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.

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.

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 /-

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.

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.

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.

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/-

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.