Equity Watch, Market Trends

Conart Engineers, a clean debt free company is a potential take-over target

Conart Engineers is an ISO 9000 / 9001 certified detailed engg., procurement and construction company with specialisation in Industrial / commercial/residential/roads and bridges.Company has a proven record of successful project completion, with several awards and recognitions.Company was awarded ACCE L&T Endowment Award for excellence in construction.NICMAR-200 has listed the company as one of India’s fastest growing companies in construction division. This will enable the company to maintain existing clientel and secure new ones. Present order position is close to Rs. 30 crores while Company’s market cap. is barely Rs. 6 crores.Order book is likely to touch Rs. 50 crores  in FY11.

On the Financial front, Company is doing pretty well. The top line has gone up by 50 % during the last 2 quarters , the bottom line is also up..

But that’s not the reason to buy the shares of Conart Engrs.The main reason is that the promoters are willing to sell the company provided a good price ,above Rs. 56 is paid .

Buy with one year HOLD..

Scrip Code : 522231      Company : CONART ENGINEERS LTD.-$
Type Un-Audited Un-Audited Audited Un-Audited Un-Audited Audited
Period Ending 30-Sep-10 30-Jun-10 31-Mar-10 31-Dec-09 30-Sep-09 31-Mar-10
No. of Months 3 3 3 3 3 12
Description Amount(Rs. million)
Net Sales / Interest Earned / Operating Income 100.51 98.08 74.96 69.39 48.29 269.29
Other Income 2.17 1.37 1.94 -0.33 3.10 5.05
Expenditure -96.06 -90.49 -69.53 -62.11 -45.57 -245.36
Interest -0.49 -0.58 -0.33 -0.23 -0.23 -1.01
Profit Before Depreciation and Tax 6.13 8.38 7.04 6.72 5.59 27.97
Depreciation -1.19 -1.14 -1.05 -0.82 -0.81 -3.48
Profit before Tax 4.93 7.24 5.99 5.91 4.78 24.49
Tax -1.21 -2.30 -1.71 -1.91 -0.79 -7.83
Net Profit 3.72 4.95 4.28 4.00 3.99 16.65
Equity Capital 30.00 30.00 30.00 30.00 30.00 30.00
Basic And Diluted EPS after Extraordinary item 1.24 1.65 1.43 1.33 1.33 5.55
Basic EPS after Extraordinary items
Nos. of Shares – Public 1,804,715.00 1,807,765.00 1,807,565.00 1,806,715.00 1,804,715.00 1,807,565.00
Percent of Shares-Public 60.16 60.26 60.25 60.22 60.16 60.25
Operating Profit Margin 6.59 9.14 9.83 10.02 12.05 10.76
Net Profit Margin 3.70 5.05 5.71 5.76 8.26 6.18
Cash EPS 1.64 2.03 1.78 1.61 1.60 6.71
Notes Notes Notes Notes Notes Notes
Detailed Detailed Detailed Detailed Detailed Detailed

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This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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Market Trends

Idea Cellular take-over of Spice Telecom Expect:: Revision in open offer price to Rs. 96

Almost all papers carried this news with full details.But only a few pointed out that Rs. 544 crores that BK Modi’s M. Corp Global Communication Pvt Ltd was receiving from Idea as non-compete fee shall make the share buyback price at Rs. 96.63 per share and not Rs 77.3 as reported widely.This is because in the past SEBI has not allowed exclusion of payment of non-compete fee while calculating the open offer price.Latest case in point is Mysore Cement wherein Heidelberg the acquirer was made to revise the open offer to the public including the non-compete fee that it had agreed to pay to the promoters stake.This happened when SEBI objected to two different offers, one for the promoters and other for the ordinary shareholder.

So do not sell your Spice Telecom shares in a hurry as everyone is advising now, and wait for SEBI to take congnizance of this issue and direct Idea Cellular to revise the open offer to Rs.96.6, same that IDEA has agreed to Mr. BK Modi.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

 

 

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Market Trends

Indian Acrylic better days are here again

Indian Acrylics established in 1989 is the largest producer of Dry Spun Acrylic fibre in India with capacity of 40,000 MT .With products like Staple Fibre, Acrylic Tow and Acrylic Tops its the largest exporter of Acrylic Fibre and is rcipient of Arch of Europe award at Frankfurt Festival in 2002. ISO 9001-2000 quality accredited plant is stuated at Distt. Sangur Punjab.

For Indian Acrylics better days are here again as exports are once again picking up, and demand for its products is rising in the domestic market as well. This is happening as cotton prices are going up and acrylic fibre is a good substitute for quality cotton.Results are nothing to write home about as the bottom line continues to be in the RED.However there are good indications from its peers like Pasupati Acrylons and Vardhman Polytex that turnaround is around the corner.With economic capacities and being the largest  Indian Acrylics should be on revival path sooner than expected.

Results of its peers and Indian Acrylics are given below:

 

Scrip Code : 500456    Company Name : Pasupati Acrylon Ltd
Type UnAudited Audited UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Jan 07 01 Oct 06 01 Jul 06 01 Apr 06
Date End 30 Jun 07 31 Mar 07 31 Dec 06 30 Sep 06 30 Jun 06
Description Value(Rs. million)
Gross Sales 1070.9 665.6 870.6 781.5
Excise Duty -75.8 -44.9 -58.9 -47.9
Net Sales 720.6 995.1 620.7 811.7 733.6
Other Income 28.6 28.5 28 9.7 12.4
Total Income 749.2 1023.6 648.7 821.4 746
Expenditure -679 -994.9 -623.6 -766.7 -724.7
Operating Profit 70.2 28.7 25.1 54.7 21.3
Interest -20.2 -20.3 -19.8 -22 -20.2
Gross Profit 50 8.4 5.3 32.7 1.1
Depreciation -26.6 -26.7 -26.6 -26.5 -26.5
Profit before Tax 23.4 -18.3 -21.3 6.2 -25.4
Tax -0.5 -0.6 -0.7 -0.4 -0.4
Profit after Tax 22.9 -18.9 -22 5.8 -25.8
Extraordinary Items 9.5
Net Profit 22.9 -9.4 -22 5.8 -25.8
Equity Capital 711.4 711.4 711.4 711.4 711.4
EPS 0.32 -0.27 -0.31 0.08 -0.36
Nos. of Shares – Non Promoters 30417096 30417096 30417096 30417546 30417546
Percent of Shares – Non Promoters 42.76 42.76 42.76 42.76 42.76
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes
Scrip Code : 514175    Company Name : Vardhman Polytex Ltd
Type UnAudited Audited UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Jan 07 01 Oct 06 01 Jul 06 01 Apr 06
Date End 30 Jun 07 31 Mar 07 31 Dec 06 30 Sep 06 30 Jun 06
Description Value(Rs. million)
Net Sales 859.69 1085.34 950.9 983.5 830.9
Other Income 16.5 33.95 12.9 9.9 5.3
Total Income 876.19 1119.29 963.8 993.4 836.2
Expenditure -748.62 -976.87 -818.1 -841.1 -693.5
Operating Profit 127.57 142.42 145.7 152.3 142.7
Interest -47.86 -45.55 -20 -35.8 -27.6
Gross Profit 79.71 96.87 125.7 116.5 115.1
Depreciation -57.42 -65.61 -63.7 -56.6 -55.9
Profit before Tax 22.29 31.26 62 59.9 59.2
Tax -2.2 -23.83 -14.3 -12.8 -21
Profit after Tax 20.09 7.43 47.7 47.1 38.2
Net Profit 20.09 7.43 47.7 47.1 38.2
Equity Capital 106.57 106.55 106.5 106.5 106.5
EPS 1.89 0.7 4.48 4.42 3.6
Nos. of Shares – Non Promoters 4780938 4780938 4780938 4977109 4982474
Percent of Shares – Non Promoters 45.01 45.01 45.01 46.85 46.9
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes
Scrip Code : 514165    Company Name : Indian Acrylics Ltd
Type UnAudited UnAudited UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Jan 07 01 Oct 06 01 Jul 06 01 Apr 06
Date End 30 Jun 07 31 Mar 07 31 Dec 06 30 Sep 06 30 Jun 06
Description Value(Rs. million)
Net Sales 747.3 1318.5 997 830.4 990.4
Other Income 8.5 81.3 4.9 2.9 5.7
Total Income 755.8 1399.8 1001.9 833.3 996.1
Expenditure -768.7 -1333.3 -961 -750.2 -942.1
Operating Profit -12.9 66.5 40.9 83.1 54
Interest -59.4 -77.4 -47.5 -49.8 -48.8
Gross Profit -72.3 -10.9 -6.6 33.3 5.2
Depreciation -37.5 -38.6 -37.5 -37.5 -37.5
Profit before Tax -109.8 -49.5 -44.1 -4.2 -32.3
Tax 2.2
Profit after Tax -107.6 -49.5 -44.1 -4.2 -32.3
Prior Period Items 1.3 -1.1 0.6
Net Profit -107.6 -48.2 -44.1 -5.3 -31.7
Equity Capital 1253.2 1253.2 1253.2 1253.2 1253.2
Reserves 6.9
Forex earnings/Exports 155.1 216.5 287 125.6 194.1
EPS -0.38
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes

                       ( Results reproduced from BSEINDIA)Buy at CMP of Rs. 3.95 is recommended with 2 years HOLD to see  a price of Rs. 15

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article

 

 

 

Note : 1. The results displayed here are as furnished by

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Market Trends

SENSEX GYRATIONS DURING THE LAST MONTH

Its almost a month that the Stock Market started to fall from its all time high SENSEX of 12612 to a low of 9200 some two weeks back.
Yesterday SENSEX closed at 10401. During the last 2 weeks SENSEX dropped by 1000 points, followed by a lightening 1000 points rally in just 2 trading sessions. Last two weeks have witnessed probably the largest fluctuations in the SENSEX in the history of our Stock Markets. At today’s SENSEX of 10400 market capitalizations of all listed companies is Rs. 660,000 crores or US $ 146 billion. When the SENSEX was 12600, Market cap was US $ 177 billion. That means a drop of 25 % in the SENSEX brought down the market cap by almost US $ 44 billion. Add to this the speculative LOSS/ GAIN in F & O section which could be almost 25 % of the drop in Market cap. , that is US $11 billion.

Neglecting brokerage and STT, which anyway is less than 0.5 % , it turns out that almost US$ 22 billion (25% of the total market cap plus F & O ) have changed hands during the last one month of mind boggling SENSEX GYRATIONS.
So who are the WINNERS and the LOSERS?

First the LOSERS:

1. Most of those Retail Investors who follow the HERD mentality ,that is they BUY on TIPS when everyone is BUYING and Stock Price is hitting the UPPER CIRCUT daily. However when additional demand dies down and retail investor is fully invested and mostly leveraged , share price starts to come down . These brand of Investors never apply STOP LOSS limits and when the market crashes , leveraged positions are squared off at 52 week low prices.

2.Mutual Funds also come under REDEMPTION pressures when market goes down suddenly and they are forced to sell in a falling market thus bringing the prices down further.

And now the WINNERS:

FII’s, FI’s and MUTUAL FUNDS sitting on CASH wait for such BUYING opportunities , when market crashes like it did last month.. FII”s keep on booking profits on regular intervals and that way they are always 30-40% sitting on cash.

Lessons for the retail investor :

1. Do not leverage your position while BUYING into equity. Invest only that amount in equity which is surplus for a year at least.

2. Whenever you feel that there is profit to be booked in equity , SELL and bring the profits to your Bank.

3. Whenever you feel that you had bought the share at a higher price book your loss and debit it to experience.

4. Do not follow TIPS blindly. Try to understand the business of the company before you invest in the shares of that company.

5. Use F & O for only hedging and protecting your capital from value erosion. Do not speculate. Always remember that there is a bigger speculator in the Market than you and he can tempt you to lose money

Investment recommended

CHEMPLAST SANMAR

  • BUY @ Rs. 6 – 7
  • TARGET @ Rs. 12 in one year
  • STOP LOSS RS. 5.5
  • BOOK PROFIT RS. 10-11

Financials of Chemplast Sanmar

  • Equity 48 crore shares of FV Re. 1 ( 75 % owned by Promoters Sanmar Holding ) 11% by Banks and FI’s
  • ONLY 11% by Public
  • Sale : Rs. 700 Crore
  • PAT Rs. 37 crore
  • P/E : 8

Business Profile

  • Refrigerant gases (Rs. 18.40 crores received from MONTREAL PRTOCOL for CDM. It’s like SRF LTD which is commanding P /E of 20.)
  • PVC: Suspension Resin, Paste resin and BSR
  • SILICON WAFERS used for PHOTOVOLTAIC CELLS TO HARNESS SOLAR ENERGY
  • INDUSTRIAL ALCOHOL
  • POWER 17 MW plant based on LNG Caustic Soda and Chlorine 

Demand can come from FII’s as company has been trading in Carbon Credits and is well known globally.

Declaration : I hold a position in this stock , and this is impersonal recommendation. Investors are advised to satisfy themselves before making any investment in Chemplast Sanmar.

Detailed report of the Company with global scenario is available on payment.

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