17/07/2010

Tulip Telecom – ‘Well Connected’ – BUY
CMP Rs172, Target Rs214, Upside 24.7%

Tulip Telecom is amongst the leading enterprise service providers catering to data connectivity needs of corporates. It has an 11% share of the Rs75bn enterprise data services market (EDM) and a dominant 30% of MPLS VPN, the fastest growing segment of EDM. From a network integrator, Tulip has emerged as a one-stop-shop for the entire gamut of telecom services, a fact highlighted by >80% share of data connectivity in revenues. With fibre/wireless last mile connectivity in place, Tulip represents a pure-play on the enterprise data market, slated to be a US$3.3bn opportunity by 2013. We project a ~14% EPS CAGR coupled with stable margin over FY10-12. Initiate with a BUY as the stock trades below historic PER of ~9x, for an upside of 25%.

14/07/2010

TIME: 6:30 AM
NIFTY +ve OPEN
Sup:5398/5368/5327
Res:5426/5440/5463
DAX: +70, DOW +126, NASDAQ: +28
Trading Idea: Finolex Cables – BUY
CMP Rs54, Target Rs68, Upside 24.7%

On the weekly chart, the stock has given a breakout on the upside. The above mentioned pattern has taken place after a steady downtrend. Last week, we saw, the stock stabilizing over its 50-Week Moving Average and closing well above it, signaling strength in the upmove. Based on above technical parameters, we recommend traders t o buy the stock at current levels with a stop loss of Rs47 for target of Rs68 and Rs73.