Stocks For Investors Short Term Traders

Indus Ind Bank Ltd (89) :- TGT( 105 )

The stock stopped its sequence of descending tops and bottoms last week and entered in the good sustainable up trend on the chart. The stock has spiked up on a sharp volume expansion. Momentum indicator is giving positive divergent on the daily chart signals that the stock is ready for corrective bounce. There's room for a rise till the 115 levels if the volumes are sustained. At above 105, it will run into very strong resistance. Keep a stop at 79 and go long. Cover above 105.


Polaris Software (103) : - TGT ( 135 )

This mid cap software stock was in bear phase since Feb07. From the top of 237 it fell to the level of 63 only during this down trend. The stock consolidated between 70 and 100 for the last three months and it broke the upper ranges last week with good volume. The stock closed at three months high on Thursday and entered in the long term bull market. Momentum indicator on the chart is very much poised for more upside. One can buy the stock on every decline up to 90 with a stop loss below 80 on closing basis. There's room for a rise till the 135 levels if the volumes are sustained.


Mc Leod Russel Ltd (96) : - TGT ( 130 )

Tea sector stocks were in good demand last week and this stock is one of them. It formed a good base near 50 levels and bounced from those levels thrice in the lastthree years. Thursday it closed 12 months high on daily closing basis. The stock is in full upswing. Momentum indicator and volume indicator is supporting the rise.Target projections on the current chart patterns suggest that it has the potential to reach the 130 level. Keep a stop at 80.


C&C Constructions Ltd. (Code: 532813) (Rs.203) is primarily engaged in the construction of airfield pavements-rigid and flexible, state and national highways, city and rural roads, bridges and culverts and other infrastructure projects in India & Afghanistan. It also specialises in laying optic fibre cables, maintenance of telecom networks, electrical transmission networks, microwave towers, manufacturing & erection of telecom antennas. Presently, C&C boasts of an order book of more than Rs.1000 cr. made up entirely of road projects that have to be fully executed by June 2009. A couple of weeks ago, it bagged an addional massive EPC order of Rs.574 cr. from Jaypee Associates for the construction and development of a four lane road from Zirakpur to Parwanoo, passing through the states of Himachal Pradesh, Haryana and Punjab. For FY08 ending 30th June 2008, C&C is expected to clock a turnover of Rs.425 cr. with profit of Rs.35 cr. i.e. an EPS of Rs.19 on its equity of Rs.18.30 cr. For FY09, it can earn a profit of Rs.40 cr. on a topline of Rs.1000 cr., which works out to an EPS of Rs.22 on its current equity. Buy at sharp declines only.


Sujana Towers Ltd. (Code: 532887) (Rs.110) is engaged in manufacturing galvanized steel towers used in power transmission and as telecom towers. It also provides various services including engineering consultancy, turnkey installations, inspection & maintenance of towers etc. It has set up two large scale units at Hyderabad to emerge as India's largest galvanized steel tower manufacturing company and has expanded its tower capacity from 28,125 TPA to 1,28,125 TPA. In view of the fast growing demand for transmission towers and telecom towers and associated services within India and the neighbouring countries, it is in the midst of setting up another 1,00,000 TPA manufacturing facility at Chennai in order to cater to the domestic and export markets. It also intends to set up/acquire subsidiaries in the Middle East and South East Asia for developing power transmission and telecom infrastructure services. To fund its growth plans, the company made preferential allotment of 80 lakh warrants at Rs.140 and plans to raise nearly Rs.300 cr.through the FCCB/GDR route. It is expected to report total revenue of Rs.600 cr. with profit of Rs.50 cr. for FY08. This leads to an EPS of Rs.13 on its current equity of Rs.19.50 cr. and Rs.11 on its diluted equity of Rs.23.50 cr. A solid bet.


Royal Orchid Hotels Ltd. (Code: 532699) (Rs.103) operates in the hospitality sector with major presence in Bangalore. Currently, it manages eight properties including five star hotels, budget, resort, serviced apartments etc with a total room strength of around 655 rooms. Interestingly, the company follows a unique ‘Asset light’ business model of taking properties on lease or entering into a contract for managing & operating the existing hotel instead of owning them outright. This has helped the company manage its funds efficiently, have lower payback period on its projects and earn attractive operating margins. In the next few months, it is planning to open ‘Royal Orchid Central’ – four star category hotels at Pune (120 rooms) and Hyderabad (65 rooms) to cater to the business class. Subsequently, it plans to open five star hotels in Mumbai, Bangalore and Delhi. But for real growth, the company wants to target the lower end of the hospitality pyramid and plans to set up a chain of 50 budget hotels across India under the brand ‘Pepper Mint’ in the next 3 to 5 years. Recently, it bought a 30 acre property in Tanzania and also formed a joint venture with Parsvanath to develop 10 hotels at an investment of Rs.500 cr. Couple of days back, the company also acquired 50% stake in Galaxy Beach Resort (65 rooms) in Goa. For FY08, it may report total revenue of Rs.140-150 cr. with net profit of Rs.35 cr. on a consolidated basis i.e. an EPS of Rs.13 on its equity of Rs.27.25 cr. A decent bet in the hospitality sector.


Indo Asian Fusegear Ltd. (Code: 532658) (Rs.108) manufactures a wide range of electrical circuit protection equipment including distribution boards, switch boards, switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs, etc. Besides, it’s one of the largest manufacturer of CFLs and MCB’s in India. To capitalize the ongoing boom, it is diversifying into the power sector business and will undertake distribution projects on behalf of state electricity boards, corporations and utilities on a franchise basis. Meanwhile, it has forayed into cables & wires manufacturing business with a planned investment of Rs.100 cr. in phases. For the higher end segment, the company is setting up a plant in Haridwar under a joint venture with Simon Holding (Spain) for manufacturing home and building automation products for the first time in India. At the same time, it is putting up a facility in Saudi Arabia through a tie-up with Saudi National Glass for production of Compact Fluorescent Lamps (CFLs) and High Intensity Discharge Lamps (HID Lamps). For FY08, it is expected to clock a turnover of Rs.280 cr. with PAT of Rs.16 cr. on a conservative basis, which works out to an EPS of Rs.10.50 on its equity of Rs.15.30 cr. However, the company has the potential to post an EPS of around Rs.15-16 for FY09. Few weeks back, the company finalized an issue of 19 lakh warrants to promoters and others. At a reasonable discounting by 12 times against its FY09 EPS, its share price can move upto Rs.180 in the medium-term.


Super Tannery Ltd. (BSE Code: 523842 / Last Close: Rs.10.84 )
Super Tannery Ltd. is a Kanpur based leather products producer with over Rs.200 cr. turnover. The company has an equity of just Rs.3.58 cr. and the promoters hold 56.75% stake in the company. It also has overseas offices in UK and UAE.
First nine months of FY08, its net sales touched Rs.167.73 cr. with net profit of Rs.2.15 cr. For FY08, net sales Rs.220-230 cr. with net profit of Rs.2.95 to Rs.3.05 cr. is likely. The stock is available at P/E ratio of just 6 against its FY08 EPS, which is the cheapest in the leather industry.
Investors can buy this Rs.2 paid-up share with a stop loss of Rs.9.50. On the upper side above Rs.12, it will go up to Rs.14.50 in coming days and is the best stock for medium-term investors. Its 52-week high is Rs.16.58.


Uni Abex Alloy Products Ltd. ( BSE Code: 504605 / Last Close: Rs.102 )
Uni Abex Alloy Products Ltd. is a Neterwala group company, a pioneer and leading manufacturer of centrifugal and static casting in heat, wear and corrosion resistant alloys. Located at Thane, near Mumbai, the company was incorporated in 1972 and has an excellent track record of supplying critical components to a wide range of industries. It is equipped with modern manufacturing & testing facilities and is a premier source for high nickel and chromium alloys conforming to global standards.
It has a tiny equity of just Rs.1.98 cr. in which promoters hold 63.33% stake. Since last three years it has posted excellent numbers.
For December 2007 quarter, its net profit jumped 1225% to Rs.1.06 cr. while for the first nine months of FY08. Net sales rose by 21.18% but net profit jumped 55.03% to Rs.2.31 cr. It may end FY08 with net profit of around Rs.4 cr. and post an EPS of Rs.20. This 12.5% dividend paying stock is available at P/E ratio of just 5.
Uni Abex has executed an agreement for a joint venture with Manoir Industries of France the manufacture and marketing of reformer tubes.
Buy with stop loss of Rs.95. On the upper side above Rs.110, it can go up to Rs.120, Rs.139 levels in the medium-term. Its 52-week high is Rs.144.