Investment Idea: Bhagyanagar India, FCS Software

Bhagyanagar India (31.00) :- Including its subsidiaries, boasts of having around 175 acre of land bank valued at more than Rs 600 cr. It includes 25 acres of prime land in Gachibowli area Hyderabad , 50 acres in SEZ, Chennai, 25 acres near new Hyderabad airport etc. To ride the boom, company has aggressively forayed into real estate development, focusing mainly on housing and construction of IT Parks, SEZ etc. Recently, it has formed a SPV along with IL&FS Infrastructure for undertaking, various infrastructure and entertainment projects such as theme parks, special economic zone, industrial parks etc on a large scale basis. On the other hand, it has successfully commissioned the wind power project with an installed capacity of 9 MW in Karnataka last fiscal. At the same time its traditional copper & telecom products business is doing okay. Notably, of late company has formed a joint venture with group company for setting up of solar photo voltaic cell and module project and has even been allotted 25 acres of land in the Fab City, Hyderabad. Although promoters are shaddy, but being an operater driven scrip it has potential to give handsome return from here on.

FCS SOFTWARE SOLUTIONS LTD (Rs 96.00) (Code : 532666) FCS has been managing IT Consulting Services, E-Learning and Digital Content Management, Application Helpdesk and Infrastructure Management Services for its 118 clients since 14 years. With over 900 employees, company has development centres in Delhi, Chandigarh, Chennai and Dheradun. Its top 10 clients contribute 40% of total revenues. Average order size of 10 clients is USD 1.50 mn each. Its main clients include GE, Canon, AIG, Merck, Parker, Dominos etc. Segment wise revenue contribution is as under: Application Support (10%) E Learning (25%), Infrastrucuture (10%), IT Consulting (55%) Company has been paying 25% dividend has been growing almost 30% CAGR. FCS Scope of Work can include: 1. Outline the solution and definte the solution architecture 2. Develop prototypes for demos to users 3. Design, Build and Validate solution against requirements 4. Rolling out solution across the organisation 5. Continuous support for the solution

APPLICATION PORTFOLIO MANAGEMENT :- FCS wokrs with clients to maintain their IT Application on T&M basis or FPFT basis. FCS replicates application environment based on project needs or will use secure VPN connections to directly log in client servers, Set Centres of Excellence to leverage talent skilled in a set of specific technologies and domains and set up Lab Model for temporary deployment of resources for one time knd of work. IT Consulting aer one of the stable revenue generators for FCS which contributed 81.88 cr revenues in 06-07, with revenues of 19.73 lacs per employee and generated Net Margin of 11.39 cr

INFRASTRUCTURE MANAGEMENT SERVICES :- It includes Data Centre management, Network management, Technical support, Infrastructure consulting and Application Operations support. In 06-07, it generated revenues of 15.88 crs with revenues of 31.15 lacs per employee and NET margin of 5.07 crs. E-Learning Services :- This division builds AICC/SCORM compliant
multimedia and multi-lingual content, Learning Management Systems, Learning Content Management Systems and Assessment Engines to manage all corporate training needs: Focused on training programs for employees, partners and End users Training portals, LMS platform Consistent Training means Consistent services Company deployes ADDIE methodology to build state of art training programs that dont become obsolete. In 2006-07, this division contributed 38.39 cr worth revenues and Net margin of 6.90 crs. Revnues generation per employee was Rs 18.28 lacs Stock is trading at : 1. 4.15XFY08E EPS, 2. 3.26XFY09E EPS With established track-record of this dividend paying company, valuations deserve to be much higher. Perhaps this is the cheapest stock in mid-cap IT Segment. Company is issuing 25 lac warrants to some big investors. Share price is likely to appreciate minimum 50% in next 6 months and can even double in 12 months if markets are stable without panic situation. Investment strongly recommended.

Source: internet (Smart Investment)

Market Whispers

Natco pharma (Rs. 71.00) (Code 524 816):- USA based Mylan Corporation has acquired the marketing and distribution right of products of Natco Pharma’s Glatiramer and signed an agreement for the license of the same has resulted increase in volume by six time in the scrip and price has jacked up. The trend is expected to continue in the scrip.
PSL (Rs. 42.00) (Code 526 801):- The company has succeeded in bagging an order of Rs. 2000 crore from Gail India for itspipeline project of Vijaypur-Dadra- Bavna. The company was given order to supply carbon steel pipes. PSL’s total order book has increased to Rs. 6000 crores with
new order from Gail. The company has to complete the work as per the order of Gail during the FY 2008-09, which will help the PSL to improve its top line and bottom line and change the whole complexion of the financial performance of the company.
ABG Shipyard(Rs. 418.00) (Code 532682):- The leading company of shipping sector of the country has received order of Rs. 305 crores from Italian company Manvi Spa of instruments of anchor handling, towing, rescue and offshore supply. Order book of the company has fattened to reach to the level of Rs. 8500 crores. The stock is once again in limelight after a crash of 30 per cent during last one month.

Boch Chassis (Rs. 567.00) (Code 505185):- Meeting of board of directors was conveyed to discuss the issue of delisting of the stock of the company. Offer to the share holder is expected to be at higher price than the current marketprice may provide current to the counter in days to come.

Alembic (Rs. 52.00) (Code506235):- The pharma sector company is on the verge of selling around 50 acre of land . The company has planned to use the fund raised by selling the land for expansion project.

RPL (Rs. 179.00) (Code 532743):- Mukesh Ambani has announced commissioning of new refinery in Jamnagar with in six month at the capital expenditure of almost 50 per cent in comparison to other refineries of the world has given boost to the volumes and price of the stock.

Ranbaxy’s Impact (Rs. 566.00) (Code 500359):- Ranbaxy has penned a deal diachi has resulted in to advantageous for its other group companies in southern states. Ranbaxy has big stakes in the companies. The companies includes Fortis health care (Rs. 82), Zenetech Labs (Rs. 109), Kerbs Bio (Rs. 51) and Orchid chemicals (Rs. 248) and Jupiter Bio (Rs. 137).
Ispat Ind. (Rs. 28.00) (Code 500305):- Due to bearish trend in secondary market the stock price had crashed. But looking at the huge expansion projects of the company investors making investment at current market price are likely to earn good return on the investments.

Confidence Petro (Rs. 17.00) Code 526829):-The company is connected with the production of Gas Cylinder has good reputation all over the Asia. New policy will prove to be advantageous for the company.
Fertilizers and Chemicals (Rs. 32.00) (Code 524244):- Prediction of normal monsoon by meteorological department and move to increase subsidy for the fertilizer sector has provided momentum to the stock price of companies connected with the sector. Company has attractive valuation in comparison to the other companies of the sector may lead to swift upward revision in the stock price.
India Foils(Rs. 19.00) (Code 509684):- The Kolkatta based company’s stock price has touched the peak level of Rs. 30. A Delhi based operator is active in the scrip. The scrip price may touch level of Rs. 25 in short duration.
Crazy Software (Rs. 4.88) (Code 524 388):- The Chhatisgarh based company is shifting it’s headquarter to Tamilnadu. Considering the movement on the counters of software companies investors have a chance to earn good return on the investment.

Prajay Engineering (Rs. 138.00) (Code 531746):- A Mumbai based broker is buyer in the scrip as the scrip price has dipped by almost 65 per cent from the peak price of 52 weeks. Price rise of Rs. 20 to 25 is expected in the scrip in short term.

RNRL(Rs. 90.00) (Code 532709):-HNI are investing heavily in the Anil Ambani group company. The scrip price is likely to surpass the level of Rs. 100 in short duration.
Spice communications (Rs. 62.00) (Code 532863):- Idea Group is planning to take over stake of Modi group at a price of Rs. 78 per share. The news may follow with the offer of buying the scrip at higher price in comparison to market price.
Birla Power (Rs. 27.00) (Code 517001):- The stock has book value of Rs. 44 and company has turnover of Rs. 200 crores. The valuation of the stock is likely to attract the investors.
Deccan Gold (Rs. 35.00) (Code 512068):-A south based operator has once again become active on the counter.

Source: Internet (Smart Investment)