HOT PICK: PSL LTD. bse code: 526801

PSL manufactures and supplies spiral welded pipes conforming to American Petroleum Institute (API) standards for oil, gas and water transmission, as well as structural and piling applications for both onshore and offshore sector.

Its subsidiaries include PSL Corrosion Control Services Limited, Pipeline Systems Limited and PSL USA Inc. PSL USA, Inc. and PSL-North America, LLC.


According to sources, the conglomerate expects to establish a large share of the proposed gas pipeline network to be built by GAIL, GSPL, and other domestic players, who have announced proposals to construct pipeline transmission networks worth over Rs 20,000 crore.

PSL's annual pipe manufacturing capacity presently stands at 1,475,000 million tonnes per year.

The Promoters' shareholding stands at a very healthy 49.13% and the PE ratio is only around 8 at cmp of 179. Its Market Cap vs Sales is very attractive as compared to its peers. PSL has a market cap of 700 crs whereas the sales stand at around 3600 crs, which means Sales are around 5 times of the market cap. Now compare this with its peers like Welspun Guj whose market cap is around 4700 crs and Sales of 5800 crs, which means sales is 1.2 times market cap. Another peer Maharastra Seamless has a mkt cap of 2000 crs and sales of 2100 crs, i.e. sales is 1.05 times mkt cap. So as compared to its peers, PSL Ltd appears to be grossly undervalued.

The share is trading at a deep discount to its Highs of around Rs. 555 in December 2007. Very recently, fund house Citigroup Global Market (Mauritius) Pvt Ltd increased its stake in PSL Ltd to 5.38 per cent. The future looks very bright for this company and we can expect this stock to eventually make new highs like peer Jindal Saw is currently making.

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Want to see me on BIGG BOSS SEASON 3? Then SMS BB {SPACE} NAVIN BAJAJ TO 56882

Hi friends,

Hope all of you are doing well and benefitting from my calls. There is some piece of news for you. If you would like to see me in the BIGG BOSS' House this season on COLORS TV channel, then please SMS your vote for me by typing BB NAVIN BAJAJ and send it to 56882. Send as many SMSes as you can if you'd like to see me as one of the housemates of Bigg Boss (Indian version of the International show Big Brother) house this season. As you might be knowing, this season the host of the show will be Mr. Amitabh Bachchan. So kindly SMS your vote for me.

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COMPACT DISC INDIA LTD. BOARD RECOMMENDS DIVIDEND

Compact Disc India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 04, 2009, inter alia, has recommended Dividend @ 20% i.e. Rs. 2/- per share for the financial year 2008-09 which shall be finally declared in the forthcoming Annual General Meeting to he held on September 30, 2009.
http://www.bseindia.com/qresann/news.asp?newsid=165905B7-B294-4AD8-8685-B2155B30E176&flag=I&type=A&scrip_CD=526141

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COMPACT DISC INDIA LTD. JUNE QTR RESULTS & OPEN OFFER

The June qtr results of CDIL have been declared. Sales are up from 433 million to 442 million, and Net Profit is up from 83.5 million to 91.71 million. EPS is up from Rs8.73 to 9.58 in this quarter.
A Note attached with the results says "Seengal Capital Advisors Pvt. Ltd., an investment arm of the Promoters of CDIL and iMedia Ventures Ltd., content developer have offered to buy upto 40% equity of the company by open offer".
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Hot Pick: Compact Disc India Ltd. Bse Code : 526141

Compact Disc India Ltd. is in the sunrise sector of Animation and has reported fabulous results for FY ended 2009. FINANCIAL HIGHLIGHTS OF FY 2008-09:

* Sales Revenues higher by 87% at Rs.192.10 crore.- Profit-After-Tax (PAT) increases by 102.51% to Rs.39.50 crore.
* Profit-Before-Tax (PBT) increases by 101.21% to Rs.43.81 crore.
* Earning per Share (EPS) higher at Rs.41.27 as compared to Rs.20.51 last year; higher by 101.21% (annualized).
* CDI continues to be the largest animation film outsourcing company in South Asia.

Source : http://www.compactdisc.co.in/

The EPS of this stock is reported at Rs.41 and the stock is trading at a dirt cheap PE of only 1.5 at cmp of 61.15. The company is promising to triple its Net Profit in FY2009-2010. If it's able to fulfil its promise, then you can well imagine where the price of this extremely undervalued stock can go, considering the fact that the PE ratios for companies in the Animation & Media sector enjoy PE ratings between 10 and 20. The company has announced several tie ups with reputed movie production houses. CDIL has informed the exchange that the Company has signed a MOU with BBC Films to co-produce the film, "Blame it On The Bhangra". The Promoters have increased their stake in the company by 4% during the last year. This is a high risk-high returns kind of stock which is a potential multi-bagger.

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Hot Pick: FCS Software Solutions Ltd. Bse: 532666

Friends, I'm happy that my last three buy calls have all more than doubled in the last couple of months. While the index stocks (the big caps) have rallied a lot after the elections, there is a lot of value in the Mid-Small caps. One such stock is FCS Software which is a dividend paying company, giving consistent results over a period of time. The promoters hold a good 67.92 % in the company which should give confidence to the other shareholders. The nine months EPS of the company is already Rs.16 and the fourth quarter results will be out by the end of June. The stock is grossly undervalued at current price of 46 and is trading at a PE of less than 3. Investors can buy this stock at current price.

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Hot Pick : ALOK INDUSTRIES BSE CODE : 521070 NSE CODE : ALOKTEXT

ALOK INDUSTRIES is a profit making, dividend paying company and the share is currently trading near its lows of approx. 13.60. The 52 week high was 73 and low was 11.55. The stock is going at a mouth watering PE of less than 2 and the Book Value is around 60 Rs. This stock also trades in F&O which means it can see unlimited gains in a single day. This is a stock having great fundamental value and is looking all set for a technical breakout. Targets can be 25, 36 and 55 for long term Investors.