Stock ideas for May 13, 2013

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Stock ideas for May 13, 2013
Here are a few stock ideas from leading brokerage houses in the country.

Maruti Suzuki

PN Vijay, Portfolio Manager told CNBC-TV18, " Maruti Suzuki  is having a huge bull run due to two reasons. Primarily, as people have pointed out the end and in many of their newer versions, substantial portion of the completely knocked down (CKD) are imported from Japan. So there is a very large improvement in the EBITDA because of that."

He further added, "These are all material sensitive companies. The raw material to sales price is almost 70 percent in automobile companies. Reckoning, they (Maruti) have been very successful in their new models. If you look at the way Tata Motors has just come off in India as compared to Maruti, the success story of Maruti is its ability to understand the market and bring out new models."

Reliance Communications

PN Vijay, Portfolio Manager told CNBC-TV18, " Reliance Communications  was sort of par for the core. We just saw the strong earnings were aided by one offs. They have managed to bring down the debt level a little bit but the average revenues per user (ARPU) are very low, their ARPUs are less than 50 percent of the other major players."

He further added, "Reliance Communications, after Mukesh Ambani's indirect entry into the company, surged from about Rs 70 to Rs 110 now, a huge run. It will be inadvisable to buy any more of Reliance Communications. Probably, it is time to exit some of your holdings."

KEC International

According to Angel Broking, for 4QFY2013, KEC International 's (KEC) top-line and bottom-line performance was below our expectations. KEC reported a subdued 3.9 percent yoy growth in its top-line to Rs 2,150cr. Margin pressure along with elevated interest cost (partly due to capitalization of Vadodara facility) and higher tax rate (since the company was unable to take tax benefit on deduction from overseas business) led to a loss of Rs 14cr. Margin pressure intensifies: The consolidated EBITDAM for the quarter contracted by 406bp yoy to 4.1 percent.

Coal India

Sudarshan Sukhani of told CNBC-TV18, " Coal India  has disappointed with a very sharp decline. However, I wouldn't be a seller in Coal India. My sense is that we are again coming back to the Rs 290 support and if we start seeing any kind of steadiness in the price or even minor gains I would be a buyer in Coal India with a stop below Rs 290."

At 12:19 hrs Coal India was quoting at Rs 303.55, up Rs 3.80, or 1.27 percent. It has touched an intraday high of Rs 303.90 and an intraday low of Rs 298.95.

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
Story first published: Monday, May 13, 2013, 9:04 [IST]
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