Stock picks for Jan 23, 2013

HUL:

PN Vijay, Portfolio Manager, www.askpnvijay.com advises traders to buy HUL on decline.

Vijay told CNBC-TV18, "HUL, what I heard about volume was not surprising at all because at every opportunity management has been cautioning about the volume. It could be a strategy to do that because if you look at HUL as compared to Unilever Overseas, it is in what you may call the commodity aspects of the business more into detergents etc which are really commodity and not into cosmetics and personal care which is where niches are high margins are there. So, to some extent the desire to keep earnings before interest, taxes, depreciation, and amortization (EBITDA) good with higher pricing power and lower volumes is a good strategy and I am not too worried that the volumes are slightly going down as long as the EBITDA margins are sustained. The 0.5 percent increase in royalty, I am not making too big a thing about it."

Dish TV:

Sudarshan Sukhani, s2analytics.com advises traders to buy Dish TV India around Rs 69-70.
Sukhani told CNBC-TV18, "Dish TV would not be a buy today. My own support levels for Dish TV are Rs 70. It is very close to support. So once a decline starts we do not know where it will end. Let this end. Probably it will end somewhere around Rs 70-71, 68-69. At that point Dish TV is a certain buy."

HDFC Bank:

Ventura has recommended hold rating on HDFC Bank , in its January 21, 2013 research report.

"HDFC Bank, over its peers, HDFC Bank has been able to continually drive valuation premium on the account of robust loan growth across all segment ie retail and corporate, NIM at 4%+levels, stable asset quality including higher PCR (~80%) and adequate capital for growth with superior return ratios. The strong earnings growth momentum and advances growth is likely to be sustained over the next couple of years and we expect earnings to deliver a CAGR growth of 21.4% over the period FY12-14, driven by 23% CAGR growth in advances and resilient NIMs. Though valuations continue to remain rich its performance is a benchmark for the entire banking industry and we are of the opinion that the valuation premium will be sustained over the forecast period. At CMP of Rs 659, stock is quoting at 3.7x and 3.1x FY14E and FY15E earnings, we recommend a HOLD on the stock."

ITC:

Ventura has recommended hold rating on ITC , in its January 21, 2013 research report.

"ITC, strong set of numbers for the cigarette business (1.5% volume growth and 400 bps margin improvement) helped ITC continue to post a healthy growth. Further with the FMCG business on the anvil of a turnaround the going could never have been better. At the CMP of Rs 291, ITC trades at a PE multiple of 30.1x and 25.3x FY13 & FY14 consensus earnings estimates. As per our blended multiples valuation methodology ITC is quoting at high valuations and we maintain a HOLD on the stock."

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