Sunday, March 4, 2007

Insider News of some companies

You can buy these on declines.

* Prithvi Information Systems is likely to post an EPS of Rs.50 in FY07 and Rs.65 for FY08. The share is sure to move up.
* Era Constructions is being accumulated in anticipation of bumper results.
* Gayatri Projects is implementing Rs.600 cr. worth of irrigation projects. The scrip’s immediate target is Rs.325.
* Diamond Cables shares are being cornered by persons in the know. Scrip may cross Rs.175.
* Market has overreacted to the application of MAT to IT companies. It is behaving in the same fashion when FBT was introduced. Sooner than later, this sector including mid cap IT companies will make a sharp pull-back.
* Introduction of dual excise duty on Cement indicates how serious the govt. is to bring down the prices of cement. Soon they may ban cement export also. Stay away from this sector and avoid bottom fishing.
* The imposition of export duty on iron ore and removal of import duty on coking coal are very positive for steel and metal industry. Buy SAIL, Tata Steel, Monnet Ispat, Tata Sponge, Godawari Power etc.
* The finance minister has put special thrust on Agriculture in the budget. Farm credit has been raised to Rs.2,25,000 cr. and fertilizer subsidy increased by 30% to around Rs.22,500 cr. Buy GNFC, GSFC, VST Tillers etc.
* Govt. has not only extended the TUF scheme for the textile sector but also increased the provisions for it by 70% to Rs.911 compared to Rs.535 cr. for 2006-07. It’s positive for spinning units like Winsome Textile, Kallam Spinning, Sambandam, Ambika, Suryalata etc.
* A sum of Rs.96,000 cr. has been allocated for defence in this budget. Zen Technologies, Micro Technologies, Premier Explosives, Astra Microwave will gain from this.
* Money mutual funds may witness evaporation of funds to RBI bonds, as dividend tax will make it uneconomical for investors henceforth.
* Hindustan Lever may be considering a 100% buy-back. The change in name may only be a prelude to it.
* NTPC and Tata Power may gain a lot from the boost in rural electrification.
* Rollback of withdrawal of Sec 80 IB and Sec 80 IA is on the cards aver market pundits. So look out for construction and real estate scrips on decline.
* The dual excise policy in cement reminds one of the controlled pricing in cement and the rampant black marketing!
* BHEL bonus may be followed by a split in face value.

Posted by Ayush Jain at Sunday, March 04, 2007

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