Recommendation: Hold On

Current price: Rs 100 (at the time of publshing this tip)

Target price: Rs 150

Key points:

HCL Technologies has announced that it has signed an information technology outsourcing engagement worth over US$350 million with Reader’s Digest Association spread over seven years. This deal is a part of US$1 billion worth of deals the company had won in Q3FY2009. Though HCL Technologies won record deals of US$1 billion in Q3FY2009, it is likely to incur an upfront transaction cost of US$25 …

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Recommendation: Buy

Current price: Rs 35 (at the time of publishing this tip)

Target price: Rs 85

Key points:

A significant slowdown in business and leisure travel has led the occupancies of the hotel industry to fall from 75% to 58% yoy and the average room rate declined by 17% yoy in January 2009. Foreign tourist arrival has also weakened after 9/11 terror attacks on Mumbai. However, the rate of decline has eased in February 2009 (a month-on-month increase as compared to January 2009).
Hotel chains, …

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Recommendation: Buy

Current price: Rs 55 (at the time of publishing this tip)

Target price: Rs 75

Key points:

While the prices of sunflower, corn and rice bran oils have declined in the past few months, the hardening of the price of its key raw materials - copra and safflower oil - most important factors for Marico. These two commodities showed a significant decline in February 2009. Prices of copra, the key raw material for Parachute, have declined by 4.9% month on month (down 12.4% compared …

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Recommendation: Buy

Current price: Rs 1,200 (at the time of publishing this tip)

Price target: Rs 1,375

Key points:

The macro business environment has worsened further since the last commentary by Infosys Technologies’ management. In the recent interaction, the management has indicated higher than expected pricing pressure, project cancellations and considerable decline in the IT budgets of its clients.
The worsening situation has been further aggravated by the BFSI clients, with large global players like the Bank of America, Citibank, AIG and the RBS looking for …

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Recommendation: Buy

Current price: Rs 71 (at the time of publishing this tip)

Target price: Rs 110

Key points:

Welspun Gujarat registered good growth in the topline on account of higher realisations but the EBITDA margin declined significantly to 9.8%. The profitability declined 53% YoY due to higher interest and depreciation costs. The PAT of the company declined to Rs 45.31 crore resulting in a quarterly EPS of Rs 2.43.
The company registered sales growth of 41% YoY to Rs 1456.63 crore on the back …

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Recommendation: Buy

Current price: Rs 69 (at the time of publishing this tip)

Target price: Rs 106

Key points:

Bartronics reported Q3FY09 topline at Rs 137.2 crore with a growth of 95.5% YoY and de-growth of 14.6% QoQ. The EBITDA margin at 26.6% improved by 724 bps QoQ and 665 bps YoY on the back of lower raw material costs incurred by the company. PAT for the quarter stood at Rs 24.6 crore, up 125.1% YoY and 22.1% QoQ.
The company had no billing in …

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Recommendation: Buy

Current price: Rs 24 (at the time of publishing this tip)

Target price: Rs 40

Key points:

Usha Martin Ltd (UML) put up a satisfactory performance amid an environment of global slowdown in a tough Q3FY09. The numbers were in line with the expectations, mainly because of falling sales volumes and lower realisations during the quarter. Net profit for the quarter stood at Rs 39.06 crore, down 5.3% YoY and 25.4% QoQ. Value-added products and a presence in niche markets helped the …

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