Wednesday, February 18, 2009

Investment Pick: Patel Airtemp

Patels Airtemp (Rs. 35.00)


BSE Code : 517417

Market Cap : Rs. 18 Cr.

TTM EPS : Rs. 13

Pmt Stake : 36 %

52W H/L : Rs. 81/25

P/E Ratio : 2.7x

Dividend : 15 %


Incorporated in 1973, Patels Airtemp (India) Ltd (PAL) is one of the leading designers, manufacturers and suppliers of the complete range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, columns & air-conditioning and refrigeration equipments like coils, exhaust air units, fan coils, fans & blowers, condensers & chillers etc. It also makes Dow therm condensers, inter coolers & after coolers, oil coolers, air heaters, HP & LP feed water heaters, LPG bullets etc. All these industrial process plant equipments are supplied to leading industrial sectors like power projects, refineries, fertilizers, cements, steel, aluminum, automobile, petrochemicals, engineering, pharmaceuticals, textiles, paper, chemical etc. Importantly, the company

Also undertakes turnkey projects in the highly specialized and related area of Humidification, Ventilation and Air-Conditioning i.e. HVAC. Its expertise in HVAC project includes industrial air conditioning, pharmaceutical plant air conditioning, textile humidification, and pressurization and ventilation systems, evaporative

Cooling systems etc. Besides, it also undertakes project work for air-conditioning multiplexes, offices, educational institutions, halls, theaters, hospital etc.

Importantly, in the past PAL has successfully executed several orders of Nuclear Power Corporation of India.

Hence it is expected to good orders from NPCIL in future due to signing of the Indo-US nuclear deal. Currently it boasts of having unexecuted order in hand to the tune of Rs 50 cr including Rs 16 cr order bagged from Essar Oil in Sept 2008. Recently, company reported good set of nos for the Dec'08 quarter, as it registered 30% rise in sales as well as NP to Rs 13 cr & 1.75 cr respectively. Even for nine months, the sales have increased by 35% Rs 49 cr whereas it saw a 40% jump in NP to Rs 5.20 cr thereby posting an EPS of Rs 10 till date. Accordingly it may end FY09 with sales of Rs 60 cr and PAT of Rs 6 cr leading to an EPS of Rs 12 on equity of Rs 5 cr. It may maintain its 15% dividend which gives a yield of 5% at CMP. For FY10 it can report a topline of Rs 75 cr and bottomline of Rs 7.50 cr i.e EPS of Rs 15 on current equity. Although it's a small company with a gross block of less than Rs 15 cr but the share price can easily double within 9~12 months. Investors are recommended to buy at current levels.

Source: Internet (SmartInvestment)

Multibagger: HBL Power Systems

HBL Power Systems (Rs. 110.00)

BSE Code : 517271

TTM EPS : Rs. 39

Market Cap : 275 Cr.

Pmt Stake : 63 %

52W H/L: Rs. 420/96

P/E Ratio : 2.8x

Dividend : 15% (F.V. 2)

Founded in 1977, HBL Power Systems Ltd (HBL) is an acknowledged leader in design, development and manufacture of industrial & specialized batteries, allied electronic products and DC (direct current) systems in India. DC power systems are used across the world for a variety of application where the traditional power supply system cannot be sustained/ supported. It is specifically required in mobile (nonstationary)applications like rail coaches, aviation etc. Therefore company focuses mainly on five key sectors namely telecom, aviation, railways, defense and other industrial segment including oil & gas, power, petroleum, steel etc.

A. Batteries :- This is the core business of company deriving more than 90% of total revenue. HBL is a technology focused manufacturer of several ranges of specialized application batteries i.e. nickel cadmium (pocket, fibre, and sintered plate), lead acid (VRLA, Tubular, LMLA), silver oxide zinc, lithium, thermal, etc.

B.Railway Electronics :- Traditionally HBL has been sup- plying various batteries for train lighting, air conditioned coaches, locomotives, signaling and communications. But off late, company has designed and developed wide range of microprocessor based signaling products and power systems to cater to the needs of Indian Railways. It now offers integrated power supplies for railway stations and does turnkey signaling works contracts including design, installation and commissioning.

C. Defence Electronics :- Although HBL derives hardly 5% revenue from this division but it boasts of supplying several specialized, tailor made batteries to the Army, Navy and the Air Force. EPS of Rs 33 on equity of Rs 24.30 cr. Incidentally company has a debt of Rs 350 cr leading to a debt equity ratio of 1.2x times. In order to fund its expansion, company had planned a preferential allotment as well as a right issue, but due the stock market sentiment, had to shelve it off. Importantly, with telecom, power, railway & defense being its focus market, HBL isn't much affected by the ongoing recession. And in case if it witnesses any

slowdown in domestic demand it can always cater to international market and increase its export revenue which is currently around 10% of total sales. Considering all the factors investors are strongly recommended to buy at current levels with a price target of Rs 240 in 12~15 months.

Source: Internet (SmartInvestment)

Intraday Trading Calls for 18th February

Stock Market India may open flat to Negative but recovery expected from lower levels and a flat trading expected today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

AXIS BANK

Buy Above

403.75

411.40

420.00

Sell Below

395.15

388.45

380.00

BARTRONICS

Buy Above

84.65

88.45

92.00

Sell Below

82.40

79.20

76.00

REL CAPITAL

Buy Above

384.60

392.45

400.00

Sell Below

376.35

370.15

364.00

HEXAWARE

Buy Above

32.10

34.05

36.00

Sell Below

30.50

29.15

27.00

IRB INFRA

Buy Above

110.05

114.75

120.00

Sell Below

107.20

103.45

100.00

GMR INFRA

Buy Above

80.10

82.65

85.00

Sell Below

78.40

76.25

73.00

VOLTAS

Buy Above

40.55

42.60

45.00

Sell Below

38.80

37.10

35.00


GOOD LUCK

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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