Sterlite Technologies Ltd BUY

Sterlite Technologies Ltd  
CMP (24.00)

STERLITE TECH  GOT  DIFENCE PROJECT------  Total project worth is around 22,000 crore. 4lakh kilometer optical cable network which connects entire India As a L1, sterlite alloted 65-70% share. balance 30 % shared between Birla Ericson,Vindhya tele,KEC,usha martin, uniflex cables

on 24th  APO awarded for sterlite

 NEWS NOT GONE PUBLIC   JUST BUY FOR SHORT TERM GAINS 

Kesar Terminals & Infrastructure Ltd cmp (65.00)

KESAR TERMINALS & INFRASTRUCTURE LIMITED (KTIL) was incorporated on 21^st January, 2008 as a wholly owned subsidiary of KESAR ENTERPRISES LTD.

Over the years DTC increased tankages at Kandla from a mere 4,000 Kls. in 2 tanks in 1 Terminal to nearly 1,26,783 Kls. in 64 tanks in 2 Terminals, located close to each other.

The tanks at Terminal No. I at Kandla are situated right in front of the Jetties ensuring a quick and smooth loading and off-loading of bulk liquids at a high pumping rate. Multiple Jetty Lines permit simultaneous discharge of cargo from more than one vessel at any time.

Quarter ended Year to Date Year ended 201309 (3)  201209 (3)  % Var  201309 (6)  201209 (6)  %Var  201303 (12)  201203 (12)  % Var   Sales 8.89  6.63  34.09  17.01  13.01  30.75  29.52  23.30  26.70   Other Income 0.03  0.02  50.00  0.09  0.05  80.00  0.10  0.25  -60.00   PBIDT 5.01  3.78  32.54  10.20  7.59  34.39  17.59  13.96  26.00   Interest 0.50  1.16  -56.90  0.92  1.29  -28.68  2.13  0.82  159.76   PBDT 4.50  2.62  71.76  9.28  6.30  47.30  15.46  13.14  17.66   Depreciation 0.75  0.69  8.70  1.49  1.33  12.03  2.75  2.79  -1.43   PBT 3.75  1.93  94.30  7.79  4.97  56.74  12.71  10.35  22.80   TAX 1.35  0.70  92.86  2.75  1.80  52.78  4.46  3.45  29.28   PAT 2.40  1.26  90.48  5.00  3.32  50.60  8.39  7.08  18.50   Equity 5.25  5.25  0.00  5.25  5.25  0.00  5.25  5.25  0.00

Year Mar 13 Mar 12 Mar 11 Mar 10 Mar 09(15) Sales Turnover 29.85 23.41 20.58 18.32 0.00 Other Income 0.10 0.24 0.14 0.19 0.00 Stock Adjustments 0.00 0.00 0.00 0.00 0.00 Total Income 29.95 23.65 20.72 18.51 0.00 Raw Materials 0.00 0.00 0.00 0.00 0.00 Excise Duty 0.00 0.00 0.00 0.00 0.00 Power & Fuel Cost 0.73 0.64 0.62 0.43 0.00 Other Manufacturing Expenses 2.05 1.31 1.83 1.85 0.00 Employee Cost 6.35 5.13 4.41 3.66 0.00 Selling and Administration Expenses 1.68 1.46 1.72 1.23 0.00 Miscellaneous Expenses 1.55 1.15 1.08 0.64 0.00 Less: Preoperative Expenditure Capitalised 0.00 0.00 0.00 0.00 0.00 Profit before Interest, Depreciation & Tax 17.59 13.96 11.06 10.70 0.00 Interest & Financial Charges 2.13 0.82 0.96 1.23 0.00 Profit before Depreciation & Tax 15.46 13.14 10.10 9.47 0.00 Depreciation 2.75 2.79 2.76 2.42 0.00 Profit Before Tax 12.71 10.35 7.34 7.05 0.00 Tax 4.32 3.27 2.42 2.72 0.00 Profit After Tax 8.39 7.08 4.92 4.33 0.00 Adjustment below Net Profit 0.01 0.00 0.00 0.81 0.00 P & L Balance brought forward 11.16 6.32 3.42 0.00 0.00 Appropriations 6.85 2.24 2.02 1.72 0.00 P & L Bal. carried down 12.71 11.16 6.32 3.42 0.00 Equity Dividend 1.58 1.31 1.31 1.05 0.00 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Corporate Dividend Tax 0.27 0.21 0.22 0.17 0.00 Equity Dividend (%) 30.00 25.00 25.00 20.00 0.00 Earning Per Share (Rs.) 15.47 13.09 8.95 83.20 0.00 Book Value 66.51 54.04 43.47 293.40 10.00 Extraordinary Items -0.08 0.01 -0.06 0.01 0.00
Though the industrial activities are sluggish, the demand for tankage is expected to remain firm. However, two new bulk liquid storage terminals coming up in the port of Pipavav may lead to shift of some cargo from Kandla to Pipavav due to proximity of Pipavav to consumption centres in Mumbai and South Gujarat. This may lead to marginal depression in tank terminalling charges at Kandla. The Company has also plans for putting up additional tanks in Terminal No.I subject to receipt of statutory clearances for which applications have already been submitted to the concerned authorities. EXPANSION / MODERNISATION The Company is awaiting necessary permissions from the authorities for the construction of additional tanks at Kandla for enhancing revenue. During the year, the Company converted 2 Mild Steel (MS) tanks to Stainless Steel tanks (SS) which has enhanced revenues. Based on the market scenario and the demand from its customers,   Company proposes to convert further such MS tanks into SS tanks. The Company has about 10 acres of land on long term lease basis at Kakinada port in Andhra Pradesh. The Company plans to put up both Dry Cargo Warehousing and Bulk Liquid Terminal facilities at Kakinada. The Company has already received approval from Inter Ministerial Committee for putting up a CFS on the 16 acres freehold land purchased by the Company at Pipavav port in Gujarat. The Company proposes to set up a Container Freight Station [CFS], Bonded Warehouse and Bulk Liquid terminal at Pipavav.
SMALL COMPANY BUT  GROWING  CONSISTENT +DIVIDEND YIELD ONE CAN BUY ON DIPS

Aegis Logistics

ADITIONAL INFO ABOUT AEGIS---


Profitability will improve in H2, due to increased utilization at kochi and new capacity of Haldia. Apart from that, next year we will see quarter on quarter improvement in earnings due to starting of Pipavav capacity in phased manner which is already booked and gas division will also perform well since management is confident of adding good numbers of dealers and new autogas stations in second half which will improve next years gas divisions (B2C) performance

Liquid Terminal Division:

Kochi Liquid terminal division is currently operating at 75% which will be operating at 85% in Q4 FY14 with the new jetty commissioned in Nov 2013. Co has already handled a large methanol cargo through that jetty.

  Haldia terminal is part commissioned with 15000 KL operated in Q2 FY14 (total 60000 KL). Balance 23400 KL will be operational in Q3 FY14 and 21600 KL in Q4 FY14.Co has signed a 15 year contract at the Haldia terminal of 15000 KL which is equivalent to 25% of the capacity.

  Pipavav terminal of 120000 KL will be operational in Q1 FY15 with a capex of INR 120 cr. of this 45 cr is already spend through internal accruals. Mgt is confident of cost savings in Pipavav project cost a case in example is Haldia where initially project cost was INR 65 cr and co completed the project at INR 48 cr. Entire capacity of 120000 KL is fully sold and booked.

Realizations at each of the terminal:

o    Mumbai: INR 250-260/KL/month

o    Kochi: INR 100-125/KL/month

o    Haldia: INR 140-150/KL/month

o    Pipavav: INR 180/KL/month

Gas division business:

ü  Gas volumes handled by the co. at its own terminal at Mumbai and Pipavav was 154856 MT in Q2 FY14 as against 125565 MT in Q1 FY14. This is against 184124 MT in Q1 FY13 and 139922 MT in Q2 FY13. Mgt has given guidance of 400000 MT for gas volume handled at its both the terminal however in H1 FY14 co has already done 280421 MT. Management reiterated that order book for Q3 FY14 is similar to those of Q2 FY14. Co charges throughput and storage fees of INR 700-1000/MT on the volumes handled.

ü  Gas volumes on which co earns sourcing fee of $3-5/MT was 255265 MT in Q2 FY14 as against 141000 MT in Q1 FY14. This is against 259276 MT in Q1 FY13 and 145815 MT in Q2 FY13.Management has given guidance of  450000 MT. however in H1 FY14 co has already done the volumes of 396392 MT. Management reiterated that order book for Q3 FY14 is similar to those of Q2 FY14.

ü  Auto Gas (Retail stations) volumes were 5480 MT as against 5773 MT in Q1 FY14. Volumes were down QoQ mainly because 3 of the stations were under repairs and maintenance. Mgt has guided for 30000 MT of volumes for FY14.In Q3 FY14, co will commission 4 company owned stations (CODO’s) which are the flagship stations at Bangalore and also 3 of the stations which were under repairs will also be under operation in Q3 FY14. Co has 94 stations operational in Q2 FY14 which is same as Q1 FY14.

ü  Commercial and Industrial gas segment volumes were 7063 MT in Q2 FY14 as against 8019 MT in Q1 FY14. Co earns a EBIDTA margin of INR 2000-2500/MT in this segment. Co currently has 45 dealers with it (sales per dealer at 20-30 MT per month). Mgt expects to have dealer network of 80 by March 2014.

ü  For Gas terminal division, mgt has given guidance of  INR 85 cr. of EBIDTA in FY14. However co has done EBIDTA of INR 30 cr. in H1 FY14. co may fall short of the guidance in gas division mainly because of the delay in permission for the Auto Gas stations which is the high margin business and also lower than expected sales in Bulk Industrial gas segment due to general industrial slowdown.

The key highlights are as below:

Rs. Crores	Q2 FY14	Q1 FY14	Q-o-Q	H1FY14	FY2013
Revenue	1,563	806	94%	2,369	3,982
Normalized EBITDA (Segment)	38	34	10%	72	156
Finance, Hedging & Forex Exp.	1	3		4	62
Profit before Tax	25	20	27%	45	53
Profit after Tax	22	16	42%	38	35

Sandur Manganese & Iron Ores Ltd ------BUY----620.00

Sandur Manganese & Iron Ores Ltd CMP 620.00

COMAPANY MAY POST 70-80 EPS THIS YEAR EXPECTING PRICE TO TUCH 800 SHORTLY.INCASE JSW TAKEOVER TALK COMES MAY GO TO 1000 -1200- BUY ON EVERY DIP
 

AEGIS LOGISTICS LIMITED ---------- (BUY) CMP 160.00

Results re-impose faith in long term story

In Q2FY14, Aegis Logistics Ltd. (Aegis) reported numbers in line with our expectations. The
revenue was up by 77.3% YoY to Rs 1,562.9 crore led by a record revenue from the liquid division
and an increase in the LPG gas sourcing volumes. On a comparative basis, profit from operations
was at Rs 27.8 crore as compared to a loss of Rs 48.9 crore in Q2FY13, largely due to an increase
in the high margin liquid division segment and a change in the hedging strategy. The PAT was
down by 43.9% YoY to Rs 20.7 crore compared to Rs 36.9 crore, due to a higher other income of Rs109.9 crore, which includes interest income of Rs 58.4 crore. In FY13, due to exotic option
contracts Aegis had a gross debt of Rs 2,707 crore with cash and equivalents of Rs 2,514 crore, but the unwinding of the option contracts brought debt to normal levels of Rs 238 crore in H1FY14.

Liquid Division:

The Liquid division revenue at Rs 34 crore is the highest quarterly revenue clocked by Aegis. The
increase in revenue was led by the increase in capacity due to de-bottlenecking at the Mumbai
facility and a change in the liquid mix. The EDITDA came in at Rs 22.5 crore with a margin of 66.2%,mainly on accounts of a change in the liquid mix, which now has a higher share of specialty
chemicals. With the expansion plan in place at the Haldia and Pipavav facilities and incremental
utilization at the Kochi facility (fire fighting mechanism issue resolved by the port authorities),
Aegis is looking at higher revenues from this division over the forecast period.
 
Gas Division:

The gas division revenue stood at Rs 1,529 crore with an EBITDA of Rs 15.2 crore. The increase inrevenue was mainly due to an increase in the low margin gas sourcing business (~255,000 MT).
The growth in the higher margin gas distribution business (12,500 MT) was tepid due to a lower
number of gas stations getting sanctioned (94 stations) and a low off-take in the commercial
business due to the sluggish economy. With an increase in LPG imports by India (~7 mn MT) and
more auto gas stations and distributors for commercial and industrial gas getting sanctioned, this
segment is likely to perform well in the coming quarters.

EXPECTING 22 EPS  FOR FULL YEAR AND COMPANY GOING TO BE DEBIT FREE THIS YEAR. BUY ON EVERY DIP  ONE CAN EXPECT 250 RS IN NEXT SIX MONTHS

5 Things to Avoid in the Current Stock Market

1. Avoid anchors
I hear a lot of people saying that the Sensex P/E at 18x is cheap as it is at the same level as the last few years’ average P/E. Basing your investment decisions on the Sensex P/E can be dangerous, as this is just an anchor that tells us how much people are willing to pay for the top 30 stocks on an average, not whether the stock you are eyeing is cheap or expensive.
Even when the Sensex P/E stands at 18x now, a lot of stocks are trading at 50-60x and a lot at 5-6x, so ignore this number. Also, looking at average Sensex P/E is illogical as the average is artificially higher owing to the bubble of 2007-08.
You must also not give much weight to a stock’s P/E in basing your investment decision. It’s more important to look at the underlying business and whether it is great, good, or gruesome as per Buffett’s standards.
Another anchor to avoid is the stock price itself, especially given that prices have moved sharply in the past 2-3 months.
Remember that a stock does not become a buy/sell just because it has fallen/risen from a certain price.
2. Avoid arrogance
I see a lot of my trader and investor friends feeling a lot better after the gains they’ve made over the past three months.
They are confusing luck and bull market with brains and skill…and would do well to remember that a good performance in the short term has serious limitations as a basis for estimating long term results.
If you are sailing in the same boat, you would do well to remember Charlie Munger’s advice to maintain intellectual humility amidst heady gains…

• Stay within a well-defined circle of competence
• Identify and reconcile disconfirming evidence
• Resist the craving for false precision, false certainties, etc.
• Above all, never fool yourself, and remember that you are the easiest person to fool
• “Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things.”

What is more, despite all excitement about Sensex @ 21,000, it’s important to understand that this market is sitting on a much fragile base than when Sensex touched 21,000 in January 2008.
This is thanks to an overdose of cheap money that has inflated bubbles around the world, and especially in emerging market stocks.
When these bubbles will burst is anybody’s guess, but you may call the US Federal Reserve for clarifications, or CNBC office for their predictions.
3. Avoid “cheap” stocks
India has many more zombie companies – sitting on high debt without much cash to survive and without much new business coming in – today than in 2008. So the probability of romancing a value trap is high.
Thus, be very-very careful while buying “cheap” stuff, like stocks at 52-week lows.
Things sometimes get cheap for valid reasons…and cheap often gets cheaper.
So avoid the obviously bad businesses, even if they look cheap.
If you need some hints of what kind of businesses to avoid and what would happen if you don’t avoid them, look at this chart…

Remember what Buffett said – “Time is the friend of the wonderful business, the enemy of the mediocre.” Avoid the mediocre businesses even if they are available cheap (like at <5x font="" p="">
Such businesses are not just terrible investments for you, but also a major distraction that would cost you in terms of opportunity cost.
4. Avoid multi-bagger ideas
I hear that a lot of stock brokers are shutting shop for the lack of business. In fact, as per the SEBI, around 500 brokers have officially shut shop since April 2013. They say “investors are not investing” while they must say “traders are not trading”.
Anyways, helped by this “Sensex @ 21,000” bait, a lot of brokers and stocks tippers are calling me to sell their trading or research services. One is in fact guaranteeing (not on paper) to earn me Rs 1,000 per day in profit!
If you are also receiving such calls or emails where you are promised multi-bagger returns, simply say ‘thank you’ and turn them away.
They may have their targets to meet so don’t scold them. Just say a polite ‘no’.
5. Avoid predictions
Given that the stock market (read, Sensex) has gone nowhere over the past five years, some “sane” minds are pronouncing long term equity investing as dead (again!).
Then there are many who have raised their Sensex targets to 22,000 or 23,000.
Avoid any such predictions. They are just baits to invite you to part away with your money.