Tuesday, May 27, 2014

Two Stocks: Must Buy
(i) Western India Shipyard Ltd (Rs.2.09): Western India Shipyard Limited (WISL), India's largest composite ship & rig repair facility in the private sector, is one of the world's advanced multi-dimensional and multi-purpose yard offering modern, streamlined, sophisticated ship & rig repair facilities and industrial services.
WISL's state-of-the-art Floating Dry Dock "westerner" has a capacity to repair ships upto 60,000 dwt and to accommodate ships upto 225m. length and 32.5m. in breadth.
The scrip is near its 52-week low price of Rs.1.40 and therefore, accumulate as much as possible and keep holding. The yard has been designed and established in collaboration with world leaders in Ship Repairs. Functionally laid out and built around the gravity centre concept, the yard is 90% covered by lift and carry facilities by Portal/EOT/FDD & mobile cranes. It was taken over by ABG Shipyard Limited, a major shipbuilder with shipbuilding yards based at Dahej and Surat, by the acquisition of equity stake of 60%. Moreover, Shipping ministry is scheduled to be headed by Nitin Gadkari, who had made a name for himself by adopting an innovative approach in expanding road transport network and bridges in Maharashtra when he was a minister there in BJP-Shiv Sena Government. This further raises optimism for the stock. The target could be Rs.7-8 in the medium term, however considering it to be a Gujarat based company, the targets of Rs.11-12 can also be achievable. It was trading above Rs.15, in October--December period of 2010. 

(ii) Marg Ltd (Rs.18.20): Incorporated in 1994, MARG Group today successfully operates the fully functional ‘MARG Karaikal Port’ having a current capacity of 21 MMTPA. In addition, the Group has developed 1.2 Mil sqft of residential space, delivered 1200 homes and has a customer base of over 4000. The Group is executing 21 major projects worth more than Rs.3800 crores in varied domains through its EPC division. Major developments include a 1.85 million sq.ft. integrated development – 'MARG Junction Mall' and a unique 23 million sq. ft. integrated industrial and services township, 'MARG Swarnabhoomi'.
MARG Group is one of India's fastest growing infrastructure organizations and is listed by Dun & Bradstreet as among "India's Top 500 Companies 2011".
Moreover a recent Supreme Court order, disallowing promoters of Chennai based construction firm Marg to withdraw an open offer to public shareholders, has come as a relief to investors, who are stuck in shares of companies under similar litigation. The apex court on 25th April, 2014 set aside an order from Securities Appellate Tribunal (SAT), which had struck down Securities and Exchange Board of India (Sebi)' s decision to ask Marg's promoters to make an open offer. Akshya Infra — Marg's promoter entity — in October 2011, had made an open offer to the Marg shareholders to acquire up to 76.5 lakh shares, or 20% of diluted capital at Rs.91 a share. 
Later in December 2012, Sebi has told the promoters to announce an open offer for Rs.340 per share based on prices prevailing at that time together with interest. With SEBI taking a long time to clear the open offer, the company sought the regulator's approval to withdraw the offer. However, the honourable Supreme Court Judgement, has more or less made the case much stronger for the small investors. The share will slowly move up and reach near the open offer price. 
Buy the shares of the company and keep holding for a target of Rs.88-89 in the coming days. 
Note: I might NOT be present in the market in the 1st hour, tomorrow and for few days in this week, due to some nagging family issues, which is not getting solved, inpsite of my best efforts. Regarding the issue I would like to say that, it is another case of FRAUD, I had to encounter here in BOMBAY. It is very difficult to trust anyone here.....I am trying hard to settle the problem as soon as possible but it has been lingering on since last 7-8 days. Anyway, all the best for the markets. 
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