G M Breweies Ltd, which I mentioned to be McDowell in the country liquor space is on the upper circuit. Keep holding: Albert David Ltd recommended at Rs.90-91 range is now at Rs.105: Kernex Micro System Ltd recommended at Rs.142, a couple of days back in this blog is now at Rs.154. The stock as mentioned earlier is moving towards Rs.190 mark:Keep holding Tera Software Ltd with a Strict Stop Loss ofr Rs.92: Southern Online Bio Technologies Ltd (SBTL)is clocking huge volume today also on the news that the company will make huge profits by selling Bio-Diesel at Rs.2-3, magin per litre. The company could come up with a rights issue. It has alreadt set up a huge refinery and where the trial production started last year.The company's share price could close above Rs.13 today: Zenith Computer Ltd is also consolidating at the current price of Rs.67: Vamshi Rubber Ltd is also doing well today: Keep investing in the Small and the Mid-cap space: I am in the process of making another Blog which will only feature reports and important news on companies which were loaded on www.sumanspeaks.blogspot.com, from time to time and which gets lost in the information jungle of the latter:

Defence-related stocks: They have a lot of power

Head of Research at Karvy Stock Broking Hemindra Hazari says that he is very positive on the defence sector. He is optimistic about a lot of companies that are moving into defence. Premier Explosives Ltdone company, on which Hazari is very bullish. Hazari also says that the valuations of these companies are very high. Premier Explosives is eyeing around 50-60% growth in EPS for the next two years, he says. The earnings growth of most of these companies look strong in future, as most of them are moving into the defence sector.

On Premier Explosives and the Defence sector:

Karvy Stock Broking Ltd is very positive on the defence sector. We have about three to four stocks under coverage & Premier Explosives Ltd is one of them. I think that to understand the defence industry, one has to appreciate the fact that in India, there is always money for the government, to spend on defence. I take it extremely seriously both, from an external point of view as well as from an internal point of view. There are very large defence projects out there, where there is private sector participation. Among those are India’s missile programme, as well as India’s space programme, which does have a military application use. Some of these companies that we cover are involved in some of these projects, and a lot of it is classified information. We believe that there is good money to be made here, because if one sees some of their EBITDA margins in defence context, then they are extremely high and profitable. Premier Explosives is involved in some of these special projects, and we expect great revenues to start kicking off from second or third quarter of this year. On the growth in these companies: One has to understand that in a lot of these companies, the valuations are high. One has to see the earnings growth in some of these companies. For example, in the case of Aventel, one gets about 400% growth in EPS for this year. Whereas, in the case of Premier, one is looking between 50-60% growth in EPS for the next two years. The earnings growth in future seems extremely strong, because a lot of these companies are just moving into defence now, and those orders would lead to a phenomenal growth in both topline as well as in bottomline of these companies.