StockPickForTomorrow

Shasun Pharma - Excellent Results

2012-02-09T22:04:00.000-08:00

Shasun Pharmaceuticals has declared its third quarter results.

Its Q3 net profit was up at Rs 12.6 crore versus Rs 36 lakh, YoY. The company's net sales were up at Rs 205 crore versus Rs 142 crore, YoY.

In a recent development, Shasun Pharma Solutions Limited (SPSL), the UK-based subsidiary of Chennai’s Shasun Pharmaceuticals Limited, has received around GBP (Great Britain Pound) 400,000 (close to Rs 3.2 crore ) grant from the UK government’s investment package, which is meant to generate more job opportunities in the region.

The grant accounts for around 20 per cent of the company's investment of GBP 2 million (Rs 16 crore) made recently in its plant in Dudley, UK. The company has built up capacity for niche product manufacturing segments with the investment, and is expecting around GBP 5 million annually from the new technologies installed, said S Abhaya Kumar, managing director, Shasun Pharmaceuticals.

“We expect the new capacities to increase our support to the custom-synthesis and contract manufacturing customers. This will also reflect on the top line and bottom line of our business,” Kumar said. The company has developed niche capabilities in critical reactions like ethylene reactions, which would help it serve its customers in these technologies.

The company was selected for the grant, along with few other companies including Piramal Healthcare UK which has a facility at Morpeth, since the investment had generated more job opportunities. Expansion of SPSL has created opportunity for around 20 people afresh in the Dudley facility.

“The new technology and capability we have built up will provide us around GBP 5 million (Rs 40 crore) business annually in future,” he said.

With the expanded capacity, the company expects its top line to be around GBP 44 million (Rs 352 crore), while the bottom line is expected to grow 13 per cent. SPSL has posted a top line of GBP 37 million (Rs 296 crore) last year. Shasun Pharmaceuticals acquired UK-based pharma company Rhodia Pharma Solutions in 2006 and renamed it as Shasun Pharma Solutions.

According to information available with the company till the end of November 2011, the UK subsidiary has a pre-launch pipeline of 19 projects in the second and third phase of clinical study. Currently, it has a contract manufacturing portfolio of around 28 launched products.

Shasun Pharmceuticals’ manufacturing unit at Visakhapatnam in Andhra Pradesh is expected to be commissioned by July-August 2012, Kumar said.

[source:http://www.business-standard.com/india/news/shasun-pharmas-arm-gets-uk-govt-grant/457742]

This shows that company is in its growth path and strengthens my confidence in it. Slowly and steadily, this is going to achieve greater heights.

HAPPY NEW YEAR 2012

2011-12-31T23:15:00.000-08:00

WISH ALL MY READERS

A VERY HAPPY & A PROSPEROUS

NEW YEAR 2012

Agre Developers - Potential beneficairy of FDI in Retail !

2011-11-25T03:02:00.000-08:00

Union Cabinet approves 51% FDI in multi-brand retail and raise the cap on FDI in single-brand retailing to 100% from 51%.

An excellent move by the Govt. at the time when it was very much needed. A much delayed reform expected to help unclog supply bottlenecks and ease inflation over time. India will open the country's retail industry to foreign supermarkets.

There will be lot of beneficiaries of this move, as covered in media, like Pantaloons Retail, Shoppers Stop, Spencers Retail (Subsidiary of CESC), Trent etc. But there is one more company from the Future Group, which is not in limelight is Agre Developers.

About the Company -

Agre Developers Limited aims to create a capital-light, partnered real estate development model, focused on retail real estate, infra-logistics parks and the development of wholesale markets. Demerged from Pantaloon Retail (India) Limited with effect from 1st Apr 2010, Agre was listed on BSE and NSE on 31st Dec 2010.

Through retail-led real estate developments and asset management, Agre integrates operational as well as retail-specific aspects throughout an asset’s lifespan. In collaboration with Future Supply Chain Solutions Ltd., Agre aims to setup Infra-logistics parks across the country. With best-in-class facilities and easy access to transportation networks and hubs, our logistics assets will cater to a wide range of industrial distribution needs.

The retail market environment in India faces a long-run increase in demand and increased competition in wholesale trade and business. To balance supply constraints, Agre aims to set up modernized wholesale markets across major cities and other market-centric locations across the country.

Businesses -

With a strong domestic economy, increased consumption and favourable demographics, the retail revolution in India has given rise to increased demand for retail-led real estate developments.

Agre’s vision is to create a capital-light, partnered real estate development model, focused on the retail, wholesale market, residential and infra-logistics verticals. Agre is committed to bring state-of-the-art real-estate solutions to India to benefit investors and customers.

They have following businesses -

1. Mall Management - In today’s dynamic market place, mall differentiation, optimized operational expenses and enhanced efficiencies are the key to long-term value creation. Agre understands the needs of retailers and helps manage retail environments on a sustainable basis.

2. Project Management - To meet the rising demands of cost-efficient and on-time delivery of real-estate developments, Agre has an established team of professionals with deep experience in design and construction projects. By leveraging our experience and knowledge of local markets, we aim to serve project and construction management requirements across the country.

3. Food Service Management - Food courts drive business in a mall and are integral to its success. Agre provides efficient food services management to lease, run and promote food courts that helps retailers improve customer satisfaction and loyalty while increasing throughput.

4. Wholesale Markets - The retail market environment in India faces a long-run increase in demand and increased competition in wholesale trade and business. To balance supply constraints, Agre aims to set up modernized wholesale markets across the country.

5. Infra-Logistics -Agre is looking at attractive investment destinations across the country to set up integrated infrastructure projects such as infra-logistics parks.

6. Residential - Agre aims to shape the skyline of residential real-estate with affordable and uniquely designed apartment enclaves, flats and residential properties.

Financials -

Market Cap 45.91
* EPS (TTM) 0.21
* P/E 195.71
* P/C 102.75
* Book Value 236.26
* Price/Book 0.17
Face Value 10.00

Financials may not look decent right now, as we need to view the future growth potential of the company. Book value is very much comforting and stands at a whopping Rs.236. Buy this stock for a view of 5 years and you will discover a multi-bagger in your portfolio.

Shasun Pharmaceuticals - Potential Multibagger !

2011-11-06T00:41:00.000-07:00

About the Company -

Shasun Pharmaceuticals Limited was incorporated in 1976 and is headquartered in Chennai, India. It manufactures active pharmaceutical ingredients (APIs), their intermediates and enteric coating excipients with a significant presence in some key generics. Shasun has created a strong product portfolio, building on its R & D Expertise, regulatory capabilities and multi scale production capacities. Shasun has also emerged as a key player in various service segments in the pharmaceutical field besides APIs and intermediaries, and is strengthening its offer of contract research, custom synthesis, contract manufacturing and contract formulation services to clients.

Today, Shasun is one of the largest producers of Ibuprofen worldwide. The company offers derivatives of Ibuprofen like Ibuprofen Sodium, Ibuprofen Lysinate and S+Ibuprofen. It is also one of the major producers of Ranitidine and Nizatidine in the world. Its products are exported to countries across North America, Europe, Asia and Latin America.

It has tied up with multinational companies in the formulations space wherein it will be developing and supplying products for the US market. The recent acquisition of the business and facilities of Rhodia Pharma Solutions by Shasun's wholly owned subsidiary Shasun Pharma Solutions Ltd (SPSL), UK equipped the company to evolve as a technology based service provider than as a contract manufacturing and research provider.

Future growth trigger -

Nano-technology joint venture project for cancer cure with US-based Nanoparticle Biochem Inc.

Shasun Pharmaceuticals plans to invest Rs 100 crore in two years on expansion plans. A part of this will be funded through external commercial borrowings of $6 million.

The company’s main thrust will be on a nano-technology joint venture project for cancer cure with US-based Nanoparticle Biochem Inc, with the support of University of Missouri.

“When radioactive gold nano-particles are injected in solid tumour, it can kill the tumour in 30 days, without the need for external chemo or radiotherapy,” said Mr S. Abhaya Kumar, Managing Director, Shasun. Trials on dogs and pigs are set to begin in August. Shasun will have the world-wide rights over this product.

Around $2 million will be invested in the nanotech project in two years. Already, $300,000 has been invested.

The joint venture is also planning to come out with a gel-like application for wound healing, delivered through nano-fibres.

Shasun mainly manufactures APIs for several pharmaceutical companies globally. It recently entered the branded market in India with the launch of a diabetes product and a blood-thinning drug, in Tamil Nadu. Plans are on to launch products for renal failure, cholesterol management and an over-the-counter pain ointment.

The company, which has plants in Puducherry and Cuddalore, also hopes to revive plans for a manufacturing facility in Vizag. Shasun’s mainstay business of ibuprofen will see more derivatives this year.

For the first quarter of FY2012, Shasun has reported a marginal 2 per cent rise in net sakes (consolidated) to Rs 196 crore over the same period last year. Net profit for the quarter was Rs 6.83 crore, against a loss of Rs 2.34 crore last year.

Shasun’s UK subsidiary is also looking good, said Mr Abhaya Kumar. It had posted profits for the first time in Q4 last year after being in the red for five years. (Shasun had acquired the ailing UK pharma company, Rhodia in 2006 and this was renamed Shasun Pharma Solutions.)

The UK subsidiary posted a turnover of Rs 68.90 crore in Q1 FY12 with profit after tax of Rs 4.91 crore compared to turnover of Rs 64.21 crore and profit of Rs 5.01 crores in Q1 FY11. The pre-launch pipeline has 16 live projects spanning clinical phase II and III.

Source - http://www.thehindubusinessline.com/companies/article2305746.ece

This is for sure will propell the top-line and bottom-line significantly. Serious long term investors should start accumulating in the range Rs.55-65 and keep holding for more than 2 years to see the true potential of the company.

Muhurat Buys - Samvat 2068

2011-10-26T03:42:00.000-07:00

....Wish all the readers a very Happy and a Prosperous Diwali....

Here are few picks for the next year starting with Large-cap stocks, which are going to give decent returns

Banks:
ICICI Bank
HDFC Bank
Axis Bank

Auto:
M&M
Tata Motors

Oil & Gas:
Reliance Ind

Mining & Minerals:
Coal India

Engineering/Capital Goods:
Larsen & Toubro

FMCG:
ITC

Pharma:
Sun Pharma

Telecom:
Bharti Airtel

And, other Mid-cap Stocks ideas for next year:
1. Godrej Industries
2. Videocon Ind
3. United Spirits
4. YES Bank
5. Coromandel Int
6. Dish TV
7. Tata Coffee
8. VIP Industries
9. Supreme Ind
10. Everest Ind
11. Cera Sanitary
12. Cravatex
13. TTK Prestige
14. Page Ind
15. Info Edge
16. Bombay Dyeing
17. HOEC
18. Spicejet
19. Lovable Lingere
20. Jubilant Foods

Have a great Samvat 2068 !

Glodyne Technoserve - Re-iterating a Buy

2011-10-11T04:29:00.000-07:00

My previous posts on the same company -

http://stockpickfortomorrow.blogspot.com/2007/07/paradyne-infotech-striving-for.html
http://stockpickfortomorrow.blogspot.com/2008/09/glodyne-technoserve-gem-of-stock.html

It has till now outperformed in the mid-cap IT segment, and looking promising for the future. Promoters/Management is committed as we have seen them hiking stake in the company.

“The fundamentals of Glodyne are strong which is based on our robust business models and we have full confidence on the future growth of the company. We believe in value creation for all our associates and are determined to make Glodyne as one of the best technology companies in India," Glodyne Chairman and Managing Director Annand Sarnaaik said.

It has grown both organically and inorganically. Recently it has acquired "Comat Tech" to expand its e-governance biz.

"Comat acquistion will help Glodyne expand its reach in new states and add several key partnerships and relationship with government for providing citizen centric programs," the company said in a release.

Comat has several pipeline of projects including UID services and it has also implemented PDS program which encompasses computerization of the food and civil supplies department covering over 10million families across Karnataka.

"Glodyne has been a pioneer in implementing transformational e-governance projects in the country. Comat brings on-the-ground experience of having worked for providing services for millions of rural citizens. Together with our technology and service offerings, we believe tremendous value can be created for all constituents," said Annand Sarnaaik, CMD Glodyne Technoserve.

Latest Financials -
Net Sales (12 m) : 982.37 crs.
Net Profit (12 m) : 145.18 crs.
EPS (TTM) : 39.19
P/E : 9.70
Book Value : 117.03
Div yield (%) : 1.1
Face Value : 6

I expect the company to grow further in future and if somebody has it, then continue to hold on and fresh entries can be done around on dip at 350 levels for a target of 450+ in next 12 months.

Review: Linc Pens & Plastics - HOLD

2011-09-14T11:28:00.000-07:00

Linc Pens & Plastics, another old recommendation of mine posted in Jan '09, has proved to be a multi-bagger as expected and has potential to go up further from hereon to achieve greater heights (Link: http://stockpickfortomorrow.blogspot.com/2009/01/accumulate-linc-pens-and-plastics-15-20.html)

It was trading at Rs.20 levels at the time of recommendation, and it went all the way up to touch Rs.100 levels. And currently trading at Rs.60 levels. Long term investors can enter on dip to reap benefits. And existing investors can hold on to the same to see higher levels.

Re-iterating Buy on Allcargo Global Logistics

2011-09-13T11:12:00.000-07:00

Allcargo Global Logistics is one of my old recommendation posted in March '09 (Link: http://stockpickfortomorrow.blogspot.com/2009/03/allcargo-global-logistics-ltd-buy-below.html)

It was trading around 700 levels (pre-split) at the time of posting the analysis and it went all the way upto 1000 levels by Dec '09. And currently trading at 750 levels (split adjusted). Basically the stock price didn't perform the way I expected. And I still feel that the current market price is highly undervalued taking into considerations of the growth story. As this company is going into lot of transformations, it is likely that it may perform better in next 2-3 years and eventually will grow as a giant in this sector.

Since then Blackstone Group holding has increased from 10.4% to 13.98% as per the latest shareholding pattern in bseindia.com. Another 9.71% is held with other financial institutes. And the promoters shareholding is at 69.82% and this leaves very less amount of free float. Liquidity is a concern, but I feel that good quality illiquid stocks have generated huge wealth for shareholders in long term.

I am pretty confident on the management team and especially Mr. Shashi Kiran Shetty, CMD. He has very ambitious plans and I am sure that he will deliver on that. Check out his interview on NDTV Profit (Link: http://profit.ndtv.com/news/show/allcargo-global-s-billion-dollar-dream-144212).

Few important developments -

Allcargo to use master brand 'Avashya' to enter new business

MUMBAI: Domestic logistics firm Allcargo Global Logistics has started a corporate re-branding exercise to create a master brand, Avashya, to cover all its products and services ahead of its foray into new businesses.

"Having a mother brand will help when we will look at other areas," Allcargo Executive Director Adarsh Hegde told ET. He said the company was yet to identify potential businesses to enter.

A person with direct knowledge of the company's plans, however, said Allcargo will foray into hospitality, real estate and ports under its umbrella brand.

(Link: http://articles.economictimes.indiatimes.com/2011-08-24/news/29922980_1_allcargo-global-logistics-ecu-line-master-brand)

Allcargo Global Logistics unveils new logo and branding

Allcargo has embarked on this ambitious journey of consolidating its brand through its specially crafted new logo and rebranding and repositioning exercise.

Allcargo Global Logistics Limited today proudly introduces a new logo and branding initiative. The company has undergone two key developments - The first is a minor modification in the name from Allcargo Global Logistics Limited to Allcargo Logistics Limited, the adoption of a new logo and brand identity and the second is the formation of a Parent Company called Avashya Group.

(Link: http://www.indiainfoline.com/Markets/News/Allcargo-Global-Logistics-unveils-new-logo-and-branding/5239061597)

All in all, i would say, keep this in your portfolio and let the story unfold in years to come. Definitely it will be a wealth multiplier in the longer run.

Coal India - Going Strong !

2011-09-04T02:54:00.000-07:00

Coal India has been a wealth creator for many investor in past 1 year. And it continues to be strong. This is my favorite pick in the large cap names. As per my previous post - http://stockpickfortomorrow.blogspot.com/2010/10/coal-india-ipo-subscribe-for-long-term.html the stock is performing as per the expectation at 380+ levels. And there is more steam left it in the long run.

Let's review the events which happened since its listing -

Coal India lists at 18.78% premium; trades higher 28% -IRIS 04-Nov-10
Coal India zooms 40% on debut -IRIS 04-Nov-10
FIIs` interest in the Coal India offer was a pleasant surprise -BUSINESS LINE 11-Nov-10
Coal India earnings to grow 22% to Rs 118 bn in FY11: Motilal Oswal -IRIS Exclusive 24-Nov-10
Coal India in talks with Indonesian co to buy its coal mines -IRIS 15-Dec-10
Coal India may float tenders for abandoned 18 mines -PTI 25-Jan-11
Coal India to set up 20 new washeries: Jaiswal -IRIS 14-Feb-11
E-auctions fuel Coal India profits -Business Line 15-Feb-11
India emerging as a major force in global coal market: Platts -IRIS 22-Feb-11
Coal India orders giant mining shovels -Business Line 23-Feb-11
Coal India approves revision in coal prices -IRIS 28-Feb-11
Coal India jumps 11% on raises coal prices -IRIS 28-Feb-11
N C Jha takes over as acting CMD of Coal India -PTI 01-Mar-11
`Demand for coal will continue to rise & domestic supply will not be able to keep pace` -BUSINESS LINE 03-Mar-11
Price hike will not affect Coal India`s MoU customers -Business Line 10-Mar-11
Coal India to discuss new import norms on Saturday -Business Line 10-Mar-11
Coal India stock hits record high on bourses -IRIS 27-Apr-11
Coal India awaits eco clearance for 8 projects -Business Line 12-May-11
Coal India FY11 net up 24.23% -IRIS 12-May-11
Coal India gains on strong FY11 numbers -IRIS 13-May-11
Coal India gains on buzz it may form JV with Peabody -IRIS 17-May-11
Long-term imports are not a deterrent to our acquisition strategy: Coal India -BUSINESS LINE 17-May-11
Coal India FY11 consolidated net up 13% -IRIS 25-May-11
Coal India gains post FY11 result outcome -IRIS 26-May-11
Coal India earmarks over Rs 100 bn capex for FY12 -PTI 31-May-11
Govt extends Jha`s tenure as Coal India acting CMD -IRIS 01-Jun-11
CIL assures efforts for extra coal supply to consumers -PTI 14-Jun-11
Coal India margins to remain intact going forward: ICICI Sec -IRIS Exclusive 28-Jun-11
CIL takes initiatives for safety of coal mine workers -IRIS 06-Jul-11
Coal India cons Q1 profit jumps 64% -IRIS 16-Aug-11
Coal India gains on good Q1 numbers -IRIS 16-Aug-11
Coal India overtakes RIL as India`s most valued company -IRIS 17-Aug-11
Coal India offers 447 mn tones of coal to power utilities -PIB 29-Aug-11
Coal India awaits green nod for 13 projects -BUSINESS LINE 31-Aug-11

I am very bullish in this stock for a longer term horizon, keep holding if you have or fresh entries can be done around 350 levels for a target of 500+ in next couple of years.

Cals Refineries - Update !

2011-08-29T03:18:00.000-07:00

Source: The Telegraph (Calcutta)

New Delhi, July 31: Cals Refineries, which plans to set up a refinery in Haldia, wants the Bengal government to extend the September-end deadline for the financial closure of its project as a global depositary issue by the company is yet to be cleared by the Union cabinet.

“We have sought time from the Bengal government till March 2012 for the financial closure of the project. We expect the Cabinet Committee on Economic Affairs (CCEA) to clear the Rs 1,425-crore global depositary receipts soon,” managing director D. Sundararajan told The Telegraph.

“We have explained the constraints for the delay and the state government’s response seems to be positive,” he said. The September deadline has been delayed by more than a year.

Sundararajan said, “The refinery will be one of the biggest investments in the state, and in the initial years of setting up the unit, it will generate employment for about 20,000 persons. The main plant will employ around 700.”

He said several ancillary units would come up near the refinery.

“By the end of August, the EPC (engineering, procurement and construction) contractors will come out with the report on the structuring of the project, which will give a better idea of how to carry out the financial closure,” he said.

The company has mandated turnkey contractors Saipem of Italy with the feasibility study for the 200,000 barrels-per-day (bpd) project.

The company had in March 2008 announced an investment of Rs 20,000 crore in the refinery. The project required 8,000 acres and according to the original schedule, was supposed to get completed in two phases beginning 2010.

It had got the clearance from the environment ministry in May 2009.

In the first phase, the project involves the relocation of a German refinery, having an upgraded crude refining capacity of 100,000bpd.

Sources said because of the resource crunch, the commissioning of the first phase had been delayed by a year to 2013, which would result in the refinery losing out on a seven-year tax holiday.

My View: The only inference i can make out is that the project is getting delayed and we need to wait for more time to see any results. But anyways, it seems some developments are expected sooner than later. Hope to see some positive developments in next 6 months. Wait and watch !

Perfect time to latch on to Large Caps !

2011-08-28T09:28:00.000-07:00

Market is providing very good opportunity to latch on to some good large cap stocks for very good appreciation in next 2-3 years time.

Last time when I posted Sensex was trading in a range, which got broken down and now trading at lower levels. I would like to have the following blue chips available at discount to their forward earnings -

Banks:
1. ICICI Bank
2. HDFC Bank
3. Axis Bank

Auto:
1. M&M
2. Tata Motors

Few more can be accumulated at lower levels which has been posted in earlier my post.

Keep accumulating good quality mid-caps as well which are trading at huge discount.

I hope the global turmoil (which is not new) would settle in near future. As far as Indian markets are concerned, it would move upwards in the last quarter of this calender year. India would be a favorable investment destination. So, hold tight on what you have and accumulate more on a bad day.

Happy Investment !

Market Ranged - Finetune Portfolio before the surge!

2011-07-21T03:56:00.000-07:00

I am writing after long long time, though not that long, its just 8 months since i posted the last message...though my first post in this year...

But anyways, markets is also playing in a range after a healthy correction early this year. And this is perfect as the market has made smart recovery in 2009-2010 giving more that 100% returns. Market is going though good consolidation and digesting lot of news on the global front like Europe crisis, Crude boil, Higher commodity etc. Its also dealing with internal issues like High Inflation, High Interest rates, Subdued growth, Corruption etc. All in all, market has shown great amount of resilience and trading in a tight range of 17,000-18,500 levels.

My take is to take stock specific approach and fine tune our portfolio before market gets into another territory, which is above 19,500 levels. Interest rates are going to peak out and the Inflation will be under control. We will be growing at a decent rate.

I am expecting a better 2nd half of the year and a rally towards last quarter.

I want to suggest few stock ideas for a long term portfolio (2-3 years perspective), where one can expect a decent return.

To make a balanced portfolio, we must have combination of Large, Mid and Small sized companies. So, let me go to the BIG boys first (In the order of preference) -

1. Reliance @ 850
2. Coal India @ 350
3. SBI @ 2400
4. Larsen @ 1750
5. ITC @ 200

The above stocks will give stability to ones portfolio and decent returns over long term. Just buy on every correction and prepare a blue chip segment for your portfolio.

Now coming to Mid sized companies that have potential to become BIG -

1. PFC @ 200
2. Bank Of India @ 400
3. REC @ 200
4. Titan @ 200
5. Cadila Healthcare @ 800
6. Godrej Consumer @ 400
7. United Spirits @ 950
8. JSW Energy @ 70
9. YES Bank @ 300
10. LIC Housing @ 200
11. Coromandel Int @ 300
12. Dish TV @ 80
13. Godrej Industries @ 200
14. Tata Global Beverages @ 90
15. GSPL @ 90
16. CESC @ 300
17. Havells India @ 350
18. IFCI @ 45
19. Zydus Wellness @ 600
20. VIP Industries @ 800

Now time to get into some good quality Small sized stocks which can give immense returns if held with patience -

1. Talwalkars Better Value @ 200
2. India Glycols @ 150
3. Nilkamal @ 250
4. Cera Sanitary @ 200
5. Zee Learn @ 20
6. Net 4 India @ 100
7. Vinati Organics @ 70
8. Wimplast @ 200
9. Nile ltd @ 200
10. Cravatex @ 350

Hope you got lot of ideas for your portfolio...Happy Investing...

A BIG Boost to Cals Refineries...

2010-11-28T21:35:00.000-08:00

Progress of Project 26/11/10 09:02

Cals Refineries Ltd has informed BSE that Al Qebla Al Watya of Kuwait on November 25, 2010 has signed agreements with the Company as its first entry into the Indian oil refining Sector. The agreements cover cash investments of USD 150 million through GDR route. The investment is subject to all Indian government and regulatory approvals.Al Qebla Al Watya is an investment vehicle of Kharafi. The Kharafi family with a heritage of over 100 years hails from Kuwait and controls one of the Middle East's largest conglomerates in the field of finance, construction, manufacturing (including oil and gas equipment), food industry, telecommunication and hospitality among many others. The Kharafi Group now operates in more than 30 countries around the world and has more than 100,000 employees.

(Source: BSE Website - http://www.bseindia.com/stockinfo/anndet.aspx?newsid=e0c2e7dc-84e8-4b52-ad7c-9632b9f2e4e3)

Keep Accumulating Cals Refineries for long term gains...Check out my previous post on Cals - http://stockpickfortomorrow.blogspot.com/2010/07/cals-refineries-limited-invest-and.html

HAPPY DIWALI

2010-11-04T11:28:00.001-07:00

Wish you all a very HAPPY and a PROSPEROUS DIWALI

Coal India IPO - SUBSCRIBE for Long term gains

2010-10-17T11:04:00.000-07:00

About the IPO:
Issue Period: 18 Oct 2010 – 21 Oct 2010
Price Band: Rs.225 – Rs.245 per share
Issue Size: 14,212 - 15,475 Crores
Lot Size: 25 shares

* 5% discount to Retail & Employees on allotment
* IPO grading given by CRISIL, ICRA and CARE is 5/5

About the Company

India is currently among the top three fastest growing economies of the world. As a corollary, India's energy needs too are fast expanding with its increased industrialisation and capacity addition in power generation. This is where 'coal' steps in, as the most dominant energy source in India's energy scenario.

Coal India Limited (CIL) - A 'Navratna' Public Sector Undertaking under Ministry of Coal, Government of India, has its Headquarters in Kolkata, West Bengal. It produces non-coking coal and coking coal of various grades for diverse applications.

As of March 31, 2010, it operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines (includes both open cast and underground mines). It also operated 17 coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40 million tons per annum. It intends to develop an additional 20 coal beneficiation facilities with an aggregate additional proposed feedstock capacity of 111.10 million tons per annum.

Coal India's major consumers are the power and steel sectors. Others include cement, fertiliser, brick kilns etc.

Corporate Structure and Subsidiary Companies

The Company has nine direct Subsidiaries and two indirect Subsidiaries as listed below:
Direct Subsidiaries: Indian
1. Bharat Coking Coal Limited
2. Central Coalfields Limited
3. Central Mine Planning and Design Institute Limited
4. Eastern Coalfields Limited
5. Mahanadi Coalfields Limtied
6. Northern Coalfields Limited
7. South Eastern Coalfields Limited
8. Western Coalfields Limited

Direct Subsidiaries: International
9. Coal India Africana Limitada

Indirect Subsidiaries (held through our subsidiary, Mahanadi Coalfields Limited)
1. MJSJ Coal Limited
2. MNH Shakti Limited

Financials
At upper price of the band, it is available at PE 15.3 considersing the full year EPS estimate of 16 for FY11. Considering the strong fundamentals, strong balance sheet and global peer comparision, it is going at a discount. It deserves to be in a PE band of 20-22, which would translate to a price range of Rs.320-Rs.352.

Conclusion
It can show a listing of Rs.300 and can cross Rs.350 over a period of 6 months. Company expects to improve marging going forward and EPS is expected to increase 15-20% annually. Considering all this, I would suggest to take a long term view on this stock and keep your money locked in for atleast 3 years to see the actual growth potential.

All the best.

Reiterating BUY on Grauer & Weil (India) Ltd - Potential Multibagger

2010-09-05T23:58:00.000-07:00

Refer my previous post on Grauer & Weil (India) Limited - http://stockpickfortomorrow.blogspot.com/2009/07/buy-grauer-weil-india-limited.html

Value Unlocking going forward in :-
1. Growel's 101
The latest addition to the group which holds out the promise of being one of the most aggressive retailing venture yet.

2. Growel Projects Ltd
Growel Projects Limited, a property development company

CALS Refineries Limited - Invest and forget !

2010-07-29T10:51:00.000-07:00

CALS Refineries Limited
Scrip Code: 526652
Group/Index: B/BSE500
Face value: 1.00
CMP: 0.33
52 Week's H/L: 0.89/0.27
Mkt. Cap.: 262 crs.

Cals Refineries Ltd., a publicly listed Spice Energy Group company, has plans to set up a total of 400,000 barrels per day (20 MMTPA) of oil refining capacity on India’s east coast in the State of West Bengal, in phases, thereby emerging as the third largest oil Refining and petrochemical company in India.

The Company’s first project involves the relocation and re-erection of an existing German refinery, with an upgraded crude oil refining capacity of 100,000 bpd in Phase I, to Haldia in West Bengal. The Company plans to expand this capacity to 200,000 bpd in Phase II through the relocation of another refining unit from East Asia, and to then implement an additional 200,000 bpd of green-field capacity in Phase III.

Phase I: The project involves the relocation of Bayernoil’s (a joint venture between British Petroleum, OMV, AGIP and PdVSA) refinery from Ingolstadt in Germany to Haldia, with additional units being procured from an existing Petro Canada refinery in Edmonton, Canada and from Arc City, Kansas, USA.

The targeted completion date for Phase I of the project is in fourth quarter of 2011.

The project is well underway, and is being implemented in conjunction with industry-leading EPC contractors and technical partners from across the globe. The refinery is being upgraded to have a Nelson Complexity factor of 11.8, which shall allow for a multitude of Crude Oils to be processed, thereby giving flexibility in the refinery production slate, making it an extremely viable proposition.

Key Milestones:
17 Jun 2009: Cals Refineries signs MoU signed with Bharat Petroleum Corporation (BPCL) for off-take of products
13 Mar 2009: Additional 101 acres of land allotted by Haldia Development Authority to CALS Refineries Ltd. for the upcoming refinery project
12 Feb 2009: Fiscal benefits and concessions received from Government of West Bengal
23 Jan 2009: Confirmation received from Haldia Dock Complex on availability of oil jetties at the Haldia port, capable of handling vessels for refinery’s operations with necessary Way Leave Licences & other approvals
26 Dec 2008: In-principle sanction received from West Bengal State Electricity Distribution Company Limited for power supply to the plant
17 Nov 2008: Agreement signed with British Petroleum (BP) for supply of crude & offtake of products (Gasoline & Diesel)
14 Dec 2007: Successfully closed GDR on Luxembourg Stock Exchange worth US$ 200 mn

Management:
The management team for the project comprises of industry veterans such as Mr. M S Ramachandran (former Chairman of Indian Oil Corporation Limited) and Mr. P N Devarajan (former Group President of Reliance Industries and Essar Oil). This US$1 billion project is being implemented at an extremely low cost and almost half the time compared to other Greenfield projects of similar size.

28th July 2010 - Outcome of Board Meeting:
- The Board of Directors of the Company has allotted 188800000 equity Shares of Re. 1/ each to Nyra Holdings Private Limited (earlier known as Spice Refineries Private Limited)
- Preliminary site work such as land filling and development has been carried out. The commercial operations for Phase I are expected to start in last quarter of financial year 2011-2012 considering the time taken for the financial closures.

Summary:
One can buy/accumulate the stock @ CMP or below with a very long term view of 5 years. Risk involved is Very Very HIGH as it all depends on the success or failure of the project. There is a RISK of loosing 33 paise per share on failure and a HUGE REWARD on success. I would buy the stock (definitely not part of the core portfolio) and forget the money put in this and hope for the best. By looking at the company developments, there is a scope for project materialisation. Patience is required, no need to track this stock on a daily basis.

BUY Allied Digital for tgt of 300+ in 1 year

2010-06-21T11:47:00.000-07:00

Allied Digital Services Ltd is a leading Indian IT infrastructure management services provider and a Forbes “200 Best under a Billion” company.

It provides services in IMS (Infrastructure Management Services), RMS (Remote Management Services) and MSS (Managed Security Services). Also provides solutions for Enterprise Technology Solutions, Networking & Communication Solutions and Integrated Solutions.

Allied Digital enables clients to seamlessly align IT with changing business perspectives thereby enabling maximized benefits and returns. With proven excellence in operations management, high-quality infrastructure, Allied Digital provides a proven and reliable outsourced alternative to global customers.

These capabilities provide the operational footing for a diverse portfolio of value-added solutions including technology, infrastructure management, simple-to-complex technical support solutions, security lifecycle services and professional services for design and deployment of technology infrastructure.

It has a healthy order book position with Rs. 1.1bn from Solutions and Rs. 4.34bn from Services. Revenues from En Pointe stood at US$11 mn for the quarter.

Consolidated financial highlights for the year ending March 31, 2010:
- Consolidated Revenues of Rs 6.98bn; up by 26% Y-o-Y
- Solutions accounted for Rs. 3.05bn (44%) and services accounted for Rs. 3.92bn (56%) of the revenues
- EBITDA margins stands at 20.4% for the year reflecting a growth of 210 bps Y-o-Y
- Net Profit for the year stand at Rs. 1.06bn; up by 38% Y-o-Y
- Diluted EPS for the year stands at Rs. 26.1 on equity face value of Rs. 5.

Consolidated financial highlights for the quarter ending March 31, 2010:
- Consolidated Revenues of Rs 1.93bn; up by 21% Y-o-Y and 8% Q-o-Q
- EBITDA margin stands at 21.3% for the quarter, reflecting a growth of 360 bps Y-o-Y
- Net Profit for the quarter stands at Rs. 310mn; up by 41% Y-o-Y and 14% Q-o-Q
- Diluted EPS for the quarter stands at Rs. 6.67 on equity face value of Rs. 5
- Healthy order book position with Rs. 1.1bn from Solutions and Rs. 4.34bn from Services.

- Revenues from En Pointe stood at US$11 mn for the quarter

EPS for FY11 is expected to be in the range of 29-31, buy it for a long term (1 year) target of 300+

M (ukesh) & A (nil)

2010-06-14T12:04:00.000-07:00

Great moves by the Ambani brothers !

Here is the game plan which is emerging out of recent developments -

Mukesh Ambani Group:
1. RIL (includes E&P, Petroleum Refining & Marketing, Petrochemicals, Textiles and Retail)
2. RIIL(Industrial Infrastructure)

Anil Ambani Group:
1. Reliance Comm
2. Reliance Infrastructure
3. Reliance Power
4. Reliance Capital
5. Reliance BIG entertainment
6. Reliance Health
7. Reliance Natural

Recent developments -
1. Re-negotiation of Gas pricing
2. Scrapping the non-competent agreement --- A big one
3. RIL getting into Broadband sector by acquiring 95% in Infotel
4. RComm looking for strategic investor for 26% stake
5. RComm planning to demerge Reliance Infratel (Tower business of RComm)

Going ahead -
1. Mukesh always loved Telecom business, now planning to get into this sector in a big way... How?
a. Already bought Infotel (Broadband portfolio)
b. Anil declared 26% stake sale to strategic investor...who would fit into this apart from RIL???
c. Reliance Infratel is getting demerged...RIL can share the infrastructure effectively...Infratel can get along with GTL and become the largest telecom infra company...

2. Mukesh would like to get into UMPP as well...obviously non gas based...as already Reliance Power is into it...

3. Mukesh would like to restructure RIIL and get along with Jai Corp to create a big infrastructure company...???

4. Mukesh has plans to get into the financial sector...may be through JM Financial plus other companies???

Stocks to get benefited -
1. RIL
2. RIIL
3. Reliance Communications
4. Reliance Power
5. Reliance Natural

Other stocks out of the group -
1. Jai Corp
2. GTL Infra (Speculation)
3. JM Financial (Speculation)

Lets see the future value creation of both the Reliance Groups ... :)

Hanung Toys and Textiles - Long way to go !

2010-06-10T12:19:00.000-07:00

Hanung Toys & Textiles Ltd. (HTTL) is a name to be reckoned internationally in the field of Soft Toys and Home Furnishings. In India, it has the distinction of being the leading manufacturer and exporter of Soft Toys and one of the leading manufacturers and exporters of Home Furnishings. HTTL's pioneering efforts on the shaped cushions have revolutionised the market, both domestic and international.

HTTL enjoys the distinction of having the best technical know-how as it was set up in 1990 in collaboration with a South Korean Company. We comply to international quality standards like EN-71, ASTM and BS 5852. We have also been awarded the ISO 9001-2000 for quality management systems to manufacture, supply and export of Soft Toys and Home Furnishings. We are the niche market holders in the Soft Toys and children's furnishings because of our excellent service, quality and the most competitive and consumer-friendly prices which has resulted in our continued presence in the markets of USA, Europe and other developed countries. Our professionally-managed design and development team has developed more than 4000 designs. Thorough study of the changing market trends, their creative and innovative ideas lead to the development of new designs everyday.

The company owns ‘Play-n-Pets’ and ‘Muskan’ brands in stuffed toys and ‘Splash’ in Home Furnishings. We are already catering to more than 100 distributors for the stuffed toys under the brand ‘Play-n-Pets’ and ‘Muskan’ across the country, including multi-brand outlets like Lifestyle, Shopper’s Stop, Westside, Big Bazar (Pantaloon group), Pyramid, Globus, Landmark and all other leading stores. Our ‘Splash’ range of Home Furnishings are available at 600 stores across the country.

Buy this stock and keep it in your portfolio to see the investments multiply :)

@ Bringing Smile to the World @

10 Stock Picks for Long Term

2010-05-30T21:41:00.000-07:00

Buy Vijay Shanthi Builders

Buy Crest Animation Studios

Buy TVS Motor Company

Buy JSW Energy

Buy Reliance Communications

Buy GIC Housing Finance

Buy Reliance Natural Resources

Buy Hindustan Dorr-Oliver

Buy Modern Dairies

Buy Windsor Machines

Buy Windsor Machines on dips

2010-05-22T11:58:00.000-07:00

The company set up operations at Thane (near Mumbai) in 1964 under collaboration with R. H. Windsor of U.K. In 1984, Klockner-Werke of Germany made the company a part of its world-wide operations and renamed it Klockner Windsor India Limited. Subsequent to the disinvestment of equity by Klockner to Mr. Dilip G. Piramal in 1994, the company acquired the status of being member of one of India's largest business houses, the DGP Group, and was initially named as DGP Windsor India limited, since year 2005 been renamed as WINDSOR MACHINES LIMITED.

Windsor by virtue of its long history and extremely high technical competence has established itself as a sound global player in the field of extrusion machinery. Thanks to the erstwhile technical collaborations and its continuous R&D that helped Windsor create a satisfied customer base around the globe.

Windsor's unique philosophy of working on customers' profits has earned the company accolades for being a machinery supplier with lowest running cost (per kilo of polymer produced).

Buy Windsor Machines on dips for a target of 80+ in a year. Excellent results for march quater, expected EPS for FY11 is 16. So go for it :)

Muhurat picks for Samvat 2066

2009-10-17T03:08:00.000-07:00

Wish you all a very Happy and a Prosperous Diwali :)

Galaxy Entertainment: Potential multibagger !!

2009-09-24T10:50:00.000-07:00

About the Company -

Galaxy Entertainment Corporation (GECL) is a leisure and entertainment organisation. It operates one of South Asia`s largest state of the art premium family entertainment centre. This entertainment centre at Mumbai comprises bowling and other game facility, bars and banquet halls. Chatterjee Management Services have ceased to act as the promoters of the company and Pantaloon Retail (India) , with a stake of 15.73% and Bellona Finvest Limited are the promoters of the company.

The company focuses on leisure & entertainment business segment comprising of food & beverage, games & restaurant activities. It entered into a joint venture (with 51% equity stake) with M/s. Ridge Foods, a division of Ridge Hospitals Pvt. Ltd. for acquiring the existing assets of Ridge Foods including franchisee rights of tropical Smoothie Cafe, a USA brand of fresh fruit drink.

Galaxy Lifestyle Restaurants is a wholly owned subsidiary company. CeeZee Foods Private Limited is a wholly owned subsidiary and is engaged in the Restaurant business which was acquired by the company and currently offers the `Sports Bar` restaurant at Colaba, Mumbai.

Galaxy owns and operates Sports Bar, Bowling Company and Rain Restaurant in Mumbai.

In March 2005, Pantaloon had acquired 15.73 per cent in Galaxy Entertainment Corporation at Rs 44 per share.

Pantaloon Retail’s open offer to minority shareholders of Galaxy Entertainment Corporation hit a roadblock. It had proposed to acquire 25,42,400 shares in Galaxy at Rs 51 through an open offer in April 2005.

Leisure and entertainment account for over six percent of the aspirational consumer spend and is growing rapidly. With the increasing number of malls, there is a strong need for quality options of leisure and entertainment. Galaxy will fill that need for the aspirational customers.

With a strong promoter like Pantaloon and with the vision of Kishore Biyani, Galaxy will go from strength to strength. Growth in entertainment, food & beverages, leisure business will be facilitated by the strong presence and availability of prime space that Pantaloon has in malls across the country. Galaxy will also gain from the management bandwidth that Pantaloon has created.

Need to wait and watch for further development from the promoters and i am sure that Kishore Biyani would have put much thoughts on this before buying. It will become a multibagger once the restructuring is done successfully. If one can hold for 2 years patiently will be rewarded.

Wall Street Finance - Buy

2009-09-07T10:29:00.000-07:00

Two News back to back -

Thu, Sep 03, 2009: Reliance Money exits Wall Street Finance

Sudip Bandyopadhyay, MD and CEO, Reliance Money, said the company had sold its 36% stake in Wall Street Finance. “We sold Wall Street Finance stake as our focus shifted back to India,” he said.

Mon, 7 Sep 2009: B K Modi picks 51% stake in Wall Street Finance

Industrialist B K Modi today acquired 51 per cent stake in forex and money transfer firm Wall Street Finance, from where Anil Ambani Group's Reliance Money exited by selling its entire 36.8 per cent holding last week.

This would trigger a open offer of 20% and the entire deal of acquiring 71 per cent stake would be worth about Rs 100 crore.

About the company -

The company has got 82 license, which allows it to be a money changer and also permits it to transfer money. It has recently applied to RBI for their permission to get into the domestic money remittance business. Domestic money remittance business is a business, which is currently being done only by the post office by a facility called money order. So this could be a very big market for this company.

It has plans to open at least 25 new branches in the current financial year. All the major formalities for 10 branches out of the above have been completed and these 10 branches will be operational in the current quarter.

Consequent upon the lifting of embargo by Reserve Bank of India on appointment of sub-agents of Western Union, the company plans to expand the network of agents for its Western Union Money Transfer Business all over India but especially in the Eastern Sector which has a high untapped potential.

A proposal to lend money against the security of gold is under consideration of the management. This business has possibilities mainly in the Southern sector and is proposed to he implemented through south branches of the company, if found feasible after the study.

The company has currently tied up for DD/TT arrangements with Axis Bank. Negotiations for a tie-up with Indusind Bank for stocking their blank DDs with the company`s branches are in the concluding stages. This tie-up will boost the efficiency of the company in catering to its customers.

All in all, one can take an exposure into this stock considering both short term and long term prospects.