Friday, December 14, 2007

Allied Computers International (Asia)...Ltd...Is it a Buy?....

Allied Computers International (Asia)Ltd..
I have no magic stick to see that stock will move.When I recomend a stock,I just read things at different outlets, like BS,ET , FE, etc....analyse it and put in front of you...
Now what I will be posting here is nothing but a copy of what I have read today:

Allied Computers to build first e-waste plant in Gujarat

a)BS Reporter / Ahmedabad December 14, 2007
Even as e-waste concerns grow across the country, Allied Computers International (Asia), a Mumbai-based company which makes laptops, is set to convert the problem into a business opportunity.

Hirji Kanji Patel, a missile scientist from the UK and chairman of the company, is planning to set up the country’s first chip-level laptop motherboards and parts recycling plant at Gandhinagar in Gujarat.

Under the proposed venture, Patel plans to import electronic waste such as motherboards from the UK and recycle them at the plant at Gandhinagar.

“To begin with, we might be able to recycle 150 motherboards a month, but once we install our machinery in six months time, we plan to ramp it up to 5,000 motherboards per month,” said Patel.

While the new facility will cost Rs 5 crore, the company plans to raise around Rs 100 crore through foreign currency convertible bonds (FCCBs). Initial formalities were underway, said Patel.

The funds will be utilised by the company’s for setting up 100 laptop service centres, constructing a plant for laptop, motherboards, parts and screen repairs at Vasai and for extending its presence to other cities.

This is the second round of funding planned by the company after it was listed in November 2007 and raised Rs 6 crore from its initial public offer.

The company is planning to start production of laptops at Gandhinagar by the first quarter of next year. Laptops from this plant will be exported.

For domestic consumption, the company will use the existing Vasai plant, which currently manufactures 2,000 laptops a month. The facility will be ramped up to produce 25,000 units per month by next year.

The company recorded a turnover of Rs 35 crore for the financial year 2006-07. This was expected to jump to Rs 70-75 crore on the back of low-priced laptops in the range of Rs 20,000-30,000, added Patel.

B)Laptops for Rs 5,000 in 2 years
Ahmedabad, Dec. 13

An Indian company, with the motto of “Developing a laptop nation”, plans to make available laptops for just Rs 5,000 in the next couple of years, its promoter said here today. The Mumbai-based Allied Computers International (Asia) Ltd, which introduced here a seven-inch-screen mini-laptop worth Rs 15,000, would also come out with three other products soon, its Chairman, Mr Hirji Kanji Patel, an NRI and ex-missile scientist from the UK, told reporters here. The company which raised Rs six crore through an IPO in October 2007, becoming the first laptop specialist firm to be listed on the BSE on November 23, markets its products under ACi brands, mainly in Mumbai. He said the world’s first sub-Rs 15,000 “real” laptop was equipped with over 1 GHz CPU, 80 GB HDD, 512 MB RAM, with a built-in web-cam and wireless LAN and Bluetooth. The company’s first sub-Rs 20,000 wireless, Core 2 Duo laptop, which currently accounts for 60 per cent exports, would be provided to the rural schools of India soon.

These are the two news I read today and fortunately both were of same stocks...
We are lucky....
Well, looking at the above article, seems that Allied Computers International (Asia)...Ltd...can be a dark horse in making....
Seems that Allied Computers International (Asia)...Ltd... is a high risk high gain type of stock..The good part is I read today in BS that there was a Bulk Deal happened and the buyer was promoter...and when promoters buy from market then we can also safely buy it....that is my calculation.....I may prove wrong...


  1. that's an interesting observation. when chinese goods are flooding the indian market and too at cheaper price. how do you think this cpy will be able to withstand the onslaught.
    recycling e-waste seems to be first in india by a cpy so that could cause some re-rating of the stock.
    should be an interesting stock to track.

  2. Hello Nakul Ji

    My name is Ravi from USA.I am newbee to stock market.(8 Month old baby).I was one of the lucky person to found you at money control. I am still at learning stage and stared investing small amount. But I got some very good confident in the market after reading your post and calls. I bought netfliar @63 rs.

    Just want to share my thanks and good wishes to you. I really feel good when read your post. I really appreciate your hard work and helping nature to people.

    Have a good day sir

  3. Nice Start Rajeev.

    Some suggestions
    1) Add a Feedblitz or a Feedburner to the blog
    2) Keep a site tracker which helps the number of visitors visiting your blog daily
    3) Connect with other Indian bloggers and provide links to theirs in your blog
    4) MOst importantly, keep the blog updated regularly. Out of sight is out of mind.

    Good LUCK,

  4. Hi nakul, (what's your age by the way?), I wish to add one more prospective to the ACI story you told us. I am myself one of the very first Laptop user of ASI in UP when no one had even heard of the brand, and that too, like you, from a news report in E.T. And it's 5 years now nd the Laptop works so well that I can't tell you. It's so rugged. I work in rough conditions and it's so very very durable that I just can't but appreciate.
    Now that I read your post, I regret why I missed the IPO @just 12 ,though I knew of it and worst still, why din't I buy it on it's listing at 21 itself ? It's already 5 times it's IPO price. Anyway, do we dare to buy now at 70 odd ??? More so, as (why you say) it maybe a high risk stock too ? If their plans, products and fundamentals are so good, why did you still call it a risk one ? Even at a rate of 1% per day, will it not just keep going up only ?
    And rest assured China cannot be a competition to ACI at least, I am sure.
    By the way thanks for Netflier reco. I got it at 57 and will try for more on Mon. if it is not in ckt. at 10.56 already !!!
    Lastly, can you not please be sporty (I couldn't think of another requesting word rt. now)enough, to tell us AS TO WHAT "YOU" THINK about the final targets of the stocks you have talked about ? As, one thinks and rightly so, that who else but YOU are the RIGHTEST PERSON to ask and discuss about the final rates etc etc. Don't you think so ? Whosoever buys from your write-up, feels like your friend by default. Thus would you not help out your friends when they ask you about near final targets etc. Like in Netflier you said, it's B.V. of 200/- SEEMS TO BE it's logical target, subject of course to the right kind of sentiment of that sector, which the financial sector is at the moment.
    So, can you reply to this mail and tell us at to what you think should be right kind of rate or profit to get out of, from JSWHL ?
    Thanks, bye and all the best !!!

  5. Dear Rajeevji,

    Congratulations on starting your blog. I keenly observe and analyse your picks and many of them have done exceedingly done well in recent markets. Keep up your good works. Also interested in your picks in such sectors like Banks(PSU banks), Textiles and also Auto Sector.

    Best Wishes,

  6. Good show Rajubhai, nice to see you putting up a blog. Keep it up - Sundara Rajan

  7. Hi Nakul
    It has gone up too much from its IPO price @Rs12 and Listing at Rs21. Eventhough laptop is good at 15000. I think the laptop price comming down and second hand laptop around 20K for same or better config. I think it all depends on how well it is marketed. Recycling unit is a good play. although it remains to be seen how much revenues it will generate. I feel i would rather wait some time and then buy


  8. Thanks Rajeev Sir for starting this blog so that we can track your recommendation. One small suggestions, can you put information/link to educate small investors(like what is the benefits to investors when company declares bonus or spilt the share etc.).

    Thanks again for starting this blog

  9. Hi Rajeev...
    common sense is most uncommon..which really separates rajeev from the herd..rajeev's picks are really based on simple logic, which not many can decipher..and they DO work..
    really nice start..looking at all ur picks, it was about time u started ur own blog..congrats and all the very best

  10. I am seeing a bulk deal again happening at this counter:
    17/12/2007 532919 ALLIED COMP ACCORD CAPITAL MARKETS LTD B 121633 76.00 "
    Ashok,I will come out with my predictions soon.....

  11. Dear Rajeev, as soon as I asked you to tell us at to what you think should be the right kind of rate or profit to get out of, from JSWHL, it has hit a lower ckt. today and WORST OF ALL, it's all because of some bungling done by the promoters !! (The worst thing which can happen to a co.)
    Now, in the least, can I ask you as to what will happen to the co. and the stock rate now ? (I hold 150 @ 1400/-).
    PL. discuss this, at the earliest that you can find time.

    (About ACI though, you were rt. as only a block deal could have put it on a U.C. despit 271 fall in Nifty).

    But will JSWHL survive/revive now ?

  12. Hi Ashok,
    Well,I have always written here and at mmb that do not buy high and atleast take care not to buy holding co at such a high price as it's distiny is directly related to the cos it holds.It is only now that market is givng good valuation....anyway.....I am not tacking it and hence can't say anything on it...if u r not comfortable then don't hold it.Sell as soon as u get your price...

  13. More Bulk deals at Allied Computer:
    19/12/2007 532919 ALLIED COMP SAK TECHMOLOGIES LTD B 275000 78.05
    19/12/2007 532919 ALLIED COMP ACCORD CAPITAL MARKETS LTD B 100000 77.78
    19/12/2007 532919 ALLIED COMP RASHI INVESTMENTS B 100000 77.46
    19/12/2007 532919 ALLIED COMP VIJAY BIYANI S 100000 77.98

  14. Hi Ashok,
    Looking at the promoters interest in buying the shares from open market and there by increasing the stake and looking at recent Bulk Deals ,it seems that 200 should come within a year.
    I tried to find the results and shareholding pattern at bse site but unable to find any...I want more time to look at their products and how will they fare and how is the market of PC's.As I have seen that offlate,PC's sell is going fast and will remain good for years to come with people earning more and spending more...
    but as you have said that , you are already using their product and they are durable and longlife....henec I don't see much down side from here....