STOCK WATCH

Although a new entrant in the BPO segment, Visual Soft (Code No.: 532214) (Rs.153.90) has ambitious plans to expand its BPO activity going forward. For FY05, it is expected to post an EPS of Rs.18, which makes it one of the cheapest scrips in this sector.

FY05 will be the best year for SCI (Code No.: 523598) (Rs.160.90) as it is expected to post record sales & profit. Thanks to robust freight rates and the introduction of tonnage tax, its EPS can touch Rs. 40. With the company expected to declare an interim dividend on 30th October 2004, this is the best time to pick up this scrip

Murudeshwar Ceramics (Code No.: 515037) (Rs.35.10) enjoys the highest OPM in its segment. It has Rs.147 cr. in reserves on equity of Rs.15 cr. Despite of competition from China, it is expected to post an EPS of Rs.10 for FY05. Scrip can appreciate 50 per cent in next 6 months.

Surya Roshini (Code No.: 500336) (Rs.25.60) is the second largest manufacturer of lighting products and has one of the largest steel tube manufacturing plants. It exports to more than 50 countries. The company also plans to expand its manufacturing capacity for lighting products and set up a new plant for steel tubes particularly for exports. For FY05, the company is expected to post an EPS of Rs.5. With a book value of Rs. 50 and dividend yield of 5 per cent, this scrip can be accumulated for the medium term.

Both the Sponge Iron and Steel Billet divisions of Orissa Sponge (Code No.: 504864) (Rs.40.00) are doing well. For Q1FY05, its NP doubled to Rs. 3 cr. and OPM improved to 28 per cent. For FY05, the company may post an EPS between Rs. 8-10. Scrip has the potential to double from here in 12 months time.

ONGC’s plan of buying back its share from Indian Oil (Code No.: 530965) (Rs.439.55) is fundamentally very positive news as it will reduce its capital and enhance its EPS on liquidation of these shares. If it works out, marketmen expect the share to cross Rs.1000 mark.
Sugar companies are expected to post excellent Q2 numbers. Once the result is out from any one company, the whole sector will see a fresh round of rally.

As expected, Samtel Color (Code No.: 500372) (Rs.77.30) September quarter was excellent. Sales increased around 20 per cent to Rs. 260 cr. whereas NP jumped 5 times to Rs. 14.68 cr. For FY05, it will register an EPS of Rs.12. Its share price of Rs. 100 seems imminent.
Both the Cement and Tyre divisions of Kesoram Industries (Code No.: 502937) (Rs.104.45) are faring very well. Fund managers are very bullish and are accumulating the scrip with a target of Rs.150

An analyst is bullish on Usha Martin Ltd. (Code No.: 517146) (Rs.62.90) even at current levels. Recently, it completed the installation of DRI and 10 MW captive power plant. It is also learnt that some high net worth individuals (HNIs) are accumulating it for long term.

Kilburn Chemical: (Code No.524699) (Rs.29.25) manufactures Titatinum Oxide, which is considered as precious as crude because it is in short supply. Kilburn had restructured its business by debottlenecking and adding balancing equipment to get more production. Consequently, its quarterly result for June’04 quarter shows a 100 per cent increase in net profit over the previous quarter. The company is in a position to report an EPS of Rs.8.50 this year and Rs.12 next year. It is dividend paying company and at Rs.24. It is a value pick keeping the future scope in mind.

Classic Diamonds (Code No.: 523200) (Rs.99.45) has ambitious plan to capture the domestic market by opening more than 50 retail shops called ‘Classic Jewels’. It has huge reserves of Rs.125 cr. on a small equity of Rs.7 cr. making to a book value of Rs.189. For FY05, the company is expected to post an EPS of RS. 38. Of late, the gems and jewellery sector has caught market attention and this companys seems a good investment bet.