Five Multibagger stocks which cannot be missed

If you go to see the current stock market rally the stocks which were down over 60 to 70% were the maximum gainers in the last 2-3 weeks.
We didnt by them we have missed the opportunity. But one thing to remember is "Every thing which has gone up has to come down again".
Few stocks which have further upside after they bottom out are :

• HDIL : One construction giant.
• HCC : Another construction giant.
• DLF : Our Construction biggy.
• Marksans Pharma: A penny stock to rock.
• Apollo Tyres.

I will give a detailed analysis on all the above stocks. Keep a track.

Happy Investing!

Next post: Zero Debt companies on BSE and NSE.

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Value Investing - Jaiprakash Associates.

Multibagger Tip - Jaiprakash Associates.
BSE Code: - 532532
CMP: - 65.85
Target: - 85 (3 - 4 months) Long term target - 140 (12 - 18 months)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December 08 and now is down almost 85%.
Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering in this sector which this script is the first to cherish.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.

Happy Investing.

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9 PSU banks to gain from equity infusion.

Finance minister P Chidambaram announced on Wednesday that the government will infuse additional capital in those public sector banks, which have capital adequacy ratio (CAR) of less than 12 per cent to take the adequacy ratio above that level. The move is a pre-emptive measure to stave off any adverse impact of the global financial crisis on the Indian banking system and is likely to calm the nerves of both customers and investors.

According to a Financial Chronicle analysis, the move for capital infusion would help at least nine public sector banks that have a capital adequacy ratio of less than 12 per cent. They include Allahabad Bank, Bank of Maharashtra, Central Bank, Dena Bank, Indian Overseas Bank, Punjab and Sind Bank, Syndicate Bank, UCO Bank and Vijaya Bank.

Of these, three have a CAR of less than 11 per cent while the Central Bank of India has the lowest capital adequacy ratio of 10.01 per cent as of June 30, 2008. The other two banks having capital adequacy ratio of less than 11 per cent are Vijaya Bank (10.47 per cent) and UCO Bank (10.53 per cent).

“There are only four public sector banks, which have a CAR of less than 11 per cent. To take them to 12 per cent, an amount of about Rs 1,000 crore will be required. For most other banks, the CAR is above 11 per cent,” an official in the finance ministry, who did not wish to be identified, said.

Private sector banks are better placed in terms of CAR than their public sector counterparts. Only three private sector banks have a CAR of less than 12 per cent. If these private sector banks are to increase their CAR, they will need only about Rs 300 crore.

However, how much additional capital these banks put together requires is not clear. Also, the government is still working on the nitty gritties of the capitalisation scheme. When contacted by Financial Chronicle, Syndicate Bank chairman and managing director George Joseph said: “The measure announced by finance minister would certainly help us, but how much additional capital we would require is yet to be calculated."

The latest finance ministry measure will have no impact on banks having capital adequacy ratio of above 12 per cent, including the country's largest bank, the State Bank of India, which has a capital adequacy ratio of 12.64 per cent as of June 30, 2008.

Source: MydigitalFC.

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Stock Idea - Sesa Goa.

Scrip: - Sesa Goa Ltd.
BSE Code: - 500295
CMP: - 116
Market Cap: - 4601
Target : - 145 (2-3 months)

Commodities are bottoming out and showing signs of uptrend.
Company has a good management and has shown good results in the pasts.
It has now fallen more than 50% from its peak and is even trading at a discount to the price Vedanta paid last year to acquire the company from Mitsui.
At that time: (i) iron ore prices were half that of the present levels; (ii) sales volumes were considerably lower, (iii) cash levels were also much lower; and (iv) other competitors had shied away from bidding due to imposition of Rs 300/tonne export duty on iron ore just before the process. Several factors have collectively led to this fall.

The key negatives are: (i) seasonal weakness; (ii) lower import demand from China, given curtailed steel production due to Olympics and Paralympics; (iii) global commodities sell-off as financial institutions pull out funds to enhance liquidity amidst the global financial crisis; and (iv) higher coke prices in China causing weakness in low-grade iron ore prices. However, these negatives are fading away and this will result in a dramatic shift in sentiment, going forward.

Sukhani says on this scrip "Sesa Goa is a part of the commodity play and it’s an excellent stock to own and to trade in. There is a sense that at least for investors, they have a lot of support below current prices around Rs 100, its little low but for an investor this is a good time to go and get invested in the stock. For a trader there is overhead resistance, so take Rs 10-15 chance for an upside, its worth buying for both traders and investors."

Happy Investing.
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Stock Idea - Jaiprakash Associates.

Scrip:- Jaiprakash Associates.
BSE Code: - 532532
CMP: - 111
Target: - 140 (3 - 4 months.)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December and now is down almost 80%. Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering the sector which is pulled is Banking and Reality.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.
Happy Investing.
Stock Quotes Here.

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Stock Idea - Godavari Power and Ispat Ltd.

Scrip: - Godavari Power and Ispat Ltd
CMP: - 143
BSE Code: - 532734
52 week H/L: - 376.50 - 141.00
Market cap: - 401.83

Summary -
Initially it produced only sponge Iron , but then over a period of time it diversified into value added products like billets, HB wires and captive power plant run on waste gases emanated from its own kilns. It commenced with an annual production of 105000 tpa of sponge Iron and since then has increased its capacity five fold to become one of the largest producer of sponge Iron in India. Billet and HB wires are produced through its wholly owned subsidiaries.
Company has signed an MOU with chattisgarh government for an investment of 1570 crores for its expansion plans . Company is into manufacturing of sponge iron , steel billets , ferro alloys , captive power generation , wires rods and now about getting approval for mining is going to be a fully integrated manufacturer of steel . The company is all set to get approval for aridongri mine in chattisgarh .A consortium led by GPIL has been allocated four coal blocks at Nakia and Madanpur in Chhattisgarh with 243 million tonnes of total reserves, of which, GPIL’s share is 63 million tonnes . Complany is planning to increase its power capacity 1000 MW

Key Financials: -
A mere maket cap of 401 crores seems much lesser for the company and GPIL seems strongly undervalued . Company clocked a sales revenue of 950 crores resulting in a n eps of 36.50 rs. Managment is targeting at a sales of 1400 crores for FY09 . At the CMP of Rs 143, the stock is trading at 4.39 its FY09 earnings and 2.7x FY10E EPS of Rs 33.84. If company gets nod for mining further EPS of 25 rs can be added to FY 10 earnings .
Further more adding the value of new investments worth 1570 crores and power expansion plans which is about to happen in next four years . Stock has very bright prospects and will outperform the markets in a big way .

Happy Investing.
Stock Quotes Here.

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Stock Idea - OnMobile Global.

OnMobile.
CMP: Rs 450
Target price: Rs 700 (8-9 months)
52 Week H/L: 744.70 - 400.10
Market Cap: 2619.45

Summary: -
OnMobile Global Limited is a provider of mobile value added services and products (MVAS) in India. The Company has a range of applications that are delivered by its customers, who are telecom operators and media companies, to their subscribers. The products of the Company are Network based in-call solutions like caller ringback tones, dynamic voicemail and missed call alert service, Voice-based multi-modal portal which allows subscribers to access informational and entertainment content such as music, sports updates, news, stock and commodity price updates, in multiple languages using speech-based navigation; on-device client software applications; interactive media solutions, such as tele-voting, interactive programming, mobile auditioning and auctions; mobile commerce solutions like ticketing (movie and railway ticketing), utility payments and mobile marketing services, and business support solutions like phone backup and pre-paid and post-paid bill payments.

Key Factors/ Drivers: -
(Data Compiled by Citi Group)
OnMobile Global is India’s largest VAS (value-added services) operator (35% share) in a rapidly growing market [FY08-11 (estimated) CAGR at 51%.

The estimated 36% EPS (earnings per share) CAGR over FY08-11 (estimated), was due to the company’s increasing international presence.

According to the Citi note, the domestic VAS has graduated from being a glorified sub-set of p-to-p SMS to a well-demarcated segment. “The current contribution of the company at 3.4% of wire-less revenues is likely to increase to 6% by FY12E.

Key Positive: -
Mobile sector will see a boom as it is keeping on adding numbers of subscribers on a daily basis.
More over every one need a cell phone.
Strong growth potential.

Key Negative: -
Markets looking volatile so this is the biggest threat to the stock.

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Stock Idea Rcom.

Scrip: - Reliance Comm.
BSE Code: - 532712
Market Cap: - 83643.59
CMP: - 405.25
52 Week H/L: - 844.00 - 381.05

Summary: -
Reliance Communications Limited is an integrated telecommunications service provider. Reliance Communications Limited has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire infocomm value chain, covering over 15,000 towns and 400,000 villages. Reliance Communications owns and operates a next-generation Internet protocol (IP)-enabled connectivity infrastructure, comprising over 165,000 kilometers of fiber optic cable systems in India, United States, Europe, Middle East and the Asia Pacific region. The Company has a customer base of 50 million, including over 1.5 million individual overseas retail customers. Its corporate clientele includes 1850 Indian and multinational corporations, and over 250 global carriers. The Company is the flagship company of the Reliance Anil Dhirubhai Ambani Group. In April 2008, it acquired a 90% interest in eWave World Ltd.
Having 50 million customers it is second largest telecom operator behind Bharti Airtel.
It is an excellent company of ADAG group it has good business model among the all other telecommunication company in India co and also is the second highest subscriber in India co provides various services like mobile,fixed/wirless phone/terminal,land line,net connection,,PCO, Etc. The company also owns world best ethernate technology with buyout flag tecl.

The key positive factors: -
1. It will roll out GSM services from December onwards. This will be a major trigger for new growth opportunities. Reliance Communications is the only national operator providing GSM and CDMA services.

2. Telecom story is still intact. New subscriber numbers are still encouraging.

3. It entered into lucrative IT space by announcing Reliance Technology Services- another growth opportunity.

4. Arrival of BIG TV a profitable business "may be."

5. Reliance Communications will list its global arm “Globalcom” as a separate entity.

6. It will list tower business (Reliance Infratel) within a short period of time. Both the above listings will unlock value in this communications giant.

7. Broadband usage will increase in the coming years.

The key Factors to drive this stock will the Reliance Infratel IPO.
Introduction of GSM service will add a plus to it.

Live Charts. - (technicals)

If you wish to add any thing to this stock , fundamentally or technically post it in comments.
I Will appreciate it.

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Stock Idea - Areva T&D.

Scrip: - Areva T&D
CMP: - 1624
BSE Code: - 522275
Market Cap: - 7767.26
52 Week H/L: - 3280.00 - 1199.00

Summary: -
Areva T & D India Ltd. is an India-based company engaged in the business of power transmission and distribution. The Company’s products and systems serve to transmit and distribute electricity, as well as operate networks through information management. Areva T & D India Ltd. is present at all stages of the supply power chain, from the generator to the end user, backed by a services portfolio. The Company has a presence in more than 30 countries.

Business: -
Areva has many ‘firsts’ to its credit, thus gaining market leadership in a number of products; The company commissioned India’s first Extra High Voltage substation of 765 kV for NTPC in 2007. It built the largest power generating transformer for Reliance Energy in the same year. It is also a market leader in GIS (Gas Insulated Switchgear) substation. GIS are much more compact as they occupy significantly lesser space compared to AIS (Air Insulted Switchgear). Given the demand for space in the country, the company quickly capitalised on this need especially in urban substations. Areva is also expanding capacities for the high voltage transformers and GIS switchgears to cater to the growing market and retain leadership position.

Expansion: -
Areva plans to double its capacity over the next two years with Rs 700 crore investments in Greenfield projects. The expansion move appears timely as the company, apart from catering to local demand, has also started receiving outsourced orders from its parent.

Key Financials: -
At EPS of 45.25 the company is trading 35(PE) times of its CMP.
PE looks attractive at 35.
With a huge market cap of 7767.26and adding 700 cr. of its expansion will add 10% to the stocks value.

N Deal: -
The company already makes nuclear reactors and rotors. Its parent company is a world leader in conventional nuclear projects. It makes turbines for nuclear power stations. It supplies steam turbines to over 30% of nuke power stations globally.

Key Positive: -
The N Deal I think is one of the best reason for the stock to shoot up.
A dividend paying stock.
Annual profits up 10% and so is the quarterly profit.

Happy Investing.
Check Stock Quote Here.

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Stock Idea - Larsen & Tubro.

Scrip: - LNT
BSE Code: - 500510
CMP: - 2562
52 Week H/L: -4670.00 - 2100.00
Target: - 2900 ( Before 3 rd Oct.)
Target for long term investors : - 200% returns after Bonus in 2 years.

Summary: -
One of the badly beaten out scrip in the Indian markets is LNT.
For Short term traders this scrip is excellent as record date for bonus is 3rd of Oct.
Technically speaking this scrip shows some positive strength to me.
Bonus will pull up this scrip.

A long term bet: -
It is India’s largest Engineering and Construction giant.
L&T is the best managed company in India – Business Today survey.
Larsen and Toubro will benefit from huge infrastructure investments in India and Gulf regions.
Strong Order book.
L&T will be demerged into Power, IT, Ship building and Railway units along with engineering division. Investors will get very good returns after the demerger.

Verdict: -
All the factors are in favour of LNT so I am not adding Key Positive and Key Negative.

Ratings -
Short term: - 8/10
Medium Term: - 7/10
Long term: - 10/10 and if possible more than this.

Happy Investing.

Comment on my last stock Idea here.

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Stock Idea - Praj Industry.

Scrip: - Praj Industry.
CMP: - 172
BSE Code: - 522205
52 Week H/L: - 273.45 - 100.15
Market Cap: - 3147.01
Target: - 350 (Only for Long term investors - 2 Years view.)

World Economic Forum (WEF) have bought out a list of 200 growth companies out of which 22 companies are from India. These companies generally considered as having potential to change the global economic landscape. Praj Industry stands at 6th in the Indian List.

Summary: -
Pune-based Praj Industries is an engineering company and is the market leader in ethanol technology. It provides turnkey project implementation services to set up ethanol distillation units. The company has developed technologies to produce ethanol from a variety of feedstock such as sugarcane, sweet sorghum, corn etc and is trying to develop a commercially viable method to convert cellulose into ethanol.Besides ethanol - which accounts for over 80% of its revenues - the company also carries out distillation for breweries and plans to enter the bio-diesel space.
Praj has executed projects in over 35 countries. Over the past couple of years, it has taken steps to strengthen its global presence. These include an acquisition in the US and tie-ups with foreign companies in Europe and Brazil. With this, the company has established its presence in key markets across the world.

Key Financials: -
Praj's net profit has witnessed a cumulative annual growth rate (CAGR) of 43.2% over the past 10 years, while its net sales have grown by 27.3%.
At the current market price of Rs 132.10, the scrip is trading at a price-to-earnings multiple (P/E) of 19.8 based on its earnings in the past 12 months, which is nearly half its P/E just a couple of months ago. Considering Praj's current order book, ability to win new orders and investment in research & development, we expect the company to maintain its EBIDTA margins above 20%. For FY09, we expect Praj to report earnings per share (EPS) of Rs 10.1 .

Key Negative: -
The shareholding of the promoters and public has fallen, while institutional holding is on the rise.
Technicals are not in favour.

Key Positive: -
Ethanol and bio-diesel are gaining acceptance worldwide as eco-friendly fuels. Ethanol blending has already become mandatory for petrol in a number of countries, including its largest consumer, the US. The proportion of blending is slated to go up, with governments in the US and India mandating 10% blending over the next 2-4 years.
The company already has an order book of Rs 900 crore, which will be executed over the next 12 months. Praj is gearing up to cater to the fastpaced growth in future by expanding its capabilities. It has increased its manpower and set up its second manufacturing unit at Kandla SEZ. It has also established a full-fledged research centre for bio-fuels to develop new technologies in this field.
Bibliography: -
Quotes From Rediff Money
Information From I Bulls And ET.

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By in every Dip - Rajesh Exports.

Scrip: - Rajesh Exports Ltd.
CMP: - 46
BSE Code:- 531500
52 Week H / L: - 168.30 - 45.80
Market Cap: - 1059.73
Target: - 120 (1 Year)

Summary: -
Rajesh Exports is involved is business of exporting gold and diamond cutting. Recently this stock has hammered due to weakening rupee. Dollar has appreciated at Rs 44 which come to 17 months low. The second reason why it came down is Gold from 13 K sliped to10.8K.
Rajesh Export now the largest established private gold buyer, accounting for 1.2% of the global gold trade. Having attained this scale of operation, the company is now shifting its focus to find ways of increasing its net profit margin.
In order to meet its objective of increasing its net profit margin, Rajesh Exports has identified three major divers of growth:
Jewellery retailing: increasing presence across value chain by catering to different segments of consumer needs
Diamond jewellery: expanding product range with higher margins
White labels: expanding its market by supplying white labels to retail chain stores across the world.

Key Financials: - Its sales keep on increasing almost every quarter. Before the recent split and bonus of this scrip this was one of the favourate scrip of the investors.
EPS & PE both have bottomed out.
Rajesh Exports Ltd had reported revenue growth of 40.7% on year-on-year basis to Rs 25.25 bn for Q4 FY 08. Profits grew by 46.8% YoY to Rs 489m as against expectation of Rs 528m,according to market analysts.

This was due to high tax outflow in the last quarter, which was not provided for in the previous quarters. Operating margins declined by 298bps YoY to 3.3% due to higher share of its low margin bulk business.

For the year, revenue grew by 25.7% YoY to Rs86.67bn and PAT grew by 103.9% YoY to Rs2.07bn against our expectation of Rs2.11bn and OPM increased by 130bps to 4.4%.

The Real Estate: - Rajesh Exports has about four million sq.ft. land in Bangalore and Kerala. It is now planning to develop these properties and acquire competence in property development by setting up a 100% subsidiary, Bangalore Infra. The company may look at property development as a separate business in future.

Calculations: - Calculating all the above points and the real estate it has the Market cap should be the double of what it is now. So the stock prices will give 100 - 200 % returns in 1 Year.

Positive Factors: -
World’s largest gold exporter at lowest cost.
Stock is currently trading at low valuations.
Big order book.
Foreign investors increased their stake by 10% .
FIIs bought this stock at around Rs 95 then why should you wait to grab this stock at Rs 46.

Key Concerns: - Continued volatility in gold prices and adverse market conditions have forced Rajesh Exports, India’s leading gold and diamond manufacturer to go slow on its retail expansion plans.

The 100 Shubh stores which were expected to be rolled out by FY09, has been reduced to 40 due to continued volatility in gold prices and adverse market conditions. It is not expanding its Laabh stores either, and would keep the number of stores at a 30 in
FY09.

However, the growth in bulk business to Middle East would compensate for the loss of growth in retail, according to company sources.

The company expects its other businesses of bulk exports,white labels and diamond jewellery to more than compensate for the slowdown in its retail division.

The slowdown in its retail business is likely to affect its overall financial performance.

The Real Multibagger.

Share Your Views in Comments. I will appreciate your response.

Live Technical Charts.

Intra Day Chart CMP can be seen on the chart.

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Stock Idea - Kolte Patil.

Scrip: - Kolte Patil developers Ltd.
BSE Code: - 532924
CMP: - 62
Target: - 100
52 weeks H/L: - 272.00 / 45.00

Summary: -
Kolte Patils IPO came just a year ago. Its issue price was Rs. 140. At CMP this scrip looks attractive as it has bottomed our like anything.
This is a Pune based company with its majority of its project in the same city.
This scrip has come down due to reality bomb in Indian markets. With good fundamentals this is the one which is attracting me.

Financial : -
Its EPS is 17.13 is one of the major reason why I am bullish on this scrip.
The current valuation of this scrip is undervalued. It at not this range one should accumilate this scrip at around 50 levels.
When the scrip was above 200 its PE was well above 10.
We can expect this happen all over again.

Key Positive: -
Its majority of projects are in Pune which comes in Tire 2 city which means lots of development can take place.
Its has also entered UAE markets.
Reality prices are touching all time highs.

Share Your Views in Comments. I will appreciate your response.
Live Technical Charts.


Did you read Stock Idea - Hotel Leela.

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Stock Idea - Hotel Leela.

Scrip: - Hotel Leela.
BSE Code: - 500193
CMP: - 31

Summary: -
Hotel Leela has been listed on the stock exchanges of Indian i.e. BSE & NSE since 19th of July 1995.
It is in Hospitality industry from a long Time.
The company has four fully functional hotels all over India i.e. at Mumbai, Goa, Bangalore & Kerela.
It comes in a luxury Hotel segment. Its Bangalore property has been rated as one of the best business hotel.
It current market capital is 1200 crores with a PE ratio of 8 per share of face value of Rs.2/-.
The company is planing to double the capacity by 2010 and tripple by 2012 i.e 12 hotels in all.
Logically if it starts eight new hotels their cost of building, licensing, etc would be approx 400 crores per hotel i.e. 400 x 8 = 3200 crores.
And at present the company's market capital is 1200 crores which would add 3200 crores to it.
So assume the market cap is 5500 crores approx which surely tipple the stocks value by the same period.
Another key factor is the zooming land rates.
Development in economy and development in tourism will add to scrips hidden value.
So keeping the long term factor in mind one can accumulate this scrip at any rate within Rs.32/-.
I would keep a price target of Rs.150/- approx by the end of 2010.

Financial Highlights: -
With the current EPS od 3.97 and a face value of 2 with a market cap of 1200 it looks undervalued.
Operating income increased by 50% compared to lats year.
From mere 7 cr net profit in 2004 and now at 120 cr net profit this stock looks very attractive and cheap.

Key positive: -
A dividend paying stock.
Good long term perspective.
Undervalued.
Lots of developments taking place.
Good management.

"Buy or cry the stock will fire"

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A potential Multibagger - Chowgule Steam Ship.

Scrip: - Chowgule Steamships Ltd.
BSE Code: - 501833
CMP: - 48
Market Cap: - 180.23 Cr.
EPS : - 7.41
P/E: - 6.70
Target: - May go even in 4 Digit in 4 -5 Years.
52 Week H/L : - 104.55 - 30.35

Summary: -
Chowgule's are one of the old and prominent players in the Shipping Ind. , promoted by the Goan Iron Ore Mine owners, the Chowgules, who happen to be one of the large mine owners of Goa In the late eighties when the shipping co. were finding difficult to survive Chowgule had survived.
with diverse interests.

Chowgule Steamships Ltd is a small Shipping Company owning 3 Panamax bulk

carriers, 1 Supramax Bulk Carrier, and 3 mini bulkers (detailed below):-

Name Vessel Type Built DWT Market Value

(In Million US$ )

m.v. Maratha Messenger Panamax 1995 71252 48.00

m.v. Maratha Providence Supramax 1995 47574 36.00

m.v. Maratha Courage Mini Bulker 1994 2053 1.00

m.v. Maratha Crystal Mini Bulker 1997 3500 2.00

m.v. Maratha Coral Mini Bulker 2000 3427 2.00

m.v. Maratha Explorer* Panamax 1990 68849 32.00

m.v. Global Triumph * Panamax 1996 72870 48.00

*(Owned by 100% Subsidiary Chowgule Steamships Overseas Ltd)

The market value given above is based on estimated current valuations of similar vessels by leading International Shipbrokers.

Based on the above, the estimated value of its fleet is US$ 169 million which is approx crores . But the current Market cap isRs.680 180 Cr. and CMP Is 48 . So the real value should be 3 times of CMP i.e. at 145 Rs.

Further More.
Their office premises at Bakhtawar Building, Nariman Point, which had been revalued to apporx Rs. 20 crores in 2002 should now be worth more than 3 times this amount i.e. at least 60/65 crores..
Thus the hidden real estate value of the Company is approx Rs.70 crores, which itself is worth Rs.15-16 per share !! This is coming free.

The real Multibagger: -

Chowgule in 2012 is coming up with a 100% port at Raigad. This Investment is worth more than 1000 Cr.

Secondly by the sales of ships it earns a huge sum.

Financial s: -
Its operating income has increased 125% compared to 2007 .
Its net profits increased 200 % odd.
PAT increased by 110%.

So the company looks with a good financial sound.

Key Positive: -

A dividend paying stock. Paid 1.5 rs Dividend.

Good valuation.

New Port coming up.

Company is exploring new corners of the unseen ocean.

Key Negative: -

Highly Risky business.

Companies Site: - www.chowgulegoa.com

P.S. I personally own a bulk of this scrip.

Chirag Jethmalani.

Please read the Disclaimer before investing.

Happy Investing.!

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Stock Idea - Germach Infra.

Scrip: - Germach Infra
CMP: - 88
BSE Code: - 532836
52 Week H/L: - 504 / 78
Market Cap: - 133.84
Target : - 350 (1 year)

Summary: -
Gremach Infrastructure Equipments & Projects (GREMACH) in engaged in the business of providing construction and earthmoving machinery on rent. It provides equipment consultancy and maintenance services to optimize use and reduce costs and also hires equipment owned by other parties to rent them out to clients.

Gremach Infrastructure Equipments & Projects (Gremach Infra) acquired a controlling 75% stake in 11 coal mine licenses in Mozambique in Karoo basin. Mozambique is a prime Hard Coking coal bearing area in Africa.

Financial: -
Its Cash EPS has increased from 6.16 to 7.97With the current EPS of 24.43 and a PE of 3.71 the stock looks reasonably cheap. It looks undervalued. Its June 08 result shows decline in sales but a 200% increase in operating profit. . Its net Profit increased 25% odd.

Why it went so high and now come so down: -
FII's sold out this stock in a large proportion.

Key Positive: -
Gremach Infra has come out with Ipo of group company Austral Coke soon, so it will have to show good performance of Gremach Infra stock.
Undervalued.
Paid dividend of re. 1
Good Long term bet.

Key Negative: -
Has bottomed out like hell. Technicals are not in favour.




Happy Investing.!

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Investment Idea - Rishi Lasers.

Scrip: - Rishi Laser.
BSE Code: - 526861
CMP : - 68
Market Cap: - 55 Cr.
52 Weeks H/L: - 206 / 51
Tgt: - 120 (6-7 Months.)

Summary: -
Rishi laser is a leader in the usage of Laser Cutting for manufacturing components and assemblies.Rishi(RLCL) set up its first Laser Cutting facility in 1995. Even though Laser Cutting was very popular in Western Countries at that time, Laser Cutting of metals was very new to India.The progress in the first five years was very slow because Laser Cutting was still looked as a very expensive method of processing steel. Also the Indian Engineering Capital Goods Industry was passing through a very difficult period in later nineties. The scenario has completely changed today for the sector and the company. The Engineering and Capital Goods sector is booming in India and Laser Cutting is fast becoming a very standard method of processing flat steel.The fabrication industry is highly fragmented and there are very few organised large Companies in the business. Rishi Laser continues to be the leader in the business in terms of capacity with 20 CNC steel processing machines. RLCL is now embarking on major growth path to add further facilities to enhance capacity.

Financials: -
Its reserves are increasing year over year. The current reserves are 19 Cr. Odd. Its sales have increased considerably. Rishi has been consistently perfoming well over the last 4 years or so and the same trend is expected to continue in the coming years as well.We expect RLCL to deliver a topline of aound 75crs and a bottomline of about 4.8crs for fy08 .With a low equity base of 6crs the bottomline results in an EPS about 5rs.At the current price of 67rs RLCL quotes at a P.E of slightly above 11.8 times.

Key Positive Points: -
Demand in this sector is growing consistently.
Good sales.
It is there in Rakesh Junjunwalas Portfolio.

Key Negative Points: -
High operating cost.
Not a dividend paying stock.


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Investment Idea - Rishi Lasers.

Scrip: - Rishi Laser.
BSE Code: - 526861
CMP : - 68
Market Cap: - 55 Cr.
52 Weeks H/L: - 206 / 51
Tgt: - 120 (6-7 Months.)

Summary: -
Rishi laser is a leader in the usage of Laser Cutting for manufacturing components and assemblies.Rishi(RLCL) set up its first Laser Cutting facility in 1995. Even though Laser Cutting was very popular in Western Countries at that time, Laser Cutting of metals was very new to India.The progress in the first five years was very slow because Laser Cutting was still looked as a very expensive method of processing steel. Also the Indian Engineering Capital Goods Industry was passing through a very difficult period in later nineties. The scenario has completely changed today for the sector and the company. The Engineering and Capital Goods sector is booming in India and Laser Cutting is fast becoming a very standard method of processing flat steel.The fabrication industry is highly fragmented and there are very few organised large Companies in the business. Rishi Laser continues to be the leader in the business in terms of capacity with 20 CNC steel processing machines. RLCL is now embarking on major growth path to add further facilities to enhance capacity.

Financials: -
Its reserves are increasing year over year. The current reserves are 19 Cr. Odd. Its sales have increased considerably. Rishi has been consistently perfoming well over the last 4 years or so and the same trend is expected to continue in the coming years as well.We expect RLCL to deliver a topline of aound 75crs and a bottomline of about 4.8crs for fy08 .With a low equity base of 6crs the bottomline results in an EPS about 5rs.At the current price of 67rs RLCL quotes at a P.E of slightly above 11.8 times.

Key Positive Points: -
Demand in this sector is growing consistently.
Good sales.
It is there in Rakesh Junjunwalas Portfolio.

Key Negative Points: -
High operating cost.
Not a dividend paying stock.


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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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Stock Idea - Suzlon Energy.

Scrip: - Suzlon Energy Ltd.
BSE Code: - 532667
CMP: - 233 Rs.
Market Cap: - 35813.33 Cr.
52 Week H/L: - 460.00 - 174.50
Target : - 350 (5-6 months)

Summary: -
This company was started in the year 1995 by Mr. Tulsi Tanti who was primarily in the textile business and was introduced to wind energy through a wind power project that he had commissioned for his textile factory. The first subscribers to the Memorandum were the family members and friends of Tulsi Tanti.
Later in the year they collaborated with a German Company sudwind to acquire technology to produce wind energy in India.

Financial Snapshots: -
If you look at their balance sheet you will wonder that its a must buy. Their operating income in 03-04 was 791.15 Cr Rs. and in the current year it is 6,926.01 Cr Rs. On an average a 950 + % up move in OI . With an EPS of 8.46 I find that the company is currently undervalued compared to its assets.

Why is it a must buy ?
All factors are in favor to buy this scrip. Oil prices are well above 100 $ / barrel. We need an alternative source and an environmental friendly fuel which is wind . One day oil will be depleted but wind wont. Suzlon is a best bet in the current power sector. The companies financial are quite good assuring that it has a good future.

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