Stk Calls from Aman

Actionable ideas
GNFC (BUY, CMP Rs205, Target Rs232)The stock made a high of Rs231 in the last week of December 2007. However, it fell sharply to the levels of Rs150 duringthe period of correction in the markets. The stock has found support at its 200-day moving average and has also retracedaround 61.8% of the previous upmove. The daily RSI is above the neutral area, indicating an uptrend. Other momentumoscillators are suggesting more upside probabilities in the stock. We feel the stock will again attempt to touch its previoushigh in the near term. We recommend a buy with a price target of Rs232.
Neyveli Lignite (BUY, CMP Rs174, Target Rs204)The stock has broken out from a small consolidation phase from third week of January 2007 moving in the range ofbetween Rs169-130. The stock has fallen sharply from its all time high levels in the first week of January. However, it hasfound support at 200-day moving average. The uptrend in the stock prices has been accompanied by impressive volumes.Moreover, the daily RSI is above its neutral area and MACD is just below the positive trigger line, suggesting an uptrend inthe near term. Short term traders can buy the stock for a target of Rs204.
Patel Engineering (PEL) (BUY, CMP Rs741, Target Rs830)We expect PEL to witness 33.3% CAGR between FY07-09 period backed by strong order book to FY07 sales ratio of 4.1x.Besides, hydropower and real estate, the company also has a notable presence in irrigation, transportation and microtunneling, which are growing at a fast pace. Further upside is possible because of its recent thermal foray, currently atdocumentation stage, not factored in order book or our estimates. We recommend a buy with a target price of Rs830.