STOCK WATCH

Hazoor Multi Project Ltd. (Code:532467) (Rs.18) has once again declared good results for Q1FY07 i.e. Nov.’06 quarter. Sales grew by 15% to Rs.5.40 cr. but net profit increased by 25% to Rs.1.60 cr. maintaining its OPM of 38%. It has a huge property in Lonavala near Amby Valley, on which it has flagged off an Rs.80 cr. highly luxurious residential project meant for the elite. It has also acquired a residential project admeasuring 1 lakh square feet in Pune city and is further looking for more land to develop. Hence, real estate development will become the core activity of the company. For the year ending 30th Aug.’07, it may report a topline of Rs.35 cr. with net profit of Rs.8 cr., which works out to an EPS of Rs.4 on its fully expanded equity of Rs.8.60 cr. having face value of Rs.4 per share. In the near future the company may raise capital through the FCCB/ADR route, which could lead to a re-rating of the company. It is also considering to list its shares on NSE, which will improve its liquidity going forward. At a reasonable discounting by 8 times the scrip has the potential to cross Rs.30 in 9-12 months.

Alufluoride Ltd. (Code:524634) (Rs.21) is a reputed manufacturer and exporter of aluminium fluoride, which is used as flux in reducing the melting point of Alumina for aluminium production. Recently, the company succeeded in sourcing an alternate supplier for Hydrofluosilicic acid for conversion on ad-hoc basis and is now working at higher capacity utilization. Although its sales remained flat at Rs.4.70 cr. for Dec.’06 quarter the net profit zoomed up to Rs.0.98 cr. compared to Rs.0.04 cr. last year. For the nine months ending Dec.’06, sales was up 20% to Rs.15.35 cr. and PAT stood at Rs.2.40 cr. against Rs.0.50 cr. last year. Since aluminium smelters in India and abroad are enhancing their production capacity and new aluminium smelters, too, are up, the company is expected to perform better in coming quarters. It may end FY07 with sales of Rs.20 cr. with profit of Rs.2.50 cr. i.e. EPS of Rs.4 on its equity of Rs.7 cr. The scrip can rise 50% from the current level in a year’s time.

A few days back, BSEL Infrastructure Ltd. (Code:532123) (Rs.69) came out with a fantastic set of numbers for the Dec.’06 quarter. With help from its wholly-owned subsidiary i.e. BSEL Infrastructure Realty FZE based in UAE, the company’s topline zoomed to Rs.34 cr. compared to Rs.8 cr. last year whereas net profit sky-rocketed to Rs.30 cr. against Rs.4 cr. Dec.’05. Although, the same kind of profit is not expected in coming quarters, this performance has strengthened its balance sheet. Moreover, in joint venture with Unity Infraprojects, the company has been awarded a contract of Rs.545 cr. by Nagpur Municipal Corporation for development of six shopping malls with a built-up area of 27 lakh sq ft. Again in a joint venture with Unity Infraprojects, it has bagged another contract of Rs.156 cr. for constructing, operating and maintaining a 400 room hotel on a BOT basis at Shivchhatrapati Sports Complex, Pune. Accumulate at declines only.

Choksi Lab Ltd. (Code:526546) (Rs.21) is a group of research laboratories offering analysis, calibration, pollution control, research and consultancy services to a broad spectrum of industries. It has facilities to analyze food & agricultural products, cement & building materials, chemicals, drugs, metals, oil, soil, PVC pipes & paints etc for its client or as a regulatory requirement. For the six months ending 30th Sept.’06, its income increased by 17% to Rs.4.65 cr. while the bottomline improved by 12% to Rs.0.65 cr. Of late, the company has entered into clinical trial research in a big way and commenced a 40-bed clinical research facility at Vapi for carrying out bio-availability and bio-equivalence studies. For FY07, it is expected to report total revenue of around Rs.10 cr. with PAT of Rs.1.30 cr., which can lead to an EPS of Rs.3 on its equity of Rs.4.85 cr. For FY08, it has the capability to report an EPS of Rs.5. At the current market cap of Rs.10 cr. only, it is a fairly undervalued scrip.

Textile is one sector which underperformed in 2006 and most of the analysts expect the same for 2007 also. But with the markets hitting new highs and expected to touch Sensex 16000, bargain hunting is bound to emerge in cheap textile scrips like Winsome Textile Ltd. (Code:514470) (Rs.40). It has already clocked sales of Rs.71 cr. with net profit of Rs.6 cr. for H1FY07, which is substantially more than entire FY06 profit. For future growth, the company has undertaken modernisation cum expansion projects to add 13000 spindles, 10 tonnes/day dyeing, 2.50 MW Hydro power plant along with complete replacement of old ring frames at a capex of Rs.117 cr. Hence, it is estimated to end FY07 with sales of Rs.150 cr. and net profit of Rs.8 cr. i.e. EPS of Rs.14 on its small equity of Rs.5.87 cr. with cash EPS of Rs.24 and book value of Rs.55, this scrip is available cheap and can easily appreciate by 50% from the current level in 6-9 months. Just buy and hold.