* JOCIL (Rs.110.05 - NSE) is engaged in the manufacture of Stearic Acid, Fatty Acids, Refined Glycerine, Soap Noodles, Toilet Soap, Industrial Oxygen and in the generation of Power from biomass and wind. Besides its core business, fixation of higher purchase price for power exported to AP Transco effective from 1st April 2004 and introduction of RECs is likely to generate additional revenue in the coming years to compensate for the high cost of generation from biomass fuels. The company is entitled to RECs for captively consumed power from its 6 MW Biomass Cogeneration Power Plant and is expected to earn an additional revenue of about Rs.240 lakh per annum if the scheme is strictly implemented. It is a 50% dividend paying company with a share book value of Rs.146. The stock looks attractive at the current level.
* Garware Wall Rope (Rs.50.70) stock with a share book value of Rs.106, dividend of 25%, expected EPS of Rs.11/12 in FY13 looks attractive at Rs.50 level which is cum dividend. Last year exports shot up 38% and exports contribute 42% of sales. The weakening of the Rupee will help the company. Investors can accumulate this stock on dips.
* The market cap of Rapicut Carbide (Rs.70.50) is Rs.15 crore while its share book value is Rs.65. At 30% cum dividend, stock looks attractive for buying on dips. There is also promoter buying in the stock.
* Weizman Forex (Rs.73.35) has a safe business model. With a share book value of Rs.54, expected EPS of Rs.22 in the current year, this 20% cum dividend stock looks attractive. Investors can accumulate this stock on dips.
* Garware Wall Rope (Rs.50.70) stock with a share book value of Rs.106, dividend of 25%, expected EPS of Rs.11/12 in FY13 looks attractive at Rs.50 level which is cum dividend. Last year exports shot up 38% and exports contribute 42% of sales. The weakening of the Rupee will help the company. Investors can accumulate this stock on dips.
* The market cap of Rapicut Carbide (Rs.70.50) is Rs.15 crore while its share book value is Rs.65. At 30% cum dividend, stock looks attractive for buying on dips. There is also promoter buying in the stock.
* Weizman Forex (Rs.73.35) has a safe business model. With a share book value of Rs.54, expected EPS of Rs.22 in the current year, this 20% cum dividend stock looks attractive. Investors can accumulate this stock on dips.
*Liberty Phosphate (Rs.75.20) has four manufacturing units situated at Udaipur (Rajasthan), Nandesari (Gujarat), Kota (Rajasthan) and Pali (Maharashtra), which put it in a good stead to speedily service demand. It is setting up one more Unit at Rae Bareilly in Uttar Pradesh where the Plant & Machinery is under erection and commercial production is likely to commence in FY13 and cater to the demand of North & East India. Its Proximity to raw material sources/markets coupled with a dedicated multi-disciplinary work force has all along enabled the company to respond to spurts in demand. The company's brand 'Double Horse' agri inputs is well accepted as a premium quality product in the market. The management has increased stake by 5.92% over the last 5 quarters with 2.87% increase in the last quarter itself. The stock had come down due to the slow progress of the monsoon. But now that there is an overall improvement in rainfall all over India, investors can think of accumulating this stock. Its FY12 EPS was Rs.36 and the share book value is Rs.95.
* Apcotex Ltd. (Rs.163) is an Asian Paint affiliate company. Its plant situated at Panvel near Mumbai, manufactures Synthetic Lattces that are used for tyre cord dipping, paper and paperboard coating that is mainly used in packaging FMCG and food, carpet backing, concrete modification/water proofing, textile finishing, paints and arious grades of Synthetic Rubber products such as footwear, automotive components, moulded items, V-belts etc. Sales of the company have grown from Rs.118 crore to Rs.280 crore over the last five years while net profit has shot up from Rs.3.81 crore to Rs.10.78 crore. The management has raised the dividend from 30% to 80%. The company’s plant is situated in about 20 acres where the cost is around Rs.5 crore per acre while its current market cap is only Rs.86 crore. FY13 Sales may grow to Rs.360 crore with net profit around Rs.14.5 crore at net profit margins of 4.5%. Dividend may be hiked to 85% this year and since reserves are good the management may declare a liberal bonus too. The stock looks safe for accumulation on dips for decent long-term growth.
* Apcotex Ltd. (Rs.163) is an Asian Paint affiliate company. Its plant situated at Panvel near Mumbai, manufactures Synthetic Lattces that are used for tyre cord dipping, paper and paperboard coating that is mainly used in packaging FMCG and food, carpet backing, concrete modification/water proofing, textile finishing, paints and arious grades of Synthetic Rubber products such as footwear, automotive components, moulded items, V-belts etc. Sales of the company have grown from Rs.118 crore to Rs.280 crore over the last five years while net profit has shot up from Rs.3.81 crore to Rs.10.78 crore. The management has raised the dividend from 30% to 80%. The company’s plant is situated in about 20 acres where the cost is around Rs.5 crore per acre while its current market cap is only Rs.86 crore. FY13 Sales may grow to Rs.360 crore with net profit around Rs.14.5 crore at net profit margins of 4.5%. Dividend may be hiked to 85% this year and since reserves are good the management may declare a liberal bonus too. The stock looks safe for accumulation on dips for decent long-term growth.
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