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RE: Picking Penny Stocks With An Automated System !!!

smoky8 — 2008-01-13T18:40:36-08:00

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Picking Penny Stocks With An Automated System !!!

smoky8 — 2008-01-13T18:18:42-08:00

raj

rajanarayana — 2007-10-31T21:35:23-07:00

The company looks cheap with a market cap to sales ratio of 1.25x

Stock Market India — 2007-09-27T23:53:58-07:00

Elgi Equipments Face Value - Rs 1 Buy Rs 59.35

Ticker: 522074 Equity: Rs 6.00 crore H/L: Rs 68/46.65

Elgi Equipments is currently the market leader and Asia's largest manufacturer of air compressors and automobile service station equipments. Its core business of air compressor will witness strong growth. Elgi is all set to benefit from the rising capex in its client industries like mining, defence, transport, pharmaceuticals, power, oil, railways, textiles, printing, ship building, paper and electronics. All these industries require air compressors.
Elgi has planned capital expenditure of Rs 536 million over the next 12-18 months. This demonstrates the confidence the company currently has, in its businesses since Elgi is undertaking a capex of such a magnitude after ten long years.
Elgi has recently entered into the manufacturing engineering business which is a high-margin low-volume business. A significant part of the company's planned capital expenditure would go into this business. The company also plans to enter into the gas compressor business if it gets a right technology partner. This is a huge opportunity for Elgi

On the Valuation front, the CMP of Rs 59.40 discounts its trailing 12 month earnings by 20x and we feel the company is expected to post good results in FY08. On the other parameters too, the company looks cheap with a market cap to sales ratio of 1.25x. So, we recommend investors to buy this scrip at the current level.

We recommend a buy on this counter at the current level

Stock Market India — 2007-09-27T23:44:10-07:00

Honda Siel Power Face Value - Rs 10 Buy Rs 253.15

Ticker : 522064 Equity: Rs 10.14 crore H/L: Rs 275/ 140.75

Honda Siel Power Products (HSPPL) offers a range of portable power products like, gensets, engines, water pumping sets, lawnmower and brush cutters. Likely surge in demand for the products offered along with focus on rationalizing the costs would enable it to scale up its financial factors like longer duration power disturbances.
On the back of rising demand for higher-end gensets from small industrial/private setups and the company's focus on the same, the realization is expected to improve and thereby drive up sales.
HSPPL is focusing on developing new applications for its general purpose engines (GPE). With volumes likely to increase by around 15 per cent and margins remaining more-or-less stable, the business of GPE and water pump sets is expected to contribute to the company's sales growth. With its cash and land valued at Rs 126/share, the stock provides adequate cushioning to investors thus protecting the downside risk. At the CMP of Rs 258, the stock is trading at 15x of its FY07 EPS of Rs 17.10. We recommend a buy on this counter at the current level.

The valuation of this stock is expected to improve, going forward

Stock Market India — 2007-09-27T23:34:36-07:00

Alfa Transformers Face Value - Rs 10 Buy Rs 76.10

Ticker: 517546 Equity: Rs 4.73 crore H/L: Rs 88/47

Alfa Transformers (ATL) produces electrical distribution & power transformers ranging from 10KVA, 12KV class to 10 MVA, 36 KV class. ATL is now a major supplier to utilities, multinationals and domestic corporates.

The industry as a whole is growing and it is to be noticed that the demand for smaller size of distribution transformers like 16KVA to 100KVA has grown significantly due to the special thrust given by central and state governments for rural electrification under the AREP scheme.
The company has signed a MoU with Hitachi Metals (India) in May 2007 for starting their Metaglas Amorphous Project at their Unit II plant at Bhubaneswar. It is hopeful that the installation of these machineries will be completed by December 2007 and the project will commence production during the last quarter of the current financial year. Once this project is started, the company is expected to improve its margins.

On the valuation front, at the CMP of Rs 74, the counter is trading at 25x of FY07 results and if we look at the first quarter results, the FY08 results are expected to be much better as compared to FY07 and hence, the valuation is expected to improve, going forward.

NSEMUMBAIBULL Strong BUY - Paramount Communications Ltd - Target Rs.40/-

VINCENT. D'COSTA — 2007-09-17T00:51:16-07:00

Dear Investor/Clients,

NSEMUMBAIBULL Strongly recommending to BUY

"PARAMOUNT COMMUNICATIONS LTD" @ CMP, target with in 4 weeks is Rs. 40 /-.

Paramount Communications has commenced land development and civil construction on 25 acres of land in Khushkhera Industrial Area, District Alwar, Rajasthan for setting up of a new manufacturing facility for power cables in accordance with the 3rd phase expansion plan of the company. The said land is located just opposite to the existing plant of the company and has been recently allotted to the company by RIICO, Rajasthan.
The main objective of this land acquisition is to embark on further expansion by induction of additional capacity in power cables.

Happy Trading & Investing,

NSEMUMBAIBULL,
DALAL STREET,
MUMBAI, INDIA
Website http://www.nsemumbaibull.com
Our Yahoo Group

http://in.groups.yahoo.com/group/NSEMUMBAIBULL
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Dalaal Street Quick Recommendations in Short

Stock Market India — 2007-09-16T22:04:20-07:00

TECHNICAL :-

HINDUSTAN UNILEVER 500696 B 217,

INDUSIND BANK 532187 B 57,

NAGARJUNA CONST 500294 B 220,

NATIONAL FERT 523630 B 36.65

HOTCHIPS :-

IEC SOFTWARE 531840 B 9.17

YES BANK 532648 B 183.80

TORRENT PHARMA 500420 B 203

PUNJ LLOYD 532693 B 296

CHOICE SCRIP :-

ABB 500002 B 1215.20

LOW PRICE :-

VADILAL IND 519156 B 78.40

ANALYSIS :-

JAIN IRRIGATION 500219 BUY ON DECLINE 475,

IKF TECH 532414 S 7.5

NEW ISSUE :-

KOUTONS RETAIL IND RATING 47 BUY PRICE 370-415

CONSOLIDATED CONSTRUCTION CONSORTIUM RATING 49 BUY PRICE 460-510

Great Earning Opportunity through Online

pragneshcs — 2007-09-15T05:08:35-07:00

Hello,

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Scrip has a good upside potential and we recommend investors to buy the scrip at the current level

Stock Market India — 2007-09-02T13:33:05-07:00

Sunil Hitech Engineers Face Value - Rs 10

Buy Rs 204 Ticker: 532711
Equity: Rs 10.03 crore H/L: Rs 234/67.10

Sunil Hitech Engineers (SHEL) specializes in fabrication, erection, and testing & commissioning of thermal power plants with high precision quality and timeliness. The company has come a long way by stabilizing its operations. It has also acquired enough assets by way of heavy construction equipments and quality human resources with adequate experience.
SHEL has recently diversified its portfolio of services by venturing into the hydropower plants, setting up of transmission substations, steel structure erection and manufacturing of pressure parts. These services would further give a fillip to the company's growth.
SHEL has accumulated a sizeable order book over the few years. The company's present unexecuted order book stands at Rs 800 crore to be executed over a 3-year period approximately. Further, the company has bid for 7-8 contracts worth Rs 400 crore from where orders are awaited.

On the valuation front, at the CMP of Rs 204.65, the company is trading at 27x on the basis of trailing four quarters. But on account of higher order book, we feel the scrip has a good upside potential and hence, we recommend investors to buy the scrip at the current level.

Best Probable Turnaround Candidates - Buy Now

Stock Market India — 2007-09-02T03:51:46-07:00

Tata Tele. Maharashtra Face Value -Rs 10

Buy Rs 31.50

Ticker: 532371 Equity: Rs. 1,809.50 crore

H/L: Rs 32.9/16.2

One of the best probable turnaround candidates, TTML is surely a counter to look out for. The last six quarters tell the entire story of this turnaround, as the company has fantastically brought down its losses to Rs 28.43 crore in Q1FY08 from Rs 151.76 crore loss in Q4FY06.
In fact if you look at the last ten quarters, this company has posted revenue growth in every quarter. So effectively the company is trying to bring out a turnaround not only through cost cutting, but also through revenue growth.
Looking at the way the company has curbed its losses, there is a possibility that the company might come into the green and post profit in the coming September quarter itself. Then the company will start commanding better valuations going forward.
TTML provides telecom services in the region of Maharashtra and Goa. With the company strategy of controlled aggression, TTML has grown its presence from seven towns in FY04 to more than 400 towns with a total subscriber base of more than three million

Strong Buy Signals - Holding Period 5 to 10 days

Stock Market India — 2007-08-29T06:46:41-07:00

MEDIUM RISK / MEDIUM RETURN - HOLDING PERIOD � FIVE to TEN DAYS
SBI � ( CASH - Rs.1573.85) : The stock which made a low of Rs.1407 a few days back has completed the correction which started from Rs.1734. It is presenting another buying opportunity. Stochastics has given a strong buy signal. Buying is suggested above Rs.1585 with a slightly loose stop loss of Rs.1539 for a target of Rs.1610/1640/1670. Higher targets of Rs.1700 plus are possible within a month�s time.
RELIANCE ENERGY � ( CASH - Rs.782.15) : This chart structure is looking extremely positive and both the 14 day RSI and StochRSI has given a fresh buy signal. Buying is advised above Rs.786 for a target of Rs.805/817 and Rs.838. Stop Loss of Rs.764 should be kept.

Buy Recommendation - Sanghvi Movers and Aditya Birla Nuvo

Stock Market India — 2007-08-26T20:38:58-07:00

[Sanghvi Movers Face Value - Rs 2 Buy Rs 199.50]

Sanghvi Movers is all set to benefit from the increase in infrastructure and industrial activity in the country. Industries like power, urban infrastructure, construction, and metals are expected to undertake capital expenditure which will lead to greater demand for cranes.

The company plans to acquire about 30-35 cranes over the next two years which will entail a total capital outlay of Rs 2,900 million. The company plans to maintain its market leadership through this expansion plan. Currently, the company has 52 per cent market share in the crane hiring business in India.

Historically, the company had a very high financial leverage. It has recently raised equity capital through private placement and issue of warrants to the promoters which has reduced the amount of financial leverage and thus the consequent risk attached to it.

On the valuation front, the CMP of Rs 998.95 discounts its FY08E earnings by 13.86x which we think is below its historical range and hence we recommend investors to buy this scrip at the current level.

[Aditya Birla Nuvo Face Value - Rs10 Buy Rs 1281.95]

The consolidated financial performance of Aditya Birla Nuvo is good with the total revenue up by 78 per cent to Rs 2320.8 crore while net profit was up 50 per cent to Rs 99.8 crore on Y-o-Y basis. Revenues from subsidiaries and joint ventures, where the company has made substantial investments in the past, saw a phenomenal rise of 202 per cent from Rs 522.5 crore to Rs 1579.8 crore.

However, standalone performance was not good as the total revenue declined by five per cent to Rs 741 crore and net profit came down by 53 per cent to Rs 26.5 crore on Y-o-Y basis. The revenue was impacted by the shutdown of the fertilizer plant, high interest cost on borrowings for funding of investment in Idea and various other capex initiatives.

The company has strong capex plans of Rs 600.50 crore in FY08 and Rs 419.10 crore in FY09 in its subsidiaries to be financed thorough internal accruals and debt. The management is quite bullish on its segments and has stated that except IT services where its outlook is of moderate growth other segments are expected to grow positively.

On the valuation front, the CMP of Rs 1280 discounts its consolidated FY08E earnings by 29x. This gives the scrip some scope for upward movement and hence, we recommend investors to buy the scrip at the current level.

Hot Buy Call: The sharp decline over the past week offers a good opportunity to take exposures to this stock

Stock Market India — 2007-08-19T21:12:14-07:00

The sharp decline in the broad markets over the past week offers a good opportunity to take exposures to the stock of Bharti Airtel � the market leader in the Indian mobile telephony market. Strong subscriber additions, substantial investments in capex and possible new revenue streams from overseas forays and businesses such as broadband and IPTV, suggest strong earnings growth prospects for the company over the next few years. The stock trades at about 32 times twelve months earnings, after declines linked to broad market weakness and lower-than-expected first quarter results. Investors can accumulate the stock at current levels as well as at any further declines.

Bharti Airtel continues to dominate the mobile telephony space in the country, with 1.9 million subscribers a month, at least half a million ahead of its nearest competitor. Bharti's average revenue per user (ARPU), at Rs 390, is much higher than the national average of Rs 298, indicating a continued ability to command a premium over other operators. There also appears to be scope for offsetting any decline in ARPUs through value added services. The recent tariff hike effected by the company for SMS and local calls, may also help realisations.

Over $3-billion worth of capex rollout over the next few years, including components like next generation networks (NGN) and 3G-ready networks, will enable Bharti to service a rapidly increasing subscriber base and start 3G services, as and when policy clarity emerges. International calling cards, a thrust area, may also open up revenue streams with relatively higher margins. With the company winning licenses to deliver 2G as well as 3G services in Sri Lanka and committing $200 million towards expansion, Bharti appears well placed to position itself strongly in the Sri Lankan market, which has reasonable untapped potential.

Mobile telephony apart, Bharti's Broadband and Telephone (landline) division has also been making headway, and garnering an ARPU of Rs 1,120, much higher than the national average. The impending rollout of new services such as IPTV (Internet protocol television), DTH (direct to home) may help revenues and margins. Key risks to the earnings outlook arise from any inordinate delay in release of 2G spectrum. A delay in the 3G policy announcement could mean loss of potential opportunity. Regulatory intervention on tariff increases and heightened competition in national and international long distance services, are risks as well.

My 10 Favourite Stocks in this Falling Market

Stock Market India — 2007-08-16T22:41:27-07:00

Falling market is bad for some people, it may be good for some people - but then atleast it's good for me when I am sitting on cash since last couple of months waiting for this period.

A good investment strategy is to buy when the world is selling, and sell when the world is buying

Anyways here is what I am just watching right now, and would finalize the picks, but thought to share with you the watchlist at least.

1. Reliance Communication - I love Telecom Industry now a days
2. Reliance Industries - All time favourite Stock, Will pick up once available
[rather I am watching all reliance group stocks - Reliance Energy, Reliance Capital and specially Reliance Petroleum, you may call them "chor" or not... as long as they are giving money to me, I don't mind]
3. Dena bank - I had passed you the information for this stock, as they say the target can be around 80 for this stock
4. GMR Infra - It has got good orders, and if you see it's 25% down from it's high 2 weeks back. Correcting to actual valuations.
5. IFCI - Wish I would not have sold this stock at Rs 16 couple of years back, I would have earned a lot here... but it's good to correct your mistakes you know.
6. State Bank Of India - Wherever you can find this stock cheaper, accumulate it
7. ICICI Bank - I would still accumulate it more, though have been alloted 100s in FPO.
8. Idea Cellular - Good results, almost 3 times than prev... Why not to watch this.
9. Reliance Petroleum - Gonna give you good returns in one year
10. Tata Tele - It will be a turn around story this year. It has been CEOed by a turnaround master who changed the face of Tata Infotech. Watch this stock, it's coming up from losses to head towards Profits.

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Leoganesh — 2007-08-15T22:47:14-07:00

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Multibagger Stock: Almost 80% Returns Expected if Invested

Stock Market India — 2007-08-12T11:29:24-07:00

Punj Lloyd is increasingly focusing on the high value added Hydrocarbon vertical where the margins are higher and the work is also more specialized

Current Market Price: Rs 275.30; Target Price: Rs 500

Punj Lloyd is a leading construction company with two major verticals, namely Hydrocarbon and Infrastructure. It also has an overseas subsidiary SembCorp. It is showing significant growth in both its verticals due to strong order flows in the Oil and Energy sector and in basic infrastructural sectors. During the first quarter which just ended, Punj Lloyd reported an increase in its net sales of 73%, EBITDA of 39% and a net profit growth of 126% to Rs. 59.5 crores on a consolidated basis. The quarter was marked by a robust growth in new orders in the pipeline division.
REASONS TO BUY:
1. The company is increasingly focusing on the high value added Hydrocarbon vertical where the margins are higher and the work is also more specialized. There has been an impressive improvement in the profitability of SembCorp.
2. The debt level is reduced significantly and the debt / equity ratio now stands much lower than one.
In terms of valuation it is trading around 22 times its expected EPS to Rs. 12 for 2007-08. This is an almost 100% improvement on the EPS just concluded financial year.
CONCERNS:
1. A possible reduction in order flows in Hydrocarbons.
2. Delay in execution leading to under achievement of profit targets.

::::::NSEMUMBAIBULL:::::: Special Investment Recommendation

VINCENT. D'COSTA — 2007-08-10T00:46:28-07:00

Dear Investors/Clients,

::::::Special Investment Recommendation::::::

NSEMUMBAIBULL Equity Research Team Strongly Recommended to BUY �South Asian Petrochem Ltd� @ Rs. 16/- with a target Price of Rs. 24/- with in short period. This is 51th Stock recommendation from our research team.

Some Financial Informations :

Net profit of South Asian Petrochem rose 620.59% to Rs 34.30 crore in the quarter ended June 2007 as against Rs 4.76 crore during the previous quarter ended June 2006. Sales rose 26.21% to Rs 264.76 crore in the quarter ended June 2007 as against Rs 209.77 crore during the previous quarter ended June 2006.

All recommended call status available on our website.

"Equity is the best investment for long term".

Happy Trading & Investing,

NSEMUMBAIBULL,

DALAL STREET,

MUMBAI, INDIA

Website http://www.nsemumbaibull.com

Our Yahoo Group http://in.groups.yahoo.com/group/NSEMUMBAIBULL

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BUY Mutli bagger Stock with Possible 44% Gains

Stock Market India — 2007-08-09T11:10:33-07:00

Micro Technologies : Reco Price Rs. 243.00

Micro Technologies specializes in creating custom-tailored solutions for its clients. The stock can be expected to reach around Rs 350 in the next one year.

Micro Technologies specializes in creating custom-tailored solutions for its clients. It is basically a software company into security products like vehicle security, mobile phone security and credit card security. Some of its clients include Airtel, Idea, Mahindra & Mahindra, MTNL.

In the mobile phone security business, the company recently tied up with Bharti Airtel to offer Micro LMTS (Lost Mobile Tracking System) to increase the security of mobile handsets of Airtel subscribers. Symbian status achieved Micro LMTS (Lost Mobile Tracking System) is an innovative product of the company. The application works on GSM Technology. This hidden software in the users mobile informs the user about the new Mobile number (that has been replaced by the original Mobile Number), IMEI Number with the current location of the handset through an SMS alert along with an email to the provided email address. This tie-up would be beneficial for the company as it will expand its reach to a large number of mobile subscribers.

One of its products, Micro VBB, is an anti-theft security system that enables the user to detect any unauthorized access to his vehicle. In case of a theft, the user has to send commands in a prescribed format via SMS to a particular number. Once the SMS reaches the system, it immobilizes the car engine and locks the doors. Over 2,000 private car-owners, including corporate customers, are currently using this remote activated device. Another product, Micro house security system (HSS), can be used on premises to alert users of any unauthorized entry, again through an alert message.

In the car security business, the company entered into a strategic agreement to market Micro VBB to South Africa, which is one of the largest markets for these Security solutions. South Africa and other adjoining countries have a very lucrative and rapidly expanding market, which offers excellent opportunities for the company's vehicle security products. The market is aware of the fast pace of the new technologies involved in Security Management and the need for up-to-date asset security and safety systems, combined with an early-mover advantage will give the company an edge above the others.

The company also had recently held along with Mumbai Police and Western India Automobile Association a Vehicle Safety and Security Week to introduce and make people aware of the latest technological devices and other preventive methods to overcome the menace of vehicle theft. The government is also reported to be considering a rule that all cars need to have an anti-burglary system, which should be beneficial to the company.

The company on July 20, 2007, issued and allotted 0.5% Coupon Foreign Currency Convertible Bonds (FCCBs) with a maturity of 5 years and three days. The FCCBs were issued in the principal amount of US $ 15 and are convertible into ordinary shares of the company at an initial conversion price of Rs 312.84 per share. The FCCBs, have a 7.75% per annum yield to maturity (calculated on a semi-annual basis).

The company also has approved the allotment of 2,50,000 equity shares to Bennett, Coleman & Co. Ltd., at a price of Rs 250.40 on preferential allotment basis and also 9,00,000 warrants to Micro Associates Consultancy (I) Pvt Ltd. at Rs 250.40 per warrant with the option to convert one warrant in to one equity share, on preferential allotment basis.

The company has also finalized strategic plans to expand its operations in the US market. The company has extended its operations in the US market through one of its subsidiary Micro Technologies US Inc. According to the company, the FCCB funds issue would be used for extensive operations of the company's products in US. The revenue amounting to US $ 50 million out of this operation is expected to flow in coming 18 months with micro access control system and micro vehicle black box - navigator.

Micro Technologies has been growing at a rapid pace. For the full year, net profit rose 83.58% to Rs 32.09 crore in the year ended March 2007 as against Rs 17.48 crore during the previous year ended March 2006. Sales rose 81.63% to Rs 106.36 crore in the year ended March 2007 as against Rs 58.56 crore during the previous year ended March 2006.

For the current quarter ending June 07, Net profit rose 61.66% to Rs 10.54 crore as against Rs 6.52 crore during the previous quarter ended June 2006. Sales rose 55.73% to Rs 34.51 crore as against Rs 22.16 crore during the previous quarter ended June 2006. The company can be expected to clock in an EPS of Rs 40 on a fully diluted basis. The revenues are also estimated to grow at around 60-70% CAGR.

HDFC Trustee holds around 5.7% equity, while Goldman Sachs has a 8.55% stake in the company as per the data on 30th June 2007. The stock can be expected to reach around Rs 350 in the next one year.

Mutli bagger Stock - Current Price at Rs. 33.10

Stock Market India — 2007-08-09T10:23:33-07:00

As on 31st March 2006, Oswal Chemicals and Fertilizers had cash andbank balance of around Rs 1300 crores. Assuming an annual return of 10%on the surplus cash with the company, the current cash could be aroundRs 1450 crores. The market cap of this debt free company at the currentprice is Rs 835 crores.

Oswal Chemicals & Fertilizers Ltd.
CMP � Rs. 33.10; NSE Symbol � BINDALAGRO
For Oswal Chemicals & Fertilizers, its name itself is amisnomer. The company's current business has nothing to do with eitherChemicals or fertilizers � Infact, as of now, the company is withoutany business. Oswal Chemicals & Fertilizers is a part of Punjabbased Abhay Oswal group. The company had put up mega fertilizerprojects at Shahjahanpur in Uttar Pradesh and Paradeep in Orrisa.
The company sold off both the plants in FY 2005-06. The company soldoff its Urea Plant at Shahjanpur, U.P. to Kribhco Shyam FertilizersLtd. (KSFL) for a sale consideration of around Rs1900 crores. Thecompany also sold its DAP plant located at Paradeep, Orissa to IndianFarmers Fertiliser Cooperative Ltd. (IFFCO). The company received aconsideration of Rs 240 crores towards the Sale of the plant and inaddition, IFFCO has taken over liabilities aggregating to Rs 2053Crores of Term loan lenders and Working Capital lenders and OCPS/OCCRPSliability aggregating to Rs 327 Crores.
ConclusionOswal Chemicals is a company which is without any businessoperations after the sale of both the fertilizer plants. However, withthe sale of both the plants, the company's balance sheet is now debtfree, the company's net worth has become positive and the company has aCash and Bank balance of around Rs 1300 crores (as on 31st March 2006).
The comforting factor is that the company is available atover 40% discount to its cash value. As on 31st March 2006, the companyhad cash and bank balance of around Rs 1300 crores. Assuming an annualreturn of 10% on the surplus cash with the company, the current cashcould be around Rs 1450 crores. The market cap of this debt freecompany at the current price is Rs 835 crores.Long Term Investors can accumulate the stock at the current price and on declines.

NSEMUMBAIBULL Strong BUY - Multi bagger Scrip- "L G Balakrishnan & Bros Ltd"

VINCENT. D'COSTA — 2007-08-07T10:57:01-07:00

Dear Investors/Clients,

NSEMUMBAIBULL Strongly recommended to BUY "L G BALAKRISHNAN & BROS LTD @ Current Market Price. [ BSE: 500250 NSE : LGBROS ] Target with in 3 weeks is Rs. 33 /-

This is 50th Stock Recommendation from NSEMUMBAIBULL Equity Research Team.

We are very happy to inform you that our 43rd recommendation achieved more than 69 % return with in few weeks. All our recommended call status available on www.nsemumbaibull.com

"Equity is the best investment for long term".

Happy Trading & Investing,

NSEMUMBAIBULL,
DALAL STREET,
MUMBAI, INDIA
Website http://www.nsemumbaibull.com
Our Yahoo Group http://in.groups.yahoo.com/group/NSEMUMBAIBULL
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Indian Hotels: An investment can be considered

Stock Market India — 2007-08-05T20:47:16-07:00

An investment can be considered in the stock of Indian Hotels, trading at a price earnings multiple of 26 times its trailing per-share earnings (on a stand-alone basis). The valuation is more attractive on a consolidated basis (22 times 2006- 07 earnings). While we expect some moderation in average room rates over the next year, volume growth from room additions is likely to contribute to strong revenues, helping sustain profit growth. Indian Hotels has reported another strong set of numbers for the June quarter, with a performance that is vastly superior to its peers. The diversified presence of the Taj chain has helped it counter the impact of declining occupancy rates and flat average room rates in cities such as Hyderabad and Bangalore. The good earnings numbers are despite an appreciating rupee; a substantial portion of the company's earnings are in forex.
Indian Hotels has now decided to adopt a universal "rupee" tariff across its properties in India, in line with the global practice of charging a uniform rate to domestic and foreign customers. This shift to rupee tariffs will stem the impact of an appreciating rupee on earnings, though it may reduce the premium charged to foreign guests. In our view, a single tariff may find favour with foreign tourists and stimulate demand. Competitors too are seriously considering the shift to a single tariff structure. With rooms continuing to be in short supply over the next one year, room rates could thus remain firm (although the growth is likely to moderate considerably from the 30 per cent recorded in 2006-07).
Over the longer term, fresh supply of rooms is expected to moderate room rates. However, Indian Hotels is leading the supply growth in the business and luxury hotels segment, as it continues on a heavy capex phase. This makes it better placed than its peers to counter the decline in average room rates expected in 2009.
Indian Hotels has been aggressive with its overseas acquisitions. Its international properties contributed 25 per cent to its overall revenues in 2006-07, up from 11 per cent in the previous year.
Having completed the first phase of its foray into the US, it is now setting its sights in the Asian hotel market, which appears more promising from a growth perspective. A rights offer proposal is under consideration for funding growth, this may present a good opportunity to accumulate the stock.

Buy this Stock with Investment Horizon of 2 Years

Stock Market India — 2007-08-05T04:11:47-07:00

A roster of blue-chip clients and focus on Europe where growth prospects for telecom services are strong, make the company's stock a good investment option.

Investors can buy the Tech Mahindra stock with a two-year horizon considering the healthy growth prospects for its service offerings in Europe, its blue-chip clientele and status as an integrated telecom software player. The stock was marked down significantly during the recent meltdown in mid-tier IT stocks; investors can use this opportunity to buy.
The stock trades at 23 times its current year's earnings and is at a discount to other telecom software companies such as Sasken, as well as larger IT companies such as HCL Technologies and Wipro, making it a reasonable investment option.
Tech Mahindra broadly caters to three sets of clientele � telecom service providers (TSP), telecom equipment manufacturers (TEM) and independent software vendors (ISV). Its IT services offerings include application development and maintenance, system integration, product engineering, managed platforms and services, consulting, testing and BPO services, among others.

Multibagger Stock - Pick up at Rs. 27 - Read Analysis

Stock Market India — 2007-08-02T13:32:14-07:00

Tata Teleservices (M) : Reco Price Rs. Rs.27.10

On EV/Sales and EV/ EBIDTA, TTML is trading at cheaper valuations. Also in terms of EV per subscriber, the company is cheap compared to peers. We believe TTML would witness strong growth from the current smaller base with its plans of adding 1 lakh subscribers every month.

Tata Tele (TTML) is a listed subsidiary of unlisted Tata Teleservices Ltd which has pan-India operations. The company provides fixed line, CDMA-based mobile and fixed wireless services in Mumbai and Maharashtra. TTML has efficiently managed to reduce its earlier losses, with strong improvement in EBIDTA margins in past few quarters during FY07. The company posted a Cash Profit of Rs 131 crore for FY07 against Cash Loss of Rs 21 crore in FY06.

Financials
Net Sales up by 24% y-o-y with strong improvement in EBITDA in Q4 FY07 TTML has witnessed 24% y-o-y and 5% q-o-q growth in net sales to Rs 380.43 crore. This is backed by the strong growth in subscriber as witnessed during FY07. Also the company is witnessing strong improvement in EBIDTA margins on account of growing scale of operations, which has resulted in some fixed nature costs like Network operation, interconnect-access costs and Administration costs to decline q-o-q in past few quarters.

Valuations
At current market price of Rs 27.10, TTML is quoting at EV/Sales and EV/ EBIDTA of about 4.95x and 22.62x respectively of its TTM earnings as on Mar'07.

Growth
- Telecom Services Providers market grew at CAGR of 52% over last 2 years, while TTML grew at a CAGR of 89% in the same period.
- On the operational front the company's current initiatives are helping it to cut down on costs, which have resulted in strong improvement in EBITDA margins, significant improvement in cash profits and productivity.
- TTML would focus on rural areas to drive its growth, where currently it is witnessing over 60% q-o-q increase in subscriber base, which stood at 2 lakhs in Q4 FY07 up from 1.09 lakhs in Q3 FY07.
- TTML is currently in its fourth year of wireless operations, a huge market yet to be explored, which going forward would yield strong revenues for TTML.
- TTML had incurred capex of Rs 738 crore in FY05, Rs 507 crore in FY06, Rs 564 crore in FY07 and plans to incur Rs 600 crore capex in FY08.
- The numbers of sites of TTML for providing services have also moved up from 694 in FY05 to 1234 in FY07.
Since the company is currently making losses, it could not be compared on PER basis with the peers in the Telecom Industry. However on EV/Sales and EV/ EBIDTA it is trading at cheaper valuations. Also in terms of EV Per Subscriber the company is cheap compared to peers. We believe TTML would witness strong growth from the current smaller base with its plans of adding 1 lakh subscribers every month. Also the current initiatives would further improve its operational efficiency thereby wiping-off all the losses and witnessing strong growth momentum going forward.

NSEMUMBAIBULL Strong BUY "Sunflag Iron and Steel Company" - Target Rs.22

VINCENT. D'COSTA — 2007-07-30T06:49:29-07:00

Dear Investors/Clients,

NSEMUMBAIBULL Strongly recommended to BUY "Sunflag Iron and Steel Company @Current Market Price. Target with in 3 weeks is Rs. 22/-

"Equity is the best investment for long term".

Happy Trading & Investing,

NSEMUMBAIBULL,
DALAL STREET,
MUMBAI, INDIA
Website http://www.nsemumbaibull.com
Our Yahoo Group http://in.groups.yahoo.com/group/NSEMUMBAIBULL
----------------------------------------------------------------------
: : : : : Y o u r S u c c e s s S t a r t F r o m H e r e : : : : : :
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One more BUY Call from Dalaal Street Journal

Stock Market India — 2007-07-19T21:20:45-07:00

Corporation Bank Face Value - Rs 10 Buy Rs 382.05
Ticker: 532179 Equity: Rs 143.44 crore H/L: Rs445 /205.25

Corporation Bank has a wide network of 901 branches and is now into expanding its network to reach the target of 1000 plus branches by FY2008. The bank has a strong presence in the South and has initiated concentration in the Northern and Central India. This expansion is expected to help the bank improve its CASA ratio and reduce the cost of funds.

To top this all, the bank enjoys comfortable Capital Adequacy Ratio (CAR). The bank is well positioned to meet the fund requirements of its growing phase. It is estimated that, even after Basel II norms, the Tier-I Capital would prove to be sufficient.

Corporation Bank has registered a strong growth in advances at 25 per cent y-o-y in FY07. This in turn has led to 12 per cent increase in the bank's net interest income. Further on, this growth in advances is expected to be around 23 per cent for FY08 and 21 per cent for FY09.

The asset quality of the bank has improved, the net NPAs have declined to 0.47 per cent from 0.64 per cent last year. The revival of NPA has also been good with the bank recovering Rs 190 crore. On the financial front, the company's Net Interest Margin is strong at 4.60 per cent. Although NIM has declined a bit, we think it is at comfortable levels.

Best Short Term BUY Calls from Dalaal Street Journal

Stock Market India — 2007-07-19T21:06:01-07:00

Ballarpur Ind. Face Value - Rs 10 Buy Rs119.50
Ticker: 500102 Equity: Rs 170.26 cr. H/L: Rs130.40/95.70

Ballarpur Industries (Bilt), the largest paper company in India, is well prepared to capitalize on the upside in business fortunes, with a convincing product profile and a strong balance sheet.

Bilt is the market leader in high value-added coated paper, business stationery and maplitho paper segments. The company's leadership position coupled with the robust demand for paper, will help it achieve sustained price growth. The management's appetite for inorganic growth and securing its wood pulp requirements, places it in a most advantageous position.

The company is expected to increase its capacity by 62 per cent to 990,000 tonnes per annum by FY10, through expansion. Its acquisition Sabah Forest, Indonesia (SFI), gives it an access to 289,000 hectares of land for captive plantation valid till 2094. The acquisition also adds 120,000 tonne per annum of pulping capacity and 144,000 tpa of paper capacity to its existing capacity of 530,000 tonnes.

Bilt has one of the best return ratios in the industry. The gearing is expected to remain stable despite significant capex plans. On the valuation front also, the company discounts its FY07E earnings by 8.25 (EPS expected at Rs 14.40). We recommend the investors to buy the scrip at current levels.

RE: Short Term (3 months) Buy Calls from E Mathew and Ashwani Gujral

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Short Term (3 months) Buy Calls from E Mathew and Ashwani Gujral

Stock Market India — 2007-07-15T22:10:23-07:00

E Mathew:

Buy Cinemax with a stop loss of Rs 151 for a short-term (3 months) target of Rs 185
Buy Hanung Toys with a stop loss of Rs 133 for a short-term (3 months) target of Rs 175

Ashwani Gujral:

Buy Hindustan Zinc with a stop loss of Rs 740 for a target of Rs 950
Buy SAIL with a stop loss of Rs 135 for a target of Rs 210

Again Short Term BUY Calls for Decent Gains (20-30%) on Investment

Stock Market India — 2007-07-11T21:37:20-07:00

- Ashwani Gujral

Buy GVK Power with stop loss at Rs 460 for target of Rs 600
Buy DLF with stop loss at Rs 560 for target of Rs 700

- E Mathew

Buy NDTV with a stop loss of Rs 415 for a short term (3 months) target of Rs 485
Buy Bata India with a stop loss of Rs 165 for a short term (3 months) target of Rs 193

- Deepak Mohoni

Buy Jaiprakash Associates below Rs 827 with stop loss at Rs 820. This is a day-trading recommendation.
Buy Union Bank of India below Rs 148 with stop loss at Rs 145. This is a day-trading recommendation.

NSEMUMBAIBULL Strong BUY ""MSP Steel & Power Ltd" - Target Rs.32/-

VINCENT. D'COSTA — 2007-07-11T02:07:21-07:00

Dear Investors/Clients,

We are very strongly recommending to BUY "MSP Steel & Power Ltd" @ current market price. Target With in 3 weeks is Rs.32/-.

This is 46th Recommendation from NSEMUMBAIBULL Equity Research Team. All our recommended call status available on our website.

Happy Trading & Investing,

NSEMUMBAIBULL
Dalal Street
Mumbai-India
www.nsemumbaibull.com
________________________

Short Term BUY Calls for 30-35% Gains and Day Trading Recommendations from E Mathew, Ashwani Gujral, Rajat Bose and Deepak Mohani

Stock Market India — 2007-07-10T19:48:49-07:00

E Mathew:

Buy Oriental Bank with a stop loss of Rs 223 for a short term (3 months) target of Rs 300
Buy Maharashtra Seamless only on declines with a stop loss of Rs 628 for a short term (3 months) target of Rs 755

Ashwani Gujral:

Buy Indotech Transformer with stop loss of Rs 395 for target of Rs 495
Buy Elecon Engineering with stop loss Rs 495 for target of Rs 630

Rajat Bose:

Buy Lanco Infratech with stop loss below Rs 219 for target of Rs 238 & Rs 246. This is a day trading recommendation
Buy Bharti Airtel with stop loss below Rs 868.50 for target of Rs 899 & Rs 906. This is a day trading recommendation

Deepak Mohoni:

Buy Divi's Lab below Rs 6750 with stop loss at Rs 6660. This is a day-trading recommendation.
Buy Lanco Infratech below Rs 229 with stop loss at Rs 224. This is a day-trading recommendation.

PowerYourTrade BUY Calls - Short Term for Good Gains

Stock Market India — 2007-07-09T21:26:24-07:00

E Mathew:

Buy Maharashtra Seamless only on declines with a stop loss of Rs 628 for a short term (3 months) target of Rs 755
Buy Oriental Bank with a stop loss of Rs 223 for a short term (3 months) target of Rs 300

Ashwani Gujral:

Buy Elecon Engineering with stop loss Rs 495 for target of Rs 630
Buy Indotech Transformer with stop loss of Rs 395 for target of Rs 495

Rajat Bose:

Buy Lanco Infratech with stop loss below Rs 219 for target of Rs 238 & Rs 246. This is a day trading recommendation
Buy Bharti Airtel with stop loss below Rs 868.50 for target of Rs 899 & Rs 906. This is a day trading recommendation

Ashwani Gujral and Rajat Bose gives Short term BUY Calls

Stock Market India — 2007-07-08T21:12:07-07:00

Ashwani Gujral

Buy JP Associates with a stop loss of Rs 740 and target of Rs 1160. This is an investment pick
Buy Mahindra & Mahindra with a stop loss of Rs 700 and target of Rs 1000. This is an investment pick

Rajat K Bose

Buy TCS with a stop below Rs 1135 with target of Rs 1195 and Rs 1210
Buy ABB with a stop below Rs1090 with targets of Rs 1179 and Rs 1215

BUY Call for Short Term for Gains of 40%

Stock Market India — 2007-07-08T20:20:39-07:00

Mercator Lines : Reco Price Rs. 50.70 Target: Rs.71 (Gain 40.00%)

Mercator Lines has strong support between Rs 44-42, in short run (3 months) has potential to touch Rs 71. Mercator Lines is a blue-chip shipping company, which posted excellent results for the year ended 31st. March 2007 � it posted Profit After Tax (PAT) of Rs.7.16 crore after charging an extraordinary expense of Rs.5.48 crore.

During the quarter ended 31st. March 2007 Mercator Lines (Singapore) Pvt. Ltd. � a subsidiary company acquired Kamsarmax Vessel of 82379 DWT. This subsidiary also concluded issue of FCCBs aggregating 5.1 crore US$ which is listed on Singapore Exchange.

For the year ended 31st. March 2008 it is expected (barring unforeseen events) that the consolidated financial result of Mercator Lines and its Indian & Overseas subsidiaries will yield an EPS of Rs 15.

Moreover, taking into account the valuation of it's Singapore Subsidiary & it's future plan of diversifying into the oil rigs business, the share has the potential to touch Rs.150/- over a period of 2 years. Technically speaking , scrip has got strong support between Rs 44-42 (which should be strictly maintained as the stop loss) and in the short run (3 months) has the potential to touch Rs 71.

Short Term BUY Calls from E Mathew and Ashwani Gujral

Stock Market India — 2007-07-08T20:16:42-07:00

E Mathew:
Buy Maharashtra Seamless on dips with a stop loss of Rs 616 (on closing basis) for a short term target of Rs 670/690
Buy Unitech with a stop loss of Rs 532 (On closing basis) for a short-term target of Rs 604.
Ashwani Gujral:
Buy ICICI Bank with stop loss of Rs 950 for a target of Rs 1115
Buy Tata Steel with stop loss of Rs 590 for a target of Rs 662/720

Dalaal Street - Positive guidance of 35 per cent in topline and 26 per cent in bottomline for FY08

Stock Market India — 2007-07-05T06:47:46-07:00

Power Finance Corp. Face Value - Rs 10 Buy Rs 162.80

Ticker: 532810 Equity: Rs 1,147.77 crore H/L: Rs 167.25 /101

* Power Finance Corporation (PFC) has emerged as a leading power finance company. Being a 'Nav Ratna' company, it enjoys higher levels of operational freedom and autonomy in decision-making.

* PFC is one of the best plays on power financing in India, with a projected funding requirement of Rs 10 lakh crore in the eleventh five-year plan. Taking advantage of its huge funding potential in power finance, PFC has managed to almost double its market share to 21per cent from the ninth to the tenth five-year plan.

* PFC's asset quality has remained healthy over a long period of time. Despite significant exposure to State owned PSUs, which have been making cash losses, PFC has been able to receive timely interest payments from them. Here an escrow payment mechanism is formed in almost all loans given to SPSUs, where in case of a default; PFC reserves the right to direct the borrower's banker to remit the amount to PFC for clearing the dues.

As far as the financial performance of the company is concerned, it has been strong in past. PFC's management has given a positive guidance of 35 per cent in topline and 26 per cent in bottomline for FY08. On the basis of above guidance, we expect the company to post a profit of Rs 1250 crore as compared to Rs 983 crore in FY07. Based on that guidance, the EPS is Rs 10.83.

RE: intraday calls

Stock Market India — 2007-07-03T01:31:40-07:00

Gaurav,
You have very poor UI for your blog. It's not atall user friendly. The chat utility should not be right at the top and all the essential posts below the fold. Please let me know if you need any technical assistance to clean this up.

www.stock-market-india.net

RE: PP Guptaji is writing here

Stock Market India — 2007-07-03T01:25:35-07:00

Hi friends,
Try to see if you find Leoganesh's website useful. Finally we are here to help each other as long as the service is kept free.
Admin,
http://www.stockmarketindia.net

PP Guptaji is writing here

Leoganesh — 2007-07-02T03:42:16-07:00

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Dalaal Street - Recommendations on Fundamentals

Stock Market India — 2007-07-01T20:39:02-07:00

Bharti Airtel Face Value - Rs 10 Buy Rs 842.50
Ticker: 532454 Equity: Rs 1895.93 crore H/L: Rs 899/346.1

The company is largest mobile service provider with over 4 crore subscribers, out of which 2 crore subscribers have been added in the past 13 months. Currently, it covers 59 per cent of the total population of India and has set a target to cover 70 per cent of the population in FY08.
To enhance the subscriber size, the company is aggressively into promotional schemes like the life-time prepaid cards and lower ISD rates. Recently, it made ISD calls to the US and Canada more affordable, by slashing the tariff rates by 39 per cent.
In FY07, the company reported 58.5 per cent growth in topline and 100 per cent in bottomline and thus, the respective numbers zoomed to the level of Rs 17794 crore and Rs 4033 crore respectively. We believe that the company would continue to maintain a higher growth rate.
On the basis of FY07 EPS of Rs 21.27, the counter with Market cap of Rs 1.59 lakh crore is trading at a P/E of 39.5x and with decent earning visibility in near future, we recommend the investors to buy this scrip and hold for over one year.

LIC Housing Finance Face Value - Rs 10 Buy Rs 194.80
Ticker: 500253 Equity: Rs 85 crore H/L: Rs 201/128.3

Despite the rise in the interest rate, the company has performed well in terms of growth in disbursements. In Q4FY07, the loans sanctioned and disbursed registered 72 per cent and 23 per cent growth respectively. In FY08, the company has set a target to sanction housing loans to the tune of Rs 8,060 crore and will disburse Rs 7,385 crore of loans; that is 32 per cent and 44 per cent above FY07 respective numbers.
To enhance the growth of its business, the company has increased its corporate tie-ups with reputed organisations. The total business coming out of such tie-ups now accounts to nearly 33 per cent of the total retail business, as against last year's 25 per cent.
To mobilise funds, it had launched a fixed deposit scheme. In addition, the company is expected to embark on a reverse mortgage product, within a month.
The gross NPA and net NPA of the company were at a lower levels of 2.58 per cent and 1.28 per cent respectively, as against last year's 3.41 per cent and 1.8 per cent. Thus, the company managed to reduce the NPAs substantially.
On the basis of FY07 EPS of Rs 32.86, the counter is trading at a P/E of 5.98x and looks attractive to invest at current levels for a period of over one year in perspective.

Bartronics India Face Value - Rs 10 Buy Rs 142.10
Ticker : 532694 Equity: Rs 17.82 crore H/L: Rs 147/47

The company provides solutions in bar coding, using technologies like AIDC, RFID, etc and caters to the demands from the booming retail industry and similar businesses. Thus, the bright prospects of end-user industry would drive the growth of the company going forward.
RFID market is expected to jump from USD1.4 billion annually (2007), to USD 3.8 billion (2008).Thus, with the industry at nascent stage, tremendous growth is expected in near future.
The company has over 1600 customers, who are present not only in India but also in overseas markets like Malaysia, Bangladesh, Sri Lanka and Dubai.
The company is expanding its business in overseas market. Recently, it incorporated a subsidiary in Singapore. It is also looking at acquisition route for selling its products in other markets. To fund its expansion plans, it is raising USD 25 mn through FCCB.
Of late, the company has commissioned a smartcard manufacturing unit near Hyderabad which would strengthen the FY08 financials.
In FY07, the topline of the company was at Rs 63.5 crore and in FY08 it expects a turnover of Rs 200 crore. On the basis of FY07 EPS Rs 7.56, the counter is trading at a P/E of 19x and looks attractive to invest for a period of over one year in perspective.

IT Stock Available at Discount to its Peers - Invest in this stock

Stock Market India — 2007-07-01T13:45:22-07:00

Investors with a two-year perspective can buy the Hexaware Technologies stock. At the current market price, the stock trades at around 15 times its expected FY-07 earnings and 12.5 times its expected FY-08 earnings. This valuation is at a discount to its peers such as KPIT Cummins and iGate. A good business model, a strong order-book and healthy client additions reiterate our positive view. But the near-term returns are likely to be muted.
Business Prospects
With the acquisition of Focus Frame, the US-based testing consulting firm in November 2006, Hexaware plans to enter testing services in a big way. The company expects testing services to contribute $50 million (Rs 204.5 crore) to the revenues this year compared to $11 million (Rs 45 crore) last year. The management expects testing services to bring in $100 million (Rs 409 crore) by 2009. Testing has contributed to 17.5 per cent of the revenues in Q1 compared to an average of 5.3 per cent in FY-06, with the integration of Focus Frame. Focus Frame has also patented the 'Acclerator' technology which provides pre-defined testing components for several platforms including SAP and Peoplesoft. Since Hexaware is one of the largest providers of offshore services for the Peoplesoft suite, the availability of the acclerator would help the company obtain new businesses on the latest Peoplesoft version 9. Eight new clients were acquired in Q1 including those of Focus Frame and Hexaware Testing.
Reorganised business
Since January, Hexaware has restructured its business to bring in greater competency. It has identified six focus areas and henceforth, sales strategies including client wins and mining of existing clients are to be aligned to these focus areas. Despite higher client acquisitions, repeat business in this quarter stood at 88.7 per cent as against 88.4 per cent last quarter.
Financials
Hexaware ended Q1FY-07 on a reasonable note. The quarter saw an all-time high order booking of $61 million (approximately Rs 249 crore). Client acquisitions were healthy at 20. Revenue and profit figures were in line with the guidance; revenues grew by 10.1 per cent sequentially showing double-digit growth after two quarters. The management expects to double revenues in the eight-10 quarters beginning January 07. Profits grew by 4.3 per cent for the quarter, sequentially.
For the next quarter, the profit guidance stands at $7-7.2 million (about Rs 29 crore), lower than the $8.02 million (Rs 35 crore) PAT achieved in Q1. This is attributed to three reasons: A wage increase of 14-15 per cent offshore and 3-5 per cent onsite; one-time visa charges of $3 million; and rupee appreciation.
Margin pressures
The company is looking at increasing margins by 1-1.5 per cent this year. But the target appears ambitious. Focus Frame is an onsite business with margins lower than Hexaware. This is reflected in the onsite percentage in Q1 which has increased to 62.1 compared to 61.6 per cent last year.
This has also played a role in the flat operating margin for Q1 although gross margins have improved. Selling, general and administrative expenses in Q1, as a percentage of revenue, have risen to the 24-25 per cent levels as against the reductions achieved in the previous year. What has helped maintain Q1 margins is the stepped up utilisation rates and an increase in the billing rates . The pressure on the margins might remain until full integration of Focus Frame is achieved by end 2007.
Attrition and utilisation
The attrition rate (excluding Focus Frame) at 16.1 per cent in Q1FY-07 is not expected to reduce in a big way despite wage hikes. Utilisation rate in this quarter has touched the 70 per cent mark by keeping the head count lower. Given the revenue growth that the management wants to achieve over the next two years, utilisation must improve in such a way as to help the margins grow along with the revenues. The company has a forward cover of $60 million at Rs 44.73. Any adverse impact of rupee appreciation, competition from local and MNC peers and visa issues remain principal risks to this recommendation.
Last year, General Atlantic picked up a 7.95 per cent equity stake along with optionally convertible preference shares. Preference shares, when converted, would increase the holding to 14.99 per cent (the open offer trigger is 15 per cent). One needs to wait and watch as to how things unfold on this front.

Buy for Good Investment - the stock could emerge as a proxy for increasing consumerism in the country

Stock Market India — 2007-07-01T13:43:34-07:00

Investors with a 2-3 year perspective can add Lloyd Electric & Engineering to their portfolio, as the stock could emerge as a proxy for increasing consumerism in the country. Niche positioning as original equipment manufacturer of coils for a number of air-conditioner manufacturers, operational efficiencies derived from a fully integrated business and strong financials are positives for the company. At the current market price the stock trades at 10 times its expected earnings for FY08.

Lloyd Electric's operations are forward integrated, ranging from making heat exchanger coils for air-conditioners to manufacturing window/split air-conditioners.

The company's stock may not deserve the valuation commanded by branded players such as Blue Star or Voltas, but the current valuation discount suffered by Lloyd appears to be too steep, given its forward integration. As one of the leading coil manufacturers in India, Lloyd is an OEM supplier for leading AC makers including Blue Star, Voltas and LG. With possible spikes in demand for air-conditioners in the peak season (January-June), AC makers prefer to outsource excess demand for coil.
Lloyd is equipped with high quality imported machinery and has very few organised competitors; it may, therefore, continue to derive business from branded players. Further, the entry of new players, which is reducing margins for AC marketers, is actually a positive for Lloyd as it translates into new business.

Lloyd Electric has also started receiving outsourced orders for making window and split air-conditioners for some of the branded players. To cater to this demand, the company has expanded the capacity of its Himachal Pradesh unit and set up a new AC manufacturing plant in Uttaranchal.
That the company is also a supplier of AC package units (through a tie-up with an Australian company) for Delhi Metro Rail Corporation reflects its product strengths. We also view the company's tie-up with a Korean company for making coil for frost-free refrigerators as a product diversification move.

The company's sales grew at 36 per cent annually over the past three years and stood at Rs 496 crore in FY07. Operational efficiencies from its backward and forward integration projects ensured a 65 per cent annualised growth in operating profits over the same period. In terms of risks, a rise in raw material cost, especially copper, can dent operating margins. Tax benefits in all its three plants would, however, lend a boost to the net profits over the next few years.

intraday calls

gaurav — 2007-06-30T09:20:33-07:00

for live intraday calls

http://gauravshines.blogspot.com/

All About IPO's answered here

Leoganesh — 2007-06-27T03:43:18-07:00

Dear Friends,

I would just take few minutes of your valuable time. This might assist you in changing the way you trade / invest in stockmarkets or IPO's.

We at www.theindianstocks.com believe in the universal truth about Price being the one and only truth. All trends at some point fail. The only tool that can assist you is stop loss.

We have special boards created for IPO Investors..

1. IPO Allotments @ http://theindianstocks.com/CategoryContents.php?catListID=374

2. IPO DIARY @ http://theindianstocks.com/CategoryContents.php?catListID=319

3. IPO NEW ISSUES @ http://theindianstocks.com/CategoryContents.php?catListID=317

++ IPO REFUND, IPO MARKET PREMIUM, IPO FORTHCOMING.

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Warm Regards
TIS Wellwisher