Stock Tips of Indian stocks
( By continuing reading this column, the reader confirms that he/she has read the disclaimer at the bottom )
( By continuing reading this column, the reader confirms that he/she has read the disclaimer at the bottom )
Stock/ Company: XL Telecom Ltd Recommendation: Buy
Date: 15th July 08
Face value per share: Rs 10
Current Market Price : Rs 201 as on 11th July 08
Target Market Price : Rs 300 in 12 – 18 months
Business description of this stock:
XL Telecom is broadly into 3 business areas. Namely the a) Photovoltaic cell and module manufacturing b) Ethanol manufacturing, and c) CDMA mobile contract manufacturing. The business turn over in 2006 – 07 is Rs 515 Cr . This stock is recommended for good gains in medium to long term.
Positives/ Strengths/ Opportunities of this stock:
- Photovoltaic is a worldwide sunrise industry with demand going up from USD 17 Billion ( 2007 ) to USD 40 Billion ( 2010 ). With crude crossing USD 150/ bl demand for renewables in likely to shoot
- Ethanol also is a substitute for crude and if crude rules high, demand for ethanol will grow.
- XL is a popular contract vendor for CDMA phones which is growing rapidly.
Negatives/ weakness/ threats of this stock:
- Execution capability of the management
Summary:
Company year ends on: June 08, Turn over 06- 07 = Rs 515 Cr 07-08 E = Rs 583 Cr
Turn over – expected Compounded Annual Growth Rate CAGR ( 07 - 09 ) = 36%
Net profit – expected Compounded Annual Growth Rate CAGR ( 07 - 09 ) = 159%
Earning Per Share expected ( 0708, 0809 ) = Rs 14, Rs 54
Return on Equity ( 09 E ) = 29%, Return on Capital Employed (09E ) = 26%
Buy this stock for a minimum of 50 % gain over a 12 to 18 month period
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Disclaimer: Investment in shares are subject to market risks. This is a free advice given to the readers and the readers shall consult their financial advisors before making an investment. The author may or may not have this stock in his portfolio. The readers indemnify the author against any or all damages including loss of their invested money
Date: 15th July 08
Face value per share: Rs 10
Current Market Price : Rs 201 as on 11th July 08
Target Market Price : Rs 300 in 12 – 18 months
Business description of this stock:
XL Telecom is broadly into 3 business areas. Namely the a) Photovoltaic cell and module manufacturing b) Ethanol manufacturing, and c) CDMA mobile contract manufacturing. The business turn over in 2006 – 07 is Rs 515 Cr . This stock is recommended for good gains in medium to long term.
Positives/ Strengths/ Opportunities of this stock:
- Photovoltaic is a worldwide sunrise industry with demand going up from USD 17 Billion ( 2007 ) to USD 40 Billion ( 2010 ). With crude crossing USD 150/ bl demand for renewables in likely to shoot
- Ethanol also is a substitute for crude and if crude rules high, demand for ethanol will grow.
- XL is a popular contract vendor for CDMA phones which is growing rapidly.
Negatives/ weakness/ threats of this stock:
- Execution capability of the management
Summary:
Company year ends on: June 08, Turn over 06- 07 = Rs 515 Cr 07-08 E = Rs 583 Cr
Turn over – expected Compounded Annual Growth Rate CAGR ( 07 - 09 ) = 36%
Net profit – expected Compounded Annual Growth Rate CAGR ( 07 - 09 ) = 159%
Earning Per Share expected ( 0708, 0809 ) = Rs 14, Rs 54
Return on Equity ( 09 E ) = 29%, Return on Capital Employed (09E ) = 26%
Buy this stock for a minimum of 50 % gain over a 12 to 18 month period
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Disclaimer: Investment in shares are subject to market risks. This is a free advice given to the readers and the readers shall consult their financial advisors before making an investment. The author may or may not have this stock in his portfolio. The readers indemnify the author against any or all damages including loss of their invested money
