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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)

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Friday, July 8, 2005

Eldeco Housing - Rs.113.00

Incorporated in 1985, Eldeco Housing & Industries Ltd (EHIL) is the flagship company of the Eldeco Group, which is a leading name in township development, group housing, commercial complexes, contract work and enjoys leadership position in Lucknow, Kanpur, Agra, Ghaziabad and Greater Noida. EHIL is also involved civil construction and housing. Since last 20 years, the company has completed more than 50 prestigious projects in Lucknow, Kanpur, Agra and Ghaziabad. Due to the easy availability of housing and property loans, real estate & construction activities have started booming in ‘B’ class towns. This means that the best is yet to come for EHIL.

EHIL has expertise in constructing all sorts of residential projects and can boast of successfully completing various projects including low-rise apartments, multi storeyed buildings, independent row houses to big townships. Last year, it completed and handed over the first phase of its prestigious township ‘Udyan’ in Lucknow and is currently working on another prestigious project ‘Suraksha Enclave’, which is nearing completion. Besides this, EHIL has finalised five new projects with a turnover of more than Rs.100 cr. With these projects, the value of the company’s total projects in hand goes over Rs.450 cr. keeping it booked for the next 5 years.

Fundamentally as well as financially, the company is quite sound and is backed by Eldeco’s strong brand image, which commands a healthy premium in the market place. For FY05, its turnover grew by 25% to Rs.41 cr. but the NP jumped 240% to Rs.5.50 cr. leading to an EPS of Rs.28 on its tiny equity of Rs.1.97 cr. For FY06, it may clock a turnover of Rs.60 cr. and NP of Rs.6.50 cr., which means an EPS of Rs.33. With such an impressive growth rate, its share price shot up smartly from its 52w low of Rs.18 to the recent high of Rs.143, before stabilising at Rs.115. Since the promoters hold 60% stake, the floating stock is only 7~8 lakh shares, which makes it a very volatile scrip. Long-term investors are advised to buy at current levels with a price target of Rs.250 in 12 months.

Posted by RAJAT AGRAWAL / MUMBAI at Friday, July 08, 2005

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