Some More Under-estimated Stocks....

Friends,

Today I am recommending some more stocks which can give good returns in days to come….. According to me each stock has a potential to give extraordinary return is hold for medium to long term…..

Right now I am writing on the stock name and current price….

Patel Airtemp… CMP : 90

Niraj Cement Structures… CMP: 58

A K Capital… CMP : 333

Sarla Performance Fibres… CMP : 92

Finolex Industries… CMP: 82

Chennai Petro… CMP 250

RDB Industry… CMP: 62

Everest Kanto… CMP: 133

Murli Industry… CMP:93

JetKing Info …CMP: 168

Deepak Fertilizers… CMP: 135

National Fertilizer… CMP: 168

Genus Power…. CMP: 208

VIP Industries… CMP:318

Hyderabad Industries… CMP: 702

Uflex… CMP: 108

Each Stock has some story embedded in it….. They are all fundamentally strong companies… if we look at the future prospects of these companies then they seems to be undervalued now….

I have more to write on these one by one…. I will be come back with more details very soon

Infrastructure Play….. IDFC… CMP:172

Hi Friends….

There is one stock that I love to hold in my portfolio for long term…. Looking at its plan to expansions that will happen shortly one could resist to buy and hold it….. That is IDFC…. Infrastructure Development and Finance Company… CMP: 172… Yes it’s a Infrastructure Play…..

I am a great believer that infrastructure plays a major role in giving a booster dose to any economy… IDFC is one such company which will play a major role in supporting various infra projects all across the country…. IDFC has already approved financial assistance to more than 375 projects aggregating over 4,00,000 million. It has also broadened its initial focus on power, roads, ports and telecommunications to a framework of energy, telecommunications & Information technology, intergrated transportation, urban infrastructure, health care, food & agri-business infrastructure, Education Infrastructure & Tourism. In its sectors of engagements, IDFC has been awarded lead arranger mandates and key advisory assignments.

Only 9.6% of shares are with public, this is a big positive…. Very Well Known for his visionary business decisions from last two decades Mr Deepak Parekh leads IDFC as Chairman…..

IDFC to bring global partner aboard for AMC.. a news in economictimes….

“Infrastructure Development Finance Corporation (IDFC) plans to rope in a global fund manager as a strategic partner in its asset management arm , potentially looking to bolster the business at a time of turmoil in the mutual fund industry . IDFC's executive director Vikram Limaye told ET the firm was looking at a strategic partnership “to either manage the fund or advise foreign flow of funds into the Indian equity market”. He declined to give details……What I am looking is IDFC Can Divest some stake to an overseas fund manager…..this is my assumption only.. i may be wrong here... lets see how things will unwind in coming days......

IDFC acquired the asset management company in March 2008 from Standard Chartered Bank for $205 million (or Rs 820 crore). The AMC runs 68 mutual fund schemes and manages assets worth Rs 27,100 crore…. IDFC has already started discussions with a leading global investment bank to run the process of roping in the strategic partner…

Q4 results was declared in April 2010 … Net Profit up 88 % to Rs. 278 crores … latest investments like taking huge stake in Orbis Capital, investments in GKEL, Also in Suzlon arm ….. Are big big positive news for this company…..

There were some block deals as well in last few days… ….

There is lot more to write on this stock…. This stock is looking excellent to me if considered for long term….. ………Some other stocks to be looked are SREI Finance, IDBI(A Dark Horse)…. I will write on them very shortly………

Self evaluation and proper care should be taken before investing….

Twin Calls..Fedder Llyod & Emmson International

Keep an eye on Fedder Lloyd, CMP:98…. According to me it is going cheap… full year EPS expected to be 12…. Also profit may surge 200% …. Company is doing very well upfront….

Another one is Emmson International ..CMP: 117… I am tracking this company since long but have not written down even a single time about this gem.... this company is going great.... May become Multibagger silently… one need to watch out this too…. this can give excellent returns if holded for long term....

These two are not punter picks… these are fundamentally strong companies which are doing well… profits going up. good reserves… and strong management ….

I don’t have much much to write on these two companies.. but let my readers find out by themselves…

Later on I will come up with more write-ups on these two….

My Old Calls on Water Business…. Proved Right ...

Friends,

I wrote about water business on 4 July 2008…. http://bsensediamonds.blogspot.com/2008/07/water-opportunities-in-india-i-will.html

It seems that more and more analysts are coming with report on water business now…. I guess they might have visited my blog… lol….

In a report released by Deutsche Bank, they called water treatment business as one of most emerging business in coming years…. In coming years they are estimating the investment in Water treatment business as 400-500 billion Euro… Can you imagine??? How much big amount is this????? Current Investment in Water treatment business is like peanut in front of this 400-500 billion euro investment…. So you can think of yourself how big market is waiting to tap this opportunity…..

I have that full report with me… If some one wants that report send me an email… I will forward that report to you…… but its not possible to paste the entire wordings here in this blog…. I am pasting only summary of that report…. Read very carefully…..

“The world’s water markets are confronted with major challenges. The growth of the global population goes hand in hand with a rise in demand for food, energy and other goods. This means the demand for water will increase accordingly – in the face of a limited supply of this vital resource. Usage conflicts are inevitable, and will become more acute on account of wasteful use and pollution. Scarcity of water is a humanitarian problem and it can curb economic growth. Climate change will amplify many water-related problems and create new ones.

We put the annual investment required in the global water sector at about EUR 400-500 bn. Measured by this yardstick the sector is a picture of underinvestment, especially because water prices in many areas are subsidised and thus too low. As a result, there is a lack of incentives for necessary investments. The prices do not reflect the scarcity of water as a resource; wastage is encouraged. Corruption and the absence of ownership rights compound the problems. To turn the tide, water prices in many countries would have to be boosted. The need to incorporate social considerations in the process greatly reduces the scope for making such increases in practice.

Governments will not be able to raise the funding needed to cope with the upcoming tasks on their own. While there is considerable disquiet about private firms investing in the water sector, the public sector is simply unable to meet all the challenges single-handedly. For this reason, we believe it makes sense for governments and the private sector to cooperate more closely.

Makers of “water technologies” stand to benefit from huge sales potential over the next few decades – despite the risks cited. There is likely to be a particularly sharp increase in the demand for efficient irrigation technologies, seawater desalination and sewage treatment facilities, technical equipment (e.g. pumps, compressors and fittings), filter systems and disinfection procedures.

We have used a scoring model to rank the attractiveness of various countries for investments in the water industry. The Top 20 include many countries from the Middle East that are rich due to their oil deposits, located in very dry regions and relatively stable politically. Two big industrial countries, Germany and the US, and the world’s two most populous nations, India and China, are also among the Top 20 in our ranking. In principle, though, all countries require a substantial amount of investment in the water sector.”

What I think is “There is ample scope for companies which are in water treatment business OR related to that i.e micro irrigation, bottling, water purification related chemical production….. ” I am again reiterating my old calls here

1. Hindustan Dorr Oliver
2. Thermax
3. Patel Engineering
4. Himalaya International
5. Ion Exchange (india)
6. Larsen and Toubro
7. Degremont
8. Aquatech
9. Fontus Water

There is one more I would like to mention “TATA chemicals” is it a great company to have in your PF for long term… great plans ahead…

Take your own call and decisions……

BOC India to Delist.. May be above 330 levels....

Friends,

I have just read about delisting of BOC India..... This company have has received a proposal from Linde Holdings Netherlands B.V. to voluntarily delist the equity shares of the company...... Linde Holdings is the promoter group of this company..... Right now stock is hovering at sub 280 levels......


Now what i think is that ... Linde Holdings has a balance sheet cash of approximately USD 1 billion plus.... And if This group is going to give an open offer below 250 levels then they will get around 50 million USD.. which is a small amount for them..... Linde group is seriouly looking at delisting for BOC India and they want to make good amount on this..... I may be wrong but i am foresee a open offer of Rs 330 ... it may be higher then that... chance of a Lower open offer price is minimal.... so for a short term anybody can earn by looking at this counter......


If someone is holding BOC India then he/she may continue to hold to get good returns in near days to come..... For fresh buying do proper research from your side as well….

Assam Company… CMP: 22 … a Multibagger in Making

Dear Friends,

I have been tracking this company since long…. I have also mentioned this stock on my blog a couple of times….. recent development in this company couldn’t stop me to write here…. This is not a buy call… I am writing because I love this company, the way it is shifting its core business silently is appreciable…. This company can prove to be a true Multibagger in due course of time… I could not give any specific number but returns could be much more then your expectations……

70% of holdings is in strong hands.. Assam oil company holds a major chunk of 38%..... though this is not a undiscovered stock but everyone is waiting for it to move now………….

Company has done FCCB buy back in year 2009 that shows its confidence of its management in their company…

Company is taking the steps to minimize the cost of production of orthodox tea.... main trigger is its business shift towards oil and gas sector.... It is going to get involved in GAS COmpression Project and Oil&gas projects with respect to NELP VII with ONGC and OIL India Ltd as partners..... …. Mind boggling fundamentals + massive & ambitious expansion plans + major positive announcement are going to happen anytime in this year…. It has also acquired new tea gardens where by the profitability will go up sharply.

MCAP of company is 681croses wherein equity is just only 30 crores…..this is a big positive

Also going in developing an SEZ Project of Gujarat Hydrocarbons and Power SEZ ltd in over 1,000 acres in Vilayat, Near Dahej, in the state of Gujarat. Company has already possessed 700 acres of Land Bank. Rest of the land is under acquisition and same will be completed soon.

Oil and gas segment will be a major breakthrough for Assam Company, due to production ramp-up at Amguri fields the bottom line can increase many folds in coming next 3-4 years…. In my views it has just started to run…

Assam company is installing gas re-injection plant to improve oil and gas performance, Installation of the gas re-injection plant would ramp up production to 2,000-2,400 BOE by the end of 2QCY10 with 2/3rd oil share thus optimizing the field produce….

We can expect tea business to grow at a CAGR of 9-10% during next three years. As I told earlier they are trying to build up methods to reduce plantation cost and method of re-plantation, infilling of high quality bushes, strategic acquisition of Tea estates and improve quality through pursuing proven processes. Due to widely predicted global shortage, tea is expected to experience higher realization in CY2010 and ahead,

In my views, Assam Company is a great stock to buy and hold for long term(5-6 years)… there is a lot of value to be unlocked for investors… but here patience will win over hurry and greed….. Though the stock hasn’t ran in last 3-4 years but it doesn’t prove that it will not run in coming years also…. Recent development plans if executed well can fetch golden eggs in days to come…… take your own decision and do proper research before buying……

Small Updates..............

UB Engineering suggested at Rs110 and now at 170… it has touched a high of Rs 204 recently…. Long way to go from here itself also….

Peoples who haven’t bought this stock at 110 levels might be feeling left out now that’s why I always emphasis on taking a token entry in a stock if you like that one… later on that can added gradually….

Kalpena Industries.. suggested at Rs123….it is not moving, but it has come out with excellent results for FY2009-10… it is highly undervalued still…

Take your own decision before buying any stock… own research is a must….

Telecom Towers Business

Friends,

I am pasting the exact published on moneycontrol. Just to understand the readers what is it…..

Reliance Infratel and GTL are in talks for possible deal, sources told CNBC-TV18's Siddharth Zarabi. The deal may be announced shortly. The valuations are higher after the recent spectrum auctions.

When contacted, Reliance Communications and GTL refused to comment.

R-Comm has approved a move to restructure ownership of Reliance Infratel, its tower arm. The company said the move is to create the world’s largest independent tower firm. "The new company will not be owned or controlled by any telecom company. The consideration will be via stock and cash."

Sources said GTL and Reliance Infratel combine would have nearly 100,000 towers. GTL has 32,000 towers and is a widely held company. Reliance Infratel has 54,000 towers and plans to scale it up to 64,000 by year-end.

GTL acquired nearly 17,500 towers from Aircel earlier this year. At that time, the enterprise valuation Aircel’s tower business was around Rs 8,400 crore.

Add the 33,000-34,000 towers of GTL with Reliance Infratel and you are looking at close to 100,000 towers. This is close to what Indus Towers, which is a three-way joint venture between established GSM cellphone companies, has. That’s the kind of size we are looking at.

In terms of the valuation, sources said valuations have actually improved post the GTL-Aircel deal. This is on account of the fact that BWA and has 3G spectrum have been farmed out. All that will need more towers, especially the broadband wireless side.

Earlier today, CNBC-TV reported that Reliance Communications plans to demerge its tower business -- Reliance Infratel. The demerger, via a combination of cash and stock, will facilitate consolidation in the telecom space, enhance Reliance Communications' financial flexibility, and aid fast, low cost network rollout. The independence, neutrality of Reliance Infratel will aid 3G players and broadband wireless access companies.

My Comments

Number of towers GTL has 34000; this figure comes out as 16800 crores of telecom assets. Reliance Infratel is not a listed company but planning to scale its tower numbers to 64000. After a deal with GTL, reliance Infratel will have close to 1 Lakh towers and that is equivalent to number of towers possessed by all GSM operators in country.

So in telecom tower business as well, reliance Infratel wants to stand at par with all its peers. There might be demerger with RCOM later this year….. I am not confirming this news…. This will add value to TOP and BOTTOM line of RCOM…. Post merger GTL will gain heavily….

As MOU between ambani brothers has been dissolved and now they can come in business in any area… recently mukesh has bought infotel PAN India licenses at cost of 12500 crores Rs… Infotel is a company in Wired & wireless broadband… so Mukesh will be needing helping hand from someone who can provide him telecom infra…. Might be Anil is doing what exactly Mukesh wants…. Beneficiery companies will be reliance communication, GTL (a Dark Horse)…. Sujana Towers(my all time favourite)…. Now everyone should dig and find out other companies as well in tower business…. There is lot more to find out after reading this article.. readers can post their comments….

I am Back... Sweet & Sour All memories

Dear Friends,

Its been a long time since i posted any new article and recommendation on my blog.... since january 27 we have seen different colors of world market,,, rise and then dip then again rise..... retail investors are still confused about the direction of market.... but i have told several times that one should take exposure in his favourite stock.... then he/she can keep on adding as the stock moves.... if somebody is not buying a stock and that stock rises then he can felt left out.. thats why i always emphasis on taking entry in stock... whichever you like, dont wait


I will continue to use very very simple language in my blog.... i have written on several sectors and stocks in last two years... just have a look


GOLD recommended at 12000 now at 19500 (62 % whopping return)


Yes Bank, recommened at 60 now at 290 (383% returns)


JK Lakshmi Cement recommended at 90, now at 63(after split of FV10 into FV5) (return of 30%)


Wrote a full article on Water Business on 4-July-2008 (now everybody is recommending stocks which are un water treatment business)


Hind Dorr Oliver, suggested at Rs42, Now at 120 (Many analysts are giving calls to buy hin dorr oliver now)


Apcotex, up from Rs30 to Rs 130..... What else one wants???? (it is still undervalued)

Himalaya International touched a high of Rs47.. recommended at Rs22

Ennore coke,,, comes out a true multibagger.... Still a long way to go from here also

Jyoti Ltd.. comes out as a niche player in electrical technology... eyeing revenue of Rs650cr in nxt 3 years...

Sujana Towers... going good... excellent buy at this point of time also....

Micro Technologies.....


There are many many more which i dont want to write it again and again.....


I was re-iterating again and again to buy fgold from year 2008.... i dont know how many of my readers have bought this precious metal.... i am still bullish on this metal for long term......

RJ, WB.. both are extremely bulllish on india growth story for next 10-20-30 years.. both hae foreseen what is going to happen in india in next three decades... if to be believed equities will surpass any asset class in terms in returns in a big way....