Stock Idea: ADF Foods

ADF Foods is into food processing. It is focused mainly on export markets. The company is involved exports a number of products like chatnis, ready to eat foods, pickles. They also own a number of brands like Ashoka, Camel and Aeroplane. The company recently launched a brand which is targeted towards the domestic market by the name of ADF Sole.

Indian markets offer a very good opportunity as far as food processing companies are concerned. Their focus is mainly on the export markets and deriving roughly 85-90% of the revenues from its exports.

India is still a virgin market for this company and the introduction of organized retail has given a good fillip to food processing companies in India. If you look at the financials, in FY10 they did revenues close to Rs 100 crore, made a profit after tax (PAT) of about Rs 15.5 crore which means an EPS of close to Rs 7.5 to 8.

The best thing is that this company enjoys operating margins of close to 25%. In the first half, the sales are almost static at about Rs 52 crore and profit after tax was slightly down at about Rs 8 crore which means on a conservative basis, you can expect the company to do an EPS of about Rs 7 to 8.

They recently made an acquisition in the US of a company called Elena Foods which does revenues close to USD 9 million. This will automatically add about Rs 40 to 50 crore to their revenues and will lead to higher earnings in the future.

Elena Foods have got a USFDA approved plant in the US. The company can introduce a number of Indian products and also manufacture through that plant. It will give them better penetration into the US market. They have opportunity in the US market as well as Indian markets.

The stock corrected from about Rs 80 to 90 to the current levels of about Rs 55 to Rs 60 and at a PE multiple of about Rs 7 to 8 which will go down once the revenues from Elena start to come in. I find that the stock looks attractive for investment.

Source: Internet (moneycontrol.com by Ashish Chug)

Intraday Trading Calls for 03rd March

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
LIC HOUSING FINANCE	Buy Above	200.05	206.25	212.00
	Sell Below	196.35	191.35	186.00
UFLEX LTD.	Buy Above	144.60	149.35	155.00
	Sell Below	141.70	138.05	134.00
HIND OIL EXPLOR	Buy Above	168.75	172.65	176
	Sell Below	165.45	161.40	158.00
C MAHINDRA EXPORTS	Buy Above	215.60	220.15	225.00
	Sell Below	211.60	207.15	202.00
VIDEOCON INDUSTRIES	Buy Above	190.75	196.35	202.00
	Sell Below	187.45	183.25	178.00
HDIL	Buy Above	167.60	173.10	178.00
	Sell Below	164.55	160.35	156.00
GMR INFRA	Buy Above	41.60	43.15	45.00
	Sell Below	40.05	38.50	36.00

BUY UFLEX LTD. (500148) CMP RS. 140/- SHORT TERM TARGET RS. 175/-++.

GOOD LUCK

Intraday Trading Calls for 01st March

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
LIC HOUSING FINANCE	Buy Above	189.25	194.35	200.00
	Sell Below	186.55	182.05	178.00
UFLEX LTD.	Buy Above	140.60	146.15	152.00
	Sell Below	138.05	133.25	128.00
HIND OIL EXPLOR	Buy Above	160.00	164.25	168.00
	Sell Below	157.15	152.70	148.00
C MAHINDRA EXPORTS	Buy Above	218.60	223.75	230.00
	Sell Below	214.40	208.55	202.00
VIDEOCON INDUSTRIES	Buy Above	190.75	196.35	202.00
	Sell Below	187.45	183.25	178.00
SUZLON	Buy Above	47.50	49.25	52.00
	Sell Below	45.40	43.15	41.00
GMR INFRA	Buy Above	41.60	43.15	45.00
	Sell Below	40.05	38.50	36.00

BUY UFLEX LTD. (500148) CMP RS. 140/- SHORT TERM TARGET RS. 175/-++.

GOOD LUCK

Intraday Trading Calls for 28th February

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
STC India	Buy Above	246.25	252.70	260.00
	Sell Below	242.45	237.15	232.00
UFLEX LTD.	Buy Above	140.60	146.15	152.00
	Sell Below	138.05	133.25	128.00
HIND OIL EXPLOR	Buy Above	162.40	168.25	174.00
	Sell Below	158.15	153.70	150.00
C MAHINDRA EXPORTS	Buy Above	212.60	218.40	224.00
	Sell Below	208.40	202.45	196.00
VIDEOCON INDUSTRIES	Buy Above	188.60	194.35	201.00
	Sell Below	185.05	181.50	176.00
SUZLON	Buy Above	47.50	49.25	52.00
	Sell Below	45.40	43.15	41.00
GMR INFRA	Buy Above	40.20	42.35	44.00
	Sell Below	39.15	37.50	36.00

BUY UFLEX LTD. (500148) CMP RS. 140/- SHORT TERM TARGET RS. 175/-++.

GOOD LUCK

Stock Idea: Brandhouse Retails

Brandhouse Retails is looking undervalued, says Ashish Chugh, Investment Analyst.

Chugh told CNBC-TV18, "Brandhouse Retail is a part of S Kumar group. This company is involved in developing and managing exclusive brand outlets for foreign brands in India. The companies, which are in the brand portfolio, include Reid & Taylor, Stephen Brothers, Carmicheal House, Belmonte and Dunhill. This company has got a store network of close to 800 stores, which are spread over 90 cities in India and a total covered area of about nine lakh sq feet. Besides the metropolitan cities, this company has got stores in tier 2 and tier 3 cities also in India."

He further added, "The company has set up a JV with the Italian brand called OVC, under which Brandhouse Retail will hold about 62.5% and 37.5% will be held by OVC. The plan is to open about 200 exclusive retail outlets for OVC brand over a period of the next five years."

"If you look at the financials of the company, FY10 sales were about Rs 660 crore, which were up by about 20% of FY09. Profit after tax (PAT) was about Rs 16.2 crore, which was again up by about 20%. In the first nine months of the current financial year, sales are about Rs 570 crore, which is up by 12% over same period last year. The PAT is almost flat at about Rs 19.5 crore. EPS on an annualised basis is expected to be about Rs 4.5-5. The stock currently trades at about Rs 25, which means that it is trading at a P/E multiple of about five-six."

"This company is a play on India’s consumption story. This is a play on the retailing of international brands in the domestic market and taking them to not just the metropolitan cities, but also tier II and tier III cities. I think the opportunity in the business is very big because there are a number of brands, which want to have a presence in India, given India’s rising consumption theme. There are many foreign companies interested in establishing a presence here."

"Brandhouse has got the knowledge and experience of the local markets. It has already handled business for a number of international players. I think it is a fit company for any foreign brand to employ for creating a brand network or the store network in the India domestic markets."

"If you look at the valuations of the company, I think at a P/E multiple of about five-six for a company where the opportunity is very large, I think the stock is currently available at very reasonable valuations. Also, a current marketcap of about Rs 135 crore as against expected sales of about Rs 700 crore, it is available at just about 20% of one year sales. I think this is a stock where the potential of growth is good. It is a niche stock; you don’t have too many peer companies listed on the exchanges having this kind of a business model. I think at a P/E multiple of five-six and a marketcap of about Rs 130-135 crore, the stock looks undervalued."

Source: Internet (moneycontrol.com)

Stock Idea: Pitti Lamination

Pitti Lamination can be a big outperformer, says Ashish Chugh, Investment Analyst.

Chugh told CNBC-TV18, "For Pitti Lamination, the numbers for the past few quarters have been pretty good. Also, in December quarter, there has been a significant increase in both revenues and profitability of the company. This company provides ancillary support to power, transportation and capital goods sectors. This company manufactures electrical laminations used in electrical motors, pumps, alternators and other electrical machines."

He further added, "If you look at the financials of the company, for the first nine months of the current financial year, the company has registered 80% increase in revenues to about Rs 183 crore. The operating profit is up by almost 100% from Rs 11 crore to Rs 22 crore. The company has registered profit before tax (PAT) of about Rs 5.6 crore as against the loss of roughly Rs 2.5 crore for the same period last year. Its full year earning per share (EPS) is expected to be between Rs 8-9. That means that at the current price of about Rs 35, the stock is trading at a P/E multiple of just about four. Cash EPS this year is expected to be between Rs 14 and 15, which means that stock is available at a price to cash EPS of about 2.5."

 

"This company has learnt a lot from global slowdown, it was more of a soul searching and learning experience for the company. The company, which was focused mainly on the export market before the global meltdown, started exploring the Indian markets where they realised that there is a lot of potential and also the operating margins are much better compared to the exports markets. So, right now the mix of the Indian business in the total revenues of the company has increased much more than it was about two years back. The growth in revenues is on account of growth in both the domestic business as well as the export business."

 

"This company has got orders from various domestic and international companies. Besides the smaller orders, this company has got about Rs 170 crore of order from GE, which is to be executed over the next few quarter. So that is something which provides revenue visibility to the company atleast for the next couple of quarters."

"If you look at the valuations of the company, at the current market price of about Rs 36, this company has got a marketcap of about Rs 35 crore. This company is expected to do operating profit of about Rs 30 crore this year. So, for a company doing an operating profit of Rs 30 crore, marketcap of Rs 36-35 crore looks very cheap."

"Also, P/E multiple of about four and price to cash EPS of about 2.5, I think is very reasonable for a company where the user industry is witnessing a good growth. The company has got a book value of about Rs 65 as against that the market price is about Rs 35-36 which means that it is traded at almost 50% of the book value. A marketcap of Rs 35 crore against expected revenues of Rs 250 crore, I believe the stock looks extremely cheap from all counts."

"I think what is happening is that the good performance of the company has been ignored by the markets mainly because of the uncertainty prevailing for some time. Also because of the fear psychosis in the minds of investors, people are not willing to look at smaller companies. But I think that the company has been consistent in delivering performance, there is growth which is taking place in the user industry. I think as sanity returns to the market and people start again looking at smaller companies, I think these are the kind of stocks, which can really go up very fast.

"Also, the stock is trading at very close to its 52-week low of about Rs 32. So, I think from the current levels of Rs 35-36, the market is uncertain, it may drop by 10-15%, but I do not see a fall more than that. In the event of the markets recovering and midcaps performing, I think the stock can be a big outperformer."

Source: Internet (moneycontrol.com)

Intraday Trading Calls for 22nd February

Indian Stock Market may open negative and flat to negative 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
STC India	Buy Above	272.60	278.25	285.00
	Sell Below	265.35	258.25	252.00
UFLEX LTD.	Buy Above	148.20	153.15	158.00
	Sell Below	144.35	140.25	136.00
HIND OIL EXPLOR	Buy Above	172.75	177.25	182.00
	Sell Below	170.00	166.35	162.00
C MAHINDRA EXPORTS	Buy Above	210.00	215.40	221.00
	Sell Below	205.05	200.45	194.00
VIDEOCON INDUSTRIES	Buy Above	194.25	199.15	205.00
	Sell Below	191.05	187.45	182.00
RCOM	Buy Above	94.20	97.60	100.00
	Sell Below	92.40	88.25	85.00
GSPL	Buy Above	93.50	96.70	99.00
	Sell Below	91.70	88.35	86.00

GOOD LUCK