Scrip Sell

,,~n

TO CATCHA FALLINGSTARIS A S(W)ELLIDEA OutlookMoney

BY KAYEZAD PHOTOGRAPHS,

ABHIJIT

t's Diwali.

I

year

them profits

go. Time

resolntions

and make

to make

for new things.

portfolio

to four

new-

and also to clean

space

investment

We spoke

BHATLEKAR

time to ring in the new and

let bygones

market

to recommend

stocks

in. Thts is wbat

up Your

Retail

(Pric.:

Pantaloon

book

said:

real estate.

expensive.

The

aggressive

growth.

levels and entry

risk

is higher resulting

the

entry

of

are very because

in high

Tech

Capacity

are far in excess

Thts will lead

and flight occupancy.

competitive

players.

to falling

The industry internationally

of

fares

has had in terms

(Rs 1.758.25. PIE, 175.62.

AMITABH

EPS, 10.01)

PIE:

because

is getting

of new

announced

demand.

Financial

from new

costs

Its valuations

R, 646.5. PIE: 17.9.

bnsiness

a bad track record of investor returns.

Rs 1.846.35.

will face competition

as well as higher

expensive

with the

got

(Prk.'

The airline expansions

and

77.>1. EPS: 23.86) players

Ai...ay,

EPS, 36.11)

experts

RAJEEV THAKKAR Vi",,,,, andSento'V'" p",;dent.Resea"h. Po"", ParikhPlnandolAdviso'" Se",;"" Ud Pantaloon

Jet

is no exception. you must

they

brings four

expertsto suggeststocksfor some festival cleaning

A. ADAJANIA

of debt

into new retail segments.

Financial Tech. a provider of software for stock exchanges. brokers and financial service companies. also holds a majority stake in leading commodity exchange MCX. The concern here is on stock valuation. With a market capitalisation of Rs 7.400 croce and consolidated profits of Rs 69 croce for the year ended 31 March 2006. growth potentials have been factored in. Unitech (R, 344.15.PIE, 206.29.EPS,1.67) Unitech is currently trading at its 52week high price. and its market capitaUsatlonisRs22.475 croce. Whatever the valuatlon of the land bank. time taken for construction to be completed and sales and profits to be realised could be a long one and the current market price makes the stock a very high-risk investment Indiabul"

Financial 5e,.;ce,

(R, 403.95.

is getting

diversificatlons. ~

especially model

[48] OUT

into many

The stock

is a cyclical one and decline if the markets

j

L0 0 KM 0 N EY

3 1

the

depends

case

ASS

broking

on trading

the volume

of F&O and margin

trading.

0 CT 0 BER

2 0 0 6

booking

due to high

ly, it is quoting ing basis. 20 times

profit

valuations.

27 times

one year

on a two-year

Electronics

on trail-

forward.

forward

(R, 534.15.

here.

Current-

at PIE of 39 times

and

basis.

PIE, 16.54.

EPS, 32.30)

Asian Electronics. one of the leading Energy Service Companies (FSCO). is set to donble its revennes and profits in the coming year. Its share price has more than doubled since the low in Jnne 2006. However.

the recent

plan

to raise equity

order

to fund

have

a dilutive

ESCO projects impact

in our

estimates.

With

no major

positive

triggers

anticipat-

booking

is expected

in to

profits.

unrelated business

earning may see a were to fall. This is when

at 36 per cent in two

We recommend

primartly

A,ian

Client Group.

(R, 2.934.65. PIE, 45.93. EPS, 63.89)

ABB is ltlrely to grow years.

ed. we recommend

PIE, 88.14. EPS: 4.58) Indiabulls

CHAKRABORTY

Head.Resea..m & Private Bri"Securitl"

business by way

Ash.k

Leyland (Rs 46.2. PIE, 18.22.

EPS, 2.54)

Ashok Leyland is trading at 13 times FYOS earnings. We believe the valuations are stretched at the current levels. especially in light of an annonncement

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regarding its intent to raise $150 million through a mix of equity/debt/convertible bonds- The stock price has appreciated 50 per cent since june. We recommend booking profit as our target price is Rs 38.

success model and hordes of foreign brands giving it a competition, the company's growth could get affected. It's prudent to book out before signs of slowdown appear on the horizon,

Mawana Sugars CR,78.85. PIE. 9.97, EPS.7.91) Mawana Sugar has a high capital base and capital expenditure plan could lead to higher interest costs. Also. any equity Issue would prove to be dilutive. The management's crushing target for 200607 seems aggressive. Our target price Is Rs 72 and we recommend booking profit In the shares.

Great Eastern Shipping CR,305.60, PIE. 6.75, EPS. 45.27) Assumtog demerger and unlocking of value, the sum of parts In an optimistic scenario works out In the range of Rs 240 to Rs 280. There are other value stocks in shipping as well as offshore. so book profits at a premium.

Jy.t;

Structures

CR. 114.45. PIE. 26.72.

EPS.4_28) We recommend booking profits in jyoti Structures' shares and shilt to KEC International

Instead.

generates jyoti's

about

KEC Is bel1er placed Rs 1 billion

appreciation

AMBAREESH VJ"-P',,ident,

would

per

as it

annum.

be 7.2 per cent.

Hotel Leel. (R. 64.90, PIE. 16.32,EPS. 3.98) Though things are upbeat In the hotel industry, Hotel Leela's story is not optimistic, Its main properties and income are Bangalore, Goa and Mumba!. Bangalore tariffs are already high and seem to have reached a saturation level.

BALIGA

Karoy

Stock

Hero H.nda CR,751.2,PIE 14.93, EPS. 50.31) There are clear signs of a slowdown here. Bajaj has turned out to be a fonnidable competitor. TVS, too, is back on track. With increased competition one can only expect lower margins and a smaller pie for Hero Honda,

Bmking

Limited

Titan CR,780.85, PIE 47.69,EPS. 16.37) With other players emulating Titan's I

Further,

I

enues

additional

would

not

properties

happen

for the

and revnext

30

to 36 months. The story of tariff hike can't sustain the stock at higher levels for the next two years. Real Estate Plays This is one sector that has seen a lot of momentum in the last couple of months. In contrast to construction plays, this sector's valuations are based on "land banks". Though land is a physical asset, its valuations vary with perceptions. We don't suggest an outright sell, but we recommend Investors to be cautions.

"Chappell

wants Ganguly to replace

YO" wo"'dn't be'ie.e thi,. wo"'d yO"' Then, why wo"'d yO" go by "o,k m,"" romo"'" 8efoce yO" pi'" '" oedoc with yo", bcok", ,heck the ,omp,ny', ,cedooti,I,. Th, b," ,o",m of iofo,m.tioo ,ce ,,,h.ng' .nd comp'"y w,b,it... ."doc d".b".., b"ice" m'g"ice,.

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HARENDRA KUMAR H,,~ """noh, ICICIm,«"'am IDBI Bank CR,83.30, PIE. 10.00, EPS. 8.33) The stock has had a fantastic run and investors can stllliook to hook profits. The bank is In the Integration phase with the erstwhile IDBf Bank, and now United Western Bank, which may take some time. It is also trying to cut down Its cost of deposits. The market has priced these In and the stock is likely to move sideways now. Syndicat.

Bank

(R. 88.45, PIE. 8.33,

EPS. 10.61) The stock has exceeded our price target and we believe that Rs 105-110 levels are good

to book

profits,

HTPC CR, 130.20, PIE. 17.70,EPS. 7.35) The power sector is in the midst of a capital expenditure boom with all three major players-Reliance Energy, Tata Power and NTFG--announcing expansions, But, as these are long gestation projects. It will take some time for cash flows to come in, After rallying over 30 per cent in the last three to four months, investors can book profits around Rs 145-150 levels. II

Dravid as Indian test captain,"

Wh,e then, ;, the be" w'y to ce"t to , romo",' Well, don't ..."" to it" ,II! BSEh" i",tall,d a toll.r~, liceroc"""00 Call160022 6663to pmyide eoy iora~atieo aba", eoy ",healthy mack" pm"i" 80mb,y

'took

Exch,"g'

ltd. www.b"iodi,-,om

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