STOCK WATCH
Numeric Power (400.00) is India’s leading 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. It has been ranked as No.1 online UPS manufacturer & power electronic company of the year for the last 15 years in a row by Soft Disk journal. It has also been ranked as No 1 offline UPS manufacturer for second consecutive year by the same magazine. Recently, it ventured into solar power generation using Photo Voltaic Modules and initially intends to develop solar hybrid UPS systems. Accordingly, it aalked out of JV with SOCOMEC SA of France as it primarily prevented the company to tap the solar 3 phase UPS products. But at the same time it has developed its own products in higher range of 3 phase category which are fairly successful in the market. Ironically the share price has become one third from the high of Rs 1200 made in Jan’08. Investors are strongly recommended to buy, as the downward risk is minimal form current levels whereas share price can double in 12 months
Notably, on 15th August 2008 Dr. A P J Kalam felicitated Dr. P Sekhar – CMD of Micro Technology (124.00), for his significant contribution in the security segment. But unfortunately his company’s share price is on a distress sell mode and is now trading at a three and half year’s low. Couple of days ago company launched another innovative software product called Micro SAMS (Students Attendance Management System) which has various unique features related to automated system for access, attendance and effective communication. Company is a global provider of security, safety and life-support solutions with its first of its kind products for security of home, office, shop, vehicle, laptop, mobile etc. Last fiscal it invested almost Rs 100 cr, as its gross block increased to Rs 160 cr from 65 cr in FY07. After ending FY08 on quite a buoyant note, it reported encouraging results for the June quarter as well. Rising disposable income coupled with more and more people becoming conscious about security aspect, company’s product have huge potential. It may end FY09 with sales of Rs 250 cr and PAT of Rs 70 cr i.e. EPS of Rs 64 on current equity of Rs 11 cr. Considering the current market price, FCCB / Warrant conversion hasn’t been taken into consideration. At CMP it’s a steal.
Being India’s largest manufacturer of evaporator and condenser (E&C) coils with around 60% market share, Lloyd Electric & Engineering (52.00) has got itself forward integrated into lucrative business of contract manufacturing of window / split air conditioners for various MNCs in India. It is also into manufacturing of roof mounted packaged unit i.e. packaged AC for railway coaches on turnkey basis. Notably, it has entered into tie-up with Air International Transit, Australia to manufacture and supply AC Package units to Metro Rail Corporation in India which is adding up 800 new coaches to its fold leading to sizable business opportunity. But most importantly, few months ago it acquired 100% stake Luvata Czech s.r.o. in Prague, Czech Republic which is also into manufacturing of heat exchangers / coils and has good presence in European market. On a consolidated basis it is expected to clock a turnover of Rs 850 cr and PAT of Rs 65 cr i.e. EPS of Rs 21 on current equity. Unbelievably, due to current sentiment its share price has come down to a three year low, giving golden opportunity to long term investors to accumulate.
Tera Software (28.00) is one of the leading e-governance solution providers, undertaking data entry/scanning works for digitization of information maintained under Right to Information Act. It also undertakes short-term projects like issue of photo ID cards, ration cards and election commission cards. Of late company has been constantly bagging good order from various state governments like Andhra Pradesh, Rajasthan, Himachal Pradesh etc. Recently, it has been selected as empanelled vendor for rollout of IT services in govt sector through National Informatics Centre Services Inc. As of today it has a massive order book position of more than Rs 250 cr to be executed in coming years. Although company reported disappointing nos for Q1FY09 still it can report revenue of Rs 70 cr and profit of Rs 13 cr for FY09. This leads to an EPS of Rs 11 on current equity of Rs 12.50 cr. Moreover company has few acres of surplus land in Hyderabad, which it can either sell or enter into JV with infrastructure company. With a dividend yield of more than 7% it’s a screaming buy at current market cap of Rs 35 cr.
Notably, on 15th August 2008 Dr. A P J Kalam felicitated Dr. P Sekhar – CMD of Micro Technology (124.00), for his significant contribution in the security segment. But unfortunately his company’s share price is on a distress sell mode and is now trading at a three and half year’s low. Couple of days ago company launched another innovative software product called Micro SAMS (Students Attendance Management System) which has various unique features related to automated system for access, attendance and effective communication. Company is a global provider of security, safety and life-support solutions with its first of its kind products for security of home, office, shop, vehicle, laptop, mobile etc. Last fiscal it invested almost Rs 100 cr, as its gross block increased to Rs 160 cr from 65 cr in FY07. After ending FY08 on quite a buoyant note, it reported encouraging results for the June quarter as well. Rising disposable income coupled with more and more people becoming conscious about security aspect, company’s product have huge potential. It may end FY09 with sales of Rs 250 cr and PAT of Rs 70 cr i.e. EPS of Rs 64 on current equity of Rs 11 cr. Considering the current market price, FCCB / Warrant conversion hasn’t been taken into consideration. At CMP it’s a steal.
Being India’s largest manufacturer of evaporator and condenser (E&C) coils with around 60% market share, Lloyd Electric & Engineering (52.00) has got itself forward integrated into lucrative business of contract manufacturing of window / split air conditioners for various MNCs in India. It is also into manufacturing of roof mounted packaged unit i.e. packaged AC for railway coaches on turnkey basis. Notably, it has entered into tie-up with Air International Transit, Australia to manufacture and supply AC Package units to Metro Rail Corporation in India which is adding up 800 new coaches to its fold leading to sizable business opportunity. But most importantly, few months ago it acquired 100% stake Luvata Czech s.r.o. in Prague, Czech Republic which is also into manufacturing of heat exchangers / coils and has good presence in European market. On a consolidated basis it is expected to clock a turnover of Rs 850 cr and PAT of Rs 65 cr i.e. EPS of Rs 21 on current equity. Unbelievably, due to current sentiment its share price has come down to a three year low, giving golden opportunity to long term investors to accumulate.
Tera Software (28.00) is one of the leading e-governance solution providers, undertaking data entry/scanning works for digitization of information maintained under Right to Information Act. It also undertakes short-term projects like issue of photo ID cards, ration cards and election commission cards. Of late company has been constantly bagging good order from various state governments like Andhra Pradesh, Rajasthan, Himachal Pradesh etc. Recently, it has been selected as empanelled vendor for rollout of IT services in govt sector through National Informatics Centre Services Inc. As of today it has a massive order book position of more than Rs 250 cr to be executed in coming years. Although company reported disappointing nos for Q1FY09 still it can report revenue of Rs 70 cr and profit of Rs 13 cr for FY09. This leads to an EPS of Rs 11 on current equity of Rs 12.50 cr. Moreover company has few acres of surplus land in Hyderabad, which it can either sell or enter into JV with infrastructure company. With a dividend yield of more than 7% it’s a screaming buy at current market cap of Rs 35 cr.
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