Tuesday, June 03, 2014

Market Mantra
Western India Shipyard Ltd hits another buyer freeze at Rs.2.64. The scrip is going to give fantastic returns going forward. As it seems to be a turnaround case. 
Today buy call was initiated in Dhunseri Petrochem & Tea Ltd. (BSE Code: 523736 / DPTL)  at Rs.128. The company has excellent fundamentals. Incorporated in 1961 as Dhunseri Tea and headquartered in Kolkata, DPTL is a part of the Rs.2,500 crore-plus Dhunseri Group and the largest manufacturer PET of resin following the capacity expansion in Haldia. DPTL has two PET resin plants in the Haldia port town of West Bengal while another manufacturing facility is at Ain El Sokhna, a deep‐sea port on the Red Sea in Egypt through its subsidiary, Egyptian Indian Polyester Company S.A.E. The tea estates of the Dhunseri Group are located in Assam (India) and in Malawi in Africa. The company has ten tea estates with nine tea factories in Assam and its subsidiaries have two tea estates with two tea factories in Malawi. The company’s tea packaging and blending units are located in the Dhunseri Tea Estate in Assam and at Jaipur in Rajasthan. The company also owns a commercial IT Park, which is located at Bantala in the South‐East Kolkata. Egyptian Indian Polyester Company S.A.E, Dowamara Tea Company Private Ltd, Dhunseri Petrochem & Tea Pte Ltd., Makandi Tea and Coffee Estates Ltd. and Kawalazi Estate Company Ltd are the subsidiaries of DPTL. The company doubled its Haldia PET resin capacity. The Egyptian plant commissioned in November 2012 is operating at since Q4FY13. DPTL has a market of about 500 PET customers in 50 countries and its products are sold under the ASPET brand in North America, European Union, Middle East, Eastern Europe and Africa. To deal with its global operations, the company has set up a branch office in the Dubai Multi Commodities Centre Authority under the name of Dhunseri Petrochem & Tea Ltd. DPTL has a strong presence the Indian tea market through its brands ‘Lal Ghora’ and ‘Kala Ghora’. To boost its overseas presence, the Dhunseri Group acquired two tea estates in Malawi in South East Africa. The group modernises its tea factories by replacing old machines with new higher output machines and continuously replaces old tea bushes with high yielding and superior clones. The Dhunseri Group has thus positioned itself as a progressive global group in terms of assets and revenues. DPTL sources low cost energy from its 8‐MW captive coal power plant, which was to be supplemented by another 10 MW coal‐based captive power plant in Q3FY14 to meet the power requirements of expanded capacity. Dhunseri Group’s Tea plantation acreage has increased following the acquisition of two Malawi tea estates and set off by the sale of its Namsang Tea Estate. The Group’s global PET capacity is expected to double from 4,10,000 TPA in FY13 to 8,30,000 TPA in FY15 following the
completion of its plant in Egypt to meet the growing PET resin demand in Africa, Middle East and Europe leaving the Indian unit to cater to the robust demand in Asia including India and some demand from Europe and the USA. The shares of the company are expected to give decent returns to the investors.
Glodyne Tech Ltd hits another buyer freeze. It is a huge company and it is strange how the share is trading at such a low price. 
Yesterday's recommended Gitanjali Gems Ltd at Rs.76 today moved to Rs.82.25, where some profit booking was suggested to the Premium Members as it was near the 1st target of Rs.84.
Marg Ltd should be accumulated on all declines, as the scrip is going to give superb returns going forward. The CMP of Rs.18-19, is just nothing considering the size of the company. You should treat it like your fixed deposit: just buy and keep holding. 
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