STOCK WATCH
Power sector is expected to be a major beneficiary of the forthcoming budget and GIPCL can be accumulated pre-budget for handsome gains. The company is in the process of doubling the capacity of its Surat Lignite Power plant (SLPP) to 500 MW from 250 MW at a capex of Rs1000 cr. The Government of Gujarat will divest its stake sooner or later, which makes it a strong takeover target and a strong upside re-rating going forward. With an expected EPS of Rs11/12, this scrip is trades cheap and is a case of a strong buy.
Paper prices are expected to rise in coming months creating a buzz in paper stocks. Star Paper, a Duncan Goenka group company, is trading relatively cheap compared to its peers. It is expected to post an EPS of Rs13 for FY05 and its share price has the potential to double in a year’s time. Grab it before it’s too late.
Paper prices are expected to rise in coming months creating a buzz in paper stocks. Star Paper, a Duncan Goenka group company, is trading relatively cheap compared to its peers. It is expected to post an EPS of Rs13 for FY05 and its share price has the potential to double in a year’s time. Grab it before it’s too late.
Sathavana Ispat has ambitious long term growth plans and is increasing the capacity of its pig iron plant to 2,10,000 TPA from 1,20,000 TPA. Last year, it had set up non recovery type Coke Oven facility with a capacity of 150,000 TPA which will reduce its input costs to a greater extent. With an expected EPS of Rs12, its share price can cross Rs80 in the medium term and Rs120 in the longer term.
India Glycols, belonging to the Bhartia family of Jubilant Organosys, is the only producer of mono etylene glycol (MEG) using the organic route of molasses and had recently expanded its capacity from 225 MT/day to 350 MT/day. Its product is in high demand and the company is expected to perform well over the next 2 years. For FY05, it is expected to post an EPS of Rs28. It is a screaming buy at every dip as the scrip is expected to touch Rs250 in the medium term. Hold it patiently.
India Glycols, belonging to the Bhartia family of Jubilant Organosys, is the only producer of mono etylene glycol (MEG) using the organic route of molasses and had recently expanded its capacity from 225 MT/day to 350 MT/day. Its product is in high demand and the company is expected to perform well over the next 2 years. For FY05, it is expected to post an EPS of Rs28. It is a screaming buy at every dip as the scrip is expected to touch Rs250 in the medium term. Hold it patiently.
Being in T2T segment, Lincoln Pharma has been avoided by investors and the scrip is lying low. But this is the best time to accumulate it with a longer term perspective. The company is reportedly doing well and has given greater thrust to Research & Development in formulations. It is also getting its ‘Namsafe’ product patented. Its share price can easily rise 50 per cent from the current level once it exits from T2T. Long term investors are advised to buy and hold for at least 1 year.
Every analyst is bullish on the future prospects of infrastructure companies as the budget may be quite favourable to them. One such company missed out by FIIs and mutual funds is Petron Engineering. It has very healthy order book position and is expected to receive some more big orders. With an expected EPS of Rs12, the scrip is trading cheap and can rise sharply in future. Buy with a medium term target of Rs150.
Share prices of caustic soda manufacturing companies are expected to rise sooner or later as the product prices have risen smartly over the last few days. Bihar Caustic, an Aditya Birla group company, which has an installed capacity of 51,000 TPA of caustic soda is planning to increase its capacity by 50 per cent and is also converting its existing mercury technology to energy efficient and environment friendly membrane technology. The share is trading at less than 5 PE leaving ample scope to rise by 50 per cent in the medium term.
Every analyst is bullish on the future prospects of infrastructure companies as the budget may be quite favourable to them. One such company missed out by FIIs and mutual funds is Petron Engineering. It has very healthy order book position and is expected to receive some more big orders. With an expected EPS of Rs12, the scrip is trading cheap and can rise sharply in future. Buy with a medium term target of Rs150.
Share prices of caustic soda manufacturing companies are expected to rise sooner or later as the product prices have risen smartly over the last few days. Bihar Caustic, an Aditya Birla group company, which has an installed capacity of 51,000 TPA of caustic soda is planning to increase its capacity by 50 per cent and is also converting its existing mercury technology to energy efficient and environment friendly membrane technology. The share is trading at less than 5 PE leaving ample scope to rise by 50 per cent in the medium term.
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