Value Research

*Intraday & Short Term News For Monday* *Fii And Dii News*   *TCI FINANCE LTD (501242 & NSE) (31)*   Incorporated in 1973, TCI Finance Ltd (TCIFL) is a Non-Banking Finance Company (NBFC) registered with the RBI and engaged in the business of Inter-Corporate Deposits, investment in equities of bodies corporate etc.   The Company was promoted by Mr. Mahendra Agarwal, who is also the Managing Director and CEO of Gati Ltd, a pioneer in express distribution and supply chain and promoted by TCFIL   The Rs.2 paid-up share of Gati Ltd currently trades at Rs.113. TCIFL has one subsidiary - ITAG Business Solutions Ltd engaged in the business of Knowledge Process Outsourcing (KPO) in the domain of Intellectual Property Services.   *It is co-promoter of GATI LTD. Company is holding 55,12,455 shares (5.09%) stake in GATI LTD. At CMP value of investments is around Rs.62.3crore. Equity is Rs.12.87crore. Thus value of investment works out to Rs.48.4 per share ...

Caprihans India Limited is one of the largest manufacturers of PVC Films in India and has got expertise of more than 35 years in this field. It manufacturers a wide variety of PVC films both Flexible & Rigid and also Sheets/Boards made from other polymers like ABS, PP, HDPE and Rigid PVC. The films are calendared while the sheets/Boards are extruded. Caprihans India Limited is a Public Limited company and became a part of EVC group in 1997. EVC was acquired by the  INEOS group in 2001. The INEOS Films business was acquired by Bilcare in 2010. Caprihans India Limited is today part of Bilcares´ Solutions Division. The company has 4 calendaring lines, 3 extruder lines, 2 lamination and coating lines as also printing and embossing lines at its production units at Thane and Nasik, near Mumbai. It has an equity base of just Rs.13.13 crore that is supported by reserves of around Rs.99.93 crore which is 7.61 times higher than equity. It has a share book value of Rs.86.09 & price...

SSPDL LTD  It is a small company having presence in South India. It has presence in Chennai, Hyderabad, Kerala and Bangalore. Only BSE listed company. But Circuit Filter is at 20%. From Annual Report: Company is primarily focusing on the development of land, plotted lands, mid-size houses, etc. and reduce the construction contracts work. In view of the projects of the Company under execution and in pipe line, the management is expecting better prospects in future for the company. During the year under review Company given loan of Rs 2.80 crore bearing 18% interest per annum to M/s. BHEL Employees Model Mutually Aided Co-operative House Building Society Limited for meeting the shortfall of amount in paying stamp duty for registering plots in Society’s Name. Projects completed during the year 2014-15: - (1). Frangipani, Pudupakkam, and (2). Meeting House/Service Centre, Bangalore. Regarding Ongoing Projects: 23 Cr is yet to receive from IT park (Alpha City pro...

KLRF Ltd: Hidden gem (BSE Code: 507598) (CMP: Rs.58.50) (FV: Rs.10) Kovilpatti Lakshmi Roller Flour Mills Ltd (KLRF) with its brand named ‘Kuthuvilakku’ came into existence in 1964 with the establishment of 46,800 MT of wheat flour mill at Gangaikondan in Tamil Nadu. The Company operates in five business segments: Flour Mill Division: The flagship division of the Company has an installed capacity of 74,000 TPA but operates at 70% capacity utilization with 30% spare capacity. From a traditional stone mill, it has transformed itself into a well-known manufacture of branded whole meal Atta that has more fibre, minerals and vitamins and is rich in aroma. The Company’s product portfolio comprises the entire range of wheat flour products that meet the demand of bakeries, paratha makers, hoteliers, sweet shops & confectioneries and domestic end-users. KLRF is a pioneer in tapping the high margin retail segment by launching 1/2 kg and 1 kg packs of Atta that are well-accepted by cons...

Buy For Intraday At 331 With Intraday Target 342 To 252

Cineline  company  of  the Kanakia group has  9  multiplexes  in  Mumbai  which  are  leased  to  PVR  Cinemas.  Apart  from  its  own  multiplex  theatres  company’s  Eternity  Mall  in  Nagpur  was  given  for  rental  basis  to leading  brands  this  year  and  enjoys  100%  occupancy. The  Company’s  income  mainly  comprise  of  rental  income  from  multiplexes  and  the  Eternity  Mall.  The  Cineline  share  is  currently  trading  at  6  times  its  FY15  earnings  and  3  times  its  EBITDA.  It  is  available  at  cheap  valuations  as  compared  to  its  peers  ‐...

Vinati  Organics  (BSE Code: 524200   ) A leading brokerage house has advised its clients to invest in Vinati Organics, the largest manufacturer of ISO Butylbenzene (IBB) and ATBS in the world. The company exports its products to 22 countries with export earnings contributing to around 65 per cent of its total turnover. The company is growing from strength to strength and during the last five years, its sales turnover has more than doubled, from Rs 325 crore in fiscal 2011 to Rs 772 crore in fiscal 2015 and the net profit shoot up by around 125 per cent. The company is doing quite well even in the current year also with the half year net profit amounting to Rs 62 crore as compared to Rs 52 crore in the corresponding period last year.

 An An investment banker is bullish on Navkar Corpora-tion, which had entered the capital market last August to raise around Rs 600 crore, and of late, the logistics sector is in the limelight with the company providing container freight station (CFS) services and trading activities. At present the company has three CFS, two at Ajivali and one at Somarthane all near Panvel, Maharashtra. For fiscal 2015, it had earned a net profit of Rs 74 crore on a total income of Rs. 332 crore. And with the prceeds of the issue the company has started setting up a logistics park at Valsad, near Vapi. At the same time, the capacity at Panvel is also being raised. The benefits of these growth plans will be reflected in the company’s balance sheet from the year ending March 2017.

  STAR PAPER MILLS LTD  (516022)   (29.35) Star Paper Mills is engaged in manufacturing of paper and paper related products. Incorporated in 1938, the company is part of Duncan Goenka Group. Star Paper has received ISO 9001:2000 and ISO 14001:2004 certifications for its quality management. To produce its raw material, the company owns 34983 hectare on which 270 lakhs saplings have been grown spread across seven districts of western Uttar Pradesh and two districts of Uttranchal. The company has started Clonal Technology Programme with an intension to increase the yield per unit area. The paper major has developed fully automatic green houses and hardening chambers at Tapri for production of clonal plants. Star Paper Mills produces range of products used in industrial, packaging and cultural papers catering to almost all segments of consumers. The company has an installed manufacturing capacity of 75,000 tonnes per annum of paper and paperboard. Its clients include ...

Expected In Coming Days Bullish Trend Start In Market Expected Sensex Cross 29000 Before March 2016 Nifty Overview : On Friday, Nifty closed at 7874 levels. Last week, Nifty showed a positive momentum thus opening the next level till 8100. On downside, the major support is still at 7570 levels. However there is inter-mediate support at 7700 levels. A break below 7700 can drag nifty at lower levels. Bank Nifty Overview : On Friday,  Bank Nifty closed at 16845 . Last week, we suggested creating buy position above 16775 and it made a high of 16937. Now with positive weekly closing, bank nifty can go till levels of 17150. Bank Nifty would see lower levels below 16600/16400 i.e sell position can be created below 16600/16400 levels. ARSS Infrastructure Projects Ltd. (CM Rs 50.40) :- ARSS Infrastructure Projects Ltd., after making public issue of shares, was listed on the BSE in March, 2010, when it made a debut at Rs 640 and shot up to a high of Rs 1416.20 within a short time of ...

A stock market analyst from the south who recently visited all amusement parks of Wonderla Holidays to gause the effect of the abnormal rains in south India on the footfalls in the company’s amusement parks in Kochi, Hyderabad and Bangaluru has insisted that the adverse impact of the abnormal rains on the company’s financial performance will only be temporary and the numbers will be affected marginally  in the current year only. What is more the new amusement park which has come up at Hyderabad will start earning good from the next year. As a result, the financial performance of the company may be muted for the fiscal 2016 but quite encouraging from the next year onwards. Afterall, Wonderla is a strong brand in south India and offers valuefor- money entertainment option for the people in that part of the country. But for the rains, the company can bank on more and more consumers scounting for better week-end entertainment option.

NELCAST ( STOCK FOR SHORT TERM GAINS) Nelcast is one of India’s largest suppliers of ductile iron and grey iron castings ranging from 0.5 kg to 260 kg. Total capacity is 1.50 lakh tonnes. Parts required for various applications in automobiles such as engine, transmission, suspension, axle, brake and steering are manufactured. The tractor industry sources components for its requirement of various housings as well as engine, transmission and axle components. Other users include the railways and the pipe fittings industries. From catering to the commercial vehicle (CV) industry since 1985 and the tractor industry since 1988, there has been diversified into other industries to fulfill their casting needs. The products cater to the global automotive, tractor, construction, mining, railways and general engineering sectors. Customers include some of the leading global companies in these sectors. Clients include original equipment manufacturers Motors, Ashok Leyland, Tafe, Eicher Trac...

PRAKASH WOOLLEN & SYNTHETICS MILLS  (531437) (25.10) (Face Value Re.10)   Prakash Woollen & Synthetic Mills Limited produces and sells blankets and bed covers in India. It provides 2-ply mink, baby, fleece, mink, plain and embossed mink, and soft blankets; and comforters and comforter sets. The company was formerly known as Prakash Woollen Mills Limited and changed its name to Prakash Woollen & Synthetic Mills Limited in July 2015. Prakash Woollen & Synthetic Mills Limited was founded in 1973 and is headquartered in Moradabad, India.   It has an equity base of Rs.10.26crore. Promoters hold 62.88% stake in the company. It has recorded net sales of Rs.38crore and net profit of Rs.0.85crore in H1FY16. It’s 52 week high rate is Rs.48 & low rate is Rs.18.55. Something is looking in this stock & some punters are active in this stock.   Therefor risky Investors can buy this stock keeping strict stop loss of Rs.22. On the upper side stock will z...

Buy at Around 42 With Short Term Target 51

Control Print (Rs. 465.00) (Code : 522295) : Control Print Limited is India’s first Coding and Marking solutions manufacturers and is one of the fastest growing players in the industry.The company is known for providing cost effective products and solutions for the entire range of manufacturing industries which include Automotive, Agro-Chemicals, Metals, FMCG, Pharma, Food & Beverage, Wire, Cable, & Pipe and Commercial Printing.Customers include Tata Steel, ACC, Holcim, UltraTech, Unilever, etc.Debt Equity ratio is very comfortable at 0.08:1, current ratio is equally comfortable at 3.06:1.The company is targeting to increase its market share from present about 15% to 25% in next three years.Promoter stake has steadily increased during last five years from 45.76% to 53.14%. The Board of Directors of Control Print Ltd at its meeting held on November 17, 2015, has considered and approved the issue of fully paid-up Equity Shares as "Bonus Shares" to the existing sharehol...

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) va...

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...

Tata Consultancy Services  (TCS), the country’s largest software company and also the most valuable company with market capitalization of Rs 4.86 lakh crore. The stock is currently offering a dividend yield of 3.2% based on dividend of Rs 79 per share paid for the financial year ended 31 March 2015 (FY 2015). The dividend is on the higher side owing to the special dividend of Rs 40 paid last fiscal. Sans the special dividend, the dividend yield works out to mere 1.6% considering the dividend per share (DPS) of Rs 39. What is the point in investing in TCS for such pathetic dividend yield? This will be the obvious question popping up in the minds of investors. Now if one digs a little bit deeper, what emerges is the fact that it makes tremendous sense to invest in TCS. Here is the hidden story. The software company came out with an initial public offering (IPO) in August 2004. The shares were offered at Rs 850 per share. In mere two years after listing, the company issued bonus s...

Hyderabad-based  VST Industries  is popular with mutual funds, which held 8.58% stake end June 2015. The business comprises cigarettes and unmanufactured tobacco. Presence is largely in the value or affordable segment, with brands such as Moments, Special and Charms. Discriminatory and exponential excise hike on 64-mm cigarette in FY 2015 adversely affected the sales volume, which declined 6.9% to 7,540 million pieces. The UK-based British American Tobacco owns 32.16% stake, with a representative on board. There is no debt on the balance sheet, with current investment of Rs 171.2 crore and cash of Rs 42 crore. NRB Bearings  is another stock popular with the institutional investors. Mutual funds held 15.42% stake end June 2015. Incorporated in 1965, the leading manufacturer of ball and roller bearings commands a market share of around 13% in the domestic organized sector. The three subsidiaries are SNL Bearings, NRB Bearings (Thailand) and NRB Bearings Europe GmbH. ...

An equity analyst tracking metals and steel sector cautions  against the bullish reports being published by a couple of bro- kerage houses for JSW Steel. No doubt this leading steel com- pany is well managed, but the analyst opines that the steel in- dustry is still facing several challenges globally, and it may take  several years to r ecover. In these circumstances, the chances of the scrip crossing Rs. 1200-mark appear to be remote. Little  wonder, in the second quarter of FY 16, the company’s sales have come down by 21.5 per cent to Rs. 10,743 crore as com- pared to Rs. 13,692 crore in the corresponding quarter last year  and the profit at net level has nosedived from Rs 749 crore to Rs  118 crore, a drop of 84.2 per cent. The second quarter results  would have been worse but for the good show by a couple of  overseas subsidiaries. The disastrous economic meltdown in  China will not allow the steel industry to stage a recovery for 6 to...