Stock Idea: Bannari Amman Spinning Mills Ltd.

Bannari Amman Spinning Mills Limited (BASM), established in 1995 is a reputed player & a leader in cotton yarn segment in South India. BASM is a part of the Rs. 1,200 crs. Coimbatore based Bannari Amman group. The renowned group has its presence across diversified businesses like sugar, textiles, food processing, granite processing, power generation, transportation, distillery, automobile distribution, healthcare, etc. Since inception BASM has evolved to be a leader in cotton yarn spinning in South India, Commanding a premium in the market for its products. It has two factories for yarn spinning housed in around 7.85 lakh square feet in Tamil Nadu with an installed capacity of more than 1,35,000 spindles. The spinning division is in Dindigul, Tamil Nadu. The weaving division located in Coimbatore, Tamil Nadu, has an installation of 135 Sulzer projectile wider width Looms, in a working space of 2.2 lakh sq feet. The unit specializes in manufacturing superior wide-width cotton fabric in the 500-1000 thread count range. The production capacity ranges from 500-1500 sq mtrs per loom per day depending on the fabric construction. The company has strong presence in Tirupur, Kanpur and Kolkota in the domestic markets. The company is has also been exporting its products to a number of countries like Mauritius, Egypt, Taiwan and Korea.

In October 2005, BASM came with an IPO at Rs 135 per share to fund its expansion plan. On a post issue equity of 15.75 cr., the promoters’ stake is 55.55%.  BASM raised funds for capacity expansion and also to forward integrate into processing and garmenting & home textiles division

Net profit of BASML rose 134.33% to Rs 16.38 cr. in the Q2 ended September 2010. Sales rose 47.27% to Rs 129.52 cr. in the quarter. For the half year ended Sept. 2010, net profit stood at Rs 26.62 cr. on sales of Rs 242.58 cr..  The EPS for first half comes to Rs 16.9.  For the year ended March 2010, BASML had posted net profit of Rs 15.05 cr. on net sales of Rs 355.31 cr.. The EPS stood at Rs 9.5  and the dividend declared was 15%.  The Book Value per share stood at Rs 107

The expansion of its spinning unit, and integration into fabrics and home textiles has enabled the company to compete in the export markets with larger scale of operations. The higher value addition insulates the company from pricing pressures in the highly commoditised cotton yarn industry. The company operates in a niche segment and is a focused quality player earning higher than industry margins. Going forward, BASM is positioning itself as a niche player specializing in fine counts and other value added segment and should continue to earn relatively higher margins. Participating across value chain will help the company to be a One-Stop-Shoppe player and face the growing competition going forward. This will also help the company to customize their product offerings as the global retailers are rationalizing the vendor base based on quality, specifications and pricing. The Bannari Amman Spinning share at Rs 159 trades at 6 times FY11E earnings(Rs 26- Rs 27) and offers an attractive investment opportunity for the medium-long term

Investors can start accumulating the stock at current levels and add more on declines for decent returns of 50%-60% over the next 8-12 months. Accumulate.

Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Panacea Biotec

Panacea Biotec (PBL) is India’s highly progressive research based health management company involved in research, manufacturing and marketing of branded pharmaceutical formulations, vaccines and natural products. The product portfolio includes highly innovative prescription products in important therapeutic areas like pain management, diabetes & cardiovascular management, renal disease management, osteoporosis management, anti-tubercular, gastro-intestinal care products and vaccines. The flagship brands of the company- Willgo for pain management; Glizid & Glizid-M for diabetes; Panimun Bioral & Mycept for kidney transplant occupy leadership positions in their therapeutic segments. This is in persuit of marketing strategies to build brands and drive the growth of the company. The vaccines portfolio consists of oral polio vaccines (type I and type III), Enivac-HB (Hepatitis B vaccine), Enivac-HB Safsy, Ecovac-4 (DTwP+Hep B), Easyfour (DTwP+Hib), Easyfive (DTwP+Hep B+Hib). Vaccines in the offing are- Anthrax, Dengue, Japanese encephalitis and several others. Panacea Biotec has earned the distinction of being a WHO pre-qualified supplier of oral polio and Hepatitis-B vaccines and are in the process of obtaining similar pre-qualifications for other vaccines.

PBL is the second largest vaccine producer in India and has been ranked as the third largest biotechnology company in India (as per ABLE Survey June 2009). While vaccines account for three-fourths of the company’s overall revenues, the balance comes from domestic formulations (the major therapeutic areas being pain management, diabetes and organ transplantation). The company has also established collaborations and tie-ups with international research organisations. Bulk of the vaccines is sold to the UNICEF, which largely caters to the Indian market and to some countries such as Ethiopia, Maldives, Nepal, Somalia and Yemen. The company has ultra modern, state-of-art production facilities at Baddi (Himachal Pradesh), Lalru (Punjab) & Delhi for manufacturing tablets, capsules (including soft gelatin), ointments (transgel formulation) liquids, herbal formulations and vaccines. The facilities are WHO cGMP compliant.

Net profit of Panacea Biotec rose 692.02% to Rs 16.87 cr. in the Q2 ended September 2010. Sales rose 52.32% to Rs 252.57 cr. in the quarter. Net profit of PBL had risen 226% to Rs 49.4 cr. in the first half ended Sept. 2010. Net sales were up 48% to Rs 506.5 cr. in the first half. The EPS for the half year on a equity of 6.13 cr. (Promoter stake-74.41%, FII/MF stake- 11.44%) stands at Rs 8. For the year ended March 2010, PBL had posted 14% rise in net sales to Rs 900 cr. on consolidated basis, whereas net profit stood at Rs 72.41 cr. (against net loss of 67 cr. in FY09). For FY10 PBL’s vaccine segment grew 24% to Rs 680 cr.(75% of revenues). Going forward, PBL has identified brand building in exports as its thrust area and it has significant presence in the global markets including the CIS, Africa, the Middle East and Asia. The company is actively exploring opportunities for launching as well as licensing out some of our patented products for manufacture/marketing in developed countries in Europe, North America and Latin America. Eyeing the lucrative pie of off-patent drugs, PBL is looking to manufacture generics to expand its domestic formulation business and has plans to venture into the US market. Over $150 billion drugs would be off-patent in the next several years as their exclusivity time matures. PBL which gets most of its sales from domestic operations, is looking to start operations in the US from this fiscal to expand its exports, the area and region which they ignored till now.

PBL would announce deals in the next few weeks and is currently working on the Japanese encephalitis and Dengue vaccine which may be launched this fiscal The company has about Rs 120 cr. of cash reserves and it is not looking for acquisitions but expects in licensing and out licensing opportunities deals in the vaccines and medicines for infectious diseases and organ rejection. At the current market price of Rs 204, the stock trades at 12.4x and 10x of FY11E (Rs 16- Rs 17) and FY12E earnings(Rs 20- Rs 21), respectively.

Investors can start accumulating the PBL stock at current levels and add more on declines for decent returns of 50%-60% over the next 6-9 months.

Source: Internet (Valuenotes by Sanjay Chhabria)

Intraday Trading Calls for 16th Novemeber

Indian Stock Market may open positive and positive trading expected today 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
DEWAN HOUSING	Buy Above	340.00	348.55	355.00
	Sell Below	333.45	325.60	318.00
SHRI LAKSHMI COTSYN	Buy Above	172.25	178.45	185.00
	Sell Below	169.05	164.30	158.00
SASKEN COMM.	Buy Above	197.20	203.65	210.00
	Sell Below	193.45	188.05	182.00
EROS INTL. MEDIA LTD.	Buy Above	188.50	195.25	202.00
	Sell Below	184.40	180.00	175.00
ADHUNIK METALIKS	Buy Above	111.55	115.75	120.00
	Sell Below	109.35	105.45	102.00
SUN PHARMA ADVANCE	Buy Above	105.60	110.00	115.00
	Sell Below	103.40	100.05	96.00
GEODESIC LTD.	Buy Above	136.75	141.65	146.00
	Sell Below	134.15	130.20	126.00

GOOD LUCK

Intraday Trading Calls for 15th November

Indian Stock Market may open positive and positive trading expected today 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
DEWAN HOUSING	Buy Above	326.75	333.70	340.00
	Sell Below	320.35	314.55	308.00
GODREJ INDUSTRIES	Buy Above	220.05	226.15	232.00
	Sell Below	215.00	210.60	205.00
ISMT	Buy Above	63.25	65.10	67.00
	Sell Below	62.05	60.05	57.00
EROS INTL. MEDIA LTD.	Buy Above	190.00	196.45	202.00
	Sell Below	185.40	180.00	175.00
ADHUNIK METALIKS	Buy Above	111.25	114.75	120.00
	Sell Below	109.05	105.45	102.00
SUN PHARMA ADVANCE	Buy Above	105.60	110.00	115.00
	Sell Below	103.40	100.05	96.00
KPIT CUMMINS	Buy Above	160.00	166.20	172.00
	Sell Below	156.40	151.65	146.00

GOOD LUCK

Intraday Trading Calls for 11th November 2010

Indian Stock Market may open positive and positive trading expected today 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
HINDUSTAN  CONSTRUCT.	Buy Above	66.75	70.05	72.00
	Sell Below	65.35	62.55	60.00
GODREJ INDUSTRIES	Buy Above	233.60	239.15	245.00
	Sell Below	230.05	225.20	220.00
ISMT	Buy Above	60.00	62.75	65.00
	Sell Below	58.55	56.05	54.00
EROS INTL. MEDIA LTD.	Buy Above	199.60	205.45	211.00
	Sell Below	195.40	190.30	184.00
ADHUNIK METALIKS	Buy Above	113.60	118.75	124.00
	Sell Below	110.50	106.45	102.00
JUPITER BIOSCIENCE	Buy Above	83.60	87.20	90.00
	Sell Below	82.00	80.05	77.00
KPIT CUMMINS	Buy Above	168.70	174.20	178.00
	Sell Below	165.40	161.25	156.00

GOOD LUCK

Intraday Trading Calls for 09th November

Indian Stock Market may open positive and positive trading expected today 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
SREI INFRA	Buy Above	140.00	145.25	150.00
	Sell Below	136.45	132.15	127.00
GODREJ INDUSTRIES	Buy Above	230.20	236.15	242.00
	Sell Below	226.50	221.20	216.00
GULF OIL	Buy Above	131.65	136.40	142.00
	Sell Below	128.45	124.05	120.00
EROS INTL. MEDIA LTD.	Buy Above	192.60	198.45	204.00
	Sell Below	190.00	185.30	180.00
INDIABULLS REALEST	Buy Above	201.70	208.60	215.00
	Sell Below	197.50	191.45	185.00
COMPACT DISC.	Buy Above	64.20	67.15	70.00
	Sell Below	62.50	60.35	58.00
EDSERVE SOFTSYSTEM	Buy Above	225.15	231.75	238.00
	Sell Below	221.40	215.25	210.00

Short to Medium Term Delivery Pick:
Buy PVR LTD. (532689) CMP Rs. 171/- Targets: 200-220-250/-.
GOOD LUCK

Stock Idea: NGL Fine-Chem

NGL Fine-chem Ltd is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health. Company caters to various global companies to custom manufacture high quality pharmaceuticals with reliability and flexibility. Utilizing its expertise in complex multi-stage organic synthesis, company continues to expand their product portfolio with new products. Company has established a strong presence in global pharmaceutical companies with its commitment to competitive prices, delivery schedules, international quality standards and constant  technological upgradation. The Company was incorporated on December 18, 2981 as  Private Limited Company in the State of Maharashtra. The Company became a Deemed Limited Company by virtue of Section 43A of the Companies Act, 1956 on 29.12.1993 and the necessary alternation to the Certificate of Incorporation was duly btained from the Registrar of Companies, Maharashtra. The Company has deleted the restrictive clauses in the articles of association by passing a special resolution on  May 20,1994 and has become a Public Limited Company. The Company has got its registered office and factory at New Bombay. The Company was promoted by Mr. A.G.Lawande, Mr.R. J. Nachane joined Mr.A.G.Lawande for actively participating in the management of the company in 1989.

 

It has an equity base of Rs.3.09crore that is supported by reserve of around Rs.8crore leading to a book share value around Rs.22.10. The promoters hold 66.68%, non promoter corporate bodies hold 11.85% while the investing public holds 21.46% stake in the company. For FY10, it recorded net sales of Rs.28.02crore with net profit of Rs.2.71crore against net sales of Rs.24.63crore with net profit of Rs.1.68crore in FY09. (Net profit zoomed 61% on yearly basis). The FY10 EPS was Rs.4.36. At current level, the stock is available at a forward P/E multiple of just 5.5.

Target Rs. 45-50/- Short to Medium Term

Rs. 60-80/- Long Term

Source: Internet (Valuenotes by ProfitTrack)