Monday, November 28, 2011

How to trade in Educomp, Punj Lloyd and Suzlon now? Source: IRIS (28-NOV-11)

In an interview with, Prashanth Tapse, AVP research, Mehta Equities gave views on three stocks which were buzzing on Monday, November 28. The same is as follows:

Educomp Solutions:

Education solutions provider Educomp is in action for the day mainly on the back of its new program in association with Intel to unveil Class Transformation System under its Smartclass program which includes showcasing of 3D audio visual teaching material using digital technology. Smartclass CTS, a technology-driven initiative of Educomp makes learning more stimulative and interactive using technology-aided learning process.

Technically, the stock has underperformed in last couple of week with a support near 165 levels and rebounded back. Hence, 227 would be immediate resistance which if holds good one can see 250-260 levels in a month or so. We are positive on the stock.

Shares of the company gained Rs 29.6, or 15.8%, to trade at Rs 217. The total volume of shares traded was 2,864,658 at the BSE (2.08 p.m).

Punj Lloyd:

Punj Lloyd, the engineering, procurement and construction major, has come into limelight after it has received a project worth Rs 4,690 million from ONGC in the Bombay High region off Mumbai. The scope of work for the project includes designing, engineering, procurement, fabrication, installation of 122 km of submarine pipeline and modification on existing facilities among others. The project is scheduled for commissioning in May 2013. Following this contract, Punj Lloyd now has an order backlog of Rs 271.8 billion on a consolidated basis.

Technically, the stock has given a positive signal near 46-47 levels. After a long underperformance in the counter, one can see some sort of reversal trend till 52 which currently acts as a short term target. Hence, one can trade the stock with a target of Rs 55, stoploss at Rs 48 in a month or so.

Shares of the company gained Rs 2.45, or 5.24%, to trade at Rs 49.25. The total volume of shares traded was 659,281 at the BSE (2.13 p.m).

Suzlon Energy:

Wind power major Suzlon Energy recently had very bad trading session due to difficult market conditions in Europe and the US. Keeping the global winds not supporting its growth plan, local player Coromandel Wind Energy has inked a pact worth Rs 4,700 million for setting up, operations and maintenance of a 75.6 MW wind power project of the latter company. The plant is located in Rajasthan and will be commissioned in FY 2012-13. The company is well positioned in India, which offsets slow down in other major revenue contributing countries. Suzlon has key presence in some of the weaker markets in Europe like Spain, Romania and Portugal. Europe currently accounts for roughly a third of Suzlon`s global revenue.

We are positive on the business opportunity keeping demand sustenance remains a key monitorable aspect, Technically, 22 has been a major support for the counter and with this price one can really take a long term call on the business which has huge growth potential going forward. Keeping 12 month investment horizon from now one can by far expect 25%-30% return.

Shares of the company gained Rs 1, or 4.48%, to trade at Rs 23.30. The total volume of shares traded was 4,018,092 at the BSE (2.15 p.m).

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