Markets to open Flat and move with a positive bias
Posted on April 07th, 2008 in Personal Finance) by Motilal Oswal Securities Ltd |
Market View : Positive Bias
Maintain a positive bias. Cairn India had its analyst meet on Saturday.Some of the key takeaways are as follows.
Acreage under exploration to move up significantly . The development of the Rajasthan block is on schecule.The company would be generating $2bn worth of cash every year post FY10 and has more than $1Bn worth of cash its books right now. Cairn India is highly leveraged to crude oil prices . At a brent crude assumption of $70 or target price stands at Rs 264. Maintain buy..
Palm prices have corrected 25% in the international markets, As it is an important raw material for soap manufacturers, would have positive implications for HUL and Godrej consumer productsHUL trades at 26xCY08 and 23xCY09 EPS.
Bhel reported numbers lower than market estimates. On a rough cut estimate basis, EPS for FY09 would stand downgraded from Rs 86 to Rs 75 for FY09 and from Rs 118 to Rs 95 for FY10. Investors are advised to avoid the stock for the time being.