Stock Idea: Sunil Hitech Ltd.

Sunil Hitech Ltd. (Code: 532711) (Rs.65.45) is engaged in the niche segment of fabrication, erection & testing and commissioning of bunkers, ESPs, boilers, TG sets in the power plants both in the private & public sectors. With a client list spanning BHEL, NTPC, Reliance Energy, Jindal Steel and Power, the SEBs of Maharashtra, Chhattisgarh and Madhya Pradesh, Sunil Hitech is also engaged in the overhaul and maintenance of plants to ensure proper functioning. The company also undertakes projects in the transmission and distribution segments. As of today, it has an all time high order book position of more than Rs.1300 cr., which is 4 times its FY08 turnover. Incidentally, the company has an under leveraged balance sheet with a low debt:equity ratio of 0.6 and can raise more debt comfortably. Despite the higher interest cost, it may end FY09 with a topline of Rs.500 cr. with PAT of Rs.20 cr. on a conservative basis. This translates into an EPS of Rs.16 on its current equity of Rs.12.30 cr. Secondly, it has huge reserves of Rs.145 cr. on its small equity leading to a healthy book value of Rs.128. Against the net current assets of Rs.120 cr., the stock is available at a market cap of less than Rs.100 cr., making it a steal.

Source: Moneytimes (internet)

Stock Idea: Aban Offshore Ltd.

Aban Offshore Ltd. (Code: 523204) (Rs.750.10) is engaged in providing oil field services for offshore exploration and production of hydrocarbons in India and abroad. With 21 offshore assets, it is among the top ten offshore drilling asset owners in the world. It possesses fifteen jack-up offshore drilling rigs, three drill ships, one floating production platform and a jack-up rig & drill ship each on bare boat charter. It is among the few global companies to facilitate oil exploration at water depths ranging from 250 ft to 7000 ft and drilling depths ranging between 20,000 ft and 30,000 ft. Having its footprint globally across 10 nations, the company boasts of serving leading global and domestic E&P companies such as ONGC, Shell Brunei, Shell Malaysia, Cairn Energy, Petronas Carigali, Exxon Mobil, Chevron, Hardy Exploration, Oriental Oil Dubai, ROC Oil China, and GSPC to name a few. Due to new vessel deployment and higher charter rate, it may clock a consolidated turnover of Rs.3250 cr. with NP of Rs.500 cr. This will translate into an EPS of Rs.129 cr. on its diluted equity of Rs.7.75 cr. Meanwhile due to likely distress selling by FIIs, its share price of company has tumbled down to Rs.1000 level from a high of Rs.5500 in January 2008. Hence the currently scrip is trading at a P/E multiple of merely 8, which is grossly cheap for a company of such calibre. Keep accumulating at sharp declines.

Source: Moneytimes (Internet)

Stock Idea: Navin Fluorine Ltd.

Navin Fluorine Ltd.
BSE Code: 532504/NSE
Last Close: Rs.133
Navin Fluorine is the largest integrated fluorochemicals complex in India since 1967. The company has an equity of just Rs.10.10 cr. but has huge reserves of over Rs.215 cr. The promoters hold 37.16%, corporate bodies hold 15.53%, government financial institutions hold 7.05% and the public holds 38.69% stake in the company. The company has posted excellent Q2FY09 results. Net sales jumped 73.57% while net profit was Rs.17.87 cr. against a loss of Rs.1.81 cr. in Q2FY08. In H1FY09, the company’s sales zoomed 75.45% to Rs.222.82 cr. while net profit was Rs.36.83 cr. against a loss of Rs.1.89 cr. in H1FY08. The company has recorded an EPS of Rs.17.69 in Q2FY09 while the H1FY09 EPS was Rs.36.47. After posting marvellous numbers, the company has declared 50% interim dividend as against FY08 full yaer dividend of 40% and the record date for dividend is 7th November 2008. Its 52-week high/low rate is Rs.455/Rs.130. At the current level, the stock is available at P/E ratio of just 2.9. Investors can buy this stock every decline. On the upper side, it can go up to Rs.175-201 levels in coming days.

Source: Moneytimes (internet)