Stock Idea: Nava Bharat Ventures

Today, Nava Bharat Ventures is known more as a power company with focus on ferro alloys and sugar. Its total installed power capacity is at 237 MW in AP and Orissa. In Ferro alloys, its capacity is 125,000 MT of manganese and 75,000mT of chrome alloy. In sugar, it has a 3500 TCD integrated plant.

To mitigate itself from being dependent on just one sector, the company got into power and sugar and that has been a very wise decision. It is power and sugar which has helped the company face the rough weather in FY09, especially in ferro alloys, where lack of demand since the end of Sep'08, forced the company to curtail production and shut its ferro chrome furnace.

And though the pressure of this has been reflected in the performance of Q4FY09, the overall performance for FY09 was good. In the last quarter of FY09, the topline and the bottomline took a dip. The revenues for the quarter fell by 12.14% to Rs 303.36 crore and net profit declined by 16.13% to Rs.108.54 crore. Power segment sales rose by 92% while ferro alloys sales was down 74%.

For FY09, revenues of the company increased by 43.43% to Rs 1,350.05 crore and its net profit increased by a whopping 62.84% to Rs 520.57 crore. The company posted a forex loss of Rs.29.17 crore. It also bought back 1.93 million equity shares of Rs 2 each for Rs 23.26 crore and extinguished equal number of equity shares. After this, the paid up capital has come down to 7.59 million equity shares of Rs 2 each.

Power sales rose by 91.4% for FY09 thus taking a leading position in the segmental performance. Ferro alloys, thanks to the good realisations during the first half managed to end the year on more or less at same levels.

The company plans to go full throttle with its power projects and has plans to set up a 1,050MW merchant power plant (50: 50 JV with Malaxmi group) and another 64MW at its existing location in Orissa. Capex envisaged is Rs.4700 crore ad is expected to be commissioned by FY12. It has been allocated Rambia coal mine in Orissa with estimated reserves of 112 million mt. It also plans to put up another power plant in Andhra Pradesh.

This remains a good long term stock as it is power which will power the company in the coming months.

Source: www.premiuminvestments.in (S P Tulsian)

Intraday Trading Calls for 29th June

Stock Market India may open flat to positive and remains flat with very high volatility for the day today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
BARTRONICS	Buy Above	182.60	188.55	195.00
	Sell Below	179.70	175.10	170.00
GMR INFRA	Buy Above	137.80	142.45	148.00
	Sell Below	135.10	131.25	125.00
IRB INFRA	Buy Above	154.60	160.15	165.00
	Sell Below	152.40	147.60	142.00
SESA GOA	Buy Above	194.25	200.10	208.00
	Sell Below	190.35	185.30	180.00
CAIRN INDIA	Buy Above	235.75	241.35	248.00
	Sell Below	232.45	227.55	222.00
VIDEOCON INDUSTRIES	Buy Above	183.50	188.75	195.00
	Sell Below	180.10	175.45	170.00
POWER GRID	Buy Above	111.70	116.80	122.00
	Sell Below	109.40	105.20	100.00

GOOD LUCK

Stock Idea: Man Industries

Man Industries (India) ltd. (Rs. 45.00)

BSE Code : 513269

TTM EPS : Rs. 9

Market Cap : 225 Cr.

Pmt Stake : 48 %

52W H/L : Rs. 84/22

P/E Ratio : 4.4x

Dividend : 30% (F.V.5/-)

Book Value : Rs. 69

Established in 1988 as an aluminium extruder, Man Industries India Ltd (MIIL) today is one of India's largest producers and exporter of submerged arc welded (SAW) pipes. Being led by dynamics personalities like Mr R.C. Mansukhani and Mr. J.C. Masukhani, MIIL is the flagship company of reputed MAN group which has diversified business interest in India, USA, UK and UAE. Within the last ten years, company has multiplied its production capacity 20x times, from 50,000 tonne in 1998 to 1 million tonne currently. It specializes in production of large diameter Longitudinally SAW pipes & Helically (Spirally) SAW pipes. LSAW line pipes are generally used in transportation of oil and natural gas in high temperature and pressure applications in refineries and petrochemical units apart from finding application in fertilizers and dredging industry. On the other hand HSAW pipes are used under low pressure condition for transportation of oil, water, sewerage, agriculture and in construction sector. Company has the capability to manufacture LSAW pipes with outer diameter ranging from 16~60 inches and wall thickness of 6~38 mm upto maximum pipe length of 12 mtrs. Whereas for HSAW it can make pipes having 16~84 inches of outer diameter upto maximum length of 18 mtrs. Infact it is the only company in India to manufacture 18 mtr long HSAW pipe and up to 30 mm thickness in X-70 grade steel. Besides manufacturing, MIIL also has the in-house processing facilities for all types of Anti-corrosion coating such as 3LPE, FBE, Internal Epoxy etc and cement mortar coatings. And among the recent developments MIIL has diversified into real estate & infrastructure development in a small scale thru a subsidiary "Man Infraprojects" and has also hived off the extrusion business into "Man Aluminum – a separate listed company. Financially, MIIL had raised around Rs 200 cr in May 2007 thru FCCB route to set up a plant in USA. But now as the company is not proceeding with that plan and also doesn't has any other major capex plan, it has decided to buyback the FCCB thru the unutilized amount and thru internal accruals. This will prevent the equity from huge dilution which would have been detrimental for the existing shareholders. Incidentally, due to high conversion price and adverse market sentiment, not a single bond has been converted into equity, despite the conversion price being revised downward couple of times. Importantly, promoters have increased their stake thru creeping acquisition as it stands to 48% against 44% a year back. Secondly, few days back they have also taken preferential allotment of 25 lac warrants to be converted into equity @ Rs 35 per share. With an expected EPS of Rs 11 and current book value of Rs 70, company is available fairly cheap at market cap of little over Rs 200 cr. Investors are strongly recommended to buy at current levels for 50% gain within a year.

Source: Internet (SmartInvestments)