Welspun Gujarat - Where the stock heads?

Welspun Guajarat is one of the hottest stocks now in the mid-cap sector. The company is the seconda largest line pipe company in the world. The thing that keeps the stock rocking is its order book. The company recently announced that it had reached the landmark of Rs.10,000 cr in its order book. This ensures the better cash flow for Welspun in coming years, atleast throughout 2010.

The company's stock was at around Rs.50 in March/April this year, now trading at Rs.280.

Strong fundamentals such as impressing order book, strong financial results, good management, global presence,etc.

Welspun reported that its net profit has increased by more than 90% Year-on-Year to Rs.138 Cr for the quarter ended June 30, 2009.

EPS went up by more than 200% Y-o-Y to Rs.7.38 for the same quarter.

The company is expected to announce its results for the quarter ended Sep 30 with the same level of growth.

This is one of the best picks in the market. It has already reached its peak in the market, trading at Rs.380.

Anyone who wants to invest for atleast 1-2 years, this is the best pick!

Indian Stock Market - Back on track?

Indian stock market benchmark index, Sensex, is doing better than most of the developed economies' stock markets. Sensex faced some sluggish movements after the budget, but now the market seems to be bouncing back.

There are lot of small and mid cap stocks in Sensex which are still undervalued. Here are some of the stocks that gave more than 100% returns in last six months:

1. Crompton Greaves

2. Essar Shipping

3. GVK Power

4. Ispat Industries

5. Jaiprakash Hydro

6. Steel Authority of India (SAIL)

7. Sujana Towers

8. Tanla Solutions

Stocks that are doubled or tripled in last six months:

1. Punj Lloyd (217% increase)

2. Wellspun Gujarat (311% increase)

Wellspun Gujarat - a value stock?

Wellspun Gujarat, a leading manufacturer of steel pipes in India, has announced a very attractive increase in net profit for the quarter ended June 30, 2009. Profit was up by 94% to Rs.138 crore.

Current stock price of Wellspun is around Rs.205.

Moreover Wellspun recently got an order worth Rs.960 crore. Backed by these strong fundamentals and healthy outlook for next financial year, Wellspun Gujarat' seems to be a good pick.

Sensex - Outlook

Supported by a strong Q1 results by most of the Indian companies and strong growth in FY2009-10, Sensex, is expected to be in the range of 16000-17000 in Q3 2009.