Myiris.com: How to trade in PFC, TVS Motor, Suzlon now? Source: IRIS (01-AUG-11)
In an interview with myiris.com, Prashanth Tapse, AVP Research at Mehta Equities gave technical views for three buzzing stocks on Monday. The same is as follows:
Power Finance Corporation
(PFC): PFC counter was in action after the minister of power has taken measures to bring down the losses of power distribution utilities. The proposal includes conversion of company`s loan into equity to pump in more capital and to bring down distribution losses. The state governments would consider converting loans due from them to the distribution utilities as state government equity to ensure capital infusion and improvement in net worth of utility. We believe PFC is only a long term betting counter considering the tremendous opportunities in the power space. On overall basis 175 act as a support for near term and 200 as a breakout level, hence we advice investor to accumulate the stock in the range of 180-190.
Shares of the company gained Rs 4.7, or 2.55%, to trade at Rs 188.85. The total volume of shares traded was 204,043 at the BSE (2.23 p.m).
TVS Motor: TVS was in action in last couple of days mainly on the back of better than expected results. Topline grew by 14% to 1,89,962 units in July 2011, compared to the same period last year. Demand was constant across all segments-motorcycles, scooters, three-wheelers and exports. Net sales for the company rose to Rs 17.07 billion from Rs 13.7 billion. Net profit surged 45.65% to Rs. 588 million in June quarter on the back of higher demand for two wheelers and price increase which offset surging commodity prices. We expect Industry to remain under pressure for another 2-3 quarters if interest rate remains the same and hence we are neutral on the counter and we see lots of finer stocks are available in same space like Bajaj Auto. Any run-up in the stock should be used as exit option in the counter. Short term target would be around 55-58.
Shares of the company gained Rs 4.1, or 8.31%, to trade at Rs 53.45. The total volume of shares traded was 1,353,861 at the BSE (2.26 p.m).
Suzlon Energy: India`s biggest maker of wind turbines Suzlon was most active counter for the day on the back of robust number for the first quarter ended June 30, 2011. Net profit of Rs 600 million in Q1FY12 compared with net loss of Rs 9,120 million for the corresponding quarter of previous fiscal. The company has reported a net sales of Rs 43,800 million (Rs 24,040 million) on y-o-y. Turnaround results for the first quarter ended June 30, 2011 on back of healthy sales growth in past two years. We expect wind industry continues to grow with strong momentum in emerging markets and the offshore segment. Recent policy developments on energy security and safety concerns, such as the planned phase out of nuclear of Germany and carbon pricing being introduced in Australia, have placed an increased emphasis on renewable energy, particularly wind, translating to a positive outlook even in developed markets over the mid-to-long term. Overall results we are positive on the industry and result are quite good as compared with the street expectations. Technically 60 would be the immediate target for Short-term with stoploss around 50.
Shares of the company gained Rs 1.6, or 3.05%, to trade at Rs 54.00. The total volume of shares traded was 4,874,300 at the BSE (2.26 p.m).
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