FLUIDOMAT LTD - UPDATE

I have recommended a BUY on Fluidomat Ltd @ Rs.29 ( Old posting HERE) which hits its life time high today @ Rs.58 ,an appreciation of 100 % .Still recommending to HOLD this stock.

KOVAI MEDICAL CENTER & HOSPITAL LTD - BOOK PARTIAL PROFIT

I have recommended a BUY on KOVAI MEDICAL CENTER AND HOSPITAL @ Rs.114.(Old Posting HERE ) .Today stock hits its life time high @ Rs.195 and closed around Rs.185 .Recommending to book partial profit and hold the remaining quantity as cost free.

AGRO TECH FOODS LTD - UPDATE

Agrotech Foods recommended as a BUY @ Rs.327 (Old posting HERE) touched its life time high today @ Rs.529 / -  .Still recommending to HOLD full quantity for long term.

STOCK FOR 2013

 

Be it drinking water,drip irrigation,power generation ,sewage treatment  - Water – offers lot of business opportunities ..Scarcity of quality water  is expected to become a reality around the world in another few years.Even we know the potential is very huge ,as Investors in Indian stock market we have only limited options from the  listed space. VA Tech Wabag  is an excellent unique company operating in this field.This Chennai based company is a true multinational with operations in more than 20 countries around the globe with 17 subsidiaries.Company offers complete water life cycle solutions from concept to operation phase. Company executing  EPC and O&M services for sewage treatment, drinking water treatment, effluent treatment, sludge treatment, desalination and re-use for institutional clients like municipal corporations and infrastructure sectors like power,and oil& gas companies.Now company is concentrating in large projects like the one recently completed in Chennai  .The Chennai desalination plant is one of the biggest in the country with a capacity of 100-million liter per day.This plant is going to commission in another one month or two .Wabag will operate it for another 7 years for Rs.500 Cr.Successful completion of this prestigious project will act as  a testimony for company’s ability to handle large projects and will help the company to get more projects like this in future. Company’s strong order book of Rs.4000 Cr ensures visibility for next few  years. Company’s world wide presence,proven execution skills ,good reputation,strong financials and the potential of the industry it operates makes it an excellent opportunity not only for 2013 but even beyond.CMP is Rs.539

 Link to company website HERE

 

More info from Wiki HERE

 

NITCO LTD - UPDATE

I have recommended a BUY on NITCO last year @ Rs,62/-and later suggested to book loss @Rs.40 mainly due to their increased debt in last two quarters.In a filing to stock exchanges( HERE) today the company informed that the CDR cell has approved its debt restructuring package.Hope the worst is over for the company .CMP is Rs.24/-

For old posting Click HERE

NITTA GELATINE - UPDATE

I have recommended this stock on 13 May 2012 @ Rs.87 - .Today Nitta  hits its 52 week high  @ Rs.251 /-. Still recommending to HOLD.


For old posting click HERE

WISHING A MERRY CHRISTMAS TO ALL MY FRIENDS ...

MANGALAM CEMENT --- EXCELLENT OPPORTUNITY

After a long time ,tune of RBI officials signalling a possible rate cut in another few months.On this expectation shares of many companies from Infrastructure,Real Estate and Housing sectors showing  better attention from investor fraternity.Any improvement in the business prospects of any of these sectors will  ultimately ends in an increase in the  demand for cement consumption.This week I am selecting one wonderful company from Cement  space - Mangalam Cement which is showing excellent growth even during tough times.This company belongs to BK Birla Group based in Kolkata and having a manufacturing capacity of 2 Million tonne per annum  located in Rajasthan.  Other major companies from the same business group includes Century Textiles,Jayshree Tea,Pilani Investment..etc. This is an integrated cement manufacturer  mainly supplying  to  Rajasthan, Madhya Pradesh, Haryana Delhi and western Uttar Pradesh under the brand ‘Birla Uttam Cement’

I know many of you may ask what is special with this company among many other mid sized listed cement players.Reasons are many .

1 ) First of all , compared with other regions ,there is not much capacity addition is happening in the area (except for Mangalam) where this company is selling its product .

2) Secondly  ,as we all are aware, shortage of power and availability of Limestone are the key issues of Cement Companies for the past many years.About 35 % of the production cost is going for power and fuel in Cement industry . Mangalam having enough captive power generation capacity which include 35 MW coal based (coal linkage upto 65 % requirements) and 13 MW wind based -where its total requirement for current  cement production capacity  is only 25 MW .This means .company is already backed by captive power for ongoing capacity expansion too.

3) In case of lime stone reserve ,Mangalam possessing enough limestone reserves for its existing and proposed expanded capacity for another 60 years  near to its factory itself.

4 ) Another important  factor  is the lowest debt level of this company .As on 31 March 2012 ,this company is totally debt free ! .This is very rare in case of capital intensive cement industry.For adding capacity(1.25 million ton per annum) ,this year company  will raise funds through a mix of debt and internal accruals.Even after this fund raising company’s debt equity ratio will be at a comfortable level  and remain as one of the  lowest in the industry.

5) This company following a very liberal dividend policy which distributed a dividend of 50 % in 2008 ,55 % in 2009 and 60% each in 2010 to 2012  uninterruptedly.

6) In the financial front ,company reported robust performance in recent times .In the latest quarter ,Mangalam reported  a profit of Rs.28 Cr v/s just Rs.68 lakhs in the same period last year.Its half year EPS already crossed last years full year EPS  which is Rs.20. Company is expected to report even better numbers in second half . Based on firm cement prices and expanded capacity which will be completed by September 2013 ,Mangalam is expected to report an EPS above  Rs.60 in FY 2014.

7) Company having a cash  and bank balance of of Rs.43 Cr already in its books and a book value of of over Rs.160/-.

8) Not a single share  pledged by the promoters.

Currently this stock is trading at a  dirt cheap valuation by any parameters and deserves a place in your portfolio by all means.I strongly recommending Mangalam Cement and  expecting minimum  50% appreciation in one year time frame. Stock is listed both in NSE and BSE and trading around Rs.176 /-

Link to company website HERE

Link for latest Annual Report HERE

Discl:I have vested interest in MCL 

LA-OPALA RG - UPDATE

LA-OPALA RG  is a stock repeatedly recommended from a level of Rs.60/- ( Initial posting HERE) up to Rs.190/- (Latest posting HERE) .Today stock hits its life time high @ Rs.237 /- backed by strong accumulation by promoters even at higher level.( Latest Disclosure HERE). As mentioned in the previous posting, full benefits of recent capacity expansion is expected to reflect in coming quarters. Recommending to HOLD .