STOCK WATCH
Venus Remedies Ltd (Code: 526953) Rs81.65: is a Chandigarh based pharmaceutical company engaged in manufacture of Super Specialty formulations in Oncology & Cephalosporin segments. Within 4 months, it has filed 4 patent applications to the Indian patent office and another 10 are in the pipeline. The company is very aggressive in launching innovative, new generation, high-end, specialty products in the anti-cancers and Cephalosporin segments. It has successfully launched 10 new formulations in these segments during 2004-05 and is planning nearly a dozen launches during this fiscal. It has ambitious growth plans for which it is setting up an USFDA accredited manufacturing facility at Baddi. It appears to be a multibagger in the long run.
Recently, the second plant of Pitti Lamination (Code: 513519) Rs71.85 has gone on stream with commercial production taking the total capacity to 10,000 MTA. With a healthy order book position and expectation of large export orders the company is planning to further enhance the capacity by another 10,000 MTA. For FY06 it can report an EPS of Rs15. A strong buy for the medium to long term.
Recently, the second plant of Pitti Lamination (Code: 513519) Rs71.85 has gone on stream with commercial production taking the total capacity to 10,000 MTA. With a healthy order book position and expectation of large export orders the company is planning to further enhance the capacity by another 10,000 MTA. For FY06 it can report an EPS of Rs15. A strong buy for the medium to long term.
Kilburn Engineering (Code: 522101) Rs.48.25 operates in areas of process design, engineering, manufacture installation and commissioning of turnkey plants and systems catering to industries such as petrochemicals, chemical fertilisers, refineries, oil and gas and food processing. It came out with very impressive numbers for 31 March 2005 quarter. Its revenue grew by 21% to Rs14.50 cr. and reported a NP of Rs2.07 cr. against a loss of Rs8.30 cr. last year. For FY05 ending 30 Sept. 2005, it can report an EPS of Rs12. It is expected to clear its accumulated loss in 2 years time. Moreover, it’s planning to relocate its factory in Bhandup and sell the land.. Its share price can easily double in 15 months.
Those who believe in the Steel story should buy KIC Metaliks (Code: 513693) Rs75.05. It has set up 1,44,000 TPA captive coke oven plant, which commenced production last month. Secondly, it’s also setting up a hot stove and a 4 MW captive power plant. With these developments, its input cost will come down substantially. It now plans to put 1,50,000 TPA steel billet plant and 1,00,00 TPA sponge iron plant besides increasing its pig iron capacity to 1,50,000 tonnes. To fund this expansion, the company is obtaining term loans and may raise capital from the capital market, which will dilute its equity. But still it is expected to post an EPS of Rs.11 and Rs.18 for FY05 & FY06 respectively. Buy at every decline.
Bihar Caustic (Code: 500057) Rs.53.65 enjoys the highest operating margins among it peers -even better than Gujarat Alkalies and Chemfab Alkali. Recently, it came out of the T2T segment on the BSE and is expected to declare 20% dividend along with its March numbers on 26th April 2005. Whether it provides for any extraordinary expense this quarter is to be watched carefully. Otherwise, it is expected to post an EPS of Rs11 for FY05. Grab it fast as the scrip may shoot up sharply once the numbers are out!
Sathavana Ispat Ltd (Code: 526093) Rs.42.90 has increased its pig iron capacity from 1,20,000 to 2,10,000 tonnes in Dec.’04 only and has set up 8.4 MW co-generation power plant, which will impact its March numbers to a certain extent. Secondly, its coke oven facility of 1,50,000 TPA is working at full capacity. Moreover, the company has already arranged for the term loan for its greenfield project for the manufacture of 3,00,000 MTPA of Metallurgical Coke with co-generation of power of 30MW. With an expected EPS of Rs11 and an ambitious growth plan without any equity dilution, its share price can double in 12 months. Buy and hold it with patience.
Those who believe in the Steel story should buy KIC Metaliks (Code: 513693) Rs75.05. It has set up 1,44,000 TPA captive coke oven plant, which commenced production last month. Secondly, it’s also setting up a hot stove and a 4 MW captive power plant. With these developments, its input cost will come down substantially. It now plans to put 1,50,000 TPA steel billet plant and 1,00,00 TPA sponge iron plant besides increasing its pig iron capacity to 1,50,000 tonnes. To fund this expansion, the company is obtaining term loans and may raise capital from the capital market, which will dilute its equity. But still it is expected to post an EPS of Rs.11 and Rs.18 for FY05 & FY06 respectively. Buy at every decline.
Bihar Caustic (Code: 500057) Rs.53.65 enjoys the highest operating margins among it peers -even better than Gujarat Alkalies and Chemfab Alkali. Recently, it came out of the T2T segment on the BSE and is expected to declare 20% dividend along with its March numbers on 26th April 2005. Whether it provides for any extraordinary expense this quarter is to be watched carefully. Otherwise, it is expected to post an EPS of Rs11 for FY05. Grab it fast as the scrip may shoot up sharply once the numbers are out!
Sathavana Ispat Ltd (Code: 526093) Rs.42.90 has increased its pig iron capacity from 1,20,000 to 2,10,000 tonnes in Dec.’04 only and has set up 8.4 MW co-generation power plant, which will impact its March numbers to a certain extent. Secondly, its coke oven facility of 1,50,000 TPA is working at full capacity. Moreover, the company has already arranged for the term loan for its greenfield project for the manufacture of 3,00,000 MTPA of Metallurgical Coke with co-generation of power of 30MW. With an expected EPS of Rs11 and an ambitious growth plan without any equity dilution, its share price can double in 12 months. Buy and hold it with patience.
No comments:
Post a Comment