Over the last 2-3 quarters, ITD Cementation (Code: 509496) (Rs.150.55) has been reporting encouraging performance with a sharp improvement in net profit margin (NPM). For the June 2011 quarter, its revenue grew by 30% to Rs.335 crore PAT zoomed 900% to Rs.4.65 crore from Rs.0.50 crore in the previous corresponding period and it posted an EPS of Rs.4 for the quarter. Even for the 6 months ended 30 June 2011, it recorded 30% rise in topline to Rs.679 crore while net profit shot up 70% to Rs.8.60 crore posting a half-yearly EPS of Rs.7.50. It is an MNC company with 70% stake being held by ITD (i.e. Italian Thai Development), which is the largest infrastructure construction company in Thailand and one of the largest civil engineering contractors in Southeast Asia. Its business covers a very wide range of activities in the construction industry from marine construction to construction of highways, bridges and specialist structures, mass rapid transit systems, urban transportation projects, tunnelling and small hydro power projects as well as industrial construction.  It has executed contracts at various major and minor ports for the construction of jetties, docks, harbours, liquid terminals etc. Being a major business area of its operations, it has developed cost effective methods of design, engineering and execution. In 2010 it bagged projects for the execution of underground works for the Kolkata Metro and elevated sections for the Jaipur Metro. It is also into other projects like piling work for construction of a Refinery at Paradip, construction of a major tunnel near Jammu, large power projects & marine projects at Jaigad, Mundra and Karaikal Ports. The value of new contracts secured by the company in CY10 was round about Rs.2000 crore. Backed by the strong financial & technical support from its parent company, it is expected to end CY11 with a revenue of Rs.1375 crore with PAT of Rs.16 crore i.e. an EPS of Rs.14 on its equity of Rs.11.50 crore. At the current market price of Rs.150, the share is trading at 50% discount to its book value of over Rs.300. However considering the market sentiment, its share price may fall another 15-20% from current levels which will be a good level to start accumulating.

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Andhra Petrochemicals (Code: 500012) (Rs.28.60) is another company that has been reporting excellent results since the last 2-3 quarters. Last year, only it completed the modernisation-cum-optimisation of the expanded oxo-Alcohols plant and commenced commercial production with effect from 1 May 2010. After expansion its installed capacity stands enhanced to 73,000 TPA from the 39,000 TPA and it is now capable of meeting around 55% of the country’s total demand for oxo-alcohols as against 27% earlier. Its enhanced capacity coupled with the efficiencies associated with the latest technology has lead to an improvement in its bottom line. The company produces oxo-alcohols like butanol, 2 ethyl hexanol and iso-butanol. These three products have varied applications in diversified industries like coating, plasticizers, photography, rubber, textile printing, ceramic, PVC, adhesives, stabilizers, fuel additives, surfactants, mining, stabilizers, solvent extractions, oil floatations, agricultural chemicals, machinery lubrication etc. Since the oxo-chemicals industry is a technology and capital intensive industry, there are very few manufacturers in India. It, however, faces competition from cheaper imports from South East Asia and the Middle East. It employs the latest state-of-art technology from M/s. Davy Process Technology, London, U.K. For Q1FY12, it reported terrific set of numbers as sales more than doubled to Rs.157 crore while net profit almost trebled to Rs.12.70 crore posting an EPS of Rs.1.50 for the quarter. Accordingly for the entire FY12, it is poised to clock a turnover of Rs.600 crore with PAT of Rs.55 crore i.e. an EPS of Rs.6.50 on its current equity of Rs.85 crore. Investors can buy this stock at declines but considering the global conditions and sharp volatility in crude oil prices, its actual performance may vary significantly from these projections.

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Steel Strip Wheels  (Code: 513262) (Rs.272.15) is India’s largest manufacturer of automotive steel wheel rims and commands a dominant market share in this segment with an installed capacity of 16 million steel wheels. Its product range comprises wheels for passenger cars, multi utility vehicles, tractors, LCV (light commercial vehicles), HCV (heavy commercial vehicles), OTR (off-the-road) vehicles, two-wheelers and three wheelers thereby catering to entire automotive sector. Since, there are only a handful of organized large scale steel wheel manufactures in India, the company faces low competition and thus has a better bargaining power. On technology front, it has a collaboration with Ring Tech  Co  Ltd.,  Japan  which a world renowned steel wheels manufacturing company, which is a 100%  subsidiary of Sumitomo Metals Ltd., Japan. Besides, it has a strategic alliance with Tata Steel, Sumitomo of Japan and GS Global Corporation South Korea, who together hold around 17% stake in the company. Apart from Maruti, Tata Motors, M&M, Hyundai, Ashok Leyland, JCB, L&T, it has successfully developed relationships with global majors like Renault, Audi, Peugeot, Volkswagen, BMW, Piaggio, Kubota, Kromag, Krone, John Deree, New Holland, Alcar etc. The company operates through three production facilities spread across Punjab, Jharkhand & Tamil Nadu. In the last five years, it has been growing at a scorching pace of over 30% p.a. despite the economic downturn, general recession and financial crisis. This growth was led by increased volumes & consistent expansion undertaken by the company. During 2010-11, it expanded capacity by 25% from 10 million to 12.50 million wheels has already augmented it by 30% to 16 million wheels. Further it is in the midst of putting up a 0.50 million wheels plant in Chennai to manufacture wheels for commercial vehicles. This is expected to begin production by end of the current fiscal. For FY12, it may clock a turnover of Rs.900 crore (up 35%) with net profit of Rs.42 crore (up 40%) which will lead to an EPS of Rs.28 on its equity Rs.14.80 crore. Further, it has the potential to record profit of Rs.55 crore for FY13. A solid bet to accumulate on sharp declines.

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Although Kalpataru Power (Code: 522287) (Rs.118.40) did not report very encouraging numbers for Q1FY12 it is still holding strong in the current market. For Q1FY12, its revenue increased by a modest 7% to Rs.585 crore whereas net profit declined by 10% to Rs.33.60 crore posting an EPS of Rs.2.20 for the quarter. It is one of India's largest engineering, procurement and construction (EPC) companies that provide integrated services for the power transmission & distribution industry in India and overseas, particularly in Africa, Middle East and Southeast Asia. The company is primarily engaged in design, testing, fabrication, galvanizing, errection & construction of towers up to 1200 kV. Besides, it also engineers, procures and constructs distribution networks in rural India, electrifying villages and hamlets, which entails the construction of 33 kV substations and 11 to 33 kV lines and poles. Further, it even executes EPC projects for laying cross country gas & oil pipelines & city gas distribution network. In February 2010, it ventured into the railway business offering services in laying of new railways lines, metro railways, private railway sidings, dual gauging, signalling & telecommunication, overhead electrical (OHE) & general electric works. Moreover, the company has interests in biomass energy generation, civil construction business, logistics & warehousing business and real estate development through its several subsidiaries. In April 2011, it bagged a Rs.950 crore order from Power Gird Corporation and the Indian Railways whereas its international division won Rs.1350 crore worth of orders including a Rs.450 crore project from Maharashtra State Electricity Transmission Co. As of now on a standalone basis, the company has a massive order book position of Rs.5900 crore thereby giving strong revenue visibility for the next 6-8 quarters. On the other hand, on a consolidated basis (i.e. including JMC Projects), unexecuted order book stands at Rs.10,600 crore. To fund its growth plans the company raised Rs.450 crore in May 2010 via QIP placement at Rs.214.84 per share having a face value as Rs.2 per share. At the CMP of Rs.120, the stock is trading comparatively cheap and can be bought at declines.