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Friday, February 5, 2010

Hot Pick : GHCL Ltd. Bse Code : 500171

GHCL Ltd. is a leading Chemicals & Textiles company. The company is amongst the global leaders in manufacture and development of different varieties of Soda Ash. Soda Ash is an essential ingredient in the manufacture of detergent, soap, glass, sodium salts and dyes. It is widely used in textiles, paper, metallurgical industries and desalination plants. The Textile division at GHCL is a vertically integrated operation that manufactures premium quality Yarn, Griege Fabric and Home Textile products like Bed Linen, Curtains, Madeups and Cotton Yarn.

The two Spinning units located in Tamil Nadu have an installed capacity of 125,000 spindles manufacturing 100% Cotton and Polyester Cotton yarns. The manufacturing units at the Textile Company have state-of-the-art textile machinery from Reiter, Switzerland and Schlafhorst, Germany, among others to lend that cutting edge to Quality.

The production facilities are ISO 9001-2000 certified and also have been awarded the OKO-TEX certification from CITIVE, Portugal. Wind-power is used for generating and meeting out the energy requirement for the spinning operations, which is not only cost effective but also eco-friendly. See the company website: www.ghclindia.com

The stock is giving a very high dividend yield consistently, and at current market price of just 44.15, this stock is available at a steal. The PE ratio is just around 4. The Book Value as of March, 09 is a whopping 121.38 (source: religare technova) The stock has seen highs of around 185 in the December, 2007 Bull run and used to trade consistently around that level in the years 2006 & 2007. At current price this stock is trading at a deep discount to its peers like Tata Chemicals, United Phosphorus etc. and merits an investment buy.

Cheers!

10 comments:

Vikas said...

Hi, the things mentioned by you on GHCL looks quite promising. But what worries me is the very high debt and low (17%) promoters' holding.
With Regards,
Vikas

Incognito said...

Hi superstar,

Can one buy FCS Software now at a current price of 13.45

Do you know any insight on why the price of FCS changed from 129 on 14 Oct 2009 to Rs 13 on 15 Oct 2009 (within 1 day)

sangjukta said...

Hi Sir. How r u? I have 300 SELMCL @Rs 86/-. BSE code 532886. plz suggest me if it can give me good return in future>>

Ambrish said...

superstar, ur fcs script is giving thrilling response. Bonus will come by March 1st week.
Just need a suggestion: I got stuck in Gremach infra since its days of 80. My avg currently is 65/-. Should i avg it still at 30/- ? Kindly update. i can hold for 1 to 2 yrs. Regards Ambrish

Superstar said...

Hi Incognito, you need to research a stock properly before posting ignorant comments. The stock of FCS was split from FV of 10 to 1, that's why you see the drastic price change. Actually that stock has gone up 4 times after I have recommended it. In effect, keeping in mind the split, I had recommended that stock around 4.3 and it went up to 17 within a very short span of time. And now there has been a bonus issue announcement too.

Hi Sangjukta,
Had a look at your stock and I think it is a Hold at the current price and can give decent returns in the long run. You can hold the stock keeping a stop loss of around 77.

Hi Ambrish,

Gremach management is the same as Austral Coke which is under a cloud. I don't think averaging the stock is a good idea, unless something fundamentally changes very drastically in this stock, I would just wait for the price to go near 40 where one can get out booking a loss and shift to some better stock. It is better to shift to some winning horse than keep on putting more money in a lame horse.

Cheers!

sangjukta said...

Dear Sir,
I am putting the query here as its related again on SELMCL that I asked earlier here only.
Shall I avg now or can wait. I was about to sell that as u asked to put SL @77/-. I have 300 SELMCL @ 86/-

Superstar said...

Hi Sanjukta,

Now you see the benefit of following technicals along with fundamentals? Had you listened to my advice and sold SELMCL at the Stop Loss level given by me (77), you could have made a cool profit of 15% in one week. :) Of course, you can average now.....now that I've begun coverage of SEL Manufacturing at 66.70 on Thursday with a STRONG BUY rating.

Cheers!

sangjukta said...

Thank you sir. I will do it

Sheen Gaur said...

Have you come across cals refinery scrip. This refinery is in bengal. It starts fully operating may be from next year. Though risky but its current price is 0.34 Paise only. If you get sometime can you please look into and provide your expert advice.

Abhi said...

Hi Superstar,
I am new to this blog. Can you tell me that is it the right time to enter the market or I should wait for some more correction.