STOCK WATCH
Belonging to Bajaj Group, Hercules Hoists (Code No: 505720) (Rs.967.65) is engaged in the manufacture of material handling equipment. It has a diverse product range encompassing Chain Pulley Blocks, Electric Hoists, Cranes, etc. that fulfill the storage, retrieval and material handling needs of companies around the world. It recently ventured into the new business of renewable energy/windmill/Projects/ in Maharashtra, which became operational in March 2005. The company has a very tiny equity of Rs.0.80 cr. and huge reserves of Rs.22 cr. leading to an BV of Rs.286. Looking to its share capital, 1:1 bonus is round the corner. For FY06 it can earn NP of 8 cr. on turnover of Rs.70 cr., which means an EPS of around Rs.100. Share can appreciate 50% in 12 months.
Even when the Sensex is at its all time high of around 7400, one can get scrips like Star Paper (Code No: 516022) (Rs.66.65) quoting at a forward PE of 4x. Although earlier there were concerns of rising input costs, but due to regular increase in paper prices, this sector is doing extremely well. Company is undergoing expansion in a phased manner and is taking various initiatives to achieve high operational efficiency. For FY06 it is expected to report Sales of around Rs.220 cr. and NP of Rs.23 cr. leading to an EPS of Rs.15. Its share price can double from the current level Murudeshwar Ceramics was in a similar situation a few months back.
Even when the Sensex is at its all time high of around 7400, one can get scrips like Star Paper (Code No: 516022) (Rs.66.65) quoting at a forward PE of 4x. Although earlier there were concerns of rising input costs, but due to regular increase in paper prices, this sector is doing extremely well. Company is undergoing expansion in a phased manner and is taking various initiatives to achieve high operational efficiency. For FY06 it is expected to report Sales of around Rs.220 cr. and NP of Rs.23 cr. leading to an EPS of Rs.15. Its share price can double from the current level Murudeshwar Ceramics was in a similar situation a few months back.
Few broking firms rate the Metal sector as value buy and are busy accumulating leading metal scrips before they come out with their June numbers. Once the sentiment turns positive for this sector, small metal scrips will shoot up sharply. Aggressive investors can buy Ashirwad Steel (Code No: 526847) (Rs.31) at CMP. Since the company has still not announced its March numbers and doesn’t pay dividend, the scrip is poorly discounted and avoided by marketmen. But for the past 3 quarters it has already posted an EPS of Rs.11.50. Sponge iron prices have cooled off a bit from their recent high but still their demand is expected to be robust due to huge expansion plan undertaken by all the major steel manufactures. It may report an EPS of Rs.13 for FY05 and Rs.12 for FY06. Share price can double in 12~15 months.
Share price of Syncom Formulation (Code No: 524470) (Rs.95.50) is expected to rally sharply after its results are out on 25th July. It has already posted quite impressive numbers for FY05 when Sales jumped 20% to Rs.54 cr. but its NP zoomed by 135% to Rs.7 cr. registering an EPS of Rs.13 on its equity of Rs.5.34 cr. The company is planning an aggressive entry into the branded herbal market of South Africa and Europe. It’s also increasing its product offering upto 500 products from the current 250 products in ethical, generics, OTC and herbal range in the next 2~3 yrs. For FY06, the company can post an EPS of more than Rs.15. Accumulate at sharp dips.
Recently there has been lot of talk about benefit to ethanol manufacturers as the ethanol price being fixed around Rs.19 or so. In such a scenario one can have a look at Hazoor Media (Code No: 532467) (Rs.14). It has entered into a joint venture project with ‘Omkar Petrochemicals Limited’ to produce 30K litres per day of Ethanol. Moreover, it has also made its foray into the power sector to set up 10 MW co-generation power project for generation and distribution of grid quality power from biomass resources using steam turbine technology. Besides, it has huge real estate of 1,28,000 Sq mtr worth Rs.28 cr. against its current market cap of Rs.11 cr. With an expected EPS of Rs.5 and BV of Rs.20, the share price can appreciate 50% in 6 months.
Share price of Syncom Formulation (Code No: 524470) (Rs.95.50) is expected to rally sharply after its results are out on 25th July. It has already posted quite impressive numbers for FY05 when Sales jumped 20% to Rs.54 cr. but its NP zoomed by 135% to Rs.7 cr. registering an EPS of Rs.13 on its equity of Rs.5.34 cr. The company is planning an aggressive entry into the branded herbal market of South Africa and Europe. It’s also increasing its product offering upto 500 products from the current 250 products in ethical, generics, OTC and herbal range in the next 2~3 yrs. For FY06, the company can post an EPS of more than Rs.15. Accumulate at sharp dips.
Recently there has been lot of talk about benefit to ethanol manufacturers as the ethanol price being fixed around Rs.19 or so. In such a scenario one can have a look at Hazoor Media (Code No: 532467) (Rs.14). It has entered into a joint venture project with ‘Omkar Petrochemicals Limited’ to produce 30K litres per day of Ethanol. Moreover, it has also made its foray into the power sector to set up 10 MW co-generation power project for generation and distribution of grid quality power from biomass resources using steam turbine technology. Besides, it has huge real estate of 1,28,000 Sq mtr worth Rs.28 cr. against its current market cap of Rs.11 cr. With an expected EPS of Rs.5 and BV of Rs.20, the share price can appreciate 50% in 6 months.
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