Sushil Finance on Assam Company, target of Rs 21
"ACL is one of the leading producers of the most exquisite, high-quality, premium tea. The Company operates through 17 tea estates and gardens with planted area of about 8644.2 hectares on a grant area of 14663.8 hectares. The average yield per hectare stands at 1983 kgs. The Company manufactures around 17 mn kgs of tea and being a bulk manufacturer, 95% of the operations are undertaken through B2B route. The company also has invested in Austin Exploration Ltd., a company having interest in oil & gas blocks in Australia and USA. The company is expected to deliver very decent earnings growth from oil and gas segment. The stock currently trades at 11x its FY10E fully diluted equity earnings and 1.0x BV. Buy the stock with target of Rs 65," says Sushil Finance's report.
Sushil Finance on Shiv-Vani Oil, target of Rs 380
Shiv-Vani has incurred a capex of about Rs 9 billion during FY09, of which, Rs 7.7 billion were expensed to add 11 short rigs, taking the total number of rigs to 40. At the CMP of Rs 303, the stock currently trades at 6.6x FY11E earnings and 1.1x ABV of FY11E. Buy the stock with target of Rs 380," says Sushil Finance's report.
Sushil Finance on Shanthi Gears, target of Rs 65
"On back of the tough business environment, Shanthi has taken measures to revamp and restructure the entire operational and organizational structure, which may lead to scaling down of plant operations, cutting back its personnel and administration costs and a re-look at all the contracts. Shanthi has moderated its capital expenditure plans and may spend only Rs 250-300 million in FY 10. Shanthi has the highest margins in the peer group and the return ratios are also considerably high. Capital intensity in its Business is not very high leading to high cash generation. At CMP of Rs 46, the stock is trading at a valuation of 1.4x its FY11E ABV & 8.4x FY11E Earnings. Buy the stock with target of Rs 65," says Sushil Finance's report.
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