28 December 2006
After three days of rally, the Sensex could encounter profit-booking anytime. It is now trading close to its previous all-time high. Watch the 13,820 level. A dip below this level would confirm short-term profit-booking. If it crosses the level, the uptrend will continue.
Nifty Future shifts to premium of 7 points from discount of 2. Look for profit-booking at pull-back to base-line after 3 up days. Watch crucial support at 3,967 for weakness.
Wockhardt holds strong presence in Indian market and has shown robust 28.6% CAGR growth over past four quarters. We expect the company to outperform the industry by growing at a CAGR of 18.5% over CY05-09. Recent acquisition of Pinewood in Ireland will fortify the company’s presence in UK and total revenues from the territory will contribute over a half of total sales. The Protinex and Farex brands shall strengthen the nutritional segment with annual revenues being Rs 600 million and the brands are expected to contribute to the bottomline from next fiscal. At CMP of Rs 340, the stock is trading at 11.6x CY07E and 9.7x CY08E earnings. We recommend a buy on the stock with a price target of Rs 476."
by erectusplus at 06:50:00 |
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