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T
I
M
E
S
A TIME COMMUNICATIONS PUBLICATION
VOL. XVII No. 6
Monday, December 24 - 30, 2007
Pages 20
1
Lack of confidence
at higher levels bedevils the bourses
By Sanjay R. Bhatia
The markets have displayed a negative trend amidst intermediate
bouts of volatility and choppiness on the back of negative global
cues. The volumes recorded have been good but the advance-decline ratio has remained negative. Incidentally, FIIs
remained net sellers in both the cash as well as the
derivatives segments ahead of the F&O segment. Domestic
institutional investors, on the other hand, were net buyers
during the week supporting the markets at lower levels.
The global cues have remained mixed with recessionary
concerns about the US economy looming large over global
markets. Crude oil prices remained range bound while the
rupee depreciated during the week on the back of year-
end selling by FIIs. The markets failed to witness follow-
up buying at higher levels and failed to capitalize on the
previous week's closing above the Sensex 20,000 level.
Lack of confidence and tentativeness at higher levels due
to selling by FIIs is affecting the market sentiment. The
markets would continue to remain range bound with a
negative bias till some positive trigger emerges along with
FII inflows, which are likely to turn buoyant only in the new year. Till such time, stock specific action will be witnessed
amid occasional bouts of volatility and choppiness due to the derivatives segment expiry next week. Global cues would
continue to impact the market sentiment and profit booking and selling pressure will be witnessed at higher levels.
Technically, on the upside the 19,700 followed by the 20,000 level are likely to act as resistance levels for the BSE Sensex.
The BSE Sensex has support at the 18,737 level followed by the 18,526 level. On the upside, the 5937 followed by the 6000
level are likely to act as resistance levels for S&P CNX Nifty. The 5520 followed by the 5215 are important support levels
for S&P CNX Nifty. Investors should wait and watch.
Unfolding 2008!
By Fakhri H. Sabuwala
We are in the midst of the Christmas season and with the New Year around the corner, new hopes and wishes, too, are
ringing into our ears. The Sensex and Nifty may be jingling in Santa's gift packets but worries about how 2008 shall
unfold is on the rise. What is our New Year resolve as far as the capital market is concerned? What strategies should we
apply? Scores of questions are ruling at the moment. Time to take stock of what 2008 shall hold for us.
Political: The Gujarat poll outcome, whichever way, shall apply pressure on the Congress for an early poll or at least
preparing for one. If Modi wins, BJP shall apply pressure at the Centre to cash in on the wave. But if Modi loses, Congress
will waste no time in making good of his lapse. Thus late 2008 or early 2009 shall be a year of Lok Sabha polls. A populist
budget will be is natural outcome in this scenario. The 'Aam aadmi' will come to the forefront and a lot of freebies will
flow out to woo the masses. In other words, there will be unproductive allocation of assets, which is a negative trigger for
the stock markets.
Positives like rationalisation of tax slabs in view of the robust collection and high compliance, or an amnesty from interest
and penalty to first time tax payers on their grand disclosures, reduction in corporate tax, taming inflation, may be
sidelined by the hesitant and uncertain sentiment. Announcements of many more exemptions and collection of such
funds for nation building may help the market but their immediate impact will cool off.
The nuclear deal, too, may cool off and Nandigram like episodes may remain in the news highlighting the failure of the
government to protect and safeguard the 'have nots'. Politics may provide the real pressure in 2008.
Economic: Despite being populist, Finmin may not want to give up the growth momentum. The 'India shining' feel may
spread all over unlike the urban shine in the pre election days of the last time. Efforts to reach the gains all across the
country will be undertaken.
Rural projects in the field of irrigation, housing, modernizing agriculture, power and telecom projects for rural India shall
be the priority. The announcement of developing 1600 acres of land along the Mumbai-Pune expressway is a beginning in
this direction. Many more such projects shall be announced soon.
Infrastructure: Road building, housing, construction, power generation, transmission and distribution will be the areas of
interest in 2008.
Finance: Retail banking, investment banking, housing finance and capital market related activities or floating of mutual
fund NFOs and IPOs etc will be the order of the day.
FMCG: A sector which has yet to take off in the current boom is busy adjusting its high topline volume to organized
retailing. This segment is now becoming a huge volume play, which will propel the wings of this segment.
Nuclear energy is another area of interest and the recent announcement of RIL picking up 49% in eight blocks of uranium
exploration in Australia sums up what's in the offing, uranium which was $17 a pound in 2000 is ruling at $136 a pound
today. The day of nuclear power generation will arrive in 2008 with BHEL, NTPC, Areva, Alsthom, Siemens and ABB
hogging the limelight.
Mega rights to finance huge capex programmes and acquisition shall shrink the liquidity with investors.
Demerger of large companies and floating IPOs of subsidiaries shall be the new trend.
Mutual funds shall grow in size and the market will witness an expansion with more and more investors joining the
mainstream. Pension funds and endowment funds will be the new forces. Slowing down of hedge funds flow may be
neutralised by garnering new revenues.
Commodity exchanges, the markets of the future, may record their arrival with a vengeance.
Last but not the least, Vikram Pandit as CEO of Citibank is authenticating the arrival of Indian managers on the global
map. His appointment is only the beginning of a lot more appointments in the coming year. While India shall be arriving,
2008 has arrived.
Sideways or corrective moves likely
TRADING ON TECHNICALS
By Hitendra Vasudeo
After a few bearish candle stick formations in the last couple months, the Sensex is not responding strongly at higher
levels possibly letting off some steam or gathered some
steam for the calendar year 2008 next week. Logically, the
Sensex was expected to be weak or correct after the Dark
Cloud/Engulfing Bear candlestick pattern on 13
th
December
2007 after attaining a high of 20498. The result of these
patterns was witnessed last week as the Sensex fell by
approximately 4.41%. The volumes registered were
historically the highest on the Sensex in the last couple of
weeks and with negative candle formation. An indecisive
weekly candle on the back of higher volumes would mean a
downward correction or a sideways consolidation as a
launching pad for a new high.
The wider Sensex range for movement this week will be
20500-18100. The Sensex failing to sustain at higher levels
will put the pressure back on to the support levels, the levels
from where the recovery was witnessed last time.
2
Last week, the Sensex opened at 20032.67 and maintained the
same as the high for the week. Further, it fell down to a low of
18886.40 to close the week at 19147.46. The weekly trend is
down and can turn up on a rise and close above 20500.
Support will be at 18800-18300—18100-17100. Resistance will
be at 19900-20500.
If the Sensex falls and closes below 18100 then expect a slide
towards 17100 at least. If that happens, then it will confirm a
topping pattern formation for the Sensex for short to
intermediate terms.
On daily charts, the Sensex has held the trend line. The trend
line is taken from the low of 17171 and 18182. For the last 3
trading days, the Sensex has held on to that trend line and
oscillated around it. If the Sensex has to move up then it has to
be now at the earliest. Otherwise, expect a sustained crash in
the near term. If we go by that logic, then every rise is meant
for selling as a general rule of strategy. Exit long positions in
loss or profit on rise to 20500 from hereon.
Currently for the immediate near term if the low of 18182 is
violated then expect a gradual slide to a lower range. The bias
can be to sell and exit long on a general snap shot. Expect a
sideways to corrective phase or sideways consolidation for a
further upmove in days to come.
Strategy for the week
Exit long and sell on rise to resistance levels and re-enter long
in frontlines only on breakout and close above 20500.
WEEKLY UP TREND STOCKS
Let the price move below Center Point or Level 2 and when it move back above Center Point or Level 2 then buy
with what ever low registered below Center Point or Level 2 as the stop loss. After buying if the price moves to
Level 3 or above then look to book profits as the opportunity arises. If the close is below Weekly Reversal Value
then the trend will change from Up Trend to Down Trend. Check on Friday after 3.pm to confirm weekly reversal
of the up Trend.
Last
Center
Relative
Weekly
Up
Close
Point
Strength Reversal Trend
Scrips
Level 1 Level 2
Level 3 Level 4
Value
Date
Stop
Loss
Buy
Price
Buy
Price
Book
Profit
Book
Profit
TRIVENI ENGG
168.80 126.8
157.4
176.5
188.0
218.6
72.5
164.3
30/11/07
INDIA INFOLINE
1547.00 1170.3
1403.3
1492.7
1636.3
1869.3
71.7
1416.7
26/10/07
EDUCOMP SOLUT 3830.75 3203.8
3653.8
3926.9
4103.8
4553.8
71.1
3890.5
23/11/07
RELIANCE ENERGY 1940.00 1607.3
1814.3
1895.7
2021.3
2228.3
70.6
1879.8
07/12/07
VIDEOCON INDS
625.00 512.7
590.7
634.3
668.7
746.7
70.4
559.5
16/11/07
WEEKLY DOWN TREND STOCKS
Let the price move above Center Point or Level 3 and when it move back below Center Point or Level 3 then sell
with what ever high registered above Center Point or Level 3 as the stop loss. After selling if the prices moves to
Level 2 or below then look to cover short positions as the opportunity arises. If the close is above Weekly Reversal
Value then the trend will change from Down Trend to Up Trend. Check on Friday after 3.pm to confirm weekly
reversal of the Down Trend.
Last
Center
Relative
Weekly Down
Close
Point
Strength Reversal Trend
Scrips
Level 1 Level 2
Level 3 Level 4
Value
Date
Cover
Short
Cover
Short
Sell
Price
Sell
Price
Stop
Loss
I-FLEX SOLUTIONS 1472.00 1216.3
1390.3
1482.7
1564.3
1738.3
25.05
1536.50 20/12/07
3
SATYAM COMPUT 427.70
379.7
409.0
419.7
438.3
467.6
25.83
430.62
14/12/07
PATNI COMPUTER 313.15
273.2
301.1
317.0
329.1
357.0
26.13
324.16
20/12/07
TATA MOTORS
711.00
608.7
677.7
713.3
746.7
815.7
29.30
739.75
20/12/07
PUNTER'S PICKS
Note: Positional trade and exit at stop loss or target which ever is earlier. Not an intra-day trade. A delivery
based trade for a possible time frame of 1-7 trading days. Exit at first target or above.
Scrips
BSE
CODE
Last
Close
Buy Price
Buy On
Rise
Stop Loss Target 1 Target 2
Risk
Reward
CAMLIN FINE
532834
66.40
63.00
74.45
61.00
82.8
96.2
3.03
GRUH FINANCE
511288 221.60
203.05
229.00
195.65
249.6
283.0
1.08
HINDUSTAN BIO-SCIENC 532041
9.25
8.99
9.40
8.13
10.2
11.5
0.83
PETRON ENGINEERING
530381 419.10
406.50
435.00
370.00
475.2
540.2
1.14
RAM RATNA WIRES
522281
50.65
49.40
51.95
47.75
54.6
58.8
1.34
USHA MARTIN INFOTECH 532398
9.96
9.89
10.39
9.02
11.2
12.6
1.36
BUY LIST
Scrip
Last Close Buy Price Buy Price Buy Price Stop Loss Target 1 Target 2
Monthly
RS
ESSAR SHIPPING
124.20
97.96
89.85
81.74
55.50
166.7
235.4
71.2
GILLETE INDIA
1440.00
1263.33 1182.50 1101.67
840.00
1948.3
2633.3
68.59
EXIT LIST
Scrip
Last Close Sell Price Sell Price Sell Price Stop loss Target
Monthly Relative
Strength (RS)
I.C.I. INDIA
530.45
555.21
571.95
588.69
642.90
413.3
44.4
CUMMINS INDIA
397.25
409.48
415.50
421.52
441.00
358.5
45.23
IFCI
76.75
91.57
97.22
102.88
121.20
43.6
46.13
GRASIM INDUSTRIES
3543.00
3643.42 3690.50
3737.58
3890.00 3244.4
51.55
* Sayaji Hotels will go places in coming years. It has ambitious expansion plans in the retail food business. Its restaurant
'Barbeque Nation' is doing well and it recently tied-up with Ginger Hotels of the Taj Group for 'Buffet Junction'.
TOWER TALK
* As per grapevine, Bilpower is likely to enter a joint venture with NTPC, which will change its fortunes. Just buy it and
hold for couple of months.
* GM Breweries is on fire. A leading operator is playing with the counter and is tipped to take the scrip beyond Rs.200 in
the short term. Keep a watch on its volumes.
* The much-awaited BIFR approval has come for Artson Engineering and the company is meeting to finalize the equity
placement to Tata Projects. Still lot of steam left in the scrip.
* FCS Software & Sathavahana Ispat may continue to move up as they make preferential allotments in the near future.
* Sanjivani Parenteral has moved up sharply last week on the back of a few announcements. Take this opportunity and
book profit immediately.
* Ramsarup Industries plans to merge group companies, which may lead to re-rating of the company. Scrip may remain
in action this week as well. Hold on to your positions.
* Tonira Pharma may post a significant loss with the excise department sealing some of its warehouses for non-payment
of Rs.4.81 cr. excise. Better to exit now.
* Cybele Industries is on an upswing as the market is evaluating its real estate potential. Two big listed realty companies
may enter a joint venture for developing its Chennai land.
* Stelco Strips is on the growth path and may see a significant upside after its Q3 and Q4 results.
* Salora International is an emerging retail story waiting to unfold. Medium term investors may consider it on declines.
* Compucom Software is witnessing increased volume after it has split its share to Rs.2 Face Value. It has significant
earnings from treasury and windmill operations in addition to its educational software and BPO business.
* The grey market premium on IPOs were stable last week with Aries Agro at Rs.15, BGR Energy at Rs.325, Brigade
Enterprises at Rs.15, Burnpur Cement at Rs.5, e-Clerx at Rs.25, Manaksia at Rs.25, Porwal Auto at Rs.7, Precision Pipes
at Rs.15 and Transformers & Rectifiers at Rs.295.
* Libor tumbles down 50 bps and European Central Bank to pump $500 bn. is a positive for equities and may lead to a
rally in coming days. Best chance to exit in trading stocks and sit on cash.
4
Rama Papers Mills Ltd. (Code: 500357)
Rs.32
BEST BETS
Promoted by Pramod Agrawal in 1985, Rama Paper Mills Ltd. (RPML) manufactures newsprint for the newspaper
publishers and writing/printing paper for government supplies as well as for printing of text books and note books. It
also produces coated/uncoated duplex board used to make packing material like cartons for industrial purpose and
packaging of articles in pharmaceuticals, soaps, paste, apparels and tea. However, the company derives 60% of its
revenue from newsprint, which is totally exempt of central excise and sales tax. It has wide client base including
Hindustan Times, Jan Satta, Indian Express, Amar Ujala, Dainik Jagran, Gujarat Samachar, Dainik Bhaskar etc. RPML
enjoys strong brand royalty as 80% of its customers are dealing with the company for more than 5 years. And since the
company is not into exports, it is not affected by the rupee appreciation.
RPML has three manufacturing units spread across 12 acres of land at Kiratpur in Dist. Bijnor in Uttar Pradesh. To cater to
the rising demand, it augmented its production capacity from 39,500 TPA to 44,000 TPA in December 2006 by installation
of some balancing equipments. More importantly, the company has put up a captive power plant of 6 MW, which
commenced operation from April 2007. It incurred a total capital expenditure of Rs.31.50 cr. for both the projects financed
by a term loan of Rs.22 cr. and balance by internal accruals. Due to this captive power generation, the company is able to
make substantial savings in power and fuel costs to the extent of Rs.450 per tonne of paper produced on a conservative
basis. This means a straight addition of minimum Rs.2 cr. to its bottomline. Besides, only 4 MW is used for captive
consumption leaving the balance 2 MW as surplus, which the company is free to sell to others or the grid. To diversify its
product portfolio, RPML is putting up an additional machine to manufacture tissue and poster paper with a capacity of
16,320 TPA at a capex of Rs.24 cr. For this, the company has already taken a bank loan and is planning to start production
by mid 2008. With this its total capacity will stand increased to 60,000 TPA.
Moreover, the company is contemplating some modifications in all the machines in phases to be completed by 2009-10,
which will further enhance its capacity to 80,000 TPA. To fund its growth plan, the company raised Rs.8.75 cr. in early
2006 through private placement of 25 lakh shares at Rs.35 and has again raised Rs.7.50 cr. through preferential allotment
of around 21 lakh shares at Rs.36 to the promoter group. Hence, its current fully diluted equity stands Rs.9.7 cr. with 41%
promoter stake. Financially, the first two quarter results of the company were not so encouraging possibly due to a
disruption in its manufacturing facility. Thus for FY08, it is estimated to clock a turnover of Rs.80 cr. with net profit of
Rs.5.50 cr. on the back of higher operating margin. But for FY09 it can report more than Rs.100 cr. of sales and PAT of
Rs.8.50 cr. This means an EPS of Rs.6 and Rs.9 for FY08 and FY09 respectively. Besides, against its gross block of Rs.79 cr.,
the company is currently available at an enterprise value of only Rs.70 cr., which is extremely cheap. Investors are
strongly recommended to buy the scrip at current levels as the share price can shoot up to Rs.50 in the short-term and
Rs.75 in the medium-to-long-term.
Balaji Amines Ltd. (Code: 530999)
Rs.125
Balaji Amines Ltd. (BAL) was set up in 1988 to manufacture aliphatic amines in India to cater the growing requirements
of value based speciality
chemicals. Since then, it has
emerged as the leading
producer of methylamines,
ethylamines
and
their
derivatives. Importantly, BAL
is among the few handful
manufacturers
across
the
world as amine manufacturing
technology
is
a
closely
guarded process. Importantly,
the
company
is
using
indigenously
developed
technology i.e. without any
foreign technical collaboration.
Thus, it is one of the lowest
cost
producers
of
methylamines in the world.
Today, it
also produces
speciality chemicals that are
5
import substitutes like Morpholine, hydroxylamine, N-Methyl Pyrrolidone etc and a few natural products (herbal
extracts) such as solanesol, calcium sennosoid, coleus forskohlii, camptothesin etc. The company's products find
application in various important industries like pharmaceuticals, agrochemicals, water treatment, rubber chemicals, dyes
& pigments, paper, explosives, rocket fuel, oil refineries, photography etc. Morpholine, which is being manufactured by
the company for the first time in India through indigenously developed technology, finds extensive application in the
manufacture of corrosion protection compounds used in refineries, ships, steel plants etc. Being ISO 9001-2000 certified,
its products are very well accepted in the international market as it derives nearly 15% of its total revenue from exports to
several countries such as UK, USA, Canada, Latin America, Germany, Italy, Middle East, South Africa, France, Brazil,
Mexico etc.
BAL has two manufacturing facilities - one at Sholapur, Maharashtra, for amines & derivatives and the second at
Hyderabad for natural products. On the back of regular expansion, it has an installed capacity of 18000 MTPA of methyl
amines, 3000 MTPA of ethyl amines and 13000 MTPA of intermediates. In July 2007, it revamped its methyl amines plant
by adding balancing equipments and enhancing the production capacity further by 30%. It has a strong presence in the
domestic market with major clients from the pharma sector including Aurobindo, Aventis, Clariant, Dr. Reddy's Labs,
Glaxo, Merck, Ranbaxy, Sun Pharma, Wyeth, Wockhardt, etc. Earlier, it also entered into a long-term strategic
arrangement with BASF for supply of N-methyl-2-pyrrolidone. Notably, the company is the only manufacturer for
Morpholine and N-methyl-2-pyrrolidone (NMP) with a monopoly status in India and has recently set up a separate
dedicated plant at Solapur to manufacture them with a capacity of 2000 and 3000 MTPA respectively. The company has
also established an in house hydrogen plant to cater to its needs and is successfully running chlorine chloride plant
(solutions & solid) with a capacity of 5000 MTPA. Last fiscal, it also put up a plant for manufacture of Co-Enzyme Q10.
Meanwhile, BAL boasts of having two state-of-the-art R&D centres at both its plants. In fact, its Hyderabad R&D unit,
which is approved by the Department of Science & Technology, has identified some new products under natural products
and processes that are being developed. It has also successfully carried out R&D activities in process automation of
various plants to reduce the consumption of raw materials and utilities. Financially, the company's performance is
satisfactory and it has recorded 10% growth in sales to Rs.99 cr. whereas PBT was flat at Rs.10 cr. for H1FY08. However,
as the company has started to make tax provisioning every quarter (instead of the last quarter earlier) from this fiscal
only, it posted 30% fall in net profit at Rs.6.90 cr. Accordingly, it is expected to clock a turnover of Rs.200 cr. with PAT of
Rs.12.75 cr. for FY08. This will lead to an EPS of Rs.20 on its equity of Rs.6.50 cr. Incidentally, BAL is not affected by the
rupee appreciation as its raw material import is almost equivalent to its export revenue. In fact, it is expected to improve
its profit margin going forward due to various initiatives taken by the company. It has the potential to report a topline of
Rs.230 cr. with a bottomline of Rs.16 cr. i.e. an EPS of Rs.25. Investors are advised to buy it at current levels with a price
target of Rs.180 in 9-12 months and Rs.240 in 15-18 months.
D. S. Kulkarni Developers Ltd.: For the medium-term
ANALYSIS
By Devdas Mogili
D. S. Kulkarni Developers Ltd., (DSKDL) is a 16-year old Pune, Maharashtra based company established in 1991. The
company entered the capital market with a public issue in April 1993 to part-finance its working capital requirements for
its existing and future activities. It also came out with a rights cum follow-on public issue last year, which was heavily
oversubscribed. D. S. Kulkarni is the chairman and managing director of the company.
The company is engaged in the construction of residential and commercial buildings and has acquired plots for
development in Mumbai and Pune, which will provide excellent opportunities for development in the future.
Subsidiaries: DSKDL has incorporated a subsidiary company named 'DSK Developers Corporation' (DSKDC) in the State
of Delaware, USA, and was subsequently registered to do business in the State of New Jersey also. The primary focus of
DSKDC is on search and acquisition of properties in New Jersey and New York, USA. It has acquired six properties in
New Jersey and will develop them further in FY08.
Completed Projects: DSKDL's completed projects in Pune include Vanashree at Nav Sahyadri, Ashwini Apartments at
Rasta Peth, Om Ganesh Company Housing Society at Budhwar Peth, Amit Apartments at Model Colony, Suryalok
Nagari at Hadapsar, Dnyaneshwar Nagari at Pune-Satara Road, Haryali Phase I at Modi Baug and Saraswati Vinayak at
Paud Road. In Mumbai, the projects include Kalyan Nagari Phase I and II at Kalyan (W), DSK Saraswati at Malad (E),
DSK Trilok at Dadar (W), DSK Sahil at Vile Parle (E) and DSK Harita at Kandivili (E). Its other ventures include DSK
Motors, DSK Infotech, DSK School, DSK World Man Computers etc.
Current Projects: Its projects currently under construction are in Pune, Mumbai and Nashik. At Pune, the projects under
construction are DSK Vishwa Phase I, II and III, DSK Saptasur Phase IV, Vishwa Villa, DSK Sayantara, DSK Sundarban,
DSK Frangipani, DSK Garden Enclave and Gulmohar. In Mumbai the projects include DSK Madhuban and DSK
Durgamata Towers at Cuffe Parade in South Mumbai.
6
SEZ: The company has received an in-principle approval from the Special Economic Zones Board of Approvals to
develop a Multi-services SEZ of 250 acres at Fursungi in Pune district. It has executed a Term Sheet with GTC Real Estate
NV of Netherlands (GTC) for joint development of this SEZ. The said SEZ is proposed to be developed in a SPV Company
to be equally owned by DSKDL and GTC. GTC is expected to invest about. US $96 million into this project in a phased
manner.
Branding Initiative: Earlier DSKDL had its activities restricted to in and around Pune city. But now it has acquired land
and expanded its activities in Bangalore and Chennai. The company has also purchased seven properties in USA through
its US subsidiaries to create its global footprints.
Awards: DSKDL is the recipient of several awards like Hind Ratan Sword of Honour, CM Shah Concrete Technology
Award, Kumar AESA award for the best housing complex (DSK Ranwara), AESA award for the best glazing work 3S
station (DSK Toyota) and was ranked as the second fastest growing real estate company in India, Construction World Top
Builders Award 07, Construction World NICMAR Award 2007 and CNBC Awaaz, CRISIL Real Estate Award 2007.
The company has been integrated as a member of Global Growth Company by World Economic Forum, an institution
based at Switzerland. In 1999-2000, it was awarded ISO 9001 certificate from the Quality Certification Bureau Inc.,
Canada, as well as from the Dutch Council for Accreditation.
Performance: DSKDL has reported impressive results for FY07. It clocked net sales of Rs.229.74 cr. with a net profit of
Rs.35.16 cr. netting an EPS of Rs.16 for 2006-07.
Financial Highlights:
(Rs. in lakh)
Latest Results: DSKDL has come out with
very encouraging results for Q2FY08. It
clocked net sales of Rs.89.65 cr. with net
profit
of Rs.15.26 cr.
posting a
basic/diluted EPS of Rs.6.94 against
Rs.3.79 in Q2FY07. The annualized EPS
works out to Rs.27.76.
Financials: The company has an equity
base of Rs.22 cr. and with reserves of
Rs.254.25 cr. the book value of its share
works out to Rs.125.57. In FY07, the
company's net worth has risen by 702% to
Rs.27,625 lakh
from Rs.3,445 lakh in
FY06.
Net worth for FY07 mainly
constitutes of the share premium of
Rs.20,078 lakh due to the increased share
capital by way of composite issue. The
debt:equity ratio has improved from 2.03
times in FY06 to 0.29 times for FY07.
Particulars
QE 30/09/07
QE 30/09/06
YE 31/03/07
Net Sales/Income
8965.22
3886.82
22974.40
Other Income
112.18
347.87
998.27
Total Income
9077.40
4234.89
23972.66
Operation Expenses
Land Dev Const Expenses
6847.38
2821.19
17807.66
Admn. Expenses
103.13
190.76
454.70
Staff Expenses
108.68
71.99
321.53
Selling Expenses
205.99
147.86
782.23
Int. & Finance Charges
15.95
5.10
261.22
Depreciation
16.01
11.04
45.97
Misc. Expenses written off
56.80
-
227.23
Total Expenses
7353.94
3247.94
19900.54
PBT
986.75
4072.12
Provision for taxation
Current tax
195.00
150.00
549.88
Deferred Tax (Asset)
-
-
(5.22)
FBT
2.62
2.65
11.22
Net Profit
1525.84
834.10
3516.25
Paid up equity
2200.10
2200.10
2200.10
Res. Ex Rev Reserves
25424.54
Basic/Diluted EPS (Rs)
6.94
3.79
16.00
Share Profile: The share of DSKDL is listed and traded on the BSE under the B2 segment. It touched a 52-week high/low
of Rs.428/224. At its current market price of Rs.349, it has a market capitalisation of Rs.831 cr.
Dividends: The company has been paying dividends as shown below:
March 2007 - 20%; March 2006 - 20%; March 2005 - 7%; March 2004 - 7%; March 2003 - 7%.
Prospects: The real estate story in India is growing bigger by the day. The increase in purchasing power and exposure to
organised retail formats has redefined the consumption pattern. As a result, retail projects have been mushrooming even
in B-grade cities and the retail market is expected to grow at around 35% p.a. This growth is facilitated by favourable
demographics, increased purchasing power, existence of customer-friendly banks and housing finance companies,
professionalism in real estate and reforms initiated by the government to attract global investors.
India has emerged as the most attractive destination for retailers in 2007. According to the latest AT Kearney study,
India leads the annual list of most attractive emerging markets for retail investment followed by Russia and China for
the third year in a row.
Demand for office premises is reported to be growing owing to establishment of IT/ITES services. By 2010, the IT sector
alone is expected to require 150 million sq. ft. of space across major cities.
According to India Retail Report 2007, shopping malls and entertainment houses such as multiplexes and organised retail,
which currently account for only 4.6% of the US $270 billion Indian retail sector, is expected to grow at 37% in 2007 and
42% in 2008. The report adds that organised retail in India has the potential to add over US $45 billion business by 2010.
This is expected to create a demand for around 220 million sq. ft. of retail space by 2010.
7
As the tourism industry is growing rapidly, the demand for hotels and resorts is also increasing and the government's
encouragement to SEZ augurs well for construction companies. The prospects for real estate developers, therefore, are
quite promising to say the least.
Conclusion: The construction sector is an important constituent of every economy and accounts for about 12% of India's
GDP. The Indian real estate has huge demand potential in almost every sector, especially in commercial, residential
and retail. It is estimated that in the residential sector there is a housing shortage of 19.4 million units out of which 6.7
million are in urban India.
At its current market price of Rs.349, the DSKDL share is discounted less than 14 times against the industry average P/E
multiple of 27 times. Besides, real estate stocks are the flavour of the season with the likes of DLF, Unitech, Sobha
Developers, Parsvnath, Omaxe etc. are being eagerly sought after by investors. DSKDL is quoting at a reasonable price
and there is substantial scope for appreciation. Buy for significant gains in the medium-to-long-term.
Sensex 20,000 proves to be a strong resistance
MARKET REVIEW
By Ashok D. Singh
The market snapped its 'three weeks' winning streak to post losses in the week ended Thursday, 20 December 2007 on
profit booking in index pivotals. The Sensex lost 868.26 points or 4.33% to 19,162.57 for the week and the NSE Nifty was
down 281.20 points or 4.64% to 5,766.50 for the week. The market witnessed high volatility throughout the week as global
markets remained subdued. The market was closed on Friday, 21 December 2007 on account of Bakri Eid.
Trading for the week started on a weak note with the market undergoing major correction on Monday, 17 December 2007.
The 30-share BSE Sensex plunged 769.48 points or 3.84% to 19,261.35 tracking weak global markets.
The Sensex slipped 181.71 points or 0.94% to 19,079.64 on Tuesday, 18 December 2007, in a volatile trading session,
FMCG, healthcare and consumer durable stocks gained. Banking, metal and capital goods stocks edged lower.
On Wednesday, 19 December 2007, the Sensex rose 12.32 points or 0.06% to 19,091.96 amid mixed trend in index pivotals.
The Sensex rose 70.61 points or 0.37% to 19,162.57 on Thursday, 20 December 2007, as profit booking erased some of the
early gains in volatile trades. Global cues were mixed.
The annual inflation, based on the wholesale price index (WPI), rose 3.65% in the week ended 8 December 2007 and was
lower than the previous week's 3.75% rise.
The country's GDP growth can be scaled up to 10% by 2012 with the right set of policies, but the subprime crisis in the US
might impact exports and capital flows, prime minister Manmohan Singh said on Wednesday, 19 December 2007, at a
meeting of state chiefs and other top policymakers.
FIIs may resort to year-end profit taking. They follow the calendar year as their accounting year. FIIs had been the key
drivers of the recent rally. Their inflow in calendar year 2007 totalled Rs.67,329.50 cr. (till 19 December 2007). They were
net buyers to the tune of Rs.1,422 (till 19 December 2007).
Reliance Industries declined 4.17% to Rs.2714.70 in the week. As per reports, Reliance Industries (RIL) has paid advance
tax of Rs.1045 cr. in the third quarter ended 15 December 2007 compared to Rs.440 cr. in the corresponding quarter of the
previous year.
Reliance Communications slumped 7.30% to Rs.706.50 75 in the week. It completed the acquisition of US-based Yipes
Holdings that would give the company access to a Rs.4,00,000 cr. global enterprise data market.
Reliance Energy (REL) rose 1.48% to Rs.1939.85 75 in the week. The company is reportedly planning to foray into Africa. It
is believed to be in talks with the governments of Botswana, Tanzania and Zambia for setting up generation capacities of
over 1,000 megawatt. The company's African safari will be followed by a bid for a 1,200 MW greenfield project at Yanbu
in Saudi Arabia, the reports added.
State Bank of India declined 5.39% to Rs.2265.20 in the week. It shelled out Rs.1090 cr. as advance tax for the third
installment, up 26.7% over the tax it paid in the corresponding period in the previous year.
Tata Motors will unveil the world's cheapest car at an auto show in India next month. Tata Motors will showcase its
$2,500 car at the Auto Expo in New Delhi on 10 January 2008, with a commercial launch planned for later in 2008.
IFCI tumbled 31.72% to Rs.76.75 in the week after the company, on Wednesday, 19 December 2007, called off the exercise
to rope in a strategic partner through the private placement of 26% equity stake.
The Sensex declined 868.26 points to close at 19,162.57 last week. The market had posted gains during the preceding three
weeks in a row and is expected to remain volatile in the coming week as December 2007 derivatives contracts expire on
Thursday, 27 December 2007. Trading for the week ahead will be truncated, as market will remain closed on Tuesday, 25
December 2007 on account of Christmas. Volumes may be low as foreign fund managers will be away on annual vacation.
The domestic market will also be influenced by the global trend. Investors remain nervous on concerns that credit market
crisis may intensify further. Any major sell-off in global markets may cast its shadow here as well.
MARKET
8
Long-term bullish trend is yet alive
By G. S. Roongta
Last week that ended on Thursday, 20
th
December 2007, a day earlier on account of the Bakri Eid holiday on Friday, 21
st
December 2007, was disappointing as the market encountered selling pressure at higher levels.
The Sensex, which had attempted to cross the earlier peak of 20,228 and the CNX Nifty had hit a new high at 6185.4 on
13
th
December 2007 proved to be utterly deceptive. The Sensex at its new high of 20,498.11 on 13
th
December 2007 lost
1335.54 points during the week under review. The CNX Nifty, too, lost sizeable ground at 5766.57 against
its top of 6185.40 made on 13
th
December 2007.
9
As a result, traders who had taken positions in anticipation of a breakout found themselves in an
alarming position and were forced to square up their positions and cut short their losses. Despite this, the
market tried its level best to rise but each rise of 100 points even in intra-day trading attracted heavy
selling pressure at higher levels.
Last week, the market opened lower by 465 points at 20,032.67 on Monday, 17
th
December 2007 and
drifted lower to 19,177.19 while closing with a marginal recovery at 19,261.35 thereby making this fall of
770 points the second largest fall of 2007.
G.S. Roongta
The US Federal rate cut, which had created a good deal euphoria prior to the announcement, also delivered a rude kick as
the cut was by 25 bps only and not by 50 bps as expected.
This turned the sentiment negative globally as the Dow Jones itself closed in the red by over 200 points on the day of the
announcement. Thus traders who had built up large plus positions in anticipation of the larger rate cut were at the mercy
of the bears who took full advantage of selling short heavily to defeat the bulls and teach them a lesson for inflating stock
prices unreasonably high.
The Sensex stocks suffered heavily by drifting over 10% to 20% within the week comprising just four trading sessions.
Prominent among them were cement stocks, infrastructure, banking and a mix of other sectors.
ACC, Gujarat Ambuja and Grasim lost sizeable grounds. ACC, which was traded over Rs.1125 on Friday, 14
th
December
2007, closed lower breaking the 4-figure mark. Grasim, too, lost more than 250 points from its high of the week and 600
points from its top. It is said that the government has again started pressurizing cement manufacturers to hold on to the
prices at the current level despite higher input cost on account of a rise in fuel and coal prices. Cement manufacturer were
to hike prices by Rs.5 per 50 kg bag w.e.f. December 2007 itself but were asked by the government not to do so and bare
the brunt of the rise in input costs. This news led to the unloading of positions in cement stocks by the bulls.
Similarly, infrastructure stocks ABB, L&T, BHEL and Suzlon Energy suffered on heavy selling pressure throughout the
week and lost sizeable ground.
L&T drifted from a high of Rs.4670 to as low as Rs.3970 on 20
th
December 2007 losing 700 points straight away. BHEL,
which made a high of Rs.2930 ex-bonus also lost sizeable grounds at Rs.2370 losing equally as much in percentage terms
as L&T. ABB and others followed suit. It may be noted that these stocks were the star performers earlier.
Banking stocks also faced large scale profit-booking at higher levels. SBI, ICICI Bank, HDFC Bank, PNB, BoB, BoI, Canara
Bank and Andhra Bank all lost sizeable grounds during the week.
Under the circumstances, market experts & analysts who had telecast their views about the market achieving a new high
have all proved to be wrong. The higher levels
did not maintain itself even for a single day
and thus their forecast of the BSE Sensex
heading over 22,000 to 24,000 has shattered all
hopes for the time being. Investors and traders
have suffered heavily on hopes of a fresh
breakout beyond the BSE Sensex 20,228 and
Nifty 5880 after the US Federal rate cut.
According to me, the market that needed to
consolidate was forced to make new highs
and proved to be dangerous. Any such
attempt made in a hurry leads to a false move
followed by heavy liquidation as has rightly
happened last week.
The long-term bullish trend is yet alive and
there is no cause for worry for long-term
investors. Short-term traders, however, will
suffer on such occasional liquidations. But it
also provides an opportunity for delivery
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based investment and a boon for investors who missed the train earlier and felt that value buying had become very costly.
L&T, BHEL and ABB, which had lost sizeable grounds, might turn out to be truly attractive now.
Cement stocks, too, have become very attractive as the growth story of cement remains intact despite the rise in input
costs, which can be offset by higher productivity or better utilization of capacity since the demand for cement is yet over
8% to 10% more than the supply.
Drifting stock prices should be taken as an opportunity to buy good stocks at lower prices and avail of their real worth.
SECTOR FOCUS
MUTUAL FUNDS
Pharma Funds – Part I
By Devangi Bhuta
The Healthcare Index of the BSE, the barometer of the pharma and healthcare space, has been one of the better performers
in the last one month. This comes as a surprise considering that the pharmaceutical space was out of flavour for quite
some time now.
From developments on specific pharma counters over the last few weeks, it appears that this sector is witnessing some
kind of a re-rating. Amidst this scenario, the performance of the pharma schemes is as follows.
RETURNS
SCHEMES
1 mth
3 mths
1 yr
3 yrs
NAV
(19/12/07)
Franklin Pharma Fund
9.02
5.63
7.28
12.06
29.9
UTI Growth Sector Fund - Pharma and Healthcare
NA
8.66
11.82
11.68
23.97
Reliance Pharma Fund - Growth
10.15
10.88
44.8
29.6
28.47
JM Healthcare Sector Fund
10.13
9.88
10.65
13.42
19.14
SBI Magnum Sector Umbrella - Pharma
8.09
3.48
3.08
17.78
35.92
BSE-HC
9.69
16.38
13.96
12.89
--
Pharmaceuticals and Healthcare is a complex segment and the business models of the companies within this sector are
extremely varied with different levels of complexity. Bigger companies like Ranbaxy, Dr. Reddy's Laboratories (DRL) and
Glenmark have successfully tapped the US markets while contract research and manufacturing has been the key USP of
many Indian success stories like Divi's and Dishman. Besides the regulated markets, the trend appears to garner volumes
growth from developing markets like Africa for many pharma companies.
The controversy over combination drugs has added to the uncertainty in this space.
With this kind of complexity, is it better to back pharma sector specific funds or back a couple of stocks in the cash
market? This question merits a fundamental check.
Franklin Pharma Fund
With a lower turnover of 79% as per the November 2007 factsheet, the scheme has been an underperformer. The fund has
held its portfolio constant as such. It has fundamentally good companies like Sun Pharma, Dr Reddy's and Dishman. It
has recently exited from Matrix Labs and Aventis, which appears to be a good move. The fund has a mix of large cap and
mid cap stocks.
UTI Growth Sector Fund - Pharma and Healthcare
Another disappointing performer, the portfolio in this scheme appears to have churned but marginally.
Reliance Pharma Fund - Growth
This fund has been an outperformer over the last one year within this category and among other comparable schemes as
indicated in the table. Divi's Labs, Ankur Drugs and Dishman Pharma rank among the top three in the scheme since a
long time. The strategy appears to be to buy and hold here.
JM Healthcare Sector Fund
Another disappointing performer, this scheme is highly skewed towards Glenmark and Dishman Pharma. These two
stocks together constitute 30% of the total portfolio rendering it significantly risky as compared to other schemes focused
on pharma. Its churn rate, however, is on the lower side.
SBI Magnum Sector Umbrella – Pharma
One of the poorest performers in this segment, the SBI scheme focusing on Pharma hardly inspires an investment.
Thus the pharma sector specific schemes have given extremely poor returns when compared to other diversified schemes
or to what equity sector specific funds have generated. The correct strategy here it appears is to back one or two stocks in
the cash market which have better visibility like those in the CRAMS space. Moreover, investing in pharma space has a
significantly higher risk and investors must keep this in mind before considering an exposure here.
By Saarthi
STOCK WATCH
10
To take advantage of the increased demand for Indian pharmaceutical products in the international market, Ahlcon
Parenterals (India) Ltd. (Code: 524448) (Rs.67.75) which manufacture life saving intravenous fluids and medical
disposables has made arrangements with several international agencies for increasing its exports and has recently added
many new foreign customers. It has already filed product dossiers in both regulated and unregulated markets and
registration formalities with more than 15 countries are in progress. Accordingly, the company has upgraded its
production facilities to conform to the latest GMP standards and specific requirements of giant pharma companies. Since
its plant is working at 100% capacity utilization, the company has undertaken undergoing aggressive expansion from 59
million units to 162 million units. At the same time, it will continue to produce 32 million units of large volume
parenterals. On the back of lacklustre performance for Q2FY08, scrip has been an underperformer for quite long time. As
the company faces stiff competition in the domestic market, it may end FY08 with sales of Rs.55 cr. with net profit of
Rs.7.50 cr. i.e. an EPS of Rs.10 on its equity of Rs.7.20 cr. But with new capacity becoming operational and increased
revenue from exports, it has the potential to report an EPS of Rs.14 for FY09. Keep accumulating on declines.
****
Seshasayee Paper & Boards Ltd. Ltd. (Code: 502450) (Rs.200.55) manufactures printing/writing papers,
packing/wrapping papers and speciality papers. Presently, it has pulping capacity of 230 TPD and paper manufacturing
capacity of 115,000 TPA. To enhance its environmental performance, it is implementing a Mill Development Plan at an
estimated cost of Rs.350 cr., which will make the company self-sufficient in wood pulp requirements. Under this plan, the
company is replacing its 30-year old wood pulp mill of 230 TPD capacity with a comparatively newer but second hand
pulp mill from USA with advanced technological features like RDH Pulping, Oxygen De-lignification, ECF Bleaching etc.
apart from its higher capacity of 350 TPD. However, due to delay in supply of some key equipments, the project is
expected to completed by March 2008. Meanwhile to de-risk its dependence on government and other agencies, the
company has entered into agreements with farmers holding over 3000 acres of land and planted Eucalyptus
Hybrid/Casuarina varieties to develop its own source of plantations. For FY08, it is expected to clock a turnover of Rs.500
cr. with net profit of Rs.45 cr., which works out to an EPS of Rs.40 on its equity of Rs.11.25 cr. Despite the company having
high debt:equity ratio, the scrip can be bought at declines.
****
Eastern Silk Industries Ltd. (Code: 590022) (Rs.231.25) is among the few companies to be fully integrated from spinning,
yarn dyeing, weaving, printing, embroidery, fabric dyeing, finishing to making made-ups. It has gradually moved up the
value chain by putting special thrust on production of machine made high fashion fabrics and home furnishing. It has
recently completed the expansion at its Anekal's Unit 2 facility thereby taking its total fabric manufacturing capacity to
18.5 lakh metres from 14 lakh metres per annum. It is also setting up a made-up plant at Bommasandra near Bangalore
having an installed capacity of 1500 sets per day at an investment of Rs.18 cr., which is expected to commence operation
in this fiscal itself. Incidentally, the company not only derives 80% of its total revenue from exports but also imports 70%
of its raw material. Secondly, the company also undertakes hedging activities and is protected from the rupee
appreciation to some extent. It reported encouraging numbers for the first two quarters and is estimated to clock a
turnover of Rs.550 cr. and PAT of Rs.68 cr. for FY08. This translates into an EPS of Rs.43 on its equity of Rs.15.80 cr. For
future growth, the company is looking to make some foreign acquisition for which it may raise Rs.240 cr. through
FCCB/GDR route. It is also contemplating to split the face value of its share to Rs.2 from Rs.10, which will improve its
liquidity going forward.
****
Murudeshwar Ceramics Ltd. (Code: 515037) (Rs.114.85) is one of the leading manufacturers of vitrified tiles, ceramic tiles
and granites in India with its popular brand 'Naveen'. Importantly, the company derives nearly 80% of its revenue from
sales of vitrified tiles, which enjoy higher margin than the other two. On the back of constant expansion, its present
capacity stands at 6.3 million sq. mt. of vitrified tiles, 2.7 million sq. mt. of ceramic tiles and only 72,000 sq. mt. of its
granites. Notably, institutional clients constitute 60% of its total sales and retail clients constitute the balance 40%. This is
backed by a strong marketing network with 6 distributors, 74 show rooms, 45 depots and about 400 dealers spread across
India. Given the ongoing boom in the construction sector, increasing mall culture and the strong demand for hi-tech
commercial complexes, the future prospect of the company is quite promising. For FY08, it is expected to report a topline
of Rs.275 cr. and bottomline of Rs.30 cr. on a conservative basis, which works out to an EPS of Rs.17 on its equity of
Rs.17.50 cr. Notably, its cash EPS stands at whopping Rs.32. As the current year being the silver jubilee year, it may
declare a liberal bonus for its shareholders. At the current market price, the scrip is trading at a P/E multiple of merely 6.5
times and is available at an EV of Rs.400 cr., which is below its gross block value of Rs.470 cr. However, the icing on the
cake is the 20 acres surplus land owned by the company near the electronic city where it intends to develop an IT park. Its
share price can shoot up to Rs.175 in the medium-term.
FIFTY FIFTY
11
By Kukku
Investment Calls
* Incorporated as a private limited company, Sterling Tools (Rs.89.90) became a public limited company in October 1994
and is engaged in manufacturing high-tensile (HT) fasteners mainly for automobiles at its plant at Faridabad near New
Delhi.
The company has been performing consistently well over the last many years having given 1:1 bonus shares about two
years back and maintaining a dividend of 30% on its enlarged capital with a strong book value of Rs.67 for Rs.10 paid-up
share.
In Q1, margins were affected due to rise in input costs like steel but the management has decided to relook at the
sourcing policy wherein emphasis will be more on procuring raw material from overseas keeping in mind the strong
Rupee against the US Dollar. As a result, 2nd quarter was better and for H1FY08 operating margins improved from
13.04% to 14%.
The opportunities for growth in demand for high tensile fasteners are a plenty with the growth of the Automobile Sector
in India. Further, exports from India have good prospects.
It can, therefore, further improve margins H2FY08 onwards. For the full year, the company expects to achieve sales of
Rs.168 to Rs.175 cr. and post an EPS of around Rs.11/12 levels. Investors can accumulate this stock safely on dips around
Rs.77/80 levels for good long-
term growth.
12
There is good consolidation in
the stock. If it sustains closing
above Rs.90 level, it may see a
target of Rs.120.
* DIC India (Rs.229.45),
formerly known as Coates of
India, is a 65.8% subsidiary of
DIC Asia Pacific Pte. Ltd.,
Singapore, which in turn is a
wholly-owned subsidiary of
DIC Inc., Japan, the flagship
company of the DIC group.
The DIC group, with its
subsidiary Sun Chemicals, is
the largest ink company in
the world. Around US $5
billion (Rs.22,000 cr.) of the
group's revenue of more than
US $9 billion comes from ink-
related businesses. DIC is the
world's largest supplier of
inks,
organic
pigments,
varnishes, coatings, resins,
and toners and ink jet inks.
The company posted an
increase of 19% in its net sales
to Rs.292.15 cr. for the nine
months ended 30
th
September
2007. As
a result, the
operating profit of
the
company increased by 30% to
Rs.19.12 cr.
Other income increased by
32% to Rs.3.92 cr. resulting in
a jump in PBIDT by 30% to
Rs.23.05 cr. Other income
includes foreign exchange
gain amounting to Rs.1.25 cr.
Winners of 2007 Performance Review
All the 'Winners of 2007' released on 2nd January 2007 have gained from their recommended
levels to their respective highs.
Their performance till 7th December 2007 is also given.
The 3rd edition of 'Winners of 2008' will be released on 1st January 2008. Prospective
subscribers may please book in advance.
Scrip
Close
29/12/06
High After
Recco
% Gain
to High
Close
07/12/07
% Gain/Loss
on closing
Reliance Capital
606.40
2525.00
316.39
2399.00
295.61
Bhushan Steel
374.25
1625.00
334.20
1365.00
264.73
SAIL
89.20
292.40
227.80
274.20
207.40
Sesa Goa
1411.00
3941.00
179.31
3549.00
151.52
Jain Irrigation Syst
382.80
766.00
100.10
693.00
81.03
Champagne Indage
551.10
981.00
78.01
866.00
57.14
J.B.F.Industries
122.75
207.80
69.29
190.25
54.99
Subash Projects & Ma
251.85
421.00
67.16
388.25
54.16
Century Text.& Ind.
740.00
1174.00
58.65
1106.00
49.46
India Cements
235.10
322.80
37.30
300.40
27.78
Suashish Diamonds
209.35
269.00
28.49
260.40
24.38
N.C.L.Industries
59.95
82.90
38.28
72.50
20.93
Ashok Leyland
45.45
53.75
18.26
50.15
10.34
Elder Pharmaceutical
366.50
470.00
28.24
400.70
9.33
Kesoram Industries
546.95
634.85
16.07
582.65
6.53
Ipca Laboratories
593.75
794.00
33.73
618.85
4.23
Finolex Cables
100.42
109.98
9.52
100.05
-0.37
Mphasis
303.45
339.80
11.98
295.20
-2.72
Bombay Dyeing & Mfg.
766.00
803.00
4.83
725.00
-5.35
Lupin
612.05
755.00
23.36
567.95
-7.21
Classic Diamonds (I)
538.00
559.90
4.07
483.95
-10.05
Mahindra & Mahindra
906.00
1002.00
10.60
780.00
-13.91
Hinduja TMT
737.00
782.00
6.11
621.00
-15.74
Infosys Technologies
2241.00
2439.00
8.84
1718.00
-23.34
K.S.B. Pumps
676.00
679.00
0.44
472.15
-30.16
Sundaram Clayton
1394.00
1400.00
0.43
778.00
-44.19
Hexaware
Technologies
199.65
204.00
2.18
82.80
-58.53
13
for the nine months ended 30
th
September 2007. The interest paid by the company for nine months period increased by
71% to Rs.6.51 cr. PBDT of the company increased by 19% to Rs.16.54 cr. With the recent issue of right shares at Rs.225 per
share, its interest liability will reduce in future.
Depreciation increased by 14% to Rs.4.96 cr. Total tax outgo increased by 32% to Rs.4.14 cr. Despite it, the company's net
profit for the nine months ended 30
th
September 2007 increased by 16% to Rs.7.44 cr. compared to the corresponding
period of the previous year.
Economic growth, favourable demographic profile, a lower per capita consumption of inks and a radical change in the
buying attitude towards print quality are the key demand drivers for maintaining its momentum of growth.
The company is focusing on improving its operating margins through better productivity and greater focus on
logistics, developing competence against international players on the strength of the technology provided by the parent
company and effective working capital management. Increase in crude oil price is a risk factor for the company.
With a significantly improved customer base, experience in varied markets, continuous technical assistance from DIC,
Japan – the world's largest ink manufacturing company and strong management team, the company feels confident of
accelerated growth in all market segments in coming years.
Last year, consolidated sales were Rs.429 cr. and EPS was Rs.21. In the current year, consolidated sales are likely to be
above Rs.500 cr. and EPS likely to be in the region of Rs.24 - 26.
Most shareholders may not have subscribed to the right issue as its stock price was well below Rs.225, which was the
issue price. Hence, the promoter holding of 65.8% may increase sharply.
The company has around 8 manufacturing units and other real estates at various locations. With consolidated sales of
above Rs.500 cr. and EPS of Rs.25 (Rs.20 on increased capital) and a market cap of Rs.205 cr., the stock looks very
attractive at Rs.220 level in this heated up market. Moreover, Micro Inks is trading at a P/E multiple ratio of 22 while DIC
is discounted by just 10 times. Thus there is good scope for the upside. Accumulate on reactions.
Prime movements and volumes indicate that there is to be good accumulation in the last few weeks on better volumes. If
it sustains closing above Rs.230 level for the next few days, it may head to Rs.300.
* The business environment for both the Clay and Starch businesses where English Indian Clays (Rs.1697.35) operates
are good and the Company continues to improve its performance on almost every parameter like productivity, product
mix, quality, exports etc.
The company registered a growth of 22% in turnover and 26% in EBIDTA from operating businesses. The turnover for
FY07 was Rs.253 cr. and EBIDTA from operations was Rs.42 cr.
Overall, the company should continue on its growth path in both its businesses and the outlook for FY08 looks positive
and optimistic.
For H1FY08, sales were up by 13% at Rs.134.61 cr. while net profit flared up by 40% to Rs.0.46 cr. after providing Rs.4.34
cr. for depreciation. Its equity capital is just Rs.4.47 cr. and H1FY08 EPS is Rs.21 against Rs.15 in H1FY07.
The company has strong book value of around Rs.218 and has maintained the return on net worth of above 17% over the
last few years. The company also holds 29,55,173 shares at cost price of Rs.45 cr. whose market value today is Rs.114 cr.
The company has an investment division, which is being demerged and has huge real estate worth too.
The stock has flared up in the last few weeks. Investors can keep a watch to accumulate this stock on reactions around
Rs.1600 level for good long-term growth. If it closes above Rs.1840, it shall give good breakout for a good upmove over
the long run.
Market Guidance
* Insecticides India (Rs.83) came out with an IPO at Rs.105. For H1FY08, the company earned net profit of Rs.9.72 cr. on
an equity of Rs.12.68 cr. against Rs.8.57 cr. for the whole of FY07. The company has started production at its Samba plant
and Chopanki plant on 24
th
September 2007, the benefit of which will reflect in the future. Investors can take a small
exposure in this stock on dips.
* Arrow Webtex (Rs.90) has a manufacturing facility at Nasik and completed its expansion project in November 2006,
which has doubled its manufacturing capacity.
The company also renders consultancy services for development of properties in and around Mumbai and also leases
commercial office space to attract corporate tenants. It directly owns about 1,33,000 sq. ft. of property in Mumbai, which
has been given on leave and license basis to corporate tenants.
Fasttrack Impex Private Ltd. (FIPL) is its 74% subsidiary. Sailent Real Estate Developers (I) Pvt. Ltd. (SREDPL), a
subsidiary of FIPL is also a subsidiary of the company. Further, Aryanish Finance & Investment Pvt. Ltd., (AFIPL) and
Highstreet Cruise and Entertainment Pvt. Ltd. (HCEPL) are its 100% subsidiaries.
It earned a consolidated EPS of around Rs.14.37 for H1FY08 and is expected to do very well in the coming years with new
developments.
Investors can keep watch to add this stock on reactions around Rs.575 for good long-term investment.
* Strong reports are pouring in from knowledgeable sources on Balmer Lawarie (Rs.605.75), Hind Oil Explorations
(Rs.162.20), EIH (Rs.164) and Indiabulls Finance (Rs.854.70).
* There are indications that Kirloskar Pneumatics (Rs.670) is likely to get good orders in the near future. Stay invested.
Stock has closed at a new high this week.
* Jenson & Nicholson (Rs.16.82) was advised few weeks around Rs.7. It is now trading above Rs.16, book profits and lock
it with a good stock like DIC India for safe and steady growth.
* J P Associates (Rs.400.50) was recommended in this column from Rs.380 onwards for Rs.10 paid-up. It is now above
Rs.400 for Rs.2 paid-up in just 18 months since recommendation in this column. Hold on for a target price of Rs.500 over
next the 6 months.
* After a long wait, WPIL (Rs.85) has given good returns to investors. Book partial profits above Rs.100 level and switch
to Sharyans Resources at Rs.400 for good long-term growth.
* Supreme Industries (Rs.382.45) is expected to report better results for this quarter. The stock closed at all an time high
of Rs.382. Stay invested.
* Grauer & Weil (Rs.162.10), Ashapura Mining (Rs.362.90) and Bombay Dyeing (Rs.683.95) may see higher levels over
the next few months as per market report. Stay invested.
* Informed investors are bullish on Alfa Transformer (Rs.121.25), Khoday (Rs.290.15), Webel SL Energy (Rs.490.05).
* SSI Ltd. (Rs.179) was recommended earlier in this column. There are indications of favourable developments and the
stock may be heading for a new high on real estate developments. Stay invested.
14
By V.H. Dave
EXPERT EYE
This scrip was earlier recommended in Early Bird Gains, our investment newsletter specializing in multi-baggers, at
Rs.96 (cum 3:5 rights) on 24
th
December 2003. Since then, it touched a high of Rs.251 and is now being recommended once
again based on its current outlook.
Gujarat Alkalies & Chemicals Ltd. (GACL) (Code: 530001) (Rs.246.85), promoted by the Gujarat Industrial Investment
Corporation (GIIC), a Gujarat State PSU, in 1973 is the largest manufacturer of caustic soda and chlorine in the country.
GACL, incorporated in May 1973, manufacture other basic chemicals like sodium cyanide, chloromethane, hydrochloric
acid, hydrogen gas, caustic potash and
potassium carbonate. The company
installed a captive power plant of 90 MW at
Dahej. From an initial capacity of 37,425
TPA of caustic soda, it has grown to be the
largest producer in India with a capacity of
3,58,760 TPA. Its plants are located at
Vadodara and Dahej.
GACL has been a pioneer in adopting
environment friendly and energy efficient
technologies. It converted to Membrane
Cell Technology from Mercury Cell
Technology way back in 1989 and since
1994 all its plants are running on Mercury
Free Membrane Cell Technology. Dow
Europe GmbH, has signed an MoU for
exploring a long-term and strategic
business relationship in the area of
chlorinated organics based on their mutual
inherent strengths.
It has successfully commissioned its
international standard hydrogen peroxide
plant in Dahej at an investment of Rs.112 cr.
with state-of-the-art technology supplied by
world renowned Chemature Engineering
AB, Sweden.
During FY07, GACL posted 14% higher
sales of Rs.1330 cr. and earned
marginally lower net profit of Rs.187 cr.
giving an EPS of Rs.25. During Q2FY08, it
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achieved 58% higher net profit of Rs.83 cr. on 9% increased sales of Rs.295 cr. During H1FY08, sales advanced by 6% to
Rs.534 cr. and net profit by 40% to Rs.134 cr.
Its equity capital is Rs.73.4 cr. and with reserves of Rs.815 cr., the book value of its share works out to Rs.121. The
promoters hold 36.7% in the equity capital, foreign holding is 6%, mutual funds/institutions hold 17.2%, PCBs hold 13.4%
leaving 26.7% with the investing public.
GACL has recently announced investments worth Rs.500-cr. in new projects and augmenting its power generation
capacity. It has decided to expand the caustic-chlorine production capacity of its facility at Dahej by 300 TPD and added
50 TPD at the Vadodara facility. The company also plans to set up a 30-35 MW power plant at Vadodara and is also
considering setting up a 50 MW gas-based power plant at its Dahej facility, for which it plans to invest around Rs.200 cr.
Additionally, the company is also investing around Rs.125 cr. for its 24-MW wind mill project at Kutch, for which it laid
the foundation stone and is expected to commission by February 2008. After the completion of all the power projects in
hand, GACL will become self-reliant in power generation.
GACL had struggled for about 5 years for its Ethylene Dichloride (EDC) project in association with RIL, has now
switched to ONGC as a potential partner. It is now planning its Rs.150 cr. EDC plant in the petrochemicals complex being
set up by ONGC at its Dahej based upcoming SEZ in South Gujarat.
The company has already signed an agreement with the $49-billion Dow Chemicals, the world's second-largest chemical
manufacturer, to set up a chlorine-based chemicals plant in the state. The JV will churn out chloromethane group
products such as methylene chloride or opt for chloro acitic acid derivatives.
At present, GACL sells 24 products, maintaining it's leadership in the caustic-chlorine industry with 16% market share
and has emerged as a major player in the segment of value added products. The company exports its products to USA,
Europe, Australia, Africa and Asian markets.
The Indian chlor-alkali industry is on a hectic growth path fuelled by growth across all major consuming segments
primarily alumina, pulp & paper, textiles, soaps & detergents, pharma etc.
The strengths of the company are its economy of scale, state-of-the-art eco-friendly technologies, economical and
uninterrupted power from GIPCL at Vadoclara and captive co-generation plant at Dahej, integrated down stream plants,
network for marketing and distribution, in-house research and development, proximity to raw material sources and
markets etc.
GACL has been able to achieve over 100% capacity utilization for the majority of its plants. The removal of quota on
textiles and capacity expansion in the paper and aluminum industry are positive factors to boost the demand for its
products in the domestic market. With improvement in industrial demand and uptrend in the commodity cycle, the
demand for the company's products will remain buoyant.
The optimizing of GACL's operations, better marketing and close monitoring and control on financial costs, increase in
plant efficiencies, timely and successful completion of expansion projects coupled with the strong demand for its products
give it strong revenue and profitability visibility in coming years.
During FY08, GACL is all set to achieve sales of Rs.1300 cr. and report a net profit of Rs.240 cr., which would give an EPS
of Rs.33. During FY09, net profit is likely to be Rs.290 cr. on advanced sales of Rs.1600 cr. This would increase its EPS to
Rs.40. At the current market price of Rs.247, it is traded at a P/E multiple of 6.4 on its FY08 estimated EPS of Rs.33 and 5.3
on FY09 EPS of Rs.40. The GACL share is recommended with a target price of Rs.260 in the next 6-9 months. The 52-week
high/low of the share has been Rs.251/107.
*****
A reputed brokerage house has come out with
a buy report on Infrastructure Development
Finance Company Ltd. (IDFC) (Code: 532659)
(Rs.210.35) with a near term target of Rs.250.
With
excellent
prospects
ahead
for
infrastructure financing, the outlook for IDFC
appears bright in the long-term.
IDFC was established in 1997 sponsored by
the Government of India (GoI), RBI and IDBI
as a private sector enterprise with the sole
objective to promote infrastructure financing.
In January 2005, RBI transferred its
shareholding in IDFC to the GoI. Post issue,
the GoI holds 20% in the company.
Positioned as a specialised intermediary in
infrastructure financing, IDFC not only
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15
16
provides project finance but also arranges and facilitates the flow of private capital to infrastructure development by
creating appropriate structures and financing vehicles for a wide range of market participants. It also offers non-fund-
based products such as guarantees, debt syndication and advisory services on project and financial structuring. The
company's main focus is on financing energy (power generation and distribution), telecommunication and transportation
projects (roads, ports and airports).
IDFC is using its extensive domain knowledge to become a 'one-stop-shop' for infrastructure financing. In the process,
IDFC has built strong relationships with the sponsors of infrastructure projects by working closely with clients, right from
the pre-bidding stage to project commissioning. Its expertise and innovative ability enables it to expand its range of
products and participate in the more profitable parts of the capital structure of any infrastructure project like debt
syndication, structured financing and equity participation.
The company's established relationship with the Central Government gives it access to decision makers, which will allow
it to play a significant role in the direction of infrastructure policy in the country and keep it a few steps ahead of
competition (mainly from banks). In fact, banks are tying up with IDFC to identify, assess and finance infrastructure
projects.
During FY07, IDFC reported a net profit of Rs.463 cr. on an income of Rs.1540 cr. As on 30
th
September 2007, its
consolidated balance sheet increased by 50% from Rs.14,900 cr. to Rs.22,442 cr.; loans increased by 36% from Rs.12,400 cr.
to Rs.16,818 cr. aided by good sanctions and approvals; and outstanding borrowings increased by 42% from Rs.12,087 cr.
to Rs.17,130 cr. During H1FY08, net profit surged by 32% to Rs.347 cr. on 63% higher income of Rs.1161 cr.
Its equity capital is Rs.1294 cr. and with reserves of Rs.3690 cr., the book value of its share works out to Rs.38.5. The
promoter holding is 20%, foreign holding is 54%, institutions & mutual funds hold 16%, PCBs hold 2% leaving 8% with
the investing public.
IDFC is actively engaged in mobilising and managing third party funds for long-term equity investments in
infrastructure. IDFC Private Equity Company is the investment manager of two funds: the India Development Fund (IDF-
I) and the India Development Fund- II (IDF-II), with a combined asset under management (AUM) of US $650 million.
Between the two, they form the largest corpus among the dedicated private equity funds focused on Indian
infrastructure. IDFC Private Equity Company will be raising a third fund in FY08.
In addition, IDFC Project Equity Company was set up in FY07 to manage the proposed US $2-billion third-party equity
component of the India Infrastructure Initiative. Feedback First Urban Infrastructure, IDFC Asset Management Co, IDFC
Investment Advisors and IDFC Trustee Co. are the other subsidiaries of the company.
Going forward, the company is keen to leverage its extensive knowledge base to advise offshore and domestic funds on
investments in public limited companies in the Indian infrastructure space. It is exploring opportunities made available in
the Union Budget 2007-08, which permits mutual funds to launch and operate dedicated infrastructure funds. IDFC
Project Equity has tied up with Citigroup, Blackstone and India Infrastructure Finance Company (IIFCL) for deploying
US $5 billion in infrastructure projects in India.
IDFC has a very clean asset book. Non-performing assets (NPAs) as a percentage of net advances were 0% at end
September 2007. It now controls 67% in SSKI, a privately held domestic corporate finance and institutional securities
company based in Mumbai. Through this investment, IDFC and SSKI propose to work together by pooling their
relationships and expertise to provide investment banking and capital markets solutions especially to infrastructure
clients.
IDFC currently manages about US $650 million of equity assets. This number is expected to rise to about US $3 billion in
the next two years – implying significant revenue streams from this business. IDFC has around 8% stake in NSE, whose
turnover has gone up significantly and is currently running at an average daily volume of US $20 billion. Given the recent
rally in exchange stocks in Asia, it is expected that the NSE stake is worth a significant amount to IDFC.
IDFC's lending business is a very early-cycle play on infrastructure financing. On a macro level, infrastructure spending
in India will continue to grow at a rapid pace from 3.6% of GDP in FY06 to about 5% of GDP by FY09. This should give
rise to significant financing opportunities and IDFC, given its strong positioning, stands to gain.
Splurge in infrastructure investments (US $475 billion to be invested in the next five years) in India will throw up a
number of fund-based and greater non-fund-based opportunities. The company is well placed to capitalise on this. IDFC
is expected to earn a net profit of Rs.820 cr. on income of Rs.2500 cr. and the EPS for FY08 would work out to Rs.6.4. Net
profit is expected to advance to Rs.1100 cr. in FY09 on total income of Rs.3600 cr. and the EPS would increase to Rs.8.5.
IDFC's high leverage to growth in infrastructure spending, diversifying business model, the growth in AUM, lower
operating and regulatory costs, comfortable capital position, its ability to borrow at cheap rates in global markets etc. give
strong visibility to its revenue & earnings in coming years.
The shares of IDFC, currently available at Rs.210 at a P/E of 33 on FY08E and 25 on FY09, are recommended for decent
appreciation in the long-term. Investment in this share is likely to yield a return of about 33% in 6 months. The 52-week
high/low of the share has been Rs.231/70.
17
By Nayan Patel
TECHNO FUNDA
Alembic Ltd.
BSE Code: 506235. Also on NSE
Last Close: Rs.96.70
This 50%
dividend paying company posted highly
encouraging results in the September'07 quarter. Net profit
shot up by 180% to Rs.45.59 cr. in the September'07 quarter. Its
equity is Rs.27.7 cr. while reserves are Rs.357.3 cr., Promoter
holding is 61%, foreign holding including FIIs is 8%
and institutions hold 10% leaving only 21% with retail
investors. Alembic is an ISO-9002 & ISO-14001 certified
company. The real trigger for it will come from the sale of its
land, for which it has signed a MOU with Inorbit malls, a K. Raheja group company. Income from this will be recorded in
coming years. Buy Alembic with a stop loss of Rs.88. It can go up to Rs.160 within a year.
Indsil Electromelt
BSE Code: 522165
Last Close: Rs.90.55
This 15% dividend paying company has two division viz. Manganese Alloys and Power plant. Its equity is only Rs.9.45 cr.
For September'07 quarter, net profit shot up by 702% to Rs.4.09 cr. Indsil Electrosmelt is highly undervalued at current
rate. Keep a stop loss of Rs.85 and buy this stock. On close above Rs.95, it can go up to Rs.106 very fast. Long-term target
is Rs.124 to 142.
Royal Orchid Hotels Ltd. (ROHL)
BSE Code: 532699
NSE Symbol: ROHL
Last Close: Rs.147.35
ROHL is an attractive dividend paying company. For 31/03/07, it paid a very attractive dividend of 60%. Recently,
ROHL has acquired Tanzania-based Multi Hotels, which owns 30 acres of prime beach front property in Dar-e-Salam for
$2 million and will spend $24 million to build a resort in this property. The proposed resort will be branded as Royal
Orchid Resort. Funding is through a mix of debt and equity in 1:1.15 ratio.
It recently entered the Pune market with a management contract for its first stand-alone service apartment property called
Royal Orchid Golden Suites at Kalyaninagar in Pune.
A second hotel in Pune called Royal Orchid Central is being planned in the business category and will be launched by
December end at Kalyaninagar, Pune.
Thus by the end of FY08, ROHL will have 10 (Ten) operational hotels - Bangalore (four), Mysore (two), Hyderabad (one),
Jaipur (one) & in Pune two.
Among the upcoming hotels, it has identified the location for its their entry in the Powal suburb of Mumbai.
Invest heavily in this 60% dividend paying Rs.10 paid-up share of Royal Orchid Hotel. Short to medium term target is
Rs.160 to 190. Long-term target is Rs.225 to 275. Keep a stop loss of Rs.133.
Lokesh Machines Ltd.
BSE Code: 532740 & NSE
Last Close: Rs.115
This company has two divisions viz. General Purpose CNC Machines and Auto Components. Its main clients are Tata
Motors, Bajaj Auto, Force Motor, Kirloskar Oil Engines, Bharat Forge, Everest Kanto (EKC), M&M, Ashok Leyland and
many more. In the overseas market, it supplies parts to M/s. FPT Ind. Spa-Italy, Honda Motorcycles, Japan and Howel,
Japan. Its technical partner Wenig Wemas, Germany, has also placed an initial order of 100 machines worth Rs.20 cr. For
September'07 quarter, its net profit increased by 50% to Rs.3.40 cr. Its all time high is Rs.300 while currently the share is
available at Rs.115 and thus seems highly undervalued. Its equity is Rs.11.80 cr. and it has huge reserves of Rs.67 cr. For
FY08, the expected profit is Rs.14-16 cr., which leads to an EPS of Rs.12-13. Buy with a stop loss of Rs.106. Short-term
target is Rs.133. Medium-to-long-term target is Rs.200-250.
BDH Industries (524828), KEW Industries (532758), Kirloskar Ferrous (500245) and Sathavahana Ispat traded at NSE also
look hot for the short terms.
I wish a Merry Christmas to all my readers.
MONEY FOLIO
Review
- I.G. Petrochemicals recommended in the last issue at
Rs.89 touched a high of Rs.107.
- KEW Industries recommended at Rs.38 touched a
high of Rs.43.
- LCC Info. recommended at Rs.1.80 touched Rs.2.25.
- BDH Industries recommended at Rs.44.90 touched
Rs.47.10 in spite of the highly bearish sentiment on
Monday 17/12/07, leading to a fall of 271 points on the
Nifty and fall of 769 points on the Sensex.
V-Guard plans IPO
V-Guard Industries Ltd., a Kerala based manufacturer and marketer of electrical, electrothermal and electronic products,
proposes to set up cable manufacturing facilities in Coimbatore and Uttarakhand, Enamelling plant at Coimabtore,
Development and Pilot Productions Plants for Water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore,
Service and Distribution Centres at Bangalore, Hubli and Vijaywada. The investment outlay for this expansion is
estimated at Rs.70 cr.
V-Guard also proposes to setup Building cable manufacturing facility at Kashipur, Uttarakhand, with an installed
capacity to produce 2,00,000 coils per month of standard length of 90 metres and intends to set up a manufacturing unit
for LT Power cables with an installed capacity to process 3000 metric tonnes of Aluminium and 300 metric tonnes of
Copper per annum in Coimbatore.
To finance this expansion, the company proposes to make an IPO around mid-January 2008.
Marg Constructions plans two SEZs and a port
Marg Constructions Ltd., a leading infrastructure & real estate development company presented its corporate plans to
build 'Inclusive infrastructure'. Marg's corporate roadmap, therefore, encompasses development of seaports and allied
logistics businesses, industrial clusters with SEZs, commercial real estate including technology hubs, destination malls
and serviced apartments with an aggressive foray into affordable housing across South India. It has identified select semi-
rural geographies in South India that will soon emerge as the new micro cities of India.
Its Karaikal Port project, a state-of-the-art weather port is emerging as a successful example in Greenfield port
development that will unleash the economic potential of central Tamil Nadu and Puducherry. It has forged an alliance
with Pembinaan Redzai Sdn Bhd, a leading Malaysian entity, to explore potential co-operation on a variety of areas for
the Karaikal Port project and its entry into the promising dredging industry is expected to rapidly grow with the
expansion plans of existing ports and development of new ports in the country.
The company has approvals for two SEZs spread over 612 acres near Chennai, one for the Multi-Services Sector and
another for Light Engineering including Auto Ancillary.
The company also plans development of Malls, Serviced Apartments and IT Parks in the commercial real estate space and
is exploring projects to develop industrial clusters and corridors in South India. It also announced its first venture into the
real estate luxury market with the launch of 'Tapovan' positioned as the Silent Garden and designed to be a weekend
home.
Royal Orchid Hotels announces its international foray
Royal Orchid Hotels Ltd., a fast growing hotel chain, has announced the acquisition of a 30-acre property in the Dar-Es-
Salaam, the capital city and economic centre of Tanzania, through its buy out of 'Multi Hotel', which previously owned
the property. Royal Orchid Hotels plans an investment of $25 million in the establishment, which is expected to start
operations in 2010.
The property is strategically located in the city, which is regarded as the gateway to East Africa, both in terms of
commerce and tourism. The proposed beach resort will have a contemporary African theme, featuring 150 rooms and
cottages, with facilities for a full-fledged spa, swimming pool, lagoon and water sports.
Kaashyap Tech to acquire US based SAP firm
Kaashyap Tech Ltd. proposes to acquire a
US based SAP centric / focus company
which has a turnover over $25 million.
The company is currently focused on SAP
and had recently set up a hi-end SAP
competency centre at Chennai.
This centre of excellence focuses on SAP
related resource creation i.e. consultants,
implementation tools, SAP remote hosting
solutions and SAP based projects
implementation & products. Within a
year's time, the company aims to have a
team of 300+ SAP professionals to cater to
its global requirements.
EBG's special offer worth Rs.5000!
'Early Bird Gains' (EBG), our investment newsletter specialising in
multibaggers, has now entered its 5
th
year.
Since its launch on 1
st
October 2003, EBG has identified 238 scrips for medium
to long-term investment and almost all of them have resulted in gains with
several meeting the target prices earlier.
To share the joy of its success, we have decided to offer a free one year
subscription worth Rs.5000 to any EBG subscriber who motivates four new
subscribers based on his/her profitable experience.
This scheme is valid till 31
st
December 2007 and interested participants must
register with us for monitoring the scheme.
For further details contact moneytimes@vsnl.com or call us on 022-
22616970
18
Jayant Agro Organics enter JV with Mitsui & Co.
Jayant Agro Organics Ltd. has informed that Mitsui & Co. Ltd., Japan, and Mitsui & Co. (Asia Pacific) Pte. Ltd., have
together entered into a JV agreement to invest 24% in the equity shares of Ihsedu Specialty Chemicals Pvt. Ltd. a
subsidiary of the Company. Ihsedu Speciality Chemicals Pvt. Ltd. is setting up chemicals manufacturing unit for
manufacturing specialty chemicals based on Castor Oil. The estimated cost of the Project is Rs.60 cr. The project is to be
setup at Baroda, Gujarat near the existing plant of Jayant Agro Organics.
Another 100% subsidiary Jayant Agro Organics Ltd - Ihsedu Agro Chem Privet ltd has already completed capacity
expansion of 100% from 300 MT seed crushing per day to 600 MT seed crushing per day in the financial year ended
March 2007 and now the company has undertaken another expansion plan of expanding its capacity to 900 MT seed
crushing per day which is expected to be completed by March 2008.
Maars Software in infrastructure JV
Maars Software International Ltd. plans to set up a joint venture in infrastructure developments and foray into media,
entertainment and film distribution business. The company has also decided to allot 77,20,000, 8% cumulative convertible
preference shares of Rs.10 each convertible as a equity shares on/after 13 months from the date of allotment to Bank of
India and to apply for in-principle approval with applicable stock exchanges for issue of GDR to an extent of approx $18
million.
Disclaimer: Investment recommendations made in Money Times are for information purposes only and derived from sources
that are deemed to be reliable but their accuracy and completeness are not guaranteed. Money Times or the analyst/writer does
not accept any liability for the use of this column for the buying or selling of securities. Readers of this column who buy or sell
securities based on the information in this column are solely responsible for their actions. The author, his company or his
acquaintances may/may not have positions in the above mentioned scrip.
19
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Early Bird Gains (EBG)
Nifty Futures (NF)
Live Market Calls (LMC)
Delivery
based calls (DBC)
Winners and
a) Enclose demand draft/ pay order payable at par in Mumbai (No cheques please) favouring 'Time
Communications (India) Ltd.' for _____ months _____ years as per the subscription rates given below.
DD No. ________ dated ________ on _________________ Branch __________ Rs._____
b) Have transferred the amount electronically to 'Time Communications (India) Ltd.' C/A No.
10043795661 at State Bank of India, Fort Market Branch, Fort, Mumbai – 400001 or deposit cash only in the
nearest ICICI Bank favouring 'Time Communications (India) Ltd.', C/A No.: 623505381145 at ICICI Bank,
Fort Branch, Mumbai – 400001 and have advised you by email about the same.
c) I/We are aware that investment in equities is risky and stock performance is unpredictable and can
result in losses in spite of all analysis and projections.
Subscription Rates:
MT:- 1 year: Rs.500, 2 years: Rs.950, 3 years: Rs.1350, 4 years: Rs.1700, 5 years: Rs.2000.
By email
By post
Courier (Add Rs.25 per issue as courier charges)
PD & PF&O:- Rs.2500 p.m., Rs.7000 quarterly, Rs.13000 half-yearly, Rs.20000 annually. (By email only)
20
PW:- Rs.1500 p.m., Rs.12,000 annually.
By email
By post
Courier (Add Rs.25 per issue as
courier charges)
PF:- Rs.8000 p.a.
By email
By post
Courier (Add Rs.25 per issue as courier charges)
LMC:- Rs.3000 p.m. (By SMS on mobile/internet)
NF:- Rs.1000 p.m., Rs.8000 p.a. (By SMS only)
PSG:- Rs.8000 p.a.. (By email only)
PP:- Rs.2500 p.m, Rs.6000 quarterly, Rs.12000 half yearly, Rs.20000 annually (By email only)
RS Weekly:- Rs.1500 p.m., Rs.12000 p.a.
By email
Courier (Add Rs.25 per issue as courier charge)
DFB:- Rs.2000 p.m. (By email only)
ISM:- Rs.8000 p.a.
By email
Courier (Add Rs.25 per issue if required by courier)
TT:- Rs.1000 p.m., Rs.10, 000 p.a.
By email
By post
Courier (Add Rs.25 per issue as courier
charges)
DBC:- Rs.2000 p.m., Rs.18000 annually (By SMS only)
ET:- Rs.2000 p.m. (By email only)
EBG:- 1 year: Rs.5000, 2 years: Rs.8500, 3 years: 11,000.
By email
By post
Courier (Add Rs.25
per issue as courier charges)
Winners:- Rs.2000 yearly.
By email
By post
Courier (Add Rs.25 per issue as courier charges)
Name (in capital):______________________________________________________________
Address: ______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Tel. No.: (O) ___________________ (R) ___________________ (M)___________________
Email ID: ______________________________________________________________________
Are you an Investor
Trader
Broker/Sub Broker
Investment Adviser
Banker
Date & Place _____________
Signature ________________