Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Market continues to decline
The Indian stock market continued to witness a decline for the third straight
week, with the Sensex and the Nifty losing 1.6% of their value each. However,
the market ended the week on a positive note, with strong gains on the last
day of trade. Food inflation abated a bit during the week, falling to 13.1%
compared to 17.1% in the earlier week. IIP numbers for December 2010
came in at a weak 1.6%, mainly because of a high base effect. BSE mid-cap
and small-cap indices significantly underperformed compared to large-cap
indices during the week, falling 3.8% and 6.3%, respectively. On the sectoral
front, the BSE Metal index was the biggest loser, losing 5.6% of its value
during the week; followed by the BSE Realty index, which was down by
4.5%. BSE Bankex ended the week flat.
Metals stocks witness correction
The BSE Metal index fell by 5.6% during the week on the back of a broad
decline in overall markets and lower-than-expected profitability for
3QFY2011. Furthermore, sentiment for steel stocks was dampened, as
Arcelor Mittal reported EPS of US $(0.51) compared to consensus
estimate of US $0.18 for 4QCY2010. Tata Steel fell by 6.3%,
as the market started expecting poor results from its European operations.
On February 8, 2011, the Ministry of Environment & Forest granted forest
clearance for leases of Chiria mines to SAIL, which has iron ore deposits of
~1.8bn tonnes. As a result, the stock rose by over 3% on February 9, 2011.
Among the non-ferrous pack, Sterlite (down 4.7%), Hindalco (down 10.9%),
Hindustan Zinc (down 3.0%) and Nalco (down 6.5%) continued to slide on
the back of poor market sentiment. Tata Steel, SAIL, JSW Steel and Sterlite
remain our top picks.
Inside This Weekly
Mahindra & Mahindra (M&M) - 3QFY2011Result Update: M&M reported
strong results, which were in line with our expectations. The performance
was led by top-line growth owing to a robust jump in volumes, increased
average net realisation and marginal improvement in margins. We broadly
maintain our earnings estimates. Owing to the recent correction in the
stock price, we recommend Buy with an SOTP Target Price of `794.
Aurobindo Pharma (APL) - 3QFY2011 Result Update: For 3QFY2011, APL
posted higher-than-expected results. The only disappointment was on the
operating margin front. Top-line growth was mainly led by
above-expectation growth in the formulations segment. Net profit (adj. for
extraordinary items and forex gains) grew by 10% yoy. We have revised our
estimates upwards and recommend Buy on the stock, with a revised
Target Price of `1,415.
MOIL - 3QFY2011 Result Update: MOIL reported 1.9% yoy growth in net
sales to `253cr, mainly due to higher revenue from the mining segment.
Net profit grew by 2.9% yoy to `125cr . We recommend Accumulate on the
stock with a Target Price of `426.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Market continues to decline
The Indian stock market continued to witness a decline for the third straight
week, with the Sensex and the Nifty losing 1.6% of their value each. However,
the market ended the week on a positive note, with strong gains on the last
day of trade. Food inflation abated a bit during the week, falling to 13.1%
compared to 17.1% in the earlier week. IIP numbers for December 2010
came in at a weak 1.6%, mainly because of a high base effect. BSE mid-cap
and small-cap indices significantly underperformed compared to large-cap
indices during the week, falling 3.8% and 6.3%, respectively. On the sectoral
front, the BSE Metal index was the biggest loser, losing 5.6% of its value
during the week; followed by the BSE Realty index, which was down by
4.5%. BSE Bankex ended the week flat.
Metals stocks witness correction
The BSE Metal index fell by 5.6% during the week on the back of a broad
decline in overall markets and lower-than-expected profitability for
3QFY2011. Furthermore, sentiment for steel stocks was dampened, as
Arcelor Mittal reported EPS of US $(0.51) compared to consensus
estimate of US $0.18 for 4QCY2010. Tata Steel fell by 6.3%,
as the market started expecting poor results from its European operations.
On February 8, 2011, the Ministry of Environment & Forest granted forest
clearance for leases of Chiria mines to SAIL, which has iron ore deposits of
~1.8bn tonnes. As a result, the stock rose by over 3% on February 9, 2011.
Among the non-ferrous pack, Sterlite (down 4.7%), Hindalco (down 10.9%),
Hindustan Zinc (down 3.0%) and Nalco (down 6.5%) continued to slide on
the back of poor market sentiment. Tata Steel, SAIL, JSW Steel and Sterlite
remain our top picks.
Inside This Weekly
Mahindra & Mahindra (M&M) - 3QFY2011Result Update: M&M reported
strong results, which were in line with our expectations. The performance
was led by top-line growth owing to a robust jump in volumes, increased
average net realisation and marginal improvement in margins. We broadly
maintain our earnings estimates. Owing to the recent correction in the
stock price, we recommend Buy with an SOTP Target Price of `794.
Aurobindo Pharma (APL) - 3QFY2011 Result Update: For 3QFY2011, APL
posted higher-than-expected results. The only disappointment was on the
operating margin front. Top-line growth was mainly led by
above-expectation growth in the formulations segment. Net profit (adj. for
extraordinary items and forex gains) grew by 10% yoy. We have revised our
estimates upwards and recommend Buy on the stock, with a revised
Target Price of `1,415.
MOIL - 3QFY2011 Result Update: MOIL reported 1.9% yoy growth in net
sales to `253cr, mainly due to higher revenue from the mining segment.
Net profit grew by 2.9% yoy to `125cr . We recommend Accumulate on the
stock with a Target Price of `426.
No comments:
Post a Comment