Stock picks for December 4, 2012

Commentary

oi-Sneha

By Sneha B K

Published: Tuesday, December 4, 2012, 9:03 [IST]

Here are a few stock ideas from leading brokerage houses in the country.

United Spirits:

Motilal Oswal has come out with its report on Alcoholic Beverages space. The research firm recommends buying United Spirits and Radico Khaitan .

UNSP-Diageo deal can change dynamics of IMFL industry:The UNSP-Diageo deal will result in Diageo gaining management control of UNSP. Given Diageo's focus on the premium/super-premium segments, the industry trend towards premiumization will be further boosted. Post the deal, over 50% of the IMFL market will be controlled by MNCs. This should result in greater transparency, operational discipline and more efficient deployment of resources. With the shift in competitive landscape, we expect advertising spends and brand investments to go up considerably. Also, the passage of management control of the industry leader to a foreign company could pave the way for lower import duties.

MphasiS:

KRChoksey is bullish on MphasiS and has recommended accumulate rating on the stock with a target of Rs 435 in its December 3, 2012 research report.

"MphasiS has entered into a definite agreement with Digital Risk LLC (DRL) to acquire it for USD 175 million with an additional earnout payment upto USD 27 million over time span of next 30 months and expects transaction to close by 31st January, 2013. The deal is both cash and debt free acquisition. DRL is US based service provider catering primarily to mortgage market and is expected to clock revenue of ~USD127 million in CY12E and has EBITDA margin of ~12%.

PVR:

Sudarshan Sukhani of s2analytics.com advises short-term traders to buy PVR at current levels.

Sukhani told CNBC-TV18, "PVR is now approaching a significant resistance so from current levels only short-term traders should be looking to buy the stock and that also for quick gains. If it works out good, if it doesn't, they should be considering an exit. For anyone wanting to build a position in PVR this is not a good time. The charts itself don't give strong prospects either. So to me it is not a very upbeat stock anymore."

Tata Motors:

Ambareesh Baliga, Market Expert advises investors to buy Tata Motors around Rs 255-258.

Baliga told CNBC-TV18, "Tata Motors could see one more month of weak numbers and because of which in case we see a correction in Tata Motors although it has not corrected too much but then if we see a correction to levels of about Rs 255-258 that is an opportunity to buy because next calendar year again I see an uptick as far as the sales are concerned."

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