Monday, December 27, 2010

Intraday Tips BSE

Huge Valuation Gap In Intraday Tips BSE
3i Infotech’s Topline of Rs. 2721 Crs vis-a-vis the current Intraday Stock Tips Market Capitalization of Rs 1260 Crs, represents a huge valuation gap & offers an excellent opportunity for capital appreciation in near future. We also believe in intraday stock tips for today at 3i’s buyback of FCCB’s would also continue, to enhance its equity value. The stock has underperformed the Indian IT Sector as well as the broader markets. Company is generating quarterly cash flow of 130 crore and is currently quoting at a 80% discount to industry peers like Infosys FY 2012 target PE of 21X.

3i Info’s overall performance in Q2 FY11 remained subdued on the back of decline in the Transaction Services business. As per the Management guidance the growth is expected to be flat in the current fiscal. We expect 3i Infotech’s revenue to be about Rs 2721 Crs and net profit to be Rs 275 Crs for FY11.

At the current market price of Rs 58/share, the intraday stock tips for tomorrow is trading at 4.1x its FY11E
earnings of Rs 14.3/share and at a P/BV of 1.3x making it an attractive long-term
investment opportunity. We recommend our investors a “BUY” on 3i Infotech with a 12-month price target of Rs 79/share representing an upside potential of 33%.

Biocon (BUY, above Rs408, Target Rs425):
Biocon, on Friday has formed a ‘bullish engulfing line’ pattern on candlestick on the daily chart and has managed to surpass above the critical resistance levels of Rs407. With appearance of ‘inverted head and shoulder’ on the medium term chart, stage is set for the stock to re-test its 52-week
peak of Rs472 in the coming months. On the oscillator front, RSI also has been trading with positive crossover which exhibits strength and supports buying argument in the short term. We advise buying stock above Rs408 with stop loss of Rs400 for target of Rs425.

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