Mid Term Stock Picks - Aug 11, 2010

Posted by admin in Companies, Mid Term Picks on Aug 10th, 2010 | no responses

Here are some of the stocks recommended for investment with a medium-term investment period by Broking house: SMC GLOBAL SEC.

Garden Silk Mills Ltd

RECOMMENDATION: BUY
Market Price: Rs 80.80
Target Price: Rs 91
The company is expanding its draw twisting, draw warping and polyester spinning capacities. It plans to increase the capacity by 300 TMD for the production of POY and FDY. It has a vertically integrated business model and its portfolio consists of polyester chips and polyester yarn.

Texmaco Ltd

RECOMMENDATION: BUY
Market Price: Rs 138.80
Target Price: Rs 152
TEXMACO may get orders from the Indian Railways. It is negotiating with the United Group Rail of Australia to supply wagons, bogies and locomotive components. With an excellent track record, robust order book position and world-class infrastructure, Texmaco will strengthen its leadership position.

Everest Kanto Cylinder Ltd

RECOMMENDATION: BUY
Market Price: Rs 119.10
Target Price: Rs 135
EKC plans to expand in Asia, South America and Europe. This will help EKC diversify its geographical risk as the international operations account for 50-55% of its revenue. It successfully commissioned the large pressure vessel manufacturing facility in India and started selling jumbo cylinders.

Alok Industries Ltd

RECOMMENDATION: BUY
Market Price: Rs 19.95
Target Price: Rs 24
The company targets 450 shops by March 2011 and is in the process of adding about 45,000 spindles for producing Fully Drawn Yarn (FDY) in polyester division. The total investment of the company, including subsidiary investment in real estate, is to the tune of Rs 400 crore on four major projects.

NHPC Ltd

RECOMMENDATION: BUY
Market Price: Rs 30.90
Target Price: Rs 34
NHPC’s reputation as a successful project manager will help it secure projects. Four projects of NHPC, including the 330 mw Kishanganga, 240 mw Uri-II, 45 mw Nimoo-Bazgo and 44 mw Chutak Projects are under active construction. Once completed, they will increase the overall capacity.