STOCK WATCH
Shreyas Shipping, a leader in the container feeder segment, has recently purchased MV Orient Victory a 569 TEU second hand container vessel which will be delivered to the company by the end of January 2005. It has posted excellent results for Q3FY05. Total revenue was up 30 per cent to Rs.26 cr. and NP including extraordinary item jumped 170 per cent to Rs.16.45 cr. yielding an quarterly EPS of Rs.8.30. Excluding extraordinary item (ie reversal of deferred tax due to tonnage tax system) also, the EPS works out to 3.80 Rs. A good long term bet.
Bhagyanagar Metals which is now concentrating in assembling and trading of CDMA handsets to take advantage of the cellular revolution in the country came out with a good set of numbers for December’ 04 quarter. Net Sales doubled to Rs.35 cr. and profit after tax stood at Rs.7.85 cr. compared to Rs.62 lakh last year resulting in an EPS of Rs.12.50 on its current equity of Rs.6.30 cr. The company plans to venture into the manufacture of copper pipes and foils for solar heaters. For FY05, it can report an EPS of around Rs.40. Although the promoters are reducing their stake, investors can take some exposure for a handsome gain in long term.
Due to higher demand and better price realisation of caustic soda, Gujarat Alkalies has reported fantastic figures for the December 2004 quarter. Its Net sales are up 23 per cent to Rs.306 cr. and NP multiplied 3 times to Rs.49.50 cr. inspite of tax provision of Rs.43.75 cr. Its OPM also improved substantially for this quarter and stood at 40 per cent. For future growth, it has planned expansion in its Caustic Soda and Hydrogen Peroxide manufacturing facility at its Dahej plant at a cost of Rs.200 cr.Fundamentally, a strong company which can post an EPS of Rs.18 for FY05.
Metalman Industries is a manufacture of galvanized tubes consisting of Black & Galvanized Steel Pipes used in irrigation, tube wells, water conveyance, structurals, etc. conforming to ISI specifications. Due to the government’s thrust on agriculture, the company is facing good times and is expected to perform well in the future. For the first six months of the current year, its sales increased by 50 per cent to Rs.134 cr. and NP rose by 55 per cent to Rs.5.35 cr. For the full year, it is expected to post an EPS of Rs.10. Since it is a small cap and illiquid scrip, aggressive investors are advised to accumulate it.
Though the market has appreciated smartly and is trading above Sensex 6300 level, Reliance Industries is still trading quite cheap at Rs.520 level, thanks to the feud among the Ambani brothers. Due to the uptrend in the petrochemical cycle and higher refining margin, the company posted wonderful result sinceQ3FY05. Its topline increased by impressive 42 per cent to Rs.17768 cr. and bottomline grew by 52 per cent to Rs.2091 cr. The company is buying back its shares agressively form the market and may report an EPS of more than Rs.50 for FY05.The scrip has the potential to hitRs.750 in the next 15 months.
KIC Metallics is into manufacturing of Pig iron, castings and slag cement. It is in the process of setting up a steel billet manufacturing unit with a capacity of 150,000 TPA and is expanding the pig iron production capacity from current 120,000 TPA to 1,50,000 TPA. For Q3FY05, it posted splendid numbers with net sales rising 170 per cent to Rs.68.20 cr. and NP increased by 150 per cent to Rs.2.50 cr. On its current equity of Rs.3.70 cr. it works out to an quarterly EPS of Rs.7. For the full year, it may register an EPS of Rs.16. Recently; it approved preferential allotment of 6.35 lakh shares at Rs.80. A strong buy.
Due to higher demand and better price realisation of caustic soda, Gujarat Alkalies has reported fantastic figures for the December 2004 quarter. Its Net sales are up 23 per cent to Rs.306 cr. and NP multiplied 3 times to Rs.49.50 cr. inspite of tax provision of Rs.43.75 cr. Its OPM also improved substantially for this quarter and stood at 40 per cent. For future growth, it has planned expansion in its Caustic Soda and Hydrogen Peroxide manufacturing facility at its Dahej plant at a cost of Rs.200 cr.Fundamentally, a strong company which can post an EPS of Rs.18 for FY05.
Metalman Industries is a manufacture of galvanized tubes consisting of Black & Galvanized Steel Pipes used in irrigation, tube wells, water conveyance, structurals, etc. conforming to ISI specifications. Due to the government’s thrust on agriculture, the company is facing good times and is expected to perform well in the future. For the first six months of the current year, its sales increased by 50 per cent to Rs.134 cr. and NP rose by 55 per cent to Rs.5.35 cr. For the full year, it is expected to post an EPS of Rs.10. Since it is a small cap and illiquid scrip, aggressive investors are advised to accumulate it.
Though the market has appreciated smartly and is trading above Sensex 6300 level, Reliance Industries is still trading quite cheap at Rs.520 level, thanks to the feud among the Ambani brothers. Due to the uptrend in the petrochemical cycle and higher refining margin, the company posted wonderful result sinceQ3FY05. Its topline increased by impressive 42 per cent to Rs.17768 cr. and bottomline grew by 52 per cent to Rs.2091 cr. The company is buying back its shares agressively form the market and may report an EPS of more than Rs.50 for FY05.The scrip has the potential to hitRs.750 in the next 15 months.
KIC Metallics is into manufacturing of Pig iron, castings and slag cement. It is in the process of setting up a steel billet manufacturing unit with a capacity of 150,000 TPA and is expanding the pig iron production capacity from current 120,000 TPA to 1,50,000 TPA. For Q3FY05, it posted splendid numbers with net sales rising 170 per cent to Rs.68.20 cr. and NP increased by 150 per cent to Rs.2.50 cr. On its current equity of Rs.3.70 cr. it works out to an quarterly EPS of Rs.7. For the full year, it may register an EPS of Rs.16. Recently; it approved preferential allotment of 6.35 lakh shares at Rs.80. A strong buy.
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