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TO CATCHA FALLING STARIS A S(W)ELLIDEA
OutlookMoney
brings four
BY KAYEZAD PHOTOGRAPHS, A. ADAJANIA ABHIJIT BHATLEKAR

expertsto suggeststocksfor some festival cleaning
Jet

t's Diwali. let bygones year

time to ring in the new and go. Time space to make newup Your got book and also to clean for new things. experts said: and

Ai...ay,

(Prk.' bnsiness

R, 646.5. PIE: 17.9. is getting players. competitive Capacity of fares

EPS, 36.11) The airline with the the expansions demand. entry of new

I
them profits

resolntions

and make investment

portfolio market stocks they

is no exception. you must

announced

are far in excess to falling The industry

We spoke

to four

Thts will lead

to recommend in. Thts is wbat

and flight occupancy. a bad track record of investor returns. Financial Tech

has had in terms

internationally

RAJEEV THAKKAR Vi",,,,, andSento'V'" p",;dent. esea"h. R Po"", ParikhPlnandolAdviso'" Se",;"" Ud
Pantaloon Pantaloon players expensive expensive. aggressive Retail (Pric.: Rs 1.846.35.

(Rs 1.758.25. PIE, 175.62.

EPS, 10.01)

AMITABH

CHAKRABORTY
Client Group.

PIE:

77.>1. EPS: 23.86) will face competition costs real estate. The risk growth. Its valuations is higher resulting from new because because in high of of debt are very as well as higher

Financial Tech. a provider of software for stock exchanges. brokers and financial service companies. also holds a majority stake in leading commodity exchange MCX. The concern here is on stock valuation. With a market capitalisation of Rs 7.400 croce and consolidated profits of Rs 69 croce for the year ended 31 March 2006. growth potentials have been factored in. Unitech (R, 344.15.PIE, 206.29.EPS,1.67) Unitech is currently trading at its 52week high price. and its market capitaUsatlonisRs22.475 croce. Whatever the valuatlon of the land bank. time taken for construction to be completed and sales and profits to be realised could be a long one and the current market price makes the stock a very high-risk investment Indiabul"
Indiabulls diversificatlons.

Head. esea..m Private R & Bri"Securitl"
ASS years.

(R, 2.934.65. PIE, 45.93. EPS, 63.89) at 36 per cent in two booking valuations. one year forward profit here. Currenton trailand We recommend due to high 27 times

ABB is ltlrely to grow primartly ing basis. 20 times A,ian

ly, it is quoting

at PIE of 39 times

levels and entry

into new retail segments.

forward. basis.

on a two-year

Electronics

(R, 534.15.

PIE, 16.54.

EPS, 32.30)

Asian Electronics. one of the leading Energy Service Companies (FSCO). is set to donble its revennes and profits in the coming year. Its share price has more than doubled since the low in Jnne 2006.
However. order have With the recent plan to raise equity is expected estimates. anticipatin our triggers in to to fund a dilutive no major ESCO projects impact positive

Financial 5e,.;ce,
is getting

(R, 403.95.
unrelated business

PIE, 88.14. EPS: 4.58) into many broking The stock

ed. we recommend Ash.k

booking

profits.

Leyland (Rs 46.2. PIE, 18.22.

~

j

is a cyclical one and decline if the markets especially model the case

earning may see a were to fall. This is when the volume business by way

EPS, 2.54)

depends

on trading trading.

of F&O and margin

Ashok Leyland is trading at 13 times FYOS earnings. We believe the valuations are stretched at the current levels. especially in light of an annonncement

[48] OUT

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regarding its intent to raise $150 million through a mix of equity/debt/convertible bonds- The stock price has appreciated 50 per cent since june. We recommend booking profit as our target price is Rs 38. Mawana Sugars CR,78.85. PIE. 9.97, EPS.7.91) Mawana Sugar has a high capital base and capital expenditure plan could lead to higher interest costs. Also. any equity Issue would prove to be dilutive. The management's crushing target for 200607 seems aggressive. Our target price Is Rs 72 and we recommend booking profit In the shares.
Jy.t; Structures CR. 114.45. PIE. 26.72.

success model and hordes of foreign brands giving it a competition, the company's growth could get affected. It's prudent to book out before signs of slowdown appear on the horizon, Great Eastern Shipping CR,305.60, PIE. 6.75, EPS. 45.27) Assumtog demerger and unlocking of value, the sum of parts In an optimistic scenario works out In the range of Rs 240 to Rs 280. There are other value stocks in shipping as well as offshore. so book profits at a premium. Hero H.nda CR,751.2,PIE 14.93, EPS. 50.31) There are clear signs of a slowdown here. Bajaj has turned out to be a fonnidable competitor. TVS, too, is back on track. With increased competition one can only expect lower margins and a smaller pie for Hero Honda, Hotel Leel. (R. 64.90, PIE. 16.32,EPS. 3.98) Though things are upbeat In the hotel industry, Hotel Leela's story is not optimistic, Its main properties and income are Bangalore, Goa and Mumba!. Bangalore tariffs are already high and seem to have reached a saturation level.

~

HARENDRA KUMAR H,,~ """noh, ICICIm,«"'am IDBI Bank CR,83.30, PIE. 10.00, EPS. 8.33) The stock has had a fantastic run and investors can stllliook to hook profits. The bank is In the Integration phase with the erstwhile IDBf Bank, and now United Western Bank, which may take some time. It is also trying to cut down Its cost of deposits. The market has priced these In and the stock is likely to move sideways now.
Syndicat. EPS. 10.61) The stock has exceeded our price target and we believe that Rs 105-110 levels are good to book profits, Bank (R. 88.45, PIE. 8.33,

EPS.4_28) We recommend booking profits in jyoti Structures' shares and shilt to KEC International generates jyoti's Instead. about appreciation KEC Is bel1er placed Rs 1 billion would per as it

annum.

be 7.2 per cent.

AMBAREESH
VJ"-P',,ident,

BALIGA
Stock Bmking Limited

Karoy

Titan CR,780.85, PIE 47.69,EPS. 16.37) With other players emulating Titan's I

Further,
enues

additional
not

properties
for the

and revnext 30

I

would

happen

to 36 months. The story of tariff hike can't sustain the stock at higher levels for the next two years. Real Estate Plays This is one sector that has seen a lot of momentum in the last couple of months. In contrast to construction plays, this sector's valuations are based on "land banks". Though land is a physical asset, its valuations vary with perceptions. We don't suggest an outright sell, but we recommend Investors to be cautions.

HTPC CR, 130.20, PIE. 17.70,EPS. 7.35) The power sector is in the midst of a capital expenditure boom with all three major players-Reliance Energy, Tata Power and NTFG--announcing expansions, But, as these are long gestation projects. It will take some time for cash flows to come in, After rallying over 30 per cent in the last three to four months, investors can book profits around Rs 145-150 levels. II

"Chappell

wants Ganguly to replace

Dravid as Indian test captain,"
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