Top 10 Widely Held Stocks

7/28/2019 Top 10 Widely Held Stocks

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Top 10 Widely Held Stocks

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Ajay Kumar Srivastava [email protected]

Tanmay G Purohit [email protected]

Swati Saxena [email protected]

Gaurav Sharma [email protected]

Research Team

March 08, 2013



2/11

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Fundamental View:

Reliance Power's third quarter consolidated net prot jumped 30 per cent to Rs265.6 crore from Rs204 crore inthe corresponding period last year. The total income, too, doubled to Rs1,586 crore compared with Rs674 crore onthe back of increased power generation from its Rosa power plant. During 9M FY13, its consolidated net protincreased 17.3 per cent to Rs 745.40 cr and net sales increased by 147.5 per cent to Rs 3678.80 crore.

A 765 KV switchyard has been commissioned in Reliance Powers 4000 MW project at Sasan in Madhya Pradesh.The power generated at the plant will be supplied through six transmission lines to Delhi, Punjab, Haryana,Madhya Pradesh, Rajasthan and Uttarakhand.

Promoters of Reliance Power Reliance Infrastructure, Reliance Innoventures Pvt Ltd and AAA Project VenturesPrivate Ltd successfully diluted their 5.42% stake on in the company.

RELIANCE POWER

CMP(`): 75.15 Mcap (`Cr.): 20786EPS (`): 0.52 Book Value(`): 57.4052 Week High: 139.40 52 Week Low : 70.55

HOLD

Outlook:

The company has the largest portfolio of power projects in the private sector based on coal, gas, hydro and renewableenergy, with an operating portfolio of 1,540 MW. The company also has the largest captive coal reserves in the privatesector, estimated at more than two billion tonnes. Besides, the company has purchased three coal mines in Indonesiaand is also having plans to develop coal bed methane based generation capacity.

Technical View:

The stock has witnessed a pause after steep fall from above 98 to 70 levels. At the current levels, it is important thatthe stock trades and consolidates above 76 levels for some time else selling may continue in the near term as well. Ifthe stock manages to hold above 76, there are higher chances that 85-87 levels may be witnessed in the coming trad-ing sessions.


3/11

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Fundamental View:

Reliance Industries and two partners, BP and Niko Resources, plan to invest Rs27,127 crore ($5 billion) over thenext three to ve years in the KG-D6 block to develop four trillion cubic feet (tcf) of discovered natural gasreserves.

RIL's net prot rose 23.9% to Rs 5502 crore and net sales grew by 10.3% to Rs 93886 crore in Q3 December 2012over Q3 December 2011. During 9M FY13 its net prot decreased by 2.5% to Rs 15414 cr and net sales increasedby 12.8% to Rs 276098 crore.

Reliance Industries has shut its seventh well on KG-D6 gas block due to high water and sand ingress as it awaits

regulatory nod to carry out urgent work over to plug the problem responsible for drastic fall in output. Reliance Industries and Venezuelan state oil company Petroleos de Venezuela, SA has signed a 15 -year heavy

crude oil supply deal.

RELIANCE INDUSTRIESCMP(`): 851.30 Mcap (`Cr.): 269802EPS: 60.67 Book Value(`): 504.6352 Week High: 955 52 Week Low : 673.05

HOLD

Outlook:

Gas output from Reliance's D6 block has fallen sharply but the company says production will rise once newdiscoveries in the block will be developed. However, the company wants market -linked prices to justify multi-billiondollar expenditure to develop new deep-sea elds.

Technical View:

The stock bounced back sharply and closed nearly 5% higher week-on-week basis. There are higher chances of contin-uation of the up-move till 800 levels are held on the down side. If the stock manages to close above 850 levels, 900will be the next target.


4/11

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Fundamental View:

Suzlon Energys promoters had sold about 10 crore shares (6.19%) of the paid-up capital, for a total considerationof Rs 240.40 crore.

Suzlon Energy reported a consolidated net loss of Rs 1154.53 crore in Q3 December 2012, higher than net loss ofRs 286.46 crore in Q3 December 2011.

Suzlon may sell stake in its three subsidiaries SE Electricals, SE Forge and Suzlon Energy Tianjin to pay off debt.

Suzlon Energys Kutch wind park has crossed 1,000 MW of installed capacity. This achievement makes the windpark one of the largest of its kind in India.

SUZLON ENERGYCMP(`): 16.90 Mcap (`Cr.): 3030EPS: 0.00 Book Value(`):31.6452 Week High: 30.80 52 Week Low : 13.35

HOLD

Outlook:

Although the demand from the Indian and other emerging markets is growing, the subdued outlook for large marketslike the US and Europe will remain an overhang on the company's consolidated performance for next few quarters.

Technical View:

The stock registered a fall of more than 10% last week. The stock is looking weak on the short and medium termcharts. Going forward, 15 is an important support levels.


5/11

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Fundamental View:

NHPC plans to take up three thermal power projects; 1,320-MW Rewa Thermal Project in Madhya Pradesh and twoprojects of 1,320-MW each at Lakhi Sarai and Pirpainthi in Bihar.

NHPC's net prot rose 46.9% to Rs 311.77 crore and net sales grew by 5.7% to Rs 911.57 crore in Q3 December2012 over Q3 December 2011. During 9M FY13 its net prot decreased by 7.9% to Rs 17650 cr and net sales alsodecreased by 2.7% to Rs 4011.42 crore.

The Bihar State Electricity Board is planning to strike joint venture agreements with NHPC Ltd for setting up twosuper critical thermal power stations of 2X 660 MW each at Kajra and Pirpainti, respectively.

The West Bengal Government has sought the termination of NHPC as an implementing agency for the ruralelectrication project at the Purilia district of the State.

NHPCCMP(`): 21.10 Mcap (`Cr.): 25524EPS: 2.09 Book Value(`): 21.4252 Week High: 29.40 52 Week Low : 17.15

HOLD

Outlook:

The company has the largest portfolio of power projects in the private sector based on coal, gas, hydro and renewableenergy, with an operating portfolio of 1,540 MW. The company also has the largest captive coal reserves in the privatesector, estimated at more than two billion tonne. Besides, the company has purchased three coal mines in Indonesiaand also has plans to develop coal bed methane based generation capacity.

Technical View:

The stock fell more than 18% last week, as a result of this fall it is now trading below all its important moving averag-es. The stock may consolidate around 23-25 levels.


6/11

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Fundamental View:

Unitech posted a 52.43% rise in its consolidated net prot at Rs 84.17 crore for the third quarter ended December,compared with Rs 55.22 crore in the same period a year ago.

The core real estate revenue was higher by 18%. But the revenue of Transmission Tower business jumped up by139% to Rs 66.37 crore. Similarly the sales of property management, hospitality and others were higher by 21%,25% and 27% respectively.

Segment margin of Real Estate business contracted by sharp 580 bps and hurt thus the segment prot of it waslower by 10% to Rs 93.09 crore.

UNITECH

CMP(`): 27.55 Mcap (`Cr.): 7155EPS: 0.50 Book Value(`): 36.8452 Week High: 40.90 52 Week Low : 18.10

HOLD

Outlook:

The company is witnessing sharp contraction in margins largely on account of change in revenue mix. Thenancing cost for the company has increased as the company is facing challenges in terms of availability as well ascost of funding for real estate projects.

Technical View:

After testing 4-month low levels the stock has seen an impressive pull -back last week but trades below importantmoving averages. It has to move above 29 levels on closing basis to show an extended rally in near term.


7/11

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Fundamental View:

Reliance Communication signed 8-year $1 billion managed services contract with Ericsson for wireline andwireless networks for Northern and Western states of India.

Reliance Communications has posted a 43.5 % drop in consolidated net prot of Rs 105 crore in the Decemberquarter, due to a rise in nance costs. Its consolidated revenues rose 1.3 % to Rs 4797 crore. During 9M FY13 itsnet prot decreased by 37.9% to Rs 370 cr and net sales increased by 1.2% to Rs 14309 crore on YoY basis.

Reliance Communications has tied up with WhatsApp in India and has launched the rst-of-its-kind pre-paid planWhatsApp lan for Reliance GSM subscribers and My College Plan for students.

Reliance Communications has partnered with Chinese computing major Lenovo to launch a new smartphone thatautomatically switches between technologies depending on signal strength.

RELIANCE COMMUNICATIONSCMP(`): 65.05 Mcap (`Cr.): 13116EPS: 3.25 Book Value(`): 218.9852 Week High: 101.80 52 Week Low : 46.55

HOLD

Outlook:

RCOM announced its plans to exclusively market Android devices in India over its superior network for the next 2years. Through this strategic collaboration with Google, RCOM will market the Android mobile operating system andGoogle Mobile Services in order to promote the usage of Android devices in the country. It will provide the requiredcompetitive edge to the company.

Technical View:

After falling for ve consecutive weeks, the stock bounced back sharply after testing support around 59 levels andrallied for more than 5% this week. If 66 levels are crossed , the stock may rally towards 72 levels shortly.


8/11

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Fundamental View:

IFCI reported a 33% decline in net prot for the quarter ended December 2012, at Rs 76 crore. Total income fromoperations for the quarter under review declined 5.2% to Rs 638 crore. During 9M FY13, its prot declined by32.3% to Rs 300.93 crore and total income also declined 6% to Rs 2023.92 crore.

IFCI's shareholders have given their nod for the company to issue optionally convertible debentures (OCDs) worthRs 523 crore to the Government and subsequently convert them into equity shares at par.

IFCICMP(`): 29.25 Mcap (`Cr.): 4711EPS: 3.13 Book Value(`): 31.5152 Week High: 46.85 52 Week Low : 24.00

HOLD

Outlook:

The company has shown moderated growth from past few quarters. The increase in interest rates has not allowed itsgrowth in top line to be translated into bottom line. The company is looking at increasing its competency through itssubsidiaries which have their own ability to raise funds.

Technical View:

The stock bounced back sharply after testing supports around 26.50 levels. If the recent low of 26.50 is held on thedown side, the stock may run-up towards 31-32 levels shortly.


9/11

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Fundamental View:

Jaiprakash Associates (JP Associates) registered 64% fall in standalone net prot to Rs 110.93 crore for the quarterended Dec 2012 even while it's operating sales was higher by 16% to Rs 3430.87 crore. Sharp fall in net protinspite of higher sales is triggered rst by 600 bps contraction in operating margin which resulted in 8% fall inoperating prot to Rs 795.02 crore.

JP Associates won two contracts worth an aggregate Rs 913 crore from Mangdechhu Hydroelectric ProjectAuthority in Bhutan.

JAIPRAKASH ASSOCIATESCMP(`): 77.80 Mcap (`Cr.): 16820EPS: 2.97 Book Value(`): 57.9452 Week High: 106.70 52 Week Low : 58.00

HOLD

Outlook:

The cement prices may rm up after pick up in construction activity, especially as upcoming elections in some stateswill boost execution of public infrastructure projects. Its rising debt is a major concern and current consolidated netdebt has risen 34%to Rs 50,300 crore last scal from Rs 37,500 crore in 2010 -11. For better performance in comingquarters; the company needs to maintain such reductions in interests and expenses.

Technical View:

The stock rallied more than 7% last week. It is looking good and 81 levels may be tested in the near future. Importantmoving averages are placed around 82-84 levels, which will act as resistance for the stock.


10/11

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Fundamental View:

Tata Steel's consolidated net loss for the third quarter went up 27% to Rs763 crore from Rs602 crore in thecorresponding period last year. The loss was the biggest quarterly one in more than three years. Decreaseddemand in Europe and closure of a blast furnace affected the revenues, down 4% to Rs32,163 crore from Rs33,357crore in the year-ago period.

During 9M FY13, its consolidated net loss Rs 529.11 crore vs prot of Rs 4956.31 crore YoY. Its net sales was al-most at at Rs 99236.55 cr vs Rs 98397.28 crore YoY.

TATA STEELCMP(`): 359.15 Mcap (`Cr.): 34016EPS: 54.65 Book Value(`): 541.8152 Week High: 482.25 52 Week Low : 333.35

HOLD

Outlook:

The reforms announced by the government will provide a llip to growth in the economy. It hopes that demand willrevive with the recent reform measures taken by the Government and reduction in the key banking rates, which willlead to lower lending rates and boost infrastructure activities.

Technical View:

The stock rallied more than 5% after testing important supports around 332 levels. till this level is held on a closingbasis their are higher chances that the stock may register meaningful recovery and test 400 levels in the near future.


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Fundamental View:

JSW ISPAT Steel reported net loss of Rs 130.74 crore in the quarter ended December 2012 as against net loss ofRs 308.57 crore during the previous quarter ended December 2011.

Ten promoter group companies of JSW Ispat Steel have sold their 6.38 per cent stake in the company amountingover 16 crore shares for Rs. 174.47 crore.

JSW ISPAT STEEL LTD.CMP(`): 9.60 Mcap (`Cr.): 2375EPS: 2.10 Book Value(`): -0.4152 Week High: 14.35 52 Week Low : 8.95

REDUCE

Outlook:

The company needs to revamp its operations to increase the protability.

Technical View:

The stock has remained an underperformer and has stiff resistance around 11-12 levels. Sustaining above this re-sistance is important so as to show any meaningful rally. Nearest support is placed around 8.95 levels.

POSSIBLE REPLACEMENT HINDZINC

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Top 10 Widely Held Stocks