Celebrity Fashions Limited:
This is a Chennai based garment exporter company. It has the capability to manufacture the largest number of trousers in the country. The company also has its own national premier menswear brand, Indian Terrain. The clientele include Timberland, Marlboro Classics, Vans, Dockers San Franisco, The North Face, etc. Their design studio at Madras Export Processing Zone (MEPZ) has computer aided design and development for prints and plaids, trend analysis and lifestyle presentation.
It recorded a net profit of Rs.9.41 crores in 2005 – 06; during 2006 – 07 it has reported a net loss of Rs.5.50 crores. EPS too has fallen from 7.19 to -3.09.
The company is being traded since January 2006. The issue price was Rs.180.
On the day of listing, 12 January 2006, it opened at 236.30 and touched a high of 269.90. It kept falling continuously and made a low of 62.10 on 13 June 2007. We have seen in my earlier article, “How do IPO’s perform in Secondary Market?” about how some of the IPO’s have done exceptionally well and some others have failed miserably.
This company has lost nearly 77% from its all time high. The daily chart of the stock is shown below:
The stock has made higher highs and higher lows according to Elliot Wave Theory recently. Though failed in first attempt, it has successfully broken its resistances at 72.70 and 76.75 yesterday. It has even managed to pierce its next resistance at 79.80 though not being able to close above it. Now we may conclude that the stock has bottomed out. This can be confirmed by the money flow index making new highs. 61.8% retracement from the low of 62.10 works out to 96.65.
Gallantt Metal Limited:
The company’s integrated steel plant is located at Kutch, Gujarat. It has the capacity to manufacture nearly 100,000 metric tonnes of sponge iron, 176,420 MT of mild steel billets and 168,300 MT of thermomechanically treated (TMT) bars. It cas a captive power plant too, 18 MW capacity from waste heat and lignite. The company made a loss of 0.976 crores in 2005 – 06 whereas it has made profits of Rs.3.96 crores in 2006 – 07 with a very low EPS of 0.52.
Watch the “cup and handle breakout” in the chart. It is a bullish continuation pattern. We have discussed this pattern in our articles “Buy These India Stocks and Hold for 6 Months” , “These 5 India Stocks Set to Move Up in the Short Term” and also in “5 India Stocks You Need to Own Now”. It can be observed that the pattern has taken about 7 months to complete. The next target for the stock is 17.95.
India Glycols Limited:
This is the only company in the world to produce ethylene oxide / mono ethylene glycol from molasses, a by product of sugar industry. Reliance Industries Limited has MEG plants at Hazira but ethylene is derived from naphtha cracker plant.
India Glycols Limited also produces ethoxylates, performance chemicals, glycol ethers / acetates, guar gum and potable alcohol. It is the largest ethoxylate, glycol ether producer and thus leader in ethylene oxide derivatives / surfactant business in India. It caters to more than 1,000 customers in various end use industries such as textile, agrochemical, oil & gas, personal care, pharmaceuticals, brake fluids, detergent, emulsion polymerisation & paints etc.
It reported a net profit of Rs.41.02 crores in 2006 – 07 at an EPS of 14.72.
The stock had retraced from a low of 99.65 on 28 March 2007 to a high of 153 on 15 May. It has now consolidated for 2 months as can be seen in the chart. On 13 July it had broken out its resistance with volumes. This confirms the bullish breakout. The technical targets for the stock are 202 and 215 once it closes above 172.50 where there is minor resistance (it has been broken on high price basis though.)
Karnataka Bank Limited:
Karnataka Bank Limited is a leading 'A' class scheduled commercial bank in India. It was incorporated on 18 February, 1924 at Mangalore. Over the years the bank grew with the merger of Sringeri Sharada Bank Limited, Chitladurg Bank Limited and Bank of Karnataka.
It has a national presence with a network of 411 branches spread across 19 states and 2 Union Territories. There are about 2.6 million customers for this bank.
Karnataka Bank Limited had declared a net profit of Rs.177.03 crores for the financial year 2006 – 07 at an EPS of 14.6.
Both weekly and daily charts have been shown above. The weekly chart clearly indicates the bullishness for medium term. Watch the bollinger bands contracting towards each other as prices open up. It has broken its resistance in daily chart on 17 July 2007. Short term target works out to 223 and medium term target around 261.
Usha Martin Limited:
This company manufactures steel wires and ropes (at Ranchi), alloys and steels (Jamshedpur), machinery for wire drawing (Bangalore), pre-stressing equipment & accessories (Ranchi) and underground telecommunication cables (subsidiary company Usha Martin Cables near Ranchi). It reported a net profit of Rs.137.45 for the financial year 2006 – 07 at an EPS of 30.32.
Both weekly and daily charts are shown above. We can see the consolidation pattern of about 2 months in daily chart followed by the resistance breakout with volumes. The stock is bullish in weekly as well as monthly charts. The short term target for the stock works out to 340.