23 Sept, 2011
1) ITC :-
Current Market Price - 191.30
Targer - 204
Duration - Short Term
In times of uncertainty, shifting to defensive sectors like FMCG and pharma makes sense in the Indian Consumption growth story. The company has increased some cigarette prices by up to 10%. It has increased Classic price to Rs 110 per pack versus Rs 100 and Wills to Rs 44 per pack versus Rs 40. This should boost revenues and improve profits as Cigarette sale is less expected to lower down owing to addictive nature. Also, Agro division is expected to report better bottomline as a result of restructuring undertaken in 2009 when it exited from low marging commodities.
2) Cinemax :-
Current Market Price - 35
Target - 45
Duration - Mid Term
Historically multiplexes clock higher revenues between Diwali and New Year. This year with several blockbusters like Shah Rukh Khan's Ra one and Don 2 set to release, multiplexes will definitely enjoy high occupancy. Cinemax has launched a 5 Screen Multiplex in Mumbai's popular Infinity mall recently opened at Malad. The New Multiplex is expected to boost revenues by atleast 7-8 %. The stock is expected to rally in Q2 and Q3.
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