Monday, March 15, 2010

Stock Idea: Jain Irrigation Systems Ltd.

Jain Irrigation Systems Ltd— BUY—960—INR
Sector — Plastic products (Diversified)
Regd.Off.— Bambhori, N H No. 6, Jalgaon –425001, Maharashtra, India
Listed — NSE, BSE.
Company overview—
Company is one of the pioneer names in the plastic irrigation products industry sector in India. Company is in Technical alliance with many firms for the purpose to make their products to the international Quality Standards. Company’s Rs.1000 million exports coming from the toughest markets in the world. It’s largest producer of PVC Pipes in India. Company is Pioneers of Micro Irrigation Systems in India besides pioneering the concept for small landholders in India. It’s the only manufacturer producing the widest range of Plastic Sheets (PC & PVC) under one roof. Company has got the ISO-9001 from RWTUV, Germany for the PVC Pipes and Fittings, Polytube, Emitting Pipe, Plastic Sheets, Onion Dehydration Divisions & Fruit Processing. Company is having solutions for Small Farmer, Urban Household, Urban Housing, Community Development, Mining Industry, plant tissue culture, Chemical industry, Sugar factories, Oil & Gas exploration, Optic Fiber ducting, Advertisement & Signage's, Landscaping, Green houses, water shed development, Waste Land Development, Farm production & management, solar water heaters for Households & Corporate.
Products & Services—
Products range of Jain Irrigation includes Micro Irrigation Systems & Components, PVC & PE (HDPE, MDPE, LDPE, LLDPE, ABS, PC, etc.) Piping Systems, Moulded & Extruded Plastic Products, Plastic Sheets, Dehydrated Onions and Vegetables, Processed Fruits, Tissue Culture Plants, Green Houses, Liquid/ Water Soluble Fertilizers, Bio-pesticides, Bio-fertilizers and Solar Water Heating Systems. Company is having India's only one-stop high-tech integrated agricultural shop. Company has collaboration with Technical partners of USA for solar water heating systems and other products. It is involved into Turnkey Project Services, Roof Cooling Systems, Agriculture, engineering & consultancy
Company looking towards a huge potential in setting up irrigation projects abroad and is looking at opportunities in the African continent. It is currently in talks with some African country form a joint venture to bid for some large integrated micro-irrigation project. Company is expanding its capacity in plasticulture and food business. In plasticulture, the company plans to increase capacity to 2, 04,000 ton. In food business it plans to increase capacity to 71,200 ton.
The Food division of the company’s is the largest processor of fruits and vegetables in India with factories in India and the USA. The core strength of the division is the focus on quality, which has been attested by various certifications. The division also received certifications for environment, health and safety. Jain’s fruit processing plants are located at Jalgaon in Maharashtra and at Chittor in Andhra Pradesh. The demand for processed fruits and vegetables is growing in India as well as overseas markets and this has translated into the division growing at more than 35% compounded basis over the last five years. Mango is the largest revenue earner for the product portfolio. Company is also working very closely with farmers in Maharashtra, Gujarat, Karnataka and Andhra Pradesh on increasing mango yields.
Recent Developments—
Jain Irrigation Systems has bagged an order worth Rs 1,580 million from various Coca-Cola bottlers in India and overseas for supply of mango pulp for the 2009-2010 seasons. This product will be produced in the current mango season but dispatched over next year or so.
In February, Jain Irrigation System (JISL) signed a memorandum of understanding (MoU) with the International Rice Research Institute (IRRI). Jain Irrigation will closely work with IRRI’s scientists to determine optimal irrigation and fertigation system for irrigated rice and wheat. Under this MoU, JISL and IRRI will study the relevance of different irrigation and fertilizer delivery systems for paddy cultivation in India and other south Asian countries wherever IRRI is planning research or adaptive trials. The aim is to find ways to reduce water consumption in rice cultivation while increasing crop productivity.
Valuation—
At CMP, stock is trading at 16.4 P/E multiple of its FY2011 estimated EPS. We recommend investors to "BUY" "Jain irrigation systems ltd." for medium to long-term investment prospects.
Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea: Pantaloon Retail India Ltd.

Pantaloon Retail India Ltd— BUY—375—INR
Sector — Retail
Regd.Off.— Shyam Nagar, Jogeshwari (E), Mumbai - 400060
Listed — NSE, BSE.
Company overview—
Company was incorporated as Manz Wear Private Limited on October 12, 1987. Pantaloon Retail (India) Limited is India’s leading retailer with a turnover of Rs. 1073 crore (US$242 million) for the financial year ended June 2005. Company was converted into a public limited company on September 20, 1991 as pantaloon retail India limited. The group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. PRIL employs over 15,000 people and has a customer base of over 20 crore Indians. Company is a part of a diversified conglomerate with presence in multiple consumer-centric businesses. Future Capital is the financial arm of the group and is involved in asset management in both private equity and real estate funds. Company operates through multiple consumer centric retail businesses present across segments like food, fashion, footwear, home solutions, consumer electronics, beauty, general merchandise, telecom, entertainment etc. The businesses are represented through multiple retail formats in lifestyle as well as value retailing.
Products & Services—
Company has a retail presence across various segments including food, fashion and footwear, home solutions and consumer electronics, books and music, wellness and beauty, general merchandise, telecom and IT, E-tailing, leisure and entertainment and financial products and services etc. Company operates multiple retail formats catering to a wide cross-section of the Indian society. In the Lifestyle retailing segment it has Pantaloons (department store), Central (seamless malls), Blue Sky (fashion accessories) and aLL (fashion apparel for plus size individuals). Company’s value retailing ventures include Big Bazaar (hypermarket), Food Bazaar (supermarket) and Fashion Station (popular fashion).
Joint Ventures & Partner Companies- Company has a stake in Galaxy Entertainment that operates chains like Chamosa, Rain, Lush, F123, Bowling Company, Sports Bar and Brew Bar. It also has a stake in Planet Retail Holdings that owns the franchisee of brands like Marks & Spencer, Guess, Debenhams, The Body Shop and Puma in India. PRIL has entered into joint ventures with kids’ apparel manufacturer - Gini & Jony and Liberty Shoes. Pantaloon Industries owns a majority stake in Indus League that markets brands like Indigo Nation, Scullers, Urban Yoga and Jealous.
Financials—
Pantaloon Retail (India) disclosed a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 51.07% to Rs 506.70 million from Rs 335.40 million in the same quarter previous year. Net sales for the quarter for the quarter rose 25.38% to Rs 19,128.40 million, while total income for the quarter rose 25.38% to Rs 19,148.60 million, when compared with the prior year period. It posted earnings of Rs 2.57 a share during the quarter, registering 34.55% growth over previous year period.
Valuation—
Pantaloon Retail India has plans to invest more than Rs 5 billion to expand its seamless mall Central and the value fashion format Brand Factory over the next two years. PRIL will add 25 Brand Factory stores and 10-12 Central malls by 2011. Capital International also bought 0.69% stake in Pantaloon Retail (India) for Rs 408.27 million. Capital International via its account Emerging Markets Growth Fund Inc bought 1,091,114 shares of Pantaloon Retail (India) at Rs 374.18 a share. At CMP, stock is trading at 22.5 P/E multiple of its FY 2011 estimated EPS. We recommend investors to buy "Pantaloon Retail India Limited" with long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)

Intraday Trading Calls for 15th March

Indian Stock Market may open flat to negative and remains highly volatile for the day today. A Negative closing expected.
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

BRFL

Buy Above

225.05

230.15

235.00

Sell Below

223.40

218.40

213.00

PSL LTD.

Buy Above

157.50

162.70

168.00

Sell Below

155.40

151.35

146.00

CORE PROJECTS

Buy Above

260.00

267.20

274.00

Sell Below

256.25

250.45

244.00

JINDAL SAW

Buy Above

216.60

221.75

227.00

Sell Below

213.35

208.55

202.00

SAIL

Buy Above

235.60

241.55

247.00

Sell Below

232.05

227.45

222.00

VIDEOCON INDUSTRIES

Buy Above

230.25

236.45

242.00

Sell Below

227.35

222.15

216.00

PRITHVI INFO

Buy Above

69.25

72.55

76.00

Sell Below

67.50

65.10

62.00

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.



free counter