Chat Calls of 20.02.2008

20 Feb 08, 09:40
Harsha: Nifty Feb Fut Above 5220 Target 5386 Below 5220 Target 5175 or lower

20 Feb 08, 09:40
Harsha: Buy Rel Cap abv 2155 T1 2180 T2 2200 SL 2135

20 Feb 08, 09:40
Harsha: Buy Sail abv 232 T1 237 T2 241 SL 228

20 Feb 08, 09:58
Harsha: Avioid Rel Cap for 5 min ....and buy......

20 Feb 08, 10:01
Harsha: REL CAP may decline near SL .... so try to Buy Near SL...

20 Feb 08, 10:04
Harsha: Our BTST Call ONMobile is Rocking.... Buy call Given at 510... CMP 532.... Book Partial Profits....

20 Feb 08, 10:07
Harsha: OnMobile Non Stop........CMP540... High risk Trader can Re enter for quick profits of Rs 10 to Rs 15......

20 Feb 08, 10:10
Harsha: OnMobile ..... Non Stop ..... CMP 557.80... Book Partial Profits.. Re entry Buy Call Given at Rs 540 ...

20 Feb 08, 10:15
Harsha: ReL Cap ... advised to Buy near SL and it declined to 2137 those who have bought it .... Kindly raise ur SL to abv ur buy Price... CMP 2158.....Book partial profits

20 Feb 08, 10:46
Harsha: Those who have shorted NIFTY ...cover ur shorts ... ( Below 5220 Target 5175 or lower ) CMP 5143.... Profit of Rs Rs 75 +...

20 Feb 08, 11:01
Harsha: Buy REL around 1595 / 1600 T1 1635 T2 1655 SL 1576

20 Feb 08, 12:44
Harsha: The IPO of Rural Electrification Corporation (REC) was subscribed 2.46 times on the second day of the issue today, 20 February 2008. The IPO received bids for 38.37 crore shares as compared to 15.61 c

20 Feb 08, 12:44
Harsha: 15.61 crore shares on offer. The price band for the IPO is Rs 90 to Rs 105. The issue closes on 22 February 2008.

AHMEDFORGE

The Q2FY2008 results of Ahmednagar Forgings Ltd (AFL) are below our estimates.
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The company's sales for the quarter grew by only 8.8% to Rs165.8 crore. The domestic sales remained flat at Rs111 crore and the export sales grew by 30% to Rs54 crore. The export revenues were flat on a quarter-on-quarter (q-o-q) basis.
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The operating profit margin (OPM) has been maintained at 20.6%. As a result, the operating profit grew by 8.5% to Rs34.2 crore. Higher interest and depreciation costs led the profit after tax (PAT) to remain flat at Rs17.7 crore.
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The ramp up in exports is not happening, as expected. There has been a delay in product approvals for exports. The domestic revenues are also not growing due to a slowdown in the domestic market.
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AFL is making preferential allotment of 17 lakh shares and 38 lakh warrants to its promoters at a price of Rs240, thereby raising Rs132 crore. The funds will be used in buying assets such as forging lines. The preferential allotment would lead to an equity dilution of 16%. The resolution to raise money through debt of Rs2,000 crore has also been cleared.
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Slow ramp up in exports, slow down in domestic market and 16% equity dilution would be a dampener on AFL's performance. We downgrade our earning estimates for FY2008 and FY2009 by 25% to Rs16.3 and Rs20.6 respectively. At the current market price of Rs203, the stock is trading at 9.9x its FY2009E earnings and is available at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.0x.

REL may get Mumbai trans-horbour project ....

A consortium led by Anil Dhirubhai Ambani Group's Reliance Energy (REL) is all set to get the contract for the prestigious Mumbai trans-harbour link project.

The project, which will link Sewri in the island city and Nava-Sheva across the creek, is part of the state government's ambitious $40 billion makeover plan for Mumbai.


Msg By Mr Ravi Singh

NOT SO GOOD NEWS IN FRONT LINES

RBI rejects proposal for higher equity exposure RBI has rejected a proposal to increase the current capital market exposure limit of 40% (of networth) for banks. Recently, Bank of India, IndusInd Bank, Kotak Mahindra Bank and HDFC Bank had proposed a hike in the limit. Among the banks proposing higher equity exposure, HDFC bank has an exposure of 70.6% and had proposed a limit of 55%. In response, RBI has asked the bank to reduce its exposure to 40% limit by April 2008. RBI's decision to maintain status quo on the capital market exposure limit is based on the recent volatility in capital markets coupled with wide spread fears of recession in US following the mortgage turmoil.

Msg By Mr Jaydeep AVR PT