INTRADAY TIPS FOR OCTOBER 29-10-2012 MONDAY

SCRIP

ACTION

TRIGGER

TARGET 1

TARGET 2

STOPLOS

ALLCARGO

BUY

131.50

133.25

136.00

130.00

IDFC

BUY

157.00

158.50

160.60

155.50

Thursday, August 25, 2011

MULTIBAGGER STOCK RECOMMENDATION - PITTI LAMINATIONS

Pitti Laminations

BSE: 513519    NSE: PITTILAM  CMP: 40.00
Pitti Laminations Ltd started production in 1987. It is located in Hyderabad, Andhra Pradesh, India and its factories are located in a 50KM radius of the city. Pitti Laminations Limited was the first in the country in lamination industry to have achieved ISO 9002 certification by BVQI of U.K. in October 1993.
The company is engaged in the manufacturing of electrical laminations for use in all types of motors for a wide spectrum of applications, alternators, DC machines, railway lighting alternators etc. They make single piece laminations upto 1300 mm (51 inches) diameter.
Laminations upto 700 mm (27 inches) diameter by single blow (gang punching) operation and upto 1300 mm (51 inches) diameter by single point notching including skip notching.They are located in Hyderabad, Andhra Pradesh, India. Their factories are located in a 50KM radius of the city.
Plant - I   of the company is having capacity of 6000 Tons per annum in operation while Plant – II of the company is of  capacity 4000 Tons per annum and is dedicated to the export market.
The plant – II is equipped with high Speed Presses, Presses from 100 to 350 Tons capacity, Hydraulic Presses from 40 – 150 Tons capacity and additional tool room machinery.
The company manufactures electrical laminations up to a diameter of 1300 mm (51”) for application in industrial motors, DC machines, alternators, traction motors, pumps, train lighting generators, aeronautics, medical diagnostics equipments, windmill generators, laminations for specialised applications, die-cast rotors, assembled stators and built-up rotors duly balanced. It produces small laminations via High Speed Press for compressors.
The company also manufactures Press tools, Progressive tools Jigs, Fixtures to customer requirements. 

  Pitti Laminations, which is a very small cap company. On today’s market capitalization, Pitti Laminations would be close to Rs 36-37 crore of market cap and my understanding is that the current financial year the company should post an EBITDA of more than Rs 50 crore.
If someone just reads the annual report for Pitti Laminations for 2010-11, the company very surprisingly has made a forward projection. They have actually mentioned what they expect to earn in the current year and the next financial year. If you take these numbers as gospel truth, then you will easily arrive at the conclusion that the company is significantly underpriced. The company expects to earn a profit after tax (PAT) of somewhere around Rs 19 crore for current year and a pre tax profit of somewhere around Rs 28 crore. They have actually given a projection that in the next financial year, that is 2011-12, they expect to earn Rs 26 crore post tax and Rs 38 crore of pre tax..buy around current levels and on dips for  this sureshot multibagger.

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