STOCK WATCH
Raipur Alloys (Code No. 504614) (Rs.63.90) is reportedly doing well. For the first half ending 30 Sept. 2004, it reported Net Sales of Rs83.50 cr. up 50 per cent and NP of Rs9 cr. registering an EPS of Rs7. For the full year, it should earn an EPS of Rs16. The scrip will gradually cross Rs100. Hold it for medium to long term.
Bongaigaon Refineries (Code No.500072) (Rs.92.15) is discounted poorly as marketmen fear that its benefit of only 50 per cent excise duty being in the North East may be withdrawn by the government. For the six months ending 30 Sept. 2004, its net sales was up 57 per cent to Rs2148 cr. and NP jumped 54 per cent to Rs293 cr. Trading at 4 PE on an expected EPS of Rs22 for FY05, makes it quite undervalued and it is sure to be re-rated going forward. Moreover, it’s a handsome dividend paying company.
Tata Sponge (Code No.513010) (Rs.151.60) is enhancing capacity from 2,40,00 TPA to 3,90,000 TPA and has ambitious expansion plans for the future with an investment of over Rs1000 cr. For the first six months of FY05, its Net sales grew 37 per cent to Rs114 cr. and NP jumped an impressive 86 per cent to Rs29.40 cr. Considering the robust sponge iron prices, it is expected to report an and EPS of Rs32 for the full year. It’s a good bet at current levels.
Cement prices have increased by Rs15 ~ 20 per bag in the South and other parts of India, which led to a sharp rally in cement stocks except Deccan Cements (Code No.502137) (Rs.58.95). Its sales was up 19 per cent to Rs62 cr. and NP doubled to Rs3.90 cr. in the first half of FY05. Its second half will be much better and the company is expected to post an EPS of Rs12 for the full year. Share price has the potential to appreciate 50 per cent from current levels. Hold patiently.
Crude oil prices have softened substantially and analysts expect it to stabilize at current levels and Savita Chemicals (Code No.524667) (Rs.162.05) will be a big beneficiary since its the main raw material for the company. But in spite of high crude oil prices, the company posted robust numbers in H1FY05 . Sales was up 35 per cent at Rs234 cr. whereas NP rose 7 per cent to Rs12.70 cr. For the full year FY05, it will report an EPS of more than Rs30. Accumulate it for handsome gains in the medium term. Apart from a good dividend, it is ripe for a bonus too.
Indo Asian Fuse Gear (Code No.517318) (Rs.87.50), manufacturer of switchgears, is having the best of times with good orders pouring in. Company is expected to do much better in future given the huge export opportunity and the booming power and construction sector. For the first half of FY05, its Net sales was up 87 per cent and NP zoomed to Rs5.70 cr. from just Rs0.30 cr. last year. For FY05, it can report an EPS of Rs14. Buy at dips for long term as the share price can double in 15~18 months.
Man Industries (Code No.513269) (Rs.88.30) may rise further before its December results are out. It has a strong order book and the company expects more orders in coming months. For FY05, it should report an EPS of Rs18. Share price can rise 30~40 per cent from the current level once its Q3 results are declared.
Bongaigaon Refineries (Code No.500072) (Rs.92.15) is discounted poorly as marketmen fear that its benefit of only 50 per cent excise duty being in the North East may be withdrawn by the government. For the six months ending 30 Sept. 2004, its net sales was up 57 per cent to Rs2148 cr. and NP jumped 54 per cent to Rs293 cr. Trading at 4 PE on an expected EPS of Rs22 for FY05, makes it quite undervalued and it is sure to be re-rated going forward. Moreover, it’s a handsome dividend paying company.
Tata Sponge (Code No.513010) (Rs.151.60) is enhancing capacity from 2,40,00 TPA to 3,90,000 TPA and has ambitious expansion plans for the future with an investment of over Rs1000 cr. For the first six months of FY05, its Net sales grew 37 per cent to Rs114 cr. and NP jumped an impressive 86 per cent to Rs29.40 cr. Considering the robust sponge iron prices, it is expected to report an and EPS of Rs32 for the full year. It’s a good bet at current levels.
Cement prices have increased by Rs15 ~ 20 per bag in the South and other parts of India, which led to a sharp rally in cement stocks except Deccan Cements (Code No.502137) (Rs.58.95). Its sales was up 19 per cent to Rs62 cr. and NP doubled to Rs3.90 cr. in the first half of FY05. Its second half will be much better and the company is expected to post an EPS of Rs12 for the full year. Share price has the potential to appreciate 50 per cent from current levels. Hold patiently.
Crude oil prices have softened substantially and analysts expect it to stabilize at current levels and Savita Chemicals (Code No.524667) (Rs.162.05) will be a big beneficiary since its the main raw material for the company. But in spite of high crude oil prices, the company posted robust numbers in H1FY05 . Sales was up 35 per cent at Rs234 cr. whereas NP rose 7 per cent to Rs12.70 cr. For the full year FY05, it will report an EPS of more than Rs30. Accumulate it for handsome gains in the medium term. Apart from a good dividend, it is ripe for a bonus too.
Indo Asian Fuse Gear (Code No.517318) (Rs.87.50), manufacturer of switchgears, is having the best of times with good orders pouring in. Company is expected to do much better in future given the huge export opportunity and the booming power and construction sector. For the first half of FY05, its Net sales was up 87 per cent and NP zoomed to Rs5.70 cr. from just Rs0.30 cr. last year. For FY05, it can report an EPS of Rs14. Buy at dips for long term as the share price can double in 15~18 months.
Man Industries (Code No.513269) (Rs.88.30) may rise further before its December results are out. It has a strong order book and the company expects more orders in coming months. For FY05, it should report an EPS of Rs18. Share price can rise 30~40 per cent from the current level once its Q3 results are declared.
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