1. BSEL Infrastrucuture Realty Ltd(Rs.73.25): The company is going great guns and is getting project after project. Recently in a 50:50 Joint Venture with Unity Infraprojects Limited, it has been awarded and allotted an area of 40,000 sq. meters with 1.50 Floor Space Index (FSI) at “Rajiv Gandhi IT Habitat” at Donna Paula, Goa for developing and constructing an Information Technology Park (IT Park). The project is estimated to be approximately 6,45,600 sq. feet of built-up area. IT is doing lot of projects in collaboration with Unity Infraprojects. The company has an excellent marketing team to grab new project and execute them. It has also a BATTERY OF EMINENT LAWYERS to fight its legal cases ( eg. Tardeo Municipality and Panvel Episodes) and hence the verdicts are expected to be in their favour. THE MOST IMPORATANT IS THAT THE FII PARTICIPATION [Lotus Global Investments Ltd holds 3.37% & KII Ltd holds 1.56 %] HAS INCREASED IN THE STOCK FROM 2.28 % HOLDING IN September, 2006 to 4.93 % in 31 December, 2006. This is a great booster to the company. Whereas, Bank of New York through a GDR issue holds 18030000 shares or 30.39 % of the total shareholding of the company. If a company does not have great future will a foregin bank hold position in the counter? The stock is all set to touch Rs.200 within a short time after such scintillating results. BUY HUGE QUANTITIES OF THIS COMPANY TO REAP BENEFITS IN A SHORT TIME. INDIA BULLS FINANCIAL SERVICES HAS ALREADY GIVEN A-RATING TO THE COMPANY. 2.Vishal Exports Overseas Ltd(BSE Code: 532618, Price: Rs.3.43): This is into Exports of Soyabean, Wheat, Rice etc. It is also into non-conventional energy space like Hydel Power and Wind Power, which automatically quilifies it for taking the benefits of the most lucrative "Carbon Credits". Trading in Carbon Credit is a Billion Dollar Business throughout the world. Hence, the most touching point is that the company is set to gain at Rs.3-Rs.4 Cr from the trading of carbon credit which would shoot its EPS in the coming quarters. The company is also to gain from the buoyancy in Wheat prices as the company is a major exporter of wheat. The Soyabean prices are also firming up in the international markets as there are lesser number of cases of bird flue these days. Soyabean meal is mainly used as farm & poulty feed in the developed and semi-developed coutries. The "Carbon Trading" story is alone sufficient to take the stock above Rs.10. Buy in good quantities and add more after the results. There are market rumour that the company has a board meeting on 31-01-07. Keep an eagle eye on the counter. 3.G M Breweries Ltd (BSE Code: 5074888, Price: Rs.123.25): It a Giant in the world of County Liquor business or u can say it is the Infosys Technology of the Country liquor business. Though most of the liquor companies are rally in the bourses the share price of the company has not performed as expected but this abberation is going to be cleared after the results on 25-01-07. According to the sources close to me, the company is coming up with very good results for the December, 2006 quarter, which could push the stock vertically to above Rs.250 levels. The company has huge demand for its products like AIA Engineering Ltd. and has virtual monopoly for its products in the Bombay and Thane, Maharastra. Normally this quarter is the strongest for the alcohol industry and hence the next quarter could be even better for this company. Buy Huge quantitites before the results and keep holding---this is sure to be a multi-bagger for the future. I would not be surprised if it reaches Rs.450-Rs.500 in 8--18 months time or earlier---anything can happen. This is a gem in this sector and the story is waiting to happen. 4. Also note that Kovilpatti Lakshmi Roller Flour Mills Ltd (BSE Code:507598, Price: Rs.54.85) has a meeting of the Board of Directors of the Company today i.e. on January 24, 2007, to transact the following: 1. To consider the unaudited financial results of the Company for the nine months period ended on December 31, 2006. 2. To consider and approve Scheme of Amalgamation of Eltex Super Castings Ltd (thesubsidiary Company) with the Company effective from April 01, 2006, subject to the approval of the shareholders and Madras High Court, Chennai. Keep watch on the counter as it is near its 52-week low price. It might also be a potential multibagger after the amalgamation of the Casting Company as companies in this space have high valuations. The fundamentals of the company are also very strong as for 31st March, 2006, the EPS is Rs.12.94 and till 30th September, 2006, the EPS is Rs.7.89 which translates into an EPS of more than Rs.15 for the FY-07-08. Seems a great company in the making. One of the Yahoo Group SumanSpeaks, members Kajal(Hariyani) Rijhwani (and one of my staunchest wellwishers), had asked me to evaluate the stock on last Friday. Thanks to her for picking the name of such a wonderful company. Today the market has corrected due to Correction in Cement, Banking and FMCG sectors as Government cut the import duty on s0me varieties of Cememnt and the last two sectors are likely to be affected if the inflation sets in. The rest of the sectors, Specially the Construction and Capital Goods section look attrative and could force buying in the stocks in these spaces.
Exit California Software Company Ltd, lock stock & barrel as its PAT Takes a Hit:
California Software Company has reported a steep decline in profit after tax at Rs 2 lakh for the quarter ended December 31, 2006, against Rs 3.10 crore in the corresponding period of the previous year. Total consolidated revenues rose 22 % to Rs 42.84 crore for the third quarter ended December 31, 2006, compared with Rs 35.08 crore in the year-ago period. The drop in profit was owing to lower margins on account of losses incurred by the US healthcare subsidiary, American Healthnet, capacity building and development expenses and increase in manpower costs. Yesterday, when I saw the stock going down many had asked me if they could enter, but I was sure something negative was happening in the counter as it cannot go down so sharply even as the news of acquistion was floating and hence resisted (Vinod Bhatia from Bombay, was the most recognisable face on the Yahoo Messanger, please ask him to ask him to find the truth). Some days back I had kept the stock on the watch list and I had even asked for some profit booking in the counter some (Search the old posts). But this dip in profits is a temporary phenomenon and the company could recover in the following quarters. A spate of acquisition is taking toll on the company. Exit without a question as it might fall back to sub-Rs.60 levels. More in the followiong postings, Best wishes, Suman Mukherjee India. http://finance.groups.yahoo.com/group/SumanSpeaks/ www.3paisa.com
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