HOT STOCK : GUFIC BIOSCIENCE

Gufic Bioscience, with one of the finest Tissue Culture labs in India, along with a sophisticated R&D Center and a robust infrastructure has a vision to grow into a global Bioscience major. Informed buying has been taking place for the last few days around 10 levels and the share price is tipped to double in the near future. The Promoters hold a very healthy 70% stake in the company.

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.

GODAWARI POWER & ISPAT LIMITED

GODAWARI POWER & ISPAT LIMITED is all set to move up. IT IS ONE OF THE MOST UNDERPRICED STOCKS IN THE RED HOT POWER SECTOR. First half EPS already stands at 17 plus rupees. With a projected EPS for full year of Rs. 34-36, GPIL is grossly undervalued. While peer companies in the Power Sector are having PE ratios of anything between 30-150, this stock deserves a re-rating. Recently the company has cleared fund raising plans of 210 crores. Technically also, this stock looks ready for a big move ahead. Current price is only Rs. 267. Can easily become a multibagger in the medium term.

ALPS INDUSTRIES : DEEPAWALI PICK

Alps Industries is a gem of a stock currently trading at dirt cheap prices. It has delivered a half year EPS of rs. 5.52 and projected EPS for full year is 11-12 rupees. The company is the owner of the well known Vista brand of window dressings and its book value is nearly 88 rupees. The stock is currently trading at a huge discount to its Book Value around the price of 46-47. In my opinion this company deserves a PE rating of at least 12, so Fair Value of this stock should be 12x12=144. It is reported that Clearwater Capital Partners has bought 3 lakh shares at Rs 47 per share (1.54 % stake) very recently. Promoters of the company and FIIs have upped their stake in the company considerably during the last one year. Alps Industries presents a huge upside potential from current levels.

SALONA COTSPIN REVISITED

Action seems to be returning in Salona Cotspin (bse code : 590056). The textile industry as a whole has underperformed the market for the past one year or so due to the appreciation of the rupee against the dollar. Govt. seems to be genuinely concerned about the hardships being faced by the exporters and is taking steps to help them. Salona Cotspin has a good track record of consistently growing Net Profit figures and regular dividend payouts. Watch out for this counter, volumes are picking up. Cheers!

JAYASWALS NECO

Any level is a good entry level in Jayaswals Neco. The EPS for FY08 is likely to be in 8-10 range and EPS for FY09 likely to be significantly more. Somebody has asked what is the story in this counter, the story is that the company has turned around and is now going to make very good profits. This is the next Jai Corp or next KEC International in the making. Nagpur-based Jayaswals Neco has set up a commercial power plant at Moitra village in Hazaribagh district of Jharkhand. The 270-mw coal-fired plant will have two units of 135 mw each. The company has coal mines with estimated reserves of 30 million tonnes in Moitra village itself.Jayaswals Neco has planned to sign the power purchase agreement with PTC India. The company already has a 40-mw captive power plant at Siltara in Raigarh district of Chhattisgarh where an integrated steel plant has come up.Incorporated in 1972, Jayaswals Neco essentially produces iron castings and pipes that find applications in railways and construction sectors. In 1992-93, the company diversified into the solvent extraction business. The integrated steel plant in Chhattisgarh signifies an important backward integration move. This move will bring down their costs very significantly and propel their earnings to a new level. Cheers!

POWER PLAY

The power sector is red hot right now. This sector is set to reap the rewards of major reforms initiated in the country some time back. Current events like Reliance Energy coming up with an IPO of Reliance Power and the listing of Power Grid Corp will fuel the fire in Power Stocks. PTC and NTPC are going to set up Power Exchanges to trade power. Power Grid is expected to list around rupees 80. We may see a big rally in Power stocks like PTC, NTPC, Torrent Power etc. in the near future.