Tuesday, November 16, 2010

Stock Idea: Bannari Amman Spinning Mills Ltd.

Bannari Amman Spinning Mills Limited (BASM), established in 1995 is a reputed player & a leader in cotton yarn segment in South India. BASM is a part of the Rs. 1,200 crs. Coimbatore based Bannari Amman group. The renowned group has its presence across diversified businesses like sugar, textiles, food processing, granite processing, power generation, transportation, distillery, automobile distribution, healthcare, etc. Since inception BASM has evolved to be a leader in cotton yarn spinning in South India, Commanding a premium in the market for its products. It has two factories for yarn spinning housed in around 7.85 lakh square feet in Tamil Nadu with an installed capacity of more than 1,35,000 spindles. The spinning division is in Dindigul, Tamil Nadu. The weaving division located in Coimbatore, Tamil Nadu, has an installation of 135 Sulzer projectile wider width Looms, in a working space of 2.2 lakh sq feet. The unit specializes in manufacturing superior wide-width cotton fabric in the 500-1000 thread count range. The production capacity ranges from 500-1500 sq mtrs per loom per day depending on the fabric construction. The company has strong presence in Tirupur, Kanpur and Kolkota in the domestic markets. The company is has also been exporting its products to a number of countries like Mauritius, Egypt, Taiwan and Korea.
In October 2005, BASM came with an IPO at Rs 135 per share to fund its expansion plan. On a post issue equity of 15.75 cr., the promoters’ stake is 55.55%.  BASM raised funds for capacity expansion and also to forward integrate into processing and garmenting & home textiles division
Net profit of BASML rose 134.33% to Rs 16.38 cr. in the Q2 ended September 2010. Sales rose 47.27% to Rs 129.52 cr. in the quarter. For the half year ended Sept. 2010, net profit stood at Rs 26.62 cr. on sales of Rs 242.58 cr..  The EPS for first half comes to Rs 16.9.  For the year ended March 2010, BASML had posted net profit of Rs 15.05 cr. on net sales of Rs 355.31 cr.. The EPS stood at Rs 9.5  and the dividend declared was 15%.  The Book Value per share stood at Rs 107
The expansion of its spinning unit, and integration into fabrics and home textiles has enabled the company to compete in the export markets with larger scale of operations. The higher value addition insulates the company from pricing pressures in the highly commoditised cotton yarn industry. The company operates in a niche segment and is a focused quality player earning higher than industry margins. Going forward, BASM is positioning itself as a niche player specializing in fine counts and other value added segment and should continue to earn relatively higher margins. Participating across value chain will help the company to be a One-Stop-Shoppe player and face the growing competition going forward. This will also help the company to customize their product offerings as the global retailers are rationalizing the vendor base based on quality, specifications and pricing. The Bannari Amman Spinning share at Rs 159 trades at 6 times FY11E earnings(Rs 26- Rs 27) and offers an attractive investment opportunity for the medium-long term
Investors can start accumulating the stock at current levels and add more on declines for decent returns of 50%-60% over the next 8-12 months. Accumulate.
Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Panacea Biotec

Panacea Biotec (PBL) is India’s highly progressive research based health management company involved in research, manufacturing and marketing of branded pharmaceutical formulations, vaccines and natural products. The product portfolio includes highly innovative prescription products in important therapeutic areas like pain management, diabetes & cardiovascular management, renal disease management, osteoporosis management, anti-tubercular, gastro-intestinal care products and vaccines. The flagship brands of the company- Willgo for pain management; Glizid & Glizid-M for diabetes; Panimun Bioral & Mycept for kidney transplant occupy leadership positions in their therapeutic segments. This is in persuit of marketing strategies to build brands and drive the growth of the company. The vaccines portfolio consists of oral polio vaccines (type I and type III), Enivac-HB (Hepatitis B vaccine), Enivac-HB Safsy, Ecovac-4 (DTwP+Hep B), Easyfour (DTwP+Hib), Easyfive (DTwP+Hep B+Hib). Vaccines in the offing are- Anthrax, Dengue, Japanese encephalitis and several others. Panacea Biotec has earned the distinction of being a WHO pre-qualified supplier of oral polio and Hepatitis-B vaccines and are in the process of obtaining similar pre-qualifications for other vaccines.
PBL is the second largest vaccine producer in India and has been ranked as the third largest biotechnology company in India (as per ABLE Survey June 2009). While vaccines account for three-fourths of the company’s overall revenues, the balance comes from domestic formulations (the major therapeutic areas being pain management, diabetes and organ transplantation). The company has also established collaborations and tie-ups with international research organisations. Bulk of the vaccines is sold to the UNICEF, which largely caters to the Indian market and to some countries such as Ethiopia, Maldives, Nepal, Somalia and Yemen. The company has ultra modern, state-of-art production facilities at Baddi (Himachal Pradesh), Lalru (Punjab) & Delhi for manufacturing tablets, capsules (including soft gelatin), ointments (transgel formulation) liquids, herbal formulations and vaccines. The facilities are WHO cGMP compliant.
Net profit of Panacea Biotec rose 692.02% to Rs 16.87 cr. in the Q2 ended September 2010. Sales rose 52.32% to Rs 252.57 cr. in the quarter. Net profit of PBL had risen 226% to Rs 49.4 cr. in the first half ended Sept. 2010. Net sales were up 48% to Rs 506.5 cr. in the first half. The EPS for the half year on a equity of 6.13 cr. (Promoter stake-74.41%, FII/MF stake- 11.44%) stands at Rs 8. For the year ended March 2010, PBL had posted 14% rise in net sales to Rs 900 cr. on consolidated basis, whereas net profit stood at Rs 72.41 cr. (against net loss of 67 cr. in FY09). For FY10 PBL’s vaccine segment grew 24% to Rs 680 cr.(75% of revenues). Going forward, PBL has identified brand building in exports as its thrust area and it has significant presence in the global markets including the CIS, Africa, the Middle East and Asia. The company is actively exploring opportunities for launching as well as licensing out some of our patented products for manufacture/marketing in developed countries in Europe, North America and Latin America. Eyeing the lucrative pie of off-patent drugs, PBL is looking to manufacture generics to expand its domestic formulation business and has plans to venture into the US market. Over $150 billion drugs would be off-patent in the next several years as their exclusivity time matures. PBL which gets most of its sales from domestic operations, is looking to start operations in the US from this fiscal to expand its exports, the area and region which they ignored till now.
PBL would announce deals in the next few weeks and is currently working on the Japanese encephalitis and Dengue vaccine which may be launched this fiscal The company has about Rs 120 cr. of cash reserves and it is not looking for acquisitions but expects in licensing and out licensing opportunities deals in the vaccines and medicines for infectious diseases and organ rejection. At the current market price of Rs 204, the stock trades at 12.4x and 10x of FY11E (Rs 16- Rs 17) and FY12E earnings(Rs 20- Rs 21), respectively.
Investors can start accumulating the PBL stock at current levels and add more on declines for decent returns of 50%-60% over the next 6-9 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

Intraday Trading Calls for 16th Novemeber

Indian Stock Market may open positive and positive trading expected today with very high volatility
Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):
SCRIP NAME
TRIGGER
PRICE
TARGET 1
TARGET 2
DEWAN HOUSING
Buy Above
340.00
348.55
355.00
Sell Below
333.45
325.60
318.00
SHRI LAKSHMI COTSYN
Buy Above
172.25
178.45
185.00
Sell Below
169.05
164.30
158.00
SASKEN COMM.
Buy Above
197.20
203.65
210.00
Sell Below
193.45
188.05
182.00
EROS INTL. MEDIA LTD.
Buy Above
188.50
195.25
202.00
Sell Below
184.40
180.00
175.00
ADHUNIK METALIKS
Buy Above
111.55
115.75
120.00
Sell Below
109.35
105.45
102.00
SUN PHARMA ADVANCE
Buy Above
105.60
110.00
115.00
Sell Below
103.40
100.05
96.00
GEODESIC LTD.
Buy Above
136.75
141.65
146.00
Sell Below
134.15
130.20
126.00

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.



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