Tower Talk
* Lakshmi Energy & Foods may attract HNIs as it is recommended for investment both by Parag Parikh Financial Services and the market savvy Edelweiss Securities.
TOWER TALK
* Is the marwari bear cartel slowly cutting their short positions and preparing for a build up of longs? The volumes of last four days say so.
* FIIs are slowly returning. Once the sub prime pain eases and healing starts, India may be the safest emerging market.
* Can you believe this? The Pharma sector, which has been listless for the past few years, may be the smartest performer in 2008. Thanks to the finance minister.
* All the stocks that were eroded by 60% to 70% of their values in the last two months have become good bets by default. A technical pull-back may give 30% to 50% return from their recent lows.
* Buybacks abound in mandi times as it gives immense advantage to rich managements to reduce equity by buying shares at a very low price.
* Bodal Chemicals is a value buy as it has come to very attractive levels. Once its rights issue is completed, the stock may seek upper levels.
* PBM Polytex, a dividend paying company with good plans ahead, is quoting under Rs.17. It’s a value buy at current levels.
* A Mumbai analyst recommends Asian Oilfield Services, Asian Electronics, Bihar Tubes and Avon Organics at current levels. Is there magic in these stocks?
* ANG Auto, which is at Rs.90 level is a good medium term investment. The company, which is in a niche trailer market, has the first mover advantage in the branded trailer segment.
* MacMillan India can be bought for long-term as the company is available at a price close to its book value. Its many acquisitions will come into play in coming years.
* Micro Technologies has recently launched another high growth product called MICRO – VDP (Video Door Phone) for housing complexes and apartments. A screaming buy below Rs.200 level.
* Jupiter Bioscience is acquiring a manufacturing facility of Merck Life Sciences in Switzerland. Scrip may see a sharp rally in coming days.
* Bhagyanagare India is betting high on Solar photo voltaic business and its joint venture has already placed the order for supply of 57 MW production line. Keep a close watch on this scrip.
* Patels Airtemp is quoting less than one third from its recent high of Rs.146 in January 2008. Technically, the scrip seems to have bottomed out around Rs.40 level. A risk-free bet in the engineering space.
* GM Breweries is tipped to come out with encouraging results for March’08 quarter on 3rd April. Buy for short term gains.
FIFTY FIFTY
Market Guidance
* Jaihind Projects (Rs.77.60) is expected to report full year sales of around Rs.125 cr. and bottomline of Rs.6.25 - 6.5 cr. Long-term investors can accumulate this stock at current levels as the outlook of the company is encouraging.
* ABG Shipyard (Rs.686.15) - India's current share of global shipbuilding market is a mere 0.5%. But Indian shipyards have benefited from the current shipbuilding boom as most of the orders that have flowed into India are only because of the lack of berth availability in major shipbuilding nations.
The company has a very strong order book position with an encouraging outlook. Investors should take benefit of this fall to accumulate this stock for good long-term growth.
* PG Foils (Rs.54.45) - Promoters & strategic investors recently converted part of preferential allotment at full payment of Rs.100 while the market price is just Rs.48. This indicates their confidence in the company whose fundamentals are intact.
* Kamat Hotel (Rs.178.85), which we had recommended earlier also is expected to come out with encouraging results for March 2008. Full year EPS is likely to be around Rs.26/28 level. The stock commands a present P/E of just 6 or so.
* HCC (Rs.139.45) is likely to attract investment support from FII and some leading domestic fund managers. Stay invested.
* Renaissance Jewellery (Rs.72.20) - is under accumulation by smart investors at the current price. Book value is Rs.87. Its high since listing is Rs.200 while the low is Rs.50.
* Ashiana Housing’s (Rs.88.80) fundamentals are said to be intact. The company is said to have achieved record sales in this quarter too. Full year net profit is likely to be around Rs.40 cr. The stock seems to have bottomed out.
* Ecoboard Inds. (Rs.18.55) – Long-term outlook for Wood Free Particle Boards continues to look positive. The dues of IDBI and IIBI have been paid off in full. It is likely to become debt-free company. Investors can keep watch to add this stock on dips. It may become a turnaround story.
* Futura Polyesters (Rs.21.10) restructuring will get over in next few weeks. Long-term investors can accumulate this stock on dips.
* Fundamentals of Grauer & Weil (Rs.95.25) are intact. The stock reacted from its high in line with the change in sentiment. Stay invested.
* Gujarat Glass (Rs.309.40) (old name Kojam) – Long-term investors likely to see good benefit. Stay invested.
* Sharyans Resources (Rs.204.95) - As per informed sources fundamentals and growth plans are good. Stay invested.
* Mundra Port (Rs.619), Gammon India (Rs.397) and Dredging Corpn. (Rs.645) are other good stocks likely to go up in the near future.
* Strong reports are pouring in for Assam Company (Rs.25.50). Investors can hold on to the stock.
* Zenith Fibres (Rs.23.20) results may not be encouraging for the Q4FY08. So book profits on pull back.
* The selling that emerged after bonus shares of Walchandnagar Industries (Rs.420.10) were credited in shareholders account seems to have been absorbed. The stock seems to have bottomed out at current levels. Stay invested.
Note: Sharp rise in raw material and other input cost like manpower cost and lease rentals is pinching industry, which it is not able to absorb. Growth rate is likely to slow down. We may see revival of growth from Q2 of 2008-09. Investors need to be very cautious in buying stocks. They should remain invested with strong & growth oriented managements having proven track record. Avoid all speculative stocks.
Those who bought at recent low levels should book part profits to remain in cash. We may see higher valuations on 31st March 2008 as there is likely to be value buying in good mid-cap stocks by mutual funds to improve their NAVs.
Decisive closing above 5100 on the Nifty will clear view for a further upmove. Investors should use the upmove to exit weak fundamental stocks.
* Jaihind Projects (Rs.77.60) is expected to report full year sales of around Rs.125 cr. and bottomline of Rs.6.25 - 6.5 cr. Long-term investors can accumulate this stock at current levels as the outlook of the company is encouraging.
* ABG Shipyard (Rs.686.15) - India's current share of global shipbuilding market is a mere 0.5%. But Indian shipyards have benefited from the current shipbuilding boom as most of the orders that have flowed into India are only because of the lack of berth availability in major shipbuilding nations.
The company has a very strong order book position with an encouraging outlook. Investors should take benefit of this fall to accumulate this stock for good long-term growth.
* PG Foils (Rs.54.45) - Promoters & strategic investors recently converted part of preferential allotment at full payment of Rs.100 while the market price is just Rs.48. This indicates their confidence in the company whose fundamentals are intact.
* Kamat Hotel (Rs.178.85), which we had recommended earlier also is expected to come out with encouraging results for March 2008. Full year EPS is likely to be around Rs.26/28 level. The stock commands a present P/E of just 6 or so.
* HCC (Rs.139.45) is likely to attract investment support from FII and some leading domestic fund managers. Stay invested.
* Renaissance Jewellery (Rs.72.20) - is under accumulation by smart investors at the current price. Book value is Rs.87. Its high since listing is Rs.200 while the low is Rs.50.
* Ashiana Housing’s (Rs.88.80) fundamentals are said to be intact. The company is said to have achieved record sales in this quarter too. Full year net profit is likely to be around Rs.40 cr. The stock seems to have bottomed out.
* Ecoboard Inds. (Rs.18.55) – Long-term outlook for Wood Free Particle Boards continues to look positive. The dues of IDBI and IIBI have been paid off in full. It is likely to become debt-free company. Investors can keep watch to add this stock on dips. It may become a turnaround story.
* Futura Polyesters (Rs.21.10) restructuring will get over in next few weeks. Long-term investors can accumulate this stock on dips.
* Fundamentals of Grauer & Weil (Rs.95.25) are intact. The stock reacted from its high in line with the change in sentiment. Stay invested.
* Gujarat Glass (Rs.309.40) (old name Kojam) – Long-term investors likely to see good benefit. Stay invested.
* Sharyans Resources (Rs.204.95) - As per informed sources fundamentals and growth plans are good. Stay invested.
* Mundra Port (Rs.619), Gammon India (Rs.397) and Dredging Corpn. (Rs.645) are other good stocks likely to go up in the near future.
* Strong reports are pouring in for Assam Company (Rs.25.50). Investors can hold on to the stock.
* Zenith Fibres (Rs.23.20) results may not be encouraging for the Q4FY08. So book profits on pull back.
* The selling that emerged after bonus shares of Walchandnagar Industries (Rs.420.10) were credited in shareholders account seems to have been absorbed. The stock seems to have bottomed out at current levels. Stay invested.
Note: Sharp rise in raw material and other input cost like manpower cost and lease rentals is pinching industry, which it is not able to absorb. Growth rate is likely to slow down. We may see revival of growth from Q2 of 2008-09. Investors need to be very cautious in buying stocks. They should remain invested with strong & growth oriented managements having proven track record. Avoid all speculative stocks.
Those who bought at recent low levels should book part profits to remain in cash. We may see higher valuations on 31st March 2008 as there is likely to be value buying in good mid-cap stocks by mutual funds to improve their NAVs.
Decisive closing above 5100 on the Nifty will clear view for a further upmove. Investors should use the upmove to exit weak fundamental stocks.
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