MUHURAT PICKS
BSEL Infrastructure (64.00) is currently developing a whopping 5.30 million sq ft of land across real estate verticals including residential, hotel & hospitality, retail, commercial, & shopping malls, IT Parks etc and has acquired another 6.50 million sq ft of developable area for future projects. It has entered into strategic alliances with Unity Infraprojects for development of six shopping malls at various locations in Nagpur. It’s another project in Nagpur called “Buty Palace” a state of the art mall is expected to become operational by Dec 2007. In Pune, along with Kamat hotels and Unity Infra it has been awarded a project for constructing, operating and maintaining a hotel and a commercial project on 60 years renewable concessional agreement. Under its BSEL Narmada Nihar project – Gujarat, company is developing 260 hotel rooms of four star category with a club house and a restaurant expected to complete by Dec 07. Again in a joint venture with Unity Infra, it has been allotted land for developing 1 million sq ft IT Park at Dona Paula, Goa in which company’s share will 0.50 million sq ft. And most importantly, it’s wholly owned subsidiary BSEL Infrastructure Realty (FZE) has acquired seven plots approximating 7.9 million sq. ft. in Ajman, Main Emirates City, UAE and is constructing BSEL Pearl tower – a 50 storied storied state-of-the-art architecture tower. On a consolidated basis for FY08, it may register total revenue of 450 cr and PAT of 120 cr i.e. EPS of 18 Rs on fully diluted equity of 65.20 cr.
Mazda Ltd (74.00) is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into Vacuum system, Valve division, Air pollution control equipment, Crystallizers and Evaporators. Hence its product range includes various types of vacuum jet ejectors, turbine bypass valve, desuperheaters, condensers, pressure reducing stations, pneumatic actuators, steam jet thermo compressors, process control equipments, scrubbers etc. Besides, company also has a biotechnology division dealing in carbohydrates, rare sugars & miscellaneous bio-chemicals and hence it recently diversified into business of manufacturing food and drink concentrates in a small scale under brand name “BCooL”. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. With an expected EPS of 13 Rs for FY08 and 52 week H/L as 236/58 Rs, its one of the cheapest scrip in the engineering space.
Micro Technologies (220.00) is a global provider of security, safety and life-support solutions with its very unique, hi-tech, first of its kind and innovative products like Lost Mobile Tracking System, Secure-Bank Black Box, Vehicle Black Box, Disaster Management System, Home Security System, Intelligent Black Box, Access Control Solution etc which have huge demand world wide. Further, it has launched couple of dynamic products like Office Black Box for office security, Shop Security System for commercial premises and Electric Black Box for power industry. Ironically with over 80 IPR’s, its technology has been patented in 123 countries, giving it exclusive rights in these markets. To strengthen its marketing and distribution network it has appointed more than 2000 dealers/distributors all over India, opened more than 50 Micro Shoppe franchise outlets, and has also increased the advertisement budget substantially for brand building and product awareness. Besides India, company has huge plans for export especially to China, Japan, U.S., Middle East, South Africa and adjoining countries etc. As China has the largest GSM mobile subscribers, it introduced the Chinese version of its internationally acclaimed product MICRO LMTS (Lost Mobile Tracking System). With company expected to grow at CAGR of more than 50% for next few years, it’s a screaming buy at current levels
Rohit Ferro Tech Ltd (53.00) is a leading producer of high carbon ferro chrome apart from manufacturing ferro manganese and silico manganese through submerged arc furnace route. Its product are primarily used in steel making as an additive to add strength and quality required in a particular grade of steel like stainless steel etc. During last fiscal only, company has set up a greenfield plant in Orissa thereby taking its total capacity to 165,000 MT from 55,000 MT. It is further setting up a fifth furnace with 15000 MT capacity which will start operation by end of this calendar year. Besides it has applied for mining lease to the state government of Orissa for chrome ore as well as manganese ore which will make it an integrated player to some extent. It also intends to form a joint venture with Iranian partners, to explore the possibilities of marketing as well as sourcing of raw-materials. To reduce its power cost company has now chalked out a plan to setup a 110 MW captive power plant in the state of Orissa. To fund this, it made a pref allotment of 80 lac convertible warrants @ 43 Rs per share to promoters as well as strategic investors like Kampani Finance, Foster Capital etc. Considering the estimated EPS of 11~12 Rs for FY08 and future expansion plan scrip can easily shoot up to 75 Rs in medium term. Accumulate at sharp declines only.
Being a 78% subsidiary of Technip S.A of France, the largest oilfield engineering, construction and service group in Europe, SEAMEC Ltd (195.00) operates multi-purpose support vessels (MSV) for diving and provides underwater/subsea engineering and construction, maintenance, inspection of under-water structures, rescue-operations and fire-fighting and other support services for offshore oil/gas installations located in India or abroad. Hence it is a pure play of charter hiring of MSVs, which are more specialized vessels than Offshore Supply Vessels (OSV) as they are equipped with Dynamic Positioning (DP) system and can go underwater for repair & maintenances of underwater pipelines. Ironically, there are only 6 MSV in India; out of which four belongs to SEAMEC and the rest two are with ONGC. However, the recently acquired fourth vessel - Seamec Princess is presently abroad for conversion to diving support vessel and is expected to be ready in next few weeks. Meanwhile the dry dock for vessel I have already completed and vessel II will complete within this fiscal only. So, FY08 will be a bumper year for the company with continuous deployment of all its four vessels coupled with higher charter rates. It can report a topline of 250 cr and bottomline of 80 cr i.e. EPS of 24 Rs on current equity of 33.90 for the year ending Dec 2008. Being a debt free MNC it deserves much better valuation and its share price can move up to 350 Rs in 15 months time.
Ansal housing (165.00) has been the pioneer to introduce the concept of large integrated residential townships in the country and also the first to enter Tier - II & III cities like Ghaziabad, Noida, Allahabad, Lucknow, Ludhiana, Agra, Bhopal, Haridwar etc. Till now company has constructed massive 67.6 million square feet of commercial and residential project across India. Currently, it has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. Recently, it has launched residential townships branded as “Ansal Town” across seven cities namely Agra, Indore, Jammu, Rewari, Karnal. Meerut and Ghaziabad which are spread over 1400 acres. It will also be developing an I.T. Park in Bangalore apart from venturing into construction of budget hotels and serviced apartments. Currently, company has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Notably, the total value of the projects with the company and under joint ventures is massive 6000 crores. It is also among the very few real estate companies that are consistently registering a healthy operating margin of above 30%. On an expected EPS of around 30 Rs for FY08, this is one of the most undervalued or poorly discounted scrip on the bourses. Scrip has the potential to double in medium to long term.
Mazda Ltd (74.00) is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into Vacuum system, Valve division, Air pollution control equipment, Crystallizers and Evaporators. Hence its product range includes various types of vacuum jet ejectors, turbine bypass valve, desuperheaters, condensers, pressure reducing stations, pneumatic actuators, steam jet thermo compressors, process control equipments, scrubbers etc. Besides, company also has a biotechnology division dealing in carbohydrates, rare sugars & miscellaneous bio-chemicals and hence it recently diversified into business of manufacturing food and drink concentrates in a small scale under brand name “BCooL”. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. With an expected EPS of 13 Rs for FY08 and 52 week H/L as 236/58 Rs, its one of the cheapest scrip in the engineering space.
Micro Technologies (220.00) is a global provider of security, safety and life-support solutions with its very unique, hi-tech, first of its kind and innovative products like Lost Mobile Tracking System, Secure-Bank Black Box, Vehicle Black Box, Disaster Management System, Home Security System, Intelligent Black Box, Access Control Solution etc which have huge demand world wide. Further, it has launched couple of dynamic products like Office Black Box for office security, Shop Security System for commercial premises and Electric Black Box for power industry. Ironically with over 80 IPR’s, its technology has been patented in 123 countries, giving it exclusive rights in these markets. To strengthen its marketing and distribution network it has appointed more than 2000 dealers/distributors all over India, opened more than 50 Micro Shoppe franchise outlets, and has also increased the advertisement budget substantially for brand building and product awareness. Besides India, company has huge plans for export especially to China, Japan, U.S., Middle East, South Africa and adjoining countries etc. As China has the largest GSM mobile subscribers, it introduced the Chinese version of its internationally acclaimed product MICRO LMTS (Lost Mobile Tracking System). With company expected to grow at CAGR of more than 50% for next few years, it’s a screaming buy at current levels
Rohit Ferro Tech Ltd (53.00) is a leading producer of high carbon ferro chrome apart from manufacturing ferro manganese and silico manganese through submerged arc furnace route. Its product are primarily used in steel making as an additive to add strength and quality required in a particular grade of steel like stainless steel etc. During last fiscal only, company has set up a greenfield plant in Orissa thereby taking its total capacity to 165,000 MT from 55,000 MT. It is further setting up a fifth furnace with 15000 MT capacity which will start operation by end of this calendar year. Besides it has applied for mining lease to the state government of Orissa for chrome ore as well as manganese ore which will make it an integrated player to some extent. It also intends to form a joint venture with Iranian partners, to explore the possibilities of marketing as well as sourcing of raw-materials. To reduce its power cost company has now chalked out a plan to setup a 110 MW captive power plant in the state of Orissa. To fund this, it made a pref allotment of 80 lac convertible warrants @ 43 Rs per share to promoters as well as strategic investors like Kampani Finance, Foster Capital etc. Considering the estimated EPS of 11~12 Rs for FY08 and future expansion plan scrip can easily shoot up to 75 Rs in medium term. Accumulate at sharp declines only.
Being a 78% subsidiary of Technip S.A of France, the largest oilfield engineering, construction and service group in Europe, SEAMEC Ltd (195.00) operates multi-purpose support vessels (MSV) for diving and provides underwater/subsea engineering and construction, maintenance, inspection of under-water structures, rescue-operations and fire-fighting and other support services for offshore oil/gas installations located in India or abroad. Hence it is a pure play of charter hiring of MSVs, which are more specialized vessels than Offshore Supply Vessels (OSV) as they are equipped with Dynamic Positioning (DP) system and can go underwater for repair & maintenances of underwater pipelines. Ironically, there are only 6 MSV in India; out of which four belongs to SEAMEC and the rest two are with ONGC. However, the recently acquired fourth vessel - Seamec Princess is presently abroad for conversion to diving support vessel and is expected to be ready in next few weeks. Meanwhile the dry dock for vessel I have already completed and vessel II will complete within this fiscal only. So, FY08 will be a bumper year for the company with continuous deployment of all its four vessels coupled with higher charter rates. It can report a topline of 250 cr and bottomline of 80 cr i.e. EPS of 24 Rs on current equity of 33.90 for the year ending Dec 2008. Being a debt free MNC it deserves much better valuation and its share price can move up to 350 Rs in 15 months time.
Ansal housing (165.00) has been the pioneer to introduce the concept of large integrated residential townships in the country and also the first to enter Tier - II & III cities like Ghaziabad, Noida, Allahabad, Lucknow, Ludhiana, Agra, Bhopal, Haridwar etc. Till now company has constructed massive 67.6 million square feet of commercial and residential project across India. Currently, it has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. Recently, it has launched residential townships branded as “Ansal Town” across seven cities namely Agra, Indore, Jammu, Rewari, Karnal. Meerut and Ghaziabad which are spread over 1400 acres. It will also be developing an I.T. Park in Bangalore apart from venturing into construction of budget hotels and serviced apartments. Currently, company has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Notably, the total value of the projects with the company and under joint ventures is massive 6000 crores. It is also among the very few real estate companies that are consistently registering a healthy operating margin of above 30%. On an expected EPS of around 30 Rs for FY08, this is one of the most undervalued or poorly discounted scrip on the bourses. Scrip has the potential to double in medium to long term.
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