Stock research

[tazzking]

Indian Overseas Bank (IOB)

Indian Overseas Bank (IOB)

Story:It has about 1,900 branches spread across the four southern
states. Its key focus area is lending to small and medium enterprises
(SMEs). It has recently acquired Pune-based Shree Suvarna Sahakari Bank
Limited (deposit base of Rs700 crore, advances of Rs400 crore and three
lakh customers). With this acquisition, IOB is aiming at generating
Rs1,000 crore business from Pune. It is also planning to open branches
in Malaysia along with Andhra Bank and Bank of Baroda. There has been a
19% growth in interest earned in the March 2009 quarter over the
year-ago period. This was due to a 26% growth in income from advances
over the year-ago period.20Gross NPAs for the March quarter increased
12% from the year-ago period; but are still at reasonable levels. Its
five-quarter sales growth and operating profit growth are 28% and 24%,
respectively. Its operating profit margin is 23%. Valuation is low. Its
market-cap is just 0.41 times its income and 1.74 times operating
profit. The price to book value ratio is 0.75. The dividend yield ratio
is 5%. All these are attractive figures. Buy this stock at around Rs80.

 

[tazzking]

Canara Bank

Canara Bank

Story: It has 2,733 branches spread across India and abroad. The
performance in FY09 and the March quarter has been good. Interest
earned increased 23% in the March quarter over the year-ago period.
This is because of a huge growth of 36% in income from advances. Loans
to the infrastructure sector are high 12.5% of the net advances. The
Bank has made a conscious effort to reduce bulk deposits as they yield
low return. The proportion of low-cost deposits has fallen to 31% in
FY09. Restructured loans are 1.5% of its advances among the lowest in
the sector. The Bank has reduced its prime lending rate by two
percentage points, while cutting the deposit rate on various maturities
by three percentage points. However, the Bank is betting on higher
branch roll-out, large ATM network and core banking solutions to help
bring in more low-cost deposits. In FY10, the Bank aims to take
aggregate business to the Rs400,000 crore mark from Rs325,000 crore at
the end of March 2009. The five-quarter average sales growth and
operating profit growth are 18% and 24%, respectively. The five-quarter
average operating profit margin is 20%. The market-cap is 0.52 times
its sales and 2.53 times its operating profit. The price to b
ook value
is 1.01 and dividend yield ratio is 3%. Buy this stock at around Rs250.

 

[tazzking]

UCO Bank

UCO Bank

Story: Uco Banks total income in the March quarter grew 23% on the
back of a 22% rise in income from advances and 29% rise in other
income. The asset quality has improved in the March quarter. The net
NPAs to total advances ratio improved to 1.18% in the March quarter
from 1.98%, during the same period last year. The Bank has received
capital infusion worth Rs450 crore from the government through
perpetual non-cumulative preference shares as a part of the stimulus
package. As per the expansion programme, the Bank plans to open 120
branches in FY10. The five-quarter sales and operating profit growth is
26% and 29%, respectively. It operates on a low margin (15%).
Market-cap is 0.25 times its sales and 1.7 times its operating profit.
It declared a dividend of Re1 per equity share. This brings the
dividend yield ratio to 2%. Buy this stock at around Rs38.
Source:Moneylife

 

[sibumajumdar]

Re: UCO Bank

UCO Bank

Story: Uco Banks total income in the March quarter grew 23% on the
back of a 22% rise in income from advances and 29% rise in other
income. The asset quality has improved in the March quarter. The net
NPAs to total advances ratio improved to 1.18% in the March quarter
from 1.98%, during the same period last year. The Bank has received
capital infusion worth Rs450 crore from the government through
perpetual non-cumulative preference shares as a part of the stimulus
package. As per the expansion programme, the Bank plans to open 120
branches in FY10. The five-quarter sales and operating profit growth is
26% and 29%, respectively. It operates on a low margin (15%).
Market-cap is 0.25 times its sales and 1.7 times its operating profit.
It declared a dividend of Re1 per equity share. This brings the
dividend yield ratio to 2%. Buy this stock at around Rs38.
Source:Moneylife

Dear, Thanks. Will u plz tell us for how 2 hold the same 2 get reasonable return ? All the best & happy trading .......SM

 

[tazzking]

Those company fundamental are very strong...so we can expect 40-50% return in a year ( Maximum time horizon)..if nifty and sensex support..

 

[tazzking]

Smallcap GEMS- NILE LTD.

Nile Ltd


Story:Nile Limited manufactures glass-lined equipment, pressure vessels, lead and lead alloys. Nile serves the pharmaceuticals and chemicals industry. Leading names like Glenmark and Cipla are among its customers. Despite a declining demand for glass-lined equipment, the company has a healthy order book position; it has received substantial orders for pressure vessels which compensates for lower demand for glass-lined equipment. Market demand for lead and lead alloys, its third main line of business, looks very promising and Nile has been able to establish itself as a quality supplier and entered into long-term supply arrangements. Nile too has a smaller capital base and the promoters have been gradually hiking their stake in the company.The stock is attractively priced; its market-cap discounts its five-quarter average sales (annualised) by less than 1 time.If the numbers come good these company can run bigtime.A good buy.

 

[tazzking]

Century Plyboards India Ltd

Century Plyboards India Ltd


Story:The next company to enjoy the ripple effect of infrastructure and construction boom comes from the building materials sector, which owes much of its growth to the demand for commercial as well as residential space. Century Plyboards (India) Ltd manufactures plywood and decorative veneers under the Centuryply brand name. It is the largest seller of plywood and decorative veneers in the organised plywood market with a very high brand recall. Century has been growing at a brisk pace over the past five quarters. The company, however, operates at a low margin, which averaged 9%over the past five quarters. On the valuation front, the stock looks cheap. Is the stock worth buying? The management has lately merged group companies with the flagship and is planning a preferential allotment.A decent buy...

 

[tazzking]

MSP Steel & Power Ltd

MSP Steel & Power Ltd

Story:Kolkata-based MSP Steel and Power has a diversified portfolio ranging from sponge iron to steel and power generation to rolling mills and ferro-alloys. All these are hot sectors now. MSP has signed an MoU with the Chhattisgarh government for expansion of its plant at an investment of Rs850 crore and will get carbon credits for the next 10 years for its captive power plant based on waste-heat recovery. The stock is priced cheap; with better number expected in future the stock deserves worth a buy.These stocks will do well on their own merit. But imagine if they caught the fancy of fund managers? Flow of institutional money into these counters will create a momentum in prices and deliver good returns. Good stocks heavily owned by funds may or may not give great returns. But good stocks that are not owned by them rise fast even when a few funds merely decide to nibble

 

[tazzking]

Enkei Castalloy Ltd

Enkei Castalloy Ltd


Story:Enkei Castalloy, a collaboration with Enkei Corporation of Japan, the worlds second largest manufacturer of alloy wheels, combines high RoE and reasonable valuation. Enkei leads the Indian market in manufacturing cylinder heads and alloy wheels for two- and four-wheelers and is a single-source supplier of many critical engine parts. The company also has a good presence in the export market particularly in the US and Europe. Its recent performance has been somewhat dismal thanks to the slowdown in the sector itself. Its average operating margin was 13%. Its RoE over the past five years has averaged over 25% while its sales to market cap stood at over 2 times and the market cap to operating profit ratio was an extremely reasonable too.Enkei has already risen 500% from its march lows.At present prices apply caution and buy it at sub 35 or low 40 levels

 

[tazzking]

Penny stocks: Multibaggers (Shamken Spinners Ltd)

Just few days ago I heard,someone discuss in this forum that if u invest 40000 Rs in untech just 5 years ago you could be earn 1.1 crore in 2007..quite interesting..Here we go friends...I select those stocks which are might be multibagger like unitech, KEC international..and all...

Shamken Spinners Ltd

Story:Company has 45,000 spindles for producing cotton and synthetic yarn.Factory is located at prime land on Delhi-Agra Highway.Due to lack of funds, company, off and on has been doing job work for others.Replacement value of spinning unit of this price is more than Rs. 150 crs. Current Market cap of Shamken Spinner is Rs. 6.50 crore.Its plant is spread over huge piece of land just outside Delhi (on Delhi-Mathura Express way).