Sunday, December 16, 2012

Ruchira Papers Ltd. - a worthy bet !


Ruchira Papers Ltd.


Incorporation & Promotion

Ruchira Papers Limited was incorporated on December 8, 1980 as a Public Limited Company under the Companies Act,1956. The Company came into production in 1981.

It has a diversified portfolio of paper products. Click here to visit the portfolio.

The company is a good bet a current price of Rs. 13.10. It is trading at an attractive PE of 2.5 and 0.41 times its BV.

The credit rating has already been revised to B+ from D, which shows the improvement in Debt paying capacity, though there is still an element of risk, but it is slowly reducing its debt burden.

The recent quarter has shown an increase of 56% in its earnings.

Combining all this, the investors can look forward for an handsome profit if the company continues with the current earning trends.

Investors with risk appetite can look for buying it a small quantity now and adding it up, when market goes down.

Regards,

Value Stock Picker

Disclaimer: I don't have any position in this scrip.

Friday, December 14, 2012

Care reaffirms rating of Maithan Alloys

Care reaffirms rating of Maithan Alloys


Credit rating agency, CARE has reaffirmed A+ rating to Maithan Alloys' Long-term Bank Facilities worth Rs 50 crore which was reduced from Rs.60 crore. The rating agency has also reaffirmed A1 rating to the company's Short-term Bank Facilities worth Rs 196 crore.
The company has received the said rating on the back of its satisfactory track record, experienced promoters, established position in the domestic ferro alloys industry, and satisfactory financial performance with comfortable gearing ratio.

To go to the original recommendation click here.

Saturday, December 8, 2012

Value stock - Allahabad Bank

Buy Allahabad Bank for a target of Rs. 200





The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on April 24, 1865 by a group of Europeans at Allahabad. At that juncture Organized Industry, Trade and Banking started taking shape in India. Thus, the History of the Bank spread over three Centuries - Nineteenth, Twentieth and Twenty-First. 

Allahabad Bank is currently trading at a price of 160. At this level, this counter is trading at a PE of 4.6 and less than  its BV of 210. It has got the 52 week high of 211. Given the current strength of the market and a buzz in the market that Nifty can touch 6100 level in the current month, it is only a matter of days, when you will be seeing this counter touching Rs. 200.

Allahabad Bank has inked a pact with Piaggio Vehicles to increase its commercial vehicle finance portfolio. The bank has signed a memorandum of understanding with Piaggio for the same on December 3, 2012.This will start showing its impact in coming quarter.

Also, mostly banks gives good numbers in third quarter because of good business. 

The market momentum is positive, which is further going to help it. It is only a matter of few weeks, when this bank start trading around Rs. 200.

Investors can take a position for 25% gains from current level.

Regards,

Value Stock Picker

Disclaimer: I have vested interest in the stock.

  

Friday, December 7, 2012

Second Largest cement sheet manufacturer - Visaka Industries

Visaka Industries - To be or not to be !




About Visaka Indiustries:

With focus on growth plan, the company has  now grown to the position of second largest cement sheet manufacturer in India. Visaka has installed 7 factories spread across the country, producing about 650,000 tons of corrugated cement sheets per year.
The spinning plant, with 28 MURATA Twinjet spinning machines, is the world's largest installation of its kind, producing about 9,000 tons of yarns per annum.
The non-asbestos fiber board & panel division was established in the year 2009 to cater to the needs of modern construction designs. This division has a capacity of producing 30,000 tons of sheets per year.
Visaka's turnover has touched Rs.600 crores during the financial year 2008-09.


Pros: Visaka Industries is trading at a PE of 3.61 and 0.7 times its BV. Growing company with potential. Very little long-term debt on Balance sheet.

Cons: The company has uneven income income in different quarters. The short term debt is of concern but not alarming.

The investors with risk-appetite can invest few bucks in this company. Expect the dice to roll in your favor and there is a high probability, it will. 

Or alternatively, put this one on your radar for purchasing at a price of 100-110. If you decide to purchase now (Price-127), keep a stop loss at 115.

Regards,

Value Stock Picker

Disclaimer - I have vested interest in this stock.

Store one allots 44 lac warrants to Promoter Company


News on Moneycontrol.com about 'Store One' 

Store One Retail India Ltd has informed BSE that pursuant to and in terms of shareholders' authorisation through Postal Ballot, result whereof was declared on November 22, 2012, the Board of Directors of the Company at its meeting held December 6, 2012, has issued and allotted an aggregate of 44,00,000 (forty four lac) warrants of the Company, convertible into equivalent number of equity shares of face value Rs. 10 each, to Indiabulls Wholesale Services Limited, the promoter of the Company.Source : BSE

This is both positive and negative apects for the public investors. Positive in the sense that the promoters are confident about the future of the stock. Negative that it brings about dilution of EPS. We need to see the Q3 earnings before deciding on future course of action.

Regards,

Value Stock Picker

WELSPUN SYNTEX LTD. - News of Open Offer

Prime Securities Ltd ("Manager to the Open Offer") has submitted to BSE a Copy of Open Offer for acquisition of upto 1,02,02,288 (One Crore Two Lacs Two Thousand Two Hundred Eighty Eight Only) Equity Shares of Welspun Syntex Ltd ("Target Company") from the Public Equity Shareholders of the Target Company representing 26% of the Post Conversion Equity Share Capital of the Target Company as of 10th Working day fromn the Closure of the tendering period under this Offer by Krishiraj Trading Ltd ("Acquirer") along with Welspun Mercantile Ltd ("Person Acting in Concert" or "PAC"), in accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ("SEBI (SAST) Regulations").


The Offer Price of Rs. 13.00/- (Rupees Thirteen Only) per fully paid up Equity Share.


Let's watch the movement of this stock. Ideally, this should impact the stock positively.


Regards,Value Stock Picker

Wednesday, December 5, 2012

Store 'Store One Retail India Limited' for future

Store One Retail India Limited - Higher and higher and higher



Wow, what a run up in one year. From Rs. 8.65 to 54 Rs. this has been a dream stock of every investor. But, does it still has steam left in it. I will say certainly. Looking at the stupendous growth of the company. It can definitely move up higher from here. 

Management has further increase d the stake to 68% from 63% shows their personal commitment towards the company.

Trading at a PE multiple of just about 3 and looking at the growth this company is showing, an investor of moderate risk-taking capacity can pick up some stake in the company. 

Again the government's FDI stand in Retail Sector is going to help this stock further.

Visit the website here.

Link to financials here.

Wish you happy and safe investing !!

Regards,

Value Stock Picker

Let Shree Ganesha bring wealth to you

Shree Ganesh Jewellery House Ltd.  -  Buy




Shree Ganesh Jewellery House Ltd. is a  10,000 Cr. (US $ 2 billion approx) turnover company and is a Govt. of India recognized '4 Star Export House'. The company is one of the leading manufacturers and exporters of handcrafted gold jewellery from India and the shares of the company are listed in Bombay Stock Exchange and National Stock Exchange of India.

Shree Ganesh Jewellery House Ltd. is a jewel that still needs to catch the attention of investors. Despite having good financials, it is still far down from its true value. It has got a good potential to give you great returns in a period of one year, when investors start investing in the stock.

Currently it is trading at a PE of 2.2 which is very very attractive in currently expensive market. Also it is trading at a price of 0.55 times its BV, which is again excellent at this level of market.

To see its expansion plan read this article here.

To visit the website click Here

To see its financials click here

The debt position is good and at is level company is a good bet.

Today's price: 120.50. Target Rs. 150.

Happy Investing !!

Regards,

Value picker

Disclaimer: I have an exposure at current price.



Monday, December 3, 2012

Prakash Industries can scale up to great heights

Prakash Industries Ltd.





Prakash Industries Ltd was started in the year 1980. With focused vision in the core competence areas of Mining, Steel and Power, Prakash Industries Ltd. is rapidly carving its niche in the Indian steel industry and has emerged as one of the key producers of value added steel products in the country. For highest value addition, company has always emphasized on forward & backward integration.

To visit company's website, visit here.

Financials can be obtained from here

Prakash Industries is all set to go up. It is fundamentally a strong stock, currently trading at a PE of 2.9 and 0.36 times its BV.

It has got expansion plans in the field of power generation which will be adding to its revenues.

ZEE Business is recommending it for a possible target of 72.

You can buy it for possibly good returns.

Price as of now: 52.10, Target 1: 72, Target 2: 118 and Target 3: 145

Regards,

Value Stock Picker.

Disclaimer: I have some personal holding in the stock

Tuesday, November 27, 2012

VALUE PICK - MAITHAN ALLOYS LTD.



MAITHAN ALLOYS LTD.






About Company:

Maithan Alloys Ltd is among India’s leading manufacturers and exporters of niche value-added manganese alloys. The company has emerged as a reputed provider of customised manganese alloys to large and growing steel companies the world over.
Maithan Alloys operates in the niche value-added manganese alloy segment.
The consolidated Group production capacity is over 100 MVA with an additional 72 MVA likely to be commissioned over the foreseeable future (36 MVA has already commissioned and rest 36 MVA will be completed by June 2012)


Trading at Rs. 117, it is having a PE Ratio of 3.14 and 0.75 its BV.

With the current performance it can give you good returns in long run.

Disclaimer: I am invested in this stock.

Regards,

Value Stock picker

Can 'Creative Eye Ltd' become a multibagger?



Creative Eye Ltd. 





Creative Eye Ltd.is involved in production of TV serials and Commercials. It has been reporting losses for three years before reporting profit in year ended March 2012. 

The fundamentals favoring the purchase of this stocks are:

Price/Book Value is currently about 0.33.

PE of trailing 4 quarters is 2.34, which is very good.

Long-term debt/equity is 0.15, which is low

Current and quick ratio standing at 6.00 and 4.07, which shows that debt is not a concern.

At current price its Market Cap is nearly equal to its cash-in-hand. Therefore, its business portion is nearly free.Promoter's holding is constant and stands at above 50%.

Looking at the above fundamentals, keep an eye on 'Creative Eye Ltd.' for possible future gains. If it continues with the current performance, it can double in future.

Price Today: 5.60

Regards,
Value Stock Picker

Welspun - All Set to Go Up




Welspun Syntex Limited was established in 1983 and is the flagship company under the Welspun umbrella. Since its inception WSL. has grown manifold and today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India.

It has a very comprehensive portfolio of yarns. 

As of now, it is trading at a PE of  2.1 of the trailing 4 quarters and a book value of 0.43 of the book value. It went up as high as 16 Rs in the current month. Currently it is trading at around 13 Rs.

Long-term debt is a bit concern but if it continues with the current performance it can get it cleared from the Balance Sheet. But current, quick ratio and Interest coverage are very good and should not have any problem in near future. 

It has shown excellent improvement in top line and bottom line for Q2 and if it is able to continue the performance on the current line, it has a potential to double from current price. 

You can put it on your radar for investment for long term.

Current price :  13.05 Rs. 

Disclaimer: I am personally invested in this scrip.

Regards,

Value stock Picker

Fundamentally attractive - Elnet Technologies Ltd.

People who are looking for fundamentally sound stock, can keep on their radar 'Elnet Technologies Ltd'.

This one is currently trading on 1/2 the book value with a PE of 3.29 of trailing 4 quarters.

Long term debt position is good , though the current ratio is below 1.

But given the slow and steady progress, this company can turn profitable to the investors.

Current price: 40.60. Should be able to generate 50% + returns in a span of one year.

Regards,

Value Stock Picker