Thursday, April 29, 2010

SIYARAM SILK MILLS LTD - Buy

Textile companies are underperfomers in India over
a long period of time .But a close look reveals that companies
having branded products are performing better in
this space. Siyaram Silk Mill is such a company .
It is the flgship company of the Siyaram Poddar group.
Company having  48 million metres fabric production
capacity per annum and   it  selling the same through 40000 outlets
throughout  the country.Siyaram's ,J Hampstead and
Oxemberg are the well known brands from the company.
Company is growing steadily over the past few years
and now paying much attention to create brand awareness.
Company recently launched suitings  under the brand name
Messari, Elanta and Tropez . Last year company posted
a turnover of Rs.532 Cr and a net profit of Rs.11.5 Cr.
For the nine month ended Dec 10 ,company posted 474
Cr sales and 18.5 Cr NP.Company is expected to post
an EPS of Rs.25 for full year which is a 100% rise over
last year. Siyaram already declared an interim dividend
of 60% in this FY.It is a decent pick from the textile sector.
CMP is Rs.168

Wednesday, April 28, 2010

JSW ENERGY - RESULT UPDATE

JSW ENERGY  has declared  its first full year result after the listing of its shares in stock exchanges.Company has posted Consolidated NP of  745 Cr for the full year (Growth of  170% than last year).Even we exclude the other income component ,result is excellent. Considering the fact that ,only 1/10 of its expected capacity by 2013  is operational now, it is an excellent BUY even at current level .Any decline due to general negative sentiment may be taken as an opportunity to accumulate it.Company also declared a dividend of 7.5%.

Reproducing our earlier report below:

----------------------------------------------------------------------------------------------------------
JSW ENERGY Ltd is originally promoted by Sajjan Jindal 
Group and  Belgium based Tractebel S.A in 1994.Later 
in 2001 Tractebel sold its stake and exited from 
the company.It started commercial production of 
power in the year 2000 and now it has two thermal
power plants with a total capacity of 860 MW.
These two plants are in vijayanagar ,Karnataka and 
one of these  can run with dual fuel(gas and coal)
and the other one is coal based.
It also have another 1200 MW capacity plant under 
construction at Rathnagiri which is expected to fully
operational by October 2010.Another 1080 MW capacity 
Lignite based plant is also under construction 
(Raj West Power) in Barmer ,Rajastan which is expected
to fully commissioned in the beginning of 2011.
Some of the other plants-RWPL Phase 2 (270MW by 2013,)
Kutehr Hydro power project(240 MW by 2015), 
Chhattisgarh (1320 MW by 2014)Maharastra
(3020 MW Coal based), West Bengal(1600 MW coal based),
Jharkhand(1620 MW) are also under various phase of 
implementation. For most of the projects which are 
going to be commissioned in near future ,company 
already signed power purchase agreements .
To part finance its various projects company came
out with an IPO in December
2009 and collected 2143 crore. To ensure the supply 
of coal for its various project company already signed 
agreements with various agencies mainly with Sungai 
Belati Coal, Indonesia. Company also formed another  
joint venture company with Toshiba Corporation  in the
name of Toshiba JSW Turbine and Generator Private
Limited.This company is meant for the design,
engineering, manufacture, assembly and sale of
sub-critical and super-critical steam turbines
and generators which will 
range in capacity from 500 MW to 1,000 MW.
                     Major risk of project execution
is applicable to JSWEL as in the case of any 
large project. But considering the facts that, 
it already implemented and started production from
some of its plants  and the experience got from it 
along with the  strength of the group gives 
sufficient confidence in this company. Also ,
the commissioning of its  various projects 
in near future gives revenue 
visibility which is a major positive for the company. 
Investors expecting low risk with steady return can 
BUY JSW Energy at current market price of Rs.115/-

Monday, April 26, 2010

COSMO FERRITES Ltd- Turning Business Cycle.


Cosmo Ferrite Ltd is a Cosmo Films group company
and one of the largest manufacturer of
Manganese Zinc Soft-ferrite from India.Major applications of
Ferrites are in Inverter transformers,
driver transformers,pulse transformers,
line filters and noise suppressors.It cater the
industries like lighting,telecommunications,
computers,entertainment electronics,process
control and consumer electronic devices 
.Major part of company’s products are exported ,
mainly to USA. Company having manufacturing
facility to make 2350ton ferrites powder and
2000 ton ferrites component annually .
This industry is cyclical in nature and now
it is coming out of a bad cycle .For the last six
months company is showing turnaround performance .
Now it is quoting around Rs.13/-.Keep an eye on this. 

Sunday, April 25, 2010

INTERNATIONAL TRAVEL HOUSE LTD -From The Group of ITC.


 
 
 
 
International Travel House Ltd(ITHL) is a company
under the same group of ITC Ltd. Started in 1981,
now it is one of the largest travel management
companies in India. Company has 42 offices in 13
cities across India. ITHL has 700 trained travel
professionals. Company’s business span across sectors
like Business travel,Car Rental,World Tour,Destination
management services,Wedding management services,
Money changing  and conference management
services  etc.In recent past tourism industry
came through some difficult phase due to reasons
like world trade centre attack,recession..etc.
Even in these difficult times company’s performance
was stable. Now the country is showing fast revival
in all related segments ,especially in business tours.
ITHL is one of the few listed  companies which can reap
the benefit of this revival in this sector.
Cox and King is the another comparable company of ITHL.
For the nine month ended December 2009 company  
posted a turnover of Rs.59.5 Cr and a net profit
of Rs.8 Cr. It is expected to close the full
year with an EPS of Rs.13/-. Company has an
uninterrupted dividend history for the past
many years ,paid 30% each in last three years.
Currently ITHL is quoting at a price of Rs.165/-
which is at a P/E multiple of 13 for the expected
EPS of the full  year'10. This ITC group company
deserves higher valuation from current level.

Thursday, April 22, 2010

STERLING STRIPS - A PENNY STOCK


Sterling strips is a small engineering company,
started in 1984 by Mr S Venkata Subramanian an
Ex- Employee of THERMAX Ltd. Now company is a BIFR
case due to mounted accumulated losses. Company is
providing EPC services to industries like Power,Steel,
Refinery..etc. After a long time, company is showing
some distant signs of revival. Even the size is very
small at present there is enough scope in its user
industries .If the management is capable of
capitalizing this opportunities after the
BIFR ruling ,one may get decent return from this
penny stock in long term .Keep tracking few more
qtrly results and then take a decision.
Don’t take it as a recommendation to BUY .
Currently it is quoting around Rs.7/-

Wednesday, April 21, 2010

ARIES AGRO - RESULT UPDATE

Aries Agro has published its full year un audited results .For the full year company posted a net profit of Rs.12.5 cr. as against a profit of 1.27 crore for the same period in last year.For the three monts ended March qtr ,turnover is 36 crore v/s 25 crore and NP is 2.3 crore v/s a loss of 5.9 crore last year. Hold and BUY on decline.

Tuesday, April 20, 2010

BECKON IND , FCS SOFTWARE --- SOMETHING FISHY ?

In a bull market retail investors are not bothered about the quality of stocks but looking only into the price movements.Only in the following bear phase they realize what they really owns. Lot of promoters are really making money in such a market by selling their own shares . Cost for this is only some amount spent for advertisement about never happening projects and some commission to the operators.
                                                                Let us go through the story of  the promoters of one such company BECKON INDUSTRIES.In their earlier avthar its name was AGK COMPUTER SECURE PRINT Ltd which promoted for making computer stationery.Later it diverted the business into a number of fields according to the market fancy in stock market. They are announcing  lot of  plans time to time in each of these fields like education, bio fuel ..etc.About two years ago Beckon announced a warrant issue to some parties(most probably someone related with promoters). But later market crashed and they made an announcement on March 07,2009

As per this announcement they have planned a meeting on March 16, 2009 to take  decision  to refund the initial amount paid for the warrants to the applicants(then 10% of the total amount) . Even a lay man having some connection with the stock market knows,in any circumstances the initial amount can't be  refunded and it should be forfeited ,if they are not paying the balance amount.This is the knowledge of the company secretary of this company in corporate matters. after this announcement I have contacted with the company and got a reply as follows

"We have sought the legal opinion on the matter and in the light thereof the board will decide whether to refund or not the money received before conversion of warrants."

After few days of this incident company through another filing to BSE informed that they have adjourned  the said meeting due to non availability of quorum. It is clear that when the market crashed they tried to take back the money even by violating rules. Thereafter  company  has made a lot of announcements even on a daily  basis .Before entering into this scrip just check anyone of their previous projects materialized so far. They are showing mind boggling results.But I really feels that these results are fabricated and by showing such results and great announcements they are offloading shares to the poor retailers.I cant say share price will not rise  ,because even manipulators can do something in a market like this.BUT ONE SHOULD KNOW THE RISK INVOLVED IN INVESTING IN SUCH SCRIPS BEFORE ENTERING INTO IT.

CMP of Beckon Ind  is Rs.11 /-

Monday, April 19, 2010

ITL INDUSTRIES - BUY

----------------------------------------------------------------------------------
Repeating the recommendation on March 1 , @ Rs.54,Now it is quoting @ 69, and a BUY even at current level
-----------------------------------------------------------------------------------




ITL Industries (BSE CODE 522183) is a small but rapidly growing company from Industrial Machinery sector. Company started its operations in 1986. In 1996 company entered a technical collaboration agreement with KASTO Maschinenfabrik GmbH Germany for manufacturing state-of-the-art High Speed Power Hacksawing Machines in India, with a buy back arrangement. In addition to its sales points across India, it has representative sales offices in US and Germany. Its product list includes Band Saw Machine, Circular sawing Machine,Tube and Pipe making machine,Blades,special purpose machines ..etc.
In the year 2004, ITL introduced India’s first indigenously designed and developed CNC Carbide Tip Circular Sawing Machine and displayed the same in EMO Show at Hannover, Germany in September 2005 & 2007 with very good global response. Today ITL offers wide range of Circular Sawing Machine for cutting ferrous and non-ferrous Bars, Sections, Profiles and Tubes. In a growing economy like India, there is large scope for company`s products.
ITL is located at Plot of approx. 4 Acres having covered area of about 108,000 square feet and additional land available for shed expansion approx. 44,000 square feet. To cater overseas requirements ITL has acquired additional land in Special Economic Zone and expects to start production by end of 2009. Company`s Customers include Steel Plants, Forging Industries, Defense Establishments, Railways Workshops, Bharat Heavy Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI and HINDALCO etc.
On a tiny equity base of just 3.25 crore ITL is expected to post an EPS of Rs15 + in the current fiscal. In the first nine month itself ITL posted an EPS of Rs10.12 which is almost three times than the last full year EPS of Rs.3.64.It also declared a dividend of 10%. Considering the growth of the company there is fair chances for good appreciation. ITL is trading at Rs.54 which is at a P/E multiple of less than 4 to the expected EPS of current year which is really a valuepick.

Sunday, April 18, 2010

KENNAMETAL INDIA


Kennametal India (KIL), formerly WIDIA INDIA is a
part of Kennametal Inc, USA and this Indian unit
is located at Bangalore . Company is a machine tool
major caters to auto and auto related industries,
light and general engineering industries. Its product
portfolio includes Metal & Metalworking Solutions ,
Machine Tools and Engineered Products .Worldwide
recession severely affected the company’s performance
last year and due to lack of sufficient demand
company cuts its production level ,reduce wages and
even shut down its plants for few days in last FY.
Demand of its products are closely linked with the
overall growth of core sector. Company’s customers
include GM, TVS, TELCO ,Yamaha, BHEL,
Northern Railways, Ordinance and Armament factories,
Inter Drill Asia, Escorts, Gabriel, Sterling Tools
and SKF Bearings. Most of the customers are showing
revival in their operations now.Last year Kennametal
posted a turnover of Rs.305 cr. And a net profit
of 28 cr.Company’s year ending is June and for
the half year ended Dec.2009 company’s turnover is
166 cr,and NP is 24 cr.,Which is much higher than
the last year same period.Kennametal is expected
to come back to its previous golden days soon.
This MNC is a buy at current 350 level.

Thursday, April 15, 2010

RAM RATNA WIRES-Excellent Growth


Ram Ratna Wires is established in 1992 which
makes  Super enamelled copper winding wire,
copper wire, copper scrap and PVC insulated
winding wires. This company is a member of Ram ratna Group
which makes wiring cable under the brand name
‘RR KABEL’.Company’s products are widely used in
industries like Electrical, Electro-mechanical,  Electro
hydraulic or Electro-pneumatic, Electronic and
Telecommunication equipments and  devices.
Now company is in an expansion drive to increase its
production capacity at its existing unitsand also planning to
expand its product line to Enamelled  Strips, Enamelled
Aluminium Wire, Submersible Winding Wire, Fiber
Glass  Covered Copper  Strips,  Paper Covered Copper Strips etc.
Copper price is the key factor affecting the
profitability of the company. Since it is the time of booming
business for its customers company can pass part of the raw
material price to its customers. Last FY company
posted a turnover of 303 crore and a NP of just 1.3 crore and
an EPS of Rs.1.2.For the nine month ended December
qtr RRW posted a NP of 8.1 crore v/s 1.3 crore in last full
year.It is expected to post an EPS of Rs.10/-
for the full year which is almost a 10 fold increase compared
with last year.Company has an uninterrupted dividend history too.
At CMP of Rs.48/- It is a scrip to watch.

Wednesday, April 14, 2010

BOOK PROFIT IN GUJARAT RECLAIM

Gujarat Reclaim and Rubber products recommended on March 26, 2010 @ Rs.730 is currently quoting at Rs.931 after touching a high of Rs.985/-.Exit at current level.

LAKSHMI ELECRICAL CONTROL SYSTEMS


Lakshmi Electrical control system (LECS)is a 
Lakshmi Machine Works group company
established in 1981.LECS is located at
Coimbatore.Its products line includes
Switch Gears,Control Panels,Robotics,Motor
protection devices and Engineering
plastic components.40 % of company’s revenue
is coming from electrical related business
,35% from textile machinery,10% from engineering
plastic and rest from others.Company
has a technical collaboration with Switzerland
based Rockwell Automation. Due to global recession
company’s last year performance badly affected
especially in the second half ,but now things
are changing rapidly and it is expected to
post excellent performance going forward.
Last year company posted a turnover of 101 crore
and a NP of Rs.5.4 crore .For the nine month
period ended in Dec.2009 LECS already
posted 5.19 crore Np and expected to post
an EPS of Rs.30/-for the full year .This LMW group
company is a BUY on decline around Rs.200,CMP is Rs.238/-

Monday, April 12, 2010

ROTO PUMPS Ltd -BUY


Roto Pumps started its operations in 1968 as a
producer of progressive cavity pumps , whose
demand met by import till then.
Company  also producing Twin Screw pumps and
Centrifugal pumps in its two most modern facilities
located at Noida.Roto distributing its products
around the globe and it has marketing offices in
Australia and UK. Company also having
strong marketing network in India.Progressive
cavity pumps are used to pump liquids with high
solid content and flow needs to be controlled .These
type of pumps are generally used in industries like
Beverages,Pharma,Food processing,dairy,Effluent and
sewage treatment and mining etc..Other type of
pumps made by the company are used in sectors
like irrigation,agriculture..etc. Half of its sales
coming from export and this itself is a testimony
for the quality of Roto’s products.Roto is going
through a capacity expansion programme and the
benefits of it will reflect in the near future.
Now company’s customers are posting good business
which will help the company too.This is one of the
cheaply valued listed player in this sector compared
with KSB Pumps,WPIL,Kirloskar Brothers,Sakthi Pumps
..etc . Roto has  a tiny equity base of 3 crore where
promoters are holding almost 70%.Last year company
posted a turnover of Rs.52 crore and a net profit
of Rs.3.3 crore and an EPS of RS.10.7 .On a continuous
basis ,for the past four years company increasing
its sales and net profit.For the nine month ended
Dec.2009 ,Roto posted an EPS of Rs.8.70/- and expected
to close the full year with around Rs.12/-.Currently it
is trading around Rs.80/- with P/E of below 7 compared
with industry p/e of 30-40.A good Buy for medium term .
Raw material price is a major factor to watch.

INDSIL HYDRO POWER AND MANGANESE LTD.-Booming Business

Fortunes of Ferro alloy makers are always associated with the growth of Metal Industry,especially steel.India’s steel production is expected to touch record level in this year.This will surely help ferro chrome companies too.Indsil Hydro power and Manganese is a well managed mid size company from this sector.Indsil has two ferro chrome units ,one in Kerala and the other in Chattisgarh.Since it is a power intensive industry ,company also operating one mini hydel power plant and another coal fired power plant to reduce power cost .Earlier company took 50% stake in an Indonesian Manganese mining venture but later drops this plans and sold the stake due low quality of Manganese from that mine.Now company has signed an agreement for a 50:50 joint venture for the purpose of setting up a 75,000 tpy ferro chrome smelter in the Sultanate of Oman .This project is at a cost of Rs. 140 crores and is expected to operational by end of 2011.Due to crash in metal sector ,last year company posted muted result (NP of 2.8 crore.) With the revival in steel sector, now company is performing well and already posted a NP of 8.41 crore in the first nine month period of this FY which translates into an EPS of Rs.9/- ,full year EPS is expected @ 14/- .At CMP of Rs.76/- ,it is a decent BUY

Sunday, April 11, 2010

ARIES AGRO - MUTUAL FUNDS HIKING STAKE.

Increasing stake of mutual funds and big well known Investors in a company is always considered as positive .Aries agro is one such small cap where mutual funds increased their stake in latest March Qtr. Comparison with September qtr showing SBIMF - Magnum Comma Fund now holding 180,455 shares against 144,457 shares ,and a new scheme of SBI MF Magnum Sector Fund Umbrella Emerging Business Fund bought 314,068 shares as against NIL shares in September qtr.Along with this Birla Sun Life holding 334,298 shares in this small cap.Keep an eye on ARIES AGRO .

Saturday, April 10, 2010

RUNGTA IRRIGATION Ltd. - In a Space with Huge Potential.


                                               
About the Industry 
---------------------------

Micro irrigation technology is rapidly expanding all
over the world especially in the water scarce areas
of developing  countries.This system is best utilized
in India and China but still there is ample market
potential with changing trend in agriculture. 
Water scarcity is the most important driving
factor of the Micro Irrigation Systems (MIS)industry
in India. Along with this ,the area available for
crop production,growing population in the country
and GDP of the agriculture sector also contributes
to the growing demand for MIS.
The water use efficiency under conventional  method 
of irrigation, which is predominantly practiced in
Indian agriculture, is very low due to substantial
conveyance and distribution losses. Recognizing the
fast decline of irrigation water potential and
increasing demand for water from different
sectors, a number of demand management strategies
and programmes have been introduced to save water
and increase the existing water use efficiency in
Indian agriculture. One such method 
introduced relatively recently in Indian
agriculture is micro-irrigation, which includes
both drip and sprinkler method of irrigation.
Micro-irrigation is proved to be an efficient method
in saving water and increasing water use efficiency as
compared to the conventional surface
method of irrigation, where water use efficiency 
is only about 30 percent. Micro-irrigation is also
found to be reducing energy (electricity) requirement,
weed problems,soil erosion and cost of cultivation. 
Investment in microirrigation also appears to be
economically viable .Despite this, as of today, the coverage
of drip (2.13 percent) and sprinkler (3.30 percent) method
of irrigation is very meager to its total potential, which is 
estimated to be 21.01 million hectares fordrip and 50.22 million
hectares of sprinkler irrigation method.

About the Company
--------------------
There are mainly three listed players in this space, 
JAIN IRRIGATION ,EPC INDUSTRIES and RUNGTA IRRIGATION.
There is also some other small players like Sturdy 
Industries,Tulsi Extrusion ..etc.But these two can be
avoided - first one due to lack of quality of
management and Tulsi Extr.due to the small share 
of micro irrigation products to its total turnover.
There is no justification for comparing an elephant
with an ant ,so no question of comparing 
Jain Irrigation and  Rungta.Incorporated
in 1986, Rungta Irrigation Ltd
is engaged in manufacturing, designing, assembling
and marketing of Micro irrigation systems 
(including sprinkler and drip irrigation systems). 
Rungta’s Manufacturing units located in the Sirmour
district of Himachal Pradesh,Ghaziabad in 
Uttar Pradesh, and in the Yanam district
within the Union Territory of Pondicherry with 
combined installed capacities of 4,500 MTPA HDPE
pipes, 200,000 HDPE pipes with couplers, 
5,000 MTPA rigid PVC pipes and profiles, 
750 MTPA linear low density polyethylene tubes,
and 350,000 aluminum pipes with couplers.The company
is focused on PVC Pipes as well as its core product
Sprinkler Irrigation System and Drip Irrigation
System to the retail segment, were margins
are high.It is expected  that recovery  in economy
and thrust of  the  government in agriculture area
will together result in ample business opportunities
for the  company.



Recent Developments
-------------------
Rungta Irrigation Ltd has at its meeting
held on January 12,2010 has allotted 20,50,000
equity shares of Rs. 10/-each at a premium
of Rs. 25/-each against the conversion of 20,50,000
convertible warrants.Samara Realty Pvt.Ltd got
9,50,000 shares and Pleasure Investment Pvt.Ltd to
allotted 11,00,000 Number of shares. Moreover
the main promoter of the company Mr M P Rungta is
consolidating his holdings through off market
transactions within the promoter group itself.
Such activities can be taken as a  proof of the
management’s confidence in the growth potential
of the company’s business.


Financials
-------------
For the last FY, the company has reported a sales income of Rs. 35 crore and net profit of Rs. 63 lakhs. For the nine month ended Dec.2009 company already  posted a NP of 77 lakhs and expected to post more than 1 crore in this full year. At present the results are not encouraging but the notable point is that ,for the last three years company’s NP is growing steadily. Considering the immense thrust of the government in agriculture sector and huge potential for  the company’s products along with increasing promoter/big share holders commitment, we can expect a bright future for Rungta Irrigation. Currently it is trading at Rs.58/-
 











Friday, April 9, 2010

STERLING TOOLS -IMPROVING BUSINESS


Sterling Tools is one of the largest suppliers
of fasteners to the OEM ‘s in automobile industry.
Company’s products list includes hub/wheel bolts, hub nuts,
wheel studs,suspension bolts, propeller shaft bolts/nuts,
centre bolts,track shoe bolts/nuts, rivets and two
wheeler spindles.Apart from OEM supply company also
having a wide marketing network for selling its products
to non OEM customers.Sterling has four plants ,one each
at Faridabad,Ballabhgarh, Prithla and uttaranchal.Company
 is also exporting its products to major automakers in U.S.,
UK,and Europe.Company has recently signed an agreement
with Netherland based Fabory B.V for setting
up a plant in India for non automotive 
fastners.This is a 50:50 joint venture with this giant
which having presence in 16 countries worldwide.
Last year company’s performance was poor due to
sluggish demand in auto and related sectors.
With the revival in demand, now company 
is again returned to high growth phase. In last FY
company posted a turnover of 151 crore and a net
profit of 1.7 crore.For the nine month
ended in this FY, company already 
posted a turnover of 123 crore and a net profit
of Rs.7.6 crore and expected to post an EPS of Rs.18/- for
the full year.Company has a  very liberal dividend history and
already declared  30% interim dividend
in this FY.In 2005 company declared
a bonus in 1:1 ratio. Currently it is trading around Rs.97/-
A good BUY on dips.

Thursday, April 8, 2010

VESUVIUS INDIA - A WORLD CLASS COMPANY


Vesuvius India is a part of U K based COOKSON group 
and one of the largest manufacturer of Refractories in India .
In 2008 Cookson aquires foseco hence
two companies (Vesuvius India and Foseco India) are
operating in India under the same parent. But the product line
of these two companies are different and
are not competing each other. Vesuvius India makes high-end
refractory products,flow control systems and services.
These products are used by steel manufacturers using the
continuous casting process for manufacturing steel.
Since most of the steel producers have switched to this
technology company’s products are in good demand and the
increase in steel production due to the revival in core sector will
help the company a lot in future.Cement,glass,foundry  and
petrochemical industries are also using company’s products.
Company’s main plants are located in Kolkatta and visakapatanam.
Strength of parent  and its leadership position in refractory
 products with strong R&;D is expected to help the company
to add more products to its portfolio.Company has posted
 a turnover of Rs.364 crore and a net profit of 37 crore last
year.company’s year ending is in December .Next financial year
Vesuvius is expected to perform even better mainly because
of the improvement in steel production where its products
are used.Vesuvius is an excellent MNC company available
at a P/E of just 13 which is at the lower end for a
company like this.CMP is Rs.251/-

Wednesday, April 7, 2010

BHARAT RASAYAN - BUY

Bharat Rasayan is a member of Bharat Group and one of the leading Manufacturer and Exporter of large range of Pesticides, Formulations and Intermediates for Crop Protection and Pharma Industry. Currently company exporting its products to more than 55 countries across the world.Bharat has a large domestic presence too with 18 branch offices, 18 depots and 1200 dealers.Company’s products includes Insecticides,Herbicides,Fungicides and Intermedites.It is one of the few companies manufacturing its own technical grade pesticides from basic raw materials with storng R &D.Due to governments thrust on agriculture sector company’s like Bharat Rasayan is expected to perform well in future.Last year company has posted a turnover of 106 crore and a net profit of 5 crore which translates into an EPS of Rs.11.5 .For the nine month ended Dec 2009 ,company already posted an EPS of Rs.11.5 and expected to post Rs.15/- for the full year. Company has an equity base of just 4.25 crore and out of this 75 % is held by the promoters itself. A decent BUY at CMP of Rs.80/- which is at a P/E multiple of 5 on expected full year EPS.

Tuesday, April 6, 2010

CHOLAMANDALAM DBS FINANCE LTD

------------------------------------------------------------------------------------
THIS SCRIP WAS EARLIER RECOMMENDED ON MARCH 8,2010 @ Rs.82/- .NOW IT IS QUOTING AT Rs.103 .AFTER THE RECENT DEVELOPMENTS IN THIS COMPANY ,IT IS WORTH BUYING EVEN AT CURRENT LEVEL .HENCE IT IS THE SECOND TIME .....
------------------------------------------------------------------------------------





Cholamandalam DBS ,the financial service arm of Murugappa Group is a well known name in South India . During last two years company was in trouble due to mounting NPA in its consumer finance business and posted huge loss in 2009 which forced the company to skip even the dividend. In order to bring back the company into past glory, management decided to stop the consumer finance business and asset management business (where it was the sponsor).After streamlining the product line company is now focusing in vehicle finance,corporate mortgage finance and home loan segment . It also planning to develop factoring business in a big way.All of its dedicated efforts are showing good signs. For the last nine months company’s disbursements up almost 80% over previous year and company back to black . Considering the history of group ,its recent repurchase of stake held by the DBS group and the proposed entrance of  International Finance Corporation into this company and lessons it learned from the past ,company’s performance is expected to improve significantly in future. Moreover ,management is very liberal in dividend payment – normally paying 40-45% (except last year) which ensures reasonable dividend yield too.

Monday, April 5, 2010

CHOKSI IMAGING - BUY

Choksi Imaging is incorporated in 1992 as an importer of photographic films. Later in 2000 onwards company completely exited from photography related business and started to concentrate in medical imaging business.Now company is a major supplier of medical related instruments which includes X- Ray films and chemicals,X-Ray accessories,Radiology equipments,colour Doppler,dialysers ..etc. Company representing a number of well known overseas companies in India which include ‘BIOSENSORS INTERNATIONAL’,CARESTREAM HEALTH,KYOKKO,DYNAWELL ..Etc.
Rapid growth in healthcare segment is expected in India in coming years which gives visibility for the business of Choksi Imaging . For the nine month ended in December 2009 ,company posted a turnover of Rs.107 crore and an EPS of Rs.9.15.In FY 2010 company is expected to post an EPS around Rs.13/- .CMP is Rs.47/- which is trading at a P/E multiple of just 3.5 which is very cheap for a dividend paying company like Choksi Imaging.

Sunday, April 4, 2010

RISHI LASER - Back To Black

Rishi Laser is one of the largest listed player from the metal
fabrication sector in India. It has operations in five states
with 13 units with most modern facilities like CNC Laser
Cutting Machines, Horizontal Milling/Boaring Machines,
CNC 5- Axis 3D Lazer Machine,Moving Column Milling
Centre ..etc. Company’s growth is closely associated
with the growth in infrastructure sector. Its main
customers are from sectors like Power, Automotive,
Telecommunication , Railway .etc. Major companies like
L&T ,Ingersoll Rand are the customers of Rishi and it also
processing orders from abroad. Last year company started
two units- one in Bangalore and other in Savli.To cater
the demand from Railway related sectors company started
a new unit in Pune too.At present ,almost all sectors
using the service of Rishi Laser returned to growth path.
So the company is ready to reap the benefits of the boom
in these sectors. Last year company posted a loss of 1.5
crore on a sale of 115 crore.For the nine month ended
December 2009 Rishi laser posted 88 crore sales and
almost nil profit /loss . Company is expected to return to
black on full year basis and post better results in next FY.
Currently it is quoting at 58/-

Saturday, April 3, 2010

ARIES AGRO

---------------------------------------------------------------------------------
THIS SCRIP WAS EARLIER RECOMMENDED ON MARCH 12,2010 AT A PRICE OF RS.108/-.NOW IT IS QUOTING AT RS 122/-.I FEELS EVEN AT CURRENT LEVEL IT IS WORTH FOR MEDIUM TERM INVESTMENT,HENCE....
---------------------------------------------------------------------------------




Mounting food inflation is a serious threat to the economies worldwide. But some companies are benefiting from this situation .All governments are forced to take steps to improve food production using scientific methods and most modern techniques. Companies from the agri- related sectors are the major beneficiaries of government’s such efforts.In India micro irrigation sector is getting very big boost in every budget .Even though fertilizer companies are also important in this perspective ,government control on fertilizer prices limiting their potential. Along with fertilizers, micronutrients are also gaining acceptance among Indian farmers. Moreover micronutrients are not subject to the regulatory constraints that fertilizers face. The micronutrients business has considerable potential in the Indian context. Factors such as low yields of major food grains and horticultural crops, high soil alkalinity and intensive cultivation are the key demand drivers for micronutrients. The market for micronutrients such as zinc, iron and copper in India, is expected to double over the next two decades. ARIES AGRO is the largest player in micronutrients from the organised sector in India. The other two players in this sector(from organized space) is Ranade Nutrients and Karnataka Agrochem ,but both are only regional players. Aries has 65 branded products coming from six manufacturing units in India , one each at Mumbai, Kolkatta, Hyderabad , Bangalore ,Ahmedabad ,Lucknow and one new factory in UAE which is mainly for catering middle east region and North Africa .Aries is in the process of launching new products which include Natural amino acid chelates,Boidegradable chelates and Bio-degradable plant protection products. With the inauguration of its Ahmedabad factory company entered into a new space of Bio fertilizers too. Company’s largest distribution network of 5500 distributors and 76500 (seventy six thousand five hundred) retail outlets across India is the main attraction for a rural centric business like this. In future company can easily roll out allied products throughout this network without much marketing efforts. In addition to this distribution points company has added a fleet of 100 rural retail vehicles called ‘Krishi Vinjan Vahan ‘ in 9 states in India.This is mainly for improving company’s rural reach and advisory services.

Financial Perfomance

For the nine month ended in December 2009 Aries posted a net profit of Rs.10 crore which is more than 300 % increase from the last full year figure(3.1 crore).Company is expected to post an EPS of Rs.12/- for this financial year and an EPS above Rs.20 for FY 2011. Going forward big corporates are expected to coming into the farming sector of India in a big way. This will surely improve the prospects of the products of companies like Aries along with the initiatives of governments to increase food production.

Friday, April 2, 2010

JINDAL HOTELS - In an Expansion Mode

This company has no relation with any of the famous Jindal Groups. Jindal Hotels runs a 3 star hotel in the name of Hotel Surya Palace at Baroda. It started its operations in  1987 and currently having  60 Deluxe Rooms , 46 Club Rooms and 8 Suites. It positioned as a hotel for  business travelers .Surya Palace won “Business Hotel of the Year – Economy”  award at the H & FS Awards for Excellence. Due to sluggish business enviournment in last few years company’s performance was not extraordinary. Even if it is a  single hotel company now,what is attracting is its very low equity base, prime location and rapid expansion plans .Company has a small equity base of about  5 crore (after convertion of warrants).It has recently concluded an expansion at a cost of 9 crore and going to spend another 38 crore( funding through loans and internal accruals) to develop another property near to its existing one. It also have some plans to start budget hotels in various locations. Last year company posted an EPS of Rs.4.2 .By all its new initiatives and growth in business  from the existing property, company is expected to post better results ahead. CMP is Rs.47/-

Followers

Tweet TopOfBlogs