MATRIX LABORATORIES

Highlights :


1. Dividend Paying, High Operating Profits

2. Many recent overseas acquisitions

3. Entering into new high profit and niche areas of pharma with backward integration with inventors and research companies, also entering into forward integration for higher sales in Europe.

4. All production facilities are already approved by the USFDA and leading International and European Pharma Regulatory Authorities.

5. Filed more than 80 DMF's in the US and Europe and have also filed more than 35 innovative patents.

6. Matrix successfully developed non infringing process for Citalopram and so far generated revenues of US 3 Million with average gross margins of more than 75%.

7. Best operating margins in the industry. Matrix has more than 200 scientists working on Research and Developments of New Molecules and Products.

8. Contract Manufacturing for large foreign Pharma Majors.

9. Matrix Labs has sales and marketing offices in many countries. Prism Cement

10. Stock having holding by Temasek (Singapore Government’s Investment wing)

HOT NEWS :28TH Sept 2005

HANIL ERA TEXTILES:Dual business & Export Orders


Hanil Era Textiles secures export order worth Rs 300 mn Source: IRIS (27 September 2005)

Hanil Era Textiles Ltd has announced that the Company has bagged a large export order worth Rs 300 million. The huge export order has come to the company from existing clients and its existing capacity can easily take care of this order. The company has three months to deliver this order, i.e. the order has to be completed by the end of Q3 (December 2005). The company is expecting more such orders in the future.

R K Agarwal, Chairman, Hanil Era Textiles, says, We have received a Rs 30 crore order and now we have a total order book position of about Rs 65 crores. This order will take up 80% of our production over the next five months.

The Company has a capacity to produce 1200-1250 tonnes of yarn per month. It has recently completed its modernization programme for spindles, and has partially commenced weaving capacity with 36 looms. This marks its entry into the lucrative market for home furnishings.


Highlights :

1.Company is largest producer of Ethanol in the country ,apart from its Textiles Business.

2.Govt approval of mixing Ethanol to Petrol makes positives for this company

3.Diwali to bring in good demand for textiles in Domestic markets ,apart from its export orders.

PRISM CEMENT

Prism Cement

Highlights

1. Best recent turn around story in the cement industry.
2. Financials : From continues losses to roaring profits.

Sales in (2005: Rs.5295, Net Profit: Rs.258)in millions
Sales in (2004: Rs. 4638, N.P.: Rs.-59) millions
Sales in (2003: Rs. 3962, N.P:Rs. -312)millions

3. Prism Cement has one of the most efficient productive and the latest technologically advanced cement manufacturing facility.

4. Promoters background:

Promoted by the Rajan Raheja Group. a large Construction group based in Mumbai. Besides construction, the group has interests in Ceramic Tiles, Automotive Batteries, Cement, Hotels, Petrochemicals, Mutual Funds, Media, Retailing & Software.

The Group controls H&R Johnson ((India) Ltd.., a leading manufacturer of Ceramic Tiles, Exide Industries Ltd.., India’s largest player in Automotive & Industrial Battery segment, and Prism Cement Ltd.The group is the co-promoter of Supreme Petrochemicals Ltd., Sonata Software Ltd., RMC Ready-mix (India) Ltd., along with RMC Group, UK, world’s largest manufacturer of Ready--Mix concrete and holds a 25% stake in Templeton Mutual Fund.

5. Captive power plant which provides all its power requirement which is 50% cheaper than the government power.

6. First time that prices have not fallen in the monsoon but has gone up because of heavy demand for cement. Post monsoon prices to go up after monsoon atleast by 5% due to strong Demand and rapid growth of the Infrastructure Industry.

7. Potential takeover candidate.

8. Heavy volumes traded and accumulated in large quantities (strong delivery %) during the last 1 week .

BALRAMPUR CHINI MILLS

BALRAMPUR CHINI MILLS :Buy with Stoploss of Rs 82.

Highlights:

1.Approaching Sugar Season -October -December
2.Huge Sugar Demand due to Diwali ,in an already deficit market
3.First stage expansion of 7000 TCD to commence production in Nov 2005
4.Second stage expansion of 7000 TCD to commence production in Jan 2006
5.Ethanol (Byproduct) mixing in Petrol approved by Govt.Of India
6.Pakistan opens door for Imports to India
7.Govt policies in favour of Sugar Industry-BCML to get subsidy of Rs 1.5 /kg
8.Undervalued Scrip,High Liquidity
9.Good Monsoons resulting in Good Crop
10.Unaffected by Floods as company is in North India


Company background :

BCML is one of the largest sugar manufacturing companies in India, having four sugar mills located in eastern Uttar Pradesh with an aggregate capacity of 29,000TCD. The unit-wise capacities are: Balrampur 11,000TCD, Babhnan 8,000TCD, Tulsipur 6,000TCD and Haidergarh 4,000TCD. BCML was among the sugar companies that led the drive to transform the face of the domestic sugar industry from the one that just produced sugar to the one that has integrated sugar complexes. It was also one of the initial players in the business to set up integrated sugar complexes with distillery and cogeneration plants. BCML has the capacity to produce 100KLPD of alcohol and 39.55MW of power using bagasse as fuel.

With its integrated complexes Balrampur Chini Mills Ltd (BCML) is one of the largest producers of sugar and alcohol in the country.

BCML is expanding the capacity for all its products, ie sugar, alcohol and power.

The company is looking at expanding its cane crushing capacity by 14,000 tonne crushed per day (TCD), alcohol capacity by 60 kilolitre per day (KLPD) and power capacity by 34 megawatt (MW).

EXPANSION :

BCML has undertaken an expansion plan to increase its existing capacity by 60% over the next two years. The company is putting up two greenfield plants, at Akbarpur and Mankapur, with a capacity of 7,000TCD each. Additionally the company has also planned two

brownfield expansion projects of 4,000TCD capacity via de-bottlenecking at its existing plants.
BCML will also expand the capacity for the co-products with a 60KLPD distillery at Mankapur and power plants with capacities of 11MW and 23MW at Akbarpur and Mankapur respectively.
The contribution of by-products like alcohol and power to the total revenues is the highest for BCML in the industry, so much so that nearly 25% of its total revenue comes from these businesses. Looking at the high margins that businesses such as that of cogeneration power command, the management is expecting the by-products to contribute 50% to the company's profit before interest and tax. The high contribution by these businesses to the company's profit provides stability to the earnings, as even in the year of a bad monsoon BCML can buy molasses and bagasse from nearby stand-alone mills and run its distillery and power plants.

Company Info Complied from various reliable sources

Common Investment Mistakes

Common Investing Mistakes

Some commonly observed investment /trading mistakes are listed below….These are considering the mindset of an average or small investor and how he reacts /make investment decisions,especially in a falling market .

1.Do not just accumulate the SAME scrip to cover loss in THAT scrip:

Eg:Consider that you bought XYZ at Rs 420 and after that the scrip is now trading at 330 levels .The market falls and the scrips goes to 280 .It makes sense to buy a little more of the Scrip at lower levels to minimize losses tomorrow.But it does not make sense to just keep averaging again and again ..upto infinity .

Alternatively you may invest a certain good percentage of your cash in another fundamentally strong scrip ,to increase the chances of maximizing your profits.

It is not necessary that you park all your money in the same scrip to cover the losses in that scrip.


2.Do no buy at all levels just because you have eyed it :

Consider that you had identified a scrip and you know that will rally soon …..But did not buy .Suddenly the scrip has rallied and you don’t know what to do .Common mistake is to buy a Higher levels ,when everybody exits and you end up in losses.

Markets are always there and corrections are always there .Fundamentally strong scrips sustain whereas the others get battered ….


3.Ask this question about your scrips :

Always ask this question to yourself before investing :

IMPORTANT :Industry Analysis,Positives & Negatives,Government Policies

a.Have you done a research on this scrip by visting various sites ,gathering company information ,analyzing the performance in last three quarters /years ??

b.Is the promoters holding (Share holding) good or just meager ??

c.Is the Promoter’s experienced in that Industry ??

d.Is the daily liquidity good (Good Volume) ???

e.Is the price reasonable compared to its peers /competitors in the industry ??

f.Does your company manufacture a sustainable commodity ??
g.Is the deamd going to increase in the coming years ??

If the answers are YES, go ahead with your investments ……..It is bound to give you Good Rewards .


4.It’s all about having PATIENCE

One of my main experience with the market is that YOU NEVER GET MONEY WHEN U WANT IT ……..

Many times you will end up in situations such as –ENDING UP IN HUGE LOSSES ,if you want to TAKE OUT CASH from the market at that time ……

Park only your SPARE MONEY for investment .Don’t think that after 1 month ,it will increase so much and I will make so much profits .


5.PROFIT BOOKING :

Advised as soon as you make reasonale profits of 20 % plus .Dont see the Profit margin ,but always see your PROFIT as a PERCENTAGE of your INVESTMENT .


6.KEEP STOPLOSSES :

50 day Average price may be kept as a good stoploss for medium to long term investment ..This may be kept as a strong Support ….Your losses will be greatly minimized by following stoplosses.

Best Regards
Ajith Kumar
pepcons@gmail.com