L&T Finance Holdings - Hold

L&T Finance Holdings Half Yearly Results announced.
Let us analyse the same.
The Net Profit is 124 crores on a capital of 1714 crores, giving an annualised EPS of 2.9.
At Rs.51, the stock is quoting at a PE of 17.58 which is very expensive on the face of it.
Yes, you can similar stock at a PE of 10, meaning around 30-35, but do not forget the name behind the company., L&T!!!

At the same time, if we go by the Price to Book Value, then L&T Finance Holdings is definitely cheaper than India's leading Infrastructure Finance company, IDFC.
Even M&M Financial is quoting at a higher PBV.

The Company is a Great Future Multi bagger and a definite Blue Chip in the making.

L&T Finance Holdings is growing FASTER than the Industry and is set to become a major major player very soon.

In fact, the Net Profit would have been higher by if not for prudent accounting policy of keeping aside 2500 crores for provising towards exposure to Micro Finance exposure in AP.

It has a lot of hidden assets like
5% holding in Federal Bank
7% holding in Vijaya Bank
5% in City Union Bank
100% in L&T Mutual Fund
besides holding substantial percentage in L&T Insurance.
L&T Finance Holdings is also one of the largest frontrunners to becoming a bank.

The company enjoys a better quality loan book, has higher margins besides and the advantage of L&T parentage.
The long-term prospects of the company continue to remain attractive as shown by its strong Q2 results.

Long Term Investors accumulate at every decline and Hold tight.
You are sitting on a Gold Mine.



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VALUEMART AGM

Here's some takeaway from the Valuemart AGM

Valuemart Info conducted its AGM recently on 30th September at ADA Rangamandira, JC Road, bangalore.
The AGM was a smooth affair and passed off well.
The exit of C.K.Vasudevan was, of course, a hot topic of discussion and many shareholders, including your truly, raised concerns on his shock exit and capability of his replacement.

Mr. Ramamurthi, assured that nothing sinster should be looked into the xit of C.K.Vasudevan.
He explained that Mr.C.K.Vasudevan left to pursue his personal businesses and however will continue to head the group company VALUEMART RETAIL LTD.
The Company is on the right track as confirmed by its consistent good results.
Another comfort factor is that the Management took a Preferance Offer at a Premium of 25paise.
The new Director on board Mr.Prem Anand is also on the board of INDUS FILA LTD.
He seems to have a lot of ideas for the company which he revealed over the Breakfast.
Overall, a very very safe bet at Rs.2.6 - Rs.3 levels that the stock is quoting at present.

Regards,
Srikanth Matrubai





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BUY DATANET @25 LEVELS

Datanet Systems was quoting between Rs.4 to Rs.7 levels before delisting.
which means that scrip should be quoting at a minimum level of Rs.60 and could possibly go up to Rs.105....

your 15 shares of Datanet has now become1 share.
which means, that Datanet which was quoting at Rs.4 levels before the delisting should be quoting at 60 (15*4), but is actually quoting at 25 levels.
This is a huge arbitrage opportunity.
You are getting 50% Discount!!!
This could be because of the confusion on part of sharesholders  are having.

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BUY UB AT 40% DISCOUNT

The Best Buy for 2011 List is ready.
And the first stock I am going to recommend to you is...


MILLENIUM BEER :

 (BSEId :521147)


Millennium Beer Industries Limited (MBIL) [formerly known as Inertia Industries Limited was incorporated in the year 1989 and promoted by Mr. Sunil Kumar Tandon and his associates.
In the year 2001 the UB Group acquired a substantial equity stake in the company and for revival of the company invested substantially into the company. The Company is now controlled and managed by UB Group. In the year 2004, the name of the Company was changed from Inertia Industries Limited to Millennium Beer Industries Limited.

>

The stock is quoting at Rs.29. If you see the fundamentals, you will be shocked. The company is under loss and for quite a long time. Then why am I recommending this????

> Actually, the Stock is being merged with United Breweries. Now, UB is quoting @ 560. For every 12 shares of Millenium Beer, you will get 1 UB.

> So, if you buy 12 shares of Millenium Beer@ 29, then your cost will be Rs.348., whereas UB is quoting at Rs.560.

> So, in directly you are buying UB@348 instead of Rs.560 and make a clear profit of Rs.212 per share at one shot.

By buying Millenium Beer, you are buying UB at a discount of 40%. As they brag.... A NEW YEAR  DISCOUNT SALE... BUY NOW OR NEVER!!

The Merger has already been approved by Shareholders of both the companies and also been approved by Courts.

Now, the question, you would obviously be having... if this big discount is there, then why are the Public not buying??

Actually, when the news of the Merger was announced, the share price of Millenium Beer had shot up to Rs.40 per share.
But,

as it happens so often, the General Public quickly forgets and moves onto the next news...The stock price corrected and is now quoting at Rs.29 levels.

And, as and when the Date of Merger approches the stock of Millenium Beer is sure to align with the stock price of UB and at current price of UB, the Millenium Beer


stock should be quoting at Rs.45 at the least.



There is a strong Arbitrage opportunity here.

The working of the company too is improving. Its net profit for the first quarter increased to Rs3.41 crore from Rs1.12 crore in the same quarter last year.

During the June 2010, its revenues increased to Rs102.20 crore from Rs80.89 crore.

How is that for a good arbitrage opportunity??

I am sure that you will not want to miss such a golden chance.



Since all the regulatory approvals is in place, the process should be completed in about 1 months time.




 So, buy Millenium Beer for definite profit of at least 20% even if the markets falls by 5000 points.
STRONG BUY.

Best of luck,
Srikanth Matrubai



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DATANET MERGER WITH WEP SOLUTIONS APPROVED

The reverse merger of Datanet Systems with the Wep Solutions' India's Division of Managed Printing Solutions was approved in the Court Convened Meeting held on 20th Novermber in the office of Wep Solutions in Lavelle Road.
The Confused Shareholders had a good interactive session with the management of Datanet Systems and were satisfied with the answers.
But, at the same time disappointed by the lack of arrangements of snacks/breakfast, espeically considering that the Meeting was held at 9.30 am and went on till 10.30 am.
The Meeting was well attended.

The Shareholders were obviously very confused with the Reduction in their Equity Shares and wanted a Clarification from the Mangement.

The Management had a quiet interesting explation.
This is how one of the Directors explained "Suppose you have 1000 notes of Rs.1 each which amounts to Rs.1000 and you go to Bazaar, you will obviously find it difficult to exchange it for goods.
But, if the Same Rs.1000 you have is not through Rs.1 note but Rs.100 Notes, then it is very easy and convenient to you to trade.
Likewise, we have ensured that your Market Value of Shares will remain same, only the No. of Shares will reduce."

WEP SOLUTIONS REVENUES:
When Srikanth Matrubai queried about the Financials of Wep Solutions' Printing Division, the Wep management gave these figures :

Total Revenue : Rs.11 Crores
Net Profit : Rs.3 Crores.

The Management also clarified that the Company would also invest about 1 Crore shares in the New Company at the SEBI approved price, which means definite premium, which in turn, would boost the Book Value of Datanet Systems.

NAME CHANGE?
When queried if there would be any name change...the Management jokingly said:"Let the Marrige be over first..
then we will see"
When pressed further, he clarified :"Indian tradition is such that the bride adds the surname of the Groom, so it is very obvious that Datanet would add the "WEP" name to itself.

MY FEELING :
The merger with a Profitable Company, Strong Parent Backing, Strong Management, Name Change should do wonders to the Stock.
You could BUY Datanet at the current price of around 5.5 which should give you decent return of at least 50% minimum before the entire process concludes.


Best of luck,
Srikanth Matrubai




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