Wednesday, 25 April 2012

What is your outlook on L&T Finance , Adani Power and DCB from two-three year prospective?


 L&T Finance Holdings' (LTFH) subsidiary - L&T Finance (LTF), has executed definitive agreements to acquire FIL Fund Management (Fidelity AMC) and FIL Trustee Company, the companies carrying on the mutual fund business of Fidelity in India, subject to regulatory approvals. Lazard was the financial advisor to L&T Finance in the transaction. Technically, the stock is looking good and the major support is at the level of Rs 37.50; one can hold the stock with target of Rs 56-60 level for short to medium term investment horizon.
Adani Power has reported a net loss of Rs 358.42 crore for the quarter ended December 31, 2011 as compared to net profit of Rs 109.11 crore for the same quarter in the previous year. The stock has made bottom of Rs.60 and it is consolidating between Rs 60-80 level; if it gives a closing of below Rs 60 level, one can exit the stock.
Development Credit Bank has reported 52% jump in net profit at Rs 17.3 crore in the fourth quarter ended March 31, 2012 as against Rs 11.4 crore in the year-ago period on the back of lower provisioning and overall reduction in costs. Meanwhile, the bank's gross NPA ratio came down to 4.40% at Rs 7 crore during the quarter under review from 5.85% or Rs 11 crore. Its net NPA ratio improved to 0.57% from 0.96%. For the full year, the bank saw its net profit more than doubling to Rs 55.1 crore from Rs 21.4 crore, driven by lower provisioning, which massively came down to Rs 29 crore from Rs 65 crore. For the full fiscal, NIM was 3.25% as against 3.13% last fiscal. Fundamentally and technically, the stock is looking strong. One can buy at current level for long term view for the target of Rs.65.

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