Stocks to watch

As long as our money doesn't make money for us, we are dependent on someone for our sustenance. As long as our budget depends upon the month-end salary, we can’t have everything in life. Investment, if done intelligently, can be one of the easiest way to get rich fast. This section of the blog will keep you updated with the crisp news about the companies and help you to take better decision about investing.

This week was quite significant with the clearance from SEBI about the P-notes and the FII bringing dollars back to exchange. BSE's 30-stock index, Sensex, witnessed an all time high till now and closed at 19,243. In the absence of any bad news in coming days the trend is expected to continue. The inflation maintained its 5 years low position at 3.07% in the week ended 26'th October, and that dilutes the prediction of any hike in CRR by RBI in the near future. This helped the banking sector accumulate significant gains and in the outlook in near future is strong.

There are many large cap stocks which are moving the market quite often and always in news, but in this section we will bring to you those stocks which are not heard much, but all set to be future star. The list starts with -

RMTL is a Gujarat based company manufacturing welded and seamless stainless steel(SS) pipes & tubes, carbon steel(CS) LSAW, HSAW and ERW pipes. It is the only company in the industry having presence in both CS and SS pipes. The company has embarked on a growth trajectory with its Greenfield expansion in Kutch, backward integration into Hot SS extruded-mother pipes, addition of spiral SAW and wind power capacity. Sales of the company has grown by hopping 630% in last 5 years. Share price has gone up by 260% in from Nov ’06 to Oct' 07 At the CMP of Rs 1257 (as on 26th October) the stock is trading at 11.75x FY08E and 9.11x FY09E.

At present the outlook of this company remains very strong from the major markets namely Refinery, Petrochemicals, LNG, Capital Goods Industry and Power Plants. With a robust order book position of around Rs.5 bn which will be executed within next 6-8 months, RMTL will continue to get healthy order book in FY08E and FY09E as well mainly because of big capex plans announced by oil and gas industry players. Undoubtfully, the RMTL stock has been performing very well on the bourses and is has more than doubled in a year. Seeing the valuations and current trend it can easily cross Rs 1800, a 54% upside from current level. More information at Rediff Money.

Disclaimer: FINMANAC has taken due care and caution in compilation of data for its blog. The views and investment tips expressed above are the personal view and should not be taken as only base for any investment decision. FINMANAC advises users to check with certified experts before taking any investment decision.