Sunday, February 21, 2010

Tide Water Oil Co

Tide Water Oil Co.

Tide Water Oil Co. (I) Ltd., is a part of the multi divisional Andrew Yule group that has diverse interests in Engineering, Electrical, Tea Cultivation, Power Generation, Digital Communication Systems and Lubricants.

Tide Water has been a pioneer of Automotive and Industrial lubricants in India since 1928 and has five plants at Howrah, Oragadam, Turbhe, Silvassa and Faridabad.

Products...

Veedol Engine Oils which is available in different variants like Automotive oil, Industrial Oil, Industrial Grease, Automotive Grease and Eneos.

The company also has technical collaboration with Nippon Oil Corporation, the No.1 petroleum conglomerate in Japan. Superior quality lubricants under the brand name Eneos are manufactured and marketed in India by Tide Water Oil.

Quarterly Results..

The company's Q3 net profit was at Rs 14.51 crore.

The company's trailing 12-month (TTM) EPS was at Rs 479.66 per share. (Sep, 2009)

The dividend yield of the company was 0.61%.

The company's trailing 12-month (TTM) EPS was at Rs 479.66 per share. (Sep, 2009)

Valuations

Equity
Tide water – 87 lakhs (0.87 Crore)

EPS (4 trailing quarters)
Tide water – 586

Book Value
Tide water – 1708

Market Price/Book Value
Tide water – 3

P/E
Tide water – 8.6

As Comapred to its peer Castrol the stock is under valued and can be accumulated at every dips for long term invesmtent.

Havells India

Havells India Limited


Havells India Ltd. is one of the largest & India's fastest growing electrical and power distribution equipment manufacturer with products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial & Industrial applications, Modular Switches, & Bathfittings covering the entire gamut of household, commercial and industrial electrical needs.

Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Luminance, Linolite, & SLI Lighting.

Quarterly Results..

Havells India Q3 net profit up at Rs 58.9 cr

Its net sales were up at Rs 591 crore versus Rs 486 crore.

The company's trailing 12-month (TTM) EPS was at Rs 27.20 per share. (Sep, 2009)

Havells has now ventured into retailing through its initiative called ‘Havells Galaxy’ to provide one-shop solution to the consumer looking for electrical and bath fittings products.

Future Expansion..

Havells’ plans to extend its product portfolio by introducing CMH, a new generation lighting which has a high CRI (colour rendering index) and is considered the closest substitute for natural light.The company also wants to deepen its penetration in Western India.

Valuations..

Based on the growth plans & expansion in the future the stock does not look over valued and is trading at a PE of 14x times its estimated FY10 earnings. At the Current levels stock remains an attractive BUY for investors.


Research Team, Multibaggers.in

Saturday, February 20, 2010

Bhushan Steel Limited

Bhushan Steel Limited

Bhushan Steel Ltd is a globally renowned one of the leading prominent player in Steel Industry. Backed by more than two decades, of experience in Steel making, Bhushan Steel is now India’s 3rd largest Secondary Steel Producer company with an existing steel production capacity of 2 million tones per annum’s (approx.)

The Company has manufacturing in the three states of india like Uttar pradesh, Orissa and Maharashtra. The Product line has variety of products such as Cold Rolled Closed Annealed, Galvanized Coil and Sheet, High Tensile Steel Strapping, Colour Coated Coils , Galume Sheets and Coils, Hardened & Tempered Steel Strips , Billets, Sponge Iron, Precision Tubes and Wire Rod.

Quarterly Results

The Company has posted a net profit of Rs 2274.30 million for the quarter ended December 31, 2009 as compared to Rs 207.40 million for the quarter ended December 31, 2008. Total Income has increased from Rs 10064.00 million for the quarter ended December 31, 2008 to Rs 14546.40 million for the quarter ended December 31, 2009. EPS grew manifold in quarter ending December 2009 and stood at Rs.53.55. TTM ( Trailing twelve months ) EPS stood at 165.97

Investment Rationale

Efficient tie-up with Japanese firm Sumitomo.
Acquisition of Bowen Energy

Capacity expansion

Bhushan Steel has Rs.20,000 crore as expansion plans through Bengal Steel project. It’s a Greenfield steel plant and it will be put up in a new company. Sumitomo is very keen to have a stake in the new steel company. The project is still at a nascent stage and the land acquisition will take some time. Once that is done the project will not be commissioned earlier than 2014-15. The steel project in Bengal is definitely a large investment and the company is looking for a JV with Sumitomo.

Valuations

With the acquisition of bowen energy, Strong Relationship with Sumitomo and a plan to setup steel project in bengal are the key drivers for the growth in coming future also the capacity expansion at it's orissa planet to 5 million ton by oct 2012 will add value.

The stock is Currently trading at PE of 9.7 to its TTM earnings & 3 times its book value of 477.79. Since the stock offers good opportunities it become a attractive long term BUY for investors.

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Research Team, Multibaggers.in

Friday, February 12, 2010

Sahyadri Industries Limited

Sahyadri Industries Limited

Sahyadri Industries Ltd. is a well known group in Building Material Industry based at Pune. Their Product line Includes manufacturing of corrugated sheets required for roofing purpose & accessories required for roofing purpose. They have an entire range of roofing systems, irrespective of the type of construction.

Future Expansion

Sahyadri Industries has recently forayed in to the power generation space Using the non-conventional energy resources like wind & Solar. They have planned to invest in 6 wind mills in the state of Rajasthan & Tamil Nadu. The WindPower generation from the tamil nadu facility will be consumed by their Manufacturing plant in Perundurai and the power generation at Rajasthan will be sold to the state Ulility.

They also generates carbon emission reduction which may be negotiated for price in international market under Clean Development Mechanism, subject to completing formalities and obtaining certificate of carbon emission reduction as per Kyoto Protocol.


Company Clients.


They have range for client from sectors both private & public sector companies like Food corporation for india, Indian Oil Corporation, HPCL, Central Railways, Alfa laval, M&M, RCF, Bharat Forge and Jindal Aluminum. They also export to very many customers in Middle east & Africa.

Recent News.

Sahyadri Industries bags two awards Sahyadri Industries Ltd. bags award for the “Best Performing Windmills” second year in a row.

Sahyadri Industries is planning to raise long term funds through further issuance of equity shares on Qualified Institutional Placement (QIP) and / or preferential allotment basis to basis.

Valuations


SIL is likely to post an EPS of Rs 33 in FY10, which would further go up to Rs 38 in FY11. The support levels are around Rs 90 and thereafter at Rs 85. Investors With Long term view can look at this stock for investment with a target for 160 to 200 in 18 to 24 months.

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Research Team, Multibaggers.in

Saturday, February 6, 2010

Hindustan Zinc Limited


Hindustan Zinc Limited is India's largest and world's second largest integrated producer of zinc & lead, with a global market share of approximately 6.0% in zinc. They are one of the lowest cost producers in the world . Hindustan Zinc is a subsidiary of the NYSE listed - Sterlite Industries (India) Limited (NYSE: SLT) and London listed FTSE 100 diversified metals and mining major - Vedanta Resources plc.

Hindustan Zinc's current metal production capacity is 754,000 tonnes per annum (669,000 tonnes of zinc and 85,000 tonnes of lead). The ore mining capacity stands at 7.40 million tonnes per annum. They also own 314 MW of coal based thermal captive power plants in Rajasthan to support their metallurgical operations.

Quarterly Result

Hindustan Zinc has announced its third quarter results of FY10. Its net profit increased to Rs 1,148.7 crore versus Rs 935 crore, on quarter-on-quarter basis (QoQ).

Net sales jumped to Rs 2,216.7 crore from Rs 1,789.6 crore (QoQ).

The company's trailing 12-month (TTM) EPS was at Rs 60.92 per share. (Sep, 2009).

The stock's price-to-earnings (P/E) ratio stands at 13.14.

Hindustan Zinc Will the be largest Zinc producer in the World in coming time with amount of cash reserves on its balance sheet investors can hold this stock in their portfolio for rich earnings in near future