STOCK WATCH

Syncom Formulation (Code No: 524470) (Rs.86.00) has once again come out with flying colours for FY05. Its net Sales grew by 55% to Rs.17.40 cr. and NP increased 40% to Rs.2.30 cr. inspite of higher tax provisioning of Rs.2.30 cr. The company is planning an aggressive entry into the branded herbal market of South Africa and Europe. Its also plans to increase its product offering to 500 products from the current 250 products in ethical, generics, OTC and herbal range in the next 2~3 yrs. For FY06, the company may report an EPS of Rs.18 on its current equity of Rs.5.30 cr. Its share price has the potential to double in 12 months.

Pacific Cotspin (Code No: 531118) (Rs.9.40), a relatively lesser known company, is a Rs.120 cr. Kolkata based, 100% EOU engaged in the manufature of cotton yarn. Due to the growing demand and better prospects of cotton yarn it has turned around this year and reported fantastic figures for the March’05 quarter. Net Sales have increased by around 20% to Rs.40 cr. whereas its NP has zoomed 700% to Rs.3.51 due to better operating efficiency. For FY06 it can report an EPS of Rs.5. Aggressive investors can accumulate this scrip for handsome gains in the long run.

Inspite of impressive numbers, the Bihar Caustic (Code No: 500057) (Rs.54.40), scrip was hammered on news of a breakdown in its power plant and the low dividend announcement. This company is, however very strong and will continue to report better number in the future as well. Scrip has a strong support at Rs.50~52 level and once the market sentiment improves it can easily cross the Rs.80 mark. For FY06, it is expected to post an EPS of Rs.15.

The March’05 numbers of Navabharat Ferro Alloys (Code No: 513023) (Rs.371.00) are expected to be better as the operations of its new (4th Furnace) of 27.6 MVA at Paloncha on February 17, 2005. There are also market rumours that the company is likely to reward investors with handsomely with a good dividend or bonus or a stock split. It is expected to end FY05 with an EPS of around Rs.100 and the scrip is currently trading at a less than 4 PE multiple.

Spanco Telesystem (Code No: 508976) (Rs.75.05), is a growing player in the BPO segment, which came out with right cum public issue at Rs.25 last year, has reported superb numbers for March 2005. Both its topline and bottomline doubled to Rs.42.50 cr. and Rs.4.20 cr. respectively compared to last year. The company is expanding its business and is aggressively setting up new call centres. For FY06, it can report an EPS of more than Rs.10 and the share price can double in a year’s time

Following the footsteps of Ador Welding, Ador Fontech (Code No: 530431) (Rs.67.00), its associate company has posted quite robust numbers for March 2005 numbers. Due to the ongoing infrastructure boom, Ador Fontech’s total revenue grew 55% to Rs.17.50 cr. and NP increased by 60% to 1.44 cr. excluding extraordinary items. This means an EPS of Rs.4 Q4FY05. Besides, the company has declared 35% dividend (including 5% silver jubliee dividend) which gives and dividend yield of more than 5% at CMP. For FY06, it can post an EPS of Rs.12 on its current equity of Rs.3.50 cr. and the share price can cross Rs.100 in next 6 months

Post restructuring and reduction in its debts, Mangalam Cement (Code No: 502157) (Rs.72.50) has started to post decent numbers from March’05 quarter. Its net sales increased by 12% to Rs.82 cr. and NP has doubled to Rs.6 cr. excluding other income. For FY05 ending Sept 2005, it can report Sales of Rs.300 cr. and NP of Rs.24 cr. leading to an EPS of Rs.8.50. For FY06, it can report much better numbers and can post an EPS of Rs.12~14. A strong buy.