FCS SOFTWARE : Value Pick

Continuing with my theme of concentrating on Value stocks in the current market weakness, I present another potential multibagger. The company has posted a nine months EPS of Rs.11.45 and at a projected EPS of Rs.15 for full year, the fair value of this stock should not be less than 150. But the stock is currently trading at only 82.30. Clearly, it is one of the most undervalued IT stocks in the market.

SRF Limited : Value Pick

SRF Limited is a textiles and nylon fibre manufacturing company with nine months EPS at rs. 36 approx. At cmp of nearly rs. 160, this stock is definitely a Value Pick. The year's low was 136.50 and high was 372.70. The company also stands to gain from carbon credits. It is a very attractive buy at current levels and the current weakness in the overall markets can be used to accumulate this stock.

Recent pieces of news from the company:

SRF Ltd has informed BSE that the Board of Directors at its meeting held on October 27, 2004 inter-alia, had approved capital expenditure proposal for Modernization and Expansion of capacity of Industrial Synthetics Business (now Technical Textiles Business) at Manali (Madras) and Gwalior.The Company has now informed that, following projects have been commissioned:
1. Expansion of capacity of Nylon Tyre Cord Fabric at Gwalior— from 10000 MTPA to 17000 MTPA
2. Expansion of Poly and Spinning capacity at Manali — from 11000 MTPA to 25400 MTPA.

SRF Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 20, 2007 has approved the following projects:
1. Upgradation of R&D facility and pilot plant at a total cost of Rs 14.40 Crores.
2. Manufacturing of a new fluoro speciality chemical at a total cost of Rs 14.35 Crores.

Golden Opportunity

Friends, you have seen almost the entire market melt down in the last few days. The mid-small caps stocks have been badly hit. I would reckon that one should not look at the indices right now and concentrate on individual stock valuations. This current dip in the market is a golden opportunity to accumulate VALUE stocks, specially in the mid-small cap sectors. Stocks are now changing hands from the weak players to the stronger players in the market who have a better holding power. Some of my readers have been asking me what to do with the stocks they are holding. Instead of addressing each one personally, I'm writing this post. I personally am buying Value stocks on every dip. I feel that the dip in the value stocks is temporary and those who accumulate good stocks now, will turn out to be big winners in the medium term. And btw, I've posted the zodiac signs forecast for the next month on my astro site : http://superstarastro.blogspot.com/

Salona Cotspin : Another Gem

Friends, continuing with my endeavour of creating wealth for all my readers and well-wishers, I am presenting another gem: Salona Cotspin (bse), yesterday's closing price Rs.21.75. This textiles company has been posting excellent results consistently and the nine months eps for 2006-2007 stands at over rs.5. My attention was drawn to this stock by a guest on my site and after checking the fundamentals and technicals of this stock, I am giving it a Buy rating. Cheers!

TT Limited

TT Limited is a fast growing company in the hosiery business. I'm sure most of you would be familiar with their TT Brand. They have just declared an interim dividend of Re.1 (10%) which can be availed. The half year eps has been over Rs.3 so far and the stock's closing price yesterday was Rs.24.50. The stock looks undervalued and there is scope for a lot of appreciation from the current levels in the medium term.

Action Themes

The themes which will see heightened activity are likely to be the Carbon Credits theme, Leather goods, Mining and Minerals, Heavy machinery, Quality Realty apart from Metals and Oil related sectors. Stocks which immediately come to mind are SRF, Guj Fluoro, SAIL, Mirza Tanneries, Chemplast, BHEL, Lok Housing, Madhav Marbles.