STOCK WATCH
Ashapura Minechem is a pioneer in mining, processing & exporting bentonite lumps and powder and other minerals like china clay, calcium carbonate, barytes, etc. It is one of the largest producer of Bauxite in the world, controlling 10 per cent of the world’s freely traded bauxite. Its bulging order book position & excellent December’04 numbers makes it a good long term bet. For this quarter, its total revenue increased 6 times to Rs.165 cr. and NP increased by 700 per cent to Rs.5.50 cr. posting a quarterly EPS of more than Rs.8.5. For FY05, it can report an EPS of around Rs.25 Accumulate it at sharp declines for the long term
Sarla Polyester is a 100 per cent EOU engaged in the manufacture of synthetic and texturised yarn. With the removal of the quota system, this company is bound to benefit and will post much better numbers in coming quarters. It posted good numbers for December’04 as well with Sales up 24 per cent at Rs.18.50 cr. and NP at Rs.2.60 cr. up 13 per cent. It enjoys a decent OPM of around 20 per cent. At current market price (CMP) the dividend yield works to more than 5 per cent with an expected dividend of 28 per cent for the full year. For FY05, it is expected to post an EPS of Rs.14. A strong buy in the growing textile sector.
Recently, Aarti Industries has approved 1:1 bonus and the second interim dividend of 40 per cent and the scrip is expected to turn ex-bonus this week. The company came out with fabulous December’04 numbers. Its Net Sales grew by 41 per cent to Rs.183 cr. and NP increased by 37 per cent to Rs.14.85 cr. The Company is reportedly doing well and is expected to end FY05 with an EPS of around Rs.40. Long term investors can buy it for handsome gains at CMP
Caustic Soda price are rising and so will the share prices of caustic soda companies. In this sector, a relatively small and lesser known company, Chemfab Alkali, is performing exceedingly well. Due to lack of investor awareness it is trading very cheap compared to its peers like Guj Alkalies etc. For the quarter ending 31st December 2004,its Sales grew by 14 per cent to Rs.19.50 cr. its bottomline doubled to 4 cr. recording an EPS of Rs.11.50 on small equity of 3.47 cr. but due to better price realisation and lower interest cost. For the full year FY05 it can report an EPS of Rs.35. A good buy for the short term as well as the long term.
For quite some time, Tata Sponge is trading in a very narrow range band and its share price has not risen even in this bullish market. Investors are advised to hold it patiently as the scrip has the potential to touch Rs.250 mark. For December’04 quarter its Sales increased by 37 per cent to Rs.61.40 cr. and NP zoomed up 86 per cent to Rs.15.45 cr. maintain its OPM at 38 per cent. For the full year FY05 it can post an EPS of more than Rs.36. Hold it patiently.
As mentioned earlier in this column, Shah Alloys has come out with flying colours beating all the analyst expectation. It reported record high sales and NP figure for December’04. Net Sales was up 40 per cent at Rs.343 cr. and NP jumped 162 per cent to Rs.17.10 cr. posting an EPS of more than Rs.19 for the quarter. For the full year FY05 it can report an EPS of Rs.45. A screaming buy. Grab it before its too late. Share price is expected to hit Rs.250 mark soon.
Mro-Tek has turned quite active by developing certain high-profile indigenous technology products to maintain future growth. It reported quite impressive numbers for December’04. Net Sales increased by 4 per cent but NP doubled to Rs.5.60 cr. excluding extraordinary items. Interestingly, it’s OPM for this quarter stood at 18 per cent compared to the normal 10 per cent. If we do not consider the extraordinary item, the Q3FY05 EPS works out to Rs.2.75 on Rs.5 face value on its current equity capital of Rs.10.22 cr. The company has also approved the buy back plan but deferred it due to some SEBI regulation.
Sarla Polyester is a 100 per cent EOU engaged in the manufacture of synthetic and texturised yarn. With the removal of the quota system, this company is bound to benefit and will post much better numbers in coming quarters. It posted good numbers for December’04 as well with Sales up 24 per cent at Rs.18.50 cr. and NP at Rs.2.60 cr. up 13 per cent. It enjoys a decent OPM of around 20 per cent. At current market price (CMP) the dividend yield works to more than 5 per cent with an expected dividend of 28 per cent for the full year. For FY05, it is expected to post an EPS of Rs.14. A strong buy in the growing textile sector.
Recently, Aarti Industries has approved 1:1 bonus and the second interim dividend of 40 per cent and the scrip is expected to turn ex-bonus this week. The company came out with fabulous December’04 numbers. Its Net Sales grew by 41 per cent to Rs.183 cr. and NP increased by 37 per cent to Rs.14.85 cr. The Company is reportedly doing well and is expected to end FY05 with an EPS of around Rs.40. Long term investors can buy it for handsome gains at CMP
Caustic Soda price are rising and so will the share prices of caustic soda companies. In this sector, a relatively small and lesser known company, Chemfab Alkali, is performing exceedingly well. Due to lack of investor awareness it is trading very cheap compared to its peers like Guj Alkalies etc. For the quarter ending 31st December 2004,its Sales grew by 14 per cent to Rs.19.50 cr. its bottomline doubled to 4 cr. recording an EPS of Rs.11.50 on small equity of 3.47 cr. but due to better price realisation and lower interest cost. For the full year FY05 it can report an EPS of Rs.35. A good buy for the short term as well as the long term.
For quite some time, Tata Sponge is trading in a very narrow range band and its share price has not risen even in this bullish market. Investors are advised to hold it patiently as the scrip has the potential to touch Rs.250 mark. For December’04 quarter its Sales increased by 37 per cent to Rs.61.40 cr. and NP zoomed up 86 per cent to Rs.15.45 cr. maintain its OPM at 38 per cent. For the full year FY05 it can post an EPS of more than Rs.36. Hold it patiently.
As mentioned earlier in this column, Shah Alloys has come out with flying colours beating all the analyst expectation. It reported record high sales and NP figure for December’04. Net Sales was up 40 per cent at Rs.343 cr. and NP jumped 162 per cent to Rs.17.10 cr. posting an EPS of more than Rs.19 for the quarter. For the full year FY05 it can report an EPS of Rs.45. A screaming buy. Grab it before its too late. Share price is expected to hit Rs.250 mark soon.
Mro-Tek has turned quite active by developing certain high-profile indigenous technology products to maintain future growth. It reported quite impressive numbers for December’04. Net Sales increased by 4 per cent but NP doubled to Rs.5.60 cr. excluding extraordinary items. Interestingly, it’s OPM for this quarter stood at 18 per cent compared to the normal 10 per cent. If we do not consider the extraordinary item, the Q3FY05 EPS works out to Rs.2.75 on Rs.5 face value on its current equity capital of Rs.10.22 cr. The company has also approved the buy back plan but deferred it due to some SEBI regulation.
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