SCHNEIDER ELECTRIC INFRASTRUCTURE LTD BSE Code 534139

Schneider Electric Infrastructure , an associate company of the French Energy management conglomerate  Schneider Electric is  a newly listed  stock in our stock exchanges.This company originated by the  Areva T&D’s global take over by the Alstom-Schneider consortium and subsequent de -merger of Transmission business to Alstom and  distribution business  to Schneider.The global takeover happened in 2010 at a cost of EUR 2.29 billion.Later the high voltage business allotted to Alstom and Medium and low voltage business allotted to Schneider to align with their global status.The Indian business of erstwhile Areva T&D also shared in the same manner here.In the initial stage its name was  SMARTGRID AUTOMATION DISTRIBUTION AND SWITCHGEAR LIMITED and changed its to Schneider Electric Infrastructure Limited in December 2011. Its ultimate parent company Schneider Electric is one of the world's largest manufacturers of equipment for electrical power distribution, industrial control and automation.Its nearest rival is ABB , but if we take the growth in Asia region business Schneider outpaces  with a 21%sales growth compared to 5% of ABB. Even in other parameters too Schneider showing better prospects as in the case of operational  margins for low voltage business where its is 20.5 % for Schneider and 16% for ABB (Asian business) .At present Schneider’s revenue share from Asian region is about 37% and it is growing very fast mainly due to some aggressive acquisitions made in last few years. In India , parent company made some big ticket acquisitions in recent past which includes Conzerv Systems, Meher Capacitors, Zicom's electronic security systems integration business(Rs.225 Cr),Uniflair India, APW President Systems( Rs.70 Cr approx.),Digilink(Rs.500 Cr) and Luminous ( Rs.1400 Cr)..etc.These figures clearly indicates their commitments to India . Coming back to the business of the listed entity ,it is in MV/LV Distribution business which includes Protection relays , control panels and other accessories.Even if there is some slowness in power generation and distribution policies by government in recent times , we all know there is huge scope remaining and it is inevitable in a country like India.I believe , with superior technology ,aggressive marketing strategies and vast experience Schneider having big opportunity in India for their Distribution business going forward.For the nine month ended December 2011  Schneider Electric Infrastructure posted a turnover of Rs.1054 Cr and a net profit of Rs.33Cr .In the latest December quarter alone it  posted a sales of Rs.409 Cr and a net profit of Rs.18 Cr .Margins are not great  at present but it is expecting to improve after the full control  of Schneider in the management .SEIL listed last week and this FV Rs.2 stock is currently trading around Rs.70/- .I feels the major selling happening in these days are from some Institutional share holders. As a matter of policy ,generally some funds/institutions are not interested to hold de-merged pieces and this may be an offloading because of this reason. I strongly believe whenever this supply ends this stock will move to the next level  and may turn as a dark horse in coming years.....Buy for long term 3-5 years . 

Nu Tek India Ltd...........CMP 0.95 paisa,,,buy for long term

Incorporated in 1993, Nu Tek India (Nu Tek) was promoted by a first-generation entrepreneur, Inder Sharma, a BE Electronics and Communication Engineer from North Carolina State University, US. Nu Tek is a telecom infrastructure services provider, offering Infrastructure rollout solutions for both mobile and fixed telecommunication networks. The company offers services to telecommunication equipment manufacturers, telecom operators as well as third party infrastructure leasing companies in installing and maintaining telecom network equipment and Infrastructure. From end-to-end solutions ranging from telecom network installations to full turnkey infrastructure rollout services, Nu Tek also provides technical support services and operation and maintenance to its clients. The company has executed projects in all the 23 telecom circles in India through its workforce of over 1,000 employees across India. It is also registered with the Department of Telecommunications (DoT) as a telecom infrastructure provider (category – 1).
A subsidiary in Turkey will mark Nu Tek’s foray into the overseas markets. The Middle East operations of Ericssion AB, Dubai, will also be serviced by the company. It is in the process of acquiring companies / entities in the US that will compliments its requirements. Work orders of a Rs 4.82-crore Tata Projects relating to the power sector in Rajasthan and Orissa are under execution.Operating in high-growth telecom infrastructure services sector, seeing a massive expansion plans by all telecom services providers, especially in small towns and rural areas, offering good business opportunities in the coming years. With mobile number portability to be implemented soon, existing telecom operators will be forced to improve the on-road and in-building coverage by improving/sustaining their network infrastructure to retain existing subscribers. The imminent arrival of third generation (3G) technology would lead to an increased demand for towers/telecom sites. BUY AT CMP FOR TGT. OF  Rs.5 / 10 / - .Invest a small amount .

Sujana Metal Products Ltd. --------- BUY CMP 3.5 , TGT 10++

Sujana Metal Products Ltd earlier known as Steels Steels Ltd (SSL) was incorporated on 2 May '88 as a private limited company and was converted into a public limited company on 4 Apr.'92. The company was promoted by Y S Chowdary, V Malakonda Reddy and others. Y S Chowdary is the Chairman & Managing Director. Other group companies include Sujana Industries, Sujana Corporation, Sujana Holdings and Sujana Pharma. The company manufactures steel and re-rolled steel products. The products of the company are mainly for construction and industrial use and they enjoy a very good demand. The company's new hot re-rolling mill for the production of additional 1,25,000 tpa of steel products at Gummidipundi,Chennai was successfully completed. The company's new Hot Re-rolling Mill for the production of 1,25,000 tonnes per annum has been transferred to M/s Padmini Steel Corporation Ltd, a subsidiary company, production in this unit was started by the last quarter of 1997. The company modernised its Re-rolling Mills by way of increasing its manufacturing capacity to 110000 TPA at an cost of Rs 36 crores. The company has taken up Wind Farm Power project for 2 MW capacity in Ananthpur Dist. A.P. at a cost of Rs.843 lakhs and has met with financial assistance from IREDA and Equity. The company has already acquired five companies including the two existing plants in just 12 months. Three more companies are being evaluated for acquisition in Chennai, Hyderabad and Visakhapatnam, and more acquisitions would be made in the next three years to cater realty and infrastructure markets in South India .BUY THIS STOCK AT CURRENT PRICE OF Rs.3.5 OR BELOW FOR A TARGET OF 10+++ .

Orient Green Power Company limited (OGPL) ... CMP 10/- .... BUY a Multibagger in future 55++

Orient Green Power Company limited (OGPL) is a leading independent renewable energy power producer in India.They are the largest independent operator and developer of renewable energy power plants in India based on aggregate installed capacity. Currently their portfolio includes biomass, biogas, wind energy and small hydroelectric projects at various stages of development. As of March 31, 2010, their total portfolio of operating projects included 193.1 MW of aggregate installed capacity, which comprised 152.6 MW of wind energy projects and 40.5 MW of biomass projects. Their portfolio of committed and development projects included approximately 815.5 MW of prospective capacity, which comprised an estimated 622.0 MW of wind energy projects, 178.5 MW of biomass projects and a 15.0 MW small hydroelectric project. They are one of the top two independent operators and developers of wind farms in India based on aggregate installed capacity. Our wind energy business focuses on the development and operation of wind farms in India, Europe and South Asia. Our currently operating wind farms are located in the states of Tamil Nadu and Andhra Pradesh, which are among the top four Indian states with the highest wind potential and which have favorable incentives for renewable energy companies. Biomass power business focuses primarily on the development and operation of multi-fuel biomass-based power plants that generate electricity from agri-residues and waste from agriculture crops, forestry and related industries, such as rice, mustard and soya bean husks, straw, cotton and maize stalks, coconut and ground nut shells, wood chips, poultry litter, and bagasse. We target regions with sufficient availability of biomass, favorable incentives for renewable energy companies, attractive tariff structures and a shortage of electricity supply. In its endeavor to have a balanced portfolio of renewable energy assets, OGPL would focus on Small Hydropower as another growth area. As a strategy, the company would undertake Small Hydropower projects through joint ventures so as to benefit from the experience of joint venture partners. To start with the company is implementing a Small Hydel plant with 15 MW capacity at Orissa through a joint venture company - Pallavi Power and Mines Limited.

Hindustan Copper Ltd.....Buy for long term investment

Hindustan Copper Limited (HCL), a public sector undertaking under the administrative control of the Ministry of Mines, was incorporated on 9th November 1967. It has the distinction of being the nation's only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products. The Company markets copper cathodes, copper wire bar, continuous cast copper rod and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate and sulphuric acid. More than 90% of the sales revenue is from cathode and continuous cast copper rods. In concluded financial year 2006-07, as per provisional estimates, the Company has earned a all time highest net profit pf Rs 331 crore (~USD 75 million ) against a sales turnover of Rs 1800 crore (~ USD 420 million). HCL's mines and plants are spread across four operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra.

MOSER BAER......CMP 14/- ....Buy for long term

Moser Baer, headquartered in New Delhi, is one of India's leading technology companies. Established in 1983, Moser Baer successfully developed cutting edge technologies to become the world's second largest manufacturer of Optical Storage media like CDs and DVDs. The company also emerged as the first to market the next-generation of storage formats like Blu-ray Discs and HD DVD. Recently, the company has transformed itself from a single business into a multi-technology organisation, diversifying into exciting areas of Solar Energy, Home Entertainment and IT Peripherals & Consumer Electronics. Moser Baer has a presence in over 82 countries, serviced through six marketing offices in India, the US, Europe and Japan, and has strong tie-ups with all major global technology players. Moser Baer's products are manufactured at its three state-of-the-art manufacturing facilities. It has over 6,000 full-time employees and multiple manufacturing facilities in the suburbs of New Delhi.BUY .

Steel Authority of India Limited (SAIL)..... Buy for investment CMP 80/-

Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being India's second largest producer of iron ore and of having the country's second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.This stock is available at a very attrative price of 80/-..Buy for 4-5 years .

ABAN OFFSHORE LTD. ......CMP 337 /- ...Buy for long tem

The Company is engaged in providing drilling oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad. The Company's primary segments are offshore oil drilling and production services and wind power generation. The Company possesses 20 offshore assets including 15 jack-up offshore drilling rigs, two drill ships, one floating production platform and a jack-up rig and drill ship each on bareboat charter.Aban Offshore Limited (AOL) was established in 1986 when Indian entrepreneurs were encouraged to provide offshore drilling services to the Oil and Natural Gas Corporation Ltd. (ONGC) to meet the growing needs of a vibrant economy. AOL launched its first contract drilling service to the ONGC in 1987 with two modern jack-up drilling rigs acquired from the USA.AOL currently possesses twenty offshore drilling and production units spiraling us to a prestigious position among the top ten offshore drilling asset owners in the world. Buy for long term 3-5 yrs for a appreciation of minimum 4-5 times from current levels of 337/-

UNITECH CMP 17/- ..BUY FOR LONG TERM

Established in 1972, Unitech today is India's leading real estate company with projects across the country. Unitech is known for the quality of its products and is the first real estate developer to have been certified ISO 9001:2000 certificate in North India. The Unitech brand is well recognised in India and was once again conferred with the title of ?Superbrand? by Superbrand India in 2010. Unitech has the most diversified product mix comprising Residential, Commercial/Information Technology (IT) Parks, Retail, Hotel, Amusement Parks and Special Economic Zones (SEZ). The Company is also the recipient of the CW Architect and Builders Award, 2008 for being one of India's Top Ten Builders. Unitech has long partnered with Internationally acclaimed architects and design consultants including SOM(USA), BDP(UK), Maunsell AECOM(HK), MEA Systra(France), Callison Inc.(USA), FORREC(Canada), SWA and HOK(USA) for various projects.BUY AT CMP 17/- ..FOR LONG TERM TARGET OF 100++++ 

Lanco Infratech Ltd...... CMP 9/-.....A Future Multibagger

The company’s operations can be broadly be split into 3 broad categories:

• Core EPC business /Power business
• Real Estate
• BOT

Lanco’s internal orders (power projects) constituted a significant portion of the total Order book. The company’s external order book is diversified across the Road, Infrastructure and Transmission-line segments. If we have to believe the market grapevine, Lanco Infratech is likely to hive off power business into separate entity and will list the company in 2012.

Lanco Infratech Limited (LITL) EPC Division was recently awarded a Prestigious EPC Contract by a Moser Baer Group Company, for their 2 x 600 MW Coal Based Thermal Power Project through ICB.The Scope of Contract includes Complete Main Plant and BOP Package including Civil and Structural Works on Engineering, Procurement and Construction (EPC) basis. The Contract is worth Rs. 4,100 Crores..Lanco intends to have 15,000MW capacity operational by 2015. The value of the power portfolio is estimated to be close to Rs100 bn. Even if we were to discount this valuation by 10 per cent then the same translates roughly into Rs.38 per share

Four year topline CARG was 61.46 per cent and 4 year bottom line CARG stood at 46.41 per cent. Topline which was hovering around Rs.541 crores in FY07 shot up to Rs.5937 crores in FY10. PAT which stood at Rs.73 crores in FY07 spiked to Rs.486 crores in FY10. During IHFY11, the company churned total income of Rs.4167 crores and PAT of Rs.318 crores. [ figures for corresponding period of previous fiscal Rs.4121 crores and Rs.285 crores ]

The company has an Equity base of Rs. 238 crores and its Reserves were to the tune of Rs.2922 crores. The Promotors holding is 67.95 per cent and Institutional Holding is around 24.2 per cent. Which means that 92.15 per cent is in strong hands. So why not clutch these strong hands by buying a pie in this company. Besides, the gearing ratio is less than one which means you are buying into a company whose operating risk profile is manageable as company has enough leeway to take on more loans when the situation warrants to do so.