STOCK WATCH
Surana Telecom (Code No: 517530)(Rs.29) has posted excellent numbers for FY05. Its Net sales jumped 300% to Rs.115 cr. and NP increased by 400% to Rs.12.50 cr. posting quarterly EPS of Rs.5.5 and declared 20% dividend. Besides, the management is planning to restructure the company by de-merging its infrastructure business into a new company and let Surana Telecom concentrate on the telecom business. Its also plans to raise some capital through preferential issue, which may dilute equity. But inspite of that, it can report an EPS of Rs.12 for FY06 considering its strong order book position. Its share price has the potential to cross Rs.50 soon.
Sanjivani Parenteral (Code No: 531569)(Rs.56) one of the fastest growing companies in the contract manufacturing of pharmaceuticals, has reported mind boggling numbers for FY05. Its top line increased by 350% to Rs.21 cr. and NP was Rs.1.22 cr. against Rs.0.01 cr. last year. It recorded the highest ever sales this quarter and the growth in topline shows how aggressive the company is. The company has bagged good orders from the Kerala Government. It also plans to raise Rs.2 cr. for expansion through preferential allotment to promoters. For FY06, it can report an EPS of Rs.12 and the share price can easily cross Rs.100 mark in 2005 itself.
Monnet Ispat(Code No:513446) (Rs.154) once again came out with stunning results. Its sales grew by 60% to Rs.235 cr. and NP zoomed 370% to Rs.36 cr. posting an EPS of Rs.39 for FY05. Although its operating margins are bit down but in absolute terms it will keep increasing due to expansion. For FY06, the company is expected to report an EPS of Rs.45. These impressive numbers are not factored in the share price and it’s a good chance for investors to accumulate it with a price target of Rs.200 in the coming 6 months.
Sanjivani Parenteral (Code No: 531569)(Rs.56) one of the fastest growing companies in the contract manufacturing of pharmaceuticals, has reported mind boggling numbers for FY05. Its top line increased by 350% to Rs.21 cr. and NP was Rs.1.22 cr. against Rs.0.01 cr. last year. It recorded the highest ever sales this quarter and the growth in topline shows how aggressive the company is. The company has bagged good orders from the Kerala Government. It also plans to raise Rs.2 cr. for expansion through preferential allotment to promoters. For FY06, it can report an EPS of Rs.12 and the share price can easily cross Rs.100 mark in 2005 itself.
Monnet Ispat(Code No:513446) (Rs.154) once again came out with stunning results. Its sales grew by 60% to Rs.235 cr. and NP zoomed 370% to Rs.36 cr. posting an EPS of Rs.39 for FY05. Although its operating margins are bit down but in absolute terms it will keep increasing due to expansion. For FY06, the company is expected to report an EPS of Rs.45. These impressive numbers are not factored in the share price and it’s a good chance for investors to accumulate it with a price target of Rs.200 in the coming 6 months.
In the textile sector, Gupta Synthetics (Code No: 514116) (Rs.67) still looks good inspite of the sharp run up in its share price. Its March’05 quarter was excellent with sales increasing by 250% to Rs.36 cr. and NP stood at Rs.1.25 cr. compared to Rs.0.13 cr. last year. This Surat based company is engaged in texturising, twisting, dyeing of yarn and weaving of fabrics and is having good times after the removal of quota. For FY05, it posted an EPS of Rs.19 and for FY06 it may post an EPS of Rs.25. Accumulate at dips.
Steelcast Ltd (Code No: 513517) (Rs.70), an ISO 9001:2000 unit, is a four decade old company based in Gujarat and engaged in manufacturing high integrity Carbon, Low Alloy and Manganese Steel Castings with Shell and Sand Foundries. It has been catering to a host of Original Equipment Manufacturing (OEM) Industry sectors like Earth Moving, Mining, Mineral Processing & Crushing, Steel Plants, Cement, Electro-Locomotive, Oil Field Equipment (OFE), Power, Aerobridge, Shipping and Values & Pumps. For FY05, it reported net sales of Rs.52 cr. and NP of Rs.3 cr. leading to an EPS of Rs.9 on its current equity of Rs.3.60 cr. For FY06, it can report a EPS of Rs.11 and the share price has the potential to touch Rs.100 in 12-15 months.
Aggressive investors and speculators can take a look at Netvision Web Technology (Code No: 532010) (Rs.16.75) a small IT company based in Gujarat for a short term play. The scrip is ruling almost at its 52 week low and is expected to declare a dividend on 9th May. It has good order book position and has recently launched wireless Internet Technology from which it expects to a generate revenue of Rs.50 cr. For FY05, it reported an EPS of Rs.8.Its share price can touch Rs.20 if the market sentiment improves.
Steelcast Ltd (Code No: 513517) (Rs.70), an ISO 9001:2000 unit, is a four decade old company based in Gujarat and engaged in manufacturing high integrity Carbon, Low Alloy and Manganese Steel Castings with Shell and Sand Foundries. It has been catering to a host of Original Equipment Manufacturing (OEM) Industry sectors like Earth Moving, Mining, Mineral Processing & Crushing, Steel Plants, Cement, Electro-Locomotive, Oil Field Equipment (OFE), Power, Aerobridge, Shipping and Values & Pumps. For FY05, it reported net sales of Rs.52 cr. and NP of Rs.3 cr. leading to an EPS of Rs.9 on its current equity of Rs.3.60 cr. For FY06, it can report a EPS of Rs.11 and the share price has the potential to touch Rs.100 in 12-15 months.
Aggressive investors and speculators can take a look at Netvision Web Technology (Code No: 532010) (Rs.16.75) a small IT company based in Gujarat for a short term play. The scrip is ruling almost at its 52 week low and is expected to declare a dividend on 9th May. It has good order book position and has recently launched wireless Internet Technology from which it expects to a generate revenue of Rs.50 cr. For FY05, it reported an EPS of Rs.8.Its share price can touch Rs.20 if the market sentiment improves.
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