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

Intraday Trading Calls for 11th March

Indian Stock Market may open flat to positive and remains highly volatile for the day today. A flat Positive 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	216.20	222.75	228.00
	Sell Below	213.45	208.15	203.00
KPIT CUMMINS	Buy Above	122.65	126.35	130.00
	Sell Below	120.30	116.70	114.00
PURVANKARA	Buy Above	106.75	111.25	116.00
	Sell Below	104.35	100.20	96.00
HANUNG TOYS	Buy Above	160.75	165.25	170.00
	Sell Below	158.45	154.15	150.00
WHIRLPOOL INDIA	Buy Above	172.70	177.45	182.00
	Sell Below	170.00	165.35	160.00
VIDEOCON INDUSTRIES	Buy Above	233.25	239.45	245.00
	Sell Below	230.20	224.55	218.00
PRISM CEMENT	Buy Above	56.25	58.45	61.00
	Sell Below	55.45	53.35	51.00

GOOD LUCK

Stock Idea: Pennar Industries CMP 31

Business transformation, financial restructuring and productivity coupled with general buoyancy in Indian economy leads to impressive turnaround Transformation from commodity play to niche engineering as value added products ratio enhanced from 20% in early part of decade to 70% in FY09 and expected 80% in FY11 Riding big on Railways expansion of Rs 2,500 bn in the current five year plan; Pennar aims to increase revenue share from Railways to 30% by FY11 from 24% in FY09
Pennar has diversified exposure to various industries like auto, railway, building products, pollution control, white goods, road safety, electrical and fabricated products Enjoy strong relationship with Tata Motor, Ashok Leyland, TVS, ICF, BEML, L&T, ABB, Thermax, BHEL, Alstom Power, HCC and IVRCL.

Robust revenue and EBITDA CAGR of 41% and 96% in last six years; EBITDA margin consistently improved from meager 1.4% in FY02 to 11.6% in FY09, and further to 13.7% during 1HFY10 Financial position dramatically improved as D/E ratio enhanced from 13.3x in FY05 to 0.6x in FY09
Gradually enhancing metal capacity in verticals like heavy engineering without pressurizing the balance sheet as major expansion funded by internal accruals High margin pre-engineered building systems is new growth driver; 90% subsidiary Pennar Engineering Building System (PEBS) has technical know-how agreement with NCI Building Systems, USA, one of the world’s largest pre-engineered building solution providers with sales of $967 mn in CY09 (Nov)
Stock currently trades at just 1.3x cash profit during FY10-12 Completed Buyback of 3,125,000 equity share (~2.5% of capital) at a price of ~ Rs 25/share, likely to improve sentiment and reduce float from market.

Valuation
PIL is trading at P/E and EV/EBITDA of 4.4x and 2.9x on FY12 estimated earnings respectively. We believe the market would recognize PIL’s transformation into an engineering company with consistent increase in cash profits and result in re-rating of the stock. We recommend ‘BUY’ with SOTP TP of Rs 95 (206% upside from CMP), where we value standalone
business at Rs 81 (7.0x FY12 EV/EBITDA – inline with 4-year average multiple of 6.8x) and Rs 14/share for PEBS.

Source: Internet (Valenotes)

Intraday Trading Calls for 10th March

Indian Stock Market may open flat to positive and remains highly volatile for the day today. A flat Positive closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SASKEN COMM.	Buy Above	178.65	184.25	190.00
	Sell Below	175.40	171.35	167.00
KPIT CUMMINS	Buy Above	130.00	133.55	137.00
	Sell Below	127.75	124.25	120.00
PURVANKARA	Buy Above	103.80	108.20	114.00
	Sell Below	101.60	98.30	95.00
PRITHVI INFO	Buy Above	72.75	76.25	80.00
	Sell Below	71.35	68.15	65.00
WHIRLPOOL INDIA	Buy Above	172.70	177.45	182.00
	Sell Below	170.00	165.35	160.00
ATLANTA	Buy Above	200.00	206.70	214.00
	Sell Below	197.05	191.45	186.00
BRFL	Buy Above	210.80	216.75	224.00
	Sell Below	207.50	202.10	196.00

GOOD LUCK

Stock Idea: Elder Pharmaceuticals Ltd.

Elder Pharmaceuticals Limited—BUY—355—INR
Sector— Pharmaceuticals (Bulk drugs & Formulations)
Regd.off— C-9, Dalia Industrial Estate, Andheri (W.), Mumbai - 400053
Listed— BSE, NSE
Company overview—
Company started its operations in 1989 and established its factory in June. In 1991 company started Research and development center for its pharmaceutical products and got recognition from the Government of India. In 1994, company tied up with Haw Par, Singapore to establish its presence in the market. Company came into stock market in 2000 by public issue. In 2003 company commissioned Patalganga Bulk Drug plant. Company ranked among the first 50 companies in India as per ORG Audit. Company's strength lies in marketing products, which are original research products where there are no patent violations and the company has created its own brand equity in pharmaceutical marketing. Elder, which has it's headquarter in Mumbai, is proficiently supported by branch offices in Chennai, Kolkata and New Delhi. It has sales depots in almost every state in the country. Company’s multi expert sales team hence ensures adequate focus on each of the covered therapeutic segments. The focus is on promotion of products in the wound care segment, antibiotics, gastroenterology, respiratory and painkillers segment. Company is engaged in the manufacture of a wide range of pharmaceutical products through research and development and also in the manufacturing and marketing of diverse products through licensing agreements with international pharmaceutical companies. All the company’s plants conform to and follow the most stringent quality control standards recommended as per GMP guidelines.
Products & services—
Elder Pharmaceuticals principal activities include the manufacturing and marketing of prescription pharmaceutical brands, surgical and medical devices. Shelcal, Elder’s No.1 brand is one of the top brands in the Indian Pharmaceutical industry. It is one of the leading players in the pharmaceutical formulation market in India, being a market leader in three therapeutic segments - Women’s Healthcare, Wound Care and Nutraceuticals. Elder has a strong portfolio of brands like Shelcal, Eldervit and Chymoral among others that are leaders in their respective therapeutic segments and manufactured in various dosage forms like tablets, capsules, injections and liquids. Company has products for Antibiotic, Antihistamines & Antiallergics, Antacid & Antiflatulant, Antiulcers, Antidepressant, Anti inflamatory & Analgesics, Antispasmodics, Antifungal, Laxative, Antihelmentics, Cough syrups, Steriods, Antimalarial, Antidiarrhoeal, Cardiac care, Eye/Ear Care, Hematinics, AntiTB, Nutritional Supplement etc. Company has entered into alliances with foreign companies for manufacture and sale of their products under license from them. It also has a presence in the OTC segment and sells the Tiger range of products from Singapore, SOLO Eucamenth tablets, AMPM mouthwash and toothbrushes. The company has diversified into sale of medical equipments. Export markets include Switzerland, Germany, England, Denmark and a few African countries. Company exports its pharma products to Colombia, Vietnam, Madagascar, Mauritius, Nigeria, Uganda, Sri Lanka & Mexico.
Company has alliances and marketing rights with ABC Ltd, USA Oxo-Chemie, Germany Paul Hartmann, Germany, Angelini, Italy GEA Ltd, Denmark TRB Chem., Switzerland Alfa-Wasserman, Italy, Sigma-Tau, Italy Tanabe, Japan Fujisawa, Japan Uriach, Spain, Covex, Spain Ferrer, Spain, Blistex, USA Haw Par, Singapore, Invacare, USA, APR, Switzerland Zambon, Italy Biorga, France Stiefel, USA Sciclone, USA Poli, Switzerland etc. for various products.
Valuation—
Company has strong position in National and International Health Care arena, with focus on research and global collaborations. At current market price, stock is trading at 8.75 P/E multiple of its FY2011 estimated EPS. We recommend investors to "BUY" "Elder Pharmaceuticals Limited" with medium to long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)