Mercator Lines

Mkt Cap 2,337.21
P/E 21.50
EPS (TTM) 4.63


Buy at CMP 94
Target 1: 107 (10 Days)
Target 2: 125 (1 Months)
Target 3: 148 (6 Months)


Reason to buy:
Mercator Lines is close to buying two dry bulk vessels and vessels deal size is seen at USD 110 million. Mercator Line’s Joint MD Atul Agarwal has confirmed that they definitely are looking at Chinese yards for these orders, but it is in discussion stage and nothing has been finalized yet.

Mercator Lines (Singapore) Limited, reported a strong 303.0% surge in net profit to US$52.2 million for the financial year ended March 31, 2008 (“FY2008”), surpassing its bottom line of
US$12.9 million in the previous year.” Mercator Lines India holds 72% shares in the subsidiary and will be consolidating these numbers with Mercator India’s results.

Crude prices have been surging to a new all time high, now reaching USD 125/bbl on supply threats. The shipping companies like Mercator lines which carry crude are likely to see higher prices, because the demand will be higher.

Fundamentals
Mercator Lines Limited is the second largest private sector shipping company in India (by aggregate fleet tonnage capacity).It has established a market presence in the Indian coal transport market, specializing in the transportation of dry bulk commodities such as coal into India from Australia and Indonesia, and iron ore from India to countries such as China, Japan and South Korea. The Group also provides its customers with complete and customized logistics solutions from the load port to the point of usage.
Mercator lines are the providers of sea borne transportation services, primarily involved in the transportation of crude oil in India and overseas. Total tonnage as on today stands at 23,40,838 DWT consisting of one very large crude carrier (VLCC); one Suezmax tanker; six Aframax tankers; two MR Tankers and one Panamax. Two vessels of aggregate tonnage of 1,55,840 metric tons were owned by subsidiary of the Company consisting of one panamax and other Kansarmax. In July 2007, the Company took the delivery of a Panamax vessel of 74,444 DWT.
The Company’s subsidiaries include Mercator International Pte. Ltd. Mercator Offshore Ltd., Mercator Lines (Singapore) Pte. Ltd., Varsha Marine Pte. Ltd. Vidya Marine Pte. Ltd., Mercator Lines (Panama) Inc. and Mercator Oil&Gas Ltd.
The Group services primarily large thermal-based power plants and steel companies, and has established strong relationships with its customers, including reputable names such as Arcelor Mittal Group and Tata Power. Mercator derives its revenue largely from long term fixed rate contracts, specifically time charters and contracts of affreightment (“COAs”). Ranging from 11 months to five years, Mercator’s long term fixed rate contracts ensure revenue visibility.

Key Indian Clients :
Manglore Refinery and Petrochemicals Ltd.
Indian Oil Corporation Ltd.
BG Exploration and Production India Ltd.
Reliance Industries Ltd.
Steel Authority of India Ltd.
M. Pallonji & Co. Pvt. Ltd.
Key Overseas Clients :
S. T. Shipping & Transportation Inc.
Dorado Tankers Inc.
Maruben International Petroleum, Singapore.

Awards and Recognition
The Chairman and Managing Director of the Company Mr. H. K. Mittal was awarded "Entrepreneur of the Year-2005-06" by The Economic Times of India and "The Entrepreneur of the Year Award Services-2005" by ERNST & YOUNG in November 2005.

The Company was awarded the "Star Company of the Year Award" in Small and Medium Sector (SME) by the leading financial newspaper, Business Standard in February 2005.

The Company was rated as "Fastest Growing Small Company of India" across all the sectors by Business Today in March 2005.

The Company was also nominated consecutively for two years for the "Emerging Company of the Year 2003-04 and 2004-05" by the Economic Times Awards for Corporate Excellence.

Prospects
According to the Drewry Publications, global demand for iron ore is expected to increase by 5.5% to 828.5 million tonnes, while demand for coking coal is expected to reach 236.0 million tonnes in 2008, and steam coal to arrive at 569.2 million tonnes in 2008. In addition to India’s growing position as a major coal importer, its “Power for All” mission to achieve 100,000 MW of power generation by 2012 will also greatly boost dry bulk demand. China, which accounted for 49.0% of seaborne iron ore imports in 2007, is set to maintain its position as major importer as its share of seaborne iron ore imports is expected to increase to around 55.0% by 2012. Based on the demand and the Group’s chartering philosophy of having the majority of its revenue driven from long term contracts, Mercator believes that the growth prospects going forward look promising and will continue to execute its strategic plans and identified growth initiatives.

Strategies and Future Plans
It added two prominent new customers in 2008 – Italian-owned, Singapore-based shipping group Siba Ships Asia Pte. Ltd. as well as Hong Kong-based shipping company, Refined Success Ltd., a subsidiary of leading PRC shipping conglomerate, COSCO (H.K.) Shipping Co., Limited, one of the largest dry bulk shipping companies in the world.
Tapping into the demand growth in the international markets, plans are in the pipeline to enlarge the Group’s fleet capacity, with the acquisition of a Very Large Ore Carrier (“VLOC” – 280,000 dwt) scheduled for delivery around December 2008 and two Post Panamaxes (92,500 dwt) scheduled for delivery between May and September 2009.
It recently purchased two of its chartered-in vessels, “YK Titan and “YK Taurus”, increasing its owned fleet to a total of nine vessels upon delivery. The Group presently operates a fleet of 11 dry bulk carriers, consisting seven owned and four chartered-in vessels, with an aggregate capacity of 829,057 dwt. YK Titan is scheduled for delivery between July 1 and August 31, 2008 whilst YK Taurus is scheduled for next month. Mercator also expects to exercise its purchase option for Ocean Senang, a December 1999-built geared Panamax at an attractive price of US$24.2 million.”

Buy list for Today

Here is my shopping list for today.
All these stocks can give a min of 30% return in a span of 6 months.

Basics of margin trade

We call it intraday trading as well. Either you buy first and sell later or you sell first and buy later.
In both ways if the price during the course of the settlement cycle moves in your favor (risen in case of purchase done earlier and fallen in case of a sale done earlier) you will make a profit and you receive the payment from the exchange. In case the price movement is adverse, you will make a loss and you will have to make the payment to the exchange.

Terms used during security transactions

These are some of the terms used during the buy or sell of shares.

CMP – Current market price of share

LTP – Last traded Price of share

52 WEEK HIGH & 52 WEEK LOW – Highest and lowest prices within 52 week period.

Exchange – NSE/BSE

Order Type - Limit/Market
· At Limit - An order to a broker to buy or sell by placing a limit price.
· At Market - An order to a broker to buy or sell at about the market price at the time that the order is given.

Bid Price- The price at which someone is prepared to buy shares.

Offer Price- The price at which someone is prepared to sell shares.

Brokerage - Charges made by a broker for acting as a agent in the buying and selling of shares.

Contract Note - Document sent to a buyer or seller confirming the transaction and showing details as to price, brokerage and any other charges involved.

---- Bulls Vs. Bears ----

Who is called a Bull?

Bull is a person who buys shares in the expectation that prices will rise and so giving him an opportunity to sell/resell at profit.

Who is called a Bear?

Bear is a person who expects prices to fall and sells shares hoping to make a profit by subsequently repurchasing at a lower price.

How would you know that a market is bullish or bearish?

Advance-Decline ratio is a useful tool for detecting bullish or bearish trend in the stock market. To get this ratio one divides the number of traded shares which have risen in price by those which have fallen. For example, if 200 shares have advanced and 100 declined on a particular day the A-D ratio is 2. Numbers more than 1 indicate a bullish trend and less than 1 a bearish trend.

All about Sensex!!!!!!!!!!!!!!!!!!!!!!!!

Q.1.What is SENSEX?

The SENSEX is a "Market Capitalization-Weighted" index of 30 stocks on Bombay stock exchange.

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE". The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. Institutional investors, money managers and small investors all refer to the SENSEX for their specific purposes.

Q.2 How is SENSEX calculated?

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per this methodology, the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. The base period of SENSEX is 1978-79. The actual total market value of the stocks in the Index during the base period has been set equal to an indexed value of 100. This is often indicated by the notation 1978-79=100.

The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments.

During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.

Q.3 How is the closing Index calculated?

The closing SENSEX is computed taking the weighted average of all the trades on SENSEX constituents in the last 15 minutes of trading session. If a SENSEX constituent has not traded in the last 15 minutes, the last traded price is taken for computation of the Index closure. If a SENSEX constituent has not traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.

Q.4 How are adjustments for Bonus, Rights and newly issued Capital carried out in SENSEX?

I have come across this question many times and did some research to find out how it is done actually. The arithmetic calculation involved in calculating SENSEX is simple, but problem arises when one of the component stocks pays a bonus or issues rights shares. The Index Cell of the Exchange periodically adjusts the base value to take care of such corporate announcements.

Adjustments for Rights Issues:
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When a company, included in the compilation of the index, issues right shares, the market capitalisation of that company is increased by the number of additional shares issued based on the theoretical (ex-right) price. An offsetting or proportionate adjustment is then made to the Base Market Capitalisation (see ' Base Market Capitalisation Adjustment' below).

Adjustments for Bonus Issue:
------------------------------------

When a company, included in the compilation of the index, issues bonus shares, the market capitalisation of that company does not undergo any change. Therefore, there is no change in the Base Market Capitalisation, only the 'number of shares' in the formula is updated.

Other Issues:

--------------

Base Market Capitalisation Adjustment is required when new shares are issued by way of conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of shares, corporate restructuring etc.

Base Market Capitalisation Adjustment:

-------------------------------------------

The formula for adjusting the Base Market Capitalisation is as follows:

New Base Market Capitalisation = Old Base Market Capitalisation * (New Market Capitalisation/Old Market Capitalisation)

To illustrate, suppose a company issues right shares which increases the market capitalisation of the shares of that company by say, Rs.100 crores. The existing Base Market Capitalisation (Old Base Market Capitalisation), say, is Rs.450 crores and the aggregate market capitalisation of all the shares included in the index before the right issue is made is, say Rs.4781 crores. The "New Base Market Capitalisation " will then be = 450 X (4781+100)/4781

This new figure will be used as the Base Market Capitalisation for calculating the index number from then onwards till the next base change becomes necessary.

Rico Auto geared up to take advantage of auto ancillaries boom.

The business model of the Gurgaon based company caters to Automotive and service segments. The automotive segments have three products namely Aluminum Foundry, Ferrous Foundry, Dies and Mould. Service segments deals in BPO and Engineering Services. RICO’s BPM division enables companies to generate value for their customers and employees through the application of its customer & employee-care services and Engineering Services division focuses on CAD, CAM, CAE, tool & product design.
There is a big amount of external demand coming in because lot of big OEMs worldwide are trying to save cost, so lot of that is likely to result into outsourcing of auto ancillaries to countries like India. India is quite geared up to become the next hub for manufacturing auto ancillaries as well as small cars.The good thing about Rico auto is that they are very well geared to take advantage of this coming boom. They have a very clear action plan to take advantage of this and a very good well managed company, with a very good focus on their products.
They also have lot of technical alliances already in place. Rico Auto Industries Limited & Continental Automotive Systems have decided to set up a Joint Venture Company to Manufacture Hydraulic Brake Systems in India. In this joint venture, it is having arrangement of preferred supplier of cast/machined components to the JV Company. In addition, the company has also FCC RICO Limited a 50-50 joint venture with FCC company of Japan, the world leader in two wheeler clutches, automobile clutches and fly wheel.


On 12-Jul-2007, prudential Icici Amc Ltd A/c Emerging Star Fund bought 3000000 shares of Rico auto @ 45.49.The mutual fund companies are taking keen interest in the stock. Refer below link for holding detail:
http://www.ricoauto.com/sharepattern-31march06.htm


CMP 42.5
Target1 51.90
Target2 57
52 week high: 88.95 (29.9.2006) 52 week low: 38.00 (8.6.2007)


It had touched an intraday high of 47.10 on 20th July. This is a stock which looks very attractive at current prices and deserves investment and becomes a case of strong buy on every decline. It is a very good point to enter for a long term investor because in two years time this has a potential to be a multi-bagger from here.

stocks for today

stocks for today:

Paradyne Infotech CMP 182 target 191
Bliss GVS Pharma CMP 121.85 target 127
Pritish Nandy Communications CMP 108 Target 113.80

all these 3 stocks should hit the upper circuit today.
happy trading:)

Demand for power transmission and distribution is booming..

Fundamental call for medium/long term.

Areva T&D India Ltd is one of the leading T&D Companies of the world. The Products vertical of the Company contributes substantially to its total Indian business and has a broad range of offerings in both the high voltage and the medium voltage segment.

With the recent acquisition of RITZ High Voltage instrument transformers activities and Passoni & Villa, it is a worldwide leader in this field and holds the number one market position in the United States, Germany and Brazil. With over 50 years of operating experience in the country, Areva T&D India contributes to around 9 percent to the overall order intake of its parent Company.

The Company reported a 75% growth in its operating profit for the quarter ended March 31, 2007. Areva is having a large order book from compnies like RPL, NALCO, GECOL etc. Recently, Madhya Pradesh Power Transmission Company Ltd (MPPTCL) — transmission and distribution electricity utility of Madhya Pradesh has awarded a contract to Areva T&D for 22 x 160 MVA 220/132/33 KV autotransformers and 4 x 100 MVA 220/33/33 kV two winding transformers, including transport and supervision of erection and commissioning. Totaling over Rs 115 crore, this is a big product package order for the Company to date.

Reinstating its strategic importance in the competing Indian SEZs market, Areva has further announced establishment of a new power transformer factories at Hosur, Tamil Nadu and Vadodara, Gujarat.

Company has been an outperformer in the market with its aggressive plans. Even today when all the stocks are down areva has kept its head up.

Igarashi Motors India profit rises 197.40% in the Mar 07

Sales rise 28.29% to Rs 62.45 crore

Net profit of Igarashi Motors India rose 197.40% to Rs 2.29 crore in the quarter ended March 2007 as against Rs 0.77 crore during the previous quarter ended March 2006. Sales rose 28.29% to Rs 62.45 crore in the quarter ended March 2007 as against Rs 48.68 crore during the previous quarter ended March 2006.
For the full year, net profit rose 428.70% to Rs 6.08 crore in the year ended March 2007 as against Rs 1.15 crore during the previous year ended March 2006. Sales rose 40.13% to Rs 245.63 crore in the year ended March 2007 as against Rs 175.29 crore during the previous year ended March 2006.

Source http://www.capitalmarket.com/Cmedit/story7-20.asp?SNo=171580

CMP 94.75
Target1 103 , Target2 118.50
Buy with SL of 89.

Arvind mills

Arvind mills has 750 acres of prime land and on valuations alone it is estimated at 4000 crores.
seen accumulation with high volumes today.
CMP 46
can reach level of 54-57 in near term.

Subhash Projects & Marketing Ltd

CMP 245.60
Target 280 (3 days)

Company has bagged order worth Rs 267 Crores from PHED, Jodhpur, Rajasthan for Works related to Supply of Water from Jawai & Hemawas Dams (Pali District) to Pali town and on route Water Treatment Plants on Single Responsibility basis turnkey job contract, including necessary design and operation & maintenance.

Also city Group planning to buy 25% stake in company.
Go grab it.

Great buying opportunity.

Vishal exports has been consolidating for long and yesterday was 5 % up for a while so downside is minimum and tendency is to move up.
Buy at 2.3-2.35 and sell around 2.7(target 15-20 days) or if investor hold till 4 with a time horizon of 4-5 months.

Chart itself tells the story

Indo Borax & Chemicals Limited

CMP: Rs.173.30 , target1: 182, target2: 191

Trigger:

There are news around the streets that Reliance, Ranbaxy , Nicholas Piramal are in the race to take stake in this company.

Fundamentals:company is on fast track in terms of expanding its production capicity and taking a huge step to transform from a chemical manufacturing company to a Research based Biotechnology company. Due to monopoly of few of their products like Glaze Bore(used in ceramic and tiles industries) and Indo Borax(mainly used in agriculture Biotechlogy), they have kept the operating margin very high.

Development plans:With the increasing demand of boric acid due to the ban of import of boric acid in India, they have successfully increased the production of boric acid from 300 tons/ month in Oct 06 to 700tons/month in June 07. Now they are targeting to increase it up to 1500 tons/month by the end of FY07.

Risks: movement of the price of share has been very fast from 35 levls to the current level.

Suggest to keep the stock for short term and move out of this script once individual targets are achieved.

Dhamaka stock for short as well as long term

CMP: 17.60, target1: 18.90, target2: 20.25

Trigger: Company has informed BSE on 22nd june that it has found oil and gas in the Laxmijan Field, which was awarded to it by ONGC in April 2004.
Book closure for 10% dividend - Period 26-JUN-07 to 30-JUN-07
Stock in strong accumulation mode - can breach 20+ levels before the closure date!!

Fundamentals:The company operates 16 factories, 19 tea estates and gardens spread over 12,000 hectares. Assam Oil & Natural Gas, group company of ACL, is engaged in discovery of oil fields and has been awarded important hydrocarbonareas located in Northeast India by the Ministry of Petroleum & Natural Gas.

Developments: Recently the company inked a MOU with Gujarat State Petroleum Corp to develop Hydrocarbon Park SEZ .The project is likely to cost about Rs 20 billion. ACL has entered into a JV with Austin-based DMS Exploration to bring in technology that will help in identification of petroleum locations thus increasing the chances of hitting oil and reduction in risks associated with drilling.

Plans: it has plans to invest around Rs 4500 million in the next 3-4 years for the development of oil blocks. ACL recently announced decision to raise further capital by way of Issue of FCCB / GDRs / ADRs Shares, for an agg. sum upto US$ 75 Million.

Risks:company is having huge Debt but that is why it is planning for raise capital.
last qtr result showed loss but that was due to drop in net sales all over the tea industry.

So overall good bet:)
happy trading!!

Stock tips will be up soon!!!

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