STOCK WATCH
Biotech sector was not a major beneficiary of the Budget. Hence Jupiter Bioscience share was beaten down substantially. But it’s a unique company with a blend of biotechnology and peptide chemistry. The new generation medicines, diagnostics and vaccines are based on Peptide Chemistry with a major focus on different branches of medicines like Neurology, Cardiology, Immunology, Oncology (Cancer related), HIV /AIDS, Autoimmune diseases. Due to lack of awareness and media shy promoters, it is discounted poorly at a mere PE of 6. But it will surely be re-rated sooner or later. Buy it and forget it for 2 years.
In this Budget, the government has increased the duty on molasses which may put some pressure on India Glycols, margnis. But at the same time, crude oil prices are touching new highs which will lead to a hike in MEG prices in near future. Moreover, company has recently expanded capacities which will have its full impact in coming quarters. Overall, it will continue to report better numbers and can end FY05 with an EPS of more than Rs.30 and the scrip may touch Rs.225 Buy at every decline
Precision Wires manufactures different varieties of Copper Winding Wires for different applications and with variety of insulation enamels like Polyester, Modified Polyester, Polyesterimide, Polyamide Imide, Dual coated in various combinations for specific uses, Polyurethane, Selfsolderable, Self bonding and PVA. It specialises in the production of hermetic grade as well as self solderable wires for air conditioning/refrigeration/auto-electrical and telecommunications industry. For FY05 it is expected to post an EPS of Rs.13 With a dividend yeild of around 5% at CMP this scrip has the potential to cross Rs.100 in the next 6 months.
Modern Steel has initiated a modernization & expansion plan at an estimated capital outlay of Rs.32 cr. in its Steel Melting Shop & Rolling Mills. The Steel Melting Shop capacity will be enhanced by 50000 MTA and the Rolling Mill capacity will be enhanced by 36000 MTA. With an expected EPS of Rs.25 this scrip is trading reasonably cheap. Company is also expected to declare dividend for FY05. A good buy in the steel sector.
In this Budget, the government has increased the duty on molasses which may put some pressure on India Glycols, margnis. But at the same time, crude oil prices are touching new highs which will lead to a hike in MEG prices in near future. Moreover, company has recently expanded capacities which will have its full impact in coming quarters. Overall, it will continue to report better numbers and can end FY05 with an EPS of more than Rs.30 and the scrip may touch Rs.225 Buy at every decline
Precision Wires manufactures different varieties of Copper Winding Wires for different applications and with variety of insulation enamels like Polyester, Modified Polyester, Polyesterimide, Polyamide Imide, Dual coated in various combinations for specific uses, Polyurethane, Selfsolderable, Self bonding and PVA. It specialises in the production of hermetic grade as well as self solderable wires for air conditioning/refrigeration/auto-electrical and telecommunications industry. For FY05 it is expected to post an EPS of Rs.13 With a dividend yeild of around 5% at CMP this scrip has the potential to cross Rs.100 in the next 6 months.
Modern Steel has initiated a modernization & expansion plan at an estimated capital outlay of Rs.32 cr. in its Steel Melting Shop & Rolling Mills. The Steel Melting Shop capacity will be enhanced by 50000 MTA and the Rolling Mill capacity will be enhanced by 36000 MTA. With an expected EPS of Rs.25 this scrip is trading reasonably cheap. Company is also expected to declare dividend for FY05. A good buy in the steel sector.
Hind Rectifiers is involved in developing, designing, manufacturing and marketing Power Semiconductor, Power Electronic Equipments and Railway Transportation Equipments. It caters to various industries like cement, steel, telecommunications, railways, defence, power, chemical, electronics etc. It has a reputed clientele including BHEL, BEML, HLL, BSNL, Indian Air Force, Tisco, ACC, NTPC etc. Due to the infrastructure boom, the company has a healthy order a book position and is expected to post an EPS of around Rs.30 for FY05, which can shoot up to Rs.45 in FY06. A strong long term bet.
Of late, a lot of companies in the financial sector like Srei International, Magma Leasing, Cholamandalam, Geojit, etc are buzzing. In the same sector one can also look at First Leasing, an 30 year old reputed Chennai based company. Its is fundamentally sound and regular dividend paying company. At CMP, the dividend yield works out to around 6% and is quoting at half of its book value of Rs.70 With an expected EPS of Rs.11 the scrip has the potential to cross Rs.50 in one year.
Of late, a lot of companies in the financial sector like Srei International, Magma Leasing, Cholamandalam, Geojit, etc are buzzing. In the same sector one can also look at First Leasing, an 30 year old reputed Chennai based company. Its is fundamentally sound and regular dividend paying company. At CMP, the dividend yield works out to around 6% and is quoting at half of its book value of Rs.70 With an expected EPS of Rs.11 the scrip has the potential to cross Rs.50 in one year.
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