Indraprastha Medical Corporation (Group: B1, Scrip Code: 532150):
Indraprastha Medical Corporation is the holding company for Delhi based multi-speciality Indraprastha Apollo hospitals, a joint venture between Apollo Hospitals and Government of Delhi. It specializes in cancer, cardiac, neuro surgery, radiology and paediatrics. It earned a net profit of Rs.14.7 crores for the financial year 2006 – 07.
This stock recorded a high price of 54.90 in July 2005. Since September 2005 it has been on a downtrend. It formed its first higher low of 25.40 in March this year with the first wave ending at 36.35 in June. This week, it broke this resistance and closed above it with good volumes. The stock is expected to test its previous high at 54.90 in the medium term.
Indus Ind Bank Limited (Group: A, Scrip Code: 532187):
We discussed this stock in my previous article, “Hot or Not? Private sector banks on a roll!”. This bank is the brainchild of Srichand Hinduja, a non resident Indian businessman. Ashok Leyland Finance Limited, a leading hire purchase and leasing finance company merged with the bank in 2004. It declared a net profit of Rs.68.22 crores for the financial year 2006 – 07.
We discussed about the stock struggling to break its previous high at 64, even though it was making higher highs and higher lows. Ultimately, the breakout was achieved this week, with the stock closing at 65.90. The level of 64 could not be broken for more than a year. Now that the stock has overcome the strong resistance, we can expect the stock to test its previous high at 83.90 for the medium term.
Navneet Publications (India) Limited (Group: B1, Scrip Code:508989):
Navneet Publications is engaged in the publishing of educational books. The books list includes high quality books, supplementary books like guides and question sets in four languages, English, Hindi, Marathi and Gujarati. Navneet also produces various titles in the children and general books category, which are not based on syllabus, such as activity books for children, health series books, cookeries, etc. Navneet declared a net profit of Rs.43.5 crores for the financial year 2006 – 07.
Navneet Publications has not seen much action in the stock market in the last 16 months. Just before the May 2006 collapse it registered a high of 70. It attempted to break this level in September 2006 but failed. This week, almost after one year, it has broken out with good volumes and closed at 77.80. The previous high at 70 should now act as a strong support for the stock. So, any decline in the stock should be used to accumulate or enter. The medium term target for the stock works out to 108.
Sabero Organics Gujarat Limited (Group: B1, Scrip Code: 524446):
Sabero Organics manufactures agrochemicals such as formulations/active ingredients and speciality chemicals/intermediates. The company exports its products to over 50 countries covering Australia, Asia, Africa, Europe, Middle East and the Americas. In order to facilitate the registration of its products and provide better customer service, the company has recently set up subsidiaries in Australia, Argentina, Netherlands and Brazil. The company’s net profits were Rs.0.41 crores in 2006 – 07 as compared to Rs.3.1 crores in 2004 – 05.
The stock had been on a downtrend since last 2 years after hitting a high of 43.30. It however, found support when it reached a low of 9.85 in July last year. It was consolidating for a year since then. This week, it has managed to close above its previous high at 17.35 with more volumes than its previous peak. The stock’s target for the medium term works out to 30.30, which was its previous high and also 61.8% retracement level from a high of 43.30.
Zuari Industries Limited (Group: B1, Scrip Code: 500780):
We discussed about Chambal Fertilizers and Chemicals Limited, a K.K. Birla group company in my earlier article, “Buy These 5 Stocks and Forget about them”. Zuari Industries Limited (formerly Zuari Agrochemicals Limited) is another K.K.Birla group company. Zuari opertaes a nitrogeneous fertilizer plant in Goa, with an installed capacity of 946,200 metric tonnes. It comprises a single stream ammonia plant, a urea plant, an NPK plant and a DAP plant along with related on-site and off-site facilities for handling raw materials end products as well as the generation of steam and captive power. It declared a net profit of Rs.419 crores for the financial year 2006 – 07.
The stock last heavily during last year’s huge correction between May and June i.e. it fell from a high of 364 to a low of 128.50 (about 65%) loss. It bounced back and made a high of 248.40 in January 2007. But once again, it fell back near its previous support levels.
Last week, it managed to break its previous resistance and closed above it with more volumes than the previous peak. More importantly, it managed to close above 61.8% retracement, which is a strong resistance level while pull back. The stock may be expected to reach 364 in the medium term, which was its previous high and another major resistance.