Solitaire Machine Tools Ltd – SMTL manufactures Precision Centerless Grinders in different ranges of 100 mm, 200 mm, 250 mm & 500 mm wheel width accounting for 93% of the total revenues.SMTL has two facilities located at Baroda with a total installed capacity of 56 machines p.a. Plant 1 manufactures No. 2 grinders (200 mm & 250 mm wheel width), while Plant 2 manufactures & assembles the grinders of 100 mm & 500 mm wheel width.
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Author: CP
Indiabulls MoU with Societe Generale Insurance
Indiabulls Financial Services has entered into a memorandum of understanding with Societe Generale Insurance for its upcoming life insurance joint venture. Societe General, through its French life insurance company, Sogecap, will own 26% of the future joint venture.
Indiabulls has already received the Reserve Bank of India’s approval to invest in the joint venture, and has also approached IRDA, the Insurance Regulatory and Development Authority, for the necessary regulatory approvals.
Omaxe to Diversify into Power Distribution
Omaxe Ltd just a while ago informed us that subsidiary of the company, Omaxe Powers has filed expression of interest to bid for a project to convert existing low voltage distribution system to high voltage distribution system throughout the state of Punjab.
We think this is a fantastic move by the company unlike Parsvnath which is planning to get into low margin capital intensive business of Telecom which will be an unrelated diversification. Instead Parsvnath should look at the Infrastructure space.
On 20 December 2007, the concerned authority had approved the company’s subsidiary Eden Buildcon’s bid for a multi-purpose project, estimated at Rs 1,800 crore, in Hyderabad.
Gulf Oil Corp on a growth trajectory
Gulf Oil Corp (GOCL) is engaged in a blend of diverse business areas such as industrial explosives, lubricants, mining services and specialty chemicals, where almost 59% of revenues comes from lubricants. Strong organic growth is expected across segments driven by increased prices and robust economic growth. New mining policy will attract the investments in the sector benefiting the companies like GOCL. Government wants the contribution from mining sector to grow from current 2% of GDP to 5% of GDP in the next five years, which will boost the segmental revenues tremendously. Further, new mining contracts and venture into limestone mining will fuel growth. (more…)
BUY Shiv Vani Oil – Nirmal Bang Sec
We initiated coverage on Shiv Vani Oil in September and the stock has went past our target price. Nirmal Bang Securities [Big Bull during the Dot Com Days] is now initiating coverage on the stock.
Shiv Vani has a strong order book of Rs 3150 crore and is expcted to strengthern by another Rs 4000 crore.Increase E&P Capital Expenditure to boost up demand for Oil field service providers.The Indian market size of Seismic services is estimated to be over Rs. 2000 Crores. and it is expected to grow by 50-60% once the NELP VII blocks will be awarded in early next year. Shiv Vani will be a major beneficiary in these contracts. (more…)
Manappuram General Finance & Leasing – BUY
Manappuram General Finance & Leasing is mainly involved in Loans against Gold. Almost 85% of its folio.The combined size of the loan portfolio (of MAGFIL and Manappuram Finance (Tamil Nadu) Pvt Ltd) could be Rs. 750 cr., (inclusive of off-balance sheet items) as of March 2008. As per the method of accounting followed by MAGFIL, Interest received/accrued on account of gold loan receivables assigned to its institutional lenders is credited to interest account net of interest paid /credited to these lenders on accrual basis. This portfolio size could increase by 30%+ in the coming year i.e. FY09.The average cost of funds for advancing gold loans is close to 12% and the average interest earned is around 21% – 23%. This leads to a healthy spread of 9% – 11%. (more…)