Trading Picks of Marwah Financial in Money Mantra Magazine (January Edition)

1. EP-18-31Sunil.qxd 1/1/2013 4:28 PM Page 11
BROKERS’ PICKS
Others Promoters
11039.17
10678.33
Performance of the stock (in %)
Shareholding pattern (in %)
Tata Steel: 3 months performance
26.59%
22.68%
31.35%
27.35% 14.71%
430.70 5.02%
-8.96%
409.35 -0.16%
DIIs
FIIs 3 month 6 month 9 month 12 month
TATA STEEL Buy Around: Rs 410-425 Target: Rs 450-465
Technicals indicate a positive breakout
Dipin Kwatra Historically, Tata Steel has maintained indicators like MACD, Moving aver-
best profit margins amongst integrat- ages and the RSI have given a posi-
Tata Steel Ltd. is India’s ed steel players. Tata Steel is aggres- tive signal for this stock to continue
largest integrated steel player in the pri- sively expanding its domestic produc- its uptrend. The stock has just managed
vate sector and the world’s seventh tion capacity to leverage over its low to trade above all its crucial moving
largest steel producer with an annual cost and better margins with planned averages which lie between 395-410,
crude steel capacity of around 28 mil- 3MT expansion at Jamshedpur and a with a moving average crossover sig-
lion tonnes per annum (mtpa). It is now 6MT Greenfield expansion by 2014- nal witnessed around 395 levels where
one of the world’s most geographi- 2016 in Odisha. the 20DMA crossed its 50 DMA. So
cally-diversified steel producers, with The stock has resumed an uptrend one can accumulate this stock between
operations in 26 countries and a com- after underperforming the benchmark 410-425 levels for targets of 450 and
mercial presence in over 50 countries indices for a long time. All technical 465 with a closing stop loss of Rs 400.
DII Others Promoters
8059.61
Performance of the stock (in %)
669.50
Shareholding pattern (in %)
10.68%
Sun Pharma: 3 months performance
5.19%
48.93%
63.69%
20.44%
30.75%
729.45
20.78%
10.99%
7357.80
FII 3 month 6 month 9 month 12 month
SUN PHARMA Buy Around: Rs 710-725 Target: Rs 770
Poised to make new high after building base
Sun Pharmaceutical Industries is an sales have increased at a compound- levels for a target of 725+ levels. The
international specialty pharma compa- ed growth rate of 30.2% in last 5 fis- stock has been trading in an uptrend
ny. The company's business is divid- cal years and net profit has grown at and has been building base for itself
ed into four segments: Indian Branded a CAGR of 27% in the same period. Its at the levels which it resisted to
Generics, US Generics, International domestic business contributes over a cross earlier.
Branded Generics and Active third of its consolidated revenues. It’s Levels of 710-725 should be used
Pharmaceutical Ingredients. a market leader in 6 therapeutic cate- as good entry points to accumulate this
The company has expertise in driv- gories, most of which are high-mar- stock for targets of 770 with a clos-
ing operational efficiencies to extract gin specialty chronic therapies. ing stop loss placed at 695 levels.
margins that are significantly higher I had recommended this stock a The writer is Director, Trading &
than competitors (~34% v/s indus- month back (in this magazine’s Investment, Marwah Financial Advisory Pvt
try margin of 22%). The company’s net November ‘12 issue) around 690-700 Ltd. Contact: 9810063616
1-15 January, 2013 MONEY MANTRA 25