Stocks To Watch

2009 March 22

1) Everon Systems India (Rs.139.00) (Code: 532876) :-
The leading company from educational and training sector has not seen any adverse impact of recession and economic crisis at world level, on its performance. Even though the company has not bagged any big orders in recent past the company is expected to give better return in comparison to other companies of the segment. Investors with long term view may invest on the counter to reap benefits.
2) Sintex (Rs. 93.00) (Code:502742) :-

Huge correction was observed in the stock price during last one month. It is believed that there is no reduction in investment in the company by local MF’s even after huge correction in stock price. Stock price has dwindled under the effects of selling pressure created by constant selling by FII. Sintex is planning to investment of Rs. 1800 to 1900 crores to implements
its plans for expansion of its plant. Company has cash reserve of around Rs. 2000 crores. On the other hand company is earning net profit of around Rs. 350 to 400 crores every year. Company is estimated to grow at the average rate of 30 to 35 per cent during next four to five years. Invest in fundamentally sound scrip.

3) Kalptaru Power (Rs.294.00) (Code: 522287) :-

Company is in the segment of transmission line tower manufacturing, which are being used for distribution. Company is supplying its products to Power grid corporations and State Electricity boards. Company is also exporting its products in other countries. Company has recently bagged orders worth Rs. 337 crores from Power Grid Corporation. Company has equity capital of Rs. 26.50 crores. It has EPS of Rs. 30.11 and quotes in the market at PE of 6.42. The stock is a good option for investment.

4) Rolta India (Rs.53.00) (Code: 500366) :-

Company has focused its work on engineering segment, which gives the income of Rs. 10.6 billion to the company. Company is providing engineering solutions to turnkey projects. Company is providing solutions in three different verticals to infrastructure projects. During Q3 ended in December, 2008 company has earned net profit of Rs. 330 crores on gross income of Rs. 2690. EPS of the company is around 35.15. Invest on the counter in a phased manner to reap benefits.

5) SAIL (Rs.88.00) (Code: 500113) :-

Even during tough and challenging hours of the economy the company has maintain its stature as a one of the best and leading company of steel sector. Company is likely to reap benefit from the orders from government. Company has very low debt equity ratio of 0.18: 1. Company has planned capital expenditure of Rs. 53000 crores during FY 2010-10 to increase its production capacity from 14 million tons to 26 million tons. Company has already spend Rs. 3230 crores and has placed orders worth Rs. 36000 crores. Company is also expected to benefit from the reduction in interest rates. Investors may grab the opportunity to invest on the counter.

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