Smart Money - Analyst's Picks

StockAnalysis:ParsvnathDevelopers

Parsvnath Developers Limited (PDL) is one of the leading players in the real estate

industry in India. The company was incorporated in 1990 and commenced business

as a marketing company for real estate projects. It then moved into construction

of residential projects, and currently has operations across 46 cities in 17 states.

PDL has in-house material purchase and construction capabilities with no third-

party dependence. Over the years, the company has gradually reduced its

dependence on residential projects by diversifying into commercial, integrated

township and SEZ (special economic zone) space.Currently trading at price of 117.25

down more than 75% from the highs of this stocks, this stock is looking very attractive at

current market levels. The stock belongs to the reality sector which off late has been into some

news as a result of downfall of this sector. I am now posting some of my analysis regarding this

stock here. Hoping you may find it useful.

About the company and its expansion:

Analysis:

With a market capital of 2165 crores, this company has given some decent results

and is expected to do so in the future. It is a good fundamental company with a great oppurtunity to gain much forward. Here is the result of this company.

Quarterly Results:

(Rs crore)

	Jun ' 08	Mar ' 08	Dec ' 07	Sep ' 07	Jun ' 07
Sales	364.80	526.49	456.37	397.24	346.16
Operating profit	116.51	164.07	152.67	152.92	113.78
Interest	17.40	17.85	8.31	9.67	3.28
Gross profit	106.06	159.94	175.44	153.73	121.20
EPS (Rs)	3.86	5.90	6.19	5.45	4.57

As we can see this quarter the result was not so good but considering the other quarters, it has

done quite nicely and the company is expected to do well from the next quarter.

With a PE ratio of 5.10, this stock has corrected deeply and is now about to turn up provided the

markets gain from here. The immediate resistance for this stock is faced at 125 and 140 levels

while supports are at 110 and 100. In long term range, we may see ranges of 180-250 within a

year.

Advice to investors:

Short term: Buy and average if you are holding the stock.

Medium term: Buy in dips and book partial profits.

Long term: Buy and sell 50% when levels of 180 reach.

StockAnalysis: Shree Renuka Sugars

After seeing such a sweetness in Sugars an analysis on this stock was required as

sugars are already corrected more than 20% upside. Most sugar companies are now

have a set up to produce power and alcohol from bagasse and molasses which had left

them with more revenue earnings. renuka sugar is one of the most traded stock in this

sector.

Renuka Sugar Company has a large distillarycapacities and after 5% ethanol blending

being mandatory it supplies to oil marketing companies at a rate of 21.5 Rs per litre.

Sugar price had declined last year so it is doubtful for further decline. Even on the way

to control inflation if Govt forces, distillaries earnings are likely to increase. Cane cost

is less in South than North specially UP and this makes a huge difference in Renuka

Sugars than to its peers. Recently company approved raising up to 200 mn $ via local

and overseas share sale. Company is also setting a 700000 tonnes sugar refinery at Mundra SEZ.

TECHNICAL ANALYSIS:-

The stock hold a significant support at 127-130 levels. The daily RSI and daily MACD has

potraied a positive divergence. The movement pattern shows candle stick pattern with

neckline placed at 127 level. The stock is trading above its 50 sma and technically looks

good to buy.

ADVICE TO INVESTORS:-

Based on the above analysis it is believed that the stock appears to have made

the intermediate bottom at the long term support level at 127-130. Traders

can buy the stock at current levels for target of 145 in a week time. Detail

targets expected is as follows.

Based on above analysis targets estimated are

i) Short term – 150-155 Rs. for positional traders with stop loss of 154 Rs

ii) Medium term – 180-190 Rs. for investors

iii) Long Term – 240-260 Rs. for investors.

Disclaimer: "Given above is my personal observation, may not match with

market trends, posted for information purpose only, Please consult your

finance advisor before entering any investment / trading decision"