Tuesday, March 31, 2009

Investment Strategy-other way

I wish to share my views on portfolio building with the readers. It is expected that a minimum of 6 months are still ahead of us to build a strong and worthy Portfolio. The election menace may bring some more downfalls in the market but there is some favorable aspects also developing around which may help a gradual recovery by the end of 2009.
The research before investing in a scrip includes a number of factors like companies’ assets, liabilities, earnings, managers, competitors, the nature of business, the amount of debt etc. You can find many of this information in the balance sheets. If you have done your homework and closely studied all the aspects of a company, you should be rewarded with a high returns.

I would like to share a raw investment strategy which I am planning to apply with this extreme volatile and uncertain bear market. It is not much the conventional or intellectual way of investing. But I believe in this system and it is proved as the best strategy in any long running bear markets.

Full or partial of the following factors should be considered while selecting each of the stocks listed below.

(a) The fundamentals
(b) A bit of Technicals
(c) The product trend and applicability issues
(d) The future scope of products/Services
(e) The Management
(f) Assets/Infrastructure of the Company
(g) Certifications and Awards
(h) Market Response
(j) Previous Products/Projects
(k) Investor relations
(l) Dividend History

I am planning to accumulate stocks with a long term vision of 3 -15 years. Gradually wish to filter them down and would like to keep the best 2 to 3 in every sector. I am basically not concur with the logic, that one should not maintain a portfolio of more than 15-20 stocks. I prefer the most proved and worthy practice (in other areas) of filtering down to reach your specified numbers of stocks that as much you can monitor.

Managing Your Portfolio

For example, its some way similar to selection of a Football team. You are the coach of this team. Suppose, you have a 25 member team of best players from which you will select the first 11. Remember that they are the best in their respective play positions and you have an unambiguous trust on their abilities. You have selected this 25 people after stiff and exhaustive selection process. You should have more than one choice to play in every position, like good Stopper Backs, good Goal Keepers and good forwards.

You will not hesitate to skip any player at any time if he creates a burden for you. You will also not allow to play an injured player in the first eleven. You will replace the position with other best player who is sitting in the pavilion. Don’t keep any emotional attachment to any of the players and the performance should be the only criteria to keep them with you. Closely watch their performance and rotate them which best suits your team.

Buy in dips & Averaging

You can buy as little batches of 100, 500 or 1000 at every falls depending on your cash reserve. It is also possible to accumulate below the 9000 level of Sensex. Sort your portfolio frequently in ascending order on “Overall Gain” or “Net Profit figure”. Keep averaging from the bottommost scrip which shows the lowest overall gain percentage. Do these practices until some steadiness come to the market.

We cannot predict the exact sector which is going to be emerge in coming days. And its harder to find the best too. Even if we found one …what’s the matter? Satyam was one of them.

I wish to propose that,

Select 3 to 4 companies best in each sectors and do filter down on the basis of frequent performance review. The time has to show us the best. And for the non-performers, leave them simply on the way.

I am not responsible for your investment decisions. Please do your own analysis before any bulk investments.

Sunday, March 22, 2009

Multibagger Series - assured

Its an effort to introduce you one of the Dark Horses in my list or a future multibagger. I have placed a link to the edited screenshot from the BSE site which tells you everything about the history of its performance. I strongly believe that the history will reiterate. If you convinced, please include it in your PF.


SCRIP - Electrotherm India
BSE CODE - 526608
PRICE ON 20/03 - 90.15
SECTOR - Electric Vehicles
PE - 1.70
EPS - 46.17
BV - 348.50
52W Low/High - 76/501

Electrotherm India Ltd have 3 divisions, Metallurgical Equipment Division, Steel Division and Auto Division (Indus Elec-Trans, manufacturing electric two wheelers). Electrotherm has its network at as many as 27 places in India and also in Africa, Bangladesh, China, Iran, Malaysia, Pakistan, South Africa, Turkey, Russia and other CIS countries.

The company has signed a memorandum of understanding (MoU) with Canadian firm, Electrovaya. This MoU is for the purpose of forming a joint venture (JV) for manufacturing lithium ion polymer batteries. This joint venture will set up an advanced lithium super polymer battery plant with a capacity of up to 10 mw hours a month. The batteries will be sold in the zero-emission electric vehicle market in India and abroad.

Electrotherm India launched the high-speed version of e-bikes, 'YO-Speed' . The "no petrol scooter" with 33AH battery and a 750 watts motor has the power to seat two.

The company has signed a memorandum of understanding (MoU) with Ningbo Olisen Bipolar Batteries, China for technology transfer to manufacture special kind of high energy electric two-wheeler batteries.
Indus Elec-trans, a division of Electrotherm (ET), is formed to manufacture electric vehicles and hybrid electric vehicles. Currently INDUS has commenced manufacture of hi-tech electric two wheelers, YObykes at the plant at Kutch in Gujarat. Development of Electric three wheelers, four wheelers and hybrid electric low floor buses are on anvil for future.

Will you include this in your PF ? or after a ride ?

I am not responsible for your investment decisions. Please do your own research before any investment.

Think Different

The following lines are from a forwarded mail by Mr Sandeep Prasoon, Sr Technical Support Officer, Microsoft. I wish to share these with readers as its a mere matter on how think different. The another motive behind to publish this topic is to shore up the great management theory “Great problems have only simple solutions”.

When NASA began the launch of astronauts into space, they found out that the pens wouldn't work at zero gravity (ink won't flow down to the writing surface). To solve this problem, it took them one decade and $12 million.

They developed a pen that worked at zero gravity, upside down, underwater, in practically any surface including crystal and in a temperature range from below freezing to over 300 degrees C.

And what did the Russians do...?? They used a pencil.

One of the most memorable case studies on Japanese management was the case of the empty soapbox, which happened in one of Japan’s biggest cosmetics companies. The company received a complaint that a consumer had bought a Soapbox that was empty.

Immediately the authorities isolated the problem to the assembly line, which transported all the packaged boxes of soap to the delivery department. For some reason, one soapbox went through the assembly line empty. Management asked its engineers to solve the problem.

The engineers worked hard to devise an X-ray machine with High-resolution monitors manned by two to watch all the soapboxes that passed through the line to make sure they were not empty. No doubt, they worked hard and they worked fast but they spent a huge amount to do so.

But when a rank-and-file employee in a small company was posed with the same problem, he did not get into complications of X-rays, etc., but instead came out with another solution. He bought a strong industrial electric fan and pointed it at the assembly line. He switched the fan on, and as each soapbox passed the fan, it simply blew the empty boxes out of the line.

Always look for simple solutions. Devise the simplest possible solution that solves the problems
Always Focus on solutions & not on problems

So at the end of the day the thing that really matters is HOW ONE LOOKS INTO THE PROBLEM, mere perceptions can solve the tough probs....

If you take your eyes off your goals, all you see is obstacles...

Thank you Prasoon and Bijith

Wednesday, March 18, 2009

The Emerging Sector - Fixed


What you think the most pragmatic and indisputable emerging sector will be?

Is it alternate energy themes like Bio-fuel, Wind energy or Solar power solutions?

Or Mobile VAS, DTH or HITS technology?

Or is it Agriculture sector?

Or Electric/Hybrid Vehicles ?

All the above sectors can include in the emerging category with out much thinking and have good scope with the coming time. These sectors are very much depending on the upcoming technology changes and the adoptability issues up to an extent. But I would like to state a few facts on another area which is inescapable for the global community and the sector should come about an emerging or none a way back.

I am talking about the Water Management stuff which will be the most emerging and inevitable sector in coming days. Drinking water will be the rarest and most demandable substance in 21st century. Experts says, if a world war occurs again … its for water …nothing else.

We know that nothing on the earth can survive without fresh water, that a human can’t survive after three days without it. I will provide some facts and statistics related to water which will help you to assess the importance of this sector as well the significance of saving every drop of water.

The following info may also help you to make a decision on investment in the companies involved in water management with a long term vision by understanding how this stuff "water" going to be precious. Most of the information quoted below is related to this sector and some I placed only cause of the gripping nature of the news. I have named some companies below which are in the field of this indisputable emerging sector. Decide yourself whether you include the best of them in your portfolio after reading the portion full.

Jain Irrigation
KSB Pumps
Kaycee Industries
Hindustan Dorr-Oliver
ION Exchange India
Subhash Projects
Bisleri/Himalaya(Mineral Water)
Pratibha Industries
Chembond Chemicals
Kirloskar Brothers
Eureka Forbes

70% of the Earth is covered by water.

Only 2.5% of the world’s water is fresh while 97.5% is saline and in oceans.

Only 0.3% of this freshwater is available from rivers, lakes and reservoirs

The rest is stored in distant glaciers, ice sheets, and mountainous areas – all places that we can hardly access.

Less than 1% of freshwater is usable, amounting to only 0.01% of the Earth’s total water.

If the entire world's water were fit into a gallon jug, the fresh water available for us to use would equal only about one tablespoon

Some 97% of liquid freshwater is stored underground in aquifers. People, especially in rural areas, are mostly dependent on groundwater. Around 2 billion people, a third of the world’s population rely on it. Aquifers are most brutally exhausted in parts of India, China, US, North Africa and the Middle East. It can take centuries for aquifers to reinstate. So the world is currently running a groundwater overdraft of 200 billion cubic meters a year.

By 2025 two-thirds of the world’s people will be facing water stress. The global demand for water will have grown by over 40% by then.

An average of 10 lakh people dies cause of wars every year. But 50 lakh dies with out water or water related issues. War or Water ? which is most fatal ?

40 billion hours each year are spent collecting water in sub-Saharan Africa, equal to over 19 million full-time employees.

Over a billion people in the world do not have access to safe water; this is roughly one sixth of the world's

While the world's population tripled in the 20th century, the use of renewable water resources has grown six-fold. Within the next fifty years, the world population will increase by another 40 to 50%. Then ?

Over the past century our water consumption increased tenfold according to the WHO.

By 2025 two-thirds of the world’s people will be facing water stress. The global demand for water will have grown by over 40% by then

443 million school days are lost each year due to water related diseases

Many women and young girls in developing countries must walk as much as six miles everyday to retrieve water for their families.

The recommended basic water requirement per person per day is 50 liters. But people can get by with about 30 liters, 5 liters for drinking and cooking and another 25 to maintain hygiene. The reality for millions comes nowhere near.

Each year, more than 2.2 million people in developing countries die from preventable diseases associated with lack of access to safe drinking water, inadequate sanitation and poor hygiene.

Every 15 seconds, a child dies from a water-related disease.

88 percent of all diseases are caused by unsafe drinking water, inadequate sanitation and poor hygiene.

At any given time, half of the world's hospital beds are occupied by patients suffering from a water-related disease.

People in rural areas are four times more likely than those in cities to have no safe supply of water.

The urban population pays on average 12 times more per litre. In Jakarta, Indonesia the poor pay water vendors 60 times the price of water from a standard connection; in Karachi, Pakistan, 83 times; and in Port-au-Prince, Haiti and Nouakchott, Mauritania, 100 times.

By 2015, water will be the villain in death of 1 in every three.

The usage of fresh water Increased by 6 folds over last hundred years.

The fresh water depleted to 1/3rd in last 20 years and the usage has been doubled.

A study by International Water Management shows, by 2025 India will be in a deadly shortage of drinking water/fresh water.

India uses the 93% fresh water for agricultural purpose, 3.27% for industrial purposes and the rest 3.73% for domestic usage.

Saline water can be desalinated for use as drinking water by going through a process to remove the salt from the water.

Each day the sun evaporates a trillion tons of water.A small drip from a faucet can waste as much as 75 liters of water a day.

A person must consume 2 litres of water daily to live healthily. Humans drink an average of 75000 litres of water throughout their life.

Over 70,000 different water contaminants have been identified.

If all new sources of contamination could be eliminated, in 10 years, 98% of all available groundwater would then be free of pollution.

Freshwater animals are disappearing five times faster than land animals.

Humans daily use about 190 litres (50 gallons) of water.

Two thirds of the water used in a home is used in the bathroom.

To flush a toilet we use 7.5 to 26.5 litres (2 to 7 gallons) of water.

In a five-minute shower we use 95 to 190 litres (25 to 50 gallons) of water.

To brush your teeth you use 7.5 litres (2 gallons) of water.

For an automatic dishwasher 35 to 45 litres (9 to 12 gallons) of water is used.

The 40000 crore steel plant (Mittal Group) at Orissa required 12 billion metric ton water in a year.

1 kg of steel production requires 45-295 liters water.

1 kg of paper production requires 160-273 liters of water.

1Kg Alluminium production requires 1340 liters of water

1 Kg synthetic fibre production requires 200 liters of water

1 Kg Glass production requires 70 liters of water

Purification of 1 litre petrol requires 10 liters of water

1 Kg Butter production consumes 10 liters of water

1 KG sugar production requires 9 literes of water

1 Kg Sulfuric Acid production requires 10 liters of water

It takes 5,680 litres (1,500 gallons) of water to process one barrel of beer.

About 25,700 litres (6,800 gallons) of water is required to grow a day's food for a family of four.

It takes 7,000 litres (1,850 gallons) of water to refine one barrel of crude oil.

To manufacture new cars 148,000 litres (39,000 gallons) of water are used per car.

Is this sector emerging? I think a fixed one!

It is expected that increasing demand and thinning presence will make the water costlier and they, the related service providers will do better in days to come. It is recommended that a good long term vision portfolio must have one or two good scrips from the above list.

Request comments and

I am not responsible for your investment decisions. Do your own homework before any bulk investment.

Wednesday, March 4, 2009

Multibaggers - Part II

Dear Readers,
We have reached almost near the bottom of Sensex. There is none a further 13,000 points left to fall. It is expected a maximum of 2000 more points may crash, if a worst fall down occurs. This is the right time to start the great accumulation process on every major fall, will do miracles in long term by a careful selection of good stocks. Please do your own research before make any investment decisions.

I have put together some facts on certain 60-70 scrips I collected while searching good stocks to invest. The first batch of 10 were published in http://www.stockmarketguide.in/ in the month of February. I am submitting 4 more for your perusal and further investments decisions. I am sure that the Small/Mid cap scrips quoted below will do great job for us in coming days and will be the real multibaggers in future.
I am planning a 3 to10 year long term investment to scrip specific and expect readers will make close analysis before any bulk investments. I didn’t stressed much on the technicals, instead, I recommended a best BUY RANGE after considering certain technical factors. The right time to enter in the market is unpredictable in current situation and the BUY RANGE proposed may help you to take a decision.


Om Metals Infraprojects Ltd, is a company (Kothari Group) having diverse business activities and interests related to Hydro mechanical equipments, turn key solutions for steel fabrication, Hydro power developments, Real Estate, Leasing, Finance, Entertainment centers, Hotels and tourism. The ISO 9002 Company is pioneer in the field of execution from Design, Detailed Engineering, Manufacture, Supply, Installation, Testing & Commissioning of complete range of Hydromechanical equipments for Hydroelectric Power & Irrigation projects, PHED, PWD & various Corporations.

Om Metals Infraprojects Ltd. has to its credentials more than 40 projects completed all over India and abroad. Some major on going projects are Sripada Sagar Project, Kameng Hydro Electric Project, Koldam Hydro Electric Project, Sewa Hydro Electric Project, Madikeda Project, Parbati III Hydro Electrical Project, Chamara II Hydro Electrical Project, Uri II Project, Teesta Low Dam IV Project and Tapovan Vishnugad Project .

A Special Purpose Vehicle "Pondicherry Port Ltd" (PPL) has been iniatiated as a 50:50 joint venture between Subhash Projects & Marketing Ltd (SPML) and Om Metals Infraprojects Ltd. The port will be developed in four phases and will be completed by 2014. It will provide direct and indirect employment to over 10,000 people.

Om Metals has grossed in engineering sector alone a turnover of USD 25M and is now targeting a turnover of USD 50M. The company has successfully completed more than 50 Irrigation and Hydro Power projects across the nation and abroad. Bagged prestigious contracts from organization like World Bank, NTPC, Ministry of External Affairs, NHPC, NEEPCO and others Profit making company since its incorporation.

BSE CODE - 531092
SCRIP - Om Metals Infraprojects Ltd
PRICE - 06.76
SECTOR - Hydro Power and other Infra
PE - 3.80
EPS - 3.91
Book Value - 34.01
52W Low/High - 5/59


Amara Raja Batteries (AMARARAJA) is engaged in manufacturing batteries for the automotive and the industrial sector. Amara Raja will perform beyond our expectations in the Electric/Hybrid vehicle Era. I am dreaming about 2, 3 and 4 wheelers including low floor buses of our state RTCs running on electricity, will rule the roads in coming 7-10 years. If it happens, you will see the hi-tech BATTERY HUBS for recharging/replacing the batteries at every nook and corner. Amara Raja “PitStops” will definitely be there with its advanced technology power boxes. Just imagine that you are holding a Smart Card of AMRB and can recharge/replace the battery of your electric 2/3 or 4 wheelers at anywhere through out your journey.

The company has a range of automotive batteries sold under the brand name Amaron like Pro, Hi-Life, Hi-Way, Harvest, Go, Fresh, Optima, Shield, Gems, and Tips. Original manufacturer (OE) customers include Hyundai, Maruti Udyog, GMIL, HML, Ford and others. It is the market leader in India in the VLRA segment with 42% market share. It is also the largest & dominant market leader of standby batteries in Railways, Telecom and Power Generating stations in India. Leading Clients includes BSNL, MTNL, Lucent, Alcatel, Seimens, BHEL, CGL etc…

The company has technical collaboration with US-based Johnson Controls. The company`s franchisee outlets are known as PitStop, and it has more than 150 PitStops across India. The company’s industrial and automotive batteries are exported to Singapore, Malaysia, Indonesia, Taiwan, Philippines, Greece, Australia, Kuwait, Dubai, China and Japan.

The company invested Rs 882 million to increase automotive battery capacity by 50% from 3.6 million units per annum to 5.4 million units per annum. They also plan to expand the capacity of the industrial battery division, which would incur a capital expenditure of Rs 650 million. The company would be investing Rs 1,134 million in setting up a facility at Tirupati for the manufacture of two wheeler and small VRLA batteries. The proposed investment would be spread over three to four years.

Amaron® is the preferred supplier to Daimler Chrysler, Ford and General Motors. It has selected as automotive product of the year 2000 by Overdrive, Excellence in Environmental Management in 2002 by AP Pollution Control Board. Creative Advertiser of the year '2002 by ABBY, Ford "World Excellence Award" , Ford Q1 Award , ISO-9001 in 1997, QS 9000 in 1999, ISO/TS 16949 in 2004, ISO 14001 in 2002.

The company is one of the largest (designed for producing 3.64million batteries p.a.) and most modern automotive battery plants in Asia . Most of the product components are built in-house and maintains fully automated production line. To cater to ever changing customer needs, Amara Raja has also built a Battery Excellence Centre - the first of its kind in Asia. This research and engineering centre has been conceived as a completely self-sufficient facility with a full range of testing equipment. The centre incorporates all the latest gadgetry for battery performance evaluation, design and life testing and also has capabilities for application engineering, vehicle systems study, simulations and computer-aided design including a full calibration laboratory on site.

The company has launched a new retail store format – Powerzone. Powerzone will offer top quality automotive and power related products for the rural households and shops. It will be a one stop shop offering a platter of products from automotive batteries, tractor batteries and home UPS, from the House of Amara Raja. The first Powerzone store was inaugurated at Chengalpattu, in Tamil Nadu, recently.

BSE CODE - 500008
SCRIP - Amara Raja Batteries Ltd
PRICE - 33.60
SECTOR - Batteries
PE - 3.00
EPS - 20.58
Book Value - 39.00
BUY RANGE - 30-35
52W Low/High - 33/144


Opto Circuits (I) Limited (OCI) is a Bangalore based company engaged in manufacturing of Medical Diagnostics equipments includes, Pulse Oximeters, Pulse Oximeter Sensors, Fluid warmers, Cholesterol monitors etc... OCI is in a specialized, technology oriented Opto electronic industry since 12 years. OCI has the status of Export House and has been awarded two star trading house status by the Government of India. It has ISO 9001-2000 and ISO 13485-2003 quality system certification. OCI group companies have been awarded CE approval for its products. The subsidiaries of OCI possess FDA approval for different products being manufactured by them.

OCI’s infrastructure includes a full fledged R&D and manufacturing facility at Electronics City, Bangalore. OCI’s flagship products like: Pulse Oximeters, Sensors, Digital Thermometers, Thermal Bill Printers are some of the turn key solutions by the company. With its thorough knowledge of the industry & expert management, OCI can competently handle total solutions for its clients, right from conceptual level to the finished product which includes software, hardware and support system..

Criticare Systems, Inc, is now a wholly-owned subsidiary of Opto Circuits. Criticare Systems Inc. designs, manufactures, and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world. Mediaid Inc. is a wholly owned subsidiary of Opto Circuits India Ltd. Mediaid has an established distribution network across US, Latin America and Europe.

Eurocor Gmbh, a 100% subsidiary of OCI, is a European Life Sciences Technology corporation specializing in the research, development and manufacture of interventional cardiology products. Eurocor specializes in coronary stent technology and special cardiovascular devices. Eurocor currently sells its products in over 26 countries around the world. OCI also acquired the Digital Clinical Thermometer division from Hindustan Lever in India during 2002.

The leading National clients of the company includes Manipal Group of Hospitals, Escorts Heart Hospital Delhi, Wockhardt Heart Hospital (Delhi, Mumbai), Apollo Group of Hospitals, Lilavati hospital Mumbai, Breach Candy Hospital, Mumbai etc..

OCI has received Section 510(K) US FDA (United States Food & Drug Administration) approval on two of its new generation range of Pulse Oximeters. The latest certification enables OCI to market its M30 and M34 Models of Pulse Oximeters in the United States which is the largest market for these products. The M30 and M34 Models are already being successfully marketed in Europe and Asian countries.

BSE CODE - 532391
SCRIP - Opto Circuits (India) Ltd
PRICE - 78.45
SECTOR - Medical Diagnostic Equipments
PE - 11.50
EPS - 10.86
Book Value - 19.71
BUY RANGE - 60-80
52W Low/High - 69/244


Hindustan Dorr-Oliver (HINDDORQ) is a leading total engineering solution provider company. The ISO 9001:2000 certified company provides engineered solutions, technologies and EPC installations in liquid-solid separation applications and pollution control for industries like pulp and paper, mineral beneficiation chemicals, food and pharmaceuticals, breweries and distilleries, refineries and petrochemicals, oil and gas, phosphatic fertilizers, industrial and municipal waste water. The research and development facility is certified by Dept. of Science and Technology, Govt. of India.

The company has bagged several contracts from prestigious companies like Hindustan Petroleum Corporation, National Aluminum Company, Bharat Oman Refineries, Indian Oil Corporation, Vedanta Alumina etc…The company has long-term business associations in Sri Lanka, South East Asia, Jordan, UAE, Kenya, Iraq and Kuwait.

HDO has an excellent track record in Mineral Beneficiation, which is one of its core business sector. HDO enjoys leadership in more than 70 different metallic and non-metallic mineral processing industries. HDO has served almost all the customers in Alumina Industry, viz. NALCO, HINDALCO, BALCO, INDAL, MALCO and VEDANTA, by supplying its core process units, such as Sand Washing Plant, Conventional Thickeners, Hi-rate Settlers, Cable Torque Thickeners, Kelly Filters, Disc Filters, Red Mud Filters, Horizontal Pan Filters, Milk of Lime Plants, etc.

HDO has made a major contribution in the field of Uranium Ore Processing and Extraction Plants in India, and has supplied equipment and system to Uranium Corporation of India Ltd., for their Jaduguda Project. The company is also a pioneer in Water / Wastewater and Industrial Effluent Treatment Systems and offer integrated solutions for customer satisfaction. The company has over five decades of experience in India / abroad in terms of executing turnkey projects in this field.

Water Treatment:-

  • Drinking Water Treatment

  • Industrial Process Water Treatment

  • Reverse Osmosis

  • Circulating Water Treatment

Wastewater Treatment:-

  • Domestic Sewage Treatment

  • Industrial Effluent Treatment

  • Refineries and Petrochemical

  • Pulp and Paper Industries

  • Dairy Industries

  • Textile Industries

  • Fertilizer Industries

  • Chemical Industries

  • Tanneries


HDO also specialized in separating the solids from the liquids in chemical industry. Solid-liquid separation units, such as Thickeners, Clarifiers, Classifiers, Drum Filters, Precoat Filters, Disc Filters, Horizontal Pan Filters, Horizontal Belt Filters, are some of the equipment, which cater to this segment.

HDO was closely associated for post-war construction work in Iraq, which included complete supply and installation of water distribution pipelines and treatment works. HDO has also supplied unique containerized mobile drinking water treatment plants to Iraq. HDO Manufacturing Works is having U Stamp Certification from ASME, United States of America.
HDO has executed many projects with specific technology tie-ups from the companies abroad. This includes:-

GL&V - CANADA (For Equipments in Mineral processing and beneficiation)
CHALICO GAMI - CHINA (For projects in Alumina Smelter and Refining.)

ABS - SINGAPORE (For lending technology support in WTP/STP/ETP projects and associating as Equipment supplier.)

KEPPEL SEGHERS - BELGIUM (For various Wastewater Technologies.)

SFC – AUSTRIA (For SBR technology.)

GE INFRA – USA(For Comprehensive water reuse technologies.)

BSE CODE - 509627
SCRIP - Hindustan Dorr-Oliver Ltd
PRICE ON - 35.25
SECTOR - Engineering/Turnkey Services
PE - 5.50
EPS - 10.88
Book Value - 35.71
BUY RANGE - 20-30
52W Low/High - 24/139

I am not responsible for your investment decisions and do close watch before taking any. Happy Investments!

Monday, March 2, 2009

Order Book - February

I have put together some major orders achieved by certain companies in the month of February. Most of the following companies have their own equal or a higher, national or international competitor exists. They also have to undergone through a complicated or haggled bidding process to achieve the same. These orders have more significance in the wake of worsening and widening recession news. Analyzing the order books of a company is very much important for an investor as bagging good orders is also considered as steps to growth of a company.


Bharat Earth Movers Limited(BEML) has bagged the largest order in its history for supplying 150 coaches valued at around Rs 1672.50 crore from the Bangalore Metro Rail Corporation Ltd. This is the single ever largest order from a single tender to the company. The company also likely to get an additional order worth of 600 crore to make 63 metro coaches for further expansion of proposed metro lines in Bangalore City.

The company is in possession of yet another prestigious order worth about Rs 1,365 crore for supply of metro rail coaches to Delhi Metro Rail Corporation (DMRC) for its third phase of project. The Indian Railways also planning to replace about 3,000 coaches in Chennai, Mumbai and Kolkata and this would be a big order for BEML in future.


The technology driven education firm attained an order worth 120 Crores from the State Governments of UP & Assam. The contract with the UP Govt includes to supply computer hardware, software and connected accessories and provide computer aided education in the specified government aided high schools from classes VI to XII for a contract period of 5 years. Educomp has also received another order from Axom Sarba Siksha Abhijan, (SSA) Mission, Assam for imparting training in 641 Schools. With these orders the total number of schools under ICT(Instructional and Computing Technologies) implementation in the Educomp portfolio has gone up to 12012.

Educomp has partnered with thirteen (13) State Governments namely Government of Assam, Karnataka, Orissa, Tripura, Gujarat, Uttar Pradesh, West Bengal, Delhi, Haryana, Jharkhand, Rajasthan, Chhattisgarh and Andhra Pradesh, covering more than 9900 Government schools and benefiting three million students studying in Government schools in India.


Moser Baer Photovoltaic, a subsidiary of Moser Baer India has won a contract from the Roads and Buildings department of Gujarat to set up roof-top solar photovoltaic installations. The solar photovoltaic system with 135-kilowatt-peak installed capacity will run a 40-kilowatt load for 10 hours each day and charge a battery bank of 6,000 ampere hours. The completed system will be commissioned by April this year. This project is in line with the Gujarat government's focus on clean and renewable energy in the state. It is expected that a big flow of such orders from various public and private sector companies in near future. Accumulate this scrip on every fall.


Ashok Leyland (Hinduja Group) has bagged an order worth USD 43.5mn from the Angolan government for 1,000 buses. The order has been bagged from the Ministry of Transport of Angola. The buses have been specifically developed with a strengthened chassis to meet Angola's transport requirements and a goods compartment has been added to each of the 30-seater vehicles for the use of rural population.


Gayatri Projects Limited, the construction and Infrastructure Company from Hyderabad has achieved two orders worth Rs 2,132 crore from the AP Government for construction-related works. The first order is from Dummugudem Project Circle, valued at Rs 1,360.26 crore for constructing 182km-206 km Dummugudem-Nagarjuna Sagar Project Tail pond link canal and the second order valued at Rs 771.36 crore for Dummugudem-Nagarjuna Sagar Project Tail pond link canal from 206 km to 244 km. The company formed a joint venture with Ratna Infrastructure 'Gayatri-Ratna Joint Venture' to execute this project. Gayatri holds 80% in the project, while Ratna’s share is 20%. The projects have to be executed within a period of 54 months.


Elecon Engineering has bagged an order worth Rs. 185 million from Techpro Systems for designing, engineering, manufacturing, testing, supplying, erection and commissioning of material handling and other equipments. The scope of work includes supply of one stacker reclaimer and other equipments for coal handling system of 1,050 MW coal fired thermal power project at Maithon Power.


Era Infra Engineering has achieved a contract from Bharat Heavy Electricals (BHEL) valued at Rs 670.56 million for construction of civil and architectural work in main plant, power house and auxiliary plant building for unit-2 of 1 X 500 MW TPS Stage II at Kudathini Village, Bellary, Karnataka. Era Infra Engineering had in 5 February 2009 secured a contract worth Rs 222.98 crore from NTPC for one its power projects.

Era Infra Engineering builds industrial complexes, residential buildings, multiplexes, super malls, power projects and airports. The company is diversifying its revenue stream by entering into new segments such as irrigation and build operate and transfer (BOT) projects.


Ion Exchange, a leading player in the domestic water solutions and purifiers market bagged an order worth Rs 126 crore from NTPC Tamil Nadu Energy Company, a joint venture between NTPC and Tamil Nadu Electricity Board. The order is from NTPC Tamil Nadu Energy Co Ltd for setting up a sea water reverse osmosis plant near Chennai. ION is one of the few in the water business, an area that has fascinated by well-known global investors including Jim Rogers. In a recent visit to India, he said, "Even if America falls off the earth, India's water problem will not go away. If you are in the water business in India, you will make a huge fortune.” Keep this company in close watch.


Bartronics India Ltd has bagged an order of providing 48,000 RFID (Radio-Frequency Identification ) tags to Housing Development Board of Singapore. The exact worth of the order not yet disclosed, but the Government of Singapore had allocated about $212 million to the Housing Development Board in the form of operating grants.

Bartronics India has also obtained a prestigious `AapKe Dwar` project from the Municipal Corporation of Delhi and expects minimum revenue of Rs 50 billion from the project over the period of nine years. The project, which is based on build-operate-transfer model, envisages setting up and running 2000 G2C kiosks in Delhi for a period of nine years. Bartronics offers automatic identification and data capture (AIDC) technologies, radio-frequency identification (RFID), smart cards and point of sale (POS) solutions.


Essar Offshore Subsea, a division of Essar Projects, an engineering procurement and construction company headquartered in Dubai has bagged a Rs 1,000 crore order from ONGC. Essar would modify, refurbish platforms of ONGC and install new equipment and facilities in the process complexes of Neelam and Heera at the Western offshore fields of India.


Areva T&D India has bagged an order from Lanco Infratech for 765kV substation. The project will connect the Anpara `C` 1200 MW (2X600MW) thermal power plant being developed by Lanco Infratech at Anpara in UP to the Northern Grid. The project is expected to fully commissioned by April 2010.


Subhash Projects has achieved an order worth Rs 585.98 Crores for Pranahitha - Chevella Lift Irrigation Scheme for the work of package 15 from the Irrigation & CAD Department, Government of Andhra Pradesh. The project will be executed in a joint venture with SEW Infrastructure Limited and AMR Construction for an amount of Rs 585.98 Crores. Subash Projects will share 80% of the Joint venture.


Tata Teleservices (TTSL) signed an MoU (Memorandum of Understanding) with Hirco Developments for their integrated township spread over 369 acres and for the proposed SEZ in Chennai. Tata Tele Service to provide the complete telecom solutions to the occupants and residents of Hirco's projects including a fibre optic network, voice and data services, Wi-Fi hotspots, broadband services and wireless services.


The company has bagged three orders aggregating to Rs 365 crore from three different suppliers for rural electrification and transmission projects. Orders bagged from the West Bengal State Electricity Distribution Company Ltd (WBSEDCL) covering electrification in 3340 Villages, including providing Below Poverty Line service connections and new substations. The another Order awarded by Power Grid Corporation of India Ltd. (PGCIL) in Bihar, covering electrification in 16 blocks including providing Below Poverty Line service connections, new substations and augmentation of existing substations. The projects are scheduled to be completed by July 2010. The company’s order inflow for the quarter was around Rs 1100 crore.


Siemens' Industrial Solutions has achieved a turnkey order worth Rs. 2116 million (212 crore) from Steel Authority of India Ltd (SAIL) for Rourkela Steel Plant (RSP). Siemens will provide an extra high voltage (EHV) power distribution package to the Rourkela Steel Plant for augmentation of their existing main Step Down Substations (MSDs) and installation of new MSDs. This power augmentation program will enable Rourkela Steel Plant to enhance its production capacity from 1.9 million tonnes to 4.5 million tonnes.


Reliance Globalcom, the international limb of Reliance Communications, has achieved a multi-year contract from British optical retailer Specsavers for its enterprise solution. Reliance Globalcom will supply its enterprise solution for connecting 1,150 worldwide retail outlets of the company. The deal covers 10 countries across Europe, Australia and New Zealand. The financial details of the deal is not been disclosed. In February itself the company bagged multi-year contracts from three global retailers - French sports goods retailer Oxylane Group, kid’s clothing chain Orchestra (also French) and Italian coffee brand Illy CafĂ©, - for its enterprise solution.


Omaxe, leading real estate developers has achieved a contract from Punjab Infrastructure Development Board (PIBD) and Punjab PWD(B & R Department) for the Construction of Modern Jail at Kapurthala & Faridkot. These projects are to be constructed over an area of 70 acres each with at total estimated cost of Rs 210 crores. These projects are expected to be completed within 18 months. Each project will have facilities like a 50-bedded hospital, administrative block, training centre cum canteen and library blocks, central watch tower, dispensary, flour mill and workshops.


Supreme Infrastructure has bagged orders worth Rs 249.84 crore, which include construction of roads, bridges, flyovers and commercial buildings in Maharashtra and Rajasthan. The orders are scheduled for completion in 24 months. Among the major orders is the construction of South Kaseli and North Kaseli Bridge on the Thane-Bhiwandi-Wadpa road in Thane district.

Supreme Infrastructure, in association with Petron Engineering, has also won the order for construction of a flyover at Transport Nagar Choraha (Jaipur) under the Jaipur Development Authority. The total cost of this project is Rs 64.98 crore. The company has also bagged three commercial building projects from Kamla Landmark Group. The three commercial buildings would be in Santacruz, Andheri (East) and Goregaon (East) at a cost of Rs 24.20 crore With these orders, the company’s order book goes up to Rs 698.54 crore.


TRF signed a contract with the Andhra Pradesh Power Generation Corporation (APPGC) worth Rs 997.48 million for setting up the coal handing plant for its Rayalaseema Thermal Power Project, stage-III, unit - 5 (1 X 210 MW). The company manufactures bulk material handling and processing equipment, bulk material handling systems, coke oven equipments, coal dust injection systems for blast furnaces, coal beneficiation systems, and port and yard equipment. EPC and EPCM services are also provided.


Iflex Solutions Ltd, a leading provider of technology solutions to the global banking and financial services industry, will provide banking software solutions to Europe’s Volkswagen Bank for the Netherlands region. Iflex solutions would also allow the Volkswagen Bank to deliver web-based services to its dealers and customers with the new software. “Daybreak Lending Suite (the software solution) has been extremely successful and widely accepted in Europe, Middle East and Africa region.


The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.

Total Pageviews