Stock research

[tazzking]

Penny stocks: Multibaggers (Shamken Spinners Ltd)

Just few days ago I heard,someone discussed in this forum that if u invest 40000 Rs in untech just 5 years ago you could 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).

 

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Shamken Cotsyn Ltd

Shamken Cotsyn Ltd

Story:Company has a most modern Processing House for knitted fabrics.Due to lack of funds, Plant is not operating. Apart from Process House, Company also has 4 acres surplus land in Noida which should be worth more than Rs. 20 crores.And, current market cap of company is less than Rs. 3.50 crores.

 

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Indian Hotels Company Ltd

Indian Hotels Company Ltd


Story:IHCLs has major expansion plans that will take its room inventory from 10,487 rooms currently to 19,354 rooms by 11.The company is almost tripling its room inventory under its budget hotels category Ginger .From the existing 1,100 rooms, it is targeting 3,500 rooms.Its also rolling out international resorts and a couple of other properties, which will ensure ample supply from the company. Room inventory, across categories,has started increasing from February 08 and will continue till September 10.The expected capital expenditure for such an expansion will be close to Rs 2,072 crore.As per Ficci-Evalueserve estimates, India needs 1.5 lakh additional rooms by 10. Against this, the total planned additions by leading chains will add to a little over 50,000 rooms, which will result in a potential shortage of nearly one lakh rooms by the end of 10.This will help to sustain higher average room rates (ARR) for the industry and help IHCL to maintain its profit margins. IHCL offers a wide range of hospitality options, ranging from luxury to budget, heritage hotels to beach resorts, service apartments to business hotels.The group comprises 71 hotels at over 40 locations across India with an additional 16 located across the world. The Taj Group has classified its hotel properties under various divisions as Luxury India, Luxury International, Business, Leisure and Ginger, which account for 26%, 25%, 22%, 17% and 10% of total rooms of the group, respectively. The company derives majority of its revenue from the Luxury India segment.At the current market price of Rs 50, the stock is trading at a P/E of 6 times FY09 estimated earnings. Assuming that revenue growth remains consistent and room inventory doubles, IHCL may show a huge jump in profit.Improved results from international subsidiaries and contribution from Ginger will prove beneficial for the company.Altogether a value buy on dips.

 

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Everest Kanto Cylinder

Everest Kanto Cylinder


Story:I retains my positive fundamental bias and `Buy rating on Everest Kanto Cylinder (EKC) for investors looking at key long-term beneficiaries of the gas theme in India. However, the company may not perform much in the short to medium term. EKC"ss Q4 PAT of Rs 27.8 crore was flat y-o-y and well below estimates. The slowdown in demand from OEMs, though cyclical in nature, has taken its toll on revenues and margins. With Q4 weakness likely to spill over into the next couple of quarters, combined with delays in the jumbo (1Q), billet (2Q), and Kandla (3Q) plants, A big brokerage house has cut its FY10-11E earning estimate by 33-35%. While these issues may constrain near-term stock performance, the cycle should correct in H2 as economic activity improves and domestic demand from gas distribution companies picks up. Q4 EBITDA margin of 21% was down from 34% in 9M due to: (i) higher proportion of industrial sales (45% in 9M versus 62% in Q4) as CNG sales to OEMs were impacted and (ii) price cuts on CNG cylinders due to rising competition despite RM (raw material) costs not declining.Buy it only for 2-3 years perespective

 

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Datamatics Global Services Ltd

Datamatics Global Services Ltd


Story:The business model of Datamatics focusses on processing transactions and content, which are purely non-voice based. This has been broadly categorised under three heads- Content management, back office processing and related software services. Under content management, Datamatics is providing services for the legal, scientific and medical community. Its prominent clients under this head are Lexis Nexis (a division of Reed Elsevier Inc.) and Cadmus Communications Inc. In back office processing, Datamatics offers services for financial and accounting, tax processing and claims processing, and HR Services. Some of its key clients are Ford Motor Company, CPA firms such as Aronson & Co, Fidelity Investments and ABN Amro .In software services, it is handling document management and data migration solutions for its clients. Some of the clients in this category are Hummingbird and Computer Sciences Corporation.The IT-enabled services industry has strong growth potential, with growth rates which will outperform its high profile sibling - software services. Datamatics, with its good client profile, is positioned to ride on the BPO wave.Now,I have been accumulating datamatics since 19-20 levels as I feel worst is over for the counter.My beleif got stronger when some HNI and research head guys corroborated me on it.In future course I expect decent numbers from the company.At 26rs downsides seems to be relatively low wheras in a stable market it posses the potential to hit 33-35rs.A good buy.

 

[harmads]

Hi tazzking

This is a very useful thread for investors and I will hope that you will keep up the good work..

I would greatly appreciate if you could give your opinion on KLG Systel. I had bought this scrip at peak level in Feb.2008 when the outlook of the company was good. Now it has come down considerably. I would appreciate your valued comments..

Thanks

 

[tazzking]

definitely....

 

[luvmalik]

Hello Tazking

I think you are doing a wonderfull job and please keep up the good work.

I need to know some information about a stock as i am planning to invest money in it, If you got time please help me.

The stock is Nagarfert.

 

[RAGHUERK]

Hello tazking,
You are doing a wonderful job for investors like us. Thanks a lot. I want to invest some money. Can you give me some information for company called Allied Digital. Thanks in advance.

Regards,
RAGHUERK

 

[tazzking]

Sanghvi Movers Ltd

Sanghvi Movers Ltd


Storyune based Sanghvi Movers Ltd. (SML) is the largest crane hiring company in India and the 12th largest in the world as per a recent ranking from Cranes International magazine. It is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure and core sectors. It has a fleet of 278 medium to large size hydraulic truck mounted telescopic and crawler cranes with lifting capacity of 20 tons to 800. While SML has a wide presence in the wind energy sector, in the next 5 years the company will focus more on renting out cranes to non-renewable power, steel, cement and refinery plants.SML's major clients include Suzlon, Lanco Infrastructure, Reliance Industries, BHEL, Tata Steel, L&T, Reliance Energy, Indian Oil, NTPC and Ultratech Cement. Unlike smaller players, SML has a pan-India presence through nearly 40 depots and owns 80 trailers to eliminate dependence on third party transport. By setting up depots, the company has saved cost and time involved in mobilisation of its cranes, thus increasing operational efficiency. This has enabled it to source 70% of Suzlon's and BHEL's crane requirement orders, enter into 5-year partnership with Enercon and have strong relationships with business houses like Reliance, Aditya Birla Group and L&T for their project requirements. This gives sufficient visibility into the company's earning capability over the next three to four years.In the past decade, thanks to a global construction and infrastructure boom and flourishing economies around the world accounting for much of the demand, the supply of high capacity and technologically superior cranes has been in acute shortage. Given this scenario, the crane rental sector is witnessing a steady growth in its revenue stream due to the latent demand for cranes as well as pricing power coupled with high utilisation rates. Particularly countries like India, where the labour is cheap, offer very profitable businesses to such players. Given that Sanghvi Movers is the largest crane rental company in the country and the 12th largest in the world, the potential for revenue growth for the company is very lucrative.India's largest crane service provider and a dominant player in the over 100 tonne segment, Sanghvi Movers, has grown at a scorching pace over last few years on the back of ongoing investments in various industries. While being the largest crane hiring company in the country and the 12th largest globally certainly adds to SML's advantage, the barriers to entry for its competitors are also high in the high-capacity crane (above 100 tonnes) segment. Its tie ups with some of the largest international crane manufacturers such as Liebherr, Kobelco and Manitowoc positions it very favourably amongst global crane rental companies. SML has 50% share of the organised market and is largely concentrated in the windmill business. The scope for growth in the non renewable power plant business and capital additions in the cement, steel and oil refinery sector offer ample scope to the company to multiply its revenue several fold in the coming years.Going forward , the company will be adding 50 more cranes in the current fiscal and would invest close to Rs 85 cr. in the expansion plan. This will bring the total number of cranes to 367 at the end of FY09. Further, SML would now be getting into the higher range of 1,350 tonne capacity cranes that would be useful for nuclear power and refinery projects. The company's purchase of technologically superior high-tonnage cranes and trailers and a wider presence offering proximity to large project sites are expected to strengthen its standing in the domestic market.At the current price, the SML stock is trading at a multiple of 3 times estimated FY10 earnings(Rs 24). Keeping in mind the company's strong presence in the domestic crane hiring industry and future growth prospects, Investors can accumulate the stock on declines. The downside to the stock remains very limited due to the company's unique and well-hedged business model. Accumulate