Building Up A Portfolio At A 7000 Level

[supratik]

May not sound good but "If you like the film Company - then buy ADLABS"

Thanks and Regards
Supratik

 

[nkpanjiyar]

Long time we did not have a portfolio round up. Here we go

Counters bought and Sold
Rolta India(Suggested at 93) (Target 135 - Achieved and cleared)
VSNL(Suggested at 226) (Target 270,320,340 Achieved and cleared)
Elder Pharma(Suggested at 187) (Target 240 Achieved and cleared)
Deccan Chronicle(Suggested at 229,accumulate on dips) (Target 270 Achieved and Cleared)
Dhampur Sugar(Suggested at 157) (Target 180+ Achieved and cleared)
ATN International(Suggested at 5.76) (Target was modified to 9.05 Achieved and cleared)
Maharashtra Seamless(Suggested at 402)(Cleared at 470)
Hindustan Zinc(Suggested at 147) (Target 180+ Achieved and Cleared)
Mercator Lines(Suggested at 82) (Target 115-125 Achieved and Cleared)
Spanco Tele(Suggested at 133) (Target of 170--sorry on that)
Bharat Seats(Suggested at 97) (Target not Set)
Sakti Sugar(Suggested at 83) (Target 100-110 Pending(depends on monsoon))
Hazoor Media(suggested at 11.2) (We cleared at 16.7)
Consolidated Finvest(Suggested at 50.7) (Target 67 Achieved and Cleared)
Deccan Chronicle (Suggested at 311) (Target 360+ Achieved and Cleared)
TVS Motor(Suggested at 70) (Target 105 Achieved and Cleared)
ASTRA MICROWAVE LTD(Suggested at 2095 Target 3000 Achieved and Cleared)
Amtek Auto(Suggested at 223) (Target 310 in 2 months Achieved and Cleared)
Dredging Corporation(Suggested at 555) (Target 660 Achieved and Cleared)
Crompton Greaves(Suggested at 650) (Target 750-780 Achieved and Cleared)
Visual Softwares(Suggested at 200) (Target 235 Achieved and Cleared)
Maharashtra Seamless(Suggested at 440) (Target 486 Achieved and Cleared)
Munjal Auto(Suggested at 225) (Target 255 Achieved and Cleared)
Sakthi Sugar(Suggested at 108) (Target 135 Achieved and Cleared)
Sanjivani Parenteral(Suggested at 52) (Target 65 Achieved and Cleared - some of us arealso holding till results)

Current Holdings( We are still hoping

MTNL(Suggested at 130) (Target 145 in very short term, 170 for mid term)
Kohinoor Broadcast(Suggested at 19)
PARENTERAL DRUG(Suggested at 100) (Target 140)
Uni Abex Alloys(Suggested at 160+-(Target not set)
APW President System CMP 176(We have applied for the Rights Issue - long term Investment)
Era COnstruction(Suggested at 130 target 200+)
GTC India(Suggested at 120 target 200+)
SuryaLakshi Cotton Mills(Suggested at 230 target not set)
Hindalco(Suggested at 128 target 163)
Madras Cement(Suggested at 1470 Target 2500 - 1year)



Current Transaction
Mercator Lines(Suggested at 140) (Target not set)
Everest Industries(Suggested at 216) (Target not set)
Areva T&D(Alstom Ltd)(Suggested at 365) (Target 420)
Patel Engg(Suggested at 393) (Target not set)

Dear Supratik, Fabulous work. Apology for not posting regularly and responding so late to this post. You are doing a great service in his forum. Appreciate your contribution. My Best wishes with you.

cheers,
nkpanjiyar

 

[supratik]

Era Constructin at 208.

Our target of 200 is achieved. Long term investors continue to hold.


The next tip is on Orchid Chemicals. I am expecting a huge profit margin this quarter. The stock has consolidated at current levels. Expect a boom in the counter after the market correction.

The price target would be set after the Results(to be announced today).

Thanks and Regards
Supratik

 

[supratik]

Orchid Chemicals Q3 net zooms 402.7% at Rs 28.96 crore
Source: IRIS (19 January 2006)
Orchid Chemicals (Q, N,C,F)* & Pharmaceuticals Ltd`s unaudited results for the quarter ended December 31, 2005 is as follows:

The company has posted 402.77 per cent increase in net profit to Rs 28.96 crore for the quarter ended December 31, 2005 (Q3 FY 05-06) as compared to Rs 5.76 crore for the quarter ended December 31, 2004 (Q3 FY 04-05).

Total Income has increased by 37.48 per cent to Rs 238.10 crore for Q3 FY 05-06 from Rs 173.18 crore in Q3 FY 04-05.


I would recommend a buy on this counter.
CMP 258. 52 Weeks high 289.

Target 340. No SLs recommended currently.

Thanks and Regards
Supratik

 

[supratik]

Mercator Lines races ahead on bonus issue

DALAL STREET SPIKES

Our Markets Bureau / Mumbai January 20, 2006



Shipping major, Mercator Lines, firmed up 7.53 per cent to Rs 147.1 after fixing February 3, as the record date for a bonus issue, which is in the ratio of 3 : 2. On Thursday, it touched a high of Rs 148.4.

The company's paid-up equity share capital is Rs 7.57 crore, while reserves stand at Rs 294.41 crore. It is in the business of transportation of petroleum products, has a fleet of very large crude carriers (VLCCs), tankers and mini-tankers among others.

The positive point for the company is that of late, VLCCs are the preferred carriers, on back of bigger scale oil refineries and economies of scale

 

[lurkingbong]

Hi Supratik,
One one of your previous posts made a passing reference about Adlabs. Do you have any other thoughts on it? I just came across this article
http://www.asianage.com/main.asp?layout=2&cat1=7&cat2=55&newsid=204014
which I think bodes well for the future. Do you have any recos on this stock, both long term and short term.

 

[supratik]

Our target of GTC is well broken.

Continue to hold the counter. Fresh exposures can be made in small quantities.

Thanks and Regards
Supratik

 

[supratik]

Hi All,

Can somebody please tell me where I could find the quarter results for a company immediatelt after it is declared or asap/.

I find in Economic Times/moneycontrol, they do give it for the frontline counters immediately but for other counters, it comes quite late.

Your help is appreciated.

Thanks and Regards
Supratik

 

[murthymsr]

Hi supratik,

Obviously the NSE web site is the most authentic, though delayed by a few hrs.
http://www.nse-india.com/marketinfo/companyinfo/online/resultslist.jsp

***************
May be some sites will post results earlier, you may have a look at:
http://www.equitymaster.com/hfyrlist.asp?sortorder=news.Udate DESC

murthymsr

PS: it's a subscriber feature now.

 

[supratik]

Gujarat Apollo Equipment-Building Smooth Highways
BSE 522217; CMP Rs 182
Shares in issue: 7 mn, Market Cap: Rs 127 crore
EPS 05: Rs 7.5, EPS 06 estimated: Rs 11
Short Term price target Rs 125
12 month price target Rs 300
Q3 Results on January 30th, 2006
Liberal Rights Issue on the way
BUY

The biggest names in the construction services segment Nagarjuna, L&T, Patel and HCC sit upon a collective order book of over Rs 30,000 crore. An order book large enough to last 5 years of Revenues. More importantly, nearly half of this order book comprises of the Government and State Government contracts relating to the building up of rural roads, the NSEW corridor, the Golden Quadrilateral and its extensions. So, concerns that build machinery that will build these roads, will also gain immensely.

To me as a natural extension, the direct beneficiary of building up the national infrastructure of highways, would be a host of suppliers that provide the construction equipment. A name that comes to mind right away is Gujarat Apollo Equipments (GAEL). With projected Revenue growth in excess of 50 per cent and earnings growth in excess of 46 per cent for financial 2006, it is GAEL which should find a firm place in the portfolio of those investors who believe in a construction led growth story.

Investors would note that over the past few months a motley bunch of equipment and logistics providers have hit a sprint, these include Elecon, Eimco, Sanghvi Movers and ABG Heavy. GAEL is next, I believe.

Business Background

The 31year old GAEL is a concern which designs and builds the entire range of equipment for building asphalt roads. GAEL controls 60 per cent of the market segment in which it operates with a base of over 1400 customers and an equipment population of around 3500 units.

The company has the wherewithal to indigenously produce various products like Asphalt Batch mix and Drum Mix Plants, Sensor Paver finishers, Bitumen Pressure Distributors and Kerb Pavers. The company caters to all the three categories namely, Govt & Semi-Govt agencies, Corporate Customers and Small contractors. While the first two customers account for 70 per cent of the sales, the balance is brought in by small contractors.

Road Projects - A Huge opportunity

The total length of roads to be built under the Golden Quadrilateral (GQ) and North-South-East-West Corridors (NS-EW) are 5,846 km and 7,300 km respectively. Under the GQ, road of length 2005 km (34.3 per cent ) has been completed, while 3,758 km (64.3 per cent ) is under the implementation stage. Under the NS-EW projects, road of length 557 km (7.6 per cent ) are completed, while 423 km (5.8 per cent ) is under the implementation stage.

In the next 15 months, that is by Dec 2005 the GQ project is scheduled to be fully completed. In terms of total cost of the project, the development of four-six laning would cost over Rs 54,000 crore (at 1998-99 prices). For port connectivity, road of length 363 km is envisaged, out of which 56 km is completed and 113 km is under implementation. This underscores the opportunity.

Strong Technical Backing

The company, which has a technical collaboration with Wheelaborator Clean Water Systems of the US, controls 60 per cent of the market segment in which it operates, with a base of over 1,400 customers and an equipment population of around 3,500 units. The outlook for the company is bright not only for the current year, but also for many years ahead.

Financials

In the Q1 to June 2005, GAEL reported Revenues of Rs 17.4 crore and after tax profits of Rs 1.39 crore. These compare well with the Financial 2005 Revenues of Rs 62 crore and after tax profits of Rs 5.3 crore. Given the burgeoning size of GAELs order book, financial 2006 Revenues should reach closer to the Rs 100 crore mark, with after profits of nearly Rs 8 crore.

On a post bonus Equity of Rs 7 crore, GAEL will thus report an EPS of Rs 11. On the Tuesday closing price of Rs 182, the scrip draws in a PE of 16.5. Given the fact that GAEL is now entering a new growth trajectory, the scrip is likely to command a higher PE of 18-20 as we go nearer to financial 2007. On financial 2006 estimated earnings, the scrip should see a price target of Rs 225, an upside of 23 per cent on the current levels.

However, if we were to go by financial 2007 Revenue projections of Rs 125 crore and after tax profits of Rs 10 to Rs 12 crore or an estimated EPS of 17, the scrip should see a conservative valuation of Rs 300-340. That is a near 86 per cent upside in just over a year from now.

The very fact that the promoters own 56 per cent of the Equity and the fact that FIs, Mutual Funds and FIIs have just begun sniffing at the stock implies a beginning of a growing investment interest in the stock. The recent bonus issue of 1:1 will further liquidity in the counter enabling large institutions to take a bite into the GAEL Equity.

GUJARAT Apollo Equipment is moving on the growth avenue on increasing demand for road construction and maintenance machinery such as indirect heating equipment, asphalt batch mix and drum mix plants, sensor paver finishers, bitumen pressure distributors and kerb pavers.

A demand worth $10 billion (Rs 45,000 crore) of construction machinery is anticipated in the next 15 years because of planned activity and investments in the road and construction sector.


Thanks and Regards
Supratik