Visaka Industries

is basically a play on rural infrastructure. This company manufactures cement asbestos sheets and also reinforced cement boards. The company also has a textile division. It has got six manufacturing plants for making asbestos products and two manufacturing plant for garments.

If you take a look at the financials of the company. FY09, the sales of the company were about Rs 575 crore, profit after tax of about Rs 36 crore. This was after paying a tax of about Rs 20 crore. EPS for FY09 was about Rs 23.

If you look at the first quarter sales are up by about 10% to about Rs 190 crore. Profit after tax for the June quarter is about Rs 26 crore as against Rs 36 crore for the full year last year. Tax payment for this quarter is about Rs 12.5 crore.

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Kalgold Gold Mine South africa

So you have a stock with the market cap of about Rs 200 crore. Cash profits for FY10 are expected to be around Rs 70-75 crore. So you are getting a business to market cap to cash ratio of less than three years which is under valuation. Dividend yield is also pretty good at about 3.5-4%.

Sanju verma says

 “ I think we are still in the first stage of the bull rally of what I believe will be a multi-year bull rally for sure as happened in 1982 i.e. not to say we will continue hitting new highs every second fortnight. I think we will take a breather if you look at what happened in 1958 globally and then again globally what happened in 1974-1975 after a stellar run in both these years, markets moved horizontally for the next year or so. But if fundamentals do sustain then I think we will certainly see what happened classically in 1982.”

 

On Deccan Gold Mines

Deccan Gold Mines is the first private sector gold mining company and rather the only gold mining company listed on the Indian stock exchanges. The company has got blocks spread across four states. The total area of the blocks is more than 10,000 sq kilometers

Talking of gold mining business gold mining company has to pass through three stages before they can commercially start mining gold. The first stage is calledreconnaissance permit where they seek the approval of the authorities to do exploratory activities on say 200-300 sq kilometer of the block. Second stage isprospecting license wherein they short list about 25 sq kilometer or 30 sq kilometer out of the total area where they would like to do the further exploratory studies and the third stage is called mining lease where in they short list about half a sq kilometer or one sq kilometer where they would actually like to drill and take gold out or rather rock out and then refine it and produce gold.

I am not advocating buying the stock just now at upper circuits. I would not advise doing that but I think one can keep an eye on the stock. I would ideally believe that Rs 25-30 levels would be a good level to get into the stock but one can chose to do staggered purchases for this stock. Rather than thinking that they will buy everything when the production starts, start accumulating at this point of time. I would like to say that this is the one for a very high risk investor because of the uncertainties involved in the business and also somebody with a time frame of about 3-5 years.