Stock Views on TALWALKARS BETTER VALUE FITNESS, PRAKASH STEELAGE, KIRI DYES

KIRI DYES


Kiri Dyes's scrip dipped below its offer price of 150 within couple of months of listing. But its move, in parnership with Lonsen, to acquire bankrupt German company Dystar boosted the scrip to 700 in December 2009. The scrip at 317 is trading at a P/E of 20.7 considering its standalone earnings. A successful turnaround of Dystar holds great potential for its earnings growth. Investors should hold the stock.

PRAKASH STEELAGE


Prakash Steelage makes seamless and welded stainless steel pipes and tubes for sectors ranging from chemicals and fertilisers to oil and gas and refineries. The company, which listed in August 2010, received a good response from investors initially, but has been steadily declining since. It has a high debt-equity ratio of 3.12, but this is warranted given its expansion plans. The company is expected to sustain the growth momentum in the near term given a firm demand trend from its user segments.

TALWALKARS BETTER VALUE FITNESS


Mumbai-based health centre Talwalkars is on an expansion spree increase its footprint across India. Since its listing in May 2010, it has raised the number of fitness centres from 51 to 79 across 42 towns and cities. It has so far utilised over two-third of its 77 crore IPO proceeds. The stock's current trailing P/E of 41 seems to fully reflect the company's future growth.