STOCK WATCH
Rama Paper Mills Ltd (Rs.22.35) a relatively small company from the paper segment is reportedly faring well. It is into newsprint, writing/printing paper & duplex board for industrial purpose. Due to restructuring initiatives and the uptrend in the paper industry, it has turned around and has come out of the BIFR. For the nine months ending 31st Dec 2004, it has posted a NP of Rs.3.70 cr. on Net sales of Rs.52 cr. For FY05, it can report an EPS of Rs.10 which can shoot up to Rs.14 in FY06. A strong buy
Carnation Industries (Rs.41.85) is into manufacturing of grey iron and ductile iron castings. Its product is witnessing huge demand from auto components manufacturers and the international demand too is picking up especially for casting of pipe fittings required for water line, sewage and gases. For FY05, it is expected to report an EPS of Rs.8.5 Buy on sharp declines.
The Indian share market is booming and analysts forecast much higher targets for the Sensex in coming years. In such a scenario once can consider investing in Tata Investment Corporation (Rs.315), a listed investment company of the Tata group. Its investment portfolio is more than Rs.1200 cr. and around 65% is invested in equity. If we take its market value into consideration then this company is worth more than Rs.600. Fundamentally also it is expected to post an EPS of more than Rs.50. Moreover, it pays handsome dividends as well. Accumulate it at every dip.
Purely on fundamental basis, Alchemist Ltd (Rs.93.00) looks reasonably cheap and has the potential to rise 35-40% in the coming 12 months. It was earlier known as Toubro Info & Industries and has diversified interests in agri business, IT, pharma and steel. For the six months ending 31st Dec 2004, its sales grew by 47% to Rs.83 cr. but the NP was marginally down to Rs.6.60 cr. resulting in a half yearly EPS Rs.12.50. It’s a dividend paying company with huge reserves and a book value at Rs.126.
Sponge iron is expected to witness huge demand in coming quarters boosting the prospects of Monnet Ispat (Rs.203.55) which is still trading reasonably cheap. It is aggressively increasing its capacity and has ambitious plans to become a fully integrated player. For FY05, it may report an EPS of more than Rs.35 which can increase to Rs.45 in FY06. Accumulate it at declines with a price target of Rs.280 in the next 12 month.
Carnation Industries (Rs.41.85) is into manufacturing of grey iron and ductile iron castings. Its product is witnessing huge demand from auto components manufacturers and the international demand too is picking up especially for casting of pipe fittings required for water line, sewage and gases. For FY05, it is expected to report an EPS of Rs.8.5 Buy on sharp declines.
The Indian share market is booming and analysts forecast much higher targets for the Sensex in coming years. In such a scenario once can consider investing in Tata Investment Corporation (Rs.315), a listed investment company of the Tata group. Its investment portfolio is more than Rs.1200 cr. and around 65% is invested in equity. If we take its market value into consideration then this company is worth more than Rs.600. Fundamentally also it is expected to post an EPS of more than Rs.50. Moreover, it pays handsome dividends as well. Accumulate it at every dip.
Purely on fundamental basis, Alchemist Ltd (Rs.93.00) looks reasonably cheap and has the potential to rise 35-40% in the coming 12 months. It was earlier known as Toubro Info & Industries and has diversified interests in agri business, IT, pharma and steel. For the six months ending 31st Dec 2004, its sales grew by 47% to Rs.83 cr. but the NP was marginally down to Rs.6.60 cr. resulting in a half yearly EPS Rs.12.50. It’s a dividend paying company with huge reserves and a book value at Rs.126.
Sponge iron is expected to witness huge demand in coming quarters boosting the prospects of Monnet Ispat (Rs.203.55) which is still trading reasonably cheap. It is aggressively increasing its capacity and has ambitious plans to become a fully integrated player. For FY05, it may report an EPS of more than Rs.35 which can increase to Rs.45 in FY06. Accumulate it at declines with a price target of Rs.280 in the next 12 month.
GNFC is India largest producer of Formic Acid, Acetic Acid and Methanol. Further, it is the only manufacturer in the country to deploy the Methanol route for manufacturing Glaciel Acetic Acid. It has long term expansion plans to double its capacity to become globally competitive. For FY05, it is expected to post an EPS of Rs.12 and at CMP, the dividend yield works out to around 5%. A good bet.
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