Peninsula Land has posted flat results for quarter ending September 08, with PBT placed at Rs.60.82 crores for the quarter against Rs.60.28 crores of the corresponding quarter in the previous year. Even total income for the quarter, though marginally down, could be termed as flat, which is at Rs.110.54 crores for the quarter against Rs.117.37 crore of Q2 FY 08.
The company is developing two major projects in Mumbai viz. Ashoka Towers at Parel and Ashoka Garden at Sewree. The first project is owned by the company, which has been more than 50% complete with over 95% project having been sold by the company. So, inspite of a sharp rise in realty prices in Parel, the company has not gained much as entire project has been sold, below Rs.10,000 per sq. feet against Rs.20,000 per sq. feet ruling now, which at one time had crossed Rs.26,000 per sq. ft. However, with progress in the project, the company is booking part of its revenue and profits. Also, this project has started giving transfer fees to the company, as buyers of flats in the project have started re-selling flats.
In case of Ashoka Garden project at Sewree, the company is entitled to receive 22% of sale proceeds, as its share of profit, as it is being developed for Swan Mill. Another property of Swan Mills at Kurla, in which the company is entitled for same 22% revenue sharing, is almost complete.
So not much improvement in the business activities of the company are visible or expected and hence the same kind of results are expected for the next two quarters as well.
PAT for the quarter rose to Rs.54.60 crores (Rs.33.69 crores) due to lower tax burden of Rs.2.78 crores (Rs.22.94 crores), which has resulted in higher EPS of Rs.2.08 against Rs.1.58 of Q2 FY 08.
FY 09 is likely to have an EPS of Rs.7 and share is presently ruling at Rs.25. Present market capitalisation of Rs.700 crores factors in the expected profit from the undergoing projects.
Due to steep corrections having seen in other realty stocks, this has also corrected but further downside looks minimal.
Source: sptulsian.com
Monday, October 20, 2008
Stock Idea: Peninsula Land
Intraday Trading Calls for 20th October
GOOD LUCK
Friday, October 17, 2008
Intraday Trading Calls for 17th October
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
BANK OF BARODA (316)
Buy Above 318.65 Target 325.15, 332.00
Sell Below 314.20 Target 308.35, 302.00
VOLTAS (67)
Buy Above 68.45 Target 71.55, 75.00
Sell Below 65.70 Target 63.15, 60.00
INDIABULLS REALEST (116)
Buy Above 117.75 Target 112.80, 120.00
Sell Below 114.40 Target 110.05, 104.00
HDIL (129)
Buy Above 131.20 Target 136.40, 142.00
Sell Below 127.40 Target 122.15, 116.00
HPCL (228)
Buy Above 230.40 Target 237.25, 245.00
Sell Below 225.40 Target 220.10, 214.00
AXIS BANK (622)
Buy Above 626.20 Target 635.15, 650.00
Sell Below 618.40 Target 610.10, 595.00
Stock Idea: Electrosteel Castings
Due to this, cash profit of the company for the quarter is at Rs.73.03 crores against Rs.38.77 crores for the corresponding quarter in previous year and Rs.77.18 crores for FY 08. This is without doing any adjustment for forex and derivative MTM provisions.
EPS for the quarter is placed at Rs.1.50 while cash EPS is at Rs.2.60.
The Board of the company proposes to issue 4.24 crores equity shares of Re.1 each, to two non-promoters overseas companies, at Rs.38 per share. Even promoters of the company have recently converted 6.25 lakh warrants into equity at Rs.43.80 per share, against the current price of share ruling at Rs.19. This is in the backdrop of the fact that promoters of Hindalco and Rajashree Sugars have not opted to convert or subscribe warrants due to fall in market price.
As on 30-09-08, the company had MTM loss of Rs.32.14 crores, arising out of foreign exchange contracts for hedging future exports against currency risks. Outstanding derivative contracts had MTM loss of Rs.19.81 crores as at 30-09-08. Though concern on these losses remains, but if the company has provided for it, and still has been able to post good growth in its bottomline, one should not take them with too much concerns.
Share having a book value of Rs.42 is now ruling at Rs.19 and FY 09 EPS is expected to be close to Rs.10 from its normal operations. Maybe, forex and derivative loses should get over by end of FY 09 and the company thereafter, should be able to post its normal operations.
Due to the concerns of forex and derivative losses, even good results have gone unnoticed. At Rs.19 share holds long term potential.
Thursday, October 16, 2008
Intraday Trading Calls for 16th October
Indian Stock Market may open Nagetive with gap down But buying can be seen at lower levels so a bouce back expected from lower levels.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
Buy at Lower Levels (about 4-5% down) from previous close.
ELECTROSTEEL CASTINGS (19)
LG BALABROS (12.40)
TTK PRESTIGE (137)
CHENNAI PETRO (158)
HPCL (220)
BPCL (350)
Others: Sanwaria Agro Oil, Gokul Refoils, KS Oils.
GOOD LUCK.
Stock Idea: Mastek Ltd.
Mastek Ltd. has posted good results for first quarter ending September 08 with topline at Rs.261.65 crores against Rs.211.50 crores of the corresponding quarter of previous year, while PAT is at Rs.41.18 crores (against Rs.25.12 crores) translating into an EPS of Rs.15.27 against Rs.8.84 crores for the quarter.
On annualized basis, the same results should yield an EPS of over Rs.60, while stock is now ruling at Rs.230, resulting in a PE of less htan 4. Even book value per share, post this results, are at Rs.120 while the company had paid 200% dividend for FY 08.
Share price on 10-10-08 fell to its 52 week low at Rs.192 before the company announced its results. It may be noted that there is lot of apprehensions on the growth of the I.T. companies, especially after crisis being seen in BFSI sector in U.S. and Europe. But considering the growth having posted by the company, coupled with its financial position, share at Rs.225 qualifies a safe bet if someone has a view of 6 months on the stock.
Source: sptulsian.com
Stock Idea: RS Software
RS Software a tiny software company is trying to make its presence felt by posting better results for the quarter ended September 08, wherein PAT of the company of Rs.178 lakhs for the quarter, far exceeds PAT of FY 08, which was at Rs.117 lakhs.
There seems to be no correlation between the profitability over the quarters, as also in regard to EPS stated by the company, for various periods. For FY 08, on equity base of Rs.744 lakhs, with PAT of R.117 lakhs, EPS is stated at 16 paise, while for September 08 quarter, on PAT of Rs.178 lakhs, EPS on equity of Rs.744 lakhs is stated at Rs.2.18.
The sole aim of the company is to create sensation by publishing its quarterly results with blocks of “Net Profit up 100 times” etc. The sole aim of the promoters of the company are to have market operations and to trap the investors at the higher levels. Share now ruling at Rs.18 had its 52 week high low of Rs.52 and Rs.15 and when established mid cap I.T. companies are available at a PE multiple of 3 to 4 times, who would be interested in these manipulative stocks.
Time seems to have come where management must refrain themselves from indulging in these gimmicks as also for the investors to take a fundamental view on the tock.
Source: sptulsian.com
