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.”

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.

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.

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.

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.

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

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.

Scrip: – Moser Baer Ltd.
CMP: – 110
BSE Code: – 517140
Market Cap: – 1884.09
52 week H /L: – 344.80 – 87.90

Summary: –
Moser Baer India Limited is an India-based company that is principally engaged in the business of manufacture and sale of optical storage media. The Company also has presence in business areas, such as solar energy, entertainment, information technology (IT) peripherals and consumer electronics. In the home entertainment segment, the Company has commenced film production in multiple languages. The Company’s Photovoltaic domain commenced its commercial operations during the fiscal year ended March 31, 2008. In the home entertainment segment, the Company has commenced film production in multiple languages. As of March 31, 2008, it offers home video titles in Hindi, English, Tamil, Telugu, Malayalam, Kannada, Marathi, Gujarati, Bengali and non-film categories. Its products are sold in approximately 80 countries. As of March 31, 2008, it had introduced new products, such as BDR 1X-6X, DVDR 8X Dual Layer, Double sided recordable discs, Diamond CDR and Archival Media.

Key Financial: –
EPS and PE both running negative making no financial sound.
The development will surely change the phase of the company.
This will be seen on the balance sheets of the company.

Development : -
Lots of development happening around. the recent 6.5% stake sale is a good tactic to raise funds.
I feel this will surely benefit. The amount raised would go towards capacity expansion of the firm’s crystalline silicon and thin film solar verticals, largely at its Greater Noida facility. While the crystalline silicon cell manufacturing capacity would go up from 80 mega watt (MW) to 180 MW, thin film capacity would be increased from 40 MW to 120 MW by next year.

The firm plans to spend about $400 million on capex this fiscal, which would be part funded by the amount raised. The PV business had earlier received Rs 400 crore in private equity funding in November 2007. The business reported revenues of $43 million in 2007-08. With the latest round of funding Moser Baer will holds 93.5% stake in the PV subsidiary.

Moser Baer’s thin film PV business comes under PV Technologies India, while the crystalline silicon business is operated by another arm, Moser Baer Photovoltaic Ltd. Though crystalline silicon is more widely used in PV market, Moser Baer is banking more on the thin film technology.

So, its thin film capacity would be ramped up to 600 MW by 2011-12, while crystalline silicon capacity would go up to 200 MW. “Thin film has the potential to capture 15-20% of the global PV market in the next three years. It has lower cost compared to crystalline silicon and efforts are on to increase its efficiency, which is currently lower than crystalline silicon,” said Moser Baer CFO Yogesh Mathur. The solar market has grown from $13 billion in 2005 to an estimated $40 billion this year. It is further expected to grow to $50-70 billion by 2010.

This stock is only for long term Investors.
One can expect good returns in long term.

Scrip: – Financial Technology.
BSE Code: – 526881
CMP: - 1421.35
Market Cap: – 6,522.36 Cr
52 Week H/L : – 2855.00 – 1340.00

Summary: -
Financial Technology one of the favourate of investors floated by Mr. Jignesh Shah.
Financial technology has many products working in the financial trading markets. . It has products like ODIN, Inet.net, iWin, FXDirect, etc. These cover all stages of trading – pre trade, trade and post trade. These products cater to Exchanges, Brokers, AMCs,, Depositories, Custodians, Banks, etc.
Financial technologies has set up two commodity exchanges Multi Commodity Exchange (MCX) and Dubai Gold and Commodity Exchange (DGCX). Over the next few years the commodities market is expected to experience exponential growth and Financial Technologies should be a huge beneficiary.
And Also has Stake in Singapore Mercantile Exchange.

Analysis: -
I am recomending this scrip as MCX IPO is awaiting to enter the markets.

The total value of India’s agri produce is equal to US $ 85 billion. Assuming a multiple of 10 times to the commodities futures market the total size should be to the order of US $ 850 billion. It stands at less then US $b 2 billion today.

Financial: -
At a PE of 6.78 the stock looks attractive and cheep.
Paid a divident of 200% this year on a FV of 2.

” This is a best scrip only for Long Term Investors”

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.

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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