STOCK WATCH
Associated Profiles & Aluminium Ltd. (Code: 531979) (Rs.33.15) basically manufactures wire rods, aluminium grills, sections, railing etc. Last fiscal also began mining activity in the Mahadevia district of Gujarat. In future, it intends to explore the possibility of Wind Power Generation in Dhulia area in Maharashtra under its existing unit viz. Hind Aluminium. For FY06, its sales increased by 25% to Rs.164 cr. but its net profit doubled to Rs.4.40 cr., which works out to an EPS of Rs.9 on its equity of Rs.5 cr. and it announced 12% dividend for FY06. With a dividend yield of around 4% at CMP and a book value of approx Rs.40, this scrip is trading fairly cheap at a P/E of just 3 times. Its share price can appreciate 50% in 6-9 months if the market sentiment turns bullish.
Laffans Petro Ltd. (Code: 524522) (Rs.22.80) manufactures ethylene oxide (EO) derivatives such as Ethoxylates, Glycol Ethers, Acetates, Triethonal-amine and Brake fluids. In fact, it is the only Butyl Glycol and Methyl Glycol manufacturer in India along with their respective acetates. Besides it also produces 'THEIC', an unique surfactant for the wire enameling industry with micron size of less than 100, which is produced by only 3- 4 manufacturers worldwide. It maintains its own fleet of specially fabricated EO tankers and is currently the largest merchant consumer of pure ethylene oxide in the country. Moreover, the company has nearly completed its expansion of Glycol Ethers capacity from 15,000 to 30,000 TPA. For FY06, it reported an EPS of Rs.6 and may report an EPS of Rs.7 for FY07. However, lack of dividend is one of the reasons for its low discounting by marketmen.
Ecoboard Industries Ltd. (Code: 523732) (Rs.11) is in the forefront of treating industrial effluent with technical assistance from Sulzer Chemtech Ltd., Switzerland. It is the largest turnkey supplier of Anaerobic Wastewater treatment plants in the country for primary treatment of distillery effluent and is actively considering setting up effluent treatment facilities for pulp & paper, dairies, food products, sugar, pharmaceuticals etc. The company’s other product ‘Ecoboard' is a 100% wood free tough alternative to conventional particle boards, plywood and other panel products. It made a strong turnaround in FY06 by reporting sales and net profit of Rs.48 cr. and Rs.3.35 cr. respectively. It may end FY07 with a turnover of Rs.55 cr. and PAT of Rs.5 cr. i.e. EPS of Rs.3 on equity of Rs.16.30 cr. Only aggressive investors are advised to buy for handsome gain.
With Infosys reporting better than expected numbers, tech sector is once again in action. In such a scenario Aftek Infosys Ltd. (Code: 530707) (Rs.55.55) can see a sharp run before it declares its results. Purely on a fundamental basis, it is among the cheapest IT scrips available on the bourses. For the full year ending 30th June’06, it can report total revenue of Rs.260 cr. and PAT of Rs.80 cr., which works out to an EPS of Rs.9 on its current equity of Rs.17 cr. In future for better efficiency and integrity, the company is planning to merge its group company Elven and V-Soft with itself, exit from its European search engine Seekport and list its home automation unit Digihome on Indian bourses. Although the management doesn’t have a clean track record, still this scrip seems to be a value buy and can be bought for decent gains in the next 6-9 months.
Ramsarup Industries Ltd. (Code: 532690) (Rs.84.75) is the second largest producer of steel wire after Tata Steel. It has an installed capacity of 1,37,000 MT of steel wire and 72,000 MT of galvanized wire with 87,000 MT capacity of TMT bars. To de-risk the company from sectoral changes and to broaden the core business, it has decided to diversify into the business of laying power transmission lines and towers and has already bagged Rs.50 cr. order with another Rs.35 cr. order in the pipeline. Moreover, it has finalised plans to set up a bio-root power generation plant in Gujarat spread across 300 acres of land. For FY06, its turnover grew by nearly 20% to Rs.1018 cr. but its net profit more than doubled to Rs.28 cr. leading to an EPS of Rs.16 on its equity of Rs.17.50 cr. With an expected EPS of Rs.20 for FY07, it’s a strong buy at the current price level.
Laffans Petro Ltd. (Code: 524522) (Rs.22.80) manufactures ethylene oxide (EO) derivatives such as Ethoxylates, Glycol Ethers, Acetates, Triethonal-amine and Brake fluids. In fact, it is the only Butyl Glycol and Methyl Glycol manufacturer in India along with their respective acetates. Besides it also produces 'THEIC', an unique surfactant for the wire enameling industry with micron size of less than 100, which is produced by only 3- 4 manufacturers worldwide. It maintains its own fleet of specially fabricated EO tankers and is currently the largest merchant consumer of pure ethylene oxide in the country. Moreover, the company has nearly completed its expansion of Glycol Ethers capacity from 15,000 to 30,000 TPA. For FY06, it reported an EPS of Rs.6 and may report an EPS of Rs.7 for FY07. However, lack of dividend is one of the reasons for its low discounting by marketmen.
Ecoboard Industries Ltd. (Code: 523732) (Rs.11) is in the forefront of treating industrial effluent with technical assistance from Sulzer Chemtech Ltd., Switzerland. It is the largest turnkey supplier of Anaerobic Wastewater treatment plants in the country for primary treatment of distillery effluent and is actively considering setting up effluent treatment facilities for pulp & paper, dairies, food products, sugar, pharmaceuticals etc. The company’s other product ‘Ecoboard' is a 100% wood free tough alternative to conventional particle boards, plywood and other panel products. It made a strong turnaround in FY06 by reporting sales and net profit of Rs.48 cr. and Rs.3.35 cr. respectively. It may end FY07 with a turnover of Rs.55 cr. and PAT of Rs.5 cr. i.e. EPS of Rs.3 on equity of Rs.16.30 cr. Only aggressive investors are advised to buy for handsome gain.
With Infosys reporting better than expected numbers, tech sector is once again in action. In such a scenario Aftek Infosys Ltd. (Code: 530707) (Rs.55.55) can see a sharp run before it declares its results. Purely on a fundamental basis, it is among the cheapest IT scrips available on the bourses. For the full year ending 30th June’06, it can report total revenue of Rs.260 cr. and PAT of Rs.80 cr., which works out to an EPS of Rs.9 on its current equity of Rs.17 cr. In future for better efficiency and integrity, the company is planning to merge its group company Elven and V-Soft with itself, exit from its European search engine Seekport and list its home automation unit Digihome on Indian bourses. Although the management doesn’t have a clean track record, still this scrip seems to be a value buy and can be bought for decent gains in the next 6-9 months.
Ramsarup Industries Ltd. (Code: 532690) (Rs.84.75) is the second largest producer of steel wire after Tata Steel. It has an installed capacity of 1,37,000 MT of steel wire and 72,000 MT of galvanized wire with 87,000 MT capacity of TMT bars. To de-risk the company from sectoral changes and to broaden the core business, it has decided to diversify into the business of laying power transmission lines and towers and has already bagged Rs.50 cr. order with another Rs.35 cr. order in the pipeline. Moreover, it has finalised plans to set up a bio-root power generation plant in Gujarat spread across 300 acres of land. For FY06, its turnover grew by nearly 20% to Rs.1018 cr. but its net profit more than doubled to Rs.28 cr. leading to an EPS of Rs.16 on its equity of Rs.17.50 cr. With an expected EPS of Rs.20 for FY07, it’s a strong buy at the current price level.
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