As per technical analysis Nalco has corrected quite sharply. It did not participate in the metals rally on Friday, so we would be looking to buy it once it gets past Rs 314 for a target of about Rs 360. It is quite beaten up so you have Rs 10 downside probably.
Sun TV Network is currently trading at 26.2x its FY09 EPS of Rs 9.4, which is premium to its peer and deserve the premium valuation because of its unique business model (time slot model), highest operating margin as compared to its peers, strong balance sheet which has an cash position of Rs 400 crore. We believe company has a better placed than its peers because of its less dependent of advertising on national front and strong movie pipeline for FY10. Thus, we recommend a “BUY” on the stock with a target price of Rs 294, which represents a potential upside of 20%