Buy Rei Agro with stoploss of Rs 46: Gujral

One can buy Rei Agro with stoploss of Rs 46, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "REI Agro is at a great price to buy because all the drought concerns everything has now discounted. At Rs 99 that was a sell price, I doubt whether that will come. If one can buy now the current purchase will yield profit, the stop loss is quite close around Rs 46. It could get to targets of Rs 62 and Rs 69. All these people who like to call themselves investors, you need to buy at good price to be an investor. You don’t buy stocks which are in frenzied mode and then hold on for three years thinking you are an investor. So people need to be careful when they buy stock."

Source: MoneyControl

Buy Hindustan Unilever, target of Rs 303: Sharekhan

Sharekhan has upgraded its rating on Hindustan Unilever from hold to buy with a target price of Rs 303 in its September 7, 2009 research report.

"The positive results of the corrective actions implemented by the company at the mass end and the expectations of a better rabi crop would lead to a pick-up in the sales volume of HUL in the coming quarters. These two factors would considerably ease the risk of a poor performance owing to any slackening in rural consumption due to a poor kharif crop, which had been overhang on the stock. Consequently, we upgrade our recommendation from 'Hold' to 'Buy'. We maintain our price target of Rs 303," says Sharekhan's research report.

Oil India IPO overbid 1.41 times: Should you subscribe?

Oil India Ltd. (OIL), the second largest oil and gas company in India, opened its initial public offering (IPO) of 26.45 lakh equity shares of face value Rs 10 each for subscription today. Its issue price has been fixed at Rs 950-1050 per equity share and it will raise around Rs 2,512 - Rs 2,777 crore.

It has been subscribed 1.41 times so far and has received bids for 3.72 crore shares as against issue size. Till yesterday, its QIB (qualified institutional investors) portion subscribed 2.3 times.

Moneycontrol.com conducted a poll among market experts to find out if you should subscribe to the issue or not. While most experts say 'subscribe', SP Tulsian and Sajeev Dhawan say 'avoid'. Moreover, those who advice to subscribe believe that this will be a long-term bet.

Source: MoneyControl

Frontliners to rally further, midcaps won't: Morgan Stanley

Narayan Ramachandran of Morgan Stanley says that the industrial production (IIP) data as well as economic indicators are showing positive signs, which is helping the markets move higher. "They have broken the upside range," he says, adding that the markets can rally another 10-15% from here. However, he feels that the mid-caps may not outperform going forward.
Ramachandran says he would not buy commodities for the long-term. "Gold remains hedge in every portfolio."

Source: MoneyControl

Buy United Phosphorous, target of Rs 225: Sharekhan

Sharekhan has maintained its buy rating on United Phosphorous with a target of Rs 225 in its September 7, 2009 research report.

"We have fine-tuned our earnings estimates to factor in the details from the annual report of the company. At the current market price the stock trades at 11.0x and 9.1x its FY2010E and FY2011E earnings respectively. We maintain our 'Buy' recommendation on the stock with the price target of Rs 225," says Sharekhan's research report.

Oil India — IPO: Invest at cut-off

Oil India (OIL) may not be in the same league as Oil and Natural Gas Corporation (ONGC) in terms of its size of business, extent of reserves or scale of operations.

Where it scores over its big brother though is in its ability to show a growth trend in crude oil production and in adding to its reserves, more than what it produces every year.

OIL’s offer at Rs 950-1050, is at a fair valuation that compares favourably with its peers on most parameters. The offer band is at a price-earning multiple (PEM) of 9-10 times the 2008-09 earnings. ONGC has a valuation of 16. OIL also compares favourably on price-to-book value terms with a ratio of 2-2.2; ONGC’s is at 3.2.

Unlike other recent IPOs, OIL has left something on the table for investors. Investors can subscribe at the cut-off price and hold the stock for the medium-term.

Source: thehindubusinessline

Analysts bullish on full subscription of OIL IPO on Day 1

With investors looking bullish on public sector undertakings, the initial public offering of Oil India -- the second state-run to firm to hit the capital market this year -- starting tomorrow is expected to elicit good response, analysts said.

OIL has fixed a price band of Rs 950-1,050 per share for the IPO, which is expected to raise up to Rs 4,982 crore.

"Despite the aggressive pricing, the public offer of OIL will sail through comfortably and would be fully subscribed within hours of opening as investors still want to invest in PSU IPOs," Taurus Mutual Fund Managing Director R K Gupta said.

The OIL IPO, which would close on September 11, comes a month after the successful offering by hydroelectric power generator NHPC. The shares of OIL would be listed on the bourses on September 29.

The IPO of state-run hydro-power company NHPC received robust response from investors with the issue getting subscribed nearly 24 times. The company raised over Rs 6,000 crore from the IPO, marking it as the second biggest public offer after Reliance Power last year.

"There is demand in the market and the government is trying to capitalise on that... State-run companies have a good track record of investor returns and they want to raise as much money possible," Gupta said.

Both retail investors and institutional players would be betting more on OIL, he noted.

According to analysts, aggressive pricing of the government IPOs would gradually lead to investors taking a cautious stance before investing in them in future.

"There is not much left for the investors. These days even PSUs are not leaving money on table for retail investors and in due course of time the huge demand generated will also come down," SMC Capitals Equity Head Jagannadham Thunuguntla said.

Further, the listless debut of NHPC and Adani Power on the bourses, seem to have dampened the aggressiveness in the IPO financing market.

"Post the disappointing debut by NHPC on the bourses the IPO financiers were forced to pay the interest cost on the borrowing out of their pocket. This has somewhat dented their investment spirit," Thunuguntla added.

Source: EconomicTimes