STOCK WATCH

Ministry of Oil and Petroleum is expected to exempt ONGC from sharing the subsidy burden on Kerosene & LPG in FY06. Moreover, due to the severe winter and higher demand crude oil price is once again rising and is trading above 51 $. ONGC may report an EPS of more than Rs85 for FY05 and the share price can cross Rs1000 mark easily in coming weeks.

In the pharma sector, one can look at Syncom Formulation for long term growth prospects. For the quarter ending 31st Dec. 2004, its total revenue grew by 23% to Rs14.60 cr. and NP jumped more than 160% to Rs.2 cr. yielding an EPS of Rs4 on its small equity of Rs5 cr. Although other income contributed substantially to its bottom-line, it may still report an EPS of Rs13 for FY05. Its share price has the potential to double in a year’s time. Keep a track.

Although freight rates have softened, they are expected to remain high compared to last year due to strong international trades. Recently, GE Shipping has taken delivery of a 1988 built 96,551 DWT Aframax Crude Carrier and has contracted to acquire a second hand 1997 built 45342 DWT Handymax Bulk Carrier to be delivered in April-May 2005. For FY05, it may report an EPS of more than Rs35 and its share price could cross Rs250 in the next 6 months.

JBF Industries has established itself as an industry leader in the Texturising business and is one of the top 5 players in the POY Industry. In view of the increased requirements of Polyester Chips within the industry, JBF embarked on setting up a new grass root plant of 600 Tonnes Per Day (TPD) for the production of Polyester Chips. The Budget, too, may favour the synthetic fibre industry with some positive news. With an expected EPS of Rs8 for FY05 and Rs12 in FY06, this scrip is available very cheap and should be bought with a 18~24 months perspective to more than double your money.

Nagarjuna Agrichem has several products in its crop protection portfolio comprising four insecticides, two fungicides and one herbicide and operates one of the most modern agrochemical plants situated in Srikakulam district in Andhra Pradesh. Moreover, it is exploring options to manufacture products for MNCs. For FY05, it is expected to post an EPS of Rs20. Its share price can rise sharply post budget.

Though the Deccan Cement share has been an underperformer for quite long, it is fairly undervalued and will be re-rated sooner or later. It has the capacity to produce 3,00,000 TPA of cement and 5,00,000 TPA of slag cement. With an estimated EPS of Rs12 and book value of around Rs85, this share can easily cross the century mark. With the government’s thrust on infrastructure and the rising demand, cement prices are expected to rise further. Hold it patiently for handsome rewards.