Basic Concept Behind Stock Investing
Before getting involved in the stock trading, you should be well versed with its concept as this will help you in achieving success every time you trade. When you purchase a stock, you become a shareholder in the company. Now this invested money by the shareholder or investor will be used up by the company in expanding the business to earn profits.
These profits will be observed in the rising prices of the stock. Now the investors owning the stocks in the company can sell that growing stock in order to make profit as they will get more amount than they invested originally. The same concept is there behind the losses prnewswire trading that is after investing in stocks of a particular company if the company starts going in loss or the rate of that particular stock begins to decrease, the investors are also in the category of loss.
The stock trading has become very interesting and easy because of the discovery of internet. If you are interested in trading stock online, then press write an online account through any online brokerage firm. It is always recommended to select a venerable and renowned brokerage firm so that you should not get into wrong hands.
For example, Ameritrade and ETrade Financial are most renowned in the stock industry. Now, the brokerage firms will create your an online account through the company. By using your account, you can trade stock online by setting financial goals, buying and selling stocks, etc.
Benefits Of Trading Stock Online
The discovery of internet has occupied its own space in the industry of stock market. There are numerous advantages by trading stock online:
1 - The most advantageous aspect of trading online is the immediate access to the account and one can easily be updated with the latest stock information and news of the company in which you have invested or want to invest.
2 - In this method of trading stock online, the charges of the brokers are also minimal which are around $7 to $10 per trade.
3 - There is a proper check over the portfolios by using the accounts opened through brokerage firms in online stock trading.
4 - The other most important benefit of the online trading is that the company permits the investor to chart the profitable stocks and to update the investor with latest news and updates of the stock market.
5 - Online stock investing has helped a lot in saving time and money by enjoying the thrill of trade at your convenience in the ambience of your home.
6 - There is another facility provided by the online brokerage firms to contact the other trained brokers and investment counselors for the guidance if required while trading.
7 - The online stock investors also enjoy liberty to decide the things in their own way. Therefore, it is the right method to invest money with complete freedom
Showing posts with label Investing tips. Show all posts
Showing posts with label Investing tips. Show all posts
4/6/08
Buy BHAGYANAGAR INDIA Ltd AT 39.5/-
Dear ALL, Now Buy good Fundamental Stocks like BHAGYANAGAR INDIA LTD at Rs.39.5/- Quoting BSE, NSE .
Global Markets is stabilizing. In Indian Equities avialble at good prices. Worst is over. I think April onwards FII`s also coming back to Indian Markets to Invest. All Bulls are coming back to Market this month. Annual Results also coming out in April. Start Buying at low levels Now. Don't panic Sell. Buy good fundamental equities partially daily, You will get 30 to 50% appreciation within 1 to 2 months time. Risk is very very less. My Expactation : 90 % chances Upside only 10% chances Down Side for short term (1 Month).
Bhagyanagar India Ltd, Trading in BSE & NSE at 40/- in B Group.Yearly High 83/-. After Market Crashed. Now its trading at 40/-. Daily grabbing with Mumbai BIG BIG Bulls because of Now stock is available at very very cheep price at 40/-. Company having lot of land in Hyderabad central. Only Land value per share is 75/-. And Expecting good Annual finalcial, 8/- At current rate PE 5only. Narmally in worst condition also PE will at 8. But Now PE is only 5. If you take PE 8 It will go 65/- minimum before declaring Annual results. (1 Month Time). So Share valuation was 75/- + 65/- = 140/-.
If you have already, buy some more make average. This is company is doing very very good. Slowly grab this stock. Fundamental is very very good. Global cues and Market worst is over. Don't Sell if you have Bhagyanagar India equities. Stay Invest and wait up to 65/- minimum for short period (1 month time).
Company Planning to Demerging of Infrastructure Bussiness. After demerger of this share you will get shares of free of cost because Now current rate was very very less compared to Annual results and Land Bank.
And Bhagyanagar India Ltd has allotted 40,00,000 Equity Share Warrants at a price of Rs 90/- per share warrant convertible into Equity Shares on a Preferential Basis to M/s. Consolidated Securities Ltd.
Compared to that (Rs.90/-) Now shares available 55% discount. Any time it will touch 90/- (1 to 6 months time). So double your money within 6 months time.
So there is no risk at all.
Company doing Cable & Real Estate.Share Equity Rs. 14 Crs. EPS 8/- Annulised. Good Fundamentals.
Karvy Estimate Annaul EPS for 2008-2009 is 15/-.Promoter Shares Holding 55%. FII's 15% Corporate Bodies & NRI's 13%Public Only 17%. Check the BSEINDIA for Shareholding pattern.Karvy has Strongly recommending for this stock
Recently Bhagyanagar India formed a joint venture company named `Surana Ventures` for setting up of solar photo voltaic cell and module project in partnership with its promoters and a group company named Surana Telecom. The JV plans to manufacture and sell the equipment required for generating solar energy. It will be an 80% export-oriented unit with substantial tax-benefits.Bhagyanagar India and Surana Telecom will hold 40% each in the Rs 3 bn project with the remaining 20% being held by the core promoters of the company".
Company Planning to Demerging of Infrastructure Bussiness.Bhagyanagar India Ltd. is a Hyderabad based company which has forayed into real estate and infrastructure development to unlock the value of its existing land bank of 3 million square feet. The new development projects include integrated residential townships, IT parks, and hardware parks. The present value of the undeveloped land bank and tenanted property of the company is Rs 6,160 mn. The one million square feet technology park in Uppal is the likely to complete in 15 to 18 months. “Early next year we would have launched our housing project in Vizag in 52 acres, with 1.2 million sq ft.†The revenues are likely to increase to Rs 3,591 mn in FY08 and Rs 5,021 mn in FY09 and the net profits likely to grow at a CAGR of 53.34% to Rs 936 mn by FY09. The company is valued at Rs 65 a share with an upside of 57% from the current stock price of around Rs 40. “For the next 4-5 years we see the company grow at 40 to 50 percent and expect 150 crores in infrastructure sales next year, said Narendra Surana, MD, Bhagyanagar India. Outright sale of small parcels and development of residential townships, IT parks and hardware parks on the larger land parcels is the route that works best in Hyderabad, for the company. It plans to sell the residential constructions and retain portions of commercial properties for the reason of higher rental yield on the latter. Over 6 Mn Sqft of net saleable area is likely to be developed over the next five years. A tourism project representing miniature monuments in India, a multiproduct SEZ and a resort complex are at different stages of finalization. Bhagyanagar India has shown good Q4 Fy 07 results due to extensive real estate and infrastructure sales. The topline showed a YoY growth of 66.7 per cent and a QoQ growth of 90.02 per cent. The company showed operating margins of 62.97 per cent as against 20 â€" 25 per cent in the previous quarters. Consequently the net profit jumped to Rs 487.86 mn, showing a YoY growth of 442.19 per cent and a QoQ growth of 609.31per cent in Q4 FY07. On a consolidated basis, BIL showed a YoY growth of 35.96 per cent in the net sales in FY2007. The bottom line showed a YoY growth of nearly 170 percent. The real estate and infrastructure division showed an impressive YoY growth of 452.68 per cent in its topline in FY2007. As the real estate and infrastructure division accounting for over 58 per cent of the company’s top line in Q4 FY07, it will remain the key area of focus. On a consolidated level, the division contributed 28 percent to the topline and nearly 76 per cent to the PBIT of the company in FY2007. The company is also keen on selling some of its unused land bank for which it is getting handsome price and subsequently investing the amount in development projects. Estimated EPS for 2007 -8 year was 8/- (Annualised).Company Proposed EPS for 2008-09 is 15/-
Karvy has recommending heavily for this stock.& other brokerages also acquiring this stock.Lot of Accumulating is going on last 3 days. All of above good news current price (40/-) is very very cheep.
See BHAGYANAGAR INIDA EQUITY Valuation per Share : 75/- Land Value per share + 65/- original value as per financial results (Consider 8 EPS annulised and 8 PE) = 140/-. Based on this validation only Bhagyanagar India Ltd has allotted 40,00,000 Equity Share Warrants at a price of Rs 90/- per share warrant convertible into Equity Shares on a Preferential Basis to M/s. Consolidated Securities Ltd.
Market is down that why now its available 40/-. Any time it will reach 95/-
So Total Value of this company Share value was Rs.140/-. Just Imagine company share price where to going in this year…
Enter current price at 40/-/- Target 65/-, 95/- , 140/- .
Just invest and get 50 to 200% profit within 2months time. Happy Investing... I will mail Next week with one more Recommedation.
Bye
BIGBULLS
4/5/08
Buy BHEL
Bharat Electronics
Cluster: Apple Green
Recommendation: Buy
Price target: Rs1,610
Current market price: Rs1,179
Price target revised to Rs1,610
Key highlights
Bharat Electronics Ltd (BEL) announced its provisional results for FY2008. The company reported gross sales of Rs4,114 crore and profit before tax (PBT) of Rs1,109 crore during FY2008. The company's gross sales increased marginally by 4.1% and the PBT grew by 5.2% over FY2007. As a result in line with our expectations, BEL has missed its sales target of Rs4,725 crore as per the performance Memorandum of Understanding (MoU) signed with the Ministry of Defence.
The implied Q4 results appear to be quite robust with growth of around 32% and 39.3% in the net sales and the PBT respectively. The implied Q4 sales and PBT are at Rs2,296.8 crore and Rs720.2 crore respectively. The company reported 18.6% decline in the net sales during the first nine months ended December 2007, which acted as a dampener to the company's overall financial performance.
The company's pending order book stood at Rs9,450 crore as on April 1, 2008, up from Rs9,130 crore at the beginning of FY2008. The low growth in the order book was due to lower order inflows of Rs4,434 crore in FY2008 versus Rs6,460 crore in FY2007.
The turnover per employee for 2007-08 was Rs33.26 lakh as against the last year's figure of Rs31.99 lakh, while the value added per employee for 2007-08 was Rs15.5 lakh as against last year's figure of Rs14.5 lakh.
The company's healthy performance during the last quarter represents a strong operating profit margin (OPM) of 30.2% (derived backwards from the PBT numbers keeping our forecasts for other income, interest, and depreciation unchanged), which helped enhance the yearly OPM to 23.8% as against our estimates of 20.9% for 2008. At the current market price of Rs1,179 the stock trades at 12.5x FY2008E and 10.6x FY2009E earnings estimates. On an adjusted earnings (adjusted for cash) basis, the company trades at 8.2x FY2008E and 5.8x FY2009E, which offers strong downside support to the stock. Consequently, we are revising our recommendation on the stock to Buy with a revised price target of Rs1,610 (8x 2009E adjusted PER).
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4/4/08
Buy Balaji Telefilms
Balaji Telefilms
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs355
Current market price: Rs198
Price target revised to Rs355
Balaji Telefilms Ltd (BTL) and Star entered a 49:51 joint venture (JV) in April 2007 (with BTL having a 49% stake) to launch regional entertainment channels in Telugu, Kannada, Malayalam, Bengali, Marathi and Gujarati. Star transferred its Tamil channel Star Vijay to the JV. Forward integration in regional broadcasting arena (especially south Indian language channels) with a world-class broadcaster like Star (with BTL's expertise in content) promised immense value creation potential for BTL and acted as a trigger for the stock. However the broadcast venture has been considerably delayed, as the first of these channels in Telugu that was to go on air by September 2007 and to be followed by the launch of at least four other regional language channels over a period of time are still to operationalise. The management has cited procedural issues to get the required approvals as the reason for the delay. In the absence of clarity on the timeline for the launch of these channels, the worst-case scenario would be that the JV might be called off. Considering this, we have conservatively revised our estimates and price target for the stock.
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs355
Current market price: Rs198
Price target revised to Rs355
Balaji Telefilms Ltd (BTL) and Star entered a 49:51 joint venture (JV) in April 2007 (with BTL having a 49% stake) to launch regional entertainment channels in Telugu, Kannada, Malayalam, Bengali, Marathi and Gujarati. Star transferred its Tamil channel Star Vijay to the JV. Forward integration in regional broadcasting arena (especially south Indian language channels) with a world-class broadcaster like Star (with BTL's expertise in content) promised immense value creation potential for BTL and acted as a trigger for the stock. However the broadcast venture has been considerably delayed, as the first of these channels in Telugu that was to go on air by September 2007 and to be followed by the launch of at least four other regional language channels over a period of time are still to operationalise. The management has cited procedural issues to get the required approvals as the reason for the delay. In the absence of clarity on the timeline for the launch of these channels, the worst-case scenario would be that the JV might be called off. Considering this, we have conservatively revised our estimates and price target for the stock.
US recession will not impact India adversely
India's not in a cyclical upturn, but has the ability to show high single-digit growth rates for a long time -Martin Feldstein, Professor Of Economics At Harvard University, WHEN Martin Feldstein, George F Baker Professor of Economics at Harvard University, declared recently that the United States has already slipped into a deep recession that could be the most serious since World War II, it shocked many observers. Especially, since Mr Feldstein also heads the National Bureau of Economic Research, an organisation that is the official arbiter of when recessions begin in the country.
But Mr Feldstein says that the impact of a possible slowdown in the US will be very limited on
countries like India and China. The expert on global business cycles also feels that India is not
just in a cyclical upturn, but has the ability to show high single-digit growth rates for very long
periods of time. Excerpts from the interview with the noted economist, who was once tipped to
succeed Alan Greenspan as the Federal Reserve governor.
What are the lessons from the housing-related credit crisis that has struck the global economy?
Rather than the low interest rates, it's the price we are paying for not being careful. (Mr Feldsteinhad earlier said that in the past instances of recessions it was the Fed policy at work unlike this time.) Everybody from borrowers, lenders, rating agencies and supervisors at banks thought that housing prices would go up forever, and hence, nobody bothered. Securitisation and derivative products only made it worse since it was impossible for house owners to negotiate, as there is nobody on the other side. After going up more than 60% from 2000 to 2006, they have only gone down 15% since this credit crisis appeared. The only danger is that if more defaults happen, prices could fall faster than the speed at which they went up.
What will be the impact of the slowdown in the US on emerging markets like India and China?
This question will have to be answered under three heads. On the trade side, a slowdown will
reduce our (the US) imports with countries that we trade with. At most, a percentage point from
the growth rates may be shaved off. In the currency market, the dollar will continue to decline on a global basis although it will be hard to say how much the dollar will decline against individual
currencies. But again, I think it will not have a substantial adverse effect on India. What is
important is what happens through financial markets and equity markets. On one hand, people
may be very nervous and stop risky instruments, as emerging markets are risky and take money home and buy bonds. Alternatively, they may want to have some money in equities outside the US because of the recession. India could benefit from such investors.
How will dollar's slide affect global economy and trade?
We have to distinguish between trade effects and asset effects for the central banks. Although
India has a trade deficit, other economies like China, Korea, Japan, Europe, the Middle East and
Russia have strong surpluses. So, they are in a better position to withstand the effect of increased competitiveness in the US.
On the central banks side, those that don't fix their exchange rates to the dollar take a loss to the
extent that the dollar is coming down and their currencies are appreciating. But the big question is what they are going to do about it, if their currencies continue to appreciate.
Your comments on perception of sovereign wealth funds and private equity funds with regulators.
The principal concern in the US is that what a sovereign wealth fund (SWF) buys could end up
giving it political power. Decision could then be influenced by political considerations rather than
commercial, especially with respect to China and Russia since they are not fully independent.
However, others like Singapore and Norway are simply looking for higher returns. But the rule
book has to be common, hence the trouble. Unlike the Europeans, however, the US is very open
to foreign investments from commercial investors.
As for India, it is a country with too many rules of foreign ownership that need to be relaxed,
and hence, it would be a pity if this discussion about SWF and private equity funds leads to
further tightening in the regulations. As for influence of private equity funds in financial markets,
a prolonged credit crisis will definitely affect it in the long term. PEs are highly-leveraged players
who would suffer if no credit is available.
What are the constraints before the Indian economy?
I am very optimistic about India's future despite its problems of low agriculture productivity,
electricity and labour reform (so many small industries actually give China the advantage). But
every year, when I go from Delhi to Neemrana Fort Palace in Rajasthan (he has been coming
every year for NBER-NCAER conferences), I find the roads are getting better and I reach faster.
Just that I am disappointed when I come to Mumbai with all its traffic.
Telecom, BHEL (result 4QFY08), Cement, Steel, Inside India - Ports, Result Calendar
Telecom (On spectrum, start-ups and active sharing – the government is indeed busy): We review the prospects for new licencees including international companies looking to enter the telecom sector and developments on active infrastructure sharing regulations and 3G. Our key conclusions are that while the grant of numerous new licences can give the illusion of a significant increase in competitive intensity, the business case for entrants does not look promising. We retain our BUY recommendations on Bharti, RCOM and Idea. We are sceptical of the ability of new competitors to seriously threaten the incumbents, though international companies may enter the fray through greenfield efforts and acquisitions.
BHEL (Disappointing 4QFY08, BUY): The key disappointment in BHEL's 4QFY08 results is the tepid 4.7% YoY growth in revenues. We await management's clarification on this, but it looks like the shortfall may have been due to delays in stabilisation of the expanded production capacity or supply-chain bottlenecks. Net margins have declined 190bps YoY and EBITDA margins have potentially declined by 250bps YoY. One positive aspect of the results is that order inflows, at Rs502.7bn for FY08, were above our estimates of Rs484.5bn, providing strong visibility for our revenue and earnings estimates for FY09-10ii. The key issue remains execution, as this quarter's results highlight.
Cement Sector (Inflation pressures): We see turbulent times ahead for the cement sector over the next 6-12 months, with the increase in utilisation rates of new capacities restricting pricing power, and rising costs dragging down profitability. Nevertheless, we remain positive on cement companies with large capacity expansion plans and cost reduction initiatives, which we believe would allow these companies to tide over these issues and register positive growth. We recommend BUY on Grasim, Madras Cements, Shree Cements, UltraTech Cement and India Cements. Inside, we also present a snapshot of our March 2008 result expectations.
Steel Sector: Stand-off with government over: Indian steelmakers have decided to cut prices, in keeping with the government's wishes. They have agreed to cut prices of long (negative for SAIL and Tata Steel) and galvanised products while leaving those of flat products untouched. The price cuts announced are unlikely to have a significant impact on steel companies' earnings. However, if inflation remains high, further government intervention cannot be ruled out. This would keep steelmakers' earnings multiples under pressure until inflation subsides. We prefer Tata Steel over JSW Steel, given the former's higher international exposure and attractive valuation. We maintain Sell on SAIL.
Inside India – Ports (Vast, under-utilised coastline): We recently published our new research product, Inside India, which comprises a series of maps exploring a variety of the country's aspects. Today, we showcase a map depicting India's ports. India has a long but highly under-utilised coastline. This should change in the years ahead, as the government has chalked out an aggressive programme that will double the country's port capacity over the next five years.
Corporate Front Page
-
BSNLqqqqqqqqqSteel producers, including Tata Steel and Rashtriya Ispat Nigam Limited agree to cut prices by Rs2,000/MT on long products. (BS)
- Reliance Industries submits Rs300bn proposal to government for setting up two semiconductor units. (FE)
- Cummins India to invest Rs2bn in current fiscal to expand capacities for producing automotive and industrial engines. (BS)
- Reliance Industries on the look out to buy global oil terminals. (DNA)
- Jet Airways to sell 5-10% stake through a private placement. (FE)
- Videocon's telecom arm is in talks with Deutsche Telekom, Orascom and AT&T to form a Joint Venture. (ET)
- Cairn India may foray into city gas distribution in collaboration with GAIL. (BL)
- Apollo Hospitals plans to increase capacity to 10,000 beds in the next two years; to invest Rs3.8bn. (BS)
- Aditya Birla group cement sales increase 2.8% in March to 3m tons. (BL)
- GSPC may raise US$1.5bn via IPO to fund its KG gas basin plan. (ET)
- Tata Motors gets Thailand government approval to manufacture 'eco cars' at an investment of Rs10bn. (Mint)
- BHEL plans to supply 1,000 railway locomotives for Dedicated Freight Corridor project in partnership with global firms. (Mint)
- Dr Reddy's buys Italian generics firm Jet Generici. (BL)
- Ranbaxy Laboratories announces launch of BONISTA– Teriparadite an injection for treatment of osteoporosis. (FE)
- Adani Power plans to expand capacity by 10,000MW. (DNA)
- M&M decides to set up its own plant in Chennai. (BS)
- Shyam Telelink-Sistema JV get start up spectrum in seven states to rollout CDMA services. (DNA)
- Garware Offshore plans to buy five new vessels over the next one year. (BL)
- NHPC plans an IPO in the second quarter of current fiscal; plans to add 4,000MW capacity by 2012. (BS)
- AV Birla is planning to foray into financial services through a separate holding company. (ET)
- Kingfisher-Deccan has been asked by aviation ministry to prune its international flight list. (TOI)
Economy Front Page
- Index of six core infrastructure industries grew by 8.7% in February against 7.6% a year ago. (BS)
- Insurance regulator IRDA allows insurance companies to lend shares to foreign and domestic institutions. (Mint)
- Steel companies are likely to cut prices to spare curbs on current export commitment of the company. (FE)
- Government may ban futures trading on food items like edible oil and potato to lower inflation. (FE)
- Reserve Bank of India hikes cap on overseas investments by mutual fund to US$7bn.(FE)
- Direct tax collection crosses Rs3trn for 2007-08. (FE)
- SEBI allows direct market access to institutional investors. (FE)
- Petroleum minister seeks zero custom duty on crude oil. (FE)
- Government weighs price cap on key items to curb inflation. (ET)
- MRTPC has ordered an inquiry to probe into any cartelization by GSM players to distort competition.(ET)
- Government surplus with RBI rises to Rs820bn. (ET)
RegardsAniruddha Dange, CFAD: +91 22 6620 6640M: +91 99675-75000
BHEL (Disappointing 4QFY08, BUY): The key disappointment in BHEL's 4QFY08 results is the tepid 4.7% YoY growth in revenues. We await management's clarification on this, but it looks like the shortfall may have been due to delays in stabilisation of the expanded production capacity or supply-chain bottlenecks. Net margins have declined 190bps YoY and EBITDA margins have potentially declined by 250bps YoY. One positive aspect of the results is that order inflows, at Rs502.7bn for FY08, were above our estimates of Rs484.5bn, providing strong visibility for our revenue and earnings estimates for FY09-10ii. The key issue remains execution, as this quarter's results highlight.
Cement Sector (Inflation pressures): We see turbulent times ahead for the cement sector over the next 6-12 months, with the increase in utilisation rates of new capacities restricting pricing power, and rising costs dragging down profitability. Nevertheless, we remain positive on cement companies with large capacity expansion plans and cost reduction initiatives, which we believe would allow these companies to tide over these issues and register positive growth. We recommend BUY on Grasim, Madras Cements, Shree Cements, UltraTech Cement and India Cements. Inside, we also present a snapshot of our March 2008 result expectations.
Steel Sector: Stand-off with government over: Indian steelmakers have decided to cut prices, in keeping with the government's wishes. They have agreed to cut prices of long (negative for SAIL and Tata Steel) and galvanised products while leaving those of flat products untouched. The price cuts announced are unlikely to have a significant impact on steel companies' earnings. However, if inflation remains high, further government intervention cannot be ruled out. This would keep steelmakers' earnings multiples under pressure until inflation subsides. We prefer Tata Steel over JSW Steel, given the former's higher international exposure and attractive valuation. We maintain Sell on SAIL.
Inside India – Ports (Vast, under-utilised coastline): We recently published our new research product, Inside India, which comprises a series of maps exploring a variety of the country's aspects. Today, we showcase a map depicting India's ports. India has a long but highly under-utilised coastline. This should change in the years ahead, as the government has chalked out an aggressive programme that will double the country's port capacity over the next five years.
Corporate Front Page
-
BSNLqqqqqqqqqSteel producers, including Tata Steel and Rashtriya Ispat Nigam Limited agree to cut prices by Rs2,000/MT on long products. (BS)
- Reliance Industries submits Rs300bn proposal to government for setting up two semiconductor units. (FE)
- Cummins India to invest Rs2bn in current fiscal to expand capacities for producing automotive and industrial engines. (BS)
- Reliance Industries on the look out to buy global oil terminals. (DNA)
- Jet Airways to sell 5-10% stake through a private placement. (FE)
- Videocon's telecom arm is in talks with Deutsche Telekom, Orascom and AT&T to form a Joint Venture. (ET)
- Cairn India may foray into city gas distribution in collaboration with GAIL. (BL)
- Apollo Hospitals plans to increase capacity to 10,000 beds in the next two years; to invest Rs3.8bn. (BS)
- Aditya Birla group cement sales increase 2.8% in March to 3m tons. (BL)
- GSPC may raise US$1.5bn via IPO to fund its KG gas basin plan. (ET)
- Tata Motors gets Thailand government approval to manufacture 'eco cars' at an investment of Rs10bn. (Mint)
- BHEL plans to supply 1,000 railway locomotives for Dedicated Freight Corridor project in partnership with global firms. (Mint)
- Dr Reddy's buys Italian generics firm Jet Generici. (BL)
- Ranbaxy Laboratories announces launch of BONISTA– Teriparadite an injection for treatment of osteoporosis. (FE)
- Adani Power plans to expand capacity by 10,000MW. (DNA)
- M&M decides to set up its own plant in Chennai. (BS)
- Shyam Telelink-Sistema JV get start up spectrum in seven states to rollout CDMA services. (DNA)
- Garware Offshore plans to buy five new vessels over the next one year. (BL)
- NHPC plans an IPO in the second quarter of current fiscal; plans to add 4,000MW capacity by 2012. (BS)
- AV Birla is planning to foray into financial services through a separate holding company. (ET)
- Kingfisher-Deccan has been asked by aviation ministry to prune its international flight list. (TOI)
Economy Front Page
- Index of six core infrastructure industries grew by 8.7% in February against 7.6% a year ago. (BS)
- Insurance regulator IRDA allows insurance companies to lend shares to foreign and domestic institutions. (Mint)
- Steel companies are likely to cut prices to spare curbs on current export commitment of the company. (FE)
- Government may ban futures trading on food items like edible oil and potato to lower inflation. (FE)
- Reserve Bank of India hikes cap on overseas investments by mutual fund to US$7bn.(FE)
- Direct tax collection crosses Rs3trn for 2007-08. (FE)
- SEBI allows direct market access to institutional investors. (FE)
- Petroleum minister seeks zero custom duty on crude oil. (FE)
- Government weighs price cap on key items to curb inflation. (ET)
- MRTPC has ordered an inquiry to probe into any cartelization by GSM players to distort competition.(ET)
- Government surplus with RBI rises to Rs820bn. (ET)
RegardsAniruddha Dange, CFAD: +91 22 6620 6640M: +91 99675-75000
4/3/08
Buy Godavari Power
DearALL,
Now Buy good Fundamental Stocks like GODAVARI POWER & ISPAT LTD at 165/- Quoting BSE, NSE (10/- Face Value).Global Markets is stabilizing. In Indian Equities avialble at good prices. Worst is over. I think FII`s also coming back to Indian Markets to Invest. All Bulls are coming back to Market. Annual Results also coming out in April. Start Buying at low levels Now. Don't panic Sell. Buy good fundamental equities partially daily, You will get 30 to 50% appreciation within 1 to 2 months time. Risk is very very less. My Expactation : 90 % chances Upside only 10% chances Down Side for short term (1 Month).
GODAVARI POWER & ISPAT Ltd, Trading in BSE & NSE at 165/-- in B Group.This is 10/- FaceValue share trading at 165/-. Yearly high 400/- in January 2008 (Before marjet Crash), its come down to 155/- recent low. Now trading at 165/-. Daily grabbing with Mumbai BIG BIG Bulls because of Now stock is available at very very cheep price at 165/- EPS 40+ expecting for 2007 - 2008 Annual finalcial, with PE 4 only. Narmally in worst condition also PE will at 8 for Power and Ferro Alloys. But Now PE is only 4.If you have already this equities buy some more make average. This is company is doing very very good. Slowly grab this stock. Fundamental is very very good. Global cues and Market worst is over. Don't Sell if you have Godavari Power & Ispat equities. Stay Invest and wait up to 250/- minimum.
GODAVARI POWER & ISPAT Ltd at 165/- (Annual EPS is 40+ Expecting) PE only 4. Normally take Power companies High companies PE was 40, Medium companies PE was 15. If we take medium companies PE 15 It will come 600/-. Now markets are week. So If we take PE 6 It will touch 250/- minimum before Annaul Financila Results declaring (One months time). Book Value also good. Good fundamental. Very Very less risk at present rate. Only 10% chances downside, 90% chances Upside for 1 to 2 months time. SO hurry Buy at current level at 165/-. GODAVARI POWER & ISPAT Ltd Equity was 24 Crores. Company Annonced good results last Three quarters (21 Crore, 21 Crores & 24 Crores, Forth Quarter results also coming good with 28 Crores Net Profit. , the company expects to achieve a PAT of Rs 96 Crores for FY08 So Annual EPS is coming 40/- + Promoters Share Holding 64%, Forign Holding 5%, Financial Institutions 11%, CorporateBodies 6%, Public only 14%.HDFC Children Gifts - Investment Plan - Growth --- 3.37% ABN AMRO Future Leaders Fund - Growth --- 2.45% ABN AMRO Future Leaders Fund - Growth --- 2.45%DSP ML Micro-Cap Fund - Growth --- 1.83%The business model of Godavari Power & Ispat Ltd (GPIL) is on strong footing and is on way strong growth path. It is carving great value creation and hiddenvalue shall unfold with the passage of time to investor\\`s delight.This is a jewel stock which value investors must keep onaccumulating on decline. The more declines more buy shall be thebest investment strategy. Just look into recent announcements thatthe company has made which shall result into mind blowing wealthcreation:
The Company has allotted 10,00,000 warrants convertible into equityto M/s.Hira Industries Limited (Promoter group) at a price ofRs.324/- per warrant which will be converted into one equity shareof Rs. 10/- each fully paid at a premium of Rs 314/- per share.During the current meltdown, this stock is available in the marketat throwaway mouth watering price of Rs.165 per share which meansinvestors are getting stock at 70% discount from promoter\\`s price.
India success story is here to stay for next decade and shall bemost favored economy of the world and stocks like GPIL shall go longway in wealth creation and shall deliver mind blowing returns to theinvestors and shareholders. By buying this stock, investors shallcry with happiness:
Now Buy good Fundamental Stocks like GODAVARI POWER & ISPAT LTD at 165/- Quoting BSE, NSE (10/- Face Value).Global Markets is stabilizing. In Indian Equities avialble at good prices. Worst is over. I think FII`s also coming back to Indian Markets to Invest. All Bulls are coming back to Market. Annual Results also coming out in April. Start Buying at low levels Now. Don't panic Sell. Buy good fundamental equities partially daily, You will get 30 to 50% appreciation within 1 to 2 months time. Risk is very very less. My Expactation : 90 % chances Upside only 10% chances Down Side for short term (1 Month).
GODAVARI POWER & ISPAT Ltd, Trading in BSE & NSE at 165/-- in B Group.This is 10/- FaceValue share trading at 165/-. Yearly high 400/- in January 2008 (Before marjet Crash), its come down to 155/- recent low. Now trading at 165/-. Daily grabbing with Mumbai BIG BIG Bulls because of Now stock is available at very very cheep price at 165/- EPS 40+ expecting for 2007 - 2008 Annual finalcial, with PE 4 only. Narmally in worst condition also PE will at 8 for Power and Ferro Alloys. But Now PE is only 4.If you have already this equities buy some more make average. This is company is doing very very good. Slowly grab this stock. Fundamental is very very good. Global cues and Market worst is over. Don't Sell if you have Godavari Power & Ispat equities. Stay Invest and wait up to 250/- minimum.
GODAVARI POWER & ISPAT Ltd at 165/- (Annual EPS is 40+ Expecting) PE only 4. Normally take Power companies High companies PE was 40, Medium companies PE was 15. If we take medium companies PE 15 It will come 600/-. Now markets are week. So If we take PE 6 It will touch 250/- minimum before Annaul Financila Results declaring (One months time). Book Value also good. Good fundamental. Very Very less risk at present rate. Only 10% chances downside, 90% chances Upside for 1 to 2 months time. SO hurry Buy at current level at 165/-. GODAVARI POWER & ISPAT Ltd Equity was 24 Crores. Company Annonced good results last Three quarters (21 Crore, 21 Crores & 24 Crores, Forth Quarter results also coming good with 28 Crores Net Profit. , the company expects to achieve a PAT of Rs 96 Crores for FY08 So Annual EPS is coming 40/- + Promoters Share Holding 64%, Forign Holding 5%, Financial Institutions 11%, CorporateBodies 6%, Public only 14%.HDFC Children Gifts - Investment Plan - Growth --- 3.37% ABN AMRO Future Leaders Fund - Growth --- 2.45% ABN AMRO Future Leaders Fund - Growth --- 2.45%DSP ML Micro-Cap Fund - Growth --- 1.83%The business model of Godavari Power & Ispat Ltd (GPIL) is on strong footing and is on way strong growth path. It is carving great value creation and hiddenvalue shall unfold with the passage of time to investor\\`s delight.This is a jewel stock which value investors must keep onaccumulating on decline. The more declines more buy shall be thebest investment strategy. Just look into recent announcements thatthe company has made which shall result into mind blowing wealthcreation:
The Company has allotted 10,00,000 warrants convertible into equityto M/s.Hira Industries Limited (Promoter group) at a price ofRs.324/- per warrant which will be converted into one equity shareof Rs. 10/- each fully paid at a premium of Rs 314/- per share.During the current meltdown, this stock is available in the marketat throwaway mouth watering price of Rs.165 per share which meansinvestors are getting stock at 70% discount from promoter\\`s price.
India success story is here to stay for next decade and shall bemost favored economy of the world and stocks like GPIL shall go longway in wealth creation and shall deliver mind blowing returns to theinvestors and shareholders. By buying this stock, investors shallcry with happiness:
EXPECT Q4 EARNINGS TO DISAPPOINT: RELIGARE SEC
EXPECT Q4 EARNINGS TO DISAPPOINT: RELIGARE SEC
Sangeeta Purushottam of Religare Securities has a view that a fair amount of uncertainty still prevails in the market though immediate rallies cannot be ruled out. Speaking to CNBC-TV18, she adds that overall market is likely to be rangebound and inflation numbers are weighing on sentiments. She further says that Q4 earnings are going to disappoint as it is likely to see impact of slowdown in last 6 months.
Excerpts from the exclusive interview with Sangeeta Purushottam: Q: Do you sense a complete lack of confidence right now in the market?
A: There is obviously a fair amount of uncertainty because we are seeing news flow which is been fairly mixed. So this phase of the market is likely to be what we will see for the next few months. I don’t rule out intermediate rallies happening in between a thousand points plus or minus but essentially the market is going to remain pretty much range bound till we have a sense overall that equities have become an asset class to be backed into. So it’s going to take a while for the whole thing to start to pan out.
Q: What do you think is the big problem now, is it just mood or sentiment, lack of liquidity or is it the macro news flow which is worsening sentiment spooking investors?
A: It’s a bit of all of these, the sentiment was bad with the fall that we saw over the last couple of months and what’s added to that has been the uncertainty led by the inflation number, so you are not really seeing consistent good news come out and that’s what needs to be happened, the bad news needs to stop and that’s what will help the market find a bottom and then we need to see a certain spate and consistency of good news coming out.
Q: Next week, we are heading into an earning’s season, there is a lot of fear going around that when the numbers tumble out, we will have a lot of disappointments because of the hits taken on derivative losses etc, do you think we will really end up this earning season with some disappointment?
A: That’s likely because if we just look at a little bit of what happened in the last earnings season, it showed results which were either in line or were a little disappointing and was in the contrast with the previous earnings season where the results are either in line or a little bit better. This quarter will also show some of the impact of the slowdown that we have been seeing over the last 6 months, so you could see some surprises on the operational front and how much of a surprise if a derivative side really throws up for companies is something we will have to actually wait and see.
I don’t really see this earnings season as something which is going to lead to a reversal in the trend for the markets. It’s possible that posts the season, is when we may actually start to bottom out because by that time hopefully there should be some stability in the global news flow also.
Q: What’s going on withBHEL, a blue chip stock, since a last couple of days has lost about 12%-13%, any thing specifically wrong with the earnings expectations there, the way its coming down?
A: It is hard to say as they did have a poor 3rd quarter, so there is some expectation building up on that the fourth quarter may not necessarily be that great, the other factor could be the possible impact that the salary increases could have on companies so I think we will just really need to wait and see.
Q: How are you reading the situation for steel companies, the market has given it a bit of a thumbs down already, do you think its an over reaction or a justified concern in steel prices?
A: Given what we saw happened with the cement sector over the last year, the concern is illegitimate and we have seen that particularly at least in the case of PSUs, the government’s been pretty strong allowing prices to rise. So in the current environment, it is a legitimate concern and the other issue is commodities is one asset class which is actually been holding on and in the wake of a slowdown in growth overall that we are likely to see, it could just be a matter of time before we start to see a correction there so this could be maybe something which just starts off and then we start to see some kind of a correction happening in the commodity space as we go along.
3/29/08
Investing tips : Lakshmi Electrical Control / Patel Airtemp / Nava Bharat Ventures etc
Sreenath Raghav
Hi,
Invetsing tips here..............
Lakshmi Electrical Control (Rs.263.95) manufactures contactors,
thermal overload relays, control relays, electrical control panels
and industrial plastic components.
Its Fy07 EPS was Rs.31 while FY08 EPS is likely to be around
Rs.40/42 level.
The stock has reacted from a high of Rs.589 to CMP of Rs.263. The
market cap is just Rs.66 cr.
Risk factor is the rising raw material and manpower costs along
with a slowdown in industry, which will affect margins.
Investors can benefit from this reac
tion and accumulate this stock on dips for good long-term growth.
* Patel Airtemp (Rs.46.80) is engaged in the manufacture and sale
of extensive range of Heat Exchangers such as Shell & Tube type,
Finned tube type and Air cooled Heat Exchangers, Pressure Vessels,
Air-conditioning and Refrigeration equipments and Turnkey HVAC
Projects in India and exports. The company has technical
collaboration with M/s. TEK FINS Inc. USA for design and manufacture
of Air cooled Heat Exchangers. All these products are supplied to
leading industrial sectors like Power Projects, Refineries,
Fertilizers, Cement Plants, Petrochemicals, Pharmaceuticals, Textiles
and Chemical Industries.
The order position of the company is good and it is performing well
in the current year. If its first 9 months working is any indication
company, it should report an EPS of around Rs.9 in the current year.
The stock has reacted from high of Rs.145 to the current level
where its market cap is just Rs.25 cr. Accumulate at current levels
or at dips.
* Nava Bharat Ventures (Rs.193.55) is into sugar, ferro alloys and
power generation. It is said to be doing well. The stock has reacted
from a high of Rs.352 to the current level. Investors can keep a
watch to add this stock on reactions.
* PAE Ltd. (Rs.19.25) is in the automotive and non-automotive
(industrial) segments of batteries and components/systems The power
segment presents its new growth opportunities as PAE has launched
power back-up devices and systems and sees excellent growth potential
for them. It is a profit making and dividend paying company. In the
current year expected EPS is around Rs.5/6. Last dividend was around
10%, which is likely to rise to 12% in the current year. At present,
market cap is just Rs.19 cr. The stock has reacted from a high of
Rs.54 to the current level of Rs.19 where it looks very attractive
for investment.
* Torrent Cables (Rs.180) - Those who booked profits at higher
levels can add this stock at the current level of Rs.180 or on dips.
Full year expected EPS is Rs.38/40.
*ABG Shipyard (Rs.595) is another fundamentally strong stock, which
investors can add on reaction.
* Sesa Goa (Rs.3160.95) - Firm iron ore price may give a good push
to this stock.
* Investors should take advantage of this free fall of mid-caps and
accumulate fundamentally strong stocks with good dividend yield like
PNB Gilts, First Leasing, Tata Metalik, Central Bank, Andhra Bank,
Oriental Hotels, Supreme Industries to name a few.
Courtesy : Money Times
Sreenath Raghav
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