STOCK WATCH
Ansal housing (205.00) 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. Further, 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 several cities. 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. Few weeks back company has made a pref allotment of 17 lac warrants to promoters @ 208 Rs and 29.50 lac warrants @ Rs 225 to others. For FY08 on a standalone basis it may register a topline of Rs 260 cr and bottomline of Rs 58 cr i.e. EPS of Rs 35 on current equity of Rs 16.70 cr. A good bet on real estate story.
Honda Siel Power (230.00) is engaged in manufacturing and marketing of portable generator sets, portable engines, internal combustion engines, pumping sets, water pumps, lawnmowers, spare parts and other related products in India. Being a 67% subsidiary of Honda Motor Co. Japan, company is the undisputed leader in the field of portable generators with its “HONDA” brand commanding more than 70% market share. Infact company boasts of launching India’s first LPG run gensets which is doing extremely well along with its super silent series. However, going forward the major growth for the company is expected to come from its engine and water pump sets division on back of strong industrial growth & increased mechanization in the agriculture/floriculture/horticulture sectors. To consolidate the manufacturing operations company is shifting its Rudrapur (Uttaranchal) plant to its factory at Greater Noida in Uttar Pradesh. Hence for the short term, company is incurring substantial costs along with production loss. But this restructuring will prove benefitial in longer term. So accordingly it may end FY08 with sales of Rs 240 cr and PAT of Rs 20 cr i.e. EPS of Rs 20 on equity of Rs 10 cr. Accumulate only at sharp declines only as scrip may drift down to sub 200 levels.
Belonging to high profile RPG group, Phillips Carbon (200.00) is the pioneer and largest manufacturer of carbon black in the country. Infact it is the undisputed leader with a capacity of 270,000 MTPA, which is almost 47% of the total installed capacity of carbon black in India It has also established a strong goodwill in the global market with more than 25% revenue coming from exports to over 15 countries including China, Japan, Indonesia, Iran, Sri Lanka, Vietnam, Turkey, Philippines, Australia, New Zealand and East African countries. To cash on the buoyant economic condition, company has chalked out massive Rs 350 cr expansion plan to be completed by Dec 2008, post which it will have carbon black capacity of 395,000 MTPA and power generation capacity of 74.50 MW. Importantly, to protect its profit margin company has re-negotiated the pricing formula with the customers, so as to built-in escalation clause. Accordingly it is estimated to clock a turnover of Rs 1050 cr and profit of Rs 85 cr i.e. EPS of Rs 30 on a conservative basis. For FY09 it has the potential to post an EPS of Rs 40. Accumulate at declines.
Blue Bird (48.00) is one of the leading manufacturers of paper based notebook products and office stationery products like executive notepads, diaries, arch-lever files, perforated pads, registers, filler papers and folders. Although notebook forms the core business with more than 80% revenue, company has also ventured into publishing academic textbooks and self study books for children apart from general publications in subjects such as ayurveda and biographies. It also offers commercial printing under which it designs and prints annual reports, brochures, catalogues, offer documents, coffee table books, calendars, greeting cards, magazines, text books, publications etc. In order to cater the central and south India market efficiently, company has recently put up two new plants at Indore and Bangalore apart from having its main plant in Pune. It is also expanding its distribution network and has ambitious growth plans for publication division. Sarcastically, company is having very high interest cost else it’s trading extremely cheap at an EV / EBIDTA of hardly 4x times. For the current fiscal it is expected to report total revenue of Rs 485 cr and NP of Rs 28 cr i.e. EPS of Rs 8 on equity of 35 Rs. Considering its IPO at Rs 105 in Nov 2006 and 52 week H/L as Rs 94 / 44, it’s a screaming buy at current market cap of merely Rs 170 cr.
Honda Siel Power (230.00) is engaged in manufacturing and marketing of portable generator sets, portable engines, internal combustion engines, pumping sets, water pumps, lawnmowers, spare parts and other related products in India. Being a 67% subsidiary of Honda Motor Co. Japan, company is the undisputed leader in the field of portable generators with its “HONDA” brand commanding more than 70% market share. Infact company boasts of launching India’s first LPG run gensets which is doing extremely well along with its super silent series. However, going forward the major growth for the company is expected to come from its engine and water pump sets division on back of strong industrial growth & increased mechanization in the agriculture/floriculture/horticulture sectors. To consolidate the manufacturing operations company is shifting its Rudrapur (Uttaranchal) plant to its factory at Greater Noida in Uttar Pradesh. Hence for the short term, company is incurring substantial costs along with production loss. But this restructuring will prove benefitial in longer term. So accordingly it may end FY08 with sales of Rs 240 cr and PAT of Rs 20 cr i.e. EPS of Rs 20 on equity of Rs 10 cr. Accumulate only at sharp declines only as scrip may drift down to sub 200 levels.
Belonging to high profile RPG group, Phillips Carbon (200.00) is the pioneer and largest manufacturer of carbon black in the country. Infact it is the undisputed leader with a capacity of 270,000 MTPA, which is almost 47% of the total installed capacity of carbon black in India It has also established a strong goodwill in the global market with more than 25% revenue coming from exports to over 15 countries including China, Japan, Indonesia, Iran, Sri Lanka, Vietnam, Turkey, Philippines, Australia, New Zealand and East African countries. To cash on the buoyant economic condition, company has chalked out massive Rs 350 cr expansion plan to be completed by Dec 2008, post which it will have carbon black capacity of 395,000 MTPA and power generation capacity of 74.50 MW. Importantly, to protect its profit margin company has re-negotiated the pricing formula with the customers, so as to built-in escalation clause. Accordingly it is estimated to clock a turnover of Rs 1050 cr and profit of Rs 85 cr i.e. EPS of Rs 30 on a conservative basis. For FY09 it has the potential to post an EPS of Rs 40. Accumulate at declines.
Blue Bird (48.00) is one of the leading manufacturers of paper based notebook products and office stationery products like executive notepads, diaries, arch-lever files, perforated pads, registers, filler papers and folders. Although notebook forms the core business with more than 80% revenue, company has also ventured into publishing academic textbooks and self study books for children apart from general publications in subjects such as ayurveda and biographies. It also offers commercial printing under which it designs and prints annual reports, brochures, catalogues, offer documents, coffee table books, calendars, greeting cards, magazines, text books, publications etc. In order to cater the central and south India market efficiently, company has recently put up two new plants at Indore and Bangalore apart from having its main plant in Pune. It is also expanding its distribution network and has ambitious growth plans for publication division. Sarcastically, company is having very high interest cost else it’s trading extremely cheap at an EV / EBIDTA of hardly 4x times. For the current fiscal it is expected to report total revenue of Rs 485 cr and NP of Rs 28 cr i.e. EPS of Rs 8 on equity of 35 Rs. Considering its IPO at Rs 105 in Nov 2006 and 52 week H/L as Rs 94 / 44, it’s a screaming buy at current market cap of merely Rs 170 cr.
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