STOCK WATCH
Jindal Steel & Power (Code: 532286) (Rs1042.20) has completed its Phase 2 expansion way ahead in March 2005 thereby taking its sponge iron capacity to 1.37 million tonnes, power plant capacity to 265 MW and steel melting capacity to 1.15 million tonnes. Moreover, it has recently been included in the F&O list, which will increase its liquidity in the cash segment too. Although most metal scrips, including biggies like TISCO and SAIL, were hammered down recently, this scrip didn’t correct much. It will continue to report record high numbers in coming quarters.
Uttam Galva (Code: 513216)(Rs58.00) has recently commissioned its latest reversible cold rolling mill with an installed capacity of 2,50,000 MTA, which will enable the company to manufacture import-substitute-grade finished cold rolled sheets to cater to the exacting standards of the automobile and white goods industry. Its 31st March’05 numbers were pretty decent but the company disappointed by skipping dividend. It closed FY05 with an EPS of Rs. 12 and is expected to post EPS of Rs.16 for FY06. Share price has the potential to hit Rs.100 mark. Accumulate at sharp dips.
Uttam Galva (Code: 513216)(Rs58.00) has recently commissioned its latest reversible cold rolling mill with an installed capacity of 2,50,000 MTA, which will enable the company to manufacture import-substitute-grade finished cold rolled sheets to cater to the exacting standards of the automobile and white goods industry. Its 31st March’05 numbers were pretty decent but the company disappointed by skipping dividend. It closed FY05 with an EPS of Rs. 12 and is expected to post EPS of Rs.16 for FY06. Share price has the potential to hit Rs.100 mark. Accumulate at sharp dips.
Jindal Stainless Steel (Code: 532508) (Rs102.70) has signed a MOU with Steelway s.r.l. Italy Ltd to establish a world-class service centre near Gurgaon, Haryana, to promote the usage of stainless steel and to serve its existing customers better and thereby expand its market share. Besides, it has continued to report fantastic number for the Q4FY05 quarter as well and ended FY05 with an EPS of Rs.24. A good long term bet from the stainless steel sector.
Indoco Remedies (Code: 532612) (Rs285.00) which touched a high of Rs.440 is quoting near its all time low. It’s a leading pharma company manufacturing a wide range of products in various therapeutic segments such as anti- diabetics, antihypertensives, antispasmodics, anticold preparations, Stomatologicals, cough syrups, antifungals, NSAIDs, anti-infectives, antibiotics, anti-tuberculars, antimalarials, etc. for the domestic as well as export
markets. Last month, it commenced commercial production at its new US FDA approved tablet manufacturing facility at Verna in Goa, which has a manufacturing capacity of 65 million tablets per month. Recently, it also tied up with New Jersey based Strategic Resources USA, LLC, which will market Indoco’s products in the US market. The scrip is quoting at single digit PE and can be accumulated for long term.
Mahindra Ugine (Code: 504823) (Rs108.05) has again came out with splendid numbers. For the March’05 quarter its sales increase by 31% to 153 cr. but NP zoomed 175% to 15 cr. It ended FY05 with EPS of Rs.16 and may report more than Rs.20 EPS for FY06. It has also returned to the dividend list by declaring 30% dividend for FY05. Although mid-cap steel stocks look expensive compared to the current share price levels of TISCO & SAIL, they still have the potential to give 25~30% return in a year or so.
Shreyas Shipping (Code: 520151) (Rs.64.50), a leader in the container feeder segment, reported excellent numbers for March’05 with a total revenue of Rs.31.30 cr., up 63% and NP at Rs.12.70 cr. compared to a loss of Rs.0.53 cr. last year. For the full year it reported an EPS of Rs.13. excluding extraordinary income. It declared a total 20% dividend for FY05. In addition to the coastal trans shipment feeder services, it has been concentrating on developing the coastal shipping trade by promoting a 100% subsidiary to promote and expand its domestic service. For FY06, it can report an EPS of Rs.16~18. This scrip can be accumulated only at declines for a target of Rs.100 in 12 months time.
markets. Last month, it commenced commercial production at its new US FDA approved tablet manufacturing facility at Verna in Goa, which has a manufacturing capacity of 65 million tablets per month. Recently, it also tied up with New Jersey based Strategic Resources USA, LLC, which will market Indoco’s products in the US market. The scrip is quoting at single digit PE and can be accumulated for long term.
Mahindra Ugine (Code: 504823) (Rs108.05) has again came out with splendid numbers. For the March’05 quarter its sales increase by 31% to 153 cr. but NP zoomed 175% to 15 cr. It ended FY05 with EPS of Rs.16 and may report more than Rs.20 EPS for FY06. It has also returned to the dividend list by declaring 30% dividend for FY05. Although mid-cap steel stocks look expensive compared to the current share price levels of TISCO & SAIL, they still have the potential to give 25~30% return in a year or so.
Shreyas Shipping (Code: 520151) (Rs.64.50), a leader in the container feeder segment, reported excellent numbers for March’05 with a total revenue of Rs.31.30 cr., up 63% and NP at Rs.12.70 cr. compared to a loss of Rs.0.53 cr. last year. For the full year it reported an EPS of Rs.13. excluding extraordinary income. It declared a total 20% dividend for FY05. In addition to the coastal trans shipment feeder services, it has been concentrating on developing the coastal shipping trade by promoting a 100% subsidiary to promote and expand its domestic service. For FY06, it can report an EPS of Rs.16~18. This scrip can be accumulated only at declines for a target of Rs.100 in 12 months time.
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