MEDIAONE GLOBAL - Smart Promoters ,Poor Retailers

Media one Global is an example how promoters can make money in a bull market.Its name was Rajmatha Investment in its earlier avatar.There was about 1000 share holders all together for this company earlier .Shri Pathee Investments Pvt Ltd made an open offer at a price of Rs.11/-to this finance company and after that changed its name to the current one. Then they issued shares in the ratio of 5 shares for every one held (almost fully held by the promoters itself at that time ) and a right issue at cheap rate. Then they started to rig the share price from Rs.8/- to Rs.181/- in just one year accompanied by a lot of announcements on a daily basis to lure the retailers.After that they have started to offload the shares .
Want to make money in this method -Only cost is some money for
arrangements for open offer for any junk company ,some announcements,few lakhs to bribe authorities(if there is any inquiry during price rigging),link with some operators and lot of guts. Trying this ???

SANGAL PAPERS

Paper prices are ruling steady and it is expected to do

so in near future. So there is a strong chance of

re-rating in the price of the paper manufacturers

from current level. Sangal paper is a small un-noticed

player in paper segment. Company’s plant is located at

Meerut in UP.Though this company is small in size,

it is present in almost all varities like Newsprint,

writing ,colour paper..etc.For the full year ended

March 2009 ,company posted a turnover of Rs.58 crore

and an EPS of Rs.9/- .Company is expected to post

an EPS of Rs.13/- for the full year ending March 2010

on its tiny equity base of 1.3 crore. At CMP of Rs.17/-

it is trading at a P/E multiple close to just 1 .

Nothing to lose. 

ASTEC LIFE SCIENCE - Patience will Pay

Astec Lifescience is promoted by Mr Ashok

Hiremath and Dr.P L Tiwari. Ashok is the

brother of Jay Hiremath , the main promoter

of  another listed company HIKAL Ltd.In the

early stages, Ashok was also a

joint promoter of Hikal but later he came

out of Hikal and promoted this company.Astec is

a producer of active ingredients such as

Hexaconazole, Propiconazole, Metalaxyl,

Tebuconazole and Dicap which are used

for manufacturing fungicides and anti-fungal

drugs.Company’s major customers

includes Syngenta ,Indofil ..etc.Last year

company came out with an IPO to fund its

expansion plan .This expansion

will be completed in 2010-11 and capacity will

be expanded to 4000 tons.At present ,company is

running in existing full capacity. Agrochemical

industry is expected to perform well in future and

company is alls set to tap the opportunities in export

market for selling its products

after the expansion. Investors with patience

can buy at CMP of 57/- for a 100% return in two

year time frame.

NILE LTD - WATCHOUT THE RESULT

I have covered NILE Ltd on March 7 th @Rs.115 /- Company is going to declare its last qtr and full year results on 8th May .Company has two divisions viz Glass lined equipment and Lead. Company is making Lead through re-cycling method.Last year company posted a loss of Rs.2  crore due to lower price of lead in international as well as local market.After the revival in lead prices , NILE has posted a profit of 4.34 Cr for the nine month period ended in Dec.2009..On an equity base of just 3 Cr ,nine month EPS is Rs.14.5.If there is no negative surprise from the glass lined division, NILE is expected to post strong results.Comparing to last year ,commencement of its new plant at Tirupathi with 20000 tonnes per annum  lead making capacity is also expected to boost its bottom line.Currently it is quoting at Rs.152.60. Keep an eye on it  and take decision according to the results to be published on Saturday.

ACRYSIL -SECTOR IS RE-RATING

Acrysil is a known name in Kitchen Sink and Food Waste
Disposer.Recently company launched Kitchen Sinks made
from granite and Quarts ,which is getting good response
from the market.CARYSIL is the brand name of company's
new series of Kitchen sinks. Company also manufacturing
Kitchen Sink accessories like taps ,crockery basket..etc.
Acrysil has recently floated a new subsidiary to start the
production of stainless steel kitchen sinks.Considering
the revival in construction sector especially in housing sector ,
company is expected to perform well ahead.Company is
showing consistent growth over the past many years.
For the full year ended March 2009 company posted a
turnover of Rs.50 Cr and a net profit of 7 Cr .
This translate into an EPS of Rs.27/- on its tiny equity
base of just 2.8 Cr. Company also paid a dividend of 40%
in last year. For the nine month ended Dec ''09 Acrysil
posted an EPS of Rs.17/-(equity has slightly expanded
due to warrant convertion ).Now household appliances
and related sectors are going through a re-rating in
stock market.Keep an eye on this .CMP is Rs.128.25/-

TIMKEN INDIA - Bright Prospects.

Timken India Limited was jointly promoted
by The Timken Company, USA and Tata Iron
and Steel Company Limited in 1987 as Tata
Timken Limited. In 1999, Timken acquired
inter-alia Tata Steel's 40% equity holding
and consequently the company's name was
changed to Timken India Limited.
Timken Inc, the parent company of Timken
India Ltd is one of the world's
leading producers of highly engineered
antifriction bearings and related products
and services and alloy steel and components.
The company has operations in 26 countries
in six continents.

Timken India manufactures Tapered Roller
Bearings in its Jamshedpur plant.
These bearings cater to medium and heavy
trucks,railways and Timken company’s
global requirements. The company meets
the requirements of all other types of
bearings such as cyclical, roller and
needle bearings by sourcing these from
other Timken company’s plants globally.
Timken India Limited uses cellular manufacturing,
giving the plant, flexibility to produce
any part with a short lead time.
The company became the first company in
India to get QS 9000 3rd edition accreditation.
Timken India has network of 555 associates.
The company’s last year financial results
were bad with a 52% fall in the exports.
While domestic sales fell marginally.
The recession of US Automakers was the prime
reason for the sharp fall in the export front.
However, the company continued its effort to
diversify the product portfolio. In 2009, the
company started another new plant.
In the same year, Timken launched high
performance non- TRB products.
Company is in growing sectors viz.
Company's products are used for heavy trucks,
railway, steel, cement and heavy industries

Timken India has reported a substantial
rise in standalone net profit for the first
quarter ended March 2010. During the quarter,
the profit of the company rose 44.13% to Rs 11.5
crore from Rs 8 crore in the same quarter
previous year. Net sales for the quarter rose
13.15% to Rs 95.75 crore, while total income
for the quarter rose 11.27% to Rs 98 crore
compared with the prior year period. On an equity
capital base of Rs. 63.7 crore, the first
quarter EPS stood at Rs 1.81.

The company, being part of global
bearings major, considers India as a strategic
market for growth. Timken’s strong brand image,
large networks in India, more over the growing
business environment; one can consider
an investment on this stock for a decent
return in medium term perspective.CMP is Rs.125/-

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

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/-

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.