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

Supreme Infra – Stocks To Watch

admin — Fri, 02 Sep 2011 03:13:54 +0000

Supreme Infra

BSE Code: 532904

Supreme Infra, incorporated in 1983 at Powai, Maharashtra, is one of the largest emerging infrastructure company of India having annual turnover worth Rs. 3823 crore. It bags orders from both private and public sector and its client list include NHAI, NMRDA, Maharashtra Road Development, Indian Railway, PWD and Mumbai Port beside numerous private sector companies. The company, having book value of Rs. 154, has cash reserve worth Rs. 242 crore that indicates it as bonus candidate. Supreme Infra, having paid up equity worth Rs. 16.74 crore, had recommended 15 % dividend for the FY 2010 for its share holders. The 52 weeks’ highest price of its share was recorded at Rs.320 and the lowest one was registered at Rs. 178. Investors can grab it for midterm for target of Rs. 300. GMDC (Rs. 176.00) (Code: 532181):- Gujarat Minerals Development Corporation is fully owned by Gujarat Government and it is enjoying leading position in Indian Mineral sector. The management of the company is planning to set up value added plant for its Kutchh based Bauxite mines for which they may find some private company as a private partner. It may be recallaed that currently the demand of value added mineral is increasingly growing and this company does not want any stone unturned in this regard. This company had achieved 124 % growth for its Bauxite production and is hopeful for another 15 % growth this fiscal. The share holding pattern of the company suggests 75 % holding with Gujarat Government. Investors can add this stock in their portfolio from midterm perspective

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.

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.

Glenmark Pharmaceuticals – short term investment

admin — Tue, 11 May 2010 02:41:16 +0000

Glenmark Pharma (Code : 532296) : Glenmark Pharmaceuticals‘ subsidiary Glenmark Generics has signed a licensing and supply agreement with Taro Pharmaceuticals for sale of a branded product in US. As per the terms of agreement, Glenmark will manufacture the product and Taro will distribute the product in United States. Glenmark will receive milestone payments and a royalty on sales. Also it announced a licensing arrangement with generic drug maker Par armaceutical Companies Inc., marking the second major development last week. The timing of the announcement is a shot in the arm for Glenmark’s unlisted subsidiary, Glenmark Generics Ltd. An initial public offer is on the cards for this subsidiary, with the funds being used to improve the group’s liquidity position and lower debt. The company’s equity capital is Rs 26.98 crore. Face value per share is Rs 1. Buy at this level and buy more at decline.

Balaji Amines – Short Term Investment

admin — Sun, 25 Apr 2010 12:22:38 +0000

Balaji Amines

CMP Rs. 167.00

BSE Code : 530999

Most of the mid caps and small caps are hitting new highs but Balaji Amines is still available at 15% discount to its 52W high of Rs 195 made in Jan’10. It is among the few handful manufacturers across the world producing methylamines, ethylamines and their erivatives, as amine manufacturing technology is a closely guarded process. Few months ago it commissioned Gamma Butyro Lactone (GBL) plant with a capacity of 18 MT / day which is first of its kind in India and is again a 100% import substitute. Recently it commenced production of PVP K-30 which is an import substitute, at its new plant having installed capacity of 1200 MT. Because of the backward integration and introduction of niche products, company has been able to boost its operating margin considerably. In near future company is looking to set up a three-star hotel at its surplus land in Solapur, Maharashtra with an investment of Rs 30 cr. It has already finalized a deal with the Sarovar group for managing the hotel. On a conservative conservative basis for FY10 it is expected to register sales of Rs 260 cr and PAT of Rs 22 cr i.e. EPS of Rs 34 on equity of Rs 6.50 cr. Scrip can cross Rs 200 easily in short term.

Vivimed Lab – Short Term Investment

admin — Sun, 25 Apr 2010 12:17:34 +0000

Vivimed Lab

CMP Rs. 167.00

BSE Code : 532660

Co. is a speciality chemical manufacturer catering to segments including oral care, sun care, skin care, hair care, natural extracts, eservatives, anti microbial, anti oxidants, anti-aging molecule etc. Infact it is world’s 2nd largest manufacturer of Triclosan – an antibacterial used for oral care and one of the top three ompaniesfor Avis – a chemical which improves UV absorbing ability of Sunscreen. Lately to increase its global presence, it had decided to acquire Har-met International Inc a small importer of pharmaceutical & cosmetic product, based in USA. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. Presently it boasts of having five manufacturing facilities spread across Karnataka, Andhra Pradesh & Uttaranchal. In Aug 2009, company completed the buy back of US$ 12.50 million FCCB and issued 5.6 lac equity shares for the balance US$ 2.50 million FCCB @ Rs 185 per share leading to equity dilution to Rs 10 cr. For FY10 on a consolidated basis it may report a topline of Rs 350 cr and bottomline of Rs 30 cr i.e. EPS of Rs 30 on current equity of Rs 10 cr. Scrip may shoot up to Rs 200 in short term.

Aditya Birla Chemicals – Short Term Investment

admin — Sun, 25 Apr 2010 12:09:36 +0000

BSE Code : 500057

Co. is among the leading caustic soda producer in the northern and eastern region of the country. Apart from caustic soda it also produces liquid chlorine, hydrochloric acid, sodium hypochlorite, compressed hydrogen, aluminum chloride and bleaching powder. It has also put up its own 30 MW coal based captive power plant due to which its energy costs are lower than its peers. Although it has been reporting excellent performance, but its Dec’09 quarter result were subdued due to annual planned shutdown of power plant taken in the month of Nov´09. Because of that its power cost was high for that particular quarter as it had to purchase it from outside. Apart from that company is doing excellent. Of late there have been reports of improvement in caustic soda prices and it is expected to rise further with no dumping from US facturers and rising international demand. For entire FY10 it is expected to clock a turnover of Rs 225 cr and PAT of Rs 48 cr leading to an EPS of Rs 21 on equity of Rs 23.40 cr. Share price can easily appreciate 50%.