Stock watch as on March 7, 2008

The small-cap universe is a treasure trove of bargains - provided you can spot them. We tie up with Trisys Research to identify stocks that aren't in the limelight, but have the potential to give high returns.

Print Edition: 03 Apr, 2008

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The small-cap universe is a treasure trove of bargains - provided you can spot them. We tie up with Trisys Research to identify stocks that aren't in the limelight, but have the potential to give high returns.

RDB INDUSTRIES

Both business divisions — real estate and cigarette manufacture — to progressively unlock value. Has delivered 1 million sq ft; ongoing projects will roll out about 5 million sq ft in three years. Cigarette brands comprise Regent, No. 10 and Cool. Its tobacco licence of 16 billion sticks and 1,38,000 kg of tobacco mixture makes it attractive MNC target.

Core business: Real estate construction and development. Also enjoys a presence in the domestic tobacco industry.

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What makes it attractive

EBITDA of 2007-8 expected to be Rs 20 crore

EBITDA of 2008-9 expected to be Rs 70 crore

Market capitalisation: Rs 156.74 crore

Land bank of 235 acres (20 million sq ft saleable space), with 50% in tier II cities. Expected to add another 400 acres by 2011

Stock price as on Mar 7: Rs 138

GREENPLY INDUSTRIES

Expansion of medium-density fibreboard capacity (January 2010) and laminate capacity (July 2009) to drive growth. Top line should increase by 30-35% in 2008-9 as plywood unit in Gujarat goes into full capacity by July post-modernisation. Expecting to earn 5,00,000 euro as carbon credits from Behror (March 2008) and Uttarakhand (June 2008) plants for the use of green biomass energy.

Core business: Interior infrastructure with products across plywood, particle boards, laminates and decorative veneers.

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What makes it attractive

April-Dec 2007 net sales: Rs 395.13 crore (40% increase over the corresponding period in the previous year)

EBITDA: Rs 63.76 crore (90% increase)

Net profit: Rs 30.06 crore (90% increase)

Stock price as on Mar 7: Rs 290

WEBEL-SL ENERGY SYSTEMS

Webel-SL's third quarter results show a decline in total income by about 21% to Rs 24.22 crore compared with the previous quarter, while net profit expanded by around 11% to Rs 2.13 crore. This was due to a 21% decline in operating costs, in an environment marked by surging silicon prices. At Rs 343, the scrip has given 19.5% return over the past one year.

Core business: Producer of solar photovoltaic cells and modules; about 95% income from exports.

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What makes it attractive

On a four-fold capacity expansion to 40 MW by September 2008

Hopes to incorporate PECVD, a technologically advanced manufacturing asset by April

Raw material silicon supplies secured until 2010-11 with a provision for price declines

Fully diluted equity no more than Rs 10 cr; revenue potential of Rs 600 cr

Stock price as on Mar 7: Rs 344

RAMSARUP INDUSTRIES

This company is the second largest secondary producer of steel wires in the country. The company is optimistic of achieving revenues of Rs 1,550 crore in 2007-8 due to increased exports (Africa and Reliance SEZ), manufacture of single-line low-relaxation pre-stressed concrete (LRPC) wires for the first time in India and special grade wires.

Core business: Wires (special grade and the newly introduced LRPC), TMT bars and power transmission infrastructure.

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What makes it attractive

Hopes to add about 36,000 tonne per annum stranded LRPC wires every year for three years

Backward integration from wires to billets (through a proposed merger with Ramsarup Loh Udyog) and key raw materials (limestone, iron ore & dolomite)

Received confirmation of long-term coal linkage from the Ministry of Coal

Stock price as on 7 Mar: Rs 165

Stock prices as on March 7, 2008.

Stock watch as on March 7, 2008

The small-cap universe is a treasure trove of bargains - provided you can spot them. We tie up with Trisys Research to identify stocks that aren&#39;t in the limelight, but have the potential to give high returns.

The small-cap universe is a treasure trove of bargains - provided you can spot them. We tie up with Trisys Research to identify stocks that aren't in the limelight, but have the potential to give high returns.