Stock Idea: Country Club India

Country Club India
Annual Report Analysis
Large increase in membership revenue: CCIL’s aggressive expansion plans in terms of acquiring properties and offering comprehensive range of products to its clients has helped the company to grow at CAGR of 210.8% over last three years to Rs3.18bn in FY08. In FY08, CCIL added 37838 members to its existing ones and increased its total membership to 155483. CCIL spent about Rs3.83bn in FY08 for acquiring properties and refurbishing the old ones. The spent-per-head (SPH) grew by 33.5% to Rs3318. But SPH is still a small amount (on absolute basis) on the base of average membership revenue of Rs 70600.

Cost impacted due to high sales figure: Despite an increase in the cost from Rs0.95bn to Rs1.93bn, the actual cost increased only by 70bps from 62.6% in FY07 to 63.3% in FY08 (as % of sales). Increase on absolute basis has occurred due to an increase in the personnel and advertisement cost to generate more membership revenues.
Drop in RoCE as well as RoE: RoCE decreased in FY08 to 14.3% from 20.0% in FY07 due to an increase in the total capital base (because of QIP issue, GDR issue and conversion of some amount of FCCB).As a result, RoE also decreased from 29.3% in FY07 to 16.4% in FY08. It is expected to deteriorate due to conversion of the remaining FCCB’s in FY09. RoE would improve from FY10 due to strong revenues and profit growth and no further increase in the capital base.

Valuation: At the CMP of Rs 270, the stock trades at 4.5x FY09E and 2.7x FY10E earnings. We believe that CCIL should trade at a premium to the current valuations, given its strong revenue and profit growth. We maintain BUY rating on the stock with a target price of Rs 797 (8x FY10E).

The major revenue contribution has been from the membership revenues (seen from the table above). It grew by 114.4% (YoY) from Rs1.24bn to Rs2.67 bn in FY08. Also average membership revenue has increased by 47.9% to Rs70600. This has been primarily due to aggressive expansion plans in terms of acquiring properties at existing as well as newer locations (domestic and international) and offering comprehensive range of products to its clients, depending upon their income class and requirements. The company acquired 16 properties during the year, taking the total to 40 till FY08. Majority of these properties have been acquired in major cities like Chennai, Pune, Delhi, Kolkatta, Ahmedabad, Baroda, Surat etc. This resulted in an addition of 37838 members to the existing ones and increased the total membership base to 155483. Subscription from members and club revenues grew significantly by 76.4% to Rs516m.But the SPH (Spent per head) grew only by 33.5% to Rs3318 per member which is still a small amount (on absolute basis) on the base of average membership revenue of Rs70600. SPH, which is recurring in nature, is in our opinion indicative of the patron loyalty (since only regularly visiting members will spend at the club). We believe it is imperative for CCIL to focus on this aspect of its revenue profile even more than simply on new members. A high proportion of SPH will indicate superior earnings quality which would be valued at significantly higher multiples than membership revenue (which is non-recurring in nature)

Source: Prabhudas Lilladher

Technicals: Power Sector

CESC has been witnessing a falling wedge pattern and if the stock rallies above 310 levels where it will fill the gap formed during the downtrend, we expect the stock to witness a smart rally. RSI also for CESC is oversold and once the stock rallies above 310 levels, the RSI will start to move orthward indicating a bullish pattern. We recommend to buy CESC at current levels, with a stop loss of 250 and an initial target of 350 and the second target being 400.

NTPC has taken support of the major trend line and shown a spurt from there. A breakout above 188 levels will indicate a bullish pattern in the stock. RSI is also showing an upward movement from the bottom levels also indicating positive movement for the stock. We recommend to buy NTPC at current levels, where the stock will cross the support line, with a stop loss of 160 and an initial target of 205 following a target of 220.

After making double top formation at around 1100 levels, the stock has corrected up to 700 levels. The downward price gap is seen on weekly chart and the gap has to be filled for resuming its uptrend. After crossing 950 level, the price gap on weekly chart will get filled and the 'Hammer' structure seen on chart is expected to support downtrend, if seen. RSI for REL INFRA is in the oversold territory and an upward movement of the same indicates a positive move northwards for the stock. We recommend to buy REL INFRA at current levels, which is the level where the gap will be filled, with a stop loss of 780, which is the level near the previous low made by the stock and a targets of 1150 and 1350.

Source: MOST.

Stock Idea: SREI Infrastructure

Kolkatta based NBFC, SREI Infrastructure Finance touched a new low yesterday at Rs.70 and then gradually recovered to end the day at Rs.74 levels. The reason for this fall? The company has come under the ministry of corporate affairs scanner for 36 alleged violations of norms laid down by the Act that governs Indian firms, the Companies Act of 1956. The charges range from investments in the stock market without proper guidelines to loans granted without permission from its board of directors, and misappropriation of funds by an employee. The company has refuted these charges and said this is just an enquiry and company would furnish information, they are not formal charges.

Financially, the company’s has done well for the fist quarter ended 30th June 2008. Its income rose, on a YoY by 82%. PBT was up by a whopping 135% and PAT was up 85% atRs.43.20 crore. Its provison for bad and doubtful debts was significantly low at Rs.4.01 crore.

The company is fancied quite a bit on the bourses. It is a part of the consortium of advisors that includes agencies like RITES for the Rs 30,000-crore worth 1,047-km long eight-lane highway project along the river, Ganges. SREI Sahaj e-Village, a subsidiary of SREI is planning to setup 25,000 common service centres to initiate e-governance in rural areas in six states namely West Bengal, Bihar, Orissa, Assam, Uttar Pradesh and Tamil Nadu. The group plans to capitalize on this rural reach. Its telecom subsidiary Quippo builds towers for telecom companies and announced its plan to inject Rs.6750 crore over the next two to three years to set up nearly 25,000 telecom towers, mainly in rural India as the Govt provides a 50% subsidy to companies that are willing to set up mobile towers in rural areas.

It’s a favourite stock of the FIIs as they hold 44.20% stake as against promoters holding of just 25.05%

Source: sptulsian.com

Intraday Trading Calls for 26th September

Indian Stock Market may open nagetive but a smart recovery expected in mid session and good positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GSS AMERICA INFO (239)
Buy Above 242.65 Target 248.15, 255.00
Sell Below 236.20 Target 230.15, 222.00
BALAJI TELE (142)
Buy Above 143.65 Target 147.45, 152.00

Sell Below 140.20 Target 137.15, 134.00
PUNJ LLOYD (304)
Buy Above 306.55 Target 312.35, 320.00

Sell Below 301.40 Target 296.50, 290.00
CORE PROJECTS (285)
Buy Above 288.55 Target 294.60, 300.00

Sell Below 282.10 Target 277.45, 272.00
VOLTAS (108)
Buy Above 110.20 Target 114.25, 120.00

Sell Below 106.15 Target 102.50, 98.00
GMDC (142)
Buy Above 143.75 Target 148.20, 154.00

Sell Below 140.05 Target 136.15, 132.00

GOOD LUCK

Stock Idea: Patel Engineering

Civil engineering and construction firm Patel Engineering saw some major buying on its counter a few days ago, with the stock going up over 6% in one day to Rs.375. This sudden surge in the price was on account of the huge order worth Rs.695.57 crore, it received from the Andhra Pradesh Govt. It is a massive modernisation programme of the major river delta systems to boost irrigation potentials in the state. The project is expected to be completed in 36 months. After the euphoria settled, the stock has now retreated a bit and is now at around Rs.340 levels.

Prior to this, the company’s stock price was up on reports that the company is close to acquiring a coal mine in Indonesia for Rs 100 crore.

Financial performance for the first quarter ended 30th June 2008 indicates that the company is doing well. Net sales of the company rose 34% at Rs.558.39 crore and despite a 30% rise in operating expenses, its EBIDTA was up 30% at Rs.479.83 crore. Its interest outgo rose over 3.5 times, yet it managed to show a 33% rise in PBT. Its PAT was up 29% at Rs.34.99 crore.

In May 2008, Patel Engineering’s joint venture in the United States received a dam reconstruction contract worth $280 million.

The only irking fact about the company is the string of subsidiaries it has. These consolidated results include the performance of nine subsidiaries and four financially controlled integrated joint ventures. Apart from these, during the quarter, the company incorporated twelve more Indian subsidiaries and two overseas subsidiaries. Stay invested.

Source: sptulsian.com

Intraday Trading Calls for 25th September

Indian Stock Market may open positive and remains in small range with positive bias through out the day today. Market may see a sharp rally today or tomorrow.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GSS AMERICA INFO (235)

Buy Above 237.40 Target 243.50, 250.00

Sell Below 232.20 Target 227.15, 220.00

GTC INDUSTRIES (127)

Buy Above 129.35 Target 133.65, 138.00
Sell Below 125.20 Target 122.15, 118.00

NUTEK INDIA (131)

Buy Above 132.80 Target 135.75, 140.00
Sell Below 129.40 Target 125.70, 122.00

ANU'S LABS (272)

Buy Above 275.40 Target 281.40, 288.00
Sell Below 269.40 Target 264.15, 258.00

ANSAL INFRA (89)

Buy Above 90.65 Target 94.25, 98.00
Sell Below 87.45 Target 83.25, 80.00

AUSTRAL COKE (262)

Buy Above 265.40 Target 272.20, 280.00
Sell Below 259.20 Target 253.15, 245.00

GOOD LUCK

Intraday Trading Calls for 24th September

Stock Market India may see a good strong rally today. A positive closing with good gains exptected today.

Today's Intraday Trading Calls / Stock Tips:

(Buy with strict Stop Loss in each trade)

ROLTA INDIA (260)

NTPC (180)

RPOWER (160)

HCC (85)

BANK OF BARODA (304)

SATYAM COMPUTER (331)

Good Luck

Intraday Trading Calls for 23rd September

Stock Market India may open gap down but some recovery expected in mid session. A flat to nagetive closing expected.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMDC (171)

Buy Above 173.45 Target 178.15, 184.00

Sell Below 169.40 Target 165.15, 160.00

ATLANTA (165)

Buy Above 166.75 Target 171.35, 176.00

Sell Below 163.60 Target 160.05, 156.00

ASHAPURA MINECHEM (99)

Buy Above 100.90 Target 105.40, 110.00

Sell Below 97.30 Target 94.25, 90.00

IDEA (82)

Buy Above 83.10 Target 85.45, 88.00

Sell Below 81.40 Target 79.20, 76.00

RDB INDUSTRIES (104)

Buy Above 105.60 Target 109.45, 114.00

Sell Below 102.40 Target 98.50, 95.00

GTD INDUSTRIES (110)

Buy Above 111.65 Target 115.45, 120.00

Sell Below 108.30 Target 105.15, 102.00

Others of Intraday (Buy at Decline): LANCO INFRA (225), HDIL (222) & DCB (40).

GOOD LUCK.

Intraday Trading Calls for 19th September

Stock Market India may open gap up of about 400-500+ and remains positive for the day today. A strong positive closing exptected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

PRAJ INDUSTRIES (145)
Buy Above 146.75 Target 151.15, 156.00
Sell Below 143.40 Target 140.15, 136.00
UNITECH (122)
Buy Above 123.65 Target 127.55, 132.00
Sell Below 120.40 Target 117.25, 114.00
GMDC (146)
Buy Above 147.80 Target 152.40, 158.00
Sell Below 144.30 Target 140.25, 136.00
GMR INFRA (89)
Buy Above 90.60 Target 94.55, 100.00
Sell Below 87.60 Target 84.20, 81.00
LANCO INFRA (234)
Buy Above 237.20 Target 243.45, 250.00
Sell Below 232.40 Target 228.05, 224.00
HDIL (207)
Buy Above 210.40 Target 217.45, 225.00
Sell Below 204.60 Target 200.35, 195.00

Others for Intraday: ONMOBILE, RPOWER, SAIL, SESAGOA, ADHUNIK METALIKS, ASIAN ELECTRICALS, MERCATOR LINES.

GOOD LUCK.

Stock Idea: McNally Bharat

A leading Engineering Companies in India, providing Turnkey solutions, having constructed over 250 plants on turnkey basis, touched a new low on 16th September 08’ at Rs.102. Then yesterday came the news of the company having secured an order worth Rs.87.12 crore from Damodar Valley Corporation. This helped lift up the stock price but just a tad bit at Rs.109.
For the first quarter ended 30th June 2008, the numbers indicate a pressure on the margins. YoY, OPM has slipped from 8.47% to 7.53% and NPM slipped from 3.94% to 3.09%. The higher operating expenses took its toll, which was mainly on account of rising cement and steel prices. QoQ, the fall has been more precipitous as the company’s actually showed a dip of 36% and net profit dipped 42% at Rs.4.07 crore. The company’s current equity is Rs 31.09 crore and face value per share is Rs 10.
In July 08’, it bagged an order worth Rs 246 crore from Vedanta Alumina. And in June 08’, it got another order from Mundra Port and Special Economic Zone for supply of four rail mounted bucket wheels, worth Rs.47.30 crore.
It is setting up a new plant in West Bengal for which it has been allotted the 25 acres of land required. The new plant will provide support in executing turnkey projects of various companies like IISCOs, Durgapur plant and Bokaro plant of SAIL. It also recently acquired 68.28 per cent of Sayaji Iron and Engineering Company, as part of its plans to boost its equipment business, and is on the lookout for further acquisitions. The company was approved as a supply partner by France based Solios Corporation and it hopes to evolve itself into a global sourcing hub for European metal majors
McNally Bharat has a good order book and in the current uncertain times, such brick and mortar companies are a better bet. Stay invested.

Intraday Trading Calls for 18th September

Indian Stock Market may open gap down but recovery expected from lower levels.

Today's Intraday Trading Calls / Stock Tips: (BUY AT LOWER LEVELS WITH STRICT STOP LOSS)

BANK OF BARODA

BANK OF INDIA

INDIAN BANK

CAIRN INDIA

RPL

GUJARAT NRE COKE

GOOD LUCK

Intraday Trading Calls for 17th September

Indian Stock Market may open Positive and remains in small range throughout the day today. A good positive closing exptected today.
Today's Stock Tips/Intraday Trading Calls (Keep Appropriate Stop Loss for Each Trade):

GTC INDUSTRIES (112)

IOB (100)

BANK OF BARODA (316)
CAIRN INDIA (198)
RPL (148)

RPOWER (160)

Good Luck.

Stock Idea: Solar Explosives

Solar Explosives (SEL) is a Nagpur-based manufacturer of industrial explosives, which are mainly used for mining and infrastructure projects. SEL, which is the market leader in India, is likely to benefit from growth in the country's mining sector and several new infrastructure projects. In light of SEL's expansion plans and forward integration into the coal mining business, long-term investors can consider this stock.

BUSINESS: Established in 1996 with a capacity of 6,000 tonnes cartridge explosives, SEL has become one of the leaders in the domestic explosives industry and a major exporter. Its current capacity stands at 80,000 tonnes cartridge explosives, 94,450 tonnes bulk explosives and 140 million detonators. SEL controls nearly 20% of India's explosives market, currently valued at $400 million. The company has successfully commissioned 12 bulk plants at various locations supported by one plant each for manufacturing cartridges, detonators and detonator components. It has a bulk explosives plant in the vicinity of every subsidiary company of Coal India, as well as in Singareni Collieries. The company has now started operations with Tata Steel in Jharkhand. Last year, SEL acquired 74% stake in Navbharat Coalfields, which owns a mining lease on a coal block in Chhattisgarh with reserves of 36 million tonnes (mt). Recently, it obtained permission to pick up 24% stake in a joint venture with Chhattisgarh Mineral Development Corporation (CMDC) for development, mining and marketing of coal with estimated reserves of 80 mt at Shankarpur in Chhattisgarh. The commercial operations at these mining projects are expected to start in FY10.

GROWTH DRIVERS: India's mining and infrastructure industries are growing rapidly and the pace of growth is not likely to slacken in the near future. To meet the power generation targets set in the 11th Five-Year Plan, India will need huge amounts of additional coal. This will increase the country's coal output to 684 mt per annum (mtpa) from around 450 mtpa currently. The Planning Commission estimates that 17,000 megawatts (mw) hydel power capacity will come up in the 11th Plan period, which will involve heavy excavation work, adding to the demand for explosives. During the same period, the domestic production of steel is expected to increase from around 55 mt currently to 80 mt. The same applies to most other metals and minerals. These initiatives will boost the demand for explosives, which is likely to grow at around 10% every year for the next 4-5 years. SEL has already expanded its capacities in India to cater to the growing domestic market and it also exports its products. It is now spending around Rs 23 crore to set up a bulk explosives plant in Nigeria to be commissioned by March '09, supported by another plant in Africa by June '09. These plants will cater to the African demand for explosives, which are currently imported at high prices. This will enable the company to earn higher margins.

FINANCIALS : SEL's sales have grown at a cumulative annual rate (CAGR) of 51.7% over the past five years to reach Rs 281 crore in FY08. Its PBDIT grew 61.2% to Rs 71 crore, while net profit expanded at an even higher pace of 64.2% to reach Rs 36 crore during the same period. The company's return on capital employed (RoCE) improved to 22% in the year ended March '08 after averaging around 16% in the past five years. SEL's current debt-equity ratio is comfortably placed at 0.6 with no long-term debt. Since SEL is in a growth phase, it is a low dividendpaying company. Although it has consistently paid dividends in the past five years, the dividend payout has remained below 15% of its net profit. Considering the dividend for FY08, SEL's dividend yield works out to around 0.7%.

VALUATIONS: At the current market price of Rs 409, the scrip trades at 18 times its profit for the past 12 months. Going forward, we expect the company to report a profit of Rs 50 crore in FY09 and Rs 72 crore in FY10. Thus, the current price is 14.2 times its estimated FY09 earnings and 9.8 times its estimated FY10 earnings. Among its competitors, Keltech Energies and Premier Explosives, which are smaller companies, are trading at P/E multiples of around 7.5 each. Gulf Oil, which is trading at a P/E of around 16.5, and has an explosives business comparable to that of SEL, derives over 65% of its turnover from lubricants and other businesses. Although SEL appears to be fairly valued at present, its leadership position, expansion plans and entry into coal mining justify the same. The company is likely to generate healthy returns for longterm investors.

Source: http://economictimes.indiatimes.com/articleshow/3483742.cms

Intraday Trading Calls for 16th September

Indian Stock Market may open gap down as all global markets trading very lower. But small bounce back expected from lower levels.

Today's Stock Tips/Intraday Trading Calls:

Buy at lower levels (4-5% from previous close) for recovery gains with strict Stop loss:

GTC INDUSTRIES (110)

YES BANK (127)

BANK OF BARODA (302)

HPCL (240)

GMDC (157)

Good Luck.

Intraday Trading Calls for 15th September.

Stock Market India may open positively and remains positive for the day today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

PRAJ INDUSTRIES (165)
Buy Above 166.45 Target 170.15, 174.00
Sell Below 163.50 Target 160.25, 156.00
CIPLA (227)
Buy Above 228.65 Target 231.50, 235.00
Sell Below 225.40 Target 222.25, 218.00
GMDC (169)
Buy Above 170.70 Target 175.30, 180.00
Sell Below 167.30 Target 164.25, 160.00
HT MEDIA (126)
Buy Above 127.60 Target 131.45, 136.00
Sell Below 124.60 Target 121.20, 117.00
PANTALOON RETAIL (325)
Buy Above 327.55 Target 332.45, 338.00
Sell Below 322.40 Target 318.05, 312.00
HDIL (274)
Buy Above 276.70 Target 283.15, 290.00
Sell Below 271.40 Target 267.35, 262.00

Others for Intraday: RPOWER, SAIL, SESAGOA.

GOOD LUCK.

Intraday Trading Calls for 12th September

Stock Market India may open positive and good bounce back expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

PRAJ INDUSTRIES (167)
Buy Above 168.25 Target 171.55, 175.00
Sell Below 165.55 Target 162.25, 158.00
GMR INFRA (98)
Buy Above 98.65 Target 101.75, 105.00
Sell Below 96.50 Target 94.25, 91.00
SAIL (136)
Buy Above 137.20 Target 140.30, 144.00
Sell Below 134.80 Target 131.25, 128.00
BANK OF BARODA (309)
Buy Above 311.60 Target 316.45, 322.00
Sell Below 307.25 Target 302.20, 295.00
RAJ TELE (117)
Buy Above 118.35 Target 122.15, 127.00
Sell Below 114.40 Target 111.05, 107.00
RPOWER (168)
Buy Above 169.25 Target 172.15, 175.00
Sell Below 166.50 Target 163.35, 160.00

Others for Intraday: RTS POWER, NTPC, SUZLON, TATA POWER.

GOOD LUCK.

Intraday Trading Calls for 11st September

Stock Market India may open nagetive but smart recovery expected in mid session if inflation rate comes down to about 12%, So all depends on inflation today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

EIH LTD. (157)
Buy Above 158.25 Target 161.55, 165.00
Sell Below 155.50 Target 152.25, 148.00
RSWM LTD. (81.50)
Buy Above 82.40 Target 85.15, 88.00
Sell Below 80.40 Target 77.55, 74.00
INDIAN HOTELS COMPANY LTD. (76)
Buy Above 76.90 Target 79.50, 82.00
Sell Below 74.80 Target 72.10, 69.00
SESA GOA (142)
Buy Above 143.30 Target 146.15, 150.00
Sell Below 140.45 Target 137.20, 133.00
GMDC (186)
Buy Above 188.35 Target 192.15, 198.00
Sell Below 184.70 Target 181.05, 176.00
YES BANK (148)
Buy Above 149.05 Target 152.15, 155.00
Sell Below 146.60 Target 143.35, 140.00

Others for Intraday: HOTEL LEELA, ZEE ENTERTAINMENT, HCC, NAGARJUNA CONSTRUCTION, BOB.

GOOD LUCK.

Intraday Trading Calls for 10th September

Stock Market India may open flat to nagetive & remains flat and trade in small range throughout the day today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

RPOWER (169)

Buy Above 169.90 Target 172.55, 176.00

Sell Below 167.50 Target 163.25, 160.00

RENUKA SUGAR (122)

Buy Above 123.25 Target 126.15, 129.00

Sell Below 121.05 Target 119.05, 116.00

TRIVENI ENGINEERING (95)

Buy Above 95.85 Target 97.50, 100.00

Sell Below 93.75 Target 91.20, 88.00

HPCL (243)

Buy Above 245.10 Target 249.25, 254.00

Sell Below 241.45 Target 237.65, 232.00

RCOM (405)

Buy Above 407.65 Target 412.75, 418.00

Sell Below 402.75 Target 397.20, 391.00

HDIL (311)

Buy Above 313.55 Target 318.45, 325.00

Sell Below 308.60 Target 302.35, 295.00

Others for Intraday: PIONEER EMBROIDERIES, IDEA, CHAMBAL FERTILIZER, GMDC.

GOOD LUCK.

Stock Idea: Goa Carbon

A part of the Dempo group, Goa Carbon has had an exceedingly good first quarter, carrying forward the winning stroke it had in FY08. A simple change in sales strategy has put the company on the firm path to superlative growth.

Net sales rose by a whopping 130% on a YoY at Rs.109.60 crore. EBIDTA doubled up from Rs.4.04 crore to Rs.19.16 crore. PBT was up more than 10 times at Rs.19.16 crore. The company had a MTM forex loss of Rs.8.56 crore. PAT was up over 8 times at Rs.11.63 crore. What is noteworthy here is that for entire FY08, the company had posted a PAT of Rs.17.32 crore

And this change in fortunes was brought about due to the change which the company made in its sales policy, starting from January 08’. It started selling on a spot basis instead of forward contracts. This helps the company sell CPC at an average rate of over $500-550 per tonne as against the price of $350-400 per tonne it was selling earlier. It also stopped selling on credit and this too helped.

It currently has a manufacturing capacity of 2.40,000 tpa, making it the second largest after Rain Commodities, which has a capacity of 6,00,000 tpa. It exports 25% of its production while the rest is sold to consumers in aluminium, titanium dioxide and metallurgical chemical industries. Of this, aluminium manufacturers account for 75% of the business, meaning its fortunes are closely linked to that of the aluminium sector.

The company has chalked out a capex of Rs.480 crore to set up a greenfield plant to produce up to 5 lakh tpa of CPC with a co-generation power plant of 40 MW.

The stock price has moved up sharply in August and currently it is hovering in the range of Rs.130-136. Stay invested, infact at every dip, accumulate the stock.

Source: sptulsian.com

Stock Idea: India Glycols

One glance at the financial performance for first quarter ended 30th June 2008, be it YoY or QoQ, indicates an across the board fall in topline as well as bottomlines. Sequentially, OPM has slipped from 19.05% in Q4FY08 to 17.08% in current Q1, NPM slipped from 6.99% to 4.85%. YoY, the fall is sharper. OPM has come down from 27.43% and NPM from a very healthy 13.14%.
There were two reasons for this fall. The biggest culprit is the fact that the company has shut down the plant for 21 days for debottlenecking of capacities & catalyst change. 21 days is almost like a full month, juts one week short. So of the three months in Q1, the company actually operated for just 2 months and one week. Naturally, the profitability was bound to take a hit.
Secondly, even on the lower net sales, the company’s operating expenses was quite high. YoY, one may feel that the company has managed to keep it at the same levels of Rs.215 crore but when compares it as percentage of sales, it becomes apparent that the outgo was much higher. In Q1FY09, operating expenses ate away 86% of the net sales, which was at 79% in Q1FY08.
The current fiscal is expected to be good. Its carbon-di-oxide plant of 80 ton per day capacity at Kashipur started commercial production in April’08 and this would also start contributing to the bottomlines in the current fiscal.
India Glycols is a very good company, its product is its winner. It manufactures MEG from molasses unlike others who do it from crude, hence it is protected from the vagaries of the rising crude prices and at the same time, gives a more cost effective substitute for its customers. Its located in Uttaranchal, which is close to the main sugar belt of India. And that is the reason why the company did not hit rock bottom despite the performance.
Currently quoted at Rs.210, its best to accumulate this stock at every dip and keep a 15-18 months perspective for gains.

Source: sptulsian.com

Intraday Trading Calls for 09th September

Stock Market India may open flat to nagetive and see some profit booking but recovery also expected from lower levels and a flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

RPOWER (168)
Buy Above 169.60 Target 172.55, 176.00
Sell Below 166.80 Target 163.25, 160.00
GMDC (191)
Buy Above 193.25 Target 198.75, 208.00
Sell Below 189.20 Target 184.25, 178.00
INDIABULLS SECURITIES (63.5)
Buy Above 64.45 Target 66.75, 69.00
Sell Below 62.60 Target 60.20, 58.00
GSS AMERICA INFO (297)
Buy Above 300.10 Target 306.75, 314.00
Sell Below 294.55 Target 288.05, 282.00
PUNJ LLOYD (309)
Buy Above 311.45 Target 315.75, 322.00
Sell Below 307.55 Target 302.20, 295.00
SEL MANUFACTURING (237)
Buy Above 240.55 Target 248.05, 258.00
Sell Below 234.60 Target 228.35, 220.00

Others for Intraday: INDIAINFOLINE, ORG INFORMATICS, STONE INDIA, HPCL, BPCL.

GOOD LUCK.

Stock Idea: Prime Property

Prime Property Development Corporation Ltd. (Code: 530695) (Rs.61.55) is a small real estate developer based in Mumbai which boasts of constructing landmark residential and commercial buildings for high end customers in Mumbai. Prime Avenue, Prime Centre, Prime Beach & Prime Plaza are few of its prestigious residential & commercial developments in prime areas like Santacruz (West) & Vile Parle (West) in suburban Mumbai. Presently, the company is focusing to complete its two ongoing projects in Mumbai namely ‘Prime Down Town Mall’ - a 270,000 sq. ft. luxurious composite mall with multiplexes and ‘Prime Tech Park’, which is 90,000 sq. ft. commercial building. Besides these, the company has started construction work on two more shopping malls called ‘Prime Square’ - 70,000 sq. ft. mall in Goregaon Mumbai and ‘Prime Pune Mall’ - gigantic 430,000 sq. ft. state-of-the-art mall with an anchor shop, multiplex, food court, entertainment area and a hotel in Pune. For FY08, it clocked an EPS of Rs.16 and declared a dividend of Rs.1.50. It has announced excellent results for Q1FY09 and considering the company’s current projects in hand in prime locations, it may report total revenue of Rs.150 cr. with net profit of Rs.40 cr. for FY09 i.e. an EPS of Rs.20 on its current equity. Only aggressive investors are advised to buy at current levels.

Stock Idea: GMDC

Gujarat Mineral Development Corporation (GMDC) is a Gujarat State government undertaking engaged in the business of lignite, bauxite and fluorspar mining as also power generation units based on lignite.
The fourth quarter of FY08 had been its best and in comparison, all else pales. Especially the performance for the first quarter ended 30th June 2008. Sequentially, the performance has dropped. Net sales is down 15%, and though it managed to reduce its operating expenses, by 25% which itself is a feat given the rising costs in Q1. Despite that EBITDA dropped 3% and then interest outgo rose 215 and depreciation by 4% and this pushed down the PBT growth by 19%. And then it added back the expenses provided for overburden removal and loading of lignite and this was to the tune of Rs.38.88 crore. This boosted the PAT by 14% at Rs.72.35 crore. The company might have managed to show an increase in the last leg but the profit margins indicate the pressure. OPM slipped down from 55.08% to 48.15% and NPM from 26.53% to 19.75%.

A look at the net sales break-up indicates that there had been a fall overall. Its income from mining fell from Rs.292.45 crore to Rs.239.40 crore. The income from power also fell, from Rs.50.91 crore to Rs.40,52 crore.

YoY, the company has done well and that to a large extent is very reassuring. The company continues to remain on a good wicket, it’s just that Q4FY08 was its best and expecting Q1CY09 to match up or exceed would be unfair, especially with many companies showing a slower growth.

The company is presently producing about 80 lakh MT of lignite at its three mines. New mines have been developed at the various locations at Surat to cater to South Gujarat where estimated annual production would be 10 lakh MT. 10 lakh MT of lignite production at Amod near Bharuch would fully contribute in FY09. 30 lakh tonne of lignite production is estimated from Bhavnagar mines to cater to Saurashtra region and Central Gujarat. So, in FY 09, the production of lignite would rise by about 40%. The company also has 250 MW power plant in operation based on lignite.
Lignite referred to as brown gold, is an alternative for coal, which is in great demand, as natural resources are becoming scarce all over the world. The stock went ex-bonus from 1st September and on 5th September it touched a new low at Rs.192. Currently it is quoted at Rs.195. Stay invested as it remains a fundamentally sound stock.

Source: sptulsian.com

Intraday Trading Calls for 8th August

Indian Stock Market may open gap up and expected a super strong rally & good positive closing today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

RPOWER (163)
Buy Above 164.60 Target 168.55, 173.00
Sell Below 162.10 Target 159.25, 155.00
NTPC (173)
Buy Above 174.25 Target 177.75, 182.00
Sell Below 171.80 Target 169.25, 166.00
HCC (97)
Buy Above 98.25 Target 102.25, 106.00
Sell Below 96.10 Target 93.20, 90.00
TATA MOTORS (420)
Buy Above 423.60 Target 429.75, 435.00
Sell Below 418.55 Target 413.05, 407.00
INDIABULLS REALEST (278)
Buy Above 281.25 Target 288.75, 298.00
Sell Below 275.35 Target 268.20, 260.00
SEL MANUFACTURING (249)
Buy Above 252.55 Target 260.05, 268.00
Sell Below 247.60 Target 241.35, 235.00

Others for Intraday: TATA POWER, RELIANCE INFRA, TORRENT POWER, JAIPRAKASH ASSOCIATES, ROLTA INDIA.

Delivery Buy: ORG INFORMATICS (517195) (30) for Short- Med Term Target Rs. 75+

Good Luck

Intraday Trading Calls for 05th September

Indian Stock Market may open gap down due to weak global markets, but it may see some bounce back in mid session.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMDC (206)
Buy Above 207.75 Target 215.45, 224.00
Sell Below 204.20 Target 198.25, 190.00
GUJARAT ALKALIES (150)
Buy Above 151.25 Target 154.45, 158.00
Sell Below 148.60 Target 145.65, 142.00
GUJARAT NRE COKE (100)
Buy Above 101.25 Target 104.05, 108.00
Sell Below 98.50 Target 96.00, 93.00
NTPC (175)
Buy Above 176.40 Target 179.35, 182.00
Sell Below 173.55 Target 170.05, 166.00
RENUKA SUGAR (115)
Buy Above 115.95 Target 118.75, 122.00
Sell Below 113.45 Target 110.20, 106.00
SEL MANUFACTURING (267)
Buy Above 270.05 Target 276.65, 282.00
Sell Below 264.60 Target 258.35, 252.00

Others for Intraday: VAKRANGEE SOFTWARE, BLUE STAR .
Good Luck

Intraday Trading Calls for 04th September

Indian Stock Market may open flat to positive and may see some profit booking and remains in small range today.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMDC (241)
Buy Above 243.25 Target 248.45, 255.00
Sell Below 239.50 Target 234.25, 228.00
GMR INFRA (105)
Buy Above 105.90 Target 108.45, 111.00
Sell Below 103.90 Target 100.65, 97.00
LANCO INFRA (310)
Buy Above 313.25 Target 318.75, 325.00
Sell Below 307.10 Target 301.70, 294.00
ORBIT CORPORATION (304)
Buy Above 306.65 Target 312.35, 320.00
Sell Below 301.45 Target 295.55, 288.00
CORE PROJECTS (300)
Buy Above 302.55 Target 308.45, 315.00
Sell Below 297.25 Target 292.20, 286.00
YES BANK (141)
Buy Above 142.60 Target 145.65, 149.00
Sell Below 140.10 Target 137.35, 134.00

Others for Intraday: HDIL, ANSAL INFRA, UNITECH, Adhunik Metaliks.

Good Luck

Stock Ideas: Vivimed Labs Ltd., Hitachi Home & Life Solutions (I) Ltd., Graphite India Ltd.

Vivimed Labs Ltd. (Code: 532660) (Rs.73.10) is a speciality chemical manufacturer catering to segments like oral care, sun care, skin care, hair care, natural extracts, preservatives, anti microbial, anti oxidants, anti-aging molecule etc. In fact, it is the world’s second largest manufacturer of Triclosan - an antibacterial used for oral care, and one of the top three companies for Avis – a chemical that improves the ultra-violet (UV) absorbing ability of Sunscreen. Couple of months back, it acquired 100% stake in M/s. James Robinson, UK, which is a global manufacturer and supplier of speciality chemicals used in hair dyes, pharmaceuticals and photographic films/prints to ophthalmic sunglasses. Organically, too, the company has been expanding capacity and has chalked out greenfield expansion plans in Uttarakhand and Hyderabad. Considering its Q1FY09 results and the acquisition of the UK company, Vivimed is estimated to post consolidated sales of more than Rs.225 cr. with net profit of Rs.17 cr. This will lead to an EPS of Rs.18 on its current equity of Rs.9.40 cr. whereas its diluted EPS works out to Rs.13 on its diluted equity of Rs.12.65 cr. Accumulate at declines.
******
Hitachi Home & Life Solutions (I) Ltd. (Code: 523398) (Rs.111.70), a 68% subsidiary of Hitachi, Japan, is among the top air-conditioning companies in India with an installed capacity of 250,000 units per year. It manufactures high technological home and commercial air conditioners like window AC, split AC, concealed splits, ductables, chillers and specific telecom cooling solutions. To capitalise its brand equity and strong distribution network in India, the company has also ventured in the business of trading in refrigerators and washing machines. Its plant at Kadi, Gujarat, is among the seven Hitachi room air conditioner facilities worldwide. Being a technology driven company, it has introduced several innovative products such as ACE, IOTA, ATOM Square, Takumi etc., which are doing well in the market. Its refrigerator and washing machines sales are also picking up. On the other hand, its commercial air conditioning division is also on rampant growth mainly due to the retail sector and mall culture expanding in a big way. The trend of BPOs and R&D centres also augurs well for the company. Although its June 2008 quarter results were not that encouraging, still it is expected to end FY09 with sales of Rs.525 cr. With PAT of Rs.42 cr. i.e. an EPS of Rs.18 on its equity of Rs.23 cr. At current levels, this share is trading reasonably cheap and can be bought for a target of Rs.180 in the medium-term.
******
Graphite India Ltd. (Code: 509488) (Rs.58.95) is one of the few global players manufacturing graphite electrodes as it is a closely guarded technology. With the present installed capacity of 78,000 tonnes, the company boasts of producing nearly 8% of the total global graphite output. To cater to the rising demand, it is implementing a capex at its Durgapur plant to enhance its graphite electrodes capacity by 10,500 tonnes to be operational by end FY09. Being backward integrated, it has the facility to produce 30,000 MTPA of calcined petroleum coke (CPC) apart from generating 33 MW of power through Hydel and Multi-fuel routes. Further, it is contemplating to enhance its captive power generation by 100 MW in the next two years. Earlier in October 2005, the company raised nearly Rs.175 cr. through the FCCB route, which is yet to be fully converted at Rs.55. Despite being hit by forex losses it posted decent results for Q1FY09 and is estimated to end FY09 with consolidated sales of Rs.1500 cr. with net profit of Rs.155 cr., which works out to an EPS of Rs.9 on its fully diluted equity of Rs.36 cr. with a face value of Rs.2 per share. With a dividend yield of nearly 5%, this is one of the safe picks with a minimal downward risk.
******

Source: Internet (moneytimes)

Intraday Trading Calls for 02nd September

Indian Stock Market may open flat to positive and may see a small but good rally. A Positive closing expected.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GSS AMERICA INFO (274)
Buy Above 276.75 Target 283.65, 290.00
Sell Below 272.10 Target 267.25, 260.00
NU TEK INDIA (205)
Buy Above 207.60 Target 212.45, 218.00
Sell Below 202.45 Target 196.15, 190.00
GUJARAT NRE COKE (103)
Buy Above 103.85 Target 106.50, 110.00
Sell Below 102.10 Target 100.00, 97.00
NEYVELI LIGNITE (114)
Buy Above 115.30 Target 118.35, 122.00
Sell Below 112.45 Target 109.55, 106.00
SINTEX INDUSTRIES (328)
Buy Above 331.20 Target 336.45, 342.00
Sell Below 326.25 Target 321.20, 315.00
RENUKA SUGAR (116)
Buy Above 117.40 Target 120.65, 124.00
Sell Below 114.70 Target 111.65, 108.00

Others for Intraday: HPCL, BPCL, IOC, GAIL INDIA.

Good Luck

Intraday Trading Calls for 01st September

Indian Stock Market may open Nagetive and may see profit booking at rise. A nagetive closing expected.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

KS OILS (72.70)
Buy Above 73.40 Target 75.55, 78.00
Sell Below 71.70 Target 69.25, 66.00
CAIRN INDIA (249)
Buy Above 250.70 Target 254.45, 258.00
Sell Below 247.65 Target 244.15, 240.00
SEL MANUFACTURING (288)
Buy Above 290.75 Target 296.50, 304.00
Sell Below 285.20 Target 280.25, 274.00
DECCAN CHRONICLE (DCHL) (123)
Buy Above 123.85 Target 126.35, 129.00
Sell Below 122.15 Target 119.55, 116.00
ARIES AGRO (116)
Buy Above 117.20 Target 120.00, 124.00
Sell Below 114.75 Target 112.20, 109.00
ADHUNIK METALIKS (110)
Buy Above 110.70 Target 113.65, 117.00
Sell Below 108.40 Target 106.05, 103.00

Others for Intraday: NIIT LTD, NIIT TECH, SASKEN COMMUNICATION, GMR INFRA.

Good Luck