Market outlook 20-07-2010

US Markets closed green.
Europe markets also ended weak.
Asian markets are trading mixed.
Expect Indian Markets to open flat.
Nifty: (5386) Support 5342 and Resistance 5453

INTRADAY BEEPS

BUY ASHOK LEYLAND TARGET 75 SL 68;
BUY SYNDICATE BANK TARGET 105 SL 98;
BUY YES BANK TARGET 309 SL 296;
BUY HDIL TARGET 270 SL 260;
BUY BHARTI AIRTEL TARGET 310 SL 295 ;
BUY GMR INFRA TARGET 63 SL 59;
BUY HIND PETRO TARGET 460 SL 444;
BUY IFCI TARGET 63 SL 58 ;
BUY STC INDIA TARGET 455 SL 438 ;


STOCK BEEPS

-Results Today: United Spirits, Zee Entertainment, Bombay Dyeing, JK Paper, Monsanto India, NIIT Tech, Noida Toll, Panacea Biotec, SKF India, Tata Coffee
-UPA govt may tighten iron ore export controls;GoM to discuss new Mining Policy on July 22
-Shriram group may take over Vishal’s retail arm
-Khazana may up Parkway offer price
-Hindustan Copper: Government approves disinvestment of 10%
-Bayer CropScience : Board approves selling 100 acres of Land at Thane

RESULT UPDATE

-Sesa Goa Q1 net profit at Rs 1,302 cr vs Rs 422 cr (YoY)
-Mindtree Q1FY11(QoQ) Net profit down 70.9% from Rs 54.5 cr to Rs 15.81 cr
-Aventis Pharma Q2 Net profit at Rs 42.4 cr vs Rs 47.1 cr (YoY)
-Mid Day Q1 (QoQ) Net loss at Rs 2.4 cr vs Rs loss of Rs 0.10 cr
-Bayer Crop Q1 PAT at Rs 49.1 cr vs Rs 50 cr ((YoY))
-Balaji Tele Q1 (QoQ) Net profit at Rs 2.9 cr vs Rs 3.4 cr (QoQ)
-PTC Q1 Net profit at Rs 27.8 cr vs Rs 33.3 cr
-Container Corp Q1 Net profit at Rs 194 cr vs Rs 201 cr
-Triveni Engg Q3 Loss of Rs 14.23 cr Vs Profit of Rs 39.8 cr

Ex-Dates

-Amara Raja : Ex-Dividend @ Rs 2.9/share
-Castrol India : Ex-Dividend @ Rs 7/share
-Great Eastern Sh : Ex-Dividend @ Rs 8/share
--
Please visit our website for more information WWW.BUZIBIZ.COM

Weekly Beeps 18-07-2010

The failure of the key indices to head higher after making new intermediate highs this week shows that the market is a little jittery. The disappointing IIP report and stubbornly high inflation have only added to the confusion. Global cues too are not particularly rosy amid persistent worries over the state of affairs in the US, EU and China. The only positive development is the improvement in the euro versus the dollar. So, the near-term trend may continue to be driven partly by earnings and partly by external factors.

The key indices may find it tough to accelerate beyond a point if world markets are not supportive. A lot will hinge on how the rest of the results from India Inc. unfold. A big positive for India is the fact that FIIs seem to be fairly upbeat about growth prospects here.So, any fall will only make our market that much more attractive at a time when the world is struggling to keep the momentum going.

Inflation is a big worry and may remain so for some time to come. But,a calibrated monetary tightening has already been discounted and won't be much of a problem. Given this backdrop, one could continue to be positive on India over the medium to long-term though some caution is
warranted in the near term owing to a fragile global situation.

============== >< =============
Market Data > Swaraj Engines Ltd
============== >< =============

Mkt. Price NSE (Rs) 445

52-week High/Low (Rs) 464 / 260

NSE Symbol SWARAJENG

Perfect past + Bright future = Long term wealth creation opportunity

We all know of how Warren Buffett was guided by the learnings of his mentor Benjamin Graham in the early part of his career. But few would know that Buffett's later investments (the ones that made him really successful as an investor) were more influenced by the philosophy of Philip Fisher and close friend, Charlie Munger. Munger would rather invest in a good business bought at a fair price, than in a really cheap, dull company that could never really grow. In fact, Munger convinced Buffett that they should pay a slightly higher premium for good businesses.

And thus, Buffett today realizes that when you find a really good business run by first class people, chances are a price that looks high isn't high. The combination is rare enough. And thus such a business is worth a pretty good price.

We can say the same for our Hidden Treasure for this month - Swaraj Engines (SEL). The stock isn't ultra cheap now at almost 14 times earnings. But then, you are paying such a price for a company that has a brilliant long term track record of profitability and wealth creation.

SEL manufactures diesel engines for the 'Swaraj' brand of tractors owned by the auto major M&M. And for the most part of the past 15 years, it has maintained a clean balance sheet and has generated good profits and cash flows. For instance, since FY96, it has averaged return on equity of around 32%. Return on invested capital has averaged a whopping 63%! The company is also amongst the most efficient in its industry when it comes to managing working capital.
Its dividend payout history also inspires confidence. All in all, the management has been highly effective all these years. It has managed the business without taking undue risks.

Overall, we see SEL as an indirect bet on India's agriculture sector.Given the focus on increased farm productivity, the demand for tractors is on the rise. This should benefit the company in the long run.

The stock is trading at around 14.2 times its FY10 earnings. Based on out estimated FY13 earnings, it is trading at just 8.8 times.Considering its strong past track record and equally good expectations from the future, we believe the stock should be part of the portfolio of long term investors. The stock has the potential to turn into a 2-bagger over the next 4-5 years. We thus advise you to 'Buy' into the same at the current levels.

@====================================@
We started new yahoo groups and free msgr service
Please join with BUZIBIZ
http://finance.groups.yahoo.com/group/purenifty/
New Yahoo msgr ID : buzibiz@ymail.com
www.buzibiz.com

@====================================@