Monday, November 9, 2009

Intraday Trading Calls for 09th November

Indian Stock Market may open flat to positive and remains very volatile but again a positive closing exptected.

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

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

BATA INDIA

Buy Above

178.25

183.65

188.00

Sell Below

175.10

171.25

166.00

GMDC

Buy Above

107.15

111.75

117.00

Sell Below

105.35

101.55

98.00

BAJAJ HIND

Buy Above

214.50

219.20

224.00

Sell Below

211.35

207.30

202.00

IRB INFRA

Buy Above

246.70

252.45

258.00

Sell Below

243.50

238.15

232.00

SELAN EXPLO

Buy Above

335.60

342.55

350.00

Sell Below

331.05

325.20

320.00

CAIRN INDIA

Buy Above

273.20

277.55

281.00

Sell Below

271.15

268.05

265.00

STC INDIA

Buy Above

356.50

363.75

372.00

Sell Below

351.35

344.25

335.00

GOOD LUCK

Stock Idea: Ballarpur Industries Ltd

Ballarpur Industries Ltd— BUY—21—INR
Sector — Paper
Regd.Off.— Dist. Chandrapur, Ballarpur, Maharashtra - 442701
Listed — NSE, BSE.
Company overiew—
Ballarpur Industries (BILT), Thapar Group Company is India’s largest manufacturer and exporter of paper and paper products. The company was incorporated in 1945 as Ballarpur Paper and Straw Board Mills and changed its name to Ballarpur Industries Limited in 1975. Gautam Thapar is the chairman and R.R. Vederah is the managing director of the company. It is the largest manufacturer of writing and printing paper with a leading 45% market share in the coated paper segment. BILT enjoys a 25% market share for maplitho, 50% for common bonds. Company has technical agreements with a South Korean and Japanese company for the manufacture of coated and lightweight-coated paper. BILT has decided to exit all non-core businesses and focus on core areas of paper and chemicals. Consequently, BILT is divided into two companies BILT Paper and BILT Chemicals. BILT Chemicals comprises of three units Karwar, Khavda and Singach and five mills with a total capacity of over 242780 tpa.
Products & services—
The company operates in the business segments of coated wood free paper, uncoated hi-bright paper (maplitho), business stationery, copy paper and specialty and fine paper. Its products include writing and printing paper, industrial paper, specialty paper, coated and uncoated wood free paper, uncoated hi-bright paper, business stationery, tissue paper, packaging paper, and copy paper. Complementing this is a diversified production infrastructure with six manufacturing units spread across the country. Manufacturing units are located at Shreegopal (Yamunanagar), Ballarshah (Maharashtra), Sewa (Orissa), Bhigwan (Pune) and Kamalapuram (Andhra Pradesh). With the acquisition of Sinar Mas’ Indian operations, BILT has acquired world class coated paper capacities that find widespread application in the high end of the Indian usage market as well as developed overseas markets. The company is backward integrated with its caustic soda/chlorine manufacturing facility, which is a vital raw material in the production process of paper. Strategically implemented enterprise resource planning (ERP) system, real-time logistics and just-in-time (JIT) inventory solutions enable highly effective and efficient distribution of localized BILT products across urban, semi-urban and rural consumption centers nationwide with a network of 126 dealers.
BILT has 10 year contract with the government of Maharashtra for the supply of Bamboo that ensures cheap and regular supply of raw material. The company has also initiated farm forestry for cheaper raw materials and has cornered Indonesia and Malaysia for this activity due to its strategic geographic location. Company has an agreement with its calcium carbonate supplier, Emirys (France) to manufacture the chemical requirement for its coating paper.
Recent development—
Ballarpur Industries planning to invest USD 1 billion in overseas acquisitions and enhancing plant capacity in five years. India’s biggest paper maker will double its production capacity to 2 million tons by the year 2013. The expansion will be financed by loans and share sales.
Valuation—
At the current market price stock is trading at 5.67 P/E multiple of its FY2010 Estimated EPS. We recommend investors to “buy” “Ballarpur Industries Limited” with a medium to long-term investment prospective.
Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea: Riddhi Siddhi Gluco Biols Ltd

Riddhi Siddhi Gluco Biols Ltd (Rs139)
(BSE Code - 524480)
(P/E - 9, FY’09 Sales - Rs534 cr, Mkt Cap - Rs157 cr)
Riddhi Siddhi Gluco Biols Ltd (RSGB) is the largest manufacturer of various types of starch, liquid glucose, dextrose monohydrate and other derivatives, high maltose corn syrup and byproducts like corn gluten meal and enriched fibre, which are used in various applications such as chocolates, processed foods, glass and medicines, paper, glucose and textiles. RSGB controls about 17% of the total starch market. About 60-65% of its turnover comes from industry majors such as Nestle, Hindustan Unilever, Ranbaxy, Ballarpur, ITC, Grasim, Indian Rayon and Godrej. Catering to a sizeable market in India, RSGB has continuously tried to increase capacities and feed the growing industry demand, which is about 12-15% at present. Per capita consumption of corn starch in India is estimated to be about 1 kg as compared with 64 kg in US and the world average of 6 kg, which leaves room for a sustainable growth in the years to come. In 2006, RSGB, the largest corn wet milling company in the Indian subcontinent having the highest crushing capacity, had joined hands with France’s Roquette Freres, a leading player in this industry with a consolidated turnover exceeding $4.5 billion, to improve the yield parameters and develop new products.
RSGB’s new capacities are already in place and for technical expertise; it has found a partner in Roquette Freres, France, which is the world’s fifth largest starch company. Roquette also has a 14.93% stake in RSGB. Roquette, which sells about 1,000 products, will help RSGB increase its current product offering of 40 to add more value added products in its portfolio by way of providing technology and know-how. These new value added products will be for nutrition, biotech and health and dextrose for sugar free goods. These value added products will also help RSGB in acquiring a larger pie of the existing market and enter new industries. Considering these developments, RSGB is targeting a market share of 25% in two years as compared with 17% now. RSGB currently generates about 65 per cent of its revenues from value added products. It is planning to increase this to 80% over the next two years. RSGB is also working closely with brand-enhancing food companies like Nestle, Heinz, Cadbury, Hindustan Unilever and Britannia and pharmaceutical companies like Ranbaxy, Wockhardt, Sun Pharma and Nicholas Piramal with repeat business and sustainable revenues.
Net profit of RSGB rose 816.00% to Rs 9.16 cr. in the Q2 ended September 2009. Sales rose 30.49% to Rs 164.44 cr.. For the half year ended Sept. 2009, the co’s net profit stood at Rs 14.3 cr.(up 55%) on net sales of Rs 320.76 cr.(up 29%). For the year ended March 2009, RSGB had posted net sales of Rs 533.9 cr.(up 60%) and net profit of Rs 13.98 cr.(down 30%). The net profit was down mainly due to higher interest burden, forex losses and higher depreciation. On a equity of 11.13 cr.(Promoters’stake-43%), the EPS stood at Rs 12.5 and the dividend declared was 20%.
With global economy showing signs of recovery, consumers’ willingness to spend more and demand picking up, demand for products like starch & glucose is also likely to pick up. Also, FMCG companies have continued to grow by volume and there by would in turn increase the demand for raw materials/inputs used in bakery & confectionery products. At the current market price of Rs 139, the stock is trading at a P/E multiple of 11 times its FY09 earnings and 8.4 times FY10E earnings (Rs 16-Rs 17). RSGB’ market cap stands at Rs 157 cr, against expected net sales of Rs 650 cr. for FY10. Considering that the company is the largest player in its sector, investors can expect good returns over the medium-long term. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-50% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Federal-Mogul Goetze India Ltd

Federal-Mogul Goetze India Ltd (Rs120)
(BSE Code - 505744 NSE Code - FMGOETZE)
(P/E - 9.6, Market Cap - Rs667 cr, Promoters’ stake - 74.98%)
Goetze (India) Limited was established in 1954 as a joint venture with Goetze-Werke of Germany. Goetze-Werke of Germany is now owned by Federal-Mogul Corporation, a $6.3 billion global company and one of the leading manufacturers of automotive components in the world. In 2006, US-based Federal-Mogul acquired the Indian promoters’ stake, raising its holding to 50.11%, to take control of the company after which the name of the company changed to "Federal-Mogul Goetze (India) Limited"(FMG). Federal Mogul, one of the promoters of Goetze (India) and a US auto-parts major acquired 62,30,000 equity shares of the company at Rs 222.50 per share, constituting 24.64% of the equity share capital. There was rights issue in 2008 at Rs.56 per share, which did not get adequate response from the investors and promoters subscribed to the Shares and increased their holding to 74.98%. FMG has a paid-up equity capital Rs 55.63 cr. of which promoters hold 74.98%., FII/MF’s hold 12.42%, Bodies corporate hold 1.84% and Public holds 10.76%
FMG is the largest manufacturer of pistons and piston rings in India. The parent Federal-Mogul is a leading auto-ancillary company with a very strong presence in the diesel vehicles segment. FMG is involved in the manufacture of auto components like pistons, piston rings, sintered parts and cylinder liners covering a wide range of applications including two/three-wheelers, cars, SUVs, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines. FMG has 4 manufacturing facilities at Bengaluru (Karnataka), Parwanoo (Himachal), Bhiwadi (Haryana) and Patiala (Punjab) and 22 pan India marketing offices. It makes the widest range of piston rings and pistons varying from 30mm to 300mm diameter. It also manufacturers sintered parts light metal castings and cylinder liners covering a wide range of applications including two/three-wheelers, cars, SUVs, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines. It is market leaders both in OEM and aftermarket. Besides, about 10% of its business is from exports. Within the original equipment manufacturing (OEM) segment, FMG’s revenues are spread across all auto players including Tata Motors, M&M, Bajaj Auto and TVS. There are also expectations that the US based auto parts major parent may use FMG as an outsourcing hub.
FMG reported net profit of Rs 23.68 cr. in the Q3 ended September 2009 as against net loss of Rs 2.86 cr. during the previous quarter ended September 2008. Sales rose 16.52% to Rs 204.42 cr. in the Q3 ended September 2009. For the half year ended June 2009, FMG has posted net sales of Rs 354.58 cr. and net profit of Rs 25.66 cr.. For the year ended December 2008, FMG had posted net sales of Rs 706.6 cr. and net loss of Rs 6.89 cr. The Indian automobile industry is on fast revival after tough period. 2-Wheelers and passenger cars sales are already in “Topgear”. With confidence returning in economy, CV and Capital goods sales are likely to see upward trend after almost 2 years of slow down. Increased focus on rural economy can boost tractors sales in a big way. Going forward, FMG is expanding its capacity, by installing a new plant at Chennai, which is likely to begin operations next year.
In CY09, it is witnessing good performance and based on nine months results, FMG is likely to post an EPS of Rs.12-13 against loss in CY08. At CMP of Rs 120, it trades at forward PE of 9.6, which is attractive for a company that is the biggest player in its line of business. From Rs 449 on 5 January 2007, the FMG scrip tumbled to Rs 28 by 9 March 2009. In view of the improved results, strong parent and good medium term prospects, Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-50% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

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.



free counter