Garware Wallropes Face Value - Rs 10 Buy Rs 52
Ticker: 509557 H/L: Rs 30/62
A leading manufacturer of synthetic cordages besides
being one of the most preferred brands across the
world, Garwara-Wall Ropes is trading quite cheaply at
8x its FY05 earnings. It reported a top line growth
of 12 per cent in revenue for Q1FY06 to Rs 60 crore
while earnings grew by 13 per cent to Rs 2.11 crore
The company has healthy reserves to the tune of Rs
106 crore while its current market capitalization
stands at Rs 104 crore and FY05 sales at Rs 228 crore
It is a consistent dividend paying company with a
dividend yield of around 5 per cent. Further, it is on
an expansion spree and we feel it would be report
healthy earnings growth for next few years
Cummins India Face Value - Rs 2 Buy Rs 153
Ticker: 500480 H/L: Rs 105/163
A leading manufacturer of heavy-duty diesel engines,
it has reported a top line growth of 17 per cent to Rs
328 crore in Q1FY06 as compared to Rs 282 crore in
Q1FY05 while earnings grew by 22 per cent to Rs 35
crore from Rs 29 crore
A consistent dividend paying company with strong
reserves to the tune of Rs 660 crore as per FY05
balance sheet besides having heavy presence of FIIs
and Mutual Funds
Moreover, the company is mulling to expands its
manufacturing facilities at its Pune plant, which
would be involved in assembling low horse power
engines and generators sets for domestic as well as
exports markets. The total outlay is expected to be
around Rs 15 crore
Plastiblends India Face Value - Rs 10
Buy Rs 138
Ticker: 523648 H/L: Rs 154/75
l A market leader in biodegradable masterbatches, UV
stabilizers etc has reported a top line growth of
almost 7 per cent to Rs 20 crore in Q1FY05 as compared
to Rs 18.84 crore in Q1FY04. However, the rising input
cost took a toll on its earnings, which was almost
flat at Rs 2.68 crore
l A consistent dividend paying company, with pretty
low debt to equity ratio and a healthy book value
worth more than 6 times its current face value of Rs
10
l The company has a strong client base of more than
2,300, which include big names of polymer
manufacturers such as Reliance, IPCL, Gail and polymer
processors such as Supreme Industries, Cosmo Films,
Garware Polysters
Geraves Cotton Face Value - Rs 10 Buy Rs
229
Ticker: 501455 H/L: Rs 74/245
l A well diversified engineering company, it has
reported top line growth of 6 per cent in Q1FY06 to Rs
186 crore as against Rs 176 crore in Q1FY05. While its
earnings reported an earnings growth of 186 per cent
to Rs 27 crore. Although this exponential growth
includes an extra-ordinary item to the tune of Rs 16
crore as it sold its undertaking of Oilfield &
Drilling division
l Reliance AMC as well its PMS has recently acquired
some shares through secondary markets after which its
shareholding stands at 5 per cent of its share capital
l After divesting its Industrial Products segment in
June 2004 and its Oilfield and Drilling Business
recently, it has now become more focused towards
engine and infrastructure equipment. We feel after
restructuring, company has a buoyant outlook and hence
it can entail decent returns if held on a long-term
basis
Technicals
Correction short-lived
The Sensex is in midst of a fantastic bull
(intermediate and long term uptrend remains intact)
run and still shows no signs of easing off. It again
posted a fresh all time high and also closed at a
fresh all time high while the anticipated correction
has turned out to be rather short-lived. Outlook
remains positive while a further upside cannot be
ruled out but sanctity of 8260 level needs to be
maintained if the ongoing positives are to continue.
Trend (Index) - Up Last Index Closing : 8606.03
Support : 8600, 8500 Resistance : 8700, 8800
55 WEEK EMA : 6807.88 100 WEEK EMA : 6154.26
MACD : BUY MODE RMI : BUY MODE
ROC : BUY MODE RSI : BUY MODE
STOCHASTIC : SELL MODE
Sahara Housing Buy Rs 70.70
Sahara Housing Finance Corporation bottomed out by
posting an intra-week low of Rs 5.25 during week ended
11th June 2003 and these levels have not been seen
since. The scrip entered an intermediate uptrend,
overcame 55 Week EMA and rallied to peak at an
intra-week high of Rs 38.25 during week ended 16th
January 2004 only to give a downward key reversal.
Sahara Housing Finance Corporation entered a
corrective phase, breached the 55 Week EMA on the
downside, declined to post an intra-week low of Rs
11.05 during week ended 4th June 2004 and staged a
recovery almost immediately in the next week. The
scrip overcame 55 Week EMA, entered an intermediate
uptrend, posted a series of progressively higher tops
and bottoms, stared moving within confines of an
upward sloping channel, gave a throwover and peaked at
an intra-week high of Rs 97.90 during week ended 11th
March 2005 but couldn't sustain these levels for long.
Sahara Housing Finance Corporation gave a downward key
reversal, entered a corrective phase, started moving
within the confines of a downward sloping channel and
bottomed out by posting an intra-week low of Rs 50.25
during the week ended 24th June 2005. Currently, the
scrip is above the 55 Week EMA, has given an upward
breakout from the aforesaid channel and with the
mechanical indicators supporting the move, a further
upside cannot be ruled out.
Trading Pointers
Indicators : MACD-Buy RMI-Buy Stochastic-Sell
ROC-Buy RSI-Buy
Support : 065.00, 051.00 Resistance : 074.00, 093.00
Targets : 1st Target : 089 2nd Target : 098
BSE Code : 511533
Stoploss : 63.00 (cls) 55 Week EMA : 52.12
HMT Buy Rs 87.5
HMT peaked at an intra-week high of Rs 31.45 during
week ended 9th January 2004, couldn't sustain these
levels for long, entered a corrective phase, breached
Trendline 2 on the downside, breached the 55 Week EMA
on the downside and bottomed out by posting an
intra-week low of Rs 13.65 during the week ended 21st
May 2004 only to give an upward key reversal. The
scrip moved sideways for next 16 weeks under pressure
from 55 Week EMA before it finally gave an upward
breakout from here, entered an intermediate uptrend,
peaked at an intra-week high of Rs 52.70 during week
ended 25h November 2004 where resistance came in the
form of Trendline 3 (supply line & outer boundary of
the upward sloping channel - refer to chart). HMT
entered a protracted corrective phase with constant
supply coming in the form of Trendline 6, posted an
intra-week low of Rs. 30.60 during the week ended 1st
April 2005, gave an upward key reversal, took support
on the 55 Week EMA and Trendline 1, gave an upward
breakout by closing above Trendline 6 and ultimately
rallied to peak at an intra-week high of Rs 96.85
during the week ended 22nd July 2005. Currently, the
mechanical indicators are in a positive frame of mind,
the scrip is on the verge of giving an upward breakout
from a consolidation phase while a weekly close above
Trendline 5 (horizontal supply line - refer to chart)
would confirm the bullish outlook.
Trading Pointers
Indicators : MACD-Buy RMI-Buy Stochastic-Buy
ROC-Sell RSI-Buy
Support : 088, 074 Resistance : 097, 116
Targets : 1st Target : 116 2nd Target :
124 BSE Code : 500191
Stoploss : 85.00 (cls) 55 Week EMA : 50.96
Street Talk
Beware
There seems to have been some sort of manipulation in
counters such as SBI Home Finance (BSE Code: 500379)
as well as IFSL (BSE Code: 531998) and hence it would
be advisable to exit both these counter as soon as
possible.
Soft valuations
An IT analyst feels Mastek (BSE Code: 523704)
currently trading at Rs 493 is a good buy for next one
year, as low
valuations would generate interest among investing
community.
Senior kindly post your views on above stocks for SHORT,MID,LOND term prospect. EXpectingyour views.
NOTE: Cross Check b4 investing or selling your stocks.
From,
Arvind.K