3/4/2013
Buy Swan Energy Ltd For Target Rs. 142.00
Swan Energy an Indian infrastructure player with a successful track record in execution of real estate projects & its set to tap the positive growth tailwind in the Indian power sector
* During the third quarter ended the robust growth in the Net Profit of the company and it is rose by 97.81% to Rs.49.79 million.
* Revenue for the quarter rose 139.61% to Rs.659.10 million from Rs.275.07 million, when compared with the prior year period.
* Profit before interest, depreciation and tax is Rs.118.63 millions as against Rs.45.82 millions in the corresponding period of the previous year.
* The company subsidiary, 'Cardinal Energy and Infrastructure Pvt. Ltd has acquired two semi-finished commercial properties at Bengaluru and Hyderabad.
* Swan Energy focusing on innovations in Textile development processes & products towards quality enhancement & reduction in operational cost as future plan.
Investment Highlights
Results updates- Q3 FY13,
Swan Energy an Indian infrastructure player with a successful track record in execution of real estate projects & its set to tap the positive growth tailwind in the Indian power sector, reported its financial results for the quarter ended 31st Dec, 2012. The third quarter witnesses a healthy increase in overall sales as well as profitability of the company.
The company’s net profit jumps to Rs.49.79 million against Rs.25.17 million in the corresponding quarter ending of previous year, an increase of 97.81%. Revenue for the quarter rose 139.61% to Rs.659.10 million from Rs.275.07 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.0.52 a share during the quarter, registering 97.85% increase over previous year period. Profit before interest, depreciation and tax is Rs118.63 millions as against Rs.45.82 millions in the corresponding period of the previous year.
Outlook and Conclusion
* At the current market price of Rs.124.00, the stock P/E ratio is at 31.66 x FY13E and 23.23 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.3.92 and Rs.5.34 respectively.
* On the basis of EV/EBITDA, the stock trades at 14.02 x for FY13E and 9.62 x for FY14E.
* Price to Book Value of the stock is expected to be 5.23 x and 4.27 x respectively for FY13E and FY14E.
* We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.142.00 for Medium to Long term investment.
Buy NATCO Pharma Ltd For Target Rs.473.00
NATCO Pharma Ltd engaged in the manufacture, sale of active pharmaceuticals ingredients and finished dosage formulations.
It offers APIs, including bulk drugs and intermediates for both Indian & International markets.
* The company’s net sales registered a 23.34% increase and stood at a record Rs. 1503.10 million from Rs. 1218.70 million over the corresponding quarter last year.
* The company’s net profit registered a 36.76% increase and stood at a record Rs. 243.70 million from Rs. 178.20 million over the corresponding quarter last year.
* The company has reported an EPS of Rs. 7.77 for the 3rd quarter as against an EPS of Rs. 5.72 in the corresponding quarter of the previous year.
* Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 27% over 2011 to 2014E respectively.
* The company has recommended payment of an interim dividend of Rs. 4/- per equity share of Rs. 10/- each for the year 2012-13.
* NATCO is one of the few Indian companies to venture into New Drug Discovery.
Investment Highlights
Results updates- Q3 FY13,
NATCO Pharma Limited engages in the manufacture and sale of active pharmaceuticals ingredients (APIs) and finished dosage formulations. It offers APIs, including bulk drugs and intermediates for both Indian and International markets, reported its financial results for the quarter ended 31 DEC, 2012.
The company’s net profit jumps to Rs.243.70 million against Rs.178.20 million in the corresponding quarter ending of previous year, an increase of 36.76%. Revenue for the quarter rose 23.34% to Rs.1503.10 million from Rs.1218.70 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.7.77 a share during the quarter, registering 35.80% increase over previous year period. Profit before interest, depreciation and tax is Rs.476.80 millions as against Rs.325.30 millions in the corresponding period of
the previous year.
Outlook and Conclusion
* At the current market price of Rs.419.00, the stock P/E ratio is at 14.84 x FY13E and 12.29 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.28.23 and Rs.34.10 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 27% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 7.92 x for FY13E and 6.73 x for FY14E.
* Price to Book Value of the stock is expected to be at 2.36 x and 1.98 x respectively for FY13E and FY14E.
* We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.473.00 for Medium to Long term investment.
Steel prices weak; Base metals decline 0-3% WoW
Steel prices weak; Base metals decline 0-3% WoW
* Indian long steel price (TMT Mumbai) declined by 0.9% WoW and while flat steel prices (Import parity) were flat WoW. Sponge iron prices
decreased 0.5% WoW while pellet prices increased 1.4% WoW.
* Steel prices were weak in most geographies. Prices declined by 1%, 2% and 2% WoW in China, CIS and North America respectively. Bao Steel, China expect 5.5% YoY decline in steel sales tonnage in 2013 owing to slower growth in downstream demand while steel production capacity continues to expand.
* Iron ore prices were flat WoW at USD136/t. Coking coal prices declined by USD1WoW to USD154.5/t.
* Base metals price were in downtrend with Aluminium, Zinc and Lead decreasing 1%, 2% and 3% respectively. Copper prices were flat WoW.
* The second-quarter European benchmark price for charge and highcarbon ferro-chrome has been settled at USD1.27 per lb, a rise of 14.5 cents over the previous quarter due to tighter supply from South Africa after producers implemented widespread shutdowns under power buyback deals.
Buy Supreme Infrastructure India Ltd For Target Rs. 247.00
Supreme Infrastructure India Ltd is one of fastest growing construction-constricting Company in Infrastructure space.
* During the quarter ended, the robust growth of Net Profit is increased by 43.57% to Rs. 359.21 million.
* The company has invested in 150,000 equity shares of Omani Royal 1 each in Supreme Infrastructure Overseas LLC, Sultanate of Oman for an aggregate amount of Rs.21.2 millions constituting 60% of the share capital of SIOL.
* Supreme Infrastructure current order book at around Rs. 5650 crores including L1 orders of about Rs. 1200 crores.
* Supreme Infrastructure India Ltd has received addition of Orders worth Rs. 505.25 crore.
* Revenue for the quarter rose 34.03% to Rs.5502.89 million from Rs.4105.83 million, when compared with the prior year period.
* Net Sales and PAT of the company are expected to grow at a CAGR of 38% and 23% over 2011 to 2014E respectively.
Investment Highlights
Results updates- Q3 FY13,
Supreme Infrastructure India Ltd is one of the fastest growing construction constricting Company in Infrastructure space, reported its financial results for the quarter ended 31st Dec, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability of the company.
The company net profit jumps to Rs.359.21 million against Rs.250.19 million in the corresponding quarter ending of previous year, an increase of 43.57%. Revenue for the quarter rose 34.03% to Rs.5502.89 million from Rs.4105.83 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.21.46 a share during the quarter, registering 43.57% increase over previous year period. Profit before interest, depreciation and tax is Rs.962.98 millions as against Rs.692.37 millions in the corresponding period of the previous year.
Outlook and Conclusion
* At the current market price of Rs.218.50, the stock P/E ratio is at 3.10 x FY13E and 2.60 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.70.57 and Rs.84.10 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 38% and 23% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 3.05 x for FY13E and 2.52 x for FY14E.
* Price to Book Value of the stock is expected to be at 0.78 x and 0.60 x respectively for FY13E and FY14E.
* We recommend ‘BUY’ in this particular scrip with a target price of Rs.247.00 for Medium to Long term investment.
Gold futures fall on global leads, firm rupee
Gold futures fell on Tuesday in line with overseas markets and on a firm rupee, with traders getting some respite after the finance minister suggested a hike in import duty on the yellow metal was unlikely.
* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 130 rupees lower at 29,897 rupees per 10 grams on a firm rupee.
* Overseas gold held below $1,600 an ounce on Tuesday as a slightly brighter-than-expected reading of euro zone manufacturing activity lifted stock markets, diverting interest from bullion.
* The rupee edged higher in range-bound trade, the first trading day of the new fiscal year, helped by bunched-up inflows, but a record current account deficit weighed on the currency's fortunes.
* India, the world's biggest buyer of gold, has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.
* Finance Minister P. Chidambaram suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling.
* "It's a temporary relief, the government has to now think about reducing duties," said Kumar Jain, vice chairman of Mumbai Jewellers Association.
SPCB issues showcause notices to five sponge iron plants in Odisha
In a serious blow to sponge iron plants operating in Odisha, the State Pollution Control Board (SPCB) issued showcause notices to five firms in 2012-13 for their failure to comply with pollution emission norms. The five sponge iron plants facing heat includes, Bhushan Steel Ltd, Adhunik Metaliks Ltd, Scan Steel Ltd, Maa Sakumbari Sponge Ltd and Thakurprasad Sao & Sons Ltd, minister for forest and environment Bijayshree Routray informed the state assembly in a written reply.
The companies were booked for violated Pollution Control Act 1981 and Water Pollution Control Act 1974. Besides, 17 sponge iron plants, including MSP Metaliks, Concast Steel & Power, Action Ispat & Power Ltd, KJ Ispat Ltd and Aarti Steels Ltd, were also issued direction for improvement by SPCB, Routray said. Last year, the board had slapped showcause notices to 73 sponge iron plants and closure directions to 26 units.
copyright 2013 vikasparshuram samwatsare

Swan Energy an Indian infrastructure player with a successful track record in execution of real estate projects & its set to tap the positive growth tailwind in the Indian power sector
* During the third quarter ended the robust growth in the Net Profit of the company and it is rose by 97.81% to Rs.49.79 million.
* Revenue for the quarter rose 139.61% to Rs.659.10 million from Rs.275.07 million, when compared with the prior year period.
* Profit before interest, depreciation and tax is Rs.118.63 millions as against Rs.45.82 millions in the corresponding period of the previous year.
* The company subsidiary, 'Cardinal Energy and Infrastructure Pvt. Ltd has acquired two semi-finished commercial properties at Bengaluru and Hyderabad.
* Swan Energy focusing on innovations in Textile development processes & products towards quality enhancement & reduction in operational cost as future plan.
Investment Highlights
Results updates- Q3 FY13,
Swan Energy an Indian infrastructure player with a successful track record in execution of real estate projects & its set to tap the positive growth tailwind in the Indian power sector, reported its financial results for the quarter ended 31st Dec, 2012. The third quarter witnesses a healthy increase in overall sales as well as profitability of the company.
The company’s net profit jumps to Rs.49.79 million against Rs.25.17 million in the corresponding quarter ending of previous year, an increase of 97.81%. Revenue for the quarter rose 139.61% to Rs.659.10 million from Rs.275.07 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.0.52 a share during the quarter, registering 97.85% increase over previous year period. Profit before interest, depreciation and tax is Rs118.63 millions as against Rs.45.82 millions in the corresponding period of the previous year.
Outlook and Conclusion
* At the current market price of Rs.124.00, the stock P/E ratio is at 31.66 x FY13E and 23.23 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.3.92 and Rs.5.34 respectively.
* On the basis of EV/EBITDA, the stock trades at 14.02 x for FY13E and 9.62 x for FY14E.
* Price to Book Value of the stock is expected to be 5.23 x and 4.27 x respectively for FY13E and FY14E.
* We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.142.00 for Medium to Long term investment.

NATCO Pharma Ltd engaged in the manufacture, sale of active pharmaceuticals ingredients and finished dosage formulations.
It offers APIs, including bulk drugs and intermediates for both Indian & International markets.
* The company’s net sales registered a 23.34% increase and stood at a record Rs. 1503.10 million from Rs. 1218.70 million over the corresponding quarter last year.
* The company’s net profit registered a 36.76% increase and stood at a record Rs. 243.70 million from Rs. 178.20 million over the corresponding quarter last year.
* The company has reported an EPS of Rs. 7.77 for the 3rd quarter as against an EPS of Rs. 5.72 in the corresponding quarter of the previous year.
* Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 27% over 2011 to 2014E respectively.
* The company has recommended payment of an interim dividend of Rs. 4/- per equity share of Rs. 10/- each for the year 2012-13.
* NATCO is one of the few Indian companies to venture into New Drug Discovery.
Investment Highlights
Results updates- Q3 FY13,
NATCO Pharma Limited engages in the manufacture and sale of active pharmaceuticals ingredients (APIs) and finished dosage formulations. It offers APIs, including bulk drugs and intermediates for both Indian and International markets, reported its financial results for the quarter ended 31 DEC, 2012.
The company’s net profit jumps to Rs.243.70 million against Rs.178.20 million in the corresponding quarter ending of previous year, an increase of 36.76%. Revenue for the quarter rose 23.34% to Rs.1503.10 million from Rs.1218.70 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.7.77 a share during the quarter, registering 35.80% increase over previous year period. Profit before interest, depreciation and tax is Rs.476.80 millions as against Rs.325.30 millions in the corresponding period of
the previous year.
Outlook and Conclusion
* At the current market price of Rs.419.00, the stock P/E ratio is at 14.84 x FY13E and 12.29 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.28.23 and Rs.34.10 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 27% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 7.92 x for FY13E and 6.73 x for FY14E.
* Price to Book Value of the stock is expected to be at 2.36 x and 1.98 x respectively for FY13E and FY14E.
* We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.473.00 for Medium to Long term investment.
Steel prices weak; Base metals decline 0-3% WoW
Steel prices weak; Base metals decline 0-3% WoW
* Indian long steel price (TMT Mumbai) declined by 0.9% WoW and while flat steel prices (Import parity) were flat WoW. Sponge iron prices
decreased 0.5% WoW while pellet prices increased 1.4% WoW.
* Steel prices were weak in most geographies. Prices declined by 1%, 2% and 2% WoW in China, CIS and North America respectively. Bao Steel, China expect 5.5% YoY decline in steel sales tonnage in 2013 owing to slower growth in downstream demand while steel production capacity continues to expand.
* Iron ore prices were flat WoW at USD136/t. Coking coal prices declined by USD1WoW to USD154.5/t.
* Base metals price were in downtrend with Aluminium, Zinc and Lead decreasing 1%, 2% and 3% respectively. Copper prices were flat WoW.
* The second-quarter European benchmark price for charge and highcarbon ferro-chrome has been settled at USD1.27 per lb, a rise of 14.5 cents over the previous quarter due to tighter supply from South Africa after producers implemented widespread shutdowns under power buyback deals.

Supreme Infrastructure India Ltd is one of fastest growing construction-constricting Company in Infrastructure space.
* During the quarter ended, the robust growth of Net Profit is increased by 43.57% to Rs. 359.21 million.
* The company has invested in 150,000 equity shares of Omani Royal 1 each in Supreme Infrastructure Overseas LLC, Sultanate of Oman for an aggregate amount of Rs.21.2 millions constituting 60% of the share capital of SIOL.
* Supreme Infrastructure current order book at around Rs. 5650 crores including L1 orders of about Rs. 1200 crores.
* Supreme Infrastructure India Ltd has received addition of Orders worth Rs. 505.25 crore.
* Revenue for the quarter rose 34.03% to Rs.5502.89 million from Rs.4105.83 million, when compared with the prior year period.
* Net Sales and PAT of the company are expected to grow at a CAGR of 38% and 23% over 2011 to 2014E respectively.
Investment Highlights
Results updates- Q3 FY13,
Supreme Infrastructure India Ltd is one of the fastest growing construction constricting Company in Infrastructure space, reported its financial results for the quarter ended 31st Dec, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability of the company.
The company net profit jumps to Rs.359.21 million against Rs.250.19 million in the corresponding quarter ending of previous year, an increase of 43.57%. Revenue for the quarter rose 34.03% to Rs.5502.89 million from Rs.4105.83 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.21.46 a share during the quarter, registering 43.57% increase over previous year period. Profit before interest, depreciation and tax is Rs.962.98 millions as against Rs.692.37 millions in the corresponding period of the previous year.
Outlook and Conclusion
* At the current market price of Rs.218.50, the stock P/E ratio is at 3.10 x FY13E and 2.60 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.70.57 and Rs.84.10 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 38% and 23% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 3.05 x for FY13E and 2.52 x for FY14E.
* Price to Book Value of the stock is expected to be at 0.78 x and 0.60 x respectively for FY13E and FY14E.
* We recommend ‘BUY’ in this particular scrip with a target price of Rs.247.00 for Medium to Long term investment.

Gold futures fell on Tuesday in line with overseas markets and on a firm rupee, with traders getting some respite after the finance minister suggested a hike in import duty on the yellow metal was unlikely.
* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 130 rupees lower at 29,897 rupees per 10 grams on a firm rupee.
* Overseas gold held below $1,600 an ounce on Tuesday as a slightly brighter-than-expected reading of euro zone manufacturing activity lifted stock markets, diverting interest from bullion.
* The rupee edged higher in range-bound trade, the first trading day of the new fiscal year, helped by bunched-up inflows, but a record current account deficit weighed on the currency's fortunes.
* India, the world's biggest buyer of gold, has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.
* Finance Minister P. Chidambaram suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling.
* "It's a temporary relief, the government has to now think about reducing duties," said Kumar Jain, vice chairman of Mumbai Jewellers Association.

In a serious blow to sponge iron plants operating in Odisha, the State Pollution Control Board (SPCB) issued showcause notices to five firms in 2012-13 for their failure to comply with pollution emission norms. The five sponge iron plants facing heat includes, Bhushan Steel Ltd, Adhunik Metaliks Ltd, Scan Steel Ltd, Maa Sakumbari Sponge Ltd and Thakurprasad Sao & Sons Ltd, minister for forest and environment Bijayshree Routray informed the state assembly in a written reply.
The companies were booked for violated Pollution Control Act 1981 and Water Pollution Control Act 1974. Besides, 17 sponge iron plants, including MSP Metaliks, Concast Steel & Power, Action Ispat & Power Ltd, KJ Ispat Ltd and Aarti Steels Ltd, were also issued direction for improvement by SPCB, Routray said. Last year, the board had slapped showcause notices to 73 sponge iron plants and closure directions to 26 units.
copyright 2013 vikasparshuram samwatsare
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