Stock analysis: TCS

Date: 23/Nov/2011

CMP: 1062

About TCS in Brief:

It is a global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India.

Technical Indicators:

5 Day SMA	1028
20 Day SMA	1103
200 Day SMA	1107

Analysis:

TCS has recently got a contract worth $2.2billion spread over coming 15 years. Madhya Pradesh is in discussion with TCS for setting up a new development centre in the state. Depreciation in rupee is expected to increase the bottom line of the company in the coming quarter.

Recommendation:

Technical’s show that the stock is in a short term downward trend it has fallen from 1128 on 14-Nov-11 to 1062 as on today. So wait for the markets to play out and than one can buy the stock for medium to long term.

Stock analysis: Hanung Toys

Date: 22/Nov/2011

CMP: 91.65

About Hanung in Brief:

Hanung Toys & Textiles Ltd. is engaged in the manufacturing of Stuffed Toys/Plush Toys and Home Furnishings. It is regarded as India`s largest manufacturer and exporter of Soft Toys Decorative Cushions and Children`s Room Furnishings.

Technical Indicators:

5 Day SMA	96.08
20 Day SMA	106.71
200 Day SMA	157.20

Analysis:

Slowly investors have started accumulating Hanung as % delivery to total traded quantity has increased over the last weeks but its 5day Simple moving average(SMA) is still below its 20day and 200day SMA.

The company will not benefit much from the deprecating rupee as 75% of its sales is naturally hedged and therefore marginal benefit on the rest 25% of sales is only expected. The company has also reduced its capex plans to 350crore from 720crore.

Recommendation:

Don’t buy the stock in bulk now but slowly start buying the stock for medium to long term.

As of now don’t buy the stock for short term gain.