Buy stocks of SKS Microfinance with target of Rs 190-195

“We should see micro finance bill also going through and with the model changing for micro finance companies especially SKS Micro it should be positive going ahead. In fact, I have been positive on SKS Micro ever since we saw those levels of closer to Rs 90- since then I have been recommending that stock and every time I have been upping my target and now my target is about Rs 190-195 for SKS.”


The company's trailing 12-month (TTM) EPS was at Rs 15.43 per share. (). The stock's price-to-earnings (P/E) ratio was 11.48. The latest book value of the company is Rs 43.07 per share. At current value, the price-to-book value of the company was 4.11.

Sell stocks of TCS, HCL Tech.

“IT should be utilized to sell. Whenever we see that bounce back and we saw that bounce back in the last two months despite poor results from some of them. But December quarter results will still be poor or maybe poorer than what we saw in September.”

“At these levels one should be exiting stocks like TCS and HCL Tech. Infosys anyway I have been negative for the last six-seven months. Wipro , I don’t think because of that news Wipro should move up, anyway that belongs to that segment which is going to be demerge. I don’t think Wipro should move up because of that news.”

Buy stocks of Dr Reddy

“Dr Reddys has come in our buy list repeatedly. It is a buying opportunity even at current prices.”


He further added, “It is very gratifying to see the PSU banks do well. For the last two weeks that has been the most underlying theme that I have been giving on the channel that PSU banks are the next sectoral opportunity. The way to play is in three-way. There is still steam here. Ideally you want to buy these stocks when they have a pause. There is no sense in running after them, but there is more upside left. So the three-ways you can just trade the Bank Nifty. Go for individual PSU banks and third if there are Exchange-Traded Funds (ETFs) which are created only for PSU banks. So if there is enough liquidity buy a PSU bank ETF.”

Buy stocks of Jet Airways

“Jet Airways is something that I would now avoid. It needs to go through a very deep correction before it becomes a buying opportunity again. But jet’s charts are excellent. They promise and suggest much higher levels. As a tactical decision this is not a buy at current levels.”


He further added, “There is no short selling opportunity anywhere in the Nifty except for some stray counters. Bharti Airtel is going through a correction. The rally itself was a little overextended and the correction is not over yet. So the sense will come when it corrects and completes its correction to go and buy it again. That will take a bit of time.”

Buy stocks of HDIL

“I have been taking a bullish call when HDIL was Rs 70 so I think that continues. I have also explained that HDIL, Indiabulls are the two real estate favorites. Both have done well in their own ways. I think the question is should we be buying HDIL at current prices and the answer would be for a short-term trader, for a momentum trader, yes even at current prices there is the prospect of another upmove. That upmove can be captured. Just be careful because the markets are choppy, but there is an opportunity.”


He further added, “All the IT majors are looking disappointing. So the trade here is not to take any buying call, not to try to buy these falling knives and stay away. They require a lot of consolidation and a lot more effort before we can say okay; this sudden onset of declines that they have come into is over. At this point it is an avoid.”

Buy stocks of eClerx Services; target of Rs 910

eClerx:-

“eClerx is a leading provider of data analytics, data audits and related services to global enterprise clients across industries. After its listing at the beginning of financial crisis in January 2008, the stock price has seen extreme movements. First it slumped towards its all time lows around Rs48 and then embarked upon a spectacular multi-fold rally during 2009 to July 2011 to hit its life-time high of Rs875. Post the July 2011 high, the stock embarked upon a year long correction to hit lows of Rs570 by June 2012. This price decline has occurred in a well defined mildly declining channel formation as highlighted in the adjoining weekly candlestick chart. Recently, the stock price posted a bullish upward break out from this falling channel around Rs740 accompanied by rising volumes.”

“From a technical perspective, this is a bullish signal for future price movements. According to the classic theory, price implication of a channel breakout is measured by adding the price range of the consolidation to the breakout level. In this case, the range of the channel (774-600 = 174 points) added to Rs740 projects the price target of Rs914. We expect the stock price to scale to its projected price target with some temporary hurdle in the vicinity of its life-time high of Rs875 levels. During the recent climb, the stock price has marched above its all medium and long term moving averages and is forming rising peaks and troughs indicating a bullish trend. Among momentum oscillators, the 14 week Relative Strength Index (RSI) has climbed upon its bullish territory indicating strength from a medium-term perspective.”

"Accumulate eClerx in a staggered manner in the range of Rs 770-787 for a target of Rs 910 with a stop loss below Rs 714 on a closing basis,” Says ICICIdirect.com research report.

Buy stocks of Supreme Infra; target of Rs 365

Supreme Infra:-

“Supreme Infra has registered revenue growth of 32.2% yoy to Rs. 4,362 mn, showing the execution strength of the company. This strong execution was seen in the road projects viz., Manor Wada Bhiwandi, Ahmednagar Karmala and Panvel Indapur. During the quarter we saw a decline in EBIDTA margins which stood at 16.1% down by 59 bps yoy, primarily due to higher construction expenses as a percentage of sales which went up by 929 bps yoy at 82.1%. during the quarter PAT margins were down by 183 bps yoy at 5.9%, primarily down due to rise in borrowing cost by 74% yoy and rise in effective tax rate by 600 bps yoy at 28.0%.”

“The present order book stands at Rs 43,758 mn including L1 of Rs 9,996 mn which stands at 2.9x FY12 sales. During the quarter SIIL, added orders worth Rs. 11,456 mn. The closing order book has been divided into 50% road, 7% bridges, 1% railway, 37% building, 5% water and balance power. The Company has achieved the financial closure for 9 BOT projects except for the new 10th road BOT project bagged (Kotkapura-Muktsar Road) during Q1FY13 in JV with SPML Infra based out of Punjab. Of the total 10 BOT projects currently 3 projects are operational viz-Kasheli Bridge Patiala Malerkotla and Nagar Kopargaon. During FY13 the company will have 1 Road BOT viz Manor wada Bhiwandi which is expected to get completed and start the operation. Total Equity requirement for 10 road BOT projects is Rs. 7,500 Mn of which Rs 3,800mn has been infused by Supreme Infra while; 3i Capital will infuse Rs. 3,060 mn and balance Rs.640 mn to be infused over the next 36 months by the company.”

“The company is well poised to capitalise on the opportunities of govertment spending on infrastructure. In view of the growing order book, efficient execution of ongoing projects, backward integration and improving track record, we expect the company’s top line to grow at a healthy CAGR rate of ~21% during FY12 to FY14E. At current market price of Rs 278 the stock is trading at a P/E multiple of 4.4x and 3.6x to its FY13E and FY14E EPS of Rs. 63.8 and Rs. 76.4 per share. We maintain buy with a target price of Rs. 365 per share with an upside of 31% based on SOTP method. For the construction business we arrive at a price of Rs 319 per share which discount FY13E EPS of Rs 63.8 by 5x. For BOT projects viz., Manor-Wada-Bhiwandi (MWB), Kasheli Bridge (KB), Nagar Kopargaon (NK) and Patiala Malerkotla which are valued on DCF basis which gives a NPV of Rs 46 per share,” says BP Equities research report.