Dalal Street

TVS Motor Company’s net profit declined 52% to Rs 11.92 crore on 23.6% decline in sales to Rs 823.42 crore in Q2 September 2007 over Q2 September 2006. The current price of Rs 56 discounts Q2 September 2007 annualised EPS of Rs 2.01 by a PE multiple of 27.86.

Gujarat Gas Company’s net profit rose 82.8% to Rs 33.92 crore on 35% rise in sales to Rs 275.68 crore in Q3 September 2007 over Q3 September 2006.The current price of Rs 313.25 discounts Q3 September 2007 annualised EPS of Rs 21.12 by a PE multiple of 14.63.

Areva T&D India’s net profit rose 39.5% to Rs 48 crore on 20.5% growth in net sales to Rs 432.60 crore in Q3 September 2007 over Q3 September 2006. The current price of Rs 2,087 discounts Q3 September 2007 annualised EPS of Rs 40.15 by a PE multiple of 52.19.

Arvind Mills which revamped its Flying Machine jeans brand is now joining hands with global retailers. Arvind Mills Ltd has informed us that Cherokee Inc., a leading global licensor and brand management Company that it has signed an exclusive international license agreement for its Cherokee brand with Arvind Mills. India’s largest integrated textile company and retailer. This multi year agreement covers a wide range of categories including men’s, women’s and children’s clothing, footwear, accessories, home and other categories.

Arvind Mills and Celebrity fashions also have contracts from Reliance Retail.

Here is a list of Most Preferred and Least Preferred stocks from Merill Lynch.

Top 3 preferred Stocks,

• BHEL – Maintained at the top spot with huge order book. Capex meeting schedule.
• Suzlon – Bharti Airtel is out after the recent spectrum imbroglio and Suzlon Energy is in. Successfully addressed law and order issues. Large order wins from DLF and Reliance Energy improve visibility.
• Grasim Industries – Strong cement prices in the upcoming construction season (Oct ’07 onwards)

Lest Preferred Stocks,

• Hindalco – September results likely to be hurt by strong rupee
• Tata Motors – Declining Volumes
• Pantaloon Retail India – Same stores sales growth is choppy. margin pressure. Inventory sell-off expected at lower prices

This does not necessarily mean a BUY or SELL on the stocks discussed above. Dig through our research reports to take an informed decision.