Kalpana Industries (Rs.87) - Engaged in manufacturing XLPE and PVC compounds, Kalpana industries was incorporated in 1985. For the full year, net profit rose 93.20% to Rs.9.95 cr. in FY07 as against Rs.5.15 cr. during FY06. Sales rose 64.65% to Rs.310.32 cr. in FY07 as against Rs.188.47 cr. during FY06.
For Q1FY08, net profit rose 170.75% to Rs.3.98 cr. as against Rs.1.47 cr. during Q1FY07. Sales rose 86.23% to Rs.103.73 cr. in Q1FY08 as against Rs.55.70 cr. during Q1FY07.
The company has shown consistent performance in last five quarters. Investors can keep a watch on this stock for investment on reactions.
* Alumeco India Extrusion (Rs.24.80) is a Hyderabad based company earlier known as Pennar Profiles Limited.
Presently the main demand for aluminium extrusions is from construction, automobiles, white goods and industrial goods such as pneumatics, hydraulics, textile machinery etc. The usage of aluminium as an alternative is catching up in construction industry and the market demands are very encouraging.
This company earlier had problems because of the huge debt on its balance sheet. Last year, they negotiated a one-time settlement (OTS) with lenders wherein it paid off 53% of the outstanding principal. The balance principal along with interest and penal charges has been waived off. This has made the balance sheet of the company almost debt-free. Its debt has come down from about
\u003c/p\>\n\u003cp align\u003d\"justify\"\>\u003cfont face\u003d\"Times New Roman\"\>Another big development in Alumeco is a change in management control. It has been taken over by Alumeco Group of Denmark. Alumeco Group in Denmark mainly operates in Northern Europe and they have a turnover of close to 1 billion Danish Krones. \n\u003c/font\>\u003c/p\>\n\u003cp align\u003d\"justify\"\>\u003cfont face\u003d\"Times New Roman\"\>After takeover, it infused more capital into the company, and has also taken preference shares in the company. \u003c/font\>\u003c/p\>\n\u003cp align\u003d\"justify\"\>\u003cfont face\u003d\"Times New Roman\"\>The takeover by Alumeco will help the company procure its raw materials at more competitive prices because of the scales. In future, we may see Alumeco infusing more capital into the company and they may make India a sourcing base because of the cost advantage. \n\u003c/font\>\u003c/p\>\n\u003cp align\u003d\"justify\"\>\u003cfont face\u003d\"Times New Roman\"\>After takeover by the new management, it was consolidation period for last 18 months and it is expected that the company would do very well in coming years. \u003c/font\>\u003c/p\>\n\u003cp align\u003d\"justify\"\>\u003cfont face\u003d\"Times New Roman\"\>Alumeco A/S, Denmark, who is the main shareholder with 60% stake through a holding Company namely OSI India Holding A/S, Denmark has ozone facilities for conversion of extrusions into automobile components in Germany, Denmark, Sweden, Finland, Norway, Italy and Switzerland. They buy about 1,00,000 tonnes of aluminium extrusions per year from China, India, Europe and South America. Alumeco India is supplying 6,000 tonnes per annum to the Danish parent which is 8% of their total requirement. Alumeco does not hold any equity in any other extrusions company across the globe other than its unit in India\n\u003c/font\>\u003c/p\>\u003c/font\>\u003cb\>\u003cfont size\u003d\"3\"\>\u003cfont face\u003d\"Times New Roman\"\>. \u003c/font\>\u003c/font\>\u003c/b\>\u003cfont face\u003d\"Times New Roman\" size\u003d\"3\"\>\n\u003cp align\u003d\"justify\"\>It is a good company for investors who believe in catching companies, when the visibility of earnings is not there but where the outlook is encouraging. \u003c/p\>\u003c/font\>\u003cb\>\n\u003cp align\u003d\"justify\"\> \u003c/p\>\u003cfont size\u003d\"3\"\>",1]
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Rs.45 cr. to about Rs.4 cr.
Another big development in Alumeco is a change in management control. It has been taken over by Alumeco Group of Denmark. Alumeco Group in Denmark mainly operates in Northern Europe and they have a turnover of close to 1 billion Danish Krones.
After takeover, it infused more capital into the company, and has also taken preference shares in the company.
The takeover by Alumeco will help the company procure its raw materials at more competitive prices because of the scales. In future, we may see Alumeco infusing more capital into the company and they may make India a sourcing base because of the cost advantage.
After takeover by the new management, it was consolidation period for last 18 months and it is expected that the company would do very well in coming years.
Alumeco A/S, Denmark, who is the main shareholder with 60% stake through a holding Company namely OSI India Holding A/S, Denmark has ozone facilities for conversion of extrusions into automobile components in Germany, Denmark, Sweden, Finland, Norway, Italy and Switzerland. They buy about 1,00,000 tonnes of aluminium extrusions per year from China, India, Europe and South America. Alumeco India is supplying 6,000 tonnes per annum to the Danish parent which is 8% of their total requirement. Alumeco does not hold any equity in any other extrusions company across the globe other than its unit in India .
It is a good company for investors who believe in catching companies, when the visibility of earnings is not there but where the outlook is encouraging.
* Uni Abex Alloy Products (Rs.109) \u003c/p\>\u003c/font\>\u003c/b\>\u003cfont face\u003d\"Times New Roman,Times New Roman\" size\u003d\"3\"\>produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys. Manufacturing quality of its alloy products is its prime focus. As a leader in alloy steel castings, Uni Abex has made a significant contribution to various industries in the last three decades. The company has reported better results for Q1 and should do better in the remaining quarters, as the demand for its products is good. Last year, when nickle prices had shot up sharply, it could pass it on only partly to its customers. But now with the sharp fall in nickle prices margins of the company should improve. \n\u003c/font\>\u003cfont face\u003d\"Times New Roman,Times New Roman\"\>11 \u003c/font\>\u003cfont face\u003d\"Times New Roman,Times New Roman\" size\u003d\"3\"\>\n\u003cp align\u003d\"justify\"\>The company is also entering a joint venture for reformer tubes used in refineries & petrochemicals. \u003c/p\>\u003c/font\>\n\u003cp align\u003d\"justify\"\>If its Q1 results are any indication, the company should report EPS of around Rs.27/30 for the full year. Keep watch on this stock to add on reactions. \u003c/p\>\n\u003cp align\u003d\"justify\"\>* Western India Shipyard (Rs.18.40) - There is a good market for Ship repairs as the average age of the Indian fleet is 15 years. Government policy towards ship repairs continues to remain encouraging with license free and duty-free imports. The company is trying to improve its competitive edge by cost cutting, improving quality, productivity and faster turnaround. Being on the west coast with its proximity to international shipping routes, it has an edge. Being an ISO 9001:2000 quality ship repair yard with certification from BVQI (Bureau Veritas Quality International) and a global customer base and CDR under implementation, company look forward to better performance. Positive reports are pouring in, as there is indication that company likely to come under the management of ABG Shipyard. Stay invested or add on reactions. \n\u003c/p\>\n\u003cp align\u003d\"justify\"\>* Ramsarup Industries (",1]
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* Uni Abex Alloy Products (Rs.109) produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys. Manufacturing quality of its alloy products is its prime focus. As a leader in alloy steel castings, Uni Abex has made a significant contribution to various industries in the last three decades. The company has reported better results for Q1 and should do better in the remaining quarters, as the demand for its products is good. Last year, when nickle prices had shot up sharply, it could pass it on only partly to its customers. But now with the sharp fall in nickle prices margins of the company should improve. 11
The company is also entering a joint venture for reformer tubes used in refineries & petrochemicals.
If its Q1 results are any indication, the company should report EPS of around Rs.27/30 for the full year. Keep watch on this stock to add on reactions.
* Western India Shipyard (Rs.18.40) - There is a good market for Ship repairs as the average age of the Indian fleet is 15 years. Government policy towards ship repairs continues to remain encouraging with license free and duty-free imports. The company is trying to improve its competitive edge by cost cutting, improving quality, productivity and faster turnaround. Being on the west coast with its proximity to international shipping routes, it has an edge. Being an ISO 9001:2000 quality ship repair yard with certification from BVQI (Bureau Veritas Quality International) and a global customer base and CDR under implementation, company look forward to better performance. Positive reports are pouring in, as there is indication that company likely to come under the management of ABG Shipyard. Stay invested or add on reactions.
* Ramsarup Industries (
\n\u003cp align\u003d\"justify\"\>* Investors are advised to stay invested in Futura Polyester (Rs.27.7) for better times ahead as per informed sources. \u003c/p\>\n\u003cp align\u003d\"justify\"\>* Nocil (Rs.22.40) - There is good operational improvement in the working of Rubber Chemical Division. The company has huge land there is likely development plan. Investors can keep adding this stock slowly on dips with a long-term view only. \n\u003c/p\>\n\u003cp align\u003d\"justify\"\>* Yuken India's (Rs.184) opportunities for sustaining profitable growth emerge from its increasing acceptance of outsourcing as a relevant business strategy in globalized world as well as its new range of products that can be offered to customers. Some of the key trends in the industry are favourable to the company to exploit. These emerging opportunities are 1) customers are more comfortable in continuing to partner with it; 2) customers are also demanding delivery excellence from distributed units adopting an uniform process globally for quality services. \n\u003c/p\>\n\u003cp align\u003d\"justify\"\>This is a very optimistic statement from management in its recent annual report for FY07. Investors can look forward to much better times ahead. \u003c/p\>\n\u003cp align\u003d\"justify\"\>* During this correction, investors can keep watch to add GSFC (Rs.200), Emami (Rs.210), Fortis Financial (Rs.98), Karnataka Bank (Rs.171.70), Torrent Cables (Rs.195.60), RPG Cables (Rs.43) and IDBI (Rs.116.30\n) for \u003c/p\>",1]
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Rs.130) with an EPS of Rs.25 for FY07 looks very attractive at P/E multiple of 5/6. The outlook of the company is very encouraging and it can report EPS of around Rs.40/42 for the current year. The stock, if it catches attention of fund managers of FIIs, may give good returns to investors over the next one year.
* Investors are advised to stay invested in Futura Polyester (Rs.27.7) for better times ahead as per informed sources.
* Nocil (Rs.22.40) - There is good operational improvement in the working of Rubber Chemical Division. The company has huge land there is likely development plan. Investors can keep adding this stock slowly on dips with a long-term view only.
* Yuken India's (Rs.184) opportunities for sustaining profitable growth emerge from its increasing acceptance of outsourcing as a relevant business strategy in globalized world as well as its new range of products that can be offered to customers. Some of the key trends in the industry are favourable to the company to exploit. These emerging opportunities are 1) customers are more comfortable in continuing to partner with it; 2) customers are also demanding delivery excellence from distributed units adopting an uniform process globally for quality services.
This is a very optimistic statement from management in its recent annual report for FY07. Investors can look forward to much better times ahead.
* During this correction, investors can keep watch to add GSFC (Rs.200), Emami (Rs.210), Fortis Financial (Rs.98), Karnataka Bank (Rs.171.70), Torrent Cables (Rs.195.60), RPG Cables (Rs.43) and IDBI (Rs.116.30 ) for investments on reactions
