ICICI : Stock on the move 1st Sep. 2005

Mcleod Russel India	Sun Flag Iron & Steel	Deepak Fertilisers
	Mcleod Russel India Reco price Target 1 Target 2 Stop Loss Mcleod Russel India Rs 61.05 Rs 69.00 Rs 78.00 Rs 55.00
	Date: 24/08/05 Mcleod Russel is a classic turnaround candidate returning into the black in the first quarter of this year. On net sales of Rs 316.89 crore, the firm posted a loss of Rs. 19.74 crore in 31 March 2005. However, the company bounced back into the black in Q1 with a net profit of Rs. 9.69 crore against a loss of Rs. 7.7 crore. Part of B.M.Khaitan group, the company is engaged in manufacturing of bulk tea. The company was originally part of Eveready Industries Ltd. The company demerged its dry cells business & tea business in two separate companies. The demerged tea business company was recently listed as McLeod Russel India Limited. The de-merger of bulk tea business from Eveready Industries was the first step towards consolidation of the group tea business. It recently completed its acquisition of Williamson Tea Assam Ltd from London-based Magors, thus becoming the largest integrated tea company in the world. Being in the last leg of a turnaround and impending consolidation in the tea businesses are the two triggers in the stock.
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	Sun Flag Iron & Steel Reco price Target 1 Target 2 Stop Loss Sun Flag Iron & Steel Rs 15.80 Rs 18.50 Rs 20.00 Rs 12.50
	Date: 24/08/05 The positive outlook of the metals sector over the long-term and the recent price hikes has brought the focus back on metal stocks. A low-priced stock, Sunflag Iron, has returned on the investment radar. Promoted by Kenya based Bhardwaj brothers in 1984, the firm manufactures special steel long products mini-mill, mild and alloy steel rolled products. A consistent profit earner, the company is de-risked from the natural vagaries of the metal cycles as it services core sector industries like Automobiles, Railways, Defense, Agriculture, Engineering Industry etc. Apart from the regular business upturn the company’s foray into stainless steel is likely to add to the topline and bottomline. A strong fundamental outlook and favourable technical formation on the charts are the key triggers.
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	Deepak Fertilisers Reco price Target 1 Target 2 Stop Loss DEEFER Rs 74.80 Rs 81.50 Rs 89.50 Rs 68.00
	Date: 24/08/05 Deepak Nitrite and C K Mehta promoted Deepak Fertilisers has reported strong quarterly results. It has posted revenue of Rs 138.27 crore against 123.59 crore for the quarter ended June 04. The quarterly NPAT has increased 71.4% YOY to Rs 22.62 crore against Rs 13.20 crore. Growth was largely driven by the ammonium nitrate business, which is also likely to witness increased buoyancy due to the upswing in the mining & infrastructure sectors. The methanol and nitric acid businesses are expected to grow annually @ 10-15%. The leadership position in industrial chemicals such as Ammonia, Methanol, various grades of Nitric Acid and liquid Carbon Dioxide in the country also gives the company an edge over others. DFPL has assured supply of crucial raw material - Natural Gas - through Deepak's own gas pipeline direct from Bombay High gas fields, makes the company cost competitive. Considering the above, the stock holds good value preposition both for short term as well as long term.
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