Why are these smallcaps buzzing?

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 13/02/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Balaji Telefilms |

Smallcaps are on a roll - Balaji Telefilms is up over 18% on substantial volumes. Spel Semiconductor is also up 9.5% and the volumes are at 3.7 lakh shares. CNBC-TV18 gives a perspective on the stocks.

 

Spel Semiconductor is the largest IC Assembly & test subcontractor in India and is 100% export oriented. It reported a profit of Rs 5.8 crore and a cash profit of Rs 70-75 lakh/month.

 

It has an investment budget of USD 286 million spread over five years and has also increased its plant capacity to 330 m units. It has plans of overseas listing after two-three years and a Special Economic Zone. Their growth plan includes five new packages, with the expansion of three existing packages.

 

Another smallcap, Balaji Tele has gained more than 5% in today's trade, and its volumes too are more than 20 times its 10-day average.

 

If one looks at the company's Q2FY07 numbers, YoY, its net sales was up 16% at Rs 81.5 crore versus Rs 70 crore. Its net profit was seen at Rs 19 crore versus Rs 17 crore. OPM was at 36% versus 40%. The company's FY07 EPS is seen at Rs 10. Also, its P/E is of 16x FY07E EPS and 13x FY08E EPS.

 

The company's realization per hour from commissioned programming is up 14% to Rs 25 lakh. It has maintained production of 297.5 hours of commissioned programmes. It has also invested Rs 25 crore in production and post-production equipments and studios.

 

The company's revenues from commissioned programming up 26% at Rs 76.5 crore. In fact, commissioned programming contributed 93.9% to revenues, while sponsored programming contributed 6.1%.

 

Balaji Telefilms has recently started Dubai office to produce serials for Geo TV and Ary Gold.