Monday, 21 September 2009

Tata Nano a hit in second hand car market too

Tata Nano is now available in the second hand car market and that too at a large premium. Yet, the few available ones are zooming-off as soon as they are put on sale. The used car segment itself is being sold at a premium of about Rs 25,000–35,000 in comparison to the new cars which are there in the market.

Here is a verbatim transcript of Tanvi Shukla’s comments on CNBC-TV18.

It seems like as hundreds of applicants wait for their Nano to be delivered, Nano itself has made its way to the used car segment. Interestingly, the used car segment itself is being sold at a premium of about Rs 25,000–35,000 in comparison to the new cars which are there in the market.

A Mumbai-based dealer has already sold four of these pre-owned Nano cars and other dealers tell us that more cars are in the pipeline. These are in the mid- and the top-end segment for which there is much higher demand that the base models itself. Dealers say that the main reason for the cars to come into the market is that the original owners could not really get together the money to make the payment for Nano.

Sources say that several of these cars are actually coming from smaller towns where proxy book was done to buy these cars through smaller dealers who are not driving them to Bombay and selling them there at a premium of around Rs 25,000–35,000. More Nanos will be available sooner considering the demand which is there in the market.

Source: Moneycontrol

Buy Reliance Infra, target of Rs 1438: Prabhudas Lilladher

Prabhudas Lilladher has recommended a buy rating on Reliance Infrastructure with a target price of Rs 1438 in its September 17, 2009 research report.

"Near-term triggers, relating to outcome of the ongoing RIL-RNRL gas dispute, timely financial closures and EPC awards, are events to watch out for the re-rating of the stock. However, timely project completion and commercialisation remains the key risk. We value RInfra on a SOTP basis as different businesses have different modes of revenue recognisation and a common measure would not capture the embedded value and hence, we arrive at a target price of Rs 1,438. We, thereby, initiate the coverage on the stock with a 'BUY' rating," says Prabhudas Lilladher's research report.

Source: Moneycontrol

Powerful bear rally underway, discontent likely: Enam Sec

On the road ahead for the markets Chokhani said that this was not the beginning of a really long bull market. In fact, smart money was still not coming into India. Most investors, according to him, were waiting for a correction before entering the market. A powerful bear rally was underway and Chokhani believes that a powerful dip followed by a period of disappointment was likely. This dip, however, will set the stage for a sustained upmove, he said. In the short-term though, he believes surprises on the upside are possible. “Though there will be hiccups but long-term trends indicate that there will be an extended recovery in the developed world along with substantial growth in emerging markets.”

On specific themes and sectors

He believes that there is a good appetite for mid-caps in the market. Commodities are expensive in the short term, he opined. “Power, insurance and consumptions play the key themes,” he says adding that it is not the right price for entrance now. “Power is likely to be a big bet.”

Chokani opines that there is a need to focus on Natural Gas and Rupee levels. “The hike in rates will be consistent due to the economic movement.”

Source: Moneycontrol

Escorts has target of Rs 150: Rajen Shah

Shah told CNBC-TV18, "I have loved this stock for quite a while. In fact at the Coimbatore Investor camp also we’d recommended this stock. It is a no-brainer Rs 150 stock. If you look at it, Escorts today Rs 90 crore is the equity and the price is about Rs 90. So, it is available at about Rs 800 crore of market cap. In Rs 800 crore, we are getting 1 lakh tractor manufacturing plant. When Punjab Tractors was bought over by Mahindras, they paid an EV of Rs 2,000 crore for 60,000 tractors. So, on that basis, this 1 lakh tractor manufacturing plant should be valued at Rs 3,000 crore, if somebody were to buy out this company. But that is not the case, even if we value it at Rs 1,000 crore and if you value the Escorts construction subsidiary, which is going to report almost Rs 600 crore of turnover and which could come out with an IPO in the next six months at about Rs 300 crore, that makes it Rs 1,300 crore.”

He further added, “If you see the land they have at Faridabad, about 110 acres at Faridabad, and there is the Delhi-Faridabad metro coming up in the next three years. So, The prices of this land is set to be something in the region of about Rs 1,500 crore but to be on a conservative side, even if you take it Rs 1,000 crore, that makes it Rs 2,300 crore of tractor Rs 300 crore of construction business and about Rs 1,000 crore of land. So Rs 2,300 crore of assets and you’re getting it for Rs 800 crore. So I am sure this company has got a long way to go. We had a target of Rs 150 forecasted at the Coimbatore Investor Camp.”

Source: Moneycontrol

Above Rs 535, Tata Steel can go upto Rs 625: Gaba

Above Rs 535, Tata Steel can go upto Rs 625 says Technical Analyst, Prakash Gaba.

In a chat with on September 18, 2009 Gaba said, "tata steel looks ok and can go up to around 625 if it crosses 535."

Source: Moneycontrol

Hotel Leela can go upto Rs 50: Gaba

Hotel Leela can go up to Rs 50, says Technical Analyst, Prakash Gaba.

In a chat with on September 18, 2009 Gaba said, "Hotel Leela looks good and can go up to around Rs 50 in time to come."

Source: Moneycontrol

Punj Lloyd can go up to 300: Gaba

Punj Lloyd can go up to 300 in time to come, says Technical Analyst, Prakash Gaba.

In a chat with on September 18, 2009 Gaba said, "Punj Lloyd can go up to 300 in time to come. just maintain stoplosses."

Source: Moneycontrol

Tata Metaliks (Rs 102.4): Buy

We recommend a buy in Tata Metaliks from a short-tem perspective. It is visible from the charts of the stock that in mid-August it took support at Rs 80 and resumed its intermediate-term up trend. This trend has been in place since March low of Rs 44.5.While trending upward, it penetrated its 21- and 50-day moving averages in late August and is trading way above them. On September 17, the stock surpassed a medium-term resistance around Rs 95 by surging 5 per cent with good volume. The daily relative strength index (RSI) is hovering in the bullish zone and the weekly RSI has entered into the zone. Both daily and weekly moving average convergence and divergence indicators are featuring in the positive territory. Our short-term outlook on the stock is bullish. We expect its rally to prolong until it hits our price target of Rs 113 in the approaching sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 96.5.

Source: thehindubusinessline

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.