Midcaps.in Newsletter

Newsletter dated 04/02/2007

S.No. Scrips BSE Code Recommended Rate Target Rate. Analysis Report
1. TVS Electronics Ltd. 532513 49.95 63.00 TVS
2. Media Video Ltd. 530435 53.50 67.00 Media
3. Khaitan Chemicals 507794 60.85 77.00
Khaitan
4. Jaypee Hotels Ltd. 590027 74.80 94.00 Jaypee
5. MSK Projects 532553 92.60 116.00 MSK


Target rates are expected in three months frame of time, but we recommend you that whenever any scrip touches its target rate, you must dispose of all shares or in parts(If you have invested in that scrip),so that you may be able to invest those funds in other scrips recommended in further newsletters.


1. FORTHCOMING I.P.O.'s :-

S.No. Scrips Face Value Premium Issue Open Issue Close Rating
1. Power Finance Corporation Ltd. 10.00 75.00 31/01/2007 06/02/2007 **
2. Indian Bank 10.00 81.00 05/02/2007 09/02/2007 **
3. C&C Constructions Ltd. 10.00 281.00 05/02/2007 09/02/2007 *
4. Oriental Trimex Ltd. 10.00 38.00 08/02/2007 14/02/2007 *

Rating :- *** Very Good ** Good * Normal


2. SECTORS TO WATCH :-

Cement
Pharmaceuticals
Steel


3. STOCK IN FUTURES :-

S.No. Scrips BSE Code Recommended Rate Target Rate Stop Loss Analysis Report
1. Lanco Infratech Ltd. 532778 247.05 267.00 236.00 Lanco




4. MULTIBAGGER :-

S.No. Company Name BSE Code Recommended Rate Target Rate
(One Year) Analysis Report
1. International Travel House Ltd. 500213 155.40 240.00 International




5. LAST WEEK'S NEWS :-

25/01/2007
Silverline Tech to issue convertible warrants to promoters
Silverline Technologies' board at the meeting held on 24 January 2007, has considered to issue on preferential placement, convertible warrants at Rs 25.5 per share, to the promoters and persons acting in concert to the extent of 26% on fully diluted equity.The board has decided to hold an EGM on 5 March 2007.Further, the board ratified the de-merger decision and instructed the management to initiate the procedural formalities in terms of required statutory approvals.

29/01/2007
Surya Roshni's board approve expansion of CFL project

Surya Roshni's board at the meeting held on 27 January 2007, has given approval of expansion of CFL project at a total cost of Rs 20 crore.Further, the board has also approved the incorporation of separate segment and investment upto Rs 10 crore in the real estate business.

30/01/2007
Assam Co inks MoU for Rs 2k-cr SEZ in Gujarat

Amid the countrywide furore over special economic zones (SEZs), Assam Company has signed an MoU with Gujarat State Petroleum Corporation (GSPC) to set up a Rs 2,000-crore hydrocarbon SEZ in Gujarat.Abhay Chawdhry, director (finance) and chief financial officer at Assam Co told ET, We had signed the MoU with GSPC only a week ago. Assam Co is already present in the oil sector and has the expertise to develop the hydrocarbon SEZ.Even though Prime Minister Manmohan Singh has categorically said all SEZs in the country have been put on hold, Assam Co does not foresee any problems cropping up with its proposed SEZ. There may be some delay but we do not think our SEZ will face problems regarding land acquisition. There's plenty of land in Gujarat which is not strictly farmland, he added.The project cost has been pegged at Rs 2,000 crore. We expect to make the SEZ operational by 2010, Mr Chawdhry added. The MoU has been signed at a time when GSPC has drawn up plans to actively participate in the upstream hydrocarbon industry both in Gujarat and outside. It is an aggressive participant in the New Exploration Licensing Policy (NELP) rounds of bidding.It also has plans to diversify into downstream petroleum projects, including handling and distribution of LNG and pursuing coal-bed methane projects.We will float a special purpose vehicle for setting up this SEZ. Both GSPC and Assam Co have decided to form a joint working group to structure the SPV and prepare a roadmap for setting up the SEZ. The land requirement for the SEZ is yet to be decided, he said.It has been decided that both companies will nominate two members each to the joint working group that will structure the SPV. The committee will be formed within a fortnight. According to the MoU, GSPC shall be entitled to nominate the chairman of the board of the proposed SPV. Mr Chawdhry said GSPC-Assam Co combine would invite the likes of Geosis, Schlumberger and BJ to participate in the proposed hydrocarbon SEZ.

30/01/2007
Dr Agarwals Eye Hospital to allot preferential equity shares

Dr Agarwals Eye Hospital's members, at the extraordinary general meeting (EGM) held on 27 January 2007, have authorised the board to allot 12,50,000 fully paid equity shares of Rs 10 each at Rs 42.88 (inclusive of premium of Rs 32.68 per share) on preferential basis by private placements to the promoters.

31/01/2007
MSK Projects beats REL, Gammon for Rs 480-cr MP project

Infrastructure big-shots including Reliance Energy, Gammon India, Punj Lloyd and Shapoorji Pallonji have lost out to a lesser known consortium of MSK Projects, Chetak Enterprise and BSBK for the Rs 480- crore Bhopal-Dewas road project in Madhya Pradesh. The Madhya Pradesh Road Development Corporation (MPRDC), which opened the bids for the road project last week, came in for surprise as all the probable winners sought higher grant for the project compared to the consortium. Reliance Energy emerged second-lowest bidder for the project.The Rs 480-crore Bhopal-Dewas road project has a subsidy component of Rs 81 crore. The entire subsidy amount demanded by the developers will be met by the Centre,MPRDC deputy general manager Neeraj Vijay said. The proposed state highway, comprising 143 km, would take 30 months to be completed.The four-laning of the Bhopal-Dewas state highway, once completed, will ease the heavy traffic congestion on the route. It will also reduce time taken between Bhopal and Indore from around five hours at present to just three hours. The Indore-Dewas stretch is already four-laned. Dewas lies mid-way between Indore and Bhopal.MPRDC will also be receiving a negative grant of Rs 1,438 crore for the 126-km long stretch of Jawra-Nayagaon. The project, to be developed at a minimum cost of Rs 500 crore, is soon to be awarded to a consortium of Ashoka Buildcon and IDFC. The negative grant would be paid over a period of 22 years, increasing at 5% per annum.Reliance Energy is also in the race to bid for the Rs 500-crore Lebad-Jawra 126 km stretch. The last date for pre-qualification proposals is January 31,Mr Vijay said.Slated to be the state's largest road sector projects, the projects will be developed through the BOT toll model. The km-based toll rates, ranging from Rs 0.33 per km for a car to Rs 3.93 per km for multi-axle vehicles, would be upwardly revised at 7% per annum.

31/01/2007
Sangam India to issue FCCBs worth $ 22 million

At the EGM held on 27 January 2007, Sangam India's board had decided to issue FCCBs worth $ 22 millions, proceeds of which will be utilised for part funding of ongoing expansion and diversification projects of the company.

31/01/2007
Uco Bank to sell Rs 50-cr NPAs by end-March

KOLKATA: UCO Bank plans to sell about Rs 50 crore of bad loans to asset reconstruction companies (ARCs) by March 31. This exercise will help the bank shrink its non-performing assets (NPA) book.We are in talks with some asset reconstruction companies. This exercise will be carried out before the end of 2006-07,Uco chairman and managing director V Sridar said. During 2005-06, the bank sold Rs 20 crore of bad loans to the Kotak Bank-promoted asset reconstruction company.Uco's NPA is still on the higher side compared to average industry level. It had gross NPAs of Rs 1,386 crore as on December 2006, which increased from Rs 1,306 crore from March 2006 level. Its net NPA has also increased to Rs 921 crore. We also plan to recover close to Rs 425 crore of bad loans, Mr Sridar said. It has already recovered Rs 279 crore during April-December 2006 period.In ratio terms, its net NPA was at 2.15% as on December 31, 2006, which has increased from 2.02% on September 30, 2006. Gross NPA stood at 3.23%. There were slippages of Rs 589 crore during the first nine months of 2006-07. For the quarter ended December 2006, slippages were to the tune of Rs 212 crore,Mr Sridar noted.The bank intends to reduce our gross NPA to 2.58% and net NPA to 1.59% by March 2007. This is an aggressive target and we plan to use all options available to reduce NPAs,said Mr Sridar.

31/01/2007
Zenith Birla to foray into construction industry

Zenith Birla India's board at the meeting held on 30 January 2007, has approved setting up of 50:50 joint venture company with Aluma Systems, Canada for entering into the business of providing technical consultancy and project management services to the construction industry.Further, the company will be initially investing $1.5 million (Rs 675 lakh) towards its share in the capital of the proposed company.

01/02/2007
Varun Shipping acquires new 2001 built vessel

Varun Shipping Company has acquired one 2001 built anchor handling and towing supply vessel (AHTS vessel). It has 16,000 T bhp and bollard pull of 180 tonnes.This vessel will be used for deep sea oil exploration going on in North Sea, Bay of Bengal and Atlantic Ocean off the coasts of Nigeria, Brazil and Mexico.

02/02/2007
Essar refinery fire kills four

Four workers were killed and at least 18 others were injured after a fire broke out at the oil terminal at Essar Oil's Vadinar refinery on Thursday. Most of the victims hail from Orissa and Bihar. The fire was quickly brought under control and the refinery is functioning normally, the company said in a statement. Essar as well as the district administration are now investigating the cause of fire.About 100 labourers were working at the station when the fire broke out and a few of them were engaged in the maintenance of the pipeline. According to sources, sparks from welding and grinding work on an adjacent dry pipeline triggered fire in a naphtha pipeline.Prima facie, the fire was not due to breach of any safety norms or any sabotage. However, we have appointed a committee headed by the head of safety at Essar Steel in Hazira to look into the cause of fire, AN Sinha, managing director, Essar Oil told ET. The oil terminal, where the fire broke, out is connected with the company's recently commissioned 10.5 million tonne per annum capacity refinery.The refinery was commissioned in December 2005 and is currently in the process of achieving its targeted capacity of 10.5 mtpa by March.There was a fire in the pig launching station of Essar's Vadinar Oil Terminal leading to casualty of four workers while few workers were injured. Within minutes of the occurrence, the fire was put out by refinery team. The refinery, however, is functioning normally,the company said in a statement. The injured workers belonged to the contractors working for the Essar Oil.There are norms based on which we give out compensation and we have ensured adequate and prompt compensation for the affected workmen,Mr Sinha said.The district administration has simultaneously sent its team to investigate the extent and cause of fire. We have sent officials to the site to assess the cause and extent of fire. More details on this could be ascertained on Friday,VP Patel, collector, Jamnagar told ET.This is second incident of fire at a refinery in last three months in Gujarat. In October fire broke at VGO unit of Reliance's refinery at Jamnagar complex led to a shut-down of some of its units and seriously injured one of its employees.

02/02/2007
Gangotri Iron & Steel's Patna project to be funded by SBI

Gangotri Iron & Steel Company has acquired an approval from State Bank of India for a total fund based loan of Rs 457.10 lakhs and non fund based loan of Rs 45.2 lakhs, for it's new project being put up at Bihata near Patna in Bihar.



6. MUTUAL FUND'S SCHEME :-

S.No. Scheme NAV Details
1. SBI Magnum Midcap Fund (G) 23.92 SBI