indiabull
10-11-2007, 07:31 AM
Investment Call
Pratibha Industries (Rs.257.10)
1) Investors can take investment position at current levels as the company has orders in hand of around Rs.2300 cr. to be completed over the next 36 months.
2) Its saw pipes unit has a capacity of 92000 TPA. It has already started and is in the process of obtaining API 5L X80 certification from the American Petroleum Institute (API) which makes the pipes manufactured by it eligible for transportation of Oil & Gas. Its quality system manual is already approved by API and the certification is expected before the end of this quarter. The factory already has firm orders for supply of 208 km of pipes.
3) 65% of the orders are from the water supply related sector.
4) 2007-08 EPS is likely to be around Rs.20/22 level on sales of around Rs.450 cr. EPS for the next year is projected around Rs.30/32 level.
5) The stock has reacted from high of Rs.393 of May 2006 and is still trading at Rs.240 level. So compared to Lanco Inds., Unity Infra, JMC Projects, it is the cheapest.
Investors can add on dips for target price of Rs.500 in the next one year
Market Guidance
PG Foils (Rs.77) *has reported encouraging H1FY08 results. Sales are around Rs.76 cr. against Rs.47 cr. last year while net profit is at Rs.3.44cr. against Rs.2.97 cr. despite higher tax provisions of Rs.124 lakh against Rs.28 lakh
in the previous corresponding period. Full year EPS is likely to be around Rs.10/12 as there is possibility of redemption income of key man policy to start coming from H2FY08.
PG has traditionally been an aluminum foil packaging company. It is merging a group company that has been into aluminum conductor cables. The fusion of the two businesses i.e. aluminum conductor cables with aluminum foils
packaging, will unleash value in terms of turnover and increased margins.
In the long run, this is another Ess Dee Aluminium in the making.
In the Q2FY08 results of *Madhucon Projects (Rs.341.15)*, there is a sharp improvement in OPM. Investors should stay invested for target price of Rs.450 in the next one year.
Jayaswal Neco (Rs.41.95) *Q2 results are encouraging and the stock has already flared up by more than 100% from the lower levels. Book partial profits.
GSFC (Rs.271.20) *has co-promoted concerns like Gujarat Narmada Valley Corporation (GNFC), Gujarat Industrial Power Corporation (GIPCL), Gujarat Alkalies & Chemicals (GACL), Gujarat State Petroleum Corporation (GSPC),
GSPC Gas Corporation (GGC), Gujarat Chemical Port Terminal (GCPT) and Tunisian Indian Fertilisers.
As of date GSFC owns 3.07 cr. shares of GNFC worth Rs.486 cr., 1.86 cr. shares of GIPCL and 10.34 lakh shares of GACL. These along with its holdings in Gruh Finance, IDBI and Mangalore Chemicals are worth Rs.800 cr. which is
around Rs.100 per share of GSFC. The stock has given good breakout. Stay invested.
We advise to book 10-15% profit in Walchandnagar Industries at Rs.12,000 level and lock it partly in ECE Industries & Pratibha Industries for good long-term growth.
Nocil (Rs.43.65) *was advised for buying around Rs.22 level few weeks back. Book partial profits *around 50 plus levels *and switch 25% of gains into PG Foils.
Hind Constructions (Rs.188.60) *is tipped for a target of Rs.300 level. Investors may hold on to the same.
D&H Welding (Rs.27.95) *H1FY08 results are flat and margins are under pressure due increase in raw material costs. There is competition from imports. Exit on pull backs.
Punjab Woolcombers (Rs.21) *has already paid off the dues of IFCI, UTI, LIC, GIC, HUDCO, PNB, PNB (Statutory), Indian Bank amounting to Rs.2953.49lakh and these agencies have waived off an amount of Rs.15,768.55 lakh and Letter of Intent has been received from the Government of Punjab approving the company's Mega Industrial Park Project. Keeping in view the future plans of the company and the fact that it would be earning substantial revenue from infrastructure projects, it has been decided that the name of the company be changed to Punjab Infrastructure Ltd. The stock was recommended long back in this column. Investors holding it should stay invested.
TIL (Rs.439.20) *and *Guj. Apollo Equipments (Rs.278.55) *is expected to do well in the long run. Stay invested.
KCP Ltd. *has moved up to a new high of Rs.532. Hold on to the same for the next target of Rs.750 in the next 6 months.
Yuken Ltd. (Rs.287.70)*, investors can accumulate this stock around Rs.285/290 level for the next target price of Rs.450 over the next one year.
Strong reports are pouring in about future growth of *Shiv Vani Oil ( Rs.380.75)*. Investors can take a small exposure in this stock for good growth in the next few months. Closing above Rs.410 would give a good breakout.
Revathi Equipments' (Rs.834.95) *long term story is in tact. Stay invested or add on reactions around Rs.800 level. Stock is very likely to touch Rs.1400 in the next 6 months.
Keep a watch on the *Patel Onboard *stock.
Stocks for Muhurat buying
Defensive Buying – (1) Yuken India (Rs.290); (2) Revathi Equipments (Rs.845); (3) Shanthi Gears (Rs.78); (4) ECE Industries (Rs.750); (5) First Leasing ( Rs.47); (6) Ion Exchange (Rs.196); (6) Gujarat Apollo Equipments (Rs.281);
(7) Pratibha Industries (Rs.257).
Short-term momentum buying with stop loss – Shiv Vani Oil (Rs.380.75), Tilaknagar Industries (Rs.191.80), P G Foils (Rs.78.30), Nile Ltd. (Rs.211),Asian Oilfield Services (Rs.163), Indiabulls Real Estate (Rs.660).
Nile Ltd. (Rs.211) *- Glass Lining, Lead and Wind Energy are the three main divisions of the company. Glass Lined Equipment is primarily used in pharmaceutical, specialty chemicals, agrochemicals and other similar industries. Lead and Lead Alloys are mainly supplied to manufacturers of Lead Acid Batteries, Plastic stabilizers, and metal oxides. Wind energy generated is sold to Andhra Pradesh Power Corporation.
The company's outlook for the next year is positive and it expects to consolidate its business and grow in line with the industry's growth rates. Its Glass Lining division continues to have a comfortable order book position despite the reduced growth in demand for Glass lined equipments. The company has also received substantial orders for pressure vessels.
The market demand for lead and lead alloys continues to be promising this year also. The company has been able to establish itself as a quality supplier of lead and lead alloys and has entered into a long term supply arrangements with a leading battery company. FY08 should also result in a substantial growth in volume of sales for Lead and Lead Alloys.
The company has already reported encouraging results for H1FY08. Sales are up at Rs.60 cr. against Rs.35 cr. while net profit is up from Rs.1.19 cr. to Rs.5.05 cr. on its small capital base of Rs.3 cr. giving it an attractive EPS of Rs.16.82. Full year EPS is likely to be around Rs.30/35 level. Investors can add this stock for target price of Rs.400 in the next 6
months.
Garware Polyester (Rs.68.05) *Q2FY08 results are encouraging. The company has liability to pay Rs.100 cr. before 15th December 2007. If the company is able to sell its real estate, it will be good turnaround for the company.But there are indications that management is asking for a much higher price compared to the prevailing market rate. Stay invested.
Indian Hume Pipes (Rs.1384.05) - The Central and State Governments are laying more emphasis on infrastructure development in the country and water supply has always been a very important infrastructure activity for any
township. For urban & rural water supply projects the main customers have always been Public Health Engineering Department of various State Government, 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, of which some are closed but have huge real estate worth which is a big trigger for the company. Although the stock has already flared from the levels when it was first recommended. Investors can
continue to hold for better targets.
Pratibha Industries (Rs.257.10)
1) Investors can take investment position at current levels as the company has orders in hand of around Rs.2300 cr. to be completed over the next 36 months.
2) Its saw pipes unit has a capacity of 92000 TPA. It has already started and is in the process of obtaining API 5L X80 certification from the American Petroleum Institute (API) which makes the pipes manufactured by it eligible for transportation of Oil & Gas. Its quality system manual is already approved by API and the certification is expected before the end of this quarter. The factory already has firm orders for supply of 208 km of pipes.
3) 65% of the orders are from the water supply related sector.
4) 2007-08 EPS is likely to be around Rs.20/22 level on sales of around Rs.450 cr. EPS for the next year is projected around Rs.30/32 level.
5) The stock has reacted from high of Rs.393 of May 2006 and is still trading at Rs.240 level. So compared to Lanco Inds., Unity Infra, JMC Projects, it is the cheapest.
Investors can add on dips for target price of Rs.500 in the next one year
Market Guidance
PG Foils (Rs.77) *has reported encouraging H1FY08 results. Sales are around Rs.76 cr. against Rs.47 cr. last year while net profit is at Rs.3.44cr. against Rs.2.97 cr. despite higher tax provisions of Rs.124 lakh against Rs.28 lakh
in the previous corresponding period. Full year EPS is likely to be around Rs.10/12 as there is possibility of redemption income of key man policy to start coming from H2FY08.
PG has traditionally been an aluminum foil packaging company. It is merging a group company that has been into aluminum conductor cables. The fusion of the two businesses i.e. aluminum conductor cables with aluminum foils
packaging, will unleash value in terms of turnover and increased margins.
In the long run, this is another Ess Dee Aluminium in the making.
In the Q2FY08 results of *Madhucon Projects (Rs.341.15)*, there is a sharp improvement in OPM. Investors should stay invested for target price of Rs.450 in the next one year.
Jayaswal Neco (Rs.41.95) *Q2 results are encouraging and the stock has already flared up by more than 100% from the lower levels. Book partial profits.
GSFC (Rs.271.20) *has co-promoted concerns like Gujarat Narmada Valley Corporation (GNFC), Gujarat Industrial Power Corporation (GIPCL), Gujarat Alkalies & Chemicals (GACL), Gujarat State Petroleum Corporation (GSPC),
GSPC Gas Corporation (GGC), Gujarat Chemical Port Terminal (GCPT) and Tunisian Indian Fertilisers.
As of date GSFC owns 3.07 cr. shares of GNFC worth Rs.486 cr., 1.86 cr. shares of GIPCL and 10.34 lakh shares of GACL. These along with its holdings in Gruh Finance, IDBI and Mangalore Chemicals are worth Rs.800 cr. which is
around Rs.100 per share of GSFC. The stock has given good breakout. Stay invested.
We advise to book 10-15% profit in Walchandnagar Industries at Rs.12,000 level and lock it partly in ECE Industries & Pratibha Industries for good long-term growth.
Nocil (Rs.43.65) *was advised for buying around Rs.22 level few weeks back. Book partial profits *around 50 plus levels *and switch 25% of gains into PG Foils.
Hind Constructions (Rs.188.60) *is tipped for a target of Rs.300 level. Investors may hold on to the same.
D&H Welding (Rs.27.95) *H1FY08 results are flat and margins are under pressure due increase in raw material costs. There is competition from imports. Exit on pull backs.
Punjab Woolcombers (Rs.21) *has already paid off the dues of IFCI, UTI, LIC, GIC, HUDCO, PNB, PNB (Statutory), Indian Bank amounting to Rs.2953.49lakh and these agencies have waived off an amount of Rs.15,768.55 lakh and Letter of Intent has been received from the Government of Punjab approving the company's Mega Industrial Park Project. Keeping in view the future plans of the company and the fact that it would be earning substantial revenue from infrastructure projects, it has been decided that the name of the company be changed to Punjab Infrastructure Ltd. The stock was recommended long back in this column. Investors holding it should stay invested.
TIL (Rs.439.20) *and *Guj. Apollo Equipments (Rs.278.55) *is expected to do well in the long run. Stay invested.
KCP Ltd. *has moved up to a new high of Rs.532. Hold on to the same for the next target of Rs.750 in the next 6 months.
Yuken Ltd. (Rs.287.70)*, investors can accumulate this stock around Rs.285/290 level for the next target price of Rs.450 over the next one year.
Strong reports are pouring in about future growth of *Shiv Vani Oil ( Rs.380.75)*. Investors can take a small exposure in this stock for good growth in the next few months. Closing above Rs.410 would give a good breakout.
Revathi Equipments' (Rs.834.95) *long term story is in tact. Stay invested or add on reactions around Rs.800 level. Stock is very likely to touch Rs.1400 in the next 6 months.
Keep a watch on the *Patel Onboard *stock.
Stocks for Muhurat buying
Defensive Buying – (1) Yuken India (Rs.290); (2) Revathi Equipments (Rs.845); (3) Shanthi Gears (Rs.78); (4) ECE Industries (Rs.750); (5) First Leasing ( Rs.47); (6) Ion Exchange (Rs.196); (6) Gujarat Apollo Equipments (Rs.281);
(7) Pratibha Industries (Rs.257).
Short-term momentum buying with stop loss – Shiv Vani Oil (Rs.380.75), Tilaknagar Industries (Rs.191.80), P G Foils (Rs.78.30), Nile Ltd. (Rs.211),Asian Oilfield Services (Rs.163), Indiabulls Real Estate (Rs.660).
Nile Ltd. (Rs.211) *- Glass Lining, Lead and Wind Energy are the three main divisions of the company. Glass Lined Equipment is primarily used in pharmaceutical, specialty chemicals, agrochemicals and other similar industries. Lead and Lead Alloys are mainly supplied to manufacturers of Lead Acid Batteries, Plastic stabilizers, and metal oxides. Wind energy generated is sold to Andhra Pradesh Power Corporation.
The company's outlook for the next year is positive and it expects to consolidate its business and grow in line with the industry's growth rates. Its Glass Lining division continues to have a comfortable order book position despite the reduced growth in demand for Glass lined equipments. The company has also received substantial orders for pressure vessels.
The market demand for lead and lead alloys continues to be promising this year also. The company has been able to establish itself as a quality supplier of lead and lead alloys and has entered into a long term supply arrangements with a leading battery company. FY08 should also result in a substantial growth in volume of sales for Lead and Lead Alloys.
The company has already reported encouraging results for H1FY08. Sales are up at Rs.60 cr. against Rs.35 cr. while net profit is up from Rs.1.19 cr. to Rs.5.05 cr. on its small capital base of Rs.3 cr. giving it an attractive EPS of Rs.16.82. Full year EPS is likely to be around Rs.30/35 level. Investors can add this stock for target price of Rs.400 in the next 6
months.
Garware Polyester (Rs.68.05) *Q2FY08 results are encouraging. The company has liability to pay Rs.100 cr. before 15th December 2007. If the company is able to sell its real estate, it will be good turnaround for the company.But there are indications that management is asking for a much higher price compared to the prevailing market rate. Stay invested.
Indian Hume Pipes (Rs.1384.05) - The Central and State Governments are laying more emphasis on infrastructure development in the country and water supply has always been a very important infrastructure activity for any
township. For urban & rural water supply projects the main customers have always been Public Health Engineering Department of various State Government, 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, of which some are closed but have huge real estate worth which is a big trigger for the company. Although the stock has already flared from the levels when it was first recommended. Investors can
continue to hold for better targets.