STOCK UPDATE
Mahindra & Mahindra
M&M will be selling a 10% stake in its used car business, Mahindra First Choice (MFC), to PHI Advisors for about Rs80 crore. The company's management, in a media interview, has said that it plans to infuse Rs20 crore via rights issue and Rs60 crore via a stake sale into MFC
Indian Hotels Company
Revenue for quarter to Rs556 crore, against our expectation of Rs599.4 crore.
operating profit grew by 17.1% yoy to Rs248.4 crore.
we see increased risks going forward in terms of increasing the average room rates (ARRs) and maintaining the occupancy against the backdrop of an economic slowdown
we are reducing our price target to Rs146 based on a 18x price equity (PE) multiple to its FY2010E earnings per share (EPS) of Rs8.2.
Economy : The central bank hiked the repo rate by 50 basis points with immediate effect and also pushed up the cash reserve ratio (CRR) by 50 basis points in two stages. This will suck up 20000 Cr from the system in two stages.
News :
Tech Mahindra has bagged a $7.6-million transformational deal with Telecom Fiji Ltd, which is the sole provider of local and national (trunk) telephony services in Fiji.
GMR may close yet another cross-border acquisition with a possible buyout of 50% stake in InterGen, in a deal valued at $1.2 bn
Suzlon Energy is partnering Arcapita to explore a bid for Chinese alternative energy company Honiton Energy Holdings valued at around $400 million
Delhi Gov has slashed Entertainment tax from 30% to 20%. Positive for PVR
Jindal Saw plans ship-building hub in Gujarat with an investment of over $2 billion.
Tata Consultancy Services, has won an $ 11.5-million contract to design and install the Uganda Revenue Authority's tax administration system,
Orchid has received approval to market Tazobactum-Piperacillin drug in Canada
Telecom major Tata Communications has acquired 30 per cent more stake in South Africa's No. 2 telecommunication operator Neotel thereby taking the total equity in the communications company to 56%.
GLobal
US markets were down Tuesday after the consumer confidence index fell to a 16-year-low for June & Asian markets are trading –ve. Our markets may open with a gap down.
Stock with +ve bias: Sterlite, Ranbaxy
Stocks with -ve bias : Rcom, Bharat forge
Stocks for Investment : Punj Lloyd, Aditya Birla Nuvo, Ril, TCS and L&T