STOCK WATCH
Interestingly, when most mid-cap stocks have corrected 30~50% in the recent carnage, Dhanuka Pesticides (Code No: 507717) (Rs.112.75) is holding strong and is trading near its 52 week high of Rs.117. The company came out with quite good numbers for the Sept’05 quarter. Its Sales remained flat at Rs.27 cr. but the NP jumped 70% to Rs.2 cr. due to better operating efficiency. With a dividend yield of more than 4% and expected EPS of Rs.18 for FY06 this share is a value buy at the current level.
Recently, GIC Housing Finance (Code No: 511676) (Rs.45.80) has once again come out with stunning numbers for Sept’05 quarter. Its gross revenue increased by 25% to Rs.39 cr. whereas its NP doubled to Rs.8.10 cr. registering an EPS of Rs.3 for the qtr. Due to the rising standard of living in B group cities as well as the increased tax benefit on housing loans as per finance bill 2005, this sector is estimated to grow substantially in future. For FY06, it can report total revenue to Rs.150 cr. and NP of Rs.30 cr. i.e. an EPS of Rs.11 on its current equity of Rs.27 cr. Although it may dilute its equity in the near future, with a dividend yield of around 4% it’s a good long-term bet.
In India there are only 2 manufacturers of Titanium Dioxide and Kilburn Chemicals (Code No: 524699) (Rs.52) is one of them. This scrip has also corrected sharply to the current level from its recent high of Rs.74 inspite of strong Sept’05 numbers. Sales increased by 15% to Rs.14 cr. whereas its NP nearly tripled to Rs.2.30 cr. due to lower interest cost and low provision for tax. Its 6 month NP is almost equal to the last full years profit. Besides, this Sept the company commisioned a 1.25 MW wind turbine generator. For FY06, it can post sales of Rs.65 cr. and NP of Rs.6.25 cr. which leads to an EPS of Rs.8.50. The dividend yield works to 4%. A solid bet for medium to long-term.
Recently, GIC Housing Finance (Code No: 511676) (Rs.45.80) has once again come out with stunning numbers for Sept’05 quarter. Its gross revenue increased by 25% to Rs.39 cr. whereas its NP doubled to Rs.8.10 cr. registering an EPS of Rs.3 for the qtr. Due to the rising standard of living in B group cities as well as the increased tax benefit on housing loans as per finance bill 2005, this sector is estimated to grow substantially in future. For FY06, it can report total revenue to Rs.150 cr. and NP of Rs.30 cr. i.e. an EPS of Rs.11 on its current equity of Rs.27 cr. Although it may dilute its equity in the near future, with a dividend yield of around 4% it’s a good long-term bet.
In India there are only 2 manufacturers of Titanium Dioxide and Kilburn Chemicals (Code No: 524699) (Rs.52) is one of them. This scrip has also corrected sharply to the current level from its recent high of Rs.74 inspite of strong Sept’05 numbers. Sales increased by 15% to Rs.14 cr. whereas its NP nearly tripled to Rs.2.30 cr. due to lower interest cost and low provision for tax. Its 6 month NP is almost equal to the last full years profit. Besides, this Sept the company commisioned a 1.25 MW wind turbine generator. For FY06, it can post sales of Rs.65 cr. and NP of Rs.6.25 cr. which leads to an EPS of Rs.8.50. The dividend yield works to 4%. A solid bet for medium to long-term.
Due to cut throat competition in consumer durables and electronic items, the market doesn’t give rich valuation to this industry. Moreover, due to its promoter’s reputation Videocon Appliances (Code No: 500945) (Rs.26.35) is one of the cheapest scrip available in today’s market. It ended FY05 quite well with very impressive numbers for Sept’05 qtr. Sales grew marginally to Rs.290 cr. but the NP increased by whopping 82% due to lower interest cost and depreciation. For full FY05 ending 30th Sept 2005, it reported an EPS of Rs.9.50 on its small equity of Rs.33 cr. With a book value of Rs.80 and market cap of merely Rs.80 cr., this company is available for a song and is bound to get re-rated sooner than later.
Everyone knows that if the Indian economy is to grow, it has to make its infrastructure much stronger. Considering this fact, the construction and engineering sector is poised for a big leap in coming years. As such, Petron Engineering (Code No: 530381) (Rs.199.40) seems to be reasonably a good bet at the current level. For Sept’05 qtr its turnover remained flat at Rs.70 cr. but its PBT was a fantastic of 66% at Rs.4.30 cr. due to better operating margins. After higher tax provisioning of Rs.1.25 cr. its NP stood at Rs.3 cr. leading to an EPS of Rs.4. For FY06, it can report an EPS of Rs.18~20. After correcting 30% from its recent high of Rs.280, this scrip is trading fairly cheap even if we discount its future equity dilution.
Everyone knows that if the Indian economy is to grow, it has to make its infrastructure much stronger. Considering this fact, the construction and engineering sector is poised for a big leap in coming years. As such, Petron Engineering (Code No: 530381) (Rs.199.40) seems to be reasonably a good bet at the current level. For Sept’05 qtr its turnover remained flat at Rs.70 cr. but its PBT was a fantastic of 66% at Rs.4.30 cr. due to better operating margins. After higher tax provisioning of Rs.1.25 cr. its NP stood at Rs.3 cr. leading to an EPS of Rs.4. For FY06, it can report an EPS of Rs.18~20. After correcting 30% from its recent high of Rs.280, this scrip is trading fairly cheap even if we discount its future equity dilution.
Fertilizer and petrochemicals sector is doing well and GNFC (Code No: 500670) (Rs.90.20) is no exception. Its only because of its bright future prospects that the scrip hasn’t corrected sharply in this onslaught. It has once again come out with excellent numbers for Sept’05 qtr. Sales increased by 16% to Rs.560 cr. whereas its NP jumped 40% to Rs.72 cr. due to higher price realisation and better operating efficiency. For FY06, it may report a topline of Rs.2100 cr. and bottomline of Rs.260~280 cr., which works out to an EPS of Rs.18~20 on its equity of Rs.146.50 cr. With an estimated book value of Rs.75 and dividend yield of more than 4% it’s a value buy for the medium term.
No comments:
Post a Comment