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Friday, November 16, 2007

SOUTH ASIAN PETROCHEM LIMITED

SOUTH ASIAN PETROCHEM LIMITED operates in the Petrochemicals market and has been doing quite well in recent times. Its half year EPS is already Rs. 2.71 and with a projected full year EPS of 5 plus, this stock deserves a re-rating upwards. Especially when petrochem companies have become the darling of the markets recently, with some stocks in this sector doubling and tripling in no time. Promoters are acquiring more stake in the company and this stock is a potential multibagger.

25 comments:

deepil2003 said...

superstar hi
deepil2003 here can we buy at current level and what is the target for both the scrip plz tell
deepil2003
pune
9890289160

deepil2003 said...

hi superstar
tell me target for both the scrip

Nature's said...

I have been holding a good number of this stock since it was trading at around 10.4 levels. And, believe that this stock has potential to touch 50 in the medium term.
What is the target that you are suggesting to your clients?

Secondly, have you evaluated the propects of BSEL infra?

Best,
AM

Superstar said...

South Asian Petrochem Ltd. does have the potential to reach 50 plus in the medium term even if we give it a conservative PE rating of 9-10. One can buy it on every dip with medium term perspective.

KALPY'S said...

Superstar thnx for the invitation...

vamsi said...

hi superstar i am following ur suggestions and bought jayaswal neco and south asian petroleum...do u suggest to buy national steel at this level??...it has a eps of 7 and cmp is 30rs only...plzz advice....

Janeet said...

Hi Superstar ... i would ask the same question what Deepil has asked... Also please tell me that since i am holding KRBL which i bought at 116 and ALPS Industries which i bought @ 63.5 , is it a good idea to cut down my losses or should i hold these stocks ??

09212246756

Superstar said...

Hi Vamsi,

National Steel can be bought on dips with a long term view. No problem with that. It is just that the markets as a whole are slightly delicately poised and one should stay cautious and await a clear cut direction.

Cheers!

Superstar said...

Hi Janeet,

Alps Ind was recommended buy me at 47 levels. You acted pretty late by buying it at 63.5. However, it is a good stock to hold for long term and if I was in your place, I would hold it.
KRBL again you bought at a high price of 116, it was available at 85 rs. just a few days back. But again, it is not an expensive stock and should give you profits in the long term.

Nothing can be said about the short term in the current overall market scenario which is dependent on various factors including the way the world markets move in the near future. There is a very high level of volatility being witnessed in the market at present.

Cheers!

RASHMI said...

hi superstar..

Ur reccos have done a world of good to many..i posted a message yesterday but it was not published..i wanted to seek ur opinion on semiconductor industry and Spel Semiconductor Limited in particular..plz throw some light on prospects of Spel.

regards

deepak

Ravikanth said...

Dear Superstar sir i have bought SAPETRO at 25rs 15days back.i already put 1lakh on it.almost i lost 15000.
now itwas at 21.
please suggest me the next move.shall i exit or u want me to keep further .
To cross 25 how many days can it take(possible estimation)
Please reply me sir

Ravikanth said...

Dear Superstar sir i have bought SAPETRO at 25rs 15days back.i already put 1lakh on it.almost i lost 15000.
now itwas at 21.
please suggest me the next move.shall i exit or u want me to keep further .
To cross 25 how many days can it take(possible estimation)
Please reply me sir

Superstar said...

Hi Ravikanth,

If I was in your place, I would have averaged my cost price by buying more of South Asian Petro between 19-21 levels. The company's fundamentals are in place and it is posting good earnings. If it continues to post good earnings figures in the next few quarters also, then one can hope for a 100% appreciation in the price of this stock in the next one year. It is difficult to say anything for the short term because of the high volatility in the overall markets presently.

Cheers!

Janeet said...

Hey Guys ,

I am not a proffessional researcher but still can pick up some good stocks .. my pick for the month of December is NTPC which can give you 20 to 30% return in the coming month.
What say Superstar?

Superstar said...

Hi Rashmi/Deepak (?)

I am currently neutral on the semi conductor industry. About SPEL Semiconductors in particular.....the stock has seen a nearly 60% jump in Net Profit Q on Q for Sept,07. Chartically also it looks good. I would say it could be a good hold for long term investors.

Cheers!

Superstar said...

Hi Janeet,

NTPC is surely a stock which should be in anyone's long term portfolio. I had recommended a buy on it around 190 levels recently, after which it ran to around 270 levels. It is now correcting.

It is difficult to say how this stock will behave in the short term. It can either go up 20-25% or it may even go down 10-15%, depending upon the overall sentiment of the market.

Cheers!

Indy said...

Superstar,

Do you track Kamdhenu Ispat? Any reco on that?

Janeet said...

Hi Superstar,

On Mr. Tulsian and ICICI direct recommendation i have bought 450 JBF Industries @ 203 and today itself the stock went down by more than 5% to end at 186. So now i seriously want you suggestion whether to book loss or should keep holding this for a month.

ALso i am desperately waiting for you next tip on this site ...

Regards

Kriti said...

I have bought south asian petrochem @ 27.90 Rs. so what is expected to rise up this scrip.

Mishu said...

Hi superstar,

have been following your blog closely and made a good investment in sapl. Thank you for the tip...but can you tell me what would be the effect on the share price after the recent changes in the share holding pattern, and the increase in the total no. of shares...I would have thought it should still be a hold but its been doing the LC for the last two sessions.....Please give us your valuable inputs...thanks in advance

Superstar said...

Hi Indy,
No, I don't track Kamdhenu Ispat but steel, as a sector, has been doing quite well and Kamdhenu should move along with the other stocks in the Steel pack.

Hi Janeet,
If you have purchased JBF Ind on Mr. Tusian's advice, then you should ask him about his prospects. I am NEUTRAL on this stock.

Hi Kriti and Mishu,
SAPL is a good stock with strong fundamentals. The increase in the number of equity shares will have some effect on the EPS, but the strong growth of the company should neutralize that. This stock has started hitting Upper circuits again. And next technical levels to watch are 36 and 43 in the medium term.

Cheers!

somen.das said...

Hi Superstar
Its always gr8 learning and tips from your side. I have Unitech purchased on 230 level. shall I need to quite or hold? and I got Kaushalya infra IPO on 69. So whats its prospective? what u suggest on both of the stock?

Gurvinder said...

BSEL INFRA is my top pick for 2008 because:
1 infrastructure stock avaliable at low P/E.
2 tremendous growth potential in india and abroad.

Rajeev said...

Hi Superstar,
I read a lot of ur comments on South Asean Petro..I started accumulating this stock from market price of 40 and kept averaging it on every fall.It is now trading at 13-14 levels.My average buy price is 22 and do u think i shud invest more on this stock or shud exit on evry rise?It is showing no signs of bounce back...Please suggest..

Rajeev

Superstar said...

Hi Rajeev,
You bought SA Petro pretty late at 40......it was a good buy at 20 or so. Nevertheless, the whole market has broken down since Jan, 2008 so SA Petrochem is no exception. Almost all penny stocks have come down substantially from their January peaks. At around 13 SA Petrochem can be a Hold if you are a long term investor. If you are able to wait for one-two years you may make a profit on your average cost price of 22.

Cheers!