Short-Med Term Delivery Pick: CHD Developers Ltd.

CHD Developers Ltd. (BSE: 526917)
CMP : Rs. 15.30/-
52 Week High : Rs. 37.40/-
52 Week Low : Rs. 11.20/-
Face Value : Rs. 2/-
EPS : Rs. 3.5+ (approx)
P.E.: 5.00
200 Days Simpal Moving Average : Rs. 16.87/-

News: CHD Developers Ltd has informed BSE that the Company has entered into a development agreement to develop a plot of approx 2.5 acres at a prime location in Haridwar. Company is planning to construct a residential cum commercial complex first of its kind in Haridwar. Total saleable area will be 275,000 square feet approx. Aesthetic architecture and modern design will provide for complete comfort and a pleasurable residential and shopping experience. The complex will be designed for optimum space utilization for its space owners. Latest fire alarm, fire fighting systems and round-the-clock security systems will ensure complete safety of the complex. The complex will provide a reserved area to accommodate parking needs of residents and visitors.The Company is expecting to complete the complex in coming Two years and expecting to generate revenue of Rs 100-105 crores out of the project.

CHD Developers Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 28, 2008 has allotted 1,00,00,000 warrants and 7,50,000 Equity shares on preferential basis to the allottees belonging to non promoters whose details are given below.

1. Allottees : Bennett Coleman & Co. Ltd- No of Warrants : 25,00,000- Price : Rs 40/-

2. Allottees : Punjab Bulls Investments (P) Ltd- No of Warrants : 75,00,000- Price : Rs 40/-

3. Allottees : DB Corp. Ltd- No of Equity Shares : 7,50,000- Price : Rs 40/-.

Trading very cheap at current level as compare to its peers which are trading at 10 to 50x P.E. Multiples. At least at 10x P.E. multiple it's price should be around Rs. 30/- as company continuesly doing well and can do well in near future. Also bumper results expected of march quarter.

Website: http://www.chddevelopers.com/
Dec. Quarter Profit (Dec 07): Rs. 38.55 Million (Profit rises 25 % QOQ)
Year Profit (March 07): Rs. 91.23 Million (Profit rises 323% YOY)
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 28-32/- (Short - Med term) Rs. 50/- (Long Term)
(Before investing do your own research) (It is recommanded before also at moneybazzar at 17.50/- levels. After that it touched the high of Rs. 37.40)

Stock Idea: Jamna Auto Industries

Jamna Auto manufactures automobile springs, spring leaves and automobile coil springs. Two of its group companies - Jai Parabolic Springs and MAP Springs were merged into Jamna Auto and the current results, reflects this merged performance, which could also explain the spurt in the top and bottomlines.

For the year ended 31st March 2008, the company recorded a very healthy 69% jump in net sales at Rs.471.22 crore. Despite the 62% jump in total expenses, EBIDTA rose by a fantastic 135%. Interest outgo shot up by 118.5% and depreciation rose 108%. Despite this, the company’s PBT rose by an unbelievable 187% at Rs.20.42 crore. And the jump in PAT was phenomenal, it jumped by 219% at Rs.20.14 crore. Apart from the merger adding to the performance, the fact that the company has shifted from conventional leaf springs to high margin parabolic springs

In November 2007, the company acquired Leaf manufacturing facilities of Tata Motors' at Jamshedpur, and has entered into strategic supply arrangement with them. The group would invest Rs 120 crore in expansion. Of this, Rs 75 crore would be invested in expanding the Jamshedpur plant, which would house the plant and machinery bought from Tata Motors.

It is investing another Rs.10 crore in a greenfield plant at Uttaranchal and another Rs.15 crore in an R&D centre in Chennai. Clearwater Capital Partners — a private equity player — has invested Rs.40 crore of equity in the company in June 2007 at Rs.72 per share. It holds a 24.15% in the company.

Currently quoted at Rs.65, hold on to this stock.

Markets Today

Markets Snapshot
Markets slip on back of high inflation & crude prices.
Markets started slipping in the noon session; Closed at the lowest point of the day
Negative cues from Asia & Europe
Sensex ends down 343 pts at 16737; NIfty down 99 pts at 4982
CNX Midcap Index down 2.5%, Nifty Junior down 3.4%, BSE Small-cap Index down 2.1%
BSE FMCG only index which closed in the green
BSE Oil&Gas down 4.7%, witness major selling; Essar Oil Down 9.6%, Reliance Ind down 5%; Chennai Petro Down 7.3%
BSE Realty down 2.95%; Unitech down 4.5% & HDIL down 7.7%Banks sees selling across the board
Bank Nifty down 2.9%; Pnb down 4.8%, Yes Bank down 3.8%, Icici Bank down 2.8%
Kotak Bank down 5.7% ((sold off post results))
Index losers; DR Reddys , ACC , REL all down over 4% , Hindalco , HDFC Bank , TCS , Suzlon down over 3%
Index gainers; ITC up 1.6%, Bharti up 1.5% & Wipro up 0.86%
Non Index Losers: Rel Cap down 7.1%, RNRL down 5.7%, Jaiprakash Asso down 6.4%, Bombay Dyeing down 7.9%, Nagarjuna fert down 7.1%
NSE Advanve Decline at 1:5
Total market turnover at Rs 55403 cr VsRs 47583 cr on Thursday
Total NSE F&O turnover at Rs 34951 Vs Rs 28944 cr on Thursday

Markets This Week
Sensex down 5%, Nifty down 4.8%
CNX Midcap Index down 4.6%, BSE Small Cap down 3.8%
Nifty Losers - REL down 12%, BHEL down 10%, L&T, SAIL down 9% each
BSE Realty Index down 9.6%, DLF down 13%, Unitech, GMR Infra down 10%
BSE Bank Index down 7%; SBI down 8%, ICICI Bk down 7%, HDFC Bank down 6%
BSE Oil & Gas Index down 5.6%; HPCL down 8%, BPCL down 7.6%

Intraday Trading Calls for 9th May

Market may open nagetive but recovery expected later and may close positive with good gains.

Today's Intraday Trading Calls:

ICICI BANK
MOSER BAER
HDIL
VIDEOCON INDUSTRIES
INDIA CEMENT
J KUMAR INFRA (JKIL)

For Levels and Targets download the file by CLICK HERE.

Good Luck