ORIENT ABRASIVES

The 6 month target of 41 was met in just 2 months and the script touched 42.65 on Nov 11^th. Orient Abrasives is still a good buy around 38.0-38.5, even 39. Next target is 48 (+23%) in 3-4 months.

Sep 6th powerfulpicks advice: Some of you have asked me about Orient Abrasives. It is a good company and balance sheet and company fundamentals look strong. Future growth prospects is bright because of prospects of high growth in the steel industry, who are the end users of its products.

OAL customers include large domestic integrated steel producers and mini steel plants that include Steel Authority of India, Mukund Steel, Tata Iron and Steel Company, RINL – Vizag, Sunflag Iron, Lloyd Steel, Essar Steel and the Jindal Group. With close to 100 small to medium sized iron and steel producing Indian companies as customers, OAL is a preferred vendor for a large number of steel producers in the country. The Company also supplies Castables to a large number of cement and non-ferrous companies in India. OAL has significant presence in the global market place with exports to over 16 countries across the globe including Spain, Turkey, Egypt, Indonesia, Saudi Arabia, Thailand and Greece. Buy on dips at 32 for a target of 41 in 6 months (+28%)

Jyothy Labs

On April 27th, I had given this call: Buy Jyothy Laboratories (NSECODE: JYOTHYLAB) on dips around 168 for a target of 300 in 6 months (78% upside). The target was met in late October, exactly in 6 months and has been one of the best hits of powerfulpicks. After a healthy dip, at present, Jyothy is again poised for an up move, which may be slow, but this is a strong script, so one can hold without concern. Buy at 270 for a short term target of 315. If one is patient and can hold this script in long term portfolio, targets of 365 is unreasonable, but it will take time.

My calls on JB CHEMICALS (STILL A GOOD BUY)

Sep 23: JB Chemicals and Pharmacauticals (NSE: JBCHEPHARM) is a midcap blue chip with a very clean and healthy balance sheet and low P/E and with robust FY11 topline forecasts, is poised to scale back to its all time high by April 2011. Buy at 106 or below (using our proven strategy of progressive on-dip buying) for a target of 133 in 6 months (+25%).

Oct 27: Yesterday, JB CHEMICALS touched 130 and almost met my 6 month target of 133 in 1 month (call given at 106). Then it dipped to 122. One can add more on dips to 120; even fresh buys can be made. TARGET of 147 shortly.

Nov 10: JB CHEMICALS met my target and touched 147 on this date (see 52 week high on NSE).

Dec 03: It has retraced a bit and still looks to me good for fresh buys. BUY AT 135 FOR A 3-4 MONTH TARGET OF 162.

ANDHRA BANK, SANGHVI MOVERS, GOKUL REFOILS, HIMADRI CHEM, GARWARE WALL ROPES

1. Buy ANDHRA BANK at 163 for a short term target of 186.
2. Buy SANGHVI MOVERS at 185 for a target of 225.
3. Buy GOKUL REFOILS at 98 for a target of 110.
4. Buy HIMADRI CHEMICALS at 50 for a target of 61.
5. Buy GARWARE WALL ROPES at 74 for a target of 92 (medium term)

TATA POWER

Buy TATA POWER close to 1300-1305 for a short term 2-3 month target of 1410.

AQUA LOGISTICS

Buy AQUA LOGISTICS at 48-50 for a 6-8 weeks target of 62 (24%)

BHEL

BHEL will climb back to its steady state level of 2500 very soon. Buy on intraday dips, close to 2200.

Shree Astavinayak

It usually stabilizes around Rs 13-15...so wait and watch; but it is risky to pick up such stocks. Personally, I will not go for it.

On Wed, Dec 1, 2010 at 6:32 PM, utpal shah wrote:

Shree ashtavinayak cine vision ltd - now that the stock is continously in downward circuit since 4 days from 44 to 24 now...looks likely to halt at 18-20 rupees ; can i enter the stock again..holding earlier stock at 31 ..(dabangg and golmaal both did well....) feel like averaging once it stabilises ...pl advise

SCI FPO

SCI (Shipping Corporation of India) is a stable and strong company. SCI has the capacity to carry anything and everything - dry, liquid, liquefied gaseous forms of cargos. It has 77 vessels to its fleet, with a big variety of dry bulk carriers, passenger-cum-cargo vessels, container vessels, VLCC - very large crude carriers, crude oil tankers, product tankers, phosphoric acid and chemical carriers, ammonia& LPG carriers, and offshore supply vessels. It has also diversified into new areas of services.

Taking the past performance, market cap, P/E etc into account, a fair value of SCI should be somewhere near 150-160. At 144, the stock is nearly fully priced. The FPO price band of 135-140 is reasonable, but does not leave much head room for the retail investor in spite of the retail discount. Yes, you may get Rs 10-15 on listing day and the stock also can move back to 170-180 levels after a few months, if crude prices are low (but crude prices will rise by 15-18% in the next 2 months as per my analysis). But then, SCI needs lot of funds for a house hold cleaning job, replace old vehicles with around 25-30 new ones, which will cost a lot of money. Globally, shipping rates are not firming up any more. So if you consider everything, SCI FPO is ok, but may not be as much rewarding to investors as can be expected from an IPO/FPO. Avoid is my judgment.

BILCARE

BILCARE is an excellent company, specializing in pharma packaging, focusing on R&D and providing innovative solutions for their domestic and overseas clients (50+ in number); the company is strong and has very good future prospects. Buy in small quantities close to 680-682; add more on dips. Target 760 in 3 months.

Buy PHILIPS CARBON

Buy PHILIPS CARBON at 180 for a short term 2 month target of 220. It will not normally fall below 160, so it is a safe buy.

RCOM

Please see my buy call on FORTIS today...avoid RCOM...Avoid Anil Ambani headed scripts, that is what I keep telling powerfulpicks members.

Since you are already into RCOM, I will say that RCOM can pull back (not steadily, but in a few sudden spikes) to around 158-165 range. Better average to bring down your buy price and get rid of it for good.

On Sat, Nov 27, 2010 at 12:16 PM, vijaya ganesh wrote: 

Can you please post your opinion on RCom and Forties shall I average it now, since I am having Rcom 170 and fortis 160. I am waiting for your valuable opinion.

FORTIS Healthcare

FORTIS Healthcare seems to have rebounded. Initial rebound may be a bit shaky, but it will firm up. Buy FORTIS HEALTHCARE at 148-149 for a short term 2-3 month target of 180 (+21%). FORTIS has the potential to reach the 200 mark. 

Buy SANGAL PAPERS, ARIHANT, WEIZMANN, DQ ENT.

One can make some small amount of fresh buys on dips on the following stocks. Study the price movement and enter if the price is steady at the call level or has dipped slightly and is holding. If slipping fast, or has gone much higher than the call price, avoid:

·         Buy Sangal Papers (BSE: 516096) in small quantities at 39 for a 3-4 month target of 51 (+30%).

·         Buy Arihant Foundations and Housing (BSE: 531381, NSE: ARIHANT) at 85 for a 6-8 month target of 115 (+35%).

·         Buy Weizmann (BSE: 523011, NSE: WEIZMANIND) on dips at 78-80 for a short term 3-4 week target of 93 (+16%).

·         Buy DQ Entertainment International (BSE: 533176) at 93 for a medium term 6 month target of 118 (+27%).

A POWERFULPICKS GEM: LUPIN

Lupin almost touched 520 today and is very near my medium term target, as mentioned below. I have been recommending LUPIN from 372 levels and I hope that some of you have made very good profit on this counter.

 On Tue, Nov 16, 2010 at 1:48 PM, powerfulpicks <powerfulpicks@gmail.com> wrote:

 LUPIN has been one of the hit recommendations of powerfulpicks. It touched 496.4 today, again crossing my revised short term target in a weak market, up 33% in just 2.5 months. It is most likely to reach the medium term target of 523 quite soon. 

On Wed, Oct 27, 2010 at 11:17 AM, POWERFULPICKS wrote: LUPIN crossed my revised target also and touched 460.4 yesterday (+24%). Currently taken a dip to 446. Book some profits now (if you have not done already, as I always advise) and hold the rest for a target of 477 (short term) and next 523 (medium term). Fresh buys can be made near 418-420.

On Thu, Sep 23, 2010 at 3:52 PM, powerfulpicks@gmail.com wrote: Short term call given on LUPIN on Aug 30 at 372 for a target of 410. Script is very near my target. On NSE, script reached a high of 403.45 and closed at 400.10. Book 75% profits on reaching target shortly and now and hold the rest for a target of 440. Enjoy making money with powerfulpicks! 

On Mon, Aug 30, 2010 at 8:31 AM, powerfulpicks@gmail.com wrote: SHORT TERM call: Buy LUPIN near to 372 for a short term [3-month] target of 410 (10%)

Asian Electronics

Risk takers can buy Asian Electronics in small quantities as close to 20, as possible. The script has the potential to climb back to 29 in the next 5-6 months (+45%). Repeat: Chances of good profit is very high, but this script is not for safe players, although risk of down side is limited.

Oh Man!

Man Infraconstruction (BSE: 533169, NSE: MANINFRA) is a debt free company and after a free fall, it is now showing signs of stabilizing and can slowly recover lost ground and move back to 350, probably by Sep 2011. If you buy in small quantities close to 230, it will give you a gain of nearly 52%.

 

But this call is for risk takers only, who can hold patiently.

Accumulate Manaksia

Manaksia Limited (formerly Hindustan Seals, BSE: 532932, NSE: MANAKSIA) is a multi-division group, with 15 manufacturing plants in India and three abroad: two in Nigeria and one in Ghana. The company also has subsidiaries in Ghana (Dynatech Industries Ghana Limited) and Dubai (Euro-Asian Ventures FZE). This company is into hot and cold rolling of aluminum and steel and they produce various metal packaging products.

The company has now diversified into the production of aluminum rolled products, secondary specification aluminum alloys and galvanized steel and this is where they plan to focus in the future to achieve economies of scale and reduce raw material costs. Manaksia claims to be the largest player in secondary aluminum rolling in India. The company's metal packaging products include crowns, roll-on pilfer-proof closures, expanded polyethylene liners as well as push-open and other metal containers. In the FMCG segment, the company is a dependable mosquito repellents outsourcing destination for the Mortein (Reckitt Benckiser India Limited) and Maxo (Jyothy Laboratories) brands.

The global outlook for metal industry and packaging has lot of promise, especially from the perspective of growth in demand in several countries (especially construction, automobile and consumer goods) and because of favorable government regulations.

I think they can end the year with an EPS close to 20 and keeping a very modest P/E of around 14, the target price works out to 110. Buy around 78-79 for a 6-8 month target of 110 (+40%). If global economy improves over the next 12 months, as I think it will, Manaksia can even cross 135.

National Fertilizer

Buy National Fertilizers (BSE: 523630, NSE: NFL) at 110-112 or below for a medium term 4-6 month target of 140 (+26%). Be patient and hold without fear.

Buy Intrasoft Technologies

Buy Intrasoft Technologies (BSE: 533181, NSE: ISFT) at 98-99 in small quantities for a short term 3 month target of 120 (+21%). The stock has the potential to climb to 165 in next 12-15 months (+66%).

DHANUKA AGRITECH: A strong company

Dhanuka Agritech (BSE: 507717) is not just an agriculture focused company. Pharma is its 2nd line of business. Agro-Chemicals & Seeds business is under Dhanuka Agritech Limited and Pharma business under Dhanuka Laboratories Limited. The group is worth Rs. 500 crores (USD 125 million) and has world class manufacturing facilities across India including 4 Agro-Chemicals Formulation Units, 2 Seed Processing units and a WHO-GMP Certified API (pharmaceutical ingredient) Facility.

The Group has a pan India presence, with branches in all major Indian states and over 15000 strong dealer's network and a 1000 strong techno-commercial team.  Results over the last 5 years have been very consistent in terms of growth in reserves, net asset value and EPS.

Valuation is reasonable and a lot of steam is left in the script. Buy at 75-76 for a short term 2-3 month target of 90.

AXIS BANK: Your money will be safe

In these turbulent markets, we are looking for safe corners. Where we know that, even if we see further drop, it will only be a matter of time, before there is revival and my money will be safe.

 

Axis Bank's long term EMA-hugging 45 degree chart pattern and the track record and reliability of their top management gives me that assurance. Buy AXIS BANK close to 1320 for a 1 year target of 1765 (+34%).

Venus Remedies: A PROMISING FUTURE AHEAD

Venus Remedies is a contract manufacturer of oncological and cefelosporine injectable products following EU-GMP norms. It has 2 manufacturing locations in India and one in Germany.

Recent Australia, Ukraine patents for drug Potentox, Vancoplus patent from South Africa and New Zealand, Tobracef patent in South Africa in 2009, a 5% rise in EPS in quarter ending Sep 10, a P/E of only around 5.00, plan to buy a plant in US and manufacture their branded antibiotic products there by end of 2011 seems like a dream come true.

The next few years will see a variety of new diseases surfacing around the world and we need powerful antibiotics to fight them. Potentox, combines the powerful antibiotics cephalosporin with aminoglycoside is a super specialty product indicated for the treatment of hospital acquired pneumonia, community acquired pneumonia and febrile neutropenia.

Vancoplus is a brand of Ceftriaxone and Vancomycin along with chemical vector used in CVMC technology which has a potential to restrict production of toxin produced by MRSA (Methilicillin Resistant Staphylococcus Aureus), the most notorious and troublesome pathogen. Vancoplus is the only remedy after vaccination to treat MRSA and multi-drug resistant microbes causing meningitis, pneumonia, typhoid, septicemia, urinary tract Infection, skin and skin structure infections and Staphylococcal endocarditis. Vancoplus has been successfully launched in few markets globally and has achieved a sales of  US$3.5 mn in 3 years. The patent for VANCOPLUS is valid till February 2026 in both the countries. The patent of this product has also been filed in US, Canada, Europe, Ukraine, Russia etc besides India and the grant is expected to be received soon.

In August 2009, Venus Remedies got another Product Patent for Tobracef from the Companies and Intellectual Property Registration Office (CIPRO), South Africa. Tobracef is indicated for the treatment of complicated mixed bacterial infection of acute pulmonary exacerbations, cystic fibrosis, chronic obstructive pulmonary disease, an FDC cephalosporin and aminoglycoside. Tobracef also is under process of registration in many regulated and semi – regulated markets.

Buy Venus Remedies (BSE: 526953, NSE: VENUSREM) at 255-258 for a 2 month target of 325 (+26%). 1 year (Jan 2012) target is 400 (+55%).

Why one can buy APTECH at current prices?

Unlike USA, in India, we take education much more seriously, especially specialized training. Indians may cut down on food and clothing, but would not compromise on education. So in these turbulent times, education stocks, which has already received a blow, has a good chance of bounce back, when the market stabilizes and reverses direction. And so, between 115-120, Aptech Limited (BSE: 532475, NSE: APTECHT) looks to me a great pick. This stock can easily retrace to 145 (+21%) in the next 2-3 months and then back to 160 (+33%) in the next 6-8 months.

STATE BANK OF INDIA

SBI at 2872 looks inviting; but I will be cautious to pick up a great deal at this price. I would be more comfortable buying it near 2700, another 170 Rs below. The best strategy would be to pick up in small quantities with plans to add more if the price comes down around 150-200 rupees. Chances of SBI climbing past 3300 in the next 3-4 months are quite high.

The same is true for ICICI bank close to 1100 and for INDUSIND bank, which is close to 280. Buy at CMP in minute quantities and add, if it dips further and these dips will be short lived and shallow.

On Mon, Nov 29, 2010 at 10:36 AM, hariharan s wrote:

Can fresh investments be considered for SBI given that it has undergone 17% correction? Kindly let us know.

Buy RANBAXY

Buy RANBAXY close to 540 for a short term 2-3 month target of 615 (+14%)

Tilaknagar Industries

Well in each QIP, some broking house or the other is heavily involved and IIFL is no better or no worse than the rest of the pack. Technically, TI is a strong script, currently around 100, may come down to 80, but can go up to 145 in the next 6 months. Fundamentally, Tilaknagar Industries still stands on a strong footing with its IMFL (Indian made foreign liquor) story and if you are a long term investor, you may continue to hold on to the script. Fresh buys, without previous holdings recommended below 90 only.

On Sun, Nov 28, 2010 at 11:04 AM, Venkatraman S <venkat83@gmail.com> wrote:

Well, i was just referring to the 'sentiment' factor - the way IIFL is linked with MM, TI can also tank - but I am not sure how credible this worry is. For i did not find anywhere on the net where there is a mention of this QIP and IIFL linkage.

 

On Sun, Nov 28, 2010 at 7:21 AM, POWERFULPICKS wrote:

Why do you think that IIFL's involvement in QIP of TI is bad or detrimental to retail investors?

 

On Sat, Nov 27, 2010 at 4:27 PM, Venkatraman S wrote:

Hi Anupam da,

I am not sure how many know this, but i dont want to spread a rumour and bring down the TI stock. The thing is : IIFL happened to involved in the QIP of MM and also TI. Shall I book out of TI asap or just stay put? TI as such is a good scrip, but the news of IIFL being associated with it is giving me the worries. Also, the way the IIFL guy spoke in NDTV profit on the MM QIP, saying that 'such things happen' has given me the jitters. What do you think?

Buy Shetron on dips

Shetron (BSE: 526137) is in the metal packaging industry and its clients are the big names in food processing and dry cell batteries. Battery consumption is bound to go up in the next few years and the next 4-5 years will see a boom in the packaged food industry. Supermarkets, hyper marts are becoming popular and selling more packaged food. India is just starting its baby steps in the packaged food industry and the huge potential still stays mostly untapped. The only concern I see is its relatively high debt; however, the growth in profits over the next few years will allow the company to reduce its debt burden and interest liability. Buy on dips and in small quantities around 40-41 for a target of 55 in 6-8 months (+34%). The script has the potential of crossing 70 in the next couple of years.