Research Calls: Kesoram Industries

Networth Stock Broking recommends a "buy" on south-based Kesoram Industries. The company has planned to expand its capacity by 1.65 million tonne (MT) at its Sedam plant in Karnataka at a cost of Rs 425 crore, takning its total capacity to 4.55 MT by December 2006.

The move is at an opportune time when the demand supply gap is tight in the south leading to better realisation. Its cement unit (existing capacity of 2 MT and expansion of 1.65 MT) located in Gulbarga region is in an ideal location to cater to the southern as well as the lucrative western market.

Era Constructions

Kotak Securities, is bullish on Era Constructions. The company is set to benefit in a major way from the expected growth in the infrastructure sector.

Its order book is Rs 945 crore, six times its FY05 revenues to be executed over the next 2-3 years. The company has recently concluded its GDR offering of $ 30 million. Its revenues are expected to grow at a CAGR of 85 per cent over FY05-08 and net profits at a more robust CAGR of 127 per cent.

Vimta Labs

Brics PCG Research is reviewing Vimta Labs. The company has made a preferential allotment of 8,25,432 shares of face value Rs 10 (equivalent to 4.13 million shares of face value Rs two) at a premium of Rs 940 to fund its future organic and inorganic growth.

Hyderabad-based Vimta Labs is a multi-disciplinary contract research and testing services company. It operates in the areas of clinical research, pre-clinical (animal) studies, clinical reference lab solutions, environmental assessment and analytical testing of a wide variety of products.