Stock Idea: Bayer Cropscience

Bayer Cropscience is one of the world's leading innovative enterprises in crop protection, seeds, biotechnology and non-agricultural pest control. It has posted one of its best performances for Q1FY10. The jump in net sales percolated down to all levels thus giving a winning quarter. Usually, given the cyclical nature of its business, its lean period is Q4 and best is Q1 and some effect of this rubs off into Q2. And looks like this cycle have been excellent for current Q1.

Net sales were up 21% on a YoY at Rs.601.77 crore. In terms of operating margins, Q2FY09 was its best at 20.11% and current Q1 comes close on its heels at 15.63%. It was at 12.33% in Q1FY09. Net profit surged by a smart 61% at Rs.56 crore. Once again in terms of NPM, Q2FY09 tops the list at 11.73% as against 9.31% in current Q1. It is being noted here that Q4FY09 was the worst quarter for the company where NPM had slipped below one percent at 0.84%.

The Bayer group has a 71.11% stake in the company and institutional holding is 13.03%, in which LIC holds 4.17%.

The acquisition of Aventis CropScience has helped catapult Bayer CropScience to one of the premier organizations in the world in the areas of Crop Protection, seeds biotechnology and non-agricultural pest control.
Stay invested and one can buy on every decline.

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

Intraday Trading Calls for 02nd September

Indian Stock Market may open flat to negative and remains very volatile 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
ROLTA INDIA	Buy Above	173.60	178.25	184.00
	Sell Below	170.45	166.20	162.00
BRFL	Buy Above	204.70	210.20	216.00
	Sell Below	201.35	196.30	190.00
UNITED PHOSPHOR	Buy Above	169.20	174.45	180.00
	Sell Below	166.15	161.55	156.00
APTECH LTD.	Buy Above	258.25	264.15	272.00
	Sell Below	254.35	248.65	242.00
ICSA	Buy Above	208.55	214.20	221.00
	Sell Below	205.15	200.10	194.00
GMR INFRA	Buy Above	138.75	143.10	148.00
	Sell Below	137.40	134.15	130.00
CRENES SOFTWARE	Buy Above	45.50	48.20	51.00
	Sell Below	44.10	42.20	40.00

Buy Ankur Drugs & Pharma Ltd. (531683) CMP Rs. 158/- Short Term Target Rs. 210/-. Medium Term Target Rs. 250+.

GOOD LUCK

Investment Call:Uflex Ltd.

Uflex Ltd. (Rs.98.20), the flagship company of the Flex group, is a flexible packaging company that manufactures multilayer laminated rolls of plastics, paper, cloth or metal foils that are used separately or in combination for various packaging applications. It also manufactures printing inks and adhesives and has four subsidiaries, Flex America Inc, Flex Middle East FZE, Flex Europe Pvt. Ltd., U Tech Developers Ltd. and Uflex Packaging Inc. Uflex reported encouraging performance for FY09 as its consolidated sales shot up to Rs.2028 cr. from Rs.1710 cr. while profit before depreciation & tax flared up to Rs.320.53 cr. from Rs.211 cr. and net profit shot up to Rs.186.5 cr. from Rs.110 cr. in FY08 yielding an attractive EPS of Rs.28.6. This profit was after providing depreciation of Rs.100.28 cr., thus cash EPS for FY09 was around Rs.44. For Q1FY10, it earned net profit of Rs.50.21 cr. on sales of Rs.506 cr. after providing for depreciation of Rs.26 cr. recording a quarterly net EPS of Rs.7.7 and cash EPS of Rs.11.7 respectively. The Indian packaging market has an average growth of 14-20% per annum, which is expected to double in coming years with the change in consumer needs and large scale retailing. Modern day packaging is different from mere 'packing' of yester years. In today's visual society, the survival of a product hinges on smart packaging. The highly visible and catalytic role of packaging is apparent by the widespread branding of products given the rapidly changing consumer preferences.
The following are the key growth drivers for future growth of the flexible packaging industry:
Increasing industrialisation and growth of the organised retail industry in the world.
Increasing number of FMCG brands that need sophisticated flexible packaging.
Increased export of ready-made garments packaged in plastic bags on relaxation of textile quotas internationally.
Uflex has 9 manufacturing units in India and 4 units abroad to encash on the increasing demand. It also has various expansion plans in advanced stages the benefit of which will reflect in coming years. At present, the Uflex stock is trading cum 40% dividend, which gives an attractive dividend yield. The company has also bought back its FCCB when the market price was low. Moreover, there is regular promoter buying in the stock from the market over the last few quarters, which indicates their confidence in its future outlook. Around 26 May 2009, the stock was trading at Rs.96 level when the Sensex was around 13700. Thus the stock has consolidated well in the last three months. Besides doing well in its core business, Uflex has good surplus land at its Noida unit. In future, if it shifts its manufacturing facility to some other place, it will gain huge amounts from the sale of this surplus land. Investors can safely accumulate this stock for long-term targets of Rs.175 over the next 6-8 months.

Source: Internet (Moneytimes By Kukku)

Stock Idea: Cosmo Films Ltd.

Cosmo Films Ltd. (Code: 508814) (Rs.103) is one of the dominant players in the Bi-axially Oriented Polypropylene Films (BOPP) market in India with a 23% market share and also one of the lowest cost producers of BOPP films in the world. It currently has an installed capacity of 56000 MTPA of BOPP films, 21000 MTPA of thermal lamination films and 3000 MTPA of metallized films. Importantly, it is the only Indian player to manufacture thermal laminated films which is a high margin business. Despite the demand supply mismatch, the company is working at 100% capacity and is further expanding its BOPP capacity to 136000 MTPA and metallized films to 10500 MTPA in phases. Last year, it also set up a 12000 MTPA coating film unit last year. Recently, it acquired GBC, a USA based company for Rs.80 cr. This company supplies thermal laminated films and equipment to Europe, North America, Japan and the Pacific region and has sales of nearly Rs.500 cr. After this acquisition, Cosmo has emerged as the
global leader in the thermal laminated segment. However considering its not so encouraging performance in Q1FY10 and fall in BOPP prices, it may end FY10 with sales of Rs.650 cr. and profit of Rs.35 cr. i.e. EPS of Rs.18 on its current equity of Rs.19.40 cr. Also, the promoter group did not opt to convert 31 lakh convertible warrants, which were allotted to them at Rs.107 in February 2008.

Source: Internet (Moneytimes)

Stock Idea: Accurate Transformers Ltd.

Accurate Transformers Ltd. (Code: 530513) (Rs.76.50) manufactures power and distribution transformers ranging from 1 MVA to 40 MVA - in up to 220 KV class and plans to manufacture higher capacity power transformers of 160 MVA in the near future. It also has expertise to carry out rural electrification projects that involve setting up electricity distribution in remote areas including laying of lines, poles and substations. As per the management, the company is working at very low capacity utilisation due to high working capital requirement and shortage of funds. Commanding a gross block of Rs.11 cr., the company has 5 manufacturing plants with an installed transformer production capacity of 8000 MVA, of which 3000 MVA is out Haridwar in Dehradun, which is relatively new and enjoys income tax and excise exemptions. For FY09, its sales improved by 10% to Rs.195 cr. but net profit was flat at Rs.7 cr. leading to an EPS of Rs.24 on its tiny equity of Rs.3 cr. For Q1FY10 also, it recorded 10% rise in sales and net profit at Rs.27 cr. and Rs.1.10 cr. respectively. Ironically, the company seems to have borrowed funds at high interest rates resulting in substantial interest cost that eats up over 50% of its operating profit. Accordingly, for FY10 it may clock a turnover of Rs.210 cr. with net profit of Rs.8.5 0cr. i.e. an EPS of Rs.29 on its current equity. Buy for short-term gains.

Source: Internet (Moneytimes)

Stock Idea: Mazda Ltd.

Although Mazda Ltd. (Code: 523792) (Rs.66) is not expected to record spectacular growth in the coming year, it is still a value buy at current levels. For FY09, it reported 35% rise in sales to Rs.80 cr. and 40% increase in PAT at Rs.9.25 cr. posting an EPS of Rs.22. It is among the few engineering companies in the world that manufacture very specialised, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly, its product profile is segmented into vacuum systems, valves division, air pollution control equipments, crystallisers and evaporators. Notably, it has a technical collaboration with the world renowned Croll-Reynolds Inc. USA, which holds 12% stake in the company. Besides engineering, it also has a biotechnology division dealing in carbohydrates, rare sugars and other bio-chemicals. Lately, it has diversified into manufacturing and exporting soft drink concentrates, essence, jams etc. in a small scale. However for Q1FY10, it recorded 15% fall in sales and profit to Rs.15 cr. and Rs.1.70 cr. respectively. Accordingly, it may end FY10 with sales of Rs.80 cr. and net profit of Rs.8.75 cr. i.e. an EPS of Rs.20 on its tiny equity of Rs.4.26 cr. Fundamentally, the company is on a strong footing with very low debt:equity ratio and good reserves. At an enterprise value of Rs.30 cr. and P/E multiple of 3 times, this scrip is trading fairly cheap. Considering the market sentiment, one can even buy it for good short-term gains too.
Source: Internet (Moneytimes)