dkishore
03-12-2007, 07:06 AM
Investment Calls
* Paramount Communications (Rs.30.80) *increased its business by 267%
In Power Cables during FY07 and is confident of continuing its growth
Momentum in the power cables business in view of its strong order book and its ongoing expansion in this segment.
The second phase of expansion was planned to set up additional capacity
of30,000 km per annum of LT Power Cables and 2,000 km per annum of HT
Power cables at the Khushkhera plant of the company. The implementation of
This expansion project is progressing well and was expected to be completed
By September 2007 as per last director's report. By adding these
capacities,the tentative turnover after the second phase of expansion will be around Rs.700 cr.
During Q2FY08, the company acquired the business of AEI Cables, UK, in
An all cash deal through its 100% wholly owned subsidiary. The
Consolidated results shall be published at the end of the financial year.
The company has acquired 25 acres Industrial Land from RIICO in
Khushkhera Industrial Area, Rajasthan for its third phase expansion.
The Indian economy is booming above 9% growth rate which will lead to
The overall development in the country. The cable industry in India is
witnessing a good demand due to heavy investment in infrastructure,
railways, IT sector, power sector and new industrial projects. This
trend is expected to continue in the years to come.
The company likely to benefit from timely expansions may report Encouraging results in future. There is good consolidation in the stock and it is likely to go up once it closes above Rs.34 and can touch target of Rs.60 in The next 6 months. Earlier, we had recommended it at Rs.25 onwards for Rs.10paid up values.
*
* Patel Integrated Logistics (PIL) (Rs.64) *is the merged company of Patel
Roadways and Patel on Board Couriers (POBC). PIL provides unified solutions
through door- to-door express cargo service, surface transport and air and
sea transportation besides offering services in warehousing and secondary
distribution. Its commitment to quality, uncanny ability to innovate and its
fierce determination to protect the business interests of its customers
gives it the cutting edge. The company is branched into 8 products to
attain leadership position in its segment.
It has entered the business of Express Cargo Deliveries only 6–9 months ago
and has already, in a short period, clocked a turnover of nearly Rs.15 cr.
annually and expects to take to nearly Rs.100 cr. in 3 years.
The company has announced the acquisition of 24 Line Haul Trucks as a part
of its strategy to grow its Patel Retail (Express Operations & Time Definite
Services). The new trucks acquired include 4 X 6.00 Tonners, 12 X 9.00Tonners and 8 X 16.00 Tonners trucks.
There are indications of new developments in the company. There is talk of
inviting strategic investors. With its vast infrastructure, state-of-the-art
technology, professional work force and variety of products, the company is
well-poised to take advantage of such positives.
The stock is catching the attention of market players. Stay invested
For better times ahead.
First Leasing (Rs.49) *distinguished itself by emphasizing Financial
Assistance to Green Energy in the form of Windmill Leasing, recognizing
That building a foundation of non toxic and renewable energy, is critically
important.
The company also placed emphasis on financing Software given its importance
to the economic persona of India and as a business opportunity, since banks
and financial institutions are unfriendly to financing software, given
its intangibility.
First Leasing holds Triple A ratings from two Credit Rating Agencies. Fitch
and CARE apart from the relevant consideration that First Leasing consistently paid a dividend every year for 32 years, an enviable record for any company. The present dividend recommended by Directors amounts to a tax adjusted return of 33.91%.
In this heated up market, valuations of this company look very attractive at
Rs.48/49 levels as book value is around Rs.70 and expected EPS is around
Rs.13/14 in the current year. It is one of the safest investment bet to park
part of profits and also to get good long-term growth. When the index was
around 7000 levels, this stock was around Rs.48/50 levels. So investors are
getting this stock at fairly attractive valuations. The stock, if it catches
attention of market makers, it can cross Rs.100 levels. Accumulate this stock.
Market Guidance
* Walchandnagar Industries (Rs.8621.35) *has come out with encouraging
results on sales of Rs.650 cr. Its EPS is Rs.118 against Rs.44 last year.
There are indications that sale may grow by 50% to 60% in FY08. The management has declared a liberal 1:1 bonus issue and the stock is being split into five shares of Rs.2 each. Long-term investors can look forward to more favourable times over the next few years. Stay invested for better targets.
*
* KCP Ltd. (Rs.556.20) *there are indications that the company may come out
with much better results. The engineering unit of the company has a good
order book position while its cement division is also said to be doing well
due to very remunerative prices. Full year EPS of the company is likely to
be in the region of Rs.70/75. The product of engineering division is similar
to that of Walchanagar Industries, which is trading at a P/E ratio of about
80.
Seeing to the consistent track record of KCP, even if investors discount its
P/E at 25, the stock can reach levels of above Rs.1500 over the next one
year. The stock is attracting the attention of fund managers and market
players. Any decisive closing above Rs.580 will give a good upward
breakout.
*
* Tips Industries (Rs.66.25) *may report a strong turnaround in the current
year. Investors can take a small exposure in this stock.
* Saregama (Rs.277) - *Knowledgeable investors are adding this stock and it
may see much higher levels over the next few years.
*
* Asian Oilfield (Rs.226.20) *has shot from Rs.26 when we recommended buying
it in March 2007 to Rs.236 level in less than 9 months. Long-term investors
can stay invested for better time ahead. There is likely placement of shares
to some strong investors.
*
* Ashiana Housing (Rs.434) *may touch Rs.600/650 levels on declaration of Q3
results. There is likely stock sale to some investors at higher levels as
per informed sources.
*
* Kirloskar Pneumatics (Rs.594) *is expected to benefit from its gas compressor division. With a sharp upsurge in prices of Atlas Copco, this stock, too, is likely to see an upmove.
*
* Shiv Vani Oil (Rs.489) *is under accumulation by some fund managers. Marketmen talk of a target of Rs.1000 plus over the next 18 months time.
*
* Prime Textiles (Rs.47.95) *has given strong breakout after long Consolidation. The stock flared up from Rs.21 to Rs.45.5 level and may
See higher levels. Book part profits around Rs.55 level.
*
* Ramsarup Industries (Rs.214.40) *- There are indications of new developments. Investors should continue to hold the company is said to be going in for a
Backward integration project. There are also rumours of a mining story in the
company. Stay invested for better targets.
*
Wall Street Finance (Rs.26.5) - *New developments are said to be taking
place. Stay invested.
Hind Oil Exploration (Rs.142.40) *- Those having invested in this stock on
a long-term basis are likely to see good benefit over the long run. Stay
invested.
*
Revathi Equipments (Rs.1424.25) *shot up last week from Rs.900 to 1681
before reacting to 1430 levels. Since the upmove is quite sharp, investors
having higher exposures should book part profits and switch partly to Atlas
Copco, which is expected to come out with very encouraging results. This
way, investors can have exposure in the same field but with a better
diversified product range. The long term outlook of Revathi is very
encouraging. Part holding can also be switched to Kirloskar Pneumatics
for atarget price of Rs.1200 over the next 2 years.
*
* Hind Dorr (Rs.158.95), HCC (Rs.201.10), Balmer Lawrie (Rs.592.95),
Indiabulls Real Estate (Rs.603.85) *and *Indiabulls Finance (Rs.737.75)
*are likely to see higher levels as per knowledgeable and smart high
Networth investors.
*
* W S Industries (Rs.96.25) *derives 30-35% of its revenue from exports. And
out of the domestic sales, more than 50% comes from Power Grid. Out of the
balance most of it comes from sales to OEMs like ABB, Crompton Greaves etc.
Company supplies only to solvent SEBS and funded projects.
The outlook for the T&D sector is generally positive primarily because
Of the realization by the Central Government about the urgency to improve
The availability and reliability of quality power across the country. The
Power generating, transmission and trading organizations in the central
sector
have launched very ambitious programmes in this direction. Even if
these
targets were achieved only partially, they would still translate into
significant business for the company. Investors should stay invested
for
good long term growth.
*
* Kalpana Industries (Rs.102) *seems to have given a good breakout
After long consolidation. Stay invested for target of Rs.150/175 over the
next one year.
*
* Gandhimati Appliances (Rs.16.5) *has a very strong brand name of
'Butterfly' and is popular in the South. It is attracting attention of
informed investors. It is a real estate and restructuring story.
*
* Aftek (Rs.69.5) *investors can think of small investment in this
company.
*
* ECE Industries (Rs.725.70) *- Besides doing well, the company has an
investment portfolio with a having market value of around Rs.59 cr. on
its investment cost is just Rs.4 cr.
*
* Sharyans Resources (Rs.341) *holds 33.33% stake in the development of
approx. 2 million sq. ft. being undertaken in Chennai jointly with the
Phoenix and Future Group. This development comprises of a retail mall,
hotel, service apartments and commercial offices. The mall is being
branded as 'Market City, Chennai'.
Sharyans holds 20% in the Raipur project. Raipur is one of India's
fastestgrowing cities and also an important commercial and industrial hub. The
project spread across about 50 acres is also a city centric development.
This mixed use retail development will also have a residential complex.
Thisis Sharyans first foray in a Tier II city.
Besides the above, Sharyans is also managing the development of 1,00,000 sq.ft. in Andheri, Mumbai. Sharyans is now building a strong pipeline of such projects with a view and focus of earning larger rental revenues.
Besides doing well, the company also has investment in equities whose
marketvalue is around Rs.25 cr. while its investment cost is just Rs.9 cr.
Withthe financial sector stock attracting value buying, accumulate this
stockaround Rs.330/335 levels for good long-term growth.
*
* Carnation Inds. (Rs.55.90) *is confident of getting better opportunities
in the Gulf region, USA, UK and other parts of the world as well as from
municipalities and auto sector in the local market. Stay invested as new
developments are said to be taking place.
--
* Paramount Communications (Rs.30.80) *increased its business by 267%
In Power Cables during FY07 and is confident of continuing its growth
Momentum in the power cables business in view of its strong order book and its ongoing expansion in this segment.
The second phase of expansion was planned to set up additional capacity
of30,000 km per annum of LT Power Cables and 2,000 km per annum of HT
Power cables at the Khushkhera plant of the company. The implementation of
This expansion project is progressing well and was expected to be completed
By September 2007 as per last director's report. By adding these
capacities,the tentative turnover after the second phase of expansion will be around Rs.700 cr.
During Q2FY08, the company acquired the business of AEI Cables, UK, in
An all cash deal through its 100% wholly owned subsidiary. The
Consolidated results shall be published at the end of the financial year.
The company has acquired 25 acres Industrial Land from RIICO in
Khushkhera Industrial Area, Rajasthan for its third phase expansion.
The Indian economy is booming above 9% growth rate which will lead to
The overall development in the country. The cable industry in India is
witnessing a good demand due to heavy investment in infrastructure,
railways, IT sector, power sector and new industrial projects. This
trend is expected to continue in the years to come.
The company likely to benefit from timely expansions may report Encouraging results in future. There is good consolidation in the stock and it is likely to go up once it closes above Rs.34 and can touch target of Rs.60 in The next 6 months. Earlier, we had recommended it at Rs.25 onwards for Rs.10paid up values.
*
* Patel Integrated Logistics (PIL) (Rs.64) *is the merged company of Patel
Roadways and Patel on Board Couriers (POBC). PIL provides unified solutions
through door- to-door express cargo service, surface transport and air and
sea transportation besides offering services in warehousing and secondary
distribution. Its commitment to quality, uncanny ability to innovate and its
fierce determination to protect the business interests of its customers
gives it the cutting edge. The company is branched into 8 products to
attain leadership position in its segment.
It has entered the business of Express Cargo Deliveries only 6–9 months ago
and has already, in a short period, clocked a turnover of nearly Rs.15 cr.
annually and expects to take to nearly Rs.100 cr. in 3 years.
The company has announced the acquisition of 24 Line Haul Trucks as a part
of its strategy to grow its Patel Retail (Express Operations & Time Definite
Services). The new trucks acquired include 4 X 6.00 Tonners, 12 X 9.00Tonners and 8 X 16.00 Tonners trucks.
There are indications of new developments in the company. There is talk of
inviting strategic investors. With its vast infrastructure, state-of-the-art
technology, professional work force and variety of products, the company is
well-poised to take advantage of such positives.
The stock is catching the attention of market players. Stay invested
For better times ahead.
First Leasing (Rs.49) *distinguished itself by emphasizing Financial
Assistance to Green Energy in the form of Windmill Leasing, recognizing
That building a foundation of non toxic and renewable energy, is critically
important.
The company also placed emphasis on financing Software given its importance
to the economic persona of India and as a business opportunity, since banks
and financial institutions are unfriendly to financing software, given
its intangibility.
First Leasing holds Triple A ratings from two Credit Rating Agencies. Fitch
and CARE apart from the relevant consideration that First Leasing consistently paid a dividend every year for 32 years, an enviable record for any company. The present dividend recommended by Directors amounts to a tax adjusted return of 33.91%.
In this heated up market, valuations of this company look very attractive at
Rs.48/49 levels as book value is around Rs.70 and expected EPS is around
Rs.13/14 in the current year. It is one of the safest investment bet to park
part of profits and also to get good long-term growth. When the index was
around 7000 levels, this stock was around Rs.48/50 levels. So investors are
getting this stock at fairly attractive valuations. The stock, if it catches
attention of market makers, it can cross Rs.100 levels. Accumulate this stock.
Market Guidance
* Walchandnagar Industries (Rs.8621.35) *has come out with encouraging
results on sales of Rs.650 cr. Its EPS is Rs.118 against Rs.44 last year.
There are indications that sale may grow by 50% to 60% in FY08. The management has declared a liberal 1:1 bonus issue and the stock is being split into five shares of Rs.2 each. Long-term investors can look forward to more favourable times over the next few years. Stay invested for better targets.
*
* KCP Ltd. (Rs.556.20) *there are indications that the company may come out
with much better results. The engineering unit of the company has a good
order book position while its cement division is also said to be doing well
due to very remunerative prices. Full year EPS of the company is likely to
be in the region of Rs.70/75. The product of engineering division is similar
to that of Walchanagar Industries, which is trading at a P/E ratio of about
80.
Seeing to the consistent track record of KCP, even if investors discount its
P/E at 25, the stock can reach levels of above Rs.1500 over the next one
year. The stock is attracting the attention of fund managers and market
players. Any decisive closing above Rs.580 will give a good upward
breakout.
*
* Tips Industries (Rs.66.25) *may report a strong turnaround in the current
year. Investors can take a small exposure in this stock.
* Saregama (Rs.277) - *Knowledgeable investors are adding this stock and it
may see much higher levels over the next few years.
*
* Asian Oilfield (Rs.226.20) *has shot from Rs.26 when we recommended buying
it in March 2007 to Rs.236 level in less than 9 months. Long-term investors
can stay invested for better time ahead. There is likely placement of shares
to some strong investors.
*
* Ashiana Housing (Rs.434) *may touch Rs.600/650 levels on declaration of Q3
results. There is likely stock sale to some investors at higher levels as
per informed sources.
*
* Kirloskar Pneumatics (Rs.594) *is expected to benefit from its gas compressor division. With a sharp upsurge in prices of Atlas Copco, this stock, too, is likely to see an upmove.
*
* Shiv Vani Oil (Rs.489) *is under accumulation by some fund managers. Marketmen talk of a target of Rs.1000 plus over the next 18 months time.
*
* Prime Textiles (Rs.47.95) *has given strong breakout after long Consolidation. The stock flared up from Rs.21 to Rs.45.5 level and may
See higher levels. Book part profits around Rs.55 level.
*
* Ramsarup Industries (Rs.214.40) *- There are indications of new developments. Investors should continue to hold the company is said to be going in for a
Backward integration project. There are also rumours of a mining story in the
company. Stay invested for better targets.
*
Wall Street Finance (Rs.26.5) - *New developments are said to be taking
place. Stay invested.
Hind Oil Exploration (Rs.142.40) *- Those having invested in this stock on
a long-term basis are likely to see good benefit over the long run. Stay
invested.
*
Revathi Equipments (Rs.1424.25) *shot up last week from Rs.900 to 1681
before reacting to 1430 levels. Since the upmove is quite sharp, investors
having higher exposures should book part profits and switch partly to Atlas
Copco, which is expected to come out with very encouraging results. This
way, investors can have exposure in the same field but with a better
diversified product range. The long term outlook of Revathi is very
encouraging. Part holding can also be switched to Kirloskar Pneumatics
for atarget price of Rs.1200 over the next 2 years.
*
* Hind Dorr (Rs.158.95), HCC (Rs.201.10), Balmer Lawrie (Rs.592.95),
Indiabulls Real Estate (Rs.603.85) *and *Indiabulls Finance (Rs.737.75)
*are likely to see higher levels as per knowledgeable and smart high
Networth investors.
*
* W S Industries (Rs.96.25) *derives 30-35% of its revenue from exports. And
out of the domestic sales, more than 50% comes from Power Grid. Out of the
balance most of it comes from sales to OEMs like ABB, Crompton Greaves etc.
Company supplies only to solvent SEBS and funded projects.
The outlook for the T&D sector is generally positive primarily because
Of the realization by the Central Government about the urgency to improve
The availability and reliability of quality power across the country. The
Power generating, transmission and trading organizations in the central
sector
have launched very ambitious programmes in this direction. Even if
these
targets were achieved only partially, they would still translate into
significant business for the company. Investors should stay invested
for
good long term growth.
*
* Kalpana Industries (Rs.102) *seems to have given a good breakout
After long consolidation. Stay invested for target of Rs.150/175 over the
next one year.
*
* Gandhimati Appliances (Rs.16.5) *has a very strong brand name of
'Butterfly' and is popular in the South. It is attracting attention of
informed investors. It is a real estate and restructuring story.
*
* Aftek (Rs.69.5) *investors can think of small investment in this
company.
*
* ECE Industries (Rs.725.70) *- Besides doing well, the company has an
investment portfolio with a having market value of around Rs.59 cr. on
its investment cost is just Rs.4 cr.
*
* Sharyans Resources (Rs.341) *holds 33.33% stake in the development of
approx. 2 million sq. ft. being undertaken in Chennai jointly with the
Phoenix and Future Group. This development comprises of a retail mall,
hotel, service apartments and commercial offices. The mall is being
branded as 'Market City, Chennai'.
Sharyans holds 20% in the Raipur project. Raipur is one of India's
fastestgrowing cities and also an important commercial and industrial hub. The
project spread across about 50 acres is also a city centric development.
This mixed use retail development will also have a residential complex.
Thisis Sharyans first foray in a Tier II city.
Besides the above, Sharyans is also managing the development of 1,00,000 sq.ft. in Andheri, Mumbai. Sharyans is now building a strong pipeline of such projects with a view and focus of earning larger rental revenues.
Besides doing well, the company also has investment in equities whose
marketvalue is around Rs.25 cr. while its investment cost is just Rs.9 cr.
Withthe financial sector stock attracting value buying, accumulate this
stockaround Rs.330/335 levels for good long-term growth.
*
* Carnation Inds. (Rs.55.90) *is confident of getting better opportunities
in the Gulf region, USA, UK and other parts of the world as well as from
municipalities and auto sector in the local market. Stay invested as new
developments are said to be taking place.
--