Stock Idea: Century Enka Ltd.

This BK Birla group company has continued with its stellar performance which it had shown in Q1FY10. Infact, it has bettered the performance.
Just like in Q1, in Q2 also the topline on a YoY has declined but profitability has gone up. On a YoY, net sales was down 4% at Rs.311.47 crore. The company continues to bring down its costs. Raw material costs were down by 22% and employee cost was down 20% and this helped boost the overall margins.
Net profit was up by an unbelievable 6 times on YoY at Rs.32.76 crore. QoQ, net profit was up 15%. Q2 also saw the company post one of its highest profit margins in recent times. OPM was at a very healthy 21.84% as against 12.55% in Q1FY09. NPM was up at 10.52% compared to 1.55% in previous first quarter.
Net profit for the first half of FY10 stands at Rs.61.11 crore and this is already 3.6 times the net profit of Rs.16.62 crore it posted in 12MFY09.
The company's equity capital is Rs 20.05 crore and the annualized EPS on the face value of Rs.10/share stands at Rs.65.36.
This is a company which will be managed by Kumaramangalam Birla as that is his grandfather’s (BK Birla) wish. BK Birla group holds 25.23% stake in the company. In the AGM of the company, the patriarch BK Birla stated that promoters stake in the company would be increased to 40% within the next three years. LIC has a 8.24% stake in the company.
We had recommended this stock on 21st Aug 2009 at Rs.140 and today it is at Rs.195. Even at the current rate, the stock is a good buy at it discounts the annualized EPS by a PE of merely 3.35 times.
Source: Internet (By S P Tulsian)

Intraday Trading Calls for 29th October

Indian Stock Market may open negative but some recovery expected from lower levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VOLTAS	Buy Above	150.05	154.20	158.00
	Sell Below	148.05	143.55	140.00
TRIVENI ENGI	Buy Above	111.20	115.35	120.00
	Sell Below	109.05	105.25	100.00
CRANES SOFTWARE	Buy Above	41.25	43.70	46.00
	Sell Below	40.20	38.45	36.00
IDFC	Buy Above	149.60	153.75	157.00
	Sell Below	148.05	144.55	141.00
APTECH LTD.	Buy Above	199.25	205.45	212.00
	Sell Below	195.35	190.05	184.00
BAJAJ HIND	Buy Above	218.25	224.15	230.00
	Sell Below	214.70	210.35	205.00
NAGARJUN CONSTRUCT	Buy Above	156.70	161.10	165.00
	Sell Below	154.05	150.65	146.00

Short to Medium Term Delivery Buy:

Buy Compact Disc (526141) at CMP Rs. 60/- & at decline Short to Med Term Target Rs. 95+ Long Term Target Rs. 135-150/-.

GOOD LUCK

Stock Idea: GMR Infra

The stock lost 3.83% yesterday to close at Rs.66.50. Post announcement of the results, punters battered down this stock. YoY, for current Q2, GMR Infra reported a 40% drop in net profit and that is all the market looked at and just remained sellers.
We, on our website have been recommending this stock right since the time we launched this site and continue to have conviction in the stock. Take a closer look at the performance we have analysed for GMR Infra and you will realise that the company remains very strong.
For second quarter ended 30th September 2009, net revenue rose 41% (YoY) and by 1% at Rs.1194.29 crore. Sector wise, on a YoY, the highest growth in net revenue was seen in the EPC division at 347%, followed by roads (151%), energy (25%) and airports grew 5%. And in terms of growth in EDIBTA, it was the airports sector which showed the highest growth on a YoY at 170%, followed by roads at 128%, EPC 70% while energy sector showed a de-growth of 1%.
EBIDTA was up by a healthy 54% (YoY) and 18% (QoQ) at Rs.380.06 crore. Given the kind of projects it has undertaken, it comes as no surprise to see higher depreciation outgo and interest costs have increased due to large borrowings for the various huge projects. Interest cost was up 70.86% (YoY) and 11% (QoQ) at Rs.177.14 crore. Depreciation rose 65% (YoY) and 3% (QoQ) at Rs.140.82 crore. Cash profit of the company was up 6% (YoY) and 23% (QoQ) at Rs.190.30 crore.
PAT on a YoY was down 40% but QoQ was up by a whopping 138% at Rs.53.61 crore. The growth in the topline and the EBIDTA levels indicate that the company continues to remain on solid ground. Just as the management of the company has indicated, when companies like GMR Infra take on large infra building projects, they usually build projects with capacities which are larger than the requirement. The Hyderabad airport project has been built by the company to handle a traffic of 12 million capacity but as against this, the current utilisation is around 6.5 million. And at this stage, costs overtake the earnings and it is this under utilisation of the infra capacity which drives down the PAT. And this is a phenomenon typical of all large infra companies and they start showing returns only after the initial 2-3 years.
During Q2, the company acquired 100% ownership interest in EMCO Energy Ltd (EMCO),which is developing a 600 MW coal based power plant, in two phases (of 300 MW capacity each) in the state of Maharashtra. This project has a 15-year debt component of Rs 2,610 crore. Axis Bank has arranged and syndicated the debt, for which the finances were tied up on October 21. Land acquisition, evacuation plans and water allocation for the two-phase project had been completed. Barge relocation work from Mangalore to Kakinada is on and the plant would be operational by end of current fiscal.
What indeed qualifies as ‘breaking news’ is that it will be inaugurating the airport at Istanbul, Turkey on 31st October 2009 and will be ready for commercial operations by second week of November, which is 12 months ahead of schedule.
GMR Infra is a long term stock. Such dips in PAT will be temporary and once it’s infra projects achieve better capacity, the returns would be equally baffling. Stay invested.

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

Intraday Trading Calls for 28th October

Indian Stock Market may open negative but some recovery expected from lower levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
VOLTAS	Buy Above	148.55	154.20	158.00
	Sell Below	146.20	143.05	140.00
INDIA GLYCOLS	Buy Above	138.75	144.20	150.00
	Sell Below	136.05	131.55	126.00
CRANES SOFTWARE	Buy Above	41.35	43.20	45.00
	Sell Below	40.20	38.45	36.00
IDFC	Buy Above	151.25	155.05	158.00
	Sell Below	149.50	146.50	143.00
APTECH LTD.	Buy Above	214.20	220.35	226.00
	Sell Below	210.35	205.25	200.00
GMR INFRA	Buy Above	67.25	69.55	72.00
	Sell Below	65.70	64.20	62.00
IRB INFRA	Buy Above	244.30	250.45	257.00
	Sell Below	241.05	236.45	230.00

GOOD LUCK

Intraday Trading Calls for 27th October

Indian Stock Market may open negative and remains negative with very high volatility.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
NATCO PHARMA	Buy Above	125.65	130.20	135.00
	Sell Below	123.50	120.10	116.00
INDIA GLYCOLS	Buy Above	154.20	158.75	164.00
	Sell Below	152.10	148.15	142.00
CRANES SOFTWARE	Buy Above	43.55	45.25	47.00
	Sell Below	42.50	41.10	39.00
IDFC	Buy Above	158.60	163.10	167.00
	Sell Below	156.35	153.20	150.00
TRIVENI ENGI	Buy Above	119.20	123.65	128.00
	Sell Below	117.05	113.10	109.00
GMR INFRA	Buy Above	70.05	73.25	76.00
	Sell Below	68.45	66.35	64.00
IRB INFRA	Buy Above	252.25	257.60	263.00
	Sell Below	248.55	243.45	238.00

GOOD LUCK

Intraday Trading Calls for 26th October

Indian Stock Market may open good positive and remains positive for the day.

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	210.65	215.40	222.00
	Sell Below	207.40	202.35	197.00
INDIA GLYCOLS	Buy Above	145.75	151.20	157.00
	Sell Below	143.60	140.35	136.00
CRANES SOFTWARE	Buy Above	42.10	44.20	46.00
	Sell Below	40.70	38.50	36.00
IDFC	Buy Above	161.45	164.75	168.00
	Sell Below	159.35	156.45	152.00
BRFL	Buy Above	214.20	219.65	225.00
	Sell Below	210.40	205.10	198.00
GMR INFRA	Buy Above	70.55	73.25	76.00
	Sell Below	68.75	66.35	64.00
IRB INFRA	Buy Above	248.60	254.20	260.00
	Sell Below	245.35	240.15	235.00

GOOD LUCK

Stock Idea: Blue Bird India Ltd

Blue Bird India Ltd (Rs 33)
(BSE Code- 532781 NSE Code- BLUEBIRD)
(P/E- 5.5, Market Cap- 116 cr., FY09 Sales- 502 cr., BV-Rs 57)
Blue Bird (India)(BBIL) is a leading manufacturer of paper based notebooks and stationery under its Blue Bird brand. The company's products i.e notebooks and stationery, are designed for educational use, office use and for home and personal use. The Company derives more than 80% of the revenue from the notebook category. Besides this, the company undertakes commercial printing services in a wide variety of areas like product brochures, catalogues & instruction materials, diaries & calendars, magazines & other publications, business forms, and annual reports. The "Blue Bird" brand has a strong presence in western and southern India. BBIL's products principally cater to Western India, including the State of Maharashtra. BBIL is also present in Southern India and is expanding its presence there. AC Nielsen ORG-MARG has estimated that Blue Bird enjoys the highest market share of 48% in the organized notebook market. In November 2006, BBIL came with an IPO of 87.8 lakh shares at Rs 105 per share to finance its two major expansions: one in south and the other in west India

The fortune of the notebook industry is closely tied with the evolving and growing national economy and population. This holds true for BBIL products, since most of the end-users are students, as the Company derives more than 80% of the revenue from the notebook category. With literacy level on the rise, the 7-24 age group (the education pursuing population), which currently has a literate population of 257 million, is estimated to grow to 342 million by 2011, as per the AC Nielsen report. As a result, the notebook market is set to grow from the current Rs 5,100 cr. to Rs 8,208 cr. by 2011.

In an industry dominated by the unorganized sector, the company has been able to post consistent growth in the past. Net profit of BBIL rose 42.40% to Rs 7.12 cr. in the Q1 ended June 2009 whereas Sales rose 77.03% to Rs 210.47 cr. in the quarter. For the year ended March 2009, the company had posted net sales of Rs 502.47 cr. and net profit of Rs 15.16 cr.. On a equity of 35 cr.(Promoters' stake- 52.6%) the EPS stood at Rs 4.33. At Rs 33, the stock is available at a P/E of about 5.5 times expected FY10 earnings (Rs 6). The mkt. cap of the company stands at just 116 cr. against expected sales of Rs 600 cr. for FY10


Going forward, the key to company's success is the growth in student population. With literacy level on the rise, the notebook market is set to grow from the current Rs 5,100 cr. to Rs 8,208 cr. by 2011. This bodes well for companies like blue bird. The blue bird stock at current levels looks undervalued, given its leadership status and also as an education play. Blue Bird India appears a pure value pick, trading at close to one fifth its FY09 sales with a market capitalization (m-cap) of Rs 116 cr. and sales of Rs 500 cr. The company is among the largest manufacturers of notebook and printing stationery. It is currently available at a P/E of 5.5x. Further growth could come from the fresh capacities being put up, which is expected to see bottom line contribution starting H2FY10 onwards. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-50% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)