Strong Buy call on Kirloskar Brothers

Buy Kirloskar Brothers

Dear Readers,

This is with reference to my first post on the subject matter on December 4 and subsequent post on December 16, here is the new year gift for you, we maintain strong buy on Kirloskar Brothers at current levels. The stock is trading at Rs. 158.9, 2.75% higher on Bombay Stock Exchange. We reiterate the buy for a target of Rs. 175. Here is the summary of the growth of the company.

Weekly Stocks Update for Portfolio Checkup/Restructuring

Weekly Update for Stocks

Greetings!!!
We have started a new weekly posting for you guys in which we will be updating you all on a weekly basis about top 10 performers, top 10 losers, 5 technically strong stocks and 5 technically weak stocks. This will give you an idea as to where your portfolio stands and the stocks on which you are holding on it are worth holding it or not? We would love comments and feedbacks from your end. So do comment below if you feel so.

 

Nifty 50 top 10 gainers

 

Company Name - CMP - %change

SAIL - 91 - 8.9
 

TATA STEEL - 431 - 8.5
 

HINDALCO INDS - 129 - 7.8
 

JINDAL S&P - 455 - 5.4
 

CIPLA - 420 - 4.2
 

SESA GOA - 195 - 3.7
 

STERLITE IND - 117 - 3.2
 

TATA MOTORS - 299 - 2.5
 

GRASIM IND - 3211 - 2.2
 

HUL - 527 - 2.0

 

Nifty 50 top 10 losers

 

Company Name - CMP - %change

 Reliance Power - 92 - (8.3)
 

JP Associate - 97 - (4.7)
 

Cairn India - 312 - (3.9)
 

Ambuja Cem - 200 - (3.2)
 

RCOM - 73 - (3.1)
 

Siemens - 659 - (3.1)
 

ITC - 287 - (3.0)
 

L & T - 1,590 - (3.0)
 

IDFC - 169 - (3.0)
 

HDFC - 830 - (2.6)

 

Technically Strong Stocks/Companies

 

Company            CMP      10 days Moving Average          Total Traded Qty (lacs)         10 days Average Traded Qty (lacs)

Havells                    635                 611                  0.7                  0.3
NALCO                   50                   48                  1.2                  0.6
JSW Steel                804                772                  2.9                  1.7
Opto Circuits           107                 105                  7.2                  4.0
Castrol India           296                 290                  1.0                  0.3

 

Technically Weak Stocks/Companies

 

Company       CMP (Rs.)    10 days Moving Average (Rs.)   Total Traded Qty (lacs)        10 days Average Traded Qty (lacs)

Crompton Grv               113                 115                  2.5                  2.1
IVRCL                            43                   44                16.0                15.1
Adani Ports                    135                 138                  3.7                  3.3
Biocon                            280                 286                  0.9                  0.5
EIH                                  70                   71                  0.4                  0.3

Hold on to Kirloskar Brothers

The stock recommendation given for Kirloskar Brothers on 4th December, 2012 for target of Rs.175. Unfortunately the stock is now trading at Rs. 156.55 below the recommended price. Please note that its not a trader stock and hence there was no stop loss given for this particular stock. I recommend you to please hold on to the stock and don't book loss now. Wait and watch since the call was based on fundamentals of the company. So hold on and wait for next instruction on this. Enjoy investing:)

Bharti Infratel IPO

The IPO fever is back again. After successful subscription of CARE IPO which has been subscribed nearly 44 times, its time for Bharti Infratel IPO biggest in 2 years after Coal India IPO of 15000 crore.

Bharti Infra IPO is of around 4500 crore rupees, many brokerages firms have advised their clients to avoid the IPO since its valuation are expensive. However many of them like IIFL have told to subscribe at the lower band of Rs.210. Retail investors will get a discount of Rs.10 that means if allotted at Rs. 210, retail investors will get at Rs. 200 per share. At this price I am sure that one can make profit of atleast Rs. 50 per share when the share will listed on the first day.

Please note that the lot size is 50 shares and multiple of 50 thereafter. Than means if you place your bid at the lower band of Rs. 210 you have to pay Rs. 10000.

That is Rs.210 - Rs. 10 discount = Rs. 200 per share x 50 shares = Rs. 10000

One lot will cost you Rs. 10000. So tomorrow is the last day since it is closing on 14th December, 2012. So buy it, it will not upset you for sure.

How to earn in this volatile market

What to do now when the markets are uncertain.

As per IIFL predictions SENSEX will cross 20000 by the year end. So what about after that, it may break the lifetime high limit or may fall below current levels, who knows? Since the overall confidence in EU in negative, since EU zone countries like Greece may collapse anytime if bailout didnt correct the irregualrities. What to do, here is the better if not best answer.

Invest for short to medium term. I will give you some good stocks to invest for short to medium terms. Tips are never free; lolz :}

So today is the first stock i will tell you to invest for short term (15 to 20 days)

KIRLOSKAR BROTHERS - BUY
Current Market Price is 157 approx
Target is Rs. 175
Expected profit is 11.5%

But what is the logic behind this upside? Dont worry I will give you the reasons since I am not a trader. I believe in Long Term Investment and I have the reasons for the same.

1. Improved fundamentals with focus on high value business
2. Strong distribution and brand recognition, an edge over competitors
3. Valuation are not factoring the improved fundamentals hence good to keep some.