dkishore
28-01-2008, 07:34 AM
Note: (1) Most of the stocks discussed in this group are good on
fundamentals. Investors are advised to stay invested in all such stocks or
even add the reactions for good long-term growth.
(2) Market has fallen sharply due to the following reasons:
a) On FII selling for covering up sub prime losses.
b) Big IPOs, which sucked liquidity out of the market.
c) Traders & punters with high leveraged positions could not pay margins in
time and most of brokers squared off their positions. Since the leveraged
positions were very high, the fall too was equally sharp and these traders
have suffered huge losses. It is understood that most gains that they had
made in the last few years has been wiped out in no time.
The market is likely to remain volatile & may see better times if there is
good reduction in interest rates and after the refund of the Reliance Power
oversubscription amount.
The market is likely to witness a better trend from the 2nd week February
2008.
* In May 2006, the Sensex came down to 8900 from a high of 14500 and the Dow
was 12000. Now we are at 18000 from a high of 21000 but the Dow is still at
12000. This shows that we have outperformed the Dow Jones. It is very likely
that we may outperform it in future too.
* Weaker hands are out on this sharp reaction and stocks are to go into
stronger hands. Stay invested in all good stocks.
* GTL Ltd.'s (Rs.268.05) net profit has flared up by 242.34% to Rs.33.72 cr.
in Q3FY08 as against Rs.9.85 cr. during Q3FY07. Sales rose 67.05% to
Rs.362.23 cr. in Q3FY08 from against Rs.216.84 cr. during Q3FY07. Profit on
sale of business of Rs.142 million is also included in QE 31/12/07.
Investors are advised to stay invested in this stock for good targets over
the next one year.
* PNB Gilts (Rs.34.75) is a safe bet on reaction at Rs.32.85 level as
interest rates are expected to soften. The company has reported encouraging
results for the first three quarters of FY08. Net profit rose 67.88% to
Rs.19.91 cr. for Q3FY08 as against Rs.11.86 cr. in Q3FY07. Sales rose 62.35%to
Rs.57.13 cr. in Q3FY08 from Rs.35.19 cr. in Q3FY07.
EPS for the first 9 months was Rs.3.8 and is likely to be around Rs.5.5 for
full FY08. The company paid a good dividend of 25% for FY04, which was
almost 33% of the average net profit. Going by this trend, it may declare
around 18%-20% for the current year, which is a very attractive dividend
yield. Investors can keep accumulating this stock for good long term growth.
There is also a possibility of merger with PNB Bank.
The stock has reacted from a high of Rs.54 to the current level where the
downside seems to be very limited.
* Indian Hume Pipes (Rs.879.10) - The Central and State governments are
emphasising on infrastructure development and water supply is a very
important infrastructure activity for any populous location. For urban &
rural water supply projects the Public Health Engineering departments have
always been the main customers of various State Governments followed by
Corporations, Municipalities, Water & Sewerage Boards, etc. There is huge
potential for water supply, sewage disposal, head works, treatment plants
etc. Investors should stay invested. The company has 30 manufacturing units
some of which are closed but have huge real estate worth, which is a good
trigger for the company.
The stock has reacted from its high of Rs.1489 to the current level of
Rs.900 and looks attractive for long-term investment.
* Patel Integrated Logistics (Rs.74.65) has set a goal to be among the top 3
logistics providers in India. In line with its strategy to capitalise on
long-term growth, the company has embarked on a major growth plan to expand
its fleet, add warehouses, upgrade technology and improve on customer
service. It has transformed itself from a mere trucking & transportation
company to becoming an 'Express Delivery' logistics Company by carving a
niche for itself in the Express Delivery Business under the Brand name
'Patel Retail'. Investors can add this stock for a target price of
Rs.175over the next 18 months. 13
* Sterling Tools (Rs.80.60) has reported an encouraging Q3FY08 results.
Sales moved up from Rs.37.4 cr. to Rs.41.6 cr. while net profit improved to
Rs.3 cr. from against Rs.2.1 cr. Operating profit margin improved in this
quarter from 13.84% to Rs.17.2, which is a very encouraging. Investors can
continue to hold this stock even add on reactions.
* MTNL (Rs.133.05) - On reaction, this stock is available at almost its
52-week low. A strong book value of Rs.184, good dividend of 40% and an
attractive P/E multiple of around 12 compared to the industry average P/E
ratio of 37, makes it an attractive buy at Rs.125 level.
. Add it on reaction for good long-term growth.
* Madhucon Projects (Rs.722.90) - New developments are said to be taking
place. Stay invested for better targets.
* Gujarat Apollo Industries (Rs.259.75) is another company that is into
machinery & equipments for road construction and mining where the outlook is
said to be very encouraging. Smart money is said to be accumulating this
stock. The stock has reacted from high of Rs.400 to Rs.235 now.
* The recent rights issue of Hind Oil Exploration (Rs.112.60) was at
Rs.125whereas the stock is quoting lower which makes it is an
attractive buy.
* Pratibha Industries (Rs.382.65) may see a good upside over the long run.
Stay invested.
* Yuken (India) Ltd. (Rs.235) Q3 dispatches are less and it is expected that
Q4 shall be much better. If the stock if reacts to Rs.225/240 level, it is a
good long-term buy. In this sector, investors should not compare quarter to
quarter results.
* IFCI (Rs.62), Oswal Chemicals (Rs.42), Ion Exchange (Rs.234), Khoday India
(Rs.212), Shreeram Mills (Rs.275), Sharyans Resources (Rs.304), Nile Ltd. (
Rs.220) are the other stocks attractively placed after the sharp reactions.
Investors can add or keep holding them. 14
fundamentals. Investors are advised to stay invested in all such stocks or
even add the reactions for good long-term growth.
(2) Market has fallen sharply due to the following reasons:
a) On FII selling for covering up sub prime losses.
b) Big IPOs, which sucked liquidity out of the market.
c) Traders & punters with high leveraged positions could not pay margins in
time and most of brokers squared off their positions. Since the leveraged
positions were very high, the fall too was equally sharp and these traders
have suffered huge losses. It is understood that most gains that they had
made in the last few years has been wiped out in no time.
The market is likely to remain volatile & may see better times if there is
good reduction in interest rates and after the refund of the Reliance Power
oversubscription amount.
The market is likely to witness a better trend from the 2nd week February
2008.
* In May 2006, the Sensex came down to 8900 from a high of 14500 and the Dow
was 12000. Now we are at 18000 from a high of 21000 but the Dow is still at
12000. This shows that we have outperformed the Dow Jones. It is very likely
that we may outperform it in future too.
* Weaker hands are out on this sharp reaction and stocks are to go into
stronger hands. Stay invested in all good stocks.
* GTL Ltd.'s (Rs.268.05) net profit has flared up by 242.34% to Rs.33.72 cr.
in Q3FY08 as against Rs.9.85 cr. during Q3FY07. Sales rose 67.05% to
Rs.362.23 cr. in Q3FY08 from against Rs.216.84 cr. during Q3FY07. Profit on
sale of business of Rs.142 million is also included in QE 31/12/07.
Investors are advised to stay invested in this stock for good targets over
the next one year.
* PNB Gilts (Rs.34.75) is a safe bet on reaction at Rs.32.85 level as
interest rates are expected to soften. The company has reported encouraging
results for the first three quarters of FY08. Net profit rose 67.88% to
Rs.19.91 cr. for Q3FY08 as against Rs.11.86 cr. in Q3FY07. Sales rose 62.35%to
Rs.57.13 cr. in Q3FY08 from Rs.35.19 cr. in Q3FY07.
EPS for the first 9 months was Rs.3.8 and is likely to be around Rs.5.5 for
full FY08. The company paid a good dividend of 25% for FY04, which was
almost 33% of the average net profit. Going by this trend, it may declare
around 18%-20% for the current year, which is a very attractive dividend
yield. Investors can keep accumulating this stock for good long term growth.
There is also a possibility of merger with PNB Bank.
The stock has reacted from a high of Rs.54 to the current level where the
downside seems to be very limited.
* Indian Hume Pipes (Rs.879.10) - The Central and State governments are
emphasising on infrastructure development and water supply is a very
important infrastructure activity for any populous location. For urban &
rural water supply projects the Public Health Engineering departments have
always been the main customers of various State Governments followed by
Corporations, Municipalities, Water & Sewerage Boards, etc. There is huge
potential for water supply, sewage disposal, head works, treatment plants
etc. Investors should stay invested. The company has 30 manufacturing units
some of which are closed but have huge real estate worth, which is a good
trigger for the company.
The stock has reacted from its high of Rs.1489 to the current level of
Rs.900 and looks attractive for long-term investment.
* Patel Integrated Logistics (Rs.74.65) has set a goal to be among the top 3
logistics providers in India. In line with its strategy to capitalise on
long-term growth, the company has embarked on a major growth plan to expand
its fleet, add warehouses, upgrade technology and improve on customer
service. It has transformed itself from a mere trucking & transportation
company to becoming an 'Express Delivery' logistics Company by carving a
niche for itself in the Express Delivery Business under the Brand name
'Patel Retail'. Investors can add this stock for a target price of
Rs.175over the next 18 months. 13
* Sterling Tools (Rs.80.60) has reported an encouraging Q3FY08 results.
Sales moved up from Rs.37.4 cr. to Rs.41.6 cr. while net profit improved to
Rs.3 cr. from against Rs.2.1 cr. Operating profit margin improved in this
quarter from 13.84% to Rs.17.2, which is a very encouraging. Investors can
continue to hold this stock even add on reactions.
* MTNL (Rs.133.05) - On reaction, this stock is available at almost its
52-week low. A strong book value of Rs.184, good dividend of 40% and an
attractive P/E multiple of around 12 compared to the industry average P/E
ratio of 37, makes it an attractive buy at Rs.125 level.
. Add it on reaction for good long-term growth.
* Madhucon Projects (Rs.722.90) - New developments are said to be taking
place. Stay invested for better targets.
* Gujarat Apollo Industries (Rs.259.75) is another company that is into
machinery & equipments for road construction and mining where the outlook is
said to be very encouraging. Smart money is said to be accumulating this
stock. The stock has reacted from high of Rs.400 to Rs.235 now.
* The recent rights issue of Hind Oil Exploration (Rs.112.60) was at
Rs.125whereas the stock is quoting lower which makes it is an
attractive buy.
* Pratibha Industries (Rs.382.65) may see a good upside over the long run.
Stay invested.
* Yuken (India) Ltd. (Rs.235) Q3 dispatches are less and it is expected that
Q4 shall be much better. If the stock if reacts to Rs.225/240 level, it is a
good long-term buy. In this sector, investors should not compare quarter to
quarter results.
* IFCI (Rs.62), Oswal Chemicals (Rs.42), Ion Exchange (Rs.234), Khoday India
(Rs.212), Shreeram Mills (Rs.275), Sharyans Resources (Rs.304), Nile Ltd. (
Rs.220) are the other stocks attractively placed after the sharp reactions.
Investors can add or keep holding them. 14