STOCK WATCH

Hinduja TMT Ltd. (HTMT) (Code No. 500189) (Rs.290.95) a well-managed professionally run company recently acquired Source One Communication, an USA based BPO firm with 500 seats for US $ 8.5 million. Since Tech companies are expected to post robust growth for FY05, it has the potential to appreciate by 50 per cent in 12 months time. Scrip will be re-rated soon.

*CESC Ltd. (Code No. 500084) (Rs.129.50) is being accumulated by a big operator. The company plans to add 250 MW capacity it an investment of Rs.2000 cr. It is also replacing its high cost debt with low cost loans. For Q1FY05 though its sales was flat at Rs.636 cr. net profit jumped 2.5 times to Rs.37 cr. from Rs.15 cr. For FY05 the company expects to post NP of Rs.120 cr. and register an EPS of Rs.15 on its expanded equity of Rs.81.50 cr. The company has huge reserves of Rs.1054 cr. Scrip can appreciate 25 per cent from current level in the short term.

*Lot of good news is pouring in for Teledata Informatics(Code No. 532358) (Rs.52.50). But the management does not enjoy a good reputation and the company's balance sheet is not clean. Think twice before investing at current levels.

*One analyst feels that Mercator Lines (Code No. 526235) (Rs.611.70) is fully valued at CMP. Company is planning huge equity dilution and raising debt substantially for buying vessels and further price action may be to support the offer. He advises to switch to SCI or GE Shipping.

*Uttam Galva (Code No. 513216) (Rs.28.15) was accumulated during its T2T transfer period. Now that it has been shifted back to normal trading, it is ready to take-off. For FY05, it will register an EPS of more than Rs.10 and can double in 9-12 months.

Entertainment sector will witness some action with the launch of Reliance Media & Entertainment Fund. *Padmalaya Tele (Code No. 532350) (Rs. 70.50) looks reasonably cheap quoting cum dividend of Rs.3.50 offering a dividend yield of more than 5 per cent!

*Ankur Drugs (Code No. 531683) (Rs.33.40) management is quite positive about the company's future prospects and target a better operating margin due to reduction in raw material costs. Their Baddi plant is expected to become operational form Oct 2005. Few high networth individuals (HNIs) are very bullish on it and are accumulating it with a target of Rs.50+

*Hind Zinc(Code No. 500188) (Rs. 123.70) is expected to announce a price hike since zinc price have risen smartly in the international market. It can be accumulated at current level for medium term.

Gujarat based Shah Alloys (Code No. 513436) (Rs.92.25) is planning an IPO of its subsidiary SAL Steel for backward integration. Scrip is expected to see some action before issue hits the market.

*People are offloading Bhushan Steel (Code No. 500055) (Rs.114.70) due to the rocket explosion at its Ghaziabad factory. But this temporary shut-down will not affect its production much. A good opportunity to accumulate this performer for the long term.

*D-Link (Code No. 532419) (Rs. 123.00) can be accumulated as a safe bet since it has not participated in this bull run. It is now diversifying into software development, Technical Call Centre (BPO), & training centers.