About The Company
Assam Company is in the business of cultivation, manufacture and sale of tea. It is also engaged in the business of oil and gas exploration.
The stock has been in lime light during the boom period in the capital market and was most fancied stock among the traders.
About The Results
The company has posted results for the year ended 31st Dec 2008, the limited review shows exactly why the stock market had valued this stock in the “speculative” category. Understating its depreciation and employee costs, while overstating its segmental profits by plantation and oil and gas sectors, the company has only got deeper into the red. Its MTM forex loss for the year stood at Rs.45.33 crore, arising on account of outstanding FCCB Loan of US$ 44.70 million.
The seasonal cycle indicates that the fourth quarter is usually its best but this time, it posted a net loss during the fourth quarter. A purely “penny” trading stock and that too in the range of Rs.3-5.
About the Stock
The stock, on the bourses is considered mainly as a low priced speculative stock, allowing the investors to trade in a stock which is quoted even below its face value of Rs.10 per share. Currently quoted at levels of Rs.6, it is unbelievable that during the boom time, it had managed to touch a new high at Rs.40. Either today the 52-week highs have no relevance or today we are seeing a more realistic valuation of the stock
Saturday, April 4, 2009
Gontermann Peipers India Ltd - Multiabber Info
About The Company
Gontermann Peipers India Ltd (GIP) was promoted in technical and financial collaboration with Gontermann-Peipers GmbH, Germany, a front-ranker in the manufacture of Rolls – casting and forging rolls. In 1981 the company was taken over by the Ispat Group. The promoters and their various companies hold 55.13% of the equity.
About The Results
The financial performance of the company had not been too encouraging for the second quarter and as predicted, it got only worse for the third quarter ended 31st Dec 2008. YoY, sales dipped 27%. When the beginning was bad, the ending had to suffer. It ended the quarter with a net loss of Rs.1.08 crore. OPM more than halved from 23% in Q3FY08 to around 7% in Q3FY09.
Apart from the slowdown, what really made matters worse was the minor fire that occurred in the Melting & Foundry Division of the factory on November 28, 2008 and it reopened on 1st Dec 2008. Operations were partially affected and though the company has adequate insurance cover, the loss on account of production was higher.
Source: http://www.sharetradingtips.in/
Gontermann Peipers India Ltd (GIP) was promoted in technical and financial collaboration with Gontermann-Peipers GmbH, Germany, a front-ranker in the manufacture of Rolls – casting and forging rolls. In 1981 the company was taken over by the Ispat Group. The promoters and their various companies hold 55.13% of the equity.
About The Results
The financial performance of the company had not been too encouraging for the second quarter and as predicted, it got only worse for the third quarter ended 31st Dec 2008. YoY, sales dipped 27%. When the beginning was bad, the ending had to suffer. It ended the quarter with a net loss of Rs.1.08 crore. OPM more than halved from 23% in Q3FY08 to around 7% in Q3FY09.
Apart from the slowdown, what really made matters worse was the minor fire that occurred in the Melting & Foundry Division of the factory on November 28, 2008 and it reopened on 1st Dec 2008. Operations were partially affected and though the company has adequate insurance cover, the loss on account of production was higher.
Source: http://www.sharetradingtips.in/
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.
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