Stock research

[tazzking]

BASF India Ltd

BASF India Ltd


Story:BASF India Ltd. (BIL) is a 71.18% subsidiary of BASF AG Germany headquartered in Mumbai, with manufacturing facilities in Thane, Mangalore and Dadra. BASF manufactures and markets expandable polystyrene, tanning agents, leather chemicals and auxiliaries including specialized metal complex dyes, leather dyes, textile chemicals, dispersions and specialty chemicals, acrylic polymers in primary forms and crop protection chemicals. BIL is also involved in the trading of chemicals including dyestuffs and related textile auxiliaries, and renders technical services to various industries. The parent BASF is the world's leading chemical company - The Chemical Company. BASF Group operates in six product segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions, and Oil & Gas. BASF India operates in five business segments, namely performance products, agricultural & nutrition, plastics, chemicals and others. BASF India's product portfolio is very diversified, innovative, safe and eco-friendly catering to a wide range of industries. Performance products along with agriculture & nutrition products continue to remain the mainstay of BASF India as they contribute close to 80% of its revenues and profits while plastics and chemicals constitute the remaining 20%. BIL's products cater largely to the following industries; Leather, Automobiles, Consumer goods, Pharma, Paper and Textiles.The performance products business of BIL includes performance chemicals and functional polymers. Performance chemicals business catering to wide spectrum of industries like textile, leather, plastics and coatings etc is set on a growth path due to good growth prospects of the user industry. The Agricultural and Nutrition division includes products like pesticides, herbicides, animal nutrition, pharmaceuticals and cosmetics. Agricultural products business includes agrochemicals like insecticides, herbicides, weedicides, fungicides and specialties. Agrochem industry is witnessing good growth on back of thrust given to agriculture by the government and greater emphasis on improving agricultural productivity. Nutrition business has product range that includes vitamins for human and animal nutrition, aroma chemicals and ingredients for cosmetic industry. The plastics business comprise of expandable polystyrene (Styropor) and performance polymers (engineering plastics). Styropor is primarily being used in the areas of packaging and insulation. The other chemicals business caters to the requirement of a wide range of user industries including pharmaceuticals, agro-chemicals, petrochemicals, plastics, fertilizers, organic and inorganic chemicals, coatings, leather & textile processing.In an important development, the Parent company BASF, AG Germany made an open offer to acquire 22.31% equity stake of the company at a price of Rs 300 per equity share in May 2008 to increase its stake in BASF India to 75%, which will give it more freedom to invest and expand its business in India. However it got 18.49% more stake, thereby increasing its stake to 71.18%. BIL has come up with decent numbers for the year ended March 2009. The net sales stood at Rs.1124 cr. in FY09 depicting a growth of 23.91%. Operating profits witnessed a growth of 20.81% to stay at Rs.124.66 cr.. The bottom line of the company increased to Rs.68.6 cr. portraying a growth of 15.61%. EPS for FY09 climbed to Rs.24.35, indicating growth of 15.61%. Dividend declared is 70%. At CMP of Rs. 220, BASF has a total market capitalization of Rs. 620 cr. The current year dividend yield works out to 3.2%. The book value per share works out to Rs 137.8 (FY'09) and PBV is 1.6 times. The PE ratio is 9 times on FY09 earnings. For FY08, BIL had reported net sales of Rs. 907 cr., EBITDA of Rs. 106.6 cr and an EPS of Rs. 21 on equity of Rs. 28.19 cr. The dividend declared was Rs. 7 (70%) for FY08.Given the technological superiority and quality of BASF products, BIL has become the preferred source of raw materials for products exported from India. The outlook for the business in the coming years is favorable, given the increasing focus on Asian markets by the BASF group. The stock looks good in the medium term given the expansion undertaken by the company for which the results will show in current year. BASF India will maintain a strong performance in its major segments and will continue to derive support from its parent company. At CMP, stock is trading at 9 times FY 2009 EPS of Rs. 24.3 and 7.5 times FY 2010 expected EPS of Rs.29. Overall BASF is an interesting investment proposition with decent fundamentals. Accumulate on declines for decent gains of 50-55% in the next 6-8 months.

 

[tazzking]

Valson Industries Ltd

Valson Industries Ltd


Story:Valson Industries principal activity is to manufacture polyester dyed yarn and process cotton dyed yarn. The products include polyester texturised, twisted and dyed yarn and also dyeing of Cotton and other fancy yarns which are used for making fabrics for shirting, suiting upholstery, knitting, labels and curtains etc. The Company operates in a single segment of Dyed and texturised yarn. In a bullmarket,you will come across several inventive variants of a sob story.Something just like "One my relatives made tons of money in the stock market. He had a friend who worked for a big operator. Every time he bought a stock,it doubled within a month.I was tempted to go along, and the next time he bought a stock,I bought it too. That stock doubled. Then I sold some jewellery,took an advance against my provident fund and put it all into the next stock he recommended. This time, the stock went down.I waited for a year hoping the price would recover.Finally after I'd lost 75 per cent of my capital,I sold.Oh,and my idiot relative too lost a packet!" It's easy to lose big money in a bull market.Prices are inflated, the financials of "hot picks" are often dubious,everybody has sure firekhabar.Above all, many bull market participants tend to be inexperienced and sometimes arrogant; and they tend to get drunk on success. When prices fall, most of them lack the discipline to admit they've made mistakes and exit with dignity.Valson has neither an inspiring business model nor the business prospects looks robust.Stagnant financials,lame management,lack of commitmnet towards minority shareholders all goes against it.The tiny equity favours the operators as its easy to manipulate.Anyways hers a tip by an operator,he forsees 100rs target for Valson Industries in the next 1-2 months.The company is quoting at around 77rs now,so if he proves rite the jackpot is here for you folks.Else to be at the safer hand I have already mentioned the story above.So decide accordingly.

 

[tazzking]

Ruchi Soya Industries Ltd

Ruchi Soya Industries Ltd

Story:Ruchi Soya is one of the largest players in the domestic edible oil market. It has the largest processing capacity in India.Ruchi Soya enjoys the leadership position in the domestic edible oil market.Its processing capacity (the largest in India), experienced mgmt, increasing share of sales from branded products and consistent profit growth despite volatile commodity prices are some of the positives.Company enjoys massive distribution network, built over the years, is a major strength for it. Catering nationally through 2.25 Lac retail stores, with 38 Company depots, 36 Super Stockists and a sales staff of 201, Ruchi has attempted to penetrate depth wise, along with opening new markets. With its importance on providing value goods to consumers, Ruchis dual strategy of popular and premium range works well. The value-for-money positioning helps generate large sales volumes for the products.Company is having wide range of food products include healthy cooking oils, nutritional Soya foods, High-grade vanaspati and bakery fats. It is the market leader in the edible oils, as well as Soya foods categories. The edible oil range includes many top brands like Soyumm, Soyabean oil, Ruchi Gold Palmolien oil and Sunrich sunflower oil. Nutrela is the largest selling Soya foods brand in the country, with over 50% market share. Nutrela and Ruchi No. 1 vanaspati are regional leaders in their respective categories.Ruchi Soya Industries with their flagship brand Nutrela on Mar. 11, 2008 expanded their product portfolio by launching N-rich in the beverage segment. N-rich is a tasty protein drink available in 3 distinct flavours, rich in vitamins, minerals and antioxidants, which makes it a healthy beverage. The flavours are a rich combination of exotic fruits like, Apple Kiwi, Apple Peach and Multifruit. N-rich is a packaged, 100% preservative-free fruit Juice brand offering consumers the great taste and wholesome nutrition of fruit Juices in a hygienic and attractive pack. It is expected to benefit once oil prices start rising.Valuation wise its quoting at a low double digit valuation its 1 year forward earnings.The scrip has moved up by over 500% in the last 6 months or so.At present prices book profits to rebuy at dips

 

[tazzking]

Suave Hotels Ltd(kotawala india)

Suave Hotels Ltd(kotawala india)


Story:The Company is mainly engaged in the operation of hotels, restaurants, resorts and tourist facilities.The company already owns resorts along Calangute beach in Goa, and Mahabaleshwar hill station in Maharashtra. Suave Hotels Ltd has also entered into a joint venture with the Florence Group of Jaipur, Rajasthan, to develop, construct and operate a five-star hotel on 7.5 acres of land on the Jaipur-Delhi highway. The estimated cost of this project is Rs 150 crore.As part of its expansion, Suave Hotels, in consortium with Manbhari Biofuels Pvt. Ltd, has signed a memorandum of understanding for the acquisition of Hotel The Byke Resort in the hill station of Matheran, Maharashtra. The three-star hotel is currently owned by Hotel Relax Pvt. Ltd.Suave Hotels also plans to have a majority stake, with a Thai company, in a hotel in Pattaya, Thailand.Suave is on an expansion spree. The company has said that it will consider various proposals for the acquisition of land in around Goa for the purpose of construction of hotel.The company is also mulling over an acquisition of ready built hotel and other properties.All these should the catapult the company in the top league going forward.Once the projects materializes and numbers start to show them,suave can certainly be a multibagger.Though management concern remains but chances of a one-star-portfolio wonder is there too.A great buy.

 

[tazzking]

Sparsh BPO Services Ltd

Sparsh BPO Services Ltd

Story:The company manages processes across several verticals, including banking and financial services.Sparsh provides services in 15 languages with centres in Mumbai, Bangalore, Pune, Chennai, Mohali, Kolkata, Gurgaon, Delhi and Puducherry.The company recently launched its second delivery centre in Bangalore. The 450-seater located at Hebbal will provide multi-lingual services in English, Tamil, Kannada, Malayalam and Telugu across a range of verticals to deliver contact center management, including customer support services, collections and sales.The centre is the companys fourth centre in the south and 19th centre in India.This new facility is a welcome addition to Sparshs multilingual centres in India and will reinforce its footprint in south.Sparsh BPO Services had earlier launched a centre in Puducherry in November 2008 to provide customer support services to Aircels base of prepaid and postpaid cellular subscribers in the Tamil Nadu and Chennai circles.Sparsh currently has over 40 client relationships with leading multinational companies across telecom, banking, insurance, consumer durables, retail, media, aviation & public sectors. Sparsh BPO is owned by Blackstone-backed outsourcing firm Intelenet GlobalService.Institutional investors own nearly 15% in the company. SKR BPO is co-owned by Blackstone GVP Capital and Mauritius and Intelenet management.The word on the street is that with the US economy on a gradual recovery path, order flows are likely to pick up in the coming days.Buzz is that a group of high net worth individuals are accumulating the stock. In addition, some domestic mutual funds too have picked up small lots.The company should deliver better numbers going forward and that may propell up the stock price further.A consildation is likely thus a buy at dips.

 

[tazzking]

PVR Ltd

PVR Ltd


StoryVR Ltd established its first Multiplex cinema in Saket, Delhi in 1997. The company operates multiplex cinema under the PVR brand name. Its cinema circuit consists of 26 cinemas with a total of 108 screens and 27827 seats. PVR enjoyed 18 million patrons for the year ended March 2008. PVR Ltd has ventured into film distribution and production business through its 100% subsidiary, PVR Pictures. PVR Ltd has also entered into retail entertainment landscape through joint venture with Major Cineplex group.PVR Ltd is currently operating with 26 cinemas with 108 screens and 27827 seats.These cinemas are spread over Delhi, Faridabad, Gurgaon, Ludhiana, Ghaziabad, Mumbai, Bangalore, Hyderabad, Lucknow, Indore, Aurangabad, Baroda,
Chandigarh and Latur. PVR is planning to open 171 screens with 42750 screens bythe end of fiscal 2011.Over the past 3-4 years, the industry has witnessed tremendous changes; these changes have positively affected the players in the value chain- producers, distributors and exhibitors. Availability of organized funding, advent of multiplexesand increasing overseas collections has led to improved realizations for the industry.PVR has forayed into film production and distribution business through its subsidiary PVR Pictures. PVR Pictures is expected to deliver 4-6 movies every year either through production or co-production. PVR Pictures has recently raised fund through private equity placement of Rs. 120 crore with ICICI ventures and JP Morgan Mauritius Holdings limited for a 20% stake to each of the investors. PVR Ltd has proven its excellence in site selection for all its projects. Most of its properties are operating in prime locations, with large catchments areas. This helps company to generate consistent flow of revenue. Recent opening of Phoenix mill project in Mumbai with 7 screens will give a jump to its overall occupancy level.PVR have entered into a joint venture through 51 % holding with Major Cineplex group, a Thailand based company to ramp up its presence across the retail entertainment landscape.The joint venture will set up bowling alleys, karaokecenters, ice skating rinks and gaming zones in and around PVRs multiplexes to offera complete entertainment experience to movie goers.We believe that PVR Ltd is the strongest player among multiplex industry, led by its continuing growth momentum. At current market price of Rs. 122/-, the stock is trading at a P/E of 9.x of FY 11E earnings of Rs. 13.5.One of the best multiplex bets and great buys.

 

[fantastikanth]

tazzking, you are doing great job man, the explanation by you is really confidence giving and very reasonable which i liked a lot, i checked all the previous stocks in this thread which have showed on an average 30% increase in the last two months, thats amazing, keep it up and come with new stocks whenever possible..........the stocks which you recommended today, also sound quite interesting with every company being almost monopoly in their respective fields........my doubt is, since the markets have run a lot and everyone is expecting a correction in the near term, what do you suggest, to go for a buy of these stocks, or just wait for the correction and then enter them.........your advice would help us a lot........thank you

 

[tazzking]

Thanks for reply....I am not as good as savantji..anantji..but as I know all of those stocks have good resistance level depend on SMA 200/50 or EMA 200/50..like that...try to grab one on that level and keep stop loss 3% lower...( not for intraday) ....another thing personally I bought any counter depend on CCI buy signal...u may try this...CCI details below..

Commodity Channel Index (CCI)

Benefit: Commodity Channel Index (CCI) identifies overbought/oversold conditions as well as possible divergences that can assist in identifying entry and exit points.

Description: Developed by Donald Lambert, CCI measures the variation of a security's price from its statistical mean. High values show that prices are unusually high compared to average prices, whereas low values indicate that prices are unusually low.

Bullish Signal: When CCI goes below -100 and comes back up, it's considered bullish. When price is trending down and CCI is trending up, it's considered bullish.

Bearish Signal: When CCI goes above +100 and comes back down, it's considered bearish. When price is trending up and CCI is trending down, it's considered bearish.

Interpretation: The CCI is a timing system that is best applied to securities that have cyclical or seasonal tendencies. CCI does not determine the length of cycles -- it is designed to detect when such cycles begin and end through the use of statistical analysis which incorporates a moving average and a divisor reflecting both the possible and actual trading ranges. Like many other oscillators, there are two basic methods of interpreting the Commodity Channel Index: identifying overbought/oversold areas and price/oscillator divergent signals. The CCI typically oscillates between +100. To use the CCI as an overbought/oversold indicator, readings above +100 imply an overbought condition, while readings below -100 imply an oversold condition. A divergence occurs when the price of a security is making new highs/lows while the CCI is failing to surpass its previous highs/lows. This divergence such as this under certain market conditions may indicate a forthcoming change in trend.


Savantji..pl suggest...:thumb:

 

[tazzking]

IFGL Refractories Ltd

IFGL Refractories Ltd

Story:IFGL is a Kolkata-based company belonging to the BP Bajoria Group. This company manufactures refractors catering mainly to the steel industry. It has two subsidiariesMonocon International and Hofmann International. Through these subsidiaries, this company has to undertake manufacturing operations in seven countries including Europe and China.FY09 was a tough year for the company, primarily due to the meltdown witnessed in various commodities and metals and the operations of IFGL were greatly affected too.In spite of that, the company was able to register higher revenues of about Rs 410 crore as against Rs 393 crore for FY08 but the profits took a dive and dropped from Rs 28 crore to Rs 6 crore.The situation after that has improved significantly and the situation in the metal space has also stabilized. If the financials for the Q1 are any indication, then the worst maybe over for the company. In Q1, the company achieved profit after tax (PAT) of about Rs 7 crore which is higher than full year profit of last year. Besides that, this company also put up a bio-ceramic plant which manufacturers substitute for human limbs. This plant manufactures products like hip joint, bone substitute, orbital implants which are used for artificial eyes and also dental implants. This is typically a business with high margin but low volume. In future, the company has plans to scale up this business. The bread and butter for the company still remains the refractory business but this could be a business where as volumes grow more profits would start coming from it. So all in all, you have a company that has got reasonable market share in the refractory business and operations in seven countries with revenues more than Rs 400 crore and a market cap of Rs 100 crore. This company had been doing operating profit of about Rs 50 crore a year and in 2009 they did about Rs 30.So you have a business which is available at twothree years of operating profits. So given all these factors at the current price of Rs 2829 this stock could be a value buy for investors.

 

[tazzking]

FDC Ltd

FDC Ltd


Story: FDC makes both formulations and Active Pharmaceutical Ingredients (API) in the pharmaceutical space. Its expertise in ophthalmic and ORS dosage forms has helped it spread its reach across the market. It also has a presence in various therapeutic segments, such as anti-infectives, dermatologicals, respiratory and haematinics.With over 90 per cent of its turnover from the domestic market, FDC is pursuing contract manufacturing opportunities in the regulated and semi-regulated markets for sterile ophthalmic and oral solid dosage forms. The contract manufacturing and clinical market in India is expected to reach $900 million and $1 billion by 2010, respectively, due to the cost advantage India offers. FDC, with its strong presence and R&D expertise, is poised to take advantage of this potential. On the domestic front, the pharma market is expected to grow at a compounded annual growth rate of 16 per cent over 2007-2011.FDC has launched new products and line extensions of its existing products (introduced line extension to its flagship brand ZIFI for treating lower respiratory tract infections). It has also received an approval from the USFDA for its abbreviated new drug application (ANDA), ciprofloxacin ophthalmic solution (antibiotic used for occular surface infections) and timolol maleate ophthalmic solution (used for glaucoma). It has around five more products at an advanced stage of filing.Since January, FDCs share has been on a steady upmove and is still trading at an attractive valuation of 10 times its forward12 months earnings. This valuation is low when compared to what the larger pharma stocks like Dr Reddys Laboratories (16 times) and Sun Pharmaceutical (18 times) command.Invest for steady capital appreciation.