Money Bol

• BSCL, an agro-chemical company, is subsidiary of the Euro 35 billion Bayer AG• Its business is divided into crop protection, environmental science and bio-science• Per hectare consumption of pesticide in India is merely 0.48 kgs, lower than 5.0 kgs per hectare in the US and again less than 10.0 kgs per hectare in Japan• With its strong R&D, BSCL continues to offer new products to its customers• The Company derives nearly 80.0% of its exports revenue from its Bayer AG group companies due to the cost advantages • New products’ launch, outsourcing from parent and low pesticide penetration will drive the future growth of the Company• Despite poor rainfall in H1FY10, the Company registered a strong performance• Its profit in H1FY10 is Rs. 109.42 crore higher than Rs. 94.46 crore posted for FY09• The Company has shut down its Thane plant spread over 108 acres of land, valued around Rs. 1,000.0 crore • The sale of land could generate huge cash reserves for BSCL• The stock could be bought at current levels with one year target price of Rs. 632.0

Initiating Coverage with BUY:  Joining the Economic Recovery

Economy swings back on the recovery path: The Indian economy grew 7.9 per cent during the July-September period — its strongest in six quarters. The growth achieved beat most forecasts and prompted experts to revise their full-year growth projections. This will certainly lead to increased employment opportunities, and [...]

The Baltic Dry Index (BDI) has clocked its highest weekly gains this year and was at its yearly highs at 4381 up 161 points or 3.85%
The Baltic Dry Index has been on a rise since 14 consecutive sessions and has gained more than 60% in the last one month
Reasons
This has come mainly due to an [...]

• The recent recovery in industrial growth and in the real estate sector augurs well for Indian steel makers and the resultant rise in demand is already evident. India and China are two markets where steel units are operating at quite high levels of capacity utilization; 86% for China and 80% for India, compared with [...]

At the current market price of Rs 522 the stock is currently trading at a trailing twelve month P/E of around 12, despite its earnings growing at an average of around 60%, over the last four quarters and good dividend payment track record and a dividend yield of over 4%

Hence, we maintain our BUY call on the stock with a year DDM based price target of Rs 625.

India’s largest manufacturer of motorcycles, Hero Honda Motors second quarter results were ahead of the market’s expectation mainly on account of better margins.

At the current levels it makes sense to go short on the Indian Sugar stocks, which have already risen by a handsome amount (YTD), because if sugar prices will correct, its inevitable for the stocks to follow the same trend.