Noida Toll Bridge Company Ltd-Ready to takeoff

Noida Toll Bridge Company Ltd-Ready to takeoff
Its getting increasingly difficult to recomend decent scrips with huge potential in these sort of market environemnt.Still after a lot of research, here is one scrip which i feel would make a lot of money for the shareholders in the months to come. Noida toll bridge looks to be a very exciting story.Just consider:-Scripscan:Noida Toll Bridge Company LtdCMP:50Target:70Return expected:40%Duration:6-9 monthsTraded on:NSE-BSEBusiness:Noida Toll Bridge was promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to construct, operate and maintain the Delhi - Noida Bridge on a Build Own Operate Transfer (BOOT) basis. The Delhi Noida Bridge is a tolled facility connecting Noida to South Delhi across the Yamuna river.The Company's principal source of revenue is from the levy of tolls on commuters on this facility.Outlook:It should be prudent to note that the company's operating income comprises revenues from the toll it collects and hoardings/advertisements on the routes it has developed.The outlook for growth in traffic on the Delhi Noida Bridge is very positive. Traffic levels on the Delhi Noida Bridge are expected to increase as Noida and Greater Noida experience development and population growth. In their review, Halcrow Consulting estimate that by 2021 the population of Noida and Greater Noida areas will increase by 2 million and the daily vehicle trips on the Delhi Noida Bridge will increase to 200,504. Triggers-The company is presently constructing a fast link between Mayur Vihar and Noida.The bridge is in an advanced stage of completion and is likely to become fully operational in the third quarter of FY08.It has also access to developmental rights of over 200 acres as part of these projects. The company has got a huge surplus of land bank,which the company intends to develop over the next couple of years.The value is expected to be immense on account of the very prime location of the land.Once that happens,there is a huge amount of value unlocking that will happen. Risks and Concerns:The Concession Agreement provides for traffic risk mitigation measures by allowing for New Okhla Industrial Development Authority (NOIDA) to grant Development Rights. The Company has, in its possession, land around the DND Flyway both in Noida and Delhi, which will be developed in phases, subject to grant of Development Rights by NOIDA / Govt. of UP / Govt. of Delhi, which are under process.The denial of Development Rights or conditional grant of the same will also pose a financial threat to the Company.Financials:The company has shown strong consistency in both topline as well as on bottomline over the last several years. Key Financials Year End Mar 07 Mar 06 Mar 05 Mar 04 Mar 03 Net Sales 47.11 39.07 30.59 24.54 16.45 Operating Profit 37.01 26.78 21.10 16.11 8.98 Net Profit 11.06 2.61 -16.50 -21.10 -28.60 Equity Cap.Pd 186.20 180.41 122.40 122.40 122.40 The trend is expected to continue and with so many developemnts happening,Noida toll may just surprise us on its forward numbers.Conclusion:The Government of India as well as many State Governments are laying great emphasis on development of the road network and have drawn up ambitious plans which require the private sector to play a key role in the fulfillment of these plans.I remain very positive on the prospects of the company, driven by the growth prospects of its real estate foray and the Mayur Vihar-Noida link.On valuation parameters the company on an expected EPS of rs 2 and at 25 P.E may look a tad high but with the kind of growth that we are talking about keeps decent scope of good capital appreciation in the coming days.I assign a buy on the counter with a target of 70rs to be acheived over the coming 6-9 months period.

Igate global solutions-Ready to rock
Often i have been requested to name some short term ideas but as i have admitted i do lack the caliber of suggesting near term moolahs.These time after some reseacrh here is something i set to present you.A short term scrip which may surprise in the coming days."The short term Moolah"Scripscan:iGate Global Solutions LtdCMP:358Target:450Duration:2 monthsStory:IGate Global Solutions is a subsidiary of iGate Corp, a Nasdaq-listed company. Its services include consulting, enterprise data management and data warehousing, business intelligence and analytics, design, development, system integration, package evaluation and implementation, re-engineering and maintenance. Igate recently along with results announced that the company would be delisted within this december 07 itself through the reverse book building route with the average price prevailing prior to November 13th,2007 as a base price and the same would be a tendering process. Igate is expected to report an EPS of around 32 rs for 09.Even if we give a conservative P.E of 14 the price comes at around 450rs.As it would get delisted by 07,it represnts a great short term oppurtunity.So buying at the present price of 358 rs would atleast mean a windfall gain of 25%(450rs)for the shareholders.The buyback price would be decided based on the price tendered by the highest number of stakeholders.So BUY AT THE CMP OF 358RS AND TENDER YOUR SHARES AT 450RS.Igate has got a promoter holding of 81%, according to the laws to delist the company one needs to have a promoter holding of 90%.Since Igate is just starting to show up the results, we expect all shares to get tendered(barring unforseen circumstances).Even the price can stand higher as punters may get involved to jack up the price.In all ways investors stand to gain the most.SO GO FOR IT.

Company Guidance and order book position
Some guidance given by the management of Small and midcap companies:- 1)Visa Steel:Manufacturing turnover to be around Rs 1000 crore during FY 2008-09.2)Logix Microsystems:Revenue at Rs 55-60 crore and bottomline Rs 18-20 crore in FY 2008.3)Bartronics India:Revenues of Rs 200 crore for FY08 and Rs 350-400 for FY09. 4)Kamat Hotels:Revenue of Rs 150 crore in FY-2008.5)Godawari Power and Ispat:Targets a topline of Rs 800 crore for the FY 2007-08.6)Dynamatic Technologies:Expects gross sales of Rs 500 crore in FY'08. 7)GEI Industrial Systems:Targets sales of Rs 185 crore for FY '08.8)Zensar Technologies:Targets FY08 topline at Rs 800 crore and bottomline at Rs 70 crore.9)Mudra Lifestyle:Expects topline to touch Rs 280 crore in FY 2008. 10)Vakrangee Software:FY08 revenues at Rs 200 crore with PAT margin of 20-25%.Present Order book position of some companies:-1)Ashoka Buildcon:An order book of Rs 2000 crore at present. 2)Ahluwalia Contracts (India):Has an order book of Rs 3000 crore.3)Simplex Infrastructure:Order book at Rs 7077 crore.4)B L Kashyap:Order book at Rs 1900 crore.5)KEC International:Order book including L1 stands at Rs 4800 crore. 6)McNally Bharat Engineering Company:Order book at Rs 1478 crore.7)BHEL:The outstanding order book position stands at Rs 72600 crore.8)Jyoti Structure:Current order book at Rs 2400 crore.9)GTL:Order visibility of Rs 1650 crore. 10)Welspun Gujarat Stahl Rohren:Order book position stands at Rs 5530 crore,executable over a period of next 18 months.

VBC Industries-Another multibagger in making
I am not supposed to put all clients note here but due to numerous request of you people i am putting the report of VBC industries which was recomended to clients at 13rs some months back.Scripscan-VBC Industries LtdCode-524310 CMP:13Target:30Equity-17.48 crs.Duartion=6-9 monthsStory-Belonging to VBC Ferro Group, VBC Inds. has at present investment activities. Its Equity is 17.48 crs. Book Value is Rs. 18.90. Company has following investments:1) Orissa Power Corporation: OPC is implementing 100 MW Hydel Power Plant in Orissa. VBC is holding 1.40 cr. shares in OPC which is nearly 45% of OPC's total Equity. 20 MW of OPC is scheduled to start in Dec. '07. To implement balance 80 MW, OPC may, after 6 months place Equity with some FII at Rs. 40-45 per share. Thus, value of VBC's investment in OPC will stand multiplied 4 times to nearly Rs. 60 crs. These days, scrips of Power Sector (particularly Alternate Energy) have highest fancy in the market. For Example, Energy Development has P.E. Ratio of 21, quoting at Rs. 85/-.In fact, when OPC comes out with IPO after 1 year, IPO may be at Rs. 80-100. It means, Equity Holding of VBC in OPC can be worth Rs. 140 crs. after 1 year or so.2) Konaseema: VBC Ind. is holding 1.4 cr. shares in Konaseema.Profile of KonaseemaKGPL is gas based power project which has, in Phase-I, already implemented 445 MW Power Plant. Plant for the same has been supplied by Siemens. EPC is by L&T and O&M is by NTPC. Other share holders of KGPL are:Name Equity---------- -----------L&T 5.06ILFS 6.75LIC 4.82GIC 4.82IDBI 8.43International Power Vision 2.01TIFOI 8.89Project cost of Phase-I was 1383 crs. Phase-I is ready to become operational but gas supplies did not start yet. As a result, project cost stands increased to around 1700 crs. Now, KGPL has embarked on Phase-II which involves setting up of 820 MW Plant at a cost of Rs. 2782 crs. which works out to Rs. 3.39 cr. per M.W.. D.E. Ratio will be 4:1.Phase-II is likely to be implemented by April 2010. Phase-II is being erected at the existing site to avail of ready infrastructure.L&T is providing 66 cr. deferred payment credit. It is reliably learnt that for Phase-II, KGPL may make pre-IPO placement of Equity at Rs. 40-45 per share. Once KGPL gets gas supply and power generation starts in June-08, company may come out with IPO at Rs. 100/- per share. Considering that Reliance Power may price its IPO of Rs. 2/- at Rs. 80/- per share (Rs. 400/- for Rs. 10/- F.V.) although, its Power Plant will be commissioned in 2012, KGPL IPO at Rs. 100/- should be a big success.Thus, again value of VBC Ind. investment in KGPL can easily be Rs. 150 crs.COMBINED VALUE OF ABOVE 2 INVESTMENTS OF VBC IND. SHOULD BE NEARLY RS. 300 CRS.New Trigger: Unlisted Group Company of VBC Group is likely to be merged with VBC Ind. This unlisted company holds 3 cr. shares of Konaseema. Market Value of these 3 cr. shares will be nearly Rs. 300 crs.Post Merger, Equity of VBC Ind. will rise to Rs. 30 crs. which means, around 3 cr. shares. And, its investments post merger will be:1) 4.40 cr. shares of Konaseema, market value of which can be Rs. 450 crs.2) 1.4 cr. shares of Orissa Power, market value of which can be Rs. 140-150 crs.Conclusion-Thus,combined value (post merger of VBC Ind. investments can be Rs. 600 crs. or even more. It gives market value of Rs. 200/- per share. Even if we give it a 85% discount to NAV, its share prices should be Rs. 30/-. Once the market gets the full story,Its share price can double in 6-9 months.As and when IPO of KGPL and OPC hit the market, share prices can go much higher.At 13-14rs it looks gem of a buy.Go for it guys.

Cinevistaas Ltd-Insider news update
Name:Cinevistaas LtdCMP-84Equity is 10.13 crs.B.V:62.50rsPromoters:68% stake.Story-Company has 4 acres land at Kanjur Marg, Mumbai.Market value of same is around 120 crs. However,company is not selling the land.In 1st Phase, company is developing an I.T. Park on 2 acres which will have around 2.20 lakh s.f. area.Company will not sell the same. Entire property will be put on lease which will earn around Rs. 26-28 crs. as lease rent each year.This works out to 2.60 -2.80 times of its Equity. Company will be spending around 48-50 crs for construction of this I.T.Park to be completed in 18 months.It is being developed by company itself without any partnership with any builder. Expected lease rent is calculated on the basis of prevailing lease rates although when project is ready in 18 months,company may get higher lease rates.For Phase-II, company will undertake development of remaining 2 acres on which also it will build 2.20 lakh s.f. I.T. Park.Conclusion-Media stocks are attracting abnormal valuations these days.These news is not known to the market.Insider claims the price target to be 120+ in the next 4 months.Bravehearts can go with it,"A HIGH RISK-HIGH GAIN STOCK".

Same old story in stock markets
This time it"s different."dont you hear this very often from people when you show concern about the continuos rise in stock prices and the sustainibility of the present bull run?Conventional wisdom is in doubt and every valuation parameter is challenged.When this happens,people start joining the herd and do what the majority does.Thus,u have everyone talking about the great indian growth story and everyone starts buying stocks at any available prices.Everyone buys stock at stretched valuations and remains equally confident of succesfully offloading to another fool who will be willing to buy at a stillhigher price.Cut back to 6-7 years ago:I was 13 then but still easily can recollect the heydays of the technology boom.If my recolections are solid i am pretty sure the these similar phenomenon was happening then too,only the rules of the game were very diffrent.People chose not to look at profits,instead,the mantra then was eyeballs".During that time if u went by conventional wisdom and asked someone the sanctity of the euphoria you were also told"This time its diffrent".The new economy is emerging. Coming back to the present.The new buzzword is "real estate".To cash on this craze u have managements selling stories about plans to develop and grow there real estate businesses.The euphoria of real estate is so overpowering that even companies having car parking spaces are given valuations in view of high real estate prices. Why do such things happen during a bull run?Why do people behave in such an irrational manner?The unique part about stock market is that it is devoid of any institutional memory.Stock markets being gambling dens,attracts diffrent typs of peoples in guise of investors.People starts entering the market in a bull ru,swayed by the lure of easy and quick money.When things comes crashing down,these people exit the markets vowing never to return.In the next bull phase,you have a very different set of players entering the stock market who do not have any memory of the past crash.Until they loose they dont relaise that its a dangerous game.Thus at any time in the market we find that those with memories constitutes only baout 25% which includes confident hardcore long term genuine investors.So irrespective of the bull and bear cycles,it is these 25% who survive the storms.The only time they get hit is when they turn greedy.Stock markets as i have discussed several times on my blog as well as orkut,are interesting places for the wise who are willing to be investors and stay invested for the long run.If u want to be succesful,understand that they are no shortcuts of making money.Do not be swayed when u hear stories of how people have made big fortunes in the stock world.It needs lot of patience,discipline,conviction to make such kind of a money.Further another thing which sud be noted is you are not aware of real facts,people dont like to talk about losses too.As warren buffet says"I have always beleived that of all the seven deadly sins,envy is the silliest.When you are envious,u r making urself miserable.At least,with the other deadly sins,you are enjoying urself."Sometimes its better to conserve money than to loose it"."After excitment comes the devil on to your door".