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.
Monday, September 8, 2008
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.
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
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
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