Increase in cigarette price will increase profit of ITC

ITC: expecting profit to increase due to price increase

About ITC: 

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes four segments: Fast Moving Consumer Goods, Hotels, Paperboards, Paper & Packaging and Agri Business.

 

Fundamentals

• Cigaratte price of gold flake premium & classic milds is increased from Rs. 7 to Rs. 7.5. According to the research done by share khan, local retailers are selling these cigarattes at Rs. 8
• Cigarattes have inelastic demand and price increase will work in positive for the company which is good from investors point of view.
• Increased price will improve margin of the company.
•  Presently ITC stock is trading at approx 28x . With expected profit going up, I expect that price of the share will go up in medium term.
• Target price: Rs.379 

Technicals

Technically, the stock is getting momentum. The price increase has already shown effect with price increase from Rs. 295 to Rs. 308 in a single day. MACD is already shown crossover.

 

Buy Ceat tyres witha target of Rs.150

Buy Ceat tyres with a target of Rs.150

Ceat tyres has shown great results. It EPS went up from 2 to 30 which is a positive jump. Increased sales and controlled cost was the major reason for the increased profitability. Some key notes

Analysis of ceat ltd financial year 2012-2013

• Sales increased went up from 4827cr to 5349cr an increased of 10.81%
• Operating expenses have gone up by only 7% from 4206cr to 4500cr
• Operating profit went up by 53% from 272 to 418
• Net profit increased by a big margin from 8.9cr to 120cr a growth of 1190%
• The book value per share have increased from 190 to 217 which is a positive sign.

The stock will gain in medium to long term and I recommend to buy the share of the company with a target of 150

Buy Cipla with a target of 500

Buy Cipla

A research done by broking firm on Cipla by meeting the management of the company. The company is looking very strong. With exports as one of the  best avenue, falling rupee is helping the company to make more profits.

Here is the outline of the research:

Fundamentals

• Targets $5 billion by 2020
• Ambitious growth plans; USA, South Africa would be thrust areas
• Cipla Medpro to be earnings accretive from next year
• New pricing policy to impact 2-3% of total revenues
• A crucial court hearing in next month on overcharging

Technicals 

Technically the stock is showing more of side way movement and with so many positives, we are hoping that uptrend very soon.

Some data has been taken from share khan

 

Buy HDFC BANK if it crossed 620

Buy HDFC BANK

HDFC Bank is showing positive breakout since last few days. It has been seen that banking sector is doing well & with maximum market capitalization, it would react positively to government news.

MACD is about to give a cross over which is a positive sign.

5 reason why rupee is falling

5 reason why rupee is falling

You have seen rupee falling from Rs. 44 to Rs. 65 in last 2 years. The fall of rupee will impact all Indians in a big way. Prices of basic commodity will increase which is going to affect your monthly budget. But what happen to rupee suddenly? Here are 5 reason why rupee is falling:

1. GDP growth rate of India is coming down. So, Investors don't trust rupee anymore.
2. FII are removing money from India which means demand of rupee is falling in international market.
3. Imports have increased.
4. US economy becoming stronger
5. This is not official, As elections are coming, it may happen that political parties are increasing the value of rupee so that they can convert their dollars into Rupees and get more money from it.

Whatever is the reason, the falling rupee is going to increase the fuel prices which inturn will increase the food prices which inturn will increase the inflation in the country. Foreg: If rice is becoming expensive, then the auto wala are going to increase their prices

4 reasons why market went down by 4% on friday 16th august

Just one day after independence day & India saw one of the biggest fall in stock market in a single day in last 4 years.

Here are 4 important reason why market went down

• Global Markets were down.
• Rupee fall impacting many sectors.
• Metal Sector was most affected.
• Hero Moto corp was the only company in green among NIFTY & SENSEX stocks

Buy Colgate Palmolive with a target of Rs.1500

Buy Colgate Palmolive with a target of Rs.1500

Colgate Palmolive has been showing upward trend since last few days. The PAR is showing positive result which indicate that colgate is going to move up in near future. MACD is about to give you positive trend. The momentum has also become positive.

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Buy Maruti with a target of 1500

Buy Maruti Suzuki with a target of 1500

The market has responded well to the government new FDI policy which has helped Maruti. I stay positive for maruti as the july month sales were above expectation. Slowdown has affected all the company in this sector but Maruti's car sale has gone up which is a green signal. I recomemd to buy Maruti with a target of 1500.

The technical indicators are show positive trend. The price line is about to touch the 20 day EMA line. MACD has already given a cross over.