Gail India (Rs. 348.00) (Code : 532155) : The GAIL India stock gained 10 per cent in three
trading sessions last week on some positive news. The company stands to be a key beneficiary of
the draft hydrocarbon policy announced earlier last week. If implemented, this will free pricing of
domestic gas (currently regulated), which would boost gas production. This means utilisation of
GAIL and other gas pipeline companies could improve significantly over the next few years. GAIL
has been operating its pipelines below 40 per cent utilisation for the past few quarters. Second,
Mumbai’s sole authorised distributor of CNG and PNG - Mahanagar Gas- has filed its draft prospectus
on November 16, in which GAIL is looking to sell about 14 per cent stake (of its nearly 50
per cent shareholding). This monetisation will rub off favourably on GAIL and improve its cash
kitty. Mahanagar Gas is India’s third largest city gas distribution company and a higher than estimated
initial public offering (IPO) valuation would give a leg-up to GAIL’s sum of the parts
valuations.Two leading brokerages BNP Paribas and Goldman Sachs, recently upgraded the
stock.The stock is risk free at this level and has huge opporutnity. Buy.
Danlaw Technologies India Ltd: For multi-bagger gains (BSE Code: 532329) (CMP: Rs. 60.75) (FV: Rs.10)
The earnings season so far has been weak and worries over domestic growth continue to weigh on the market sentiment which has led the markets back on the downward path.. A value investor, however, need not worry about the broad markets as value stocks perform better and post good results. One such value-pick is Danlaw Technologies India Ltd. (DTIL). Company background: DTIL is the offshore technology and product development center of its parent company - Danlaw Incorporated, founded by Mr. Raju Dandu and Mr. Lloyd Lawrence in Michigan, USA in 1984. DTIL’s mission is to provide high quality services and products in Automotive Electronics, develop R&D driven Signal Processing technologies for communication and control, configure solutions and provide exceptional Information Technology (IT) services in the areas of education, health, banking and e-governance and provide world-class products and solutions for secured access through biometric access control technologies with intellige...
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