Tuesday, March 27, 2012

Prashanth tapse View on Gammon Infra, EIH, HDIL, Axis Bank, JP Asso, RIL Source: IRIS (26-MAR-12)

Mehta Equities View on Gammon Infra, EIH, HDIL, Axis Bank, JP Asso, RIL Source: IRIS (26-MAR-12)


In an exclusive interview with Myiris.com, Prashanth Tapse, AVP Research, Mehta Equities has provided views on 6 buzzing stocks on Monday, Mar.26, 21, 2012 which are as under:

Gammon Infra: Leading infrastructure company Gammon is in buyer`s radar on the back of new order book announcement worth Rs 11.29 billion. Report states that the company has received the letter of award from the National Highways Authority of India (NHAI) on design, build, finance, operate and transfer (DBFOT) toll basis. The project cost, as estimated by NHAI, is Rs. 9,349.3million. Technically the stock has positive trend which can take the price up to Rs 15.50 - 16.50 in medium term horizon.

Shares of the company gained Rs 1.35, or 9.96%, to trade at Rs 14.90. The total volume of shares traded was 298,263 at the BSE (1.38 p.m).

EIH: The company will consider a proposal of rights issue as well as merging of the company`s wholly owned subsidiary Island Hotel Maharaja with itself. Reacting to the news, shares of EIH is on buyer`s eye. The news was announced after market hours on March 23. Technically the stock would trade around 180-185. Hence we are positive on the stock.

Shares of the company gained Rs 2.2, or 2.59%, to trade at Rs 87.20. The total volume of shares traded was 441,171 at the BSE (1.40 p.m).

HDIL: Realty stocks are in selling pressure after newspaper reports states that government of Maharashtra is planning to increase stamp duties in the city by as much as 160 times for residential and commercial properties. This will impact the investor sentiment and could have an adverse impact on demand for residential property in Mumbai. Hence we advice investors to avoid the real estate space for time being. Technically HDIL would face more pressure with support near 83-85. Hence avoid the counter.

Shares of the company declined Rs 4.65, or 0.7%, to trade at Rs 656.00. The total volume of shares traded was 27,945 at the BSE (1.41 p.m).

Axis Bank: Banking as a whole is witnessing some selling pressure on the back of possibility of no rate cut by RBI in April session. On the basis of the current macroeconomic assessment, it is expected to keep rate unchanged. Technically, Axis Bank is looking week on daily chart with support near 1,122 if broken one can expect 1,100 levels. Hence we advice investors to sell with a target near to 1,125.

Shares of the company declined Rs 42.6, or 3.61%, to trade at Rs 1,137.70. The total volume of shares traded was 183,145 at the BSE (1.42 p.m).

Jaiprakash Associates: Infrastructure conglomerate Jaiprakash Associates is in action on the back of two contracts awarded by Mangdechhu Hydroelectric Project Authority, Bhutan for construction of the two contract packages pertaining to 720 MW Mangdechhu Hydroelectric Project located in Trongsa District Bhutan worth Rs 9,130 million. Technical as long as it hold above 76 there is a good chance of buying opportunity with an expected upside near to 85-90 in short term horizon. Hence we advice investors to accumulate in small quantities as markets are pretty volatile this week.

Shares of the company gained Rs 1.75, or 2.2%, to trade at Rs 81.30. The total volume of shares traded was 2,529,313 at the BSE (1.45 p.m).

Reliance Ind: Index mover Reliance Industries is trading weak on the back of news stating that oil ministry had earlier rejected Reliance`s price discovery mechanism, saying it was not transparent. RIL has reported said that it is likely to sell coal bed methane (CBM) at a price of at least USD 10 a unit. RIL`s discovered CBM gas price would be in double digit after eliminating ineligible bidders. RIL will produce 3.5 million metric standard cubic metres a day of methane gas from its blocks in Madhya Pradesh. Technically the stock could face some more pressure and would settle down near Rs 700. Hence we recommend investor to wait avoid the counter and look for better price after the matter gets more clarity in new proposal to the ministry.

Shares of the company declined Rs 10.4, or 1.4%, to trade at Rs 733.60. The total volume of shares traded was 480,444 at the BSE (1.46 p.m).

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


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