502.20 millions as compared to Rs 786.10 millions of corresponding quarter ended September 2011. Also stock is trading at all time lows therefore one should refrain from buying at current level.

Avnish Mehra: What is your call on Shree Renuka and KPIT Cummins ?

A: Fundamentally Shree Renuka has posted total revenue for the quarter ended September 2012 of  Rs 11544.00 millions.The total profit for the quarter ended September 2012 of Rs 77.00 millions grew from Rs (-)573.00 which is driven by other income. Hence fundamentally the company has shown weak performance .However technically, stock can rise to the level of Rs 35.Therefore, one can buy stock for short term with stop loss of Rs 28. KPIT Cummins can be bought at current level at stop loss of Rs 115 and target of Rs 142.

Dattaram Pani: What is future of Tribhovandas Zaveri (TBZ)?

A: The stock has witnessed huge upward rally in last 3-4 months.However at given fundamentals of company ,buying in this stock is fully risky hence either one should avoid this counter at present level or trade in this counter with strict stop loss of Rs 240.

CA Samkit Shah: What about NHPC ? I am holding 25,000 shares at issue price since its IPO. I can even hold long-term position okay. Please suggest.

A: One should hold NHPC for target of Rs 30-32 for 3-6 months time horizon.

Biswajit Lenka: What’s the future of SKS Microfinance ?

A: Fundamentally, SKS Microfinance has reported a loss of Rs 262.16 crore for the quarter ended September 30, 2012 as compared to a net loss of Rs 384.54 crore for the same quarter in the previous year. Total income from operation has decreased by 36.33% at Rs 77.57 crore for quarter under review as compared to Rs 121.83 crore for the quarter ended September 30, 2011. Technically,SKS Microfinance has shown upward rally, hence if one want to buy the stock then it is advised to keep strict stop loss of Rs 127 and target of Rs 215.

Rahul Kumar Sharma: What's about SBI ? I bought shares at Rs 2,290. Also, what’s your view on Uttam Galva Steel ? I bought it at Rs 70. Are there chances of any correction in near future?

A: One should hold SBI for target of Rs 2360-2470 for time horizon of 3-6 months. On consolidated basis, the bank has reported 31.84% rise in its net profit at Rs 4575.31 crore for the quarter as compared to Rs 3470.43 crore for the same quarter in the previous year. Total income of the bank has increased by 21.03% at Rs 49917.47 crore for quarter under review as compared to Rs 41244.65 crore for the quarter ended September 30, 2011. In Uttam Galva, company's September 2012 quarter revenue stood at Rs 14390.60 million, up 11.42% as compared to Rs 12916.10 million during the corresponding quarter last year.A big decline of -37.41% was reported for the quarter ended September 2012 to Rs 111.60 million from Rs 178.30 million of corresponding previous quarter. Technically, stock may fall down to level of Rs 55-51 hence one should hold stock with stop loss of Rs 50-47 on downside.

Asit Shah: What is your view on Deccan Chronical ? Should I buy?

A: Technically stock is trading at its all time low and fundamentally stock has yet to post its Q1 & Q2 FY’13 financials .Hence one should refrain from buying this stock at current level.

Nikhil Gupta: Your view on Apollo Tyres ; would be helpful given that rubber prices are coming down?

A: One shoud buy Apllo Tyres at current level as company on consolidated basis, has posted 95.73% jump in its net profit at Rs 152.20 crore for the quarter ended September 30, 2012 as compared to Rs 77.76 crore for the same quarter in the previous year.  Total income of the company has increased by 17.75% at Rs 3388.79 crore for quarter under review as compared to Rs 2877.96 crore for the quarter ended September 30, 2011.

Also, company is planning to invest USD 1 billion in the next five years to expand its global footprint. The company has decided to set up two new plants in South East Asia and Eastern Europe and to increase the production capacity of its factory in the Netherlands to 7.5 million units a year from the current 6 million units per annum. Apollo Tyres, like its peers, has done better than in the last several quarters because rubber prices have been easing. They have corrected 6% from the March quarter and by around 16% from a year ago. The industry believes prices are likely to remain stable .

Bilal Ahmad: What about Tata Motors and ICICI Bank for next 3 months?

A: One should buy Tata Motors for target of Rs 320 & ICICI Bank for target of Rs 1250 for next 3 months.

ADS BY GOOGLE

video of the day

All portents good; optimistic for next few Diwali's: Damani

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.