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Sunday, February 06, 2011

Lanco Infratech

With its power generation capacities expected to double over the next couple of years, and capability to execute projects on time thanks to in-house EPC (Engineering, Procurement and Construction) expertise, Lanco Infratech is among the preferred investment options in the utilityspace.

Chennai Petroleum

An optimistic outlook for the refining sector, expected improvement in the company's utilisation levels, and a sharp decline in the stock's price make Chennai Petroleum (CPCL)an attractive buy for investors with a long-term perspective. The stock has been a significant under-performer, losing around 28 per cent since the beginning of the fiscal, compared with the 3 per cent gain in the Sensex.

C&C Constructions

Investors can take advantage of recent price declines to buy the stock of infrastructure player C&C Constructions. At Rs 161, the stock is available at a bargain valuation of just 5.3 times trailing the 12-month earnings, a discount to peers such as Valecha Engineering and Ahluwalia Contracts. Those already invested may use the price decline to average costs. C&C's strengths include successful projects in tough terrain and diversification into urban infrastructure projects. Healthy operating margins and a sizeable order-book add to the attraction.

Teaser Home Loans

Teaser home loans are today the rage with first-time home buyers. Here's what you need to know about them.

How they work

Teaser home loans carry attractive interest rates and discount offers in the initial years of the loan's term. A novice loan applicant may be drawn to teaser loans because they start off with lower EMIs . However, the EMIs can rise sharply if interest rates rise during the tenure of the loan.

Sun Pharmaceuticals

The ongoing correction is a good opportunity to add the blue-chip Sun Pharmaceuticals stock to your portfolio. At the current market price of Rs 418, the stock trades at about 20 times its likely FY-12 per share earnings. While this may leave little headroom for the stock price to appreciate in the near term, the likely improvement in the financials of Taro, robust product pipeline and strong balance-sheet with $845 million (about Rs 3800 crore) cash on books suggest strong growth prospects. On-time launches of generic Eloxatin, Prandin and Taxotere in the US too could act as positive triggers for the stock.