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Saturday, October 20, 2012

Your questions on Nalco, Hexaware and Eros International and Our answers!

Dear Readers:
We have received few questions from you in past few days and here are they and our replies:

Q: I regularly visit your website and I think you are doing a good job with your analysis. Can you please write something about Eros international. I think its a good company in the media segment.

A: Technically, Eros is near to its support point of Rs 159 and 153, which will be very difficult to break. Eros has been in a downtrend for last one year and next support is also close which is about 137 and 125, which is all time lows. Upside, 185 to 215 range will be difficult to break, so that's the upside targets for short term.

Fundamentally, shareholding with promoters is good at 77.8% and with general public is low at 7%. Both are positives. Good revenue runrate and Book value is at 73, so not bad at all.

Portfolio of releases is very interesting - English Vinglish being a recent hit. Son of Sardar and Chakravayu can be hits as well.

This is a concept stock. It will have its crazy highs and lows. So strategy will be to buy in peaceful times close to book value and book partial profit when they have huge hits and blockbusters. Very interesting scrip. Thanks for mentioning this to me.

Q: What is your call on Nalco and Hexaware for short term of about three months time? Could you suggest price to enter these stocks?

A: Nalco seems hinged at a interesting point in time, where it is a Disinvestment candidate and price is at lowest point for past 2+ years. This is a fundamentally strong scrip, which is at a decent valuation right now, almost close to its book price. Govt owns 87% of this scrip and general public has less than 1% shareholding.
Technically, right now is a good price to enter at 49.5. Downside strong support is at 48.
Upside target can be 55-60 in a month and 65-70 in cpl of months. Very interesting value scrip.

Hexaware seems to be in a technical downtrend, however currently its close to its support of Rs 110. If it breaks this, it will reach 93 or so. If the current support holds, 130 or so seems to be upside. However fundamentally this is also a strong scrip, with current revenue runrate of 1000 crores. I would think, for investment buy at lower levels e.g. at 75 or so if price reaches that level. Else for trading wait for support of 110 or 93 to hold and enter. This is obviously a momentum trading scrip.

Thanks for reading this post and keep writing in to us.

2 comments:

  1. Thank you. It is always pleasure to read your blog.

    I would request you to separate trading calls and company analysis under different sub titles. For those who wants to see the analysis, we need to scroll down or search many pages.

    ReplyDelete
  2. Hi Venki,

    Thanks for the suggestion, you can also click on Investment menu item to get all the fundamental analysis in one page.

    Thanks,
    Naren

    ReplyDelete

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