High risk high return scrips

Sreenath Raghav

DGP Securities (509695) (Rs 367) :- High risk investors should consider taking exposure to the scrip of DGP Securities. According to some market rumors, the scrip is expected to witness a great deal of buying from high networth individuals (HNI). One of the leading broking firms has been recommeding this scrip to their HNI clients. With good amount of buying expected the scrrp is expected to move upwards.

Hydro S&S Ind. (524019) (Rs 55) :- Hydro S&S Industries manufactures and supplies plastic products. According to news given by some market khabri, the company is covered by a small brokerage house, due to which it is expected to appreciate by 15- 20 per cent on the bourses. Investors with high riskppetite may consider this crip.

ANG Auto (530721), (Rs. 100) :- ANG Auto stocks have fallen significantly in the recent market crash. However, according to some market rumours, the AGN Auto management may possibly go for a buy-back in the coming months. If it does happen, this will surely help the scrip to rise amply. If you are an investor with luck on your side, you should seriously consider this Scrip.

Simplex Projects (532877) (Rs 332) :- Simplex Projects is likely to have a positive outlook owing to boom in the infrastructure sector. According to reports collected from some internal sources of the company it is learnt that Simplex Projects is likely to increase its margins in the coming months. This will certainly add significant
value and offer better prospects to the company. Investors who want to take advantage of this hot sector should see this opportunity to make money.

JP Associate (532532) (Rs 219.10) :- JP Associate has seen enough correction in the past few weeks and is deeply oversold close to the long-term supports. An investment buy is advised for the counter as a sizeable rebound is expected because of Jaiprakash replacing Bajaj Auto in the Sensex companies. Due to this big move technical experts expect the scrip to appreciate by 15- 20 per cent from the curren level in the coming days Investors can look at this counter for making a decent gain.

Borosil Glass Works (502219) (Rs 681) :- Borosil Glass is likely to see some action in the coming days because according to some rumour in the market the company is likely to go for some private placement of its equity. Sniffing the opportunity some FIIs are already coming forward to participate. If this development turns out to be true expect the scrip to gain momentum and see it rising on the bourses. Investors should consider this counter and take advantage of the current development of events.

Unitech (507878) (Rs 265.95) :- Unitech is in the areas of construction of industrial projects and execution of housing projects and export orders. The technical call is given for the stock as it is likely to witness 15 to 20 per cent correction within the next couple of weeks as a breakdown from reversal pattern has been spotted on daily chart on above average volumes.

Escorts (500495) (Rs 91.75) :- Escorts Construction Equipment, India's leading multi product construction equipment manufacturer from the Escorts Group is in the news. It is rumoured tha that company is expected to raise funds by selling its stake for further expansion. The institutional investors likely to buy stake in the company will hold substantial stake. If this turns out to be real, Escorts will certainly touch the charts. Investors with risk appetite can look forward to invest in this scrip.

Courtesy : Smart Investments

Sreenath Raghav
Powermoneyindia

Stock Watch : Accurate Transformers Ltd / Spanco Telesystems / ANG Auto Ltd / Greaves Cotton Ltd

Sreenath Raghav

Hi, Read the following stock tips.........

Accurate Transformers Ltd. (Code: 530513) (Rs.86.50) is engaged in manufacturing of power and distribution transformers ranging from 1 MVA to 160 MVA - in up to 220 KV class. It also carries out rural electrification project, which involve electrification in remote areas including the laying of lines, poles and substations.

Unfortunately, despite having installed capacity of more than 8000 MVA, the company is working at very low capacity utilization of less than 50% due to mounting debtors and shortage of funds. However, on the back of the ongoing boom in the power sector and the robust demand for transformers, the situation has improved considerably. Due to better operating efficiency and higher realization, the company is expected to improve its profit margin going forward. It may even grow at CAGR of 50% over the next three years as far as its bottomline is concerned. On a conservative basis, it can clock a turnover of more than Rs.200 cr. with PAT of Rs.8 cr. for FY08. This works out to an EPS of Rs.27 on its current equity of Rs.2.96 cr. As per unconfirmed reports, SEBI has stalled its preferential issue of 31 lakh warrants at Rs.56 and it may have to go in for fresh fund raising programme as per SEBI guidelines. The scrip has reduced to nearly one third from its high of Rs.240. A screaming buy.

******
Spanco Telesystems & Solutions Ltd. (Code: 508976) (Rs.165) offers core competency telecom systems integration, which includes implementation of multi-location, multi-services converged networks for carrying diverse multimedia traffic (voice, data & video) based on latest technologies like ATM, MPLS, Frame Relay, TCP/IP etc. On the other hand, it has bagged a 10-year contract to set up, operate and maintain Interactive Voice Response System (IVRS) and Regional Call Centres (RCC) for the Indian Railways in a joint venture with
the Spice Group. Moreover, it has ventured into the RFID space by acquiring 51% stake in Skandsoft Technologies - a pioneering software solutions company, which is dedicated to revolutionize the upcoming
world of automated business processes through technologies like Radio Frequency Identification (RFID) & Automatic Identification and Data Capture systems (AIDC). It has even formed a joint venture `Spanco-
GKS' with Golden Key Solutions of Oman to replicate its Indian business in the Gulf region as well. For FY08, it may clock a turnover of Rs.625 cr. with profit of around Rs.48 cr. on a standalone basis i.e. an EPS of Rs.23 on its current equity of Rs.20.65 cr. A solid bet.

******
ANG Auto Ltd. (Code: 530721) (Rs.94.45) is among the few companies in the world to be completely integrated – from the manufacture of components to sub-assemblies and assemblies and finally to vehicles.
Today, it is the largest trailer manufacturing company in India with a capacity of 3600 trailers per year and will soon be No. 1 in Asia as it is augmenting the capacity to 6000 trailers. Notably, the company has entered into a 5-year contract with Ashok Leyland for trailers, which is valued at Rs.1500-1800 cr. Secondly, its patented
automatic stack adjuster and the single piece dummy axle is witnessing strong demand from all over the world. Going ahead, it intends to manufacture suspension systems and is also setting up a forging unit at Bhiwadi, Rajasthan, at capex of Rs.37 cr. To consolidate its operations, the company has merged ANG Auto Tech, its
75% subsidiary with itself. On a standalone basis, it is expected to clock a turnover of Rs.120 cr. and profit of Rs.16 cr. for FY08 i.e. an EPS of Rs.13.50 on its current equity of Rs.11.90 cr. Since the conversion price is high at Rs.325, its FCCB of Rs.50 cr. may not get converted into equity. Moreover, finding its
valuation very cheap, the management has obtained the approval to buy back equity shares up to 24.30% of the total paid-up equity capital at a maximum price of Rs.215 per share. A golden opportunity to buy at such low price levels.

******
Part of the B. M. Thapar Group, Greaves Cotton Ltd. (Code: 501455) (Rs.192.50) is engaged in the production of diesel/petrol/LPG engines for power generation, agro equipment and automotives apart from manufacturing gensets, agro equipment and construction equipment Besides, it is also engaged in marketing high technology systems for marine, aviation and electronic applications. Last year, to enhance its presence in the global market, it acquired Bukh Farymann Diesel GmbH (renamed as Greaves Farymann Diesel GmbH), which is engaged in the manufacture and marketing of single cylinder diesel engines and parts for Rs.25 cr. For FY08, it may clock a turnover of Rs.1400 cr. with PAT of Rs.115 cr. i.e. an EPS of Rs.24 on its current equity of Rs.48.80 cr. More importantly, few weeks back Piaggio Group's Indian subsidiary signed an 8 year agreement with the company for purchase of mono-cylinder diesel engines for application on the three-wheeled vehicles manufactured by it. This implies that the company will continue to be a single source supplier of such mono-cylinder diesel engines to Piaggio. A solid bet for long-term.

Courtesy : Money Times

Sreenath Raghav
Powermoneyindia.