Stock Idea: Oil Country Tubelar

Oil Country Tubelar (Code : 500313) (Rs. 49.00)
Hyderabad based OCTL is one of the leading companies producing a range of products for Oil Drilling and Exploration Industry. Its product range covers drill pipe, heavy weight drill pipe, drill collars, production tubing, casing, tool joints, couplings etc. OCTL has been assessed and certified by APIQR. Scrip is being recommended due to buoyant demand from user industry and OCTL, a debt-free company, is reporting excellent nos.

Company had improved its performance significantly in 2007-08 with sales of 340 crs. as against Rs. 262 crs. in 06-07. Exports during the year were Rs. 254 crs. as against Rs. 104 crs.in 06-07, a rise of 145%. Company had sold 4043 tonnes of Casing Pipes, 1262 tonnes of Production Tubing and 10787 tonnes of Drill Pipes. During the year company fully paid Principal amounts of term loan and funded interest to IFCI and ICICI. An amount of Rs. 13 cr. was paid to IDBI towards full and final settlement of FITL outstanding. Thus, company became debt-free. Current Performance :- Company has been performing extremely well. For 9 months, its sales stand at 267 crs. as against 235 crs. in corresponding figures of previous year. However, PBT increased by 100% to 73.45 crs. Despite much higher tax provision, PAT has gone up by 50%. EPS for 9 months is 11.95 For 08-09, OCTL is likely to achieve sales of Rs. 415 crs. and PAT of Rs. 74 crs. It will translate into EPS of Rs. 16.70. Scrip (debt-free company) is available at just 2.87 x FY09E EPS. Company is also likely to declare maiden dividend of 25%. For 09-10, company is likely to achieve EPS of 19.40. Company is planning to expand its production capacities. However, details of same are not yet available.

Valuations: Scrip is available at (1) 0.50 x FY09E sales., (2) 2.87 x FY09E EPS. (3) 2.47 x FY10E EPS. Promoters have been increasing their stake through open market purchase. Considering that OCTL is supplying its products to Oil Drilling Industry, it has bright prospects and deserves
better valuations. If, scrip gets modest P.E. Ratio of 5, based upon FY09 EPS, its share price should be Rs. 83/-. Share price has been lying low due to low profile of the promoters. However, once 08-09 results are announced on 24th April, OCTL should catch attention of the investors and P.E. expansion should take place. Investors can buy this scrip as share price can appreciate minimum 50% in short term, if sensex remains stable.

Source: Internet (Smart Investment)

Multibagger: Marg Ltd.

Marg Ltd. (BSE Code : 530543) (Rs. 59.00)
Rational for recommendation :- 1) Foray into Airport Vertical. 2) Financial Closure for SEZ completed. 3) Karaikal Port commissioned. Background : Promoted by G.R.K. Reddy in 1994, Marg is emerging as one of the fastest growing integrated infrastructure company in India. Under the real estate vertical MARG has already developed over 1 million sq. ft. of commercial space for clients like TCS, Satyam Computers , Scope International among othe In 2007, share price of Marg had gone above Rs. 600/-. Subsequently, share price crashed due to meltdown in Real Estate Sector. However, it may be noted that company has acquired big land bank at very low costs which will provide immense appreciation in coming years, once Real Estate Sector starts reviving. However, now, scrip is being recommended due to implementation of some notable infrastructure projects: 1) Karaikal Port : In 2006, Pondicherry Govt. had awarded Marg the concession to develop the port at Karaikal on BOT basis. This port has been commissioned on 15th April, 2009. Construction of the port is on a vast expanse of 600 acres with a unique state of the art cargo handling and backup facilities. Port already has excellent road and rail connectivity. Optimally suited to cater to the high potential industrial belts of Tamil Nadu and Puducherry, the port is connected with NH45A and NH67. 2) Marg Swarnabhoomi : With specific focus on light engineering and multi-services industries, MARG Swarnabhoomi is poised to become a leading business hub in South Asia. The fully equipped business environment with state-of-the-art infrastructure, will be a perfect destination for corporates looking to set up their units with zero entry barriers. Valuation/Recommendation : Some big players of Real Estate Sector in India have paid unrealistically high prices to acquire new land bank which led to
severe crash. Share price has been lying low as analyst are sceptical about company's capacity to raise funds for implementing all these projects. However, timely commissioning of the port speaks of company's capability. Current market cap of MARG is just 150 crs. which is extremely low even from Karaikal Port point of view alone. We believe that MARG will emerge as a respectable name in Indian infrastructure space. Our price target: 1) Rs. 85/- in 4-8 weeks., 2) Rs. 125/ - in 3-6 months. If scrip is held for 2-3 years, it should provide multibagger appreciation. Perhaps, the cheapest scrips in infrastructure space.

Source: Internet (SmartInvestment)

IPL Schedule/Time Table for 2009

April 18: MUMBAI INDIANS v CHENNAI SUPER KINGS (8 pm) at Cape Town; RAJASTHAN ROYALS v ROYAL CHALLENGERS BANGALORE (4 pm) at Cape Town
April 19: KOLKATA KNIGHT RIDERS v DECCAN CHARGERS (8 pm) at Cape Town; DELHI DAREDEVILS v KINGS XI PUNJAB (4 pm) at Cape Town.
April 20: ROYAL CHALLENGERS BANGALORE V CHENNAI SUPER KINGS (8 pm) at Port Elizabeth.
April 21: RAJASTHAN ROYALS v MUMBAI INDIANS (8 pm) at Durban; KOLKATA KNIGHT RIDERS v KINGS XI PUNJAB (4 pm) at Durban
April 22: ROYAL CHALLENGERS BANGALORE v DECCAN CHARGERS (8 pm) at Cape Town
April 23: DELHI DAREDEVILS v CHENNAI SUPER KINGS (4 pm) at Durban; KOLKATA KNIGHT RIDERS v RAJASTHAN ROYALS (4 pm) at Port Elizabeth
April 24: KINGS XI PUNJAB v ROYAL CHALLENGERS BANGALORE (8 pm) at Johannesburg
April 25: KOLKATA KNIGHT RIDERS v CHENNAI SUPER KINGS (8 pm) at Cape Town; DECCAN CHARGERS v MUMBAI INDIANS (4 pm) at Durban.
April 26: RAJASTHAN ROYALS v KINGS XI PUNJAB (8 pm) at Cape Town; ROYAL CHALLENGERS BANGALORE v DELHI DAREDEVILS (4 pm) Port Elizabeth
April 27: KOLKATA KNIGHT RIDERS v MUMBAI INDIANS (8 pm) at Cape Town; CHENNAI SUPER KINGS v DECCAN CHARGERS (4 pm) at Durban.
April 28: DELHI DAREDEVILS v RAJASTHAN ROYALS (8 pm) at Pretoria
April 29: MUMBAI INDIANS v KINGS XI PUNJAB (8 pm) at Durban; KOLKATA KNIGHT RIDERS v ROYAL CHALLENGERS BANGALORE (4 pm) at Durban
April 30: DELHI DAREDEVILS v DECCAN CHARGERS (4 pm) at Pretoria; RAJASTHAN ROYALS v CHENNAI SUPER KINGS (8 pm) at Pretoria.
May 1: ROYAL CHALLENGERS BANGALORE v KINGS XI PUNJAB (8 pm) at East London; MUMBAI INDIANS v KOLKATA KNIGHT RIDERS (4 pm) at Durban
May 2: RAJASTHAN ROYALS v DECCAN CHARGERS (4 pm) at Johannesburg; CHENNAI SUPER KINGS v DELHI DAREDEVILS (8 pm) at Port Elizabeth
May 3: MUMBAI INDIANS v ROYAL CHALLENGERS BANGALORE (8 pm) at Durban; KINGS XI PUNJAB v KOLKATA KNIGHT RIDERS (4 pm) at Port Elizabeth
May 4: DECCAN CHARGERS v CHENNAI SUPER KINGS (8 pm) at East London
May 5: DELHI DAREDEVILS v KOLKATA KNIGHT RIDERS (8 pm) at Durban; KINGS XI PUNJAB v RAJASTHAN ROYALS (4 pm) at Durban
May 6: MUMBAI INDIANS v DECCAN CHARGERS (8 pm) at Pretoria
May 7: KINGS XI PUNJAB v CHENNAI SUPER KINGS (8 pm) at Pretoria; ROYAL CHALLENGERS BANGALORE v RAJASTHAN ROYALS (4 pm) at Pretoria
May 8: DELHI DAREDEVILS v MUMBAI INDIANS (8 pm) at East London
May 9: DECCAN CHARGERS v KINGS XI PUNJAB (4 pm) at Kimberley; CHENNAI SUPER KINGS v RAJASTHAN ROYALS (8 pm) at Kimberley
May 10: KOLKATA KNIGHT RIDERS v DELHI DAREDEVILS (8 pm) at East London; ROYAL CHALLENGERS BANGALORE v MUMBAI INDIANS (4 pm) at Johannesburg
May 11: DECCAN CHARGERS v RAJASTHAN ROYALS (8 pm) at Bloemfontein
May 12: ROYAL CHALLENGERS BANGALORE v KOLKATA KNIGHT RIDERS (4 pm) at Pretoria; KINGS XI PUNJAB v MUMBAI INDIANS (8 pm) at Pretoria.
May 13: DECCAN CHARGERS v DELHI DAREDEVILS (8 pm) at Durban
May 14: MUMBAI INDIANS v RAJASTHAN ROYALS (8 pm) at Durban; CHENNAI SUPER KINGS v ROYAL CHALLENGERS BANGALORE (4 pm) at Durban.
May 15: KINGS XI PUNJAB v DELHI DAREDEVILS (8 pm) at Kimberley
May 16: CHENNAI SUPER KINGS v MUMBAI INDIANS (4 pm) at Johannesburg; DECCAN CHARGERS v KOLKATA KNIGHT RIDERS (8 pm) at Port Elizabeth
May 17: RAJASTHAN ROYALS v DELHI DAREDEVILS (8 pm) at Kimberley; KINGS XI PUNJAB v DECCAN CHARGERS (4 pm) at Johannesburg
May 18: CHENNAI SUPER KINGS v KOLKATA KNIGHT RIDERS (8 pm) at Pretoria
May 19: DELHI DAREDEVILS v ROYAL CHALLENGERS BANGALORE (8 pm) at Johannesburg
May 20: CHENNAI SUPER KINGS v KINGS XI PUNJAB (8 pm) at Durban; RAJASTHAN ROYALS v KOLKATA KNIGHT RIDERS (4 pm) at Durban
May 21: DECCAN CHARGERS v ROYAL CHALLENGERS BANGALORE (8 pm) at Pretoria; MUMBAI INDIANS v DELHI DAREDEVILS (4 pm) at Pretoria
May 22: Semi Final 1 at Pretoria. 8 PM
May 23: Semi Final 2 at Johannesburg 8 PM
May 24: Final at Johannesburg. 8 PM

Intraday Trading Calls for 17th April

Stock Market India may open Positive and remains positive for the day today.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SOBHA DEV. (532784)	Buy Above	98.50	103.75	108.00
	Sell Below	96.70	93.50	90.00
IRB INFRA (532947)	Buy Above	101.55	106.75	112.00
	Sell Below	98.35	95.25	92.00
AIA ENGINEER (532683)	Buy Above	167.60	173.55	180.00
	Sell Below	164.40	160.15	156.00
UNITECH	Buy Above	44.10	46.75	50.00
	Sell Below	42.70	40.25	38.00
HCC (500185)	Buy Above	56.60	60.10	64.00
	Sell Below	54.45	51.55	49.00
MICRO TECH	Buy Above	105.80	111.55	118.00
	Sell Below	103.40	99.40	94.00
CORE PROJECTS	Buy Above	81.70	85.60	90.00
	Sell Below	80.00	77.50	75.00

GOOD LUCK

Intraday Trading Calls for 16th April

Stock Market India may open Positive but some profit booking expected in mid-session.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
SOBHA DEV. (532784)	Buy Above	108.75	113.55	118.00
	Sell Below	105.40	101.25	96.00
IRB INFRA (532947)	Buy Above	112.70	117.20	122.00
	Sell Below	109.80	105.35	100.00
AIA ENGINEER (532683)	Buy Above	177.10	183.65	190.00
	Sell Below	174.05	170.40	165.00
OPTO CURCUIT	Buy Above	122.65	126.50	131.00
	Sell Below	120.35	116.45	112.00
HCC (500185)	Buy Above	61.20	64.70	69.00
	Sell Below	59.40	56.35	53.00
SUN PHARMA ADVANCE	Buy Above	63.50	68.10	72.00
	Sell Below	61.35	58.40	56.00
VIDEOCON INDUSTRIES	Buy Above	127.80	132.45	138.00
	Sell Below	124.50	120.35	115.00

Short to Med Term Delivery Buy:

PRISM CEMENT (500338) CMP Rs. 27/- Target Rs. 38 - 45/-

GOOD LUCK

Stock Idea: Prism Cement

Prism Cement having changed its accounting year to end with March ending instead of June had posted good results for quarter as well as period ended 31st March,09. This is the first audited results of FY 09 having posted by any company, even ahead of Infosys. Due to improved performance in Q3 , the company has declared a final dividend of 5%, which along with 10% interim having already paid, make it 15% for the period or 20% annualised, against 10% having paid last year.

The company posted a total income of Rs.245 crores in Q3 against Rs.218 crores of Q2 and Rs. 167 crores of Q1 while total for the period is at Rs.630 crores. PAT for Q3 stood at Rs. 50 cr. Against Rs. 31 cr. Of Q2 and Rs. 15 cr. of Q1. A rising trend on topline and bottomline. It is also heartening to note that on an EPS of Rs. 3.23 a dividend of Re.1.50 is being paid. Thanks to debt free status of the company. This is inspite of the fact that tax liability of the company for FY 09 has been at 40% against 26% of FY 08.

Share ruling at 27 has fully factored in the working for FY10 and would see its full value coming in at Rs.30.

Source: www.premiuminvestments.in

SATYAM ACQUISITION BY TECH MAHINDRA

Tech Mahindra has been successful in bidding for Satyam Computers, wherein, it will be acquiring 31% stake at Rs. 58 per share, in Satyam, by way of preferential allotment followed by open offer for additional 20% at the same rate, from the shareholders of Satyam.

Open offer is likely to be for 19.54 crore shares of Satyam, while its present paid up equity stands at 67.40 crore shares. Of this, ADR holding is at 13.07 crore shares while L&T is holding 8.08 crore shares. Since shares held by L&T are not eligible to participate in the open offer, as it has a lock in of 6 months, there is expectation that even ADR holders may not see active participation. Due to this, Acceptance Ratio is likely to be 50%, viz. one share is likely to get accepted out of two shares tendered.

Coming on to the strategy for the Satyam shareholders, the performance of the company is bound to increase in FY 10 with Tech Mahindra taking charge and share price, which is now ruling at Rs. 48 will rise in due course of time. But, benefits of this rise would be seen more in the share price of Tech Mahindra, as, in its consolidated results, 51% of Satyam’s PAT would get added to its bottomline, while 100% of Satyam turnover in its topline. So it is advised to move to Tech Mahindra from Satyam, now, without participating in the open offer.

If we presume that for FY 10, Satyam is likely to have a topline of Rs.7,000 crores with PAT of Rs.700 crores, it would translate into an EPS of Rs.7. As Satyam will have outstanding number of shares at 97.67 crore, after preferential allotment. In this situation, if you expect share price of Satyam to rule at Rs.42, post open offer, this translates into PE multiple of 6 times.

Tech Mahindra had posted a topline of Rs.3,407 crores for nine months ending 31-12-08 while its PAT is placed at Rs.784 crores resulting in an EPS of Rs.64.FY 09 EPS is Likely to be close to Rs.75 and share price, ruling at Rs.372 is translating into a PE of close to 5 times.

Tech Mahindra would be requiring close to Rs.2,900 crores for acquiring 51% stake in Satyam. This is expected to get mobilized with internal accruals of Rs.900 crores and debt of Rs.2,000 crores. Tech Mahindra at present is a debt free company with present net worth of Rs.1,800 crores. The company has an annual cash generation of close to Rs.700 crores, after paying dividend on the equity shares. Hence an Additional interest burden of Rs.300 crores would get charged to the consolidated results of Tech Mahindra. Since it will be entitled for 51% PAT of Satyam, which is likely to be Rs.350 crores, the acquisition will be EPS accretive for Tech Mahindra. Once, this debt of Rs.2,000 crores would get paid in next two years, Consolidated PAT would sharply jump.

Conversely, if Satyam is not able to post an EPS of Rs.7, share price may not be able to hold Rs.40 levels. In that case, we may also not see any rise in share price of Tech Mahindra and it may remain Static at Rs.370 levels. So even in this case, it will be better for Satyam shareholders to move to Tech Mahindra right now without waiting to participate in the open Offer.

By S P Tulsian Source: www.premiuminvestments.in