Stock Idea: Seamec Ltd.

Seamec Ltd. is engaged in providing support services including marine, construction and diving services to offshore oilfields in India and abroad and operates 4 multi purpose support vessels (MSVs) for diving and providing underwater / sub-sea engineering and construction, maintenance and inspection of underwater structures, rescue operations and fire fighting and other support services for offshore oil and gas installations.

The company has 4 MSV – Seamec I, Seamec II, Seamec III and Seamec Princess. The company has recently acquired Seamec Princess for about Rs. 180 crores. This is giving US $ 65,000/day, which is resulting in better revenue and profits for the company.

The accounting year of the Company has been changed to year ending 31st March. The current year results will be published for 15 months from January 01, 2009 to March 31, 2010.

The performance for the fourth quarter ended 31st Dec 2009 was not very good, infact it was the poorest show during the entire year. Turnover and profit was lower as three of the four vessels owned by the company were in operation and one vessel was sailing from West Africa to Middle-East for mobilisation of the next contract, compared to corresponding period of the previous year where all four vessels were in operation.

If the company were to end the year in Dec, the performance, compared to 2008 has been more than spectacular to say the least. Net revenue is at Rs.384.49 crore v/s Rs.268.59 crore posted in 2008. Net profit currently stands at Rs.232.62 crore, which is almost 5 times more than that posted in 2008. What is noteworthy is that NPM is very healthy at over 60%. On an equity of Rs.33.90 crore, EPS stands at Rs.68.62. 

At the current price of Rs.203, the stock price is ruling at a PE of less than 3.

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

Intraday Trading Calls for 1st April

Indian Stock Market may open positive and remains highly volatile for the day today. A good buying and positive closing expected today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
HANUNG TOYS	Buy Above	229.25	234.70	240.00
	Sell Below	227.30	223.15	218.00
ATLANTA	Buy Above	227.65	232.50	238.00
	Sell Below	225.00	220.65	215.00
CAIRN INDIA	Buy Above	306.25	310.40	314.00
	Sell Below	303.70	300.00	295.00
KSK ENERGY	Buy Above	185.55	190.25	196.00
	Sell Below	183.05	178.65	173.00
AIA ENGINEER	Buy Above	405.75	412.65	420.00
	Sell Below	401.35	393.55	386.00
CAMSON BIO TECH	Buy Above	195.00	201.65	208.00
	Sell Below	191.05	185.35	180.00
VALECHA ENG	Buy Above	177.70	182.55	187.00
	Sell Below	173.45	168.40	164.00

GOOD LUCK

Intraday Trading Calls for 31st March

Indian Stock Market may open positive and remains highly volatile for the day today. A good buying and positive closing expected today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
JYOTI STRUCTURE	Buy Above	167.25	171.65	176.00
	Sell Below	165.30	161.70	157.00
ATLANTA	Buy Above	240.00	245.65	251.00
	Sell Below	236.40	232.05	227.00
CAIRN INDIA	Buy Above	300.00	305.15	310.00
	Sell Below	297.05	293.25	288.00
HIND OIL EXPLO	Buy Above	230.00	235.15	240.00
	Sell Below	227.55	222.70	216.00
SELAN EXPLO	Buy Above	427.60	235.45	445.00
	Sell Below	422.40	415.35	405.00
SASKEN COM	Buy Above	174.20	178.65	183.00
	Sell Below	172.45	168.50	165.00
GODREJ INDUSTRIES	Buy Above	142.20	147.15	152.00
	Sell Below	140.00	137.45	132.00

GOOD LUCK

Intraday Trading Calls for 30th March

Indian Stock Market may open positive and remains highly volatile for the day today. A good buying and positive closing expected today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VIDEOCON INDUSTRIES	Buy Above	232.10	237.55	242.00
	Sell Below	229.35	224.05	218.00
ATLANTA	Buy Above	218.75	224.65	230.00
	Sell Below	216.05	210.45	205.00
CAIRN INDIA	Buy Above	295.65	301.55	307.00
	Sell Below	292.45	287.65	282.00
HIND OIL EXPLO	Buy Above	228.70	234.15	240.00
	Sell Below	225.15	220.70	215.00
SELAN EXPLO	Buy Above	424.55	432.70	441.00
	Sell Below	419.35	412.60	404.00
PUNJ LLYOD	Buy Above	178.80	184.35	190.00
	Sell Below	176.45	171.80	167.00
VOLTAS	Buy Above	177.25	180.35	184.00
	Sell Below	175.55	172.60	170.00

GOOD LUCK

Intraday Trading Calls for 25th March

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

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	220.00	225.75	232.00
	Sell Below	217.25	212.75	207.00
ATLANTA	Buy Above	223.05	228.65	234.00
	Sell Below	220.00	215.35	220.00
CAIRN INDIA	Buy Above	294.05	300.00	307.00
	Sell Below	291.35	286.45	281.00
HIND OIL EXPLO	Buy Above	237.80	244.70	252.00
	Sell Below	235.05	231.40	225.00
JINDAL SAW	Buy Above	220.65	225.35	231.00
	Sell Below	218.35	212.65	208.00
ALEMBIC LTD.	Buy Above	50.25	52.55	55.00
	Sell Below	49.35	47.25	45.00
APTECH	Buy Above	171.65	176.25	182.00
	Sell Below	169.45	165.45	161.00

GOOD LUCK

Stock Idea: McLEOD RUSSEL

This B.M.Khaitan tea company has been literally on the boil. With tea prices perking up, the company has been able to brew a set of very good financial performance for the third quarter ended 31st Dec 2009.

The world's single largest producer of tea with gardens spread across India, Vietnam and Uganda, posted on a YoY, a whopping 184% jump in net profit at Rs.137.94 crore. This super jump in net was on account of the production going up from 205 lakh kgs to 227 lakh kgs. Sales volumes jumped up from 211 lakh kg to 235 lakh kg. More importantly, its sales realization, on an average for Q3 was at Rs.142.41 kg vis-à-vis Rs.114.91 per kg.

The bullish cycle in tea is expected to continue over the next 4 years. Next year, prices are estimated to remain high due to global tea shortage on account of drought in Kenya, Sri Lanka and India, which account for more than 50% of global tea exports. There has been a 32% drop in crop harvest in Sri Lanka and 21% drop in Kenya.

Tea prices in India are expected to remain at the current high levels till end of this year. The company aims to have a revenue of Rs.1,000 crore in current fiscal and net profit is expected to be around Rs. 480 crore for the full year.

Stay invested as FY10 will end at a historical high performance for Mcleod.

Source: Internet (premiuminvestments.in S P Tulsian)

Stock Idea: Dish TV

Expect DTH industry to add 10 million subscribers in each of the next three years. Based on our interaction with the managements of various DTH operators, we remain confident of our industry wide subscriber addition forecasts. We expect Dish to remain the market leader for the next five years, despite an assumed decline in net adds market share from 25.6% in FY3/09 to 22% in FY3/10E and thereafter. Dish has delivered positive EBITDA for three consecutive quarters, clearly surprising us and the Street positively. We now forecast EBITDA margins to double to 20.1% in FY3/11 from 9.3% in FY3/10E. Despite assuming no major up tick in margins in FY3/12 (20.5%), we forecast EBITDA to increase by over 3x to Rs3.7bn from Rs1bn in FY3/10E. Positive investment view based on strong improvement in operating cash flows, led by strong growth in subscriber base and tight cost control. We expect Dish TV to add 4.4m subscribers over the next two years, implying a CAGR of 27.4% in the subscriber base for FY3/10–12. Dish TV management has done a commendable job in capping the content cost as a percentage of subscription revenues by entering into fixed-price contracts; we view this as the key reason for the sharp rise in EBITDA. Funding overhang removed. Sixty-four percent of the money raised in a rights issue has been infused into the company, and we do not view funding as a bottleneck to growth.
Key Developments
Dish TV gadget to help switch DTH operator Dish TV, the country's largest DTH operator, proposes to launch Conditional Access Modules (CAM) in May that would help subscribers of other DTH players to switch over to the company's platform at a lower price. The proposed move by Dish TV, the first time in the country by any operator, could indirectly trigger inter-operability in the DTH sector. The company also proposes to launch High Definition TV (HDTV) services in the next three months. CAM is a card-like gadget that can be inserted in the STB, which will enable the subscriber to shift from the current DTH provider to another.
The licensing norms of the Telecom Regulatory Authority of India (TRAI) mandate that the STBs offered by the DTH players should be CAM-compliant or have an empty space where the card could be inserted.

Valuations
At CMP of Rs 36.6, the stock trades at 5.1x TTM EV/sales of Rs 987 crore. We believe the industry is looking attractive mainly on back of digitalization growth with HITS policy approved by cabinet. To capture the growth coming ahead we believe Dish TV is better placed than its peer group. We recommend ‘BUY’ on the stock with a price target of Rs 50 representing upside potential of 36%.

Source: Internet (Valuenotes by KRChoksey)