LIFE LEARNED LESSONS BY SEVAK

Fundamental Call on July 06, 09 Co: Sasken Communication Reco: Buy CMP: Rs 100-102 (Around), Target: Rs 114 (1-2 month), Rs 160(6-12 months) Best Buy: Rs 94 (accumulate dip around this level).

Fundamental Call onJune17, 09: By Praveen Kr Sevak Co Name: Kolte Patil Dev. Ltd. Reco: Buy CMP: Rs 46 (around) Target: Rs 60-64 (1-2 months), Rs 138.4 (6-12 months) Best Buy: Dip around Rs 40 (accumulate at this level) Investment Rational: 1. Fundamentally talking, though the company has recorded negative growth in Dec Quarter 2009, yet it is pretty attractive. Currently it is trading at a PE multiple of 3.2X and PB of 0.54, that is very attractive compare to peers in this industry. Its profitability margin is also attractive PBDIT margin is above 40% and PAT margin is25 % (approx). Moreover, It has a DE (Debt Equity ) ratio is 0.15 and current Ratio is 1.35, that is again fair enough to buy and hold the share. 2. It is in the business of Real Estate development especially Residential Properties, Commercial properties and IT parks as well. The company has enough experience in this segment, as they have already developed more than 25 such projects sinc...

Dear All, As like always, Today again I am with a new Fundamental Recommendation. Most of the time, I have come up with out of sight under valued stock not in list of nifty 50. And, almost all the time the picks have achieved the target and outperform the benchmark index NIFTY. You can take the review posted time to time and would be posted soon. Fundamental call on May29, 09; By Praveen Kr Sevak Co Name: Accentia Tech Reco: Buy CMP: Rs 125-127 (Approx) Best Buy Level: Dip around Rs 110-115 (Accumulate at this level) Target: Rs 150 (1-2 month), Rs 225(6-12 months) Investment Rational: 1. Fundamentally talking, Net profit of Accentia Technologies rose 26.51% to Rs 6.30 crore in the quarter ended March 2009 as against Rs 4.98 crore during the previous quarter ended March 2008. Sales rose 22.90% to Rs 20.93 crore in the quarter ended March 2009 as against Rs 17.03 crore during the previous quarter ended March 2008. For the unaudited full year, net profit rose 85.0...

Fundamental Call on May25, 09: By Praveen Kr sevak Co Name: IoB (Indian Overseas Bank) Reco: Buy CMP: Rs 85-88 (Buy in small Quantity at current level) Best Buy level: Dip Around Rs 70 (accumulate at this level) Target Price: Rs 98 (1-2 month), Rs 157 (6-12 months) Investment Rational: 1. In Q4 of FY 09, IoB has registered 22% increase in its operating income and 5.37% increase in its net profit. 2. In the FY09, It has registered 10% rise in Net Profits and had come up with recoveries in its bad debts, which causes it profit to be up by this amount. 3. In a First of its kind deal, EXIM Bank and IoB have come together to co-finance Akshay Katrina Starer De Dhana Dhan produced by Venues Records and directed by Priyadarsan. The movie is expected to have a budget of Rs 70 cr and EXIM would give Rs 15 cr and IoB would give Rs 10 cr at a rate of 12.5-13%. 4. It is currently tradind at a PE multiple of 3.7 and PB of 0.80. It is expected to see Rs 157 level at a PE multiple of ...

Fundamental Call on May14, 09: By Praveen Sevak Co Name: Elgi Equipment Reco: Buy CMP: Rs 36.5 (around) (Buy in small quantity at CMP) Best Buy Level: Rs 32 (around) (accumulate dip around this level) Target: Rs 43-45 (1-2 months), Rs 62 (6-12 months) Investment Rational: 1. Elgi, the market leader and Asia's largest manufacturer of air compressors and automobile service station equipment, has incorporated a wholly owned subsidiary company in China also. And already, it has presence in all the major markets across the world covering Europe, North America, Latin America, Africa, Australia, Middle East, South east and west Asia. 2. It is a debt free company and have almost maintained growth even in the downturn also. 3. Though its Net Sales and Net profit has gone down in the 4th quarter of FY 09, it has managed to increase its profitability margins that clearly shows its competitive advantage over its peers.

Buy MIC Electronics Co Name: MIC Electronics, CMP: Rs 23.85, Best Buy Levbvel: At CMP or Dip around Rs 21 Target Level: Rs 30(1-2 month), Rs 65 (6-12 months)

Stock: Vakrangee Software Reco: Buy CMP: Rs 36.7 Best Buy Level: at CMP or dip around Rs 32 Target: Rs 50-52 (1-2 months), Rs 80(6-12 months)

Buy Jhunjhunwala VanaspatiWith Short as well as Long Term View Co Name: Jhunjhunwala Vanaspati Ltd Reco: Buy CMP: Rs 72 (Dec05,08) Best Buy Level: Dip around Rs 65 (accumulate at or below this level) Target Price: Rs 82-85 (1-3 months), Rs 120(12-18) months Investment Rational: 1. Fundamentally, The company performance is quite consistant and it is registering very impressive growth in its Top Line ( Net Sales) and Bottom Level (PAT) of around 50% and 70% consequtively on average basis. It has EPS of Rs 48 (approx) so PE of 1.5 and BV = Rs 132. 2. 58% of its earnings comes from vanaspati oil and rest from soya, palm and Mustard oil. And, it has 35-40% market share in UP and Bihar. And, it has increased its market share over period of time. At the same time. the company has plans to increase its total capacity and to establish nes units in Bihar and West Bengal as well. Moreover, It has taken over a fertilizer comapany in Bihar to enter in Fertilizer segment.

Co Name: HCL Tech Reco: Buy CMP: Rs 120 (around) Best Buy Level: Dip around Rs 112-115 (accumulate at this level) Target Price: Rs 135 (1-3 months), Rs 170 (6-12 months) Investment Rational: 1. Fundamentally, The company is back on track in Q2nd of this year. In fact company has registerd growth in its operating profit in Sep Quarter YoY, this also when global scenario is very gloomay. Still, the co. has PBITA margin and PAT margin above 20%. Another positive thing is, it is almost debt free company. At the same time, it has Div Yield 2. HCL which is widely acknowledged as a pioneer and a leader in global delivery of infrastructure management, has received a 'Positive' rating in Gartner's MarketScope for Remote Monitor Services (Global)' and MarketScope for Remote Support Services (Global). HCL was one of 26 vendors evaluated for the remote support services report and one of 27 for the remote monitoring report.

Co Name: Punjab National Bank Reco: Buy CMP: Rs 445 (around) Best Buy Level: Dip around 420-425 (accumulate at and below this level) Target Price: Rs 475-480 (1-3 months), Rs 530(12 months) Investment Rational: 1. Fundamentally, PNB is amongst the more profitable and competitive PSBs, with relatively moderate but steady Earnings growth and strong RoE prospects. 2. At Rs 445, the stock is trading at 4.8x FY2010E EPS of Rs 92.5 and 0.9x FY2010E Adjusted Book Value (ABV) of Rs 480.4. We expect the bank to deliver about 20% RoE over FY2008-10E and maintain high RoEs relative to peers over the longer term as well, underpinning higher valuation multiples.

Co name: Essar Oil Reco: Buy CMP: Rs 71 Target Price: Rs 80 (1-3 months), Rs 120 (6-12 months) Best Buy: Dip around Rs 60 (Accumulate at this Level) Investment Rational: 1. Comapany has registered turnaround in their sales and profit as well in the last two quarters Q1 & Q2 of this year. And, the refinary margins of the company is expected to go upin coming quarters. 2. Essar Oil's fund-raising is also weighing on the stock. The company is spending US$ 6 billion to expand its refining capacity in Gujarat to 6.80 lakh barrels per day by 2010. It hopes to raise US$ 3.5 billion in 12-year, rupee-denominated loans underwritten by SBI, ICICI Bank and IDBI Bank. It will also raise US$ 1.5 billion in foreign currency loan from Standard Chartered and ICICI Bank. That's why the stock has seen this much low level. At the same time, Recently, Essar Oil signed a product sale, purchase and infrastructure-sharing MoU w...

Co Name: Suzlon Energy Reco: Avoid CMP: Rs 41 (around) Investment Rational: 1. Fundamentaly The company performance does not auger well. It PAT margin has come below 1% in Q2 FY09, which used to be above 15-20%. In Q1 and Q2 it has registered substantial negative growth in its PAT growth. 2. The company is facing Technology problems also in its products and at the same time facing problem of Cash crunch that will impact its future plans.

Co Name: HDIL Reco: Buy CMP: Rs 73 Best Buy Level: Dip around Rs 65-70 (accumulate at this level) Target Price: Rs 90 ( 3-6 months), Rs 140 (12-18 months) Investment Rational: 1. Fundamentals are good: In the Q1 & Q2 of FY 09 it has posted good results despite all the negative sentiments. Currently, its available at PE of 1.35 and PBV of 0.50. It has prety impressive PAT Margin of 53% and Operating Profit Margin of 88%. Moreover, it has DE ratio below 1. 2. Currently, its trading at all time low level. Though "Rollovers from banks are increasingly becoming difficult for realty players, leading to fund crunch," notes the report, highlighting the fact that "around Rs 5.5 billion (14% of the total debt) is due for repayment in the next six months and land payment dues are currently around Rs 4 billion." Also, rehab construction in Phase-I of MIAL project would require another Rs 3 billion over the next 12 months, it ad...

Co Name: Sintex Ind. Ltd Reco: Buy (Continue) CMP: Rs 160 Best Buy Level: Rs 140-145 (Accumulate dip around this level) Target Price: Rs 210 (For 3-6 months), Rs 280 ( For 12-18 months) Holding Period: 12-18 months Investment Rational: 1. Sintex Industries' net profit rose 62.5% to Rs 68.24 crore on a 37% rise in sales to Rs 438.90 crore in Q2 September 2008 over Q2 September 2007. Other Fundamentals are also good like PAT margin and PBIDTA margin as well as ROCE and RONW (all above average compare to peers). 2. Operating profit margins for plastics fabricator Sintex rebounded sharply on a sequential basis to 16.7 per cent, a jump of over 565 basis points. The Rs 2,274 crore firm, however, posted higher consolidated revenues, up 85 per cent and a consolidated net profit of Rs 84 crore, up 87 per cent. The key plastics segment--- custom moulding, prefabricated and monolithic structures---was the main growth driver in Q2FY09, growing ...

Fundamental Call On Nov 12, 08 Company name: Gitanjali Gems Reco: Buy CMP : INR Rs81-82 Target Price: INR 120 Holding Period: 6-12 monthsBest Buy Level: Dip around INR 72-74 (accumulate at this Level) Investment Rational: 1. Good fundamental results in Q1, Q2 and steady good results in previous quarters also despite dismal macro economic picture. In 2nd Q FY09, it has registered 21% groth in Net sales and 31% growth in PAT. 2. Promoters continue to increase their holding day by day. And, The company has signed a MOU with MMTC to garner growth.

Co Name: UCO Bank Reco: Buy CMP: INR 31 (Approx) Target: INR 46.5Holding Period: 6-12 months Best Buy Level: Dip Around INR 26-28 Investment Rational: 1.Strong half yearly results, 2. Ggovt.aided restructuring plans

Fundamental Call From Sevak Company Name: Core Projects& Technology Ltd. Reco : Buy CMP: INR 41 Target: INR 140 Holding Period: 12-18 months Best Buy Price Level: INR 36-38 ( Accumulate Dip around this level) Investment Rational: 1. The company is in software development related to Education and so it will be less impacted of global slowdown in demand of IT services. This also reflects in its financial performance. It has registered 3 yr CAGR in Net Sales = 183%, Net Profit = 145%. 2. Core Projects & Technologies has been awarded a prestigious contract to implement FAIM, its Admissions and Examinations Management System, by the Karnataka State Open University (KSOU) on 24-09-08. FAIM is Core's flagship product in the examinations management segment and is presently being used successfully in eight African countries, three Caribbean countries and more than 25 institutions in the UK. The contract with KSOU represents a significant breakthrough for CORE in the Indian subcont...

Company Name: Aegis Logistics, Reco: Buy CMP: INR 70 Target Price: INR 210 Holding Period: 12-18 months Best Buy Level: INR 65-67 (Accumulate at INR 65 level) Investment Rational: 1. Aegis, a leader in oil and gas logistics, is expanding its liquid storage capacities to ride the soaring demand for oil and petroleum products, In order, It has acquired a) Sealord Containers (Storage Capacity-75000 kl), also acquired Konkan Storage System (Storage Capacity 51000kl). 2. Currently trading at a PE of 3.9, Div Yield = 6.4%,

Stock Name: Chennai Petroleum Corp. Ltd ., Reco: Buy CMP: INR 160 Target Price: INR 240 Holding Period = 6 - 12 months Best Buy Price: Dip Around INR 145-150 ( which may come in few trading sessions) Investment Rational: 1. Currently trading at a PE of 1.6, Div Yield = 10.25 % 2. 5 yr CAGR of Net Sales = 28.39% and that of Net Profit = 29.96%.

Co name: Sintex Industries Reco: Buy CMP: INR 216 Target: INR 350 Holding Period: 6-12 months Best Buy Level: Dip around INR 200-210 Investment Rational: 1. Sintex Industries Ltd (SINTEX) reported a revenue growth of 84.9% y-o-y to Rs 7198.4 million. The net profits also improved by 86% to Rs 838 million as against Rs 450 million in Q2FY08. 2. It has presence in potential markets India and abroad and it has well diversified business model among Textile, Plastics and Pre-Fab segments (Telecom Sector).