Fabulous 15


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Fabulous 15

  1. 1. A K Prabhakar – akprabhakar.equity@gmail.com fabulous-15 -> stocks for Year 2010 After smashing success of previous lists – COMPACT 15, QUICK15+6, SOLID-15, FANTASTIC-15, VALUE-24, ARG 30 I recommend a new list of stocks chosen with great care after markets have given more than 80% returns and some of our stocks giving more than 300% gains. The stocks chosen are included as they provide Value and a good margin of safety. Year 2010 in my view would give negative returns on Index basis and individual stock performance would be brilliant. So we must divide the risk equally and 20-30% returns annually would also be very good given stretched valuations for our markets when Nifty trades above 23 P/E and world interest Rates near zero. Indian economy is expected to clock GDP growth near 8% but a Fast-growing economy has its own pitfalls like inflation which we are already facing and supply constraints also can lead to market correction. This list I present to you to use on investment basis to accumulate over 1-2 year period and it would be a golden opportunity if broader markets correct even 10-15% from current levels. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  2. 2. A K Prabhakar – akprabhakar.equity@gmail.com fabulous-15 Stock Name Current Market Price (Rs) Target (Rs) 3IINFOTECH 87 118 ABGSHIPYARD 210 270 ADHUNIK MET 110 152 EMCO 91 130 GIC HOUSING 92 150 GLENMARK 278 350 GREAVES COT 286 352 GSPL 98 125 GUJ NRE COKE 80 110 IFCI 54 75 MRPL 78 100 NEYVELILIG 152 196 POWERGRID 109 141 SKUMAR 41 70 SUZLON 91 140 http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  3. 3. A K Prabhakar – akprabhakar.equity@gmail.com 3i iNfotecH CMP Rs 87 Target Rs 118 3IINFOTECH is a global Information Technology company which provides technology solutions to over 1,500 customers in more than 50 countries across 5 continents, spanning a range of verticals - Banking , Insurance , Capital Market , Mutual Funds , Government, with 8% of the revenue coming from ICICIBANK. RBI guidelines suggest banking companies holding not more than 5% stake in non-core activities and ICICI bank holds controlling stake in 3i Infotech. Talks for acquisition of ICICI Bank Ltd’s controlling 27% stake in 3i Infotech Ltd have veered to a likely price range of Rs 110-120 a share, sources told NewsWire18. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  4. 4. A K Prabhakar – akprabhakar.equity@gmail.com abG sHiPYarD CMP Rs 210 Target Rs 270 Largest Private Sector Shipbuilding Yard in India Certified by DNV for ISO 9001 - 2000. The shipyard has delivered 104 specialized and sophisticated vessels. 90% of the vessels built in last two years were exported. The company has Order in hand over Rs. 12,500 crores which are to be serviced until 2014. The company is investing 16 billion rupees to build a new facility at Dahej in the western state of Gujarat. The facility will include a unit to build jackup oil rigs. "About 85% of the facility is complete," he said, adding that the entire facility including a new ship lift should be ready by June. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  5. 5. A K Prabhakar – akprabhakar.equity@gmail.com aDHuNik Metalik CMP Rs 110 Target Rs 152 ADHUNIK METALIK is an integrated special steel producer and iron ore miner. It is venturing into the power business through its subsidiary, APNR. Adhunik Metalik is flagship company of the Adhunik group and engaged in the production of value Added Steel, Alloy Steel and Stainless Steel products catering to the automobile, construction engineering and household industry. The Company strongly focuses on reduction of production cost and zero waste management. Adhunik will be merging group companies Vedvyas and MP Ispat, which will bring 120,000tpa of coke oven capacity and 120,000tpa of sponge iron capacity. Consolidated profits may grow by more than 50% CAGR in the next 3 years to 2012 on account of growth in steel production and iron ore mining. The company has raised capital from QIB as well as promoters and debt-equity ratio may go below 2 in March2010 from 4.9 in March 2009. Adhunik’s captive iron ore mines in Orissa have received environmental and forest clearance. Final mining lease is expected soon. Margins are likely to expand due to significant savings. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  6. 6. A K Prabhakar – akprabhakar.equity@gmail.com eMco CMP Rs 91 Target Rs 130 EMCO offers Transmission and Distribution solutions in Power Sector. It is amongst top 3 transformer companies in India with 20000MVA capacity. Order Book at 30 Sep 2009 was Rs 1600Cr and company plans to double transmission tower capacity from 45000MT to 1 lakh MT. India is expected to add a generation capacity of 62000MW on certainty basis in 11th Five-year plan and against this the country has added just 14337MW in first two and half years ending Sep 2009. Thus to capacity to be added in the remaining two and half years will be over 45000 MW. This translates into a capacity addition of about 19000 MW per annum. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  7. 7. A K Prabhakar – akprabhakar.equity@gmail.com Gic HousiNG fiNaNce CMP Rs 92 Target Rs 150 GIC Housing Finance Limited, was promoted by General Insurance Corporation of India and its erstwhile subsidiaries namely, National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited and United India Insurance Company Limited together with UTI, ICICI, IFCI, HDFC and SBI. GICHFL has presence in 27 locations across the country for business. Housing being the one of the essential needs of mankind, the demand for shelter grows in line with the increase in population and the standard of living, hence the need of financing the purchasing of a House came up. A growth stock with one of the best Dividend Yields in Indian stock market! http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  8. 8. A K Prabhakar – akprabhakar.equity@gmail.com GleNMark CMP Rs 278 Target Rs 350 Glenmark Pharmaceuticals Ltd is a research-driven, global, fully integrated pharmaceutical company which employs over 4100 people across its global operations. The Company is a leader in India in the discovery of new molecules (Both NCES and Biologics) and is focused in the areas of inflammation [Asthma/COPD, etc] and metabolic disorders [Diabetes, Obesity, etc]. The Company has branded generic formulation interests in over 95 countries across the world including India, Europe, Brazil, Rest of Latin America (excluding Argentina), Russia/CIS, Africa and Asia. Glenmark Generics Limited (GGL), is a subsidiary of Glenmark Pharmaceuticals Limited (GPL) that aims to be a global integrated generic and API leader. GGL has an established presence in North America, EU and Argentina and maintains marketing front-ends in these countries. GGL has a strong base in Formulations development with teams operating out of laboratories in India and Latin America. GLENMARK has announced plans of IPO for Glenmark Generics which would benefit the parent company. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  9. 9. A K Prabhakar – akprabhakar.equity@gmail.com GreaVes cottoN CMP Rs 286 Target Rs 352 Greaves Cotton Limited, established in 1859, is one of India's leading and well-diversified engineering companies. It manufactures a wide range of industrial products to meet the requirement of core sectors in India and abroad. The company's core competencies are in Diesel/Petrol engines, Gensets, Agro Equipment and Construction Equipment. Recently the company forayed into earth-moving with the launch of its Wheeled Loader CG 932 H. It has also tied up with Mitsubishi Heavy Industries Limited, Japan, to market its range of Motor Graders in India. Greaves Cotton, presently, is the only Indian manufacturer to offer a range of products in concreting as well as compaction segment. With the inclusion of these two new products in the earth- moving segment, it will have an exclusive position as a supplier for the contractors involved in road building, irrigation and other infrastructure development projects. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  10. 10. A K Prabhakar – akprabhakar.equity@gmail.com GsPl CMP Rs 98 Target Rs 125 GSPL, a GSPC subsidiary, has taken a lead in developing energy transportation Infrastructure in Gujarat and connecting major natural gas supply sources and demand markets. Gujarat State Petronet Limited is first company in India to transport natural gas on open access basis and is a Pure Natural Gas Transmission Company. The transmission network of the company envisages development of systematic and seamless pipeline network across Gujarat connecting various suppliers and users. The suppliers of natural gas include traders, producers and LNG terminals. The users comprise industries such as power, fertilizer, steel, chemical plants and local distribution companies. The Indian natural gas market is relatively underdeveloped compared to other regions of the world. By the years 2024 to 2025, the share of natural gas would increase to 20% of total primary energy consumption, according to Hydrocarbon Vision 2025. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  11. 11. A K Prabhakar – akprabhakar.equity@gmail.com GuJ Nre coke CMP Rs 80 Target Rs 110 Coal is becoming a precious commodity day by day because of scarcity of the fuel and Gujarat NRE Coke is the largest independent producer of Met Coke in India and is the only Indian company with coking coal mines in Australia having more than 500 million tons of Metallurgical Coal with excellent coking properties. The company is set to emerge as one of the largest coking coal producers in Australia over the next few years. The coal mines are owned through its subsidiaries – Gujarat NRE Minerals Limited (ASX:GNM). The company has 87.5 MW wind power energy and has also set up mini steel mill in Gujarat to recycle steel scraps using green wind energy to manufacture TMT Bars. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  12. 12. A K Prabhakar – akprabhakar.equity@gmail.com ifci CMP Rs 54 Target Rs 75 IFCI was established in 1948 by Government of India to cater to the long-term financial needs of the industrial sector. But because of inefficiency the company felt severe drop in performance but now Government of India is trying hard to get the organization back on track as it holds Rs 523 Cr of optionally convertible debentures in IFCI but no stake, largest stake holder is LIC with 8.39% holding. News reports say that the government may appoint a consultant to rejig IFCI's business operations soon and the stock is a good investment at current levels. IFCI holds more than Rs 1200Cr value of equity shares in various listed companies along with important stakes in many unlisted companies which would give it a fair valuation if the company gets sold or merged into some other company. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  13. 13. A K Prabhakar – akprabhakar.equity@gmail.com MrPl CMP Rs 78 Target Rs 100 MRPL is a State of Art Grassroot Refinery at Mangalore and is a subsidiary of ONGC. The Refinery has got a versatile design with high flexibility to process Crudes of various API and with high degree of Automation. MRPL has a design capacity to process 9.69 million metric tonnes per annum and is the only Refinery in India to have 2 Hydrocrackers producing Premium Diesel (High Cetane). It is also the only Refinery in India to have 2 CCRs producing Unleaded Petrol of High Octane. MRPL has been running its refinery at a sustainable 125% utilization level since FY05, one of the highest among domestic peers. MRPL is increasing the capacity of its refinery to 300,000 barrels per day from 193,800 barrels at an investment of Rs 12,400 crore. The stock looks great on technical charts and with strong management like ONGC as parent the company is expected to outperform in near future, negligible net debt/equity ratio would help ease debt burden of Rs 10000Cr needed for expansion. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  14. 14. A K Prabhakar – akprabhakar.equity@gmail.com NeYVeli liGNite CMP Rs 152 Target Rs 196 The main core activity of NLC is Lignite Excavation and power generation using lignite excavated. Lignite is the younger offspring of the coal family. It is a fossil fuel belonging to the Miocene age (25 million years). NLC is having three lignite mines, also raw lignite is being sold to small scale industries to use it as fuel in their production activities. NLC is generating power in its Thermal Power Station I, Thermal Power Station -II and in Thermal Power Station I Expansion. All the southern states are beneficiaries of this power generation project. Today NLC Power Stations are generating about 2490 MW of Power. NLC's Power Stations are maintaining very high level Plant Load Factor (PLF) when compared to the National average. Disinvestment can improve liquidity for the stock and avaiablity of raw meterial is a concern which NLC has in plenty. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  15. 15. A K Prabhakar – akprabhakar.equity@gmail.com PoWer GriD corPoratioN CMP Rs 109 Target Rs 141 POWERGRID, a Navratna Public Sector Enterprise, is one of the largest transmission utilities in the world. POWERGRID wheels about 45% of the total power generated in the country on its transmission network. It has a pan India presence with around 71,500 Circuit Kms of Transmission network and a total transformation capacity of 79,500 MVA. POWERGRID has also diversified into Telecom business and established a telecom network of more than 20,000 Kms across the country. POWERGRID has consistently maintained the transmission system availability over 99% which is at par with the International Utilities. The stock has remained considerably silent given run-up in the market and is a value- buy at CMP. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  16. 16. A K Prabhakar – akprabhakar.equity@gmail.com skuMar NatioNWiDe CMP Rs 41 Target Rs 70 SKNL is one of India’s leading textile and apparel company with expertise in multi- fiber manufacturing. The company has extended its presence in multiple product categories from Fabrics to Apparels and Home Textiles. From a turnover of Rs.5 million in 1948, today, the group has come a long way in achieving a turnover of Rs. 17 billion. Brands include popular names such as Reid & Taylor, Belmonte, SKumars, Carmichael House and Stephens Brothers. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  17. 17. A K Prabhakar – akprabhakar.equity@gmail.com suZloN CMP Rs 91 Target Rs 140 Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with over 14,000 people in 21 countries and operations across the Americas, Asia, Australia and Europe. It is now a Market leader in Asia and 3rd largest wind turbine manufacturer in the world, Suzlon Market Share (Combined with REpower) rose to 12.3% thereby making Suzlon 3rd largest wind turbine manufacturing company in the world. India is a power deficit country and the traditional sources of power are dwindling with reducing reserves of coal and water shortage. India would be betting on renewable and alternate sources of energy like Wind Power and nuclear power to grow on a sustainable basis. Already government of India has declared subsidy scheme for Wind Power companies- Wind power projects will be given 0.5 rupee for each unit of power fed into the grid with a ceiling of 6.2 million rupees per MW for a minimum 4 years and maximum 10 years. The incentive would increase the internal rate of return of projects by at least 3-4% which would give way to more orders for large players like SUZLON. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com
  18. 18. A K Prabhakar – akprabhakar.equity@gmail.com tHaNk You & HaPPY iNVestiNG! Disclaimer: This represents views based purely on Technical, Fundamental, news, data and event based studies. The information and views presented in this report are prepared by A K Prabhakar. The information contained herein is based on my analysis of the Charts, Company Announcements and upon sources that I consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither A K Prabhakar nor any person connected with him accepts any liability arising from the use of this information and views mentioned in this document. A K Prabhakar and his affiliates may hold long or short positions in the above-mentioned companies from time to time. The report is intended for a restricted audience and I am not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities. http://akprabhakar.blogspot.com http://tanmaygopal.blogspot.com http://prabhakar-views.blogspot.com