Stock picks for October 30, 2012

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Stock picks for October 30, 2012
Here are a few stock ideas from leading brokerage houses in the country.


Ambareesh Baliga, Market Expert advice traders to sell HUL as it may slip to Rs 500- 510.

Baliga told CNBC-TV18, "The consumer sentiment is weaker than what the market had made out to be and I think this sentiment possibly could continue for a quarter more and most of these FMCG stocks have performed extremely well over the last 12-15 months. So it is possible time that they need to correct further looking at the sort of results which have come out."

Axis Bank:

Ambareesh Baliga, Market Expert advice traders to buy Axis Bank , HDFC and DCB at lower levels.

Baliga told CNBC-TV18, "BHEL numbers were disappointing; I was also expecting flat number but the numbers were clearly disappointing. Over the weekend I was saying possibly if it comes to levels of Rs 230-232 one could buy but looking at the numbers one could see the stock lower at Rs 210-215 levels."

He further added, "Even before the result season started that I have said is there will be a clear divide between the private sector banks and PSUs especially because of NPAs and that is clearly playing out. This will not be limited to this quarter. I think you will see this effect possibly over the next 1-2 quarters looking at the bad debts which are coming up. So I would be looking at buying into the private sector banks like Axis Bank, HDFC, DCB at the lower end and IndusInd Bank."

TCS: has recommended hold rating on Tata Consultancy Services  (TCS) with a target of Rs 1370 in its October 22, 2012 research report.

"TCS, Q2FY13 revenues grew 4.6% QoQ to $2.85 billion and were ahead of our $2.83 billion estimate (3.8% growth). Revenue growth of 4.8% QoQ in constant currency (CC) was heartening and was ahead of 4% in Q1. Volume growth of 4.9% was broad based while price realisations declined 0.5% QoQ. EBIT margins declined 75 bps led by onsite shift and were modestly below our estimate of 20 bps sequential decline. Though TCS' execution has been flawless coupled with impressive earnings, valuations are not cheap. That said, we reiterate that long term investors should accumulate the stock at every opportunity."

Mastek: is bullish on Mastek  and has recommended buy rating on the stock with a target of Rs 150 in its October 20, 2012 research report.

"Mastek, Q1FY13 revenues grew 6.5% QoQ to $40.8 million and were above our $39.6 million estimate. Constant currency revenues grew 5.2% QoQ while those in rupees came in at |223 crore (|218.5 crore estimate). EBIT margins declined 448 bps QoQ less than our 583 bps estimate to 2.7% vs. 7.2% in Q4 led by wage hikes and transition costs related to the new insurance deal. Order book declined 8% QoQ to $80 million vs. $87 million in Q4 led by booking slippages to October and should improve in Q2."

DISCLAIMER: GoodReturns provides you with information covering shares, futures and options based on broker's reports as stated on various media. Investors are, however, warned that they should NOT take any buy or sell decision based on these views expressed in the article. Investors should consult their own financial and share advisors before taking purchase or sale decisions. GoodReturns does not take any responsibility for any losses incurred by investors who take their cues from the above article

Read more about: stock picks, tcs, hul
Story first published: Tuesday, October 30, 2012, 8:55 [IST]
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