Dated 30 May 2009

INSIDE NEWS :

* TCS has approached Vakrangee Software to work as a build partner for the Passport Seva Kendra (PSK) project at 6 sites. Catch it if you can.

* Hindustan Sanitaryware Ltd. has reported terrific results with an OPM of over 20% for the quarter. Its greenfield plant for Container Glass at Bhongir, Andhra Pradesh, has started commercial operations. Sell now to buy later.

* Samtex Fashions’ consolidated EPS is over Rs.9.5 but the stock trades at just Rs.15 level. The real earning, however, is from the subsidiary involved in rice production.

* Karuturi Global is attracting great volumes. But its results are based on the earnings of its subsidiaries abroad. Exercise caution as the stock is of Re.1 face value.

* Sturdy Industries, dealing in asbestos sheets, aluminum conductors & panels, is also into drip irrigation. The company has posted decent performance and may be a dark horse in the future.

* Chowgule Steamship at Rs.40 level is a value buy. It has reported a consolidated EPS of Rs.32 and diluted EPS of around Rs.7. With a consistent dividend record, the stock can be accumulated at current levels for steady appreciation.

* Tata Communications’ net profit of Rs.316 cr. is inclusive of an extraordinary ‘other income’ of Rs.286 cr. All this on a revenue of Rs.9963 cr. looks very very meagre. Sell on every rise.

* Reliance Communication is demerging its optic fibre division to Reliance Infratel. Does that mean a IPO or QIP is on the cards for the subsidiary?

* Tech Mahindra and Subex are already providing niche services to MTN of South Africa. Will the MTN – Bharti marriage open new vistas for these two software providers? Just see how both these scrips are moving.

* KLG Systel, Geodesic and Tanla Solutions are three scrips on the verge of a blow off on the upside.

* The shares of Parekh Aluminex are being cornered by persons close to the management as it is likely to post an EPS of about Rs.24 in FY09 and Rs.38 in FY10 backed by expansion. The share is heading towards the double century mark.

* VST Tillers Tractors is attracting shrewd buying as rumour has it that the company may post an EPS of Rs.45 and surprise the market with 1:1 bonus.

* Tulsyan NEC is an excellent buy in the low-priced category as it is likely to fare better in view of the government’s increased spending on infrastructure.

* Deepak Fertilzers has completed the Rs.105 cr. expansion for Diluted Nitric Acid. Another Rs.650 cr. expansion is likely to be completed by November 2010. With a likely EPS of Rs.20/22 for FY10, the share is a good long-term buy.

* The shares of AIA Engineering are being cornered as it is likely to announce excellent results for FY09 and may even announce further expansion/diversification plans leading to growth.

* With a likely EPS of Rs.28/30 in FY10 the shares of Uflex Engineering can be bought for decent appreciation in the medium-term.

* With the installation of a 7 layer machine, Glory Polyfilms has completed the first phase of expansion, which will boost its prospects.

* A big bull has started recommending Ennore Coke and Premier Explosives to his clients.

* Some important developments in Northgate Technologies will take the stock to hit upper circuits.