STOCK WATCH
Jupiter Bioscience (40.00) is poised to become a global peptide solutions group having a broad canvas of peptide chemistry products, peptide reagents, coupling reagents, protective agents and supplier of key ingredients used in peptide based pharmaceuticals. It is operating in a very niche segment and is among the few companies in the world to have competency in synthesis of peptides. The technology focus of the company has enabled it to develop more than 400 products in its catalogue and establish a leadership position in the peptide business internationally. For H1FY09 it has already clocked an EPS of Rs 9 as it reported 15% growth in sales to Rs 60 cr and 10% increase in PAT to RS 14 cr. Last year company invested considerable resources in developing the processes for manufacture of generic peptide APIs. It has also finalized to acquire a manufacturing facility of Merck Life Sciences, Switzerland and has even signed a long term business contract with them. Besides company 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. Last fiscal it raised 100 cr thru QIP route @ Rs 153 per share. Further it has allotted 40 lakh warrants to be converted @ Rs 182 to strategic investors. For FY09 on a standalone basis, it can report sales of Rs 150 cr and NP of Rs 30 i.e. EPS of Rs 20 on current equity of Rs 15.40 cr. A strong buy.
Currently, Godawari Power (60.00) is the 4th largest manufacturer of coal based sponge iron and also one of the leading manufacturers of mild steel in India. It completed its Phase-II expansion in Sept 2007 and boasts of having an installed capacity of 495,000 TPA for sponge iron, 400,000 TPA for steel billets, 120,000 TPA for HB wire rod alongwith 53 MW of captive power plant. Due to adverse market condition company has temporarily cut down the steel billets and ferro alloys production and has decided to sell the entire surplus power in open market. It has also dropped down the buy-back plan which was approved earlier. Importantly, company has acquired mining license for iron ore and coal in Chhattisgarh. Couple of days back it got the in-principle approval from govt for diversion of 110 hectares of forest land for iron ore mining at Chhattisgarh. For which it expected to begin mining activities by June 2009. It has also made investments in two JV companies - Chhattisgarh Captive Coal Mining Ltd and Raipur Infrastructure Company Ltd for development of coal mines and setting up railway sliding for captive use. Recently company has decided to venture into cement production along with executing backward integration plan which includes setting up of 0.6 mtpa iron ore Pelletization plant, 0.1 mtpa iron ore Beneficiation plant, 1.2mtpa iron ore Crushing plant etc. Although company has already earned an EPS of Rs 25 for the first two quarters of FY09, but considering the sharp drop in sponge iron prices it may report disappointing nos for the next two quarters. Accumulate at sharp declines
From a high of more than Rs 1000 early this year, share price of KLG Systel (70.00) has become one fifteenth and is still hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of Rs 90 cr. For FY09 on a standalone basis it is expected to clock a turnover of Rs 240 cr and profit of Rs 30 cr i.e. EPS of Rs 24 on current equity of Rs 12.60 cr.
WS Industries (25.00) is a leading manufacturer of high voltage electro-porcelain transmission insulators and sub-station insulators. It deals in other products as well like dropout fuses, isolators, lightning arresters, coupling capacitors, capacity voltage transformers, instrument transformers, line traps and reactors. To cater the rising demand, company is setting up a Greenfield plant in Visakhapatnam to double the manufacturing capacity of substation insulators to 16,000 tons. The project is almost completed and may start commercial production in this fiscal itself. Besides, its transmission insulator unit with installed capacity of 8,000 tonne is running at full capacity. Lately company has also ventured into turnkey project execution i.e. designing, execution and construction work of transmission lines of below 220 KV. Meanwhile, its subsidiary company has completed the construction of the 1st phase (300,000 sq ft) of the Software Technology Park in association with TCG group. Due to sudden liquidity crisis and slowdown, company may report a turnover of Rs 225 cr and profit of Rs 11 i.e. EPS of Rs 5 for FY09. Scrip can appreciate 50% as soon as market sentiment improves.
Currently, Godawari Power (60.00) is the 4th largest manufacturer of coal based sponge iron and also one of the leading manufacturers of mild steel in India. It completed its Phase-II expansion in Sept 2007 and boasts of having an installed capacity of 495,000 TPA for sponge iron, 400,000 TPA for steel billets, 120,000 TPA for HB wire rod alongwith 53 MW of captive power plant. Due to adverse market condition company has temporarily cut down the steel billets and ferro alloys production and has decided to sell the entire surplus power in open market. It has also dropped down the buy-back plan which was approved earlier. Importantly, company has acquired mining license for iron ore and coal in Chhattisgarh. Couple of days back it got the in-principle approval from govt for diversion of 110 hectares of forest land for iron ore mining at Chhattisgarh. For which it expected to begin mining activities by June 2009. It has also made investments in two JV companies - Chhattisgarh Captive Coal Mining Ltd and Raipur Infrastructure Company Ltd for development of coal mines and setting up railway sliding for captive use. Recently company has decided to venture into cement production along with executing backward integration plan which includes setting up of 0.6 mtpa iron ore Pelletization plant, 0.1 mtpa iron ore Beneficiation plant, 1.2mtpa iron ore Crushing plant etc. Although company has already earned an EPS of Rs 25 for the first two quarters of FY09, but considering the sharp drop in sponge iron prices it may report disappointing nos for the next two quarters. Accumulate at sharp declines
From a high of more than Rs 1000 early this year, share price of KLG Systel (70.00) has become one fifteenth and is still hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of Rs 90 cr. For FY09 on a standalone basis it is expected to clock a turnover of Rs 240 cr and profit of Rs 30 cr i.e. EPS of Rs 24 on current equity of Rs 12.60 cr.
WS Industries (25.00) is a leading manufacturer of high voltage electro-porcelain transmission insulators and sub-station insulators. It deals in other products as well like dropout fuses, isolators, lightning arresters, coupling capacitors, capacity voltage transformers, instrument transformers, line traps and reactors. To cater the rising demand, company is setting up a Greenfield plant in Visakhapatnam to double the manufacturing capacity of substation insulators to 16,000 tons. The project is almost completed and may start commercial production in this fiscal itself. Besides, its transmission insulator unit with installed capacity of 8,000 tonne is running at full capacity. Lately company has also ventured into turnkey project execution i.e. designing, execution and construction work of transmission lines of below 220 KV. Meanwhile, its subsidiary company has completed the construction of the 1st phase (300,000 sq ft) of the Software Technology Park in association with TCG group. Due to sudden liquidity crisis and slowdown, company may report a turnover of Rs 225 cr and profit of Rs 11 i.e. EPS of Rs 5 for FY09. Scrip can appreciate 50% as soon as market sentiment improves.
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