STOCK WATCH
A few months back, Sujana Universal (Code No: 517224) (Rs.25.05) raised US$ 16 million via the GDR route by allotting 2 cr. equity shares @ Rs.35 per share. It has further decided to issue 40 lakh equity shares to promoters which will expand the equity to Rs.45.40 cr. The company basically deals in all types of bearings, light engineering components, automobile components, castings and domestic appliances. Lately, it also commissioned facilities for the manufacture of telecom and transmission towers. For FY06, it can earn a NP of Rs.25 cr. i.e. an EPS of Rs.5.5 which can rise to Rs.35 cr. in FY07. Investors can expect a price target of Rs.40 in the medium term and Rs.75 in 2 years time.
Looking off of caustic soda prices is good for paper manufacturers. Rama Paper (Code No: 500357) (Rs.28.00) which hit a high of nearly Rs.60 is currently quoting at Rs.28. Due to buoyancy in the paper industry, the company is going for capacity expansion by adding 18,000 TPA of production facilities for high value paper and intends to set up a 6 MW captive power plant. Besides, it is also planning to foray into the business of power generation and deal in sugar and other allied products. Recently, it made a preferential allotment of 25 lakh shares to promoters @ Rs.35. Moreover, higher tax provision by the company confirms its prosperous future ahead. It is one of the cheapest available paper scrip, which can double in 9~12 months. Just grab it!
Although not a niche player in the pharma sector, Syncom Formulations (Code No: 524470) (Rs.90.00) can be bought for handsome gains due to its cheap valuation. It has more than 250 products to offer in ethical, generics, OTC and herbal range which it plans to take to 500 products in the next 2~3 years. Having successfully established its footprint in more than 15 countries of Africa, Latin America, C.I.S. and Asia, the company is putting more thrust on exports by tapping new countries. Due to efficient working capital management and healthy cash position, the company has pre-paid its entire loan and become a debt free company last fiscal. It also has some plan to diversify into power, construction, coal business and investment. For FY06, it may post an EPS of Rs.16 and its share price can appreciate by 50% in 6~9 months,
Mid caps and small caps are again on fire with hundreds of scrips hitting circuit filters. In such a scenario Videocon Appliances (Code No: 500945) (Rs.28.60), which hit a high of Rs.38 is bound to rise in coming days. Ashok Parmar has already exited the scrip so no selling pressure is expected. In spite of having a whopping Rs.1200 cr. in sales, its market cap is merely Rs.100 cr. Having reserves of more than Rs.360 cr. on its equity capital of Rs.33 cr., its book value stands at around Rs.80. It’s been a consistent performer even in such a competitive market and is a regular dividend paying company. Of late, the whole Videocon group has been re-rated due to its huge foray into oil exploration business and capital raising efficiency. The share price of this scrip is estimated to cross Rs.75 in 12 months.
Chemical scrips are once again being fancied in the market with a whole bunch of companies on fire in this sector. Gujarat Alkalies & Chemicals (Code No: 530001) (Rs.137.65) being the largest producer of caustic soda, is still trading reasonably cheap with a market cap of around Rs.1000 cr. In spite of some correction in caustic soda prices, the company is expected to report an NP of around Rs.200 cr. i.e. an EPS of Rs.27 on its current equity of Rs.73.50 cr. Interestingly, it has become the first Indian entity to get carbon trading credit, which it plans to sell in the international market for a sum worth Rs.60-70 cr. Scrip has the potential to cross Rs.200 mark in the medium term. Accumulate at sharp declines.
Few days back, Hazoor Media (Code No: 532467) (Rs.13.50) came out with its November quarter numbers which are quite satisfactory. Its total revenue grew by 12% to Rs.4.70 cr. and NP increased by 10% to Rs.1.27 cr. thereby reporting a quarterly EPS of Rs.1.45. It is basically into production of media content in diversified software categories viz. entertainment, film and film based programmes, sitcoms, news and current affairs, game shows catering to the demands of media companies in the international market. It also provides infrastructure services like shooting locations, floors, studios, post production processing facilities, filming equipments and qualified trained manpower to film & entertainment industry. With 52 week high of Rs.21.50, a book value around Rs.22 and with an expected EPS of Rs.5, this dividend paying company deserves much better valuation.
Looking off of caustic soda prices is good for paper manufacturers. Rama Paper (Code No: 500357) (Rs.28.00) which hit a high of nearly Rs.60 is currently quoting at Rs.28. Due to buoyancy in the paper industry, the company is going for capacity expansion by adding 18,000 TPA of production facilities for high value paper and intends to set up a 6 MW captive power plant. Besides, it is also planning to foray into the business of power generation and deal in sugar and other allied products. Recently, it made a preferential allotment of 25 lakh shares to promoters @ Rs.35. Moreover, higher tax provision by the company confirms its prosperous future ahead. It is one of the cheapest available paper scrip, which can double in 9~12 months. Just grab it!
Although not a niche player in the pharma sector, Syncom Formulations (Code No: 524470) (Rs.90.00) can be bought for handsome gains due to its cheap valuation. It has more than 250 products to offer in ethical, generics, OTC and herbal range which it plans to take to 500 products in the next 2~3 years. Having successfully established its footprint in more than 15 countries of Africa, Latin America, C.I.S. and Asia, the company is putting more thrust on exports by tapping new countries. Due to efficient working capital management and healthy cash position, the company has pre-paid its entire loan and become a debt free company last fiscal. It also has some plan to diversify into power, construction, coal business and investment. For FY06, it may post an EPS of Rs.16 and its share price can appreciate by 50% in 6~9 months,
Mid caps and small caps are again on fire with hundreds of scrips hitting circuit filters. In such a scenario Videocon Appliances (Code No: 500945) (Rs.28.60), which hit a high of Rs.38 is bound to rise in coming days. Ashok Parmar has already exited the scrip so no selling pressure is expected. In spite of having a whopping Rs.1200 cr. in sales, its market cap is merely Rs.100 cr. Having reserves of more than Rs.360 cr. on its equity capital of Rs.33 cr., its book value stands at around Rs.80. It’s been a consistent performer even in such a competitive market and is a regular dividend paying company. Of late, the whole Videocon group has been re-rated due to its huge foray into oil exploration business and capital raising efficiency. The share price of this scrip is estimated to cross Rs.75 in 12 months.
Chemical scrips are once again being fancied in the market with a whole bunch of companies on fire in this sector. Gujarat Alkalies & Chemicals (Code No: 530001) (Rs.137.65) being the largest producer of caustic soda, is still trading reasonably cheap with a market cap of around Rs.1000 cr. In spite of some correction in caustic soda prices, the company is expected to report an NP of around Rs.200 cr. i.e. an EPS of Rs.27 on its current equity of Rs.73.50 cr. Interestingly, it has become the first Indian entity to get carbon trading credit, which it plans to sell in the international market for a sum worth Rs.60-70 cr. Scrip has the potential to cross Rs.200 mark in the medium term. Accumulate at sharp declines.
Few days back, Hazoor Media (Code No: 532467) (Rs.13.50) came out with its November quarter numbers which are quite satisfactory. Its total revenue grew by 12% to Rs.4.70 cr. and NP increased by 10% to Rs.1.27 cr. thereby reporting a quarterly EPS of Rs.1.45. It is basically into production of media content in diversified software categories viz. entertainment, film and film based programmes, sitcoms, news and current affairs, game shows catering to the demands of media companies in the international market. It also provides infrastructure services like shooting locations, floors, studios, post production processing facilities, filming equipments and qualified trained manpower to film & entertainment industry. With 52 week high of Rs.21.50, a book value around Rs.22 and with an expected EPS of Rs.5, this dividend paying company deserves much better valuation.
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