A blood bath for Indian indices; weakness across the globe brought in pressure on the Indian indices too. Hang Seng closed down by 630 points where as Sensex ended down by 477 points. Indian indices opened on flat note and their after indices fell gradually into negative teritorry. The selling pressure eventually pushed indices to down side to end in deep red. Sensex lost almost 500 points from days high, heavy weights like REL, Bharti, NTPC and ICICI were the major hit. Selling was seen in all the sectors where as IT, Power, FMCG and Banking stocks are worst hit. Even the small and midcaps faced the selling pressure and ended in red. European indices are trading in red. But it?s the Reliance Power IPO which has drained major of the flow. The Rs 11,700 cr IPO got over whelming response and was subscribed more than 9 times on the first day itself.
Sensex closed down by 477 points at 20251.09. Weighing on the Sensex were losses in Bharti Tele (857.3,-6 percent), Rel Energy (2364.55,-4 percent), ICICI Bk (1351.4,-4 percent), NTPC (274,-4 percent) and ITC (216.2,-4 percent). Losses were restricted by gains in TISCO (851.85,+2 percent), Maruti (867.25,+1 percent), Dr Reddys (673.15,+1 percent), Tata Motors (769.25,+1 percent) and Hero Honda (705.7,+0 percent).
Texmaco reported impressive results for Q3 FY08. The top line grew by 85% to Rs 161 cr. The bottom line grew by 104% to Rs 15 cr on yoy basis. The Ebidta profit grew by 83% to Rs 23 cr and the Ebidta margins have been maintained at 14% on yoy basis. The heavy engineering grew by 91% and the steel foundry grew by 41%, the margins are improved in heavy eng compared to steel foundry. The increase in raw material cost which put pressure on steel foundry margins. The margin in heavy eng is at 10% enhanced by 200 bps and in steel foundry is at 16.5%. Valuation seems to be expensive at the current market price of Rs 1782 the stock trades at 34 times of FY08 and 19 times FY09 earnings. One can buy at dips for long term investment prospects.
Eveready, part of the BM Khaitan Group, is the market leader in the dry cell battery industry. Eveready is a focussed and well established FMCG player. Its portfolio comprises of dry cell batteries, rechargeable batteries, flashlights, packet tea and recently introduced mosquito coils. The company gets large chunk for its revenue from Battery Segment. It accounts for 75% of revenues. Industry growth was negative last year and that was the same for Eveready. The only problem it was facing was the high price of Zinc. As Zinc is trading at its low, Eveready is enjoying this play. As we had mentioned the good part is yet to come, its proving now. Do read our research note to know more.
Technically Speaking : Sensex slipped heavily in red. It made intraday high of 20,873 and days low of 20,204. Volume was a bit dull at Rs 8095crs. The breath was in favor of Declines, where Advances stood at 978 and Declines at 1880. Sensex has breached its major short term support. The trend is likely to turn weak. We have a major support near 19980, if this level is breached, sensex may go as low as 18500. resistance at 20500 and 20870.
Sensex closed down by 477 points at 20251.09. Weighing on the Sensex were losses in Bharti Tele (857.3,-6 percent), Rel Energy (2364.55,-4 percent), ICICI Bk (1351.4,-4 percent), NTPC (274,-4 percent) and ITC (216.2,-4 percent). Losses were restricted by gains in TISCO (851.85,+2 percent), Maruti (867.25,+1 percent), Dr Reddys (673.15,+1 percent), Tata Motors (769.25,+1 percent) and Hero Honda (705.7,+0 percent).
Texmaco reported impressive results for Q3 FY08. The top line grew by 85% to Rs 161 cr. The bottom line grew by 104% to Rs 15 cr on yoy basis. The Ebidta profit grew by 83% to Rs 23 cr and the Ebidta margins have been maintained at 14% on yoy basis. The heavy engineering grew by 91% and the steel foundry grew by 41%, the margins are improved in heavy eng compared to steel foundry. The increase in raw material cost which put pressure on steel foundry margins. The margin in heavy eng is at 10% enhanced by 200 bps and in steel foundry is at 16.5%. Valuation seems to be expensive at the current market price of Rs 1782 the stock trades at 34 times of FY08 and 19 times FY09 earnings. One can buy at dips for long term investment prospects.
Eveready, part of the BM Khaitan Group, is the market leader in the dry cell battery industry. Eveready is a focussed and well established FMCG player. Its portfolio comprises of dry cell batteries, rechargeable batteries, flashlights, packet tea and recently introduced mosquito coils. The company gets large chunk for its revenue from Battery Segment. It accounts for 75% of revenues. Industry growth was negative last year and that was the same for Eveready. The only problem it was facing was the high price of Zinc. As Zinc is trading at its low, Eveready is enjoying this play. As we had mentioned the good part is yet to come, its proving now. Do read our research note to know more.
Technically Speaking : Sensex slipped heavily in red. It made intraday high of 20,873 and days low of 20,204. Volume was a bit dull at Rs 8095crs. The breath was in favor of Declines, where Advances stood at 978 and Declines at 1880. Sensex has breached its major short term support. The trend is likely to turn weak. We have a major support near 19980, if this level is breached, sensex may go as low as 18500. resistance at 20500 and 20870.
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