Sesa Goa plans stock split, bonus issue

Mumbai: Iron ore exporter Sesa Goa Ltd is going for a stock split and a bonus issue of shares. The board of directors of the company which met to consider final dividend, book closure date and the date of annual general meeting, also recommended a stock split and a bonus Issue.

The board of directors, at their meeting held on 22 January 2008, had declared an interim dividend for the year 2007-08 at Rs15 per share.

London-listed miner Vedanta Resources owns a controlling stake in Sesa Goa. Vedanta Resources Plc bought the stake from Mitsui & Co for $981 million, beating rivals, including Arcelor Mittal, to secure supplies of the steel-making raw material.

Vedanta, the biggest producer of copper and zinc in India, paid Rs2,036 ($49) per share for a 51 per cent stake. Vedanta will offer to buy a further 20 per cent for at least the same price. Adviser Nomura Holdings Inc. will lend $1.1 billion to fund the takeover.

Chairman Anil Agarwal beat two fellow Indian billionaires, Lakshmi Mittal and Kumar Mangalam Birla, to secure supplies of iron ore China needs to fuel its economic boom.

Competition for Sesa Goa drove its shares to a record Rs2,000 on 29 January, valuing the miner at $1.8 billion. India has the world's fifth-biggest iron-ore reserves.

Vedanta said 71 per cent of Sesa Goa will cost $1.37 billion, which it will fund using the loan from Nomura and its own cash.

Satyam to invest Rs 380 cr in overseas acquisitions

As part of its expansion plans to diversify its revenue base, Satyam
Computer Services is investing over $95 million (around Rs 380 crore)
in a couple of acquisitions abroad.

The company has entered into an agreement with Caterpillar Inc, the
world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines and industrial gas turbines.

The deal for Satyam to acquire Caterpillar' s market research and
customer analytics (MR&CA) intellectual property and assets is $60
million (Rs 240 crore).

Strong BUY - Binani Cement Ltd @ CMP - Target Rs.105/-

Strong BUY - Binani Cement Ltd @ CMP - Target Rs.105/-
with in 3 Weeks.

BSE Code : 532849 & NSE CODE : BINANICEM

BUY "Orient Abrasives Ltd" @ CMP. Target with in 4 weeks is above 35

BUY "Orient Abrasives Ltd" @ CMP. Target with in 4 weeks is above
Rs.35/-.

BSE Code : 504879
NSE CODE : ORIENTABRA

Alembic Q4 net jumps

Alembic Limited reported net sales for the year ended March 31, 2008
at Rs 1027 crore (up by 42%) compared to Rs 722 crore in the year-
ago period, while net profit for the year ended March 31, 2008 rose
by 59% to Rs 112 crore, as against Rs 71 crore posted in last
fiscal.

Sales for the fourth quarter stood at Rs 268 crore, a growth of 58 %
as compared to Rs 169 crore in the fourth quarter of the
corresponding previous year. The Company reported a net profit of Rs
15.34 crore for the quarter ended March 31, 2008, a jump of 39 % as
against Rs 11.05 crore posted in the same period of last fiscal.

The Company's efforts of last few quarters to break into regulated
markets have started yielding results.

The Company's sales to regulated markets for full year was Rs.
189.02 crore against 49.87 crore in last fiscal while for the
quarter it was Rs. 71.72 crore against Rs. 11.25 crore in
corresponding quarter for the previous year.

Earnings per Share (EPS) for the year ended March 31, 2008 worked
out to Rs. 8.10 as compared to Rs. 5.10 for last fiscal.

The Company has declared dividend of Rs. 1.50 per equity share i.e.
75% for the year ended March 31, 2008, against dividend of Rs. 1/-
per equity share i.e. 50% for last year.

RPower to complete $2bn ECB issue next month

RPower to complete $2bn ECB issue next month Anil Ambani group's Reliance Power has identified HSBC, Standard Chartered and ABN Amro among other foreign banks for raising $2 billion of debt to help fund its ultra mega power project in Sasan. The company has received the Reserve Bank of India (RBI) approval for this external commercial borrowing (ECB) proposal to finance the foreign exchange portion of debt for Sasan and is looking to complete the process next month, sources close to the development said. Besides, the company is also in the process of finalising the names of local financial institutions for a domestic debt of about Rs 6,600 crore in the next few months, they added. When asked about the financing plan to raise Rs 14,600 crore of debt, a company spokesperson said that "the process is on", but declined to give further details. However, the sources said that the one-time approval from RBI would enable the company to raise low-cost funds for the project and would also facilitate a timely financial closure.Sources said that talks are on with leading foreign banks and the company has also appointed SBI Caps as arranger for the domestic debt. The due-diligence and appraisal process commenced last month and is expected to be completed by the next month. Out of the total capital outlay of about Rs 18,000 crore, the company is looking to raise Rs 14,600 crore through debt. Sasan is the country's largest domestic coal based power project at a single location in Madhya Pradesh. Shares of Reliance Power today surged 6.4 per cent at the BSE to close at Rs 384.35 in a firm market. The stock had plummeted to an all-time low of Rs 303.45 on March 24, marking a plunge of nearly 50 per cent from its all-time high of Rs 599.90 scaled in its debut trading session on February 11. Reliance Power had raised close to three billion dollar in an initial public offer earlier this year after selling shares at a price of Rs 450 a piece and at Rs 430 to retail shareholders. Despite an impressive response to the IPO, the shares had made a disastrous debut on the bourses and the stock closed below the issue price on the first day itself. In its bid to safeguard investors' interests, at a meeting on February 24, the company's board had approved a bonus issue of three shares for every five held by its non-promoter shareholders. Later in March, the company said it would seek shareholders' approval for the bonus issue worth about Rs 136.80 crore through postal ballot.

Bonus issues falls

NEW DELHI: The bull run is over for equity investors in more ways than one. While the sharp slide in the prices of a majority of scrips has hit investors, India Inc has also gone slow on rewarding shareholders. The number of bonus share issues dropped by a quarter in 2007-08. This marks the reversal of a three-year trend where, increasingly, more listed firms announced a bonus bonanza given positive sentiments of future earnings.

During 2007-08, 72 companies came up with bonus announcements. This is a drop of 24% compared to the 95 companies that announced bonus issues. According to ICICI Securities senior vice-president Ravi Sardana, “Companies have been using stock splits and bonus issues interchangeably to reward shareholders and, while bonus issues may be down, stock splits have crept up. Secondly, typically, companies go for bonus shares with a gap of 3-4 years. Since the numbers were already high and increasing in the recent past, the drop in the number of companies announcing bonus shares could be linked to that as well.”

Some companies that announced bonus issues in 2007-08 include Reliance Power, Siemens, Jai Corp, TV 18, NIIT, Unitech, Moser Baer, 3i Infotech, Praj Industries, Sun TV Network, Concor, Rajesh Exports, Bank Of Rajasthan and Nucleus Software.

Bonus issue represents an offer of free additional shares to existing shareholders. This is one of the ways of rewarding shareholders among other means such as a dividend payout. However, against a dividend that involves actual payout of money, in case of a bonus issue, the share price of the company adjusts accordingly to reflect the increase in the number of shares and, hence, neither the value of the company nor the value of holdings of a particular investor marks a change. More often than not, shareholders benefit indirectly as a lower trading price increases liquidity and investor interest, pushing up the stock price eventually.

New shares are issued to shareholders in proportion to their holdings as per the bonus announcement. The shareholders of a listed company on a specified date are considered existing shareholders who are entitled to the additional shares. Bonus shares are issued by companies through capitalisation of free reserves or profits. When a company announces a bonus issue, it is an indication of its management’s confidence to serve a larger equity base. This is through the expectation that it would be able to increase its profits and then come out with dividend payouts on a larger block of shares in future.

Stocks bought by mutual funds during market crash.

What are mutual funds buying during Stock market crash?

Mutual funds have bought following shares during various stages of market fall. this info is noteworthy in your investment plan.

14-Mar-08 Reliance Natural Resource Fund bought 2500000 shares of Ruchi Soya at Rs 87.5.

13-Mar-08 Hdfc Asset Managemant bought 258000 shares Ingersoll Rand at Rs 275.01

29-Feb-08 Hdfc Mutual Fund bought 200000 shares of Kalindee Rail nirman at Rs 450

29-Feb-08 Hdfc Fund bought 9.75 lakhs shres of NRB Bearings at Rs 72.24

28-Feb-08 Jm Financial Fund bought 20 lakhs shares of Rajesh Exports at Rs 120.3

25-Feb-08 Hdfc Mutual Fund bought 32.7 lakhs shares of IRB Infrastructure at Rs184.4

High risk high return scrips

DGP Securities(509695) :-
High risk investors should consider taking exposure to the scrip of DGP Securities.
According to some market rumors, the scrip is expected to witness a great deal of
buying from high networth individuals (HNI). One of the leading broking
firms has been recommeding this scrip to their HNI clients. With good
amount of buying expected the scrrp is expected to move upwards.

Hydro S&S Ind.(524019) :- Hydro S&S Industries
manufactures and supplies plastic products. According to news given
by some market khabri, the company is covered by a small brokerage
house, due to which it is expected to appreciate by 15- 20 per cent on
the bourses. Investors with high riskppetite may consider this scrip.

ANG Auto(530721) :- ANG Auto stocks have fallen
significantly in the recent market crash. However, according to some
market rumours, the AGN Auto management may possibly go for a
buy-back in the coming months. If it does happen, this will surely help
the scrip to rise amply. If you are an investor with luck on your side,
you should seriously consider this Scrip.

Simplex Projects (532877) :- Simplex Projects is
likely to have a positive outlook owing to boom in the infrastructure
sector. According to reports collected from some internal sources of
the company it is learnt that Simplex Projects is likely to increase its
margins in the coming months. This will certainly add significant value
and offer better prospects to the company. Investors who want to take
advantage of this hot sector should see this opportunity to make money.

JP Associate (532532) :- JP Associate has seen
enough correction in the past few weeks and is deeply oversold close
to the long-term supports. An investment buy is advised for the counter
as a sizeable rebound is expected because of Jaiprakash replacing
Bajaj Auto in the Sensex companies. Due to this big move technical
experts expect the scrip to appreciate by 15- 20 per cent from the
curren level in the coming days Investors can look at this counter for
making a decent gain.

Borosil Glass Works (502219) :- Borosil Glass is
likely to see some action in the coming days because according to
some rumour in the market the company is likely to go for some private
placement of its equity. Sniffing the opportunity some FIIs are
already coming forward to participate. If this development turns out to
be true expect the scrip to gain momentum and see it rising on the
bourses. Investors should consider this counter and take advantage
of the current development of events.

Unitech (507878) :- Unitech is in the areas of
construction of industrial projects and execution of housing projects
and export orders. The technical call is given for the stock as it is likely
to witness 15 to 20 per cent correction within the next couple of weeks
as a breakdown from reversal pattern has been spotted on daily chart
on above average volumes.

Escorts (500495) :- Escorts Construction Equipment,
India’s leading multi product construction equipment manufacturer from
the Escorts Group is in the news. It is rumoured tha that company is
expected to raise funds by selling its stake for further expansion. The
institutional investors likely to buy stake in the company will hold substantial
stake. If this turns out to be real, Escorts will certainly touch the charts.
Investors with risk appetite can look forward to invest in this scrip.

Bharat Heavy Electricals (BHEL).

An investment can be considered in the stock of Bharat Heavy Electricals (BHEL). Strong order-book, ongoing capacity expansion to meet Twelfth Plan target, entry into new business segments and efforts to tackle competition in the super-critical plants are factors that enhance prospects for earnings growth over the medium term. However, given the near-term capacity constraints, order book growth could slow down over the next year.

Invest with a perspective of at least three-four years so as ride the growth that the company is likely to witness through enhanced capacities as well as order inflows from newer segments.

At the current market price of Rs 1,879, the stock trades at 22 times the expected earnings for FY09. The current volatility in the market has resulted in valuations that are attractive compared to average historical valuations. Consider buying in lots to benefit from any declines linked to the broad market.

Natural Capsules Ltd.

Natural Capsules Ltd. was established in the year 1993 at Bangalore. The company has a well-equipped modern manufacturing plant to manufacture hard gelatin capsules shells, hard cellulose capsule shells and pharmaceutical dosage in capsules.

It has an equity of just Rs.4.28 cr., promoters hold 42.48% stake and the company paid 10% dividend last year.

In January 2008, its share price had touched Rs.49.75 level but it is now available at Rs.24. The company posted an EPS of Rs.4.30 for the first nine months of FY08 which may touch Rs.6 for the full year. Against the estimated EPS, the stock is trading at a P/E ratio of just 4.

The company will be allotting warrant and shares to promoters and promoter group at Rs.30. Buy with stop loss of Rs.19.50 for a medium-term target of Rs.28-30. Thereafter, stock will go up to Rs.35 and later to Rs.49 in the long run.

Bartronics India Ltd.

Bartronics India Ltd. is a 18-year old Hyderabad-based company incorporated in 1991. It initially started with providing solutions in Bar Coding - one of the oldest Automatic Identification & Data Capture (AIDC) technologies, Radio Frequency Based Identification (RFID), Point of Sale solutions (POS), Smart Cards. Thus it has an AIDC division, RFID division, Smart Card Division and Retail-IT division. The company has regional offices in Aurangabad, Delhi, Jamshedpur, Bangalore and Chennai with branch offices at Mumbai, Pune, Visakhapatnam and Coimbatore while its headquarter is at Hyderabad. Sudhir Rao is the managing director of the company.

The company has embarked upon an ambitious Rs.270 cr. expansion plan and commissioned a new Smart Cards manufacturing facility near Hyderabad. This opens up the smart cards technology as a new business venture for the company.

The share has the potential to cross the Rs.250 mark in a buoyant market. Good acquisition on every decline in these volatile times.

Torrent Cables Ltd. (Code: 504096)

Being the market leader in High Tension XLPE power cables,

Torrent Cables Ltd. (Code: 504096) (Rs.217) manufactures XLPE insulated cables in the voltage range of 1.1KV to 132 KV, Low-Tension (LT) power cables up to 1.1KV and High-Tension (HT) power cables up to 11KV. It also produces EHV, TRS flexible cables, welding cables, lift cables, colliery cables and specialty cables in the form of fire resistant low smoke cables (FRLS), railway-signalling cables, mining and trailing cables. It has a very exhaustive customer base spread over State Electricity Boards (SEBs), Utilities, EPC Contractors, government/semi- government companies, private companies, dealer network, consultants and many more. Apart from the SEBs, its clientele includes biggies like Tata Power, L&T, BHEL, ABB, Siemens, Alstom, Jindal, Reliance, Essar, Suzlon, NTPC, Railways, Powergrid, SAIL, Torrent Power etc. The rural electrification plans, APDRP programmes and government’s aim to achieve power for all by 2012 has resulted in increased demand for power related products like cables. Hence, for FY08, the company is estimated to clock a turnover of Rs.225 cr. with net profit of Rs.30 cr. i.e. EPS of Rs.40 on its small equity of Rs.7.50 cr. With a 52-week high/low of Rs.440/143, it’s a screaming buy as it can easily appreciate 50% within a year.

Lokesh Machines Ltd. (Code: 532740)

Lokesh Machines Ltd. (Code: 532740)

is engaged in the design, development and manufacture of custom built special purpose machines and general purpose CNC (computerised numerical controls) machines along with their components. Presently, it derives 70% revenue from the machining division whereas the balance 30% comes from its auto components division. The company caters primarily to customers in the auto OEM, auto ancillaries and general engineering space. Hence it supplies mainly to Tata Motors, Bajaj Auto, Force Motors, Cummins, Bharat Forge, Kirloskar Oil Engines, Everest Kanto Cylinders etc. with separate dedicated facilities for M&M and Ashok Leyland. Of late, it has also forayed into overseas markets with good orders. On the back of an encouraging performance for the first three quarters of FY08, it is estimated to register sales of Rs.105 cr. with net profit of Rs.13 cr. for FY08. This works out to an EPS of Rs.11 on its equity of Rs.11.80 cr. Considering its IPO price of Rs.140 in Arpil 2006 and 52-week high/low as Rs.168/60, it’s a screaming buy.

Manugraph India Ltd. (Code: 505324)

Manugraph India Ltd. (Code: 505324)
is India's largest manufacturer of web offset and sheet fed offset printing presses. With a whopping 70% market share, its printing presses are present in almost all major publication houses. In India, it has worldwide presence from Latin America to Europe and from the Middle East to China. Last year, it acquired Dauphin Graphic Machines Inc, the No. 1 company in the USA in the four page segment for US $19.20 million. With this acquisition it has become the world’s largest single width printing press manufacturing company. Accordingly, the US subsidiary has started outsourcing the component parts from India and even marketing Manugraph machines in North America. But due to the economic slowdown in USA, the response was not as good as anticipated earlier. Still on the back of robust domestic demand, it is expected to end FY08 with sales of Rs.400 cr. and PAT of Rs.50 cr. on a standalone basis. This translates into EPS of Rs.16 on its current equity of Rs.6.08 cr. with a face value of Rs.2. The scrip has been beaten down mercilessly from its recent high of Rs.205 in November 2007 and offers an excellent opportunity to buy. Also, its agreement of business co-operation for marketing with MAN Roland of Germany is under negotiation.

IOL Chemicals to invest Rs 300 cr for expansion

Punjab-based IOL Chemicals and Pharmaceuticals on Saturday said it will be investing around Rs 300 crore in its proposed extension plan in the next one year.

The company has acquired 65 acres of land for its backward and forward integration project.

IOL is also entering into a new segment of proton pump inhibitors by undertaking the implementation of project to manufacture Rabiprazole, and anti-ulcer drug and its derivatives.

STRONG BUY CALL ON EASTERN SILK LTD@180.

Great buy now.promoters agreed to announce stock split
1:5 in april.so eps for fy 08 is 62 ( 72 with europre
company profits).fy 09 eps 80 (100 with europe
company).volume is very less.so accmulate now.you wont
get shares after 10days.target 356 later will move to
720.

Eastern Silk is close to buying a company in Europe.
Sources said that the deal size is seen at USD 30-60
million. They added that Eastern Silk is eyeing
Bangalore-based Kurlon too. Kurlon has 300 retail
outlets and plans to add 100 more in FY08. The
overseas acquisition is expected to add 20% to the
FY08 bottomline.

NOTE: stock split has already approved by share
holders in sep 2007 egm.bod is ready to announce
record date in april.so accumulate.

Suven Life Sciences in US $23 mn drug deal with Eli Lily

Suven Life Sciences has entered into an agreement with Eli Lilly to collaborate on the pre-clinical research of molecules in the therapeutic area of central nervous system disorders.

As per the agreement, Suven will be responsible for discovery activities related to the identification and selection of clinical candidates in the area of central nervous system disorders, in close association with Eli Lilly, US based global pharmaceutical company.

Suven will receive research funding and as well as potential discovery and development milestone payments in the range of $19 million to $23 million per candidate and potential royalties on net sales of any products that may be successfully commercialised from the collaboration.

At current market price, we are advising investors to "HOLD & ACCUMULATE" this scrip for long term.