Value Stock: Supreme Infra

BSE Code : 532904

TTM EPS : Rs. 19

Market Cap : 55

Cr.Pmt Stake : 60 %

52W H/L : Rs. 224/37

P/E Ratio : 2.1x

Dividend : 15%

Supreme Infra (Rs. 40.00) Incorporated in 1983, Supreme Infrastructure India Ltd (SIIL) is predominantly engaged in construction of roads, highways and other allied projects for clients like NHAI, MCGM, MMRDA, MSRDC, MUTP, PWD, BMC, AAI, BPT, TMC and also private agencies like Hiranandani, K. Raheja, Pratibha Ind, RCF, BARC, Sadbhav Eng, Mundra Port etc. Its area of operation is mainly concentrated in Mumbai region and few parts of Maharashtra & Bangalore. Although company’s core competency lies in construction/ widening of roads & highways etc it also undertakes other infrastructure projects like integrated nallah development, drainage work, laying of railway tracks, construction of minor bridges, development of IT Park, residential tower, RCC building, strengthening of sea wall and laying of tetra pods etc. Notably SIIL is among the few companies of its size having its own captive ready mix concrete plant, asphalt mix plant, quarrying and crushing unit & paver block manufacturing unit. Apart from consuming these for its own projects, company also produces & supplies to other contractors as per order. Brief summary of the plants are: Asphalt Mix plant: SIIL has three asphalt plants spread across Powai (Mumbai), Padgha (Thane) & Chitradurga (Bangalore) with a combined production capacity of 330 MT per hour. · Ready Mix Concrete (RMC) plant: Company has four RMC plants each located at Powai, Padgha, Chitradurga & Thane. · Wet Mix Plant: Company possesses a Unicon make wet mix macadam plant at Powai, Mumbai with a production capacity of 100 MT per hour. · Quarrying & Crushing unit: SIIL boast of having four crushing plants – two at Padgha and one each at Powai and Chitradurga having total installed crushing capacity of 470 MT per hour. · Paver Block unit: Though the concept of paver block is very old its usefulness has been realized recently and hence the manufacturing of paver blocks seems to be a new industry in India. For FY08, SII recorded 100% rise in revenue to Rs 156 cr and 50% jump in profit to Rs 19 cr posting an EPS of Rs 14 on equity of Rs 13.90 cr. It gave 15% dividend which leads to an yield of nearly 4% at CMP. Further for Q1FY09 it declared very encouraging set of nos and recorded an EPS of nearly Rs 7 for the single quarter alone. However considering the ongoing US financial crisis and its impact, SIIL may end FY09 with topline of Rs 225 cr and PAT
of Rs 13.50 cr on a very conservative basis. This translates into EPS of Rs 10 on current equity. Investors are advised to buy at current levels as scrip can double within 12~15 months.

Source: SmartInvestment (Saarthi)

Bulls Eye

For coming week again expected some positive trend in market for coming week market is high volatile we expected some volatile coming in next week For coming week sensex important Support is at 10050 weekly basis sensex resistance is at 10800—10950—11220 above this next important resistance is at 11450 if sensex closes above this level then next target for sensex is at 11600 on weekly basis sensex support is at 10400—10320—10150 below this level next support is at 10050 for weekly basis nifty resistance is 3350—3480—3610 above this level next resistance is at 3750 on weekly basis nifty support is at 3205— 3140—3060 below this level next support is at 3005.for next week strategy in f&o once an Buy nifty future with a weekly target of 3420 in down side strong support is at 3205 keep a stoploss of 3220 expected positive trend see in market in this week.
Stock for this week
Ranbaxy lab : -Buy at current levels with a upper target of 310 it has important support is at 275 below this level next support is at 262 if it break the level of 262 then we see some fall in Ranbaxy lab take stoploss of 275 .

Shakti pump : looking explosive on chart buy at current levels at 91 it has strong support is at 87 keeping a stoploss of 87 on weekly basis take a target of 96.
Esse dee alumin: This stock are looking good for coming week there is upside potentional till around at 248 and down side strong support 212 keep a tight stoploss of 215 on weekly basis take a target of 245.
Ranbaxy lab fut : - Buy at 292 with a target of 310 with a tight stoploss 272 BELOW 272 expected some bearish trend in Ranbaxy.

Ksk energy fut : - Buy at 187 with a stoploss of 176 with a target of 199 above this next target is 205 in coming days.
Aban off fut : - Buy at current levels considering 1111 with a upper target of 1150 with a stoploss of 1080.

Source: SmartInvestment (Bullseyes)

Stock Ideas: Voltas, Idea, Canara bank

Nifty Future (3290) On the way up key a Major resistance at 3360. break above 3360 nifty lead to 3400/3440 area. Below 3200 support at 3160.
Canara Bank.(173) Buy at decline for objective of 186/195 area. Now break above 185 than should lead the stock towards 201/211 area. Keep stop below 166 area. Very positive bias for this stock.
IDEA(64) buy at CMP for objective of 70 area. Now break above 70 than should lead the stock towards 76 area. Keep stop below 59 area. Very positive bias for this stock.
Sobha Dev. (121) Intimate buy position in Oct. future on any dips to 115 area. For an objective of 129. A break above 129 will stock indicate strength in the upmove. stoploos below 107.
Mercatorlines (37) Buy October future with stoploss below 34.50 for an objective for 42/45 area. intimate 5 days position..

Arvind Mills (17.50) Buy future at any decline rate nr. 16 with stoploss below 14 area for an objective for 21/23 area. intimate 5 days position.
Voltas (64) Buy future at rate nr. 60 with stoploss below 57 area for an objective for 73/79 intimate 7 days position.
Sintex (195) Intimate buy position in October future on any dips to 185 area. For an objective of 220/235. A break above 235 will stock indicate strength in the upmove. stoploos below 174.

By Parthiv Jhaveri (SmartInvestment)

Stock Idea: R S Software (India) Ltd, Paramount Communications

R S Software (India) Ltd. BSE Code: 517447 NSE Code: RSSOFTWARE Last Close: Rs.15.
R S Software (India) Ltd. is a Kolkata based software company engaged with the world’s largest payment card association/network since last 16 years. The company has an equity of just Rs.7.44 cr. For the September 2008 quarter, it has posted marvellous results. While net sales jumped by 43.30% to Rs.36.57 cr., net profit zoomed 8800% to Rs.1.78 cr. For the first six months, net sales zoomed 37.58% to Rs.67.11 cr. while net profit was Rs.2.61 cr. against a loss of Rs.68 lakh in previous corresponding period. The company has recorded an EPS of Rs.2.39 against Rs.0.03 in September 2007 quarter. At current levels, the stock is trading at a P/E ratio of 4.3. Its 52-week high/low is Rs.52/15. This means that the stock is available at its 52-week low and appears to be a risk-free investment bet. Buy at every decline with stop loss of Rs.11.50. On the upper side, the stock will go up to Rs.22.50-25 level in the next 3-4 months.

Paramount Communications (Rs.9.21) has completed Phase II of its expansion project, which commenced commercial production in February 2008 and the installed capacity for power cables increased to 58500 KMs per annum. This includes all types of electric cables viz. LT/HT Power Cables, Control Cables, Instrumentation Cables, Thermocouple Cables, Railway Signalling Cables etc. The company's export business has increased from Rs.8.27 cr. to Rs.43.17 cr. during the year recording excellent growth. The company can now target further growth in export business catering to several export markets through its whollyowned subsidiary, AEI Cables Ltd., UK, which is one of the oldest cable manufacturers in the world with an excellent global track record. The company targets 100% growth in exports in the next financial year. The stock has fallen from its high of Rs.63 to current level while its book value is Rs.23. It is likely to report strong consolidated results in the current year with falling raw material prices of copper, aluminium, PVC that will help the company to improve margins from Q4 of the current year. Risk factor is its high debts. Investors can accumulate this stock for investment at current levels. Face value of the stock is Rs.2.

Source: Moneytimes (Internet)

Stock Idea: Praj Industries

The most enticing aspect of this company is the name of some of its shareholders. JM Financial Mutual Fund bought about 5.80 lakh shares of Praj Industries, increasing its stake to 5.25%. Tata Capital holds 7.33%, Rakesh Jhunjhunwala has a 7.3% stake and Vinod Khosla holds 6.15%. Morgan Stanley holds 2.77%. Makes one wonder what is so special about the company?

The financial performance of the company for the first quarter ended 30th June 2008 has not been as good as expected. Infact its bottomlines took a hit. YoY, its topline showed a 12% growth at Rs.154.76 crore. Though it has managed to contain its operating expenses, OPM slipped from 28.27% to 20.57% and NPM from 20.47% to 15.99%. Ethanol distillery projects contributed over 85% to the topline, whereas the brewery projects made up for the rest. But forex losses during the quarter dented its earnings.

The ability of the company to drive down cost as a result of value engineering exercises undertaken as well as the product mix has helped boost contain the margins at these levels. Praj’s current order-book is pegged at about Rs 950 crore of which 48% is from exports and the rest domestic. Being a net exporter, the current depreciation of rupee would go in favour of the company.

The stock price has taken a beating as there looms the likelihood of the Govt postponing the October deadline for making it mandatory for another 10% ethanol blending. The fortunes of this company are closely linked with the increasing acceptance of ethanol-blended petrol and bio-fuels.

With fuel bills touching the sky, biofuels is the way into the future and Praj is ready to capitalize on this. It is setting up its first plant in Louisiana, based on sugarcane juice and if this biofuel gets accepted, Praj would have the whole of North America as a market. In EU, it has a JV - BioCnergy Europa B. V., with Aker Solutions. It has also got orders from European sugar majors such as British Sugar, Suedzucker and Danisco. Its JV in Brazil is expected to help tap opportunities there too but this may take a longer while as not much progress has been made on this JV.
Currently quoted at Rs.129, Praj Industries is a safe bet in this market of turmoil.

Source: sptulsian.com

Intraday Trading Calls for 8th October

Indian Stock Market may open nagetive as all global markets trading lower but A smart recovery expected from lower levels.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

BANK OF BARODA (289)

Buy Above 291.65 Target 298.15, 305.00

Sell Below 286.20 Target 280.45, 275.00

NTPC (176)

Buy Above 177.60 Target 180.35, 184.00

Sell Below 174.50 Target 171.15, 167.00

ROLTA INDIA (181)

Buy Above 183.50 Target 188.75, 195.00

Sell Below 179.10 Target 175.15, 170.00

HDIL (127)

Buy Above 128.80 Target 134.10, 140.00

Sell Below 125.20 Target 121.35, 115.00

KSK ENERGY (196)

Buy Above 199.20 Target 205.05, 212.00

Sell Below 193.40 Target 188.30, 182.00

HUL (249)

Buy Above 250.80 Target 254.40, 258.00
Sell Below 247.40 Target 244.15, 240.00

GOOD LUCK

Multibagger: South Indian Bank

South Indian Bank (Rs. 104.00) (Code: 532218) :- The bank was started in Kerala decades ago. At present it has network of 500 branches and 210 ATMs. FII has holding of 7 per cent and India funds has holding of 4.5 per cent in the bank. Goldman Sachs has 3.7 per cent and old private sector bank Federal bank has 3.5 per cent stake in the bank. Income of the bank has improved by 27 per cent to Rs. 371.26 crores during first quarter of current FY, which ended in June 2008. Net interest income of the bank has improved by 11 per cent to touch the level of Rs. 102. 78 crores. Operating profit of the company has improved by 69.38 crores. Gross turnover of the bank is around Rs. 423.50 ?????? crores and net profit to be around Rs. 173.19 crores. Bank is likely to register EPS of around 19.2 on the earning. Company has recently announced bonus shares to the share holders at the ratio of 4:1. Investors may include the scrip in their portfolio.