Punj Lloyd
Recommendation: Buy
CMP = Rs 319
Price target: Rs 620
Key points:
- A Punj Lloyd Ltd (PLL) led consortium with Malaysia's Dialog E & C Sdn Bhd and Petrosab Logistik Sdn Bhd has been awarded an order involving the engineering, procurement and construction (EPC) as well as commissioning of a 512-kilometre, 36-inch diameter onshore natural gas pipeline.
- The project is expected to commence immediately and be completed over the next 36 months. The order is valued at USD500 million.
- Though the exact quantum of work for PLL has not been disclosed, PLL is expected to carry out the EPC work of the complete contract.
- This would definitely help address the concerns of a slowdown in the order inflow for PLL. I am quite optimistic about future prospects of PLL and recommend Buy call with a price target of Rs 620 over next 6 months.
Market Highlights – Profit taking trims Sensex gains
- The Sensex came off its early highs on selective profit taking and ended with marginal gains at 16,128. Even as major Asian indices like Nikkei, Hang Seng, Straits Times and Kospi managed to clock 1-2% gains, the Sensex failed to hold on to its early rally and closed way off its highs amid profit taking towards the closing hours.
- Riding on the back of yesterday's buoyant close and optimism in several international markets, the Sensex resumed 414 points higher at 16,541 and advanced sharply on sustained buying support to scale above 16,600 and touch an intra-day high of 16,683.
- After remaining above 16,500 for the entire first half, the Sensex came under the grip of profit taking and slipped below 16,100 to touch the day's low of 16,064, 59 points down. The Sensex finally ended the session with marginal gains of 5 points at 16,128, while the Nifty gained 6 points to close at 4,872.
- Among the frontliners, Cipla soared 4.26% at Rs 204, Grasim Industries rose 3.69% at Rs 2,892, Reliance Energy added 3.19% at Rs 1,328, ICICI Bank jumped 3.19% at Rs 2.98, Bharti Airtel advanced 2.73% at Rs 810.65, HDFC Bank gained 2.69% at Rs 1,367.80, Ranbaxy moved up 2.44% at Rs 464.35 and ONGC soared 2.02% at Rs 1,014.
- However, Tisco dropped 6.42% at Rs 766.45 while Hindalco declined 5.47% at Rs 191.80 and DLF, SBI, Satyam Computers, Infosys, Tata Motors and Reliance Communications lost 3-4%.
