STOCK WATCH
To improve liquidity, Gemini Communication (Code:532318) (Rs.204.50) went for a stock- split by dividing its Rs.10 share into 2 shares of Rs.5 each. It is the first and only company in India engaged in the design and manufacture of RFid products with technology assistance from Texas Instruments. It has developed a range of off-the-shelf RFid solutions for various applications. For future growth, it is setting up a RFid manufacturing unit at Baddi in Himachal Pradesh at an investment of around Rs.20-22 cr. and may start the manufacture of RFid tags later in this calendar year. For the June’06 quarter, its total revenue increased by 35% to Rs.33 cr. whereas net profit zoomed 170% to Rs.2.81 cr. For FY07, it is expected to report a top-line of Rs.185 cr. and bottom-line of Rs.18 cr., which translates into EPS of Rs.18 on its diluted equity of Rs.4.88 cr. on the face value of Rs.5 per share. Applying a reasonable discounting of 14-18 times, this scrip could trade between Rs.260-320.
After hitting a high of Rs.200, PBA Infrastruture (Code:532676) (Rs.97.75) has corrected sharply and is currently trading around Rs.100. It is engaged in execution of civil engineering projects and specialises in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects. Its clients include various government agencies viz. NHAI, CIDCO, MSSRDC Ltd, Airport Authority of India and PWDs of numerous State governments. It has a healthy order book of more than Rs.500 cr. For the June’06 quarter, it reported revenue of Rs.62 cr. with net profit of Rs.2.82 and declared Rs.1.50 as dividend for FY06. For FY07, it may clock a turnover of Rs.250 cr. and net profit of Rs.14 cr. leading to an EPS of Rs.10 on its current equity of 13.50 cr. If the market sentiment remains positive, this scrip can easily give Rs.25-30% return in 6-9 months.
When distilleries and liquor scrips are trading at rich valuations, GM Breweries (Code:507488) (Rs.112.40) is available for a song at a market cap of Rs.100 cr. It is the single largest manufacturer of country liquor in Maharashtra and enjoys virtual monopoly in the districts of Mumbai and Thane. With an installed capacity of more than 55 million litres of country liquor per annum, it is currently working at 75% capacity utilization. It has made a strong turnaround in FY06 and has moved ahead with excellent performance for June’06 quarter as well. Interestingly, it hasn’t diluted equity since its IPO in 1994 and has an uninterrupted record of dividend payment from the day of its listing. For FY07, it may report sales of Rs.185 cr. and net profit of Rs.14 cr. i.e. EPS of Rs.15 on its equity of Rs.9.36 cr. At a reasonable valuation, it should trade in the range of Rs.180-210. Investors are advised to buy as technically scrip has bottomed out and the risk of further downfall is negligible.
Once again small caps have started to move. Hence Hazoor Media (Code:532467) (Rs.14.12) is being recommended for risk-taking investors as the company is betting high on real estate projects. It has planned a real estate development project at an outlay of Rs.110 cr. near Amby Valley Citi. It is also in the process of identifying large track of land for developing Integrated Township project at Pune. As a business strategy, it is planning to enter into joint ventures with land owners and other established builders & developers who own the real estate properties at strategic locations. For FY06, its top-line grew by 15% to Rs.14 cr. and net profit grew marginally by 7% to Rs.4.50 cr. registering an EPS of Rs.5 on its equity of Rs.3.50, with face value of Rs.4 per share. If things pan out as planned, the company it will enter into a different league altogether. Scrip has the potential to test its high of Rs.23 in this calendar year itself.
Control Print (Code:522295) (Rs.63.90) is the undisputed market leader in the coding and marking machinery with a market share of around 40%. It has a product range of contact coders, superior touch coders, specialized metal marking systems, sophisticated ink jet coders and also advanced laser coders which can be used to print on any type of surface like plastic, glass bottle, paper, wood, steel etc. The scrip has corrected by more than 50% due to its not-so-encouraging numbers for the last two quarters. For the June’06 quarter, its sales improved by 5% to Rs.9.40 cr. whereas net profit declined marginally to Rs.1.96 cr. Despite this, for full year FY07, it may report sales of Rs.50 cr. and net profit of Rs.7 cr. which means an EPS of Rs.9 on its equity of Rs.7.40 cr. Being in such a fast growing sector, this scrip deserves much higher valuation and can give handsome returns if held for 18-24 months.
After hitting a high of Rs.200, PBA Infrastruture (Code:532676) (Rs.97.75) has corrected sharply and is currently trading around Rs.100. It is engaged in execution of civil engineering projects and specialises in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects. Its clients include various government agencies viz. NHAI, CIDCO, MSSRDC Ltd, Airport Authority of India and PWDs of numerous State governments. It has a healthy order book of more than Rs.500 cr. For the June’06 quarter, it reported revenue of Rs.62 cr. with net profit of Rs.2.82 and declared Rs.1.50 as dividend for FY06. For FY07, it may clock a turnover of Rs.250 cr. and net profit of Rs.14 cr. leading to an EPS of Rs.10 on its current equity of 13.50 cr. If the market sentiment remains positive, this scrip can easily give Rs.25-30% return in 6-9 months.
When distilleries and liquor scrips are trading at rich valuations, GM Breweries (Code:507488) (Rs.112.40) is available for a song at a market cap of Rs.100 cr. It is the single largest manufacturer of country liquor in Maharashtra and enjoys virtual monopoly in the districts of Mumbai and Thane. With an installed capacity of more than 55 million litres of country liquor per annum, it is currently working at 75% capacity utilization. It has made a strong turnaround in FY06 and has moved ahead with excellent performance for June’06 quarter as well. Interestingly, it hasn’t diluted equity since its IPO in 1994 and has an uninterrupted record of dividend payment from the day of its listing. For FY07, it may report sales of Rs.185 cr. and net profit of Rs.14 cr. i.e. EPS of Rs.15 on its equity of Rs.9.36 cr. At a reasonable valuation, it should trade in the range of Rs.180-210. Investors are advised to buy as technically scrip has bottomed out and the risk of further downfall is negligible.
Once again small caps have started to move. Hence Hazoor Media (Code:532467) (Rs.14.12) is being recommended for risk-taking investors as the company is betting high on real estate projects. It has planned a real estate development project at an outlay of Rs.110 cr. near Amby Valley Citi. It is also in the process of identifying large track of land for developing Integrated Township project at Pune. As a business strategy, it is planning to enter into joint ventures with land owners and other established builders & developers who own the real estate properties at strategic locations. For FY06, its top-line grew by 15% to Rs.14 cr. and net profit grew marginally by 7% to Rs.4.50 cr. registering an EPS of Rs.5 on its equity of Rs.3.50, with face value of Rs.4 per share. If things pan out as planned, the company it will enter into a different league altogether. Scrip has the potential to test its high of Rs.23 in this calendar year itself.
Control Print (Code:522295) (Rs.63.90) is the undisputed market leader in the coding and marking machinery with a market share of around 40%. It has a product range of contact coders, superior touch coders, specialized metal marking systems, sophisticated ink jet coders and also advanced laser coders which can be used to print on any type of surface like plastic, glass bottle, paper, wood, steel etc. The scrip has corrected by more than 50% due to its not-so-encouraging numbers for the last two quarters. For the June’06 quarter, its sales improved by 5% to Rs.9.40 cr. whereas net profit declined marginally to Rs.1.96 cr. Despite this, for full year FY07, it may report sales of Rs.50 cr. and net profit of Rs.7 cr. which means an EPS of Rs.9 on its equity of Rs.7.40 cr. Being in such a fast growing sector, this scrip deserves much higher valuation and can give handsome returns if held for 18-24 months.
No comments:
Post a Comment