Indian market investment ideas

BHARAT FORGE Q1FY11 Is Expected Good Stay Invested

noreply@blogger.com (Bhagwat) — Mon, 12 Jul 2010 07:12:00 +0000

BHARAT FORGE Q1FY11 Is Expected Good Stay Invested,

The second largest forging company in the world, Bharat Forge.
It scaled new high of Rs.328.55, since the buzz around this company remains very positive.

Almost all brokerage houses have put out a ‘buy’ for this stock.

The company is making moves to increase its presence in the non automotive sector, which is largely related to energy, infrastructure, marine and railways. The company has entered into deals with Alsthom and Areva and both these are expected to start adding on to the revenues from 2012.

GLOBAL MARKETS News 5080-5180 TRADING Nifty

noreply@blogger.com (Bhagwat) — Wed, 21 Oct 2009 12:00:00 +0000

Today’s Quote:

A successful trade gives you unlimited pleasure, only when it comes after a failure/lesson

Nifty Outlook

INDIAN MARKETS OUT PERFORMING GLOBAL MARKETS TODAY AND FOR DOWN TREND NIFTY HAS TO SUSTAIN BELOW 5080. AS INDIAN MARKETS SHOWED STRENGTH IN FIRST HALF TRADING HOUR TODAY THEREFORE FRESH SELLING REQUIRES TODAY FOR NEXT DOWN MOVE. AS PER MY VIEW 5080 SHOULD BE WATCHED FOR NEXT TREND CONFIRMATION. IF NIFTY SUSTAINS BELOW IT TODAY THEN TODAY DOWN MOVE AND RED CLOSING WILL BE SEEN OTHERWISE INDIAN MARKETS WILL CONSOLIDATE FOR NEXT UP MOVE WITHIN 5080-5180.

Smart Note

THE NEW RULES OF MONEY

In 1971, the rules of money changed. In 1971, President Richard Nixon took the U.S. dollar off the gold standard. Today, 37 years later, the U.S. dollar has become toxic as it falls rapidly in value. Recently, The Economist called the dollar’s fall “the biggest default in history,” exceeding those of any emerging market catastrophe. Today the rich get richer as the financial resources of America’s poor and middle class are wiped out. Unfortunately, the poor and middle class have no idea the rules of money have changed. One definition of the word intelligent is: if you agree with me, you are intelligent. If you disagree with me, you are a moron. In my opinion, Steve Forbes is a very intelligent man. It was an honor to be interviewed with him on the economy during the Forbes.com iconference.

As a bonus, in conjunction with that iconference, I offer my views on the New Rules of Money. Before discussing the new rules, I think it’s important that I cover the old rules.

THE OLD RULES:

1. Go to school so you can get a safe, secure job.

During my dad’s time, people did this. They went to school, got a job, and stayed with the
company until they retired. Today, we all know that job security is a myth, especially as jobs are exported. Billions of people in the third world enter the global market competing for your job at a lower wage, and technology wipes out companies that do not stay competitive. Today,
rather than having a job for life, those born after 1970 will probably have four to seven jobs in their lifetime.

2. Work hard, climb the ladder, and earn more money.

The problem with working hard as an employee is the tax laws are written against employees. The more money an employee makes, the higher the percentage in taxes the government takes. Most of us have heard Warren Buffett say that he thought it unfair that he pays a lower percentage in taxes than his secretary.

3. Save Money

Savers are losers, especially if you are saving U.S. dollars. Since 1971, the U.S. has been able to print money faster than the country earns it. This causes the value of savings to erode as prices increase. Adolf Hitler was elected Chancellor of Germany after the middle class had their
savings wiped out due to hyperinflation. Stalin and Mao also rose to power when the previous leaders devalued their money.

4. Get out of debt.

Because the value of the U.S. dollar is falling rapidly, it is important to know the difference between good debt and bad debt. Unfortunately, even the U.S. banks are loaded with bad debt, a.k.a. subprime debt. If you want to become wealthy in a subprime world, it is
important to know how to use good debt to offset the falling value of the U.S. dollar. If they are smart, debtors can be winners.

5. Invest in a well-diversified portfolio of mutual funds through your company’s 401(k).

First of all, Warren Buffett does not diversify. He says, “Diversification is for people who do not know what they are doing.” Second of all, John Bogle, founder of The Vanguard Group and one of the more brilliant minds in investing today, says that mutual fund companies have been ripping investors off. He states that investors in mutual funds put up 100% of the capital, absorb 100% of the risk, and receive only 20% of the rewards. The 80% in investor gains goes to the mutual fund company. On top of that, the Wall Street Journal called the last ten years “the lost decade” because there have been no real profits in stocks for the past ten years.

THE NEW RULES:

1. Keep your daytime job but start a part-time business.

In other words,become an entrepreneur at home. Not only will you learn a lot, but the tax rules of the rich swing to your favor. If your business grows and can replace the income from your job, you may be ready to spread your wings and fly. As you may know, the richest people on earth are entrepreneurs who invest in real estate.

2. Become an entrepreneur.

The world’s most successful entrepreneurs did not go to school nor did they climb the corporate ladder. Many of the most famous entrepreneurs did not do well in school. Some of them are: Henry Ford, founder of Ford Motor Company. Ford could use the old man today. Thomas Edison, the founder of General Electric, was called “addled” by his teachers. Others include Bill Gates of Microsoft, Michael Dell of Dell Computers, Steve Jobs of Apple, Richard Branson of Virgin. Today, for a country to remain competitive, we need more entrepreneurs and fewer employees. With more entrepreneurs and fewer employees, wages could go back up. Unfortunately, most parents still say to their kids, “Go to school so you can get a job.” In other words, many people and our schools program kids to be employees – rather than entrepreneurs.
3. Hedge your money.

Instead of saving money, keep your money liquid in assets that increase in value as the dollar drops in value. Personally, I keep my liquidity in gold and silver ETFs. I buy every time the price of gold or silver goes down. Today, as I write, I believe gold is a good price under $1000 and silver a bargain at under $25. If I need cash in a hurry, I sell my gold or silver ETFs.

4. Use debt as leverage.

I am deeply in debt… good debt. I use debt to make me richer. I could pay off my home, but my effective interest is only 6%. As long as I can earn a 15% or higher return on my money, I’ll invest my money rather than pay off debt. If you are a professional investor, a 50% to an infinite return on your money is possible. If you would like to find out how I achieve an infinite return, read my latest book, Rich Dad’s Increase Your Financial IQ.One reason I do not diversify is because diversification is like going to theracetrack and betting on every horse. The only way you win by diversifying at the racetrack is if the dark horse wins. I would prefer to focus and pick winners. One myth in investing is that higher returns require higher risks. That is a huge myth. As Buffett says, “Risk comes from not knowing what you are doing.”

5. Know the difference between salespeople and rich people.

One of the reasons so many people are in trouble financially today is because they
get their financial advice from sales people. Today, I cringe whenever I hear so-called investment gurus, who are really sales people, recommending the old rules of money. As Warren Buffett says, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from
those who take the subway.” Steve Forbes is a rich person who knows what he is talking about. His column in Forbes magazine, Fact and Comment, is a column I look forward to every month. If you want to grow rich – and stay rich – investing a few moments with Mr. Forbes is a priceless investment of your time.

A FINAL CHILLING THOUGHT

Here are some closing thoughts from Craig Karmin’s Biography of the Dollar: How the Mighty Buck Conquered the World and Why It’s Under Siege: In 2005, U.S. interest payments on foreign debt topped the $100 billion mark for the first time – coming in at $114 billion dollars. That breaks down to $310 million per day, according to Joseph Quinlan, Bank of America’s chief market strategist. This equates to more than $1 million per day for every man, woman, and child in America. Not only is America addicted to foreign oil, America is addicted to foreign capital. This is not healthy, wealthy, or wise. It will not make much difference who is elected as president or if we raise or lower taxes if America, as a subprime nation, does not stop living on borrowed money. At the risk of being redundant: This is not healthy, wealthy, or wise.

'Life would have been far more comfortable if these ifs and buts were not there but these ifs and buts are always there.'

Today’s News

*Asian stocks declined, led by materials and technology companies, on declines in commodity prices and worse-than-forecast U.S. housing starts. Treasuries and the dollar advanced.

*The Hong Kong Monetary Authority may scrap a program that offers mortgage insurance for investment properties as the city’s central bank tries to prevent a real estate bubble.

*World stocks hit a new 12-month high on Tuesday, fuelled by optimsim over corporate earnings and the global recovery after strong results from Apple and Texas Instruments.

*Oil fell in Asian trade on Wednesday as investors took profit after a recent rally sent prices to $ 80 for the first time in a year analysts said.

*To introduce greater transparency in pricing of loans given by banks, a Reserve Bank committee today suggested that the benchmark prime lending rate (BPLR) system should be replaced with a base rate mechanism.

INDIABULLS POWER IPO Price Listing Date IPO Status

noreply@blogger.com (Bhagwat) — Fri, 09 Oct 2009 16:43:00 +0000

INDIABULLS POWER IPO Price Listing Date IPO Status
Indiabulls Power is entering the capital market on 12th October 09, with a public issue of 33.98 crores equity shares of Rs. 10 each, in the price band of Rs. 40 to Rs. 45 per share.
Recent power IPOs have not been very good, like NHPC - still on Rs.33 and Adani Power still at 101,

What are plans from INDIABULLS POWER IPO
has plans of setting up 6,600 MW Power Plants,operational by March 2012,
All the projects has seen financial closure and equity tie up, for its with total capacity,

not advised to subscribe to the shares, beyond Rs. 40, especially for retail investors, it is necessary to be cautious,

in view of Adani Power and NHPC, now available at much better valuations, then this company.

Five Reasons to Invest In Mundra Port

noreply@blogger.com (Bhagwat) — Tue, 22 Sep 2009 07:33:00 +0000

Mundra Port and SEZ, an Adani group company, is currently the only listed non-captive private sector port.
Five Reasons to invest in Mundra Port

First quarter results Net profit was up by a healthy 76% at Rs.170.75 crore.
Its agreement with Maruti, for the export of the A-Star car will pick up once markets in Europe starts picking up, and so business will boom,
Mundra Port is aiming to emerge as the country's largest port by 2013-14 in terms of cargo handling.
It is aiming to cross 100 million mark by 2013-14 to emerge as the country's largest port facility.
There was a 24% rise in total cargo handled at the port at 9.89 mmt.

Stay invested for long term growth, and also good stock to have in ones portfolio.

Five Reasons 2 Stay Invested In Aurobindo Pharma

noreply@blogger.com (Bhagwat) — Thu, 17 Sep 2009 10:57:00 +0000

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.
Five reasons to stay invested in aurobindo pharma

For the first quarter ended 30th June 2009, company registered a total operating income of Rs 852.8 crore, up 25% on a YoY.
In Q1 FY 2009-10, it had 8 ANDA filings in USA, taking the total cumulative filings to155. It also had 13 Dossier filings in Europe in Q1 FY 2009-10 , taking the total cumulative filings to 677.
Acquired Hyderabad-based Trident Life Sciences for about Rs.134 crore.
This acquisition will give Aurobindo an opportunity to enter the injectables business as Trident is building a liquid injectables facility in Medak, Hyderabad,
Aurobindo has acquired quite a few approvals for its drugs from USFDA as well as Switzerland.

A strong company, it's a long term stock for portfolio building.

PUNJ LLOYD A Good Stock to Invest Long Term

noreply@blogger.com (Bhagwat) — Thu, 10 Sep 2009 08:45:00 +0000

Why PUNJ LLOYD A Good Stock to Invest Long Term?
first quarter ended 30th June 2009, revenue increased 12% on a YoY at Rs.2979 crore. EBIDTA was up 40% at Rs.309 crore
In Q1 FY2010, major orders came to the company from Libya, Saudi Arabia, Singapore and South Asia. In the order backlog, infrastructure projects contribute 56%, pipelines 20%, tankage 2% and process plants and others contribute 22%. Geographically, South Asia contributes 17%, South East Asia and Asia Pacific contributes 25%, Africa 37%, Middle East 17%, and the rest of the Europe and the rest of the world contribute 4%.

Punj Lloyd continues to remain a good company and now with the Govt giving more impetus to infra development, the company will be in a position to get more orders. One can take long term positions in the stock. Thanks

IDFC Good infra Stock To Hold On

noreply@blogger.com (Bhagwat) — Tue, 01 Sep 2009 08:02:00 +0000

IDFC A company, which has been on a roll before and after the Budget, IDFC has maintained its performance for the first quarter ended 30th June 2009. It's Net Interest Income (NII) increased by 33% to Rs.922 crore. The increase in non-interest income has been quite substantial, it rose 32% at Rs.217 crore, which is as much as the NII and this is what has boosted the overall performance.
The decision to diversify into asset management also helped. IDFC's asset management business increased 4 times to Rs. 72 crore in Q1FY10. This jump was due to new funds raised private equity, in project equity and on account of the AUM acquired through the acquisition of the mutual fund.
Profit before tax (PBT) increased by 30% to Rs. 372 crore. After accounting for Rs. 97 crore for tax and share of profit in associate company, PAT was up 26% to Rs.272 crore.

FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude.
Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well stay invested and enter at every dip. thanks
Its exposure to tourism and cement sectors has gone up. The biggest concern was IDFCs' exposure to realty. Energy remained the top sector,

GLOBUS SPIRITS IPO Price & Listing Allotment

noreply@blogger.com (Bhagwat) — Mon, 31 Aug 2009 08:05:00 +0000

GLOBUS SPIRITS ipo listing date is Today, With a public issue of 75 lakh equity shares of Rs. 10 each in the band of Rs. 90 to Rs. 100 per share.
The Company is an established liquor player having two distilleries in Rajasthan and Haryana each, with capacity of 144 lakh bulk liters, for each site.
Financial performance of the company for FY09 has also been quite good with sales of Rs. 281 crores and PAT of Rs. 12.93 crores, resulting in an EPS of Rs. 10.55 on its pre - IPO equity of Rs. 12.26 crores. Even Q1 of FY10 has posted good performance with total income of Rs. 92 crores and PAT of Rs. 6.78 crores, giving an EPS of Rs. 5.55 for the quarter. This implies an EPS of Rs. 20 plus, for FY10, on pre-IPO equity and issue now being made at a PE of 5 times, even at the Upper band of Rs. 100.
Promoters stake in the company, post IPO, would be at around 60%, which looks comforting.

Considering all these, issue is recommended even at the upper band of Rs. 100. Thanks

NHPC Listing Price Stay Invested For Long Term

noreply@blogger.com (Bhagwat) — Mon, 31 Aug 2009 07:57:00 +0000

NHPC listing Price analysis; NHPC Ltd. stock will be listing tomorrow and looking to the grey market premium of Rs. 5.50 to Rs. 6 and issue having made at Rs. 36 per share, it is likely to list, at around Rs. 42 per share.
NHPC went public on 7^th August 2009 with an issue of 164 crore equity shares of Rs. 10 each, of which, fresh issue was 112 crore shares, while, offer for sale was of 52 crore shares.
In Retail category, minimum of 175 shares and maximum of 2625 shares were allowed and firm allotment has been given to those who have applied for 700 shares and above. In this category, no applicant avails finance, hence interest cost, on notional basis to them, at 12% per annum, work out to 63 paise, per share of the share allotted.
it is likely to see selling pressure coming in from HNI and Retail category investors, for first 2 - 3 days, which will keep pressure on the stock price and may not allow it to move past Rs. 42. Also, poor listing of Adani Power, has disappointed this class of investors,
Final Advise on NHPC listing Price analysis
stock has long term prospect to give a steady and annualized return of about 15% to 18% from a level of Rs. 42. In Near term this stock will perform less, but stock is likely to move gradually on the lines of NTPC and Powergrid, thanks

Rallis India Limited Invest For Long Term

noreply@blogger.com (Bhagwat) — Tue, 18 Aug 2009 08:07:00 +0000

Rallis India Limited, a Tata group company and a leading agrochemical player in India, kept up its track record and announced another set of good results for first quarter ended 30th June 2009.
Seasonally, the first quarter always shows lower earnings as sowing begins only after the first quarter and hence Q1FY10, keeping with the cycle showed a subdued performance.
Sales were down 5% at Rs.166.45 crore. Still Rallis managed to end the quarter with a higher net profit at Rs.9.40 crore, up 122%. So despite the slack season it has managed to have a healthier bottomline. The improvement in realisation and drop in raw material cost resulted in higher net profit. Interest outgo was down 73% due to improved cash flow and working capital.
Rallis plans to invest Rs.150 crore in the first phase of its ongoing project at Dahej in Gujarat, expected to be commissioned between April-June 2010.
Rallis is a very good stock to have in my portfolio, stay invested and Also invest for long term on declines; thanks

INDIAN HOTELS Stay invested and buy at every major dip

noreply@blogger.com (Bhagwat) — Fri, 07 Aug 2009 08:18:00 +0000

Indian Hotels- Taj Hotels. results, for first quarter, posted a 73% (YoY) drop in net profit at Rs.16.44 crore, as expected due to slowdown and terror attack. Total revenue dropped 24% at Rs.284.88 crore. Closure of 287 rooms in the Palace wing of the hotel, which was widely damaged during the terror attacks, also affected the performance quite sharply. These rooms are currently undergoing renovation. Its average room occupancy at present is around 70%.
The market had expected a much poorer performance and hence the price remained stable. Also, the growing perception is that the worst possible time is behind for the hospitality industry. One could see a recovery happening in the sector after second half of current fiscal.
Still here are some good reasons to Stay invested and buy at every major dip
The company's total borrowings, as at 31st March 2009 stood at Rs.1,766.47 crore, up from Rs 1,134.18 crore in previous year.
1. The increase in debt was on account of ongoing capital expenditure on new projects as well as renovations and investment in global arms.
2. The company is now looking at raising money through either more debt or through an equity issue. The amount raised is to be used for setting up 45 hotels, which includes an addition of more than 7,200 rooms over the next four years, right across all of its existing brands such as Taj, Gateway, Vivanta by Taj and Ginger.
3. The capex plan for FY10 is at Rs.350 crore. And it is this will to go on; despite the slowdown and financial turmoil the stock remained so strong. Stay invested and buy at every major dip. thanks

LIC Home Loan Is Best Home Loan

noreply@blogger.com (Bhagwat) — Thu, 06 Aug 2009 08:06:00 +0000

Some Good info about why to choose LIC HOUSING home loan?
One good thing about LIC compared to SBI housing loan is Rate of interest Fixed for 3 years : 8.90% where as in SBI it is fixed for one year.
LIC being major player in insurance sector, its house insurance EMI is less compared to other banks like SBI, ICICI.

Current rate of interest (year 2009) : 8.50 % ( floating )

EMI PER LAKH FOR 25 YEARS - Rs. 805/ -

20 YEARS - RS.868/-

15 YEARS - RS.985/-

Rate of interest Fixed for 3 years : 8.90 %

EMI PER LAKH FOR 25 YEARS - RS. 832/-

20 YEARS - RS. 893/-

15 YEARS - RS. 1008/-

CHECKLIST FOR SALARIED

The following list of documents is required for a housing loan from LIC.

Two photo with application form duly filled
Address proof - Ration card or Phone Bill or Bank Statement
Identity Proof - Employment Id and Pan card
Qualification copy
Latest 3 months pay slip
Appointment order & Latest revision letter with CTC Structure
Last 2 years Form 16 & IT returns
Latest Bank statement for 6 months of your salary credit bank account

Think before you choose for best home loan.

Why still market says Stay Invested in GMR Infra?

noreply@blogger.com (Bhagwat) — Wed, 05 Aug 2009 10:45:00 +0000

Why still market says Stay Invested in GMR Infra ?
GMR Infra posted a 70% (YoY) drop in net profit at Rs.22.50 crore for the first quarter. The share price dropped like nine pins and many of our subscribers have got a bit confused, post this result.
There is no need to panic. The drop is net profit is on account of the capitalization of the large assets at Delhi airport which led to huge depreciation and interest outgo. This is a normal phenomena with any large, capital intensive infra company, so no need to panic. And this in turn has affected the net profit. Depreciation outgo was up 72% (YoY) and interest outgo was up by a huge 132%. Naturally, with such huge outgo's it thus comes as no surprise to see the net margin getting affected.
Here are four reasons which makes you to stay invested in GMR one of my favorite stock.
1. GMR's Vemagiri Power Plant is operating at full load at a PLF of 82.2% and this is pursuant to the signing of gas supply agreement. Its Kamalanga Energy1050 MW coal based power project achieved financial closure. It also acquired two key power plants, thereby adding 600 MW in India and 800 MW in Singapore.
2. In its airports sector, GMR Hyderabad International Airport (GHIAL) was allowed to increase the landing and parking charges at 10%, with effect from July 01, 2009 and the effect of this would now be reflected in the performance of the company in Q2. The construction work in Delhi International Airport Pvt. Ltd. (DIAL) for the integrated Terminal-3 is complete to an extent of 72%. Its airport at Turkey has achieved 78% completion and the project is on track for commercial operation by end October 2009.
3. In roads, GMR won the bid for Hyderabad - Vijayawada (181 km) road, with an estimated project cost of Rs 2200 crore. It has also won the bid for Chennai Outer Ring Road (30 km) with an estimated project cost of Rs 1100 crore. This is the group's first state highway project. The sixth road project, the toll based GMR Ulundurpet Expressways commenced commercial operation on 24th July 2009 and this too shall start contributing well to the numbers in coming months.
4. An infra company of GMR's size cannot really be judged based on quarterly results. No need to worry. Stay invested and it holds potential to touch Rs.180 by Jan 2010. Thanks

NHPC Ltd IPO NHPC IPO Worth even at upper price band

noreply@blogger.com (Bhagwat) — Mon, 03 Aug 2009 10:15:00 +0000

Why nhpc ipo Worth even at upper price band ?
NHPC Ltd. is entering the capital market on 7th August 09 with a public issue of 167.74 crore shares of Rs. 10 each, in the band of Rs. 30 to Rs. 36 per share. Earlier, it was expected that issue will be made in the band of Rs. 20 to Rs. 24. But due to huge appetite seen for power companies and power IPO, Adani Power IPO response, This may be seen a rise of almost 50%.
Here are five reasons on why to invest in NHPC IPO even at upper price band.
1. NHPC Ltd being a profit making with total income being a profit making with total income being placed at Rs. 4051 crore for FY09 with PAT at Rs. 1244 crore, implying an EPS of Rs. 1.11. It has always seen that government IPO, leaves enough scope for prospective investors to make money and this can be expected from this IPO as well.
2. The company has already developed and constructed 13 hydro power stations with total installed capacity of 5175 MW which are located in J&K, H.P, Uttarakhand, W. Bengal and N.E. States. The company is engaged in constructing 11 additional hydro with capacity of 4622 MW.
3. NHPC is also awaiting for government sanction of five projects with capacity of 4565 MW and certain JVs for 2166 MW. So eventually, NHPC is aiming to become a 10,000 MW plus company, in the near future in hydro space, which is considered quite respectable.
4. The proposed NHPC IPO is to fund 7 projects with aggregate capacity of 3240 MW with total project cost of Rs. 14,014 crore, which translates into Rs. 4.32 crore per MW.
5. The company will be a significant player in Hydro Power and would be PSU like NTPC in this sector. Traditionally, PSU IPOs have always rewarded the shareholders. Going by the financials, fundamentals and track record, it is recommended to apply in IPO even at the upper band of Rs. 36. thanks

Why to Buy CENTURY TEXTILES Stock And Hold It

noreply@blogger.com (Bhagwat) — Tue, 28 Jul 2009 13:52:00 +0000

Why to Buy CENTURY TEXTILES Stock And Hold It?
1. Century Textiles & Industries Ltd. one of the hottest stock. The company reported a phenomenal performance for the first quarter ended 30th June 2009. During the quarter, the net profit of the company surged 2.27 times to Rs.141.62 crore as against Rs.62.50 crore in Q1FY09. Net sales increased to Rs 1,121.7 crore versus Rs 951.8 crore, YoY.
Its biggest earner has been cement, contributing 64% to the net sales at Rs.717.90 crore. EBIT from this division for the quarter was at Rs.255.66 crore, up over 117% on a YoY. EBIT margin at 36% is one of the best in the cement sector. The other two –pulp & paper and textiles have not really done too well. Pulp division posted a sales of Rs.235.70 crore, which is 21% of the net sales. On this, it posted an EBIT of merely Rs.1.02 crore, which is much below the EBIT of Rs.30.45 crore it had in Q1FY09. The textiles unit continues to suffer the most. Sales was at Rs.174.62 crore, which is today just 15% of the net sales.But textiles also will come into profit in next quarters, since festival seasons are on its way.
2. Other good reasons to Hold on this stock.
2.a Century is sitting on prime property of 40 acres in Worli, Mumbai.This property is all set for development and once the realty sector improves, this could become the biggest earner for Century. The company is not planning to sale any significant portion but is planning to lease it and this can give it an annual rental income of around Rs.800 crore.
2.b In addition to Worli property, Century owns Century Bhavan at Prabhadevi, having area available for development of close to 2 lakh sq. ft. and about 1.5 lakh sq. ft. at Shivaji Park known as Century Flats.
Both these properties have present value of close to Rs.1500 crore and would see development in the near future.
Buy CENTURY TEXTILES stock current levels with profit horizon of six months.thanks

BHEL A Good PSU Stock to Stay Invested

noreply@blogger.com (Bhagwat) — Fri, 24 Jul 2009 08:04:00 +0000

BHEL a Navratna PSU, has done well for itself in Q1FY10. The company, on a YoY showed a growth of 23% at Rs 5,800 crore. Net profit jumped by over 22% at Rs 471 crore.
At the end of Q4FY09, the company was sitting on inventory worth Rs.172.19 crore and this has been reduced to Rs.30.05 crore in Q1FY10. Like most of the PSU's, employee cost is a huge outgo for BHEL. At the end of 30th June 2009, it stood at Rs.1113.68 crore, up from Rs.895.30 crore in Q1FY09. Wage revision has surely eaten up quite a chunk of the income but hopefully by the end of Q2, it would have finished with all the provisioning.
Why to stay invested in BHEL?
In current Q1, 100% of the orders to the company came only from the private sector. The elections and the code of conduct prevented any Govt orders. But now that the elections are over, BHEL expects major chunk of order to come in from the Govt and we could see huge orders coming in Q2.
Order book was never a problem with BHEL. The problem was too much order which led to inability to execute them. Infact BHEL was one of the reasons why the power sector missed its targets last fiscal. To rectify the situation, BHEL is expanding its capacity which is expected to go stream by 2011. Also given the priority which the power sector today has in our country, BHEL will only stand to gain. The company is also expecting six new orders for power equipment with a capacity to generate 600 Mw any time now. Power sector will thus light up BHEL and so Stay invested. thanks

For SHREE RENUKA SUGAR Festival Season Around The Corner Think for Trade

noreply@blogger.com (Bhagwat) — Thu, 23 Jul 2009 07:56:00 +0000

SHREE RENUKA SUGAR one of my favorite stock after election. Shree Renuka Sugars is a fully-integrated sugar company, besides sugar, power generation and ethanol are also additional sources of revenue.
Net profit more than doubled from Rs.33.20 crore to Rs.78.10 crore. given the current spike in sugar prices, the company did well by offloading the inventory, making full good use of these high prices.
The topline of the company rose by an unbelievable 108% at Rs.893.50 crore. In the sugar sector, the company managed to earn an EBIT of Rs.86.30 crore (Rs.20.60 crore in Q2FY09) on a sales of Rs.585.10 crore (Rs.86.30 crore) and this was its biggest earner.
The company is expanding its refining capacity at Karnataka to 2,000 tonne per day from 1,000 tonne per day. It is also raising refining capacity in Karnataka by 1,000 tonnes per day. Both plants are expected to be commissioned by December 09'. Once both these units go on stream, company's sugar refining capacity will increase to 6,000 tonne per day, which includes the 2,000 tonne per day port-based sugar refinery at Haldia, West Bengal, and the 4,000 tonne per day refining capacity at three of its integrated sugar mills in Karnataka.
It also recently raised Rs.506 crore via QIP issue and this increased the equity capital of the company from Rs.28 crore to Rs.31.70 crore and reserves has swollen to Rs.502.30 crore.
The shortfall in sugar production is a well known fact now and prices are already up to around Rs.26 per kg in the retail sector. With festival season around the corner and despite the Govt getting imports to keep a check on the prices, we can expect realizations of sugar companies to go up further. thanks.

Adani IPO Adani Power IPO's What is Your take

noreply@blogger.com (Bhagwat) — Tue, 21 Jul 2009 07:48:00 +0000

Adani Power IPO's are comming in market on 28th July.
What will be its expected price? adani power ipo, adani power, Adani Power. This issue is opening on the 28th of July and closing on 31st July. This is the biggest power IPO to come to the market in a long while. probability the IPO would be priced at around Rs.100-110 and aims to raise over Rs.3000 crore. Adani Enterprise, the listed group company,
The report from the street is Power project development company Adani Power has raised Rs.375 crore by selling 36 million shares to a founder group firm and a clutch of private equity fund 3i, a week ahead of tapping India's capital market with an initial public offer (IPO).According to the offer document, the shares were allotted on June 25 at Rs.81.42 a share to 3i Power Investments A1 Ltd (9.14 million shares) and at Rs.111.50 to Capital Trade & Investments Pvt Ltd (26.91 million shares). reports
Updates from ADAG and the IPO market
There is already buzz that ADAG may come with an IPO for its entertainment wing – Reliance BIG Entertainment. The ADAG group had as such planned on a Rs.6000 crore IPO for its telecom tower company – Reliance Infratel. All the formalities were completed, a price band of around Rs.550 was also talked about but the markets were bad and that issue did not happen. Now that we are signs of recovery, there is news that maybe this IPO will be amongst the first to come.
Few questions like Shall we buy adani power ipo? Will it grow?

ALLAHABAD BANK Remains a good banking stock to hold

noreply@blogger.com (Bhagwat) — Mon, 20 Jul 2009 07:54:00 +0000

Why ALLAHABAD BANK Remains a good banking stock to hold?
The ALLAHABAD BANK presented a very good results for the first quarter ended 30th June 2009. For Q1FY10, the bank posted a YoY 28% rise in total income earned at Rs.2377.70 crore. Deposits were at Rs 89,400 crore and advances at Rs 61,000 crore, meaning the total business of the bank has crossed Rs,150,000 crore. Operating profit was at Rs 591 crore almost twice that was posted in Q1FY09. The net profit rose three times at Rs.302.86 crore. This surge is more pronounced as in Q1FY09, the bank had made a huge provisioning of Rs.202.24 crore as against Rs.39.63 crore in current Q1. Its net interest income grew 34.3% to 629 crore. The growth in trading profit was also quite smart – it was up over 5 times at Rs.214 crore.
The bank has recovered Rs 50 crore from defaulters. It upgraded loans to the tune of Rs.97 crore and has written off Rs.50 crore. Gross NPA is at 1.79% as against 1.87% in Q1FY09 and net NPA was at 0.37%, up from 0.72% in Q1FY09.
This is one of the oldest public sector banks of India, established way back in 1865. The Govt of India has a 55.23% stake and institutions hold 26.45% of which LIC has a 11.63%, leaving a floating stock of 18.32%.
The stock touched a high of Rs.90 on 2nd June 2009 in anticipation of the Budget making some favorable recommendations, Since then, it has come down but yet managed to hold strong and is now quoted at Rs.79. Remains a good banking stock to hold. thanks

INDOWIND ENERGY Stay away Stock

noreply@blogger.com (Bhagwat) — Wed, 15 Jul 2009 13:04:00 +0000

Net profit is at Rs.7.06 crore, its highest ever in any quarter and almost equal to Rs.7.20 crore which it posted for 12 months FY09. QoQ, net profit is up more than 7.5 times and YoY, it is up 60%.
It has a net sales for Q1FY10 of Rs.8.83 crore, down 72% on a QoQ and down 34% on a YoY. OPM is at an unbelievable 101% and NPM at 80%. This is even better than a realty company!
The company has an other income of Rs.2.19 crore and operating expense is down to a meager Rs.2.05 crore of which Rs.1.81 crore is via ‘other expense’ and Rs.24 lakhs on employee cost . Where is the expense on raw materials? Does this mean that income in first quarter was from trading income only? Something somewhere smells completely fishy here.
The stock was up yesterday by 9.76% at Rs.36. Purely a speculative stock. Just get out using this momentum as the results are more of a warning than a sign of good tidings. thanks

PUNJAB COMMUNICATION Good PSU Stock To Hold

noreply@blogger.com (Bhagwat) — Fri, 10 Jul 2009 08:57:00 +0000

Punjab Communication (Puncom) is probably one of the only PSU companies which is debt free since 1995. Punjab Govt holds a 71.21% stake, it is a complete telecom solution provider – manufacturing and providing services. The company is concentrating mainly in the domestic telecom market and is supplying telecom equipment and services to customers such as BSNL, Indian Railways, State Electricity Boards, VSNL, ONGC, GAIL, Power Grid Corp. The company is also into making telecom equipments for the defence sector.
Puncom posted a smart net profit of Rs.1.99 crore for Q1FY10, which was over 232% higher even on a YoY. Net sales was at Rs.76.50 crore, up 16 times on a sequential basis but strangely 33% lower than Q1FY09. a tight lid on operating expenses helped. OPM was at 3.01% compared to 0.82% on a YoY while NPM rose to 2.6% v/s 0.52%.
Apart from being debt free, Puncom has free reserves of Rs.96.10 crore. Equity stands at Rs.12.02 crore.
Currently quoted at levels of Rs.21, there has always been a buzz around the stock that it might be a prime pick for PSU disinvestment. But even though nothing has come forth on this front, on its own, this PSU looks good at the current rate,thanks

Today's Market Rally is it bull run or bear trend

noreply@blogger.com (Bhagwat) — Wed, 08 Jul 2009 09:56:00 +0000

I did like to put some light on Today's Market Rally is it bull run or
bear trend; of nifty feature.
if this is a bull run , then market rallys 40% and corrects 15%. ie
from 3340 to 4675. and the correction can finish around 4048/ 3992
levels. this nifty from these levels will definately bounce to 4224 /
4324. there is where one should check on closing basis... tht will
nifty continue its bull run or was it just a bear rally.... because if
nifty is in a bear rally then it wnt hold the supports of 3992. At the
end be patient and wait, because comming up next are Q1 results, Exim
Policy and Credit Policy. Another probable trigger could be the IIP
numbers to be presented on 10th July.

IDFC Yet Another Strong Infra Stock to Invest

noreply@blogger.com (Bhagwat) — Tue, 07 Jul 2009 17:36:00 +0000

After long wait today I made purchase on IDFC. This highly reputed infra company, despite the trying circumstances, has posted a good set of results for the year ended 31st march 2009. Its Net Interest Income (NII) increased by 33% to Rs.922 crore and of this, NII came from infrastructure loans, which increased by 34% to Rs. 758 crore and NII from treasury operations increased by 27% to Rs.164 crore.
After accounting for Rs. 278 crore for tax, profit in associate company and minority interest, net profit for FY09 was stagnant at Rs.750 crore as against Rs.742 crore in FY08.
The biggest concern was IDFCs’ exposure to realty. Total disbursal outstanding to commercial and industrial infrastructure, as on 31st March 2009 stood at less than Rs.3,000 crore, accounting for about 12.9% of its total outstanding disbursements.
Govt continues to hold 20.2% stake in the company as on 31/03/09. FII/FDI holding has come down to 39.5% (46.7%), Mutual funds holding is at 7.7% (8.5%), Corporate Bodies have increased stake to 4.3% (3.5%) and retail has increased the most at 13.3% (7.7%).
Net NPAs was at 0.21% of outstanding loans. Capital Adequacy Ratio was at 23.75% (Tier I – 20.04%; Tier II – 3.71%).
FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude. Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well. thanks.

Budget 2009 & Stock Market NSE BSE Sensex

noreply@blogger.com (Bhagwat) — Mon, 06 Jul 2009 08:00:00 +0000

Union Budget 2009 Live says Farmers and poor were a priority and not the markets.
The markets expected too much and that is the reason why it slipped down sharply today. The market expected announcements on PSU disinvestment, fuel policy and major FDI policies. There was no word on any of these. Pranab Mukherjee stated that the Union Budget cannot be the only instrument to bring about a change. He has presented us with a very broad roadmap and that is what the market did not like, it wanted more specific measures.

The strong message which this Budget also sends home is that rural India is where all the growth will happen. So companies aiming to grow big, have to necessarily go rural. Thats the only key to success.

The bright side to this Budget – this is a great buying opportunity. For all those who felt that they had missed the bus earlier, this is maybe the right time. think about it.

union budget live, union budget 2009, union budget, union budget 09 10, union budget 2009 highlights

AND THE MONEY GOES TO……

Bharat Nirman allocation stepped up by

Rajiv Gandhi Vidyutikaran Yojana allocation hiked to Rs.7000 crore

Rs.430 crore for police modernization

Modernisation of national employment exchanges

Rs.450 crore for setting up new IITs

Indira Awas Yojana allocation up by 63%

NREGA outlay hiked by 144%; provided work to 4 crore people

Food Security to provide rice, wheat at Rs.3 per kg

Greater flexibility to IIFCL, refinance 60% of commercial banks loans for PPP projects

NHAI allocation raised by 23%

JNNURM allocation stepped up by 87%

Full interest subsidy for education loan

Farmer loan waiver period extended by 6 months

Allocation to Common Wealth up at Rs.3472 crore

Mumbai Storm Water Drain project allocation hiked by Rs.500 crore

thanks

Union Budget Live 2009 Highlights - FM's budget speech started...

noreply@blogger.com (Bhagwat) — Mon, 06 Jul 2009 07:22:00 +0000

S&P CNX NIFTY

4195.85 -228.40

SENSEX

14167.40 -745.65

I guess this is quite ephemeral; the market will bounce back till this weekend.

BSE LIVE	-619.58
14,293.47	-4.15%

NSE	-132.70
4,291.55	-3.09%

Market seems to be disappointed with the budget,……………………….

Budget expenditure crosses 10 lakh crore for the first time says :FM

Highlights so far…

· Mentions that “First challenge is to lead the economy back to the 7% GDP growth”

· Alludes to private investment being the main growth driver

· IIFCL to refinance 60% of bank loans for PPP projects (Public-Private-Partnership)

· Hike in IT exemption for women to Rs 1,90,000

· Hike in IT exemption to Rs 2,40,000 for senior citizens

Total budget expenditure for 2009-10 will Rs 10,28,032 crore, crossing Rs 10 lakh crore mark for the first time since Independence.

TAX PROPOSALS! New direct tax code to be released in 45 days.

Crop loan at 6 pc interest for farmers The government today announced loans at a subsidised interest rate of six per cent for farmers who pay their dues in time, which is one per cent less than what others would get.

Sorces: http://timesofindia.indiatimes.com/Sensex-up-100-points-ahead-of-Budget-2009/articleshow/4743006.cms

http://www.budget.gc.ca/2009/home-accueil-eng.asp

http://www.ibtimes.co.in/articles/20090705/what-indian-market-expects-from-union-budget.htm

http://economictimes.indiatimes.com/budget.cms

http://www.hindu.com/thehindu/holnus/000200907061240.htm

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