STOCK WATCH

Around 80% of BSEL Tech Park, the first project of BSEL Infrastructure Realty Ltd. (Code:532123) (Rs.50) has been sold out and the balance 47,000 sq. ft. is almost finalized which will fetch nearly Rs.50 cr. revenue to the company. Also, out of the 80,000 sq. ft. area acquired by it from CIDCO in the International Infotech Park at Vashi, 60,000 sq. ft. has already been leased. It is constructing a 3,50,000 sq. ft. shopping mall in Nagpur and has recently acquired 30 acre land in Panvel to develop a mega city township. It has also participated in the tender for the allotment of a 5-storied BMC building at Tardeo. In Gujarat, the company is setting up service apartments, a prime budget hotel, a food court with recreational facilities having a saleable area of 6,00,000 sq. ft. In short, the future looks promising for BSEL as it may register total revenue of around Rs.85 cr. and PAT of Rs.35 cr. for FY07. This means an EPS of Rs.6 on its equity of Rs.59.30 cr. Investors should enter only keeping a long term view of 2-3 years as it will start generating huge revenues from 2007-08 onwards.

Besides manufacturing important drugs like Tramadol, Amytriptyline and Paroxetine, Salsalate etc, Wanbury Ltd. (Code:524212) (Rs.109) is the world’s largest producer of Metformin-a diabetes management product with over 20% the global market. To increase its market share, it is in the process of expanding capacities from the existing 3,600 to 4,500 TPA. As a part of its growth strategy, it has launched a super specialty research division ‘Osteolife' catering to orthopaedic specialty. Its merger with Doctors Organic Chemical Ltd & Pharmaceutical Products India Ltd. will take it to a different league as both these companies have world class manufacturing facilities. The company is planning to use the Doctors Organic USFDA approved facility mostly for CRAMS and has embarked upon Rs.25 cr. expansion plan whereby it intends to manufacture high-value products such as sertraline, paroxetine and carvedilol. For FY07, on a standalone basis it is estimated to report a turnover of Rs.175 cr. and net profit of Rs.16 cr. i.e. an EPS of Rs.13 on its equity of Rs.12.75 cr.

After hitting a high of Rs.520, the share price of Eldeco Housing & Inds. Ltd. (Code:523329) (Rs.179) has been beaten down badly to the current level of around Rs.180. It specializes in township development, group housing, commercial/ office buildings, contract work (Civil, Electrical, Infrastructure projects) and belongs to one of the reputed and well-known Eldeco group based in North India. Interestingly, this company is concentrating only in UP with various projects going on in Lucknow, Kanpur, Ghaziabad etc. It has ample work in hand to keep itself busy for the next 3 years. For FY07, it is expected to report total revenue of Rs.75 cr. and net profit of Rs.5 cr. leading to an EPS of Rs.25 on its very tiny equity of Rs.1.97 cr. But the biggest trigger for this scrip will be its other group company, Eldeco Infrastructure and Properties Ltd., coming out with an IPO or merging it with this listed company. With a current market cap of merely Rs.35 cr., it is a good bet for the long-term in the construction and real estate sector.

In order to highlight its brandname and reflect its ready-to-eat (RTE) food business, Satnam Overseas has renamed itself as Kohinoor Foods Ltd. (Code:512559) (Rs.79). It is the undisputed leader in the domestic branded basmati rice segment with more than 35% market share with reputed brands like Kohinoor, Trophy, Charminar, Rose, Darbar, Shehanshah and Falcon. It is aggressively expanding its presence in the lucrative (RTE) segment and is constantly augmenting its product portfolio. Recently, it has set up a frozen food processing facility in Haryana and has already received orders from Singapore, Mauritius, UK and South Africa. It has also tied up with Reliance Industries retail chain to sell its branded basmati rice and other convenience food products. For FY07, it is estimated to clock a turnover of around Rs.700 cr. and a net profit of Rs.30 cr. This translates into an EPS of Rs.10 on its fully diluted equity of Rs.29.60 cr. As food processing is the buzzing sector and has great potential, this company is trading reasonably cheap at a market cap of Rs.225 cr. The scrip has the potential to touch Rs.110 in 6-9 months.