Stock Idea: Jindal Steel & Power Ltd (JSPL)

Jindal Steel & Power Ltd (JSPL) financial performance for the second quarter ended 30th September 2009 has not been as encouraging as expected. Net Profit on consolidated basis increased by just 6.05 % (YoY) at Rs. 808.36 crore. But what was more disappointing was that consolidated net sales dropped 14.48% at Rs.2445.28 crore.
DRI and pig iron production rose 5.01% but sales was down 21.94%. Steel products production grew 32.31% but sales was up by a marginal 2.14%. Net realisation from sale of steel products dropped during the quarter mainly due to drop in steel prices and this affected the overall performance. Steel prices on a YoY are down 43%. Production of power rose 2.57% at 701 kWh. And it is this division which really helped the company shore up the performance – sales was up 21.88%, which was 36% of the overall net sales earned by the company for Q2FY10. But net profit from the power unit was at Rs.514.71 crore, which was 64% of the net profit earned in current Q2. Clearly, power is what makes the company powerful today.
PLF (Plant Load Factor) was down at 84% in current Q2 compared to 96% in Q1FY10. This was because it two units were shutdown and due to the monsoon, power generation was lower. So this performance of the power unit could have been much higher than what it has come in Q2.
The power unit, Jindal Power is a wholly-owned subsidiary of JSPL and this company is planning on an IPO in early Jan 2010, to partly fund its 2,400 megawatt superthermal power project in Chhattisgarh. It already has 1000 MW operational. It has 10 units of 135 MW each of which the first unit would go on stream in January 2010 and then one unit every two months. It is also expanding its capacity by another 2400 MW which is scheduled to get operational in 2012-13. So by the end of 2013, Jindal Power will have 4750 MW.
Second half is expected to be better as the two units which were shutdown have re-opened. Realisations in steel are expected to be more volume driven. Stay invested.

Source: Internet (By S P Tulsian)

Intraday Trading Calls for 03rd November

Indian Stock Market may open negative and remains very volatile but some recovery can be seen at lower levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VOLTAS	Buy Above	160.05	163.45	166.00
	Sell Below	157.35	154.10	151.00
BRFL	Buy Above	189.10	195.40	201.00
	Sell Below	186.45	181.25	175.00
GREAT OFFSHORE	Buy Above	518.60	528.20	540.00
	Sell Below	511.40	500.00	485.00
IDFC	Buy Above	148.25	151.35	155.00
	Sell Below	146.30	142.05	139.00
JAIPRAKASH ASSOCIATE	Buy Above	211.75	217.55	224.00
	Sell Below	209.10	204.35	198.00
BAJAJ HIND	Buy Above	198.20	205.10	210.00
	Sell Below	194.70	190.35	185.00
NAGARJUN CONSTRUCT	Buy Above	148.60	153.75	158.00
	Sell Below	146.35	142.70	138.00

GOOD LUCK

Stock Idea: Real Strips Limited

BSE Code: 513558
Last close: 52.30
Real Strips Limited, AN ISO 9001: 2000 Accredited Company came in to existence in 1994 to cater the demand of cold rolled flat products of stainless steel, for quality conscious manufacturer. Real Strips Limited is situated on out skirt of hub city of Gujarat.
Stainless steel strips, stainless steel coils produced by Real Strips Limited are used in Automobiles, Food & Dairy Industries, Sugar Industries, Watch Industries, Pipes & Tubes Industries, Utensils, Furniture, Architectural Utilities, Thermo wares, Chemical process Industries, Electronic Industries, Surgical industries, etc for very specialized application.
It has an equity base of Rs.3.75crore that is supported by reserve of around Rs.13crore and it has a book value of around Rs.44.20. the promoters hold 51.17% while the investing public holds 40.05% stake in the company. For Q2FY10, it recorded net sales of Rs.53.74crore with net profit of Rs.1.72crore against net sales of Rs.44.39crore and net profit of Rs.75lacs in Q2FY09 respectively (Profit zoomed 129% on Quarterly basis). For H1FY10, it recorded net sales of Rs.100.95crore with net profit of Rs.3.22crore against net sales of Rs.68.02crore and net profit of Rs.1.48crore in H1FY09 respectively (Profit zoomed 117% on Half yearly basis). The quarterly EPS was Rs.4.55 while the half-yearly EPS was Rs.8.52. the stock is available at a forward P/E ratio of just 3. Investor can buy this stock with stop loss of Rs.44. on the upper side stock will go up to Rs.65-70 in the short-term and Rs.95-100 levels in the medium-term.

Source: Internet (Valuenotes by ProfitTrack.com)

Stock Idea: I G PETROCHEMICALS

I G PETROCHEMICALS’s

BSE Code: 500199
Last close: 37.60
I G PETROCHEMICALS’s principal business revolves around the production of Phthalic Anhydride, which is mainly used in the manufacture of Plasticizers for production of PVC products, shoe soles and other commodities, Alkyd Resins for manufacturing of paints, as an intermediate in production of dyes and pigments, and in production of Unsaturated Polyester Resins (UPRs). Company constantly strives to grow and expand as an organization, setting new standards for themselves. In 1997, company enhanced it’s production capacity from 45,000 MTPA to 1,10,000 MTPA to tap growing national and export markets.
It has an equity base of Rs.30.80 cr. that is supported by huge reserves of around Rs.184 cr. and it has a book value of around Rs.56.40. The promoters hold 62.38%, non promoter corporate bodies hold 11.96 while the investing public holds only 23.80% stake in IGPL. For Q2FY10, it recorded net sales of Rs.141.52crore, while it has recorded net profit of Rs.8.56crore against Rs.8lacs in Q2FY09 (Profit zoomed 10600% on Quarterly basis). For H1FY10, it recorded net sales of Rs.287.84crore with net profit of Rs.16.80crore against net sales of Rs.318.86crore and net profit of Rs.5.12crore in H1FY09 respectively (Profit zoomed 228% on Half yearly basis). The quarterly EPS was Rs.2.78 while the half-yearly EPS was Rs.5.46. The stock is available at a
forward P/E ratio of just 3.6. Investor can buy this stock with stop loss of Rs.33. on the upper side stock will go up to Rs.50 in the short-term and Rs.70-75 levels in the medium-term.

Source: Internet (Valuenotes by ProfitTrack.com)

Stock Idea: Seamec

Investment Argument
SEAMEC - is a MNC outfit of Technip Group of France. Its leader in operating MSVs/DSV in India, with 4 out of 6 vessels belonging to it and balance 2 are with ONGC. There are just about 30-35 MSV’s operating in the world. They are specialized vessels used for undertaking any kind of underwater engg, maintenance and developmental works. The company has strategy of deploying vessels on long term charters as against in the spot market, therefore the cash flow for the future is better predictable.
All the ships are fully deployed right now and charter rates are also strong, due to strong demand for such vessels. In past due to focus on spot market and also due to some kind of accidents etc, the performance of company was quite erratic and thus valuations of stock suffered too much. Company’s balance sheet is quite robust with Zero debt, huge cash balances and it is also likely to generate almost Rs. 265 cr for year ending Dec.’09. With market Cap of just Rs 680 Crs, this stock with likely [for Dec’09] NAV of Rs 350 per share and EPS of Rs 70 appears dam cheap at Rs 200/-. We think by the time annual results for Dec’09 are announced, stock can easily reach 260-280. BUY.
Background
South East Asia Marine Engineering & Construction (SEAMEC), was promoted by Peerless General Finance & Investment Company, but latter on acquired by MNC giant Technip Group of France. The company operates in Multi support vessels (MSV) for diving and provides under water/sub sea engineering and construction, maintenance, inspection of under water structures construction, rescue operations and fire fighting and other support services for offshore oil/gas installations located in India or abroad.
The company started operating on a single DSV in Indian Offshore market, grown subsequently to own and operate 4 Vessels. Seamec-I with 1700DWT, Seamec-II with 2100DWT, Seamec-III with 2100DWT and SEAMEC Princess. All vessels are deployed on various contracts. As demand for such vessels is strong, during intermediate period of contract also, they can undertake short term charters. The oil and gas sector in India as well as abroad, is witnessing significant investment activity and potential still appears to be huge. With oil prices recovering from lows of $30 to current $80, the E&P activities in oil & Gas sector will remain robust. Plus most of the E&P activities are in deep sea, so need of such support vessels is growing much faster.

Risks and concerns
Fluctuating crude oil prices causing downturn in oil exploration and production activities can affect the revenue stream of the company. Dry docking of vessels at regular interval will have loss of working days and may put pressure on OPM in later years. Company usually adopts the policy of conserving cash for asset creation and don’t give dividends.
Recommendation
Looking to the attractive earnings of Rs. 70/- and cash generation of around Rs 265 Crs in this year and with a debt free status; the stock looks quite attractive. Mostly company uses cash generation to buy fresh vessels, with huge cash it can buy more vessels, which can shore up earnings in future. With promoters holding of 75%, chances of delisting can’t be ruled out, but in that case also, buy back price could be quite attractive [over 350/-].

Source: Internet (Valuenotes by Anand Rathi)

Stock Idea: Voltas Ltd.

This Tata company has posted a set of encouraging results for the second quarter ended 30th September 2009. Net sales was up 11% on a YoY at Rs.1098 crore. Operating profit grew 52% at Rs.133 crore. Net profit was up 50% at Rs.92 crore. Cost cutting in manufacturing helped boost the margins.
Its Electro-mechanical projects and services unit showed a 22% rise in revenue at Rs.769 crore. On the other hand, engineering unit continued to feel the brunt of the recession and poor off take of capital goods led to this unit show a 28% lower growth in revenue. This is also the unit which supplies textile machineries and given the state of the textile sector, naturally this unit has taken a hit. The Unitary cooling system unit showed a 27% rise in revenue.
The company procured raw materials till Q2 at prices which were negotiated at the beginning of the year and now, from Q3 onwards, the higher costs would have some impact on the costs.
45-50% is the contribution of international business to overall revenue and profit. The Abu Dhabi Formula One project executed by Voltas is to be inaugurated in November and Burj Dubai, the largest building in the world, would be inaugurated in December.
The company electro-mechanical unit has an order book of Rs.4359 crore of which 25% is from the Middle East. The company plans to increase its presence in the Middle East, especially in UAE and Qatar.
The company has on August 25, 2009 increased its stake in Rohini Industrial Electricals, a subsidiary of the company, for a consideration Rs.23.56 crore from 51% to 67.33%.
Demand continues to remain low and the company has stated that inquiry is yet to pick up. Q4 is expected to be much better. Usually for the company, Q1 and Q4 are the best seasons so even on a cyclical basis, its best to wait out Q3. The aim of the company is to more or less maintain growth at the present levels in Q3.

Source: Internet (By S P Tulsian)

Intraday Trading Calls for 30th October

Indian Stock Market may open positive and remain good positve but very volatile today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VOLTAS	Buy Above	154.25	157.60	162.00
	Sell Below	152.45	149.05	146.00
TRIVENI ENGI	Buy Above	106.20	110.35	115.00
	Sell Below	103.40	99.25	95.00
TANLA SOLUTION	Buy Above	61.50	64.10	67.00
	Sell Below	59.70	57.20	54.00
IDFC	Buy Above	147.60	151.35	155.00
	Sell Below	145.05	142.05	139.00
JAIPRAKASH ASSOCIATE	Buy Above	213.20	218.55	224.00
	Sell Below	209.40	204.35	198.00
BAJAJ HIND	Buy Above	210.10	216.45	224.00
	Sell Below	207.55	202.60	196.00
NAGARJUN CONSTRUCT	Buy Above	148.60	153.75	158.00
	Sell Below	146.35	142.70	138.00

Buy GTL INFRA (532775) at CMP Rs. 30/- Very Short Term Target Rs. 38/-.

GOOD LUCK