Sunday, November 8, 2009
Friday, October 30, 2009
India Cements Ltd. ( LTP 110.45 )
INDIA CEMENTS Ltd. - Safe Investment at 110/ in the current market situation Because Good Dividend Paying Company; Every Year 20% Dividend giving and Company having Good reserves; Book Value at 115/- and Good Land Bank; Company EPS for 2008-09 was 16/- and Estimated EPS for 2009-10 is 25/-.
Stock is trading Equal to Book Value and Trading at P/E 4 as per this year EPS. Industry PE is 10; if we take PE 10 it will go 250/- within 6 months time. 1 to 3 months time its will reach 175/-.
Book Value 115/-; EPS 16/- for 2008-09 and Estimating EPS for this year 2009-10 is 25/-. Company Given Net profit of 281 Cr for the half year 2009-10 with 1955 Cr Turnover. As per this EPS 20/- Annualized. Next 6 months Profit will zoom So EPS for this year 25/-
Share Holding Pattern:
Promoters Holding 27.7%, Institutions 45%; Private Corporates 13% , Public only 9% and Others 5%
INDIA CEMENTS Ltd doing very good, The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 . Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh . The capacities as on March 2002 have increased multifold to 9 million tons per annum. Company having Plants at SANKARNAGAR; SANKARI; DALAVOI; CHILAMKUR; YERRAGUNTLA; MALKAPUR; VISHNUPURAM; in AP and Tamilnadu.
* The Company is the largest producer of cement in South India.
* The Company's plants are well spread with three in Tamilnadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra.
* The Company is the market leader with a market share of 28% in the South. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimisation of existing plants as well as by acquisitions.
* The Company has a strong distribution network with over 10,000 stockists of whom 25% are dedicated.
* The Company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.
* Regional offices in all southern states and Maharasthra offices/representative in every district.
The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per share (including premium of Rs.275/- per share) by way of Qualified Institutional Placement in December 2007.
The company through its Special Purpose vehicle M/s Coromandel Electric Co Ltd has commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of 17.4 MW and the same has started supplying power from the month of November 2004.
Company have another deep value in India Cements, it is the owner of Chennai Super Kings. That will itself give solid returns in 10 years from IPL. Buy India Cements and DCHL to own part of IPL cricket team franchises.. Value unlocking will happen when IPOs come separately for these franchises.;
Positive Highlights
1) Company doing very good; EPS 25/- Expecting for 2009-10;.
2) Mumbai Bulls and Operators are accumulating at current price. Because Company Strong Fundamentals. And available at very cheep price.
3) Company having Good Land Bank in Tamilanadu and Aandhrapradesh and Company having Good Reserves; Book Value at 115/-.
4) Good Dividend paying Company; Every year 20%.
5) Company given very good results EPS 16/- PE only 6 for year 2008-09;
6) Company Projected EPS for 2009-2010 is 25/-as per this PE just 4
7) Lot of expansion plans in Coming soon.
8) Very good future for this company
Stock is trading Equal to Book Value and Trading at P/E 4 as per this year EPS. Industry PE is 10; if we take PE 10 it will go 250/- within 6 months time. 1 to 3 months time its will reach 175/-.
Book Value 115/-; EPS 16/- for 2008-09 and Estimating EPS for this year 2009-10 is 25/-. Company Given Net profit of 281 Cr for the half year 2009-10 with 1955 Cr Turnover. As per this EPS 20/- Annualized. Next 6 months Profit will zoom So EPS for this year 25/-
Share Holding Pattern:
Promoters Holding 27.7%, Institutions 45%; Private Corporates 13% , Public only 9% and Others 5%
INDIA CEMENTS Ltd doing very good, The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 . Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh . The capacities as on March 2002 have increased multifold to 9 million tons per annum. Company having Plants at SANKARNAGAR; SANKARI; DALAVOI; CHILAMKUR; YERRAGUNTLA; MALKAPUR; VISHNUPURAM; in AP and Tamilnadu.
* The Company is the largest producer of cement in South India.
* The Company's plants are well spread with three in Tamilnadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra.
* The Company is the market leader with a market share of 28% in the South. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimisation of existing plants as well as by acquisitions.
* The Company has a strong distribution network with over 10,000 stockists of whom 25% are dedicated.
* The Company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.
* Regional offices in all southern states and Maharasthra offices/representative in every district.
The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per share (including premium of Rs.275/- per share) by way of Qualified Institutional Placement in December 2007.
The company through its Special Purpose vehicle M/s Coromandel Electric Co Ltd has commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of 17.4 MW and the same has started supplying power from the month of November 2004.
Company have another deep value in India Cements, it is the owner of Chennai Super Kings. That will itself give solid returns in 10 years from IPL. Buy India Cements and DCHL to own part of IPL cricket team franchises.. Value unlocking will happen when IPOs come separately for these franchises.;
Positive Highlights
1) Company doing very good; EPS 25/- Expecting for 2009-10;.
2) Mumbai Bulls and Operators are accumulating at current price. Because Company Strong Fundamentals. And available at very cheep price.
3) Company having Good Land Bank in Tamilanadu and Aandhrapradesh and Company having Good Reserves; Book Value at 115/-.
4) Good Dividend paying Company; Every year 20%.
5) Company given very good results EPS 16/- PE only 6 for year 2008-09;
6) Company Projected EPS for 2009-2010 is 25/-as per this PE just 4
7) Lot of expansion plans in Coming soon.
8) Very good future for this company
Saturday, September 26, 2009
MIC Electronics Ltd.
Buy on dips around 30/35.
An Explosive Growth Story
Among the multitude of issues that we face today, the single biggest issue on the radar screen of developed economies is global warming and on the list of developing economies is energy stability. These issues are being tacked from both the supply side and the demand side, using a set of complex mechanisms that involve governments, corporations and individuals. On the supply side, we have incentives for renewable energy that has spurred massive investment in power generation using alternative sources of energy. We also have the Clean Development Mechanism for promoting such generation in developing economies by charging high-polluting companies in developed economies.
On the demand side, there is an increased thrust on energy audit, energy reduction and energy saving devices. While the supply-side initiatives have received a lot of press and attention over the last decade, the effort on the demand side has been making quiet progress.
My stock pick for this month is based on this increased focus on energy saving devices. And here, LED-based lighting is going to play a big role. Light Emitting Diodes can now be used to produce the most energy efficient lighting devices. While a typical metal halide street lamp produces 30 lumens/Watt and a CFL produces 60 lumens/Watt, LED street lights can now produce upwards of 90 lumens/Watt (Lumens is a unit of light energy produced and Watt is a unit of energy consumed). Also the life of an LED is far longer than a sodium vapor lamp or CFL (Avg life of 5y vs 2y).
So, where is the catch? Well, LED lighting is about 1.5 times as expensive as CFLs and twice as expensive as metal halide lamps. Which is why, I have discounted the short-sighted individual/consumer as a potential buyer for this product. The opportunity is in street lighting, lighting for advertising displays, railway lighting and industrial lighting. A municipality or a corporation can afford to pay extra today to save 50% electricity consumption (and for double the life) for all its street lighting.
Already cities like Toronto are moving to a full-scale replacement of regular street lights with LED-based lights. India is not far behind, with quite a few municipalities testing out the lights under pilot schemes. And the opportunity is massive...Any idea how many street lights a city like Delhi or Mumbai has?! As per my first-cut estimates, the LED industry stands to make anywhere between USD 5bn and USD 10bn from street lights in India alone!
A company which can take advantage of this new big thing needs to fulfill two requirements - one, it should have the necessary technology, R&D and manufacturing expertise to be at the forefront of this exciting development. And two, LED-based lighting should NOT be the core business of the company today! Why? Coz the LED lighting industry will take a couple of years to develop and a company betting all its chips on this today could see itself being wiped out before it can rake in all the big bucks.
MIC Electronics (MIC) is a Hyderabad-based LED video display manufacturer. It makes most of its current revenues from this business line. The LED video outdoor display market in India has been booming with increased outdoor advertising spend. MIC had a 300cr turnover, 85cr EBITDA and 65cr for FY08. For the nine months ended Mar 09, the corresponding numbers were 196cr turnover, 68cr EBITDA and 52cr PAT. With 24cr debt (as of Jun08) on balance sheet, the company looks attractive at its 291cr market cap (P/E of 4 and EV/EBITDA of 2.6). The company's management seems very competent - you can check this out on their website.
And all this with only its core business!
Now throw in the LED lighting angle to the above business and we have a very compelling story - a company with a strong, well-managed core LED video business, which is poised to take advantage of the anticipated boom in LED based lighting. MIC Electronics has, over the last 2 years, developed various LED-based lighting products - Street lights, Railway & Industrial lights and LED lights powered by solar panels.
This is one of the better technology product stories originating from Indian shores. And funnily enough, it does not seem expensive like most tech stocks on the NASDAQ. MIC Electronics is a very attractive stock at current market levels and is an explosive-growth story.
An Explosive Growth Story
Among the multitude of issues that we face today, the single biggest issue on the radar screen of developed economies is global warming and on the list of developing economies is energy stability. These issues are being tacked from both the supply side and the demand side, using a set of complex mechanisms that involve governments, corporations and individuals. On the supply side, we have incentives for renewable energy that has spurred massive investment in power generation using alternative sources of energy. We also have the Clean Development Mechanism for promoting such generation in developing economies by charging high-polluting companies in developed economies.
On the demand side, there is an increased thrust on energy audit, energy reduction and energy saving devices. While the supply-side initiatives have received a lot of press and attention over the last decade, the effort on the demand side has been making quiet progress.
My stock pick for this month is based on this increased focus on energy saving devices. And here, LED-based lighting is going to play a big role. Light Emitting Diodes can now be used to produce the most energy efficient lighting devices. While a typical metal halide street lamp produces 30 lumens/Watt and a CFL produces 60 lumens/Watt, LED street lights can now produce upwards of 90 lumens/Watt (Lumens is a unit of light energy produced and Watt is a unit of energy consumed). Also the life of an LED is far longer than a sodium vapor lamp or CFL (Avg life of 5y vs 2y).
So, where is the catch? Well, LED lighting is about 1.5 times as expensive as CFLs and twice as expensive as metal halide lamps. Which is why, I have discounted the short-sighted individual/consumer as a potential buyer for this product. The opportunity is in street lighting, lighting for advertising displays, railway lighting and industrial lighting. A municipality or a corporation can afford to pay extra today to save 50% electricity consumption (and for double the life) for all its street lighting.
Already cities like Toronto are moving to a full-scale replacement of regular street lights with LED-based lights. India is not far behind, with quite a few municipalities testing out the lights under pilot schemes. And the opportunity is massive...Any idea how many street lights a city like Delhi or Mumbai has?! As per my first-cut estimates, the LED industry stands to make anywhere between USD 5bn and USD 10bn from street lights in India alone!
A company which can take advantage of this new big thing needs to fulfill two requirements - one, it should have the necessary technology, R&D and manufacturing expertise to be at the forefront of this exciting development. And two, LED-based lighting should NOT be the core business of the company today! Why? Coz the LED lighting industry will take a couple of years to develop and a company betting all its chips on this today could see itself being wiped out before it can rake in all the big bucks.
MIC Electronics (MIC) is a Hyderabad-based LED video display manufacturer. It makes most of its current revenues from this business line. The LED video outdoor display market in India has been booming with increased outdoor advertising spend. MIC had a 300cr turnover, 85cr EBITDA and 65cr for FY08. For the nine months ended Mar 09, the corresponding numbers were 196cr turnover, 68cr EBITDA and 52cr PAT. With 24cr debt (as of Jun08) on balance sheet, the company looks attractive at its 291cr market cap (P/E of 4 and EV/EBITDA of 2.6). The company's management seems very competent - you can check this out on their website.
And all this with only its core business!
Now throw in the LED lighting angle to the above business and we have a very compelling story - a company with a strong, well-managed core LED video business, which is poised to take advantage of the anticipated boom in LED based lighting. MIC Electronics has, over the last 2 years, developed various LED-based lighting products - Street lights, Railway & Industrial lights and LED lights powered by solar panels.
This is one of the better technology product stories originating from Indian shores. And funnily enough, it does not seem expensive like most tech stocks on the NASDAQ. MIC Electronics is a very attractive stock at current market levels and is an explosive-growth story.
Sunday, September 20, 2009
Saturday, August 29, 2009
Wednesday, March 11, 2009
Aban Offshore Ltd
Aban offshore Limited, incorporated in 1986, is an Indo-US joint venture that is in the business of providing and operating ships, vessels, rigs, structures, equipment and personnel required for on-shore and off-shore drilling and oil field services. It is India's largest offshore drilling entity in the private sector. India offshore Inc. its American partner provide both technical know-how and equity participation. It owns offshore oil rigs and also operates ONGC's rigs on a contract basis and provide drilling services. Aban Offshore also owns the only FPSO in the country. Six facilities are located on Mumbai High, while there is one each on the Persian Gulf and Indian east coast.Key Risk : The major risk for Aban Offshore at the moment is that its have debt of around Rs.16,000 crore and some portion of debt due to mature this year and the next. In 2006 when crude oil price starting to move up and outlook of commodity sector looking very bright, Aban acquired Norwegian drilling company Sinvest-ASA at an enterprise valuation of $ 2.2 billion, largely with debt.Financials : Aban Offshore net profit jumped four-fold to Rs 256 crore in Dec 2008 qtr. but failed to prevent its market capitalisation plunge 57.2% since the start of 2009 to Rs 1194 cr.The reason for the particularly poor performances on bourses is the negative perception in the market about the outlook for this sector with crude oil price falling.Conclusion : From the 52 week high of 4290.90 Aban offshore plunge 95% to 232, therefore it is already discount all the negative perception in the market about its future outlook and now it is risk free investment for medium to long term investor. Last few days if market rumored to believe then some insider are buying at lower level and anytime its blast 20-30 percent from current level. For short term swing trader keep a eye on 210 and 200 level if this two level hold for few days then every possibilty that its move sharply from current level toward its first target of 322.
Sunday, March 1, 2009
Hindustan Dorr-Oliver Ltd
Hindustan Dorr Oliver (HDO) is one of the few small-cap engineering companies that managed to weather the current slowdown by focussing on diversification of services and offering specialised technologies through overseas tie-ups. The company’s recent order-win from Uranium Corporation of India for a greenfield ore mining and processing facility demonstrates its ability to quickly capitalise on new business opportunities. At Rs 31.8, this listed subsidiary of IVRCL Infrastructures & Projects holds strong earnings potential from a medium-term perspective. Investors can consider investing in this stock, which trades at a modest 2.8 times its expected per share earnings for FY10.
HDO’s expertise lies in providing turnkey solutions and Engineering Procurement and Construction (EPC) services in liquid solid separation applications in industries such as mineral processing, fertiliser and chemical and environmental management. The diversified operation has aided in steady order flows even in a downturn such as the present one. The company has managed a 63 per cent growth in net profits for the nine months ended FY09 compared to year-ago numbers. The profit growth would have been higher but for the steep hike in interest costs primarily on account of working capital requirements.
HDO’s expertise lies in providing turnkey solutions and Engineering Procurement and Construction (EPC) services in liquid solid separation applications in industries such as mineral processing, fertiliser and chemical and environmental management. The diversified operation has aided in steady order flows even in a downturn such as the present one. The company has managed a 63 per cent growth in net profits for the nine months ended FY09 compared to year-ago numbers. The profit growth would have been higher but for the steep hike in interest costs primarily on account of working capital requirements.
Sunday, January 18, 2009
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