STOCK WATCH
Lot of rumours are buzzing the market about consolidation in the banking sector and Banking personalities opine that mergers and acquisitions are inevitable in the current situation. Hence South Indian Bank given its strong fundamentals and wide regional presence is being targeted by several big private and foreign banks. It’s safe and good bet in the banking sector.
Purely on fundamentals National Oxygen, a very small company manufacturing oxygen, nitrogen gas etc looks fairly cheap and can rise sharply if the market remains bullish. For the December quarter it reported excellent set of numbers. Its Net Sales was up 60 per cent to Rs.3.85 cr. and NP zoomed 360 per cent to Rs.1.25 cr. posting a quarterly EPS of Rs.4 on equity of Rs.3.10 cr. Its OPM also improved substantially to 39 from 14 per cent last year. For FY05, it is likely to post an EPS of Rs.12 and the scrip can cross Rs.60 in medium to long term.
Haldyn Glass Gujarat Ltd is one of the major players in the Clear Glass Container manufacturing segment and has a diverse and reputed clientele including Glaxo, Cipla, McDowells, Shaw Wallace, Camlin etc. Its December’04 quarter was quite good as Sales grew by 17 per cent to Rs.13 cr. and NP jumped 80 per cent to Rs.1.10 cr. For the full year, it can post an EPS of Rs.7 and the share price can cross Rs.50 mark if the market sentiment remains bullish
Era Construction, a lesser known and relatively smaller company in infrastructure construction sector is reportedly faring well. Thanks to the growing economy and its bulging order book. For FY05, it may report an EPS of Rs.9 which may shoot up to Rs.14 in FY06. Accumulate it at every dip to get handsome returns in the long term.
Jupiter Biosciences is among the very few companies in the world specializing in peptide chemistry, organic chemistry, chiral chemistry and biotechnology. Recently it has entered into a general cooperation agreement with a Clariant Pharmaceutical Fine Chemicals of Germany. For the full year, it is expected to report an EPS of around Rs.20. The management is very media shy but the share price can rally sharply in future like Ind. Swift Ltd. Investors are advised to hold it patiently. There is hardly any downward risk even if the market corrects.
DCM Shriram Industries has one of the most modern sugar factories at Daurala in U.P. with 8000 TCD capacity and the country’s largest alcohol plant with a capacity of 45,000 kilo litres of bulk alcohol. For December quarter its total sales was up 24 per cent and NP increased by 30 per cent to Rs.6.30 cr. posting a quarterly EPS of around Rs.5 on its current equity of Rs.13.70 cr. Sugar prices are expected to rise further in future, which will lead the company to report an EPS of Rs.18 for FY05. A strong buy for a target of Rs.150 in the next 15 months.
Textiles scrips have seen a smart rally and an analyst feels that most of the scrips are fairly valued against their FY06 earning. But Eastern Silk being in T2T segment is still trading reasonably cheap and can be accumulated for long term gains. The company has good growth plans for the future and is expected to close this financial year with an EPS of Rs.38 .The scrip has the potential to rise 50 per cent from the current level in a year’s time.
Purely on fundamentals National Oxygen, a very small company manufacturing oxygen, nitrogen gas etc looks fairly cheap and can rise sharply if the market remains bullish. For the December quarter it reported excellent set of numbers. Its Net Sales was up 60 per cent to Rs.3.85 cr. and NP zoomed 360 per cent to Rs.1.25 cr. posting a quarterly EPS of Rs.4 on equity of Rs.3.10 cr. Its OPM also improved substantially to 39 from 14 per cent last year. For FY05, it is likely to post an EPS of Rs.12 and the scrip can cross Rs.60 in medium to long term.
Haldyn Glass Gujarat Ltd is one of the major players in the Clear Glass Container manufacturing segment and has a diverse and reputed clientele including Glaxo, Cipla, McDowells, Shaw Wallace, Camlin etc. Its December’04 quarter was quite good as Sales grew by 17 per cent to Rs.13 cr. and NP jumped 80 per cent to Rs.1.10 cr. For the full year, it can post an EPS of Rs.7 and the share price can cross Rs.50 mark if the market sentiment remains bullish
Era Construction, a lesser known and relatively smaller company in infrastructure construction sector is reportedly faring well. Thanks to the growing economy and its bulging order book. For FY05, it may report an EPS of Rs.9 which may shoot up to Rs.14 in FY06. Accumulate it at every dip to get handsome returns in the long term.
Jupiter Biosciences is among the very few companies in the world specializing in peptide chemistry, organic chemistry, chiral chemistry and biotechnology. Recently it has entered into a general cooperation agreement with a Clariant Pharmaceutical Fine Chemicals of Germany. For the full year, it is expected to report an EPS of around Rs.20. The management is very media shy but the share price can rally sharply in future like Ind. Swift Ltd. Investors are advised to hold it patiently. There is hardly any downward risk even if the market corrects.
DCM Shriram Industries has one of the most modern sugar factories at Daurala in U.P. with 8000 TCD capacity and the country’s largest alcohol plant with a capacity of 45,000 kilo litres of bulk alcohol. For December quarter its total sales was up 24 per cent and NP increased by 30 per cent to Rs.6.30 cr. posting a quarterly EPS of around Rs.5 on its current equity of Rs.13.70 cr. Sugar prices are expected to rise further in future, which will lead the company to report an EPS of Rs.18 for FY05. A strong buy for a target of Rs.150 in the next 15 months.
Textiles scrips have seen a smart rally and an analyst feels that most of the scrips are fairly valued against their FY06 earning. But Eastern Silk being in T2T segment is still trading reasonably cheap and can be accumulated for long term gains. The company has good growth plans for the future and is expected to close this financial year with an EPS of Rs.38 .The scrip has the potential to rise 50 per cent from the current level in a year’s time.
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