PROFILE

Comment: Sanghvi Movers Ltd. (SML) is the largest crane hiring company in India and the 12th largest in the world as per a recent ranking from Cranes International magazine. It is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure and core sectors.SML’s major clients include Suzlon, Lanco Infrastructure, Reliance Industries, BHEL, Tata Steel, L&T, Reliance Energy, Indian Oil, NTPC and Ultratech Cement.

SML has witnessed a CAGR of 51% in its topline over the last 3 years. Topline grew by 59% YoY to Rs 172.3 cr. in the first half ended Sept. 2008 on the back of acquisition of new cranes and deployment of the same. Net profit grew 65% to Rs 51.5 cr.. For the year ended March 2008, SML posted net profit of Rs 72.7 cr. on net sales of Rs 254 cr.. On a equity of 8.65 cr. the EPS on a Rs 2 paid up share stood at Rs 16.8.

At the current price, the SML stock is trading at a multiple of 4.3 times FY08 earnings(Rs 16.8) and 3.5 times(Rs 20.5) estimated FY09 earnings(Rs 20). Keeping in mind the company’s strong presence in the domestic crane hiring industry and future growth prospects, Investors can accumulate the stock.

Comment: Timex Watches, a 74.93% subsidiary of Timex Corporation of USA is the 2nd largest quartz watch brand in the country. Timex entered India in the early Nineties through a joint venture with Titan, now its rival. In 1998, it broke away to be on its own. In value terms, Timex has a 25 per cent market share in the organised watch sector in India. Titan is still the leader by a large margin (Titan says it has a market share of 65 per cent). An organisational restructure saw Timex Watches become Timex Group India Ltd(TGI). Three business verticals were formed – Timex and fashion brands, luxury brands and jewellery, sending a signal that Timex is no longer a single brand-single product company.

Timex is the largest selling watch brand in the America and has sold more than 1 billion watches worldwide. It has a presence in 26 countries around the world including in the UK, France, US, Australia, Germany and Italy. Timex is a force to reckon with in the watches market globally. Timex Corporation, USA, sells more watches than its ten competitors put together.

For Timex, the India market is the third largest in terms of volume, after the US and Canada. Given India’s importance in the global market, TGI’s revenues stood at a modest Rs 131 cr. for 2007-08. Net profit stood at Rs 5.45 cr...The Rs 131-crore company, after a lull period, scripted a turnaround in 2004-05 by posting a net profit of Rs 0.72 cr. on net sales of Rs 78 cr.. For the half year ended Sept. 2008, TGI’s net profit stood at Rs 4.9 cr. on net sales of Rs 70.7 cr. Going forward, TGI is expected to witness substantial improvement in realization and sales growth. The company is also expanding aggressively in retail market through its ‘Time Factory’ stores. Accumulate

Comment: Gitanjali Gems (GGL) is an integrated diamond and jewellery manufacturer and its operations include sourcing, cutting and polishing roughs into diamonds and the crafting of diamond and other jewellery. Over the last 5 years, GGL has established world class scale in diamond and jewelry manufacturing. The present business mix of the co. is cut and polished diamond is 50-55% and jewelry is in the range of 45-50%. The business mix is likely to change in favour of jewellery retail in the coming years as margins and value addition are much higher in jewelry and jewelry retail vis-à-vis cut & polished diamonds.The company sells jewellery in India under four major brands: Gili, Nakshatra, Asmi and D’Damas. These brands are well established in the market and feature in top 10 best-known jewellery brands in India. Gili and Nakshatra are acknowledged as super brands.GGL has a unique business model that places it in a distinct position in the gem & jewellery and retail businesses in India. For the half year ended September 2008, GGL’s net sales stood at Rs 2,509 cr.(up 20%) and net profit stood at Rs 90.41 cr. (up 18%) on consolidated basis. The current price of Rs 63 discounts its consolidated FY08 EPS of Rs 18.9, by a PE multiple of 3.3 and its FY09E EPS of Rs 21, by a PE multiple of 3.Gitanjali’s broad product range, strong brand equity and significant retail presence along with sightholder status and strong network have enabled it a strong hold in domestic and international markets.

Comment: Manaksia manufactures value-added metal products and metal packaging products. The Kolkata-headquartered Manaksia Group is India’s largest secondary producer of value-added aluminium rolled products with 15 manufacturing facilities in the country and three abroad. The business of the Manaksia can be categorised into metal products, packaging products, mosquito coils, and engineering and other goods.At current level of Rs 31, the stock trades at 1.7 times its FY2008 earnings(Rs 18.4) and 1.3 times its estimated FY 2009 earnings(Rs 23-24).

Comment: Mysore Cement(formerly a S.K. Birla co) is now owned 55% by Heidelberg Cement AG, Germany the third largest cement co. in the world after Holcim and Lafarge, the stock is a turnaround story.The stock looks a good investment pick at current levels considering its fundamentals, earnings(Rs 6.25) and future prospects. With Heidelberg at the helm of operations, the performance is bound to improve in coming years. Going forward, more measures for efficiency increase and cost reduction will be implemented, and focus will be on further, gradual expansion in capacities. All in all it’s a cement MNC stock available at the P/E of less than 2. The financials, debt free status of the company and its parentage should help the stock going into the future.