FIFTY FIFTY By Kukku

The Chemical Business Division Company of Excel Inds. (Rs.45) has maintained its leadership position in several products mainly due to economic size capacities, superior technologies and image with the customers for quality and reliability. This leading position continues to provide good growth opportunities to the company.

The company continues to improve process economics to improve margins. Efforts are also on to increase volumes by regaining the market share in India and by tapping newer export markets. The company is exploring opportunities to reposition some of its bulk products for the retail market, which is expected to fetch higher unit realisation. In addition to regular manufacture and sales, the company has accepted toll manufacturing to increase plant utilisation. Lower import duties compelled the company to adjust prices to meet the competition form imports. In general, the business environment favours end producers of agrochemicals as far as input prices are concerned. The prices of various raw materials, both crude oil based and others increased sharply during the year, but the last quarter has seen certain stabilisation. The current fall in crude prices will help it to put in a better performance during 2006-07, which may mark its turnaround in the current year.

Investors with long-term view can keep a watch on this stock for investment.

* Voltas (Rs.1033) Following its earlier phase of consolidation, the company has achieved its highest ever PAT of Rs.70.49 cr. and is said to be faring very well in current year. In the June’06 quarter, it reported 32% growth in top-line while net profit went up by 31% to Rs.21.75 cr. due to 223% higher provision for tax. Investors should continue to hold this stock as the order book position of the company is said to very healthy.

* Garnet Construction (Rs.46) is expected to come out with better performance in the second quarter. Seeing to the volumes, speculative position seems to be building up. Investors should stay invested.

* Investors should continue to hold Fortis Financials (Rs.58).

* Although TRF (Rs.365) operates at low margins, it is very likely to report sharp growth in top-line. Investors should continue to hold this stock.

* Keep a watch on Everest Kanto (Rs.475) for an upmove.

* Jai Prakash Associates (Rs.471) is one of the strong fundamental stocks with strong order position for infrastructure projects and also has large capacity in cement. Stock is attracting the attention of large investors of some leading broking firms. The company is planning to raise its cement capacity from 7 to 18 million tones by 2008. Investors should continue to hold this stock with good long-term target.

* Pratibha Industry (Rs.185) may post a turnover of Rs.350 cr. and a net profit of Rs.22-23 cr in FY07 and a turnover of Rs.450-475 cr. in FY08 plus Rs.250 cr. from the new plant for the pipes division. Net profit in FY08 is likely to be around Rs.40 cr.

* Nicco Ltd. (Rs.17.5) is attracting the attention of investors. After CDR approval, the Reliance Group is said to be taking an interest in the stock. Investors should continue to hold the stock.

* We have continued our thrust on increasing the exposure to cement/hotel stocks by switching over from sugar stocks and it worked very well, as many of the recommended cement stocks like Ultratech, Birla Corporation, JK Lakshmi Cements, Rainbow Commodity, NCL Ltd., Shri Digvijay Cements, Mangalam Cements have all improved. It is expected that hotel stocks, too, are likely to give similar upmove in the next few weeks. Keep a watch on Taj GVK, Hotel Leela, EIH Associates, Kamat Hotels, Oriental Hotels, Jaypee Hotels to name a few.

* Ashiana Housing (Rs.172) has given good returns to investors who kept faith and bought this stock. Though housing stocks did not perform well last week, Ashiana Housing outperformed and closed the week at Rs.172 level. Investors should continue to hold this stock.

* Keep watch for an upmove in Greaves Cotton (Rs.350), Era Constructions (Rs.311), Gujarat Apollo Equipments (Rs.174), SKF Bearings (Rs.309). After long accumulations, these stocks may be heading for good upmove.

* Marathon Nextgen Realty & Textiles (Rs.1324) was recommended at Rs.225 level on 23^rd July’05. After that, there was bonus issue of four shares for every one share held. Thus its capital went up from Rs.84 lakh to Rs.4.21 cr. Now the stock price is ex bonus at Rs.1323 i.e. cum bonus price is Rs.5292. Thus the stock has become 23.52 times.

Reproduced below is the earlier recommendation:

“Keep a watch on Marathon Nextgen Realty & Textiles Ltd. (Rs.225.75) its project is situated at Lower Parel, which is currently the most sought after address in Mumbai. Company would benefit immensely from these developments. Its capital is just Rs.84 lakh. Its buildings ‘Innova’ & ‘Emperor’ are ready for fitment and 3rd project ‘Era’ its first phase will be ready by Sept’ 06 & 2nd phase will be by Sept’07.”