Vikas Granaries Ltd (27.50)

BUY VIKAS GRAN(531518) AT 27.5 .IT HAS A Trialing 12MONTHS EPS IS AT14 RS , 9MONTHS PROFIT IS AT 17.73 AND M CAP IS AT 48 CR. PROMOTERS HAS TAKEN 12 CR EQ AT A PRICE OF 22 RS. on 2005 . company has invested 45 cr for expansion. it will result future growth.

RESULTS:

http://vikasgranaries.in/wp-content/uploads/2010/02/31_12_2009.pdf

10 Deadly Trading Mistakes!

The following are 10 most common but deadly Trading Mistakes, which
traders should avoid at all costs. Anyone of them can literally
destroy one's financial dreams and goals!

1. Trading for excitement & thrill Not for profits.
Many traders consider stock market as casino and trade for thrill and
fun only. As soon as one has a losing trade, he wants to quickly make
back the lost money. He thinks about the other things he could have
done with the money, regret taking the trade and want to recover as
quickly as possible. This in turn leads to further mistakes. Be
patient and wait for the next high probability opportunity. Don't rush
back in.

2. Trading with a high ego.
Many individuals who have remained highly successful in other business
ventures have failed miserably in trading game. Because they have a
fairly big ego and thought they couldn't fail. Their egos become their
downfall because they can not except that they would be wrong and
refuse to get out of bad trades. Once again, whoever or wherever has
any one come from does not concern the markets. All the charm, powers
of persuasion, number of degrees & diplomas of business management on
the wall or business savvy will not budge the market when you are
wrong.

3. Three 4-letter words that will kill you! HOPE--WISH--FEAR--PRAY
If you ever find yourself doing one or more of the above while in a
trade then you are in big trouble! Markets has own system of moving up
& down. All the hoping, wishing and praying or being fearful in the
world is not going to turn a losing trade into a winning one. When you
are wrong just use a simple 4-letter word to correct the situation-GET
OUT!

4. Trading with money you can't afford to lose.
One of the greatest obstacles to successful trading is using money
that you really can't afford to lose. Examples of this would be money
that is supposed to be used in any other business, money to be paid
for college/school fee, trading with borrowed money etc. Ultimately
what happens is that when someone knows in the back of their mind that
they are risking the money they can not afford to lose, they trade out
of fear and emotion versus logic and no emotion. If you are in this
situation It is highly recommend that you stop trading until you earn
enough to put into an account that you truly can afford to lose
without causing major financial setbacks.

5. No Trading Plan
If you consider yourself a trader, ask yourself these questions: Do I
have a set of rules that tell me what to buy, when to buy and how much
to buy, not just for the next trade, but for the next 10 trades?
Before I enter a trade, do I know when I will take profits? Do I know
when I will get out if I am wrong? These questions form the first part
of a trading strategy. There simply cannot be any expectation of
success if we can't answer these questions clearly and concisely.

6. Spending profits before you make them.
Nothing is more exciting then getting into a trade that blasts off and
puts you into a highly profitable situation. This can cause major
problems however, because this type of trade puts you in a highly
euphoric state and leads to daydreaming about the huge profits still
to come. The real problem occurs as you get caught up in the daydream
and expectations. This causes you to not be prepared to get out as the
market reverses and wipes off all your profits because you have
convinced yourself of the eventual outcome and will deny the reality
of the situation. The simple remedy for this is to know where and how
you will take profits once you enter the trade.

7. Not Cutting Losses or letting Profits run
One of the most common mistakes made by traders is that they let their
losses grow too large. Nobody likes to take a loss, but failing to
take a small loss early will often result in being forced to take a
large loss later. A great trader is not someone who has never had a
loss. Great traders have made many losses. But what makes them great
is their ability to recover quickly from a string of losses. Every
trader needs to develop a method for getting out of losing trades
quickly. Research and learn to apply the best methods for placing
protective stoploss orders. The only way to recover from many (small)
losing trades is to make sure the winning trades are much larger.
After a series of losing trades, it becomes difficult to hold a
winning trade because we fear that it will also turn into a loss. Let
your profitable trades run. Give them room to move and give them time
to move.

8. Not Sticking to your plans & Changing strategies during market
hours
If you find yourself changing your strategy during the day while the
markets are still open, be mindful of the fact that you are likely to
be subject to emotional reactions of fear and greed. With rare
exception, the most prudent thing to do is to plan your trading
strategy before the market opens and then strictly stick to it during
trading hours.

9. Not knowing how to get out of a losing trade.
It's amazing that most of the traders don't have any clear escape plan
for getting out of a bad trade. Once again they hope, pray wish and
rationalize their position. It must be kept in mind that market does
not care what you think. It does what it does and when you are wrong
you are wrong! The easiest way to keep a bad trade from going really
bad is to determine before you get in, where you will get out.

10. Falling in love with a stock (Just Flirt).
Many traders get fascinated by just a stock or two and look for
opportunities to trade in those stocks only ignoring the other
profitable trading opportunities. It is because they have simply
fallen in love with a stock to trade with. Such tendencies can be
suicidal as for as trading is concerned. It may cost any one dearly.

source:Gaurav S Mehta

WPIL LTD

(A Williamson Magor Group Company)

WPIL Limited dedicates itself to the cause of total customer satisfaction. The Company has to its credit a rich experience of more than 50 years in Designing, developing, Manufacturing, Erecting, Commissioning and Servicing of Pumps. Either with the help of erstwhile foreign collaborators such as JOHNSTON PUMPS for Vertical Turbines, HAYWARD TAYLOR for Submersibles and WORTHINGTON for Horizontals; or with the in-house R&D recognised by the Ministry of Science and Technology, Govt. of India, it has grown into one strong brand-WPIL. Understanding the importance of need based operation WPIL Limited now offer System Engineering and complete solutions to all kinds of water and waste water handling and transportation needs

WPIL is a pump making company earlier known as Worthington PUmps India ltd. Govt taken over by Mr.Prakash Agarwal of Hindusthan Udyog limited. The open offer was at Rs60.They hold more than 70 % stake in it. Company has JV with CLYDE WATER PUMPS UK,a multibillion dollar multinational PUMP making company. They have agreeed to manufacture PUMPS for SUPER CRITICAL THERMAL POWER PLANTs in INDIA which currently NO ONE MAKES, India doesn’t have the technology to make those pumps. Clyde has also given a commitment to outsource its major orders to INDIAN facility. The facility for making Pumps for Super Critical plants should be working by Dec09.They have also agreed to have a technology transfer to manufacture Pumps for Nuclear Power plants in INDIA. The company’s fundamentals have already improved and bear testimony to the fact the business is on track,. After the JV plant becoming operational the Revenues should increase by 100 % for next year.

Historical Benchmarks:

1952 Commenced Business Johnston Pumps India as JV of Johnston,US.
1982 License from Hayward Tyler,UK for Submersible Motor.
1983 JV with Worthington name changed -Worthington Pumps India.
1990 CW Pump- 33,100 M3./Hr.,2600 KW, 500 MW NTPC Power Stn.
1995 Association -(Worthington-Ingersol Dresser) ends & name WPIL.
1997 Export Order ($1.7 Million) from Vietnam-Inclined Pump.
2000 Major Breakthrough - $4.44 Mill - Four Lao PDR Pump Station.
2002 APGENCO - Vijaywada Thermal Power Station - CW Pump
2003 Turnkey contract for large CW Pump - NTPC Vindhyachal:500MW
2005 Completing large turnkey project for Drainage Pumping Station in Bagjola near Kolkata comprising of 19 large Propeller Pumps
2006 Major sea water pumps (Duplex SS) for Saudi Arabia-JANA.
2007 Joint venture with Mitsubishi-Japan for contract for Concrete Volute Pumps to be supplied for Indian Project.

Applications :
	Raw Water from River / Sea Clear Water Deepwell Water

Pumps :
	Vertical Turbine, Mixed & Axial Flow Pumps Submersible Pumps Horizontal Splitcase

Understanding the importance of need based operation WPIL Limited now offer System Engineering and complete solutions to all kinds of water and wastewater handling and transportation needs.WPIL is one of the largest players in the large pumps industry, which comprises industrial pumps, and large domestic and irrigation pumps. WPIL is primarily a manufacturer of large vertical pumps. Commencing with small size vertical pumps for use in irrigation, WPIL has upgraded its technology and expanded its product range to include vertical turbine pumps, vertical mixed flow pumps, vertical axial flow pumps, submersible pumps and horizontal pumps. It has successfully absorbed technology from its erstwhile foreign collaborators, and has managed to indigenize it. Specifically, it acquired its vertical2turbine pumps technology (the company's mainstay) from Johnston Pumps, submersible pumps technology from Hayward Tyler, and horizontal pumps know-how from Worthington. Its products are used in irrigation, mining, power, petroleum and chemical industries. The company's main strengths lie in its designed engineering capabilities. It has a very good R&D set-up at its Panihati factory, which is widely regarded as one of the best in the industry. Its future growth would depend upon growth in the power, oil and petrochemicals, chemicals, coal, water supply and steel sectors. Government expenditure in the above industries, and also on agriculture and irrigation, would create future demand for pumps. There can be good demand for WPIL's range of pumps from new power projects. Further, an augmentationof water supply scheme in major cities is expected to yield a demand for vertical turbine pumps. The company has an impressive client list, particularly in the power and irrigation sectors. Of late, it has been increasing its thrust on exports. It is also putting a greater emphasis on turnkey projects.

OPERATIONS:

 The Company continues to grow with a dramatic growth in sales and profits for the Financial Year 2008-09. It is extremely encouraging to see balanced growth across the 3 divisions. Furthermore, a strong order intake in this financial year gives a comfortable opening order back log to support this growth.   The   management of the Company has planned   for   enhanced infrastructural    requirement/   technical   expertise    and    marketing organizations to ensure this growth. Clear strategic focus on the verticals of Power /Municipal/ Irrigation and Industry is envisaged to continuously pursue new opportunities. Total  revenues  of  the Company for the year  2008-09  was  16606.99  lacs representing  a growth of 42.55% (Rs. 11649.65 lacs for the  previous  year ended  March, 31, 2008). The Net profit after taxation was Rs. 827.88 lacs as against Rs. 495.47 lacs in the previous year signifying a robust growth of 67.09%. Earnings per share grew by 167.04% to Rs. 10.39 from Rs. 6.22 of last year. This growth in sales and profits is a result of greater volumes achieved due to capacity expansions previously undertaken. This growth is also  due to enhanced market penetration in the Irrigation  and  Industrial sector  along with the growth of the Project division. The Company intends to further consolidate its market presence and increase its market share on the   back of clear marketing strategies and enhanced   manufacturing capacities. It is to be noted that considerable capital investment has been made this year to create these capacities.

OPERATIONAL REVIEW:

 Kolkata Division: 

The  Kolkata division of the Company has been greatly strengthened  by  the Taratala  facility and  this  enhanced throughput  led  to  an  impressive performance. The division executed prestigious orders for NTPC / RRVUNL/ AP EGENCO / NLC stations in the power sector and Maharashtra/ Andhra Pradesh Irrigation   departments in the  irrigation  sector.  It also   exported specialized pumps to Australia and Saudi Arabia.

The  Company  successfully  conducted  model test  for  large  volute  pump turbines for I & CAD Department, Andhra Pradesh in collaboration with  MHI, Japan. This should lead to further opportunities in this niche sector.There has been addition of large machines at both its Panihati and Taratala facility along with the addition of a new, fabrication facility at Ganipur. These additions will help to quickly convert its growing order book.

Ghaziabad Division: 

The division continues to enhance its capabilities and grow its revenues by another 50% in2008-09. The Horizontal pump facility increased its number as well as extended its capability to larger sizes and special materials. The facility has a large order book for its products and sees good growth in numbers. Alongside, the standard verticals and engineered submersibles have been continuously growing and serving the client base.

Infrastructure Division:  

The turnkey project division has been a very positive focus for the Company as it greatly enhances the Company's capability to serve its markets.  The enhanced offering by the Company satisfies a need rather than performs a function. The Company has now a very established team of professionals who understand and cater to the market needs. The division strengthened its presence in the Industrial sector by booking orders from Salem Steel Plant and Vedanta Aluminium.  Furthermore,  all projects  in  hand  at  NTPC/  Kolkata  Drainage/  Andhra  Irrigation   are progressing well and are in advanced stages of completion. Large number of prospects is being pursued and the division has good opportunities to grow.

FUTURE OUTLOOK:

On  the  strength of its strong order book and rapid growth  in  power  and infrastructure  sectors along with adequate steps taken by the  Company  to enhance  its  manufacturing  capabilities and strengthen  its  project  and service  teams  will  allow  the Company to translate  these  orders  into profitable  growth.  The Company is continuously on the lookout for new opportunities of growth in both its present environment and allied areas.

Financial statement:

	Quarter ended			Year to Date			Year ended
	200912 (3)	200812 (3)	% Var	200912 (9)	200812 (9)	%Var	200903 (12)	200803 (12)	% Var
Sales	51.80	31.49	64.50	137.32	92.91	47.80	158.19	109.35	44.66
Other Income	0.09	-0.06	LP	0.32	0.18	77.78	0.41	0.20	105.00
PBIDT	6.67	4.25	56.94	17.17	11.82	45.26	17.32	11.66	48.54
Interest	0.89	1.16	-23.28	2.77	2.99	-7.36	4.12	3.34	23.35
PBDT	5.78	3.09	87.06	14.40	8.83	63.08	13.20	8.32	58.65
Depreciation	0.36	0.30	20.00	1.03	0.83	24.10	1.16	0.78	48.72
PBT	5.42	2.79	94.27	13.37	8.00	67.13	12.04	7.54	59.68
TAX	1.73	0.98	76.53	4.32	2.82	53.19	3.70	2.15	72.09
PAT	3.55	1.81	96.13	8.73	5.17	68.86	8.28	4.95	67.27
Equity	7.97	7.97	0.00	7.97	7.97	0.00	7.97	7.97	0.00

Expecting min 6 cr profit in last quarter and company may end up with 16-18 e.p.s .for this year. Buy this company at c.m.p 194 sl 175 tgt 275 in a3 month time.

Bayer CropScience

Time to look at Bayer Cropscience . stock listed at nse one week back. and u can see the volumes in both exchanges stock has accumulated at 550 levels .and Friday it was closed at 560 results are at 20th jan. so u can see a big rally in the stock and it is a 10fv stock. and having 25 eps and last five years 180 t0 280 % dividend distribution . and it is also having land bank story.and seed bossiness to grow in next two years .

BCS extended a VRS scheme to its employees at the Thane plant and shut it thereafter. Currentlythe plot is empty and would be available for sale at appropriate valuations. As per media reports the land bank is estimated to be in the region of 108 hectares. At market valuations ofRs10cr/ha, the land bank is valued at around Rs1,000cr. We have conservatively factored in 50%discounted value of the Thane land in our estimates, which translates into Rs101/share

Buy the stocks which are having good fundamentals at this highly expensive market.

9 Tips for success of stock market investors

1. Never invest borrowed money

If you invest borrowed money, it is very tough to get real gains. Your real gains will be the left over money(if any) after you repaid the borrowed money with interest. Only few lucky fellows may find success with it and for others it will be a night mare.

With borrowed money, you don’t have freedom to leave the investments for long term. Even small things in the market leave you panic and you will end up with wrong decisions. Always, invest the money which you feel won’t impact your life even if you lose it.

2. Do your own research

The first thing to avoid is depending on the tips you get from brokers, colleagues or so… There is nothing wrong with listening to the tips, but if you make decision without doing analysis from your side then don’t blame them if you get negative result. It is your responsibility to make the decisions on your own understanding. If you don’t have time and knowledge to do the research on stocks, better go for mutual funds.

3. Buy in bear market, Sell in bull market

It is a dream of every investor and take resolutions to follow it when everytime they lose money, but rarely stick to it. Most of the invetsors end up with buying in bull market and selling bear market. Only a few who have guts to buy in bear market and can wait get the fortunes. Buying in bear market seems to be a simple thing, but when overall sentiment in the market is negative, it is very hard to take the wise decison.

4. Diversify, but not too much

Diversification strategy says "Don’t put all your eggs in one basket". It is always advisable to diversify your investments into a portfolio of selected number of scrips. But don’t diversify too much.

With over diversification, you hardly get any money. Stick to a few selected scrips which you believe can get you good returns and wait till your time comes.

5. You really need to think ‘long‘

Many say, long term investment strategy works. We agree, but what should be the time frame for long term investors ? some say, more than a year or two and some up to 5 years. For us, we don’t have any time frames. If you understand the scrip thoroughly which you are going to be invested in, then if it requires only 6 months to get most out of it or a decade to make a fortune out of it, it doesn’t matter.

Based on your comfort level with the scrip your time line may vary but your commitment to stay with scrip till you get the expected result is what differentiates the long term investors from the crowd.

6. Develop your own strategy

This is not only for the long term investors even for traders also. A strategy must be there on how/when to entry and exit the scrip. Just don’t follow others strategies, just look at them and customize it to your own needs. Your investment strategy should be simple, easy to follow and you understand it ‘in and out’ of it. Make necessary changes to your investment strategy whenever necessary based on your experience and observations. Without a own strategy, it is hard to get success in share market

7. Fundamental analysis works

Know the basics of stock market. Give some time to understand the investment concepts, process of how stock market works. Read about how to research a company, how to understand the balance sheet of the company etc.

You no need to be a regular reader of economic times but try to know the things like how budget impacts your investments. Most of the time, we give time to dream about our investments growing multifold but don’t really understand what factors impact our investments.

8. Don’t panic over small stuff

If you are a long term investor better don’t be fooled by so called stock market analysts, brokers or whosoever. They quite often create either unnecessary hype or panic which hardly happen.

Observe the things with open mind, when you really think some thing is really going to happen, take a wise decision but stay away from day to day hypes and panics created by media.

9. Does age matter ?

Share market investments are for wise men but not for others. Many say, starting investment in the young age is advisable as they can take more risk. May be, but if you are young why should you take more risk ?

Risk comes into picture when you don’t understand the things clearly. Even if you understand, some times the things may work in the other way. The difference is the ‘level of risk’. Take calculated risks.

We feel that if you understand the things properly it doesn’t matter whether you are in teens or in nineties. You may not agree with our opinion, but think… What is the age of warren buffet ?

Disclaimer: The above discussed points are our personal opinions. There may be many exemptions whatsoever. Please consider them only after your own analysis.

Dubai Sinks And Everything Grand Goes Down With It!

Dubai World May Renege on $ 60 Bn Of Debt, Reminds The World that the Ghosts of Bear Stearns, Lehman and Goldman Sachs are still around.

Dubai's Bust-Up like the Tequila Bonds of Mexico will push stocks of Indian entities with sizeable operations under the scanner-these would include L&T, Voltas, Punj Lloyd and PSL. Maybe warning shots for now, but surely signs of the times to come that massive debt brings in.

Just a year after the global downturn derailed Dubai's explosive growth, the city is now so swamped in debt that it's asking for a six-month reprieve on paying its bills - causing a drop on world markets Thursday and raising questions about Dubai's reputation as a magnet for international investment.

The fallout came swiftly after Wednesday statement that Dubai's main development engine, Dubai World, would ask creditors for a "standstill" on paying back its $60 billion debt until at least May. The company's real estate arm, Nakheel - whose projects include the palm-shaped island in the Gulf - shoulders the bulk of money due to banks, investment houses and outside development contractors.

In total, the state-backed networks nicknamed Dubai Inc. are $80 billion in the red and the emirate needed a bailout earlier this year from its oil-rich neighbor Abu Dhabi, the capital of the United Arab Emirates.

Markets took the news badly - with the Dubai woes and the continued fall of the U.S. dollar giving investors twin worries.

In Europe, the FTSE 100, Germany's DAX and the CAC-40 in France opened sharply lower. Earlier in Asia, the Shanghai index sank 119.19 points, or 3.6 percent, in the biggest one-day fall since Aug. 31. Hong Kong's Hang Seng shed 1.8 percent to 22,210.41.

Wall Street was closed for the Thanksgiving holiday and most markets in the Middle East were silent because of a major Islamic feast.
"Dubai's standstill announcement ... was vague and it remains difficult to discern whether the call for a standstill will be voluntary," said a statement from the Eurasia Group, a Washington-based research group that assesses political and financial risk for foreign investors interested in Dubai.

"If it is not, Dubai World will be going into default and that will have more serious negative repercussions for Dubai's sovereign debt, Dubai World and market confidence in the UAE in general," the statement added.

Dubai became the Gulf's biggest credit crunch victim a year ago. But its ruler, Sheik Mohammed bin Rashid Al-Maktoum, had continually dismissed concerns over the city-state's liquidity and claims it overreached during the good times.

When asked about the debt, he confidently assured reporters in a rare meeting two months ago that "we are all right" and "we are not worried," leaving details of a recovery plan - if such a plan exists - to everyone's guess.

Then, earlier this month, he told Dubai's critics to "shut up."

"He needs to produce a recovery plan that will be respected by those who want to do business with Dubai," said Simon Henderson, a Gulf and energy specialist at the Washington Institute for Near East Policy. "If he does not do it right, Dubai will be a sad place."

After months of denial that the economic downturn even touched the glitzy city-state, the Dubai government earlier this year showed signs of trying to deal with the financial fallout that has halted dozens of projects and touched off an exodus of expatriate workers.

In February, it raised $10 billion in a hastily arranged bond sale to the United Arab Emirates central bank, which is based in Abu Dhabi.

The deal - seen by many as Abu Dhabi's bailout of Dubai - was part of a $20 billion bond program to help Dubai meet its debt obligations. On Wednesday, the Dubai Finance Department announced the emirate raised another $5 billion by selling bonds - all taken by two banks controlled by Abu Dhabi.

Abu Dhabi's ruling Al Nahyan family has been more conservative with its spending, investing oil profits into infrastructure, culture and state institutions. During Dubai's real estate bonanza, the Nahyans saw their flashy neighbor race ahead with development plans and tourism plans that had plenty of hype but few details on how they would be pulled off.

Some did materialize. The more than 2,600-foot (800-meter) Burj Dubai is scheduled to open in January as the world's tallest building. But many other projects, including a tower even taller than the Burj Dubai and satellite cities in the desert, are still just blueprints.
Last week, Sheik Mohammed demoted several prominent members of Dubai's corporate elite and replaced them with members of the ruling family, including his two sons, one of whom is Mohammed's designated heir.

Businessmen who fell out of favor were closely associated with Dubai's phenomenal success. They include the head of Dubai World, Sultan Ahmed bin Sulayem, and Mohammed Alabbar, the chief of Emaar Properties, developer of the Burj Dubai and hundreds of other projects.

"He is trying to shake things up," said Christopher Davidson, a lecturer on the Gulf at Britain's Durham University and an author of two books on the UAE.

However, Davidson added, Mohammed's decision to replace those who helped put Dubai on the world map with his relatives might be "read as an increase in autocracy which does not look good internationally."

Not everyone is upset at Dubai Inc.'s transformation into a family business, analysts say.
Mohammed's latest moves may have pleased Abu Dhabi more than the foreign investors, but it is Abu Dhabi that still has the strongest incentives to save Dubai from its financial misery.

"By shifting the power base back to the family things are as they should be as far as Abu Dhabi is concerned," said Mohammed Shakeel, a Dubai-based analyst for the Economist Intelligence Unit.

After an expensive adventure in doing things the Western way, it's "going back to basics" for Dubai, Shakeel added.

Lanco Industries BUY (cmp : 43Rs)

Owned by Electrosteel Castings, Lanco Industries manufactures about 180,000 tpa of ductile steel pipes that are primarily used for the transportation of drinking water.

Backdrop: Water-related demand – thrust should continue We believe water and irrigation offers a very strong business opportunityfor Indian pipe manufacturers, in addition to the opportunity from the energy sector. A combination of greater government focus on irrigation,higher multilateral lending for water-related sectors and enhanced private sector participation in water supply projects increase the potential for rise in demand from this segment

Key focus area for the government according to 11th plan Irrigation remains a key focus area for the government and more so for the state governments due to the politically sensitive nature of the investments. Combined with water supply and the sanitation segment, which is essentially driven by the government plan for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) projects, this segment is thesecond-mostimportant focus for the government after the power sector as perthe 11th five-year plan. The 11th plan envisages ~US$83bn of investments in irrigation and wate supply and sanitation over FY08–12.Bharat Nirman programme – significant addition of 5.9m hectares of irrigation potential in four years Under the irrigation component of Bharat Nirman (the flagship programme ofthe government of India to improve infrastructure in rural areas), there was a four years target (FY06–09) to create additional irrigation potential of10m hectares. This was planned to be met largely through expeditious completion of identified ongoing major and medium irrigation projects in addition to minor irrigation schemes through surface flow and ground wate development. Irrigation potential added in five key states The programme succeeded in creating additional irrigation potential of 5.94mPradesh, Maharashtra, Gujarat and Rajasthan leading the way, creating 66% of the additional potential among them. However, there still remains a deficitof 34.6m hectares irrigation potential in India. India’s estimated irrigation potential is around 139.9m hectares; after the four-year BharatNirman plan, the irrigation potential could be 105.3m hectares.

Andhra Pradesh remains the leader in providing thrust to irrigation investments the re-elected government in Andhra Pradesh has plans to double spending on irrigation over the next five years. This could also lead to higher irrigation spending by neighbouring states such as Maharashtra and Madhya Pradesh. Urban Infra – rapid approval of projects augurs well for order inflows Investments in Urban Infra tend to be much in doubt given the fiscal scenario of state governments and urban local bodies. However, significan Jawaharlal Nehru National Urban Renewal Mission (JNNURM) projects have been approved during the past year, with project approvals having increased to Rs494bn from Rs270bn a year ago. The major positive is the increase in assistance released by the government of India (GOI) in the past year; that assistance has gone up almost three-fold from Rs29bn to Rs74bn. Water supply/sewage projects contribute 76% of total project Water supply, sewage and drainage projects account for 76% of all project approvals. The mass rapid transport system (MRTS) and roads follow with contributions of 10% and 7%, respectively. The top six sectors accountfor 97% of all the approved projects.32% of government’s contribution already disbursed – expect surge in order flows.

The total contribution of the central government is Rs234bn, representing 47% of the total project cost. The central government has already releasedRs74bn under the first instalment for 461 projects in 21 states and Union Territories. We view the release of funds by the government of India as a proxy to progress on the ground because funds are only released for specific projects for which detailed project reports (DPRs) have been approved. Given the strong activity on the ground, we expect a surge in orders in the areas of water supply, sewage and drainage during the next 6–12 months.

The Rs 650 crore entity had a reasonably good FY09, withafter tax profits at Rs 18 crore, that work out to Rs 5 in EPS. For the Q1to June 2009, Lanco Industries has reported a 24 per cent increase in Revenues to Rs 169 crore (Rs 136 crore), with after tax profits of Rs 9.8crore-a qoq jump of 50 per cent. With cost key raw material inputs having come down and rupee appreciation actually making imported coke cheap the margins of the corporate are looking up. At a prospective EPS of Rs 10 for FY10, Lanco Industries is the cheapest stock in the ductile pipes space. A reasonable PE for this type of business would be 7 to 10 giving the scrip a 12 month prospective price target of Rs 70 to Rs 100.