DP Money Watch: Paper Products is a Powerhouse of flexible packaging

Paper Products Limited (PPL) is a 59% holding subsidiary of world renowned € 2.1 billion collapsible packaging wonder Huhtamaki. The company specializes in Flexible packaging, Labelling Technologies, Specialised Cartons, Packaging Machines and Holographic options.

In India the average age of the growing population is only 27 years,and its imperative that for this age group 27 (+/- 10 years) excellent packaging of any consumer product is of paramount importance. Thus, Paper Products’s business is sustainable over the next 50 years with double digit consumption growth.

With three state of the art, fully integrated manufacturing facilities at Thane, Silvassa and Hyderabad; highly skilled and experienced staff, PPL is capable of working with the customer from product inception to the super-market and with complete control and confidentiality.

Today, PPL matters to those for whom packaging matters most. This is reflected in the impressive client list that includes Hindustan Lever, Nestle, Cadbury, Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico and P&G

For a Zero debt Co. with paid up share capital of Rs.12.5 cr, a decent turn-over of more than 600 crores ( expected Rs. 750 cr for FY10 ending Dec 2010) and expected EPS of more than Rs. 10 for FY10, the share is going very cheap.

Buy at present level with 2 year HOLD is recommended.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

DP Money watch – Conart Engineers, A Dark Horse in the Infrastructure Sector

Conart Engineers is an ISO 9000 / 9001 certified detailed engineering, procurement and construction company specializing in Industrial, Commercial, Residential roads and bridges. The Company has a proven record of successful project completion, with several awards and recognitions. It was awarded the ACCE L&T Endowment Award for excellence in construction. NICMAR-200 has listed the company as one of India’s fastest growing companies in the construction division. This will enable the company to maintain its existing clientele and secure new ones. The Present order position is close to Rs. 30 crores while the Company’s market capitalization is barely Rs. 6 crores. Order book is likely to touch Rs. 50 crores in FY10.

On the Financial front, the Company is doing well. The top line has improved by up to 50 % during the last 2 years, while the bottom line has increased by more than 100%.

Scrip Code : 522231 Company : Conart Engineers Ltd

Type Audited Audited Audited Audited Period Ending 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06 No. of Months 12 12 12 12 Description Amount(Rs. million) Net Sales / Interest Earned / Operating Income 284.78 254.85 191.09 190.85 Other Income 4.53 3.83 3.63 2.80 Total Income 289.31 258.68 194.72 193.65 Expenditure -260.85 -233.23 -179.79 -175.96 Operating Profit 28.46 25.45 14.93 17.69 Interest -1.09 -1.60 -1.14 -0.77 Profit Before Depreciation and Tax 27.37 23.85 13.79 16.92 Depreciation -2.98 -2.67 -2.19 -1.96 Profit before Tax 24.39 21.18 11.61 14.96 Tax -8.22 -7.01 -4.17 -4.56 Net Profit 16.17 14.17 7.44 10.40 Equity Capital 30.00 30.00 30.00 30.00 Reserves 76.60 60.43 46.53 38.99 Basic And Diluted EPS after Extraordinary item 5.39 4.72 2.48 3.47 Nos. of Shares – Public 1,804,715.00 1,804,915.00 1,784,160.00 1,785,580.00 Percent of Shares-Public 60.16 60.16 59.47 59.52 Operating Profit Margin 9.99 9.99 7.81 9.27 Net Profit Margin 5.68 5.56 3.89 5.45 Cash EPS 6.38 5.61 - -

Results reproduced from BseIndia

The Share is available at P/E of 4 and is an excellent BUY at CMP of Rs. 20. Target price is Rs. 40 in less than a year.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

DP Money Watch: Roto Pumps, Diversifying Into The Next Generation Of Pumps

Roto Pumps Ltd is in the business of creating new thresholds of technology driven innovative pumps which are used in almost all industries like agriculture,beverages,chemicals,construction,cosmetics,dyes,edible oils and many more. Its progressive cavity pumps meet the requirement of most industries.

Roto Pumps was started in 1968 to manufacture progressive cavity pumps as an Import substitute. It came out with its IPO in 1994 and since then has grown at an average growth of 30%. Over the last 3 years, the Company’s revenue has more than doubled from Rs. 24 crores in 2006 to Rs. 54 crores in 2009, and the PAT has increased from almost Rs. 1 Crore to Rs. 3.3 crores during the same period.

Scrip Code : 517500 Company : Roto Pumps Ltd

Type Audited Audited Audited Audited Period Ending 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06 No. of Months 12 12 12 12 Description Amount(Rs. million) Net Sales / Interest Earned / Operating Income 523.15 422.71 339.40 243.05 Other Income 0.93 1.79 2.85 1.79 Total Income 524.08 424.50 342.25 244.84 Expenditure -447.98 -358.82 -297.45 -216.66 Operating Profit 76.10 65.68 44.81 28.19 Interest -12.05 -7.16 -4.22 -4.58 Profit Before Depreciation and Tax 64.05 58.52 40.58 23.60 Depreciation -12.04 -10.75 -8.33 -7.91 Profit before Tax 52.01 47.78 32.26 15.70 Tax -18.96 -17.46 -11.84 -6.60 Net Profit 33.05 30.32 20.41 9.09 Equity Capital 30.91 30.91 30.91 30.91 Reserves 133.99 108.17 85.09 70.10 Basic And Diluted EPS after Extraordinary item 10.69 - 6.60 2.94 Basic EPS after Extraordinary items - 9.81 - - Nos. of Shares – Public 929,530.00 929,530.00 929,530.00 915,900.00 Percent of Shares-Public 30.07 30.07 30.07 29.63 Operating Profit Margin 14.55 15.54 13.20 11.60 Net Profit Margin 6.32 7.17 6.01 3.74 Cash EPS 14.59 13.29 - -

Results reproduced from BseIndia

Roto is on an expansion and modernization programme, and for this purpose is setting up an integrated R and production facility at its 5 Acre plot in Greater Noida Ecotech XII Sector. During last FY, it has received big orders from Larsen and Toubro and Blue Waters Australia against stiff international competition.This speaks volumes about the quality of the new generation pumps manufactured by Roto.

The share is available at P/E of less than 5, and appears to be a good buy at CMP of Rs. 45.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

DP Money Watch – Compucom Software takes rapid strides in IT Education

Compucom Software(CSL) was founded in 1990 in New Jersey USA.It started its Indian Operations in 1994 in Jaipur, Rajasthan. The Company operates in the following verticals:

1.Software Design, development and maintenance

2. IT Training and Education

3. e-Governance Initiatives

4. Resource Supplementation

5. BPO and Call Centre

CSL has reported excellent financial results for the year ended 31st march 2009.( click here for details). Revenue from IT Education and Training has spurted by 500 % from Rs. 6 crores to Rs. 36 crores YOY. Gross Profit has gone up by 200% from Rs. 8.5 crores to Rs. 26 crores, while PAT has grown by 75% from Rs. 5 crores to Rs. 8.9 crores. This is because of much higher allocation to Depreciation of Rs.11 crores in FY 09 vs. Rs. 1.9 crores for FY08.

CSL has an equity of Rs. 10 crores divided into 5 crore shares of Rs. 2 FV. For FY 09 EPS is Rs. 1.76 and share is available at P/E of 5.2. Going forward EPS is expected to double during FY 10 and forward discounting will be about 2.5. This makes the share at a CMP of Rs.9 a screaming BUY.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

DP Money Watch: Liberty Phosphate – A Multibaggar in the Making

Liberty Phosphate, an ISO 9001:2000 certified, manufacturer of Single Super-phosphate(SSP) and other phosphatic fertilisers seems to be on an expansion spree. It would soon be a company with PAN India presence having new plants in South India. Presently the company has 6 plants with a combined capacity of 725,000 MT per annum. The company markets its SSP under a very strong brand name called “Double Horse”

Recently the management decided to allot 5 million shares @ Rs. 13 per share to the promoters (3 million shares) and its associates, mainly NRI’s (2 million shares). With the allotment of 5 million shares , the company’s equity capital will go up to Rs. 14.43 crores, with promoters and NRI’s holding about 70% of its equity.

On the Financial front, the company is doing exceedingly well, with revenue expected to increase to Rs. 300 crore for the year ended 31st March 2009, compared to Rs. 101 crore for the last year .PAT is expected to touch Rs.12 Crores from Rs. 1.6 crores for the last year.This will give an EPS of Rs. 12.7 vs. 1.7 for the last year. The share is available at P/E of about 1.2 .

The company financials are produced below:

Scrip Code : 530273 Company : Liberty Phosphate Ltd

Type Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Audited Period Ending 31-Dec-08 30-Sep-08 30-Jun-08 31-Mar-08 31-Dec-07 31-Mar-08 No. of Months 3 3 3 3 3 12 Description Amount(Rs. million) Net Sales / Interest Earned / Operating Income 787.55 561.71 669.57 147.16 274.01 1,019.28 Other Income - - 0.50 5.95 1.28 8.66 Total Income 787.55 561.71 670.07 153.11 275.29 1,027.94 Expenditure -737.62 -505.02 -577.63 -139.52 -245.53 -927.31 Interest -11.46 -13.54 -18.25 -10.99 -12.68 -53.35 Profit Before Depreciation and Tax 38.47 43.15 74.19 2.60 17.08 47.28 Depreciation -5.43 -5.21 -4.97 -4.85 -5.73 -20.84 Profit before Tax 33.06 37.94 69.22 -2.25 11.36 26.44 Tax -11.47 -13.45 -23.38 0.06 -4.08 -10.26 Net Profit 21.58 24.49 45.84 -2.20 7.28 16.17 Equity Capital 66.73 66.73 66.73 66.73 61.23 66.73 Reserves - - 159.44 - - 109.29 Basic And Diluted EPS after Extraordinary item 3.23 3.67 6.87 - 1.19 2.42 Nos. of Shares – Public 3,782,907.00 3,793,307.00 3,675,573.00 3,677,573.00 3,645,404.00 3,677,573.00 Percent of Shares-Public 56.69 56.84 55.08 55.11 59.53 55.11 Operating Profit Margin 6.34 10.09 13.81 9.23 10.86 9.87 Net Profit Margin 2.74 4.36 6.85 -1.49 2.66 1.59 Cash EPS - - 7.61 0.40 2.12 5.55

Financials reproduced from BseIndia

At CMP of Rs. 14 the firm seems to be a multibaggar in the making.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

DP Money Watch – Marson Limited, Catering To The Expanding Power Sector

Marson Ltd is a ISO-9001-2000 certified,52 year young company in the power infrastructure sector having state of the art manufacturing and testing facilities for almost all kinds of transformers ranging from 25KVA to 100 MVA. This stock is our recommendation for the year 2009.The stock was earlier recommended in 2007.

The Company has so far supplied more than 100,000 transformers to companies like Siemens, NTPC, State Electricity Boards,CESC, Hydel Power plants, GRIDCO, Ordinance factories etc.

The Company’s equity capital has increased from Rs.10.8 crores with 5.4 crore shares of Rs.2 FV to Rs. 17.1 crores with 8.55 crore shares, as the company has merged with Marson Transformers Limited with Marson Ltd. and allotted 3.15 crore shares to the promoters of Marson Transformers ltd.This has increased promoters stake in the company to 46.8% from just 16% a year back.

Market capitalization is just about Rs. 20 crores. The Company has its manufacturing units in almost 4 lakh sq ft area in proximity to port and is the largest manufacturer in Eastern region. It also has its own Transformer Oil Plant , Copper wire and Strip plant. Replacement cost of such a strategically located plant will not be less than Rs. 100 crores.With unsecured loans of about Rs. 10 crores the share at CMP of Rs. 2 appears to be undervalued, and can prove to be a multibagger.

Buy at CMP is recommended with atleast one year HOLD

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision.

DP Money Watch – Power Up Your Portfolio With Genus

DP Money Watch is back after a long break, this time with new and improved stock tips and investment advice. We start of with a review of Genus Power Infrastructures.

Genus Power Infrastructures (Genus) is a ISO 9001:2000 certified Power Infrastructure company which manufactures electronic meters, power inverters, closed loop metering solutions and Hybrid microcircuits. Its an MNC in the making with offices in USA, Singapore, China, India and manufacturing facilities in Africa ,Brazil and India.

The Company’s Financial performance shows a robust growth of more than 80 % YOY in Net profits. Q1 in FY09 showed a 20% growth in the top and bottom lines as compared to FY08.

The Company has orders worth Rs. 450 crores and another Rs. 500 crore worth of bids are in the pipeline.

Buy is recommended at CMP of Rs.310. Now is a great time to buy this stock as a long term investment as it has fallen to 30% of its all time High price of Rs. 1050.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision.

JK Lakshmi Cement, A Risk Free Pick In Uncertain Times

JK Lakshmi Cement in it’s 25th year can be compared to a beautiful young bride whom everyone would like to bring home. It’s cement capacity has grown to 5 million tonnes from the existing 3.5 million tonnes. The company has also invested Rs 11,000 crores to set up a 2.7 million tonne Green Field plant at Chhatisgarh. The Company has posted excellent results for FY-08.

Scrip Code : 500380 Company Name : JK Lakshmi Cement Ltd

Type Audited Audited Audited Audited Period Ending 31 Mar 08 31 Mar 07 31 Mar 06 31 Mar 05 No Of Months 12 12 12 12 Description Value(Rs. million) Net Sales / Interest Earned / Operating Income 11,076.60 8,438.30 5,824.80 4,867.80 Other Income 67.10 32.80 79.00 97.70 Total Income 11,143.70 8,471.10 5,903.80 4,965.50 Expenditure -7,773.80 -5,878.20 -4,615.70 -4,191.50 Operating Profit 3,369.90 2,592.90 1,288.10 774.00 Interest -278.50 -361.40 -194.90 -44.00 Profit Before Depreciation and Tax 3,091.40 2,231.50 1,093.20 730.00 Depreciation -585.40 -443.30 -530.70 -489.50 Profit before Tax 2,506.00 1,788.20 562.50 240.50 Tax -269.30 -7.10 -8.00 4.30 Profit after Tax 2,236.70 1,781.10 554.50 244.80 Extraordinary Items - - - 15.70 Net Profit 2,236.70 1,781.10 554.50 260.50 Equity Capital 611.90 570.90 497.70 552.90 Reserves 5,734.90 3,319.80 1,297.60 1,060.60 Basic And Diluted EPS after Extraordinary item - 32.34 11.14 4.71 Basic EPS after Extraordinary items 38.72 - - - Diluted EPS after Extraordinary items 37.72 - - - Nos. of Shares – Public 32,770,783.00 32,865,914.00 29,912,905.00 33,434,996.00 Percent of Shares-Public 53.57 57.58 60.12 60.45 Operating Profit Margin 30.42 30.73 22.11 15.90 Net Profit Margin 20.19 21.11 9.52 5.35 Cash EPS 46.12 - - - Detailed

Financials reproduced from BSEINDIA

Recently the company also released its expansion plans .

JK’s market capitalisation at a CMP of Rs. 111 is Rs. 680 crores, which gives an enterprise value of a 5 million tonne plant at just Rs. 182 crore/million tonne or US $ 46 per tonne of cement capacity vs. US $ 102 per tonne as envisaged in the Green field project. The share is available at P/E of less than 3 and is a value BUY at CMP.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision.