TODAY’S CALLS PROFIT PERFOMANCE-31-10-14

TODAY’S CALLS PROFIT PERFORMANCE-31-10-14

DOLPHIN OFF BUY AT 198 PROFIT AT 202- RS4 PER SHARE,

SINTEX BUY AT 93 PROFIT AT 96- RS.3 PER SHARE,

STOCK FUT- 31-10-14

KOTAK BANK BUY AT- 1109 PROFIT AT 1125- RS16XLOT SIZE,

RELINFRA BUY AT 610 PROFIT AT 640- RS.30XLOTSIZE,

BHARTI ARTL FUT SELL AT 406 COVER AT 399-RS7 XLOTSIZE,

BHARTI ARTL 400 PUT BUY AT 9 PROFIT AT 11-RS.2XLOTSIZE,

BTST BTST NIFTY FUT BUY AT- 8170 PROFIT AT 8300-130POINTS,

BTST NIFTY 8200 CA BUY AT 105 TODAY CLOSED AT 200- CLIENTS HOLD NOW,

 Today lot our clients - delivery holds profit booking today.

TODAY’S CALLS PROFIT PERFOMANCE- 30-10-14

TODAY’S CALLS PROFIT PERFOMANCE- 30-10-14

INSECTCID BUY AT 825 TGT 830 845 +SL. 785

PROFIT BOOK AT 875- RS.50 PERSHARE,

HEXAWARE BUY AT 194 TGT 198 SL. 191

PROFIT AT 198- RS.4 PERSHARE

THOMAS COOK BUY AT 164 PROFIT AT 168- RS.4 PERSHARE,

STOCK FUT-30-10-14

BHARAT FORG BUY AT-788 PROFIT AT 800- RS.12X1000-RS12,000

YESBANK FUT BUY AT 652 TGT 670 SL. 646

PROFIT AT 662- RS10X1000-RS.10,000 PERLOT.

NIFTY FUT-

NIFTY OCT BUY AT 8105 TGT 8125 8150 SL. 8090

NIFTY FUT GO TO 8170 LEVEL- OUR PROFIT BOOK AT 8150- 45 POINTS

NIFTY- 8100 OCT  CA BUY AT 20 PROFIT AT64- 44 POINTS

TODAY MOTHERSUMI 430 CALL BUY AT 1.50 SELL AT 2.50

 

TODAY TRADING CALLS-30-10--14

CMIFPE 500147 CMP.569.90 ENTER AT 575576 TGT 19% UPPER CIRCUIT EXPECTED SL. 569 

BERGERPAINT BUY AT 405 TGT 409 414 SL. 400
SELL AT 400 TGT 395 390 SL.405
THOMASCOOK BUY AT- 165 TGT 169 172 SL. 162,50 
SELL AT 162 TGT 159.50 156.70 SL. 165,70

TODAY’S CALLS PROFIT PERFOMANCE- 29-10-14

TODAY’S CALLS PROFIT PERFOMANCE- 29-10-14

TATA ELXSI SELL AT 742 COVER AT 726-RS.18 PERSHARE,

(TO CLIENTS THIS CALL TYPE MISTAKE SEND WITH BUY CALL.

THIS MISTAKE TAKE INCHARGE OF BOMBAY BROKER OFF-)

SRF BUY AT 800 BTST CLOSED AT UPPERFREZZ AT 807 LEVEL.

CCL BUY AT 135 PROFIT AT 139- RS. 4 PERSHARE,

TVS MOTOR BUY AT 256 CLOSEDAT 254- LEVEL.

TATAMOTORDVR BUY AT 327 SL. 320 TGT 340 (POSITIONCALL)

10DAYS- TODAY CLOSED AT 329.25 LEVEL,

STOCK FUT CALLS- 29-10-14

PNB FUT SELL AT 916 COVER AT 906 –RS.10 PERSHARE,

ICICIBANKFUT BUY AT 1604 SL. 1598 TGT 1617

STOCK MOVE TO 1608-

HAVELLS FUT BUY AT 275 SL. 264TGT 290

STOCKMOVE TO 280 LEVELONLY

STOCK OPTIONS- 29-10-14

HEROHONDA 3100 CA BUY AT 16 PROFIT AT 18- RS.2XLOTSIZE,

PFC 280 CA BUY AT 6.50 PROIT AT- 8.00- RS.1.50XLOTSIZE,

ICICIBANK 1600 PUT BUY AT 15 PROFIT AT 18- RS.3 XLOTSIZE,

RANBAXY 630PUT BUY AT 8 PROFIT AT RS10-RS.2 XLOTSIZE,

30-10-14 F&O EXPIRY THIS 2 RS.1 RS, VERY HIGH RISK,

 

 

 

SKMEGGPROD MULTIBAGGER – TAMILNADU COMPANY- CMP.70.25 TGT 700 WITH IN 5 YEAR TIME

SKMEGGPROD MULTIBAGGER – TAMILNADU COMPANY-

If we strictly track the history of any stock which turned as a multi-bagger, there will be at least one niche element in it. Sometimes it may be the product/service itself, and in some other cases it may be its brand ,technology , market or something like that  .If the number of listed stocks from a particular industry is very limited and there is a boom period for that  business , normally the listed market leader  will turn as a multi-bagger, if it is backed by a management which is able to utilize the emerging business opportunities. One very good example for this fact is the recent appreciation in Avanti Feeds Ltd. ,the stock  I  recommended  about three years back @ just Rs.68 and  currently trading above Rs.1525 ( Recommendation , Just pointed as an example and not a guarantee for similar performance in all other cases). This week let us look into another really interesting unknown niche stock – SKM Egg Products Exports Ltd. CMP.70.25 TGT 700 WITH IN 5 YEAR TIME

SKM EGG PRODUCTS EXPORTS  - A CLOSE LOOK

 

This company is jointly promoted by well known SKM group and Tamil Nadu Industrial Development Corporation Limited(TIDCO) .Out of the Rs.26 Crore equity , TIDCO holding about 7.58 % and Individuals from promoter group holding another  46 % stake.( This data is based on June quarter share holding and promoters made lot of market purchases in June-September period) .Belgium based Belovo Engineering holding another  5 % stake in SKM .Belovo Engineering is part of BNLfood Group which supplying  Egg Science & Technology ,producing and marketing eggs, egg derived nutraceutical ingredients and food ingredients. Plant of SKM itself established with the technical support and collaboration of  BOLOVO.Company’s manufacturing facility is located at Cholangapalayam  , about 20 Km from Erode in Tamilnadu .This is one of the largest Egg processing facility in Asia and this state-of the art facility is located in a 35 Acre plot. Under stringent quality conditions , company processing around 18 lakhs eggs per day and manufacturing Whole egg powder, Albumen powder ( Powder form of Egg White), Yolk Powder(Yellow) and recently introduced liquid Eggs.These products are supplied mainly to Japanese and European companies for manufacturing products like cakes, biscuits , cookies, Confectionery products, Health foods, Soup mixes, Ice creams , dairy products ..etc. SKM established direct Subsidiary/marketing points in its major markets viz- Netherlands,Japan and Russia.Selling to other markets channelized through  third party distributors.Since the number of producers are less and India’s cost effective and competitive advantages ,company is getting repeat orders from its customers. SKM’s  products are ultimately used by large food product manufacturing MNC’s  like Kraft foods .Heinz..etc. for manufacturing bakery , health care and food items.

 SKM is the only listed producer of Egg Powder and other value added products from Eggs .Even from the unlisted space , only very few companies are manufacturing similar products in India which includes an unlisted private company named Venkateswara Food Products Pvt Ltd owned by the same promoters of Venky’s India and another Bangalore based  company which listed in BSE but suspended from trading for more than 13 years.Among these few players ,SKM is the market leader in Egg powder exports and contributing more than 50% of India’s total egg powder export.As of now, company processing about 18 lakhs eggs per day and utilising close to  90 % capacity to manufacture its major products Viz- Egg Powder ,Bakery Mix and Liquid Egg.These products are exporting to overseas markets mainly  Japan and EU countries.Out of 18 lakhs eggs , about 5 lakhs produced from  company owned farms and the remaining is sourcing through contract farming model( Mainly through an associate company  named SKM Universal Marketing Ltd) . In order to ensure the quality of Eggs , company itself supplying feeds manufactured by company controlled (leased)  feed mill  to the farmers and company appointed veterinary doctors and supervisors periodically visiting farms running under contract farming agreements.Earlier, during its tough times company's share holders approved the sale of feed mill and farm , but only the selling of feed mill executed ( now working on lease)  .This business model ensuring sourcing of quality eggs without interruption which is otherwise a herculean task to source close to 20 lakhs quality eggs per day.Promoter’s experience in poultry field is one important point to note. This company was originally promoted by Mr. SKM Maeilanandhan who is the doyen of poultry industry in India who also  Honoured with the Padma Shri award for his outstanding contribution in the field of social work in 2013.

 Having said , being a food product , export of these type products  to developed countries is not an easy task.Stringent quality standards and periodic quality  checking are usual in an industry like this before getting final approval for exports and usually these formalities take many years to complete.In the beginning, company faced many challenges in this front and it affected SKM’s past performance. From past troubled times company emerged as a winner under the able leadership of Mr. SKM Shree Shivkumar who is the MD of the company and son of Mr. SKM Maeilanandhan. 

 FINANCIALS 

 During the peak of recessionary period , it reported losses in FY 2011 and 2012 due to various reasons like lower demand, poor realization and most importantly some quality related issues due to its dependency on  outside quality testing laboratories. But with early signs of revival , company’s new products introduction and tapping new markets  ,SKM made a remarkable turnaround in FY 2013 and further improvement in latest FY 2014.(See the below table for details) . 

 

 To avoid any quality related  issues in future , company  established own quality testing lab  and R&D facilities.

   As per the thoughts shared during recent AGM , company is now paying top priority to become a debt free company ( excluding working capital debt) in near future. As part of this effort , company already reduced its debt from Rs.51 Cr to Rs.34 Cr in last FY  and further reduced it in  first six months of ongoing FY .( Half of the loans are taken from promoters itself which they pumped into the company to keep it afloat at the time of extremely difficult periods few years back.) It is targeting a debt free status in next two years . After achieving this target ,SKM is planning to hike its capacity to reach a Rs.500 Cr company by 2017-18.

 To avoid any quality related  issues in future , company  established own quality testing lab  and R&D facilities.

   

As per the thoughts shared during recent AGM , company is now paying top priority to become a debt free company ( excluding working capital debt) in near future. As part of this effort , company already reduced its debt from Rs.51 Cr to Rs.34 Cr in last FY  and further reduced it in  first six months of ongoing FY .( Half of the loans are taken from promoters itself which they pumped into the company to keep it afloat at the time of extremely difficult periods few years back.) It is targeting a debt free status in next two years . After achieving this target ,SKM is planning to hike its capacity to reach a Rs.500 Cr company by 2017-18.

 To avoid any quality related  issues in future , company  established own quality testing lab  and R&D facilities.

   

As per the thoughts shared during recent AGM , company is now paying top priority to become a debt free company ( excluding working capital debt) in near future. As part of this effort , company already reduced its debt from Rs.51 Cr to Rs.34 Cr in last FY  and further reduced it in  first six months of ongoing FY .( Half of the loans are taken from promoters itself which they pumped into the company to keep it afloat at the time of extremely difficult periods few years back.) It is targeting a debt free status in next two years . After achieving this target ,SKM is planning to hike its capacity to reach a Rs.500 Cr company by 2017-18.

 Major Negatives

 Company is an export oriented unit and any  recession severe than the previous one  may negatively impact the demand scenario of its products.

 Company’s earnings is in Dollar and Euro and its movements against Indian Rupee may impact its margins.

 Though company sourcing part of its Egg requirements from own farms , any adverse change in the price of feed ingredients may affect its raw material cost.

 Un-expected diseases affecting birds may create problems.

 Major Positives.

 As I mentioned in many of my previous  postings ,while investing in small cap stocks , promoter quality is the first point to note.The most important positive point about this company is its promoters and management , not only because of their experience in this field but due to their highly ethical business practices and ‘Nothing to Hide’ mentality even towards its minority retail share holders.I believe ,In these matters , it is difficult to find many companies with this standard from the small caps space .

 Potential of company's product is very high and, there is only very few companies in this field. SKM is the market leader handling more than 50% of India’s total egg powder exports.

 India is one of the low cost producer of Eggs and this giving added  competitive advantages to the company . SKM captured Japanese market by competing even with American companies which indicating its high quality standards.

Entry barrier - As mentioned earlier , procuring 18 laks Eggs per day is not easy to replicate by any new entrant in this field. Company established own farms to source part of this requirement and planning to expand the capacity of farm when it add more production capacity in its factory.Contact farming is also designed in a systematic way where company ensuring the quality of feed and arranging periodic visit of veterinary  doctors to ensure the health of birds and provide awareness to farmers in order to ensure the quality of Eggs to be processed.Since the end consumers are large MNC food companies they ,always need large quantity at stringent quality standards . To ensure this quality standards ,it should be careful right from the beginning.Any available  egg can’t be processed but it can use only the eggs laid by birds fed with specially prepared diets , so special arrangements should be there to ensure this quality and any available eggs in the market or at the gate can’t be accepted.Sourcing close to 20 lakhs such eggs per day continuously is an extremely  difficult task.Situation is more tough in the selling side . By competing with foreign firms ,company took years to established the label of a reliable and quality supplier in overseas markets. Being a food ingredient ,import permission to developed countries is not easy and even in the case of Russian market ,SKM succeeded only recently after four years continuous efforts.

Because of these reasons , still there is hardly four or five successful egg product processors existing in India. Full traceability of end product is an important factor in export oriented food stuff business. To ensure this ,SKM introduced a system named “TRACKKER” which helping the company  to trace from feed ingredients level to final product level.

                                             

 

 Scope of company’s products is very vast and so far it not touched the biggest market –USA. This may happen once the production capacity hiked to double in next few years and company’s financial health improve further .

 

Using its own R&D , company introducing new products and its recently introduced liquid Eggs receiving  overwhelming response from customers. Considering the increasing cholesterol related health issues , liquid white egg may turned as a money spinner for SKM in the years to come. Company also succeeded in increasing the shelf life of products and this will help to penetrate more overseas markets.

 

During the time of  last recession its business badly affected mainly because of its higher concentration in few markets .To avoid such a situation in future SKM is now expanding its geographical presence .Company’s years long efforts to get an entry in Russian market succeeded recently and they got approval from Russia now. Company started trial shipment  and it is expected to become a priority market for SKM in future. Company also  entered in Nigeria and South African Markets recently.

 

 

Promoters efforts to become a debt free company is not a gimmick and they are working sincerely for that ,which is evident from the reduction in debt levels in recent times. Targeted debt free status by next few years will give direct positive impact in its bottom line and make this already attractive company as a compelling buy.

Once, majority of the shares of promoters were pledged with banks to avail loan facility ,but now  only 24 % is pledged and balance released on repayment of loan. Remaining is  expected to become pledge free  in next 2-3 years.

 

Another most important factor is the multi angle benefit to the company due to global recovery. From  last few year’s financial performance , it is evident that even a small  positive change in global economy augers well for SKM .It is helping the company in three different ways

 

·        Increased Demand from foreign markets

 

·         Being an Export Oriented Unit , appreciation of Dollar and Euro against Indian Rupee is positive for the company 

 

·       Strengthening  of Dollar will reduce the competitiveness of US manufactures in foreign markets especially in Japan  where SKM’s major competitors are US manufactures.

 

 

There is no big local market for processed egg as of now. But history says , In case of India ,  imitating the trends of food habits from developed markets is an eventuality . This will happen in future for sure. In such a situation , the peer company with years experience will benefit a lot and it will help the company  to de-risk  its business model by reducing over dependence on export – if necessary – in future.

 

 

Cost control efforts taken by management and their attention even in minute factors is another important point if we look through the eyes of  a minority share holder. Usage of recycled waste water to irrigate the garden and lawn in front of the factory is an example for this zero wastage strategy. They are even selling egg shells and earning few thousands in each year.

 Conclusion 

 I believe SKM Egg Products Export is a company operating in an Industry with huge potential in future and at the same time with high entry barrier.Most important point is the Management’s  high ethical standards they exhibited even during their tough times. I strongly believe, god will always with such people and lead them into more success. This is one rare company from the micro cap space I can assure one thing – if there is any  failure for this company in future ,it will be only because of a reason beyond the control of promoters and its management.That much is the efforts they are taking to bring back the company into the right direction and further growth.For FY 2013-14 , on a consolidated basis company reported a Sales of Rs.264 Cr , a net profit of 7.20 Cr and an EPS of Rs.2.76. Stock of SKM appreciated post declaration of full year result and currently trading around Rs.60 .Prima-facie on a P/E based valuation method , this is neither cheap nor expensive.But to get a fair picture about last year profit ,we should dig deep. This 7 .20 Crore profit arrived after providing an Exchange fluctuation loss  of Rs.7.36 Crore and another one time expense of Rs.4.15 Cr. Considering the chance for stability in Rupee value ( compared with last year)  less forex loss is a possibility in current year .In the case of the mentioned one time expense incurred in last year , there is no chance to repeat it again. If we consider these two important hidden factors,valuation picture will change positively. In addition to this , company’s debt reduction will directly impact its bottom line and EPS figures going forward.Along with this quantitative figures, SKM’s market leading position, robust business plans with introduction of new products and penetrating new markets supported by a highly ethical management which is taking every effort to reach a debt free   Rs.500 Cr company in next few years  makes its an attractive pick for long term investors even at current level. 

  Listing 

 During its worse time in 2011-12 ,company sought share holders approval to de-list its stock from BSE and remain listed only in one exchange. In the 17^th AGM of the company, share holders approved a special resolution for this purpose and hence at present SKM Egg Product Exports is trading only in NSE( De-listing procedures from BSE yet to completed and theoretically still it is listed in BSE but suspended from trading )  and currently trading around Rs.70

Disc: It is safe to assume that, I have vested interest in it as a share holder.

  SOURCE -FROM- SKM INDIA NAMAKAL  

OUR TOWN THURAIYUR- NEAR BY NAMAKAL. 

THIS OWNER IS FAMILY FRIEND BY VEDATHRI MAHRSHI- MANDRAM. VALKA VALAMUDAN-

TODAY STOCK OPTION CALLS PERFOMANCE- 28-10-14

RANBAXY 610 CA BUY AT 13 -PROFIT AT RS30-RS.17X LOTSIZE,

SUNPHARMA 810 CA BUY AT 14 PROFIT AT 34- RS.20 X LOTSIZE

ORIENTBANK 260 CA BUY AT12 PROFIT AT RS18- RS.6X LOTSIZE,

DLF 110CA BUY AT 7 SL HIT AT RS5-RS 2 X  LOTSIZE,

TODAY’S CALLS PROFIT PERFOMANCE-28-10-14

TODAY’S CALLS PROFIT PERFOMANCE-28-10-14

NCC BUY AT 45 TGT 47.50 50 SL. 43

PROFT AT- RS.50- RS.5 PERSHARE,

OREINTBANK BUY AT 268 TGT 272 277+ SL. 265

PROFIT AT 280- RS12 PERSHARE,

RSSOFTWARE- BUY AT 650 PROFIT AT 690- RS.40 PERSHARE,

STOCK FUT- CALLS- PREMIUM

RANBAXY FUT BUY AT 608 PROFIT AT- 640- RS.32PERSHARE SL.600

BANKINDIA SELL AT 269 SL HIT AT 273-RS.4PERSHARE LOSS

RELINFRA BUY AT 567 TGT 571 575 SL. 560

PROFIT AT 575-RS. 8 PERSHARE,

STBT CALLS-PREMIUM

BAJAJ-AUTO FUT SELL AT 2520 COVER AT-2480- RS.40 PERSHARE,

HEROMOTOCO-FUT SELL AT- 3095 COVER AT 3020- RS.75 PERSHARE,

NIFTY FUT BUY AT- 8020 PROFIT AT 8040- 20POINTS SL. 8000

NIFTY 8000 CA BUY AT 35 PROFIT AT 55-RS. 25XLOTSIZE.

 

TODAY’S CALLS PROFIT - 27-10-14

TODAY’S CALLS PROFIT - AND LOSS- 27-10-14

CASH CALLS- 27-10-14 SMALL TRADER PACK-

RADICO BUY AT 92 TGT 93,94 SL. 90.50

PROFIT AT 94- RS. 2 PER SHARE,

SINTEX BUY AT 91 TGT 92.50 95 SL. 88.50

PROFIT AT- 94- RS. 3 PER SHARE,

STOCK- FUT-CASH

AXISBANK BUY AT 425 TGT 430 SL. 422

PROFIT AT 429- RS 4PERSHARE,

BHEL BUY AT- 245 TGT 251 SL. 242

PROFIT AT 250- RS. 5 PER SHARE,

PREMIUM –STOCK FUT- CASH

HERO MOTOCO SELL AT-3095 TGT 3088 3066 SL. 3120

PROFIT AT 3066- RS. 29 PER SHARE,

BAJAJ –AUTO SELL AT- 2520 TGT 2500 2470 SL. 2545

PROFIT BOOK AT 2505- RS. 15 PER SHARE,

PREMIUM STOCK OPTIONS

HEROMOTOCO 3100 PUT BUY AT 35 TGT 40/45 SL. 25

PROFIT AT- 45- RS.10X LOT SIZE.

BHARAT FORG 780CA BUY AT 14 TGT 16 SL. 10

PROFIT AT -16- RS. 2PER SHARE,

SOME PEOPLE GET SL HIT. THEY MAKE WRONG TRADE-

NIFTY JACKPOT-

NIFTY SELL AT- 8030 TGT 7980 SL. 8060 -11.37AM,

PROFIT AT 7995- 35 POINTS,

NIFTY OPTION JACKPOT- 11.30AM,

NIFTY 8100 PUT BUY AT 80 TGT 90 100+ SL. SL.70

PROFIT AT 109-30=29.30 POINTS

 

 

30 stocks with potential for strong RETURN OF EQUITY gains HELLO ANAYLSIS EXPERTS YOU GIVEN TIPS BELOW STOCKS WHAT IS FUT –UP –DOWN-

HELLO ANALYSIS EXPERTS YOU GIVEN TIPS BELOW STOCKS WHAT IS FUT –UP –DOWN-  

HELLO WE ARE IN BACK OFF YOUR TV SHOW TIPS GIVERS GIVE THIS REPORTS TO YOU SEE A LAP TOP AND HAVE A PAPER OR OUR REPORTS  WE ARE WORK FOR HIM BUT THEY GET NAME FROM U THIS IS TRUE YES EXPLAIN YOUR SUMMARY BELOW STOCKS – STOCK VISE SUMMARY WE HAVE IN OUR POCKETS,

                                               

                

 BSE 500 companies, about 30 are likely to witness ROE expansion of over 300 basis points each in FY15 and FY16. Of these, 12 are likely to turn profitable over the period of FY14-16 versus a loss in FY14, while four are likely to report high earnings per share (EPS) CAGR over FY14-16 - namely, JaiPrakash Power Ventures (up 334.1%), Ramco Cements (up 311.9%), Motilal Oswal Securities or MOSL (145.6%) and Gujarat Fluor chemicals (118.6%).

Improving prospects Return on Equity (%) EPS CAGR (%) FY16E P/E (x) Company FY15E FY16E Bajaj Electricals 16.5 22.6 LTP 14.1 Birla Corp 10.9 14.5 66.7 9.7 Blue Dart Express 22.7 26.4 26.0 62.9 Capital First 8.3 13.1 68.7 13.9 Carborundum Universal 12.3 15.9 50.7 17.0 Crompton Greaves 12.0 16.0 67.1 17.4 Gujarat Fluor chemicals 12.3 20.1 118.6 9.1 Hathway Cable -3.7 3.2 LTP 116.0 HSIL 7.3 11.4 94.6 20.1 India Cements 3.1 6.6 LTP 12.9 Indiabulls Power 2.5 7.0 LTP 7.2 Jain Irrigation 8.3 12.6 32.5 12.5 Jindal Saw 7.6 10.8 LTP 4.4 JK Cement 8.4 12.5 81.2 15.2 JK Lakshmi Cement 11.2 15.2 58.3 17.2 Jubliant Life Sciences 10.7 15.8 105.9 5.2 Mahindra CIE Automotive 8.0 12.5 LTP 16.2 Motherson Sumi 36.4 40.4 53.6 19.0 Motilal Oswal Financial 12.5 18.6 145.6 12.7 Oberoi Realty 10.9 14.8 54.8 9.7 Phoenix Mills 11.1 15.4 60.4 16.2 Prism Cement 4.4 18.3 LTP 17.2 PVR 18.0 22.2 45.9 23.3 Ramco Cements 12.5 18.3 311.9 3.7 Shoppers Stop 4.8 12.0 LTP 67.5 Tata Communications 21.2 32.3 85.8 30.4 Trent 5.9 10.2 LTP 32.8 Tribhovandas Bhimji Zaveri 16.1 20.0 43.1 12.8 TVS Motor 28.0 36.1 49.4 27.7 United Spirits 9.0 15.0 LTP 50.3 E:Estimates; LTP is Loss to Profit; EPS CAGR is over FY14-16 Source:  TO YOUbrokerages "The key reason for expansion in RoE is that most of these companies are unlikely to raise fresh capital in the next couple of years and management will focus on delivering stronger earnings. Also, if a company can issue debt at a lower interest rate than the rate of return on its investments, its ROE can increase."

The valuations of some of these companies, however, have partially captured the improving prospects. 13 of these 30 companies are trading at 15 times or less their FY16 estimated earnings - at par/below Sensex which is trading at about 15 times estimated FY16 price/earnings. Of the rest, seven companies are trading between 16 times and 20 times FY16 estimated earnings, and nine companies are trading at 20 times and above. While Lanco is expected to report losses, Hathway Cable and Datacom, Shoppers Stop and Blue Dart Express have the highest valuations of 63-116 times.

"We believe that valuations as of now do offer opportunities to make reasonable returns over a three to five year period. If the required reforms do happen as per expectations then the recovery may be stronger, which would further propel earnings’ growth rate/RoE expansion. This would then make the current valuations more attractive"TEAM RAJATHEE

 

DELIVERY CALLS - FANTASTIC 25-10-14

 

Pipavav Defense and Offshore Engineering Ltd

Buy Pipavav Defense and Offshore Engineering Ltd  at 41 Target 88 Stop loss 30.80

The previous rise in the stock was a clear five-wave rise wherein wave 2 was an expanded flat pattern and wave 4 was a zigzag pattern. This five-wave rise completed a larger wave (1), following which wave (2) retraced 86% of wave (1). Now, it seems that the wave (3) has begun which has an equality target of Rs88. The stop loss for this trade is the swing low of wave (1), ie Rs30.80. Hence, the risk/reward ratio is quite favorable for bulls. The daily Know Sure Thing (KST) has come well into buy mode whereas the weekly KST is about to provide a buy cross-over. So, based on the above observations we recommend buying the stock

Mangalam Cements Ltd 256.20

Buy Mangalam Cements Ltd  At 256.20 Target 561 Stop Loss 179

The stock has provided a clear break-out from the symmetrical triangular pattern of which wave E was an overshoot. The volumes had increased during the break-out which is one confirmation of an uptrend. The weekly Moving Average Convergence Divergence (MACD) is in sell mode but the monthly MACD is well in buy mode and that increases the probability of an up move. The minimum equality target on the upside comes to Rs561 whereas the stop loss on the lower side is pegged at Rs179  just below the break-out point. So the risk/reward ratio at the current market price of Rs 239 is very favorable for the bulls. Based on these observations we recommend buying the stock for the above mentioned targets.

Network 18 Media & Investments Ltd

Buy Network 18 Media & Investments Ltd  At 50.30 Target 100 Stop Loss 33

The stock has been correcting since June this year. Our sense is that the stock is in a strong up trend and the current fall should be used as an opportunity to buy into it. The stock is currently trading near multiple supports, it is trading around the 40-week moving average it is also trading around a medium-term rising support trend line. In terms of Fibonacci retracements, it has reached the 61.8%retracement level of the rise from Rs28 toRs72, which is also a crucial support. It has been consolidating near these crucial supports and we sense that it is forming a base for the next up move. We expect this crucial support area to hold good and the stock should resume its uptrend very soon. Investors can buy the stock at the current market price for targets of Rs72, which is the high it touched in June this year, and Rs100, which is a psychological level. A stop loss should be placed at Rs33

Eros International Media Ltd

Buy Eros International Media Ltd  At  244 Target 393 Stop Loss 190

The stock has been consolidating in a sideways manner since early September this year. Our sense is that it is consolidating in wave 4 of a larger degree impulse formation, ie we expect the stock to form wave 5 on the upside. The current consolidation can continue for some more time and investors can use this as an opportunity to accumulate the stock at the current levels and add more if it falls to Rs215 levels. Rs215 is the 38.2% retracement level of the rise from Rs106 to Rs 283. Wave 2 of the stock was sharp which retraced 61.8% of wave 1.Hence, we expect wave 4 to be sideways as per the guideline of alternation, which should terminate around the 38.2% retracement level(Rs215). The targets on the upside are placed atRs349, which is the target for a truncated wave5, and Rs393, which is the equality target (Wave1 = Wave 5). A stop loss should be placed at Rs194

Snowman Logistics 101.60 TGT 135 COMING MONTH NOV

Snowman Logistics (SLL), an integrated temperature-controlled logistics services provider, operates 23 temperature-controlled warehouses across 14 locations in India (including Kolkata, Mumbai, Delhi, Chennai and Bengaluru). It plans to set up another such 6 and 2 ambient warehouses at 6 cities at the cost of around Rs 140 core.

The client base of the company is also strong, which include various industry sectors such as dairy products, ice creams, chocolates, pharma, seafood, fruits and vegetables, and poultry and meat. Top 20 customers contributed 44 percent of total revenues in the year ended March 2014. Some of the prominent clients are Hindustan Unilever, Novozymes South Asia, McGain Foods India, Karnataka Co-operative Milk Producers’ Federation, Graviss Foods, Saguna Food, West Coast Fine Foods India etc.

To improve the customer proposition, Snowman’s has introduced various value added services such as knitting, labelling, sorting, packing and re-packing of goods. Such services add significantly to SLL both in term of value to clients as well as bottom line. Further, consignment services such as indenting, order booking, invoicing, etc. for select customers improves SLL’s USP. SLL, being the largest cold chain solutions provider, has huge potential for growth in the organized services sector.

Domestic temperature-controlled logistics industry is estimated at Rs 12,000-15,000 core and is expected to grow at 15-20 percent year-on year  for the next three to five years. With the strong growth prospects of cold chain industry and company being a leading integrated cold chain player in India with presence across the value chain of the industry, the stock looks good for long term We recommend a BUY on the stock with a target of Rs.135.

 Biocon Ltd.

 From the Pharma space, BIOCON has underperformed significantly as compared to its peers whereas the long term trend for the stock is still up.

  Monthly support for the stock is seen at 420-425 levels; CMP 475

  Trade with a positive bias above 475/480 Targets at 575/600; CMP 479.95

SL close below 450

Bharat Heavy Electricals Ltd.

 BHEL has been consolidating in the range of 200-240 for quite some time now.

 It is in yearly uptrend, Previous year high of 245.7; low of 100.15 and close of 176.9. Current year High of 291.5 low of 145.55 Cmp 240  Bullish gap as seen on charts is between 202-208 and bearish gap between 237-235.

Max OI of PE seen at 210 PE strike indicating Strong support at 202-210 levels.

Wait for this rate  Buy in the dip range of 215-220 stop loss close below 202 Target 260/290; CMP@240.40

 

 

 

MULTI BAGGERS PERFOMANCE

RS SOFTWARE RECOMMENDED ON AUG 12TH 2014 AT- RS.430 PEAK FROM RECO- RS.830 -93.02% 

MINDA INDUSTRIES- RECOMENDED - SEP-15TH 2014 AT- RS.434 PEAK FROM RECO RS.565 30.27% UPSIDE 

EICHER MOTORS JUL 30TH 2013 AT RS.354 PEAK FROM RECO- RS.12732.50 -3399.50% UPSIDE GAIN

HAWKINS COOKER JUN23RD 2013 RECOMMENDED ATRS. 119 PEAK FROM RECO- RS.3583.95 GAIN 2905.41%

AVANTI FEEDS MAY 27 TH 2013 AT RS.109 PEAK FROM RECO 1742.55 -1498.67% GAIN - DELIVERY RECOMENDS