STOCK WATCH
Last fiscal, Kilburn Eng (Code No: 522101) (Rs.53.60), a Williamsom Magor group company sold off its Baroda property to retire a part of its debt, and has brought down the total debt to Rs.24 cr. from Rs.87 cr. It is expected to wipe out its accumulated losses in the next 2 years. Besides to improve its working capital requirement, the company is coming out with 1:1 right issue at Rs.25 i.e. 50% discount to its CMP. Due to the strong uptrend in the industrial cycle, the company is doing very well and has good orders in hand position. For the year ending Sept’ 05, it is expected to post an EPS of Rs.12 on its current equity of Rs.6.75 cr. Share price has the potential to double in 12 months. A great buy.
Sathavahana Ispat (Code No: 526093) (Rs.33) has completed its expansion/modernization programme and commercial production has already begun. With this, it has nearly doubled its production capacity of pig iron to 2,10,000 TPA. Moreover the work for its Rs.170 cr. greenfeild project of 3,00,000 TPA of metallurgical coke with co-generation of power of 30MW is going on as per schedule. For FY06, it is expected to report a topline of Rs.280 cr. and bottomline of Rs.28~30 cr., which means an EPS of Rs.11~12. With a dividend yield of 5%, it is a strong buy with minimal downward risk from the current levels.
Of late, renewed interest is emerging in the Shipping sector in anticipation of a rise in freight rates. GE Shipping (Code No: 500620) (Rs.154.40), being the largest player in the private sector is all set to rise sharply in coming days. Currently, the company’s fleet size stands at 75 vessels – 44 ships aggregating 3 million DWT and 31 offshore units. Apart from its new building, it has ordered 12 vessels - 5 MR Product Tankers and 7 Offshore Supply Vessels. For FY05, it had reported an EPS of Rs.42 and declared Rs.9 dividend. For FY06, it can report an EPS of around Rs.35 and Rs.7/8 as dividend. Share price is expected to hit Rs.250 in 6~9 months. A very good long term bet with a good dividend yield as well.
After bottoming out at Rs.130, India Glycols (Code No: 500201) (Rs.157) has once again begun its upmove and is expected to hit the double century soon. With crude oil hovering around $ 60 a barrel and predicted to move up higher, MEG prices be bound to shoot up in future. Secondly, the duty on molasses has been reduced a few months back. Considering these factors and the company’s recent expansion, India Glycols could register Net Sales of Rs.725 cr. and NP of Rs.100 cr. in FY06. With an expected EPS of Rs.35, the share price can easily cross Rs.300 in the next 15 months. A very good buy.
Due to a strong uptrend in the industrial cycle, the demand for industrial gases has also increased substantially. Strong demand has led to higher prices, which in turn means better margins for manufacturers. Bhuruka Gas (Code No: 509728) (Rs.44.10), which produces a variety of gases like Oxygen, Nitrogen, Hydrogen, Argon etc and under takes turnkey projects for high - pressure gas pipelines of Cu/SS/Carbon Steel with cylinder handling etc is available quite cheap compared to its peers. Post restructuring, its equity stands at Rs.2.18 cr. With the face value of Rs.2.50 per share. For FY06 it is expected to report a top-line of Rs.60 cr. and NP of Rs.9 cr. leading to an EPS of Rs.10. Its share price can double in 12 months.
Gulshan Polyols (Code No: 532457) (Rs.19.25) is engaged in manufacturing Sorbitol, which is mainly used in cosmetics, pharma, food products, paper, dentrifice etc. Recently, it completed its backward integration to produce its basic raw material i.e. starch. Due to the strong demand from the user industry, the company is expected to perform much better in coming years. For FY06, it is estimated to post Sales of Rs.60 cr. and NP of Rs.3 cr., which means an EPS of around Rs.5. On its current equity of Rs.3 cr. and FV of Rs.5 per share. It is a dividend paying company and the share price can rise 50% in 6~9 months.
Of late, renewed interest is emerging in the Shipping sector in anticipation of a rise in freight rates. GE Shipping (Code No: 500620) (Rs.154.40), being the largest player in the private sector is all set to rise sharply in coming days. Currently, the company’s fleet size stands at 75 vessels – 44 ships aggregating 3 million DWT and 31 offshore units. Apart from its new building, it has ordered 12 vessels - 5 MR Product Tankers and 7 Offshore Supply Vessels. For FY05, it had reported an EPS of Rs.42 and declared Rs.9 dividend. For FY06, it can report an EPS of around Rs.35 and Rs.7/8 as dividend. Share price is expected to hit Rs.250 in 6~9 months. A very good long term bet with a good dividend yield as well.
After bottoming out at Rs.130, India Glycols (Code No: 500201) (Rs.157) has once again begun its upmove and is expected to hit the double century soon. With crude oil hovering around $ 60 a barrel and predicted to move up higher, MEG prices be bound to shoot up in future. Secondly, the duty on molasses has been reduced a few months back. Considering these factors and the company’s recent expansion, India Glycols could register Net Sales of Rs.725 cr. and NP of Rs.100 cr. in FY06. With an expected EPS of Rs.35, the share price can easily cross Rs.300 in the next 15 months. A very good buy.
Due to a strong uptrend in the industrial cycle, the demand for industrial gases has also increased substantially. Strong demand has led to higher prices, which in turn means better margins for manufacturers. Bhuruka Gas (Code No: 509728) (Rs.44.10), which produces a variety of gases like Oxygen, Nitrogen, Hydrogen, Argon etc and under takes turnkey projects for high - pressure gas pipelines of Cu/SS/Carbon Steel with cylinder handling etc is available quite cheap compared to its peers. Post restructuring, its equity stands at Rs.2.18 cr. With the face value of Rs.2.50 per share. For FY06 it is expected to report a top-line of Rs.60 cr. and NP of Rs.9 cr. leading to an EPS of Rs.10. Its share price can double in 12 months.
Gulshan Polyols (Code No: 532457) (Rs.19.25) is engaged in manufacturing Sorbitol, which is mainly used in cosmetics, pharma, food products, paper, dentrifice etc. Recently, it completed its backward integration to produce its basic raw material i.e. starch. Due to the strong demand from the user industry, the company is expected to perform much better in coming years. For FY06, it is estimated to post Sales of Rs.60 cr. and NP of Rs.3 cr., which means an EPS of around Rs.5. On its current equity of Rs.3 cr. and FV of Rs.5 per share. It is a dividend paying company and the share price can rise 50% in 6~9 months.
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