JAYASAWALS NECO LTD. - 12th August 2007.Subscribe to TSR Scribd group

8/14/2019 JAYASAWALS NECO LTD. - 12th August 2007.Subscribe to TSR Scribd group

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www.nift iews.com

TEAM STOCKRESEARCHERSHidden values research team.

-vinayak

INVESTMENT RATIONALES:

1. The company has come out with extra1. The company has come out with extra1. The company has come out with extra1. The company has come out with extraordinary q1 results withordinary q1 results withordinary q1 results withordinary q1 results with

operating profits of 45 cr vs. 31 cr yoy based onoperating profits of 45 cr vs. 31 cr yoy based onoperating profits of 45 cr vs. 31 cr yoy based onoperating profits of 45 cr vs. 31 cr yoy based on

the exchange rate gain ofthe exchange rate gain ofthe exchange rate gain ofthe exchange rate gain of

13 crore.we believe that the exchange fluctuation13 crore.we believe that the exchange fluctuation13 crore.we believe that the exchange fluctuation13 crore.we believe that the exchange fluctuation

gain of 13 cr isgain of 13 cr isgain of 13 cr isgain of 13 cr is

sustainable in coming quarters also as thesustainable in coming quarters also as thesustainable in coming quarters also as thesustainable in coming quarters also as the

company imports coal and cokecompany imports coal and cokecompany imports coal and cokecompany imports coal and coke

from chfrom chfrom chfrom china.ina.ina.ina.

2. The stock trades at a very low EFY08 PE OF2. The stock trades at a very low EFY08 PE OF2. The stock trades at a very low EFY08 PE OF2. The stock trades at a very low EFY08 PE OF

2.8 and is a strong2.8 and is a strong2.8 and is a strong2.8 and is a strong

candidate of recandidate of recandidate of recandidate of re----rating.rating.rating.rating.

3. There are unconfirmed reports that the3. There are unconfirmed reports that the3. There are unconfirmed reports that the3. There are unconfirmed reports that the

company has land bank incompany has land bank incompany has land bank incompany has land bank in

nagpur and any proposalnagpur and any proposalnagpur and any proposalnagpur and any proposal of shifting of itsof shifting of itsof shifting of itsof shifting of its

manufacturing plant will triggermanufacturing plant will triggermanufacturing plant will triggermanufacturing plant will trigger

tttthe stock for upper circuits.he stock for upper circuits.he stock for upper circuits.he stock for upper circuits.

4. The company till FY06 was making net loss.4. The company till FY06 was making net loss.4. The company till FY06 was making net loss.4. The company till FY06 was making net loss.

The scheme of arrangementThe scheme of arrangementThe scheme of arrangementThe scheme of arrangement

with financial institutions involved dilution ofwith financial institutions involved dilution ofwith financial institutions involved dilution ofwith financial institutions involved dilution of

equity and at every higherequity and at every higherequity and at every higherequity and at every higher

price level the financial institutions namely idbi ifciprice level the financial institutions namely idbi ifciprice level the financial institutions namely idbi ifciprice level the financial institutions namely idbi ifci

and icici offloand icici offloand icici offloand icici offloadadadad

their stake in the market.their stake in the market.their stake in the market.their stake in the market.

.

PREMIUM CLIENTS

LONG TERM BUY IDEA:

-JAYASAWALS NECO

Last Price

Change

BSE 10-Aug 17.85 0.00%

NSE 10-Aug 17.85 1.38%

TARGET PRICE 12MONTHS 25,31

Market Cap 201.49 Cr

NSE CODE NAGPURENG

BSE CODE 522285

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here.

TEAMSTOCKRESEARCH

ERSPvt. Ltd.3 SUBHASHNAGARCORNER,RAIYA ROAD,RAJKOT, Gujarat, 360007www.niftyviews.comCONTACT:09327744250CST NUMBER:

AADCT0544JST001

DATE: 12th August 2007


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photo, or otherimage here.

5. As the institutions where given5. As the institutions where given5. As the institutions where given5. As the institutions where given

the stake at par value, it isthe stake at par value, it isthe stake at par value, it isthe stake at par value, it is

understood that the financialunderstood that the financialunderstood that the financialunderstood that the financial

institutions will book profits ininstitutions will book profits ininstitutions will book profits ininstitutions will book profits in

coming dayscoming dayscoming dayscoming days

also.also.also.also.

6. The company is basically6. The company is basically6. The company is basically6. The company is basically

unknown but is a FY08E 1700 CRunknown but is a FY08E 1700 CRunknown but is a FY08E 1700 CRunknown but is a FY08E 1700 CR

TURNOVTURNOVTURNOVTURNOVERERERER

AND FY08E 180 Cr operating profitAND FY08E 180 Cr operating profitAND FY08E 180 Cr operating profitAND FY08E 180 Cr operating profit

making company. we believe the netmaking company. we believe the netmaking company. we believe the netmaking company. we believe the netprofits for FY08E to be 68profits for FY08E to be 68profits for FY08E to be 68profits for FY08E to be 68

crore.which will give eps above rs 6crore.which will give eps above rs 6crore.which will give eps above rs 6crore.which will give eps above rs 6

perperperper

share. The cash eps is around 12.share. The cash eps is around 12.share. The cash eps is around 12.share. The cash eps is around 12.

EXCLUSIVE:

THE COMPANY HOLDS 12.76%

STAKE IN JAS TOLL ROAD

COMPANY LIMITED.

AS Toll RoadAS Toll RoadAS Toll RoadAS Toll Road

Company Limited isCompany Limited isCompany Limited isCompany Limited is an SPVan SPVan SPVan SPV

promoted by M/s Jayaswals grouppromoted by M/s Jayaswals grouppromoted by M/s Jayaswals grouppromoted by M/s Jayaswals group

and SREIand SREIand SREIand SREI

International Finance Limited forInternational Finance Limited forInternational Finance Limited forInternational Finance Limited forrehabilitation and widening of therehabilitation and widening of therehabilitation and widening of therehabilitation and widening of the

NeelamangalaNeelamangalaNeelamangalaNeelamangala Tumkur section ofTumkur section ofTumkur section ofTumkur section of

NHNHNHNH 4, to a 44, to a 44, to a 44, to a 4----lane corridor withlane corridor withlane corridor withlane corridor with

provisionprovisionprovisionprovision

to be made for further widening toto be made for further widening toto be made for further widening toto be made for further widening to

6666----lanes. The project islanes. The project islanes. The project islanes. The project is part of thepart of thepart of thepart of the

Golden Quadrilateral projectGolden Quadrilateral projectGolden Quadrilateral projectGolden Quadrilateral project

initiative of NHAI The project costinitiative of NHAI The project costinitiative of NHAI The project costinitiative of NHAI The project cost

at Rs 2217at Rs 2217at Rs 2217at Rs 2217

mn has been financed by equity ofmn has been financed by equity ofmn has been financed by equity ofmn has been financed by equity ofRs 759 mn from the promoters,Rs 759 mn from the promoters,Rs 759 mn from the promoters,Rs 759 mn from the promoters,

rupee termrupee termrupee termrupee term

loans aggregating Rs 1250 mn, andloans aggregating Rs 1250 mn, andloans aggregating Rs 1250 mn, andloans aggregating Rs 1250 mn, and

an NHAI grant of Rs 208 mn. Thean NHAI grant of Rs 208 mn. Thean NHAI grant of Rs 208 mn. Thean NHAI grant of Rs 208 mn. The

projectprojectprojectproject

was commissionewas commissionewas commissionewas commissioned in April 2004d in April 2004d in April 2004d in April 2004


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WE HAVE VALUED JNLWE HAVE VALUED JNLWE HAVE VALUED JNLWE HAVE VALUED JNL

STAKE IN THIS VENTURE ATSTAKE IN THIS VENTURE ATSTAKE IN THIS VENTURE ATSTAKE IN THIS VENTURE AT

33 CR WHICH WILL GIVE AN33 CR WHICH WILL GIVE AN33 CR WHICH WILL GIVE AN33 CR WHICH WILL GIVE AN

EXTRA VALUE PER SHAREEXTRA VALUE PER SHAREEXTRA VALUE PER SHAREEXTRA VALUE PER SHARE

OF RS 3 PER SHARE ABOVEOF RS 3 PER SHARE ABOVEOF RS 3 PER SHARE ABOVEOF RS 3 PER SHARE ABOVE

OUROUROUROURESTIMATIONS.MOREOVERESTIMATIONS.MOREOVERESTIMATIONS.MOREOVERESTIMATIONS.MOREOVER

JAS TOLL ROAD WILL BEJAS TOLL ROAD WILL BEJAS TOLL ROAD WILL BEJAS TOLL ROAD WILL BE

COMING OUT WITH AN IPOCOMING OUT WITH AN IPOCOMING OUT WITH AN IPOCOMING OUT WITH AN IPO

VERY SOON AND IT HASVERY SOON AND IT HASVERY SOON AND IT HASVERY SOON AND IT HAS

ALREADY FILED RHP WITHALREADY FILED RHP WITHALREADY FILED RHP WITHALREADY FILED RHP WITH

SEBI.SEBI.SEBI.SEBI.

CorCorCorCorporate overviewporate overviewporate overviewporate overview

Foundries are equipped withFoundries are equipped withFoundries are equipped withFoundries are equipped with

high pressure molding lineshigh pressure molding lineshigh pressure molding lineshigh pressure molding lines

having boxhaving boxhaving boxhaving box

dimensions 800x1200 mm anddimensions 800x1200 mm anddimensions 800x1200 mm anddimensions 800x1200 mm and

3000x1300 mm.3000x1300 mm.3000x1300 mm.3000x1300 mm.

The Group has not onlyThe Group has not onlyThe Group has not onlyThe Group has not only

expanded in Foundry businessexpanded in Foundry businessexpanded in Foundry businessexpanded in Foundry business

but has also diversifiedbut has also diversifiedbut has also diversifiedbut has also diversified

into a number of related andinto a number of related andinto a number of related andinto a number of related and

unrelated products:unrelated products:unrelated products:unrelated products:

WWWWith the technical collaborationith the technical collaborationith the technical collaborationith the technical collaboration

from Shougang Internationalfrom Shougang Internationalfrom Shougang Internationalfrom Shougang International

Trade andTrade andTrade andTrade and

Engineering Corporation,Engineering Corporation,Engineering Corporation,Engineering Corporation,

China, set up a Blast FurnaceChina, set up a Blast FurnaceChina, set up a Blast FurnaceChina, set up a Blast Furnace

for production offor production offor production offor production of

375,000 MT of Pig Iron per375,000 MT of Pig Iron per375,000 MT of Pig Iron per375,000 MT of Pig Iron per

annum. It is operating at moreannum. It is operating at moreannum. It is operating at moreannum. It is operating at more

than 100%than 100%than 100%than 100%

capacity.capacity.capacity.capacity.

Ferro Alloys manufacturing atFerro Alloys manufacturing atFerro Alloys manufacturing atFerro Alloys manufacturing at

DDDDurgapur, West Bengal.urgapur, West Bengal.urgapur, West Bengal.urgapur, West Bengal.

The Group companies and divisions areThe Group companies and divisions areThe Group companies and divisions areThe Group companies and divisions are

ISO 9001 accredited.ISO 9001 accredited.ISO 9001 accredited.ISO 9001 accredited.

The principal customers of theThe principal customers of theThe principal customers of theThe principal customers of the

company are Automobile sector mainlycompany are Automobile sector mainlycompany are Automobile sector mainlycompany are Automobile sector mainly

farmfarmfarmfarmtractor manufacttractor manufacttractor manufacttractor manufactures, Railways,ures, Railways,ures, Railways,ures, Railways,

Engineering industry, Public healthEngineering industry, Public healthEngineering industry, Public healthEngineering industry, Public health

engineering, refineries, Earth movingengineering, refineries, Earth movingengineering, refineries, Earth movingengineering, refineries, Earth moving

and mining equipment manufactures.and mining equipment manufactures.and mining equipment manufactures.and mining equipment manufactures.

The Business StandardThe Business StandardThe Business StandardThe Business Standard ---- the largestthe largestthe largestthe largest

selling Indian Business Magazine hasselling Indian Business Magazine hasselling Indian Business Magazine hasselling Indian Business Magazine has

ranked Neco Group as 1st in castings,ranked Neco Group as 1st in castings,ranked Neco Group as 1st in castings,ranked Neco Group as 1st in castings,

3rd in sales grow3rd in sales grow3rd in sales grow3rd in sales growth, 24th in profitth, 24th in profitth, 24th in profitth, 24th in profit

growth and 49th in cost Consciousness.growth and 49th in cost Consciousness.growth and 49th in cost Consciousness.growth and 49th in cost Consciousness.

BEST STRATEGY: ACCUMULATE ATBEST STRATEGY: ACCUMULATE ATBEST STRATEGY: ACCUMULATE ATBEST STRATEGY: ACCUMULATE AT

CMP.THE STOCK WILL SLOWLYCMP.THE STOCK WILL SLOWLYCMP.THE STOCK WILL SLOWLYCMP.THE STOCK WILL SLOWLY

MOVE ON THE HIGHERMOVE ON THE HIGHERMOVE ON THE HIGHERMOVE ON THE HIGHER

SIDE.SIDE.SIDE.SIDE.


4/5

DISCLOSURE: THE FUNDAMENTAL

ANALYSTS HOLDS A VERY SMALL

QUANTITY OF THE COMPANYS

SHARES IN HIS PERSONALPORTFOLIO WHICH IS MEANT FOR

LONG TERM HOLDING AND WILL

NOT BE LIQUIDATED IN COMING

DAYS.

DAILY MARKET NOTES AND CHAT

ROOM

http://niftyviews.blogspot.com/

DAILY INTRADAY CALLShttp://stockrumours.blogspot.com/

Kindly have a look on the below mentioned table of

the performance of our long term buy stocks. The

way we take long term investment stocks is totally

different. We will update only if we want that you

ook profits otherwise we wont update you for a long

term call as we believe strongly in the fundamentals

of the stock we recommend. The short term targets is

were a trader can book some profits and keep


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Prices based on closing of 25 th of july,2007

COMPANY PRICE

INITIATED

SHORT

TERMTARGETS

HIGH SINCE

CALL

CMP RETURNS

IN % AGE

TANLA

SOLUTIONS

272 600,1000 523 473 74

IND BANK

MERCHANTS

14 21 ,24 27.50 26.70 90

IFCI 11 21,24 64 54 PROFIT

BOOKED AT

34 46 58 63

300%

KOJAM

FINVEST

172 230 250 260 210 45%

BNK CAPITAL 34 62 71 83.20 48.45 100%

TELEDATA

INFORMATICS

39 76 96.45 69 100%

RELIANCE

INDUSTRY

1280 TARGETS

ABOVE 3000

1931 1912 50%

HOV

SERVICES

220 260 280 240 180 -22%

ANDREW

YULE

25 32 36.9 30%

BINDALAGRO 36 46,51 46 37 30%

NILE LIMITED 108 135 130 BOOKED AT

125

20%

HOEC 96 135 153 114 40%

PSI DATA

SYSTEMS

85 115 118 92 35%

Jm financial 960 1170++ 1350 1310 35%++

MSPL 18 28,40 29 25 60

The fourteen stocks recommended by us till date has given a return of 70.5%

outperforming the sensex and the nifty by a great margin OF 800% .IN PAST 8

MONTHS NIFTY HAS JUST MOVED FROM 4000 LEVELS TO 4400

LEVELS.JOIN US FOR VALUE BUYS. We advise traders to buy each and every

stock at every dip, as all of them are out performers in there own sectors. All clients

also get portfolio advisory free of cost.

FOR PAYMENT DETAILS

http://docs.google.com/View?docid=dkh7xb6_4dff7hx

OUR YAHOO IDS,

[email protected]

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JAYASAWALS NECO LTD. - 12th August 2007.Subscribe to TSR Scribd group

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