Close Tracks

one shld keep a eye on

HIRAN ORGOCHEM....currently arnd 100....private placement n pref allotment arnd 140.....news of right issue in the offering....100 acres of loand being developed at coimbatore....can fire in the near future...worth an investment

HYDERABAD INDUSTRIES....272....shld shld buy at dips arnd 250-260.....long term is good....target by sharekhan arnd 750...bonus candidate too

KEI INDUSTRIES....nice recovery seen frm 200 during correction to 430.....might touch it new highs if market r positive.....one shld boook some profit arnd 450-475-500 levels

MARKSAN PHARMA......one shld keepan eye on this counter.....worth picking up arnd 100-105 levels....right now 120...high of 302....stock might give superlative returns if holded with patience

ORCHID CHEMICALS....right now 208.....190 shld be kept as a stoploss....high of 400.....worth a chance for long term holders...quality play in pharma

Granules

“Granules India is gearing up to become a fully integrated pharmaceutical outsourcing manufacturer once its tableting facility becomes operational by the end of March 2007. Granules India operates on a strong and sustainable business model with the unique concept of manufacturing single and combinational pharmaceutical formulation ingredients, PFIs, the directly compressible granules for use in generic drugs which provides cost advantage to outsourcing players with reduced regulatory hassles.”

“The company is set to enhance margins by focusing on value added product mix by emphasizing more on high margin and high volume products. The firm is forward integrating into finished dosages and dossier fillings and it is backward integrating by creating additional capacities for some strategic active pharmaceutical ingredients, APIs like Naproxen and Aspirin.”

High margin PFIs- the key growth driver

“The United States Food and Drug Administration, USFDA approval for Metformin PFI, Pa
racetamol plant expansion and increased focus on regulated markets are the key growth drivers. Along with a US-based Amneal Pharmaceuticals LLC, it has received an approval for Metformin Hydrochloride tablets. This is the first time that the USFDA has approved an Abbreviated New Drug Application, ANDA with a PFI as the raw material.”

“The new paracetamol plant is getting fully operational by January 2007 which would contribute higher revenues for Q3&Q4 of FY2007. It is increasing its focus in regulated markets like US and Europe in PFIs segment by simultaneously harnessing marketing force in key markets like North America, Latin America, Brazil, Canada and UK.”

Backward and forward Integration - set to become fully integrated outsourcing player
“Granules India is further harness API business through recent acquisition with China-based Hubei Biocause Heilen Pharmaceutical Company (Biocause), the largest manufacturer and exporter of bulk Ibuprofen powder and tablets in China with a capacity to produce 3800 MT and 4 billion tablets per annum. It expects to derive revenues worth Rs 170 million and Rs 352 million in FY2007 & FY2008 respectively from this acquisition.”

“Commencement of 6 billion tableting facility in March 2007 should enable the company to capture the entire value chain and clock higher margins going forward.”
Transition from over-the-counter (OTC) ANDA to prescription generics segment- shifting towards high margin products

“It is in the process of increasing its presence in combination OTC segment and shifting towards combination prescription products in regulated markets. The company's margins are expected to expand on the back of higher realizations in combination products and prescriptions business and lower raw materials cost and savings in expenditure. The company is currently marketing Paracetamol PFI in the OTC space and is selling Ibuprofen, Metformin and Guaifensin in Latin American countries.”

Valuation

“As the company moves into higher value added prescription PFI and tableting revenues, we believe the company would get re-rated. Higher CAGR revenue growth of 48% for the next two years and CAGR profit growth of 67% for the next two years would re-rate the company. We however believe the company would have a higher critical size and access to direct marketers with a stronger product basket by FY 2008E. We, hence rate the stock as a Buy with a price target of Rs 150 based on 8x FY 2008E and a P/S of 0.53x.”

DCW UPDATES

DCW is currently trading at 11....10 culd be taken as a bottom according to me......risk level quiet low

The company is planning a capital expenditure plan of Rs 525 crore, aimed at expanding its capacities and using the by-products to augment its bottomline. These are expected to be implemented by March 2008 in stages beginning from September 2007.

Dr. S C Jain - Chairman and Managing Director said that the Company plans to change its Mercury Cells into Membrane Cells which will increase the production from 60,000 to 1,00,000 of Caustic Soda per annum. This will also reduce the consumption of electricity by over 30%, thus increasing the profitability substantially.

The Company also plans to increase its Synthetic Rutile production from 30,000 tons to 60,000 tons. To reduce the cost of power and steam, a new Captive Thermal Plant of 50MW capacity and 70 tons of extra steam is under erection.With the completion of the above, the profitability of the Company will go to up substantially from the present level of Rs 50 crores.

To gainfully utilize its effluent, a new Iron Oxide Plant to produce Yellow, Red and Black grades is being put up. This will be done either in-house or with JV with a foreign Company of repute in this field. The capex for this project is estimated at Rs 125 crores. Profitability is estimated at Rs 30 crores per annum and may go on stream by November- December 2007.

He also said that the Company's capital expenditure plan includes a Rs 150 crores FCCB offering over the next 18 months through very wellknown overseas merchant banker and long term loan from consortium of banks led by SBI.

The Rs 700 crores, Company has also decided to double its Soda Ash capacity from 1,00,000 to 2,00,000 tonnes with an investment of Rs 200 crores and a technical feasibility study has been conducted by the Dutch company Akzo and Humphrey and Glasgow will do the detailed engineering.
This Plant should be operational by end 2008. This project will increase the profit by Rs 40-45 crores per annum.With regard to companies PVC manufacturing activity it may look at options to enhance shareholders value

seems like multibagger to me for long term holders

Revathi Equipments

Revathi Equipments Ltd. (REL) was established in 1977 and promoted by Drill Pvt. Ltd. in collaboration with Chicago Pneumatic Tool Company of USA (CP Tools) for the manufacture of water well rigs, blast hole rigs, drilling accessories and allied products. In 1987, CP Tools was taken over by Atlas Copco worldwide on account of which the REL became a part of Atlas Copco. In 2002, Utkal Investments led by Mr. Abhishek Dalmia bought out Atlas Copco's stake (40%) and gained full management control over REL with a 60% holding in the company as on date. This Renaissance group company has three business segments viz. construction & mining equipments, power generation and treasury. It's an ISO 9001:2000 certified company and its products are exported to USA, Jordan, Tunisia, Nigeria, South Africa, Australia etc.

Presently, REL holds about 45% market share in the domestic mining equipment market with the likes of Tata Steel, Coal India, Nalco, Hindalco and Gujarat Ambuja as its clients. It produces drills ranging from 4" to 12 ¼" which more or less covers the entire gamut of mined ores including coal, lignite, iron ore, bauxite, limestone, zinc, etc. But REL's main growth driver in future will be its construction equipment division which comprises batching plants, transit mixers and concrete pumps.

In combination, they mix various aggregates with cement to produce concrete, transport such ready-mix concrete (RMC) from a central batching location to the construction site and pump the RMC to the exact location where it is to be poured. For the power generation equipment, it has made a huge investment of around Rs.52 cr. in wind energy and has installed wind turbines having capacity of 2.4 MW in Rajasthan and 8.75 MW in Tamil Nadu. It has also invested around Rs.5 cr. in a 25 MW gas-based power project in Tamil Nadu. Given the managements background of being large equity investors over many years, REL also has a treasury division that invests surplus funds into the secondary market to generate better returns. Over a period of time, it's possible that promoters may convert REL into a holding company and route strategic and non-strategic investments through it.

Financially as well as fundamentally, REL is quite strong with Sales of Rs.91 cr. and net profit of \nRs.16.75 cr. posting an EPS of Rs.52 on its very tiny equity of Rs.3.21 cr. for FY06. Recently, after hitting a high of Rs.1214, its share price crashed below Rs.600, which prompted the management to announce a buy-back at \nRs.700 from the open market and it created a corpus of Rs.10 cr. for the same. For FY07, it may clock a turnover of little more than Rs.100 cr. with net profit of around Rs.18 cr. leading to an EPS of Rs.56. For FY08, it has the potential to report EPS of more than \nRs.70. Investors are, therefore strongly recommended to buy it at current levels with a price target of Rs.800 (30% appreciation) in 9-12 months. In the long-term of 24-36 months, it can break its earlier high of Rs.1200, which would mean 100% return from the current level.

SE Asiamarine n ABC bearing

The South East Asia Marine Engineering & Construction Company is a multinational company. It is an arm of TECHNIP of France, which is into engineering and construction for under water projects. It is one of the leading companies in the world. South East Asia Marine is a 78% subsidiary here in India. The company owns four multi support vessels, which are used in these kinds of activities.

Right now South East Asia Marine is not undertaking these kind of projects, but it is charter hiring these multi support vessels to other companies. With charter rates being very strong, the performance of the company in the current year is quite strong.

The operating margins of the company in the current year are already up and they are close to 60%, whereas the net profit margins are close to 50%. Its year-end is December and for the half-year the company's profits are around Rs 32 crore on equity of Rs 33 crore.

The second half should be equally good and therefore the EPS for the year-end December 2006 is likely to be close to around Rs 18-Rs 20.

The company has acquired one more vessel in the current year in June, which is yet to be deployed. It could be deployed in the fourth quarter. So in the fourth quarter the earnings or the profits could also increase.

Plus for the next year the revenue and profits will be much better compared to this year due to the rising charter higher prices as well as addition of one ship to its portfolio. The company is a zero debt company, so it is available at a very reasonable valuation.

Q: On Rs 20 EPS would you give it about 8.5 times PE one year forward? How would that stalk up with the other players in the sector and what sort of a price target are you watching out for this one?

A: The company should have at least a PE of 15 if not more. Going by that and going by the fact that for December '06 its earnings should be close to Rs 18. After one year in December '07 the earnings should be close to Rs 22-Rs 24. So in that case the prices should be close to Rs 300 or more than that.

Q: ABC Bearings is another counter that you like. Apparently you are looking at their second half earnings for '07 to be very strong. What are the drivers essentially that you would be watching out for this one and a target price?

A: ABC Bearings is actually making the taper rollers and cylindrical bearings for commercial vehicles, heavy commercial vehicles and the tractor industry. Of late, the demand in this segment is improving significantly.

The company is doing very well. Even last year the company did very well. Its EPS was around Rs 13. In the current year, in the first quarter the company's performance was significantly better.

For the full year, we expect the net profit to be close to Rs 22-Rs24 crore given the earnings of around Rs 20-Rs 22. So at the current price of Rs 150 it is still available close to 7-8 P/E. Going by the outlook for the auto industry and engineering industry the outlook and the potential for the bearing industry is very good and therefore this stock, which is available at 7-8 P/E is very attractive

Ansal Housing-Emerging Township Developer

Ansal Housing is focused on township development in Tier-II and III cities. Having a strong reputation in North India, they want to capitalise on it by building premier townships offering good infrastructure and amenities on the outskirts of congested Tier II and III towns.

Ansal Housing trades at a discount to the value of its land bank. Investors need to note that while valuing Ansal Housing we have considered only the current realizable value of land not the project cash flows as part of the same. This will likely provide upside risk to land bank values.

Growth Plans

Ansal Housing plans to start building townships initially in Agra, Indore, Jammu, Rewari, Karnal, Meerut and Ghaziabad. Expenditure of more than INR 1 bn is expected to execute the current projects. This will be funded from equity issuance and the raising debt.

Ansal Housing is a North India based real estate developer. It holds 1,400 acres of land across various tier II cities in North India, currently valued at more than INR 7 bn. Ansal Housing is targeting township development in the cities of UP, Haryana, and Punjab, where it has acquired cheap land at historical costs.

At the CMP of INR 202, the company has a market cap of INR 3.4 bn on fully diluted 16.8 mn shares. The company currently trades at 64% (EV) to land bank. There seem to be substantially large potential upsides to the NAV.

Background

Ansal Housing is amongst the few real estate developers with a pan-India foothold, being present in North, South, and West India. It has projects under development\n in Mumbai, Bangalore, and the National Capital Region (NCR) and has plans for expanding its presence in tier II cities. The company has a strong brand name in North India, it’s major developments include townships like Aashiana in Lucknow, Golf Links -I & II in Greater Noida, and Chiranjiv Vihar and Avantika in Ghaziabad.

Business strategy

The company follows the township development model in tier II cities. It acquires land at low cost on the outskirts of a city and converts it into a residential township over a three-four year period. In a township, roughly 45-46% of the land is lost in plotting (to develop basic infrastructure), of the remaining land, 70% is sold as plots and the remaining as houses or commercial properties depending on the demand and stage of development of the township.

Usually Ansal Housing is amongst the first movers into a city and hence, it is able to capture the pent-up demand of people looking to move from congested localities within the city to the outskirts, into premium houses providing the basic\n infrastructure and amenities.

Land bank

Ansal Housing has a land bank of 1,400 acres at a market value of more than INR 7 bn. The company currently has many upcoming projects in three states of Rajasthan, Haryana, and Uttar Pradesh. It is planning townships initially in Agra, Indore, Jammu, Rewari, Karnal,Meerut, and Ghaziabad.

The company also has a Honda car showroom spread over 80,000 sq ft in Ghaziabad, and ongoing construction of another 2 mn sq ft. It also has a small hospitality business which includes clubs, banquet facilities and restaurants.

Financials and valuations

In FY06, Ansal Housing reported sales of INR 1.3 bn, up 37% compared to INR 0.9 bn in FY05. EBITDA margins improved from 20% in FY05 to 27% in FY06. The company reported FY06 EBITDA of INR 341 mn, up 85%, and FY06 PAT at INR 206 mn was up

Funding

Promoters currently hold 45% of the equity and another 10-12% is held by mutual funds and FIIs, and the remaining is with the public. Given the expenditure of more than INR 1 bn lined up to execute current projects, the company is likely to raise around 70% of the requirement from equity issuance and the remaining from debt.

Outlook

A positive bias becomes essential, given the discount to the asset value of the company. The current value of assets is ~ INR 7 bn and at the CMP of INR 202, the company has a market cap of INR 3.4 bn on fully diluted 16.8 mn number of shares. The company currently trades at 64 per cent EV to land bank, there lies substantial potential upsides to the NAV.

Manugraph India

Manugraph India Limited (MIL) is a strong growth and value play and has created a strong focused niche in the Offset Web Printing Machinery Equipment space finding applications mainly in newspaper printing segment. MIL's major competitive advantage is its excellent product line up and customized solutions approach, long standing relationships with large customers, excellent quality and technical credentials and adequate management bandwidth. With an expected CAGR of 23% in net profits over FY06-FY08E, we expect ROCE and ROE levels to remain healthy at 67% and 49% respectively as on FY07E.

Investment Rationale

Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.

Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.

Market Leader providing complete printing solutions – MIL is the domestic market leader in the web offset presses segment and is an established Tier 1 supplier to large publishing houses like the Times of India Group, Indian Express Group, Dainik Jagran Prakashan Group, Hindustan Times, Anand Bazar Patrika and other regional newspapers and publications like Gujarat Samachar, Malayala Manorama, Hindu, Sandesh , Deccan Chronicle etc. Over the years, Manugraph has emerged as a thriving, nimble, printing machinery enterprise, due to its ability to transform itself rapidly in a highly competitive market and its commitment to become a supplier of choice by delighting customers with superior services and products at competitive prices. Constant modernisation and introduction of state-of-the-art technology at Manugraph has enabled it to stay ahead in the industry.

Exports offer MIL a strong outsourcing opportunity in future – In the Export arena, Manugraph has been exporting to customers in markets like Italy, Germany France, Sweden, UK, Russia, China, South Korea, Thailand, North America, Kenya, Nigeria, Brazil and Middle East.

Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date. What is more noteworthy to know is that having developed strong technical skill sets in its product domain, the price differential enjoyed by Manugraph is significantly high as compared to other global players like Heidelberg and Man-Roland, which have large business presence across the European and USA markets. Hence going ahead outsourcing opportunities can throw open a large business opportunity for Manugraph.

Large free cash generation ahead –Manugraph has moderate capex lined up over the next two years. Barring further reduction in residual debt in FY07E and further gains from tight working capital management, we expect it to generate free cash flow of Rs724.3mn over next two years. The build of cash in the balance sheet by Mar08 would result in a cash Investments balance of Rs820.3mn,equal to (Rs.27per share - FV: Rs.2).

Manugraph has earned a healthy 79% ROCE and 61% ROE in FY06A largely due to a healthy volume growth, significant improvement in ATO levels and reducing the working capital cycle. This is amply reflected from the fact that Manugraph has expanded its EBIDTA margins from
Exports during FY06A totaled Rs1034.7mn accounting for 32% of total revenues. Exports in the last 3 years have grown at a CAGR of 35% from Rs 592mn in FY04A to Rs1034.7mn till date.

During Q1FY07A Manugraph has reported a 19% increase in revenues totaling Rs1.03bn with EBIDTA growth being 12% YoY totaling Rs247.6mn with EBIDTA margins of 24% followed by a 15% rise in the net profit at Rs 172.9mn.

Risks & Concerns –
Any significant downturn in Manugraph's customers namely the domestic Newspaper segment could impact MIL's earnings negatively.

Valuation –

With an EPS CAGR growth of 23% estimated over FY06-08E, coming on the back of a 21% CAGR in the topline, and attractive ROE and ROCE levels of 67% & 49% on FY07E, and a EV/EBIDTA of 7x FY07E and 5x FY08E makes me believe that the present valuations of 10x FY07E and 8x FY08E look extremely attractive

ABC Bearings-Smooth Tapered Bearings

ABC Bearings-Smooth Rolling
BSE 505665, CMP Rs 165

Shares o/s: 11.5 mn
EPS FY06: Rs 13.6
EPS FY07 e: Rs 18
PE on FY06 : 12.5
PE on FY07 e earnings: 9

ABC bearing’s 1QFY07 net sales grew by 31% YoY to Rs 56 crore. Ramp up in sales was mainly due to strong growth in all the serviced segments viz cars (including a resurgence in supplies for the Toyota models like Innova), commercial vehicles and the tractors segment. Higher volume growth also became possible as additional capacities created in Q4 FY06 at Bharuch began to contribute to the top and bottomline.

During the first quarter of FY07 ABC has grown to become the Number 1 in India for Automotive Tapered Roller Bearings.

With capacity expansions in place, ABC is likely to consolidate its position by showing much higher growth than the industry growth in the current financial.

ABC continues to focus on achieving the growth in profitability through continuous cost reduction measures, Kaizen, OEE improvement and optimum utilisation of resources.

While ABC continues to remain strong in the OE business, the after market segment has shown substantial growth as a result of increased dealer network and improved services. The proof lies in the numbers Q1 Revenues were placed at Rs 56 crore (Rs 42 crore), with after tax profits at Rs 5.3 crore (Rs 3.5 crore). Q1 EPS rose to Rs 4.7 (Rs 3). These numbers compare favourably with FY 06 Revenues of Rs 176 crore (Rs 149 crore), PAT of Rs 15.7 crore (Rs 11.5 crore) and EPS of Rs 13.6 (Rs 9.98).

Outlook and valuations

The outlook for the auto ancillary sector remains buoyant. ABC Bearings with its strong technical collaboration with NSK Japan is well positioned to leverage global opportunities and improve its competitiveness in the domestic automobile market. With robust performance from the company and better outlook going forward Revenues are expected to cross the Rs 210 crore mark in FY07, with after tax profits closer to the Rs 21 crore mark.

At the current market price of Rs170, the stock trades at 12.5x and 9.0x earnings FY06A and FY07E respectively.

The stock could attain a price target of Rs 225 in a year.

Aarvee Denim - Redifine Business Strategy

Aarvee Denims and Exports Ltd, India's second largest manufacturer of denim fabric is on a drive to re-define its business strategy by focusing on non-denims and garments, reducing its dependency on denims in the process.

The company is also in talks with international retail majors like JC Penney and Wal-Mart for exporting garments.

The denim market has been sluggish due excess supply and falling demand for exports this year. In a bid to focus on newer segments, the company has planned a 25,000 per day manufacturing facility at an investment of Rs 100 crore to be operational by March 2007.

At present, 75 per cent of the company's revenues are from denims while the rest comes from non-denims and garments. With the focus shifting firmly to the later, post expansion, the company expects revenues from denims to fall to 40 per cent, while that from non-denims and garments are expected to rise to around 40 per cent and 20 per cent respectively.

The change in strategy has come about due to the stagnant denim market as well as the rising demand for non-denims and garments in the export markets,said Vinod Arora, CMD, Aarvee Denims and Exports Ltd.

Of its total monthly production of 75,000 garments, the company supplies 50 per cent to Pantaloons and the rest is used for Aden, its garment brand which has been available in Gujarat and north India.

In a phased expansion plan, the company is set to ramp up its production facility to cater to retail chains that have made orders of 50,000 garments per day.

At present, we are catering only to Pantaloons B.A.R.E brand but if we can increase our production we might even start supplying to the other five-six brands that Pantaloon owns as well as other retail chains, said Ashish Shah, MD, Aarvee denims and exports.

JP Associates

Ketan Karani of Kotak Securities feels that Jaiprakash Associates, innext one and a half years, could be a multi-bagger story. It has atarget of Rs 750.Karani told CNBC-TV18, "Jaiprakash Associates is the biggest story inthe entire infrastructure space in this country. Not many peoplerealise what kind of consolidate company JP Associate is, so wouldlike to break it down for you. It is a 7 million tonne cement company,which is expanding to 13 million tonne. So by December 07, the companywill become 13 million tonne. It is putting up another 2 million withSAIL as part of its joint venture partner where it has 75%. So net-netit will become a 15 million tonne cement company by December 07."He further added, "It is the largest EPC (Engineering, Procurement andConstruction) contractor in the hydroelectric power space and webelieve that it is the largest and one of the best in the country.Around Rs 11,000-12,000 crore (Rs 110-120 billion) worth of orders arepending with it.""It has three power subsidiaries. If one takes a consolidated viewthis company would add around Rs 65 to JPs valuation per share. Butthe biggest sweetener lies in JPs Taj Expressway project. This projectcould become one of the largest property stories in the country also.We believe that the Taj Expressway Project, which is 160 km expresswayproject. It is to be built by JP from Agra to Noida. They have a rightto collect toll for 36 years. But the biggest story in the JP lies inthe 6000 acre of land, which has been allotted to them to develop thisproject. So the BOT project, which JP is doing, is going to getrevenue for 36 years from operating the highway.""But the biggest windfall for JP will come from the point of 6,000
is a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."Disclosure: We have discussed the whole host of sectoral plays andstocks, definitely we have advised our clients to be in all the stocksand some of the stocks would be in our personal family portfolio, sowe would be having some vested interest as far as disclosures areconcerned.--~--~---------~--~----~------------~-------~--~----~link for joining google grouphttp://groups.google.co.in",1]
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acres of developmental land, which has been given to this company. Itis a bit subdued at this level. But we have confirmed understandingthat this 6000-acre of land would be available. Just to put it intoperspective, as far the valuation is concerned the market cap of JP isaround Rs 8500 crore (Rs 85 billion) as of date and if I put a valueto this land it would be Rs 18,000 crore (Rs 180 billion) only on theland value. So they are talking about almost double the size of theentire marketcap of the value of the land, which has been allotted toJP. So it could be a bigger blockbuster story, which we believe is agreat play on the infrastructure and the property sector in thiscountry.""We have a target of Rs 750 till JP expressway comes into play. Oncethe JP expressway comes into play we believe it could be Rs 1250 pershare of the JP. Because what you said companies do not get value onland but the kind of land bank this company will have and thedevelopmental rights and going forward the developmental projects,this company will do along with a cement play, which is almost 15million tonne cement, which will make it a third largest cementcompany almost in this country. We believe JP is highly under valuedits level and from now on in next one and a half years it could be amulti-bagger story in the making."

surya laxmi updates

The Rs 600-crore Shri Lakshmi Cotsyn Ltd is bucking the general trend of the textile industry by moving from synthetics to cotton, taking advantage of the growth opportunities, both domestic and foreign, afforded by the natural fibre.
Disclosing this to Business Line here, the Chairman and Managing Director of the Kanpur-based Shri Lakshmi Cotsyn Ltd, Mr M.P. Agarwal, said after mastering into technical textile fabrics for industrial and institutional segments, the company is entering the individual home segment with terry towels, home furnishing, denim fabrics, garments and bottom weight fabrics.
He said his company has capacity to produce 3,000 tonnes per annum of 100 per cent cotton terry towels.
The company has undertaken a Rs 264-crore expansion programme recently and commercial production would begin from the expanded capacity by December in all product portfolios such as denim, bottom weight fabrics, bed-sheets and terry towels. The company is putting a 1,500-tonne-yarn processing plant for captive consumption.
Mr Agarwal said the first quarter results (July-September) of 2006 were announced at the company's board meeting held here on October 30. Against Rs 81.92 crore sales of 2005 first quarter, the company's sales during the current year's first quarter grew 20 per cent to Rs 98.52 crore, exports by 17 per cent and profit after tax to Rs
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09. \nMr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE. \nBullish on exports \n\nExplaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers\' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability. \n\n\n\n\n\nHe said as India\'s share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets. \nCurrently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments. \nOnce the company\'s nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up. \n\n\n\n© The Hindu Business Line",1]
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5.10 crore (Rs 4.02 crore). He said the company's turnover in fiscal year ending June 30, 2006 touched Rs 360 crore.
He said with the completion of the expansion plan expected soon, commercial operations from January to June 2007 would add Rs 200 crore to the total turnover, taking the overall turnover to Rs 600 crore by end-June 2007. He said the objective is to take this turnover to Rs 800 crore in 2007-08 and to Rs 1,000 crore by 2008-09.
Mr Agarwal said though annual exports have been accounting for Rs 50 crore now, it would be progressively stepped up to Rs 500 crore by 2009, as efforts were on to tie up with major retail chains abroad such as Wal-Mart in the US for terry towel and other cotton-based textile products the company is manufacturing now. He said the focus is on the major markets of the US, Europe, and the UAE.
Bullish on exports
Explaining his optimism on the export front, Mr Agarwal said his manufacturing unit is producing microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt tolls and plackets. He said the interlining is produced in different sizes to meet the customers' standards and is 100 per cent shrink-poof and showing good bonding and dimensional stability.
He said as India's share is around 3 per cent in terry towels and 8 per cent in denim in global trade, his company sees immense growth potentials in the export markets.
Currently, the company enjoys a domestic distribution network of 300 agents across the country for domestic sales, besides supplying defence-related items such as bullet-proof jackets and bullet-proof helmets to defence establishments.
Once the company's nylon plant and garmenting unit in Roorke also goes on stream, Mr Agarwal is confident of supplying his textile products to domestic retail chains too as they are also getting spruced up

PICKS OF THE LOT

following are the companies which looks interesting to me..... i dont have any stake currently but will be buying soon as market shows a correction
perfect time to start tracking according to me


Company name: ABC bearing
Price: 162
EPS: 9...annual 18
Promoter holding: 25
Mutual n FII: 11
Public: 25
NRI….25
Sales n Profit
2004 110...6.2
2005 149…11.52
2006 176….15.7
Capital 11 crs…reserves 16
Support at 110

Company name: Ansal Housing
Price: 283
EPS: 20
Promoter holding: 40%
Mutual n FII: 7%
Public: 25%
Corp : 25%
Sales n Profit
2004 69.3 3
2005 79.7 6
2006 125.4 20.5
Capital 14 crs…..reserves 72 crs
Support at 250…..200

Company name: Amtek India
Price: 166
EPS: 15
Promoter holding: 53%
Mutual n FII: 30%
Public: 13%
Corp : 4%
Sales n Profit
2004 207 21
2005 280 30
2006 472 66.2
Capital 12 crs
Support at 140…..110

Company name: Birla Corp
Price: 337
EPS: 32
Promoter holding: 63%
Mutual n FII: 20%
Public: 9%
Corp : 7%
Sales n Profit
2004 1243 41.5
2005 1342 86.8
2006 1433 125.7
Capital 77 crs…..reserves 300 crs
Support at 275…..250

Company name: Elecon engg (stock split valuation)
Price: 308
EPS: 15
Promoter holding: 42%
Mutual n FII: 20%
Public: 30%
Corp : 7%
Sales n Profit
2004 160 2.16
2005 277 10
2006 442 31
Capital 5.7 crs…..reserves 97 crs
Support at 250…..200


Company name: Gateway Dist
Price: 175
EPS: 8
Promoter holding: 50%
Mutual n FII: 38%
Public: 6%
Corp : 6%
Sales n Profit
2005 93 34
2006 130 72
Capital 92 crs
Support at 150

Company name: Graphite India
Price: 309
EPS: 40
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2004 549 51
2005 546 48
2006 650 62
Capital 29 crs…..reserves 424 crs
Support at 250…..225

Company name: GM BREW
Price: 138
EPS: 13


Company name: Godawari power
Price: 87
EPS: 20
Promoter holding: 54%
Mutual n FII: 18%
Public: 13%
Corp : 7%
Sales n Profit
2006 270 22.5
Support at 85…..70

Company name: Marksans pharm
Price: 103
EPS: 6
Promoter holding: 48%
Mutual n FII: 34%
Public: 8%
Corp : 8%
Sales n Profit
2004 80 4.5
2005 144 15
2006 292 23
Support at 100

Company name: S kumars Nationwide
Price: 77
EPS: 6.5
Promoter holding: 52.67%
Mutual n FII: 26%
Public: 6%
Corp : 14%
Sales n Profit
2005 344.5 9.1
2006 890 100
Capital 5.7 crs…..reserves 97 crs
Support at 60…..50

Company name: Rajesh Exports
Price: 239
EPS: 25
Promoter holding: 61%
Mutual n FII: 12.13%
Public: 19%
Corp : 8%
Sales n Profit
2004 3050 27.3
2005 4247 43
2006 5482 66.54
Capital 7.39 crs…..reserves 228 crs
Support at 200…..175


Company name: Prajay engg
Price: 270
EPS: 20
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 17.76 .77
2005 23.26 4.45
2006 73 22.7
Capital 14 crs…..reserves 72 crs
Support at 200….175
The company is doing well…the only concern is the decreasing promoters stake…good thing is all well note FIIS have stake against it….another concern is the promoters were issued shares against warrant at 175


Company name: SE Asia marine
Price: 175
EPS: 20
Promoter holding: 78%
Mutual n FII: 5.21%
Public: 11%
Corp : 5%
Sales n Profit
2004 96 30.6
2005 82 18
2006 last quarter fucked up
support at 150

Company name: Orient Ceramics
Price: 130
EPS: 25
Promoter holding: 22%
Mutual n FII: 47%
Public: 22%
Corp : 8%
Sales n Profit
2004 110 2
2005 120 3.5
2006 140 4.3
Capital 4.68 crs…..reserves 31 crs
Support at 100….80

Company name: Nitco tiles
Price: 200
EPS: 15
Promoter holding: 48%
Mutual n FII: 23%
Public: 10%
Corp : 13%
Sales n Profit
2006 275 20
Capital 22 crs…..reserves 235 crs
Support at 200….175

Company name: Nectar Lifescience
Price: 152
EPS: 25
Promoter holding: 66%
Mutual n FII: 8.67%
Public: 14%
Corp : 11%
Sales n Profit
2006 287 25
Capital 14.8 crs…..reserves 158 crs
Support at 130-120

Company name: Mahindra Ugine
Price: 127
EPS: 15
Promoter holding: 56%
Mutual n FII: 22.5%
Public: 4%
Corp : 13%
Sales n Profit
Sales n Profit
2004 412.5 6
2005 587 48
2006 738 65
Capital 32 crs…..reserves 110 crs
Support at 110….100


Company name: India glycols
Price: 133
EPS: 15
Promoter holding: 47%
Mutual n FII: 15%
Public: 29%
Corp : 6.5%
Sales n Profit
Sales n Profit
2004 490 57.2
2005 635 79
2006 797 58.57
Capital 27 crs…..reserves 259 crs
Support at 125-120

Company name: Indo Asian Fuse
Price: 127
EPS: 11
Promoter holding: 30%
Mutual n FII: 6%
Public: 30%
Corp : 33%
Sales n Profit
Sales n Profit
2006 156 16
Capital 14 crs…..reserves 38 crs
Support at 125-120