Views by IIFL

29th Sept, 2011

1. Tata Chemicals

Buy ; Target - 335

Current Market Price - 320.55

Duration - 7 Days

Technical call on this scrip published in 28th Sept report. The RSI is indicating a positive crossover with triple bottom formation which supports buying argument in the counter.

2. Union Bank of India

Buy ; Target - 265

Current Market Price - 249.15

Duration - 4 days

Another Technical call by IIFL with a very short term horizon of 4 days. Otherwise, investors suggested to stay away from PSU stocks for next couple of months keeping fundamentals in mind.

3. NMDC

Market Performer; Target - 242

Current Market Price - 228.05

Duration - 9 Months

IIFL has increased rating of NMDC from Sell to Market Performer. The stock is trading at 5.5x FY13 EV/EBIDTA, which is marginally higher than its peers. They believe that NMDC should trade at a premium to its peers considering the high quality reserves and the low cost operations. NMDC has been on the lookout for resources globally as domestic capacity expansion has been slower than expected and new mining licenses in the country are hard to come by. The company recently managed to ramp up its production from the two mines to 28,000-30,000 tons per day from its earlier production level of 21,000-22,000 tons per day. IIFL has upgraded volume estimate to 30mn tons in FY12 and 34mn tons in FY13, factoring in higher production from Karnataka.