Stock Reports and Recommendations

Steel stocks to watch for

Jindal Steel & Power 10 Jan 2010, 1052 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History CMP: Rs 711 JSPL reported Q2 results which are 1% ahead on an operating level but 5% ahead on a net profit level against our estimates. We just marvel at the flexibility of the product mix, which allows the company to maintain steady 35% operating margins even with a 36% drop in steel realisation. We are pushing JSPL as our top pick ahead of our earlier referred Sterlite Ind due to its better visibility of resource backed growth profile making it a less riskier investment. Analyst: Macquarie Securities

Tata Steel 10 Jan 2010, 1049 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History CMP: Rs 650 Tata Steel reported Q2 consolidated results in line with our operating line estimates. Of $346m, 15% is of our full year estimate of $2.2bn. However, there is a good chance of it achieving the remaining $1.8bn as we expect volumes to improve by about 11% in H2 to 13.9mt and coking coal costs to reduce by about $100/t. Tata Steel is the best stock to play the rebound. Its Indian operations benefit from rising raw materials costs due to its integrated nature. Analyst: Macquarie Securities

Adhunik Metaliks 10 Jan 2010, 1045 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History CMP: Rs 121 ADML is an integrated special steel producer and iron ore miner. Consolidated earnings are expected to grow at a compounded annual growth rate (CAGR) of 76% over FY09-12 on account of growth in steel production and iron ore mining. However, EPS growth over the period is likely to grow at a little lower CAGR of 58% due to capital is-sue and merger of group companies. Analyst: Motilal Oswal Financial Services

More @ Steel stocks to watch for

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Analyst's Pick: SMALL CAP: ICICI Securities
10 Jan 2010, 0312 hrs IST

Though the order book of the company is very strong at Rs 2500 crore, concerns remain on profitability due to higher interest costs and unending realised forex losses.

Analyst's Pick: MID CAP: Motilal Oswal Financial Services
10 Jan 2010, 0311 hrs IST

Consolidated earnings are expected to grow at a compounded annual growth rate (CAGR) of 76% over FY09-12 on account of growth in steel production and iron ore mining.

Analyst's Pick: MID CAP: Motilal Oswal Financial Services
10 Jan 2010, 0308 hrs IST

Jai Balaji Industries (JBIL) has built capacities aggressively in the last two-three years at a capex of Rs 16 b. Earnings to quadruple over FY10-12.

Analyst's Pick: LARGE CAP: Macquarie Securities
10 Jan 2010, 0302 hrs IST

The company managed to maintain steady 35% operating margins even with a 36% drop in steel realisation. So, JSPL stands as the top pick

Analyst's Pick: LARGE CAP: Macquarie Securities
10 Jan 2010, 0301 hrs IST

Tata Steel is the best stock to play the rebound. Its Indian operations benefit from rising raw materials costs due to its integrated nature.

Analyst's Pick: SMALL CAP: ICICI Securities
10 Jan 2010, 0313 hrs IST

GPIL had reported a topline of Rs 1,092 crore in FY09 on a consolidated basis, showing a compounded annual growth rate (CAGR) of 37% since FY06.

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Mark Mobius sees a bull market correction ahead



Emerging market guru Mark Mobius, Chairman of Templeton Asset Management, said shares globally should brace for a correction though he said it would be part of the bull market run taking place.

“We are in a secular bull market and you see corrections, which can be to the tune of 15–20% but we shouldn’t be concerned that it represents a bear market,” Mobius said, urging investors to participate in it by buying more if the correction came along.

The US’ easy monetary policy and printing of dollars to boost growth — “which feeds markets around the world,” he said — is expected to continue till the year end and the beginning of the next year as unemployment in the developed world was still to come down.

“Policymakers in Washington, London and other parts of the world are still very concerned and are not going to pull the plug on liquidity anytime soon because they want to see unemployment coming down,” Mobius said. “There are different projections of whether it will be the first quarter, third quarter or last quarter. The bottom line is they are not ready to pull that plug.”

See: How global markets are faring currently

However, if a correction took place, it would affect emerging markets as they “have become integrated”, according to Mobius.

On the issue of initial public offers, Mobius said investors have to pick them on a case-to-case basis. “The IPOs last year gave about 10% average return, which is not spectacular. Individual issues did very well and some of them tanked. So we have to be very careful with these IPOs.”

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Src: Economictimes, Moneycontrol, Deadpresident Blog, Valuenotes and etc