Many of you repeatedly in my mail have asked for paid calls and what they will be and all.Now as an amateur and being a social guy I would always safeguard the vested interest of investors than something else.The open blog is a place for me to give guidance..paid blog is for the one who needs those calls and my bigtime guidance desperately.Anyways here"s an example of a paid member call and the type which I provided just few days back.
Saturday, July 4, 2009
Market outlook,Stock tip-Pratibha Industries Ltd
Scripscan:Pratibha Industries Ltd
cmp:176
Target:218
Return percentage:25%
Duration:3-5 months
Traded on:Nse-bse
Story:Pratibha Industries Ltd (PIL) is into design, engineering and construction of water transmission and distribution projects, water treatment plants, reservoirs, mass housing projects, commercial complexes, pre-cast design & construction, road construction and real estate. Pratibha Pipes & Structural (P) Ltd (PPSPL), a fully-owned subsidiary, is into submersible arc-welded pipes.PIL started by manufacturing manhole covers and pre-cast iron products. It then went into mass housing projects, doing work for Indian Railway Welfare Organisation, Army Welfare Housing Organisation and municipal corporations (Pune, Thane and Akola). Today, 60% of its revenues come from water management projects, while urban infrastructure projects constitute 32% of its order book; road projects account for the rest. In the roads and bridge construction segment, it has tried to overcome its limitation of size and profile through alliances with contractors like Petron Civil Engineering, Unity Infraprojects, SOMA Project, etc. For the urban infrastructure segment, PIL has tied up with Ostu-Stettin of Austria (for tunnelling projects) and Grontmij of the Netherlands (for car parks).The company has an order book position of over Rs2,200 crore ranging from one year to four years.For the pipes business, to be done under PPSPL, PIL has set up a spiral pipe manufacturing plant for oil and gas pipe transmission projects on EPC and PPC basis. The helical (spiral) saw pipes (capacity of 92,000tpa, which is already commissioned) also have a huge potential for water supply and sewerage transportation and structural requirements. PIL aims to diversify into complex highway construction projects, hydrocarbon projects, civil work for power generation and waste-water treatment in the near future. While PIL has managed to diversify its revenue, a large part of it comes from the water segment. The problem with the business is that almost all water projects are controlled and awarded by state governments. Competition is intense and often not on merits. There are delays in executing projects and getting payment and, therefore, working capital needs are high. This means that higher interest rates can affect the bottomline.I am a big fan of growth and pratibha so far has been able to beat my expectation as far the results are concerned.Had a talk with its MD recently where he guided me by predicting a figure for pratibha-Expects revenue of Rs 1,100 crore and bottom-line of Rs 61 crore for FY 2010.Now thats a 50% growth in sales and 35% odd growth in profits.Considering the present horrendous economic circumstances am more than satisfied with a forward EPS of 36rs.At present prices which only discounts the price by less than 5 times.Pratibha would be a over 1000rs crore company these year and at 5 times forward investor fraternity cant ignore it for long.I have assigned a 25% target but over the long haul it posses the ability to be the "wonderer" in your portfolio.A great buy.
Regards,
ARUN
Saturday, July 4, 2009
Market outlook,Stock tip-Pratibha Industries Ltd
Scripscan:Pratibha Industries Ltd
cmp:176
Target:218
Return percentage:25%
Duration:3-5 months
Traded on:Nse-bse
Story:Pratibha Industries Ltd (PIL) is into design, engineering and construction of water transmission and distribution projects, water treatment plants, reservoirs, mass housing projects, commercial complexes, pre-cast design & construction, road construction and real estate. Pratibha Pipes & Structural (P) Ltd (PPSPL), a fully-owned subsidiary, is into submersible arc-welded pipes.PIL started by manufacturing manhole covers and pre-cast iron products. It then went into mass housing projects, doing work for Indian Railway Welfare Organisation, Army Welfare Housing Organisation and municipal corporations (Pune, Thane and Akola). Today, 60% of its revenues come from water management projects, while urban infrastructure projects constitute 32% of its order book; road projects account for the rest. In the roads and bridge construction segment, it has tried to overcome its limitation of size and profile through alliances with contractors like Petron Civil Engineering, Unity Infraprojects, SOMA Project, etc. For the urban infrastructure segment, PIL has tied up with Ostu-Stettin of Austria (for tunnelling projects) and Grontmij of the Netherlands (for car parks).The company has an order book position of over Rs2,200 crore ranging from one year to four years.For the pipes business, to be done under PPSPL, PIL has set up a spiral pipe manufacturing plant for oil and gas pipe transmission projects on EPC and PPC basis. The helical (spiral) saw pipes (capacity of 92,000tpa, which is already commissioned) also have a huge potential for water supply and sewerage transportation and structural requirements. PIL aims to diversify into complex highway construction projects, hydrocarbon projects, civil work for power generation and waste-water treatment in the near future. While PIL has managed to diversify its revenue, a large part of it comes from the water segment. The problem with the business is that almost all water projects are controlled and awarded by state governments. Competition is intense and often not on merits. There are delays in executing projects and getting payment and, therefore, working capital needs are high. This means that higher interest rates can affect the bottomline.I am a big fan of growth and pratibha so far has been able to beat my expectation as far the results are concerned.Had a talk with its MD recently where he guided me by predicting a figure for pratibha-Expects revenue of Rs 1,100 crore and bottom-line of Rs 61 crore for FY 2010.Now thats a 50% growth in sales and 35% odd growth in profits.Considering the present horrendous economic circumstances am more than satisfied with a forward EPS of 36rs.At present prices which only discounts the price by less than 5 times.Pratibha would be a over 1000rs crore company these year and at 5 times forward investor fraternity cant ignore it for long.I have assigned a 25% target but over the long haul it posses the ability to be the "wonderer" in your portfolio.A great buy.
Regards,
ARUN
