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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

Sensex (LIVE- Intraday)

Saturday, February 2, 2008

STOCK WATCH

Numeric Power (725.00) is India’s No 1 manufacturer of uninterrupted power supply (UPS) systems, stabilizers and power conditioners. It also undertakes turnkey projects and offers end to end solution for SCADA/EMS package, large network of industrial process, power transmission support systems and distribution management. For the Dec qtr its sales increased by 45% to Rs 100 cr whereas NP shot up 70% to Rs 10.60 cr thereby posting an highest ever EPS of Rs 21 for the quarter. Last year, company entered into a joint venture with the French UPS major SOCOMEC SA to distribute, market and service the 3 phase range of UPS systems (greater than 10 KVA) products to customers in India. Ironically, around 75% of the ATMs in the country are fitted with UPS supplied by the company. With India's significant power deficits and the ubiquitous outages and voltage fluctuations; company’s products still have significant market potential in the country. For FY08 it may report sales of Rs 375 cr and profit of Rs 38 cr i.e. EPS of 75 Rs on equity of 5.05 cr. Secondly, with an estimated reserve of more than Rs 125 cr on tiny equity of Rs 5 cr, scrips is fuly ripe for liberal bonus as well. A solid bet for medium to long term

Last week, Mazda Ltd (76.00) declared teriffic set of nos for the Dec qtr. It reported 40% rise in sales to Rs 18 cr and Net profit shot up 80% to Rs 2.40 cr posting an EPS of almost Rs 6 for Q3FY08 alone. Hence its nine months profit of Rs 4.90 cr has already surpassed the entire FY07 PAT of Rs 4.70 cr. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. Besides, HSBC is holding 8% stake under FII category. To cater the increasing demand, Mazda is setting up a third unit with an investment of approximately 5 to 6 crores. It 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. For FY08 it is expected to clock a turnover of Rs 65 cr and profit of Rs 6.50 cr. This works out to an EPS of whopping Rs 15 on small equity of Rs 4.26 cr. At a modest discounting by 10x times scirp has the potential to touch Rs 150 in a years time. A screaming buy.

Micro Technologies (196.00) 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 Home Security Micro HSS, Vehicle Security Micro VBB, Lost Mobile Tracking System, Secure-Bank Black Box, Disaster Management 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. Once again company has reported excellent nos for the Dec qtr as its topline as well as bottomline grew by 65% to Rs 46.60 cr and Rs 14.40 cr respectively. Besides India, company has huge plans for export especially to China, Japan, U.S., Middle East, South Africa and adjoining countries etc. Recently it also got FCC compliance certification which will increase the recognition of all its products in the global market and will enable for it to penetrate global market. Considering all the factors company is estimated to end FY08 with total revenue of Rs 175 cr and profit of Rs 50 cr i.e. EPS of Rs 47 on current equity of Rs 10.75 cr. In near future company is looking to make preferential allotment of 24 lac warrants which take its total diluted equity to around Rs 16~17 cr. At current market cap of around Rs 300 its trading reasonably cheap and can appreciate 50% in a years time.

Bihar Caustic (77.00) - a 51% subsidiary of Hindalco, is among the leading caustic soda producer in the northern and eastern region of the country having an installed capacity of of 225 tonne per day. Notably, BCCL also enjoys the highest operating margins among it peers - even better than Gujarat Alkalies and Chemfab Alkali. It registered 20% increase in sales to Rs 48 cr but net profit jumped up 70% to 16.50 cr posting an impressive EPS of Rs 7 for the qurter. To maintain its growth, company is in process of expanding capacity of its caustic soda plant by 20% to 265 TPD by addition of electrolysers as well by debottlenecking. Secondly, it has also taken a decision for setting up a stable bleaching powder (SBP) plant at an estimated cost of Rs.7.50. But most importantly, company has commissioned an aluminium chloride project with a capacity of 12000 TPA which is giving a good fillip to its topline as well as bottomline. For FY08 it is estimated to clock a turnover of 185 cr and profit of 50 cr which leads to an EPS of 21 Rs on equity of 23.40 cr. Fundamentally, the scrip can move upto Rs 120 in a years time.

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