A Bounce Back Expected in Indian Stock Market.
Buy for Intraday:
NTPC (228)
GMR Infra (224)
Kaushalya Infra (92)
Kolte Patil (225)
GTL Infra (76)
JP Hydro (124)
Suven LifeScience (39)
Nelcast (152)
Clutch Auto (118)
Bhagyanagar India (53)
Unichem Labs (187)
Cipla (208)
Prithvi Info (268)
ABG Shipyard (890)
Others: Reliance Industries, Infosys Tech, TCS, Ansal Infra, Lok Housing, Monnet Ispat, KPIT.
***** Keep Holding Sumeet Industries, Maximaa Systems, Precision Cont, Ritesh Properties. And accumulate Prithvi & KPIT.
Good Luck
Tuesday, December 18, 2007
Monday, December 17, 2007
IPO Talk: Manaksia Ltd.
Manaksia Ltd. is entering the capital market on 17th December 07, with a public issue of 1.55 crore equity shares of Rs.2 each in the band of Rs.140 to Rs.160 per share. The shares of the company are presently listed on Kolkata exchange but not traded as the company has just 143 shareholders as on date.
The company is a multi-product multi-divisional company with 15 manufacturing units in India and 3 abroad with 2 in Nigeria and one in Ghana. The company is into metal products, packaging products, mosquito coils and engineering and other goods. The financial performance of the company has been robust and consistent for the last over five years with good growth having posted by the company, over the years. For FY 07 the total income of the company was at Rs.835 crores with EBITDA of Rs.178 crores (21.32%). PBT of Rs.101 crores and PAT of Rs.92 crores, on consolidated basis, on tiny equity of Rs.10.80 crores. This translated into an EPS of Rs.17 for FY 07.
For five months ending 31st August 07, topline was at Rs.454 crores with EBITDA of Rs.89 croes (19.60%) PBT of Rs.54 crores and PAT of Rs.51 crores. Though, EBITDA fell by about 1.72%, PAT shown an increase of 16 bps. The company should be able to post an EPS in excess of Rs.20 for FY 08, considering the present trend of working.
Post issue, paid-up equity of the company would rise from Rs.10.80 crores to Rs.13.90 crores, which is definitely low, compared to the volume and profitability of the company, which is likely to be Rs.1,000 crore and Rs.100 crore plus, respectively. Promoters would be holding about 58% of the expanded equity while public float would be about 42%. As stated earlier, of this, 25% is held by about 125 shareholders who seems to be more group associates or loyal shareholders. This results into an effective float of about 17%.
The company now proposes to expand its metal business with an outlay of Rs.116 crores for debottlenecking of Aluminium Rolling Mill, certain equipment for speciality Alloy Plant and additional machinery for Steel Cold Rolling Plant at Haldia. Rs.60 crore has been earmarked for repayment of debt, which is now placed at about Rs.285 crores, used largely to finance net current assets of close to Rs.200 crore.
The present product mix of the company is about 72% in Metals of which 25% is for Ferrous and 47% for non-Ferrous, especially Aluminium. Packaging contributes about 14% while 9% is from Mosquito Coil. In its Aluminium Alloy business, the company has 60% raw material input as scrap while 40% as primary metal which give better conversion margin to the company. Due to this, raw material constitutes about 53% of manufactured product sales, which is considered quite low by any standards, thus giving good profit margins to the company.
The company with its metal management skills is able to manufacture advanced metal packaging products like ROPP Caps, Crowns, Metal Containers, Mosquite Coil stands and are supplying to companies like Coke, Reckitt Benckiser, Shiva Distilleries etc. Due to huge demand of the existing clients and better margins, the focus of the company has been in this segment.
Considering the expected profitability of Rs.20 EPS for FY 08, share is being issued at a PE of about 8 times. Future expansion in the capacity of the company would improve the profitability. Consistent growth in the financial performance of the company, for the last five years, as also low equity base of Rs.13.90 crores are positive features of the issue.
Investment is advised in the issue, which would be profitable in the short and medium term.
The company is a multi-product multi-divisional company with 15 manufacturing units in India and 3 abroad with 2 in Nigeria and one in Ghana. The company is into metal products, packaging products, mosquito coils and engineering and other goods. The financial performance of the company has been robust and consistent for the last over five years with good growth having posted by the company, over the years. For FY 07 the total income of the company was at Rs.835 crores with EBITDA of Rs.178 crores (21.32%). PBT of Rs.101 crores and PAT of Rs.92 crores, on consolidated basis, on tiny equity of Rs.10.80 crores. This translated into an EPS of Rs.17 for FY 07.
For five months ending 31st August 07, topline was at Rs.454 crores with EBITDA of Rs.89 croes (19.60%) PBT of Rs.54 crores and PAT of Rs.51 crores. Though, EBITDA fell by about 1.72%, PAT shown an increase of 16 bps. The company should be able to post an EPS in excess of Rs.20 for FY 08, considering the present trend of working.
Post issue, paid-up equity of the company would rise from Rs.10.80 crores to Rs.13.90 crores, which is definitely low, compared to the volume and profitability of the company, which is likely to be Rs.1,000 crore and Rs.100 crore plus, respectively. Promoters would be holding about 58% of the expanded equity while public float would be about 42%. As stated earlier, of this, 25% is held by about 125 shareholders who seems to be more group associates or loyal shareholders. This results into an effective float of about 17%.
The company now proposes to expand its metal business with an outlay of Rs.116 crores for debottlenecking of Aluminium Rolling Mill, certain equipment for speciality Alloy Plant and additional machinery for Steel Cold Rolling Plant at Haldia. Rs.60 crore has been earmarked for repayment of debt, which is now placed at about Rs.285 crores, used largely to finance net current assets of close to Rs.200 crore.
The present product mix of the company is about 72% in Metals of which 25% is for Ferrous and 47% for non-Ferrous, especially Aluminium. Packaging contributes about 14% while 9% is from Mosquito Coil. In its Aluminium Alloy business, the company has 60% raw material input as scrap while 40% as primary metal which give better conversion margin to the company. Due to this, raw material constitutes about 53% of manufactured product sales, which is considered quite low by any standards, thus giving good profit margins to the company.
The company with its metal management skills is able to manufacture advanced metal packaging products like ROPP Caps, Crowns, Metal Containers, Mosquite Coil stands and are supplying to companies like Coke, Reckitt Benckiser, Shiva Distilleries etc. Due to huge demand of the existing clients and better margins, the focus of the company has been in this segment.
Considering the expected profitability of Rs.20 EPS for FY 08, share is being issued at a PE of about 8 times. Future expansion in the capacity of the company would improve the profitability. Consistent growth in the financial performance of the company, for the last five years, as also low equity base of Rs.13.90 crores are positive features of the issue.
Investment is advised in the issue, which would be profitable in the short and medium term.
Source:sptulsian.com
*****Latest Grey Market Premium is Rs. 70-80.
Intraday Calls for 17th December
Markety is likely to open weak as all global markets trading weak. But Indian Stock Market can see some recovery after weak opening.
Sensex Support 19700 and Nifty Support 5980.
Buy for Intraday: (Buy at Lower Levels as market may open weak).
Prithvi Info (280)
Finolex Cables (113.5)
Finolex Industries (109)
Nelcast (157)
Clutch Auto (112) (Short Term Target 150+)
Lokesh Machinery (119) (Short Term Target 150+)
Kei Industries (98)
Paramount Comm (41)
Prism Cement (71)
Mysore Cement (63.5)
RDB Industries (202.70) (Short Term Target Rs. 250+)
Balrampur Chini, Bajaj Hindustan, Renuka Sugar.
***** Sumeet Ind, Maximaa Systems, Precision Cont. at UC. Hold all them. and keep adding Prithvi Info and KPIT.
Good Luck
Sensex Support 19700 and Nifty Support 5980.
Buy for Intraday: (Buy at Lower Levels as market may open weak).
Prithvi Info (280)
Finolex Cables (113.5)
Finolex Industries (109)
Nelcast (157)
Clutch Auto (112) (Short Term Target 150+)
Lokesh Machinery (119) (Short Term Target 150+)
Kei Industries (98)
Paramount Comm (41)
Prism Cement (71)
Mysore Cement (63.5)
RDB Industries (202.70) (Short Term Target Rs. 250+)
Balrampur Chini, Bajaj Hindustan, Renuka Sugar.
***** Sumeet Ind, Maximaa Systems, Precision Cont. at UC. Hold all them. and keep adding Prithvi Info and KPIT.
Good Luck
Saturday, December 15, 2007
Multibagger : Prithvi Information Solutions
Prithvi Information Solutions (BSE: 532675)
CMP : Rs. 280/-
52 Week High : Rs. 402/-
52 Week Low : Rs. 235/-
Face Value : Rs. 10/-
EPS : Rs. 52.70/-
P.E.: 5.31
200 Days Simpal Moving Average : Rs. 280.61/-
Sept. Quarter Profit (Sep 07): Rs. 269.54 Million (Profit rises 22% QOQ)
Year Profit (March 07): Rs. 900 Million (Profit rises 67% YOY)
Website: http://www.prithvisolutions.com
Company Continuesly doing well and great future ahead. Very soon 2-3 Acquasations will be announced by the company.
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 375/- (Short term) Rs. 450/- (Med Term) Rs. 750/- (Long Term)
(Before investing do your own research)
CMP : Rs. 280/-
52 Week High : Rs. 402/-
52 Week Low : Rs. 235/-
Face Value : Rs. 10/-
EPS : Rs. 52.70/-
P.E.: 5.31
200 Days Simpal Moving Average : Rs. 280.61/-
Sept. Quarter Profit (Sep 07): Rs. 269.54 Million (Profit rises 22% QOQ)
Year Profit (March 07): Rs. 900 Million (Profit rises 67% YOY)
Website: http://www.prithvisolutions.com
Company Continuesly doing well and great future ahead. Very soon 2-3 Acquasations will be announced by the company.
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 375/- (Short term) Rs. 450/- (Med Term) Rs. 750/- (Long Term)
(Before investing do your own research)
Friday, December 14, 2007
Intraday Calls for 14th December
Market may open flat to negative but recovers later and positive closing expected.
Buy for Intraday:
Indian Hotel (151)
Royal Orchid Hotels (145)
Cipla (204)
Surya Pharma (130)
Ranbaxy (411)
Mundra Port & SEZ (1125)
Adani Enterprises (916)
Prithvi Info (287) (Buy for Short Term Target of Rs. 325-350)
KPIT Cummins (131)
3i Infotech (140)
GE Shipping (526)
Paramound Communication (38.5)
Amforge Industries (18.75)
Others: Reliance Industries, REL, RPL, Rama Newsprint, Pondy Oxides, HCL Tech, Infosys.
***** Pondy Oxides Short term target of Rs. 35 achieved now stay invested for Med Term target Rs. 60+. & Book Some profit in Maximaa Systems.
Hold Sumeet Ind, Precision Cont. & Keep Adding KPIT, Ritesh Properties.
Good Luck
Buy for Intraday:
Indian Hotel (151)
Royal Orchid Hotels (145)
Cipla (204)
Surya Pharma (130)
Ranbaxy (411)
Mundra Port & SEZ (1125)
Adani Enterprises (916)
Prithvi Info (287) (Buy for Short Term Target of Rs. 325-350)
KPIT Cummins (131)
3i Infotech (140)
GE Shipping (526)
Paramound Communication (38.5)
Amforge Industries (18.75)
Others: Reliance Industries, REL, RPL, Rama Newsprint, Pondy Oxides, HCL Tech, Infosys.
***** Pondy Oxides Short term target of Rs. 35 achieved now stay invested for Med Term target Rs. 60+. & Book Some profit in Maximaa Systems.
Hold Sumeet Ind, Precision Cont. & Keep Adding KPIT, Ritesh Properties.
Good Luck
Thursday, December 13, 2007
Short-Med Term Delivery Pick: Ritesh Properties and Industries
Ritesh Properties and Industries (BSE: 526407)
CMP : Rs. 72.95/-
52 Week High : Rs. 119.30/-
52 Week Low : Rs. 29.00/-
Face Value : Rs. 10/-
EPS : Rs. 17.29/-
P.E.: 4.22
200 Days Simpal Moving Average : Rs. 51.95/-
Sept. Quarter Profit (Sep 07): Rs. 34.37 Million (Profit rises 776 % QOQ)
Year Profit (March 07): Rs. 71.82 Million (Profit rises 1671% YOY)
Company Continuesly doing well and great future ahead.
Recommandation: Accumulate (Buy at current Level and at every fall) Target : Rs. 110/- (Short - Med term) Rs. 150/- (Long Term)
(Before investing do your own research)
CMP : Rs. 72.95/-
52 Week High : Rs. 119.30/-
52 Week Low : Rs. 29.00/-
Face Value : Rs. 10/-
EPS : Rs. 17.29/-
P.E.: 4.22
200 Days Simpal Moving Average : Rs. 51.95/-
Sept. Quarter Profit (Sep 07): Rs. 34.37 Million (Profit rises 776 % QOQ)
Year Profit (March 07): Rs. 71.82 Million (Profit rises 1671% YOY)
Company Continuesly doing well and great future ahead.
Recommandation: Accumulate (Buy at current Level and at every fall) Target : Rs. 110/- (Short - Med term) Rs. 150/- (Long Term)
(Before investing do your own research)
Intraday Calls for 13th December
Market may remain volatile and rangebound. Midcaps & Small Caps can do well.
Buy for Intraday:
New Listing Kolte Patil (145) may list around 220-230 and can go upto 250.
Zicom Electronics (197)
Nicholas Piramal (348)
Porrits & Spensors (268)
Renaissance Jewellery (165)
Rajesh Exports (963)
Lok Housing (351)
Atlanta Ltd. (314)
Pennar Industries (29)
Pondy Oxides (30.65)
Short - Med Term Delivery Call: Buy Ritesh Properties & Industries Ltd. (526407) @ Rs. 71/- for Target Rs. 100+ in Short Term and 125+ Med Term.
***** Maximaa Systems, Sumeet Industries, Precision Cont., Pondy Oxides all doing very well. Enjoy. Keep Adding KPIT Cummins.
Good Luck
Buy for Intraday:
New Listing Kolte Patil (145) may list around 220-230 and can go upto 250.
Zicom Electronics (197)
Nicholas Piramal (348)
Porrits & Spensors (268)
Renaissance Jewellery (165)
Rajesh Exports (963)
Lok Housing (351)
Atlanta Ltd. (314)
Pennar Industries (29)
Pondy Oxides (30.65)
Short - Med Term Delivery Call: Buy Ritesh Properties & Industries Ltd. (526407) @ Rs. 71/- for Target Rs. 100+ in Short Term and 125+ Med Term.
***** Maximaa Systems, Sumeet Industries, Precision Cont., Pondy Oxides all doing very well. Enjoy. Keep Adding KPIT Cummins.
Good Luck
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