Hotel-Restaurant Stocks maybe in action this week

Jubilant which operates Domino's pizza has come up with an IPO with a PE around 15.

Other restaurant stocks like Indage Leisure, Sayaji Hotels, Kamath Hotels, Bhagwati Banquets & Hotels etc should see some action on the counter.

Indage Leisure has a current market presence  in the fine/casual dining, high end bars/clubs, Cafe and Bistros.

Kamath runs various kamat hotels and Orchid Hotel

Sayaji has hotels in Gujrat,Indore, pune and runs very successful Barbeque Nation restaurant.

Bhagwati has hotels and clubs in Gujrat and plans to expand in Tier-II cities.

Sub Rs 50 stock recommendation from various Analysts

Ashish Chugh recommends

• SSPDL(Srinivasa Shipping and Properties Development Limited) - Real Estate Play
• IFGL Refractories  - Value Stock
• Andhra Cements. - Value Stock 

VK Sharma recommends

• Indraprastha Medical
• Om Metals Infraprojects
• Timex
• MIC Electronics.

SP Tulsian recommends

• Donear Industries - Mid Term Pick
• Tourism Finance - Public Sector Stock
• Ugar Sugar - Small Cap from Sugar Sector

Ambareesh Baliga recommends

• Celestial Labs - (combination of a technology and a pharmaceutical company)
• Shasun Chemicals - APIs
• Compucom Software - education and e governance
• Radha Madhav Corporation - pharma packaging

Satish Betadpur recommends

• City Union Bank
• Hilton Metal Forging
• Himatsingka Seide
• Gammon Infra.

SEL Manufacturing

SEL manufacturing is a company of RS Saluja Group.

They are the manufacturers, exporters of all types of knitted garments. We have in house spinning, knitting, dyeing, Finishing and Garmenting to meet the demand of price conscious and quality conscious market. SEL do all types of knitted products. Basic Products include T-shirts, Polo shirt, Sweat shirt, Boxer shorts, Girls top etc. and  can provide bulk quantities. SEL manufactures 30-35 thousand garments daily.

The company is investing in high end fabric manufacturing and to meet growing demands it is setting up additional capacity.
With decades of expertise and excellence of meeting the discerning needs of niche client’s world wide, SEL Manufacturing Company Ltd. has laid out ambitious plans of product capacity augmentation to continue its proud contributions in the world of premium quality cotton - yarn, fabrics and garments.

It has global presense and it operating in most of the american,european , african and south asian countries.

Check out the global presense

The stock has book value of around 160 and is currently available at Rs 90. P/E ratio is also low of less than 3. Long term target can be expected to reach around the book value.

Karuturi Global

Karuturi Global  is India's largest rose exporter and has now expanded to  agriculture export business,food processing and IT .

It plans to grow tomatoes,cereal crops , fresh vegetables, palm oil and sugarcane in various african countries various it has been alloted land.

Company has around 600 acres of land for cultivation of roses.

It has acquired 7,65,000 acres of agriculture land for culivation and also has 239 hectares of land in Kenya and Eithopia for rose cultivation . It is worthy to note that mammoth land makes this company largest land bank owner in the work.

By 2010 it plans to produce 1 billion stems of roses.

It can reach Rs100 in 3 years time considering the growth plans

Overview from company's website.

Incorporated in 1994, Karuturi Global is today the largest producer of cut roses in the world, with are area of over 239 hectares under Greenhouse cultivation and an annual production capacity of around 555 million stems.

An integrated production model encompassing in-house plantation, cultivation and distribution capabilities coupled with a series of green initiatives make us one of the lowest cost producer of cut roses in the world. Almost our entire produce is exported to high-value markets such as Holland, Germany, United Kingdom, Italy, Singapore, Hong Kong, Taiwan, Bahrain, Muscat, Dubai, Australia, Japan, New Zealand, Brunei and North America, with a small portion sold in India.

Having established our strong presence in floriculture, we now aim to broad base our portfolio into a larger agri-produce basket. The acquisition of large tracts of land in Ethiopia has set the stage for us to evolve into an end-to-end agri-focused company.

Equipped with a robust and de-risked business model, Karuturi Global’s other fast-growing business realms are food processing, floriculture retail including a flower auction portal and information technology.

Company Website : http://www.karuturi.com

Indiabulls securities

Indiabulls securities seems to be good bet in the brokerage space. It has not participated in the recent rally from late November.

With year looking good ahead and increased stock market times, volume increase can improve topline and bottom line.

Most of the midcaps are near or above there 52 weeks high. This stock  is not near its 52 weeks high rather its almost half the price. Looking at the price and growth prospects it seems to be a value buy.

Parekh Aluminex

Parekh Aluminex is India's largest manufacturer and exporter of Aluminum Foil Containers (AFC). They are emerging as the leading name in AFCs in the entire sub-continent, being the first Indian company to receive ISO 9001:2000 certification from BVQI, UK. It is almost monopoly in its segment.

Company is growing at a rate of almost 50% on year on year basis. The same is expected for next few years. Revenues are expected to touch 600 crores.

It is available below book price and its PE is also attractive.

Parekh Aluminex also list under Forbes 'Best Under A Billion' company.

It can be bought at current price with a target of above 200.

Moser Baer Updates

Moser Baer will be soon reaching around Rs100. Its fair value is much higher and this stock has not participated during current rally. So even if market looks streched now and when we are confused which stock to buy now or where to invest. Moser baer is a good fruit in your investment basket.


Couple of things which are needed to be highlighted for reaching it`s hidden value.

1. Entertaiment bussiness is growing very rapidly. Movies,DVD, Super DVD


2. New product range launched in storage devices. Blue Ray, CDs and DVDs


3. Consumer electronics range is set to provide a good topline. Monitor,Music Players, Headphones, LCD TVs etc.


4. Photovoltaic is expected to come in limelight again since crude is expected to go higher. Solar plants coming across india by them.


5. Govt projects and green energy revolution will help alternate energy.


Stock is infact in the eyes of FIIs and DIIs. It is just waiting at the sidelines now.

OIL India IPO : Invest or Avoid

OIL India is country's second largest oil producer after ONGC. Crisil has graded the IPO 4/5 which is above average. Please note that Adani and NHPC were 3/5.

Issue Opens  --September 07, 2009
Issue Closes --September 10, 2009
Issue Type   --100% Book Building
Issue Size  --26,449,982 equity shares
Price Band --Rs. 950- Rs 1050
Face Value --Rs. 10.00
Lot Size --6 shares

On the BID Closing Date i.e. September 10, 2009 the BIDs would be accepted till 03:00 p.m. Only.


OIL India IPO is not aggresively priced and is available at PE of around 10-11.

So we can expect some initial gains from the IPO but over the long term OIL India doesn't look promising.

Some of the key risks to its business are :-

1. Since it is PSU it is sharing the burden of subsidies. If the OIL prices increases a lot then share of burden will also increase and profits will always depends on the vagaries of the crude prices and govt policies.

2. 95% of the oil and gas comes from North East states which is sensitive zones based on environment and conflicts in the region.

3. Most of the wells are old so the output in the future will steadily decrease from these basins.

4. It doesn't have any significant acreage to increase its production capacity beyond North-East and hence profits.

5. It is fighting lot of court cases on environmental issues.

6. Apart from ONGC now it faces still competition from lot of other private players who have entered Exploration and extraction business like RIL,Cairn, British Petroleum, Niko resource etc.

So I think that though from IPO perspective this stock might be good, for long term probably it can given steady return in terms of dividend(being PSU) and small increase in stock price. This can't be termed as multibaggar or high growth stock.

Moser Baer : Good Long term Bet

Moser Baer is going to develop 1 Mega Watt solar farm project in Maharashtra.



Got awarded EPC contract to develop one of India's largest indigenous solar power projects.


The solar farm in Chandrapur will be one of the largest in the world using thin film solar modules.


Moser Baer is also going to set up India's largest grid connected Solar farm in Rajasthan

It is heartening that solar energy is being seen as an affordable source of energy in India and Moser Baer has been instrumental in bringing about this change.

Other  similar post 

Future Growth Areas - Indian Stocks

Short term Outlook for India is bad as for as annual returns are concerned. Inflation is sky high , growth is slowing down , interest has started inching upwards giving pinch to consumers in every price band.

Currently inflation is 6-7% higher than last year and 2-3 times higher than cushion level of R.B.I.

Though the cyclic up-downs will continue to happen, promising themes will keep emerging which will provide huge growth and fuel Indian Economy.

Following themes can emerge as winners.

1. Aviation/Defence -
Indian Military yesterdat got its first Hawk (AJT) built by HAL . Technology transfers and localization promises a lot for Indian Manufacture. This will help us developing Defence Aviation industry. Component Manufactures will gain immensely. New bidding process require that the supplier honour a 50% offset clause, or source 50% of the components required to complete the order, by value, from domestic manufacturers.

Indian companies have to build capacity to absorb such huge offset work which would be coming to them.
Larsen and Toubro Ltd (L&T) which is India's largest Capital Goods and Infrastructure firm plans to bid for the order to the company winning the MMRCA(medium multi-role combat aircraft) contract of about 10 billion dollars.

The MMRCA deal involves buying 18 aircraft from the seller and manufacturing 108 under licence by 2012.

2. Energy and Power

India has a huge power deficit and demand for power is going to grow substantially. Many power projects are going to come up to scale up the supply. UMPP has been introduced through Electricity Act 2003.

Gas and Oil Finds in East Coast would provide much relief to energy hungry country benefiting fertilizer,power and other industries. It will also help reduce forex outflow.

3. Infrastructure

This theme is being played for last 2-3 years and will continue for some more years. If India has to grow it has to build huge infrastructure in every field - roads, ports, airports, power, oil/gas, housing, malls etc.


4. Nuclear Power
Power generation, equipment and capital goods manufacturers are very optimistic of Indo nuclear civilian deal.
They are hoping that components for the new nuclear deal will be manufacture locally and initially by serving foreign nuclear manufacturer, they will become supplier and become part of the supply chain eventually.