Bullish on Cairn India and Dish TV: Networth Stock Broking

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2 May 2011
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Prakash Diwan, Networth Stock Broking is bullish on Cairn India and Dish TV . Maruti Suzuki , he says, will see a lot of supply at about Rs 1,200.
Also read: Four stocks that brokerages are bullish on
Below is the transcript of his interview with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video.
Q: What’s your call on Cairn India?
A: At this point in time, Cairn definitely offers a lot of opportunity because there is a lot of negative that has suddenly come in. And that’s where we pulldown the price a bit too unfairly. The margin of safety is also fairly strong. It’s not a bad idea. I don’t expect any downside from here on. In fact it will only move ahead going forward.
Q: What’s your call on Dish TV?
A: If one is looking at about six-seven months, the upside could continue for some time. Dish TV is close to its 52-week high and the newer highs that it’s been making. It’s a great story in the making. We have already seen it moving from its lows of over Rs 43 to 90 levels, thanks to the kind of change in business model that they have done this. Their subscription base is increasing exponentially. So, it’s a good stock to be with. In the next six months, we can expect another 10% upside from here.
Q: What’s your call on Maruti?
A: Maruti, I would reckon that at about Rs 1,200 levels, a lot of supply is expected to come in. The stock could react downward again after touching that level. Maruti will face a lot of headwinds in terms of competition growing. Even with diesel prices going up, there is likelihood that it could impact the kind of sales number growth that we have seen all this while for even their models.
Maruti, anywhere between Rs 1,000-1,100 is an attractive valuation more from intrinsic business enterprise EV methodology itself. So, if I don’t go by the DCF methodology in terms of valuing, Rs 1,050-1,080 is definitely very attractive.
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