PULSE TRACK
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GDP clocks above 9% growth—better than expected
STOCK UPDATE
New Delhi Television
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs260
Current market price: Rs235
Karan Johar on board
In what is being touted as the first step towards launching a world-class general entertainment channel (GEC) NDTV today announced its partnership with Karan Johar's production company, Dharma Productions. Under the agreement, Mr Johar will be on the board of NDTV's GEC holding company, NDTV Venture, and Dharma Productions will hold an undisclosed equity stake in it.
Selan Exploration Technology
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs94
Current market price: Rs75
Relatively attractive
Key points
- Comparatively cheaper: Selan Exploration Technology (SETL) is comparatively much cheaper than the benchmark valuation of $10.7 per barrel of oil & oil equivalent (boe) of Cairn India at the upper band of its forthcoming public issue. Even as compared with its peer Hindustan Oil Exploration (HOEC), SETL is trading at one-third of HOEC's valuation.
- Efforts to monetise oil assets: Apart from the cheaper relative valuations, SETL is likely to get re-rated from the success of its efforts to monetise its oil assets. The company has invested Rs17.3 crore in the first phase of the development of its oil field that is likely to result in the commercialisation of four new oil wells.
- Maintain Buy call: At the current market price SETL trades at 13.3x FY2007 and 6.1x FY2008 estimated earnings. We maintain our Buy call on the stock with a price target of Rs94 (valued at $1.5 per boe).
SECTOR UPDATE
Real estate
Rather pricey
The much-awaited listing of Parsvnath Developers was quite heartening for the investors as well as the other real estate companies that have plans to raise funds through offerings in the domestic and/or overseas markets. Parsvnath's share price closed at Rs526 that works out to a premium of 75.3% over the issue price of Rs300 per share. The stock touched an intra-day high of Rs579 per share.
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