Thursday, June 4, 2009

Stock Idea: Prakash Industries

Prakash Industries has posted a set of flat results for the year ended 31st March 2009. On a 22% rise in net sales, its expenses soared 28%. It managed to maintain its EBIDTA at the same levels as FY08. Interest outgo rose 46% and though it managed to reduce depreciation, PAT before exceptional item was down 6% at Rs.198.03 crore. After adding up an exceptional gain of Rs.6.13 crore, its net profit for the year was flat at Rs.204.16 crore, up by just over 1% over FY08.

Though sales volume rose over 20% and the company reported its highest ever production, it has not got translated into better realisations, which is reflected in the profit margins. OPM for FY09 was down at 19.77% compared to 24.05% in FY08 and NPM was down at 13.38% as against 16.10% in FY08.

The performance of the wire rod manufacturing unit at Raipur, Chhattisgarh has been good as the unit operated more than its rated capacity contributing significantly to the bottom line. The company has commissioned its 25 MW power plant during the year which has taken the total power generation capacity of the company to over 100 MW. This will help bring down the costs in the current fiscal.

The company is already in the process of doubling its steel making capacities in the entire chain of integrated steel operations. Encouraged by the performance of the existing wire rod mill the company has taken steps to further augment its capacity wire rod production capacity. In addition, one of the existing mills is being modernized to expand its product mix to enable it to manufacture TMT bars as well, which is expected to be completed by August this year. All these expansion plans are expected to increase the present volumes by more than 50% in the ensuing year. and the company is expected to maintain this growth momentum in the future years also. The company is taking steps to get the iron ore mines in Chattisgarh as well as in Orissa operational in second half of FY10. In addition, Madanpur coal block allotted to the company in JV with other companies is expected to be operational by end of the current financial year. This shall cater to the increased coal requirement of the steel and power operations of the company.
Source: www.premiuminvestments.in (S P Tulsian)

Corporate News

M&M and Tata Motors figure amongst the global list of firms being considered by General Motors for a possible sale of small car brand Saturn. (ET)

Suzlon is planning to raise Rs6bn from private equity investors to fund the acquisition of RE Power. (ET)

Tech Mahindra is looking to pre-pay Rs3bn loan taken by Satyam in February 2009. (ET)

Tata Motors has bagged an order to supply 4,689 buses for the JNNRUM project. (BL)

DLF has put its Andheri (Mumbai) project on the block. (ET)

GVK Power is planning to raise Rs25bn via the QIP route. (ET)

Reliance Industries has stopped exporting petroleum products to Iran. (ET)

Reliance Industries' German textile arm Trevira has filed for bankruptcy. (ET)

BHEL bags Rs3.75bn order for installing two gas turbines generating unit in Oman. (ET)

NHPC likely to float Rs16.7bn IPO in August 2009. (BS)

Union Bank eyes business of Rs3trillion in FY10. (BS)

Cadila aims US$1bn sales in FY11. (FE)

Anand Mahindra ceased to be a promoter of Kotak Mahindra Bank after reducing his stake to 3.68% from a peak of nearly 15%. (ET)

Tata Power to generate 5MW from geothermal, solar plants in Gujarat. (BL)

HPCL plans to invest Rs6.1bn in two sugar mills it has bought in Bihar to manufacture Ethanol. (BS)

LIC Housing Finance plans to raise capital by issuing 10mn shares through QIP route. (BS)

Government has kicked off disinvestment process by putting up Indian Telephone Industries on the block. (ET)

Religare rights issue price may be raised to Rs400. (ET)

Pantaloon Retail has delayed its restructuring plan as it awaits a favorable FDI policy. (ET)

Aptech sells stake in China joint venture company. (BL)

Kinetic Engineering bags an order from European auto major. (BL)

Network 18 to raise Rs1.2bn through preferential allotment of shares to Asian private equity firm SAIF Partners. (BS)

SEBI has cleared Rs160mn open offer for Spice Mobiles. (FE)

TVS Motors arm to venture into car accessories business. (FE)

Source: indiainfoline.com

Intraday Trading Calls for 04th June

Stock Market India may open flat to Negative but may some recovery from lower levels and close flat to positive.

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

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

GMR INFRA

Buy Above

174.25

178.55

184.00

Sell Below

172.10

168.35

162.00

SESA GOA

Buy Above

167.80

173.25

178.00

Sell Below

165.10

161.35

156.00

IGL

(532514)

Buy Above

139.60

144.55

150.00

Sell Below

137.40

133.15

130.00

NILKAMAL

(523385)

Buy Above

96.20

101.75

108.00

Sell Below

94.35

90.55

86.00

GOKUL REFOIL

(532980)

Buy Above

272.25

280.45

290.00

Sell Below

267.45

260.10

252.00

PSL LTD.

(526801)

Buy Above

160.55

165.70

172.00

Sell Below

158.20

154.35

150.00

FDC

(531599)

Buy Above

47.25

50.10

54.00

Sell Below

46.10

44.15

41.00

Keep an Eye on K S Oils and Ruchi Soya also.

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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