Multi Bagger: Genus Power Infrastructure Ltd

Multi Bagger: Genus Power Infrastructure Ltd Recommended Price Rs 313.65

Play on huge power investments: Genus Power Infrastructure Ltd (Genus) is a play on significant investments planned in the power sector. Company manufactures electronic meters, power inverters and undertakes turnkey projects. Genus provides closed loop metering solutions that offer operational advantages to energy utilities enabling reduction in T&D losses and thereby enhancing their revenues. Power sector reform to drive momentum:Implementation of the APDRP scheme, under which the government needs to implement 100% tamper proof metering, is expected to result into higher demand for meters over the next couple of years. Genus has an order book position of Rs 4.17 billion including turnkey projects. Company has participated in tenders more than worth Rs 48.4 billion, of which, it is the ´L-1´bidder in orders worth Rs 4.5 billion.

Tax exemption and JV with Mobix to accelerate growth: The company's second manufacturing facility in Uttaranchal (first being in Jaipur), enjoys 16% excise duty exemption for a period of 10 years, and increases the capacity from 1.4 million to 2.4 million pieces. Joint venture with Mobix has provided Genus the platform to enter high demand markets like Latin America, Africa, etc. We expect the JV to contribute 10%-15% to company's revenues going forward. The company is already doing pilot projects in Brazil for the past two years and has got all necessary approvals. Valuation and Recommendation: Genus posted a healthy revenue growth of 19.9% yoy in Q1 FY09. The operating margin expanded by 50 bps yoy to 16.9%. PAT stood at Rs 85.4 million vs Rs 69.2 million in Q1 FY08, an increase of 23.4% yoy. The company is expected to witness robust revenue and earnings growth driven by significant investments planned towards the addition of 78GW generation capacity in the 11th Five Year Plan.

Source: India Infoline Picks Report Dated: Aug 11, 2008

Intraday Trading Calls for 14th August

Indian Stock Market may open flat to Nagetive. Stock market India will remain in range and good recovery expected from lower levels. A positive closing exptected Today.

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

MTNL (109)

Buy Above 110.20 Target 113.05, 116.00

Sell Below 107.70 Target 105.05, 102.00

IDEA Cellular (87)

Buy Above 88.10 Target 90.65, 93.05

Sell Below 86.20 Target 84.05, 81.

YES BANK (138)

Buy Above 139.60 Target 143.25, 147.00

Sell Below 136.80 Target 133.50, 130.00

CORE PROJECTS (254)

Buy Above 256.60 Target 262.45, 270.00

Sell Below 251.60 Target 246.35, 240.0

SASKEN COMMUNICATION (156)

Buy Above 157.10 Target 160.40, 164.00

Sell Below 154.50 Target 151.20, 14700

INDIAN BANK (121)

Buy Above 122.10 Target 125.05, 129.00

Sell Below 119.50 Target 116.45, 113.00

Others for Intraday: IT & TECH SECTOR MAY PERFORM WELL AS DOLLAR IS CONTINEOUSLY GOING STRONGER. INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, POLARIS, SASKEN COMMUNICATION, 3I INFOTECH, PRITHVI INFORMATION, MICRO TECHNOLOGIES.

Good Luck

Intraday trading Calls for 13th August

Indian Stock Market may open Nagetive as all global markets trading lower. Crude Oil at $113. Stock market India will remain in range and good recovery expected from lower levels at mid session.

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

CHAMBAL FERTILIZER (86)
Buy Above 86.60 Target 88.45, 91.00
Sell Below 84.90 Target 83.05, 81.00
SATYAM COMPUTER (402)
Buy Above 404.70 Target 410.25, 416.05
Sell Below 398.50 Target 392.45, 385
WIPRO LTD. (433)
Buy Above 435.60 Target 441.65, 447.00
Sell Below 430.00 Target 425.05, 418.00
CORE PROJECTS (229)
Buy Above 231.00 Target 236.25, 242.00
Sell Below 227.20 Target 222.35, 216.0
SELMCL (404)
Buy Above 408.50 Target 418.00, 430.00
Sell Below 400.00 Target 392.20, 380.00
GMR INFRA (110.5)
Buy Above 111.20 Target 113.55, 116.00
Sell Below 109.10 Target 107.05, 104.00

Others for Intraday: INFOSYS, HCL TECH, TECH MAHINDRA, NIIT TECH, SASKEN COMMUNICATION, 3I INFOTECH, PRITHVI INFORMATION.

Short- Med Term Delivery Buy Ramsarup Industries 532690 (121) Target 175+

Good Luck

Intraday Trading Calls for 12th August

Indian Stock Market may open flat to positive. Some Profit booking expected today. But Crude Oil at $113 so market will remain in range and recovers later. A flat to positive closing expected.

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

ADHUNIK METALIKS (120)

Buy Above 121.45 Target 125.60, 130.00

Sell Below 118.50 Target 115.00, 112.

LANCO INFRA (352)

Buy Above 355.30 Target 361.25, 368.05

Sell Below 348.40 Target 342.25, 335

DCB (58)

Buy Above 59.60 Target 62.55, 65.00

Sell Below 57.20 Target 55.05, 53.00

RCOM (454)

Buy Above 456.70 Target 463.05, 470.00

Sell Below 451.20 Target 445.35, 438.0

SELMCL (401)

Buy Above 405.20 Target 415.00, 425.00

Sell Below 396.40 Target 386.10, 375

GMR INFRA (106.5)

Buy Above 107.65 Target 110.50, 114.00

Sell Below 105.40 Target 102.70, 100.00

Others for Intraday: Pratibha Industries, Praj Industries, HCC, WS Industries

Short- Med Term Delivery Buy Sunil HiTech Engineers Ltd. 532711 (202) Target 275+
Short Term Delivery Buy Adhunik Metaliks 532727 (120) Target 155+.

Good Luck

Intraday Trading Calls for 11th August

Indian Stock Market may open gap up as all global markets trading higher and US Markets closed higher and Crude Oil at $116. A strong rally and good positive closing expected today.

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

ADHUNIK METALIKS (120)
Buy Above 121.45 Target 125.60, 130.00
Sell Below 118.50 Target 115.00, 112.
GUJARAT NRE COKE (105)
Buy Above 106.30 Target 109.25, 113.05
Sell Below 103.50 Target 100.05, 96.00

BANK OF BARODA (286)
Buy Above 288.60 Target 294.85, 300.00
Sell Below 283.70 Target 278.05, 272.00
YES BANK (138)
Buy Above 140.10 Target 143.95, 148.00
Sell Below 136.60 Target 133.35, 129.50
VOLTAS (137)
Buy Above 138.70 Target 142.55, 146.00
Sell Below 135.40 Target 132.10, 129
GMR INFRA (101.5)
Buy Above 102.25 Target 105.65, 109.00
Sell Below 100.00 Target 97.45, 94.00

Others for Intraday: RPL, RNRL, RCOM, REL, RPOWER.

Short Term Delivery Buy Adhunik Metaliks 532727 (120) Target 155+.

Good Luck

Stock Idea: Micro Technologies, Ramsarup Industries Ltd

Once again Micro Technologies (India) Ltd. (Code: 532494) (Rs.230) has announced excellent results for Q1FY09. Total revenue as well as net profit shot up by 65% to Rs.58 cr. and Rs.17.50 cr. respectively recording an EPS of Rs.16 in this single quarter itself. For FY08, it had recorded an EPS of Rs.48 with net profit of Rs.53 cr. on its total revenue of Rs.171 cr. The company is a global provider of security, safety and life-support solutions with the first of its kind and innovative products for security of home, office, shop, vehicle, laptop, mobile etc. It also has a business agreement with MTNL as well as Airtel to offer Lost Mobile Tracking System to their customers. Few weeks ago, it introduced a GPS based product called ‘Buddy Tracking System’ to know the real time location of users. Given the current share market condition, the company has again reduced the FCCB conversion price by 18% from Rs.304 to Rs.250. Although this indicates that both bondholders and the company are interested in conversion, not redemption, this will lead to further equity dilution by 45 lakh shares. For FY09, it is expected to report a topline of Rs.250 cr. with bottomline of Rs.70 cr. i.e. an EPS of Rs.54 on its fully diluted equity of Rs.13 cr. Even at modest discounting by 8 times, the share price has the potential to hit a new high of above Rs.400 in 12-15 months.

Recently, Ramsarup Industries Ltd. (Code: 532690) (Rs.122) has come out with decent Q1FY09 results while sales grew by 10% to Rs.383 cr., net profit increased by 25% to Rs.15.80 cr. on the back of better operating margins. The company manufactures a variety of steel wires (mainly used by the power industry) and TMT Bars. To cater to the rising demand, the company is expanding its total wire manufacturing capacities from 233,000 tonnes to 600,000 tonnes including the production of Low Relaxation Pre-stressed Concrete (LRPC) wires over the next two years. It has acquired 60 acres of land in West Bengal and the major plant and machinery are being imported from Italy. And to access cheaper and regular raw material supplies, the company took over Balasore Minerals Co., which has iron ore, limestone and dolomite mines located in neighbouring Orissa. But importantly, the company is merging its group company called ‘Ramsarup Loha Udyog’, which is emerging as an integrated steel producer with captive production of sponge iron, pig iron, billets, power etc. As no official figures are available for the group company, on a standalone basis the company is expected to clock a turnover of Rs.1750 cr. with PAT of Rs.65 cr. for FY09. This translates into an EPS of Rs.37 on its current equity of Rs.17.50 cr. Post merger, its equity is expected to get diluted to about Rs. 35 cr.

Source: Internet

Stock Idea: Usha Martin

PINC Research has maintained its buy rating on Usha Martin with a 12-month target price of Rs 135 in its August 8, 2008 research report. "Usha Martin Ltd. (UML) reported net sales of Rs 7 billion for Q1FY09, a YoY growth of 39% driven by sales volumes of value added products and overall buoyancy in realisations. The above factors also led to a 323bps expansion of OPM, as the company could sustain raw material cost advantage through its captive iron ore mines. Operating profit consequently rose to 1.5 billion (+62%). Net profits grew 73% to Rs 651 million."
"The stock trades at a P/E 6.2x, which we believe does not factor in the volume growth and the upcoming backward integration. We remain positive on the stock and reiterate our ‘BUY’ recommendation with a 12-month price target of Rs 135," says PINC's research report.