Wednesday, August 26, 2009

Artson given by others as well......!

I just came through this letter wherein a call for Artson Eng was given.
I leave to my readers how much they feel it is copied from our blog........ Maybe I am not doing the right thing.....trying to belittle someone.But let me clear my stand here. I am not trying to do anything like that.I am proud about myself that someone is looking at my blog and taking something out from it...............that's all......Let the world know that our blog is no mean less by any analyst who works for Big Brokerage House or working for any FII's ,wherein they earns millions of dollars as salary..........

So far, the .......................newsletter has been discussing investment ideas that have exhibited robust growth in the recent past. We have been looking for companies that enjoy a good chance of doing well across market cycles.
As investors for the long term we try to stay away from scripts that change like fashions. Still, one cannot resist the temptation of digging up the dirt in search of gems that turn out to be hugely profitable in future.
Obviously one cannot commit a large chunk of his or her investments to such stocks, but still hold enoughto let the portfolio soar high if and when its fortunes reverse.
One such gem we have come across is Artson Engineering Ltd, a sick company taken over by Tata Projects in 2008. Set up technocrats with experience in the field of petroleum refining, AEL has been in thebusiness of setting up petroleum storage and handling systems.
The company turned sick some years ago after it failed to recover dues from Essar over their ill-fated refinery at Jamnagar. Despite being unable to take up projects due to nonavailability of funding fromfinancial institutions, AEL boasted an impressive client list including Indian Oil Corporation, HPCL, IPCL,GAIL, Reliance Industries, BARC, etc.
AEL’s equipment supply business also managed orders from major power equipment suppliers likeBHEL, Siemens, ABB, Alstom and others.
Last year, Tata Projects took over AEL under a debt restructuring and rehabilitation scheme proposed by BIFR and infused fresh capital into it.
Having taken control of AEL, Tata Projects have retained members of its erstwhile management to ensuresmooth transition of operations.
Investment Rationale
The closely-held Tata Projects expects a number of advantages following the takeover of AEL. TataProjects which also has a joint venture with Engineers India Ltd (EIL) says it enjoys a number of synergies with AEL. Tata Projects is in the business of providing infrastructure services such as Balance of Plants forpower projects. It is also in the business of building blast furnaces for steel plants. AEL’s performance has also seen a quantum leap since its takeover. The June FY10 quarter saw the company’s turnover touch Rs 25.63 cr. as against Rs 7.47 cr. The year before. AEL’s net profit during the same period touched Rs 45 lakhs as against a loss of Rs 1.32 the corresponding period. On the other hand for the whole of FY08, AEL reported a loss of Rs 4.86 cr. on a turnover of Rs 32 cr. According to analysts tracking the company, AEL is expected to end the current financial year with a turnover
of between Rs 170 to Rs 200 cr. AEL’s management has indicated that it would aggressively pitch for orders in the coming months from various private and public sector oil companies. Its AEL’s order book hasincreased with orders worth nearly Rs 250 cr. in its kitty. Some of these include construction of 4 Crude oil.
Storage Tanks at Shri Guru Gobind Singh Refinery – a project being set up at Bhatinda. The estimatedcontract value of the order is Rs. 36.70 cr.
Earlier this year AEL received another order worth Rs 191.70 cr. from the same customer construction of Intermediate and Product Storage Tanks. Execution of the orders has already commenced, according tothe company. Another order is from Kuwait’s
Alghanim International General Trading and Contracting Co to construct 62 kms of pipe line at a cost of approximately Rs 17 cr. The project is expected to be completed by January 2010. Indian Oil and Cairn have placed orders worth Rs 22 cr. each.Management has indicated that the company would be net worth positive in the current financial year andwipe out accumulated losses worth Rs 17 cr. by FY11. The company will also under take capital expenses to the tune of Rs 5 cr. in the current financial year.


  1. hi rajeev,

    how r u doing ?

    im not able to buy artson as it is locked in upper circuit.. :-(

    should i buy at 50-55 levels now?

    Also madhucon reached 230 mark instead of shedding ... :-(

    im very unhappy nowadays...


  2. Hey Priya,
    Buy other stocks.There are loads of stocks I have recomended.
    Now don't buy Artson or Madhucon Project.....
    Don't get unhappy.
    See Sabero is firing all cylinders and it is over 40....u need to be happy.Cheerup.....Tell me why are u unhappy?Because u r not able to buy?If it is so then that shouldn't be a I have recomended scores of stocks..
    I hope u must have been able to find my email id ....

  3. rajeev, i love madhucon because it rises like anything... i made a mistake by not buying it at 160 levels.. now see its price. same case happened with artson :-(

    im a very agressive player...thats why gussa aata hai bahut...

    i have only 50k now.. pls tell me two OR three stocks which i can buy now..(which are still undervalued from your perspective)

    just waiting for your reply..


  4. Gosh.....Thank god I had madhucon frm 40 levels itself. Ddint have to feel sad like priya is feeling right now.

    Though even i am very dismayed as I got my MF redemptions just today and almost every stock i had identified to buy shot up by more than 20%.

    Rajeev, I have now bought two stocks one is your fav Srei Infra and the other is Goldstone Tele.

    I have already read again and again all your comments on Srei and so need no more info.

    However the other stock i.e goldstone infra ( previously goldstone tele ) I feel is a steal at this price.

    Kindly inform me your views as I am sure you will have more info on this than i can possibly dig out on the net.

    Tnx in advance.

  5. Hi Mtiz,
    Goldstone Infra is a buy....I like it ....I know everything about it...

  6. Dear Rajeev,

    How r you ? I am very happy to see that all your recent recos like Artson, Religare etc are on fire and almost 30 to 40% up. Today UTV got freezed at 20% up for sometimes and in later trade it has settled at around 15% gain. What a wonderful call given by you.

    My best wishes to you and your family. God bless you.

  7. I knew it.There cant be any stock that you do not know about.

    I can tell one of the most important things with this stock.

    The promoter stake was 46% in march 2005 after which it was diluted to 16% and over the last four years not once did the promoter stake increase.

    Finally in dec 2008 the stake got increased to 51% via an open offer at Rs 23 per share.

    I feel that one of he surest signs of super high performance of a company can be gauged from the promoter holdings. If a co sees a significant increase in promoter holdings then its just a matter of time that the excellent results & announcements start coming.

    Also it has been observed in the last few months that the price is strictly kept between 20 and 22. I guess huge accumulation is under progress and its a matter of time when it will flare up.

    Ofcourse Rajeev, i await further details from you as I am sure you will have more concrete information to share than just promoter holdings.

  8. This comment has been removed by the author.

  9. Hi Rajeev,
    I am following your recomended stocks for a long time. I have taken position in Gayatri,Marg, Gremach, Msk, Xl tele, Kavveri, Sujana tower, Selan, JMC, Jyoti, Premier Expl, Tin Plate, TRF, Thermax, Siemens, PSL.

    For some I have cheers and for a few have bitterness. Not matters as I am a long term (more than 5 yrs) time frame.

    I have a specific question from sweet sector that is Sugar. In your last blog u have recomended this sector , My picks are Balarampur, Dhampur, Sakthi. Plz advice on them..


  10. Dear Debasis,
    All the sugar stock u wrote are worth a look.....

  11. Dear Jaypal,
    Well the real thing here is when I gave a call on UTV ,it came out with a big loss and still I gave a buy call.No fundamental analyst or technical analyst can dare to give a call on UTV when I gave the call .
    As I said earlier , price is no all eps and p/e.There is something more then that and that is what I explained when I gave a call on UTV and I am happy to see that my call is giving fentestic retunrns and it will touch 1000 as I have written earlier and then it will be splitted.
    When I wrote this I just imagined about what can happen with a co which is now as good as Disney Wolrd.There was no inside info.It was just a simple analysis and my experiance helps me to project such things.That is where I am good and I know it very well.

  12. Hi Priya,
    Have a look at my old call like Heiderberg Cement,Prism Cement,Kir Ferro,Gremach Infra,Sujana Towers ,Lumax Ind,Tin Plate,Kavveri Tele,Jyoti Ltd,MSK Project...etc

  13. :-( I was hoping you would have replied to my query too. Maybe u were busy or the answer was long.. Anyways i eagerly await your update on goldstone infra.

    Your views will add more solidity and backing to my conviction.

  14. hi rajeev,

    dont you think that price of cement companies are dependent on govt policies??

    is it right to buy cement companies for multibagger return?


  15. Hi Rajeev,

    I am also waiting for your comment on accurate transformer...
    PE=3, industry PE=9, EPS 24, Sales of 26cr over mcap of 21cr, increse promoter holding from 37 to 41%, Reserve of 29cr over eq of just 3 cr


  16. Mitz,
    I have nothing new to write on Goldstone Infra.
    Just look at all the annoucement at bse and visit the site of this co.
    This will tell you everything.
    I have no inside info of Goldstone Infra and for a matter of fact have none of any stock either...

  17. Priya,
    Accurate Transformer is looking good but what u r thinking will not happen now.I am talking of Bonus.
    But seems a very good buy.....
    Cement stock will give great returns.Buy if you can.Heidelberg Cement and Prism Cement.You wants to hold for 5 yrs...then buy them...

  18. hi rajeev, thanks for your valuable advice...

    I want to tell you one thing about me, i hv a very strong will power. I have taken oath of not to sell any of my stock for next 5 years..

    after doing a lot of research i have bought marg, srei, gayatri, psl, sabero, jaihind, max india, jpt, kir ferro, msk, hss, flex foods, excel crop care, rts power, imp power , alhuwalia contracts, surya roshni, surya pharma, lumax ind, parekh aluminex

    i vil hol thm for 5 years,, wherever the prices go i m not going to seel them.. i will take bonus and dividend from them all..

    lets see whether i can succeed or not??


  19. Dear Priya,
    Good u r holdong these stocks and I am sure they are going to give great returns to you in times to come but still I will insist that SELL 50% as soon as the stocks douible from ur purchase price.
    After all these is a stock market and when the tide turns no one knows.Take ur money out and put it in a bank.The real charm in stock market is when one takes the money out and enjoy making profit.
    Even after u sell 50% , u will still end up having half of ur portfolio FREE.

  20. Rajeev Bhai,

    There's this continuous chatter on CNBC Awaaz 20:20 that Madras cement being cash rich will consider bonus issue. What is your opinion about that? After all, they gave the bonus only last year.

  21. Hi,
    If actually there is a talk then the chances of declaring a Bonus are LESS.....according to me...

  22. Insider info.......I have never desired such info nor have i seeked. All I asked was for details about Goldstone infra in terms of order book or product superiority etc.

    I am also too small an investor to seek insider info and act on it as i do not have deep deep pockets of an operator. :-)

    So Rajeev kindly do not misunderstand me.

  23. Dear Mitz,
    I am not saying that u need inside info.But as of now I have no clue on the amt of orders they are having for their power insulator and for the new project of silicon wafers taking place.

  24. So can it also become a multibagger in the next few years ??

  25. hi rajeev,

    good morning

    DO you think 235 is right price to buy torrent power?

    I want to include torrent power in my portfolio...

    waiting for ur reply


  26. hi priya,
    Torrent Power was going very cheap when I first recomended below 100.Now it is already up, but yes , I still feel that it can be a great earner in LT.

  27. whats abt xl tele ;himalya international.......?

  28. urmu,
    XL Tele I have already written that I will not recomend it again.The management is not good though they are trying to woo investors.Even if it tocuhes 100 I will not touch it though some of my friends says that it is now a buy but I am not ready to put my hand again on that.
    I do not track Himalaya Int so no view here.....

  29. thx rajivbhai for yr kind advice
    urmil desai

  30. respected rajivbhai,
    tell me some small script i want to invest for six month to one year.plz.
    urmil desai