View On India Bulls
Indiabulls Real estate has been moving in a range of Rs 150-130 for the last few days and in yesterday’s fall it has closed at the lower end of the range. The medium charts look very strong and if it breaks Rs 130, in the short-term it could be available at Rs 120 which could be good level to enter on long positions for a positional trader.
View on Maruti Suzuki
Maruti Suzuki India Ltd (MSIL) reported net sales of Rs 6,432.9 crore, up 35% y-o-y & 39% q-o-q. The growth in the net sales was mainly driven by a healthy 17% growth in volumes and 13% growth in realisation. We believe that MSIL is likely to get some cushion from the export market as it has received order of 30,000 units from Nissan. MSIL is also likely to benefit from the ramp up of exports of A star in the European markets."
However, the company’s earnings are likely to be affected from appreciating yen. We expect the royalty and selling & distribution expense to increase on the back of ramp-up in exports. Power & fuel cost is also likely to be high as the Manesar plant runs on diesel and it is expected that CNG power is to be implemented after a year. MSIL may face tough competition in its A1 and A2 segment from the Tata Nano launch. As well as Swift has major challenges in the coming quarters with the launch of diesel variants of the i10 and i20 from Hyundai. We recommend 'Reduce' on the stock with target price of Rs 775,
Disclosure: I do not have any personal holding in either of these stocks.