GOVT GETS RS 67,719 CRORE FOR 3G SPECTRUM FROM 9 TELCOS   Bharti Airtel paid the highest — Rs 12,295.46 crore — for 3G in 13 circles, followed by Vodafone, which paid Rs 11,617.86 crore for 9 circles. BSNL also paid Rs 10,186.56 crore across circles.

BGR ENERGY SYSTEMS Ltd. CMP Rs.594, Upgraded to Accumulate, with a target of Rs.705 BGR Energy has reported excellent set of numbers for the quarter ended March'10 which was way above our expectations, with Revenue and PAT increasing by 131% YoY and 130% YoY to Rs.16597 million and 1083 million. OUTLOOK & VALUATION BGR Energy is one of the leading players in the BOP space. Increasing thrust to augment power capacities coupled with huge investment outlay by the government over the next 8-10 years would provide huge opportunities to players like BGR. Healthy order-book position which stands at ~3.3x its FY10 sales along with pick-up in the execution of two large EPC contracts provides strong revenue visibility over the next few years. Strong performance by the Company in FY10 has mitigated our concerns on its execution capabilities. At the CMP of Rs.594, the stock is quoting at 16.3x and 12.5x its FY11E and FY12E EPS of Rs.36.3 and Rs.47.0 respectively. Hence considering dynamic industry scenario, healthy order-book position coupled with its strong execution capabilities, we upgrade our rating on the stock from 'HOLD' to 'ACCUMULATE' with a target price of Rs.705.   BHATIYA PARESH J

Stock Update :- Prakash Industries Ltd. CMP Rs.173, Maintain Buy, with a target of Rs.300 Prakash Industries has come out with good set of numbers for Q4FY10, with revenue and PAT increasing by 44.5% YoY and 42.2% YoY to Rs.4643.4 million and 737.5 million respectively. Prakash Industries has successfully completed the expansion of its Sponge Iron and Billets capacity to 0.6 MT and 0.7MT respectively in FY10 with a CAPEX of Rs.320Crs. The company is on track for its fully integrated steel operations. It would be fully backward integrated by FY12, post which the company would witness higher profit margins.  Moreover, foray into the highly profitable merchant power business is also likely to boost the EBITDA margins of the company beyond FY12. At Rs.173.2, the stock is trading at a P/E and EV/EBITDA of 5.9x and 3.7x its FY12 estimates. Considering the huge margin expansion and EPS growth from FY12, we maintain our BUY rating on the stock with the price target of Rs.300. BHATIYA PARESH J

ArcelorMittal, the world's biggest steel producer, has planned a foray into power generation in India. This will be the L N Mittal-promoted group's second project in the energy sector; it has 49 per cent equity in HPCL-Mittal Energy Ltd that is implementing a petroleum refinery project in Bhatinda, Punjab. BHATIYA PARESH J

About Last Week :


Market bounced back from the crucial support belt of 16000-16200 & 4800-4850. Although the bounced back was under the shadow of Global Cue.

About Next Week :

Nifty : 5066:- Keep a stop loss of 4998-4965 & go long with target of 5093-5106-5166. However, day traders need to remain cautious on account of volatility.

Sector & Stock Idea :

• During the week FINANCIAL sector will be getting strong support. In this segment one can watch for, LIC HOUSING, GIC HOUSING, HDFC, INDIAN BANK, HDFC BANK, YES BANK, UCO etc.

• SHIPPING sector will also be getting strong support. Keep close watch on GE SHIPPING, SHIPPING CORPN & PIPAVAV SHIPYARD etc.

• WATCHES & LIQUOR sectors will be getting extra ordinary SUPPORT. Buy TITAN & MCDOWEL on dips.

• PHARMA will continue to get strong support. Stock to watch RANBAXY,DIVISLAB.

Govt doubles APM gas prices :-After a 5-year long deliberation, the Cabinet on Wednesday more than doubled the price of gas under the administered pricing mechanism (APM) to USD 4.2 million British thermal units (mmBtu), the price at which Reliance Industries sells its gas at from KG-D6.

The Oil Ministry wanted a 44% hike from USD 1.79 mmBtu to USD 2.6 mmBtu. The government has gone ahead more than doubled the price to USD 4.2 mmBtu proving that it can actually move on reforms. In terms of the financial impact of course it is known that ONGC’s FY11 EPS should be impacted by about Rs 14-15, it adds about Rs 3,000 crore to its bottom line. For Oil India it adds about Rs 600-700 crore in revenues, in terms of the bottom line it should be about Rs 350 crore.