Raj Agro Mills Ltd(. HIGH RISK HIGH PROFIT)

COMPANY OPARATIONS


1.Oil-Raw

2.Oil-Refined

3.Vanaspati

IT HAS POSTED EXCELLENT GROWTH FROM LAST 3 YEARS IT HAS BOOK VALUE OF 31.7 RS.AND EQUITY OF 3.1CR.

DURING 2007 POSTED 82.5CR TURNOVER AND NET PROFIT OF 1.03 CR.

DURING 2008 POSTED 117.CR TURNOVER AND NET PROFIT OF 2.39CR

DURING 2009 FOR FIRST QUARTER POSTED 38 CR TURNOVER AND NET PROFIT OF 3.44 CR.AS AGAINST 22.4CR TURNOVER AND 1.27CR NET PROFIT

SO TAKE A RISK OF 5RS PUT STOP LOSS AT 25RS BUY AT CURRENT MARKET PRICE 29 45.

Rajratan Global Wire Ltd JUST (BUY)

Rajratan Global Wire Limited (RGWL) is one of the leading manufacturer of High Carbon Steel Wires in India. The Company is manufacturing Prestressed Concrete Wire and Strends since 1991 and started making Tyre Bead Wire since 1995 .

RGWL’s has a most modern factory at Pithampur, which is 25 Km from Indore, a prominent business city in Central India .The quest for quality , excellence and progress driven by the total dedication of a competent and professional management team is the hallmark of RGWL.

In a short span of time RGWL has achieved leadership position in Tyre Bead Wire business in India having a global scale of operation and export into various countries besides supplying to all Indian Tyre manufacturers.
The Company is committed to supply quality product as per the specific requirement of its customers.

RGWL’s Tyre Bead Wire manufacturing unit is certified for ISO / TS 16949 : 2002 and P.C. Wire and Strands Unit is certified for ISO 9001 (2000) by M/s TUV Rheinland Germany.

products:-

1.tyre bead:

Tyre Bead Wire is a high carbon bronze coated steel wire used in all tyres. The main function of bead wire is to hold the tyre on the rim and to resist the action of the inflated pressure, which constantly tries to force it off. The bead is the crucial link through which the vehicle load is transferred from rim to the tyre. It significantly affects the safety, strength, and the durability of tyres.

2.pc wire:

The use of high tensile steel in prestressing concrete results in considerable saving of cement and steel. Prestressed concrete wires and strands have found applications in the construction of bridges, silos, buildings, dams, atomic reactor vessels, stadia, airport hangars, runways, and in the manufacture of mass produced components like railway sleepers, water pipes, electricity poles, beams, hollow and solid (extruded) slabs etc.


from annul report 2007:

PROSPECTS AND OUTLOOK

Barring unforeseen contingencies the performance of the Com- pany in the current year is expected to be better than FY07. We expect to further reduce the conversion cost due to availability of piped LNG during FY 2007-08. As the profitability of tyre com- panies have improved we are confident of passing some price increase to our customers. The threat of cheap imports from China is also reduced due to enough measures taken by Chinese gov- ernment against export of steel products from China.

The project in Thailand will commence production from Sep- tember 07 and we expect that in times to come this synergy will have favorable impact on the performance of the Company. This project of the Company has transformed RGWL from a domes- tic tyre bead wire producer to an international tyre bead wire company with global scale of operation. As and when these addi- tional capacities will come on stream, hopefully by 2009 we will have a total capacity of 55000 MT

The years ahead will have great challenges however the returns will also be rewarding enough.

SUBSIDIARY COMPANY

Rajratan Thai Wire Co., Ltd., Thailand - Wholly owned

subsidiary

In line with the long term vision, the Company has made substantial progress in starting a tyre bead wire manufacturing facility in Thailand for which a wholly owned subsidiary Company - Rajratan Thai Wire Co., Ltd, Thailand was incorporated on 28 November 2006. Since then there is good progress in the project.

The Company has received all the licenses and permissions required to do business, it has also received privilege certificate from Board of Investment of Thailand, which allows duty free import of Plant and machinery and seven years corporate tax holiday etc . The project is at an advance stage of implementation and the first phase will be ready for production in September 07. The total investment planned for the project is USD 13.6 Million which will be completed in next one year.

Copies of the abridged balance sheet, abridged profit and loss account and directors report along with abridged consolidated financial state- ment have been attached with this report.

WIND MILL PROJECT:

Investment made in 5 windmills with a total capacity of 2.25 M.W. has contributed Rs. 126.91 lacs as total gross earning through power generation in FY 2006-07.


it has an equity of 4.35Cr and last year it has posted 1.25Cr for full year .

for first quarter 08-09 it has posted 38.Cr turnover 2.35Cr net profit .

Publish Post

during last quarter workers called off strike and started Thailand operations

i am expecting 10Cr net profit for full year (20eps) current price 135 .buy for one year .it will touch 250rs any way public holds only 20% 4.75 lakS shares only.

POKARNA LTD

SMART BUY IN BEAR MARKET

The Pokarna Group, which started with granite business back in 1991, now has interests in granites, garments and engineered stones.

1.GRANITE:-

Pokarna Limited is one of the largest exporters of natural stone from India dealing in over 85 premium colors and exporting more than 45,000 Sqmt. every month to the most reputed companies all over the world. We have our own quarries in the most sought after colors like Black Galaxy, Absolute Black, Tan Brown, Sapphire Blue, Coffee Brown, Seaweed Green, Silver Pearl, Pokarna Green, Vizag Blue and Flash Blue. Besides Indian stones, we also process several colors from Saudi Arabia, Iran, Norway & Ukraine.

2.READY MADE GARMENTS:-

The Andhra Pradesh-based Pokarna Ltd, manufacturer of the `Stanza' branded men's premium apparels.

Having positioned itself as the premium branded apparel player, Stanza has recently widened its garment offerings - formal, casual, fashion and luxury.

The apparel brand uses 100 per cent cotton and blends mostly with linen for its product range. Its price is in the Rs 1,000-4,000 range with average pricing at Rs 1,500.

Stanza, which is working on doubling its earnings from the Rs 25 crore (during 2006-07) to Rs 50 crore for the 2007-08, has recently introduced marketing of `Stanza' fabrics imported from Italy

Pokarna's apparel factory, located in the Apparel Export Park in Ranga Reddy district in Andhra Pradesh, has recently increased its garment production capacity and produces 3,500 shirts and 500 trousers a day.

Fashion biggie Hugo Boss step up sourcing from India

Hugo Boss is reportedly considering a foray into India’s apparel
sourcing industry and has had discussions with several suppliers, including Hyderabad-based Pokarna Fashions.

TIE UP WITH HUGO BOSS may announce shortly.

3.engineered stone:-

consumers keen to have the choicest colour shade for their apartment flooring or large companies looking for uniform colour stones for their premises could have an option ready.

At present, granite, a common choice, has a limitation in colour and quantity. ‘Engineered Stone’, which is set to roll out, perhaps for the first time in the country from Pokarna, can be customised to the client’s preference.

The designer stone in demand in Europe, Australia and the US is based on the technology patented by the Italian company — Bretton. The Hyderabad-based Pokarna Ltd has signed a 10-year exclusivity agreement with the Italian company.

There are about 40 manufacturing plants based on the Italian technology globally. In Asia, Vietnam and Korea have such units. The engineered stone is stronger than granite, scratch-proof and non-porous.

Pokarna Ltd has invested Rs 180 crore in a manufacturing facility for the designer stone in the Atchutapuram special economic zone in Visakhapatnam, according to Mr Gautam Chand Jain, Chairman and Managing Director.

Production is expected to begin in May. The work is in full swing at the facility spread over 40 acres. The 100 per cent imported machinery from Italy has the capacity to manufacture 2,000 sq.m per day of the designer stone.

The company has plans to add three more manufacturing lines, each of 2,000 sq.m/day capacity, with investment of Rs 150 crore, after assessing the market demands

FOREIGN CURRENCY CONVERTIBLE BONDS

in March, 2007 issued and allotted Zero Coupon Foreign Currency Convertible Bonds ("FCCBs") with a maturity of 5 years and one day. The FCCBs were issued in the principal amount off US $ 12,000,000 (Twelve Million) and are convertible into ordinary shares of the Company at an initial conversion price of Rs. 295.64 per share. The conversion price of the FCCBs may be adjusted in certain circumstances. Unless previously redeemed or converted or purchased and cancelled, the FCCBs would mature at 144.50 per cent of their principal amount in U.S. dollars on 29 March 2012. The said issue was made at 32% premium to the reference date price. The FCCBs are listed on Singapore Stock Exchange. Up to March 31, 2007, none of the bonds have been converted into equity shares.

The issue proceeds are earmarked for the development of new projects and the modernisation or expansion of existing plants; and for such purposes as may be permitted from time to time under applicable laws.

currently it is trading at 82 rs.it has a book value of 136rs.and paying 15% dividend (last 4years paid 35%) .company's trail production is going to start in Oct ending. 2010 new plat turnover could be 200Cr .and profit margin between 15-18 %. company is getting loss because of textile division after tie up with hugo boss changes fortune of pokarna.

engineered stone will improve financials of pokarna.

i am expecting year 2010 company's turnover could be300-350cr and net profit at around 30cr

it has an equity of 6.2Cr 2010 earnings could be 50rs (if tie up with hugo boss )

currently it is trading at 7 p.e .after getting 50e.p.s it will be 350rs.

take a position at current price wait for one year .u will get minimum of 2-4 times return .

after tie up announcement it will jump minimum 40% in two days . so take a chance .

down ward risk may be 10-15rs.only.

UB Engineering Ltd

about :ub engineering

UB Engineering Ltd., is one of the largest Engineering & Construction Companies operating in India as well as Overseas markets over last 30 years.

ub engg offer services such as Concept to Commissioning works on Turnkey Projects, on – site Fabrication, Piping, Equipment Installation, Overhauling & Maintenance of large Infrastructure & Industrial Plants, from Power to Refineries to Steel to Petrochemicals and Hydropower projects (upto 1000 MW).

And as each day passes by, UB Engineering advances – from one challenging assignment to another, from myriad deserts to slushy terrains in diverse sectors like 440 KV Substations to 1000 MW Power Plants (be it Hydro, Thermal or Nuclear), from Refineries to Down – streams (In Oil & Gas technology) to Fertilizers to Cement Plants.

Thanks to our persistent and dedicated efforts, our achievements in Quality, Project Management & Safety have been appreciated by International Giants like Bechtel Inc., Rolls Royce, Mitsubishi Heavy Industries Ltd., etc. But more than that we have our customers to thank for keeping faith in us and our professional services.

What follows hereon is an elaboration on our activities.

Browsing through our site will be an interesting experience for you. DO contact us if you are looking for a reputed association, who can meet customer’s tough deadlines with International quality of Workmanship, Supervision and Management.

UBEL is committed to achieve customer satisfaction through consistency in Quality and Cost effective operation and professional manpower.

Highlights

• UB Engineering is proud of constructing 50% of India's installed capacity of power generation.
• Largest single overseas electro mechanical service contract awarded to any Indian Co.
• 103 Steam Generators from 10 MW to 500 MW involving 950,000 Tons of Equipments and materials
• 40 Specialised projects from "Concept to Commissioining"
• 30 Large sized projects in the field of Steel & Metallurgy
• 108 Projects of Electrical & Instrumentation works involving switchyards upto 400 KV, HVDC Substations, GIS etc.
• 156 Projects covering Desalination, Aluminium, Cement, Paper & Pulp, Satellite communication etc. involving 270,000 Tons of equipments and materials & also Civil & Structural works.
• 42 Projects of Fertilser / Petrochemical / Refinery / Oil & Gas Industries.
• Excellent Export Performance awards from Engineering Export Promotion Council and Overseas Construction Council of India.

from annul report08:-

MANAGEMENT DISCUSSION & ANALYSIS

a) BUSINESS OVERVIEW:

The Company has single primary business segment of activity, i.e. Engineering/Construction. The sphere of the Companys activities encompasses EPC Projects, Infrastructure, On-site fabrication, Installation, Testing and Commissioning of Structural Mechanical, Electrical & Instrumentation Equipments, piping etc. for large Industrial projects such as Power, Refineries and Piping, Steel, Cement, Fertilizer, Petrochemicals and Desalination Projects. The Company also undertakes Overhauling & Maintenance of Operating Plants in varied Industries in India and abroad.

b) REVIEW OF OPERATIONS & FUTURE PROSPECTS:

During the year under review the turnover increased to Rs. 2632.10 Million from Rs. 2162.90 Million in the last year with substantial improvement in the profit. Consequent upon the successful conclusion of Rights Issue of Rs. 59.73 crores debt burden has been reduced considerably. The Company is now well poised to bid for big projects with higher margins and take advantage of the present infrastructure development in the Country. With significant orders in hand Company expects to substantially improve turnover and profits in the coming years.

c) OPPORTUNITIES & THREATS:

Steady growth of GDP, increased investment in Power and other infrastructure sectors, boom in industry globally offers excellent opportunities for continued growth of the Company, whereas delay in recovery of debtors, up gradation of high-tech skills, competitive pressures on skilled manpower and increased capital expenditure requirements pose major threats for operations.

company posted 265cr turnover and 12.84cr net profit for 08.(e.p.s of 7.5 rs).

for 08/09 first quarter it has posted 113.cr turnover and profit of 5.82cr .expecting 15rs e.p.s for full year. current market price 112.60 target of 200 in a six months time.

buy on every decline

Tulsyan NEC Ltd

Tulsyan NEC Limited, a flagship company of the Tulsyan group, has reported a turnover of Rs.21036.90 lakhs for the quarter ended June 2008, an increase of 94.74% over the corresponding period last year. The net profit after tax has gone up to Rs.985.88 lakhs for the first quarter this year, against Rs.272.96 lakhs for the same period last year.

The company was able to achieve substantial growth in sales due to increased demand for steel and plastics and also partly due to better sales realization. The additional demand for steel was met from the new rolling mill plant which had started commercial production from 1st July 2007 onwards.

About Tulsyan NEC Limited

Tulsyan NEC Limited is the flagship Company of Tulsyan Group. It is listed in the BSE and was established in the year 1947. Tulsyan NEC is one of the leading manufacturers of Thermo Mechanically Treated Bars (TMT) and Billets in the country. It is privileged to be the first Licensed Rolling Mill in South India to produce TMT Rebars and has got ISI 1786 and ISO.

The Tulsyan Group of Industries was founded by Late Shri. G. L. Tulsyan in the year 1938. The group, since its then has come a long way backed by well-planned diversification and expansion policies with its present annual turnover being Rs. 680 crores.

Alphageo (India) Limited

Company is going to post Rs 70 as annualised EPS for the year 08-09. Stock is available at 6 PE and it is an opportunity for value buyers.

Quarter ended Year to Date Year ended 200806 (3) 200706 (3) % Var - - 200803 (12) 200703 (12) % Var Sales 45.06 20.66 118.10 NA NA NA 81.57 54.29 50.25 Other Income 0.06 0.04 50.00 NA NA NA 0.33 0.19 73.68 PBIDT 23.52 7.99 194.37 NA NA NA 37.92 25.68 47.66 Interest 0.63 0.90 -30.00 NA NA NA 3.51 3.34 5.09 PBDT 22.89 7.09 222.85 NA NA NA 34.41 22.34 54.03 Depreciation 4.15 3.27 26.91 NA NA NA 13.85 10.14 36.59 PBT 18.74 3.82 390.58 NA NA NA 20.56 12.20 68.52 TAX 7.28 1.77 311.30 NA NA NA 9.20 5.74 60.28 PAT 12.19 2.45 397.55 NA NA NA 12.65 7.51 68.44 Equity 5.12 4.95 3.43 NA NA NA 5.12 4.94 3.64

3 red flags signal a troubled stock

Here's how to identify three of those telltale signs, which I call red flags, warning of future bad news. You can easily check for these red flags using the financial statements. You'll need a calculator, but the calculations are easy. Once you get the hang of it, you'll be able to do the analysis in less than five minutes. You'll find it well worth the effort.

Red flag 1: Deteriorating gross margins

I'll start with gross margins, which are most useful for detecting deteriorating competitive conditions. Gross margins measure the profit a company makes on each widget it sells before accounting for overhead, marketing, research and development cost, interest and taxes. Gross margins tell you a lot about a firm's competitive position. Rising gross margins tell you that a firm is either reducing production costs or raising prices. Whatever the reason, margins tend to move in trends and rising margins point to future positive earnings surprises.

Conversely, deteriorating margins say that either production costs are increasing and the firm can't raise prices proportionally, or that it is cutting prices in an attempt to maintain market share. Since either condition portends future earnings shortfalls, declining gross margins is a red flag.

Calculate gross margins by dividing gross operating profit by sales for the same period. To rule out seasonal variations, always compare the most-recent quarter's gross margin to the same quarter one year ago.

Red flag 2: Accounts receivables vs. sales
Corporations usually don't pay cash when they buy from another company. Instead, they have a predetermined time, say 90 days, to pay for the goods. The amounts owed to a company by its customers for goods received are termed "accounts receivables."

Usually, receivables track sales. For instance, if a company sells twice as much as it did the year before, you would expect its receivables to double. Sometimes sales grow faster than receivables, which signals that the firm is doing better at collecting its bills, which is good.

But beware when receivables increase faster than sales. That means customers are taking longer to pay their bills. Here are three reasons why that could happen:

• The company is slow in billing its customers.

• Customers don't have the cash to pay.

• The firm is giving its customers longer payment terms to encourage them to order products that they really don't need, a practice known as "channel stuffing."

While No. 1 is fixable, reasons No. 2 and No. 3 will likely result in sales and earnings shortfalls in the not-too-distant future.
To analyze receivables, compare the ratio of receivables (found on the quarterly balance sheet) to sales (income statement) for the most recent quarter to the same ratio for the year-ago quarter.

Red flag 3: Rising net income combined with a decline in operating cash flow
Cash flow measures the cash that moved in or out of a company's bank accounts during a reporting period. Since cash flow must be reconciled to actual bank balances, it is a more-reliable measure of a company's results than reported earnings, which are subject to a variety of arbitrary accounting decisions.

Operating cash flow measures the change in bank balances resulting from a firm's main business. When a firm calculates its net income, it deducts a variety of non-cash accounting entries such as depreciation and amortization.

Operating cash flow is mainly net income with those non-cash accounting entries added back in. So, generally, operating cash flow should exceed net income. But in fact, many firms find ways to report positive net income when they are actually losing money when you count the cash.

Recent academic research found that comparing reported net income to operating cash flow is a good way to spot future problems.

Specifically, the researchers found that the combination of rising net income and declining operating cash flow is a red flag pointing to future earnings shortfalls.

Doing the analysis doesn't even require a calculator, but interpreting a cash-flow statement is a little tricky. The quarterly statements show the cumulative year-to-date totals for each quarter instead of each quarter's individual figures. For instance, if a firm's fiscal year starts with January, its June quarter figures include the total of the March and June quarters. To get the June quarter's operating cash flow, you would have to subtract the March totals from the June totals.

However, there's no particular advantage to analyzing the quarters separately. So, I take the easy way and compare the most-recent quarter numbers to the year-ago figures, regardless of whether they represent single or multiple quarters. To do the analysis, simply compare the change in net income to the change in operating cash flow from the year-ago quarter to the most recent quarter.

Here are the numbers you would have found had you checked Jos. A. Bank's cash-flow statement after it reported its January 2006 quarter results (Since the company's fiscal year ends with its January quarter, the cash-flow statement figures for January actually represent the entire fiscal year).

Better safe than sorry. Nothing always works in the stock market and these three red flags are no exception. Sometimes cash flow drops because a company loads up on inventory for a new product introduction, or gross margins drop due to short-term conditions.

Nevertheless, successful investing is more about avoiding disastrous losses than it is about riding hot stocks. Paying attention to these red flags will help you do that.

source: deep wealth

Five Key Fund Investment Lessons

The Morningstar Investment Conference is one of the best events of the year for fund investors. But few individual investors actually go; the audience is mostly financial advisers and money management pros, experts who in many cases are worried more about the latest trend than about the basics that make for investment success.

An average investor who came here for the recent Morning star event and listened carefully would have come away with five big lessons that seemed to come up in session after session:

1. Beware the attraction of short-term bets when looking for long-term outcomes

There have been countless studies of fund investor behavior showing that typical consumers don't do as well as the funds they buy. The discrepancy is caused mostly by losing confidence in a fund and jumping around, constantly trying to make headway with whatever is hot today.

Michael Mauboussin, chief investment strategist for Legg Mason, compared it to grocery checkout lines or changing lanes in the highway, always searching for what appears to be the fastest route to your destination.

"Very rarely does changing lanes get you there significantly faster," Mauboussin said during his keynote address, "but there are risks involved in making the change and you can wind up further behind -- or worse -- if you make the change at the wrong times."

2. When it comes to information, 'availability bias' is a problem

Morning star is in the investment-research business and has made its name helping investors see through the skin of securities, first mutual funds and then stocks and exchange-traded funds. Where old-time investors had to rely a lot more on blind faith, today's investors have tools -- like Morning star ratings, regular performance updates and much more -- that they depend on.

But several speakers noted that investors tend to have a problem with "availability bias," where they confuse access to information with relevance. Think of it like the Queen of Hearts in "Alice in Wonderland," where every bit discussed in court is decreed "very important!" although most of it is meaningless.

Investors frequently ascribe significance to short-term performance numbers, or watch the flow of money into various asset classes, thinking they say something important about long-term trends; frequently, this is how people wind up missing out on gains and buying into declines.

3. About half of all funds available today deserve to die

No one actually says this on the podiums at the Morning star event, but they whisper it in the exhibit hall and in conference rooms.

The exhibit hall featured a number of companies whose best products could charitably be called mediocre, but realistically should be described as awful. Many firms created funds simply more for their ability to sell them rather than their capability for managing them well.

Thousands of laggards would be out of business if fund investing was a meritocracy. Since fund companies won't close these funds, it is up to investors to hold funds to a simple standard, namely that results are not disappointing over a long stretch of time.

4. Expect large-cap stocks to hit their stride in the next 12 months

You can't go to an investment conference without getting some prognostications for where the market is headed, and the consensus among experts at the Morning star event was that the big names are due for a pick-up.

Large-cap stocks -- particularly for value-oriented investors -- are about as cheap as they have been in a long time, having lagged small-cap stocks for six to eight years (depending on which benchmarks you prefer). Stellar fund managers such as Bill Nygren of the Oakmark fund or Bill Miller of Legg Mason Value Trust have been migrating towards large-cap names.

For buy-and-hold investors -- as well as people who fled the bear market for the comfort of recognizable names -- a boost in the large-cap arena would be good news indeed.

5. There's a balance between running with the herd and being so contrarian you're wrong

Many of the top managers at the event discussed how they like to go against popular thinking, with the basic idea being that when everyone on the deck of the ship tilts to one side, the safest place may be the other side.

But the only difference between a contrarian and a fool is that the contrarian tends to be proven right (eventually), while the fool who kept trying to beat the herd failed to even keep up with it.

In plain speak, that means that when all of the experts start loving, say, large-cap stocks, that doesn't mean it's time to bail out of everything else. Diversification allows you to participate in the best of the market, no matter which way certain asset classes are running.


source:deep wealth