Den Networks Ltd. ..CMP 42... BUY

DEN Networks Limited (DEN) is among the leading cable television distribution companies in India. It is an initiative conceived, created and driven to focus on changing the cable distribution landscape in the country and deliver superior value to customers through convergence of technologies. The company is promoted by Sameer Manchanda, an industry veteran with over 20-years of experience in media & channel distribution. Raghav Bahl Promoter, Network18 Group, is a director of the Company....A long term buy with 6-7 times appreciation expected from CMP of 42 ...BUY

Steel Strips Wheels Ltd.............CMP 255 .Buy for long term 3-5 yrs .

Story:Steel Strips Wheels (SSWL), a part of the multifaceted Steel Strips group, is engaged in manufacturing wheel rims for Cars, LCV, CV’s & tractors. SSWL started commercial production from 1991. The company is armed with the latest know-how, manufacturing automobile wheel rims at its state-of-the-art manufacturing unit at Chandigarh, Chennai & Jamshedpur. The company is also setting up a new plant in Pune which is expected to have a capacity of 5 mn wheel rims. The plant is expected to complete in FY 2013. The Pune plant will be used to manufacture wheel rims for agricultural vehicles to the tune of 2 mn wheel rims. While the rest 3 mn capacity will be used to manufacture car wheel rims. This plant will provide significant growth opportunities to the company.It is increasingly being recognized as a reputed global player in the development and production of steel wheels for OEMs.SSWL has recorded a strong topline growth consistently over the past three years growing at a CAGR of 28 per cent while EBITDA and operating profit increased at a CAGR of 16 per cent and 10 per cent respectively over the same period.I expect the company’s sales and profitability to continue to remain strong on account of expansion plans and constant flow of orders.  While PAT is expected to grow at a CAGR of 90% during the same period.At present price of 255 its quoting at attractive valuations of less than 7 times its fy12 earnings.Assigning a PE of 10 gives a figure of 350 odd rs.There were recent reports of the TATA group looking to increase their stake in the company.If that happens expect the steel strip counter to buzz bigtime in the bourses.The company has been expanding capacilities,putting up plants,adding clients,increasing sales quarter after quarter.Considering all these its one of the best bet in the auto ancillary sector.A great buy.

Prakash Industries Ltd. .......Buy for long term CMP 58/-

Prakash industries Ltd , part of Surya Roshni group was started in the year 1980 by Sh. B.D.Agarwal , Founder Chairman of the company and was taken to the present stature by continuous efforts and vision of Sh. V.P.Agarwal, Chairman & Managing Director of the company. . This is the zeal and excellence of the Chairman & Managing Director , which has taken the company to new heights. He has also been honored with being one of the most innovative industrialist in India. The integrated Steel plant of the company is located at Champa , Distt Janjgir, Champa State of Chhattisgarh. The company has setup Rotary Kilns based on SL/RN technology of Lurgi ,Germany Recognizing the potential to tap the waste gases let out by the Sponge Iron kiln, the company also installed a power Co generation plant with Waste Heat Recovery Boilers in collaboration with Lurgi ,Germany. Installing first Boiler in the country based on utilization of hot gases itself is a mile stone for the company and is a part of company's contribution for harnessing energy from waste resources. In yet another planned move towards self reliance and ensuring the uninterrupted supply of consistent quality of Iron ore for the Sponge Iron Kilns , company has set up a Crushing and Screening plant at Koira , Distt- Sundargarh in the state of Orissa.