INTRADAY PICKS - 30/03/2010

Intraday Pick for 30/02/2010
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Ruchi Soya - CMP: 99.25, Target: 102.00, SL: 97.50.
Mudra Lifestyle - CMP: 37.35, Target: 38.50, SL: 39.50.

SATYAM : Back on its feet (BNP PARIBAS)

We acknowledge the risks that Satyam presents given the lack of audited financials and the near-term overhang of L&T likely selling its stake. However, we believe Satyam still makes for a compelling turnaround story and that the audited results could reflect a better picture than investors fear. We believe an eventual merger with Tech Mahindra would be synergistic and could re-rate both the stocks ahead of the event. We also estimate Satyam has about USD700m or 28% of its market cap in cash that it can use strategically. Finally, large cap IT stocks have rallied 14-19% from their YTD lows, while Satyam is up only 3%, hence presents a case for a catch-up. Retain BUY.

To see full report, click here.

DishTV : 36% Upside Potential

At CMP of Rs 36.6, the stock trades at 5.1x TTM EV/sales of Rs 987 crore.
We believe the industry is looking attractive mainly on back of digitalization
growth with HITS policy approved by cabinet. To capture the growth coming
Dish TV ahead we believe Dish TV is better placed than its peer group. We
recommend ‘BUY’ on the stock with a price target of Rs 50
representing upside potential of 36%.

To view complete report click here.

BUY ASHOK LEYLAND - India Infoline

Ashok Leyland (Q3 FY10) – Market Performer (Target Price Rs54, Upside 4.5%)

* Net sales jump 81.4% yoy to Rs18.2bn on back of 101.4% yoy volume growth.
* Operating profit surged 148% yoy and OPM expanded by 305bps yoy to 11.4%
* Employee cost as a percentage of sales decline by 268bps yoy on back of benefits of operating leverage
* Upgrade the stock to Market Performer from SELL

Biggest and Fastest Wealth Creator - RIL & Unitech

Reliance Industries created Rs 1,514 billion (Rs 1.5 lakh crore) worth of wealth, 15.6 per cent of the total created, in 2008-09. Wealth creation has been calculated in the latest study as a change in the market cap of companies between 2003 and 2009, duly adjusted for corporate events such as mergers, demergers, fresh issuance of capital, buyback, etc.

Unitech has been the fastest wealth creator, for the second time in a row. Its stock price CAGR ( compounded annual growth rate) is a staggering 122 per cent. Five companies — HDFC, Sun Pharma, Reliance Inds, Hero Honda and Infosys — have remained among the top 100 wealth creators in the past 10 years. NMDC has the unique distinction of featuring in both the biggest and the fastest wealth creators’ list.