STOCK WATCH
Aarti Industries (Code: 524208) (Rs91.00) has world-class expertise in the development and manufacturing of basic bulk chemicals, dyes & pigment intermediates, agrochemicals along with their intermediates, rubber chemicals, surfactant intermediates and speciality chemicals. It is amongst the largest producers of Benzene based basic and intermediate chemicals in India. For FY05, is it is expected to report an EPS of Rs13. A good medium term bet.
Andhra Sugar (NSE Listed) (Rs116.00) is a fully integrated manufacturer of Chlor Alkali & Sugar. Both its products are witnessing higher demand and better price realization and to cash in on the prospective demand supply gap in sugar, it is increasing its capacity to 12,500 TCD from current 9,000 TCD. For full year FY05, it is expected to post an EPS of more than Rs14 and Rs18~20 for FY06. Accumulate it at every sharp dip.
Andhra Sugar (NSE Listed) (Rs116.00) is a fully integrated manufacturer of Chlor Alkali & Sugar. Both its products are witnessing higher demand and better price realization and to cash in on the prospective demand supply gap in sugar, it is increasing its capacity to 12,500 TCD from current 9,000 TCD. For full year FY05, it is expected to post an EPS of more than Rs14 and Rs18~20 for FY06. Accumulate it at every sharp dip.
Medi Caps Ltd (Code: 523144) (Rs48.00) is the market leader in the production of gelatine capsules, which are widely used to package drugs, vitamins, antibiotics and cosmetics. It supplies to all major pharma companies like Wockhardt, Glaxo, Lupin, IPCA, Nicholas, Pfizer, Cadila etc. It has huge reserves of Rs18 cr. and investments of Rs11 cr. on a small equity of Rs3.20 cr. and is expected to post an EPS of Rs12 for FY05. A strong buy at CMP.
While most construction & infrastructure scrips are discounted 12~15 times of their FY06 earnings, Valecha Enginering (Code: 532389) (Rs136.00) is still trading reasonably cheap. It has a very small equity of Rs4.50 cr. and has planned 1: 5 right issue in future. With huge orders worth Rs450 cr. in hand, it is likely to end FY05 with an EPS of Rs17 which can shoot up to Rs24 in FY06. Its share price can easily cross Rs200 mark in the next 6 months. An excellent pick.
While most construction & infrastructure scrips are discounted 12~15 times of their FY06 earnings, Valecha Enginering (Code: 532389) (Rs136.00) is still trading reasonably cheap. It has a very small equity of Rs4.50 cr. and has planned 1: 5 right issue in future. With huge orders worth Rs450 cr. in hand, it is likely to end FY05 with an EPS of Rs17 which can shoot up to Rs24 in FY06. Its share price can easily cross Rs200 mark in the next 6 months. An excellent pick.
To cater to the increasing international demand for polyester, Indo Rama Synthetics (Code: 500207) (Rs65.00) is doubling its polyester staple fiber (PSF) and partially oriented yarn (POY) capacity from 3,00,000 TPA to 6,00,000 TPA at its Butibori plant. It has already arranged the term loan from a German bank and other Indian institutions. For FY05 and FY06, it may report an EPS Rs7 and Rs10 respectively.
SRF Ltd (Code: 503806) (82.00), the largest manufacturer of Nylon Tyre cord fabrics, refrigeration gases and belting fabric has ambitious expansion and modernisation plans for industrial synthetic fabrics business at an investment of Rs285 cr. Besides, it has forayed into pharma chemicals business to leverage its expertise in chemicals by focussing on fluorine, chlorine and bromine segment of intermediate drugs. For FY05, it is expected to post an EPS of more than Rs8 and Rs12 for FY06. Investors can expect decent returns in the medium to long term.
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