Mukand Engineers Ltd

BSE Code 532097
Book Value 41.08
Face Value 10.00
52Week High 58
52Week Low 17
EPS 6.51
P/E 7.
Dividend 15%

(Specialists in engineering construction)

It is an associate company of Mukand Ltd. which is a Bajaj group company. Mukand EngineersLtd, (MEL), was incorporated in Jan.'87 under the name and style of Mukand Construction & Project Engineering Company Private Ltd. Their object was engineering construction, erection and commissioning of Plants. It was a Subsidiary of Mukand Ltd. It became deemed Public Company in Feb.'90 and later was converted into Public Limited Company in Jul.'92 and a fresh certificate was incorporated. The company was promoted by Mukand Ltd, it is a part of Shah & Bajaj group companies. Presently projects executed by the company include Project and Design Engineering, Mechanical & Civil Construction and Site Fabrication Works. Company now focuses on Core Sector Areas of Power Transmission, HDVC Lines, Hydrocarbon and Port Modernisation. The company has come out with Public Issue of 30,08,000 Equity Shares of Rs. 10/- for cash at a premium of Rs. 30/- per share aggregating to Rs. 12.03 crores. In 1999-2000, the company has setup an Authorised Training Centre in Kurla, Maharashtra for high-end computer training. To facilitate synergical benefits and expansion of the present business, the company acquired the EDP department of Mukand Ltd, which possesses facilities in software development, consultancy, data processing, accounting system on ERP, etc. The company completed the prestigious order which was received from NALCO for the Civil and Structural work at Angul, Orissa. It is also executing turnkey project of green anode plant of NALCO at Angul. The Company's infotech division has suffered set back due to melt down of the IT industry but this year it has posted good performance The company is expecting orders from Power generation and petrochemical industry and also expects work from refurbishing programme being undertaken by Power plants.

Financials:

	Quarter ended			Year ended
	201003	200903	% Var	201003	200903	% Var
	(3)	(3)		(12)	(12)
Sales	54.72	22.66	141.48	126.28	53.51	135.99
Other Income	0.99	-0.51	LP	2.27	1.80	26.11
PBIDT	6.58	3.16	108.23	16.56	7.69	115.34
Interest	1.12	0.55	103.64	3.49	2.46	41.87
PBDT	5.46	2.61	109.20	13.07	5.23	149.90
Depreciation	0.24	0.16	50.00	0.72	0.61	18.03
PBT	5.22	2.45	113.06	12.35	4.62	167.32
TAX	1.73	-0.01	LP	4.16	0.08	5100.00
PAT	3.49	1.96	78.06	8.19	4.00	104.75
Equity	12.58	12.58	0.00	12.58	12.58	0.00

Shareholding Pattern

Foreign Holdings 0.44

Govt. / Financial Institutions 0.03

Corporate Bodies 12.75

Directors and their Relatives 52.02

Indian Public 32.4

COMPANY POSTED 100 % SALES AND PROFIT GROTH IN LAST THREE YEARS, AND CURRENT YEAR COMPANY DICLERED DIVIDEND 15%. .PARENT COMPANY POSTED TURNAROUND RESULTS. AND MUKUND IS GOING TO SELL LAND WORTH 700 CR TO REDUCE THE DEBITIN IN THE COMPANY. ALL THIS LEADS TO IMPROVE THE PERFORMENCE FURTHER. BUY AT CURRENT MARKET PRICE 48.8 HOLD UP TO NEXT QUARTER, STOCK WILL GIVE 50 % RETURN IN NEXT 3 MONTHS.

Stock to buy for short term gains:

1.Easun Reyrolle Ltd at 96 tgt 125

2. Dynemic Products Ltd at 22 tgt 30

3. Visesh Infotecnics Ltd at 6.25 tgt 10

4. KIC Metaliks Ltd 108.55 tgt 150

5 Genus Power Infrastructures Ltd 205 tgt 250

dpsc ltd

Jindals pick up 10% in Descon

Calcutta, May 2: JSW Group has bought into city-based IT firm Descon by scooping up a 10 per cent stake held by DPSC Ltd in back-to-back deals that turned one-time fierce competitors into close collaborators. The $3.7-billion group, having interests in steel, power and infrastructure, is also in talks with three other shareholders of Descon to take management control. A formal announcement is likely to be made by JSW shortly. DPSC, formerly Dishergarh Power Supply Corporation, and Descon had cross-holdings between themselves. Descon held 32.31 per cent in DPSC, which in turn held 10 per cent in Descon. However, Descon decided to exit the power firm after a consortium led by city-based infrastructure finance company Srei became its majority owner in February. It sold a 17.31 per cent stake to Orbis Power Venture (a special purpose vehicle of Srei) in an open market transaction in early April. The company sold the remaining stake in an open offer made by Orbis last week, netting about Rs 97 crore from the two-phased transaction. DPSC, in turn, sold its holding in Descon to JSW. Fierce bidding DPSC was on the radar of JSW and Srei for a long time. Both the company had made strategic moves to corner the power firm whose majority shares (57.17 per cent) were to be sold off by public sector Andrew Yule, the Life Insurance Corporation and the General Insurance Corporation. JSW cornered Descon’s 32.31 per cent holding when the latter pledged the stake to the Jindals against a loan. The Srei consortium, on the other hand, scooped up nearly 5 per cent in DPSC from the National Stock Exchange. JSW and Srei were in the fray when the bidding started. Descon joined the process later. On the day of open auction in November last year, JSW backed out but Srei fought till the end to emerge as the highest bidder. However, the story did not end there. It took a lot of political persuasion from the Centre and legal prodding from Calcutta High Court to actually complete the sale process in favour of Srei. Fresh moves Once Srei became the majority owner, foes turned friends. Descon decided to cash out realising its role would be reduced to that of a minority shareholder. JSW played its part by releasing the pledged shares. DPSC sold out a non-core business to JSW, which plans to engage Descon for IT support and engineering work for its upcoming steel and power project in Bengal. JSW plan The Sajjan Jindal group is in talks with three venture capital funds — two based in the UK and one in Singapore — to pick up their combined 49 per cent holding in Descon. The IT firm did business of Rs 16 crore last year with nominal profit. However, it is sitting on a cash pile of Rs 105 crore through sales of DPSC and Tide Water Oil stakes.

Samtel Color Ltd (BUY0 AT 20 Rs

CORPORATE PROFILE

Samtel Color is the flagship company of the Samtel group, and manufactures the widest range of Colour TV tubes in India and has a capacity of over 10 million picture tubes per annum. The company was incorporated in 1986 with a technical collaboration with Mitsubishi Electric, Japan to manufacture 14” and 21” Color Picture Tubes (CPTs). With a market share of over 60%, it is the largest tube manufacturer in the country. Its clients include leading domestic and international TV manufacturers. Integrated backwards with its component divisions at Ghaziabad and Parwanoo, Samtel Color also manufactures electron guns and deflection yokes for colour picture tubes. DEFLECTION YOKES The Deflection Yoke (DY) Division of Samtel Color was set up in 1998 at Parwanoo to manufacture DYs for colour picture tubes. Presently, the division supplies its products to the Colour Picture Tube division as well as some major TV manufacturers in the country. The division also manufactures Deflection Yokes for export to tube and TV manufacturers in South East Asia. ELECTRON GUNS The Electron Devices Division of Samtel Color is a leading manufacturer of Electron Guns for Colour picture Tubes in the country. The product is a critical component of a picture tube and its quality determines the life and performance of the picture tube. Set up in 1994, the division has its manufacturing unit at Ghaziabad. The division is also the largest manufacturer of cathodes and heaters for Electron Guns in India and has received the prestigious ELCINA R&D Award for 1996-97. Samtel Display Systems: Samtel Display Systems (SDS) is a key Indian player in high-technology products for avionics and military applications in both domestic and international markets. SDS straddles the entire value chain from design, development, manufacture, testing, qualification, repair & maintenance and obsolescence management of avionics products and equipment for military as well as commercial aircraft. Its products include Color Avionic Tubes (CAT), Multi Function Displays (MFD), Head Up Displays (HUD), Helmet Mounted Displays (HMD), Automated Test Equipments (ATE) and IADS, as well as Control Displays for Armored Military Vehicles. SDS is a part of the Samtel Group, India’s largest integrated manufacturer of a wide range of displays for television, avionics, industrial, medical and professional applications, TV glass, components for displays, machinery and engineering services. GREAT TURNAROUND STORY BOOK VALUE AT 26RS PROM TAKEN 3 CR AT 21.50 NEXT YEAR EPS COULD BE 4 RS STOCK IS ACCUMULATED AROUND 19 FROM ONE YEAR. IAM EXPECTING 30RS IN NEXT 3 MONTHS

UTV Software Communications Ltd ( 410.00) BUY

Snapshot

UTV Software Communications Limited
operates in the verticals of Television,Movies,Broadcasting, Gaming and New Media and is thus close to achieving the status of a 3600 media company. Walt Disney, which is a leading global player in the Media and Entertainment (M&E) Industry,holds 60% stake in UTV.

Investment Rationale

UTV is a 3600 company which is growing across verticals in the media industry. Such a growth is attained by both organic and inorganic means. The company has recently acquired True Games which is inolved in online gaming. By having an alliance with Disney the company is able to use its expertise in various fields like gaming animations, distribution of Hollywood movies etc.

The gaming industry is expected to grow manifolds in the coming years in India. India games which is a subsidiary of UTV has 60%market share in India. Even, in the online and mobile gaming industry,the company is involved actively with the subsidiaries and its strategic partner, Disney for designing games which are made to suit the USA customers, as USA is one of the biggest market for online gaming mainly due to the accessibility of internet and mobile phones.

UTV’s broadcasting business is a low cost model thus reducing the gestation period for the company. All of the channels are in a ‘Pay’and ‘Subscribe’ mode thus generating constant revenues for the company. This segment is expected to break even in FY10 with UTV Movies already in profit in FY10.

UTV has 35 movies on slate to be released in next two years. Of these around 8‐9 movies are of the budget of more than Rs.30 crs. The company is planning to invest around Rs.900 crs in this segment for next 2‐3 years, and is expected to earn revenues in the range of around Rs. 400 crs in FY10. Also because the company follows a studio model & with the company reducing cost of Production the margins in this segment are set to improve going forward.



expecting 15 eps in fy10, 35 eps in fy 11, 63 eps in fy 12 . in last 10 days Goldman Sachs Investments Mauritius I Ltd sold 6.5 lks shares in the open market . last 10 days delivery's 12 laks shares change hand in both exchanges. at avg price of 445.rs. current market price 410 is much lower compare to peers. last month it went up to 570 levels. Walt Disney bought 50 % stake at 750 rs.2 years back . so we can invest for long term and short term prospective


in next 5 days if the scrip holds 400 level it can go to 470 immediately .lower side i can come down to 375 in worst case. scrip can touch 550 in next 3 months.

HAPPY INVESTING


SAHADEV

Sabero Organics Gujarat ( 76.35)

Sabero Organics is an established player in the agrochemical industry which manufactures and sells a variety of specialty chemicals and crop protection products. Sabero has a diversified product portfolio for Insecticides, Herbicides, Fungicides and Specialty chemicals. The main products namely Mancozeb, Acephate, Glyphosate, Chlorpyriphos are the largest selling generic products in their respective segments with markets in most regions of the world. Sabero’s manufacturing facility is located in Gujarat and has received the title of ‘Pioneer Industry’ from the Government of Gujarat.
With more than 240 product registrations in 50 countries, Sabero has subsidiaries in Australia, Europe and Argentina and has also established 2 subsidiaries in Brazil which is the largest agrochemical market in the world. With around 65% of the Company’s revenues been contributed by exports, Sabero focus on various geographies around the world like Latin America, Europe, Brazil, Argentina, etc. Sabero is the largest producer of two of its key products namely Mancozeb and Glyphosate in India and second largest in the world.

Business Highlights:

Sabero becomes the second largest producer of Mancozeb in the world post capacity expansion to 30,000 tones per annum.

Launched new products – Insecticides Methamidophos and Acephate Prills

Company added as a source in the registrations of a large European MNC for:

• Mancozeb Technical (Fungicide) in 7 EU countries

• Glyphosate Technical (Herbicide) in 15 EU countries

• Acephate Technical and 90% prills (Insecticide) in USA MNC.

Details of financial performance

Continues to be one of the lowest cost manufacturer in the world for some key organophosphorous and dithiocarbamate products like Mancozeb, Monocrotophos, Acephate, Chloropyriphos and Diclorovos.

9M FY2010 (April – December 2009) v/s 9M FY2009 (April – December 2008)

• Income from operations (net of excise) at Rs. 33,374 lakhs as compared to Rs. 26,742 lakhs in 9M FY09, an increase of 25 %

• Profit before interest, depreciation and tax increased by 75 % to Rs. 6,912 lakhs compared with Rs. 3,953 lakhs in the corresponding period last year.

• Profit before tax up by 108 % at Rs. 4,888 lakhs as against Rs. 2,352 lakhs last year.
• Net Profit stood at Rs. 3,095 lakhs compared to Rs 1,945 lakhs in 9M FY09, an increase of 59%.

• Basic EPS (not annualized): Rs. 10.58 compared to Rs. 6.66 in Q3 FY09, an increase of 59%.
Q3 FY2010 (October – December 2009) v/s Q3 FY2010 (October – December 2008)

• Income from operations (net of excise) at Rs. 10,941 lakhs as compared to Rs 9,012 lakhs in Q3 FY09, an increase of 21 %

• Profit before interest, depreciation and tax increased by 112 % to Rs. 2,373 lakhs compared with Rs. 1,118 lakhs in the corresponding period last year.

• Profit before tax up by 108 % at Rs. 1,687 lakhs as against Rs. 611 lakhs last year.

• Net Profit stood at Rs. 1,027 lakhs compared to Rs. 511 lakhs in Q3 FY09, an increase of 101%.

• Basic EPS (not annualized): Rs. 3.51 compared to Rs. 1.75 in Q3 FY09, an increase of 101%.

New products introduced

In the current financial year, Sabero has introduced Methamidaphos, an insecticide. Methamidaphos which is used across several fruit and vegetable produce and is sold in South America and Africa. In addition, the company has introduced a new environmentally friendly formulation, Acephate prills for sale in Latin and North America. The company is also introducing, two insecticides, one rice herbicide, and a fungicide at the end of the March quarter, to be manufactured in existing facilities, for sale in India as well as international markets.

Going by the current performance of the company and the huge opportunity it has in the
future, Sabero is positioned itself to grow rapidly in the next couple of years. Based on
the above calculations, Sabero is better placed than its peers with a good growth
number and with low price to earnings. At the current price of Rs. 76.80, it is available at
6.5 times, with a market cap of Rs2300 mn, Based on the above estimates, the market
cap of the company at the end of FY2013 can be anywhere between Rs 4320 mn to Rs
13304.2 mn.

Concerns

Raw Material Price Fluctuations: Even though the raw material prices have stabilized
over the last few quarters, there is always a risk of fluctuation in raw material prices that
could affect the profitability of the company.

Currency Fluctuations: About 65% of the total sales of Sabero are exported to various
countries around the world. Any adverse movement in the rupee will impact the margins
of the company. It is therefore exposed to the currency fluctuation issues that could arise
during export transactions. However, there is a natural hedge in the form of imported
raw materials and domestic sales. So about 35% of topline at any point remains
unhedged and the company has no current plans of hedging this exposure

BUY AT CURRENT PRICE . WAIT FOR 4TH QUARTER RESULTS. IT WILL BE A 100 RS STOCK.