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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

Sensex (LIVE- Intraday)

Thursday, May 1, 2008

Small & Beautiful (Guj)

Click here to download Gujarati version

Sujana Towers (110.00) is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Besides it also offer various services including engineering and consultation, turnkey installations, inspection and maintenance of towers etc. Of late it has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA and is further augmenting it by another 100,000 TPA manufacturing facility at Chennai. For the latest March’08 quarter it reported revenue of Rs 152 cr and net profit of Rs 12.30 cr. Hence, it is expected to clock a turnover of Rs 590 cr and PAT of Rs 45 cr for FY08. This leads to an EPS of Rs 11 on current equity of Rs 20.70 cr whereas Rs 9.50 on diluted equity of Rs 23.50 cr having face value of Rs 5 per share. To fund its growth plans, company has made preferential allotment of 80 lac warrants @ Rs 140 and is planning to raise nearly 300 cr thru FCCB/GDR route. Kee adding at declines.

Acrysil Ltd (70.00) is engaged in manufacturing of granite and quartz kitchen sinks which are made up of 75~80% special color treated natural quartz minerals that gives 'look of granite and feel of stone'. Actually Quartz stone is next hardest to diamond making the sink tough, scratch proof, dent proof with indestructible surface. Hence company’s premium brand ‘CARYSIL’ is quite successful & popular in north India for kitchen sinks. To cater the rising demand, last year company increased its production capacity from 82,0000 to 120,000 kitchen sinks. This year it is further augmenting it to 180,000 kitchen sinks. For the March’08 quarter its sales jumped up 75% to Rs 10.60 cr whereas its profit tripled to Rs 1.70 cr posting an EPS of more than Rs 6 for the single quarter. At the same time for entire fiscal it recorded 50% growth in sales to Rs 30 cr and 200% rise in profit to Rs 3.60 cr leading to an EPS of Rs 13.50 on current equity of Rs 2.70 cr. Notably, it declared 30% dividend for Fy08 which given an yield of more than 4% at CMP. Considering all the factors and at a fair discounting by 7x times, scrip has the potential to touch Rs 30~40% within few months.

Belonging to diversified Aditya Birla group, Tanfac Industries (60.00) is one of the largest suppliers of fluorine chemicals in India. It is mainly engaged in the manufacture of inorganic chemicals and fluorine based chemicals such as aluminium fluoride (ALF3), anhydrous hydro fluoric acid (AHF), sodium silico fluoride, ammonium bifluoride, sulphuric acid, potassium fluoride, cryolite and various chemicals. Besides it also produces organic fluorides & speciality fine chemicals which are used as intermediates in the manufacture of pharmaceuticals and agrochemicals. Recently it came out with terrific set of nos for the March qtr. Sales shot by 60% to Rs 54 cr whereas net profit zoomed up 145% to Rs 5 cr thereby posting an EPS of Rs 5 for the quarter. Accordingly for full year FY08 it registered 35% growth in sales to Rs 164 cr and 85% rise in PAT to Rs 12 cr i.e. EPS of Rs 12 on equity of Rs 9.98 cr. On the back of strong demand for aluminum fluoride, company is expected to do well in coming years as well. Buy at declines only.

Mazda Ltd (80.00) is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into Vacuum system, Valve division, Air pollution control equipment, Crystallizers and Evaporators. Last week it came out with satisfactory nos for th March qtr and ended FY08 on quite a buoyant note. For the full year its sales improved by 15% to Rs 60.50 whereas its profit increased by 30% to Rs 6.60 cr. Hence it registered a very healthy EPS of Rs 15.50 on a small equity of Rs 4.26 cr. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. Despite having promising future, this hi-tech engineering company is available very cheap at an enterprise value of around Rs 40 cr. It’s a screaming buy.

Click here to download Gujarati version

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