STOCK WATCH

Belonging to the respected BC Jindal group, Jindal Polyfilms (230.00) makes polyester films (BOPET), polypropylene films (BOPP), metallised films and coated films with in house ability to produce polyester chips for captive consumption. It is India’s one of the largest manufacturer of flexible packaging films with an installed capacity of BOPET (111000 tpa), BOPP (90000 tpa), metalized film (40000 tpa), coating (18000 tpa) and polyester chips (70000 tpa). It announced decent nos for the latest March qtr and accordingly ended FY08 with sales of Rs 1258 cr and PAT of Rs 134 cr. This translates into EPS of Rs 48 on equity of Rs 28.10 cr. With Cash EPS of more than Rs 75 and book value of whopping Rs 280, scrip is trading fairly cheap at a P/E ratio of less than 5x times. Company is further implementing huge capex under which it will be expanding its capacity by 90,000 tpa for BOPP, 50,000 tpa for BOPET, 14,000 tpa for metalized films and 4500 tpa for Coating. Although rising crude oil price is a cause of concern still investors can accumulate at sharp declines.

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. Recently, it reported satisfactory set of nos for the March qtr as sales improved by 8% to Rs 274 cr but NP jumped up 40% to Rs 19 cr due to better operating efficiency and lower tax provisioning. Hence for entire FY08, although sales remained flat at Rs 1033 cr but its PAT shot up 280% to Rs 89 cr which works out to an EPS of Rs 35 on equity of Rs 25.25 cr. Importantly, to protect its profit margin company has re-negotiated the pricing formula with the customers, so as to built-in escalation clause. To maintain its growth momentum, 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. Meanwhile its 30 MW power generation plant from waste gas in Durgapur is expected to be commissioned within couple of months. To sum up company is estimated to post an EPS of Rs 38~40 for FY09 on fully diluted equity of Rs 28.25 cr.

Micro Technologies (320.00) 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, Access Control Solution etc which have huge demand world wide. It also boasts of introducing dynamic products like Office Black Box, Shop Security System & Electric Black Box. Once again company has reported excellent nos for the March qtr as its topline as well as bottomline increased by 70% to Rs 51 cr and Rs 16 cr respectively. For full year it earned a NP of Rs 53 cr on total revenue of Rs 171 cr. This leads to an EPS of Rs 48 on current equity of Rs 10.95 cr. Recently, it has launched Lost Notebook Tracking System, Micro Video Door Phone & Micro Intelligent Surveillance System. It was also successful in making a tie up with MTNL under which it will offer Micro LMTS to secure the mobile handsets of 2 million MTNL Subscribers. Although constant equity dilution will restrict the upside of the scrip, still investors can accumulate at sharp declines.

Recently, Jupiter Bioscience (165.00) declared satisfactory set of nos for the March qtr. Accordingly, it recorded 25% growth in sales to Rs 130 cr but net profit zoomed up 65% to Rs 30.70 cr for entire FY08. Of late it has cancelled the 27.50 lakh equity shares allotted to promoters and instead issued 40 lakh warrants @ Rs 182 to strategic investors. So its current equity stands at Rs 15.40 cr and not Rs 18.13 cr and thus for FY08 it registered an EPS of Rs 20. Importantly, company has entered into a 10-year product purchase agreement with Ranbaxy on peptide pharmaceutical for gloabal market and as per contract allotted 31.77 lakh warrants @ Rs 147. It is also setting up a 5500 sq ft manufacturing facility in Maryland, US to cater the USA, Canada and European markets. Couple of weeks back it finalized to take over a manufacturing facility of Merck Life Sciences in Switzerland and the acquisition formalities in under process. At a reasonable discounting by 12x times scrip can shoot up to Rs 240 within a year. Keep accumulating at declines.