STOCK WATCH

Varun Shipping (Code No: 500465)(Rs.40.80) continues to post encouraging numbers beating all analyst estimates. For the quarter ending 30 June 2005, it total revenues grew by nearly 50% to Rs.117 cr. and bottomline increased by 270% to Rs.26.80 cr. leading to a quarterly EPS of Rs.2.40. Importantly, its OPM was at a record high of 55% compared to 43% which is the average for the whole FY05. Scrip has the potential to give 50% return in a year or so. Keep accumulating at declines.

The effect of higher caustic prices can be clearly seen in Chemfab Alkali (Code No: 506894) (Rs.217.40) latest results. The company came out with stunning numbers for the June quarter whereas its sales spurted by 42% only to Rs.23.20 cr., the NP zoomed 260% to Rs.6 cr. posting an EPS of Rs.17.50 for the June quarter. Consider this in the light that its full FY05 NP stands at Rs.9 cr. It also declared 25% interim dividend and proposes a stock split of 2:1. For FY06, it can post an EPS of more than Rs.45. Grab it before it shoots up!

Due to the increase in business travellers and the booming tourism, city hotels all over India are witnessing not only higher occupancy rate but also higher room rates. Hence Sayaji Hotels Ltd. (Code No: 523710) (Rs.35.55), which operates hotels in Boroda and Indore, is reporting better numbers with every passing qtr. Its OPM has shown a substantial increase from 15% last June to around 40% currently. To cash on this opportunity, the company has ambitious expansion plans of opening hotels in other cities as well. For FY06, it may report an EPS of Rs.6. A very good buy at current levels.

Haldyn Glass Gujarat (Code No: 515147) (Rs.53) leading manufacturer of clear glass containers. Recently, it came out with stunning numbers for March 2005 quarter. It reported an operating profit of Rs.5 cr. on Sales of Rs.14.20 cr., which means an OPM of 35%, which is quite good. Moreover for the first time, the company has declared dividend. For the full year FY05 its turnover increased by nearly 25% to Rs.50 cr. but its NP jumped 300% to Rs.4.80 cr. registering an EPS of Rs.9. For FY06, it can easily report an EPS of Rs.12. A strong buy.

Share price of Can Fin Homes Ltd (Code No: 511196) (Rs.46) was not moving up since its promoters like Canara Bank, HDFC and UTI were selling their stake in the open market. They have reduced their total stake from 60% last year to the current 46%. But it is a good company with significant presence in South India and pays consitent dividend as well. For FY05, its total revenue was flat at Rs.127 cr. and the NP grew marginally to Rs.21 cr. posting an EPS of Rs.10 on its current equity of Rs.20.50 cr. and paid Rs.2.50 as dividend for FY05. Besides, it has a book value of Rs.74. Recently; it has diversified into non-housing finance as well. This scrip is bound to get re-rated sooner or later and investors can expect 50% return in 15 months or so.

After witnessing a smart run up, Sanjivani Parental (Code No: 531569) (Rs.87.15) is consolidating currently. Investors can buy even at current levels as the share price is expected to hit a century soon. Lot of positive developments are taking place in the company and it is expected to make some positive announcement in the near future. Sanjivani’s own drug Cobaz and Trenaxa are doing well in the domestic market. Besides it has a healthy order in hand for contract manufacturing. Though the promoter stake is low, it is expected to report an EPS of more than Rs.12 for FY06. Grab it before it shoots up.