Stock Idea: NRB Bearings Ltd.

NRB Bearings Ltd— BUY—65—INR
Sector — Bearings
Regd.Off.— Dhannur, 15 Sir P M Road Fort, Mumbai, Maharashtra-400001
Listed — NSE, BSE.
Company overview—
NRB bearings limited was incorporated in 1965 as an Indo-French venture with Nadella, pioneering the production of needle roller bearings in India. NRB acquired SNL Bearings Limited (SNL formerly Shriram Needle Bearings Industries Limited) in June 2000. The TUV Managements services (Gmbh), internationally acclaimed registrars awarded the QS 9000 Corporate Certification for NRB bearings at its corporate office and all of its plants in the year 2000. Over the years company has expanded to five modern manufacturing facilities producing needle, spherical, cylindrical, wide-inner ring bearings, tapered roller bearings and ball bearings. With continual thrust on tailoring bearings to suit specific needs, company has successfully developed customization and application expertise as their specialty. Growing skills and precision over years have won NRB worldwide acceptance, even in markets as demanding as Europe, south East Asia and Australia. Company is India’s most diversified bearings manufacturer. The company also has an agency division that handles sales and distribution for Defontaince SA-Rollix, Wschneeberger AG, Nadella, Gamet Bearings, IBC Walzalager Gmbh, Hallite Seals International Ltd., Agathon AG and Sferax SA. Company has a marketing JV with Switzerland-based Schneeberger. Company markets Schneeberger’s products such as high precision linear motion products and measurement systems in India.
Products & services—
Company's activities are organized into three divisions -- general bearings, needle bearings and agency. The general bearings division set up in 1982 manufactures cylindrical roller bearings. It later diversified into spherical roller bearings and ball bearings in technical collaboration with Ransome Hoffman Pollard International (RHP), UK. In 1995, its product range was diversified again by including taper roller bearings with technical know-how from SNR Roulements, France. Company has its R&D division in Thane, which is moving towards to become a complete bearing solution provider. It has full-fledged testing facilities and computer aided design center. The products of the company find application in light, medium and heavy commercial vehicles.
Company’s list of customers include Maruti Udyog, Mahindra & Mahindra, Telco, Ashok Leyland, Bajaj Tempo, Bajaj Auto, LML, TAFE, Siemens, ABB, HMT, Kelvinator, Lucas TVS and LMW. Company's agency division, works as an intermediary for a number of foreign companies in UK, France, Germany and Switzerland such as RHP, Gamet, Nadella, Rollix, IBC, Rohm, Schneeberger, Kugler SA and Forsheda. On quality front all the plants of the company and its corporate office is accredited with QS-9000 certificate by TUV, the internationally acclaimed registrars. Earlier the company and all its plants have been certified for ISO-9002.
Valuation—
Over 30% of the domestic Ball Bearings demand is met by imports in the present scenario. Company is looking towards inorganic, organic Expansions and optimum capacity utilizations. At CMP, stock is trading at only 8.74 P/E multiple of its FY2011 estimated EPS. We recommend investors to “BUY” “NRB bearings Limited” with medium to long-term investment prospects.

Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea: Sunil HiTech

This company is in the business of fabrication, erection and commissioning related works required for power plants. Financially, the company has been a consistent performer but Q3 ended 31st Dec 2009 was not very good. A fall in topline and despite rationalization of costs, net profit remained low.
For Q3FY10, QoQ, net revenue was down 23% at Rs.154.61 crore and net profit fell 49% at Rs.6.39%. OPM margin was highest during the fiscal at 14.59%.
A look at the 9MFY10 performance shows that net sales was at Rs.550.07 crore v/s Rs.598.21 crore posted in FY09. Net profit was at Rs.27.46 crore compared to Rs.10.30 crore for FY09. Clearly, FY10 will end on a much higher note.
What is noteworthy in the company is its high order intake. In Q3FY10, it won Rs.642 crore orders which was 45.215 of its net order book. Its pending order book till date stands at Rs.2062 crore, which is pending to be executed in 24-30 months. The company is diversifying from the current stream of business and getting into whole time balance of plant (BOP) contracts for thermal power plants. This new diversification came through when it won 250 MW 488 crore order from Mahagenco. Its other big orders are from Koradi Thermal Power Station order and another from L&T for 193 crore.
In FY11, the company expects to have a topline of around Rs.1000 crore and net profit margin, it expects to maintain at 4.5% levels. The company will take a while to establish itself as a full fledged EPC, managing the entire plan know-how. But it surely puts the company into a league where it can now bid for projects above Rs.500 crore but within Rs.1000 crore.

Source: Internet (premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 18th March

Indian Stock Market may open flat to positive and remains highly volatile for the day today. Some profit booking expected at higher levels but a 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
INDIA INFOLINE	Buy Above	124.10	127.65	131.00
	Sell Below	122.55	120.00	117.00
PURVANKARA	Buy Above	105.60	109.20	113.00
	Sell Below	103.70	100.20	96.00
VOLTAS	Buy Above	168.70	173.10	176.00
	Sell Below	167.10	163.20	158.00
JINDAL SAW	Buy Above	220.00	225.75	232.00
	Sell Below	216.35	211.05	205.00
ADHUNIK METALIK	Buy Above	121.75	126.10	130.00
	Sell Below	120.00	117.15	114.00
VIDEOCON INDUSTRIES	Buy Above	232.25	238.20	244.00
	Sell Below	229.35	223.70	218.00
CAIRN INDIA	Buy Above	280.55	286.15	292.00
	Sell Below	277.35	272.60	268.00

GOOD LUCK

Intraday Trading Calls for 17th March

Indian Stock Market may open flat to positive and remains highly volatile for the day today. Some profit booking expected at higher levels but a 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	221.25	226.45	232.00
	Sell Below	218.45	212.65	207.00
WALCHAND NAGAR IND.	Buy Above	241.20	248.35	255.00
	Sell Below	237.60	231.55	225.00
VOLTAS	Buy Above	168.10	172.35	176.00
	Sell Below	166.40	162.70	158.00
JINDAL SAW	Buy Above	216.25	221.75	227.00
	Sell Below	213.35	208.55	202.00
SAIL	Buy Above	237.60	242.55	248.00
	Sell Below	233.70	228.40	223.00
VIDEOCON INDUSTRIES	Buy Above	232.15	238.20	244.00
	Sell Below	229.35	223.70	218.00
SASKEN COMM.	Buy Above	188.55	194.20	200.00
	Sell Below	186.05	181.35	176.00

GOOD LUCK

Stock Idea: IDFC

This is a stock which, typically before the Budget, always see’s a major jump in its share price. And this time too, IDFC did not disappoint. It has been on the surge since the Budget which, as usual, gave immense fillip to infrastructure development.

The company is on a sound footing. Its performance for 9MFY10 indicates that the slowdown which it has witnessed in FY09 is now left far behind. Net Interest Income (NII) increased by 20% on YoY of which NII from infrastructure loans increased by 30% while NII from treasury operations decreased by 36%. Non interest income saw a huge 50% jumo and this was mainly on the back of its asset management business which saw an increase of 1.67 times over last fiscal.

PBT rose 30% and PAT was up 32% at Rs.834 crore. Its balance sheet size grew by 4% to Rs.31,207 crore as at December 31, 2009. Net Loan book increased by 12% and its total exposure at the end of 9M was at Rs.34,757 crore. Net NPAs was placed at 0.19% of outstanding loans and interestingly, no new NPA was seen during 9M FY 2010. Net worth stood at Rs.7,010 crore.

It major exposure is to energy sector at 40%, followed by transportation, telecom, industrial and tourism, strictly in that order. Analysis of its borrowing pattern shows that 10% is from forex loans while the lions chunk, 56% is through bonds and debentures.

As at 31st Dec 2009, Govt of India held 20.2%, FIIs/FDIs held 44.9%, FIs and insurance companies held 16.3%, Mutual funds held 5.8%, Bodies Corporate held 3.8% and only 9.5% is with the retail investor.

IDFC is a very good long term wealth creator. At every dip, accumulate this stock.

Source: Internet (premiuminvestments.in by S P Tulsian)

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)