Thursday, October 29, 2009

Stock Idea: Century Enka Ltd.

This BK Birla group company has continued with its stellar performance which it had shown in Q1FY10. Infact, it has bettered the performance.
Just like in Q1, in Q2 also the topline on a YoY has declined but profitability has gone up. On a YoY, net sales was down 4% at Rs.311.47 crore. The company continues to bring down its costs. Raw material costs were down by 22% and employee cost was down 20% and this helped boost the overall margins.
Net profit was up by an unbelievable 6 times on YoY at Rs.32.76 crore. QoQ, net profit was up 15%. Q2 also saw the company post one of its highest profit margins in recent times. OPM was at a very healthy 21.84% as against 12.55% in Q1FY09. NPM was up at 10.52% compared to 1.55% in previous first quarter.
Net profit for the first half of FY10 stands at Rs.61.11 crore and this is already 3.6 times the net profit of Rs.16.62 crore it posted in 12MFY09.
The company's equity capital is Rs 20.05 crore and the annualized EPS on the face value of Rs.10/share stands at Rs.65.36.
This is a company which will be managed by Kumaramangalam Birla as that is his grandfather’s (BK Birla) wish. BK Birla group holds 25.23% stake in the company. In the AGM of the company, the patriarch BK Birla stated that promoters stake in the company would be increased to 40% within the next three years. LIC has a 8.24% stake in the company.
We had recommended this stock on 21st Aug 2009 at Rs.140 and today it is at Rs.195. Even at the current rate, the stock is a good buy at it discounts the annualized EPS by a PE of merely 3.35 times.
Source: Internet (By S P Tulsian)

Intraday Trading Calls for 29th October

Indian Stock Market may open negative but some recovery expected from lower levels.

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

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

VOLTAS

Buy Above

150.05

154.20

158.00

Sell Below

148.05

143.55

140.00

TRIVENI ENGI

Buy Above

111.20

115.35

120.00

Sell Below

109.05

105.25

100.00

CRANES SOFTWARE

Buy Above

41.25

43.70

46.00

Sell Below

40.20

38.45

36.00

IDFC

Buy Above

149.60

153.75

157.00

Sell Below

148.05

144.55

141.00

APTECH LTD.

Buy Above

199.25

205.45

212.00

Sell Below

195.35

190.05

184.00

BAJAJ HIND

Buy Above

218.25

224.15

230.00

Sell Below

214.70

210.35

205.00

NAGARJUN CONSTRUCT

Buy Above

156.70

161.10

165.00

Sell Below

154.05

150.65

146.00

Short to Medium Term Delivery Buy:

Buy Compact Disc (526141) at CMP Rs. 60/- & at decline Short to Med Term Target Rs. 95+ Long Term Target Rs. 135-150/-.

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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