Bhagwati Banquets and Hotels Limited (Group: B1, Scrip Code: 532845):
The Grand Bhagwati is situated in the outskirts of Ahmedabad. It has 35 guest rooms and 2 grand suite rooms. It also has a conference hall with an open area of over 7,000 square foot suited for special events like exhibitions, fashion shows, product launch, premieres etc. besides large wedding & reception parties. In April 2007 the company came out with an IPO to raise funds for its proposed hotel project near Surat. The company declared a net profit of Rs.1.55 crores for the quarter ended June 2007.
The stock’s IPO issue price was 40. There was a mixed reaction to this IPO from the media that the valuations are stiff.
In the daily chart shown below, it can be seen that on the day of listing it made a high of 57.35 and closed at 49.05. The stock was on a downtrend and touched a low of 25.60 on August 6. On September 6 it had broken its previous resistance at 39.60 and closed above it; it continues to trade above it. The stock is likely to test its previous high of 57.35 in short term.
BOC India Limited (Group: B1, Scrip Code: 523457):
This company specializes in industrial gases production. It was established in 1935 as Indian Oxygen and Acetylene company and currently it is a subsidiary of BOC group, which is a pioneer in air separation technology. BOC India produces industrial gases such as oxygen, nitrogen, acetylene, hydrogen, carbon dioxide and special purpose gases that are used in medical/industrial applications. The company’s net profits were worth Rs.44.6 crores in 2006 – 07.
The stock has been hit badly in the last one year. It made a high of 242.90 on May 9, 2006. On April 3, 2007, it registered a low of 122. This support has not yet been broken, though the stock came down to 122.05 recently. After about 4 months consolidation pattern, it had broken its resistance at 149.90 and closed above it. The stock is expected to target 198 in short term.
De Nora India Limited (Group: B1, Scrip Code: 590031):
The company was formerly known as Titanor Components Limited. The Italian group De Nora has 51% stake in this company. De Nora group has developed membrane cell technology for the chlor alkali industry. Denora India supplies cathodic protection systems, ion exchange membrane cell components, electrochlorination systems etc. The company’s net profit for the quarter ended June 2007 was Rs.1.23 crores.
Like BOC, this stock too had lost severely in the last one year. It fell from a high of 379 in May 2006 to a low of 80.05 in March 2007. It registered a higher low of 93 on July 30. On September 13, it broke its previous high at 122 and closed above it with very good volumes . There is a possible downside risk of 10 rupees for this stock. However, it is likely to test 164 in the short term.
FDC Limited (Group: A, Scrip Code: 531599):
FDC Limited (formerly Fair Deal Corporation) is a leading pharmaceutical company in India with more than 70 years of operation.
FDC manufactures formulations as well as active pharmaceutical ingredients. Formulations include antibiotics, antivirals, antifungals, oral rehydration salts, cardiovascular drugs, opthalmics etc. FDC exports its products to over 50 countries, including advanced markets such as the United States, United Kingdom and Japan. The company declared a net profit of Rs.65.6 crores for the financial year 2006 – 07.
This stock had made a high of 66 in December 2004. It fell to a low of 27.05 on August 22, 2007. On September 14, it broke the previous high of 31.80 made on September 4 and closed above it with very good volumes. This is the first bullish breakout for the stock after a long time. The stock is expected to test its resistance at 36.80 in the short term. It has entered the third wave in daily chart; but it is still in the first wave in weekly chart. A correction after achieving the target of 36.80 cannot be ruled out.
TVS Motor Company Limited (Group: A, Scrip Code: 532343):
TVS Motor Company is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. TVS first rolled out the TVS 50 moped in 1980 and later TVS Suzuki motorcycle. It reported total two wheeler sales of 102,734 units in August 2007 compared to 135,533 units in August 2006. The company’s net profit for the year 2006 – 07 was Rs.77.75 crores.
Like BOC and FDC, this too was a casualty since last year. Its high was 186.50 on April 5, 2006. From this, it had fallen to a low of 51 on April 3, 2007 (a loss of 72% in one year).
Over the last 5 months, the support at 51 has not been broken. On September 10 the stock had broken its resistance at 72 and closed above it with reasonably good volumes. The short term target for the stock works out to 90.