Nucleus Software Exports Ltd.
Nucleus Software Exports Ltd. is a Delhi based company with over 20 years experience of Software development for the Banking & Financial Services industry. The company is focused( Read the rest of this entry)
Wednesday, April 1, 2009
Nucleus Software Exports Ltd- Multibagger
Strong order flow inspite of slowdown, low dependence on US Markets and Strong Business Model –Nucleus Software, a debt free company having over Rs 100 crores as Cash & Bank Balance looks attractive at the current market cap of Rs 170 crores.
Nucleus Software Exports Ltd.
Nucleus Software Exports Ltd. is a Delhi based company with over 20 years experience of Software development for the Banking & Financial Services industry. The company is focused( Read the rest of this entry)
Nucleus Software Exports Ltd.
Nucleus Software Exports Ltd. is a Delhi based company with over 20 years experience of Software development for the Banking & Financial Services industry. The company is focused( Read the rest of this entry)
Monday, March 30, 2009
Unity Infraprojects - Multibaggers Info
Unity Infraprojects share at Rs 73.85 qualifies a risk free and safe buy for those who have a 6 months view, in which share has potential to touch three digit mark with virtually no downside risk.
Unity Infraprojects
Unity Infraprojects is a Mumbai based engineering and construction company providing integrated engineering and construction services on a turnkey basis including electrical, fire prevention and control, plumbing and air conditioning which is resulting in a higher margin.The company has been undertaking projects across the country for road projects, PWD. Municipal Corporations, State Govt and local authorities and have orders in hand of close to Rs 2,000 crores which would get completed in next two years.
To execute the projects in time and to maintain its smooth implementation with better margins the contracts are taken of safe and remunerative projects only by the company.( Read the rest of this entry)
Unity Infraprojects
Unity Infraprojects is a Mumbai based engineering and construction company providing integrated engineering and construction services on a turnkey basis including electrical, fire prevention and control, plumbing and air conditioning which is resulting in a higher margin.The company has been undertaking projects across the country for road projects, PWD. Municipal Corporations, State Govt and local authorities and have orders in hand of close to Rs 2,000 crores which would get completed in next two years.
To execute the projects in time and to maintain its smooth implementation with better margins the contracts are taken of safe and remunerative projects only by the company.( Read the rest of this entry)
Wednesday, March 25, 2009
Multibagger - Greaves Cotton
Recent downturn in the stock market has brought down prices of some counters lower than their intrinsic worth. And the time seems to be right for the investors to go on for shopping for companies which are available at prices investors could never think of. Now based on the similar line, our low price scrip for this fortnight is Greaves Cotton (GCL) which is trading at its book value. It is said that in uncertain markets dividends act as a soothing factor. Hence along with consistent dividend payment history and dividend yield of more than 7 per cent GCL seems to be comfortably placed.
The scrip also seems to be placed better on the valuation front where the CMP
72 discounts its trailing 12 months earning by just 3.50x. In addition, market-cap to sales ratio of just 0.28x and EVIEBITDA of l.75x makes the scrip further more lucrative. What adds to the confidence is low debt? equity ratio of just 0.1 3x. We also feel that the expected reduction in the diesel prices, infrastructure stimulus packages announced by government, declining financing cost and reduction in rawmaterial prices make GCI. a good buy at current levels. GCL manufactures diesel engines for the three-wheeler segment (51 per cent of the revenues), Infrastructure equipments (25 per cent), agricultural equipments (11 per cent) and industrial diesel engines for power generation (12 per cent).
There are several reasons why we are recommending GCL. But here one should note that GCL is mostly dependent on the automobile sector where no immediate recovery is expected. Hence the reasons we are providing are of longer term nature and the impact can not be seen in the short term. First is, GCL is mainly into diesel engines and government’s move to cut the diesel prices is expected to be a positive one. In addition company’s dependency on the three- wheeler segment earlier an issue. But now GCL has de-risked itself by entering intothe four- wheeler (Sub One Tonne) segment. We feel it is expected to mitigate some of the negative growth witnessed in the three- wheeler segment. Even the launch of twin cylinder diesel engine plant and Gil series of diesel engines is expected to help the company show better volumes. Company is also expected to be benefited on account of lowering financing cost.
Now, the important factor is that along with increased volumes margins growth is also expected in both the segments as key raw material prices (Ferrous metals) have declined considerably. Another important factor is due to lean fixed cost structure even a modest rise in volumes is expected to help in improvement of margins.
On the financial front, after posting a flat topline growth and decline in bottomline for FY08 (June ending), Q1FYO9 (September 2008) results have not been encouraging. Now, as stated earlier, the impact of all above factors will come in long term and hence the December quarter results may not be encouraging. But one should not judge the company by the performance of just one quarter. GCL has got all the ingredients to perform in long term and hence we recommend the investors to buy the scrip at current levels with a target price of Rs 98 in next one year.
The scrip also seems to be placed better on the valuation front where the CMP
72 discounts its trailing 12 months earning by just 3.50x. In addition, market-cap to sales ratio of just 0.28x and EVIEBITDA of l.75x makes the scrip further more lucrative. What adds to the confidence is low debt? equity ratio of just 0.1 3x. We also feel that the expected reduction in the diesel prices, infrastructure stimulus packages announced by government, declining financing cost and reduction in rawmaterial prices make GCI. a good buy at current levels. GCL manufactures diesel engines for the three-wheeler segment (51 per cent of the revenues), Infrastructure equipments (25 per cent), agricultural equipments (11 per cent) and industrial diesel engines for power generation (12 per cent).
There are several reasons why we are recommending GCL. But here one should note that GCL is mostly dependent on the automobile sector where no immediate recovery is expected. Hence the reasons we are providing are of longer term nature and the impact can not be seen in the short term. First is, GCL is mainly into diesel engines and government’s move to cut the diesel prices is expected to be a positive one. In addition company’s dependency on the three- wheeler segment earlier an issue. But now GCL has de-risked itself by entering intothe four- wheeler (Sub One Tonne) segment. We feel it is expected to mitigate some of the negative growth witnessed in the three- wheeler segment. Even the launch of twin cylinder diesel engine plant and Gil series of diesel engines is expected to help the company show better volumes. Company is also expected to be benefited on account of lowering financing cost.
Now, the important factor is that along with increased volumes margins growth is also expected in both the segments as key raw material prices (Ferrous metals) have declined considerably. Another important factor is due to lean fixed cost structure even a modest rise in volumes is expected to help in improvement of margins.
On the financial front, after posting a flat topline growth and decline in bottomline for FY08 (June ending), Q1FYO9 (September 2008) results have not been encouraging. Now, as stated earlier, the impact of all above factors will come in long term and hence the December quarter results may not be encouraging. But one should not judge the company by the performance of just one quarter. GCL has got all the ingredients to perform in long term and hence we recommend the investors to buy the scrip at current levels with a target price of Rs 98 in next one year.
Multibaggers - Kamanwala Housing Construction Ltd (KHCL)
Kamanwala Housing Construction Ltd (KHCL) was originally incorporated in 1984 as Kamanwala Housing Development Finance Company mainly to cater middle class buyers by constructing low cost housing and financing it at nominal rates.
Kamanwala Housing Construction (KHCL) is a reputed small sized player in the housing construction segment. KHCL has a slew of projects lined up which would enable it to register aggressive growth in its revenues and earnings over the next two-three years.
KHCL has several projects lined up in prime localities of Mumbai due for completion in the next two years. KHCL’s revenue and earnings will see strong growth trajectory due to the execution of these projects and also enable the company to enhance its image in segment and get into contracts of higher value going ahead.
Derisking business by expanding to new geographies
To de-risk the business model further, KHCL has undertaken geographical diversification as well and entered into a joint venture agreement having 20% share with M/s. Prajay Engineers & others for the development of a land admeasuring 35 acres at Patancheru, Hyderabad. It has also purchased additional 2 acre land in Hyderabad for 1.60 cr to construct commercial / residential buildings.
Diversification into commercial space
KHCL has entered into commercial segment as well and has drawn up ambitious expansion plan on a much larger scale. In the last couple of years, it has acquired good land bank in Mumbai for future projects.
Good track record
Having a track record of more than two decades, KHCL has completed the execution of 18 projects in Mumbai, with saleable area totaling more than one million square feet.
Recent developments
To de-risk the business model further, KHCL has undertaken geographical diversification as well and entered into a joint venture agreement having 20% share with M/s. Prajay Engineers & others for the development of a land admeasuring 35 acres at Patancheru, Hyderabad. It has also purchased additional 2 acre land in Hyderabad for 1.60 cr to construct commercial / residential buildings. Moreover KHCL has acquired some land in Mahim under SRA scheme. In a 33% joint venture with Aspen Property Pvt. Ltd., it is developing a property at the famous Filmistan Studio, comprising both residential and commercial units. Meanwhile it is negotiating for few projects at 4 bunglow, Andheri Kurla Road.
Amalgamation of Doongursee Diamond Tools
During Q4Fy08 the company has amalgamated its subsidiary called M/s. Doongursee Diamond Tools Ltd with itself. Notably, this subsidiary is holding one lakh FSI for the Malad project.
Bonus Issue
During Q1FY09, KHCL issued bonus shares in the proportion of one equity share of Rs 10 each for every existing equity share held. The company has also recommended a dividend of 25% for FY08.
Valuation
KHCL is expected to register robust growth in revenues and earnings going forward. It is currently quoting at compelling valuations of 0.8x and 0.7x FY10E and FY11E earnings. The stock has succumbed to the market turmoil and its price has declined significantly in the last 3 months. With a strong project pipeline to drive revenue and earnings growth, the stock has potential to deliver handsome returns to the investors over a period of next one year. Investors can enter into the stock at current level , which is very attractive and should enable investors to earn a healthy return on their investment.
Kamanwala Housing Construction (KHCL) is a reputed small sized player in the housing construction segment. KHCL has a slew of projects lined up which would enable it to register aggressive growth in its revenues and earnings over the next two-three years.
KHCL has several projects lined up in prime localities of Mumbai due for completion in the next two years. KHCL’s revenue and earnings will see strong growth trajectory due to the execution of these projects and also enable the company to enhance its image in segment and get into contracts of higher value going ahead.
Derisking business by expanding to new geographies
To de-risk the business model further, KHCL has undertaken geographical diversification as well and entered into a joint venture agreement having 20% share with M/s. Prajay Engineers & others for the development of a land admeasuring 35 acres at Patancheru, Hyderabad. It has also purchased additional 2 acre land in Hyderabad for 1.60 cr to construct commercial / residential buildings.
Diversification into commercial space
KHCL has entered into commercial segment as well and has drawn up ambitious expansion plan on a much larger scale. In the last couple of years, it has acquired good land bank in Mumbai for future projects.
Good track record
Having a track record of more than two decades, KHCL has completed the execution of 18 projects in Mumbai, with saleable area totaling more than one million square feet.
Recent developments
To de-risk the business model further, KHCL has undertaken geographical diversification as well and entered into a joint venture agreement having 20% share with M/s. Prajay Engineers & others for the development of a land admeasuring 35 acres at Patancheru, Hyderabad. It has also purchased additional 2 acre land in Hyderabad for 1.60 cr to construct commercial / residential buildings. Moreover KHCL has acquired some land in Mahim under SRA scheme. In a 33% joint venture with Aspen Property Pvt. Ltd., it is developing a property at the famous Filmistan Studio, comprising both residential and commercial units. Meanwhile it is negotiating for few projects at 4 bunglow, Andheri Kurla Road.
Amalgamation of Doongursee Diamond Tools
During Q4Fy08 the company has amalgamated its subsidiary called M/s. Doongursee Diamond Tools Ltd with itself. Notably, this subsidiary is holding one lakh FSI for the Malad project.
Bonus Issue
During Q1FY09, KHCL issued bonus shares in the proportion of one equity share of Rs 10 each for every existing equity share held. The company has also recommended a dividend of 25% for FY08.
Valuation
KHCL is expected to register robust growth in revenues and earnings going forward. It is currently quoting at compelling valuations of 0.8x and 0.7x FY10E and FY11E earnings. The stock has succumbed to the market turmoil and its price has declined significantly in the last 3 months. With a strong project pipeline to drive revenue and earnings growth, the stock has potential to deliver handsome returns to the investors over a period of next one year. Investors can enter into the stock at current level , which is very attractive and should enable investors to earn a healthy return on their investment.
Sunday, March 15, 2009
South Indian Bank - Multibagger
South Indian Bank has its presence in 23 states with 500 branches and 26 extension counters and 225 ATM Networks. The bank, during FY 08 had opened 25 new branches, upgraded 8-extension counter, and opened 50 ATMs. The bank holds licence to open 15 new branches and plans to open 30 branches in the year FY 09.
The bank, as at 31-03-08, had total deposits of Rs 15,156 crores while advances were at Rs 10,754 crores with total business of the bank being placed at Rs 25,910 crores. Capital Adequacy ratio of the bank as at 31-03-08 was at 13.80% while net NPAs were at 0.33%. Gross NPAs of the bank, as at 31-03-08 were at Rs 188.48 crores against Rs 321.21 crores as at 31-03-7. During FY 08, the bank had recovered NPAs of Rs 172.31 crores against the target of Rs 130 crores.
During FY 08, the total income of the bank was placed at Rs 1,434 crores with profit after tax of Rs 151.62 crores, resulting in an EPS of Rs 18.77 while book-value per share as at 31-03-08 was placed at Rs 128.43.
During FY 08, the bank had issued 2 crores equity shares at Rs 163 per share (premium of Rs 153 per share) to Qualified Institutional Investors. Due to this issue, paid-up equity of the bank increased to Rs 90.41 crores while net worth improved of Rs 1,161 crores.
For quarter ending June 08, the bank had a total income of Rs 406 crores with profit after tax of Rs 38.62 crores, resulting in an EPS of Rs 4.27 for the quarter. FY09 is likely to have an income in excess of Rs 1,800 crore with estimated PAT of Rs 175 crores, which should translate into an EPS of Rs 19.50. Expected book-value on 31-03-09 of the bank would be over Rs 140.
The bank had proposed to issue bonus in the ratio of 1 share for every 4 shares held and the record date for the same has been fixed at 17-10-08 and share would go ex-bonus from 16-10-08. The present market price of the stock at Rs 106 is cum-bonus.
The bank has total investments of Rs 4,572 crores as at 31-03-08, of which government securities are of Rs 3,590 crores while Rs 982 crores are in Debentures, shares and other investments.
The bank has strong presence in NRIs and as 31-03-08, the bank had total NRI Deposit of Rs 3,085 crores being 20.35% of the total deposit of the bank.
Even Bank is holding 4.99% stake of Dhanlakshmi Bank, which implies an intention to acquire the bank, if feasible, at an appropriate time.
Share now ruling at Rs 98.60, had its 52 week high low of Rs 285 and Rs 87 and is now ruling at a PE of less than 6 on historic and expected earnings. Even it is available at cum-bonus and price to book-value of 0.80 : 1. All this shows great scope of appreciation in the investments in the time to come. The present market capitalization of the bank is close to Rs 950 crores, translating per branch valuation of less than Rs 2 crores.
The share qualifies a good buy at Rs 45.00, which has potential to rise to Rs 140 in the next 12 months with minimum downside.
The bank, as at 31-03-08, had total deposits of Rs 15,156 crores while advances were at Rs 10,754 crores with total business of the bank being placed at Rs 25,910 crores. Capital Adequacy ratio of the bank as at 31-03-08 was at 13.80% while net NPAs were at 0.33%. Gross NPAs of the bank, as at 31-03-08 were at Rs 188.48 crores against Rs 321.21 crores as at 31-03-7. During FY 08, the bank had recovered NPAs of Rs 172.31 crores against the target of Rs 130 crores.
Kirloskar Electric Company - Multibagger
During FY 08, the total income of the bank was placed at Rs 1,434 crores with profit after tax of Rs 151.62 crores, resulting in an EPS of Rs 18.77 while book-value per share as at 31-03-08 was placed at Rs 128.43.
During FY 08, the bank had issued 2 crores equity shares at Rs 163 per share (premium of Rs 153 per share) to Qualified Institutional Investors. Due to this issue, paid-up equity of the bank increased to Rs 90.41 crores while net worth improved of Rs 1,161 crores.
For quarter ending June 08, the bank had a total income of Rs 406 crores with profit after tax of Rs 38.62 crores, resulting in an EPS of Rs 4.27 for the quarter. FY09 is likely to have an income in excess of Rs 1,800 crore with estimated PAT of Rs 175 crores, which should translate into an EPS of Rs 19.50. Expected book-value on 31-03-09 of the bank would be over Rs 140.
KSB Pumps- Multibagger
The bank had proposed to issue bonus in the ratio of 1 share for every 4 shares held and the record date for the same has been fixed at 17-10-08 and share would go ex-bonus from 16-10-08. The present market price of the stock at Rs 106 is cum-bonus.
The bank has total investments of Rs 4,572 crores as at 31-03-08, of which government securities are of Rs 3,590 crores while Rs 982 crores are in Debentures, shares and other investments.
The bank has strong presence in NRIs and as 31-03-08, the bank had total NRI Deposit of Rs 3,085 crores being 20.35% of the total deposit of the bank.
Buy McNally Bharat Engineering Company
The present equity of the bank is at Rs 90.41 crores with face-value of Rs 10 each. FIIs are holding 43% while 12% are held by banks, insurance companies, FIs, and MFS and 45% is held by the general public. Prominent shareholders of the bank are Federal Bank (4.94%) IFC, Washington (4.80%) Goldman Sachs (3.93%) LIC (1.77%) Union Bank (1.06%) and SBI 1.02%.Even Bank is holding 4.99% stake of Dhanlakshmi Bank, which implies an intention to acquire the bank, if feasible, at an appropriate time.
Share now ruling at Rs 98.60, had its 52 week high low of Rs 285 and Rs 87 and is now ruling at a PE of less than 6 on historic and expected earnings. Even it is available at cum-bonus and price to book-value of 0.80 : 1. All this shows great scope of appreciation in the investments in the time to come. The present market capitalization of the bank is close to Rs 950 crores, translating per branch valuation of less than Rs 2 crores.
The share qualifies a good buy at Rs 45.00, which has potential to rise to Rs 140 in the next 12 months with minimum downside.
Stocks To Watch of The Week - 16 March 09
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