MUHURAT PICKS
Winsome Textiles (Code No:514470) (Rs.21) All textile companies are busy expanding capacities to cash in on the opportunities thrown open by the removal of quota system, which in turn will to lead to higher demand and consumption of yarns. Winsome Textiles, a leading manufacturer and exporter of 100% cotton yarn will grow substantially in future due to its ongoing expansion and modernisation plans. Since it is a capital-intensive industry, the company has huge debt but very tiny equity on which it is paying uninterrupted dividend for the past 10 years. With sales of above Rs.125 cr., its current market cap is merely Rs.12 cr. This scrip can be a multibagger as the share price has the potential to rise 4~5 times in 2 years or so.
Sanjivani Paranteral (Code No: 531569) (Rs.50.55) Like BPO, contract manufacturing is gaining importance rapidly with most of the big pharma companies finding it better and economical. Sanjivani Parenteral is basically a contract manufacturing company specialising in injectibles for the institutional and hospital segments and its key clientele include Ranbaxy, Zydus Cadila, Alkem, Macleods, IPCA Labs, Intas, Glenmark, Medley and Shreyas Life Sciences among others. Its manufacturing facility which is WHO GMP certified is located at Taloja in Maharashtra and it can manufacture high grade antibiotics and life saving injectibles used in various pre and post operative infections. This company is poised for rapid growth in future and can be a multibagger if held for more than 2 years.
Sanjivani Paranteral (Code No: 531569) (Rs.50.55) Like BPO, contract manufacturing is gaining importance rapidly with most of the big pharma companies finding it better and economical. Sanjivani Parenteral is basically a contract manufacturing company specialising in injectibles for the institutional and hospital segments and its key clientele include Ranbaxy, Zydus Cadila, Alkem, Macleods, IPCA Labs, Intas, Glenmark, Medley and Shreyas Life Sciences among others. Its manufacturing facility which is WHO GMP certified is located at Taloja in Maharashtra and it can manufacture high grade antibiotics and life saving injectibles used in various pre and post operative infections. This company is poised for rapid growth in future and can be a multibagger if held for more than 2 years.
Indo Asian Fusegear (India) Ltd. (Code No:532658) (Rs.110) This company is among the top three players in the domestic compact fluorescent lamp (CFL) market besides being a leading manufacturer of electrical safety devices such as miniature circuit breakers, residual current circuit breakers, HRC fuses, transformers, switchgears wires & wiring accessories, industrial plugs & sockets, contactors relay, distribution boards etc. It has entered into a strategic alliance with Lovato Electric of Italy to market a wide range of industrial electrical products in India. For future growth, the company has entered into a joint venture with Nordex Lighting Spa of Italy to manufacture specialized outdoor lighting equipment at its Haridwar plant in Uttranchal. Recently, it announced to provide technological support and manufacture energy saving lighting products and electrical protection devices for servicing the fast growing Saudi and Middle East markets. With such ambitious growth plans, its share price can double by next Diwali.
Aarti Drugs (Code No: 524348) (Rs.110) The future outlook of the pharma industry is very promising as a number of drugs are expected to go off-patent in the near future Indian pharma companies are very well -prepared for this and Aarti Drugs commands a leadership position with over 70 per cent market share for more than 15 principal products including secnidazole, ornidazole, metronidazole etc. It is the sole supplier of Tinidazole to Pfizer Inc worldwide and commands 85 per cent market share in the world. With 30 molecules already in its basket, the company is planning to commercialize another 10 molecules and intends to file at least 6 to 8 drug master files (DMF) in the near future. Few months back, it raised UDS12.75 million through the FCCB route to be converted into equity @ Rs.170 per share. This scrip also has the potential to double in 15~18 months.
Aarti Drugs (Code No: 524348) (Rs.110) The future outlook of the pharma industry is very promising as a number of drugs are expected to go off-patent in the near future Indian pharma companies are very well -prepared for this and Aarti Drugs commands a leadership position with over 70 per cent market share for more than 15 principal products including secnidazole, ornidazole, metronidazole etc. It is the sole supplier of Tinidazole to Pfizer Inc worldwide and commands 85 per cent market share in the world. With 30 molecules already in its basket, the company is planning to commercialize another 10 molecules and intends to file at least 6 to 8 drug master files (DMF) in the near future. Few months back, it raised UDS12.75 million through the FCCB route to be converted into equity @ Rs.170 per share. This scrip also has the potential to double in 15~18 months.
Monnet Ispat (Code No: 513446) (Rs.154) Very few are aware that Monnet Ispat is actually positioning itself as more as a mining and power player rather than a steel player in the long run. The strategy of the company is to lay more thrust on exploiting the values in mining and power division and to create an optimal value addition in sponge iron and steel. Having met its complete requirements of coal from captive mines, Monnet is actively working on the acquisition of iron ore mines. Recently, it also announced its plan of acquiring a manganese ore mine in Africa. After setting up its Raipur plant, the company has ambitious expansion plans for Raigarh including setting up a steel plant and ferro alloys project, increasing its sponge iron capacity by 5,00,000 TPA, putting up an 250 MW power plant etc. Earlier this year, the company raised around USD60 million through FCCB route to be converted into equity @ Rs.237 per share. After becoming a fully integrated player, Monnet may attract better valuation and its share price can double in 18 months or so.
Simbhaoli Sugar (Code No: 507446) (Rs.74) Sugar companies are extremely happy with the government’s bold but industry friendly decision to allow import of raw sugar, specially at a time when sugar prices are ruling high in the domestic market. Now they are waiting for the government to approve ethanol blending with petrol, which will be done sooner than later. Simbhaoli Sugar, one of the largest integrated sugar manufacturers, which recently completed its right issue, is aggressively expanding capacities. Besides increasing the capacity of the Simbhaoli unit to 9500 TCD and Chilwara unit to 8000 TCD, it is setting up a new sugar plant with 4500 TCD capacity at Ghaziabad. Apart from setting up a new 60 KLPD ethanol plant at Chilwara, the company is expanding its ethanol capacity by 30 KLPD and distillery capacity to 120 KLPD at Simbhaoli unit. It also intends to setup a co-gen facility of about 26 MW and 24 MW at both its plant. Share price can triple if held for more than 2 yrs.
Simbhaoli Sugar (Code No: 507446) (Rs.74) Sugar companies are extremely happy with the government’s bold but industry friendly decision to allow import of raw sugar, specially at a time when sugar prices are ruling high in the domestic market. Now they are waiting for the government to approve ethanol blending with petrol, which will be done sooner than later. Simbhaoli Sugar, one of the largest integrated sugar manufacturers, which recently completed its right issue, is aggressively expanding capacities. Besides increasing the capacity of the Simbhaoli unit to 9500 TCD and Chilwara unit to 8000 TCD, it is setting up a new sugar plant with 4500 TCD capacity at Ghaziabad. Apart from setting up a new 60 KLPD ethanol plant at Chilwara, the company is expanding its ethanol capacity by 30 KLPD and distillery capacity to 120 KLPD at Simbhaoli unit. It also intends to setup a co-gen facility of about 26 MW and 24 MW at both its plant. Share price can triple if held for more than 2 yrs.
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