Wednesday, May 27, 2009

Smart Super Duper Stocks for June'2009

BASF India (Rs. 239.00) :Company is engage in production of high tech products like textile chemicals, Fluro chemicals, leather chemicals, crop protection chemicals, plastic-automotive chemicals and construction chemicals. During FY ended on 31st March 2009 the company has earned net profit of Rs. 59.37 crores on turnover of Rs. 911.89 crores. Company has equity capital of Rs. 28.19 crores and EPS of Rs. 21.06. Price to book value of the stock is Rs. 120.50. Company had already announced dividend of 70 per cent. Considering the current performance of the company future of the company looks bright. Invest on the counter in a phased manner.

Essar oil (Rs. 170.00)

The Company has crude oil refinery with big capacity. Operating profit of the company has increased by 19 per cent during FY 2008-09, which has changed the whole financial performance of the company and the company has become a turn around company. The company has registered gross income of Rs. 2677 crores during the period. EBITD of the company has increased by 18 per cent to Rs. 937 crores. Beside the company is planning investment of Rs. 350 crores for Ratna Gas Exploration Block and Rani Ganj CBM Block. Company has already finalized the deal for Kenyan Refinery. Investors may grab the opportunity to invest on the counter.

Tata Chemicals. (Rs. 225.00) : The leading company from chemical sector has earned net profit of Rs. 964.40 crores from gross income of Rs. 6023.15 crores during Q4 ended in March 2009. Company has equity capital of Rs. 234.06 crores. The stock trades in the market at price to book value of Rs. 158.87, which results in to EPS of Rs. 41.20. Company has recently paid dividend of 90 per cent. Considering the financial performance of the company future of the company seems bright. Stock quotes in the market at low PE ratio of 3.88. Invest on the counter to earn good return.

NTPC (Rs. 216.00) : Leading Company from power sector has failed to achieve its estimated target during 11th five year plan. Premium valuation allotted to the company on the basis of financial soundness of the company is not correct. It is not possible for the company to achieve target of 22GW power generation during 11th five year plan. Company has failed to achieve its targets due lack of water, fuel and power equipments. The stock trades in the market at the price to book value of 2.5, estimated on the basis of the company during FY 2009-10. Do not invest

in the company by looking at its secured income. Invest only after analyzing probability of timely completion of power project of the company.

Neyveli Lignite (Rs. 123.00) : At present the company is in the production of coal based lignite. The company has equity capital of Rs. 1677.71 crores and book value of Rs. 538.87 crores. The company has earned net profit of Rs. 1101.57 crores from the gross income of Rs. 2981.65 crores during Q4 ended in March 2009, which has resulted in to EPS of 6.57. Company has already paid 10 per cent dividend to the share holders. Stock quotes in the current market

at PE ratio of 14.31. Investors may plan investment on the counter in a phased manner. Grab the opportunity to invest on the counter.

REC (Rs. 137.00) : The Company is connected with power generation sector. Company has earned net profit of 860.15 crores from gross income of Rs. 3378.22 crores during FY ended in March 2009. The company has equity capital of Rs. 856.66 crores and book value of Rs.62.51. Considering the future scenario of power sector as well as rising demand for power future of the company seems bright. The company has already paid dividend of 30 per cent. EPS of the company is Rs. 10.02. Stock quotes in current market at PE ratio of 10.88. Invest on the counter for medium to long term is likely to prove to be beneficial for investors.

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