Sunday, June 22, 2008

Investment Picks: IDEA, Llyod Electric, IGL

Idea cellular (Rs. 105.00) (Code 532822) :-Financial performance of the one of the leading wireless telecom company was excellent in the quarter ended on 31st March 2008. The company has its operations in 11 out of the 22 circles in the country. The company will start its operations in other 11 circles in around one year. The company is expected to increase its subscriber base by on crore customers and with inclusion of new subscribers base total subscribers of the company will reach to the level of 2.5 crores. Company is likely to add around 17 lac customers, a month after six months and growth rate of the company is expected to touch the level of 50 per cent by the end of calendar year 2008. The company has turn over of Rs. 6719 crores and net profit of Rs. 1044 crores during the FY ended on 31 March 2008. Company has EPS of Rs. 3.96 and PE of 27. EPS of the company is likely to reach to the level of Rs. 5.66 and Rs. 8 in FY 2008-09 and 2009-10 respectively, where as PE of the company is expected to
touch the level of 19.26 and 13 respectively during the two FY. Private equity company Aditya Birla has invested Rs. 64 crores in the company to purchase 20 per cent equity stake of the company. Aditya Birla has total 57.69 per cent stake in the company. Even international investors have started taking interest in the company.

Lloyd Electric & Engineering (Rs. 94.00) (Code 517518) :- The Company is largest producer of Evaporate and conditioner coils in the country. The company has captured 60 per cent market share. The company manufactures window split Air conditioners for MNC’s. The company also provides AC coach on turn key basis to railways. The company is also in the field of designing, manufacturing, supply and installation plus maintenance services. Gross turnover of the company was Rs. 650 crores and profit of Rs. 31 crores after payments of tax of around Rs. 58 crores (PAT) and has EPS of Rs. 19. Investors may invest in the scrip as the price is damn cheap.

Indraprasth Gas (Rs. 118.00) (Code 532514) :- Company was promoted by BPCL and GAIL to work in the area of distribution. Both promoters has 22.5 stakes in the company, where as mutual funds has total holding of around 40 per cents. Public has 15 per cent shares in their kitty. Total equity capital of the company is Rs.120 crores. Gross income of the company during FY 2007-08 was Rs. 706 crores, which is in comparison to the income of company during FY 2006-07 of Rs. 614 crores. PAT of the company stood at Rs. 174.50 crores and EPS at Rs. 12.46. Company has increased its dividend payments. Stock has seen 52 weeks high of Rs. 182 and low of Rs. 102. Investment the scrip may provide good return in 8 to 12 months period.

Source: internet (Smart Investment)


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