Tecpro Systems

Tecpro Systems is an EPC player in India, providing turnkey solutions in Bulk Material Handling Systems, Ash Handling Systems, Balance of Thermal Power Plant , Captive Power Plants and Pollution Control systems.

Company's order book stands at approximately Rs3300 crores.

Its competitors being McNally Bharat Engg (whose order book is around Rs5000 crores). But considering Tecpro's entry in BoP and its future intention to manufacture and commission cooling towers as well as water treatment plants in-house besides supply and commissioning of coal washeries. With this, the company may be well-placed to consolidate its operations in the power infrastructure sector.

So, one can start investing in this company from the current price of Rs380 till Rs320. Hold for 6-8 months for a decent target and then exit.

For more information check out the following
Tecpro Systems: IPO Analysis

One can consider the combination of the following stocks for a basket of related stocks:

1. Tecpro Systems
2. VA Tech Wabag
3. International Combustion Systems
4. GEI Industrial Systems

Bajaj Corporation - an FMCG company

Bajaj Corporation, an FMCG company, dominant in hair care products. Recently came up with an IPO to utilize the raised money for the promotion of its future products. The company is one of the oldest business houses of the country. It has widely respected hair oil products with its loyal customer base.

Considering these reasons coupled with the opportunity market providing us to buy its shares at Rs580. Just grab this company shares in the range of Rs450-Rs550 with the conservative target of Rs700 in next 15 months. The company is available at the competitive price compared to its peers Dabur, Marico, Godrej, Emami.

For more information check the link.

Intec Capital - an NBFC

Intec Capital which is a financial service provider in the area of Industrial Equipment and Working Capital Term loan catering mainly to Small and Medium Enterprises (SME’s). The segment to which the company caters is the most favored one because all the corporations and financial institutions are concentrated around SME's.

The company is having consisted QoQ revenues sales increase with consistent profit. This is a sure shot multibagger which I think of. One can consider adding this stock to the portfolio. For more information about the company you can have it at Intec Capital.
 

Gold - 5 year returns 400% - Gold to follow the secular bull market, what?

What a stupendous returns Gold has given in this 5 year period. Its really good, isn't? There is so much happening at the gold front... George Soros, billionaire financier says Gold is the ultimate bubble. Check the 5 year chart at Goldprice.

Usually during bubble burst, gold prices start rising. But this time both the market (Sensex/Nifty) and gold prices both moving towards northward, let's see which is going to burst! Don't know whether my understanding is right.

If you check the USAGOLD you will find the discussion about gold to follow the secular bull market of 1982 to 2000 (a 18 year period) to see the gold at $4600 per ounce by 2019. (current price $1300 per ounce). Check out the Chart #6 and Chart #8 of its October newsletter.


Find the following useful articles related to gold:
1. Understanding Gold by Paul van Eeden

Update-Low PE and high EPS scripts

This is the update of the post posted on June 3. Of the following stocks that are mentioned in that posting, Oil India, Tide Water Oil, AK Capital, Micro Tech performed very well.

1. Tuplip Telecom :        Unchanged
2. Oil India :                   Moved from Rs1270 to Rs1528  : 20% up
3. Tide Water Oil :         Moved from Rs5300 to Rs9642  : 80% up
4. Micro Technologies:  Moved from Rs190 to Rs213      : 12% up
5. AK Capital :               Moved from Rs330 to Rs650      : 96% up
6. Temptation Foods :   Moved from Rs30 to Rs37          : 20% up

-- one should have discipline and luck to see success in stock market!

DQ Entertainment

keep an eye on DQ Entertainment, any time rise can be expected!

The company is into entertainment sector especially animation serials and feature films.

Recently issued IPO at Rs80 got listed on BSE. Trying to get list on NSE as well (info from moneycontrol messageboard). This information seems to be correct because of the following reasons (NSE listing eligibility):
1. Paid-up equity of Rs1.6 crores
2. Market capitalization of Rs814 crores
3. Listed on Alternative Investment Market (AIM), London on Dec 2007.
4. Going to complete 3 years annual reports by this year 2010.

To know more about the company and its performance read at Dead Presidents-blog

Good points
1. Buzzing sector to grow
2. FII and Mutual Funds increased their holding from last quarter to this quarter

Other Links
1. Indian gaming industry to touch Rs 3,100-crore by 2014
2. China chases Japan on animation
3. How Indian animation a global success
4. Unreal Solutions, The Hindu
5. Media and Entertainment, India in Business, FICCI

Diamonds and Jewellery

Check the analysis of this sector done by Kumaran Seenivasan

I'm also of the same opinion about Shree Ganesh Jewellery.

References

1. Gems and Jewellery, Ministry of External Affairs

Granite - 125/450 granite stone varieties established from India

There are 450 granite varieties available in the world market of which 125 varieties are from India. India accounts for 20% of the world granite resources mostly concentrated in Karnataka, Tamilnadu, Andhra Pradesh. There are so many organised companies established in this sector catering to the world by its 100% export units.

Due to the slowdown in the construction segment all around the world, the companies have been beaten down. With the recent build-up of confidence we could hope for its exports improvement.

Following list of companies doing well according to the numbers:

Name	Face Value	Current Price	Book Value	PE	EPS	Market Cap(crs)	Annual Sales (crs)	Debt/Reserve
Associated Stone Industries (Kotah) Ltd	5	40	105	7.2	5.57	53.16	159.93	0.42
Aro Granites	10	52.25	95	4.82	10.84	53.3	131.13	0.54
Divyashakti Granites	10	33	38.28	4.44	7.45	34	30	0
Asian Granito	10	60	99	6.43	9.36	126	387	0.64
Glittek Granites	5	2.46	5.97	16	0.15	6.23	17	6.36

So, what is the reason for these companies shares not increasing on the bourses. We can find the following reasons

1. Ad-hoc licensing policies of the governments
2. Fragmentation of leases
3. Political interferences
4. Lack of availability of advanced technology in mining and usage of modern mining machinery: Quarring technology and Dimensional block production
5. Poor quality of roads
6. Losing the market to China, Brazil

A question comes, so which stock to buy for long term in this sector?
You can decide from the list provided above (the list may contain limited number of companies, there may many companies listed). But I like these companies. As one should not have any kind of influence on other's stock purchases, right! so you decide yourself.

References

1. Stones of India
2. Indian Granite Sector Progressing Towards Supreme Heights
3. CAPEXIL
4. Wrong policies stall progress

Gross Domestic Product - GDP

China goes past Japan taking second position in the GDP ranking. China's annual GDP was $4.8 trillion 2009 ranked at 3. Surely, by the year 2010 end China's ranking may become 2.

It is expected (IMF) China would grow at 10.3%.

If we can see our country (India) position which stands at 12. But we need not worry India's GDP to become quadruple in next 10 years. We should keep invested in India's growth.

References:
1. China world's 2nd largest economy; goes past Japan
2. India GDP set to quadruple in next decade

Raj Packaging...

Guys you do not believe the price at which Raj Packaging is quoting now... stands at Rs32. Really if one wants to reap the benefit in the stock market, one should have, lots of... patience.
Once I had bought this stock at Rs13 and sold immediately when it reached Rs16. I was knowing it would reach some new levels, but FEAR, right, you have read it rightly the fear makes the man to do things that he should not want to do sometime!. Anyhow money earned is money saved... Right! So, the moral of the story is stick to the company that is having good fundamentals or having the potential to see new high levels.

Power of the Purse: Investing in Rising Female Consumption

it has been over two years dabbling in stock market. heard of many index names viz., Dow, FTSE, BSE, NSE... the other day I was reading an article got to know a new index Women 30 by Goldman Sachs. got surprised to know Women 30 index outperformed over 3 times the global returns.

Goldman Sachs 'Women 30' Constituent Companies - Building Gender Balanced Business

Similar to what been designed by Goldman for Global market, I want to see Indian specific case.

Important point is to invest in companies which markets the products for female consumption. With the rise in female affluence they will buy products that interest them, right?

 

Corporate Information-to know more

There are so many companies that do and upload research reports of the companies. One of them is Corporate Information. Today I found a link that lists out the research links related to India which could be helpful for one's research.

SEL Manufacturing

SEL, a textile related company whose financial number seems to be good. It seems like a fully export-oriented company. Considering its good financial number till now and its expansion plans, one can buy now at Rs50 for a target of Rs70. But bad thing is debt, but I think that has already been it affect on the price of the stock.

Find more analysis of this stock at 

1. Indian Stock News
2. NSE Guide 

Recently it announced its first phase of the project in state MP costing Rs1920crores been completed. Second phase of the project is in progress.

One should do his own decision whether to buy this share.

Good Luck Steel Tube - Update

Target Achieved.

Still, one can go long on this script to break its 52wk high. But one should book partial profit at this price.

Good Luck Steel Tube

It seems like this is one of the undervalued stock, having
PE of 3.08,
EPS of 8,
FV 2,
Sales Rs488crs,
Market Cap of Rs48crs
Current price Rs 25.5

The worrying factor can be is its debt, where annually interest paid is approximately half of the profit.

But considering its rock-solid sales, and consistent profit one can go for medium-term for a target of Rs32.

-Grow as India Grows

Low PE and high EPS scripts

I have been observing some of the stocks, which I feel having good growth prospects.

1. Tuplip Telecom PE: 9 EPS: 95
2. Oil India PE: 11 EPS: 101
3. Tide Water Oil PE: 7.94 EPS: 664
4. Micro Technologies PE: 5.58, EPS: 49
5. AK Capital PE 4.2, EPS: 79
6. Temptation Foods PE 1.24, EPS: 24

Each script mentioned above is leader in its respective domain. When you take any of these stocks, analyze yourself and buy and hold for 2 years. Reap the benefits.

Grow and India grows!

Contruction Company: BL Kashyap

BL Kashyap & Sons, a construction company which was consolidated between 300 and 350 could be bought now if it crosses 350 for a good target.

Fundamentally a good company, if we search for this company we could find many useful links.

Chemical manufacturers having good potential

Going through number of chemical manufacturing companies, I found two interesting companies having good growth potential.

1. Kanoria Chemicals and Industries
2. Aditya Birla Chemicals

Kanoria Chemicals and Industries

This company is into Alco Chemicals, Chloro Chemicals, Water Treatment Chemicals, Industrial Gases. Kanoria is a consistent dividend paying company with Div Yield of 4.5%. This is going to set up a Greenfield fully integrated Alco Chemicals Complex in stages at Jawaharlal Nehru Pharma City, Visakhapatnam for which it has already acquired land admeasuring 29.7 acres. In First Stage it is setting up Formaldehyde Plant with an installed capacity of 105,000 tpa, Hexamine Plant with an installed capacity of 5,600 tpa with an estimated Capital Outlay of Rs. 72 crs. This plant is going to get commissioned in Q2FY’2010.

Other important parameters:

Market Cap  187.75 crs
Yearly Sales ~430 crs
EPS (TTM)   4.97
P/E      6.71
P/C      2.76
Book Value     46.20
Div Yield(%)     4.50
Face Value     5.00  
Industry P/E     10.5
Debts     347 crs 

Aditya Birla Chemicals

A reputed company belonging to Birla's. Aditya Birla Chemicals, the Rs 2560 crore chemicals business of the Aditya Birla Group, is based in India, Thailand and China. The range of products includes chlor-alkali, epoxy, fluorine chemicals, peroxides, phosphates, sulphites and phosphoric acid. The stock is available at very less PE of 3.41. Apart from this check the following parameters.

Market Cap      206.85 crs
Yearly Sales 240 crs
EPS (TTM)      25.97
P/E      3.41
P/C      2.56
Book Value 128.58
Div Yield(%)     1.70
Industry P/E     10.53
Debts     46.17 crs

You can decide what to buy considering these parameters.

Disclosure:  I do not hold any of the stocks.

Avon Corporation: One of the good penny stocks

Avon corporation, which is into trading and manufacturing of weighing systems, a penny stock investing considering its growth story and the market for its products in India in future.
See the posting to know more http://nseguide.com/penny-stocks/avon-corporation-ltd.

Being a penny stock, one can be wary of investing in this script. But seeing its investments and the way it is moving forward, one can invest small amount of money in this stock.

Some of the reasons to invest

1. It is into a specialized business: trading and manufacturing of weighing systems
2. Book value of approximately Rs11
3. Planning to setup a new manufacturing unit with the investment of Rs125crores http://www.business-standard.com/india/news/avon-corporation-plans-investments125-cr/392503/
4. The stock is trading at around Rs7 which is of face value Rs10.

What is all about this growth scripts blog?

These days I have been thinking of posting my stock findings. Though they may perform or not, I thought of at least writing here for future reference.

Growth Scripts: The companies having long term growth story pending, here I'm calling them as growth scripts.

With some leeway I can slightly modify to include some other type of companies that may not fall in this group of "growth scripts".