Views and Reviews
Updated on 10th Aug 2008
Austral Coke’s capacity claim and IPO pricing has been punctured by Gujarat NRE Coke and a TV channel has exposed the questionable pre-IPO placement to a fund. Marketmen wonder if this will be a repeat of the promoters’ earlier issue of Gremach Infrastructure Equipments.
Liberty Phosphate has announced fabulous results for the June 2008 quarter together with news of preferential allotment of 28 lakh shares at Rs.18. Scrip may continue to hit upper circuits this week as well. Catch it if you can.
Simplex Castings has bagged a huge order of Rs.62 cr. from SAIL in consortium with a Korean company. Accumulate at declines.
Stone India belonging to the Duncan Goenka has once again disappointed with a loss for the June 2008 quarter. Management has been making rosy announcements for a long time but offers no explanation for such poor performance.
Crew Boss is being accumulated by informed people. Keep an eye on the scrip and buy at declines for short-term gain. Despite posting a horrible result for the June 2008 quarter, the share price of Flat Products has shot up considerably. Investors are once again advised to book profit and exit.
Ansal Housing is developing 1,200 acres from its land bank of 2500 acres. With a likely EPS of Rs.30 for FY09, its shares are being accumulated by knowledgeable persons.
Ajanta Pharma is nearing completion of its expansion and R&D facility for about Rs.18 cr. Sources expect an EPS of Rs.24 in FY09 and Rs.30 in FY10. The share may spurt to Rs.120 in the near term. A leading brokerage house strongly recommends
Surya Pharma for the long-term with a target price of Rs.150. It is likely to post an EPS of Rs.45 in FY09.
Sathavahana Ispat has already commissioned its 30 MW co-generation power plant. With Q1EPS of Rs.5, it is likely to post an EPS of Rs.22 for FY09. Buy with a target of Rs.75 in the medium-term.
Hariyana Ship Breaking, which registered Q1EPS of Rs.8, is all set to register an EPS of Rs.18 for FY09. The share may cross the Rs.60 mark.
Kamanwala Housing is being recommended by a real estate analyst. It is all set to post an EPS of Rs.45 and the share is available with 1:1 bonus. It may appreciate by more than 40% in the medium-term.
Goa Carbon is bullish on its future prospects. It is expected to clock sales of Rs.500 cr. with a net profit of Rs.40 cr. and its FY09 EPS would work out to Rs.43. The share is heading towards the Rs.175 mark.
Insecticides India, which posted an EPS of Rs.5 in Q1FY09 is doing well. With further expansion, it is all set to post an EPS of Rs.22 in FY09 and Rs.35 in FY10. The share is going cheap with a target of Rs.75.
Sunil Hitech with an order book of Rs.1375 cr. is foraying into the EPC business with a pilot order for a 30 MW co-gen power plant, 60 KLD distillery and 6000 TCD sugar plant worth Rs.330 cr.
Vijay Shanti Builders, which allotted 45 lakh warrants to the promoters convertible at Rs.95 per share in September 2007, was recently listed on the NSE too. It has a huge order book of Rs.1370 cr.
2nd August 2008 –
* Technocraft Industries’ net profit jumped 50% in Q1FY09 at Rs.10.5 cr. recording an EPS of Rs.18. The share is going cheap with a strong book value of Rs.116 and can cross the Rs.75 mark.
* Insecticides India with Q1FY09 EPS of Rs.4.9 is reportedly faring well. Post expansion, EPS may touch Rs.30 in FY10. Marketmen target a share price of Rs.75.
* Jindal Photo has entered a JV with Tata Power & Monnet Ispat Energy for captive mining of coal from Mandakini non-coking coal block in Orissa for its subsidiary Jindal India Power’s 1200 MW power plant in Chhatisgarh. The share is heading towards Rs.175.
* After acquisition of Kusha Inc in USA, LT Overseas has posted Q1FY09 EPS of Rs.7. With a likely EPS of Rs.25 in FY09, the share at a P/E of 2.4 is attractive for the medium-term.
* Godawari Power has received approval for mining of Iron Ore in Ari Dongri Mines in Chhattisgarh and is all set to post an EPS of Rs.65 based on the Q1FY09 results. The share is all set to touch Rs.300.
* Visaka Industries, which posted Q1FY09 EPS of Rs.9, is betting big on the demand of asbestos cement and is all set to garner an EPS of Rs.28 in FY09. It a value buy available at a discount to its book value of Rs.100.
* With a likely EPS of over Rs.40 in FY09, the Tulsyan NEC share is are going cheap. Market grapevine projects the share at Rs.150 in 3-6 months.
* Austin Engineering has posted 50% higher net profit in Q1FY09. With likely EPS of Rs.24 in FY09, the share is going cheap at a P/E of 3. 3
* The shares of Kamanwala Housing, which has come off its high of Rs.229, are worth buying with 1:1 cum bonus. The EPS of Rs.43 gives a P/E of just 2.2.
* Ajanta Pharma is a safe pharma bet and is all set to post an EPS of Rs.25 in FY09 given its expansion plans. It is an excellent pick at a P/E of 3.
* With a likely EPS of Rs.45 in FY09, the shares of Surya Pharma are an excellent buy. It posted an EPS of Rs.32 in FY08.
* GM Breweries, which recorded an EPS of Rs.16, is available at a P/E of 4.6 against industry P/E of 35. A safe bet for the medium-term.
* LIC Housing Finance’s net profit has shot up by over 120% in Q1FY09. With a likely EPS of Rs.60 in FY09, the share can touch Rs.350 in the short-term.
* Polyplex Corporation with a consolidated EPS of Rs.52 in FY08 is faring well. Post expansion, its EPS could increase to Rs.68 in FY09 and Rs.80 in FY10. The share is available dirt cheap with a forward P/E of just 2.6 on FY09E and 2.2 on FY10E.
* Som Distilleries counter is going strong on robust Q4FY08 results. Post expansion of Rs.55 cr., its EPS for FY09 may touch Rs.9/10 and the share can double in the medium-term.
* Sandur Manganese has posted an EPS of over Rs.70 in the June 2008 quarter. With manganese prices firming up globally, the company may be able to sustain earnings in coming days.
* Unitech at Rs.160 level is considered a good bargain as the company has posted good Q1FY09 results above market expectations.
* The Ranbaxy counter was witnessing investor apprehension about the open offer. But with the US agencies withdrawing the probe the open offer is likely to sail through providing a good opportunity to acquire shares at lower cost after tendering in the open offer.
* I-flex Solutions has posted good growth oriented Q1 numbers. With delisting possibilities gaining ground, there is increased interest in this stock.
* Both HBL Power and Numeric Power have come out with excellent results for the June 2008 quarter. Yet there is no significant movement in their share prices. Keep accumulating these solid picks at current levels.
* Torrent Cable has reported a drastic fall in operating profit for the June 2008 quarter. Scrip may drift lower to hit new highs later. Exit now and buy later.
* Net foreign inflow of Aftek Ltd. is very low as it is not much affected either by the appreciation or depreciation of the rupee. Besides, it has an embedded value in the form of indirect stake in Seekport. A risk-free bet.
* Due to heavy advertising expenses, Spice Mobile reported a net loss. Investors should exit immediately and wait for the next two quarters to get the real picture.
28th July 2008 –
* Although market veterans feel that the worst is over and markets may rise, technical analysts are sure that market is going to make new low below 12K level in coming months.
* Zensar Tech has reported very encouraging results for the June 2008 quarter. Little wonder, the scrip shot up 30-35% in just four trading sessions.
* Price of calcined petroleum coke has jumped siginificantly and is expected to remain high in the near future. Keep accumulating Rain Commodities.
* Technically, Spanco Telesystem has bottomed out and can be bought safely at current levels. Post its Q1 numbers, the scrip can see a smart rally in the short-term.
* The panic selling in Lok Housing is over. The scrip has stabalised and can easily double from the current level within a year. Long-term investors can safely buy it now.
* MacMillan India is transforming itself into an IT company. Its publishing company shares would be bought back at Rs.69. A great opportunity for buying the IT business of Macmillan India cheap with little downward risk.
* Super Tanneries has announced Board Meeting for considering Bonus. There is some action seen on this stock.
* Bihar Tubes has been adding capacities by inorganic acquisitions. Stock looks good for patient investors.
* Country Condos traded on NSE as Neocure is looking steady at Rs.28 level. Is it a country club in the making?
* Numeric Power, which posted an EPS of Rs.85 in FY08 is doing well and is set to register 35% higher bottomline leading to an EPS of Rs.115. With tiny equity of Rs.5 cr., marketmen expect a liberal bonus.
* Micro Technologies, which posted an EPS of Rs.50, is going cheap. Some traders have already accumulated the stock in anticipation of it crossing Rs.400 mark in one year.
* IFB Agro, the maker of vodka, has posted an EPS of Rs.10. The share is going cheap.
* A reputed brokerage house strongly recommends Goa Carbon. Given the firm prices of calcined petroleum coke, it can register an EPS of over Rs.28 in FY09. The share could appreciate by 50% in the near future.
* Technocraft Industries is all set to post an EPS of Rs.15 in the current year. The share is being accumulated by the persons in the know. * Deep Industries and IDFC are being accumulated by punters.
* Godawari Power, which posted an EPS of Rs.35, has been allotted 2 iron ore mines and 2 coal mines for captive use. Analysts project an EPS of above Rs.55 in FY09 and Rs.70 in FY10. Investment can double in the medium-to-long-term.
* The shares of Tulsyan NEC are being cornered by punters in the know. Its EPS of Rs.27 for FY08 went unnoticed by marketmen. Its book value of Rs.95 and small equity of Rs.5 cr. makes it a bonus candidate.
* Lloyd Electric, which took over Luvata Chez in Europe, will add Rs.250 cr. in revenue and is likely to post an EPS of Rs.24 against Rs.19 in FY08. Persons in the know project a share price of Rs.125 in the near term.
* Ennore Coke is likely to purchase a coal mine and the promoters are likely to increase their stake to 80%.
* The takeover code in Shiva Cement may be triggered when 17.7 million warrants issued to ACC come up for conversion in December 2008 or earlier in August on technical grounds.
Shubham Consultants 
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