Stock Idea: Castrol

The company has managed to sustain; there has been no spectacular growth but increasing operating costs indicates that margins were under pressure.

For year ended 31st Dec 2009, net revenue rose by merely 5%. Operating expenses were 83% of the revenue which in 2008, were 81%. Interest outgo was maintained at Rs.3.50 crore level and EBIDTA was down 7%. Yet, net profit was up 45% at Rs.381 crore.

2009 was the centenary year for Castrol brand in India and it celebrated that with by declaring a bonus in the ratio of 1:1. It recommended a final dividend of Rs.5/- per` share and a special dividend of Rs.10/- per share for the year ended 31st December 2009. This is in addition to an interim dividend of Rs.10/- per share, totaling to a dividend of Rs.25/- per share for the full year 2009.

Looking ahead, inflation will remain a challenge. And there could be further pressure on the margins till price pressure eases. 2010 would be more about sustaining than about growth.

Stocks like Castrol are for the long term. Capital appreciation will come with time. The company has always been liberal with its dividend payouts and bonus issues. Including the current bonus, this is the seventh bonus from Castrol India. Earlier, the company had issued a liberal 1:1 bonus, each in May 1999, February 1994 and in June 1987. Also, it had issued a 3:5 bonus, each in May 1995, May 1992 and in November 1990.

Stay invested with a 2-3 year perspective.

Source: Internet (premiuminvestments.in by SP Tulsian)

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)