Stock Martket BSE

The results of 3G bidding has had a negative impact on all telecom stocks; consequently, Tata Communications stock has been also seeing choppiness over the past few weeks and its value has been fluctuating between Rs 240-250 over the past two weeks. The company recently declared its FY10 results and has reported consolidated net loss at Rs 598 crore as against profit of Rs 315 crore in FY09. The net sales increased to Rs 11,025 crore from Rs 9,963 crore and operating profit margin declined to 9.55 per cent from 19.21 per cent. The depreciation went up to Rs 1,510 crore from Rs 1,102 crore and interest cost jumped to Rs 521 crote versus Rs 301 crore. The company has also signed a five- year agreement with BT Group and has become BT’s primary supplier of international direct dial (IDD) and other voice termination services outside, The deal has enhanced its capabilities in the digital media and entertainment space.

Goldman Sachs has sold 18.18 lakh shares of this newsprint company reducing its stake in the company to 5.16 per cent from earlier level of 7.81 per cent. For the quarter ended March 2010 the company reported a revenue growth of 19 per cent at Rs 356 crore. PAT at Rs 58 crore grew 174 per cent y-o-y for the quarter. On a full year basis, revenues came down 2.5 per cent to Rs 1,068 crore while PAT was up 17 per cent at Rs 126 crore. Paper margins rose to 18.88 per cent last quarter as opposed to 14.7 per cent a year ago. The company at the current price of Rs 106 trades at 6 times. its FY10 earnings.

LIC has acquired 1 lakh shares of Kin Dyes. This follows Kin Dyes’ recent acquisition of Germany based MNC DyStar with the support of its joint venture partner Longsheng Group of China. Kin has also recently passed a resolution to raise around Rs 500 crore by way of QIP (Qualified Institutional Placement) to fund its acquisitions and reduce debt. Kin intends to turn around Dystar replacing high cost German manufacturing with low cost centres in India and China. The company hopes it will be able to turn around its latest acquisition by FYi 1. For FY12, Dystar is expected to achieve sales of Rs 4, 200 crore and PAT of around Rs 212.5 crore. At. the current price of Rs 611 the stock trades at 37 times its FY10 earnings.

Eveready Industries (Rs.60.00) (Code : 531508) :- Co. is the world’s 3rd largest zinc carbon battery player, putting to the market about 130 cr units a year, catering to the entire range of equipments that need portable energy. It has a strong portfolio comprising of dry cell batteries (carbon zinc batteries, rechargeable batteries and alkaline batteries), flashlights (torches), CFLs (Compact Fluorescent Lamps) and packet tea. Interestingly, brand ‘Eveready’ has already celebrated 100 years of existence in India. Its state-ofthe- art manufacturing units are located in Kolkata, Noida, Uttaranchal, Chennai, Lucknow and Maddur. For future growth, company is putting special thrust on its new lighting product business i.e. CFL and GLS products apart from enhancing its traditional batteries & flashlight segment. Of late, company has even introduced digiLED Lanterns which have become quite popular in short time. To set a foothold in international market company has even invested Rs 40 cr to acquire controlling stake in French company called Uniross which is engaged in the manufacturing and marketing of rechargeable batteries and has strong presence in European market. For FY10, its sales grew by 13% to Rs 970 cr where as PAT (excl extraordinary items) zoomed up 130% to Rs 45 cr posting an EPS of Rs 6 on equity of Rs 36 cr having face values as Rs 2/- per share. Although rising zinc prices is a cause of concern, still investors can buy this scrip at current levels. Incidentally, company has booked an extraordinary profit of nearly Rs 100 cr in Q4FY10 on sale of real estate

Astec Lifescience’s (Rs.66.00) (Code : 533138) :- Co. core business is to manufacture wide range of active ingredients, intermediates and formulations which are sold to crop protection formulators. Besides it also produces intermediates for pharmaceutical industry. Apart from catering to Indian market company derives almost 35% of its total revenue from exports to Europe, South East Asia, USA & Middle East countries. It boasts of having almost 46 product registration in over 20 countries. Presently, company is in the process of enhancing the production capacity from 2800 MTPA to 3950 MTPA by setting up a new 100% EOU unit at Mahad, Maharashtra. The plant is estimated to begin operation by Dec’10. To maintain its growth momentum company is focusing on exports and CRAMS business. Meanwhile, along with a team of European scientists it has even floated a company called ‘Astec Europe’ in Belgium with an objective to participate in the European generics market. For FY10 its sales as well as PAT grew by healthy 30% to Rs 113 cr and Rs 14 cr respectively thereby posting an EPS of Rs 8 on equity of Rs. 16.90 cr. At current market cap of Rs 100 cr company is trading reasonably cheap and can be accumulated at declines for long term
gains.

Buy REC around Rs 267.30-272.10, stop loss Rs 265, book profit at Rs 279.20-291.10

Sell Prakash Industries around Rs 178.40-171.50, stop loss Rs 181, cover short at Rs 161.90-145.50

Sell Hindalco with stop loss of Rs 168 for a target of Rs 150

Sell Sterlite Industries with stop loss of Rs 716 for a target of Rs 660

Jayshree Tea and Industri :

BSE ID : 509715

NSE ID : JAYSREETEA

CMP: Rs.269.20
On an equity capital of Rs.11.17 crore, the company for FY10, is expected to have an EPS of around Rs. 75 and in FY11 an EPS of Rs.100 plus. The icing on the cake is the fact that the company is virtually debt free. Its total interest outgo till H1FY10 was a miniscule Rs. 4.59 crores, which is on account of the working capital needs.

Jayshree Tea and Industries

A BK Birla group company, Jay Shree Tea, the second largest bulk tea company was established way back in 1945. Over a period of time, acquiring a growing number of tea estates in both North and South India, it currently has 21 tea estates. 9,168 hectares is the area under cultivation and production is 21.80 million kgs. It produces around 10% of total Darjeeling tea produced in the country. read more…

Binani Industries (Rs. 117) (Code : 500059)

Target Price = Rs.182 ; Time Frame = 6months ;

Market Cap = 347 crores ; Shares O/S. = 2,95,96,425

Debt/Equity Ratio = 0.52 : 1 ; 52 week High/Low = 143/47

Face Value = Rs.10 ; B.V. = Rs. 68 ; P/E = 1.9 ; P/B: 1.7

The Braj Binani Group is a well-diversified industrial house with a 136-year history behind it. Today, the group is actively working in the core sectors of Cement, Zinc, Glass Fibre and Downstream Composite Products.

Binani Industries Ltd. is essentially a holding & investment company and currently holds strategic stake in listed entity Binani Cements and various unlisted entities like Binani  Zinc, Goa Glass Fibre and BT Composites. While calculating NAV of BIL we have valued read more…

BUY Petronet LNG Ltd Stop Loss 81 Target 92

BUY Hindustan Construction Company Stop Loss 114 Target 134

SHORT SELL Bank Of India Stop Loss 339 Target 318

SHORT SELL Jindal Steel & Power Stop Loss 676 Target 627

Suzlon BSE Code :

532667:- It is highly expected by the company that it will get an export order worth for 500 MW project. Market can witness some movement during next week following this expectation.

GIC Housing Finance

BSE Code : 511676 :- The market analysts expect that the company will achieve the EPS of Rs. 12 for the FY ended on 31st March, 2010. They have also set the target price of Rs. 125 within next three months.

Sandesh

BSE Code :526725 :- Considering the EPS of Rs.43, this share at present is quoted with 5.50 PE multiple which indicates that this stock is really very cheap. Also this stock is on radar of high net worth investors. Considering all these factors, investors can expect the target price of Rs. 300 within next three months.