The second quarter result of KCP is far above market expectation as it has made sequential growth in every parameters as under: 1.OPM% 35.93 28.20 2.GPM% 34.84 28.55 3.NPM% 21.96 17.08 4.EPSRs. 16.79 11.67 The annualised eps works out to Rs.67 per share which means this stock is available at less than three times of PE ratio making this stock a great buy at the current price of Rs.265. Just hold this stock and consider buy on decline on strong support with target price of Rs.550 in mid to long term. Such stocks shall make investors rich in time to come. Three cheers.... ...

R u sure Mr. Gandhi that it would touch 760 levels again...my huge investment is blocked in this stock.....

there is nothing superb.forex loss not treated.equity dilution up to 50%.stock pehnaa diya...

KCP - Target 760 in 12 months timeframe...

Superb results announced by JBF. Going higher, target 200...

If you missed Kwality enter Vadilal Industries immediately for Target 400...

Mumbai-headquartered Usher Agro Ltd has signed a Memorandum of Understanding (MoU) with Satake Corporation, Japan for expansion of Rice Milling capacity by another 1 million tonne.

Under the arrangement, Satake will provide the plant & machinery for an interest free credit period of three years.

According to sources, the MoU will help Usher Agro to extend its technical knowledge for better use and production of by-products of rice. The company will use exclusive rights for this technology in India for a specified period.

Leading private equity (PE) firms such as Blackstone, TPG, Blue River Capital, Actis and Silk Route are eyeing more than a 40% stake in
agri-processing firm Usher Agro, it is learnt.

The deal, if concluded, will pave the way for the PE investor to acquire management control with a majority stake. In that case, it will be third instance where a PE investor is taking control of a listed company in the recent past.

Broad contours of the plan suggest that Usher will raise funds by issuing new shares to the PE investor.

It will also sell shares of its four subsidiaries in the power, logistics, credit finance and oil and food segments. The promoters and some existing investors plan to sell some portions of their equity to encash their holding.

The total fund mobilisation is pegged at Rs 250-300 crore. On Monday, the shares of Usher Agro were up by 3.63% to close at Rs 201 on the Bombay Stock Exchange (BSE), putting the market capitalisation at Rs 360 core.

When contacted, Usher Agro managing director Vinod Kumar Chaturvedi said, “We have outlined a huge expansion plan for Usher Agro and its subsidiary. We are in the process of raising funds.

We are weighing various options including PE investments. Various funds have shown keen interest. However, we cannot reveal any specifics now.” The company is implementing a Rs 300 crore expansion plan.

“Now, the valuations are comparatively low. We see a strong potential in the Indian agro sector. We are evaluating the Usher Agro proposal,” said a senior official with a PE fund.

If the deal goes through, the successful PE investor will have to launch a mandatory 20% open offer, which may scale up the buyer’s stake to as high as 60%. The promoters stake will shrink on expanded equity.

At present, the promoters hold around 38% stake in Usher Agro, while individual investors and corporate bodies together control a 43% stake in the company. Foreign Institutional Investors hold 14.50% equity.

Usher Agro is a processor of non-basmati rice and wheat with an annual installed capacity of 57,600 MT and 75,000 MT respectively. The company plans to add 1.94 lakh MT of rice milling capacity by 2008 and raise it by another 1 MT by January 2010.

Post the expansion, Usher may emerge as the second largest rice processing company. Analysts said that basmati rice constitutes just 2% of the total industry volume in India.

The lack of scale in the basmati space prevents basmati manufactures from moving further downstream in the rice processing value chain which can substantially improve the profitability of the rice processor.

Usher also plans to scale up its wheat processing capacity by another 3 lakh MT per annum by 2009. Usher has formed an associate company, Usher Eco Power to set up a 16 mw husk-based power plant at its planned 1 MT rice processing facility at Chatta in UP....