MORE STOCK IDEAS :-)

* Considering the difficult economic situation in H2FY09, the results of Gayatri Projects (Rs.172.30) for Q4FY09 look encouraging.

For FY09, net profit rose 3.17% to Rs.41.32 cr. against Rs.40.05 cr. in FY08 while sales rose 33.53% to Rs.1004.59 cr. against Rs.752.36 cr. in FY08. EPS is around Rs.40, which is in line with expectations.

The company has orders in hand worth Rs.5000 cr. and current year sales are likely to be around Rs.1300 cr.

Promoters have bought shares worth of 5% of the paid-up capital in Q4FY09.
Although the stock has shot up from the levels it was recommended earlier, it is still good for accumulation on dips and may see higher levels.

* Kirloskar Electric (Rs.47.20) has reported encouraging results for Q4FY09 as net profit shot up to Rs.8.2 cr. from Rs.4.84 cr. due to the benefit of merger in this quarter. Investors can accumulate this power sector stock in their portfolios for a target price of Rs.125 over the next one year.

* TIPS Industries (Rs.39.25) was recommended last week. The company is coming out with a buyback offer. Investors may continue to hold the stock for target price of Rs.55/60 levels.

* Uflex’s (Rs.78.60) consolidated results are encouraging as FY09 EPS is Rs.28 while cash EPS is Rs.42. There is promoter buying in the stock from quite some time and the company is also buying back the FCCBs.

Valuations are very attractive as the company paid 40% dividend over the last two years. FY09 dividend may go up in view of better results. Stock may touch Rs.150 level over the next 6-8 months.

* Elecon Ltd. (Rs.74.65) has given a good correction in the last few days as it has reacted from a high of Rs.104.65 to a low of Rs.65. Those having booked profits at higher levels can add back at these levels. There are expectations of good orders in the near future.

* Unity Infraprojects (Rs.320.10) has good order position worth Rs.3000 cr. The company may raise funds through the QIP route. Stay invested for a target price target of Rs.450.

* Manappuram General Finance (Rs.285) was recommended at Rs.190-195 level. It has shot up to Rs.270. Investors can book partial profits.

* Compared to Esab’s P/E ratio of 10 and Ador Welding’s 15, Ador Fontech (Rs.110.55) is trading at a P/E ratio of just 4. Its EPS was Rs.27 and stock is trading at 50% cum dividend while its book value is Rs.87. With an expected strong thrust to the infrastructure sector, this company is expected to do well year after year.

* NESCO’s (Rs.906.90) results are expected to be good. Investors can continue to stay invested.

* There is promoter buying in Nirlon (Rs.32.95). The stock corrected well from its recent high of Rs.48.6 to a low of Rs.28.5. With an expected revival in its real estate business, the company should do well. Investors can add this stock on dips for a target of Rs.60 over the next 6 months.

* Marketmen are bullish on stocks like IFCI/IDBI in the short-term.

Note: Sensex closed well on Friday, 26 June 2009, above 14700 on some signs of the start of the monsoon.

Many mid cap stocks have corrected well sharply and bounced back too. Thus, it is possible that the much awaited correction is over in mid caps. With free float of index stocks, ITC, HDFC, ICICI, Infosys, HDFC Bank are likely to do well.