Infotech Enterprises - promising growth for the future

1) Infotech Enterprise is India's growing Information Technology company. It provides IT based solutions in various domains such as Aerospace, Telecom, Utilities, Consumer Energy, Medical, Oil & Gas to name a few.

2) The company has posted growth rate of 28% in the sales and 50% in profit on year to year basis. Also, it has fared better in European sector which is a positive indication for the company. 

3) The company has recently received many awards for its growth, CSR and governance related matters. It has received "Golden Peacock Awards 2012 for Corporate Governance" which is given to promising IT companies which further provides it the premium over its peer as FIIs and DIIs give focus to corporate governance while investing the funds into a company.

4) The company operates in verticals which has lesser congestion. It is doing well which gives it comparatively stronger platform to boost its business.

5) No shares have been pledged, which is a +ve indication. No major interest expenses (0.01%) and hence no major worry in that space.

6) In terms of valuations, the company is not expensive. It is likely to earn EPS of around 22-24 Rs for FY13. Even at conservative PE of 11-13X, the fair target price arrives in the band of 232-312 Rs. It translates into the potential upside of ~15% from current levels conservatively.

7) In the last one year, the share price has increased by 100%. Though in the last three months, it is trading in the narrow range of 175-195 Rs.

Wishing you a profitable investing!!

Tremendous addition in Open Interest in PSU Banks- 12 Dec 2012

Indian Stock Markets though, have ended flat in today's session, but an interesting trend has seen in the derivatives space.
Amongst the top 10 stocks which have gained Open Interest, 6 are from the banking space, all gaining between 2-12%. These are listed below:
1) Karnataka Bank is up 12%, with Open Interest addition of 58%.
2) Federal Bank is up 5% with Open Interest addition of 46%.
3) Oriental Bank is up 5% with Open Interest addition of 20%.
4) Canara Bank is up 1% with Open Interest addition of 17%.
5) Dena Bank is up 4% with Open Interest addition of 17%.
6) Vijaya Bank is up 4% with Open Interest addition of 15%.
It seems Indian Equity Markets are discounting the news of Bank Re-capitalization and Mergers which is expected to be announced this week. Watch out for the banking space and enter into any Public Sector Banks cautiously. Even if you plan to enter, place strict stop-losses for the same.
Wishing you a profitable trading...

Buy Century Textiles at 387 with stop loss of 375 and target levels of 415 and 430

Century Textiles has broken the previous short term high made at 376 and close the Friday at 390, which indicates a break-out.

The stock is in strong bullish momentum and likely to move further. The stock provides attractive risk to reward ratio. One may buy the stock at around 387 with stop-loss at 375 and target levels of 416 and 432.

Sell ICICI Bank around 1040-1045, target levels - 1020, 995 and stop-loss 1065

ICICI Bank rallied sharply in the beginning of September and reached the levels of 1050-1100. Since then, it has stuck in this range for about a month.

On Friday though, it has broken that range and closed at 1044. Technically it is a breach of support range and likely to further go down. We anticipate it to first take some support at around 1020 and then at around 990-995. On the upside, one may put stop-loss at 1064.

Wishing you a profitable trading!!