May 15

Precision Wires

·         Book Value:                        175 Rs

·         Debt/Equity:                      0.45

·         Current Ratio:                    1.05

·         CMP:                                     90 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs		976
Net Profit Cr Rs		15.95
EPS Rs		13.8
Dividend/Yield		8/9.5

·         Public Shareholding:                       40 %

·         Promoter Shareholding:                               60 %

·         Pledged/Encumbered Shares:   0%

Business:             Copper Wires

Analysis

They have taken debt to finance their investments. The dividend yield is very good. The revenue and profits are increasing around 10% yoy, over the past 5 years. The share is currently undervalued.

Pros

·         Unbelievable Dividend Yield

·         Undervalued at its current market price

·         Good increase in revenues and profits

·         Gujarat company

Cons

·         Low volume share (2k – 4k)

Buy Immediately. It is going to shoot up.

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.

May 12

Arman Financial Services

·         Book Value:                        35 Rs

·         Debt/Equity:                      1.65

·         Current Ratio:                    0.9

·         CMP:                                     17.5 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	24.5	16.8	45.8 %
Net Profit Cr Rs	4.5	3.3	30 %
EPS Rs	7.23	6.8
Dividend/Yield	1 / 5.5	0.8 / 3.9

·         Public Shareholding:                       70 %

·         Promoter Shareholding:                               30 %

·         Pledged/Encumbered Shares:   0%

Business:             Finance including NBFC’s             

Analysis

It is one of the most underrated shares. This year it has doubled its turnover and has a good increase in its net profit. This year they have raised money by selling preferential shares. Financially the stock is sound and the price is at its right place to buy.

Pros

·         Good Dividend Yield

·         Current market price is far below its actual price

·         Good growth in revenues and profits this year

Cons

·         Low volume share

·         Increased Debt

Buy for Long term only

Pradeep Metals

·         Book Value:                        17.5 Rs

·         Debt/Equity:                      1.36

·         Current Ratio:                    0.73

·         CMP:                                     18.5 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	112	125	-10 %
Net Profit Cr Rs	5.7	4.4	30 %
EPS Rs	3.3	2.6
Dividend/Yield	1.2 / 6.5	1 / 7

·         Public Shareholding:                       32 %

·         Promoter Shareholding:                               67 %

·         Pledged/Encumbered Shares:   0%

Business:             Auto parts and Equipments

Analysis

The revenue has decreased compared to last year, but the net profit increased due to decrease in finance costs. The company has repaid its debts and released 6% of its pledged shares. The company has good financials, but has to check out its future plan.

Pros

·         Good Dividend Yield

·         Good Market price

·         Repaid its debts

Cons

·         Low volume share

·         Decreased Revenue

Buy for Long term only

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.

May 10

Bengal Tea & Fabrics Ltd.

·         Book Value – 62.5 Rs

·         Debt/Equity – 1.45

·         Current Ratio – 0.79

·         CMP – 40.95 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue	252.56	219.66	15%
Net Profit	12.53	11.46	1.07%
EPS	13.91 Rs	12.72 Rs
Dividend/Yield	2 Rs/4.9	1 Rs/4%

·         Public Shareholding – 27 %

·         Promoter Shareholding – 73 %

·         Pledged/Encumbered Shares – 0%

Short Term (1 month)

The price will rise in the short term due to good financials and good dividend yield. After the dividend ex-date, there will be sharp drop in the price. So this share can be bought purely on speculation.

Buy for Speculation gain

Long Term

This share is very good for long term investing. The dividend yield is good, and the yoy revenue increase is above 10% since the last 3 years. We can expect good financials for the next year also. But the price will drop after the ex-date, so it is better to wait for the share price to become stable for long term investing.

Wait for the ex-date fall and then accumulate around the range of 30 Rs.

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.

May 9

BGR Energy Systems

Book Value - 169
Debt/Equity - 1.8
Current Ratio - 0.79
Current Market Price - 135

Last year, it has taken loans to finance its investments. Since last three years, it is dropped from 700 Rs to 110 Rs. Now it is in the correct range to invest in this share. The revenue and profit have stagnated over the past two years.
Dividend - They are giving dividend consecutively over the past 5 years. This year also they may give a dividend of about 7 Rs, Yield = 5.2 %.

Results and Dividend recommendation date: May 23, 2014.

Recommendation: Buy @ 130 - 140, Stop Loss: 125, Target: 150 till May 30, 2014.


Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.

Ludlow Jute and specialties ltd.

·         Book Value:                        42 Rs

·         Debt/Equity:                      1.45

·         Current Ratio:                    0.79

·         CMP:                                     28.6 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	275.5	275.5	0
Net Profit Cr Rs	2.68	8.44	-68.2 %
EPS Rs	2.49	7.84
Dividend/Yield	1.5/5.2%	2.5/7.6%

·         Public Shareholding:                33 %

·         Promoter Shareholding:           67 %

·         Pledged/Encumbered Shares:   0%

Analysis

It is in losses in the last quarter of 2013-14. The main reason is due to increase in inventory goods. This is not such a good sign for the operations of the company. Also the revenues and net profit have stagnated over the past 3 years.

Short Term (1 month)

The main draw for this share is its dividend yield. Also it is trading far below its actual value. But the volume of the buy is too low for it to change any faster. Do not expect any spike.

Buy for Long term only

Cheviot Company

·         Book Value:                        755 Rs

·         Debt/Equity:                      0.03

·         Current Ratio:                    1.79

·         CMP:                                     311 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	279.5	290.2	-3.4%
Net Profit Cr Rs	26.8	30.7	-1.2%
EPS Rs	59.42	68.08
Dividend/Yield	15/5%	15/5.3%

·         Public Shareholding:                       25 %

·         Promoter Shareholding:                               75 %

·         Pledged/Encumbered Shares:   0%

Business:             Jute goods and Captive Power generation

Analysis

The debt is very less. This year the revenue and profit have decreased yoy. This is also a low volume share.

Short Term (1 month)

The main draw for this share is its dividend yield. Also it is trading far below its actual value. But the volume of the buy is too low for it to change any faster. Do not expect any spike.

Buy for Long term only

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.