TTK Prestige

Company Website: TTK PRESTIGE LTD; NSE : TTKPRESTIG
On Rediff: Click here for Quotes, Financials and Other details
Industry Sector: Consumer Durables
CMP: Rs. 159; Price Target: Rs. 200 in 6-12 months; Downside: Can fall to Rs.115

My Assessment:
Buy on dips below 160; Sell on flare ups above 180 Or Hold for long term if delisting doesn't happen.

Reasons to Buy (Opportunities):
. The market cap of less than 200 Cr, doesnt reflect value of land holdings
. News is out on large scale commercial development of company's land in Bangalore
. Foray into Retail has started kicking in with benefits
. High 72% promoter holding; trusted promoter group known for ethical behaviour
. Trusted brand with quality products range
. Current valuation of less than 9 P/E and less than 1 year annual sales value reflects potential for re-rating even without considering land value.
. Decent and consistent dividend track record

Reasons to Stay Away (Risks):
. Company is considering de-listing, it is unclear on their approach, it could be positive or negative for small investors - need to watchout for news on this
. Being a small cap means very high volatility in share price

Research:

http://india.dalalstreet.biz/earningsnews/2008/08/ttk-prestige-undervalued-delisting.html

Suzlon Energy

Company Website: Suzlon; NSE : SUZLON
On Rediff: Click here for Quotes, Financials and Other details
Industry Sector: Wind Energy Equipments
CMP: Rs. 241; Price Target: Rs. 400 in 12-18 months; Downside: Can fall to Rs.190

My Assessment:
Buy on dips until 300, Book some profits at 380. Hold the rest for > 5 years
(Always watch out for any developments that could affect the prospects).

Reasons to Buy (Opportunities):
. Global industry with huge potential for Integrated players like Suzlon
. Scaled up well through aggressive acquisitions for backward and forward integration
. Presence in all key markets - US, Europe and China, with good orderbook
. Potential for re-rating upon capacity expansion in FY09-10
. Will benefit from Green Energy push, esp. in Europe
. Has grown at CAGR of 90%+ in last 3 years
. Significant margin expansion as shown in recent quarterly result
. Current price is about 40% lower than its peak price

Reasons to Stay Away (Risks):
. Recent quality issues in certain US projects and orders cancellation
. Valuations of nearly 30 P/E on TTM basis (20 P/E at FY10 projections), means any issues with growth can affect the stock considerably

Research:
1. Click here for Recent Merril Lynch Research Report - Price Target of Rs. 360
2. Click here for Business Standard Research Article

Bharati Shipyard (BHASHI)

Company: Bharati Shipyard Limited.; NSE : BHARTISHIP
On Rediff: Click here for Quotes, Financials and Other details

Industry Sector: Ship Building

CMP: Rs. 330; Price Target: Rs. 600 in 12-18 months; Downside: Can fall to Rs.260.

My Assessment: Buy on dips until 400, Book some profits at 500. Hold the rest for > 5 years (Always watch out for any developments that could affect the prospects).

Reasons to Buy (Opportunities):
.Global industry with huge potential for Indian players

. Good Management – First generation entrepreneurs, professional leadership.
. Solid order book (7.6 times FY08 Sales, pipeline till end of FY11)
. Scaled up very well in terms of capacity, product mix, geographical spread in the last 3 years.
. Available at attractive valuation of less than 9 P/E ratio.

Reasons to Stay Away (Risks):
. As a Midcap stock carries higher market risk – higher price volatility
. FCCB exposure - Equity dilution; Forex mark to market losses
. Uncertainty on government subsidy policy for ship building
. Ship building is cyclical, major global slowdown can have long downside.

Research:

Recent Research Report found on the Net: Click here – (12/08/08).

Valuation Trend:

Tail Piece: In May '08, ICICI Direct had a 12-15 months price target of Rs. 780.

Intentions...

This blog is to share my thinking on investing options, one option at a time.