Invetsing tips here..............
Lakshmi Electrical Control (Rs.263.95) manufactures contactors,
thermal overload relays, control relays, electrical control panels
and industrial plastic components.
Its Fy07 EPS was Rs.31 while FY08 EPS is likely to be around
The stock has reacted from a high of Rs.589 to CMP of Rs.263. The
market cap is just Rs.66 cr.
Risk factor is the rising raw material and manpower costs along
with a slowdown in industry, which will affect margins.
Investors can benefit from this reac
tion and accumulate this stock on dips for good long-term growth.
* Patel Airtemp (Rs.46.80) is engaged in the manufacture and sale
of extensive range of Heat Exchangers such as Shell & Tube type,
Finned tube type and Air cooled Heat Exchangers, Pressure Vessels,
Air-conditioning and Refrigeration equipments and Turnkey HVAC
Projects in India and exports. The company has technical
collaboration with M/s. TEK FINS Inc. USA for design and manufacture
of Air cooled Heat Exchangers. All these products are supplied to
leading industrial sectors like Power Projects, Refineries,
Fertilizers, Cement Plants, Petrochemicals, Pharmaceuticals, Textiles
and Chemical Industries.
The order position of the company is good and it is performing well
in the current year. If its first 9 months working is any indication
company, it should report an EPS of around Rs.9 in the current year.
The stock has reacted from high of Rs.145 to the current level
where its market cap is just Rs.25 cr. Accumulate at current levels
or at dips.
* Nava Bharat Ventures (Rs.193.55) is into sugar, ferro alloys and
power generation. It is said to be doing well. The stock has reacted
from a high of Rs.352 to the current level. Investors can keep a
watch to add this stock on reactions.
* PAE Ltd. (Rs.19.25) is in the automotive and non-automotive
(industrial) segments of batteries and components/systems The power
segment presents its new growth opportunities as PAE has launched
power back-up devices and systems and sees excellent growth potential
for them. It is a profit making and dividend paying company. In the
current year expected EPS is around Rs.5/6. Last dividend was around
10%, which is likely to rise to 12% in the current year. At present,
market cap is just Rs.19 cr. The stock has reacted from a high of
Rs.54 to the current level of Rs.19 where it looks very attractive
* Torrent Cables (Rs.180) - Those who booked profits at higher
levels can add this stock at the current level of Rs.180 or on dips.
Full year expected EPS is Rs.38/40.
*ABG Shipyard (Rs.595) is another fundamentally strong stock, which
investors can add on reaction.
* Sesa Goa (Rs.3160.95) - Firm iron ore price may give a good push
to this stock.
* Investors should take advantage of this free fall of mid-caps and
accumulate fundamentally strong stocks with good dividend yield like
PNB Gilts, First Leasing, Tata Metalik, Central Bank, Andhra Bank,
Oriental Hotels, Supreme Industries to name a few.
Courtesy : Money Times