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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

Sensex (LIVE- Intraday)

Wednesday, May 25, 2005

STOCK WATCH

Laffans Petro (Code No: 524522) (Rs.24) is engaged in manufacturing ethylene oxide derivatives such as Ethoxylates, Glycol Ethers, Acetates, Triethonal-amine, and Brake fluids. Due to higher demand and better price realisation on its products, Laffans Petrochemicals has improved its operating efficiency and is expected to perform much better in coming quarters. For FY05 ending Sept 2005, it may report an EPS of more than Rs.5 and the share price can appreciate by 50% in the next 12 months. A good medium term bet. Due to the uptrend in the Steel sector and strong demand for their products the refractory industry is enjoying the best of times. Raasi Refractories (Code No: 502271) (Rs.29) is a Hyderabad based small player that has posted a good turnaround. It also manufactures high temperature shuttle kiln, heavy-duty top and bottom pressing hydraulic presses, PLC controlled heavy-duty mechanical presses, high intensity mixing equipment and latest lab equipment such as Hot MOR testing machine and photometer. For the nine months ending 31st Dec’ 04, its topline tripled to Rs.16 cr. and it reported a NP of Rs.1.30 cr. against a Net loss of 1.20 cr. in the corresponding previous period. It is expected to report an EPS of Rs.5 for FY05, which may shoot upto Rs.7 for FY06.

The cool off in metal prices will have a positive impact on Ashok Leyland (Code No: 500477) (Rs.24) to a certain extent. It reported an excellent performance for the March 2005 quarter with Sales jumping 30% to Rs.1460 cr. and NP zooming 65% to Rs.143 cr. including Rs.33 cr. as other income. It posted an EPS of Rs.2.30 for FY05 and may report Rs.2.60 for FY06. The outlook for the commercial vehicle segment is very robust and may continue to grow in double digits. The share price has the potential to hit Rs.35 in 12~15 months

Since the last few weeks, companies engaged in agro and food products are attracting market attention with rising sharply on the bourses. At this stage, one can take some exposure in Jhunjhunwala Vanaspati (Code No: 519248) (Rs.26.50) and keep accumulating it at declines. It reported pretty decent numbers for the March 2005 quarter and ended FY05 with an EPS of Rs.8.5. In the current small cap bull run, this scrip can cross Rs.50.

In the Chemicals sector, National Peroxide (Code No: 500298) (Rs.4479.85) this Bombay Dyeing Group Company was very popular one time. It is engaged in manufacturing of Hydrogen Peroxide is trading reasonably cheap. It has a very small equity of Rs.2.30 cr. and very low floating stock since its face value is Rs.100 and the promoters hold 65%. Due to increased production and higher price realization, it reported fabulous numbers for FY05.Sales increased 30% to Rs.75 cr. and NP doubled to Rs.14.30 cr. reporting an EPS of Rs.620. For FY06 it can post an EPS of Rs.720

Lot of positive developments is taking place in Tinplate Company (Code No: 504966) (Rs.55.65). The company is already implementing a phase-wise expansion programme of its existing unit which will take its tinplate making capacity to around 4,00,000 TPA in the next few years. It is also planning to set up a greenfield project with state-of-the-art tinning line in Jamshedpur at an investment of Rs.100 cr. The company has also started offering cost effective packaging solutions to the end-user industry. Besides, it is putting more thrust on exports and intends to become a dominant player in South East and West Asian markets. For the March 2005 quarter it reported stunning numbers posting a quarterly EPS of Rs.5. For FY06, it can report an EPS of Rs.14. A strong long term buys.

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