STOCK WATCH
In the sugar sector, Indian Sucrose Ltd. (Code: 500319) (Rs.31.70), a small sugar company, seems a pure value buy at current levels. It has already expanded its crushing capacity from 3500 to 5000 TCD and can easily expand to 6000 TCD in the near future. Besides, it has acquired a sugar unit in Dhuri, Punjab, having a capacity of 2500 TCD, which can be merged with it later on. For the first qtr. of June’06, its sales spurted by 60% to Rs.35 cr. and net profit increased by 45% to Rs.3.90 cr. reporting an EPS of Rs.2.50 for the quarter. Although marketmen are lukewarm on the sugar sector, it cannot be written off and may bounce back with better sugar prices. As such, Indian Sucrose may end FY07 with sales of Rs.150 cr. and net profit of Rs.14 cr. i.e. EPS of Rs.9 on its equity of Rs.15.40 cr. With the company foraying into retail segment aggressively and having a distillery unit which produces four well known brands of rum, the scrip is trading fairly cheap and can be bought for handsome gains for the long-term.
Despite great expectations, Jupiter Bioscience Ltd. (Code: 524826) (Rs.115), has been a gross underperformer. However, we remain bullish as it is the only peptide company in Asia with technology to manufacture peptides from the basic stage and is among the ten-peptide companies in the world. Recently, it has acquired a manufacturing facility from M/s. Aurobindo Pharma Ltd., in Medak District of Andhra Pradesh as a part of its expansion programme for commercialisation of Speciality APIs, Chiral Intermediates and key Organic Intermediates and Bulk Peptide raw materials. Moreover, it is planning to set up a manufacturing base in USA for catering to the regulated markets. For the June’06 quarter, its sales and net profit increased by 10% to 18 cr. and Rs.4.50 cr. respectively which may shoot up to Rs.100 cr. and Rs.23 cr. for FY07. At a P/E of less than 5, it’s a screaming buy.
On the back of discouraging numbers for the June’06 quarter, the share price of Hyderabad Industries Ltd. (Code: 509675) (Rs.311) has tumbled down sharply giving good opportunity for long term investors to get in. For FY06, its top-line grew by 10% to Rs.450 cr. whereas its net profit quadrupled to Rs.38 cr. reporting an EPS of Rs.53. This is in spite the fact that its Jasidih plant was shut down for 3 months due to a strike. Although its profit margin is under pressure due to stiff competition it will still report better numbers in absolute terms for FY07 as it has recently started the commercial production of asbestos cement sheets and accessories at its new unit located at eastern Uttar Pradesh. Moreover, it is implementing a Rs.100 cr. expansion programme by setting up of two fibre cement sheet units and one autoclaved aerated concrete blocks manufacturing facility. For FY07, it may a clock a turnover of Rs.500 cr. with net profit of Rs.40 cr. i.e. EPS of Rs.56 on its tiny equity of Rs.7.50 cr. Having a book value of around Rs.180, the scrip is ripe for a bonus and may also announce a stock split this fiscal.
In a short span of time, Electrotherm India Ltd. (Code: 526608) (Rs.243), a leading manufacturer of crucial induction melting furnace has grown and diversified aggressively to include steel and automotive business as well. Today, it also manufactures Sponge Iron, TMT Bars, Billets and Ductile Iron Pipes. But the biggest growth driver is its automotive division ‘Indus Elec-trans’ which manufacture electric vehicles and has already launched eco friendly bikes under the brand name ‘YOBykes’. These bikes run on rechargeable battery and don’t need petrol or licence or registration to drive. The company has a capacity to manufacture up to 1.2 lakh bikes per year and is planning to increase it to over 5 lakh bikes. For the June’06 quarter, its sales jumped 65% to Rs.91 cr. and net profit grew 50% to Rs.5.80 cr. The company is raising around Rs.100 cr. through preferential allotment route, which may dilute the equity to the extent of Rs.8.75 cr. For the full year FY07, it is estimated to record a turnover of Rs.425 cr. with net profit of Rs.28 cr. (excluding deferred tax), which works out to an EPS of Rs.32 on its diluted equity. A good bet for the medium to long-term.
Despite great expectations, Jupiter Bioscience Ltd. (Code: 524826) (Rs.115), has been a gross underperformer. However, we remain bullish as it is the only peptide company in Asia with technology to manufacture peptides from the basic stage and is among the ten-peptide companies in the world. Recently, it has acquired a manufacturing facility from M/s. Aurobindo Pharma Ltd., in Medak District of Andhra Pradesh as a part of its expansion programme for commercialisation of Speciality APIs, Chiral Intermediates and key Organic Intermediates and Bulk Peptide raw materials. Moreover, it is planning to set up a manufacturing base in USA for catering to the regulated markets. For the June’06 quarter, its sales and net profit increased by 10% to 18 cr. and Rs.4.50 cr. respectively which may shoot up to Rs.100 cr. and Rs.23 cr. for FY07. At a P/E of less than 5, it’s a screaming buy.
On the back of discouraging numbers for the June’06 quarter, the share price of Hyderabad Industries Ltd. (Code: 509675) (Rs.311) has tumbled down sharply giving good opportunity for long term investors to get in. For FY06, its top-line grew by 10% to Rs.450 cr. whereas its net profit quadrupled to Rs.38 cr. reporting an EPS of Rs.53. This is in spite the fact that its Jasidih plant was shut down for 3 months due to a strike. Although its profit margin is under pressure due to stiff competition it will still report better numbers in absolute terms for FY07 as it has recently started the commercial production of asbestos cement sheets and accessories at its new unit located at eastern Uttar Pradesh. Moreover, it is implementing a Rs.100 cr. expansion programme by setting up of two fibre cement sheet units and one autoclaved aerated concrete blocks manufacturing facility. For FY07, it may a clock a turnover of Rs.500 cr. with net profit of Rs.40 cr. i.e. EPS of Rs.56 on its tiny equity of Rs.7.50 cr. Having a book value of around Rs.180, the scrip is ripe for a bonus and may also announce a stock split this fiscal.
In a short span of time, Electrotherm India Ltd. (Code: 526608) (Rs.243), a leading manufacturer of crucial induction melting furnace has grown and diversified aggressively to include steel and automotive business as well. Today, it also manufactures Sponge Iron, TMT Bars, Billets and Ductile Iron Pipes. But the biggest growth driver is its automotive division ‘Indus Elec-trans’ which manufacture electric vehicles and has already launched eco friendly bikes under the brand name ‘YOBykes’. These bikes run on rechargeable battery and don’t need petrol or licence or registration to drive. The company has a capacity to manufacture up to 1.2 lakh bikes per year and is planning to increase it to over 5 lakh bikes. For the June’06 quarter, its sales jumped 65% to Rs.91 cr. and net profit grew 50% to Rs.5.80 cr. The company is raising around Rs.100 cr. through preferential allotment route, which may dilute the equity to the extent of Rs.8.75 cr. For the full year FY07, it is estimated to record a turnover of Rs.425 cr. with net profit of Rs.28 cr. (excluding deferred tax), which works out to an EPS of Rs.32 on its diluted equity. A good bet for the medium to long-term.
No comments:
Post a Comment