HYDERABAD IND…..CURRENTLY 415…..STOPLOSS OF 390 SHLD BE MAINTAINED…..SHORT TERM 480-500
JUPITER BIO…..120….STOPLOSS112……SHORT TERM TARGET 135-150
SURYALAXMI COTTON…..200…..STOPLOSS 190….SHORT TERM TARGET 235-250
NAHAR INDUSTRIES…123 RIGHT NOW….STOPLOSS 117….SHORT TERM 150
AARTI IND….CURRENTLY 73…STOP LOSS 68….NEWS IS THT ANIL AMBANI HAS TAKEN A STAKE IN THIS COMPANY…..SHORT TERM TARGET 83-85
CENTURY ENKA….CURRENTLY 171….STOPLOSS 165….SHORT TO MEDIUM SHLD BE ARND 200-225 QUITE LIKELY…..3 MONTH HOLD
Thursday, March 30, 2006
granules ltd......
Granules India is a merchant exporter of bulk drugs like Paracetamol, Guaifenesin and Chloro Pheniramine Maleste. It has been exporting mainly to the developed markets such as U.S.A., Europe, Mexico and Hongkong.Company has commenced the Commercial Production w.e.f. March 10, 2006, from its API plant situated at Bonthapally, Medak Dist., Andhra Pradesh, with a manufacturing capacity of 8000 TPA of Paracetamol. The unit is a 100% EOU. The company registered 53 per cent rise in net profit at Rs 2.22 crore for the quarter ended December 2005, as against Rs 1.45 crore recorded in the corresponding quarter of the previous year. The company's sales increased by 43 per cent to Rs 44.44 crore as against Rs 31.15 crore in the same period last financial year.Granules India is moving up on strong export impetus. Granules India, engaged in the manufacture of compressible granules as a value-added product to the pharmaceuticals formulation players, is witnessing steady growth in its sales and exports. It has established itself as a favoured partner with an array of pharmaceuticals companies world over in the API outsourcing market. With its latest facilities and several approvals, including USFDA for its plant, the company has gained an edge over its competitors in the international arena. A few global pharmaceutical companies posses the capability to provide granulation solutions in commercial batch sizes at a time when globally granulation outsourcing is increasing for cost consideration. Granules India is among a few global companies offering a product range comprising PH solution in combination with others. The company's ability to provide tablets in batch sizes has also extended its clout in the outsourcing market. The company has raised additional fund through issue of warrants to promoters at a price of Rs 102.50 to carry on with the expansion work.The company has issued GDR at a price of .30 which comes to around Rs 103.50.The proceeds of this issue were mainly being used for expansion projects that were in various stages of implementation and were yet to contribute to the earnings.The script is trading at P/E of 14 discounting FY06-07 expected EPS of 5.8 and 11 discounting FY07-08 expected EPS of 7.25 which looks reasonable.Technically,the script has fallen hard from the levels of 124 and is now trading around 84 levels.It has major support around 80 levels which looks unlikely to break.So downside looks limited.Moreover the company is expected to post good result for quarter ending 31st March,2006
one can buy 50% right now n 50% at 80 levels
one can buy 50% right now n 50% at 80 levels
heritage food
Heritage Foods (India) Ltd (HFL) is one of South India's leading privatesector milk processing and distribution companies. Hyderabad based HFL ispromoted by Mr. Chandrababu Naidu and family. It has got presence in southIndia's three leading states i.e. Andhra Pradesh, Tamil Nadu and Karnataka.It derives its turnover from large cities in Andhra (42%), Tamil Nadu (28%)and Karnataka (30%).*Industry Outlook: -*Incidentally, in India, only 15% milk is processed in factories for liquidmilk and milk production otherwise most of the milk comes from unorganizedsector (which sells loose and often adulterated milk). But, this scenario isexpected to be changed sooner then later amidst changing demographiccondition. Global consumption pattern shows that as income increases, theconsumption of protein foods increases. India is no exception. As per theICRA report, increasing income always accompanied by a change in the foodbasket.The growth of disposable income, change in family structure, focus onhealthy, nutritious and quality products are likely to result in demand fora shift towards branded safe and quality dairy products. Growing demand ofDiet milk, Fortified milk and other such niche categories are example of it.The projected demand for milk and milk products in 2020 is expected toincrease more than five times to 289 mn tones from 52 mn tones in 1993. Sourban India is going to be effective market for branded and healthy milk andrelated products. Currently nearly 50% of total milk produced is beingconsumed by urban India. The expected rise in urban population (it isestimated to grow by 85 million over the next 10 years, the second highestin the world) and the amplification of the affluent & upper middle levelgroups would be a windfall to Indian dairying.*Diversifying into Food Retailing and Infrastructure Development: -*It has recently announced its intention of foraying into retail business forfood processing products. Here the company will not only market only its ownproducts but also that of other food processing companies. It decided toappoint KSA Technopak (India) Pvt Ltd, a Curt Salmon Associates jointventure, as consultants for the proposed processed food products retailbusiness. KSA has to its credit successful experience of working withleading FMCG majors such as ITC and HLL. At present, three teams of KSA areworking out details on procurement, technology and logistics for foodproducts retailing. I expect the final report of KSA on the business modelto be ready by March-end. I expect once the retail foray takes shape,company growth from this segment will spur the revenue and valuations.Further the company also proposed to gain from the booming infrastructureindustry using its current networth towards taking up of projects in the BOTmodel. It has recently Floated an infrastructure company – Heritage InfraDevelopers Ltd, wherein the company would hold 51% equity. The company hasplots of land in Hyderabad, Chennai and other cities. It will developcommercial and residential flats on these plots. Also, this new subsidiaryis expected to participate in government infrastructure projects. The paidup capital of this company will be Rs. 90 mn. It will pay 6 to 7 mn toacquire 51% stake in this company. This will be a one time funding activityand further free cash flows of Heritage food will not be deployed to fundthe expansion activities of this infrastructure company.*Future Outlook: -*HFIL's future growth would be driven by increasing consumption of milk, gainin market share from unorganized sector (which sells loose and oftenadulterated milk), entry into new cities and higher sales of value addedproducts such as ghee, Curd, Paneer, Cream etc.On the back of better monsoon this year the raw milk prices (accountsfor 79-81% of total operating expenditure) have fallen by approximately 10%in all three states in which the company operates. This is quite visible inthe Nine Month operating margins, which are at 8.15% compared to 7.8% of theFY05. For the nine month ended December'05, the turnover has increased by 9%YOY while PAT has increased by 42.75%, jumped to Rs.9.85 Cr.*Valuations: -**At CMP of Rs.175, it is selling at just 8.33x its expected FY07 earnings ofRs.21, which is very low for the company which has maintained CAGR of 41% insales and 39% in net profits since inception and average RoE of over 25%during the same period*. In its core business, company expects its volume togrow 15-20% going forward on the back of venturing into new states likeKerala and also by increasing its market share into existing states byopening more plants and distribution centers. *Diversifying intoinfrastructure development & processed food products retailing would lead tode-risking of revenues and company's earning will be on high growthtrajectory than what has observed so far from its core business, hencegoing forward HFL is ideal case for PE re-rating. I think Re-rating wouldhappen someday or other.****Also, in terms of Market cap/Sales ratio, its valuation is ridiculouslycheap. The company is available at a market cap of around Rs.165Cr. It isselling at Mcap/ Sales ratio of 0.57 for its FY06 sales of Rs.287.1Cr.Taking into consideration past return ratios up to 2004; it has potential toachieve Mcap/ Sales of 1.3 to 1.5 which is benchmark for commodity playersin normal times. Even if we give 1 time Mcap/ Sales over FY06 sales, HFL isavailable at very cheap and attractive valuations.* *I feelthat the Heritage Foods's Share price would Outperformer broad market rally.****Concerns: -***The dairy business is susceptible to seasonal fluctuation. Drought in theprocurement area leads to shortage of milk outputs, this in turn impacts thequantity of milk a company can procure process & sell. Also, the liquid milkbusiness is not capital intensive and there very few entry barriers forkeeping out new entrants. So, going forward, higher competition level mayimpact company's growth and profitability. However, we are confident onHFL's business model amidst its latest initiatives of entering intoretailing of high margin, value added packaged milk products andinfrastructure development activity. We also feel that the company isuniquely positioned to capture growth in existing states as well as newstate such as Kerala.
rajesh exports.....keep a watch
They have just come out with their Q1 results, which show a healthy> bottomline growth to 16,8crs, which is a good 130% growth y-o-y. The> NPM has improved from 1% to 1.6%, which is set to increase further to> 2% in FY-06, with a commensurate GPM of 4%. Their foray into the> branded jewelry segment will improve their overall margins in the> years to come, and the company expects a minimum CAGR of 15-20% during> the next 5 years. They also plan to focus on retailing, and have> opened 11 outlets this year, with 35 more in the pipeline.
Rajesh Exports advised for buying some time in July/August, at 680+levels (rs.10 f/v) today moved up smartly, to close at its all-timehigh of 248+ (rs.2 f/v). With their acquisition of Oyzter Bay, and emphasis on retailing, a lotmore could be expected from RAJESH EXPORTS, as they seem to be on theright track to achieving greater heights in the coming future. Those who bought earlier may stay invested, while new entrants maylook to enter at cmp/declines, as a price of at least rs.400 in ayear's time could well be realised. ...........................as quoted by chanishji
Rajesh Exports advised for buying some time in July/August, at 680+levels (rs.10 f/v) today moved up smartly, to close at its all-timehigh of 248+ (rs.2 f/v). With their acquisition of Oyzter Bay, and emphasis on retailing, a lotmore could be expected from RAJESH EXPORTS, as they seem to be on theright track to achieving greater heights in the coming future. Those who bought earlier may stay invested, while new entrants maylook to enter at cmp/declines, as a price of at least rs.400 in ayear's time could well be realised. ...........................as quoted by chanishji
control print- juss a coverage
Control Print India Ltd (CPIL) is a leader in the coding and markingmachinery with a market share of around 40%. The company has a solemarketing agreement with the world leader "Videojet" for its coding andmarking machinery in India. It has a product range of contact coders,superior touch coders, specialized metal marking systems, sophisticated inkjet coders and also the advanced laser coders along with necessaryconsumables, spare parts, service and training - all under one roof.The company is setting up its own manufacturing facility to cater to the lowcost contact coders. In addition the company has also started marketing highend digital coding and marking machines in India. With the manufacturingfacility in Baddi becoming operational from early FY07, sales growth isexpected to get a boost. This along with a rise in the coder and markerbase, CPIL should derive higher margins through consumable sales.*The stock is currently trading at an FY07E PE (x) of 8.1x
rpg transmission
RPG Transmission Ltd (RPGTL) is a player in power transmission, railwayelectrification and telecommunication tower constructing and erecting space.The company is engaged in designing, constructing and erecting of highvoltage AC and DC transmission lines. RPGTL had been making losses for sixyears and has turned around at operational levels during the year. Thegovernment has laid emphasis on development of power, transmission anddistribution sector. This will lead to laying of 60,000ckm transmissionlines for distribution of power from surplus states to deficient states.With RPGTL turning around it will now be eligible for bidding for tendersfrom Powergrid Corporation of India Ltd who issues majority of the contractsto private players. The company undertook CDR last year under which itrepaid a portion of its debt and replaced the remaining with lower costdebt. The company has a confirmed order book of Rs4bn, which is nearly3.9xFY05 annualized revenues. The company also bid for a couple oforders whereit is the lowest bidder and expects them to be awarded in the near future.*With acceleration in power sector reforms, and focus on transmission anddistribution and the company turning around during the year we expect thecompany to post a jump in its earnings for the next couple of years
Tuesday, March 21, 2006
Ind-Swift group - Frauds!!!
DGCEI UNEARTHS HUGE CENVAT FRAUD New Delhi,March 14, 2006: Tax authorities have unearthed a huge racketin Cenvat claims by manufacturers, who used fictitious invoices to claimcredit on central excise duty payments and in the process robbed thegovernment exchequer of several hundred crores of rupees. "Ind Swift Group of Companies had taken credit worth crores of rupees onthe basis of invoices of fictitious or non existent or non-registeredmanufacturers and dealers," said the Directorate General of CentralExcise Intelligence.During its nationwide operation on March 8, DGCEI had raided and seizedincriminating documents from the office and factory premises ofChandigarh-based Ind Swift and a large number of manufacturers anddealers in Ghaziabad and Noida.This is only the tip of the iceberg and a large number of dealers andmanufacturers are involved in Cenvat misuse in several parts of thecountry like Faridabad, Naraina (Delhi), Mandi Govindgarh, Vashi (NewMumbai), Hyderabad and Ahmedabad, it said."Further investigations are expected to unearth fraudulently availedCenvat running into several hundred crores of rupees," DGCEI said andwarned that it would come down heavily on fraudsters.According to rules, manufacturers of excisable goods are entitled totake credit of the central excise duty paid on inputs, while payingexcise duty on finished products.Dealers trading in excisable goods, issue invoice showing duty paymentin respect of goods traded by them and actual manufacturers are entitledto use these invoices to take credit on the duty paid on inputspurchased from traders.Investigating agencies suspect large-scale issue of fake invoicesresulting in huge loss to the government exchequer.(PTI)
sanjivani parental...more info
Sanjivani Paranteral is one of the biggest manufacturers of injectables in the country. The company manufactures a range of products including injections, tablets and syrups. The company’s factory holds WHO- GMP certification for its products. Over the years, the company has attained the status of a preferred manufacturer for well-known brands.
Sanjivani Paranteral recently announced that it would launch anti-cancer products in India in association with a European multinational. The Indian market size for these products is estimated to be Rs5bn. The company expects a business of Rs60-70mn in the next year and also expects a growth of 20% in turnover of anti-cancer products every year for the next 5 years.
The company is also expecting major orders from foreign market for these products, particularly from African and Asian countries. At Rs53, the stock is trading at 5.6x 9M FY06 EPS of Rs9.4.
Sanjivani Paranteral recently announced that it would launch anti-cancer products in India in association with a European multinational. The Indian market size for these products is estimated to be Rs5bn. The company expects a business of Rs60-70mn in the next year and also expects a growth of 20% in turnover of anti-cancer products every year for the next 5 years.
The company is also expecting major orders from foreign market for these products, particularly from African and Asian countries. At Rs53, the stock is trading at 5.6x 9M FY06 EPS of Rs9.4.
ELDECO HOUSING
ELDECO HOUSING LTD-Small Equity, Strong Numbers
Eldeco has what it takes to bring in phenomenal returns to investors.
CMP
225
BSE Code
523329
With hard-core technical people sitting in the center, Eldeco Housing is a name to be reckon with construction in UP. With a 13-year-old history, there are many group companies under the flagship of Eldeco, a few of them are: Eldeco construction Pvt. Limited, Eldeco housing and Industries Limited, Eldeco Infrastructure and properties Limited (run by Mr. Pankaj Bajaj), Eldeco buildtech Pvt. Limited, Eldeco Projects Pvt. Limited.
With Mr. Pankaj Bajaj emerging as a Young Turk in the Housing sector, and founder MD Mr. VK Garg growing in age, the chances of merging all group concerns under one roof is a high probability. If this move works out on desired lines, the 1400 acres of land bank owned by the unlisted Eldeco Infra, could come under Eldeco Housing and add to the existing 400 acres of land bank that Eldeco Housing has in Lucknow, Noida, Greater Noida, Ghaziabad, Faridabad and Gurgaon.
In last few years time, company has completed projects worth Rs.100 crs in Lucknow, Kanpur, Agra, Noida and Greater Noida.
For the next 5 years time, company has confirmed orders of Rs.450 crs and to complete the projects on time, the company is working overtime. Some of the big projects, which are currently under construction, are Ananda (Noida), Eldeco Mansionz (Gurgaon), Utopia (Greater Noida), Golf view apartments (Greater Noida) Residency greens, Green Meadows, Eldeco arcadia, and Eldeco apartments, Vaishali.
The company faces no problem in getting loans from the banks because of the strong balance sheet. Apart from that, the projections given by the different bodies of GOI for the construction shows and holds a very promising future for the company and for the industry.
We expect a price of Rs.500 in one year's time
Eldeco has what it takes to bring in phenomenal returns to investors.
CMP
225
BSE Code
523329
With hard-core technical people sitting in the center, Eldeco Housing is a name to be reckon with construction in UP. With a 13-year-old history, there are many group companies under the flagship of Eldeco, a few of them are: Eldeco construction Pvt. Limited, Eldeco housing and Industries Limited, Eldeco Infrastructure and properties Limited (run by Mr. Pankaj Bajaj), Eldeco buildtech Pvt. Limited, Eldeco Projects Pvt. Limited.
With Mr. Pankaj Bajaj emerging as a Young Turk in the Housing sector, and founder MD Mr. VK Garg growing in age, the chances of merging all group concerns under one roof is a high probability. If this move works out on desired lines, the 1400 acres of land bank owned by the unlisted Eldeco Infra, could come under Eldeco Housing and add to the existing 400 acres of land bank that Eldeco Housing has in Lucknow, Noida, Greater Noida, Ghaziabad, Faridabad and Gurgaon.
In last few years time, company has completed projects worth Rs.100 crs in Lucknow, Kanpur, Agra, Noida and Greater Noida.
For the next 5 years time, company has confirmed orders of Rs.450 crs and to complete the projects on time, the company is working overtime. Some of the big projects, which are currently under construction, are Ananda (Noida), Eldeco Mansionz (Gurgaon), Utopia (Greater Noida), Golf view apartments (Greater Noida) Residency greens, Green Meadows, Eldeco arcadia, and Eldeco apartments, Vaishali.
The company faces no problem in getting loans from the banks because of the strong balance sheet. Apart from that, the projections given by the different bodies of GOI for the construction shows and holds a very promising future for the company and for the industry.
We expect a price of Rs.500 in one year's time
KCP LTD
KCP Ltd has 5 divisions :
1. Cement - 5 lakh tons at Macherla, Andhra Pradesh (30kms from Nagarjuna Sagar)
2. Hydropower - Small 8 mw power plant near a place called Vinukonda for captive use.
3. Engineering - Workshop at Tiruvottiyur in Chennai - 130 acres
4. Sugar subsidiary in Vietnam
5. Biotech.
Cement :
The company has reported a loss of about 2.20 crs for the first 9 months as realisations were very poor. This is due to the fact that it is present in a bad cluster. There is a lot of overcapacity in their cluster. The cement companies in that cluster got together and agreed on maintaining price discipline. The other players in this cluster are India Cements, Pennar Cement and Priyadarshini Cement. However due to the floods in Karnataka and Tamil Nadu, manufacturers like India Cements dumped their excess stock in Andhra which significantly depressed prices. The prices were between 110 - 120 a bag.
However, in the fourth quarter prices have recovered to between 130 - 140 a bag and the company should be able to recover their losses in this segment for the last 9 months. The company should report close to 100 crs revenues this year from cement. The company selles 85% in Andhra, 10% in Tamil Nadu and 5% in other states like Karnataka. The capacity utilisation is close to 100%.
Hydropower :
This plant was set up a few years ago to cut down their operating costs. However due to the erratic rainfall in the past few years, the plant was not running at optimum level. Only this year, the power plant is making a significant contribution to the profits.
Engineering :
The company operates in 5 segments :
1. Power - The company manufactures the mechanical part of power equipment like gears for turbines, spiral tubes etc.
2. Cement Machinery - The company earlier had a joint venture with the global leader in cement machinery, Fuller. It was called Fuller KCP. The company has now become a 100% sub of Fuller India. Fuller has moved its global design centre to Chennai. FL Smith has now taken over Fuller globally. Fuller does not have a manufacturing facility in India and KCP being so closely associated with them is a preferred partner. KCP manufactures the entire range of cement machinery. The main competitors are Walchandnagar Industries and Krupp India Ltd. The company has had very few orders from the cement sector for the last few years due to the lack capex. However as cement prices keep trending upwards, cement players may now begin to get tempted to get into an expansion mode again and hence KCP could be one of the biggest beneficiaries assuming Fuller bags a lot of the orders.
3. Sugar - KCP manufacuters sugar machinery like boilers. It has supplied equipment to companies like the EID group in the past. KCP's strength is in the south. However as not many south based sugar companies are expanding at the moment, the sugar order book isn't very large at the moment. If sugar prices remain strong, there could be a hughe capex in the south next year.
4. Defence equipment - KCP manufacutrers mechanical components for defence equipment. Their client base includes DRDO, ISRO etc. They have built the second rocket launhpad at Sriharikota showing what they are technically capable of. The company hopes that as more and more defence production is getting diverted to the private sector, the order book will increase.
5. General Engineering Equipmet - These are custom build applications for companies in a diverse range on industries. This contributes almost 50% of engg division sales.
The engineering order book is about 80 crs.
Sugar :
KCP holds a 66% stake in a sugar company in Vietnam. The company has a crushing capacity between 2500 to 3000 TCD. The plant has a sugar refinery. This gives KCP the flexibility to either buy cane from local farmers if the crop is good or import raw sugar and sell it domestically if there is a crop failure. Either way, KCP is hedged. For the last few years, this subsidiary has been making losses as the initial plant location was not suitable for sugarcane. The yields and recovery rate were low. Hence last year KCP dismantled the plant and moved it to a more appropriate area. This subsidiary is likely to report sales of approx 60 crs and report its first year of profits.
Biotech :
KCP has a small biotech plant in Hyderabad. The company extracts natural colours from chillies, turmeric etc and exports it to South Africa, US, Japan and other EU countries. However, the current sales are extremely low and the company is still running the biotech facility like a testing centre. They are facing practical difficulties like getting uniform quality chillies and turmeric as there cannot be a variation in the colour extracted. Hence for the moment this division is going to remain extremely small while the company tries to make the operations commercially viable. This division has a small loss.
Financials:
From very rough calculations, the company sould do a consolidated turnover of close to Rs 250 crs in FY06 with a PAT of about 16 crs. On an equity base of 12.89 crs this gives an EPS of about 12.50. At the current price of 170, it trades at 13.5 times.
Property :
KCP holds some really prime property. The corporate office is located in Egmore just off Mount Road. The company has 30 grounds of posh property. Each ground = 2400 sq feet. MICO recently sold its property located close by at about 2crs per ground. On the basis of that the land value is 60 crs.
KCP had aquired 130 acres of land in Tiruvottiyur for their Engineering workshop about 40 years ago at about 500/acre. Tiruvottiyur is a suburb of Chennai, just a few kms from Parrys Centre. When KCP aquired the property, it was an industrial belt. However, Tiruvottiyur has now reportedly developed into a middle class residential locality. According to local real estate brokers, the land is going at about 1500/sq ft. Assuming its going at 1000/sq ft, the value of that property is about 500 crs.
The total long term debt of KCP is just about 6 crs. The mkt cap at the current price is 220 crs. So, total enterprise value is abt 230 crs. However, the company has said that they don't have any plans of unlocking the land value by either selling it or developing it.
Growth Plans :
On stabilisation of cement prices, the company would like to expand its cement capacity from 5 lakh tons per annum to 7.5 lakh tons per annum. Also the company wants to increase the capacity of its engineering workshop and expand the product range it offers. Depending on how the sugar subsidiary in Vietnam performs, an expansion plan may also be developed for it.
Negative concerns :
The company is extremely conservative and does not disclose any information on their operations. They do not reveal even basic information which makes it extremely difficult to make accurate projection of their profits. Also, as the company has so far said it isn't interested in unlocking value from its land holdings, this stock may remain significantly under invested as far as funds are concerned. However there is deep value in the stock.
Fair Value Calculations :
Real Estate :
Tiruvottiyur - 56 lakh sq ft @ 1000/sq ft - Rs 560 crs
Egmore - 30 grounds @ 2 crs / ground - Rs 60 crs
Total Real Estate Value - Rs 620 crs
Cement :
5 lakh tons @ us $ 70/ton - 154 crs
Hydropower :
8 mw @ 2crs/mw - 16 crs
Sugar Subsidiary :
Estimated profit - 6 crs
KCP's share @ 66% - 4 crs
PE @ 5
Value - 20 crs
Total Value - 800 crs (This does not include the property in Hyderabad, Biotech division and Engineering division equipment)
Total enterprise value - 230 crs
Net Value - 570 crs
Net Value per share - 440
Current Price - 170
1. Cement - 5 lakh tons at Macherla, Andhra Pradesh (30kms from Nagarjuna Sagar)
2. Hydropower - Small 8 mw power plant near a place called Vinukonda for captive use.
3. Engineering - Workshop at Tiruvottiyur in Chennai - 130 acres
4. Sugar subsidiary in Vietnam
5. Biotech.
Cement :
The company has reported a loss of about 2.20 crs for the first 9 months as realisations were very poor. This is due to the fact that it is present in a bad cluster. There is a lot of overcapacity in their cluster. The cement companies in that cluster got together and agreed on maintaining price discipline. The other players in this cluster are India Cements, Pennar Cement and Priyadarshini Cement. However due to the floods in Karnataka and Tamil Nadu, manufacturers like India Cements dumped their excess stock in Andhra which significantly depressed prices. The prices were between 110 - 120 a bag.
However, in the fourth quarter prices have recovered to between 130 - 140 a bag and the company should be able to recover their losses in this segment for the last 9 months. The company should report close to 100 crs revenues this year from cement. The company selles 85% in Andhra, 10% in Tamil Nadu and 5% in other states like Karnataka. The capacity utilisation is close to 100%.
Hydropower :
This plant was set up a few years ago to cut down their operating costs. However due to the erratic rainfall in the past few years, the plant was not running at optimum level. Only this year, the power plant is making a significant contribution to the profits.
Engineering :
The company operates in 5 segments :
1. Power - The company manufactures the mechanical part of power equipment like gears for turbines, spiral tubes etc.
2. Cement Machinery - The company earlier had a joint venture with the global leader in cement machinery, Fuller. It was called Fuller KCP. The company has now become a 100% sub of Fuller India. Fuller has moved its global design centre to Chennai. FL Smith has now taken over Fuller globally. Fuller does not have a manufacturing facility in India and KCP being so closely associated with them is a preferred partner. KCP manufactures the entire range of cement machinery. The main competitors are Walchandnagar Industries and Krupp India Ltd. The company has had very few orders from the cement sector for the last few years due to the lack capex. However as cement prices keep trending upwards, cement players may now begin to get tempted to get into an expansion mode again and hence KCP could be one of the biggest beneficiaries assuming Fuller bags a lot of the orders.
3. Sugar - KCP manufacuters sugar machinery like boilers. It has supplied equipment to companies like the EID group in the past. KCP's strength is in the south. However as not many south based sugar companies are expanding at the moment, the sugar order book isn't very large at the moment. If sugar prices remain strong, there could be a hughe capex in the south next year.
4. Defence equipment - KCP manufacutrers mechanical components for defence equipment. Their client base includes DRDO, ISRO etc. They have built the second rocket launhpad at Sriharikota showing what they are technically capable of. The company hopes that as more and more defence production is getting diverted to the private sector, the order book will increase.
5. General Engineering Equipmet - These are custom build applications for companies in a diverse range on industries. This contributes almost 50% of engg division sales.
The engineering order book is about 80 crs.
Sugar :
KCP holds a 66% stake in a sugar company in Vietnam. The company has a crushing capacity between 2500 to 3000 TCD. The plant has a sugar refinery. This gives KCP the flexibility to either buy cane from local farmers if the crop is good or import raw sugar and sell it domestically if there is a crop failure. Either way, KCP is hedged. For the last few years, this subsidiary has been making losses as the initial plant location was not suitable for sugarcane. The yields and recovery rate were low. Hence last year KCP dismantled the plant and moved it to a more appropriate area. This subsidiary is likely to report sales of approx 60 crs and report its first year of profits.
Biotech :
KCP has a small biotech plant in Hyderabad. The company extracts natural colours from chillies, turmeric etc and exports it to South Africa, US, Japan and other EU countries. However, the current sales are extremely low and the company is still running the biotech facility like a testing centre. They are facing practical difficulties like getting uniform quality chillies and turmeric as there cannot be a variation in the colour extracted. Hence for the moment this division is going to remain extremely small while the company tries to make the operations commercially viable. This division has a small loss.
Financials:
From very rough calculations, the company sould do a consolidated turnover of close to Rs 250 crs in FY06 with a PAT of about 16 crs. On an equity base of 12.89 crs this gives an EPS of about 12.50. At the current price of 170, it trades at 13.5 times.
Property :
KCP holds some really prime property. The corporate office is located in Egmore just off Mount Road. The company has 30 grounds of posh property. Each ground = 2400 sq feet. MICO recently sold its property located close by at about 2crs per ground. On the basis of that the land value is 60 crs.
KCP had aquired 130 acres of land in Tiruvottiyur for their Engineering workshop about 40 years ago at about 500/acre. Tiruvottiyur is a suburb of Chennai, just a few kms from Parrys Centre. When KCP aquired the property, it was an industrial belt. However, Tiruvottiyur has now reportedly developed into a middle class residential locality. According to local real estate brokers, the land is going at about 1500/sq ft. Assuming its going at 1000/sq ft, the value of that property is about 500 crs.
The total long term debt of KCP is just about 6 crs. The mkt cap at the current price is 220 crs. So, total enterprise value is abt 230 crs. However, the company has said that they don't have any plans of unlocking the land value by either selling it or developing it.
Growth Plans :
On stabilisation of cement prices, the company would like to expand its cement capacity from 5 lakh tons per annum to 7.5 lakh tons per annum. Also the company wants to increase the capacity of its engineering workshop and expand the product range it offers. Depending on how the sugar subsidiary in Vietnam performs, an expansion plan may also be developed for it.
Negative concerns :
The company is extremely conservative and does not disclose any information on their operations. They do not reveal even basic information which makes it extremely difficult to make accurate projection of their profits. Also, as the company has so far said it isn't interested in unlocking value from its land holdings, this stock may remain significantly under invested as far as funds are concerned. However there is deep value in the stock.
Fair Value Calculations :
Real Estate :
Tiruvottiyur - 56 lakh sq ft @ 1000/sq ft - Rs 560 crs
Egmore - 30 grounds @ 2 crs / ground - Rs 60 crs
Total Real Estate Value - Rs 620 crs
Cement :
5 lakh tons @ us $ 70/ton - 154 crs
Hydropower :
8 mw @ 2crs/mw - 16 crs
Sugar Subsidiary :
Estimated profit - 6 crs
KCP's share @ 66% - 4 crs
PE @ 5
Value - 20 crs
Total Value - 800 crs (This does not include the property in Hyderabad, Biotech division and Engineering division equipment)
Total enterprise value - 230 crs
Net Value - 570 crs
Net Value per share - 440
Current Price - 170
ansal housing
Key Takeaways
Pan India presence with land bank worth Rs 4.8 bn or Rs 287 per share. AHCL has land bank of around 1200 acres in various cities all over India to develop townships. Net of Debt, Value of land bank is Rs 4 bn or Rs 242 per share. Company has 18 projects in hand, which would generate revenues of Rs 22 bn over the next 6-7 years, with estimated profits of Rs 6.5 bn in the same period.
As per the DCF analysis, the present value of the stock works out to Rs 312 per share. Expect EPS growth of 141 per cent between FY 2005 - 2008 to Rs 15.7 in FY 2006, Rs 29.4 in FY 2007 and Rs 44.9 in FY 2008.
Stock trades at 10x FY07 forecast earnings
MY TAKE: the stock has run up frm 80 levels (mid nov) to current 300 levels.....investing at current price might burn some hands.......i might start accumulating it if it falls to 200 or below...much safer n attractive at those levels
Pan India presence with land bank worth Rs 4.8 bn or Rs 287 per share. AHCL has land bank of around 1200 acres in various cities all over India to develop townships. Net of Debt, Value of land bank is Rs 4 bn or Rs 242 per share. Company has 18 projects in hand, which would generate revenues of Rs 22 bn over the next 6-7 years, with estimated profits of Rs 6.5 bn in the same period.
As per the DCF analysis, the present value of the stock works out to Rs 312 per share. Expect EPS growth of 141 per cent between FY 2005 - 2008 to Rs 15.7 in FY 2006, Rs 29.4 in FY 2007 and Rs 44.9 in FY 2008.
Stock trades at 10x FY07 forecast earnings
MY TAKE: the stock has run up frm 80 levels (mid nov) to current 300 levels.....investing at current price might burn some hands.......i might start accumulating it if it falls to 200 or below...much safer n attractive at those levels
Monday, March 20, 2006
pricol.....contra script
I examined the nine-month financial statement of Pricol Ltd.
In summary
a) The sales have increased marginally (7.4%) over the nine-month period in the last FY (2004)
b) Correspondingly, the PBT have fallen significantly (from 43.9 crs to 28.6 crs; a drop of 34.8%)c) Notice the rise in interest cost. The nine month interest cost is at 8.43 crs while the financing cost was 4.87 crs in the previous FY. (a 73% rise)
d) Net profit after tax, dep and interest (PAT) is at 22.9 crs while it was 28.09 crs for FY2004-05.
The balance sheet reads ...Share Capital - 9.00 crsLoans - 155.90 crsInvestments - 14.75 crsNet CA - 86.13 crsFV - 1.00 rupees per shareDividend per share - 1.00 rupeeCMP - 39.75 rupees/share (15-Mar)Thus, the NCAV (as per 2004-05 balance sheet would come to negative 7.75).
Estimating trends in FY2005-06, I find ...1. The profits for the year should be around 29 crs. This would mean a P/E of 12.08 on todays CMP.
2. There is no margin of safety here. The NCAV is infact, negative.
3. The company would be in a position to give a dividend of 75 paise only this yr due to the lower earnings. This comes to a 1.89% dividend yield.
4. There is no news of value on the stock too - although it has decent volumes on the bourses.
My take - this stock will not move much from this level for the next few weeks. Further improvements in the stock price will be a function of news or increase profitability. There is no hidden value in the stock that is visible.
i will start accumulating below 33-35 levels since its a value play...many mutual funds hold this script in their portfolio........a contra script
In summary
a) The sales have increased marginally (7.4%) over the nine-month period in the last FY (2004)
b) Correspondingly, the PBT have fallen significantly (from 43.9 crs to 28.6 crs; a drop of 34.8%)c) Notice the rise in interest cost. The nine month interest cost is at 8.43 crs while the financing cost was 4.87 crs in the previous FY. (a 73% rise)
d) Net profit after tax, dep and interest (PAT) is at 22.9 crs while it was 28.09 crs for FY2004-05.
The balance sheet reads ...Share Capital - 9.00 crsLoans - 155.90 crsInvestments - 14.75 crsNet CA - 86.13 crsFV - 1.00 rupees per shareDividend per share - 1.00 rupeeCMP - 39.75 rupees/share (15-Mar)Thus, the NCAV (as per 2004-05 balance sheet would come to negative 7.75).
Estimating trends in FY2005-06, I find ...1. The profits for the year should be around 29 crs. This would mean a P/E of 12.08 on todays CMP.
2. There is no margin of safety here. The NCAV is infact, negative.
3. The company would be in a position to give a dividend of 75 paise only this yr due to the lower earnings. This comes to a 1.89% dividend yield.
4. There is no news of value on the stock too - although it has decent volumes on the bourses.
My take - this stock will not move much from this level for the next few weeks. Further improvements in the stock price will be a function of news or increase profitability. There is no hidden value in the stock that is visible.
i will start accumulating below 33-35 levels since its a value play...many mutual funds hold this script in their portfolio........a contra script
pacific cotspin.......currently at 9
manufactures 100% cotton combed n carded, waxed yarn. company is a significant player in the coarser n medium segment...i.e in 20's to 60's count of the world cotton yarn market.to fund its expansion, it made a pref allotment to promoters at rs.17 n now is coming with right issue in the ratior 1:2 at 11-13....despite such huge equity dilution of 39 cr...it may report an eps of arnd 2 for 07 n 3 for 08.........agressive investors can take some positon once the stock starts consolidating n find good support for a week........a risky script though......minimum 9-12 months view shld be taken atleast
Chordia Food Products
Moneytimes has mentioned about this stock in Towertalk. The company is dividend paying (15 percent),low equity 2.58 crores,high book value Rs 55. The trigger is it is merging its Food procesing park with itself.At Rs 42 it looks like an attractive option as it will not just be a food procesing company but a company having a full fledged Food park.
There are some information extracted from company website and news papers
Chordia Food Products Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 07, 2006, to consider the proposal to amalgamate, subject to the approval of Central Government, Shareholders, Creditors, Stock Exchanges and the Hon'ble High Court at Mumbai, Agri Food Park India Ltd a closely held non listed public limited company with the Company .Chordia Food Products Ltd
New food park for Pune Chordia Food Products of India is to create a new food park near the city of Pune at a cost of some Rs1 billion (€20.9m) over the next seven years. According to a report from Business Line in 2002 , the 100-acre park is designed to help small and medium-sized food processing companies in the area compete on a level playing field with the bigger players.
Pradeep Chordia, director of the Chordia Food Park, told Business Line that the first two years would see a total investment of around Rs120 million, with five boutique companies, five small-scale producer and one or two medium-sized firms leasing the first few units.
Chordia said the Ministry of Food Processing had already sanctioned the food park status to the project and had contributed Rs40 million to develop various facilities.
The park was also negotiating a number of concessions with the local authorities, he said, adding that the national government had already sanctioned about 25 per cent capital subsidy with an upper limit of Rs5 million for the units to set up their venture. Talks were also on with banks for reduced interest rates for the units.
The park will offer companies a complete range of facilities from processing, packaging, transportation and finance, and would even help them to market the products.
The food park is one of many springing up around India as companies see the potential in the processed food industry there. Chordia said that just 2 per cent of India's total produce was processed as against 70 per cent in developed nations.
The food processing sector is getting sufficient importance at the Central level and can change the face of the rural India, if given a right direction, according to Mr Pradeep Chordia, Managing Director, Chordia Food Products Ltd and Chairman of the Pune chapter of the All India Food Processors Association . He welcomed the focus on food processing, which has been identified as a job creating sector and priority sector status in bank lending among other things
THE IDEA
While 60-70% of all produced fruits and vegetables are processed world wide, only 2% of indian production is simillarly processed. The fast changing food consumption pattern in india and the arrival of several multinationals on the scene has emboldened us to take a step ahead in the food processing industry.
Presenting Chordia Food Park where all like minded small & medium scale enterpreneurs can pilot their product journey from conceptualization to consumer markets.
THE MISSION
Facilitate setting up of food processing business in Chordia Food Park sprawling over a vast expanse by offering infrastucture, Incubation & the right Marketing strategies.
RIGHT BUSINESS DRIVERS
Chordia Food Products Limited have over 40 years of experiance in the food processing industry in areas of pickles, ketchup and other processed fruit and vegetableproducts.
Company holds a very high brand recall value among our consumers under the brand name Pravin having manufacturing units in Maharastra, Karnataka & Tamil Nadu. manufacture and market pickles, ketchup, instant mixes and salt under the popular brand names Pravin & Navin.
THE INFRASTUCTURE
When it comes to food processing: dish out the very best of infrastructure and support. The site, a vast, level area is supplied with abundant electric and water supply. Product testing in well equipped laboratories and hi-tech Quality Control facilities are also available.Assistance in assessing the viability of the project, procurement of machinery and raw materials, setting up of assembly line, packing, distribution and marketing will be provided to all the constituent units of the Chordia Food Park. Most importantly there will be a pilot plant where trials regarding the commercial viability of the product for national & export markets will be executed. also have common administrative facilities at the park. In short, Chordia Food park will provide the entire back end and front end support under one roof.
THE AMENITIES
Product Development Centre
Pilot Plant
Quality Control Laboratories
Cold Storage and Warehouse
Effluent Treatment Plant
Engineering and Maintenance
THE ADMINISTRATIVE FACILITIES
Seminar & Conference Halls
Market & Technology Information
Legal Guidance
Banking Services
VSAT connectivity
Communication Centre
Library
Canteen, Guest House
Exhibition HallCHORDIA FOOD PARK
Chordia Food Park, spread over a vast expanse of land is located at Shirwal; 55 kms. from Pune on Bangalore Pune Highway (NH4). It is about 200 km from the International Airport and from all weather sea port at Mumbai. Peaceful and located amidst the rich and fertile belt of Maharastra where skilled and unskilled labour is available in plently, the park will an ideal location for making an investment in Food processing Industry
There are some information extracted from company website and news papers
Chordia Food Products Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 07, 2006, to consider the proposal to amalgamate, subject to the approval of Central Government, Shareholders, Creditors, Stock Exchanges and the Hon'ble High Court at Mumbai, Agri Food Park India Ltd a closely held non listed public limited company with the Company .Chordia Food Products Ltd
New food park for Pune Chordia Food Products of India is to create a new food park near the city of Pune at a cost of some Rs1 billion (€20.9m) over the next seven years. According to a report from Business Line in 2002 , the 100-acre park is designed to help small and medium-sized food processing companies in the area compete on a level playing field with the bigger players.
Pradeep Chordia, director of the Chordia Food Park, told Business Line that the first two years would see a total investment of around Rs120 million, with five boutique companies, five small-scale producer and one or two medium-sized firms leasing the first few units.
Chordia said the Ministry of Food Processing had already sanctioned the food park status to the project and had contributed Rs40 million to develop various facilities.
The park was also negotiating a number of concessions with the local authorities, he said, adding that the national government had already sanctioned about 25 per cent capital subsidy with an upper limit of Rs5 million for the units to set up their venture. Talks were also on with banks for reduced interest rates for the units.
The park will offer companies a complete range of facilities from processing, packaging, transportation and finance, and would even help them to market the products.
The food park is one of many springing up around India as companies see the potential in the processed food industry there. Chordia said that just 2 per cent of India's total produce was processed as against 70 per cent in developed nations.
The food processing sector is getting sufficient importance at the Central level and can change the face of the rural India, if given a right direction, according to Mr Pradeep Chordia, Managing Director, Chordia Food Products Ltd and Chairman of the Pune chapter of the All India Food Processors Association . He welcomed the focus on food processing, which has been identified as a job creating sector and priority sector status in bank lending among other things
THE IDEA
While 60-70% of all produced fruits and vegetables are processed world wide, only 2% of indian production is simillarly processed. The fast changing food consumption pattern in india and the arrival of several multinationals on the scene has emboldened us to take a step ahead in the food processing industry.
Presenting Chordia Food Park where all like minded small & medium scale enterpreneurs can pilot their product journey from conceptualization to consumer markets.
THE MISSION
Facilitate setting up of food processing business in Chordia Food Park sprawling over a vast expanse by offering infrastucture, Incubation & the right Marketing strategies.
RIGHT BUSINESS DRIVERS
Chordia Food Products Limited have over 40 years of experiance in the food processing industry in areas of pickles, ketchup and other processed fruit and vegetableproducts.
Company holds a very high brand recall value among our consumers under the brand name Pravin having manufacturing units in Maharastra, Karnataka & Tamil Nadu. manufacture and market pickles, ketchup, instant mixes and salt under the popular brand names Pravin & Navin.
THE INFRASTUCTURE
When it comes to food processing: dish out the very best of infrastructure and support. The site, a vast, level area is supplied with abundant electric and water supply. Product testing in well equipped laboratories and hi-tech Quality Control facilities are also available.Assistance in assessing the viability of the project, procurement of machinery and raw materials, setting up of assembly line, packing, distribution and marketing will be provided to all the constituent units of the Chordia Food Park. Most importantly there will be a pilot plant where trials regarding the commercial viability of the product for national & export markets will be executed. also have common administrative facilities at the park. In short, Chordia Food park will provide the entire back end and front end support under one roof.
THE AMENITIES
Product Development Centre
Pilot Plant
Quality Control Laboratories
Cold Storage and Warehouse
Effluent Treatment Plant
Engineering and Maintenance
THE ADMINISTRATIVE FACILITIES
Seminar & Conference Halls
Market & Technology Information
Legal Guidance
Banking Services
VSAT connectivity
Communication Centre
Library
Canteen, Guest House
Exhibition HallCHORDIA FOOD PARK
Chordia Food Park, spread over a vast expanse of land is located at Shirwal; 55 kms. from Pune on Bangalore Pune Highway (NH4). It is about 200 km from the International Airport and from all weather sea port at Mumbai. Peaceful and located amidst the rich and fertile belt of Maharastra where skilled and unskilled labour is available in plently, the park will an ideal location for making an investment in Food processing Industry
karur kcp packing...more info
Karur KCP Packaging is basically an integrated packaging company. This company manufactures paper bag and polypropylene bags. They have fully integrated operations, which means that they manufacture extensible sack kraft paper which is used for making paper bags. They have got four units in all. Two units are located in Pondicherry and two are located in Karur district of Tamil Nadu.
This company is going in for a FCCB issue right now. The proceeds of the FCCB issue will be utilized for taking over another paper unit, which is located in Pondicherry, for capital expansion. Since this company mainly caters to the cement industry, there is a structural change that is happening there. We are seeing consolidation happening in the cement industry now and with the entry of companies like Lafarge and Holcim into the Indian market, I believe there is going to be an increased strength towards the use of more paper bags in the Indian market. In India we only use polypropylene and a very small percentage of paper bags. With their entry, there is gong to be a shift in the use of paper bags and this company being the only manufacturer of extensible sack kraft paper and one of the largest converters of sack kraft papers into paper bags, is going to be the biggest beneficiary of the changing trend.
Besides the opportunity, which is available to the company, it has been performing well too. For the first nine months of the current financial year, they have done a turnover close to Rs 160 crore and they have done a profit of around Rs 6 crore. For the full year, we expect the company to do a turnover of close to Rs 225- Rs 240 crore and a profit close to Rs 8-Rs 9 crore, which means an EPS of Rs 8-Rs 9. At the current price, the stock is discounted at about 10 times and given the potential opportunity for the company and the fact that they are the largest manufacturers of paper bags in India, the opportunities can be good.
So at the current price earning ratio of 10, it does not seem to be fully discounted. Next year, after they complete the FCCB issue and after they takeover another paper company, the turnover and profitability can also go up.
Another thing is that this company has got a debt of around Rs 100 crore. This company is also thinking of ways to restructure that debt and there is a possibility of a decrease of about 4-5% towards the interest cost. So this would mean decrease of about Rs 4-Rs 5 crore on a debt of Rs 100 crore and this goes straight in the bottomline of the company.
one shld buy on decline.....a price for 75 -78 looks good for accumulating....my personal view
This company is going in for a FCCB issue right now. The proceeds of the FCCB issue will be utilized for taking over another paper unit, which is located in Pondicherry, for capital expansion. Since this company mainly caters to the cement industry, there is a structural change that is happening there. We are seeing consolidation happening in the cement industry now and with the entry of companies like Lafarge and Holcim into the Indian market, I believe there is going to be an increased strength towards the use of more paper bags in the Indian market. In India we only use polypropylene and a very small percentage of paper bags. With their entry, there is gong to be a shift in the use of paper bags and this company being the only manufacturer of extensible sack kraft paper and one of the largest converters of sack kraft papers into paper bags, is going to be the biggest beneficiary of the changing trend.
Besides the opportunity, which is available to the company, it has been performing well too. For the first nine months of the current financial year, they have done a turnover close to Rs 160 crore and they have done a profit of around Rs 6 crore. For the full year, we expect the company to do a turnover of close to Rs 225- Rs 240 crore and a profit close to Rs 8-Rs 9 crore, which means an EPS of Rs 8-Rs 9. At the current price, the stock is discounted at about 10 times and given the potential opportunity for the company and the fact that they are the largest manufacturers of paper bags in India, the opportunities can be good.
So at the current price earning ratio of 10, it does not seem to be fully discounted. Next year, after they complete the FCCB issue and after they takeover another paper company, the turnover and profitability can also go up.
Another thing is that this company has got a debt of around Rs 100 crore. This company is also thinking of ways to restructure that debt and there is a possibility of a decrease of about 4-5% towards the interest cost. So this would mean decrease of about Rs 4-Rs 5 crore on a debt of Rs 100 crore and this goes straight in the bottomline of the company.
one shld buy on decline.....a price for 75 -78 looks good for accumulating....my personal view
S R IND......JUSS INFO SHARING
The company has made the following disclosures to BSE at various pointsof time in 2005.details are pasted below.News Subject: SR Industries - UpdatesNews Body: SR Industries Ltd has informed BSE that the Company is presentlyengaged in the manufacture of terry towels at Derabassi, Distt. Patiala,Punjab with an annual capacity of 1500 MT. The Company had pre-paid &cleared the dues of Industrial Development Bank of India.In the current financial year 2005-06, the Company has undertaken amajor expansion programme to double its capacity to 3000 MT/annum and islikely to be commissioned by December 2005. The Company during thecurrent year is expected to achieve a turnover of Rs 500 million and acash profit of Rs 75 million.The Private Promoters have bought the entire holding of 26.10 lac equityshares equivalent to 24.08% from its co-promoter / Joint Sector partnerThe Punjab State Industrial Development Corporation Ltd - a Governmentof Punjab Undertaking.News Subject: SR Industries - UpdatesNews Body: SR Industries Ltd has informed BSE that during the year 2003-04 thecompany had negotiated with the Industrial Development Bank of India(IDBI) for the payment of its total dues amounting to Rs 77.601 millionto be made in installments by April 15, 2005. The Company has pre paid &cleared all IDBI dues on March 29, 2005. SR Industries - Outcome of Board MeetingNews Body: SR Industries Ltd has informed BSE that the Board of Directors of theCompany at its meeting held on September 22, 2005, inter alia, has takenthe following decisions:1. Fixed a price of Rs 29/- (Rs 10/- face value plus Rs 19/- sharepremium) per share for the preferential issue of equity share and theresultant shares arising out of conversion / exchange of warrants,convertible into equal number of equity share (resultant shares), at anytime on or after April 01, 2006 but before February 28, 2007.2. Allotted 5,19,000 equity share and 5,91,000 convertible warrants atabove price to M/s Universal Cyber Infoway Ltd and M/s Susang Mac PvtLtd companies within Promoter Group, in equal proportion
Suryalakshmi Cotton Mills
Broking house, Angel Broking is bullish on Suryalakshmi CottonMills...It has maintained a 'buy' rating on the company with a target price ofRs 300.
Key highlights
Q3FY2006 financial performance*"Suryalakshmi Cotton Mills recorded an impressive Q3FY2006 performance on the back of de-merger of the low-margin spinning division at Mehbubnagar andnew capacities coming on stream. As a result of this de-merger, SCMLwitnessed a margin expansion of 14.1% on a YoY basis. However, margins on asequential basis declined on account of lower realizations in denim, whichdeclined from Rs 94 in Q2FY2006 to Rs 90 in Q3FY2006. Going ahead, we do notexpect realizations to further fall significantly. Besides, a sequential384bps increase in other overheads also affected the margins adversely.Positive contribution from new denim capacities*"SCML is implementing its Rs 120 crore (Rs 1.20 billion) capex plan in thecurrent fiscal to expand its denim capacity from 20 million meters per annumto 40 million meters per annum. The company has already commissioned anadditional weaving capacity of 10 million meters in September'05 and thebalance 10 million meters per annum capacity will commence production inApril'06.""With the expanded capacity coming on stream, SCML will become the thirdlargest manufacturer of denim fabric in India. Share of the Denim divisionto total revenues is expected to increase from 60.4% in FY2005 to 75.7% inFY2007 following expansion of capacity."*Value added products to be earnings accretive*"SCML has a wide range of 300 varieties of denim fabrics and its yarn andrope dyed denim capacities are acknowledged to be one of the finest acrossinternational markets. The company's revenues from value-added denim arealso on the rise following increase in capacities.""We expect the share of value-added denim to increase from 40% in FY2005 to80% in FY2007. The company's concentration on value added denim will help itmaintain its realizations and also help improve its margins and profits."*Garments to facilitate growth*"SCML is setting up a fully integrated denim garment capacity from spinning,dyeing, weaving to finishing. This complete integration will enable SCML tohave a stronghold and presence across the entire denim value chain. Thus,SCML has progressed from being a pre-dominantly yarn manufacturer to afabric manufacturer.""The company also commissioned trial production of its 10,000 pieces a daygarmenting facility in September'05. However, major revenues from the samewould get reflected in FY2007. Going forward, SCML has plans to increase itspresence in its garments business. Overall, SCML's conscious efforts toprogress up the value chain will positively reflect in its profits goingforward."*Yarn manufacturing expansion*"Post de-merger, SCML's spindleage stood at 16,032 which it proposes toincrease to 48,088 by end of this fiscal. Post this expansion; SCML willhave a yarn manufacturing capacity of 14,000 tpa. This new capacity willhelp SCML meet increasing demand for yarn."*Sources of funding*"SCML's expansion programme will be funded through a 1:3:1 mix of freshissue, TUFS and internal accruals.""Preferential allotment of 1,428,300 shares aggregating 10.68% of theexpanded capital has been done with UTI Investment Advisory Limited at Rs245 per share (21% premium to the current market price). This equityinfusion of Rs 35 crore (Rs 350 million) by UTI signifies its faith andexpectation of future profitability of the company."*Outlook and valuation*"SCML's Rs 200 crore (Rs 2 billion) capex is expected to yield betterreturns and enable SCML to have a complete command over the denim valuechain. SCML's foray into denim garments through subsidiary Surya Kiran willfurther enhance its competitiveness and improve its margins andprofitability. We believe that SCML is on track to meet our profit estimateof Rs 34 crore (Rs 340 million) for FY2006E and Rs 54.5 crore (Rs 545million) for FY2007E.""*At the CMP of Rs 204, the stock trades at 4.7x FY2007E EPS of Rs 42.9 and1.4x FY2007E book value. We maintain our Buy recommendation on the stockwith a target price of Rs 300*
Key highlights
Q3FY2006 financial performance*"Suryalakshmi Cotton Mills recorded an impressive Q3FY2006 performance on the back of de-merger of the low-margin spinning division at Mehbubnagar andnew capacities coming on stream. As a result of this de-merger, SCMLwitnessed a margin expansion of 14.1% on a YoY basis. However, margins on asequential basis declined on account of lower realizations in denim, whichdeclined from Rs 94 in Q2FY2006 to Rs 90 in Q3FY2006. Going ahead, we do notexpect realizations to further fall significantly. Besides, a sequential384bps increase in other overheads also affected the margins adversely.Positive contribution from new denim capacities*"SCML is implementing its Rs 120 crore (Rs 1.20 billion) capex plan in thecurrent fiscal to expand its denim capacity from 20 million meters per annumto 40 million meters per annum. The company has already commissioned anadditional weaving capacity of 10 million meters in September'05 and thebalance 10 million meters per annum capacity will commence production inApril'06.""With the expanded capacity coming on stream, SCML will become the thirdlargest manufacturer of denim fabric in India. Share of the Denim divisionto total revenues is expected to increase from 60.4% in FY2005 to 75.7% inFY2007 following expansion of capacity."*Value added products to be earnings accretive*"SCML has a wide range of 300 varieties of denim fabrics and its yarn andrope dyed denim capacities are acknowledged to be one of the finest acrossinternational markets. The company's revenues from value-added denim arealso on the rise following increase in capacities.""We expect the share of value-added denim to increase from 40% in FY2005 to80% in FY2007. The company's concentration on value added denim will help itmaintain its realizations and also help improve its margins and profits."*Garments to facilitate growth*"SCML is setting up a fully integrated denim garment capacity from spinning,dyeing, weaving to finishing. This complete integration will enable SCML tohave a stronghold and presence across the entire denim value chain. Thus,SCML has progressed from being a pre-dominantly yarn manufacturer to afabric manufacturer.""The company also commissioned trial production of its 10,000 pieces a daygarmenting facility in September'05. However, major revenues from the samewould get reflected in FY2007. Going forward, SCML has plans to increase itspresence in its garments business. Overall, SCML's conscious efforts toprogress up the value chain will positively reflect in its profits goingforward."*Yarn manufacturing expansion*"Post de-merger, SCML's spindleage stood at 16,032 which it proposes toincrease to 48,088 by end of this fiscal. Post this expansion; SCML willhave a yarn manufacturing capacity of 14,000 tpa. This new capacity willhelp SCML meet increasing demand for yarn."*Sources of funding*"SCML's expansion programme will be funded through a 1:3:1 mix of freshissue, TUFS and internal accruals.""Preferential allotment of 1,428,300 shares aggregating 10.68% of theexpanded capital has been done with UTI Investment Advisory Limited at Rs245 per share (21% premium to the current market price). This equityinfusion of Rs 35 crore (Rs 350 million) by UTI signifies its faith andexpectation of future profitability of the company."*Outlook and valuation*"SCML's Rs 200 crore (Rs 2 billion) capex is expected to yield betterreturns and enable SCML to have a complete command over the denim valuechain. SCML's foray into denim garments through subsidiary Surya Kiran willfurther enhance its competitiveness and improve its margins andprofitability. We believe that SCML is on track to meet our profit estimateof Rs 34 crore (Rs 340 million) for FY2006E and Rs 54.5 crore (Rs 545million) for FY2007E.""*At the CMP of Rs 204, the stock trades at 4.7x FY2007E EPS of Rs 42.9 and1.4x FY2007E book value. We maintain our Buy recommendation on the stockwith a target price of Rs 300*
Sunday, March 19, 2006
fridays action....mondays watchout
jj exports was 20% up....traditionally it normally comes bck to 80 levels aft touching 92-95...the current circuit was coz of the merger being passed out by court....so its a bit tricky as to frm here where it can run on....long term target is 150.....one shld keep a track on volumes on monday....if it hit another circuit or ends positively keep holding...any negative fall below 92....i will book 50% there.
amtek india....accumulation is going on for the past 1 week......has run up frm 100 to 130 levels....one shld continue holding.....i might invest more on monday....long term is really bright.
accumulate gupta synth at 130 levels n rts power arnd 80-81 levels
surya pharma has given rise rup frm 130 to 170 levels.....keep holding...add more arnd 135-140 levels incase if it falls
ws ind has given nice rise frm 53 to 67 levels...one can book 75% profit n add more on declines arnd 50-55 levels
granules can be accumulated at current levels....n more arnd 80 levels....good buy for long term
amtek india....accumulation is going on for the past 1 week......has run up frm 100 to 130 levels....one shld continue holding.....i might invest more on monday....long term is really bright.
accumulate gupta synth at 130 levels n rts power arnd 80-81 levels
surya pharma has given rise rup frm 130 to 170 levels.....keep holding...add more arnd 135-140 levels incase if it falls
ws ind has given nice rise frm 53 to 67 levels...one can book 75% profit n add more on declines arnd 50-55 levels
granules can be accumulated at current levels....n more arnd 80 levels....good buy for long term
PARADYNE INFOTECH....more info
Source:Capital market and Moneytimes*Stock Watch Paradyne Infotech Niche IT company *Sustained growth in the BFSIsegment and shifting of focus to high margin software services and managedservices business augur well* *Related Tables* Consolidated Financials<_javascript:arttable('2716')>Paradyne Infotech (Paradyne) caters to the banking, financial services andinsurance (BFSI) segment in the domestic market. Its wholly-owned US-basedsubsidiary, Sundune Corporation, was set up in 2000 to market and supportimplementation of its products in the US market. Paradyne holds 99.70% ofequity of Intercon Management Services, a management consultant forindustrial, commercial and administrative activities. Also in 2000, thecompany set up a development center at the Millennium Business Park, Mahape,Navi Mumbai, India.Paradyne came out with an IPO in October 2005 offering 33,00,000 equityshares of the face value of Rs 10 each at a premium of Rs 32 per shareaggregating Rs 13.86 crore. The issue was subscribed almost 45 times. Thecompany's shares were listed both on BSE and NSE on 10 November 2005. Theclosing price on the day of listing was Rs 76.10.Paradyne's services and solutions for the BSE segment are in the areas ofe-commerce, business intelligence, business process management (BPM) andcustomer relationship management (CRM). These are offered to specificindustries like banking and finance, education and research, e-governance,manufacturing and retail, healthcare and telecom. Paradyne has a resourcebase of technology professionals, with expertise in application development,BPM, CRM, systems software, systems integration, database integration,application integration, server integration, desktop and operating system(OS) integration, network integration, security integration and storageintegration for these industries.Paradyne managed services include facilities management, network management,remote management, disaster recovery management, maintenance services,application management and database management.As all its user industries are increasing their IT investment, the growthprospect of Paradyne are encouraging. Its clients in the banking andfinancial space include JM Morgan Stanley, State Bank of India, IDBI Bank,Corporation Bank, Punjab and Maharashtra Bank.In the telecom and internet service provider (ISPs) space, Paradyne catersto Reliance Infocomm, Idea Cellular, IOL Broadband, MTNL, Hathway Cable &Datacomm, Hughes Telecom, and Broadllyne Infoservices. Clients in theindependent software vendors space include Geometric Software Solutions,KPIT Cummins, MoTech Software, Zycus Infotech, Eftia OSS Solutions, 3D PLMSoftware Solutions, Comsoft Infotech, Cymbal Corporation, California and GCPInc.In e-governance, Paradyne boasts of clients like Indian Navy, Hudco, IRMRA,TIFR, GPO, MTDC, Mahada, Mumbai Police, EPF organization and DirectorateGeneral of Shipping.In the manufacturing and retail space, Reliance Industries, ExideIndustries, Rochem Separations Systems, Globus Stores, Star Value Mart,ONGC, H&R Johnson (India) and IPCL are some of the clients of Paradyne.In FY 2005, System Integration accounted for almost 90% of ParadyneInfotech's total revenue of Rs 68.58 crore. However, this is slated to comedown to 70% in FY 2006 and further down to FY 65% in FY 2007. SystemIntegration is a low profit margin area. Thus, with the increasedcontribution from software services, the profit margin will improve.In the nine months ended December 2005, Paradyne registered sales (Rs63.54crore), which is close to the sales of FY 2005 (Rs68.56 crore). Moreover, the profit after tax of Rs 5.30 crore in the ninemonths is higher than Rs 5.11 crore achieved in full FY 2005.We expect Paradyne to register sales and net profit of Rs 90.77 crore and Rs7.58 crore in FY 2006. On an equity of Rs 10.88 crore and face value of Rs10 per share, EPS works out to 7. The share price trades at Rs 63. P/E worksout to just 9.*Paradyne Infotech (PIL) **(Code No: 532672) (Rs.63)* is recommended fordecent appreciation in the medium-to- long term. The share has come off its52-week high of Rs.84 and can be picked up for sound investment.PIL came out with an IPO of 33 lakh shares at a price of Rs.42 per shareaggregating Rs.14 cr. The issue opened on 30 September 2005 and closed on 7thOctober 2005 and was subscribed 43 times.First generation entrepreneur, Annand Sarnaaik, started the business ofproviding Information Technology Services with an initial capital ofRs.1lakh, promoted PIL. In the initial years, the company providedSystemIntegration and Networking Solutions and developing software solutions inOracle and D2K technologies. Over the years, PIL has transformed and grownto become an ISO 9001:2000 certified end-to-end IT services company withcore competencies in Software Services, Managed Services, System Integrationand BPO Services. It is one of the Level 1 Turnkey Solution Providerempanelled by Government of Maharashtra along with few selected major ITcompanies like IBM, TCS, Wipro, CMC, Tata Infotech, etc.PIL's services and solutions are concentrated in the areas of e-Commerce,Business Intelligence, Business Process Management (BPM) and CustomerRelationship Management (CRM). They are offered to specific industries likeBanking & Finance, Education & Research, e-Governance, Manufacturing &Retail, Healthcare and Telecom. PIL has a resource base of technologyprofessionals, with expertise in Application Development, BPM, CRM, SystemsSoftware, Systems Integration, Database Integration, ApplicationIntegration, Server Integration, Desktop & OS Integration, NetworkIntegration, Security Integration and Storage Integration for theseindustries.PIL has struck alliances with Oracle, Sun Microsystems, Veritas, IBM, Acer,APC and Microsoft, for the enhancement of technology and service offerings.It has an impressive clientele, which include JM Morgan Stanley, IDBI Bank,Corporation Bank, SBI, Indian Navy, HUDCO, MHADA, MTNL, Reliance Infocomm,Idea Cellular, Hughes Telecom, ONGC, IPCL and KPIT Cummins and others.*PIL was declared a winner in the Deloitte Technology Fast 500 Asia Pacific2005 Program, which acknowledges and honours fast-growing technologycompanies across Asia Pacific. The expansion of PIL includes spreading itsoperation to other parts of India from Mumbai, Bangalore, Chennai and Delhi,expanding the software development centre in Mumbai, upgrading the corebanking product FinWorQs and human resource product HrWorQ, setting up adata and support centre, upgrading the R&D lab and quality certification tointernational standards, and investing in its subsidiary, SunduneCorporation in the USA. *During FY05, PIL achieved 34% higher sales of Rs.68.5 cr. Net profit rose by85% to Rs.5 cr. and EPS was Rs.6.6 on its pre-issue equity of Rs.7.6 cr. Itspost-issue EPS works out to Rs.4.6. With reserves of Rs.14.5 cr., the bookvalue of the share works out to Rs.23.3. During Q3FY06, PIL has reported anet profit of Rs.1.9 cr. on sales of Rs.21.6 cr. For the nine months ofFY06, PIL has earned a net profit of Rs.5.3 cr. on sales of Rs.64.5 cr.*Its equity capital is Rs.10.9 cr. The promoters stake after the publicissue is 69.2% and the share of the investing public is 30.8%. *PIL has worked with global businesses escalating towards innovation, betterperformance and rapid deployment in IT services. It's proven delivery modelhelps synchronize seamless and cost-effective solutions with assured qualityand consistency.Today India commands an impressive 44% share of the global IToutsourced market. Technology exports from India rose to $ 17.2billion in FY05, a 34.5% growth over $12.8 billion earned in FY04. Theprojected IT and ITES export growth in FY06 is pegged at $22.5billion, which is a 30-32% increase.PIL currently has a wholly owned subsidiary called Sundune Corporation inUSA, which is expected to look after the implementation and supportfunctions, as well as exclusively market its products in USA. PIL looksforward to enhance its marketing function in US through this subsidiary andthen plans to venture into UK markets.*Based on the current going, EPS of about Rs.7 is projected for FY06. Goingby the prospects, its EPS is expected to go up to Rs.12 in FY07. The sharesof PIL are currently available at Rs.63 discounting its estimated EPS ofRs.12 for FY07 by 5.3 times. The industry average of the industry, in whichPIL operates currently hovers at 24 leaving good scope for the PIL scrip torise handsomely. Applying a reasonable P/E of 10 into its estimated EPS ofRs.12 for FY07, the share price has the potential to touch the Rs.120 mark.The 52-week high and low of the share has been Rs.84/51.
Friday, March 17, 2006
pentium merc
A. Bombay Stock Exchange has accepted PENTIUM as CREDIT WORTHY and rated HIGH as a LISTED STOCK and certifies with promotions as a GENUINE and regular norms keeping COMPANY and PROMOTERS.
1. PENTIUM was lifted from T group to B group with 5% sealing in DECEMBER.
2. PENTIUM was lifted from 5% sealing to 10 % sealing in FEBRUARY.B.
ACCEPTED HIGH class MEDIA recommendations.
1. Capital Market Nov 21- Dec 4, 2005 . page no. 10 .PENTIUM as “BEST and HOT pick”
2. Business Deepika Oct. 11 . Daily Edition.”One should include in his portfolio PENTIUM as a GOOD stock for VERY HIGH CAPITAL APPRECIATIOS “
3. Stockpaisa dot com . “Buy call : Pentium Merc (BSE) - A penny stock which will zoom soon, Buy and hold till next quater result, The Company is doing well.(March 06-2006)”
4. SHAREKHAN has got more than 1.3 % share holding in PENTIUM.
PENTIUM as a COMPANY.
1 Cumulative sales of PENTIUM up to DECEMBER is 522 crores .
2. Net Profit for the Period is 6 crores.
3. Equity is only 10 crores.
4. Company’s clients are Genuine parties like Defence services,State Govt. and Central Govts. And orders are regular for a LONG PERIODS.
5 DIVERSIFICATION to AGRO-FOOD will bring added extra turnover and high profitability in the very near futre.
6. Promoters are INVESTOR friendly with HIGH CALIBRE CREDENTIALS in the industry.
NOTE THIS IS JUSS AN EXTRACT..........THE COMPNY DOESNT HAS MUCH OF BCKGROUND.....I JUSS BOUGHT FEW SHARES AT 100% RISK APPETITE......A VERY HIGH RISK STOCK FOR SURE
1. PENTIUM was lifted from T group to B group with 5% sealing in DECEMBER.
2. PENTIUM was lifted from 5% sealing to 10 % sealing in FEBRUARY.B.
ACCEPTED HIGH class MEDIA recommendations.
1. Capital Market Nov 21- Dec 4, 2005 . page no. 10 .PENTIUM as “BEST and HOT pick”
2. Business Deepika Oct. 11 . Daily Edition.”One should include in his portfolio PENTIUM as a GOOD stock for VERY HIGH CAPITAL APPRECIATIOS “
3. Stockpaisa dot com . “Buy call : Pentium Merc (BSE) - A penny stock which will zoom soon, Buy and hold till next quater result, The Company is doing well.(March 06-2006)”
4. SHAREKHAN has got more than 1.3 % share holding in PENTIUM.
PENTIUM as a COMPANY.
1 Cumulative sales of PENTIUM up to DECEMBER is 522 crores .
2. Net Profit for the Period is 6 crores.
3. Equity is only 10 crores.
4. Company’s clients are Genuine parties like Defence services,State Govt. and Central Govts. And orders are regular for a LONG PERIODS.
5 DIVERSIFICATION to AGRO-FOOD will bring added extra turnover and high profitability in the very near futre.
6. Promoters are INVESTOR friendly with HIGH CALIBRE CREDENTIALS in the industry.
NOTE THIS IS JUSS AN EXTRACT..........THE COMPNY DOESNT HAS MUCH OF BCKGROUND.....I JUSS BOUGHT FEW SHARES AT 100% RISK APPETITE......A VERY HIGH RISK STOCK FOR SURE
Thursday, March 16, 2006
granules---more info
Granules India is a different company in pharma space.Granules is getting ready with timely expansion of its facilities for Pharma formulation intermediaries[PFI],Active pharma ingredients[API], Granulation and Finished dosages.Thus Granules is going to become a 'ONE STOP INTEGRATED' solution provider to major pharma companies who want to outsource some of their processes.The ongoing expansion of API and Finished Dosage facilities at Bonthapally and Gagillapur should result in sharp increase in Granules topline as well as bottomline over next few quarters.Also, the fact that promoters have recently alloted themselves fresh equity @Rs.102/-per share gives comfort about their confidence in company's future.Granules fundamentals are also quite strong.With a bookvalue of Rs.61/-,trailing EPS of Rs.6/-[estimated for 2005-2006 Rs.8/-]and a growth rate of more than 50% Granules is a safe pharma play.
The fibre sheet cement industry is growing at 18-20% per annum on strong demand from industrial capacity expansion and the government’s thrust on rural housing. Taking into consideration the present economic scenario, the fibre cement sheet industry is likely to continue to grow for the next few years at a satisfactory double-digit rate. Against this backdrop, market leader Hyderabad Industries (HIL) continues to offer attractive investment opportunity.HIL operated in two segments: building products and heavy engineering. However, the company sold and transferred its heavy engineering (HE) division to Titagarh Wagons on 8 July 2005, and disposed of fixed assets at a loss of Rs 0.11 crore, which has already been provided. In the half year ended September 2005, net sales increased by 9% to Rs 219.33 crore driven by a 12% increase to Rs 204.18 crore in the revenue of the building products division. The operating profit increased by 80%, while the operating profit margin increased by 790 basis points to 20% on sale of the heavy engineering division. The other income was down 2% to Rs 1.75 crore and interest cost reduced by 61% to Rs 2.19 crore. After providing for depreciation (down 3% to Rs 4.11 crore), the profit before tax (PBT) before extraordinary items (EO) increased by 141% to Rs 39.21 crore. The entire amount on VRS (Rs 2.61 crore) was charged in the first quarter ended June 2005. Even then, PBT after EO was up 125% to Rs 36.60 crore. Total tax grew by a whopping 144% to Rs 15.15 crore. The profit after tax increased by 122% to Rs 22.33 crore.Thus, due to the impressive performance by the building products segment, HIL was able to raise its overall revenue and profit even after selling its heavy engineering division. According to the Union budget 2005-06, the government proposes to build 14,54,428 lakh rural houses in addition to a credit-cum-subsidiary scheme under the Indira Awas Yojana (IAY), for which the allocation has been increased from Rs 2500 crore in FY2005 to Rs 2750 crore in FY2006. This will result in an additional 15 lakh units. In addition to this, the budget also provides for setting up rural building centres and higher equity support to agencies like Hudco to improve the outreach of housing finance in rural areas. Higher spend for rural housing boosts demand for fibre cement products.In the industrial segment (which forms about 30% of the total demand), asbestos sheets are preferred over galvanised steel sheets due to better heat resistance, anti-rust qualities and lower prices. Corrugated roofing sheet are extensively used for roofing of industrial sheds, warehouses, poultry farms, shops. The expansion of industrial capacities and the overall buoyant economic scenario are boosting demand from this segment.HIL is the market leader in the Rs 1400-crore asbestos-based roofing industry, with a market share of 27% and the highest capacity of 4,72,000 tonnes. It has a strong marketing network across the country. Charminar, the company's well-known brand since the past 50 years in the building products market, particularly in fibre cement sheets, has established a credible record. HIL is introducing value- added products under Charminar to leverage the brand value. To be able to participate in the projected market growth and maintain its market share, HIL is now putting up new greenfield capacities. The first phase of this new plant will have a capacity of 1,20,000 tonnes per annum and will be operational in January 2006. Thus, the fourth quarter of the current year and the whole of FY 2007 will see the benefit from this capacity expansion. Moreover, as part of the inorganic growth, it recently acquired Malabar Building Products, which will be merged with the company.The benefits of the expanded capacities and acquisition of MBPL in a positive industry scenario augur well for future growth. The company’s book value will cross Rs 160 by end of FY2006, making it ripe for a bonus
Tuesday, March 14, 2006
kopran
kopran is expected to turn arnd frm this quarter...hitting a year low of 45....the stock is in circuit...one can take small position in it.....will breakeven this yr n frm next qtr might start posting profit.....good times ahead frm wht i can understand....definately not for weak hearts....though very less possibility of getting the share...been on circuit since yest n will conitnue to be for few days as to wht i can understand
Monday, March 13, 2006
sanjivani parental...update2
lots of retail investors sold in panic, when the share price crashed. but long term investors need not worry with this short term price fluctuation n huge volatility. the company is faring satisfactory as per industry standards n has reported healthy topline of 12 crs for dec qtr 05..it has even raised capital by making pref allotlemt @60 to outsiders. recently, the company announced that it is going to launch anti-cancer products which has a market size of 500 crs. for 06 n 07 eps will be 10 n 12 respectively.
PARADYNE INFOTECH....PIL...532672
PIL came with an IPO of 33 lakh shares at a price of 42 aggregating to 14 crs.the issue closed on 7th oct n was subscribed 43 times.
annand sarnaaaik started the business of providing information technology serveices with an initial capital of 1 lakh. In the initial yrs, the company provided system integration n networking solutions n developing software solutions in oracle n D2K tech. over the yrs, pil has transformed n grown to become an ISO 9001:2000 certified end-to-end IT services.
PIl has struck allianz with oracle,microsoft,IBM,acer,APC,sun microsystem, for the enhancement of technolofy and service offerings. it has an impressive clientele, which includes JM MORGAN STANLEY,IDBI BANK,SBI, INDIAN NAVY,CORPORATION BANK,MHADA,MTNL,IDEA CELLULAR,ONGC,IPCL,KPIT CUMMINS,RELIANCE INFOCOMM N OTHERS.
PIL was decleared a winner of the deloitte tech fast 500 asia pacific 2005 program, which acknowledges n honours fast growing tech companies across asia.
based on the current going EPS of 7 is projected for FY06.going by the prospectus, its eps is expected to go to 12 in FY07.the shares r trading at 63 discounting it 07 eps by 5.3 times against the industry level of 24 leaving ample scope for appreciation.the share has the potential to touch 120.
promoters holding arnd 63%......public holding arnd 18%
annand sarnaaaik started the business of providing information technology serveices with an initial capital of 1 lakh. In the initial yrs, the company provided system integration n networking solutions n developing software solutions in oracle n D2K tech. over the yrs, pil has transformed n grown to become an ISO 9001:2000 certified end-to-end IT services.
PIl has struck allianz with oracle,microsoft,IBM,acer,APC,sun microsystem, for the enhancement of technolofy and service offerings. it has an impressive clientele, which includes JM MORGAN STANLEY,IDBI BANK,SBI, INDIAN NAVY,CORPORATION BANK,MHADA,MTNL,IDEA CELLULAR,ONGC,IPCL,KPIT CUMMINS,RELIANCE INFOCOMM N OTHERS.
PIL was decleared a winner of the deloitte tech fast 500 asia pacific 2005 program, which acknowledges n honours fast growing tech companies across asia.
based on the current going EPS of 7 is projected for FY06.going by the prospectus, its eps is expected to go to 12 in FY07.the shares r trading at 63 discounting it 07 eps by 5.3 times against the industry level of 24 leaving ample scope for appreciation.the share has the potential to touch 120.
promoters holding arnd 63%......public holding arnd 18%
DIC INDIA
incorporated as coates of india in april47, dic was promoted by coates brothers & company as a wholly owned subsidiary to manufacture n market priniting inks n allied products.it went public in 1962.DIC long with its subsidiary are the world leaders in printing inks with a global market share of nearly 40%.
during CY05, dic posted 35% higher net profit of arnd 10 cr on sales of 279 crs...yeilding an eps of 14.5.during Q4 FY05, dic registered 58% higher net profit of 3 cr on 19% higher sales of 77cr. its equity capital of arnd 6.9 cr n reserves of 97 crs....book value wrks out to be 150.
promoters holding 66%....domestic institutions hold 5.3% n another 3.9 is held by non-promoters corporates.
the fortune of the printing industry is related to the growth in economy in general n the publishing n packaging sectors in particular.though the GDP growth was high, the growth of the packaging was impacted by the slow growth of the FMCG sector, which in turn restricted the topline growth of the industry.however, there was positive growth in the publishing neutralizing the negative impact of the packaging sector.further, the increasing urbanization n literacy levels r likely to result in comfortable growth rates for the industry.
DIC will focis on improving the operating margins through better productivity n greater focus on logistics,developing competence against international players on the strength of the technology provided by its parent company n effective wrking capital.
the sahres r currently traded at 257 levels discounting its eps of 14.5 by 17 timesn projected eps of 20 for fy06 by 12 times.
applying the industry PE average of 17....the share can easily touch 350.....shld be bought 25% right now n rest on every 10-15% declines....215 works out to be a support levels aft which the next supports is arnd 190 levels
during CY05, dic posted 35% higher net profit of arnd 10 cr on sales of 279 crs...yeilding an eps of 14.5.during Q4 FY05, dic registered 58% higher net profit of 3 cr on 19% higher sales of 77cr. its equity capital of arnd 6.9 cr n reserves of 97 crs....book value wrks out to be 150.
promoters holding 66%....domestic institutions hold 5.3% n another 3.9 is held by non-promoters corporates.
the fortune of the printing industry is related to the growth in economy in general n the publishing n packaging sectors in particular.though the GDP growth was high, the growth of the packaging was impacted by the slow growth of the FMCG sector, which in turn restricted the topline growth of the industry.however, there was positive growth in the publishing neutralizing the negative impact of the packaging sector.further, the increasing urbanization n literacy levels r likely to result in comfortable growth rates for the industry.
DIC will focis on improving the operating margins through better productivity n greater focus on logistics,developing competence against international players on the strength of the technology provided by its parent company n effective wrking capital.
the sahres r currently traded at 257 levels discounting its eps of 14.5 by 17 timesn projected eps of 20 for fy06 by 12 times.
applying the industry PE average of 17....the share can easily touch 350.....shld be bought 25% right now n rest on every 10-15% declines....215 works out to be a support levels aft which the next supports is arnd 190 levels
Wednesday, March 08, 2006
market movement.....correction on the way
market seems to be correcting....huge fiis selling in F n O indicates the same.....hope everyone is booking profit at regular interval n not getting greedy....more correction can be seen going forward for the next 10-15 days
Monday, March 06, 2006
short term calls ofr investment n trading
hello everyone
one shld not juss buy shares coz someone has suggested u to buy.....one shld do his own research regarding the financial structure of the company....the promoters behind it...the price movement it had in the past 2 yrs.....n dont get carried away by juss momemtum.....coz during such bull trend when the correction comes trust me it really blows the person on the wrong foot
everyone here is juss giving their views....whethe it makes sense or no is upto us....so one shld not blame someone else juss coz u bought it on their reco.......please study well b4 investing
anyways markets again looked rck solid today.....the much needed correction seems to be one guess now...anyways looking at the market stats...looks like it will hit 11000 b4 correction sets in...still again its my guess maybe correction wont come n it will rally further or maybe another 100 points ups n then 700 points correction.....lets juss play safe n dont get greedy
the stocks mentioned a week bck
raipur alloys arnd 60 is quoting arnd 75 now...one shld boook profit arnd 80-83
paras petro 10% up...penny stock
syncom formulation 7% up.....recovery seems to be going for this one....those holding can continue holding.....avoid fresh investment till march results
madhav......eastern silk....3% up...keeep holding....one can invest 25% right now n later on dips
national steel up 6%....23.4 now......long term can stay invested n keep a watch on march results...shld be good as expansion fruits might kick in....my fingers r cross...can cross 28-29 if march results kicks well
century enka....170 appears to be a good support for this one......one shld avoid fresh investment until march results......the buybck at 125 doesnt give a good feeling to me
hyderabad ind....one can invest 25% at current price
amtek india...looking rck solid....might flare once consolidation under 1 group kicks in.....50% can be invested
alps industries up 9%.....those holding can continue holding...book 50% profit arnd 190
rts power....was up 10%...advised arnd 55 2 months bck......i booked profit at these levels.....will be buying again at 80 levels as suggested by some sources...medium term target is 125
keep a watch on sanjivani parental.....one can invest 50% at 40 n another 50% at 35....can give nice 30-40% in 2 months if holded with patience
all these r my views
one can take their own call
ashutosh bhutra
one shld not juss buy shares coz someone has suggested u to buy.....one shld do his own research regarding the financial structure of the company....the promoters behind it...the price movement it had in the past 2 yrs.....n dont get carried away by juss momemtum.....coz during such bull trend when the correction comes trust me it really blows the person on the wrong foot
everyone here is juss giving their views....whethe it makes sense or no is upto us....so one shld not blame someone else juss coz u bought it on their reco.......please study well b4 investing
anyways markets again looked rck solid today.....the much needed correction seems to be one guess now...anyways looking at the market stats...looks like it will hit 11000 b4 correction sets in...still again its my guess maybe correction wont come n it will rally further or maybe another 100 points ups n then 700 points correction.....lets juss play safe n dont get greedy
the stocks mentioned a week bck
raipur alloys arnd 60 is quoting arnd 75 now...one shld boook profit arnd 80-83
paras petro 10% up...penny stock
syncom formulation 7% up.....recovery seems to be going for this one....those holding can continue holding.....avoid fresh investment till march results
madhav......eastern silk....3% up...keeep holding....one can invest 25% right now n later on dips
national steel up 6%....23.4 now......long term can stay invested n keep a watch on march results...shld be good as expansion fruits might kick in....my fingers r cross...can cross 28-29 if march results kicks well
century enka....170 appears to be a good support for this one......one shld avoid fresh investment until march results......the buybck at 125 doesnt give a good feeling to me
hyderabad ind....one can invest 25% at current price
amtek india...looking rck solid....might flare once consolidation under 1 group kicks in.....50% can be invested
alps industries up 9%.....those holding can continue holding...book 50% profit arnd 190
rts power....was up 10%...advised arnd 55 2 months bck......i booked profit at these levels.....will be buying again at 80 levels as suggested by some sources...medium term target is 125
keep a watch on sanjivani parental.....one can invest 50% at 40 n another 50% at 35....can give nice 30-40% in 2 months if holded with patience
all these r my views
one can take their own call
ashutosh bhutra
Wednesday, March 01, 2006
ASHIANA HOUSING
an extract frm a site
Ashiana has been in the housing development sector for the last two decades and has established it's reputation as a real estate developer that provides quality of construction, safety of investment and integrity of commitment.Ashiana Housing commenced operations in 1979, at Patna and since then has extended its activities to Jamshedpur, Bhiwadi, Ghaziabad, Gurgaon and Greater Noida. With over 40 lacs sq.ft of construction, in both, the residential and commercial sectors, Ashiana has sustained it's claim of providing quality housing at affordable rates. Ashiana's team of highly qualified and experienced professionals, award-winning architects, and well-trained staff are equally committed to the company's objectives and follow the mantra of 'professionalism with a personal touch'. At the heart of Ashiana lie, not statistics, figures or numbers, nor stone, brick or concrete, but its people. On-going projects-are being put up in industrial towns of Bhiwadi, Neemrana in Rajasthan, Jamshedpur in Jharkhand and Ghaziabad and Greater Noida of UP. The corporate has concenterated on a niche, high demand consistent growth area of sub-urban India. To that extent this is a de-risked business venture, and one that offers phenomenal appreciation in land value over the coming years.At present the following projects are under implementation...-Ashiana Woodlands, Pardih, Jamshedpur which offers Villas, Exceutive Floors, Luxury Apartments with 3 Bedrooms; the bookings have opened. While Ashiana Residency Greens have been sold out. -Ashiana Residency and Ashiana Greens at Greater Noida, while Ashiana Orchards have been sold out.-Ashiana GreenHill, Neemrana which offers Apartments looking up at the Neemrana Fort, the Bookings have opened. -Ashiana Utsav, Bhiwadi; While Ashiana Utsav Retirement Resort Phase III has opened for Bookings while Ashiana Rangoli and Ashiana Club House have been sold out. -Ashiana Indirapuram-plots, villas and apartments. Of these the Ashiana Upvan and Greens being built on 7 Acres of Land have been Sold Out. Projects Completed:Ashiana Villas set in 5 Acres of land, comprising 106,520 square feet and 49 dwelling units was completed in 2004, as were Ashiana Gardens in Bhiwadi that comprised 11 Acres of land, 374850 square feet of built up area and 316 units in all. Between 1998 and 2003, Ashiana Gulmohar Park in 6.96 acres, Bageecha in 5.69 Acres and Ashiana Greens in 2.75 Acres have been completed and delivered to Retail customers.FootnoteShould the on-going projects complete on schedule, the total structure, size and scale of Ashiana Housing will change over the next 2 years
long term story.....not for short term according to me.
Ashiana has been in the housing development sector for the last two decades and has established it's reputation as a real estate developer that provides quality of construction, safety of investment and integrity of commitment.Ashiana Housing commenced operations in 1979, at Patna and since then has extended its activities to Jamshedpur, Bhiwadi, Ghaziabad, Gurgaon and Greater Noida. With over 40 lacs sq.ft of construction, in both, the residential and commercial sectors, Ashiana has sustained it's claim of providing quality housing at affordable rates. Ashiana's team of highly qualified and experienced professionals, award-winning architects, and well-trained staff are equally committed to the company's objectives and follow the mantra of 'professionalism with a personal touch'. At the heart of Ashiana lie, not statistics, figures or numbers, nor stone, brick or concrete, but its people. On-going projects-are being put up in industrial towns of Bhiwadi, Neemrana in Rajasthan, Jamshedpur in Jharkhand and Ghaziabad and Greater Noida of UP. The corporate has concenterated on a niche, high demand consistent growth area of sub-urban India. To that extent this is a de-risked business venture, and one that offers phenomenal appreciation in land value over the coming years.At present the following projects are under implementation...-Ashiana Woodlands, Pardih, Jamshedpur which offers Villas, Exceutive Floors, Luxury Apartments with 3 Bedrooms; the bookings have opened. While Ashiana Residency Greens have been sold out. -Ashiana Residency and Ashiana Greens at Greater Noida, while Ashiana Orchards have been sold out.-Ashiana GreenHill, Neemrana which offers Apartments looking up at the Neemrana Fort, the Bookings have opened. -Ashiana Utsav, Bhiwadi; While Ashiana Utsav Retirement Resort Phase III has opened for Bookings while Ashiana Rangoli and Ashiana Club House have been sold out. -Ashiana Indirapuram-plots, villas and apartments. Of these the Ashiana Upvan and Greens being built on 7 Acres of Land have been Sold Out. Projects Completed:Ashiana Villas set in 5 Acres of land, comprising 106,520 square feet and 49 dwelling units was completed in 2004, as were Ashiana Gardens in Bhiwadi that comprised 11 Acres of land, 374850 square feet of built up area and 316 units in all. Between 1998 and 2003, Ashiana Gulmohar Park in 6.96 acres, Bageecha in 5.69 Acres and Ashiana Greens in 2.75 Acres have been completed and delivered to Retail customers.FootnoteShould the on-going projects complete on schedule, the total structure, size and scale of Ashiana Housing will change over the next 2 years
long term story.....not for short term according to me.
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