BHARAT FORGE Q1FY11 Is Expected Good Stay Invested

BHARAT FORGE Q1FY11 Is Expected Good Stay Invested,


The second largest forging company in the world, Bharat Forge.
It scaled new high of Rs.328.55, since the buzz around this company remains very positive.

Almost all brokerage houses have put out a ‘buy’ for this stock.

The company is making moves to increase its presence in the non automotive sector, which is largely related to energy, infrastructure, marine and railways. The company has entered into deals with Alsthom and Areva and both these are expected to start adding on to the revenues from 2012.

Nava Bharat Ventures Good Power Stock to Stay Invested

Nava Bharat Ventures got into power and sugar and that has been a very wise decision. It is power and sugar which has helped the company face the rough weather in FY09, especially in ferro alloys, where lack of demand since the end of Sep’08, forced the company to curtail production and shut its ferro chrome furnace.
Overall performance for FY09 was good. In the last quarter of FY09, the topline and the bottomline took a dip. The revenues for the quarter fell by 12.14% to Rs 303.36 crore and net profit declined by 16.13% to Rs.108.54 crore. Power segment sales rose by 92% while ferro alloys sales was down 74%.
For FY09, revenues of the company increased by 43.43% to Rs 1,350.05 crore and its net profit increased by a whopping 62.84% to Rs 520.57 crore. The company posted a forex loss of Rs.29.17 crore. It also bought back 1.93 million equity shares of Rs 2 each for Rs 23.26 crore and extinguished equal number of equity shares. After this, the paid up capital has come down to 7.59 million equity shares of Rs 2 each.
The company plans to go full throttle with its power projects and has plans to set up a 1,050MW merchant power plant (50: 50 JV with Malaxmi group) and another 64MW at its existing location in Orissa. Capex envisaged is Rs.4700 crore ad is expected to be commissioned by FY12. It has been allocated Rambia coal mine in Orissa with estimated reserves of 112 million mt. It also plans to put up another power plant in Andhra Pradesh.
This remains a good long term stock as it is power which will power the company in the coming months. thanks

SHRIRAM EPC Results Wait & Watch

Shriram EPC provides solutions for renewable energy projects and is a major manufacturer of wind turbines. For the year ended 31st March 2009, the company posted a net sales of Rs.1005.80 crore, up 44% and this is for the first time that revenue crossed Rs.1000 crore mark. But its profit margins are dismal. It posted a net profit of Rs.47.47 crore, up 35%. This on an over Rs.1000 crore turnover does not look too enticing. The NPM for the year thus stands at 4.72%.
The company has commissioned two units of a biomass power plant for Lakshmi Energy in this financial year and has commenced operations at its integrated wind turbine manufacturing facility, with capacity to manufacture MW class wind turbines, in Gumminipoondi. Its consolidated order book stands at Rs 1670 crore billion as on March 31, 2009.
The company had issued shares at Rs.300 when it had come with the IPO in early 2008. Today it is quoted at just around Rs.183 levels and shareholders are surely in a loss. They may have to wait for some more time. thanks

GM bankruptcy A lesson 2 Indian Car Manufacturers

GM has filed for bankruptcy, A lesson to what Indian car manufacturers can avoid doing?

What went wrong with GM?
The company just hoped that it would be able to live forever on its brand loyalty. It felt that people would just keep on buying their same cars even when things all around GM were changing rapidly. Losing sight of what people actually wanted led to this end of an era.
People wanted a car which would give them better mileage and this important indicator, of having more fuel efficient cars was also missed by GM. This is where Toyota gained and GM started losing out.
The designs of GM just simply did not appeal. GM did keep up with new models but with competition from the likes of Honda and Toyota, churning out swanky and better looking cars, the new models of GM just did not find favour. Its Aveo model was a complete failure and its Cobalt, though was doing well was no match for Toyota’s Corolla and Honda’s Civic.
The economic turbulence and then the fall in demand also just added on to the already brimming cup of woes.
Labour cost was almost $2,360 per car, which was $800 more than Ford's and $500 more than Chrysler's.
The biggest lesson for all car makers from this fall of GM – always listen to the dealers. The showrooms are the true indicators of what customers actually want. GM failed to do that.
GM ran the company the in the same way for 70 years, following the same rules laid down in the memo by its founder. Also the arrogance of success was so high, they just failed to adapt to fundamental changes in the industry.
By the time GM realised its follies and started making amends, it was too late and too little. Till then the Japanese had stolen away a considerable market share and the same brand loyalty which GM was harping on about, was now pass. thanks

Rolta India March 09 Results Analysis

Rolta India posted its financial results for the third quarter ending March 09,
Rs.84.01 crores, forex losses on FCCB of $ 150 million,
Forex losses, upto June 08, have been adjusted against opening revenue reserve. As this loss will get capitalized in case it is used for fixed assets or would get amortized over a period, other expenses for the quarter rose by Rs.11.87 crores, due to this. So net addition to the bottomline for the quarter is at Rs.72.14 crores.
For quarter, total income is placed at Rs.244.68 crores, which is almost equal to its preceding two quarters.

EPS for March 09 quarter is at Rs.9.90 while it is at Rs.16.50 for nine months ending March 09. Hence on expected EPS of Rs.22 for the year, share at Rs.100 is fully priced. thanks

THERMAX Looks Good Stock to invest

The financial performance of Thermax for the third quarter ended 31st Dec 2008, on a QoQ has been better than its performance when compared on a YoY. Q3 net sales QoQ was down marginally by 1.12% at Rs.795.06 crore while it was down 6% YoY.
Net profit YoY might have come down but the profit margins have been better. NPM was at 9.09% as against 8.87% in Q3FY08.
It has an order book of Rs. 4,103 crore as of December 31, 2008. The company expects execution of orders slowing down and in Q4 it does not expect the situation to be any different from what it was in Q3.

Why thermax is good stock to invest?
Thermax is a good investment stock option.

1. its orders to the power sector will not get unduly affected as power remains a priority sector for growth.
2. it is a zero debt company, a rare breed to come across in today’s time.
3. with inflation down, its costs would come down further, which in turn would help maintain the bottomlines.

Thanks

Assam Company A Penny Trading Stock

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, 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.
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.thanks

Castrol Stock Can Go Up With Launch of The Nano

2008 marked the presence of Castrol as a brand in India for 100 years. For a company which depends mainly on the auto sector, one would have expected that the company, given the poor state of the auto sector would have impacted margins of Castrol. The first half of the current year helped the company bear the impact of the slowdown in the second half, especially in the fourth quarter.
For the year ended 31st Dec 2008, its net sales for the year were up 17% at Rs.2216.80 crore. EBITDA was up 21% at Rs.441.60 crore. The company has maintained its margins almost at the same levels. OPM for year was at 19.92% as against 19.30% in previous year. This a good increase, given the 205 increase it had to face on cost of raw materials and marginal drop in volume sales too. The company ended the year with a net profit of Rs.262.30 crore, up by 20%. NPM was down at 8.71% from 10.68% in previous year.
The one very positive factor in favour of the company is that it has an exclusive tie-up with Tata Motors for its passenger and commercial vehicles, and will be an original equipment (OE) supplier and after-sales services provider to the Nano. It is also working on making a specialised low-cost fuel-efficient lubricant for the Nano and this is an exclusive lubricant. Very much under the wraps, this lubricant is expected to reduce emissions and ensure higher engine longevity in a competitive business environment.
The response to Nano and the new lubricant would, to a large extent decide the coming first quarter of FY10. With small and low cost cars being the norm, once this exclusivity agreement is over, with Ford and Bajaj also planning similar cars, maybe this would be its new milch cow. The stock is sure to see some spurt in the run up to the launch of the Nano in the coming days. thanks

ASIAN PAINTS Robust Growth in Slowdown also

Now this is one company which is remains affected by the biggest slowdowns in two sectors – realty and automobile. With both the sectors being its main consumer and with both having slowed down, naturally, the going looks grim for Asian Paints. Its other main revenue earner.
In the third quarter ended 31st Dec 2008, though the company showed a robust growth in revenue, the bottomline was affected due to rising raw material costs. On a consolidated basis, PAT declined 50.35% to Rs 59.02 crore while net sales rose 12.17% to Rs 1321 crore.
25% of its revenue came from the international markets, especially the Middle East. But with the slowdown in those regions too and construction activities coming to a virtual standstill, this pie from exports could also take a hit in Q4 of the current fiscal.
Quoted at Rs.726, Asian Paints is also feeling the pains of the slowdown. thanks

KPIT CUMMINS Not Able to Decide Wait Till March End

The financial performance for the quarter ended 31st Dec 2008 was not too bad, if one decides to ignore the forex losses it has not provided for. But it is precisely this concern, of burgeoning forex loss which would come at the end of the year which has kept the stock price low.
The company posted a YoY 22% rise in revenue at Rs.184.52 crore. EBITDA was up 21% at Rs.28.67 crore and net profit rose 19% at Rs.16.87 crore. QoQ, the performance was flat, with a 55 fall in topline and thanks to reduction in selling and distribution expenses, it more or less maintained the net profit at the same levels as in Q2FY09.
It added 3 new customers during the quarter, taking the total number of customers to 126. It added 106 new employees and this takes the total headcount at the end of Q3 FY09 at 4867.
The stock could see some fancy come back only after the March results. Till then, the stock would remain range bound at around same levels. thanks

KOHINOOR FOODS Best is Wait and Watch

This is one stock which has been in the news for some time now. The stock has been witnessing a lot of buying. The reason being Temptation Foods announcing that it has acquired a 11.83% stake in the company. But the shareholding pattern as on 31st Dec shows the holding of Temptation Foods at 2.28%, this has come down from 5.02% it held as on Q2FY09. And the management in a television interview also clarified that it has no intentions of selling even one percent stake in the company. So that mystery continues.
Kohinoor Foods is engaged in selling rice under its flagship brand, Kohinoor, along with other brands like Trophy, Falcon and Charminar. It launched Kohinoor brand of ready-to-eat food in 2004. In Dec 2008, it tied up with Target Corporation, USA for supplying Indian food products. Being in branded foods, its margins are high. The previous quarters of current fiscal reflects the high prices of commodities, which directly affects the working capital requirements and that in turn, has been reflected in the financials of the company.
But financially, Kohinoor seems to be under pressure. For the third quarter ended 31st Dec 2008, the company showed a decline in topline on a YoY and it posted a net loss at Rs.3.56 crore as against Rs.8.29 crore net profit it posted in Q3FY08.
At this juncture, too many speculative forces are at work on the stock. Best to stay away until a clearer picture emerges. thanks

JP Associates Became One Big Umberalla

JP Associates, the company has posted a performance which raises an eye brow on all counts. At a time when realty is down, JP Associates manages to show a major jump in all precisely these lines of activities.
The company has explained that the numbers in construction were up mainly on account of the Yamuna Express Highway.

The company is developing a 1000 MW plant in Himachal Pradesh, known as the Karcham Wantoo project. Here the civil works are at peak and this project is expected to commission at least six months ahead of schedule, by Nov 2010. Work on the 160 kms Yamuna Expressway has taken off and the big tunnel project in Andhra Pradesh is going as per schedule and Baglihar project in Jammu & Kashmir is nearing completion.

The company is acquiring four companies and merging into it - Jaypee Hotels, Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises. This merger is being viewed as the best way for JP Associates to raise huge capex requirements of over Rs.12,000 crore to expeditiously implement the various projects. At later stage, the power business is to be all amalgamated under one identity. It will have all the cement business, entire hotel business, entire E&C business under JP Associates and consider amalgamation of JP Hydro or Jaiprakash Power Venture into one power company. thanks

Axis Bank One of The Good Banking Stock To Hold

Axis Bank has posted a good performance for the second quarter ended 30th September 2008. The net interest income for Q2 was Rs. 913.47 , a growth of 55% yoy. The Net Profit for the second quarter was Rs. 402.91 crore, up 76.85% yoy. Its Net NPA was at 0.43% of Net Customer Assets. In today’s time maintaining asset quality is very important and on this front, Axis scores high. Its capital adequacy ratio of 12.20% also indicates that its capital is leveraged adequately. The quarterly EPS (diluted) at Rs. 11.07 was 55.04% higher than the EPS of Rs. 7.14 in Q2 of the previous year.

The Bank has reported a Trading Income of Rs. 36.16 crore in Q2, a decline of 42%yoy. The share of Trading Income to Operating Revenue decreased to 2% in Q2 as compared to 6% in the Q2 of the preceding year. The profitability of the Bank is therefore strongly underpinned by sustained core earnings of Net Interest Income and Fees.

The Bank has a wide presence through its 729 Branches & Extension Counters across 442 cities and towns across India. It has an ATM network of 3,082 ATMs, making it the third largest in the country.

Axis Bank has probably reported one of the highest growth rates in the sector, and it is yet to catch enough investor fancy enjoyed by its peers – HDFC Bank and ICICI Bank. The stock was up yesterday over 3% at Rs.559. Banking stocks are expected to do well in the next fiscal and best to accumulate as every dip.
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Tech Mahindra gained 9.6 percent to 311 rupees, the most since Oct. 28. Tech Mahindra has proposed the merger with Satyam, the Economic Times reported today.

SUGAR STOCKS Return of 100% From Current Levels

SUGAR STOCKS – BEST DESSERT TO REMOVE ALL BITTERNESS.
UP sugar mills have challenged SAP of sugarcane for season 06-07 and 07-08, which was fixed by the UP Govt at Rs.125 per quintal after which petitions remains pending for hearing in the Apex Court. The Allahabad High Court in one of its order dated 19/12/2007 had quashed the SAP for season 06-07 being arbitrary and unreasonable. It directed the UP Govt to reassess SAP and refix the price in due consultation with various parties involved. Subsequently, the Apex Court by its interim order dated 27/02/2008 had directed the sugar mills to pay at Rs.118 per quintal for season 06-07. Practically all the sugar mills in UP have paid and discharged this liability, at Rs.118 per quintal and hence nothing much is likely to accrue for this year.

However the Lucknow bench of Allahabad High Court vide its order dated 07/07/2008 has upheld SAP of Rs.125 per quintal for season 07-08. Subsequently, Apex Court by its interim order dated 15/05/2008, had asked mills to pay at Rs.110 per quintal for season 07-08. All the sugar mills in UP, have paid at Rs.110 per quintal and even the financial accounts of those companies were finalized with sugar cane price taken at Rs.110 per quintal. If the Court will ask the mills to pay at Rs.125 per quintal, there would be an additional liability of Rs.950 crore, to be paid by the mills to the farmers.

It is likely that the UP sugar mills might prefer an appeal in the Apex Court against dismissal of their petition challenging SAP for the season 08-09, at Rs.140 per quintal or may go for review, in Allahabad High Court. But this seems to be a symbolic protest by the mills as it’s being fought to strengthen their old cases of SAP for seasons 06-07 and 07-08. No relief is likely to come, except for clarifications on rebate/deduction of Rs.10 per quintal, being transportation charges on sugar cane, brought from farms to the factory, by the farmers.

In this background, it is certain that cost of production for UP sugar mills will be higher this year, mainly due to low recovery and higher cost of sugar cane. In Karnataka and Maharashtra, sugar cane prices are ruling at Rs.1300 to Rs.1,500 per MT with recovery of 11% to 11.5%. In Tamil Nadu, the cost of sugar cane is at Rs.1,200 per MT, but mills run on an average of 270 to 300 days in a year, as against the average of 200 days in Maharashtra and 160 days in UP.

Season 08-09 has started with an opening stock of 9 million tonnes and production is not likely to exceed 19 million tonnes. Government having earlier estimated a production of 22 million tonnes has scaled it down to 20 million tonnes. On an estimated domestic consumption of 23 million tonnes and expected export of 1 million tonne, the closing stock will be abysmally low at 4 million tonnes, on 30/09/2009.

This will lead to a sharp rise in the sugar prices, which may start happening from end of April 2009 as crushing in most parts of the country would come to an end, as also, the general elections in the country would be in its final stages of completion. Government would be keen to control the sugar prices, in retail, at Rs.22 per kg, as any rise in sugar price could cost dear to the Govt in the elections, which is always a very sensitive issue.

Brazil, the largest sugar producer in the world, which has six months crushing, will also end its season in December and post that; even international prices of sugar will start rising. On the domestic front, sugar prices have risen by about 50 paise per kg in the last 15 days and is now ruling at Rs.18 per kg, ex-mill in UP and at Rs.17.50 per kg in other parts of the country.

Coming on the working and viability of UP sugar mills, cost of sugar cane is expected to be Rs.14.50 – Rs.15 per kg, assuming an average recovery of 9.50%. Adding the cost of production of Rs.4 - 4.50 per kg, the total cost to the mills would be Rs.19 per kg. Molasses and baggasse could give an average realization of Rs.4 – 4.50 per kg of equivalent sugar. This means, presently, UP mills would be making a pre-tax profit of Rs.3 – 3.50 per kg of sugar. From May 09’, this would cross Rs.5 per kg.

However, the situation for non-UP sugar mills would be better due to lower cost of sugar cane and higher recovery, coupled with higher number of crushing days in Tamil Nadu.
In summary
All these cast a positive light on all the sugar stocks across the board. Those who have a 12-18 months perspective can buy them at the current levels and can expect a return of 100% during this period.
Thanks
Renuka sugar;
India Glycols Ltd.

WALCHANDNAGAR INDUSTRIES promising stock To invest

Walchandnagar Industries has been around for the last 100 years and that in itself is a very big deal, as today, the company’s come and go in the blink of an eyelid. The company, which was earlier named Marshland & Price, has been named after the late Walchand Hirachand who bought it from the British owners.
In its 100th year, the company has managed to maintain its growth rate. For the year ended 30th September 2008, its net sales rose 10% and managing to keep operating expenses at around 9.5%, it managed to post a 10% rise in EBITDA at Rs.69.73 crore. PAT was up 12% at Rs.39.77 crore. On an equity of Rs.7.61 crore, its EPS now stands at Rs.12.32, on a face value of Rs.2 per share.
The company is also majorly into thermo-dynamic and related co-generation as well. A plant converting solid waste to power was already working in Hyderabad, while another one is on the anvil in Karnataka.

The company is planning a Capex of Rs.50 to Rs.100 crore in the Walchandnagar plant and the foundry division in Satara. The next fiscal is expected to be much better as towards the second half of FY10, orders would start coming in from the proposed nuclear power plants and for expansion of existing ones.
Walchandnagar Industries Ltd is an ISO-9001 -2000 certified, multi product,multi discipline,high-tech, heavy engineering, Projects execution company catering to diverse Industries such as:

The stock is currently quoted at Rs.88, which is a tad higher than its new low it made on 27th Oct at Rs.82. Shareholders would do best to hold on to the stock as the promise for the future looks good, so don't think go ahead.
Thanks
Walchandnagar Industries Ltd.'s Audited Financial Results for the Year Ended 30.9.08 are declared

Lanco Infratech Results low with Slowdown

Lanco Infratech is into EPC, property development and power – generation and trading. Lanco’s power portfolio includes an operating capacity of 519 MW and additional capacities under various stages of implementation aggregating to more than 8,000 MW. The company is developing 163 Kms of National Highways on BOT basis and has emerged as winner for developing a Rs.8000 crore transhipment container port in the state of Kerala.

For the second quarter ended 30th September 2008, on a YoY, gross revenues were up by 107% at Rs.1290.60 crore. EBITDA was up by 70% at Rs.197.90 crore. Then the dream run ended. It posted an exceptional forex loss of Rs.25.36 crore and this pulled down the PAT, which was down 8% at Rs.51.56 crore. But for the MTM forex loss, PAT would have actually been higher by 17% at Rs.56.30 crore.

By the end of the current fiscal year it is expected that that the operational power generation capacity will increase by around 30% and will be more than 800 MW. The construction activity for the development of around 4000 MW is progressing generally as per schedule. The first unit of 300 MW at Amarkantak, which was expected to start operating in October is currently undergoing commissioning activities and it will be commissioned soon. The small Hydro projects are expected to start commissioning from next quarter. The construction activities at Udupi, Kondapalli and Anpara are progressing as per schedule.

The order book of the company stood at Rs.12060.31 crore at the end of Q2FY09. Due to the slowdown, the company has faced cancellation of orders on its realty projects. With commodity prices all around easing up, the company feels that in the coming months, the effects of the slowdown would be offset by the reduction in its procurement costs. It thus expects to maintain its margins in the remaining two quarters. Yet, an eye has to be kept on the forex front, as the company import’s a fairly large amount of capital goods for its power projects.
thanks LANCO INFRA

PANTALOON RETAIL The Big Bazaar company

The Big Bazaar company has had a relatively good second quarter ending. For the period ended 30th September 2008, it has managed to maintain its growth levels.

For Q2FY09, on a YoY, its net sales grew 39% at Rs.1511.21 crore. Operating expenses rose 37% and interest outgo rose 94%. PBT was up 21% at Rs.55.75 crore and PAT was up 22% at Rs.36.18 crore. OPM rose from 8.87% to 10.33% and NPM was up marginally 2.73% to 2.39%, indicating the pressure to sustain the margins.


During the quarter company has opened 18 stores. Its retail space has increased from around 7.90 million square feet to around 8.60 million square feet. A days ago, the company had stated that it plans to have a total retail space of 15-16 million sq ft by March and achieve total revenue of Rs.10,000 crore in the current financial year. But later, Mr. Kishore Biyani stated that ongoing slowdown would leave an impact and the company may miss its three-year revenue target.

Diwali has been good for the company. It posted a YoY 87% growth in Diwali sales, the highest growth rate in three years. The company reported sales of Rs.455.34 crore in October 2008 as against Rs.243 core it posted in October 2007. In lifestyle retailing, which includes its fashion apparel store chain Pantaloons, the company recorded a growth of 66% in October 2008. To beat the slowdown, the company is now focusing on value formats and low-cost models. It has also diversified into small convenience store formats called Big Bazaar Best Deals, rural retail venture Aadhar, and home solutions venture Home Town. But will all this result into higher bottom lines for the company, despite the costs, only time will tell.
thanks

EVERONN SYSTEMS Only Expected to Grow

Education is big business in India and given the population and the illiterate, this business is only expected to grow. In India there are 2.80 lakhs private schools and 17625 colleges, so far less than 1% are covered by organized players who provide technology enabled education. Everonn provides virtual and technology enabled learning systems. Currently Everonn has its presence in 4362 school, in 12 states and has aggressive plans to take the number to 5164 in FY09 and to 7514 by FY10.

And going by the performance it has belted out in second quarter ended 30th September 2008, looks like its target could be met. YoY, its consolidated net sales rose 89% and despite a 81% rise in total expense of which employee cost by 98%, the company posted a 151% rise in PAT at Rs.6.51 crore.

In Q2FY09, it managed to add 279 new schools, which is a phenomenal growth given over the last 2.5 years, it was able to add just 500 totally, into the virtual classrooms. Less than 35% business of the company comes from Govt institutions, so to that extent, it’s assured of timely payments, at least for the 65% of its business.

Going by the past track record, the first and the third quarters are usually lean period and all the new business comes in during Q2 and Q4. So if the same trend continues, after a lean Q3, it hopes to have another robust Q4 and expects to end the current fiscal on a high note. In FY09, it has projected a topline of Rs.190 crore and bottomline of Rs.30 crore. Seems a bit too ambitious, given the slowdown and the liquidity crunch.
thanks

Gujarat NRE Coke Results Analysis

Gujarat NRE Coke, country’s largest independent producer of met coke posted a very performance for the second quarter ended 30th September 2008. The second quarter continues to reflect the boom it had in the prices of coke and coal but the coming months would not start reflecting the fall in their prices.

The stock price went ex-bonus from 17th October and is currently at levels of Rs.30. The market is discounting the pressure on margins which the company is bound to face in the coming months. But that apart, which is today not an isolated case with just Gujarat NRE but a reality with all companies, all across the globe, the company remains sound. There have been some concerns about the management but these do not hold much truth, its just a perception which simply cannot be corrected. Infact the promoters have hiked their holding in the company by 4.8% through creeping acquisition route during April-October 2008 and it now stands increased at over 45%. It is also going ahead with its plans for the rights issue with differential voting rights (DVR) to the existing shareholders of the company in the ratio of 1 DVR share for 450 existing equity shares at a price of Rs 1,000 per DVR share.



The biggest positive in favour of the company is its sheer size and its operations in Australia. The company’s present coke production capacity of 1.006 million tonne is being expanded in a phased manner to 1.254 million tonne and 2.254 million by 31st March 2009 and 31st December 2010. It is also the only company owning and operating coking coal mines in Australia and both mines are now in production. During the current fiscal the ROM coking coal production from its two mines is expected to be in excess of 1million tonne and brownfield developments are underway to ramp up the production to beyond 7 million tones by 2012/13.


The long term outlook remains positive. Earnings are bound to take a hit as realizations have come down. But if one looks beyond H2, things look good at the current rate.
thanks

C & C CONSTRUCTION Good infra Stocks

An infra company, engaged in building highways, airports, power generation and transmission and telecom facilities the company would have ended the second quarter on a higher note but for the soaring costs.

For Q2 ended 30^th September 2008, on a YoY, net sales rose by a whopping 162% but a 186% rise in construction costs, 150% rise in employee cost and over 4.5 times rise in interest outgo led to the company post a flat growth. Net profit was at Rs.4.95 crore which is almost equal to Rs.4.93 crore posted in Q2FY08. Revenue from Indian operations rose 225% while overseas rose 53%.

The company has a burgeoning order book. It was awarded two contracts amounting to Rs.202 crores from the Himachal Pradesh Road and Infrastructure Development Corporation, marking its first entry in the state of Himachal Pradesh. Earlier the company had bagged three orders cumulatively worth Rs.209 crores from the state of Punjab under the World Bank aided development scheme. In November it bagged four orders valued at Rs.963 crores for Improvement/Upgradation of State Highway roads from the Bihar Government, of which orders worth Rs.578 crores are with its long standing joint venture partner M/s. BSCPL Infrastructure Ltd. The balance orders of Rs.385 crores are in its own name. These orders have to be executed over an average period of 33 months. With these orders the company's order book now stands at around Rs.1300 crores which it is confident of executing by June 2009.

The company has a healthy order book but rising costs will continue to dent the profit margins. Though it showed a flat bottomline growth in Q2, it could face downward pressure in Q3.
thanks