GTC Industries: More realty than cigarettes

· GTC Industries is a Sanjay Dalmia group company engaged in manufacturing cigarettes with an installed capacity of 17,322 million cigarettes per annum.

· For FY 07, the total income of the company was placed at Rs.201.15 crores, PBT of Rs.27.65 crores and PAT of Rs.51.72 crores. The increase in PAT over PBT is due to tax refund of Rs.24.07 crores.

· The present equity of the company is at Rs.17.60 crores, of which 44.44% is held by the promoters, while balance is by the public.

· For June 07 quarter, total income was placed at Rs.47.14 crores, PBT of Rs.5.25 crores and PAT of Rs.3.95 crores giving an EPS of Rs.2.22.

· Sanjay Dalmia has been recently appointed as Chairman of the company while Anurag Dalmia as Vice Chairman.

· The net worth of the company became positive from FY 07, and hence the company was discharged as sick company, by BIFR, on 29-06-07.

· The concern is on the pending income-tax appeals, against the company, with Apellate Authorities, for I-Tax demand of Rs.762 crores and penalty of Rs.488 crores. However, management is confident of winning these appeals, as similar appeals have gone in company’s favour.

· The company has real estate, in the form of huge land, at Hyderabad, Vadodara and Mumbai and also have necessary exemption under Urban Land Ceiling Act for land in Maharashtra and Andhra Pradesh.

· The company intends to develop its Hyderabad Property in immediate future, either through joint development or alone. The company also has property at Vadodara which could also get unlocked either by development or outright sale.

· The company has two running plants in Mumbai, one at Vile Parle and another one at Chakala, commercial suburbs of Mumbai. The company may shift its operations of Vile Parle unit to Chakala and may develop Vile Parle property.

· Vile Parle property has developable area of about 15 lakh sq. ft. which could be developed as a commercial hub, as it is ideally located on S. V. Road. This property is valued at Rs.2,500 crores.

· All the properties of the company are valued at over Rs.3,000 crores, including Chakala property, which is about 2.5 acres, valued at close to Rs.300 crores.

· The company is debt free, net off cash and bank balance. This is a remarkable feat for the company, as it recently, came out of BIFR and is now debt free.

· The share of the company is ruling at Rs.270 which works into a market capitalization of Rs.475 crores. This kind of valuation gets attributed to its core business, due to some of the strong brands of cigarettes of the company. Realty valuation comes close to Rs.1,700 per share.

· Share is a good bet at Rs.270 levels, mainly considering its realty values, which would get unlocked, sooner or later. Investors having long term horizon, can buy the stock.

Source: sptulsian.com

Markets Today

It was a fabulous follow on session for the markets after yesterday's surge as they closed on a new life time high. There has been no stopping for the bulls as the Nifty saw a neat triple digit rally and the Sensex was up over 375 points. This uptrend was without any signs of weakness and closing near the highest points of the day. Abundant liquidity in Asia and specifically India has taken the markets to such heights. On the earnings front, results are largely expected to be inline with expectations. Most of the Asia closed with substantial gains but Europe is more or less flat in the opening.
All the key BSE indices are ended in green with significant gains. Capital goods, realty, oil & gas and metal stocks are leading from the front.
Top gainers on the Sensex are L&T, VSNL, Suzlon Energy & Reliance Petro are up over 6%, BHEL up 4%, Bharti Airtel up 3.81% followed by ACC, Reliance Energy and ONGC.
Top losers on the Sensex are Bajaj Auto, Ranbaxy, Nalco, HPCL, BPCL, Maruti Suzuki and HUL.
Capital goods stocks are leading the uptrend with index pivotal like L&T and BHEL up over 6% and 4% each respectively. The capital goods index is up 4%.
Sensex was up 378.01 points or 2.07% at 18658.25, and the Nifty up 114.20 points or 2.14% at 5441.45.
About 1456 shares have advanced, 1511 shares declined, and 75 shares are unchanged.
The BSE Small Cap Index closed at 9,022.75 up 0.5%.
The BSE Midcap Index ended at 7,484.36 up 1.2%.
The BSE FMCG Index closed at 2,148.05 up 2.8%. Tata Tea, Nestle, P and G, United Spirits were among the gainers.
The BSE Metal Index closed at 14,443.52 up 3%. Jindal Steel, Shree Precoated, Hindalco, SAIL, JSW Steel were among the gainers.
The BSE Capital Goods Index was up 4% at 16,631.35. Suzlon Energy, Punj Lloyd, Larsen, Triveni Engg, Praj Industries, Reliance Infra up over 5% each.
The BSE Auto Index closed at 5,456.93 up 0.5%. Apollo Tyres, Mah and Mah, Amtek Auto, Tata Motors, Escorts, Hero Honda were among the gainers.
The BSE IT Index closed at 5,049.00 up 3%. Tech Mahindra, Infosys, Mphasis, HCL Tech, Satyam ended higher.
The BSE Bankex was up 2% at 9,423.19. Bank of India, Axis Bank, Union Bank, Oriental Bank, ICICI Bank closed higher.
The BSE Oil and Gas Index closed at 10,550.55 up 1%. Reliance Petro, Reliance Natura, ONGC, Essar Oil, Petronet LNG closed in green.
The NSE cash turnover was at Rs 21218.50 crore and the NSE F&O turnover was at Rs 79786.18 crore. The BSE cash turnover was Rs 8510.97 crore. Total market wide turnover was at Rs 109515.65 crore.

Source: moneycontrol.com

Intraday Calls for 10th October

Market will open with gap up like 100-150 points up and remian positive but high volatility will be there.

Nifty Support 5200, 5160 Resistance 5390, 5500

Sensex Support 18000, Resistance 18500

Buy for Intraday:

Triveni Eng. (99) Target 115-120 SL 97

Balrampur Chini (71) Target 78-80 SL 69

Renuka Sugar (730) Target 760-775 SL 725

RCOM (706) Target 725 SL 700

IDEA (135.5) Target 140 SL 133

PFC (206) Target 212-215 SL 202

RPL (161) Target 165-168 SL 159

NTPC (217) Target 225 SL 215

KPIT Cummins (115) Target 120-125 SL 113

GMR Infra (167) Target 172-175 SL 165

Others: TTML, South Indian Bank, Indowind Energy, IGateGlobal, Patni Computers, HTMT Global.

Good Luck