Wednesday, December 20, 2006
BALKRISHNA IND
Balkrishna Ind is biggest player in OTR [off the road] Tyre segment, manufacturing tyres for Agri segment [tractor and lawn/garden machines] and Ind.&Construction segment [including earthmoving equipments]. Its present capacity is 72,000 MTs, which is being raised in stages to touch 1,00,000 MTs by June'07 and further to 1,50,000 by 2008. Almost 92-93% of the products of company are exported to Europe [55%], US and other [45%] countries. Now looking to the cooling off witnessed in key raw materials prices, and rising production, the H-2 of current year will show significant improvement in margins. The stock is available at less then 9X for 08 earnings, which looks very attractive for a Tyre company which is enjoying best margins in the industry and exporting more then 90% of products to developed markets. One can buy the stock around Rs 515 , with an stop loss of Rs 490 and look for a target of Rs 675 to 750 in medium term
GreenPly...RS 90
Greenply Ind has signed a contract for CC.Here is the annoucement made at bse.
It is a buy according to me.Have a look at shareholding pattern at bse.Many FII's have taken stake in it.
Greenply Industries Ltd has informed BSE that the Company has signed the Carbon Emission Purchase Agreement with a private investment fund. The deal, worth around $5 million, which has been signed under the Clean Development Mechanism of the Kyoto Protocol, facilitated by Aeneas Capital Management. The agreement for delivery of Certified Emission Reductions (CERs) is valid till 2012, where CERs shall be delivered every year, starting FY 2006—07. The estimated revenue that will be added to the Company's topline every year shall be around EURO 500000. Under the agreement, the Company, India's largest interior infrastructure Company, will sell its emission reduction credits, created by burning bio mass at two of its plants. These plants will be using biomass for generation of steam. The normal practice, followed by players in the interior infrastructure space, is to use coal/firewood/waste timber/fossil fuel, which is environmentally hazardous. Carbon credits, unlike paper money that trades for physical goods and services, are a new money exchange intended to reduce pollution, particularly emissions of carbon dioxide that is caused by burning fossil fuel/coal. Carbon emissions are said to be the leading cause of global climate change
It is a buy according to me.Have a look at shareholding pattern at bse.Many FII's have taken stake in it.
Greenply Industries Ltd has informed BSE that the Company has signed the Carbon Emission Purchase Agreement with a private investment fund. The deal, worth around $5 million, which has been signed under the Clean Development Mechanism of the Kyoto Protocol, facilitated by Aeneas Capital Management. The agreement for delivery of Certified Emission Reductions (CERs) is valid till 2012, where CERs shall be delivered every year, starting FY 2006—07. The estimated revenue that will be added to the Company's topline every year shall be around EURO 500000. Under the agreement, the Company, India's largest interior infrastructure Company, will sell its emission reduction credits, created by burning bio mass at two of its plants. These plants will be using biomass for generation of steam. The normal practice, followed by players in the interior infrastructure space, is to use coal/firewood/waste timber/fossil fuel, which is environmentally hazardous. Carbon credits, unlike paper money that trades for physical goods and services, are a new money exchange intended to reduce pollution, particularly emissions of carbon dioxide that is caused by burning fossil fuel/coal. Carbon emissions are said to be the leading cause of global climate change
Monday, December 11, 2006
Eagle Eye Picks
supertex industries.....its been on circuits with huge trading volumes compared to its average vol.....frm .40 paise to .82 paise in juss one week...n can go more up till there is no major correction..those holding shld continue holding it as it can stilll give superlative returns frm here....ofcourse penny stock with punters riding it....ride it with ones own risk....i will book profit when it closes negatively on low volumes..........for 2-3 days.....expecting 5-7 rupess in a yr
one shld keep an eye on raipur alloys....expected to touch 200 soon....though has run up frm 100 to 150 in 15 days......enter now at 143 with stoploss of 125-130.....a value pick at 100....reliance n morgan stanley have entered the company
hyderabad industries might soon bottom out at 250...again gonna touch 325-350 by jan...thts something we have to wait n watch
surya pharma n hiran orgochem.....value picks with limited downside...max 10-15 % frm my viewpoint in the worst case scene looking at current market position
one shld keep an eye on raipur alloys....expected to touch 200 soon....though has run up frm 100 to 150 in 15 days......enter now at 143 with stoploss of 125-130.....a value pick at 100....reliance n morgan stanley have entered the company
hyderabad industries might soon bottom out at 250...again gonna touch 325-350 by jan...thts something we have to wait n watch
surya pharma n hiran orgochem.....value picks with limited downside...max 10-15 % frm my viewpoint in the worst case scene looking at current market position
Tuesday, December 05, 2006
Immediate Buys
hyderabad industries....270.....target 330 by jan....12-15 months target 700 (bonus candidate too)
surya pharma....77....target 95-105 by jan......12-15 months target 200
ssi....180 right now.....250 by march....invest according to one risk appetite
super tex is on the move again.....keeep holding on to it....seems like things have finally started cooking into it
karur kcp...61......target 75 by jan
surya pharma....77....target 95-105 by jan......12-15 months target 200
ssi....180 right now.....250 by march....invest according to one risk appetite
super tex is on the move again.....keeep holding on to it....seems like things have finally started cooking into it
karur kcp...61......target 75 by jan
Friday, December 01, 2006
Confidence Petroleum can touch Rs 15...right now 6
Confidence Petroleum India in a penny stock because it’s Re 1 paid-up had it been a Rs 10 paid-up it wouldn’t have been a penny stock. It is into three business segments; they are into bottling up LPG cylinders, they make LPG cylinders and they also market LPG to commercial and industrial segment. Earlier this company was into very little business of bottling of LPG they have recently merged their privately closely held company into the listed company. On a consolidated basis this company made about Rs 18 crore of revenue and Rs 1 crore of profit last year on the merged basis."
Going forward the company is going to expand rapidly. Their LPG bottling business wherein they do the bottling for the PSU oil companies like HPCL, BPCL, IOC and they also do it for Reliance Industries that’s going to be more than double very shortly. They have about 22 operational LPG bottling plants, which we expect that will go to about 48 plant by the end of this year. They already have 38 plant now but 15-16 plant are currently not operational and they have ten more plant in the pipeline. They recently started one bottling plant for HPCL in Himachal Pradesh and they are setting up one more plant in Baddi again for HPCL
There will be more than 100% growth in this segment within this fiscal itself. They even have cylinder-manufacturing unit near Mumbai where they have about 600 cylinders per day, which they have already ramped-up to seven fold to about 4000 cylinders.
They have got an order of about Rs 47 crore in September from IOC and HPCL for cylinders. So that’s another segment where there will be an exponential growth. The third business segment which is a recent addition they have been doing very little of that business which is LPG marketing, there are lot of subsidies so that’s not the viable business for the private sector. But they have entered into commercial segment wherein they are procuring LPG from Reliance and they are distributing it in Maharashtra to Reliance bottlers as well as lot of commercial units, they supply both in cylinders and bulk. So that’s another segment
I expect that all these three business segments will contribute equally to their bottomline going forward. So the kind of ramp-up that we see in terms of revenues and earnings because of these developments - they have made Rs 1.1 crore of profit in FY06. In the first six months on a consolidated basis they made a profit of Rs 2 crore, in the second half I expect that they will do about Rs 6 crore of profit and the total revenue estimated this year would be around Rs 100 crore
"Next year i.e. FY08 they should do about Rs 180-190 crore in revenues and about Rs 30 crore in terms of bottomline. At, Rs 30 crore next year it will have an EPS of about Rs 1.5 and we have given a PE of around Rs 10 so, that sets a target of about Rs 15. The PE of Rs 10 is based mainly on a comparison with Everest Kanto and I have valued it at a discount of about 26% to Everest Kanto’s valuation. Given that there is a lot of difference in the product mix as well as the size, scale and the management."
I think that PE of Rs 10 is a reasonable for this company given the kind of growth etc. so I set a target of Rs 15, which might be just initial target because the company is also getting into CNG cylinder manufacturing, they have a plan to set-up a CNG plant, which I believe the construction will start sometime in January. So that will add to their revenues and growth from FY09 onwards. So none of the company is moving of their valuations so the valuation should also improve going forward. "
Going forward the company is going to expand rapidly. Their LPG bottling business wherein they do the bottling for the PSU oil companies like HPCL, BPCL, IOC and they also do it for Reliance Industries that’s going to be more than double very shortly. They have about 22 operational LPG bottling plants, which we expect that will go to about 48 plant by the end of this year. They already have 38 plant now but 15-16 plant are currently not operational and they have ten more plant in the pipeline. They recently started one bottling plant for HPCL in Himachal Pradesh and they are setting up one more plant in Baddi again for HPCL
There will be more than 100% growth in this segment within this fiscal itself. They even have cylinder-manufacturing unit near Mumbai where they have about 600 cylinders per day, which they have already ramped-up to seven fold to about 4000 cylinders.
They have got an order of about Rs 47 crore in September from IOC and HPCL for cylinders. So that’s another segment where there will be an exponential growth. The third business segment which is a recent addition they have been doing very little of that business which is LPG marketing, there are lot of subsidies so that’s not the viable business for the private sector. But they have entered into commercial segment wherein they are procuring LPG from Reliance and they are distributing it in Maharashtra to Reliance bottlers as well as lot of commercial units, they supply both in cylinders and bulk. So that’s another segment
I expect that all these three business segments will contribute equally to their bottomline going forward. So the kind of ramp-up that we see in terms of revenues and earnings because of these developments - they have made Rs 1.1 crore of profit in FY06. In the first six months on a consolidated basis they made a profit of Rs 2 crore, in the second half I expect that they will do about Rs 6 crore of profit and the total revenue estimated this year would be around Rs 100 crore
"Next year i.e. FY08 they should do about Rs 180-190 crore in revenues and about Rs 30 crore in terms of bottomline. At, Rs 30 crore next year it will have an EPS of about Rs 1.5 and we have given a PE of around Rs 10 so, that sets a target of about Rs 15. The PE of Rs 10 is based mainly on a comparison with Everest Kanto and I have valued it at a discount of about 26% to Everest Kanto’s valuation. Given that there is a lot of difference in the product mix as well as the size, scale and the management."
I think that PE of Rs 10 is a reasonable for this company given the kind of growth etc. so I set a target of Rs 15, which might be just initial target because the company is also getting into CNG cylinder manufacturing, they have a plan to set-up a CNG plant, which I believe the construction will start sometime in January. So that will add to their revenues and growth from FY09 onwards. So none of the company is moving of their valuations so the valuation should also improve going forward. "
Thursday, November 30, 2006
Close Tracks
one shld keep a eye on
HIRAN ORGOCHEM....currently arnd 100....private placement n pref allotment arnd 140.....news of right issue in the offering....100 acres of loand being developed at coimbatore....can fire in the near future...worth an investment
HYDERABAD INDUSTRIES....272....shld shld buy at dips arnd 250-260.....long term is good....target by sharekhan arnd 750...bonus candidate too
KEI INDUSTRIES....nice recovery seen frm 200 during correction to 430.....might touch it new highs if market r positive.....one shld boook some profit arnd 450-475-500 levels
MARKSAN PHARMA......one shld keepan eye on this counter.....worth picking up arnd 100-105 levels....right now 120...high of 302....stock might give superlative returns if holded with patience
ORCHID CHEMICALS....right now 208.....190 shld be kept as a stoploss....high of 400.....worth a chance for long term holders...quality play in pharma
HIRAN ORGOCHEM....currently arnd 100....private placement n pref allotment arnd 140.....news of right issue in the offering....100 acres of loand being developed at coimbatore....can fire in the near future...worth an investment
HYDERABAD INDUSTRIES....272....shld shld buy at dips arnd 250-260.....long term is good....target by sharekhan arnd 750...bonus candidate too
KEI INDUSTRIES....nice recovery seen frm 200 during correction to 430.....might touch it new highs if market r positive.....one shld boook some profit arnd 450-475-500 levels
MARKSAN PHARMA......one shld keepan eye on this counter.....worth picking up arnd 100-105 levels....right now 120...high of 302....stock might give superlative returns if holded with patience
ORCHID CHEMICALS....right now 208.....190 shld be kept as a stoploss....high of 400.....worth a chance for long term holders...quality play in pharma
Friday, November 17, 2006
Granules
“Granules India is gearing up to become a fully integrated pharmaceutical outsourcing manufacturer once its tableting facility becomes operational by the end of March 2007. Granules India operates on a strong and sustainable business model with the unique concept of manufacturing single and combinational pharmaceutical formulation ingredients, PFIs, the directly compressible granules for use in generic drugs which provides cost advantage to outsourcing players with reduced regulatory hassles.”
“The company is set to enhance margins by focusing on value added product mix by emphasizing more on high margin and high volume products. The firm is forward integrating into finished dosages and dossier fillings and it is backward integrating by creating additional capacities for some strategic active pharmaceutical ingredients, APIs like Naproxen and Aspirin.”
High margin PFIs- the key growth driver
“The United States Food and Drug Administration, USFDA approval for Metformin PFI, Pa
racetamol plant expansion and increased focus on regulated markets are the key growth drivers. Along with a US-based Amneal Pharmaceuticals LLC, it has received an approval for Metformin Hydrochloride tablets. This is the first time that the USFDA has approved an Abbreviated New Drug Application, ANDA with a PFI as the raw material.”
“The new paracetamol plant is getting fully operational by January 2007 which would contribute higher revenues for Q3&Q4 of FY2007. It is increasing its focus in regulated markets like US and Europe in PFIs segment by simultaneously harnessing marketing force in key markets like North America, Latin America, Brazil, Canada and UK.”
Backward and forward Integration - set to become fully integrated outsourcing player
“Granules India is further harness API business through recent acquisition with China-based Hubei Biocause Heilen Pharmaceutical Company (Biocause), the largest manufacturer and exporter of bulk Ibuprofen powder and tablets in China with a capacity to produce 3800 MT and 4 billion tablets per annum. It expects to derive revenues worth Rs 170 million and Rs 352 million in FY2007 & FY2008 respectively from this acquisition.”
“Commencement of 6 billion tableting facility in March 2007 should enable the company to capture the entire value chain and clock higher margins going forward.”
Transition from over-the-counter (OTC) ANDA to prescription generics segment- shifting towards high margin products
“It is in the process of increasing its presence in combination OTC segment and shifting towards combination prescription products in regulated markets. The company's margins are expected to expand on the back of higher realizations in combination products and prescriptions business and lower raw materials cost and savings in expenditure. The company is currently marketing Paracetamol PFI in the OTC space and is selling Ibuprofen, Metformin and Guaifensin in Latin American countries.”
Valuation
“As the company moves into higher value added prescription PFI and tableting revenues, we believe the company would get re-rated. Higher CAGR revenue growth of 48% for the next two years and CAGR profit growth of 67% for the next two years would re-rate the company. We however believe the company would have a higher critical size and access to direct marketers with a stronger product basket by FY 2008E. We, hence rate the stock as a Buy with a price target of Rs 150 based on 8x FY 2008E and a P/S of 0.53x.”
“The company is set to enhance margins by focusing on value added product mix by emphasizing more on high margin and high volume products. The firm is forward integrating into finished dosages and dossier fillings and it is backward integrating by creating additional capacities for some strategic active pharmaceutical ingredients, APIs like Naproxen and Aspirin.”
High margin PFIs- the key growth driver
“The United States Food and Drug Administration, USFDA approval for Metformin PFI, Pa
racetamol plant expansion and increased focus on regulated markets are the key growth drivers. Along with a US-based Amneal Pharmaceuticals LLC, it has received an approval for Metformin Hydrochloride tablets. This is the first time that the USFDA has approved an Abbreviated New Drug Application, ANDA with a PFI as the raw material.”
“The new paracetamol plant is getting fully operational by January 2007 which would contribute higher revenues for Q3&Q4 of FY2007. It is increasing its focus in regulated markets like US and Europe in PFIs segment by simultaneously harnessing marketing force in key markets like North America, Latin America, Brazil, Canada and UK.”
Backward and forward Integration - set to become fully integrated outsourcing player
“Granules India is further harness API business through recent acquisition with China-based Hubei Biocause Heilen Pharmaceutical Company (Biocause), the largest manufacturer and exporter of bulk Ibuprofen powder and tablets in China with a capacity to produce 3800 MT and 4 billion tablets per annum. It expects to derive revenues worth Rs 170 million and Rs 352 million in FY2007 & FY2008 respectively from this acquisition.”
“Commencement of 6 billion tableting facility in March 2007 should enable the company to capture the entire value chain and clock higher margins going forward.”
Transition from over-the-counter (OTC) ANDA to prescription generics segment- shifting towards high margin products
“It is in the process of increasing its presence in combination OTC segment and shifting towards combination prescription products in regulated markets. The company's margins are expected to expand on the back of higher realizations in combination products and prescriptions business and lower raw materials cost and savings in expenditure. The company is currently marketing Paracetamol PFI in the OTC space and is selling Ibuprofen, Metformin and Guaifensin in Latin American countries.”
Valuation
“As the company moves into higher value added prescription PFI and tableting revenues, we believe the company would get re-rated. Higher CAGR revenue growth of 48% for the next two years and CAGR profit growth of 67% for the next two years would re-rate the company. We however believe the company would have a higher critical size and access to direct marketers with a stronger product basket by FY 2008E. We, hence rate the stock as a Buy with a price target of Rs 150 based on 8x FY 2008E and a P/S of 0.53x.”
Wednesday, November 15, 2006
DCW UPDATES
DCW is currently trading at 11....10 culd be taken as a bottom according to me......risk level quiet low
The company is planning a capital expenditure plan of Rs 525 crore, aimed at expanding its capacities and using the by-products to augment its bottomline. These are expected to be implemented by March 2008 in stages beginning from September 2007.
Dr. S C Jain - Chairman and Managing Director said that the Company plans to change its Mercury Cells into Membrane Cells which will increase the production from 60,000 to 1,00,000 of Caustic Soda per annum. This will also reduce the consumption of electricity by over 30%, thus increasing the profitability substantially.
The Company also plans to increase its Synthetic Rutile production from 30,000 tons to 60,000 tons. To reduce the cost of power and steam, a new Captive Thermal Plant of 50MW capacity and 70 tons of extra steam is under erection.With the completion of the above, the profitability of the Company will go to up substantially from the present level of Rs 50 crores.
To gainfully utilize its effluent, a new Iron Oxide Plant to produce Yellow, Red and Black grades is being put up. This will be done either in-house or with JV with a foreign Company of repute in this field. The capex for this project is estimated at Rs 125 crores. Profitability is estimated at Rs 30 crores per annum and may go on stream by November- December 2007.
He also said that the Company's capital expenditure plan includes a Rs 150 crores FCCB offering over the next 18 months through very wellknown overseas merchant banker and long term loan from consortium of banks led by SBI.
The Rs 700 crores, Company has also decided to double its Soda Ash capacity from 1,00,000 to 2,00,000 tonnes with an investment of Rs 200 crores and a technical feasibility study has been conducted by the Dutch company Akzo and Humphrey and Glasgow will do the detailed engineering.
This Plant should be operational by end 2008. This project will increase the profit by Rs 40-45 crores per annum.With regard to companies PVC manufacturing activity it may look at options to enhance shareholders value
seems like multibagger to me for long term holders
The company is planning a capital expenditure plan of Rs 525 crore, aimed at expanding its capacities and using the by-products to augment its bottomline. These are expected to be implemented by March 2008 in stages beginning from September 2007.
Dr. S C Jain - Chairman and Managing Director said that the Company plans to change its Mercury Cells into Membrane Cells which will increase the production from 60,000 to 1,00,000 of Caustic Soda per annum. This will also reduce the consumption of electricity by over 30%, thus increasing the profitability substantially.
The Company also plans to increase its Synthetic Rutile production from 30,000 tons to 60,000 tons. To reduce the cost of power and steam, a new Captive Thermal Plant of 50MW capacity and 70 tons of extra steam is under erection.With the completion of the above, the profitability of the Company will go to up substantially from the present level of Rs 50 crores.
To gainfully utilize its effluent, a new Iron Oxide Plant to produce Yellow, Red and Black grades is being put up. This will be done either in-house or with JV with a foreign Company of repute in this field. The capex for this project is estimated at Rs 125 crores. Profitability is estimated at Rs 30 crores per annum and may go on stream by November- December 2007.
He also said that the Company's capital expenditure plan includes a Rs 150 crores FCCB offering over the next 18 months through very wellknown overseas merchant banker and long term loan from consortium of banks led by SBI.
The Rs 700 crores, Company has also decided to double its Soda Ash capacity from 1,00,000 to 2,00,000 tonnes with an investment of Rs 200 crores and a technical feasibility study has been conducted by the Dutch company Akzo and Humphrey and Glasgow will do the detailed engineering.
This Plant should be operational by end 2008. This project will increase the profit by Rs 40-45 crores per annum.With regard to companies PVC manufacturing activity it may look at options to enhance shareholders value
seems like multibagger to me for long term holders
Friday, November 10, 2006
Revathi Equipments
Revathi Equipments Ltd. (REL) was established in 1977 and promoted by Drill Pvt. Ltd. in collaboration with Chicago Pneumatic Tool Company of USA (CP Tools) for the manufacture of water well rigs, blast hole rigs, drilling accessories and allied products. In 1987, CP Tools was taken over by Atlas Copco worldwide on account of which the REL became a part of Atlas Copco. In 2002, Utkal Investments led by Mr. Abhishek Dalmia bought out Atlas Copco's stake (40%) and gained full management control over REL with a 60% holding in the company as on date. This Renaissance group company has three business segments viz. construction & mining equipments, power generation and treasury. It's an ISO 9001:2000 certified company and its products are exported to USA, Jordan, Tunisia, Nigeria, South Africa, Australia etc.
Presently, REL holds about 45% market share in the domestic mining equipment market with the likes of Tata Steel, Coal India, Nalco, Hindalco and Gujarat Ambuja as its clients. It produces drills ranging from 4" to 12 ¼" which more or less covers the entire gamut of mined ores including coal, lignite, iron ore, bauxite, limestone, zinc, etc. But REL's main growth driver in future will be its construction equipment division which comprises batching plants, transit mixers and concrete pumps.
In combination, they mix various aggregates with cement to produce concrete, transport such ready-mix concrete (RMC) from a central batching location to the construction site and pump the RMC to the exact location where it is to be poured. For the power generation equipment, it has made a huge investment of around Rs.52 cr. in wind energy and has installed wind turbines having capacity of 2.4 MW in Rajasthan and 8.75 MW in Tamil Nadu. It has also invested around Rs.5 cr. in a 25 MW gas-based power project in Tamil Nadu. Given the managements background of being large equity investors over many years, REL also has a treasury division that invests surplus funds into the secondary market to generate better returns. Over a period of time, it's possible that promoters may convert REL into a holding company and route strategic and non-strategic investments through it.
Financially as well as fundamentally, REL is quite strong with Sales of Rs.91 cr. and net profit of \nRs.16.75 cr. posting an EPS of Rs.52 on its very tiny equity of Rs.3.21 cr. for FY06. Recently, after hitting a high of Rs.1214, its share price crashed below Rs.600, which prompted the management to announce a buy-back at \nRs.700 from the open market and it created a corpus of Rs.10 cr. for the same. For FY07, it may clock a turnover of little more than Rs.100 cr. with net profit of around Rs.18 cr. leading to an EPS of Rs.56. For FY08, it has the potential to report EPS of more than \nRs.70. Investors are, therefore strongly recommended to buy it at current levels with a price target of Rs.800 (30% appreciation) in 9-12 months. In the long-term of 24-36 months, it can break its earlier high of Rs.1200, which would mean 100% return from the current level.
Presently, REL holds about 45% market share in the domestic mining equipment market with the likes of Tata Steel, Coal India, Nalco, Hindalco and Gujarat Ambuja as its clients. It produces drills ranging from 4" to 12 ¼" which more or less covers the entire gamut of mined ores including coal, lignite, iron ore, bauxite, limestone, zinc, etc. But REL's main growth driver in future will be its construction equipment division which comprises batching plants, transit mixers and concrete pumps.
In combination, they mix various aggregates with cement to produce concrete, transport such ready-mix concrete (RMC) from a central batching location to the construction site and pump the RMC to the exact location where it is to be poured. For the power generation equipment, it has made a huge investment of around Rs.52 cr. in wind energy and has installed wind turbines having capacity of 2.4 MW in Rajasthan and 8.75 MW in Tamil Nadu. It has also invested around Rs.5 cr. in a 25 MW gas-based power project in Tamil Nadu. Given the managements background of being large equity investors over many years, REL also has a treasury division that invests surplus funds into the secondary market to generate better returns. Over a period of time, it's possible that promoters may convert REL into a holding company and route strategic and non-strategic investments through it.
Financially as well as fundamentally, REL is quite strong with Sales of Rs.91 cr. and net profit of \nRs.16.75 cr. posting an EPS of Rs.52 on its very tiny equity of Rs.3.21 cr. for FY06. Recently, after hitting a high of Rs.1214, its share price crashed below Rs.600, which prompted the management to announce a buy-back at \nRs.700 from the open market and it created a corpus of Rs.10 cr. for the same. For FY07, it may clock a turnover of little more than Rs.100 cr. with net profit of around Rs.18 cr. leading to an EPS of Rs.56. For FY08, it has the potential to report EPS of more than \nRs.70. Investors are, therefore strongly recommended to buy it at current levels with a price target of Rs.800 (30% appreciation) in 9-12 months. In the long-term of 24-36 months, it can break its earlier high of Rs.1200, which would mean 100% return from the current level.
SE Asiamarine n ABC bearing
The South East Asia Marine Engineering & Construction Company is a multinational company. It is an arm of TECHNIP of France, which is into engineering and construction for under water projects. It is one of the leading companies in the world. South East Asia Marine is a 78% subsidiary here in India. The company owns four multi support vessels, which are used in these kinds of activities.
Right now South East Asia Marine is not undertaking these kind of projects, but it is charter hiring these multi support vessels to other companies. With charter rates being very strong, the performance of the company in the current year is quite strong.
The operating margins of the company in the current year are already up and they are close to 60%, whereas the net profit margins are close to 50%. Its year-end is December and for the half-year the company's profits are around Rs 32 crore on equity of Rs 33 crore.
The second half should be equally good and therefore the EPS for the year-end December 2006 is likely to be close to around Rs 18-Rs 20.
The company has acquired one more vessel in the current year in June, which is yet to be deployed. It could be deployed in the fourth quarter. So in the fourth quarter the earnings or the profits could also increase.
Plus for the next year the revenue and profits will be much better compared to this year due to the rising charter higher prices as well as addition of one ship to its portfolio. The company is a zero debt company, so it is available at a very reasonable valuation.
Q: On Rs 20 EPS would you give it about 8.5 times PE one year forward? How would that stalk up with the other players in the sector and what sort of a price target are you watching out for this one?
A: The company should have at least a PE of 15 if not more. Going by that and going by the fact that for December '06 its earnings should be close to Rs 18. After one year in December '07 the earnings should be close to Rs 22-Rs 24. So in that case the prices should be close to Rs 300 or more than that.
Q: ABC Bearings is another counter that you like. Apparently you are looking at their second half earnings for '07 to be very strong. What are the drivers essentially that you would be watching out for this one and a target price?
A: ABC Bearings is actually making the taper rollers and cylindrical bearings for commercial vehicles, heavy commercial vehicles and the tractor industry. Of late, the demand in this segment is improving significantly.
The company is doing very well. Even last year the company did very well. Its EPS was around Rs 13. In the current year, in the first quarter the company's performance was significantly better.
For the full year, we expect the net profit to be close to Rs 22-Rs24 crore given the earnings of around Rs 20-Rs 22. So at the current price of Rs 150 it is still available close to 7-8 P/E. Going by the outlook for the auto industry and engineering industry the outlook and the potential for the bearing industry is very good and therefore this stock, which is available at 7-8 P/E is very attractive
Right now South East Asia Marine is not undertaking these kind of projects, but it is charter hiring these multi support vessels to other companies. With charter rates being very strong, the performance of the company in the current year is quite strong.
The operating margins of the company in the current year are already up and they are close to 60%, whereas the net profit margins are close to 50%. Its year-end is December and for the half-year the company's profits are around Rs 32 crore on equity of Rs 33 crore.
The second half should be equally good and therefore the EPS for the year-end December 2006 is likely to be close to around Rs 18-Rs 20.
The company has acquired one more vessel in the current year in June, which is yet to be deployed. It could be deployed in the fourth quarter. So in the fourth quarter the earnings or the profits could also increase.
Plus for the next year the revenue and profits will be much better compared to this year due to the rising charter higher prices as well as addition of one ship to its portfolio. The company is a zero debt company, so it is available at a very reasonable valuation.
Q: On Rs 20 EPS would you give it about 8.5 times PE one year forward? How would that stalk up with the other players in the sector and what sort of a price target are you watching out for this one?
A: The company should have at least a PE of 15 if not more. Going by that and going by the fact that for December '06 its earnings should be close to Rs 18. After one year in December '07 the earnings should be close to Rs 22-Rs 24. So in that case the prices should be close to Rs 300 or more than that.
Q: ABC Bearings is another counter that you like. Apparently you are looking at their second half earnings for '07 to be very strong. What are the drivers essentially that you would be watching out for this one and a target price?
A: ABC Bearings is actually making the taper rollers and cylindrical bearings for commercial vehicles, heavy commercial vehicles and the tractor industry. Of late, the demand in this segment is improving significantly.
The company is doing very well. Even last year the company did very well. Its EPS was around Rs 13. In the current year, in the first quarter the company's performance was significantly better.
For the full year, we expect the net profit to be close to Rs 22-Rs24 crore given the earnings of around Rs 20-Rs 22. So at the current price of Rs 150 it is still available close to 7-8 P/E. Going by the outlook for the auto industry and engineering industry the outlook and the potential for the bearing industry is very good and therefore this stock, which is available at 7-8 P/E is very attractive
Ansal Housing-Emerging Township Developer
Ansal Housing is focused on township development in Tier-II and III cities. Having a strong reputation in North India, they want to capitalise on it by building premier townships offering good infrastructure and amenities on the outskirts of congested Tier II and III towns.
Ansal Housing trades at a discount to the value of its land bank. Investors need to note that while valuing Ansal Housing we have considered only the current realizable value of land not the project cash flows as part of the same. This will likely provide upside risk to land bank values.
Growth Plans
Ansal Housing plans to start building townships initially in Agra, Indore, Jammu, Rewari, Karnal, Meerut and Ghaziabad. Expenditure of more than INR 1 bn is expected to execute the current projects. This will be funded from equity issuance and the raising debt.
Ansal Housing is a North India based real estate developer. It holds 1,400 acres of land across various tier II cities in North India, currently valued at more than INR 7 bn. Ansal Housing is targeting township development in the cities of UP, Haryana, and Punjab, where it has acquired cheap land at historical costs.
At the CMP of INR 202, the company has a market cap of INR 3.4 bn on fully diluted 16.8 mn shares. The company currently trades at 64% (EV) to land bank. There seem to be substantially large potential upsides to the NAV.
Background
Ansal Housing is amongst the few real estate developers with a pan-India foothold, being present in North, South, and West India. It has projects under development\n in Mumbai, Bangalore, and the National Capital Region (NCR) and has plans for expanding its presence in tier II cities. The company has a strong brand name in North India, it’s major developments include townships like Aashiana in Lucknow, Golf Links -I & II in Greater Noida, and Chiranjiv Vihar and Avantika in Ghaziabad.
Business strategy
The company follows the township development model in tier II cities. It acquires land at low cost on the outskirts of a city and converts it into a residential township over a three-four year period. In a township, roughly 45-46% of the land is lost in plotting (to develop basic infrastructure), of the remaining land, 70% is sold as plots and the remaining as houses or commercial properties depending on the demand and stage of development of the township.
Usually Ansal Housing is amongst the first movers into a city and hence, it is able to capture the pent-up demand of people looking to move from congested localities within the city to the outskirts, into premium houses providing the basic\n infrastructure and amenities.
Land bank
Ansal Housing has a land bank of 1,400 acres at a market value of more than INR 7 bn. The company currently has many upcoming projects in three states of Rajasthan, Haryana, and Uttar Pradesh. It is planning townships initially in Agra, Indore, Jammu, Rewari, Karnal,Meerut, and Ghaziabad.
The company also has a Honda car showroom spread over 80,000 sq ft in Ghaziabad, and ongoing construction of another 2 mn sq ft. It also has a small hospitality business which includes clubs, banquet facilities and restaurants.
Financials and valuations
In FY06, Ansal Housing reported sales of INR 1.3 bn, up 37% compared to INR 0.9 bn in FY05. EBITDA margins improved from 20% in FY05 to 27% in FY06. The company reported FY06 EBITDA of INR 341 mn, up 85%, and FY06 PAT at INR 206 mn was up
Funding
Promoters currently hold 45% of the equity and another 10-12% is held by mutual funds and FIIs, and the remaining is with the public. Given the expenditure of more than INR 1 bn lined up to execute current projects, the company is likely to raise around 70% of the requirement from equity issuance and the remaining from debt.
Outlook
A positive bias becomes essential, given the discount to the asset value of the company. The current value of assets is ~ INR 7 bn and at the CMP of INR 202, the company has a market cap of INR 3.4 bn on fully diluted 16.8 mn number of shares. The company currently trades at 64 per cent EV to land bank, there lies substantial potential upsides to the NAV.
Manugraph India
Manugraph India Limited (MIL) is a strong growth and value play and has created a strong focused niche in the Offset Web Printing Machinery Equipment space finding applications mainly in newspaper printing segment. MIL's major competitive advantage is its excellent product line up and customized solutions approach, long standing relationships with large customers, excellent quality and technical credentials and adequate management bandwidth. With an expected CAGR of 23% in net profits over FY06-FY08E, we expect ROCE and ROE levels to remain healthy at 67% and 49% respectively as on FY07E.
Investment Rationale
Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.
Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.
Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.
Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.
Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date. What is more noteworthy to know is that having developed strong technical skill sets in its product domain, the price differential enjoyed by Manugraph is significantly high as compared to other global players like Heidelberg and Man-Roland, which have large business presence across the European and USA markets. Hence going ahead outsourcing opportunities can throw open a large business opportunity for Manugraph.
Large free cash generation ahead –Manugraph has moderate capex lined up over the next two years. Barring further reduction in residual debt in FY07E and further gains from tight working capital management, we expect it to generate free cash flow of Rs724.3mn over next two years. The build of cash in the balance sheet by Mar08 would result in a cash Investments balance of Rs820.3mn,equal to (Rs.27per share - FV: Rs.2).
Manugraph has earned a healthy 79% ROCE and 61% ROE in FY06A largely due to a healthy volume growth, significant improvement in ATO levels and reducing the working capital cycle. This is amply reflected from the fact that Manugraph has expanded its EBIDTA margins from
Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date.
During Q1FY07A Manugraph has reported a 19% increase in revenues totaling Rs1.03bn with EBIDTA growth being 12% YoY totaling Rs247.6mn with EBIDTA margins of 24% followed by a 15% rise in the net profit at Rs 172.9mn.
Risks & Concerns –
Any significant downturn in Manugraph's customers namely the domestic Newspaper segment could impact MIL's earnings negatively.
Valuation –
With an EPS CAGR growth of 23% estimated over FY06-08E, coming on the back of a 21% CAGR in the topline, and attractive ROE and ROCE levels of 67% & 49% on FY07E, and a EV/EBIDTA of 7x FY07E and 5x FY08E makes me believe that the present valuations of 10x FY07E and 8x FY08E look extremely attractive
Investment Rationale
Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.
Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.
Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.
Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.
Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date. What is more noteworthy to know is that having developed strong technical skill sets in its product domain, the price differential enjoyed by Manugraph is significantly high as compared to other global players like Heidelberg and Man-Roland, which have large business presence across the European and USA markets. Hence going ahead outsourcing opportunities can throw open a large business opportunity for Manugraph.
Large free cash generation ahead –Manugraph has moderate capex lined up over the next two years. Barring further reduction in residual debt in FY07E and further gains from tight working capital management, we expect it to generate free cash flow of Rs724.3mn over next two years. The build of cash in the balance sheet by Mar08 would result in a cash Investments balance of Rs820.3mn,equal to (Rs.27per share - FV: Rs.2).
Manugraph has earned a healthy 79% ROCE and 61% ROE in FY06A largely due to a healthy volume growth, significant improvement in ATO levels and reducing the working capital cycle. This is amply reflected from the fact that Manugraph has expanded its EBIDTA margins from
Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date.
During Q1FY07A Manugraph has reported a 19% increase in revenues totaling Rs1.03bn with EBIDTA growth being 12% YoY totaling Rs247.6mn with EBIDTA margins of 24% followed by a 15% rise in the net profit at Rs 172.9mn.
Risks & Concerns –
Any significant downturn in Manugraph's customers namely the domestic Newspaper segment could impact MIL's earnings negatively.
Valuation –
With an EPS CAGR growth of 23% estimated over FY06-08E, coming on the back of a 21% CAGR in the topline, and attractive ROE and ROCE levels of 67% & 49% on FY07E, and a EV/EBIDTA of 7x FY07E and 5x FY08E makes me believe that the present valuations of 10x FY07E and 8x FY08E look extremely attractive
ABC Bearings-Smooth Tapered Bearings
ABC Bearings-Smooth Rolling
BSE 505665, CMP Rs 165
Shares o/s: 11.5 mn
EPS FY06: Rs 13.6
EPS FY07 e: Rs 18
PE on FY06 : 12.5
PE on FY07 e earnings: 9
ABC bearing’s 1QFY07 net sales grew by 31% YoY to Rs 56 crore. Ramp up in sales was mainly due to strong growth in all the serviced segments viz cars (including a resurgence in supplies for the Toyota models like Innova), commercial vehicles and the tractors segment. Higher volume growth also became possible as additional capacities created in Q4 FY06 at Bharuch began to contribute to the top and bottomline.
During the first quarter of FY07 ABC has grown to become the Number 1 in India for Automotive Tapered Roller Bearings.
With capacity expansions in place, ABC is likely to consolidate its position by showing much higher growth than the industry growth in the current financial.
ABC continues to focus on achieving the growth in profitability through continuous cost reduction measures, Kaizen, OEE improvement and optimum utilisation of resources.
While ABC continues to remain strong in the OE business, the after market segment has shown substantial growth as a result of increased dealer network and improved services. The proof lies in the numbers Q1 Revenues were placed at Rs 56 crore (Rs 42 crore), with after tax profits at Rs 5.3 crore (Rs 3.5 crore). Q1 EPS rose to Rs 4.7 (Rs 3). These numbers compare favourably with FY 06 Revenues of Rs 176 crore (Rs 149 crore), PAT of Rs 15.7 crore (Rs 11.5 crore) and EPS of Rs 13.6 (Rs 9.98).
Outlook and valuations
The outlook for the auto ancillary sector remains buoyant. ABC Bearings with its strong technical collaboration with NSK Japan is well positioned to leverage global opportunities and improve its competitiveness in the domestic automobile market. With robust performance from the company and better outlook going forward Revenues are expected to cross the Rs 210 crore mark in FY07, with after tax profits closer to the Rs 21 crore mark.
At the current market price of Rs170, the stock trades at 12.5x and 9.0x earnings FY06A and FY07E respectively.
The stock could attain a price target of Rs 225 in a year.
BSE 505665, CMP Rs 165
Shares o/s: 11.5 mn
EPS FY06: Rs 13.6
EPS FY07 e: Rs 18
PE on FY06 : 12.5
PE on FY07 e earnings: 9
ABC bearing’s 1QFY07 net sales grew by 31% YoY to Rs 56 crore. Ramp up in sales was mainly due to strong growth in all the serviced segments viz cars (including a resurgence in supplies for the Toyota models like Innova), commercial vehicles and the tractors segment. Higher volume growth also became possible as additional capacities created in Q4 FY06 at Bharuch began to contribute to the top and bottomline.
During the first quarter of FY07 ABC has grown to become the Number 1 in India for Automotive Tapered Roller Bearings.
With capacity expansions in place, ABC is likely to consolidate its position by showing much higher growth than the industry growth in the current financial.
ABC continues to focus on achieving the growth in profitability through continuous cost reduction measures, Kaizen, OEE improvement and optimum utilisation of resources.
While ABC continues to remain strong in the OE business, the after market segment has shown substantial growth as a result of increased dealer network and improved services. The proof lies in the numbers Q1 Revenues were placed at Rs 56 crore (Rs 42 crore), with after tax profits at Rs 5.3 crore (Rs 3.5 crore). Q1 EPS rose to Rs 4.7 (Rs 3). These numbers compare favourably with FY 06 Revenues of Rs 176 crore (Rs 149 crore), PAT of Rs 15.7 crore (Rs 11.5 crore) and EPS of Rs 13.6 (Rs 9.98).
Outlook and valuations
The outlook for the auto ancillary sector remains buoyant. ABC Bearings with its strong technical collaboration with NSK Japan is well positioned to leverage global opportunities and improve its competitiveness in the domestic automobile market. With robust performance from the company and better outlook going forward Revenues are expected to cross the Rs 210 crore mark in FY07, with after tax profits closer to the Rs 21 crore mark.
At the current market price of Rs170, the stock trades at 12.5x and 9.0x earnings FY06A and FY07E respectively.
The stock could attain a price target of Rs 225 in a year.
Aarvee Denim - Redifine Business Strategy
Aarvee Denims and Exports Ltd, India's second largest manufacturer of denim fabric is on a drive to re-define its business strategy by focusing on non-denims and garments, reducing its dependency on denims in the process.
The company is also in talks with international retail majors like JC Penney and Wal-Mart for exporting garments.
The denim market has been sluggish due excess supply and falling demand for exports this year. In a bid to focus on newer segments, the company has planned a 25,000 per day manufacturing facility at an investment of Rs 100 crore to be operational by March 2007.
At present, 75 per cent of the company's revenues are from denims while the rest comes from non-denims and garments. With the focus shifting firmly to the later, post expansion, the company expects revenues from denims to fall to 40 per cent, while that from non-denims and garments are expected to rise to around 40 per cent and 20 per cent respectively.
The change in strategy has come about due to the stagnant denim market as well as the rising demand for non-denims and garments in the export markets,said Vinod Arora, CMD, Aarvee Denims and Exports Ltd.
Of its total monthly production of 75,000 garments, the company supplies 50 per cent to Pantaloons and the rest is used for Aden, its garment brand which has been available in Gujarat and north India.
In a phased expansion plan, the company is set to ramp up its production facility to cater to retail chains that have made orders of 50,000 garments per day.
At present, we are catering only to Pantaloons B.A.R.E brand but if we can increase our production we might even start supplying to the other five-six brands that Pantaloon owns as well as other retail chains, said Ashish Shah, MD, Aarvee denims and exports.
The company is also in talks with international retail majors like JC Penney and Wal-Mart for exporting garments.
The denim market has been sluggish due excess supply and falling demand for exports this year. In a bid to focus on newer segments, the company has planned a 25,000 per day manufacturing facility at an investment of Rs 100 crore to be operational by March 2007.
At present, 75 per cent of the company's revenues are from denims while the rest comes from non-denims and garments. With the focus shifting firmly to the later, post expansion, the company expects revenues from denims to fall to 40 per cent, while that from non-denims and garments are expected to rise to around 40 per cent and 20 per cent respectively.
The change in strategy has come about due to the stagnant denim market as well as the rising demand for non-denims and garments in the export markets,said Vinod Arora, CMD, Aarvee Denims and Exports Ltd.
Of its total monthly production of 75,000 garments, the company supplies 50 per cent to Pantaloons and the rest is used for Aden, its garment brand which has been available in Gujarat and north India.
In a phased expansion plan, the company is set to ramp up its production facility to cater to retail chains that have made orders of 50,000 garments per day.
At present, we are catering only to Pantaloons B.A.R.E brand but if we can increase our production we might even start supplying to the other five-six brands that Pantaloon owns as well as other retail chains, said Ashish Shah, MD, Aarvee denims and exports.
Thursday, November 09, 2006
JP Associates
Ketan Karani of Kotak Securities feels that Jaiprakash Associates, innext one and a half years, could be a multi-bagger story. It has atarget of Rs 750.Karani told CNBC-TV18, "Jaiprakash Associates is the biggest story inthe entire infrastructure space in this country. Not many peoplerealise what kind of consolidate company JP Associate is, so wouldlike to break it down for you. It is a 7 million tonne cement company,which is expanding to 13 million tonne. So by December 07, the companywill become 13 million tonne. It is putting up another 2 million withSAIL as part of its joint venture partner where it has 75%. So net-netit will become a 15 million tonne cement company by December 07."He further added, "It is the largest EPC (Engineering, Procurement andConstruction) contractor in the hydroelectric power space and webelieve that it is the largest and one of the best in the country.Around Rs 11,000-12,000 crore (Rs 110-120 billion) worth of orders arepending with it.""It has three power subsidiaries. If one takes a consolidated viewthis company would add around Rs 65 to JPs valuation per share. Butthe biggest sweetener lies in JPs Taj Expressway project. This projectcould become one of the largest property stories in the country also.We believe that the Taj Expressway Project, which is 160 km expresswayproject. It is to be built by JP from Agra to Noida. They have a rightto collect toll for 36 years. But the biggest story in the JP lies inthe 6000 acre of land, which has been allotted to them to develop thisproject. So the BOT project, which JP is doing, is going to getrevenue for 36 years from operating the highway.""But the biggest windfall for JP will come from the point of 6,000
is a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."Disclosure: We have discussed the whole host of sectoral plays andstocks, definitely we have advised our clients to be in all the stocksand some of the stocks would be in our personal family portfolio, sowe would be having some vested interest as far as disclosures areconcerned.--~--~---------~--~----~------------~-------~--~----~link for joining google grouphttp://groups.google.co.in",1]
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acres of developmental land, which has been given to this company. Itis a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."
is a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."Disclosure: We have discussed the whole host of sectoral plays andstocks, definitely we have advised our clients to be in all the stocksand some of the stocks would be in our personal family portfolio, sowe would be having some vested interest as far as disclosures areconcerned.--~--~---------~--~----~------------~-------~--~----~link for joining google grouphttp://groups.google.co.in",1]
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acres of developmental land, which has been given to this company. Itis a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."
surya laxmi updates
The Rs 600-crore Shri Lakshmi Cotsyn Ltd is bucking the general trend of the textile industry by moving from synthetics to cotton, taking advantage of the growth opportunities, both domestic and foreign, afforded by the natural fibre.
Disclosing this to Business Line here, the Chairman and Managing Director of the Kanpur-based Shri Lakshmi Cotsyn Ltd, Mr M.P. Agarwal, said after mastering into technical textile fabrics for industrial and institutional segments, the company is entering the individual home segment with terry towels, home furnishing, denim fabrics, garments and bottom weight fabrics.
He said his company has capacity to produce 3,000 tonnes per annum of 100 per cent cotton terry towels.
The company has undertaken a Rs 264-crore expansion programme recently and commercial production would begin from the expanded capacity by December in all product portfolios such as denim, bottom weight fabrics, bed-sheets and terry towels. The company is putting a 1,500-tonne-yarn processing plant for captive consumption.
Mr Agarwal said the first quarter results (July-September) of 2006 were announced at the company's board meeting held here on October 30. Against Rs 81.92 crore sales of 2005 first quarter, the company's sales during the current year's first quarter grew 20 per cent to Rs 98.52 crore, exports by 17 per cent and profit after tax to Rs
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09. \nMr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE. \nBullish on exports \n\nExplaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers\' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability. \n\n\n\n\n\nHe said as India\'s share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets. \nCurrently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments. \nOnce the company\'s nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up. \n\n\n\n© The Hindu Business Line",1]
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5.10 crore (Rs 4.02 crore). He said the company's turnover in fiscal year ending June 30, 2006 touched Rs 360 crore.
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09.
Mr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE.
Bullish on exports
Explaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability.
He said as India's share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets.
Currently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments.
Once the company's nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up
Disclosing this to Business Line here, the Chairman and Managing Director of the Kanpur-based Shri Lakshmi Cotsyn Ltd, Mr M.P. Agarwal, said after mastering into technical textile fabrics for industrial and institutional segments, the company is entering the individual home segment with terry towels, home furnishing, denim fabrics, garments and bottom weight fabrics.
He said his company has capacity to produce 3,000 tonnes per annum of 100 per cent cotton terry towels.
The company has undertaken a Rs 264-crore expansion programme recently and commercial production would begin from the expanded capacity by December in all product portfolios such as denim, bottom weight fabrics, bed-sheets and terry towels. The company is putting a 1,500-tonne-yarn processing plant for captive consumption.
Mr Agarwal said the first quarter results (July-September) of 2006 were announced at the company's board meeting held here on October 30. Against Rs 81.92 crore sales of 2005 first quarter, the company's sales during the current year's first quarter grew 20 per cent to Rs 98.52 crore, exports by 17 per cent and profit after tax to Rs
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09. \nMr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE. \nBullish on exports \n\nExplaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers\' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability. \n\n\n\n\n\nHe said as India\'s share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets. \nCurrently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments. \nOnce the company\'s nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up. \n\n\n\n© The Hindu Business Line",1]
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//-->
5.10 crore (Rs 4.02 crore). He said the company's turnover in fiscal year ending June 30, 2006 touched Rs 360 crore.
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09.
Mr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE.
Bullish on exports
Explaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability.
He said as India's share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets.
Currently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments.
Once the company's nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up
PICKS OF THE LOT
following are the companies which looks interesting to me..... i dont have any stake currently but will be buying soon as market shows a correction
perfect time to start tracking according to me
Company name: ABC bearing
Price: 162
EPS: 9...annual 18
Promoter holding: 25
Mutual n FII: 11
Public: 25
NRI….25
Sales n Profit
2004 110...6.2
2005 149…11.52
2006 176….15.7
Capital 11 crs…reserves 16
Support at 110
Company name: Ansal Housing
Price: 283
EPS: 20
Promoter holding: 40%
Mutual n FII: 7%
Public: 25%
Corp : 25%
Sales n Profit
2004 69.3 3
2005 79.7 6
2006 125.4 20.5
Capital 14 crs…..reserves 72 crs
Support at 250…..200
Company name: Amtek India
Price: 166
EPS: 15
Promoter holding: 53%
Mutual n FII: 30%
Public: 13%
Corp : 4%
Sales n Profit
2004 207 21
2005 280 30
2006 472 66.2
Capital 12 crs
Support at 140…..110
Company name: Birla Corp
Price: 337
EPS: 32
Promoter holding: 63%
Mutual n FII: 20%
Public: 9%
Corp : 7%
Sales n Profit
2004 1243 41.5
2005 1342 86.8
2006 1433 125.7
Capital 77 crs…..reserves 300 crs
Support at 275…..250
Company name: Elecon engg (stock split valuation)
Price: 308
EPS: 15
Promoter holding: 42%
Mutual n FII: 20%
Public: 30%
Corp : 7%
Sales n Profit
2004 160 2.16
2005 277 10
2006 442 31
Capital 5.7 crs…..reserves 97 crs
Support at 250…..200
Company name: Gateway Dist
Price: 175
EPS: 8
Promoter holding: 50%
Mutual n FII: 38%
Public: 6%
Corp : 6%
Sales n Profit
2005 93 34
2006 130 72
Capital 92 crs
Support at 150
Company name: Graphite India
Price: 309
EPS: 40
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2004 549 51
2005 546 48
2006 650 62
Capital 29 crs…..reserves 424 crs
Support at 250…..225
Company name: GM BREW
Price: 138
EPS: 13
Company name: Godawari power
Price: 87
EPS: 20
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2006 270 22.5
Support at 85…..70
Company name: Marksans pharm
Price: 103
EPS: 6
Promoter holding: 48%
Mutual n FII: 34%
Public: 8%
Corp : 8%
Sales n Profit
2004 80 4.5
2005 144 15
2006 292 23
Support at 100
Company name: S kumars Nationwide
Price: 77
EPS: 6.5
Promoter holding: 52.67%
Mutual n FII: 26%
Public: 6%
Corp : 14%
Sales n Profit
2005 344.5 9.1
2006 890 100
Capital 5.7 crs…..reserves 97 crs
Support at 60…..50
Company name: Rajesh Exports
Price: 239
EPS: 25
Promoter holding: 61%
Mutual n FII: 12.13%
Public: 19%
Corp : 8%
Sales n Profit
2004 3050 27.3
2005 4247 43
2006 5482 66.54
Capital 7.39 crs…..reserves 228 crs
Support at 200…..175
Company name: Prajay engg
Price: 270
EPS: 20
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 17.76 .77
2005 23.26 4.45
2006 73 22.7
Capital 14 crs…..reserves 72 crs
Support at 200….175
The company is doing well…the only concern is the decreasing promoters stake…good thing is all well note FIIS have stake against it….another concern is the promoters were issued shares against warrant at 175
Company name: SE Asia marine
Price: 175
EPS: 20
Promoter holding: 78%
Mutual n FII: 5.21%
Public: 11%
Corp : 5%
Sales n Profit
2004 96 30.6
2005 82 18
2006 last quarter fucked up
support at 150
Company name: Orient Ceramics
Price: 130
EPS: 25
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 110 2
2005 120 3.5
2006 140 4.3
Capital 4.68 crs…..reserves 31 crs
Support at 100….80
Company name: Nitco tiles
Price: 200
EPS: 15
Promoter holding: 48%
Mutual n FII: 23%
Public: 10%
Corp : 13%
Sales n Profit
2006 275 20
Capital 22 crs…..reserves 235 crs
Support at 200….175
Company name: Nectar Lifescience
Price: 152
EPS: 25
Promoter holding: 66%
Mutual n FII: 8.67%
Public: 14%
Corp : 11%
Sales n Profit
2006 287 25
Capital 14.8 crs…..reserves 158 crs
Support at 130-120
Company name: Mahindra Ugine
Price: 127
EPS: 15
Promoter holding: 56%
Mutual n FII: 22.5%
Public: 4%
Corp : 13%
Sales n Profit
Sales n Profit
2004 412.5 6
2005 587 48
2006 738 65
Capital 32 crs…..reserves 110 crs
Support at 110….100
Company name: India glycols
Price: 133
EPS: 15
Promoter holding: 47%
Mutual n FII: 15%
Public: 29%
Corp : 6.5%
Sales n Profit
Sales n Profit
2004 490 57.2
2005 635 79
2006 797 58.57
Capital 27 crs…..reserves 259 crs
Support at 125-120
Company name: Indo Asian Fuse
Price: 127
EPS: 11
Promoter holding: 30%
Mutual n FII: 6%
Public: 30%
Corp : 33%
Sales n Profit
Sales n Profit
2006 156 16
Capital 14 crs…..reserves 38 crs
Support at 125-120
perfect time to start tracking according to me
Company name: ABC bearing
Price: 162
EPS: 9...annual 18
Promoter holding: 25
Mutual n FII: 11
Public: 25
NRI….25
Sales n Profit
2004 110...6.2
2005 149…11.52
2006 176….15.7
Capital 11 crs…reserves 16
Support at 110
Company name: Ansal Housing
Price: 283
EPS: 20
Promoter holding: 40%
Mutual n FII: 7%
Public: 25%
Corp : 25%
Sales n Profit
2004 69.3 3
2005 79.7 6
2006 125.4 20.5
Capital 14 crs…..reserves 72 crs
Support at 250…..200
Company name: Amtek India
Price: 166
EPS: 15
Promoter holding: 53%
Mutual n FII: 30%
Public: 13%
Corp : 4%
Sales n Profit
2004 207 21
2005 280 30
2006 472 66.2
Capital 12 crs
Support at 140…..110
Company name: Birla Corp
Price: 337
EPS: 32
Promoter holding: 63%
Mutual n FII: 20%
Public: 9%
Corp : 7%
Sales n Profit
2004 1243 41.5
2005 1342 86.8
2006 1433 125.7
Capital 77 crs…..reserves 300 crs
Support at 275…..250
Company name: Elecon engg (stock split valuation)
Price: 308
EPS: 15
Promoter holding: 42%
Mutual n FII: 20%
Public: 30%
Corp : 7%
Sales n Profit
2004 160 2.16
2005 277 10
2006 442 31
Capital 5.7 crs…..reserves 97 crs
Support at 250…..200
Company name: Gateway Dist
Price: 175
EPS: 8
Promoter holding: 50%
Mutual n FII: 38%
Public: 6%
Corp : 6%
Sales n Profit
2005 93 34
2006 130 72
Capital 92 crs
Support at 150
Company name: Graphite India
Price: 309
EPS: 40
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2004 549 51
2005 546 48
2006 650 62
Capital 29 crs…..reserves 424 crs
Support at 250…..225
Company name: GM BREW
Price: 138
EPS: 13
Company name: Godawari power
Price: 87
EPS: 20
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2006 270 22.5
Support at 85…..70
Company name: Marksans pharm
Price: 103
EPS: 6
Promoter holding: 48%
Mutual n FII: 34%
Public: 8%
Corp : 8%
Sales n Profit
2004 80 4.5
2005 144 15
2006 292 23
Support at 100
Company name: S kumars Nationwide
Price: 77
EPS: 6.5
Promoter holding: 52.67%
Mutual n FII: 26%
Public: 6%
Corp : 14%
Sales n Profit
2005 344.5 9.1
2006 890 100
Capital 5.7 crs…..reserves 97 crs
Support at 60…..50
Company name: Rajesh Exports
Price: 239
EPS: 25
Promoter holding: 61%
Mutual n FII: 12.13%
Public: 19%
Corp : 8%
Sales n Profit
2004 3050 27.3
2005 4247 43
2006 5482 66.54
Capital 7.39 crs…..reserves 228 crs
Support at 200…..175
Company name: Prajay engg
Price: 270
EPS: 20
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 17.76 .77
2005 23.26 4.45
2006 73 22.7
Capital 14 crs…..reserves 72 crs
Support at 200….175
The company is doing well…the only concern is the decreasing promoters stake…good thing is all well note FIIS have stake against it….another concern is the promoters were issued shares against warrant at 175
Company name: SE Asia marine
Price: 175
EPS: 20
Promoter holding: 78%
Mutual n FII: 5.21%
Public: 11%
Corp : 5%
Sales n Profit
2004 96 30.6
2005 82 18
2006 last quarter fucked up
support at 150
Company name: Orient Ceramics
Price: 130
EPS: 25
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 110 2
2005 120 3.5
2006 140 4.3
Capital 4.68 crs…..reserves 31 crs
Support at 100….80
Company name: Nitco tiles
Price: 200
EPS: 15
Promoter holding: 48%
Mutual n FII: 23%
Public: 10%
Corp : 13%
Sales n Profit
2006 275 20
Capital 22 crs…..reserves 235 crs
Support at 200….175
Company name: Nectar Lifescience
Price: 152
EPS: 25
Promoter holding: 66%
Mutual n FII: 8.67%
Public: 14%
Corp : 11%
Sales n Profit
2006 287 25
Capital 14.8 crs…..reserves 158 crs
Support at 130-120
Company name: Mahindra Ugine
Price: 127
EPS: 15
Promoter holding: 56%
Mutual n FII: 22.5%
Public: 4%
Corp : 13%
Sales n Profit
Sales n Profit
2004 412.5 6
2005 587 48
2006 738 65
Capital 32 crs…..reserves 110 crs
Support at 110….100
Company name: India glycols
Price: 133
EPS: 15
Promoter holding: 47%
Mutual n FII: 15%
Public: 29%
Corp : 6.5%
Sales n Profit
Sales n Profit
2004 490 57.2
2005 635 79
2006 797 58.57
Capital 27 crs…..reserves 259 crs
Support at 125-120
Company name: Indo Asian Fuse
Price: 127
EPS: 11
Promoter holding: 30%
Mutual n FII: 6%
Public: 30%
Corp : 33%
Sales n Profit
Sales n Profit
2006 156 16
Capital 14 crs…..reserves 38 crs
Support at 125-120
Tuesday, October 03, 2006
Manugraph….manugraph has once again reached my recomm level…one shld hold on to it n buy more arnd 200 levels…..safe n a good bet
Surya pharma…..seems to be consolidating arnd these levels….one can more arnd 70-75 levels….one of the best n the safest bets in pharma at these levels…high being 174…I am sure will cross tht again once the midcaps r in full focus……buy n wait for a yr
Aarvee Denim n Aartti industries….according to me its one of the best contenders for bottom fishing if one has a long outlook
Karur Kcp….one can start accumulating it….n buy more arnd 50 levels
Hyderabad industries….one can start buying this at every dip….a counter definitely worth being in….not to be missed if available between 250-275 levels
Kei Industries….has moved up frm 250 to 320 levels….one can continue holding it n buy more if it falls below 300 levels.
Satnam overseas….once shld wait to accumulate this arnd 65 levels
all views r welcome
follow up on selected stocks n market in general
The market is once again poised to test its previous heights…..one shld be very careful in picking stocks at these levels as one might burn their hands if entered into a wrong counter or if market sentiments changes…. Market might be in a uptrend for some more time…a wait for dips strategy is what i am gonna adovocate right now
Sanjivani Parental…frm the low of 27 the stock is slowly rising up once again bck of some opeartors hope…one shld book 50% profit arnd 50 levels
Paras Petro…the stock has moved frm .40 to .70 paise…one shld book 50% profit n buy more below .50 paise
Anjani Fabrics….the stock was beaten down frm 30 to 17 levels…some news were flowing abt the stock to reach good heights…one can again take some position keep a stop loss of 15…..i do hold my original position bought at 30….keep a medium term outlook on it
Jupiter Bioscience….one can book profit arnd 125-130 levels.
Srei Infra….frm 30 to 50 levels…one shld book profit arnd 55 levels n buy later on sharp dips
Man industries…one can take some position in it….n add more arnd 10-15% fall…medium to long term outlook is quiet good
Dcw industries….one can add on this stock or take new positions keeping a medium to longer term view….though one shld not be over exposed to it…expansion n right issue on cards
Granules….one shld book profit at these levsl n wait for a dip arnd 80 to buy again into it
Hiran orgochem….have risen 60% in the past 3 days….one shld book profit at these levels n shld wait for correction to buy again
Sanjivani Parental…frm the low of 27 the stock is slowly rising up once again bck of some opeartors hope…one shld book 50% profit arnd 50 levels
Paras Petro…the stock has moved frm .40 to .70 paise…one shld book 50% profit n buy more below .50 paise
Anjani Fabrics….the stock was beaten down frm 30 to 17 levels…some news were flowing abt the stock to reach good heights…one can again take some position keep a stop loss of 15…..i do hold my original position bought at 30….keep a medium term outlook on it
Jupiter Bioscience….one can book profit arnd 125-130 levels.
Srei Infra….frm 30 to 50 levels…one shld book profit arnd 55 levels n buy later on sharp dips
Man industries…one can take some position in it….n add more arnd 10-15% fall…medium to long term outlook is quiet good
Dcw industries….one can add on this stock or take new positions keeping a medium to longer term view….though one shld not be over exposed to it…expansion n right issue on cards
Granules….one shld book profit at these levsl n wait for a dip arnd 80 to buy again into it
Hiran orgochem….have risen 60% in the past 3 days….one shld book profit at these levels n shld wait for correction to buy again
Wednesday, August 23, 2006
jyoti structures
jyoti structures have been growing 100% for the past 3-4 yrs.....with topline of 738 crs n bottomline of 27 crs n reserves of 106 crs n a pe of 20 for 06.....its looking damn attractive against the current price of 97....for june quarter it reported 220 crs sales...9.72 crs net profit n a eps of 6.68........so for 07 shld report arnd 26....fiis n mutual funds together hold ardn 29% n 20% in public....very very attractive to me
i might take a exposure of 50% at current levels n add more arnd 80
views invited
ashu
Institutional Investors
Mutual Funds and UTI
1781288
12.89
Tata Trustees Company Pvt Ltd
219037
1.58
DSP Merrill Lynch Trustee Company Pvt Ltd
332163
2.40
UTI - Dynamic Equity fund
237835
1.72
UTI Leadership Equity Fund
691850
5.01
Banks,Financial Institutions,Insurance Companies
5974
0.04
FIIS
2122283
15.36
Notz Stucki ET CIE SA
504935
3.65
India Fund Inc
543104
3.93
BSMA Ltd
693000
5.01
Premier Investment Fund Ltd
176824
1.28
Sub Total
3909545
28.29
Scrip Code : 513250 Company Name : Jyoti Structures Ltd
Type
Audited
Audited
Audited
Audited
Date Begin
01 Apr 05
01 Apr 04
01 Apr 03
01 Apr 02
Date End
31 Mar 06
31 Mar 05
31 Mar 04
31 Mar 03
Description
Value(Rs. million)
Net Sales
7380.64
4396.12
3034.55
2772.72
Other Income
20.9
4.73
5.59
5.07
Total Income
7401.54
4400.85
3040.15
2777.8
Expenditure
-6632.78
-3985.72
-2732.54
-2523.02
Operating Profit
768.76
415.13
307.61
254.77
Interest
-258.43
-194.69
-172.61
-198.09
Gross Profit
510.33
220.44
135
56.68
Depreciation
-48.34
-39.3
-40.64
-42.33
Profit before Tax
461.98
181.14
94.35
14.34
Tax
-185.3
-65.83
-39.66
-9.75
Profit after Tax
276.69
115.31
54.69
4.59
Net Profit
276.69
115.31
54.69
4.59
Equity Capital
138.21
138.21
118.2
-
Reserves
1063.22
806.01
507.92
378.17
EPS
20.02
9.3
5.04
0.46
Nos. of Shares - Non Promoters
9920143
9889165
7906794
5185034
Percent of Shares - Non Promoters
71.78
71.55
66.88
52.8
Result Type
A
A
A
A
Notes
Notes
Notes
Notes
i might take a exposure of 50% at current levels n add more arnd 80
views invited
ashu
Institutional Investors
Mutual Funds and UTI
1781288
12.89
Tata Trustees Company Pvt Ltd
219037
1.58
DSP Merrill Lynch Trustee Company Pvt Ltd
332163
2.40
UTI - Dynamic Equity fund
237835
1.72
UTI Leadership Equity Fund
691850
5.01
Banks,Financial Institutions,Insurance Companies
5974
0.04
FIIS
2122283
15.36
Notz Stucki ET CIE SA
504935
3.65
India Fund Inc
543104
3.93
BSMA Ltd
693000
5.01
Premier Investment Fund Ltd
176824
1.28
Sub Total
3909545
28.29
Scrip Code : 513250 Company Name : Jyoti Structures Ltd
Type
Audited
Audited
Audited
Audited
Date Begin
01 Apr 05
01 Apr 04
01 Apr 03
01 Apr 02
Date End
31 Mar 06
31 Mar 05
31 Mar 04
31 Mar 03
Description
Value(Rs. million)
Net Sales
7380.64
4396.12
3034.55
2772.72
Other Income
20.9
4.73
5.59
5.07
Total Income
7401.54
4400.85
3040.15
2777.8
Expenditure
-6632.78
-3985.72
-2732.54
-2523.02
Operating Profit
768.76
415.13
307.61
254.77
Interest
-258.43
-194.69
-172.61
-198.09
Gross Profit
510.33
220.44
135
56.68
Depreciation
-48.34
-39.3
-40.64
-42.33
Profit before Tax
461.98
181.14
94.35
14.34
Tax
-185.3
-65.83
-39.66
-9.75
Profit after Tax
276.69
115.31
54.69
4.59
Net Profit
276.69
115.31
54.69
4.59
Equity Capital
138.21
138.21
118.2
-
Reserves
1063.22
806.01
507.92
378.17
EPS
20.02
9.3
5.04
0.46
Nos. of Shares - Non Promoters
9920143
9889165
7906794
5185034
Percent of Shares - Non Promoters
71.78
71.55
66.88
52.8
Result Type
A
A
A
A
Notes
Notes
Notes
Notes
aarti industries.......multibagger in making ?
aarti industries was beaten down black n blue during the correction.......frm 72 levels to 30......the high being 92....n low being 26
having a turnover of 800 crs n profit arnd 50 crs with a eps arnd 6.75....the top line n bottomline have been growing up consistently
promoters holding being 45% n public 35% n mutual funds n fii 16%
i feel tht its the future is bright n its juss a matter of time tht company will inch up again
views r invited frm those who r tracking it closely
take care
ashu
Institutional Investors
Mutual Funds and UTI
8223662
11.29
HDFC Trustee Company Ltd - HDFC Prudencefund
2976000
4.09
HSBC Midcap Equity Fund
1326218
1.82
HDFC Trustee Company Ltd - HDFC Long Term
1461414
2.01
ABN AMRO Mutual Fund A/c ABN AMRO
826618
1.14
Banks,Financial Institutions,Insurance Companies
7500
0.01
FIIS
3665654
5.03
BSMA Ltd
1352950
1.86
Sub Total
11896816
16.34
Scrip Code : 524208 Company Name : Aarti Industries Ltd
Type
Audited
UnAudited
Audited
Audited
Date Begin
01 Apr 05
01 Apr 04
01 Apr 03
01 Apr 02
Date End
31 Mar 06
31 Mar 05
31 Mar 04
31 Mar 03
Description
Value(Rs. million)
Net Sales
7861.8
6854.8
5089.7
4729.2
Other Income
47.8
25.8
26.2
14
Total Income
7909.6
6880.6
5115.9
4743.2
Expenditure
-6767.6
-5962.3
-4351.5
-4026.1
Operating Profit
1142
918.3
764.4
717.1
Interest
-204
-135.4
-94.6
-137.8
Gross Profit
938
782.9
669.8
579.3
Depreciation
-221.9
-200.6
-169.1
-168.8
Profit before Tax
716.1
582.3
500.7
410.5
Tax
-225.5
-139.7
-143
-114.9
Profit after Tax
490.6
442.6
357.7
295.6
Net Profit
490.6
442.6
357.7
295.6
Equity Capital
364
364
121.3
121.3
Reserves
2004.1
1693.9
1609.1
1453.9
EPS
6.74
12.78
30.02
24.49
Nos. of Shares - Non Promoters
40084812
19532700
6348090
5666908
Percent of Shares - Non Promoters
55.05
53.65
52.31
46.69
Result Type
A
A
A
A
Notes
Notes
Notes
Notes
having a turnover of 800 crs n profit arnd 50 crs with a eps arnd 6.75....the top line n bottomline have been growing up consistently
promoters holding being 45% n public 35% n mutual funds n fii 16%
i feel tht its the future is bright n its juss a matter of time tht company will inch up again
views r invited frm those who r tracking it closely
take care
ashu
Institutional Investors
Mutual Funds and UTI
8223662
11.29
HDFC Trustee Company Ltd - HDFC Prudencefund
2976000
4.09
HSBC Midcap Equity Fund
1326218
1.82
HDFC Trustee Company Ltd - HDFC Long Term
1461414
2.01
ABN AMRO Mutual Fund A/c ABN AMRO
826618
1.14
Banks,Financial Institutions,Insurance Companies
7500
0.01
FIIS
3665654
5.03
BSMA Ltd
1352950
1.86
Sub Total
11896816
16.34
Scrip Code : 524208 Company Name : Aarti Industries Ltd
Type
Audited
UnAudited
Audited
Audited
Date Begin
01 Apr 05
01 Apr 04
01 Apr 03
01 Apr 02
Date End
31 Mar 06
31 Mar 05
31 Mar 04
31 Mar 03
Description
Value(Rs. million)
Net Sales
7861.8
6854.8
5089.7
4729.2
Other Income
47.8
25.8
26.2
14
Total Income
7909.6
6880.6
5115.9
4743.2
Expenditure
-6767.6
-5962.3
-4351.5
-4026.1
Operating Profit
1142
918.3
764.4
717.1
Interest
-204
-135.4
-94.6
-137.8
Gross Profit
938
782.9
669.8
579.3
Depreciation
-221.9
-200.6
-169.1
-168.8
Profit before Tax
716.1
582.3
500.7
410.5
Tax
-225.5
-139.7
-143
-114.9
Profit after Tax
490.6
442.6
357.7
295.6
Net Profit
490.6
442.6
357.7
295.6
Equity Capital
364
364
121.3
121.3
Reserves
2004.1
1693.9
1609.1
1453.9
EPS
6.74
12.78
30.02
24.49
Nos. of Shares - Non Promoters
40084812
19532700
6348090
5666908
Percent of Shares - Non Promoters
55.05
53.65
52.31
46.69
Result Type
A
A
A
A
Notes
Notes
Notes
Notes
follow up on operators move
syncom formulation n sanjivani parental r being tlked abt by brokers as operators r taking interestin it...those holding shld continue holding it with patience....syncom was up 10% yest.....n sanjivani has inched up frm 27 to 38 in the past 15 days
dcw...there r tlks of company coming up with right issue......so they might jack up the price to bring in the right at a higher price...those who have taken exposure shld continue holding it.........3-4 months holding is required
FRESH EXPOSURE NOT RECOMMENDED....TOO RISKY
take care
ashu
dcw...there r tlks of company coming up with right issue......so they might jack up the price to bring in the right at a higher price...those who have taken exposure shld continue holding it.........3-4 months holding is required
FRESH EXPOSURE NOT RECOMMENDED....TOO RISKY
take care
ashu
Tuesday, August 08, 2006
KEI Industries - Management Interview
KEI Industries (KEIL), incorporated in 1968, manufactures power, instrumentation and control cables and house wires, selling nearly 80% of its output to institutional buyers. With three manufacturing units in New Delhi, Bhiwadi and Silvassa, KEIL aims to maintain its margin on enhanced volume.
To know about prospects of the company and the power cable industry, Capital Market's Ravi Sodah spoke with Anil Gupta, MD, KEIL. Excerpts.
What is the current size of the power cable industry? At what rate it is it growing?
The current size of the power cable industry is about Rs 8000 crore. The industry is growing at 20%-25%. The growth is not only because of expansion of its capacity. The industry is growing because of capital expenditure in various user industries.
What are the key growth drivers and risks in the cable industry?
About Rs 9 lakh crore of capex is going in power and infrastructure sectors, special economic zones (SEZ), and industrial expansion. As a thumb rule, wire and cable requirement is approximately 2%-3% of the cost of the project.
The only risk is slowdown in the economy. But we don’t see any slowdown in the economy in the next five-10 years.
What is the share of organised and unorganised players in high tension (HT) and low tension (LT) cables? How is KEIL placed to face competition?
Due to the long period for a power cable company to establish its credentials, major sales from organised players in HT and LT cables are to institutions. If a new company starts manufacturing cables, it will take at least seven years for registration due to the surfeit of vendors.
KEIL is an established player figuring in the vendor approval list of various international engineering, procurement, construction (EPC) and power companies.
Can you elaborate on the product mix as well as the specific categorisation within the cables? What is the contribution of HT and LT cables to sales?
We are focusing on cable sales. We started manufacturing HT from March 2006. In FY 2007, HT cable sales will be approximately Rs 100 crore.
What is KEIL’s market share?
The present market share of KEIL is 15%. We sell mainly to institutions. Our sales to institutions are approximately 80% of our revenue. We are also focusing on retail sales through channel partners and dealers and distributors. We intend to achieve a 20% market share. Besides the existing facility in New Delhi, KEI started a new manufacturing facility at Bhiwadi in Rajasthan in March 2006. Expansion of our Silvassa facility will be completed by August 2006.
Going forward, what kind of turnover growth does KEIL expect? Will the company be able to retain the same kind of margin on enhanced turnover?
In FY 2007, we expect to achieve sales of Rs650-700 crore. Due to the increase in volume, we will maintain our operating profit.
What is your current order book? When are the orders likely to be executed? How was the order book last year?
Presently, the order book is Rs 116 crore. We are maintaining our order book at Rs 100 crore since the last one year. The orders are to be delivered in the next three to four months, apart from dealers’ orders.
Can you elaborate on the product mix as well as the specific categorisation within the cables? What is the contribution of HT and LT cables to sales?
We are focusing on cable sales. We started manufacturing HT from March 2006. In FY 2007, HT cable sales will be approximately Rs 100 crore.
What is KEIL’s market share? Going forward, what is the market share that the company is targeting? How do your intend to scale up operations?
The present market share of KEIL is 15%. We sell mainly to institutions. Our sales to institutions are approximately 80% of our revenue. We are also focusing on retail sales through channel partners and dealers and distributors. We intend to achieve a 20% market share.
Besides the existing facility in New Delhi, KEI started a new manufacturing facility at Bhiwadi in Rajasthan in March 2006. Expansion of our Silvassa facility will be completed by August 2006.
Going forward, what kind of turnover growth does KEIL expect? Will the company be able to retain the same kind of margin on enhanced turnover?
In FY 2007, we expect to achieve sales of Rs 650-700 crore. Due to the increase in volume, we will maintain our operating profit.
What is your current order book? When are the orders likely to be executed? How was the order book last year?
Presently, the order book is Rs 116 crore. We are maintaining our order book at Rs 100 crore since the last one year. The orders are to be delivered in the next three to four months, apart from dealers’ orders.
What is KEIL’s input sourcing strategy? How frequently are prices negotiated with suppliers? What is the average number of days you keep the raw material inventory?
We buy our raw material requirement in bulk. Generally, we book cooper on receiving orders from our customers. Due to the volatility in copper prices, we book forward contracts with suppliers, i.e., Hindalco and Sterlite Industries. The average inventory, which is for three months, includes work in progress (WIP) and finished goods.
Will KEIL be able to fully pass on the increase in raw material prices and thereby maintain or improve its OPM from the current levels?
There is no price escalation clause in the contracts. Our prices are fixed. In our tender-based sales, we quote raw material costs plus margin.
To know about prospects of the company and the power cable industry, Capital Market's Ravi Sodah spoke with Anil Gupta, MD, KEIL. Excerpts.
What is the current size of the power cable industry? At what rate it is it growing?
The current size of the power cable industry is about Rs 8000 crore. The industry is growing at 20%-25%. The growth is not only because of expansion of its capacity. The industry is growing because of capital expenditure in various user industries.
What are the key growth drivers and risks in the cable industry?
About Rs 9 lakh crore of capex is going in power and infrastructure sectors, special economic zones (SEZ), and industrial expansion. As a thumb rule, wire and cable requirement is approximately 2%-3% of the cost of the project.
The only risk is slowdown in the economy. But we don’t see any slowdown in the economy in the next five-10 years.
What is the share of organised and unorganised players in high tension (HT) and low tension (LT) cables? How is KEIL placed to face competition?
Due to the long period for a power cable company to establish its credentials, major sales from organised players in HT and LT cables are to institutions. If a new company starts manufacturing cables, it will take at least seven years for registration due to the surfeit of vendors.
KEIL is an established player figuring in the vendor approval list of various international engineering, procurement, construction (EPC) and power companies.
Can you elaborate on the product mix as well as the specific categorisation within the cables? What is the contribution of HT and LT cables to sales?
We are focusing on cable sales. We started manufacturing HT from March 2006. In FY 2007, HT cable sales will be approximately Rs 100 crore.
What is KEIL’s market share?
The present market share of KEIL is 15%. We sell mainly to institutions. Our sales to institutions are approximately 80% of our revenue. We are also focusing on retail sales through channel partners and dealers and distributors. We intend to achieve a 20% market share. Besides the existing facility in New Delhi, KEI started a new manufacturing facility at Bhiwadi in Rajasthan in March 2006. Expansion of our Silvassa facility will be completed by August 2006.
Going forward, what kind of turnover growth does KEIL expect? Will the company be able to retain the same kind of margin on enhanced turnover?
In FY 2007, we expect to achieve sales of Rs650-700 crore. Due to the increase in volume, we will maintain our operating profit.
What is your current order book? When are the orders likely to be executed? How was the order book last year?
Presently, the order book is Rs 116 crore. We are maintaining our order book at Rs 100 crore since the last one year. The orders are to be delivered in the next three to four months, apart from dealers’ orders.
Can you elaborate on the product mix as well as the specific categorisation within the cables? What is the contribution of HT and LT cables to sales?
We are focusing on cable sales. We started manufacturing HT from March 2006. In FY 2007, HT cable sales will be approximately Rs 100 crore.
What is KEIL’s market share? Going forward, what is the market share that the company is targeting? How do your intend to scale up operations?
The present market share of KEIL is 15%. We sell mainly to institutions. Our sales to institutions are approximately 80% of our revenue. We are also focusing on retail sales through channel partners and dealers and distributors. We intend to achieve a 20% market share.
Besides the existing facility in New Delhi, KEI started a new manufacturing facility at Bhiwadi in Rajasthan in March 2006. Expansion of our Silvassa facility will be completed by August 2006.
Going forward, what kind of turnover growth does KEIL expect? Will the company be able to retain the same kind of margin on enhanced turnover?
In FY 2007, we expect to achieve sales of Rs 650-700 crore. Due to the increase in volume, we will maintain our operating profit.
What is your current order book? When are the orders likely to be executed? How was the order book last year?
Presently, the order book is Rs 116 crore. We are maintaining our order book at Rs 100 crore since the last one year. The orders are to be delivered in the next three to four months, apart from dealers’ orders.
What is KEIL’s input sourcing strategy? How frequently are prices negotiated with suppliers? What is the average number of days you keep the raw material inventory?
We buy our raw material requirement in bulk. Generally, we book cooper on receiving orders from our customers. Due to the volatility in copper prices, we book forward contracts with suppliers, i.e., Hindalco and Sterlite Industries. The average inventory, which is for three months, includes work in progress (WIP) and finished goods.
Will KEIL be able to fully pass on the increase in raw material prices and thereby maintain or improve its OPM from the current levels?
There is no price escalation clause in the contracts. Our prices are fixed. In our tender-based sales, we quote raw material costs plus margin.
Sanjivani Parental ( news in the air )
Sanjivani Parentral was the pick of the day with 20% cct and huge volume. Co has reported excellent Q1 nos and is back in reckoning with order buzz….Co has been doing well quarter after quarter and set to report an EPS of Rs 12 per share. A leading Kolkata Bull too has entered this counter which is very positive as he is very close to RJ and RIL gr and therefore these two smart investors are set to enter in this counter............those holding continue holding
short term view (at 10800 levels)
market seems to have covered up some of the losses tht it had shed of during its way down.....market being reach 11000.....i feel its time one shld remain a bit cautious n hold 35-40% in cash.......buying shld definately be considered arnd 9300-9500 if market corrects.....midcaps which were hammered badly shld continue to out perform over medium to long term.....not much of downside shld be there in midcaps....ofcourse one has to be stock specific.......Q1 results of most of the quality midcaps companies have been strong n there is no reason why one shld doubt the growth of such companies for the next few yr
market might show some correction in he very near future going forward......one shld be cautious
market might show some correction in he very near future going forward......one shld be cautious
Friday, August 04, 2006
PEE KA BOO BCK IN THE STOCKS
Sorry everyone I have been a bit busy for the past one month….n now I am bck…market has been quite volatile n the stocks have been much more…..the weakness seems to be still there due to high crude price…dollar gaining strength over rupee….war n fear n stuff…..though the Q1 results have been quite recouraging…….one shld selectively pick the companies from here on as I believe market wont run much either ways in the next 6-9 months….though many stocks can prove to be multibagger if held for 12-18 months…patience is wht the market is all about
So once again lets have a peeka-boo on the stocks tht I have been tracking
Surya Pharma….EPS of arnd 19….available at a price of 80…public holding juss 22%........has been showing more than 60% growth in the past 3 years n last yr profit jumped more than 100%....50% investment can be considered arnd these levels
ANJANI FABRICS……DCW………hold on to both the companies….down due to the overall market scenario….market men will be bck soon in both the scripts
Satnam Overseas….one shld book partial profit arnd these levels as it had given 30% rise aft the fall……shld be bought again arnd 50-55 levels
Suraj Diamonds……the company is doing quiet good for the past 3 quarters…..EPS for the whole yr shld be arnd 10….one shld book some profit arnd 55-60 n invest again at lower levels post correction
KARUR KCP…..the company has grown by 50% compared to last yr…n the orders have been flowing in…expected to grow by 50% in the current yr too….EPS to be expected is arnd 12-13….current price 52…promoters holding above 72
HYDERABAD IND….THE COMPANY IS GOING GR8 GUNS….EPS OF 50….MUTUAL N FII HOLDING ARND 25%...CURRENTLY PRICED AT 300…..NOT TO BE MISSED IF AVAILABLE AT 250 IF THE MARKET FALLS
MANUGRAPH….THE COMPANY HAS GROWN BY OVER 100% IN THE PAST 2 YRS….MUTUAL N FII HOLDING ARND 16%.....EPS ARND 20.5…..WORTH ACCUMULATING ARND 150-160
Indo Asian Fuse….one shld book profit as it is faily priced at these levels….one shld enter again arnd 100 when correction comes
ALPS INDUSTRIES…..THE COMPANY IS DOING GOOD….HAVE GROWN MULTI-FOLD IN THE PAST 3 YEARS….EPS ARND 20…..WORTH INVESTING A SMALL AMT….N FORGETTING FOR A YR OR SOMETHING…..SUGGESTED ARND 75 LEVELS
AARVEE DENIM….2ND LARGEST DENIM PLAYER OF INDIA AFTER ARVIND…..THE COMPANY IS DOING WELL N THE PERFORMANCE WILL CONTINUE…IS BEATEN DOWN BADLY DUE TO THE CORRECTION….EPS ARND 15….CURRENT PRICE 50….GRAB IT IF U CAN…PUBLIC HOLDING ARND 15 %
AARTI IND…..CURRENT EPS ARND 6.75….THE COMPANY IS REPORTED TO DO QUITE WELL IN THE COMING 2 YRS…..AVAILABLE AT A THROW AWAY PRICE OF 28….MUTUAL N FII ARND 15%
KEI INDUSTRIES……AFT A HIGH OF 529 THE COMPANY IS AVAILABLE ARND 247…..EPS ARND 29…..HAVE GROWN MULTI-FOLD IN THE PAST 2 YEARS…..MUTUAL N FII HOLDING ARND 36……WORTH BUYING AT EVERY 10% FALL
SREI INFRA……the company has grown 40 n 100% respective in the past 2 years….FII n MUTUAL holding arnd 47…EPS arnd 5.16….worth investing at current n every 10% fall frm there on
Granules……Q1 have been good so far…goldman sachs n morgan n Stanley have been buying in arnd 84 n 104 levels…..company is said to be performing better qtr on qtr frm here on……EPS shld be arnd 8…..shld be accumulated on dips….keep a watch
GUJ ALKALIES….quiet faily priced arnd these levels…..book profit at current level….shld be bought during correction arnd 140-150 levels
Hiran orgochem…..the company is doing good…n the aiming at 100% growth for the next 2 years….have got few products lined up in the coming years……EPS is arnd 20…was hammered during the madcap carnage…..looking quite attractive at a price of 55….long term view shld be taken…minimum 9 months
LIC HOUSING….one shld sell this on every rise…..quiet reasonably priced n haven’t shown much of growth compared to others…..i guess better plays r available at mouth watering prices……fairly priced arnd a PE of 8
National steel…one shld book profit arnd 25 levels…..n shld invest again below 18 when correction comes
Reliance communication……the company performance is improving….the company had fallen 200 frm 300 but has slowly inched bck arnd 270…one shld sell arnd 290 n get in again at 220 during correction
DISAPPOINTMENTS
JUPITER BIOSCIENCE…….SANJIVANI PARENTAL…..AGRO DUTCH……IND SWIFT LABS…….inspite of good performance the share has been lying low…..management doesn’t seem to be all trustworthy….better to stay away
Syncom Formulation……the company has been showing disappointed results.
So once again lets have a peeka-boo on the stocks tht I have been tracking
Surya Pharma….EPS of arnd 19….available at a price of 80…public holding juss 22%........has been showing more than 60% growth in the past 3 years n last yr profit jumped more than 100%....50% investment can be considered arnd these levels
ANJANI FABRICS……DCW………hold on to both the companies….down due to the overall market scenario….market men will be bck soon in both the scripts
Satnam Overseas….one shld book partial profit arnd these levels as it had given 30% rise aft the fall……shld be bought again arnd 50-55 levels
Suraj Diamonds……the company is doing quiet good for the past 3 quarters…..EPS for the whole yr shld be arnd 10….one shld book some profit arnd 55-60 n invest again at lower levels post correction
KARUR KCP…..the company has grown by 50% compared to last yr…n the orders have been flowing in…expected to grow by 50% in the current yr too….EPS to be expected is arnd 12-13….current price 52…promoters holding above 72
HYDERABAD IND….THE COMPANY IS GOING GR8 GUNS….EPS OF 50….MUTUAL N FII HOLDING ARND 25%...CURRENTLY PRICED AT 300…..NOT TO BE MISSED IF AVAILABLE AT 250 IF THE MARKET FALLS
MANUGRAPH….THE COMPANY HAS GROWN BY OVER 100% IN THE PAST 2 YRS….MUTUAL N FII HOLDING ARND 16%.....EPS ARND 20.5…..WORTH ACCUMULATING ARND 150-160
Indo Asian Fuse….one shld book profit as it is faily priced at these levels….one shld enter again arnd 100 when correction comes
ALPS INDUSTRIES…..THE COMPANY IS DOING GOOD….HAVE GROWN MULTI-FOLD IN THE PAST 3 YEARS….EPS ARND 20…..WORTH INVESTING A SMALL AMT….N FORGETTING FOR A YR OR SOMETHING…..SUGGESTED ARND 75 LEVELS
AARVEE DENIM….2ND LARGEST DENIM PLAYER OF INDIA AFTER ARVIND…..THE COMPANY IS DOING WELL N THE PERFORMANCE WILL CONTINUE…IS BEATEN DOWN BADLY DUE TO THE CORRECTION….EPS ARND 15….CURRENT PRICE 50….GRAB IT IF U CAN…PUBLIC HOLDING ARND 15 %
AARTI IND…..CURRENT EPS ARND 6.75….THE COMPANY IS REPORTED TO DO QUITE WELL IN THE COMING 2 YRS…..AVAILABLE AT A THROW AWAY PRICE OF 28….MUTUAL N FII ARND 15%
KEI INDUSTRIES……AFT A HIGH OF 529 THE COMPANY IS AVAILABLE ARND 247…..EPS ARND 29…..HAVE GROWN MULTI-FOLD IN THE PAST 2 YEARS…..MUTUAL N FII HOLDING ARND 36……WORTH BUYING AT EVERY 10% FALL
SREI INFRA……the company has grown 40 n 100% respective in the past 2 years….FII n MUTUAL holding arnd 47…EPS arnd 5.16….worth investing at current n every 10% fall frm there on
Granules……Q1 have been good so far…goldman sachs n morgan n Stanley have been buying in arnd 84 n 104 levels…..company is said to be performing better qtr on qtr frm here on……EPS shld be arnd 8…..shld be accumulated on dips….keep a watch
GUJ ALKALIES….quiet faily priced arnd these levels…..book profit at current level….shld be bought during correction arnd 140-150 levels
Hiran orgochem…..the company is doing good…n the aiming at 100% growth for the next 2 years….have got few products lined up in the coming years……EPS is arnd 20…was hammered during the madcap carnage…..looking quite attractive at a price of 55….long term view shld be taken…minimum 9 months
LIC HOUSING….one shld sell this on every rise…..quiet reasonably priced n haven’t shown much of growth compared to others…..i guess better plays r available at mouth watering prices……fairly priced arnd a PE of 8
National steel…one shld book profit arnd 25 levels…..n shld invest again below 18 when correction comes
Reliance communication……the company performance is improving….the company had fallen 200 frm 300 but has slowly inched bck arnd 270…one shld sell arnd 290 n get in again at 220 during correction
DISAPPOINTMENTS
JUPITER BIOSCIENCE…….SANJIVANI PARENTAL…..AGRO DUTCH……IND SWIFT LABS…….inspite of good performance the share has been lying low…..management doesn’t seem to be all trustworthy….better to stay away
Syncom Formulation……the company has been showing disappointed results.
Wednesday, June 21, 2006
MIDCAPS GEMS........STAGE A COMEBCK FROM OVER SOLD TERRITORY
SURYA PHARMA……suggested at 70 10 days bck is quoting arnd 90 right now…………still quoting very cheap….30% UP
SANJIVANI PARENTAL STAGING A COME BCK…..THOSE HOLDING CONTINUE TO HOLD IT…..FRESH POSITION NOT RECOMMENDED
DEWAN HOUSING SUGGESTED AT 57 RIGHT NOW 68…UP 18%......STILL A GOOD BET FOR LONG TERM HOLDERS.
NATIONAL STEEL BOUGHT AT 16 AT 21 RIGHT NOW…..35% UP……SMALL PARTIAL POSITION CAN STILL BE TAKEN
ALPS INDUSTRIES RECOMMENED AT 76 RIGHT NOW 91….BONUS DECLEARED THIS YR….QUOTING VERY CHEAP….HIGH OF 300….CATCH IT IF U CAN B4 IT STARTS HITTING CIRCUITS
SATNAM SUGGESTED AT 58 RIGHT NOW 67 …..15% UP…CAN BE ACCUMULATED PARTIALLY
AARTI INDUSTRIES TOOKA BEATING FRM A HIGH OF 92 TO 30…RIGHT NOW 40……DEFINITELY WORTH ACCCUMULATING
SURYALAXMI COTTON….FRM A HIGH TO 270 TO A LOW OF 78……WAS RECOMMENDED at 84…right now 100…..quite underpriced
SREI n MANALI worth buying for long term holders…..multibaggers according to me
MAHINDRA UGINE….bought at 96…..right now 124……30% up…..worth buying at every 10% decline
Hyderabad industries….suggested arnd 200 right now 283…..keeep holding…..those who haven’t bought can buy partially arnd 30% right now
SANJIVANI PARENTAL STAGING A COME BCK…..THOSE HOLDING CONTINUE TO HOLD IT…..FRESH POSITION NOT RECOMMENDED
DEWAN HOUSING SUGGESTED AT 57 RIGHT NOW 68…UP 18%......STILL A GOOD BET FOR LONG TERM HOLDERS.
NATIONAL STEEL BOUGHT AT 16 AT 21 RIGHT NOW…..35% UP……SMALL PARTIAL POSITION CAN STILL BE TAKEN
ALPS INDUSTRIES RECOMMENED AT 76 RIGHT NOW 91….BONUS DECLEARED THIS YR….QUOTING VERY CHEAP….HIGH OF 300….CATCH IT IF U CAN B4 IT STARTS HITTING CIRCUITS
SATNAM SUGGESTED AT 58 RIGHT NOW 67 …..15% UP…CAN BE ACCUMULATED PARTIALLY
AARTI INDUSTRIES TOOKA BEATING FRM A HIGH OF 92 TO 30…RIGHT NOW 40……DEFINITELY WORTH ACCCUMULATING
SURYALAXMI COTTON….FRM A HIGH TO 270 TO A LOW OF 78……WAS RECOMMENDED at 84…right now 100…..quite underpriced
SREI n MANALI worth buying for long term holders…..multibaggers according to me
MAHINDRA UGINE….bought at 96…..right now 124……30% up…..worth buying at every 10% decline
Hyderabad industries….suggested arnd 200 right now 283…..keeep holding…..those who haven’t bought can buy partially arnd 30% right now
Thursday, June 15, 2006
value buying
i bought the following stocks today as i see very limited downside n huge upside potential in a long run
aarvee denim......18 EPS
dewan housing......8.32 EPS
indo asian fuse.
satnam over seas....11 EPS
srei infra.....5.16 EPS
hiran orgochem....19.11 EPS
karur kcp....8 EPS
alps ind.....28 EPS
have bought 35% at current levels......will add more on declines....detailed report available on my prev posts
aarvee denim......18 EPS
dewan housing......8.32 EPS
indo asian fuse.
satnam over seas....11 EPS
srei infra.....5.16 EPS
hiran orgochem....19.11 EPS
karur kcp....8 EPS
alps ind.....28 EPS
have bought 35% at current levels......will add more on declines....detailed report available on my prev posts
Friday, June 09, 2006
MARKET STAGE A COME BACK
Market staged a come back right from 9300 levels…....international market too were up……most of the stocks which were badly beaten out of shape were mostly up in upper circuits……though caution is advised arnd these levels……a clear view is still under the black shadows….if international market r down then maybe again the Indian market will continue its downfall……..market might remain between 8500 to 10500 for the next 5-6 months according to me……selective stocks which are available dirt cheap shld be selected n kept in the lockers for a minimum of 9-12 months…tons of multi-baggers will emerge again…though one shld not hurry n shld start buying in small qtys n keep adding more during declines if market remain weak….one shld start booking out profits or marginal loss in weak speculative stocks or over valued stocks if the rally continues on moday and Tuesday
Few stocks which can be bought at current levels but in small qtys maybe arnd 35% right now......these are my views....adequate research shld be done b4 buying any of these....i hold position in all the stocks mentioned below......companies details for all the below mentioned stocks are available in my prev post on the blog.......i bought mahindra ugine n national stel n manali petro today
Hyderabad industries……from 450 to 254…EPS of 50…bonus contestant (10% up today)
Man industries….been tracking since 250 levels but waited till 200 where I took position…right now 156…..18.72 EPS…fy07 eps expected to be atleast 30 (up 17% today )
Surya pharma…..frm 130 went upto 170….beated badly to 67 levels…..no change in fundamentals…….eps of fy06 21.58…….definately a multibagger….patience will be tested (6.61 % up)
Reliance comm…..frm 330 to 190…right now 219….up 13%.....only for long term investor…..minimum 9-12 months view shld be taken
Hiran orgo chem……from a high of 210 where it was overvalued come to 100 levels where I took position…went to 140…right now 71….minimum 70% growth can be expected for the next 2 years though the management has given 100% target…EPS of 06 19....another multibagger according to me (20% up today)
Ind-swift labs….frm 120 to 53 right now 65.55….only for risk takers….atleast 100% can be expected frm current levels (16% up today)
Manali petro…..advised arnd 20….went to 28…profit book was advised….right now 13…went to a low of 11…..up 11% today….fy06 eps of 3….another multibagger according to me
Risk takers can take some position in agro dutch……largest exporter of mushrooms….only for risk takers….management in a bit of doubt….minimum 18 months views shld be taken…frm high of 80 to 19 (10% up today)
Sutlej Ind……been tracking since 400 levels…..bought at 300 levels….right now 230….FY06 eps of 37……value play…buy 30% right now…keep adding on every 15-20% fall (8% up today)
Suryalaxmi cotton mills for 200 to 87……EPS of 24…..50% can be added at these levels….only for long term holders 12-18 months….multibagger frm these levels (5% up today)
Mahindra ugine ….right now 111…..20 eps of 06….07 eps expected to be 32-35….multibagger in making…..grab it…hold for atleast 12-18 months (20% up today)
Srei infra…..frm a good support level of 55…was available day b4 at 30…..right now 37….EPs of 5.5 for 06…..multibagger in making…20% up
Aarti ind….frm 70 to 40 levels…..EPS of 6.7….gr8 prospectus going forward….another multibagger…..was down by 6% today….add 30% right now….can jump anytime
DCW advised at 14 as speculative call 10 days bck was up 20% today…..right now 11….i will continue to hold it n also anjali fabrics
Few stocks which can be bought at current levels but in small qtys maybe arnd 35% right now......these are my views....adequate research shld be done b4 buying any of these....i hold position in all the stocks mentioned below......companies details for all the below mentioned stocks are available in my prev post on the blog.......i bought mahindra ugine n national stel n manali petro today
Hyderabad industries……from 450 to 254…EPS of 50…bonus contestant (10% up today)
Man industries….been tracking since 250 levels but waited till 200 where I took position…right now 156…..18.72 EPS…fy07 eps expected to be atleast 30 (up 17% today )
Surya pharma…..frm 130 went upto 170….beated badly to 67 levels…..no change in fundamentals…….eps of fy06 21.58…….definately a multibagger….patience will be tested (6.61 % up)
Reliance comm…..frm 330 to 190…right now 219….up 13%.....only for long term investor…..minimum 9-12 months view shld be taken
Hiran orgo chem……from a high of 210 where it was overvalued come to 100 levels where I took position…went to 140…right now 71….minimum 70% growth can be expected for the next 2 years though the management has given 100% target…EPS of 06 19....another multibagger according to me (20% up today)
Ind-swift labs….frm 120 to 53 right now 65.55….only for risk takers….atleast 100% can be expected frm current levels (16% up today)
Manali petro…..advised arnd 20….went to 28…profit book was advised….right now 13…went to a low of 11…..up 11% today….fy06 eps of 3….another multibagger according to me
Risk takers can take some position in agro dutch……largest exporter of mushrooms….only for risk takers….management in a bit of doubt….minimum 18 months views shld be taken…frm high of 80 to 19 (10% up today)
Sutlej Ind……been tracking since 400 levels…..bought at 300 levels….right now 230….FY06 eps of 37……value play…buy 30% right now…keep adding on every 15-20% fall (8% up today)
Suryalaxmi cotton mills for 200 to 87……EPS of 24…..50% can be added at these levels….only for long term holders 12-18 months….multibagger frm these levels (5% up today)
Mahindra ugine ….right now 111…..20 eps of 06….07 eps expected to be 32-35….multibagger in making…..grab it…hold for atleast 12-18 months (20% up today)
Srei infra…..frm a good support level of 55…was available day b4 at 30…..right now 37….EPs of 5.5 for 06…..multibagger in making…20% up
Aarti ind….frm 70 to 40 levels…..EPS of 6.7….gr8 prospectus going forward….another multibagger…..was down by 6% today….add 30% right now….can jump anytime
DCW advised at 14 as speculative call 10 days bck was up 20% today…..right now 11….i will continue to hold it n also anjali fabrics
Wednesday, June 07, 2006
CARNAGE CONTINUES
The carnage continues…….midcaps were hammered badly…….FIIS which have been buying heavily right from 6500 to 11500 levels have started booking profit…..n have been selling till Friday…n mutual funds kept buying till Friday post which they turned sellers too…overseas market r also facing a bit of correction for the past 15-20 days
People kept recommending stocks which were running high on valuations purely due to liquidity flow…..unreasonable targets were given which were followed blindly….i have been recommending to buy stocks where valuations were cheap n not over-valued large caps.
Many were sitting on low cash marginal just 15%.......wont be able to make use of this correction…I have been recommending caution right from 11000 levels n a minimum 40% cash balance in my previous posts.
Market should stabilize around 9000-9300 levels….though there are many thing which one will have to take care of….the advance – decline ratio have been distressing for the past so many days….the long term story is still intact…MNC’s are pouring billions of money into the Indian market expanding their business.
I will definitely post my picks once I think the market has settle…….those wont cant keep a view of minimum 9-12 months should enter at their own risk….fresh buying not recommended looking at the current scenario
One shld hold a minimum of 15 stocks according to me to spread out their risk
Invest with knowledge
VIEWS ARE ALWAYS WELCOME
People kept recommending stocks which were running high on valuations purely due to liquidity flow…..unreasonable targets were given which were followed blindly….i have been recommending to buy stocks where valuations were cheap n not over-valued large caps.
Many were sitting on low cash marginal just 15%.......wont be able to make use of this correction…I have been recommending caution right from 11000 levels n a minimum 40% cash balance in my previous posts.
Market should stabilize around 9000-9300 levels….though there are many thing which one will have to take care of….the advance – decline ratio have been distressing for the past so many days….the long term story is still intact…MNC’s are pouring billions of money into the Indian market expanding their business.
I will definitely post my picks once I think the market has settle…….those wont cant keep a view of minimum 9-12 months should enter at their own risk….fresh buying not recommended looking at the current scenario
One shld hold a minimum of 15 stocks according to me to spread out their risk
Invest with knowledge
VIEWS ARE ALWAYS WELCOME
Monday, June 05, 2006
market at 10500...whts next ?
market might remain weak seeing the current trend....can fall further to arnd 9300.....on the upside 11000 will be a high resistance level.......not much of action shld be expected in the next 2-3 months post which there will be selective stock moves
better to wait for the stocks to be added....i might add few more stocks which i had bought a week bck...long term trend is definately bullish unless politics kicks in again
keep a safe distance until a clear trend is seen
better to wait for the stocks to be added....i might add few more stocks which i had bought a week bck...long term trend is definately bullish unless politics kicks in again
keep a safe distance until a clear trend is seen
Wednesday, May 31, 2006
BE CAUTIOUS
I FEAR MARKET MIGHT FALL TODAY BY 500 OR MORE
I WIL BOOK PROFIT IN SOME STOCKS WHICH I HAD RECOMMENEDED LAST WEEK N PICK THEM LATER AT A LOWER PRICE IF CORRECTION SETS IN.....AVOID TRADING FOR THE NEXT 3-4 DAYS
surya pharma......dewan housing......neyveli........manugraph....mahindra ugine....manali petro......srei infra....kei ind......lic housing fin......sutlej...suraj diamonds.....guj alkalies.......dcw....man ind....satnam overseas
I WIL BOOK PROFIT IN SOME STOCKS WHICH I HAD RECOMMENEDED LAST WEEK N PICK THEM LATER AT A LOWER PRICE IF CORRECTION SETS IN.....AVOID TRADING FOR THE NEXT 3-4 DAYS
surya pharma......dewan housing......neyveli........manugraph....mahindra ugine....manali petro......srei infra....kei ind......lic housing fin......sutlej...suraj diamonds.....guj alkalies.......dcw....man ind....satnam overseas
Thursday, May 25, 2006
STOCKS I AM HOLDING AS ON 24TH MAY 06
I AM STILL SITTING ON 35% CASH
HYDERABAD IND
MANUGRAPH
HIRAN ORGOCHEM
NEYVELI LIGNITE
PARAS PETRO
IND SWIFT LAB
SURYALAXMI
RAIPUR ALLOYS
RELIANCE COMM
ANJANI FABRICS
JJ EXPORTS
NATIONAL STEEL
DEWAN HOUSING
SURYA PHARMA
AARVEE DENIM
MANALI PETRO
SREI INFRA
MAHINDRA UGINE
AARTI IND
WHIRLPOOL
AGRO DUTCH
SYNCOM FORMULATION
JUPITER BIO
GRANULES
SANJIVANI PARENTAL
GUJ ALKA
IND GLYCOLS
KARUR KCP
KEI IND
SUTLEJ IND
SURAJ DIAMONDS
SATNAM OVERSEAS
MAN IND
DCW LTD
LIC HOUSING
HYDERABAD IND
MANUGRAPH
HIRAN ORGOCHEM
NEYVELI LIGNITE
PARAS PETRO
IND SWIFT LAB
SURYALAXMI
RAIPUR ALLOYS
RELIANCE COMM
ANJANI FABRICS
JJ EXPORTS
NATIONAL STEEL
DEWAN HOUSING
SURYA PHARMA
AARVEE DENIM
MANALI PETRO
SREI INFRA
MAHINDRA UGINE
AARTI IND
WHIRLPOOL
AGRO DUTCH
SYNCOM FORMULATION
JUPITER BIO
GRANULES
SANJIVANI PARENTAL
GUJ ALKA
IND GLYCOLS
KARUR KCP
KEI IND
SUTLEJ IND
SURAJ DIAMONDS
SATNAM OVERSEAS
MAN IND
DCW LTD
LIC HOUSING
DCW- SPECULATIVE CALL
ONE CAN KEEP A WATCH ON DCW...THE STOCK WAS TRADING ARND 13 WHEN I TOOK POSITION IN IT....THE NEWS IS IT MIGHT COMING WITH RIGHT ISSUE AT A PRICE OF 18.....SO THEY MIGHT PULL THE PRICE TO 25-30 IN THE NEXT 1 MONTH
ONLY RISK APPETITE INVESTORS SHLD TAKE POSITION IN SMALL QTYS
ONLY RISK APPETITE INVESTORS SHLD TAKE POSITION IN SMALL QTYS
STOCKS I BOUGHT IN THE PAST 3 DAYS
MARKET HAS BEEN ON A DOWNTREND FOR THE PAST 8 DAYS...FIIS HAS BEEN SELLING....ANYWAYS I EXPECT THE MARKET TO SHOW LESS VOLATILITY POST EXPIRY....HOWEVER IT MIGHT FALL ANOTHER 500-800 LOOKING AT THE CURRENT TREND......HOWEVER I CAN START BUYING QUALITY STOCKS IN SMALL QTYS...SOME STOCKS I BOUGHT IN THE PAST 3 TRADING DAYS
GUJ ALKA
IND GLYCOLS
KARUR KCP
KEI IND
SUTLEJ IND
SURAJ DIAMONDS
SATNAM OVERSEAS
NATIONAL STEEL
MAN IND
DCW LTD
LIC HOUSING
IND GLYCOLS
KARUR KCP
KEI IND
SUTLEJ IND
SURAJ DIAMONDS
SATNAM OVERSEAS
NATIONAL STEEL
MAN IND
DCW LTD
LIC HOUSING
HYDERABAD IND
RELIANCE COMM
MANUGRAPH
SURYALAXMI
SURYA PHARMA
AARVEE DENIM
MANALI PETRO
DCW IND
Monday, May 22, 2006
STOCKS PICKS N VIEWS
market fundamental doesnt change overnight.....india's story is still strong....correction has set in purely coz the valuations were running high on the current earning basis....the property story had always set my eyes popping......i believe those who r still gaining profit or suffering marginal loss on land stocks should book profit....there were many who were advising juss 10-15% cash holding n investing the rest in market which was juss going one way up due to the liquidity factor......juss wondering how they will use this oppurtunity to buy cheap.....i had been advising 50% cash levels for the past 2-3 months......those who r holding 50% cash can start buying in bits keeping in view a medium-longer term view
i am happy of the correction tht has set in......i have started my buying list today partially....i am still 40% in cash aft buying today
pple were expecting more......everything they buy were expecting it to start hitting circuit frm the very day.....all i can do is laugh....i had seen pple giving recommendations on http://www.poweryourtrade.com especially ashwani guj who used to give taregt 50% higher n i dont think i need to say anything for E - mathew .
the correction is mainly coz of the margin pressure coz of the liquidity.....brokers r selling stocks on margin funding.......i expect market to settle by thursday-friday....buy post tht one shld again expect juss marginal returns n not set rocketing targets
short term traders who used to ask stocks for 1-2 months...pity u guys....BYE BYE is all i can say
THE STOCKS THT I BOUGHT TODAY
granules down frm 120 to 80 now.....70 is the bottom it can go too
aarti ind.....frm 70 to 62.......looking very attractive
hyderabad frm 450 to 350
manugraph frm 275 to 225
paras petro frm .9 to .55
ind swift frm 115 to 88
hiran orgo chem......frm 125 to 99
suryalaxmi frm 200 to 150
aarvee denim frm 125 to 95
manali petro frm 20 to 13.5
surya pharma frm 135 to 90
srei infra frm 60 to 45
i am happy of the correction tht has set in......i have started my buying list today partially....i am still 40% in cash aft buying today
pple were expecting more......everything they buy were expecting it to start hitting circuit frm the very day.....all i can do is laugh....i had seen pple giving recommendations on http://www.poweryourtrade.com especially ashwani guj who used to give taregt 50% higher n i dont think i need to say anything for E - mathew .
the correction is mainly coz of the margin pressure coz of the liquidity.....brokers r selling stocks on margin funding.......i expect market to settle by thursday-friday....buy post tht one shld again expect juss marginal returns n not set rocketing targets
short term traders who used to ask stocks for 1-2 months...pity u guys....BYE BYE is all i can say
THE STOCKS THT I BOUGHT TODAY
granules down frm 120 to 80 now.....70 is the bottom it can go too
aarti ind.....frm 70 to 62.......looking very attractive
hyderabad frm 450 to 350
manugraph frm 275 to 225
paras petro frm .9 to .55
ind swift frm 115 to 88
hiran orgo chem......frm 125 to 99
suryalaxmi frm 200 to 150
aarvee denim frm 125 to 95
manali petro frm 20 to 13.5
surya pharma frm 135 to 90
srei infra frm 60 to 45
Thursday, May 18, 2006
my views n suggestions
1. Traders keep off....Might burn their hands real bad
2. Those investing fresh keep a minimum view of 3 months even if investing with a shorter term view
3. Market might n should fall another 500-700 points....buying might start emerging arnd 10500-10800 levels
4. Buy only quality stocks irrespective of midcap or large caps.....only quality doesnt help....valuation also need to be given a thought.....think 10 times b4 buying anything post 12-15 PE.....BUY IN INSTALLMENTS
5. Average only if the stock has fallen by 20%......n then more arnd 35% fall....dont start averaging juss on a mere 5-8% fall......THTS MY STRATEGY
AVOID ADDING OR AVERAGING MORE OF SPECULATIVE STOCKS
MARKET MIGHT REMAIN VOLATILE FOR THE NEXT 2-3 DAYS.....POST WHICH I MIGHT START MY SHOPPING
2. Those investing fresh keep a minimum view of 3 months even if investing with a shorter term view
3. Market might n should fall another 500-700 points....buying might start emerging arnd 10500-10800 levels
4. Buy only quality stocks irrespective of midcap or large caps.....only quality doesnt help....valuation also need to be given a thought.....think 10 times b4 buying anything post 12-15 PE.....BUY IN INSTALLMENTS
5. Average only if the stock has fallen by 20%......n then more arnd 35% fall....dont start averaging juss on a mere 5-8% fall......THTS MY STRATEGY
AVOID ADDING OR AVERAGING MORE OF SPECULATIVE STOCKS
MARKET MIGHT REMAIN VOLATILE FOR THE NEXT 2-3 DAYS.....POST WHICH I MIGHT START MY SHOPPING
KEEP A WATCH
HIGH INTEREST RATE......WEAKING RUPEE N HIGH CRUDE PRICE failed to keep the market down.....a fall was seen across the globe due to weaking commodities prices.....i expect the market to move sideways....n a further fall of 500-700 points shld be taken as a oppurtunity to buy in quality stocks....i am still sitting on 50% cash...play safe...oppurtunities will always comeby
DEWAN HOUSING....up 20% yest.....bought at 79 on friday.......action might take place in this counter......those who have been holding it for the past 12-15 months shld continue holding it for good return in the coming yr.....hold for a 9-12 months....can give superduper returns...
WHIRLPOOL....bck in action...10% up yest.....watch for a target for 45-50 soon...only for BRAVEHEARTS
NEYVELI LIGNITE......quality blue chip with a 93% promoters holding....targets tlked abt r high....minimum holding period 6-9 months.....again high targets r being tlked abt this stock
MRPL N IDBI....speculative buys...can see 15% in 10 days period
suryalaxmi cotton......value buy......available at a PE of 6
ANJANI FABRICS....getting accumulated by close circles...can explode any time......high targets....2-4 months period...ONLY FOR BRAVEHEARTS
S KUMARS NATION.....frm 58 to 70.....going quite strong...keep holding
HYDERABAD INDUSTRIES......REL COMM.......VALUE BUY....1 YR VIEW......SHLD GIVE MINIMUM 75-100% RETURNS......SAFE PLAY
PARAS PETRO.....suggested arnd .55....right now .90........buy on decline...those holding continue holding for a yr......multibagger
ind-swift labs......CAN BE BOUGHT IN SMALL QTY....MEDIUM TERM VIEW
JJ EXPORTS......can be bought 50% now
KIRLOSKAR ELECT.....KEEP A WATCH ON UPMOVE
I HOLD POSITION IN ALL THE ABOVE MENTION STOCKS
DEWAN HOUSING....up 20% yest.....bought at 79 on friday.......action might take place in this counter......those who have been holding it for the past 12-15 months shld continue holding it for good return in the coming yr.....hold for a 9-12 months....can give superduper returns...
WHIRLPOOL....bck in action...10% up yest.....watch for a target for 45-50 soon...only for BRAVEHEARTS
NEYVELI LIGNITE......quality blue chip with a 93% promoters holding....targets tlked abt r high....minimum holding period 6-9 months.....again high targets r being tlked abt this stock
MRPL N IDBI....speculative buys...can see 15% in 10 days period
suryalaxmi cotton......value buy......available at a PE of 6
ANJANI FABRICS....getting accumulated by close circles...can explode any time......high targets....2-4 months period...ONLY FOR BRAVEHEARTS
S KUMARS NATION.....frm 58 to 70.....going quite strong...keep holding
HYDERABAD INDUSTRIES......REL COMM.......VALUE BUY....1 YR VIEW......SHLD GIVE MINIMUM 75-100% RETURNS......SAFE PLAY
PARAS PETRO.....suggested arnd .55....right now .90........buy on decline...those holding continue holding for a yr......multibagger
ind-swift labs......CAN BE BOUGHT IN SMALL QTY....MEDIUM TERM VIEW
JJ EXPORTS......can be bought 50% now
KIRLOSKAR ELECT.....KEEP A WATCH ON UPMOVE
I HOLD POSITION IN ALL THE ABOVE MENTION STOCKS
Tuesday, May 16, 2006
DOWNTREND OR CONSOLIDATION
THE MUCH NEEDED CORRECTION HAS ARRIVED....I EXPECT THE MARKET TO REMAIN WEAK TODAY AS WELL.....DEPENDING ON TODAYS FALL THE DIRECTION FOR TOMM MOVEMENT WILL DEPEND......MAYBE ANOTHER 350-400 DOWNSIDE FALL BUYING MIGHT ONCE AGAIN TAKEOVER THE MARKET........THUMBS UP FOR THE CORRECTION WHICH WILL MAKE WAY FOR CONSOLIDATION.
KEEP THE SHOPPING LIST READY....MIGHT LIST MY BUY LIST BY TOMM
KEEP THE SHOPPING LIST READY....MIGHT LIST MY BUY LIST BY TOMM
Monday, May 15, 2006
HIRAN ORGOCHEM...........(Code No: 506170) (Rs.126)
THE STOCK WAS RECOMMENED ARND 100 LEVELS 2 WEEK BCK.....DETAILED REPORT IS BEEN SHARED NOW
Mumbai-based Hiran Orgochem has announced mind-boggling results for FY06 wherein sales increased by 98% but net profit skyrocketed by over 876% to Rs.13.4 cr. from Rs.1.4 cr. in FY05. The EPS for FY06 works out to Rs.17.4. Dealers say that the increase in turnover and profitability is mainly on account of the expansion and introduction of new products. Knowledgeable quarters are said to be active in the counter and the volume, too, has gone up. HOL manufactures bulk drugs like Ciprofloxacin Hydrochloride -USP. The company's plant at Panoli has an installed capacity of 240,000 Kgs.
HOL is a medium sized company founded in 1983, manufacturing pharmaceutical bulk actives and has grown to be one of the most successful and dedicated manufacturers of bulk actives. It provides services on a quick-turn, cost-effective basis and has successfully expanded its customer base and delivered solid operating returns. The global pharma market is projected to grow by 25% over the next year and provide it with a large and growing target market. Ciprofloxacin Hydrochloride is still ranked number one in its product portfolio followed by Enrofloxacin Base, Ciprofloxacin Base, Ciprofloxacin Lactate and Enrofloxacin Hydrochloride.
HOL posted excellent results during FY06 as enumerated above. The point in consideration, however, is that this net profit was arrived after making a huge tax provision of Rs.6.6 cr. The EPS on its expanded equity works out to Rs.17.5. Diluted EPS works out to Rs.19. HOL has maintained the dividend at 15%.
During the year, HOL allotted 15 lakh shares at a premium of Rs.120 per share on a preferential basis to the promoters taking its equity to Rs.7.7 cr. With reserves increasing to Rs.39.3 cr., the book value of the share works out to Rs.61. The promoters hold 39.4% in the equity capital, FIIs hold 2%, 14.8% is held by PCBs leaving 43.8% with the investing public.
HOL has also issued 23 lakh optionally fully convertible warrants (OFCWs). Each warrant is convertible at the sole option of the holder, any time on or after 1st April 2006 but before the expiry of 18 months from the date of allotment, into 1 fully paid up equity share at an exercise price of Rs.130 per warrant. The amount so raised has been utilized for doubling the production capacity from 480 MTA to 960 MTA and which commenced partial operation during FY06.
Coming to its future prospects, the pharmaceutical sector offers huge opportunities. The Indian pharmaceuticals industry, which was worth US $5.58 billion in 2003-05, grew at a CAGR of 17% in the last decade. According to McKinsey's projections, it is expected to grow to US $25 billion by 2010 and further to US$ 75 billion by 2020. There are, therefore, enormous opportunities for Indian pharma companies for exports in the overseas generics market, as drugs worth US$ 80 billion are go off patent by 2012 in USA. This throws up opportunities worth US$ 16 billion for generic companies assuming 80% price erosion after a drug goes off patent. Further, with the advent of the product patent regime earlier this year opportunities for growth through the CRAM (Contract Research and Manufacturing) model have also opened up.Molecules worth US$ 75 billion will go off patent by 2008 qualifying them for generic manufacture. This will accelerate competition amongst global pharma players. This in turn has translated into global generic players partnering cost effective API manufacturing Indian companies to produce these products. Due to its skills in process chemistry and expertise in low cost production base, the Indian pharma industry is expected to emerge as an outsourcing hub for the world generic pharma leaders. This will lead API manufacturing companies to go in for backward integration and optimize their low cost production bases to encash the opportunities and benefits. HOL is all set to grab a sizeable chunk of share in these growing opportunities.HOL has excellent prospects, as Ciprofloxacin has gone off-patent in January 2005 in most markets providing an opportunity to share the world market consumption of 15000 metric tones. Also, the growing demand in the domestic market will be around 2000-2200 metric tonnes per annum.HOL will increase its investments in marketing, particularly in Europe, by obtaining regulatory approvals like World Health Organisation's (WHO) Good Manufacturing Practice (GMP), European Certificate of Suitability. HOL will launch a couple of new products in FY07 and intends to acquire a good market share in coming years. It hopes to reduce cost and increase efficiency in all areas of operations by further increasing capacity
For FY07, HOL expects further organic growth in both revenue and net profit. Taking into account the impact of the increase in marketing, the full benefits of which will be realized in the medium-term, HOL's long-term profit forecast is positive. It is all set to achieve an EPS of Rs.24 in FY07 increasing further to Rs.27 in FY08. The shares are available at Rs.126 at a P/E of 7.4 on its FY06 earning and a forward P/E of just 5.3 on FY07 earnings. The industry P/E currently rules firm at 25 making investment in the HOL share quite attractive. The 52-week high and low of the share has been Rs.229/35.
MY TAKE : THE SHARE IS VERY ATTRACTIVE AT CURRENT LEVELS.......50% CAN BE INVESTED ARND CURRENT LEVELS N ANOTHER 50% ARND 100....A GOOD SOLID SUPPORT LEVEL....MANAGEMENT SEEMS TO BE HONEST
Mumbai-based Hiran Orgochem has announced mind-boggling results for FY06 wherein sales increased by 98% but net profit skyrocketed by over 876% to Rs.13.4 cr. from Rs.1.4 cr. in FY05. The EPS for FY06 works out to Rs.17.4. Dealers say that the increase in turnover and profitability is mainly on account of the expansion and introduction of new products. Knowledgeable quarters are said to be active in the counter and the volume, too, has gone up. HOL manufactures bulk drugs like Ciprofloxacin Hydrochloride -USP. The company's plant at Panoli has an installed capacity of 240,000 Kgs.
HOL is a medium sized company founded in 1983, manufacturing pharmaceutical bulk actives and has grown to be one of the most successful and dedicated manufacturers of bulk actives. It provides services on a quick-turn, cost-effective basis and has successfully expanded its customer base and delivered solid operating returns. The global pharma market is projected to grow by 25% over the next year and provide it with a large and growing target market. Ciprofloxacin Hydrochloride is still ranked number one in its product portfolio followed by Enrofloxacin Base, Ciprofloxacin Base, Ciprofloxacin Lactate and Enrofloxacin Hydrochloride.
HOL posted excellent results during FY06 as enumerated above. The point in consideration, however, is that this net profit was arrived after making a huge tax provision of Rs.6.6 cr. The EPS on its expanded equity works out to Rs.17.5. Diluted EPS works out to Rs.19. HOL has maintained the dividend at 15%.
During the year, HOL allotted 15 lakh shares at a premium of Rs.120 per share on a preferential basis to the promoters taking its equity to Rs.7.7 cr. With reserves increasing to Rs.39.3 cr., the book value of the share works out to Rs.61. The promoters hold 39.4% in the equity capital, FIIs hold 2%, 14.8% is held by PCBs leaving 43.8% with the investing public.
HOL has also issued 23 lakh optionally fully convertible warrants (OFCWs). Each warrant is convertible at the sole option of the holder, any time on or after 1st April 2006 but before the expiry of 18 months from the date of allotment, into 1 fully paid up equity share at an exercise price of Rs.130 per warrant. The amount so raised has been utilized for doubling the production capacity from 480 MTA to 960 MTA and which commenced partial operation during FY06.
Coming to its future prospects, the pharmaceutical sector offers huge opportunities. The Indian pharmaceuticals industry, which was worth US $5.58 billion in 2003-05, grew at a CAGR of 17% in the last decade. According to McKinsey's projections, it is expected to grow to US $25 billion by 2010 and further to US$ 75 billion by 2020. There are, therefore, enormous opportunities for Indian pharma companies for exports in the overseas generics market, as drugs worth US$ 80 billion are go off patent by 2012 in USA. This throws up opportunities worth US$ 16 billion for generic companies assuming 80% price erosion after a drug goes off patent. Further, with the advent of the product patent regime earlier this year opportunities for growth through the CRAM (Contract Research and Manufacturing) model have also opened up.Molecules worth US$ 75 billion will go off patent by 2008 qualifying them for generic manufacture. This will accelerate competition amongst global pharma players. This in turn has translated into global generic players partnering cost effective API manufacturing Indian companies to produce these products. Due to its skills in process chemistry and expertise in low cost production base, the Indian pharma industry is expected to emerge as an outsourcing hub for the world generic pharma leaders. This will lead API manufacturing companies to go in for backward integration and optimize their low cost production bases to encash the opportunities and benefits. HOL is all set to grab a sizeable chunk of share in these growing opportunities.HOL has excellent prospects, as Ciprofloxacin has gone off-patent in January 2005 in most markets providing an opportunity to share the world market consumption of 15000 metric tones. Also, the growing demand in the domestic market will be around 2000-2200 metric tonnes per annum.HOL will increase its investments in marketing, particularly in Europe, by obtaining regulatory approvals like World Health Organisation's (WHO) Good Manufacturing Practice (GMP), European Certificate of Suitability. HOL will launch a couple of new products in FY07 and intends to acquire a good market share in coming years. It hopes to reduce cost and increase efficiency in all areas of operations by further increasing capacity
For FY07, HOL expects further organic growth in both revenue and net profit. Taking into account the impact of the increase in marketing, the full benefits of which will be realized in the medium-term, HOL's long-term profit forecast is positive. It is all set to achieve an EPS of Rs.24 in FY07 increasing further to Rs.27 in FY08. The shares are available at Rs.126 at a P/E of 7.4 on its FY06 earning and a forward P/E of just 5.3 on FY07 earnings. The industry P/E currently rules firm at 25 making investment in the HOL share quite attractive. The 52-week high and low of the share has been Rs.229/35.
MY TAKE : THE SHARE IS VERY ATTRACTIVE AT CURRENT LEVELS.......50% CAN BE INVESTED ARND CURRENT LEVELS N ANOTHER 50% ARND 100....A GOOD SOLID SUPPORT LEVEL....MANAGEMENT SEEMS TO BE HONEST
SAKTHI SUGARS Ltd. (SSL) (Code No: 507315) (Rs.258)
Incorporated in 1961, SSL manufactures sugar, industrial alcohol and soya products. It has also established a modern sugar unit with a crushing capacity of 2500 TCD, which commenced operations during 1994-95. The crushing capacity of the Sakthi Nagar Unit increased to 6000 TPD in October 1998. From 1st April 1993, Sakthi Soya, a group company, was merged into SSL. It has an installed capacity to produce 1,00,000 TPA of refined oil, de-oiled cakes, full-fat soya meal, soya flour flakes and texturised vegetable protein.
SSL has units / plants in Tamil Nadu and Orissa. The Sakthinagar distillery division has installed an Ethanol plant with an annual capacity of 50,000 litres per day in June 2003. The company has 3 units with crushing capacities of 6000 TCD, 4000 TCD and 2750 TCD respectively totalling to 12,750 TCD.
Sakhti Auto Components (SACL) is its wholly owned subsidiary. During 1997, this new disamatic foundry wing commenced production with SG Iron Casting and Graded Iron Casting with an annual capacity of 2600 MTA and 1000 MTA respectively. Both the capacities were increased to 14400 TPA and 9600 TPA respectively. SSL’s investment in this subsidiary is Rs.51 cr. and SACL is all set to turn the corner in FY07 with a net profit of about Rs.10 cr.
For 30th June ending FY05, SSL increased its sales by 114% to Rs.619 cr. and posted a net profit of Rs.27 cr. against net loss of Rs.25 cr. in the previous year. During Q2FY06, its net profit has taken a quantum jump of 185% to Rs.20 cr. from Rs.7 cr. in Q2FY05. During 9 months of FY06, sales advanced by 75% to Rs.381 cr., net profit shot up by a whopping 549% to Rs.28.9 cr.
Its equity capital is Rs.31.4 cr. With reserves of Rs.299 cr., the book value of the share works out to Rs.105. Its debt-equity ratio is 1.7:1 and the value of the gross block is a whopping Rs.635 cr. The promoters hold 38% in its equity capital, FIIs hold 29%, non-promoter corporate holding is 8%, domestic institutions hold 3% and government holding is 3% leaving 18% with the investing public.
SSL has 35 MW co-generation project at its Sakthinagar sugar unit and a 2 MW co-generation plant at the Sivaganga sugar unit.
SSL is busy setting up a new sugar mill of 3000 TCD together with a 25 MW co-generation plant as a greenfield project. A 35 MW co-generation plant is to be set up at its sugar unit in Padamathur Village, Sivaganga and 25 MW at Sakthinagar, Bhavani Taluk, and Erode District.
Further, the cane crushing capacity of its Sakthinagar sugar unit in Erode District is being enhanced from 6000 TCD to 9000 TCD. The process for setting up a beverage project with Hindustan Coca-Cola Beverages is complete and the plant is ready for operation.
SSL has plans to raise US$ 50 million (about Rs.230 cr.) to fund its expansion plans. Of the total capital that the company would raise, Rs.150 cr. would be spent to set up two co-generation plants and the remaining amount would be spent to set up a new sugar mill.
The sugar industry is in the pink of health with a significant increase in production in FY06 compared to the previous period. Going forward, the industry is also expected to witness shortfall in supply in the next couple of years. Top players are initiating expansion plans and contemplate good growth in production and profitability in coming years on account of the bumper sugarcane crop. A significant cut in European Union subsidy and the drought in major sugar producing countries like Thailand and strong price movements in neighbouring countries like Pakistan, Sri Lanka and Bangladesh augur well for the future prospects of the Indian sugar industry.
India’s sugar output in the sugar season year to September 2006 is likely to be around 18.5 million tonnes as against 13 million tonnes, a year ago. Strong sugar demand and a booming export market will boost sugar production, which is likely to rise to 21-22 million tonnes in the year to September 2007. The higher sugar output is likely to be exported, which is likely to increase to 1.5 million tonnes next year. The domestic demand, too, is expected to increase industry sources say.SSL is increasing the FII limit upto 50% of the paid-up equity capital of the company. Recently, Deutsche Bank has picked up 16, 20,000 shares from the open market aggregating to 5.16% of the share capital. Total foreign holding has now gone upto 28.8%. The counter has been attracting hectic activity with substantial investment buying.
SSL is all set to post a net profit of Rs.100 cr. after extraordinary write off of Rs.34 cr. in the current year. The EPS before extraordinary expense could work out to Rs.43. The share trades at a forward P/E of just 6 against the industry average P/E of 24 leaving tremendous scope for the share to rise handsomely. The 52-week high and the low of the share has been Rs.275/ 64.
MY TAKE : STOCK SHLD BE BOUGHT AFT A BIT OF CORRECTION.....235 ACTS A GOOD SHORT TERM SUPPORT....30% CAN BE BOUGHT ARND THOSE LEVELS N REST ARND 190
SSL has units / plants in Tamil Nadu and Orissa. The Sakthinagar distillery division has installed an Ethanol plant with an annual capacity of 50,000 litres per day in June 2003. The company has 3 units with crushing capacities of 6000 TCD, 4000 TCD and 2750 TCD respectively totalling to 12,750 TCD.
Sakhti Auto Components (SACL) is its wholly owned subsidiary. During 1997, this new disamatic foundry wing commenced production with SG Iron Casting and Graded Iron Casting with an annual capacity of 2600 MTA and 1000 MTA respectively. Both the capacities were increased to 14400 TPA and 9600 TPA respectively. SSL’s investment in this subsidiary is Rs.51 cr. and SACL is all set to turn the corner in FY07 with a net profit of about Rs.10 cr.
For 30th June ending FY05, SSL increased its sales by 114% to Rs.619 cr. and posted a net profit of Rs.27 cr. against net loss of Rs.25 cr. in the previous year. During Q2FY06, its net profit has taken a quantum jump of 185% to Rs.20 cr. from Rs.7 cr. in Q2FY05. During 9 months of FY06, sales advanced by 75% to Rs.381 cr., net profit shot up by a whopping 549% to Rs.28.9 cr.
Its equity capital is Rs.31.4 cr. With reserves of Rs.299 cr., the book value of the share works out to Rs.105. Its debt-equity ratio is 1.7:1 and the value of the gross block is a whopping Rs.635 cr. The promoters hold 38% in its equity capital, FIIs hold 29%, non-promoter corporate holding is 8%, domestic institutions hold 3% and government holding is 3% leaving 18% with the investing public.
SSL has 35 MW co-generation project at its Sakthinagar sugar unit and a 2 MW co-generation plant at the Sivaganga sugar unit.
SSL is busy setting up a new sugar mill of 3000 TCD together with a 25 MW co-generation plant as a greenfield project. A 35 MW co-generation plant is to be set up at its sugar unit in Padamathur Village, Sivaganga and 25 MW at Sakthinagar, Bhavani Taluk, and Erode District.
Further, the cane crushing capacity of its Sakthinagar sugar unit in Erode District is being enhanced from 6000 TCD to 9000 TCD. The process for setting up a beverage project with Hindustan Coca-Cola Beverages is complete and the plant is ready for operation.
SSL has plans to raise US$ 50 million (about Rs.230 cr.) to fund its expansion plans. Of the total capital that the company would raise, Rs.150 cr. would be spent to set up two co-generation plants and the remaining amount would be spent to set up a new sugar mill.
The sugar industry is in the pink of health with a significant increase in production in FY06 compared to the previous period. Going forward, the industry is also expected to witness shortfall in supply in the next couple of years. Top players are initiating expansion plans and contemplate good growth in production and profitability in coming years on account of the bumper sugarcane crop. A significant cut in European Union subsidy and the drought in major sugar producing countries like Thailand and strong price movements in neighbouring countries like Pakistan, Sri Lanka and Bangladesh augur well for the future prospects of the Indian sugar industry.
India’s sugar output in the sugar season year to September 2006 is likely to be around 18.5 million tonnes as against 13 million tonnes, a year ago. Strong sugar demand and a booming export market will boost sugar production, which is likely to rise to 21-22 million tonnes in the year to September 2007. The higher sugar output is likely to be exported, which is likely to increase to 1.5 million tonnes next year. The domestic demand, too, is expected to increase industry sources say.SSL is increasing the FII limit upto 50% of the paid-up equity capital of the company. Recently, Deutsche Bank has picked up 16, 20,000 shares from the open market aggregating to 5.16% of the share capital. Total foreign holding has now gone upto 28.8%. The counter has been attracting hectic activity with substantial investment buying.
SSL is all set to post a net profit of Rs.100 cr. after extraordinary write off of Rs.34 cr. in the current year. The EPS before extraordinary expense could work out to Rs.43. The share trades at a forward P/E of just 6 against the industry average P/E of 24 leaving tremendous scope for the share to rise handsomely. The 52-week high and the low of the share has been Rs.275/ 64.
MY TAKE : STOCK SHLD BE BOUGHT AFT A BIT OF CORRECTION.....235 ACTS A GOOD SHORT TERM SUPPORT....30% CAN BE BOUGHT ARND THOSE LEVELS N REST ARND 190
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