tag:blogger.com,1999:blog-82509451426265044752024-03-05T10:14:15.990+05:30IndianStocksNews.comBest Stocks To BuyUnknownnoreply@blogger.comBlogger176125tag:blogger.com,1999:blog-8250945142626504475.post-53786490882823029372013-01-23T08:43:00.000+05:302013-01-23T08:44:23.913+05:30Mid Cap Stock Analysis - Oberoi Realty LimitedStock analysis of Oberoi Realty Limited based upon 3QFY13 results along with recommendation.<br />
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3QFY13 revenues for Oberoi Realty Limited are at Rs. 310 crore, it is up 41% yoy and 9% qoq. These numbers are higher than stock analysts’ estimates.<br />
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EBITDA margin has improved by about 100 bps on a qoq basis for company. Operating margins for its hospitality business improved significantly to 20.8% compared to 9.2% last year and 4.9% in the previous quarter.<br />
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Contracted volume sales remained flat at 0.12 million sq ft vs 0.13 million sq ft in 2QFY13 and 0.12 million sq ft in 3QFY12.<br />
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Note the company has not included contracted sales volume from the Worli real estate project. This lower contracted sales volume is due to lack of no major launches.<br />
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Operating Cash Flows for company have moved back to positive territory. One may 'buy stocks’ of Oberoi Realty Limited with stock price target of Rs.351 in medium term.<br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-43811784099234718392012-06-25T08:37:00.002+05:302012-06-25T08:45:01.320+05:30United Phosphorus..Are shareholders at correct place?I was watching latest episode of Aamir Khan's TV show Satymev Jayate. CMD of United Phosphrous, Mr. Shroff had participated in this show and the way he was talking about sensitive issue of health absolutely insensitively, I really wonder if money of shareholders of United Phosphorus is in safe hands!<span id="fullpost"><br />
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As an educated person (I think I am!) and follower/user of organic food for a past few years, I felt Mr.Shroff was trying hard to insult my intelligence.<br />
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At the very same moment, the way he was endorsing pesticides (I felt it was foolishly), looking at his way of fooling around the sensitive issue of pesticides very insensitively, I strongly felt how he would be running his company and how he would steer the company in future.<br />
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Has he really been able to run the company with futuristic vision? Or the business of company is just to manufacture poison and sell it allover India as "medicine" for crops? Why this company has not been able to find something which is organic and non-harmful? Why they are not researching on 'organic pesticides'? Why can not we (and they) think differently?<br />
<br />
Being stock analyst, I felt Mr. Shroff's vision in this direction is completely blocked. The way he represented the company on national television, was totally inappropriate in my opinion and so, the question, if shareholders of United Phosphorus have deployed their money at correct place? Feel free to express your opinion, we are world's biggest democracy and no one can and should dare suppress our voice!</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-79516448074464618552012-06-15T08:34:00.000+05:302012-06-15T08:37:17.360+05:30Mid Cap Stock To Buy - Page industries<div dir="ltr" style="text-align: left;" trbidi="on">Here is one Mid cap stock to buy with huge growth potential still waiting ahead. <span id="fullpost"> <br />
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Page Industries is a franchisee of Jockey International (USA) in India. It manufactures and distributes Jockey products in India, Sri Lanka, Bangladesh, Nepal and UAE. Its products include innerwear and leisure wear for men and women. Though men's innerwear is the major contributor to total sales, the contribution of women's innerwear and that of other categories has been rising steadily. It has an installed capacity of almost 10.9 crore pieces per annum. The company has very strong distribution channel and you can see the Jockey products selling in every clothing shop across the nation.<br />
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<b>GROWTH</b><br />
The company is in business for more than 17 years now and has established itself in India with very strong distribution network of 400 distributors and 20,000 retail outlets. It is a very wellknown brand with superb brand power that gives it product pricing power to keep it's profit margins stable. <br />
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The innerwear market has been growing at compounded annual growth rate of 12% for last ten years. Sales of Page industries have grown at a CAGR of 34% for past 10 years. Company has increased it's manufacturing capacity by 500% in past 10 years. With added capacity in future, company will explore markets of Sri Lanka, Bangladesh, Nepal and UAE.<br />
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<b>STOCK FINANCIALS</b> <br />
Sales of Page Industries have grown at a CAGR of 38% in the past five years. Net sales is expected to be Rs.700 crore in FY12. Operating margins are 21% for past five years. Its PAT has grown at a CAGR of 40% and is expected to be Rs.93 crore for FY12. It's debt- equity ratio was 0.4 as on September 30, 2011. The debt was for faster capacity expansion.<br />
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<b>STOCK VALUATIONS </b><br />
Return on Equity for Page Industries has been very high (43 in FY10, 53 in FY11 and is expected at 65 in FY12). Very few stocks can generate such a high and a growing return on equity. The stock trades at stock price of Rs.2,900 currently. This puts P/E ratio at 36. The steep valuations seem to be very high at this point of time. It is the price of being very high growth stock. This high growth potential certinaly makes it a stock to buy. If this stock corrects with valuations of below 30 P/E, one may buy stocks of Page Industries for long term investment.</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24530362756287093872012-05-14T03:43:00.000+05:302012-06-11T06:37:31.308+05:30Stock Research Report - Hyderabad IndustriesHyderabad Industries is a C K Birla Group company. It is into the business of producing building products, engineering goods and industrial products and is a market leader in its segments.<span id="fullpost"> <br />
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HIL markets its product AC and fibre cement sheets under the well-known brand “Charminar”. The total capacity of the cement sheet is 8.55 lakh tpa, prefab building panels at 4.60 lakh tpa, prefabricated autoclaved capacity at 3.05 lakh tpa and thermal insulation capacity is 6,000 tpa. <br />
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The commercial production of sheeting line 2 in Uttar Pradesh has started w.e.f. 09 February 2012. HIL is also the largest manufacturer of calcium silicate, insulation blocks, pipe sections and jointing for gasketing, thereby meeting the critical needs of the fertilizer, engineering & chemical industries. Company also makes aerocon prefab panels, autoclaved aerated concrete blocks, which find applications in the construction of buildings, malls, shopping complexes and office partitioning etc. <br />
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HIL has a strong & extensive distribution network with nearly 8000 sales points spread across the country which is serviced by its 45 depots across country.<br />
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The stock trades at current stock price of Rs.358 at P/E of 4.4 FY12. With expected EPS of 93.5 in FY13E, stock trades at P/E of 3.83 and at P/E of 3.25 with 110 EPS FY14E. With these estimates, stock price target will be Rs. 480 in medium term.<br />
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At current stock price of Rs. 358, dividend yield is also very attractive at 4.47%. It's book value is 474 making it a stock available below book value and a good dividend yielding value stock to buy. <br />
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<b>KFA’s bankruptcy will lead to better price discovery for USL:</b> <br />
United Spirits (USL) is promoted by United Breweries Holding (UBH, 28%), which is also the promoter of Kingfisher Airlines (KFA). According to UBH’s FY2011 Annual Report, the company has given guarantees worth `9,135cr on behalf of Kingfisher Airlines (KFA). If KFA goes bankrupt, UBH will have to repay KFA’s debt and other liabilities (which are guaranteed by UBH), which can only happen if UBH offloads its stake in United Breweries Ltd. (UBL), USL or sell its other fixed assets or subsidiaries. If UBH plans to offload its stake in USL, we believe it would lead to better price discovery for USL, as it is presently trading at its historically low valuations and the stake sale would be at a premium. In the past also, companies have been known to pay huge premium to buy majority stakes in such companies, thereby leading to a significant increase in stock prices in a short period of time.<br />
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<b>Problems with KFA not to affect USL’s fundamentals:</b> <br />
Although USL and KFA have the same promoter, they are involved in different businesses that are not interconnected in any way. We believe USL’s stocks have overreacted to all the negative news of KFA, although its business has continued to show strong growth overall. USL achieved the tag of the world’s largest spirit company in volumes at the end of FY2011, and it is expected to maintain this position in FY2012 also. However, the company has recently been facing concerns regarding its mounting debt and is trying to raise US$225 through FCCB issue, which will help it to reduce its interest cost over the coming quarters. The money raised will be partially utilized to repay debts, which will bring down USL’s interest cost and lead to lower cash outflow.<br />
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<b>Valuations too attractive to be ignored:</b> <br />
The negative news of KFA led to a significant decline in USL’s stock price. However, we believe the impact of KFA’s performance has already been reflected in USL’s stock price, and USL is now expected to get re-rated going ahead, based solely on its fundamental performance. We estimate USL’s revenue to witness a 11.5% CAGR and net profit to post a 22.1% CAGR over FY2012-14E. At the CMP, the stock trades at only 15.0x FY2013E and 12.3x FY2014E earnings. We believe the stock valuations are quite attractive and, thus, recommend to buy stocks of Unites Spirits with a target stock price of Rs.884, valuing the stock at 17x FY14 EPS of Rs.52.<br />
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Goodyear India reported lower-than-expected revenues of Rs.395cr. Stock market analyst’s were expecting the company to post revenues to the tunes of Rs.440 crores. Company’s EBITDA margin was flat on a yoy basis. Company paid higher raw material cost but it was offset by other lower expenses. <br />
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Company’s net profit for the quarter stands at Rs.20cr.<br />
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<b>Business Growth</b><br />
Goodyear is one of the most reputed tyre brands in India and has got a tremendous brand recall. Also it is the market leader for tractor tyres. Tractor tyres contributed almost 60% to it’s tyre sale by weight in 2011. The tractor industry in India had grown by 27% in 2010 and is expected to grow at similar pace from 2011 to 2013 period. This should help Goodyear India to clock estimated CAGR of 17% in revenues till 2013. <br />
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Goodyear India has very high end brands as it’s clientele. The list comprises of Audi, BMW, Land Rover, Mitsubishi and Porsche. The ROIC of company in 2011 stands at, hold your breath, 1,022.7% !! By far the best in industry (Industry standard is 30%).<br />
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<b>Stock Valuations:</b><br />
Goodyear India Limited is a debt free company with cash reserves of Rs.249cr as in 2011.<br />
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Company’s raw material, raw rubber, has become cheaper in past one year. Rubber prices have comedown to Rs.188/kg in February 2012 from Rs.243/kg in April 2011. It is a big decline for company’s raw material procurement costing and would definitely boost the bottom line in coming quarters.<br />
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As mentioned above, revenues of Goodyear India are expected to grow at CAGR of 17% from 2011 to 2013. And due to this growth along with rubber price decline, company’s net profit should witness growth of over 37% CAGR till end of 2013.<br />
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At current stock price of Rs.360, the stock trades at P/E of 12.44 and at P/E of 6.9 to its 2013 estimated EPS of Rs.52. If you value the stock at P/E of 9 in year 2013, the target stock price should be around Rs.470. One may buy stocks of Goodyear India for 1 year target stock price of Rs.470.<br />
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The major take away from the meet was that the company is on the right track in terms of making investments to strengthen its product portfolio and is taking initiatives to improve its financial metrics.<br />
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<b>Focus on systems and process to provide scalability:</b> <br />
During the meet, Mr. BVR Mohan Reddy, Infotech’s Chairman and Managing Director, highlighted that the company is now focusing on strengthening its leadership along with improving its systems and processes and making them scalable. Further, the company will take in SAP integration, as currently three of the company’s subsidiaries are operating independently.<br />
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<b>Healthy market opportunity:</b> <br />
As per Zinnov Consulting, a leading IT consulting firm, the engineering market is expected to reach US$40bn by 2020 from US$10.4bn currently (led by industries such as aerospace, automotive, consumer electronics and telecom). Infotech, being a leader in the aerospace and telecom engineering spaces, has strong relationships with clients in these areas and, hence, can capitalize on this opportunity.<br />
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<b>Focus on improving client mining:</b> <br />
Infotech’s management is currently focusing on adding and increasing its wallet share from ‘must have’ accounts across its target verticals. The company is doing this by changing the incentive structure of customer-facing roles and is investing considerably to improve client mining and account management skills.<br />
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<b>Stock Valuation:</b> <br />
At current stock price of Rs.148, the stock trades at 8.6x FY2013E EPS of Rs.17.1. One may buy stocks of Infotech Enterprises in small chunks for target stock price of Rs.162, valuing it at 9.5x FY2013E EPS.<br />
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<br />
<embed src="http://www.box.com/embed/uabcgv05crax2uj.swf" width="475" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-9087663753360537652012-02-27T00:41:00.003+05:302012-02-28T08:30:34.853+05:30Buy Stocks of Va Tech WabagVa Tech Wabag is from one of such sector which has good future prospects. It is from drinking water management and waste water treatment plants sector.<span id="fullpost"><br />
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<b>Business</b><br />
VA TECH WABAG Limited (WABAG) is engaged in design, installation, supply and operational management of drinking water and waste water treatment plants. Four business units of company include Municipal Business Group, Industrial Water Business Group, International Business Group and Operation and Maintenance Business. <br />
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VA TECH WABAG provides services of engineering-procurement-construction (EPC) and O&M solutions for sewage treatment, drinking and industrial process water treatment, effluents treatment, sludge treatment, desalination and reuse. It’s clientele include municipal corporations and companies in the infrastructure sector, such as power, steel and oil and gas companies. The company has subsidiaries in Austria, Switzerland, Germany, Czech Republic, Romania, Macao, Algeria, Tunisia, Egypt and Turkey.<br />
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<b>Strong Order Flows</b><br />
Company’s order flows in 3Q FY12 are very encouraging for it’s numbers. Company has received order flows of almost Rs.530 crores. It has receved order flow of Rs.380 crores in first half year. This is big growth in terms of order flow in one quarter!<br />
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Company management has guided for FY 12 revenues of between Rs.1400 to Rs.1500 crores with stable EVITDA margin. For 3QFY12 the company reported 7% yoy decline in revenue and 27% fall in EBITDA with 190 bps yoy decline in EBITDA margin. But even at Rs.1400 crores revenue projected, it is a revenue growth of amost 23% in 4QFY12 and looking at current order book, it certainly looks achievable.<br />
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Va Tech Wabag has already received letters of awards in three BOT projects. Also, company is the lowest bidder in some of the projects and so may get a few more projects. This provides good opportunity of growth for company. <br />
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Va Tech Wabag may be looking for acquisition to expand it’s service offerings in near future. Also, if company receives more order in FY12 additional to estimated Rs.1800 crore order inflow. These developments would turn the outlook for stock more positive. <br />
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One may Buy Stocks of Va Tech Wabag with target stock price of Rs.490 over the time period of one year.<br />
<br />
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<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-8011459870265847422012-02-12T07:46:00.001+05:302012-02-15T05:29:21.772+05:30Stock Report - Bajaj ElectricalsBajaj Electricals (BEL) has posted strong growth in 3QFY12. This stock research report by Angel Broking recommends to buy stocks of Bajaj Electricals.<span id="fullpost"><br />
Bajaj Electricals (BEL) posted strong top-line growth of 15.1% yoy to Rs.794cr (Rs.690cr) in 3QFY2012. The company’s OPM fell by 212bp yoy but improved by 66bp qoq to 8.2%. PAT for the quarter came in at Rs.33cr (Rs.41cr), down 19.1%<br />
yoy. <br />
<br />
<b>Stock Valuations:</b><br />
The trend of strong top-line growth is expected to continue going ahead as well. Further, company’s margin is expected to improve from these levels on the back of easing commodity prices and closure of lower-margin E&P projects. Overall, it is expected that the company will post a top-line CAGR of 15.7% over FY2011–13E. Stock analysts's expect adjusted PAT to register a CAGR of 18.5% to Rs.183cr over FY2011–13E. With the recent sharp correction, the stock is available at attractive valuation on just 9.3x FY2013 earnings, against its five-year historical average of 11x one-year forward earnings. It is recommended to Buy stocks of Bajaj Electricals for target price of Rs.201, valuing the stock at 11x FY2013 earnings.<br />
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<embed src="http://www.box.com/embed/gixpu8sbo48dgtc.swf" width="480" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"><br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-18956400834395142452012-02-09T06:09:00.003+05:302012-02-09T18:10:35.128+05:30Union Bank – Stock Analysis with Target Stock PriceHere is stock analysis based on recent results of Union Bank in 3Q FY12 and target stock price.<span id="fullpost"> <br />
<br />
The bank has reported NII increase of 7.2% yoy and net profit of Rs.150 crore, which is 74.4% down yoy. Net profit is impacted by one-off NPV (net present value) loss of Rs.380 crore from restructuring of accounts worth Rs.2040 crore.<br />
<br />
Net Interest Margin (NIM) improved to 3.31% in 3Q from 3.21% in 1Q as yield on funds improved 37 bps qoq to 9.62% while cost of funds increased 18 bps qoq. Slippages decreased to 1.7% from 5.8% in 2QFY12. GNPA declined to 3.33% FROM 3.49% IN 2QFY12.<br />
<br />
CASA deposits ratio improved to 32.5% in 3Q from 32.1% in 2Q and the bank has been reducing high cost deposits. Advances grew at healthy 16.8% yoy and 6.1 % qoq.<br />
<br />
As per guidance form management, 16% advance growth for FY12 is expected. GNPA is expected to bring down to 3% by 4QFY12 end.<br />
<br />
It is expected that government is going to infuse equity of Rs.270 crore in Union Bank in 4Q. This will improve Tier -1 capital for bank from the current level of 8%.<br />
<br />
At current stock price of Rs.238, the stock trades at P/E of 9.38. Dividend yield for stock stands at 3.36% which is very good and makes Union Bank a good dividend yielding stock. The stock has gone from 160 levels to 238 in past 50 days quickly. If it corrects from here to 200 levels which can not be ruled out, it will be a good stock to buy from banking sector for target price of Rs.255 in medium term.<br />
<br />
You may like to read:<br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-76611208629240898802011-12-29T05:54:00.000+05:302012-01-03T09:49:31.507+05:30Stocks To Buy in 2012 - Noida Toll Bridge<div dir="ltr" style="text-align: left;" trbidi="on">A stock of a company which has already made it’s investment, done all the work and now just collects revenues with minimal operational expenses should be on your list of stocks to buy in 2012 for sure. Any value investor should buy stocks of Noida Toll Bridge in 2012 for excellent returns on investment looking at future developments in company. Here is the reasoning.<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_Qo8Wa_kCRYYE7sjAqgrpJaJsomrrEhxLihkDhGAYNg7upgyTtp9RnXdIlcyZr_LgM2U6vcVH57-6PFcArEyqniZSlTpj1JPX23N9jnD9VGEQbcSn-tyv3ZA5YbTj7kcRr5CVu_y878Iq/s1600/stock+analysis+-+Noida+Toll+Bridge+Company+-DND+Flyway.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="137" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_Qo8Wa_kCRYYE7sjAqgrpJaJsomrrEhxLihkDhGAYNg7upgyTtp9RnXdIlcyZr_LgM2U6vcVH57-6PFcArEyqniZSlTpj1JPX23N9jnD9VGEQbcSn-tyv3ZA5YbTj7kcRr5CVu_y878Iq/s400/stock+analysis+-+Noida+Toll+Bridge+Company+-DND+Flyway.JPG" width="400" /></a></div><span id="fullpost"> <br />
<b> Business</b><br />
Noida Toll Bridge Company Ltd. (NTBCL) has constructed and now operates a bridge (popularly known as DND flyway) that connects South Delhi to Noida. It is an 8 lane world class highway with toll plaza. NTBCL is promoted by IL&FS. NTBCL has only one business, to collect toll revenues form DND flyway which it has already constructed. The bridge is like cash machine for company. The company just have to spend money on minimal operational needs and maintenance of bridge. Operational expenses are not very high. And that is the reason behind company’s operating profit margin of 76% in FY11. Company has to pay big portion of this for debt repayment and interest costs associated with it. <br />
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Thousands of vehicles travel everyday on DND flyway out of need to commute between Delhi and Noida. And DND flyway is the only time and energy saving route that vehicle commuter has. Other two routes (via Nizamuddin bridge and Okhla bridge) are free to use but are time consuming and traffic laden. I have travelled a lot on DND flyway and of course on other two mentioned bridges myself by car and at any given day, I have preferred to use DND flyway paying toll. This was to save my time (approximately 20-30 minutes if I use other routes) and of course to save fuel. As per my calculations, with an increased driving distance of 4-5 kilometers per trip if I use alternative free routes and not DND flyway, I would burn more than 1/4th liter of petrol or more in driving, spending at least Rs.18-20 extra in petrol (petrol at Rs.70/liter). And then, extra travel time, hassle of very slow moving big traffic (that burns more fuel than mentioned earlier). Any sensible car driver would use DND flyway so NTBCL may never face slowdown in terns of traffic. Traffic is in fact bound to increase due to huge business infrastructure and residential developments in Noida, Greater Noida and along the sideways of Noida-Greater ay. Visit <a href="http://www.dndflyway.com/" target="_blank">DND Flyway</a> site for more details on business. <br />
<br />
May be, Delhi metro should prove competition to DND flyway (two wheeler riders may opt for metro) but chances of travelers using cars being diverted to metro are very less in my opinion. <br />
<br />
<b> Stock Financials</b><br />
Now, just imagine a company which has operating profit margins of like 76%, will make how much profit once it becomes debt free! NTBCL had debt of Rs. 358 crores in March 2005. As on Sept. 2011, the debt is down to Rs. 126 crores. At this speed, company may repay entire remaining debt within 2 years. And there after, you would have a company which is debt free, generates cash on the spot from toll collections with big operating profit margins.<br />
<br />
Along with toll revenues, NTBCL also collects revenues by placing advertisements along side the entire bridge. And advertisement revenues are growing every year (up 20% in FY11 from 10 in FY10 to 12 crores). Under the project agreement with Noida authority, company has right to earn assured returns of 20% on total project cost through toll collection for 30 years from Jan 1999 onwards. The total project cost also includes major maintenance expenses on top of which the profit would be earned.<br />
<br />
As in FY11, the total project cost with profit projections that NTBCL management has estimated stand at Rs.2021 crores. And to recover this money, NTBCL will have possession of DND flyway for 40 more years additional to 30 years in contract! There is an alternative using which company can recover these costs. The alternative is that Noida authority would award development rights of land along DND flyway to NTBCL. And this land is very precious and at prime location between Delhi and Noida. So there is a real estate play for company in future.<br />
<br />
<b> Stock Valuations</b><br />
5 year median P/E ratio for NTBCL stands at 22. The stock trades at CMP of RS. 20 with P/E of just 10. Company’s EPS growth for last five years (CAGR) is about 25%. The PEG (Price earnings to Growth) ratio stands at 0.4. Any stock with PEG ratio lower than 1 can be considered as value stock. NTBCL can be called as a good value stock. Company has started paying dividends in 2010. Dividend was 50 paise per share which puts stock dividend yield at 2.5% annually at CMP of Rs. 20. As the debt would reduce in future, net profit would increase and so the dividends. You can expect NTBCL to be a good dividend yielding stock in future for long term. <br />
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All in all, Noida Toll Bridge is one of the very good stocks to buy for long term investment portfolio. It will pay you good stock dividend too. It has good scope for capital appreciation in future looking at current stock valuations. One may buy stocks of NTBCL at CMP (Rs.20) or below, which has limited downside.<br />
<br />
Disclaimer: I own this stock at 22-23 levels and determined to add more at CMP and below for long term.<br />
</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-30272146781471181172011-07-29T08:14:00.000+05:302011-07-29T08:14:26.692+05:30Safe Mid Cap Stock Idea<div dir="ltr" style="text-align: left;" trbidi="on">Here is one mid cap stock that is relatively safer compared to mid cap stocks space. NIIT Technologies, an IT stock with good growth rate could provide you very good investment returns in next 2-3 years. <br />
<span id="fullpost"> <br />
NIIT Technologies is a mid-tier IT company providing IT solutions to customers aross North America, Europe, Middle East, Asia and Australia. It's services and solutions include application development and maintenance, managed services, cloud computing and business process outsourcing space to organisations across verticals. Revenue wise, Travel and transportation segment is single largest contributor(29%) while financial services and insurance contributes 37%, government segment contributes 18%, manufacturing and distribution 8% and rest is by all other segments.<br />
<br />
<b>Stock Financials</b><br />
Company has reported almost 9% CAGR growth in topline and bottomline for past four years. Company's order book stands 15% higher at $169 million at the beginning of FY12 against the start of previous year. The maximum order intake was during the March 2011 quarter when company received fresh orders at $116 million were more than double the total number of orders in Dec.10 quarter.<br />
<br />
Travel and transportation segment was the key growth driver during March 11 quarter with 12% sequential increase in total revenues to Rs 107 crore. Even with good growth, the company's operating profit margin was flat at 19.9%. Comapny has provided, on average, a 13% offshore and 3% onsite salary hike which could stress the margins in near future. But company operates at a utilisation level of above 80% which is higher compared to that of other IT companies.<br />
<br />
<b>Stock Valuations</b> <br />
NIIT Technologies is a consistent dividend paying stock with dividend yield of more than 4%!<br />
<br />
At current stock price of Rs. 228, the stock trades at P/E of 12.11 for trailing four quarters EPS. Looking at the healthy order book lined up for execution in next one year, its' expected EPS in FY12 and FY13 is Rs.25 and Rs.35 resply. With same P/E of 12, NIIT technologies could touch Rs.300 in one year and Rs.400 in 2-3 years time frame if nothing drastically goes wrong for company. <br />
<br />
One may buy stocks of NIIT Technologies at every dip in small quantities. It becomes very attractive if the stock trades around or below Rs.200.<br />
<br />
</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-36421673110007541172011-06-17T06:15:00.001+05:302011-06-17T06:15:36.808+05:30Mid Cap Stock To Buy - RIIL<div dir="ltr" style="text-align: left;" trbidi="on">I recently came across a discussion on this mid cap stock recommended as multi bagger stock to buy. What is in Reliance Industrial Infrastructure that it has potential to be a multi bagger stock for investors?<br />
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Reliance Industrial Infrastructure (RIIL) is a Reliance group company from Mukesh Ambani’s stable. Reliance Industries directly holds 45.45% stake in RIIL. Reliance Industries is the promoter of company and they created this entity around 5 - 6 years back.<br />
<br />
If you look at the financial numbers, company has no exemplary performance in past that may indicate towards possibility of bright future performance. It is a company with completely flat financials for past 5 years and no growth achieved at all. <br />
<br />
What does RIIL do? Company owns roughly 56 kilometers of pipeline to transport the crude oil from Chembur to Patalganga plant. Company does not do anything except managing this pipeline as on today. It was doing same thing for past 5 years in a row with almost same revenue and profits. The EPS was around Rs 15 steady. At current stock price, RIIL has market cap of less than Rs 1,000 crore.<br />
<br />
So essentially RIIL is a sleeping company doing only one business at the same scale for years. But that seems to be changing now. Recently Reliance Industries has acquired 74% stake in Bharti AXA Life and Bharti AXA General Insurance. Out of this 74%, 17% stake is acquired by RIIL. RIIL as a company has net worth of Rs 200 crores, out of this, Rs 170 crores is a cash. <br />
<br />
Taking this development as a trigger, Reliance group management should have some plan for this company now. Being a Reliance company, RIIL cannot stay lagging for long for sure. When they start getting into such new businesses for growth, we would see the movement in company and so financials.<br />
<br />
If the RIL plans more for RIIL in near future, this company can be well on it’s path to become a large cap soon. And so would grow the numbers with appreciation in stock price. RIIL stock trades at P/E of 35 for these hopes. It had touched almost Rs 3000 on such hopes in past. If business starts moving, stock price would certainly fetch big investment returns for sure. One may buy stocks of RIIL on these hopes for long term portfolio investment. <br />
<br />
</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-21679296311117361612011-06-12T22:53:00.001+05:302011-06-12T22:57:07.072+05:30Mid cap stock to buy - Manaksia Ltd.<div dir="ltr" style="text-align: left;" trbidi="on">Here is a stock report on this good mid cap value stock with good dividend yield and promising growth prospects too.<br />
<a name='more'></a><br />
Manaksia Limited manufactures metal, packaging products, value-added metal products, made of aluminum and steel. It also manufactures mosquito repellent coils and vaporizers. Four segments company operates in are packaging product, mosquito coils, metal product, and engineering & others. <br />
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Packaging takes care of manufacturing/sale of pilfer proof (PP) cap, crown closures, metal containers, EP Liners, washer, EP sheets. Metal product consists of manufacturing/sale of aluminum and steel galvanized sheets, coils etc. Engineering and others consists of manufacturing and sale of machine, spare parts etc. Company manufactures in India and Nigeria.<br />
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Manaksia is well in position to take advantages of growing consumerism in emerging markets with operations in India, Africa and West Asia. Looking at company's expansion plans and restructuring initiatives, the stock looks to be a value stock to buy for long-term investment. <br />
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Manaksia has good set of clients including Dabur India, Jyothy Laboratories, Eveready Industries, and McDowell Group. Their metal product division is the main contributor to its revenues and profits.<br />
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Growth Prospects:<br />
Company's presence in multiple countries enables it to capitalise on growth in construction, engineering, and transportation sector growth in emerging markets. Expansion in company's balance sheet and steady cash flow over the years proves this and it will continue in similar manner. The company has achieved vertical integration for a number of products that lowers the manufacturing costs. With management's restructuring plans materialization, operating efficiency should improve further.<br />
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Stock Valuation:<br />
Over the past three years, the company's consolidated net sales grew by 12% and net profit by 10% when compounded annually. Sales from its metal products division, which contributes about 80% to its topline, grew 11%. <br />
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The management has been efficiently using its strong cash flows to reduce its debt burden. With Rs 75.77 crore cash on its books and a debt-equity ratio of 0.3, the company has ample room for fund raising to support expansion plans. It gives a return-on-capital of 12% and a dividend yield of 3.23% at current stock price of Rs.74.<br />
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12 month trailing P/E ratio stands at 16.54 for company. This is certainly not cheaper. But with book value if Rs.83 and price to book value ratio of 0.89, Manaksia looks like a good value stock with good growth prospects. For these factors, it could be a stock to buy for horizon of two years at any dips in it's stock price from current level.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-4046339443342016152011-05-31T05:24:00.001+05:302011-05-31T05:25:14.510+05:30Stock Analysis - GIPCL<div dir="ltr" style="text-align: left;" trbidi="on">Quarterly result and stock analysis on GIPCL for 4QFY2011 with target stock price for one year. It is certainly a good dividend yielding stock to buy for safe investment returns. <br />
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GIPCL was incorporated in 1985 as Public Limited company under the Government of Gujarat. The company is engaged in business of Electrical Power Generation. The total present capacity of Vadodara and Mangrol plants is 810 MW. The company has a vision to transform itself into a national level power sector enterprise. The company has its registered office at P.O. Petrochemical, Vadodara, Gujarat.<br />
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GIPCL has posted 124.9% yoy growth in net profit to Rs 81.2cr in 4Q FY2011. This was due to a substantial reduction in fuel costs and write-back of taxes related to previous years. During this quarter, 165MW Vadodara Station II that company owns was shut down for maintenance. This lead to low PLF of 30.8% ( against 80.8% in 4Q FY2010), which is the reason behind low fuel costs. However, Vadodara Station II achieved the requisite PAF for FY2011 as a whole and, hence, the company’s top line was not impacted majorly in 4Q FY2011. Consequently, OPM surged to 39%. The company indicated that operations of the newly commissioned SLPP Units 3 and 4 (250MW) have stabilized and are currently operating at healthy PAFs of ~80%.<br />
<br />
<b>Result Analysis</b><br />
GIPCL’s 4Q FY2011 revenues grew by 24.1% yoy to Rs 315cr. OPM for this quarter rose by 1,457 basis points yoy and 1,236 basis points qoq to 39% due to lower fuel costs at 49% of net sales. <br />
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Net profit of the company rose by 124.9% yoy to Rs 81.2 cr on account of a surge in operating profit and net tax gains of Rs 21.4cr for the quarter due to tax adjustments of earlier years and deferred tax income.<br />
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<b>Stock Valuation</b><br />
GIPCL’s revenues and net profits are expected to show CAGR growth of above 20% over next 2 years. <br />
<br />
At the current stock price of Rs 84, the stock trades at P/E ratio of 7.7 for trailing four quarters. The book value of stock is at Rs 93.16. It is trading at Price/Book value of 0.90. The stock dividend yield comes at healthy 2.99% that makes it a good dividend yielding stock.<br />
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If we consider the expected growth, the EPS in one year could reach Rs 13. Valuing the stock at similar valuations after one year, stock price target could be Rs 95-100 i.e. roughly 15-20% investment returns in one year with almost 3% dividend yield as additional returns. All in all, GIPCL is a good stock to buy at dips from current stock price levels.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-74635785077180901752011-05-23T05:13:00.002+05:302011-05-23T05:16:11.154+05:30Buy Stocks of Everonn Education for long term<div dir="ltr" style="text-align: left;" trbidi="on">This is one of the stock to buy where you invest in it only for long term and see the value being created over the years. Buy stock of this company only if you have patience to wait for a few years (not days and months). <br />
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Everonn Education is a Chennai-based Education and training company incorporated in year 1987. Creation of knowledge resources, designing and delivering learning and training programmes and setting up infrastructure for these services are the areas company caters to. It has presence across the country in all states and operates 9,897 learning centers and offers services to over 3 million students. Everonn education operates in two segments namely instructional and Computing Technology (ICT) and Virtual Technology Enabled Learning Solutions (ViTELS).ViTELS contributes over 60% of the company's total revenue and ICT forms 22% and rest of the revenues come from the business through it's subsidiaries – EDURES and Toppers.<br />
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<b>Growth Outlook</b><br />
The company has a scalable and replaceable technology platform to impart training to create educational entrepreneurs – EDUPRENEUR. This initiative is to expand its reach at the district level in entire country. Everonn already has signed up seven such deals and expects to end FY2012 with 100 districts integrated within its reach. As part of the initiative called Educating India, Everonn will act as a facilitator, aggregator and the manager of the schools and colleges. These projects can be co-owned by retail investors by investing in as low as Rs.5 lakhs. It expects to end FY12 with the setting up of 50 schools and colleges in all.<br />
<br />
The company is constantly investing in its subsidiaries, including Everonn Skill Development and Everonn Business Education. While the former is likely to break even by this quarter, the latter is expected to start generating revenues within next three quarters.<br />
<br />
<b>Stock Financials</b><br />
Everonn has witnessed decent financial growth over the quarters. During the 12 months ended in December 2010, the company's revenue and net profit grew by over 75% each.<br />
<br />
Profitability is seen to be improving. During the December 2010 quarter, operating margin stands at 38.1%. The company has invested Rs.40 crores towards its two new subsidiaries. Both these businesses are likely to break even in coming quarters.<br />
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<b>Stock Valuation</b><br />
At the current stock price of Rs.567.4, this mid cap stock trades at 17.9 times its earnings (P/E) for the trailing 12 months. Although Price to book value at 4.16 looks higher in valuations, company's future growth looks promising being in education sector. With government's emphasize on better education and sector is being looked as sunrise sector, one my buy stocks of Everonn for long term value creation. It is not a stock to buy for short and mid term but strictly for long term investors. <br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-90739012013671024412011-05-20T08:36:00.000+05:302011-05-20T08:36:26.427+05:30Stock analysis post results - Patel Engineering<div dir="ltr" style="text-align: left;" trbidi="on">Here is the quarterly results update and analysis on Patel Engineering for 4Q FY2011. The stock recommendation on this stock remains Neutral until any further trigger. <br />
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Patel Engineering (PEL) posted disappointing numbers on consolidated and standalone basis for 4Q FY2011. Company’s current order book is running with delays in execution. New order inflow scenario is not encouraging for company so recovery to growth path looks difficult and may take some time. The company recently had an IT raid on their office. This would accrue in the next few months, increasing the tax rate in near future. Another negative trigger is the loss incurred due to project cancellations. This would materialize and impact the company’s financial numbers. All these creates a negative scene for company and suggests to not to buy stocks in near term unless we see any positive development in company. <br />
<br />
<b>Result Analysis</b><br />
It was yet another disappointing quarter on the operating front. For 4Q FY2011, on a consolidated basis, PEL posted growth of 33.4% yoy and 267.4% qoq in net sales primarily due to real estate revenue booking and low margin outside work. EBITDA margin came in at 8.1% (450/530bp yoy/qoq decline) due to Jogeshwari property sales – adjusting this, EBITDA margin would have been at 3–4%. Reported PAT declined by 50% for the quarter. <br />
<br />
<b>Stock Valuation and outlook </b><br />
PEL’s core business is C&EPC. It is facing problems with its large projects facing delays. Company has disappointing order inflow. Another most important factor to consider is the longer gestation nature of its order book, macro headwinds and increasing debt levels create a doubt on company’s growth visibility for the next few quarters. Considering blurred visibility in future, one should not buy stocks until any big trigger. <br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-25738507565944530042011-05-15T09:27:00.002+05:302011-05-15T09:33:22.711+05:30Stock Report - KEC International<div dir="ltr" style="text-align: left;" trbidi="on">BP Equities, a stock broker firm has recommended to buy stocks for KEC Internation for target of Rs.99 in it's recent stock research report. Checkout the stock report here.<br />
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KEC International’s (KECI) Q4 FY 2011 results reported sales of Rs. 15,589 mn. It is up 14.9% YoY and it's net profit of Rs. 786 mn up 25% YoY. The increase in profits was due to margin improvement and higher execution.<br />
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KECI has huge order book size of Rs ~78 bn as on April 2011 (around 1.75x its FY10 revenues) executable over period of 18 to 24 months providing optimistic future revenue visibility for coming period. With diversified order book geographically the company is insulated from slow down in order flows from any particular region.<br />
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The company has entered into water business and secured breakthrough order of Rs. 310 mn in April. The company intends to mark its presence in complete value chain of Water treatment and Water waste management. It has also received order in Balance of plant (BOP) segment. As the company is entering these segments it would not enjoy high margins as compared to other players.<br />
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<b>Stock Valuations</b><br />
At current stock price of Rs.80, the stock trades at P/E of 13.99 with EPS of 5.72. With expected EPS of Rs.9.07 in FY 2012, the stock trades at forward P/E of 8.8. With this consideration, one may buy stocks of KEC for the target of Rs.100-110 for medium term investment.<br />
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Download the detailed stock report <a href="http://www.box.net/shared/pn0keh2ipr" target=_blank>here</a>.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-85298843810151120712011-05-11T17:06:00.002+05:302011-05-11T17:40:47.322+05:30Buy Stocks of Jubilant Foodworks for long term investing<div dir="ltr" style="text-align: left;" trbidi="on">One of the stock broking firm executive, Gopinathna Natarajan from IIFL is of opinion to buy stocks of Jubilant Foodworks whenever the stock dips due to correction. Why so?<br />
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Do you buy stocks for investment? Do you eat Domino's pizza? If answer is yes to both, probably you might want to take "a piece" of "share" from Domino's pizza, not only from their pizza center but in stock markets too!<br />
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Jubilant Foodworks is a company that franchises and owns the network of Domino's pizza in India. It has a good theme to play on. It is from one of the fastest growing industries i.e. fast food industry. Indian middle class is growing and growing and growing. And so it's purchasing power and desire to spend. Western fast food is one of the items middle class is turning to at rapid space. Domino's and Pizza hut Pizza, Mcdonald's Burgers etc. <br />
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So Jubilant foodworks provides you an opportunity to play on this demographic shift by middle class Indian consumers. They have a market share of almost 70% in market. The total size of market amounts to roughly a USD 2 billion in India. The break-even point (starts generating profits after meeting the initial setup costs) in this market is very short. <br />
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The pizza business in India is experiencing very high growth rate for some time now and it is going see the same phenomenal growth for coming time looking at the huge growing middle and upper middle class income group.<br />
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The stock at current stock price is not cheap at all at P/E of 75 which breaks principles of value investing. But if stock corrects in case of stock market corrections, it is a good stock to buy at dips for it's growth story.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-77192510452049234502011-05-09T20:52:00.002+05:302011-05-09T20:52:20.339+05:30Mid cap FMCG Stock to Watch for - Jyothi Laboratories<div dir="ltr" style="text-align: left;" trbidi="on">I just came across a news that FMCG firm Jyothy Laboratories Ltd (JLL) , that makes and sells UJALA fabric wash detergents, has offered to acquire up to 20 per cent more stake in Henkel India in an open offer value at around Rs 96 crore.<br />
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This open offer at Rs 41.20 per share, would start on June 24 and end on July 14. <br />
Jyothy Laboratories had declared last week that it would acquire 50.97 per cent stake in Henkel India Ltd (HIL) from Germany-based Henkel AG & Co for Rs 118.7 crore. <br />
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After owning that the 20 per cent thru open offer (if it gets fully subscribed), JLL will own 85.87 per cent in Henkel India.<br />
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It is one more incident that Indian company is buying out a unit from an MNC. Although it is a small buyout, it is significant for a mid cap company like Jyothi Laboratories. It should significantly make additions in topline of the company. Bottomline impact in future needs to be scrutinized. What needs to be looked at is, Jyothi Laboratories has been growing at a decent pace as a business. <br />
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It's stock has zoomed from Rs 50 levels to Rs 200 levels in past 2 years which indicate growth that company is experiencing. <br />
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One should watch this small FMCG stock from future perspectives. It might prove to be a good bet.<br />
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I will soon post stock analysis of Jyothi Laboraties to see if we can benefit from this mid cap stock and it's growth. Watchout. <br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-4485481168732466952011-05-08T00:23:00.004+05:302011-05-08T00:27:29.875+05:30Mid Cap Stock To Buy - Paper Products Limited<div dir="ltr" style="text-align: left;" trbidi="on"><a href="http://www.indianstocksnews.com/2011/05/stock-analysis-paper-products-limited.html">Paper Products Limited</a> is a Mumbai based leading consumer packaging company. It is a high dividend yield stock with very good fundamentals and growth. This is what makes it a <a href="http://www.indianstocksnews.com/2011/05/stock-analysis-paper-products-limited.html">mid cap stock to buy</a>.<br />
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<a href="http://www.indianstocksnews.com/2011/05/stock-analysis-paper-products-limited.html">Paper Products Limited</a> (PPL) is consumer packaging company with product offerings such as Flexible Packaging, Labeling Technologies, Specialized Cartons, Packaging Machines, Holographic Options, Gravure Cylinders, Polyethylene Films and Coated Materials. Offerings from company also includes decoration technologies that includes Shrink Sleeves, Heat Transfer Labels, Pressure Sensitive Labels, Metalized Paper and Wrap Around Labels. Products such that can act as inputs to finished packaging materials and may also be offered as stand-alone products that include gravure cylinders, high-barrier metalized films and co-extruded blown films.<br />
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Company has good set of clientele such as Britannia, Cadbury, Castrol, Coca-Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Unilever, ITC, Marico, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG and Wipro. Paper Products limited has a joint venture since long time with the global packaging major, Huhtamaki Oyj that owns nearly 60% of its equity. Huhtamaki Group is Finland-based top 10 consumer packaging multinationals in world.<br />
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<b>Growth Potential</b><br />
Growth of the company is completely dependent on growth of consumer goods industry. Economic growth and rising personal disposable income are growth drivers for the consumer goods sector. This would create a very good growth potential for the future of the packaging industry. Paper Products Limited is looking for growth through expansion of capacities and increasing it's productivity.<br />
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<b>Stock Valuation</b><br />
Paper Products Limited has recorded annual CAGR growth of ~9% steadily for past few years. Earnings per share (EPS) has been on growing path continuously. EPS was Rs3.40 for FY08, Rs5.96 for FY09, Rs7.67 for FY10.<br />
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At current stock price of Rs70, the stock trades at P/E ratio of 10.4 for trailing four quarters earnings. It's dividend yield at current stock price stands at 3.11% which is good. It is a steady business with good growth potential. It is a consumer industry related business that links it to FMCG sector which is considered as less volatile business vertical. <br />
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To conclude, Paper Products Limited is a steadily growing, relatively safe stock that can fetch good returns over the long period of time with lesser risk. Long term investors may buy stocks of Paper Products around Rs.60 for steady growth of their investment portfolio. While considering it for your portfolio, do not forget this is a mid cap stock, so allocate appropriate portion (not more than 5%) of your total investment corpus.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-160844207110113002011-04-18T08:23:00.001+05:302011-04-18T08:29:25.788+05:30Stock Report - IL&FS Transportation Networks<div dir="ltr" style="text-align: left;" trbidi="on">Here is stock report on another <a href="http://www.indianstocksnews.com/2011/04/mid-cap-stock-to-buy-il-transportation.html">mid cap stock to buy</a> that I felt could be a good mid cap stock choice for long term investment portfolio. <a href="http://www.indianstocksnews.com/2011/04/mid-cap-stock-to-buy-il-transportation.html">IL&FS Transportation Networks Ltd. (ITNL)</a> gives you an opportunity to ride on infrastructure growth story in India.<br />
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<a href="http://www.indianstocksnews.com/2011/04/mid-cap-stock-to-buy-il-transportation.html">IL&FS Transportation Networks Ltd. (ITNL)</a> is a surface transportation infrastructure company, and is one of the largest private sector BOT road operators in India. ITNL develops, operates, maintains and facilitates road transportation infrastructure projects. ITNL was incorporated in 2000 by IL&FS, an infrastructure development and finance company to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure.<br />
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<a href="http://il&fs%20transportation%20networks%20ltd.%20%28itnl%29/">ITNL</a> has order mix of 50% BOT and 50% annuity based project mix. 70% of their orders come from NHAI so they are not much dependent on the state highways or state contracts where one could see a lot of difficulties and lower margin because of the stiff competition by the local players.<br />
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With high concentration from Indian government on building road network infrastructure is one of the most important factor in Indian growth story. IL & FS Transportation is definitely going to be a big beneficiary of these road infrastructure projects. <br />
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According to the ITNL management, the good thing for ITNL is that it has strong order pipeline for execution till FY'14. And for this reason company is not bidding very aggressively by compromising on margins which some other players in industry are doing right now to have the orders booked in pipeline.<br />
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The management has indicated for existing projects that margins will not be compromised since there are sufficient arrangements built in the projects to accommodate for the increase in raw materials and other costs. <br />
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By FY 13-14, it is expected that many toll/annuity projects would be operational and after that size of balance sheet, interest costs, etc will not be an issue. And so the company is not in a hurry to participate in irrational competition to bag orders at lower margins. Some state governments like Karnataka, Madhya Pradesh are coming up well and company expects some BOT orders in CY'11 from them.<br />
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<b>Stock valuation</b><br />
<a href="http://il&fs%20transportation%20networks%20ltd.%20%28itnl%29/">IL & FS Transportation</a> has Rs 12000 crore of the projects under implementation. Out of these some of the road projects are operational.<br />
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As per their March 2010 annual financial results, they had Rs 845.48 crores sales turnover with net profit of Rs 324.73 crores. Their OPM% (operating profit margin) was at 76 and NPM% (net profit margin) at 38.41 which is very good for business. EPS was Rs 18.93.<br />
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Till Dec.2010 for 9 months, sales was Rs 855.68 crores with Net profit of Rs 215.09 crores. Their EPS stands at 11.07 for these 9 months. This is as I have seen on BSEINDIA.COM. Other analysts on TV have talked about numbers that I could not find. <br />
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Looks like ITNL would post annual EPS around Rs 15-16. With this expected EPS for FY11, at current stock price of Rs 237, the stock trades at PE ratio of ~16. This is reasonable but not cheap. If you look at the order book in pipeline for next 3-4 years and earnings visibility with good growth prospects due to bright future of infrastructure sector in India, one may buy stocks of ITNL in investment portfolio from 3 – 4 years perspectives. It can fetch you good investment returns Y-O-Y.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24271224328153404102011-04-01T06:47:00.002+05:302011-04-01T06:49:29.719+05:30Stock To Buy in 2011 - Texmaco Rail & Engineering Limited (TREL)<div dir="ltr" style="text-align: left;" trbidi="on"><a href="http://www.indianstocksnews.com/2011/04/mid-cap-stock-to-buy-in-2011-texmaco.html">Texmaco Rail & Engineering Limited (TREL)</a> is on strong growth path. It has very good potential of growing immensely in sector it operates in which makes it a <a href="http://www.indianstocksnews.com/2011/04/mid-cap-stock-to-buy-in-2011-texmaco.html">Mid Cap Stock To Buy in 2011</a>.<br />
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TREL is into core engineering business including Heavy Engineering that comprises of Rolling Stock for Railways, Hydro-Mechanical Equipment, Steel Structural, Agriculture Machinery and Steel Foundry. All these business segments are on high growth trajectory due to booming infrastructure needs in India. <br />
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Rolling Stock division of TREL manufactures wagons for Indian Railways and private players like CONCOR, NTPC. Railway intends to buy 18,000 wagons during FY 2011-12 , a jump of 24% compared to 14,500 in FY 2010-11.<br />
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Vision 2020 of Indian Railways proposes average investment of Rs 140,000 crore per annum over next 10 years for expansion of rail infrastructure. TREL is a market leader in this business and with its low-cost operations, massive infrastructure, and engineering skills will benefit at large from Railway's investments.<br />
TREL is forming Joint Ventures with global leaders to cater needs if railways. These include UGL, an Australian company for designing, manufacturing & supplying locomotive bogies, wagons and related components. <br />
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A JV will be formed with Bombardier if Bombardier gets tender from Indian Railway for setting up locomotive factory and electric loco components manufacturing facility. Siemens is the only other major MNC contender for this project. These projects could add ~ Rs 5,000 crore worth sales every year in foreseeable future.<br />
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Hydro Mechanical division manufactures equipment for mega Hydro Power, Irrigation & Flood Control projects. TREL is the only company supplying Hydro Mechanical gates for Hydel plants with capacity above 500 MW. India plans to spend over Rs 180,000 crore on power plants of this, 7% i.e. Rs 12,600 crore would be addressable business for TREL.<br />
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Steel Foundry of TREL is the only foundry in India qualified to export railway castings to North America. At present 70-75% of foundry output is used internally for wagon division but with modernization drive, this sales proportion is going to change. More products exported would fetch much higher price and its margin is expected to expand.<br />
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Agro Machinery division proposing to add new Agricultural Machines, Tractors and Reapers. It will benefit from growing Indian agricultural sector.<br />
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Company has taken up assembly and marketing of Infrared Recycling Pothole Repairing Machine for roads with Nu-Phalt U.K. First machine has been delivered to Delhi Municipal Corporation and company expects to receive substantial orders in FY 2012.<br />
Texmaco Rail & Engineering is cash rich company with almost Rs.10.69 per share in cash.<br />
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At current stock price of Rs. 70, the stock trades at 10.2 times FY 2011 expected EPS of Rs 6.80 and 7.7 times FY 2012 expected EPS of Rs 9.10. TREL is a definite Stock To Buy in 2011 for long term investment portfolio (2-3 yrs).</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-82215879590325794192011-03-25T20:10:00.003+05:302011-03-25T20:15:13.050+05:30Would you Buy Stocks of Koutons at 92% discount?<div dir="ltr" style="text-align: left;" trbidi="on">This is one apparel retailer I have been thinking about since I had seen their store first time in DT Mega Mall, Gurgaon. They were first as such retailer offering good looking fashion apparel clothes at 70% and 80% discounts to MRP. Now their stock in stock market is available at whopping 92% discount to it’s IPO price of Rs.415 (sounds to me like clearance item) and at even bigger discount of 97% to it’s high of nearly Rs.1100 after listing. <b>Would you like to Buy Stocks of Koutons Retail India with more than 90% discounts? It is available at current stock price of Rs.33 !</b><br />
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Had it been apparel, everyone would have rushed to but this is a stock I am talking about and you should do thorough stock analysis before you touch it looking at discount banner.<br />
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Recently Koutons Retail admitted that huge debt is hanging over the company’s head. They do not have money to get rid of it and that no option is left other than debt restructuring to recast debt. What does this indicates? A sick company with loads of debt on it’s balance sheet which it cannot pay back to lenders.<br />
Koutons Retail has total debt of Rs.660 crores, out of which Rs.460 crores will go in corporate debt restructuring (CDR) and remaining Rs 200 crore is non-CDR as per CNBC-TV18 reports.<br />
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SBI Capital is acting as their consultant for debt recasting. They have prepared a rough package for the company that includes debt repayment over a period of 9 years including a 2 year moratorium (Company will not have to pay any money to the bankers for first 2 years in terms of interest of principal).<br />
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Now, 9 whole years Koutons is going to repay the debt to its lenders. What does that mean for an investor? Company will use all its earnings in profits to pay back the loan and interest on it. What would it pay back to investors? Gha*ta? Stock at more than 90% discount? It will take years for the company to come back with good numbers along with repayment of debt. <br />
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Promoters of Koutons Retail own about 98 lakh shares, which is 32% of the company and remaining 96 lakh shares are pledged with the lenders. This is where integrity of promoters comes in question. They sold the big chunk in IPO and must have made money. Shown big numbers on back of debt, took the stock to more than double within a few months, made money and now unable to pay back the debt to lenders. What did promoters loose? A common man who would have invested in Koutons retails at Rs.1000 must be crying looking at that 97% discounted price of his “stock” of apparels! <br />
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I am sure clearing this debt and paying back to investors will take more than a decade for this company but promoters would enjoy their “share” thru big fat salaries, bonuses and company paid expenses. <br />
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I don’t see promoters acting efficiently enough to the benefit of shareholders and <b>I see no reason to Buy Stocks of Koutons retail</b> unless company shows some good real progress towards repayment of debt.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-50475224887182146472011-03-25T06:02:00.003+05:302011-03-25T06:08:24.715+05:30Buy Stocks of Praj Industries for price target Rs.102<div dir="ltr" style="text-align: left;" trbidi="on">Here is a <b>Buy Stocks</b> <b>report</b> on Praj Industries with target stock price of Rs.102. This recommendation is on the back of rising demand of ethanol processing refinery and related technologies. Check out this <a href="http://www.indianstocksnews.com/2011/03/stock-report-praj-industries-mid-cap.html">Stock Report on Praj Industries</a> published by KRChoksey, a stock broker.<br />
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<a href="http://www.indianstocksnews.com/2011/03/stock-report-praj-industries-mid-cap.html"><b>Praj Industries</b></a> is one of the few companies engaged in solutions research and development for ethanol, biodiesel, brewery plants and process equipment and systems. They have customers spread around the globe. Business line of company includes alcohol/fuel ethanol plants, biodiesel plants, brewery plants, environmental engineering, bionutrients, customized engineering and manufacturing, and agri services. The Company supplies a range of nutrients to the fermentation industry like distilleries and breweries, which is consumed in the course of production. <br />
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US senate has passed legislation for 15% ethanol mixing mandatory. This will create market and demand for additional bio refinery capacity of approx 4 billion gallons p.a. This creates opportunity of USD 6-8 billion for Praj Industries in US alone and company has started receiving enquiries too.<br />
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Order book trend for Praj Industries is quite encouraging thru Q3 FY11. The company received new orders of Rs.250 crores during Q3FY11. Order book for comapny, as on December 31, 2010 stands at Rs.700 crores. These order will be executed in next 1 year. <br />
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As stated above about business opportunity of USD 6-8 Billions, if Praj Industries gets even 7-10% of the estimated USD 6 billion, it would translate into fresh order of USD 400-600 million i.e. Rs.1890-2700 crores. Ever rising crude oil prices have made ethanol blending all the more attractive for OMCs to reduce the losses on subsidized fuels as ethanol price has been capped at Rs.27/litre. This will create additional demand for ethanol refineries from OMCs and sugar manufactures.<br />
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Fresh orders due to revival in global economies and rising crude oil will bring business back to Praj Industries. At current Stock Price of Rs.70, the stock trades at a PE of 13.7x FY12E EPS. The <b>Stock Report recommends to Buy Stocks of Praj Industries with 1 year price target of Rs.102</b> valuing the stock at 20x FY12E earnings. This is upside of 46%. Download detailed Stock Report <a href="http://www.box.net/shared/7lt587tbt2" target="_blank">PDF here</a>. <br />
</div>Unknownnoreply@blogger.com