A Penny Stock Idea - Jenson & Nicholson (India) Ltd.

Scrip: - Jenson & Nicholson (India) Ltd.
CMP: - 6.90 Rs.
BSE Code: - 523592
Market Cap: - 26.55 Cr.
Target: - 11 Rs.

Summary: -
This company is involved in manufacturing and selling paints for Industrial and decorative applications. It has 33 centers all over India with manufacturing plants at Naihati , Sikandrabad and Panvel. the companies financial have fallen drastically in the current fiscal year the company has managed a turnover of just 24 cr. The companies EPS and PE both are running in Negative.

Financials are not so good why is it a must buy ?
The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little. Company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.

Key Positive: -
Lots of land near Mumbai in Panvel.
Restructuring taking place.

Key Negative: -
Negative EPS & PE.
Not a dividend paying stock.
Less turnover every year.

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A Penny Stocks to invest for as of now.

According to my knowledge L&T from CMP 2400Rs. Cannot become 4800Rs. in just 2 months. But Penny stocks have done so as many of the stocks have rallied from 2 Rs to 30 Rs in a period of one year.
At present I think a penny stocks are a must buy.
Scrip:- Facor Alloys.
BSC code : - 532656.
CMP:- Rs. 9.35
Tgt:- Rs. 17
Time Frame:- 6-8 Months.
FACOR was founded in 1956 which put the new industrial town of Shreeramnagar on the world map of Ferro Alloys.

Shreeramnagar, situated about 100 kms North of Vishakapatnam fort, on the east coast of India, became the first major producer of bulk Ferro Alloys in the country. It began with a production capacity of 45,000 tonnes per annum that met the requirement of the growing iron and steel industry in India.


Then in 1968, two more furnaces were added for Low Carbon & High Carbon Ferro Chrome products and in 1981 a 16 MVA furnace was put up for production of Ferro Silicon or additional quantities of High Carbon Ferro Chrome.

In the meanwhile, FACOR was keenly developing indigeneous technology, through its research and development department, to utilise low grade chrome ores, from its own mining leases to produce Charge Chrome. Based on its in-house technology adopted and proved to an experts committee of Government of India, in the 7.5 MVA plant at Shreeramnagar, it set up a 100% Export Oriented 50,000 tonnes per annum Charge Chrome Plant in 1983 at DP Nagar, Randia, in Bhadrak District in Orissa. Having established this base FACOR decided to add value to its own output by getting into forward integration. A sophisticated steel plant was set up at Nagpur to produce Carbon Steel, Manganese Steel, Alloy Steel and Stainless Steel.

In order to meet part of their power requirements FACOR has established two power plants of capacity 3x10 MW and 2x10 MW at Shreeramnagar and Randia respectively in 1989-90. These diesel power plants are supplied by MAN B&W Germany and are operating with heavy fuel oil (Furnace Oil or LSHS).

This of course, is not the only high point of achievement of the R&D Department. The department has for long enjoyed the recognition of the Department of Science and Technology, Council of Scientific and Industrial Research, Ministry of Steel for having developed and established processes for:

Beneficiation of low grade chrome ore
* Agglomeration of ore fines and concentrates by way of briquetting and sintering
* Production of intermediate Carbon Ferro Chrome
* Production of Magnesium Ferro Silicon
* Metal Recovery Plant of 20 T/Hr capacity established in 1994 to recover metal entrapped in slag
Facor alloy is a small company from the saraf families. Other group
companies include facor steel and ferro alloy (minning). This is a
high growth potential company with incestor friendly and transparent
mgmt. Mr Saraf is MBA from Havard. The group has big expanision plans
from the profit earned in the ferro metal business. This includes
power, infrastructure and platinum mining. Currently traded at penny
values it may become a future multibagger. It is also a debt free
company.

We will give 2 penny stock ideas every month.
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