Thursday, 30 October 2008

3 favorite counters where bulls thrive.

Praj Industries:
The stock of the biofuel technology company has declined more than 60 per cent in the past year and it is now quoting close to its 52-week low of Rs 73. Rakesh Jhunjhunwala had increased his stake from 5.39 per cent to 6.26 per cent in the September 2008 quarter. Currently, the market value of his holding in Praj is close to Rs 95 crore, whereas the stock price has declined more than 33 per cent from Rs 125 on September 30. Praj industries, which is set to benefit from its operational presence in all major ethanol producing countries, is trading at a price-earnings ratio of 9.39x and 7.50x of its FY09 and FY10 earnings, respectively.

Nagarjuna Construction:
The stock of the diversified infrastructure company, in which Jhunjhunwala holds close to 12.5 lakh shares, has declined more than 81 per cent in the past year and has come off more than 53 per cent in the past one month. Jhunjhunwala’s stake in the company is now worth close to Rs 7.5 crore. A promoter group company, AVSR Holdings, has acquired 7.82 shares from September29 to October 3, aggregating 0.34 per cent of paid-up capital. Following the purchase, the promoter holding in the company has increased to 23.63 per cent.

Punj Lloyd:
The stock of this engineering and construction major, which has declined more than 34 per cent from October 1,2008, is currently trading close to its 52-week low price of Rs 183. As on June 30,2008, Jhunjhunwala was holding close to 1.66 per cent stake, which is valued at Rs 108 crore at current prices. The company recently bagged a construction contract from Qatar Petroleum worth $800 million, while the order backlog for the group stands at Rs 24,063 crore. The stock is trading at a price-earnings ratio of 1 3.95x and 1 0.4x of its FY09 and FY10 earnings, respectively.


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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.