Stock Idea: Allcargo Global Logistics Ltd.

This goods moving company, through its acquisition of ECU has a 50% exposure in Europe and USA. And with these companies being in a ‘recovery’ mode in 2009, the financial performance of Allcargo for year ended 31st Dec 2009 took a slight hit.

Net sales dropped 8% at Rs.2060.93 crore. EBIDTA was down 6%. But it managed to end 2009 with a 5% rise in net profit at Rs.129.95 crore.

During the year, the company sub-divided the face value of equity shares from Rs.10/per share to Rs.2 per share. On an equity of Rs.24.96 crore, its EPS for the year stands at Rs.24.96. Its reserves for the year stood at a healthy 954.48 crore, giving a book value of Rs.78. At the current EPS, the stock, at the current price of Rs.186, is available at a PE of 7 times only.

It has five business verticals - Container Freight Station (CFS), equipment hire, project logistics, less-than-container load (LCL) and warehousing. Full cargo load accounts for 85% of Allcargo’s business and LCL at 15%. In November 2009, it commenced third party logistics solutions (3PL) which now enables Allcargo to offer full service end to end logistics service package comprising in house expertise and facilities for freight forwarding, customs clearance, transport, warehousing and distribution services. With warehouses in Mumbai and Goa already operational and plans afoot for facilities in Indore, Hyderabad, Nagpur and Bangalore, Allcargo is on an aggressive expansion mode.

It has three CFS near JNPT, Chennai Port and Mundra Port. These three ports handle 95% of the container cargo in India and this puts Allcargo in an enviable position. It has also got 5 inland container depots at Dadri, Pithampur, Nagpur, Hyderabad and Bangalore, which is expected to give it around 55% market share soon.

In Sept 2009, Allcargo board approved an investment of 1.5 million warrants of Rs 10 each, convertible into equal number of equity shares of the company, at a price of at least Rs.934/share by Blackstone Group and its affiliates. With this, Blackstone’s total commitment to Allcargo now stands at $75 million. It would continue to have representation on the Allcargo board. Akhil Gupta, CMD of Blackstone Advisors India, is a director on the company’s board. As at 31st Dec 2009, Blackstone has a 14.63% stake in the company.

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

Intraday Trading Calls for 12th April

Indian Stock Market may open positive and remains highly volatile for the day today. A good 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
IVRCL INFRA	Buy Above	178.50	184.20	190.00
	Sell Below	175.60	171.35	168.00
ROLTA INDIA	Buy Above	194.20	200.00	205.00
	Sell Below	191.35	187.15	182.00
PUNJ LLOYD	Buy Above	184.25	189.45	195.00
	Sell Below	182.40	178.10	173.00
INDOWIND ENEGY	Buy Above	50.70	53.15	56.00
	Sell Below	49.30	47.10	45.00
CAIRN INDIA	Buy Above	308.65	312.45	316.00
	Sell Below	306.35	302.70	298.00
PURVANKARA PROJECTS	Buy Above	110.00	115.35	121.00
	Sell Below	107.40	102.65	98.00
ESCORTS	Buy Above	160.25	164.30	168.00
	Sell Below	158.20	154.35	150.00

GOOD LUCK

Intraday Trading Calls for 09th April

Indian Stock Market may open flat to positive and remains highly volatile for the day today. A good 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
APTECH LTD.	Buy Above	175.70	181.25	188.00
	Sell Below	173.50	168.55	164.00
SASKEN COMM.	Buy Above	180.25	186.45	192.00
	Sell Below	178.05	173.60	168.00
PRISM CEMENT	Buy Above	60.20	62.75	66.00
	Sell Below	59.10	57.20	55.00
INDOWIND ENEGY	Buy Above	49.60	53.15	56.00
	Sell Below	48.00	46.10	44.00
POWER GRID	Buy Above	112.25	116.40	120.00
	Sell Below	110.00	106.10	102.00
PURVANKARA PROJECTS	Buy Above	111.25	116.70	122.00
	Sell Below	109.40	105.20	100.00
IDBI BANK	Buy Above	124.20	128.10	132.00
	Sell Below	122.50	119.40	116.00

BUY PURVANKARA PROJECTS CMP Rs. 110/- Short to Med. Term Target Rs. 135-150/-.

GOOD LUCK

Intraday Trading Calls for 08th April

Indian Stock Market may open flat to positive and remains highly volatile for the day today. Some profit booking expected at higher levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
APTECH LTD.	Buy Above	171.60	176.45	182.00
	Sell Below	169.35	165.15	160.00
SASKEN COMM.	Buy Above	181.75	186.45	192.00
	Sell Below	179.05	175.40	170.00
PRISM CEMENT	Buy Above	61.75	64.20	67.00
	Sell Below	60.00	57.60	55.00
GODREJ INDUSTRIES	Buy Above	161.70	166.35	171.00
	Sell Below	159.45	155.55	151.00
POWER GRID	Buy Above	111.25	115.60	119.00
	Sell Below	109.35	106.10	102.00
ESCORTS	Buy Above	165.25	170.00	175.00
	Sell Below	163.15	159.20	155.00
IDBI BANK	Buy Above	127.25	130.10	134.00
	Sell Below	125.00	122.15	118.00

GOOD LUCK

Intraday Trading Calls for 07th April

Indian Stock Market may open pflat to positive and remains highly volatile for the day today. Some profit booking expected at higher levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
APTECH LTD.	Buy Above	173.20	178.45	184.00
	Sell Below	171.35	167.25	162.00
ATLANTA	Buy Above	242.65	248.70	254.00
	Sell Below	239.35	233.65	228.00
VIDEOCON INDUSTRIES	Buy Above	243.45	250.05	255.00
	Sell Below	240.00	235.45	230.00
ANSAL INFRA	Buy Above	78.70	81.55	85.00
	Sell Below	77.35	74.65	72.00
ADHUNIK METALIK	Buy Above	135.10	139.40	144.00
	Sell Below	133.40	130.20	126.00
ESCORTS	Buy Above	165.25	170.00	175.00
	Sell Below	163.15	159.20	155.00
IDBI BANK	Buy Above	124.70	128.45	132.00
	Sell Below	123.45	120.55	117.00

GOOD LUCK

Intraday Trading Calls for 06th April

Indian Stock Market may open positive and remains highly volatile for the day today. Some profit booking expected at higher levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GODREJ INDUSTRIES	Buy Above	155.60	160.25	165.00
	Sell Below	153.30	149.40	145.00
ATLANTA	Buy Above	240.00	246.70	252.00
	Sell Below	237.35	232.65	228.00
CAIRN INDIA	Buy Above	310.00	314.55	320.00
	Sell Below	308.30	303.45	298.00
KSK ENERGY	Buy Above	198.25	203.75	210.00
	Sell Below	194.75	190.35	185.00
ADHUNIK METALIK	Buy Above	131.25	136.45	141.00
	Sell Below	129.10	125.60	122.00
ANDHRA BANK	Buy Above	116.25	120.00	124.00
	Sell Below	114.35	111.20	108.00
IDBI	Buy Above	120.60	124.45	128.00
	Sell Below	119.35	116.15	112.00

SHORT TO MED. TERM DELIVERY BUY:

• IDBI BANK LTD. CMP Rs. 120/- Short to Med. Term Delivery Target Rs. 145/- 170/-.
• MADHAV MARBLES AND GRANITES CMP Rs. 31/- Short to Med. Term Target Rs. 42/- 50/-.
• DISH TVCMP Rs. 37/- Short Term Target Rs. 45-50/-.

GOOD LUCK

Stock Idea: Pitti Laminations

This one is a micro-cap stock. This company caters to the electrical sector; this company makes electrical laminations which are used in electrical devices like motors, generators and alternators. Besides lamination this company had gone in for higher value added products in the past two years. This company had its share of problems for the past two years, I will first tell you as to what went wrong for the company.

Now because of the global meltdown operations of the company were severely impacted. This company was getting roughly 75% of its revenues from exports and GE was one of their major customers and because of what happened in Europe and USA, the order flow from GE reduced because of which the operations of the company were hit.

Second is that the company made a loss of around Rs 9.5 crore in foreign exchange hedging last year and even in December quarter the company has provided for an extra ordinary expense of about Rs 5.6 crore which is basically cost sharing with GE for some engineering analysis operations.

On the positive side, after what happened to the company on the export front, the company started focusing on the domestic market. The company is getting very good order flow from the domestic electrical manufacturers. A lot of the leading Indian company's like Simens, Alstom, Areva, BHEL are the customers of the company and because of this we have seen a margin improvement in the business of the company, in fact the margins have gone up from about 11% to about 17%, If you see the financials for the first nine months.

Recently company has got an order of about USD 36 million from GE. This is roughly about Rs 160 to Rs 170 crore on the current conversion rate. Now this order is to be executed over the next two years, which means a revenue visibility for the company for the next about Rs 80 - Rs 85 crore at least from GE for the next two years.

And assuming that the company does a revenue of about Rs 250 crore which it did in FY08 and assuming a margin of about 15% operating margin, we get a operating profit of close to Rs 35 crore. At the current market price the marketcap of the company is just about Rs 40 crores. So I believe that even though the company had its share of problems in the past two years, worst may be already built into the stock price which has absolutely failed to move in the past six-nine months, it’s hovering between Rs 35 to Rs 40.

I Believe that may be from this quarter onwards the better times may return for Pitti Lamination. So from these levels I don't see too much of downside in the stock price. But if you know things go well for this company over the next couple of years, this stock may turn into a multi bagger given the fact that it operates into a sector where the demand is going to be robust at least for the next couple of years

Source: Internet (moneycontrol.com by Ashish Chugh)