Stock Idea: CHI Investment Ltd.

Investment Rationale: Scrip is trading at 81% discount to its valuation of only quoted investments.
CHI was originally incorporated as a Public Ltd. Company and took over the Investment Undertaking of CEAT, pursuant to a scheme of arrangement. CHI is holding a varied investment portfolio consisting of both listed and unlisted companies which are in diversified sectors like power supply, technology, power transmission, plantation, entertainment etc.
CHI derives its entire income from dividends received from these companies. For Q1, company has PAT of 2.60 crs. on Equity of 11.46 crs. Dividend income is tax free. Details of its quoted investments are as under:

QUOTED INVESTMENTS:
Company Name No. of Shares Market Value (Rs., Cr.)
CESC 20, 56, 794 74.00
CFL Capital 38, 37, 500. 1.30
Harrisons Malayalam 7, 28, 150. 7.70
KEC International 41, 42, 519. 205.00
Phillips Carbon 19, 03, 114. 28.00
RPG Cables 40, 705, 180. 4.20
RPG Life Sciences 41, 145, 244. 4.20
Saregama India 20, 592.325. 21.00
Zensar Technologies 483, 870, 550. 50.00
Market value of above quoted investments is approx. Rs. 396 crs.. It works out to
Rs. 314/- per share.

Details of unlisted securities is as under:
UNQUOTED INVESTMENTS:
Company Name No. of Shares
Adapt Investments 16,200.
Adorn Investments 17,000.
Bombay Mercantile Co-op. Bank Ltd. 1,666.
Basic Telephone Services 2.
Brabourne Investments 1,52,000.
Brentwood Investments 6, 68,000. (Rs. 100/- each).
Chattarpati Investments 2, 69, 000. (Rs. 100/- each).
Consolidated Investments 35, 90, 000.
Eastern Aviation & Inds. 5, 00, 000.
Hilltop Holdings India 3, 54, 654.
Jubilee Investment & Inds. 44, 692.
Off Shore India 38, 90, 000.
RPG Communications Holdings 66, 35, 000.
SICOM 1, 27, 500.
Spencer & Co. 4, 74, 200.
The Thane Janata Sahakari Bank 10.
Trade Apartments 27, 45, 000.

Yield Investments 43, 45, 000.
B N Elias & Co. 2, 87, 500. (Rs. 100/- each).
Jubilee Investment & Inds. 1, 75, 000. (Rs. 100/- each).
Trikaya Goods Services 5, 00, 000. (Rs. 100/- each).
TheGreater Bombay Coop. Bank 10.
It is not possible to give valuations to above unlisted securities although investments in companies like Spencer, Sicom should command very high valuations. Recommendation: Market value per share is Rs. 314/- whereas CMP is just Rs. 58/-. Thus, scrip is available at 81% discount. Normally, 50% discount is given to the value of investments. In view of same, CHI appears grossly underpriced at present. Further, market value of its quoted investments is likely to grow further in view of:

A) Due to boom in Tea/Rubber Industry, Harrison Malayalam should report better performance.
B) KEC International: Has huge order backlog.
C) Even other companies like RPG Life Science is expected to do better.
If, 50% discount is given to investments of CHI, its share price works out to Rs. 157/-.

Our Price Target: 1) Rs. 80/- in just 1-2 months. 2) Rs. 100-120 in 6 months.

Source: Internet (Valuenotes by Profittrack.com)

Stock Idea: Voltas Limited

Voltas Limited— BUY—146—INR
Sector — Engineering (Diversified)
Regd.Off.— Voltas House A, Chinchpokli, Mumbai, M.H.- 400033
Listed — NSE, BSE.
Company overview—
A Tata Group Company, Voltas is India's premier air conditioning and engineering services provider. It provides engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, climate control, electro-mechanical projects, textile machinery, machine tools, mining and construction, materials handling, water management, building management systems, pollution control and chemicals. The Company has consciously laid emphasis on corporate social responsibility and also on ecology and environment protection. Exemplary corporate citizenship is demonstrated in numerous social upliftment projects, whether independently undertaken or in support of the Tata Council for Community Initiatives. Voltas have capability in the manufacture of room/split air conditioners, industrial air conditioning and refrigeration equipment, water coolers, refrigerators, visi-coolers, freezers, forklift trucks and large water supply pumps. All these products bear the stamp of state-of-the-art automated manufacturing plants resulting in consistently high quality and reduced costs. Company is partnered with international companies such as LG Electronics and Samsung of Korea and Fedders International of USA for 'manufacture only' alliances producing low cost, high quality refrigerators and room air conditioners.
Products & services—
Company involved mainly into the design and manufacture of industrial equipment, management and execution of air conditioning and public work projects, sourcing, installation and servicing of technology-based systems, and representation of global technology leaders, serving diverse industrial sectors and applications. Company operations have been organized into four independent business-specific clusters, namely the Electro-Mechanical Projects & Services, Unitary cooling products for comfort & commercial use, Engineering Agency & Services and Others. Each has its own facilities for market coverage and service to customers.
Electro-Mechanical Projects & Services- Air conditioning & Refrigeration, Electrical, Mechanical & HVAC solutions, Water Management & Treatment
Unitary cooling products for comfort & commercial use-Cooling Appliances, Commercial Refrigeration & Contract Manufacturing
Engineering Agency & Services- Machine Tools, Mining and Construction Equipment Textile Machinery.
Others- Materials Handling Solutions, Chemicals Trading, Engineering Products Trading Civil Construction.
Air Conditioners and Water Coolers: Products include window and split air conditioners, Sensicool air conditioners and water coolers.
Commercial Refrigeration: Products include chest freezers, Deep freezers, upright coolers, visi-coolers, chest coolers.
Air Conditioning and Refrigeration: Voltas has executed installations for different applications including, among others, naval warships and mercantile ships, pharmaceutical production plants, telecommunication and computer facilities, research laboratories, atomic energy plants, power plants, hotels, information technology parks, Hospitals, Air ports, Metro Stations, Petrochemical Plants and many more diverse applications.
Electro-Mechanical Projects: Voltas undertakes turnkey projects in the fields of heating, ventilation and air conditioning (HVAC), mechanical, public health, plumbing, electrical, building power and lighting, low current systems, fire fighting and safety systems, for airports, palaces, five-star hotels, convention centers, district cooling plants, defense establishments, research centers, techno parks, training centers, power stations, railways, hospitals, auditoriums, townships, pharmaceutical factories, textile factories.
Water Management & Treatment: Voltas caters to the vital sector of water management through its principal activity, namely pumping and water treatment projects. Voltas today is established as a total solutions provider for turnkey pumping projects as well as for water, effluent and sewage treatment and water pollution control projects. Besides this, the company also offers a wide range of horizontal split casing pumps manufactured in its works near Mumbai.
Textile Machinery: Voltas is the largest supplier of textile machinery in India.
Mining and Construction Equipment: In conjunction with globally renowned manufacturers, Voltas offers its customers a comprehensive package - proven expertise, long experience, the world's best equipment, and value added product support services.
Materials Handling: Products include diesel engine driven forklift trucks, LPG driven forklift trucks, battery driven forklift trucks, and warehouse equipment.
Chemicals Division: Primary activities are import, indent and distribution of various types of plastics, industrial specialty, fine chemicals and bulk drugs. Besides domestic focus, products like gelatine, ultramarine blue and a variety of agro chemicals are promoted in the export market.
International Collaborations—
Hitachi Limited, Japan, for vapour absorption machines and centrifugal chillers
Standard Refrigeration Company, U.S.A., for direct expansion chillers
Dunham-Bush Incorporated, U.S.A., for screw chillers
Siemens Building Technologies (Asia-Pacific) for building management systems
Ruks Engineering Ltd., Canada, for ozone engineered systems
Costan of Italy for Refrigerated Cabinet Display Unit for hyper market Engineered Systems.
Valuation—
We expect company earnings to grow at CAGR of 20-25% during FY10-14. Current valuations look attractive. At CMP, stock is trading at 10.57 P/E multiple of its FY2010 Estimated EPS. We recommend investors to buy “VOLTAS” with medium to long-term investment horizon.

Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea: Camlin Ltd.

Camlin Limited— BUY—28.80—INR
Sector — Diversified
Regd.Off.— Camlin House, JB Nagar, Andheri (E), Mumbai, M.H.-400059
Listed —BSE (Code—523207).
Company overview—
Company was incorporated on 24th December 1946, as a private limited company with the main object of taking over the running business of M/s. Dandekar & Co., which was founded by late G.P. Dandekar and D.P. Dandekar in 1931 at Girgaum, Mumbai. The Company manufactures stationary products, art materials. The Company was converted into a public limited company on 24th March 1988 and the name was changed to Camlin Ltd. The initial product range of M/s. Dandekar & Co., comprised of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc. which took part in business activities in 1939 and was shifted to Mahim, Mumbai. In 1984 Company diversified its manufacturing and marketing activity into the field of pharmaceuticals, i.e., bulk drugs and formulations at Tarapur. Company acquired a licence to manufacture 42.100 tonnes per annum of bulk drugs such as Diloxanide Fuorate, Mebendzole, Diazepam and Ibuprofen. A plant at Tarapur was set up with an installed capacity of 15,400 tonnes per annum. Company also set up a plant at Tarapur for the manufacture of Hi-Polymer Lead. A technical agreement signed with Pilot Pen Co. Ltd., of Japan. Company delisted its shares from The Delhi Stock Exchange Association Ltd (DSE) with effect from December 11, 2004. Company removed its loss making pharmaceutical operations last year.
Products & Services—
Company started its operations with the product range of ink tablets, fountain pen ink, office adhesives, sealing wax, school chalks, brilliantine, pain balm, etc, Company now manufactures wide range of stationary products, art materials, Crafting, Gifting, Office products and others. Company's products are marketed under the brand names of "Camel" and "Camlin". Its Analytical Laboratory at Andheri is recognised as a public testing house by State Food & Drug Administration of Maharashtra and the R & D laboratory is approved by the Department of Scientific and Industrial Research, Government of India. Company is engaged in the manufacturing of miscellaneous products. The plants are located in J.B. Nagar, Andheri, Mumbai; MIDC, Boisar, Tarapur, Dist Thane & MIDC, Taloje, Navi Mumbai.
Company has the complete range of artist colours and materials such as water colours, poster colours, oil colours, fabric colours, geometry boxes, drawing inks, painting brushes and canvases. Company produces wood cased pencils in the fully integrated plant in the industrially backward area of Tarapur, Maharashtra. Company has a marketing alliance with Colart Fine Art & Graphics Ltd. U.K. Company also has a facility for manufacture of industrial grade synthetic adhesives at Taloja near Mumbai. Company’s manufactures products for the Creating, Crafting, Painting, Learning, Working, Writing and Gifting categories. Company has a unique brand identity into its area of operations.
Valuation—
Camlin has decided to incorporate a 100% subsidiary company for carrying out the new activity of setting up of pre-schools. For the aforesaid purpose, the company will be investing an amount of Rs 10 million in the proposed subsidiary company by way of subscription towards equity capital as also loan. Company is eyeing at Rs 5 billion turnover by FY12 following the completion of its expansion program. The company’s Jammu unit has also commenced operations and started contributing to its profitability. The firm is now all set to achieve its ambitious growth plan. The company sees a big opportunity as India’s writing instruments market is estimated at Rs 20 billion.
At current market price, Stock is trading at only 8.52 P/E multiple of its FY2010 Estimated Earnings. We recommend investors “STRONG BUY” on “Camlin Limited” for medium to long-term investment prospective.

source: Internet (Valuenotes by Abhishek Jain)

Intraday Trading Calls for 25th September

Indian Stock Market may open negative and remains very volatile and a negative closing exptected today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
TANLA SOLUTION	Buy Above	75.20	78.30	82.00
	Sell Below	73.35	70.55	67.00
CRANES SOFTWARE	Buy Above	43.75	46.20	49.00
	Sell Below	42.40	40.10	38.00
LIBERTY SHOES	Buy Above	106.50	111.35	116.00
	Sell Below	103.50	98.50	93.00
FIRST LEASING	Buy Above	54.20	56.75	60.00
	Sell Below	52.70	50.35	47.00
BIOCON	Buy Above	242.10	248.35	255.00
	Sell Below	238.35	232.45	225.00
PVR LTD.	Buy Above	150.15	155.60	162.00
	Sell Below	147.05	142.55	137.00
GODAWARI POWER	Buy Above	175.70	180.35	185.00
	Sell Below	173.05	189.20	185.00

Buy First Leasing Company (500145) CMP Rs. 53/- Short to Med Term Target Rs. 75/-.

GOOD LUCK

Stock Idea: Deepak Fertilisers & Petrochemicals Corp.

Deepak Fertilisers & Petrochemicals Corp.
Back on track
Upward movement in chemical prices: Prices of Methanol and Isopropyl alcohol have increased by 27.3% to Rs14000/MT and by 10.6% to Rs52000/MT QoQ respectively in Q2FY10. Deepak Fertilisers (DFPC) halted the production of methanol in H2FY09 due to a sharp fall in the price; however, the same has restarted in Q2FY10. Management believes that OPM will be stable since benefit of improving chemical prices will be set off by improved raw material prices. Improved feedstock availability: DFPC has tied up with GAIL for 90% of their gas requirement (including APM gas) at present. Improved gas availability leads to better capacity utilisation of chemicals as well as fertiliser plant. Company’s fertiliser plant operated at 25% in FY09 due to shortage of gas and phosphoric acid. On the back of an improved feedstock scenario, we have taken 60% and 80% utilisation level for fertiliser plant in our FY10E and FY11E estimates, respectively. De-merger of Ishanya mall is on cards: Ishanya mall occupancy remains stagnant at 55%. Company is planning to de-merge this business into a separate entity. However, management has put this decision on hold atleast for a year and will take this up only once this business turns profitable. We believe that any concrete decision along-with interest of any independent investor could be an upward trigger for the stock, going forward.
Expansion plans: DFPC is setting up an ammonium nitrate plant of 3.5lac tonnes, with a capex of Rs655cr. It is expected to come on stream by Q3FY11. Company has already expended Rs260cr and tied up with the banks for the rest.

Recommendation: Improved feedstock availability has eased our concerns on the stock. Hence, we have upgraded our earnings by 7.2% and 8.2% for FY10E and FY11E, respectively due to better capacity utilisation of plants. Also, we are upgrading our rating from ‘Reduce’ to ‘Accumulate’ on the stock, with a revised target price of Rs122 (i.e 7x of FY11E EPS).
Source: moneycontrol.com