Stock Martket BSE » Short Term Investment

5 stocks to buy for short term investment

admin — Mon, 05 Dec 2011 08:08:59 +0000

Buy TCS at Rs 1178, Stop loss at Rs 1155

Buy Sun Tv at Rs 298, Stop loss at Rs 288

Buy Reliance Industries at Rs 807, Stop loss at Rs 798

Buy Chambal Fertilizer on 01.12.11 at Rs 90 now Rs 94.

Buy ICICI Bank at Rs 782, Stop loss at Rs 770

Crompton Greaves – Stocks To Watch

admin — Fri, 05 Aug 2011 03:33:32 +0000

Crompton Greaves

BSE – 500093

CMP – 160

CGL is a leading player in the power transmission and distribution (T&D) equipment and services business in India. In an industry dominated at the top echelons by large MNCs, the company is India’s largest private sector enterprise engaged in designing, manufacturing and marketing high technology electrical products and services related to power generation, transmission, distribution as well as executing turnkey projects. CGL is organised into three business segments viz., Power Systems, Industrial Systems, and Consumer Products. Presently, the company is offering a wide range of products such as power and industrial transformers, high-tension circuit breakers, railway signaling equipments, lighting products, fans, pumps etc

The company’s recent performance has been dampened by slow order inflow from the power systems segment. Further, rise in commodity prices and execution of few legacy orders with high input costs led to margin erosion. Issues pertaining to land acquisition, lack of coal linkages, delayed environmental clearances and rising cost of funds have dogged the power sector which happens to be CGL’s largest source of income.

Debt to equity ratio: A highly leveraged business is the first to get hit during times of economic downturn, as companies have to consistently pay interest costs, despite lower profitability. Considering CGL’s average debt equity ratio of 0.2 over the past three years which we expect to decline to 0.1 over the next three, the rating assigned to the stock is 8.

V.S.T Tillers Tractors – short Term Investment

admin — Fri, 08 Jul 2011 13:22:38 +0000

BSE : 531266‎

CMP : 548.00

V.S.T Tillers Tractors Ltd (VTTL) was incorporated in the year 1967 in Bangalore, India. It was promoted by the V.S.T Group, a well known business house in South India, in technical collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power Tillers and Diesel Engines. The plant went into production in the year 1970.

The manufacturing plant is located in Whitefield Industrial area near Bangalore. It has 75,000 Sq. mtrs. of land and a built up area of 15,000 Sq. mtrs (approx). The Manufacturing capacity of the company, presently is 25,000 Power Tillers, 32,000 Engines and 5000 Tractors. This capacity can be enhanced upto 30% within a period of 6 to 8 months.

Company’s financials are strong with healthy balance sheet. The company delivered strong growth during FY06-11 with revenues CAGR of 27%. Its net profit CAGR was of 44%. EBITDA margins also expanded from 10.6% in FY06 to 16% in FY11. The company has strong balance sheet with net cash & cash equivalent to the tune of Rs 47 crore as on March 11.

VST Tillers Tractors Q4FY11 (YoY) net sales stood up 25% at Rs 129.3 crore vs Rs 103.8 crore, total expenditure stood up 29% at Rs 110 crore vs Rs 85 crore, EBITDA was flat at Rs 19.5 crore, EBITDA margins stood at 15% vs 19%, other income stood up more than double at Rs 2.93 crore vs Rs 1.4 crore and PAT stood at Rs 14.6 crore vs Rs 15 crore.

For FY11, its net sales stood up 23% at Rs 425 crore vs Rs 345 crore, total expenditure stood up 26% at Rs 360 crore vs Rs 285 crore, EBITDA stood up 9% at Rs 68 crore vs Rs 62.3 crore, EBITDA margins stood at 16% vs 18%, other income was up more than double at Rs 5.97 crore vs Rs 2.8 crore and PAT stood up 9% at Rs 46.2 crore vs Rs 42.33 crore.

Bharati Shipyard – Short Term Investment

admin — Fri, 01 Jul 2011 13:17:46 +0000

Bharati Shipyard Ltd is the foremost privately operated shipyard in terms of building facilities in India. BSL has earned its reputation by constructing a large array of specialized sophisticated vessels for diverse offshore, coastal and the marine market sectors. BSL product range includes highly maneuverable and power packed offshore vessels including AHTS, PSV’s and MSV’s of varying bollard pulls, Tractor and ASD tugs, state of the art dredgers, deep sea fishing vessels, cargo and container ships, tankers and Ro- Ro Vessels

The company has order book worries as on March 31, 2011. Its total order book has come down 9% at Rs 4635 crore vs Rs 5076 crore. Order book pending execution has halved to Rs 1,000 crore vs Rs 2252 crore.

Bharati Shipyard Q4FY11 (YoY) total revenues stood up 25% at Rs 441 crore vs Rs 352 crore, which includes subsidy revenue of Rs 94 crore vs Rs 25 crore and PAT stood up 10% at Rs 39.23 crore vs Rs 35.6 crore. EBITDA stood up 91% at Rs 157 crore vs Rs 82 crore, EBITDA margins were at 36% vs 23%. Its interest costs stood up almost 4 times at Rs 93 crore vs Rs 24 crore.

For FY11 (YoY), its total revenues stood up 17% at Rs 1581 crore vs Rs 1352 crore, owing to subsidy revenue at Rs 211 crore vs Rs 84 crore, EBITDA stood up 46% at Rs 465 crore vs Rs 319 crore, EBITDA margins stood at 29% vs 24%, interest cost was up almost 2.8 times at Rs 274 crore vs Rs 96 crore and PAT stood down 19% at Rs 113 crore vs Rs 139 crore.

Federal Bank – BUY

admin — Mon, 07 Mar 2011 15:19:21 +0000

BSE Code : 500469

Kerala-based Federal Bank (FBL) is one of the best old private sector banks with excellent track record of growth and quality. Its net interest income (NII) of Federal Bank increased 17% to Rs 447.25 crore for the quarter ended December 2010. At 8% to Rs 1021.88 crore, growth of interest earned exceeded the growth in interest expended at 2% to Rs 574.63 crore, thereby supporting NII growth. Net interest margin maintained at a robust 4.31% as against 4.05% a year ago. Net advances went up 8.5% to Rs 28240.02 crore end December 2010 as Federal Bank reworked the loan book. The management expects 5% growth in the loan book in Q4 of FY 2011 over Q3 FY 2011. Retail advances grew 8.8% to Rs 8943 crore over the December 2009 quarter, forming 30.7% of gross advances. Home loans constituted 59% of the retail loan book end December 2010.Advances to small and medium enterprise (SME) increased 15.5% to Rs 9021 crore. The capital adequacy ratio (CAR), computed as per Basle 2 guidelines, stood at 16.42% end December 2010 as against the regulatory minimum of 9 %. The Tier-1 (core CAR) capital is 15.20%. Federal Bank is expected to register EPS of Rs 34.4 for FY 2011. The share price trades at Rs 349. P/E works out to just 10.1. The bank’s book value stood at Rs298.53 in the December 2010 quarter. Thus, P/BV is just 1.17. It is very attractive. Buy.

Financial Technologies – Short Term Investment

admin — Mon, 07 Feb 2011 03:22:34 +0000

Financial Tech, bottomed out by posting an intraweek low of 416 during the week ended March 6, 2009 and these levels have rarely been seen since. The scrip launched into an intermediate uptrend to peak at an intra-week high of 734.90 during the week ended April 17, 2009. Financial Tech. couldn’t sustain these levels for long and declined to post an intra-week low of 637.20 during the week ended April 29, 2009. The scrip commenced its uptrend from here and rallied to peak at an intra-week high of 1,721.95 during the week ended January 22, 2010.

Curenrly, Financial Tech, seems set to stage an upmove after a major weekly correction and with even the daily picture looking better, a further upside from these levels cannot be ruled out.

Bengal Tea & Fabrics – Short Term Investment

admin — Wed, 19 Jan 2011 10:47:54 +0000

It pays to have a diversified business in volatile times like these, as it helps to dc-risk against business cycles and volatility. Bengal Tea & Fabrics (BTF) is one such company whose business is spread into two different areas, tea and fabrics. This diversification has helped its stock hold on to its price in a much better manner by declining only 10 per cent against the BSE Small-cap Index, that plunged by 18 per cent since reaching its pick in early November. The other factor in favour of the company to override the volatility of the stock is its good dividend yield which works out 2.6 per cent.

In FY10, the company earned one-fifth of its revenues from tea while the remaining four-fifth came from the fabric division. The revenue mix has remained almost the same over the past two years. Under fabrics, BTF is present in yarns and cloth. Its textile mill at Ahmedabad has an installed capacity of 50224 spindles and 692 looms. For FY10, the company sold 134.5 lakh meter (14.92 per cent increase on yearly basis) of cloth and 42.76 lakh kg of yarn (16.46 per cent increase on yearly basis). Average realisations were up 6.47 and 7.11 per cent in cloth and yarn respectively compared to FY09. The trend is likely to continue this year too, but this might not really help the company to improve its margins as cotton prices have also shot up in the same period. In tea, BTF owns three estates (Ananda Tea Estate, Pathalipam Tea Estate, and Bordeobam Tea Estate) with an annual production of about 1.6 million kg of tea. Situated in North Lakhimpur in Upper Assam, the planted area of these estates put together is around 626 hectares. For FY10, the tea business witnessed a 25 per cent jump in sales value backed by a substantial increase in average realisation per kg. The same was up 22.53 per cent. Going forward, tea prices are expected to remain firm in 2011 as global tea deficit may reach as much as 130 million kg by April 2011. Average prices in Assam are also expected to see an upward movement of 20 per cent in the next one quarter, helping the company to post better results and increasing the share of the tea segment in the company’s overall revenue.

The last quarter results show that the tea segment improved its share from 20 per cent at the end of FY10 to 24 per cent at Q2FY1 1. For the second quarter ending September, revenue of BTF increased by 31 per cent on a yearly basis to 50.46 crore. In the same time, profit of the company increased by 52 per cent to 5.53 crore. This is far above the last five-year CAGR of 10 per cent and 41 per cent in topline and bottomline respectively. This shows the acceleration in the
performance of the company. In addition to a better financial performance, the stock is available at very attractive valuation 3.1 times of its annualized earning of H1FY1 1. Even on the basis of EV/EBITDA, it is trading less than five times and at a market cap to sales of 0.3 times. Looking at the improving financials and
attractive valuation we recommend investing in the stock with an expected price appreciation of 15-20 per cent in next one year.

Indiabulls Real- Buy

admin — Tue, 18 Jan 2011 06:53:15 +0000

Prakash Agarwal, Equity Analyst at RBS said that Indiabulls Real Estate target price is at Rs 250, of which Rs 75 comes from power business of the company. Real estate business accounts for only Rs 45-50 per share. He said that Indiabulls Real Estate has become a attractive buy.

He said that verdict on Tarka Generic could swing either way for Glenmark Pharma. Revenues of $ 20 million have been factored from Tarka Generic, he added.

Indiabulls Real Estate is going to restructure its power & infra business. It is going to demerge its power operations from the company and is going to merge power operations with Indiabulls Infra. Each Indiabulls Real Estate shareholder will get 2.95 Indiabull Infra shares. Indiabulls Real Estate holds 58.6% stake in Indiabulls Power. Indiabulls Real Estate is trading at 0.5x FY10 trailing BV of Rs 235.

RBS has given buy rating on Indiabulls Real Estate with target price of Rs 250. It feels that the stock is attractive based on the valuations. On Indiabulls Power, RBS is of the view that the de-merger newsflow saw pressure on the stock. There are expectations of excess supply. The de-merger would result in 2 separate businesses.

RBS feels that weak response to recently launched projects, slower-than-expected execution, poor performance of listed power subsidiary and any aggressive land acquisitions could be the risks to the target price of Indiabulls Real Estate.

Eveready Industries – Stocks To Watch

admin — Mon, 21 Jun 2010 01:47:56 +0000

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

Suzlon | GIC Housing Finance | Sandesh

admin — Wed, 12 May 2010 02:08:26 +0000

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.