STOCK WATCH

Surat Electricty (Code No.501736) (Rs.223.50) the Torrent Group power company, has still not caught market fancy. Promoters have increased their stake this year and are planning to rename it as 'Torrent Power SEC Ltd'. Its Q1FY05 was excellent and for the full year it's expected to register an EPS of more than Rs. 40. Interestingly, the Gujarat Government holds more than 6 per cent equity, which it may divest in future. A good long term bet.

Ahmednagar Forgings, (Code No.513335) (Rs.101.35) an Amtek group company has come out with excellent numbers. Operating margins have improved substantially and NP increased by 65 per cent to Rs. 5 cr. in spite of tax provisioning of more than Rs.2 cr. Company is expected to return to the dividend list in FY05. A must buy.

As per one fundamental analyst, Nagarjuna Construction (Code No.500294) (Rs.334.50) appears fully valued. He suggests to switch to Madhucon Projects (Code No.531497) (Rs.284.05) or Petron Engineering (Code No.530381) (Rs.72.00).Eastern Silks' (Code No.590022) (Rs.173.10) Q2FY05 numbers have beaten all analysts' expectations. Sales increased by around 40 per cent to Rs. 91 cr. and NP jumped 70 per cent to around Rs.9 cr. in spite of tax provisioning of Rs.1.20 cr. Operating margin also improved from 12.5 to 16 per cent. It has caught the market attention and a bull operator puts a price tag of Rs.250.

The boom in caustic soda prices is clearly visible in Gujarat Alkalies (Code No.530001) (Rs.82.25) Q2FY05 numbers. Although Net Sales increased by 10 per cent only, Net Profit has more than doubled to Rs. 36 cr. posting an EPS of Rs. 5. And this is in spite of higher tax provisioning of Rs. 23 cr. (for full year FY04 it was Rs. 25 cr). Its OPM also improved substantially to 34 per cent. Due to reduction in interest outgo and good expansion plans, this scrip is bound to cross Rs. 100 soon.

In spite of fall in sales and profit, one pharma analyst is mildly bullish on Krebs Biochem (Code No.524518) (Rs.191.50) due to its dividend yield and being a likely takeover candidate. He expects the company to post a minimum EPS of Rs. 25 for FY05.

Tata Sponge (Code No.513010) (Rs.142.85) results were below market expectations but still it is expected to perform well in future. It should be taken as an opportunity to accumulate more.
Bharat Gears (Code No.505688) (Rs.46.85) seems to have bottomed out at Rs. 46 and should be bought for long term. For FY05, it is expected to report an EPS of Rs. 8.

Although Savita Chemicals' (Code No.524667) (Rs.140) margin is under pressure, still its NP rose 5 per cent to Rs. 6.75 cr. and Sales increased by 35 per cent to Rs. 125 cr. For FY05, it should report a minimum EPS of Rs.30. At CMP it can be accumulated for long term. Once crude oil prices cools down, its operating margins will improve and its share price will shoot up. Also, it's quite ripe for a bonus.

Elder Pharma (Code No.) (Rs.146.85) did not participate in the recent pharma rally. Its Q2FY05 numbers are in line with expectations. Its future is very promising and the share price is tipped to cross Rs. 250 in the medium term.