dkishore
04-11-2007, 11:13 PM
Investment Calls - kukku
* Advanced Micronic Devices Ltd. (AMDL) (Rs.74.70) *was founded by entrepreneurs with extensive experience in Information Technology (IT) and Healthcare and who continue to pursue business opportunities in them and Software services and prides in providing innovative and creative solutions.
Headquartered in Bangalore, AMDL has offices in major cities. Its strength comes from its highly qualified and motivated employees who manage divisions as profit centres. With its extended network of strategic business
associates and distributors, the company is able to provide products and services to its major customers on the Indian subcontinent.
Its commitment to technology and support has been its area of strength and the reason why its customers choose AMDL as a vendor of choice. Its customer base includes major corporates, Defence establishments, software technology
parks (STPs), MNCs and Super-Specialty Hospitals.
AMDL is a subsidiary of Opto Circuits Ltd. and is a trading company focused on healthcare & IT having healthcare divisions similar to Opto Circuits, which contribute to 40% of its revenues. Sources say Opto Circuits plans to merge AMDL with itself and holds 60% on this BSE listed company. Post merger, AMDL will get Opto's manufacturing base whereas Opto will get AMDL's market & trading network. The business synergies between the two companies
would compel the management to merge, sooner or later. There is talk in the market that stock will get merged with Opto Circuits in the ratio of 1:3.
Meanwhile, AMDL has put out a very impressive set of numbers for QE 30/09/07. Net profit rose 555.56% to Rs.0.59 cr. as against Rs.0.09 cr. during QE 30/09/06. Sales rose 22.58% to Rs.14.33 cr. in QE 30/09/07 as against Rs.11.69 cr. during QE 30/09/06.
Investors can add this share on with long-term view. It is likely to become mini Opto Circuits, which we had started discussing in this column from just Rs.40/45 onwards.
*
* *A 114-year-old brand, *Amrutanjan (Rs.545.75) *was formed in 1893 and became a public limited company in 1936. It manufactures a wide range of ayurvedic and allopathic products though the prime product of the company is pain balm. It has passed a resolution to change its name from Amrutanjan (AL) to Amrutanjan Healthcare (AHL) and has reiterated its desire to achieve a revenue target of Rs.100 cr. and plans to introduce five new innovative products in the OTC Healthcare segment in FY08.
Amrutanjan is evaluating options relating to its substantial land bank in and around Chennai. It has 3 properties in Chennai and an 8 acre property in Hyderabad. Its head quarter in the heart of Chennai city is a landmark. It owns prime real estate properties worth more than Rs.400 cr. and its brand could be conservatively valued at Rs.250 cr. The management is thinking of taking advantage of the real estate boom to create value for its shareholders.
Seeing to the market worth of the company, which is above Rs.600 cr., the stock looks very attractive at the current market cap of around Rs.150 cr.
The company has reported an EPS of Rs.9.5 for Q2FY08 and may report a full year EPS of around Rs.35, which likely is to go up sharply in future as there will be no further provisions for its loss making subsidiary since it is now closed.
Investors can take exposure on reaction for a good long-term target of Rs.1000 over the next two years time.
*
Market Guidance
*
* Net profit of Mather & Platt Pumps (Rs.174.70) rose 88.06% to Rs.2.52 cr. in QE 30/09/07 as against Rs.1.34 cr. during QE 30/09/06. Sales rose 42.72%to Rs.48.98 cr. in QE 30/09/07 as against Rs.34.32 cr. during QE 30/09/06.
There are indications that the December'07 quarterly results and margins are likely to be better. Stay invested or add.
* PAT of Ramsarup Inds. (Rs.172.70), engaged in production of steel wires, for QE 30/09/07 has recorded a PAT growth of 80% at Rs.14.72 cr. against Rs.8.17 cr. achieved during QE 30/09/06. Net sales for QE 30/09/07 have
increased by nearly 22% to Rs.331.96 cr. from Rs.272.12 cr. in QE 30/09/06.
Investors should stay invested in this stock as current year EPS is likely to be in the range of Rs.38/40 which is discounted at P/E multiple of just 4.5.
* TRF (Rs.1871.75) has flared up by almost 100% in the last few weeks. Investors can book 30% profit and can think of switching to ECE Industries, where full year EPS is expected around Rs.60 plus a real estate story. The company is in a sector related with the power sector.
* Q3 results of Atlas Copco (Rs.1227.30) are encouraging. Going by the last few years, the company can report 35% sales in Q4. This year, it may be higher on account of the stronger order position and the relocation of its working will be reflected in this quarter. Stay invested for target price of Rs.3000 in the next 2/3 years.
* Revathi Equipments (Rs.848.70) is sitting on long-term gains of around Rs.10/11 cr. on its investment, which itself will account for additional EPS of around Rs.30 if profit was to be booked. In case, it demerges the investment division, it will lead to good value unlocking for investors as it has investment of 40% in an unlisted company, Potential Services, which has orders of more than Rs.140 cr. as on date. It holds 26% in Munak Catalyst which is a good profit making company. There will be good value unlocking if the management goes for an IPO in these two companies. Besides, its core business is also expected to do very well in Q3 and Q4. Stay invested.
* Pratibha Industries (Rs.240.60) results are very encouraging. For H1FY08, its EPS is around Rs.9 against Rs.5.2 in the corresponding period. Its full year EPS is expected to be more than Rs.21 and its order position is very strong. The company is also into Saw Pipes. The stock is underpriced at the current level and investors can add good quantities for good long-term growth.
* Ashapura Minechem's (Rs.368.60) net profit rose 128.57% to Rs.38.88 cr. in QE30/09/07 as against Rs.17.01 cr. during QE 30/09/06. Investors can stay invested & book part profits at Rs.400 level. We had recommended this stock
from Rs.310 level a few months back. Its stock price is Rs.366 after 1:1 bonus issue.
* Ashiana Housing (Rs.493.20) has declared bonus in ratio of five shares for every two shares held and has also declared encouraging 2nd half results. It is expected that the company may report a full year EPS of around Rs.75/80.
Investors with long-term view can stay invested. Book part profits at Rs.530/550 levels and switch to Amrutanjan at Rs.460 or ECE Industries at Rs.770 level.
* Hercules Hoists (Rs.7117.65) was given buy call at Rs.470 in December 2004 and again in January 2005 onwards. After that, there was 1:1 bonus issue. Stock price is now at Rs.7100 after touching Rs.8200 providing superb returns to investors. But investors can book part of profits and switch to ECE Industries and Atlas Copco.
* Blue Star Industries (Rs.383.25) has come out with encouraging results. Investors may hold on to it. The stock was advised in this column before split at Rs.650 level.
* Results of Vijay Shanthi Builders (Rs.133), PAE Ltd. (Rs.179), Madhucon Projects (Rs.353), Jayaswal Neco (Rs.41) are good. Stay invested.
* Encouraging feedbacks are pouring in for Tilaknagar Industries (Rs.202), Shiv Vani Oil (Rs.383) and Deep Inds. (Rs.179). Investors can take small exposures.
* Jyoti Ltd. (Rs.147) - There is talk of a placement at Rs.170 level. We had already discussed its details a few weeks back. Hold on to the scrip.
* Financial sector stocks are likely to remain in action as per market reports. investors can stay invested in stocks like India Infoline (Rs.1055), Indiabulls (Rs.697.85), Fortis Financials (Rs.98.20), ILFS (Rs.298), First Leasing (Rs.48.25) etc.
* Aplab's (Rs.94) Q2 profit is Rs.2.43 cr. against Rs.1.03 cr. on higher sales of Rs.34.62 cr. against Rs.26.47 cr. It is in line with our expectations as we had indicated sales of
Rs.34/35 cr. few weeks back when it was advised at Rs.70/71 level. Those who have averaged at lower levels can book part profits at Rs.100 level.
* Advanced Micronic Devices Ltd. (AMDL) (Rs.74.70) *was founded by entrepreneurs with extensive experience in Information Technology (IT) and Healthcare and who continue to pursue business opportunities in them and Software services and prides in providing innovative and creative solutions.
Headquartered in Bangalore, AMDL has offices in major cities. Its strength comes from its highly qualified and motivated employees who manage divisions as profit centres. With its extended network of strategic business
associates and distributors, the company is able to provide products and services to its major customers on the Indian subcontinent.
Its commitment to technology and support has been its area of strength and the reason why its customers choose AMDL as a vendor of choice. Its customer base includes major corporates, Defence establishments, software technology
parks (STPs), MNCs and Super-Specialty Hospitals.
AMDL is a subsidiary of Opto Circuits Ltd. and is a trading company focused on healthcare & IT having healthcare divisions similar to Opto Circuits, which contribute to 40% of its revenues. Sources say Opto Circuits plans to merge AMDL with itself and holds 60% on this BSE listed company. Post merger, AMDL will get Opto's manufacturing base whereas Opto will get AMDL's market & trading network. The business synergies between the two companies
would compel the management to merge, sooner or later. There is talk in the market that stock will get merged with Opto Circuits in the ratio of 1:3.
Meanwhile, AMDL has put out a very impressive set of numbers for QE 30/09/07. Net profit rose 555.56% to Rs.0.59 cr. as against Rs.0.09 cr. during QE 30/09/06. Sales rose 22.58% to Rs.14.33 cr. in QE 30/09/07 as against Rs.11.69 cr. during QE 30/09/06.
Investors can add this share on with long-term view. It is likely to become mini Opto Circuits, which we had started discussing in this column from just Rs.40/45 onwards.
*
* *A 114-year-old brand, *Amrutanjan (Rs.545.75) *was formed in 1893 and became a public limited company in 1936. It manufactures a wide range of ayurvedic and allopathic products though the prime product of the company is pain balm. It has passed a resolution to change its name from Amrutanjan (AL) to Amrutanjan Healthcare (AHL) and has reiterated its desire to achieve a revenue target of Rs.100 cr. and plans to introduce five new innovative products in the OTC Healthcare segment in FY08.
Amrutanjan is evaluating options relating to its substantial land bank in and around Chennai. It has 3 properties in Chennai and an 8 acre property in Hyderabad. Its head quarter in the heart of Chennai city is a landmark. It owns prime real estate properties worth more than Rs.400 cr. and its brand could be conservatively valued at Rs.250 cr. The management is thinking of taking advantage of the real estate boom to create value for its shareholders.
Seeing to the market worth of the company, which is above Rs.600 cr., the stock looks very attractive at the current market cap of around Rs.150 cr.
The company has reported an EPS of Rs.9.5 for Q2FY08 and may report a full year EPS of around Rs.35, which likely is to go up sharply in future as there will be no further provisions for its loss making subsidiary since it is now closed.
Investors can take exposure on reaction for a good long-term target of Rs.1000 over the next two years time.
*
Market Guidance
*
* Net profit of Mather & Platt Pumps (Rs.174.70) rose 88.06% to Rs.2.52 cr. in QE 30/09/07 as against Rs.1.34 cr. during QE 30/09/06. Sales rose 42.72%to Rs.48.98 cr. in QE 30/09/07 as against Rs.34.32 cr. during QE 30/09/06.
There are indications that the December'07 quarterly results and margins are likely to be better. Stay invested or add.
* PAT of Ramsarup Inds. (Rs.172.70), engaged in production of steel wires, for QE 30/09/07 has recorded a PAT growth of 80% at Rs.14.72 cr. against Rs.8.17 cr. achieved during QE 30/09/06. Net sales for QE 30/09/07 have
increased by nearly 22% to Rs.331.96 cr. from Rs.272.12 cr. in QE 30/09/06.
Investors should stay invested in this stock as current year EPS is likely to be in the range of Rs.38/40 which is discounted at P/E multiple of just 4.5.
* TRF (Rs.1871.75) has flared up by almost 100% in the last few weeks. Investors can book 30% profit and can think of switching to ECE Industries, where full year EPS is expected around Rs.60 plus a real estate story. The company is in a sector related with the power sector.
* Q3 results of Atlas Copco (Rs.1227.30) are encouraging. Going by the last few years, the company can report 35% sales in Q4. This year, it may be higher on account of the stronger order position and the relocation of its working will be reflected in this quarter. Stay invested for target price of Rs.3000 in the next 2/3 years.
* Revathi Equipments (Rs.848.70) is sitting on long-term gains of around Rs.10/11 cr. on its investment, which itself will account for additional EPS of around Rs.30 if profit was to be booked. In case, it demerges the investment division, it will lead to good value unlocking for investors as it has investment of 40% in an unlisted company, Potential Services, which has orders of more than Rs.140 cr. as on date. It holds 26% in Munak Catalyst which is a good profit making company. There will be good value unlocking if the management goes for an IPO in these two companies. Besides, its core business is also expected to do very well in Q3 and Q4. Stay invested.
* Pratibha Industries (Rs.240.60) results are very encouraging. For H1FY08, its EPS is around Rs.9 against Rs.5.2 in the corresponding period. Its full year EPS is expected to be more than Rs.21 and its order position is very strong. The company is also into Saw Pipes. The stock is underpriced at the current level and investors can add good quantities for good long-term growth.
* Ashapura Minechem's (Rs.368.60) net profit rose 128.57% to Rs.38.88 cr. in QE30/09/07 as against Rs.17.01 cr. during QE 30/09/06. Investors can stay invested & book part profits at Rs.400 level. We had recommended this stock
from Rs.310 level a few months back. Its stock price is Rs.366 after 1:1 bonus issue.
* Ashiana Housing (Rs.493.20) has declared bonus in ratio of five shares for every two shares held and has also declared encouraging 2nd half results. It is expected that the company may report a full year EPS of around Rs.75/80.
Investors with long-term view can stay invested. Book part profits at Rs.530/550 levels and switch to Amrutanjan at Rs.460 or ECE Industries at Rs.770 level.
* Hercules Hoists (Rs.7117.65) was given buy call at Rs.470 in December 2004 and again in January 2005 onwards. After that, there was 1:1 bonus issue. Stock price is now at Rs.7100 after touching Rs.8200 providing superb returns to investors. But investors can book part of profits and switch to ECE Industries and Atlas Copco.
* Blue Star Industries (Rs.383.25) has come out with encouraging results. Investors may hold on to it. The stock was advised in this column before split at Rs.650 level.
* Results of Vijay Shanthi Builders (Rs.133), PAE Ltd. (Rs.179), Madhucon Projects (Rs.353), Jayaswal Neco (Rs.41) are good. Stay invested.
* Encouraging feedbacks are pouring in for Tilaknagar Industries (Rs.202), Shiv Vani Oil (Rs.383) and Deep Inds. (Rs.179). Investors can take small exposures.
* Jyoti Ltd. (Rs.147) - There is talk of a placement at Rs.170 level. We had already discussed its details a few weeks back. Hold on to the scrip.
* Financial sector stocks are likely to remain in action as per market reports. investors can stay invested in stocks like India Infoline (Rs.1055), Indiabulls (Rs.697.85), Fortis Financials (Rs.98.20), ILFS (Rs.298), First Leasing (Rs.48.25) etc.
* Aplab's (Rs.94) Q2 profit is Rs.2.43 cr. against Rs.1.03 cr. on higher sales of Rs.34.62 cr. against Rs.26.47 cr. It is in line with our expectations as we had indicated sales of
Rs.34/35 cr. few weeks back when it was advised at Rs.70/71 level. Those who have averaged at lower levels can book part profits at Rs.100 level.