Myiris.com: How to trade in TCS, HCL Tech and IFCI now?

Myiris.com: How to trade in TCS, HCL Tech and IFCI now?

http://www.myiris.com/newsCentre/storyShow.php?fileR=20111018125527043&dir=2011/10/18&secID=livenews

In an interview with myiris.com, Prashanth Tapse, AVP - Research, Mehta Equities gave views on three stocks which were buzzing on Tuesday. The same is as follows:

Tata Consultancy Services (TCS):

It was disappointing quarterly earnings for TCS which took a leap cut in market price. TCS has missed investors` expectations in all terms in its July-to-September quarter because of unexpected hedging losses and higher wage costs which pulled down the earnings. The company reported a 6.1% jump in profit for the September quarter, which is below our expectations of 10% consolidated net profit to Rs 23,010 million for the second quarter ended Sept. 30, 2011.

Technically the stock has discounted the news and immediate target would be 1,024 if breaks it can test 975 levels on short term trend. Hence we are negative on the counter.

Shares of the company declined Rs 90.6, or 8.09%, to trade at Rs 1,029.20. The total volume of shares traded was 502,898 at the BSE (12.45 p.m).

HCL Technologies:

Looking at the disappointing outlook on the IT space HCL Technologies, India`s fourth largest software services firm shares fell as much as 7% despite of better than expected results. Company posted a 50% year-on-year jump in net profit to Rs 4,967 million for the first quarter ended Sept. 30, 2011. The company`s net profit stood at Rs 3,311 million in the July-September quarter of 2010. On a sequential basis, the company`s net profit dipped by 2.7% during the reporting quarter. Its net profit stood at Rs 5,105 million in Q4, FY`11. HCLT`s revenues stood at Rs 46,513 million during the reporting quarter, up 25.4% from Rs 37,081 million in Q1, FY`11.

Looking at the overall scenario we are negative on the global IT space which neutral outlook on HCL Technologies, the reaction on market is all about profit booking attempt. Technically the stock can consolidated in the range of 390-400 levels before take fresh moves.

Shares of the company declined Rs 35, or 7.98%, to trade at Rs 403.80. The total volume of shares traded was 221,862 at the BSE (12.48 p.m).

IFCI:

IFCI reported a flat result for quarter ended September 2011. Company posted second-quarter stand-alone net profit of Rs.1, 982.6 million, compared with Rs.2,023 million for the quarter ended September 30 last year, reflecting a 2% decline. On a per share basis, earnings for the quarter fell by 8% to Rs.2.18 from Rs.2.37 in the corresponding quarter of the preceding year. Quarterly net revenue increased by 21% to Rs.7431 million from the Rs.6,121.9 million in the corresponding quarter of the preceding year, while other income totaled Rs.148.1 million, compared with Rs.76.7 million in the year-ago quarter. On a consolidated basis, the company reported a net profit of Rs.3,620.7 million on income from operations of Rs.14,605.7 million and other income of Rs.272.8 million.

Technically the stock is trading week on market sentiments; we expect the counter to consolidate at the current levels in the range of 28-30, which is an opportunity for conservative investors to accumulate the stock. Short to medium term target would be 35-37.

Shares of the company declined Rs 1.05, or 3.31%, to trade at Rs 30.70. The total volume of shares traded was 1,017,160 at the BSE (12.48 p.m).

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