EQUITY ADVISE

L&T Finance Holdings - Hold

2011-11-02T23:18:00.000-07:00

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.

Also visit Also visit
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

VALUEMART AGM

2011-10-07T08:58:00.000-07:00

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

Also visit Also visit
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

BUY DATANET @25 LEVELS

2011-06-12T23:12:00.000-07:00

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.

Also visit Also visit http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

BUY UB AT 40% DISCOUNT

2011-01-05T07:19:00.000-08:00

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

Also visit Also visit
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

DATANET MERGER WITH WEP SOLUTIONS APPROVED

2010-11-27T10:00:00.000-08:00

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

Also visit
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

BUY DATANET SYSTEMS@5.55 FOR A DOUBLE DIGIT TARGET

2010-11-06T08:16:00.000-07:00

DATANET SYSTEMS LTD.
BSE Code : 532373
ISIN code: INE434B01011

23/57, 2nd Floor,(Gowthama & Company)
41st Cross, East End 'C' Main Road,
9th Block, Jayanagar,
Bangalore- 560 069, India
Telefax: 080-2678 4748.
vish@datanetsystemsltd.com
Web Url:
http://www.datanetsystemsltd.com

Datanet Systems is in the final process of merging with the managed Printing Solutions Division of Wep Solutions India Ltd.

Towards this, the Board will be reducing the existing 12,601,300 equity shares of Rs. 10/- each to new 790,993 equity of Rs. 10/- each i.e., one new share for every 15 existing shares, in view of the accumulated losses resulting in erosion of the networth of the Company.

Further to this, Wep Solutions will be issued shares of 1,04,71,681 shares which instantly makes the Wep Solutions owners a majority shareholder of Datanet Systems Ltd with more than 90% stake.

The appointed date for the scheme of arrangement has been fixed as April 01, 2010.

The Address of Wep Solutions India Ltd is...
wep solutions India Limited
No. 40/1 A, Basappa Complex
Lavelle Road
Bangalore - 560001
Karnataka
Phone: +91 80 66112000
Fax: +91 80 22270378

Wep Solutions was legally spun out from Wep Peripherals (a subsidiary of Wipro Ltd) in September 2008. Wep solutions is promoted by veterans of Wipro.

Wep solutions Ltd is promoted by
Ram.N.Agarwal., who began his career in Wipro in 1977 as Area Sales Manager for Maharastra.. He served Wipro till 1999.

Mr.A.V.Sridhar who spent 16 years at Wipro. He has served as President of Wipro with responsibilities spanning distribution, systems integration, software services and eCommerce. At Wipro, he established partnerships with Sun Microsystems, Cisco, Cadence, Adobe, AutoDesk and TIBCO among others.

Mr.Ramesh Emani, who was with Wipro for more than 24 years in various positions including as President of Telecom and Product Engineering solutions.

Mr.Deepak A.Chari.
Mr.Deepak A. Chari was with Wipro for well over 15 years. He joined Wipro e-Peripherals when it was made a separate corporate entity during 2000-01. He is since then with the WeP Peripherals ltd. currently working as its Senior General Manager -Finance & Business Development.

The Wep Solutions Managed Printing Solutions has a wide range of Single and Multifunction Printers of mono and color. Wep Solutions manage more than 10000 printers in more than 750 cities across India.
More than 800 companies have Wep Solutions as their preferred partner to provide managed printing solutions, when it comes to their printing & imaging needs.

Wep Solutions is reported to have a staff strength of 300.

Wep Solutions has planned a IPO in 2002 as an exit option for its shareholders. It was cancelled due to unfavourable market conditions.

With such bright and talented persons coming into the Datanet Systems Ltd., we can be sure of better days ahead for the company.

The merger (or shall we call it reverse merger?), the face of Datanet changes dramatically.
The stock is sure to grab eyeballs and catch investors attention.
The Court convened EGM for the merger is set on November 20.
And a sharp spike in the stock is definite.
Buy now at a throwaway price of Rs.5.55.
I am expecting the stock to be quoting at least Rs.10 even if the Sensex tanks from the present 21000 levels to 15000 also.
What do you feel???

Also visit Also visit
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

HIMATSINGKA FACTORY VISIT

2010-09-18T10:49:00.000-07:00


Srikanth Matrubai with Srikanth Himatsingka


Registration at Regd Office


Factory Gate


Our Buses


Masks for Dust Protection


The Boiler Unit


Getting Company insights from the Executive Director Srikanth Himatsingka


Interaction with the Shareholders


The Huge Factory

Himatsingka Seide is an integrated Export Oriented Unit manufacturing High end furnishing and apparel fabrics. It is a fully integrated company producing silk yarn to high end furnishings and apparels.

Himatsingka Seide has been the leader in the Non-Silk Fabrics.

The Company has had recently set up a Greenfield Project at the Hassan SEZ (about 185kms from Bangalore) to manufacture Bed Linen products. The Total Cost of the Project was about Rs.400 crores. The integrated project has an installed capacity of 60k metres per day of Cotton Fabrics and 8k set per day of Made up Products.
Watch the Factory Visit Video here.................................

http://http://www.indyarocks.com/videos/Effluent-Water-Treatment-532040

http://http://http://www.indyarocks.com/videos/Water-Treatment-532021

The Company recently arranged a Factory Visit for esteemed shareholders.

The Visit was very well organised. About 230 shareholders had booked for the Factory visit and 180 turned up.
The Company had arranged about 5 buses and finally 1 bus had to be sent back. So, finally 4 buses left the Company Office at Bangalore at 7am. Breakfast was arranged at Mayura Hotel, Bellur Cross(90kms from Bangalore).

Breakfast at Mayura Hotel

The bus reached the Hassan SEZ factory at 12Noon. All the Shareholders were warmly welcomed with Roses and Cup of steaming hot coffee and hot tea.

Shareholders welcomed at Hassan Factory

The shareholders were briefed about the facility in the Factory and about the dos and donts once inside the production facility.
The Shareholders were split into Groups and each Group was taken one by one with a company official who guided them inside the production facility explaining the process involved in the production of the Bed Linen.

Explaining to Shareholders

The factory is set up on a Huge 110 acre land.

The machines are all modern and are neatly maintained.

We were told that there were about 3000 employees in the Factory out of which Women constituted about 2800!!!

Talk about Women empowerment. The Women are given training and are even taught to be literate. They are also given hostel facility.

In Between we were taken to the Company Canteen for Lunch. And surprise, the Executive Director, Mr.Srikanth Himatsingka joined us for Lunch.

Lunch

All the company officials too had the lunch in the Canteen. Lunch consisted of Roti, 3 Subzi, Sweet, Rice, Curds. I was informed that the menu is changed every day and that there is a special menu on Sundays. The food served was of high quality and quite tasty too.

I was told that the ED, does regularly drop in to have lunch in the Canteen itself and ensures that the workers feel comfortable about him.

Later on, we were taken to the Effluent Water Treatment Plant and were showed how the Dirty Water is treated and is recycled and used again.

After all this, Mr.Srikanth Himatsingka had a Q&A with Shareholders and answered each and every question patiently. He was open to criticism about the company performance and handled each tactfully.

We left the Factory at 4.30pm and after a Hi-Tea Break at Mayura Hotel, were back in Bangalore by 8.30.

Overall, a Good enlightening visit.

Regards,
Srikanth matrubai

ALSO VISIT
http://goodfundsadvisor.blogspot.com THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

Menu

Srikanth Matrubai with Srikanth Himatsingka

Women Empowerment

The Executive Director joining us for Lunch

Standard Chartered IDR

2010-05-23T04:16:00.000-07:00
INVEST

Standard Chartered Bank has come with an Indian Depository Receipt (IDR) issue.
The IDR is priced between Rs.100-Rs.115 which will help SCB raise between Rs.2400 crores to Rs.2760 crores. There will be a 5% discount to retail individual investors.

IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign company will deposit shares with a custodian, who will issue depository receipts based on these shares. This is the first IDR issue ever and history is being made.
IDRs are just the American Depository Receipts (ADR) and Global Depository Receipts (GDR) issued by Indian companies to raise money overseas. Likewise, Stanchart is issuing IDRs to raise money from Indian investors.
This will be StanChart’s third listing — the bank’s already floated in London and Hong Kong.

Standard Chartered Bank has been operating in India since 1858 has presence in 37 cities through its 94 branches. StanChart focuses on Asia, Africa and the Middle East with 90% of its profit before tax coming from these markets. The bank has a presence across geographies with mix of wholesale and retail banking products. It has no exposure to Greek sovereign bonds.

Mr Peter Sands, Group CEO, Standard Chartered PLC said "the issue is not so much for raising capital as for enhancing the bank's brand image in India, its second largest market in terms of profit, after Hong Kong".

TAXATION ISSUE :
The SCB IDR issue has a significant drawback and that is the IDR will be taxed even for Long Term Capital Gains@10.3(without indexation) and 20.6(with indexation).
The Short Term Capital Gains will be taxed @ 30.9%
Even Dividends will face the music of Dividend Distribution Tax.
The good news is that this IDRs will not attract Securities Transaction Tax.
The other significant risk associated with this IDR issue is the Currency risk. However, it must be said in SCB's favour that the risk is mitigated as SCB earns most of its revenue outside UK.

With the shares of Standard Chartered Plc closed at 1,613 pence on the LSE on Friday, the IDR works to about Rs.109.25 as 10 IDRs represent one share of the parent company.

WHAT OTHERS RECOMMEND :
BusinessLine : Invest. SCBs large size, well-diversified presence across emerging markets, along with a clean balance sheet and strong risk management systems, make the stock a good investment.

RECOMMENDATION :
The 5% discount adds to the attraction of owning a Foreign Bank at a decent price.
At around Rs.105 (after factoring the 5% retail discount), the IDR is priced at a discount to Indian peers like HDFC Bank and ICICI Bank. Do not expect 'listing gains' but invest for long term, you will not regret.

Also visit Also visit
http://goodfundsadvisor.blogspot.comTHE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

VALUEMART - CONTINUES TO IMPRESS

2010-05-19T09:45:00.000-07:00

Valuemart Info Technologies which is into the business of Software Development and BPO has announced that it has got a contract worth $4.5 million from Supreme Software Technologies, a UAE based firm.
The project deals with developing a Project Help Desk Suite, which is a web-based solution which tracks projects timeline.
PHDS can be used for multiple projects and at multi-locations all at one go and both onsite and offsite. This saves the user company to save time and money.

However, since this contract is third party in nature, the margins will not be much, but the company has managed to get a foothold in the lucarative UAE market and could look at getting more orders in the coming days and move up the ladder in the value chain.
For a company which had a turnover of Rs.8 crore in the previous Financial year, getting a order worth above Rs.20 crores spread over 2 years could well result in a
major rerating of the company. The assured inflow for the next two years could just be the kicker the company required to make it into the big league.
The stock which was quoting at Rs.1 during its Annual General Meeting in September 2009 has jumped by 5 times and is quoting at Rs.5 levels.

I had given a buy call previously at Rs.1.6 and later at 4.4.( http://equityadvise.blogspot.com/2010/04/valuemart-accumulate.html)

and I continue to be bullish on the stock.

Since Mr.Vasudevan and co have taken over the company, the financials of Valuemart has gone from worse to bad to good and now to better.
Valuemart continues to impress.

Also visit Also visit
http://goodfundsadvisor.blogspot.comTHE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

JAYPEE INFRA IPO - INVEST

2010-05-02T21:40:00.000-07:00
Jaypee Infratech, a part of the Jaypee Group, is tapping the capital market to raise a maximum of Rs 2,350 crore (USD 530 million). The issue, which has already opened on April 29 and ends May 4, has a fixed price band of Rs 102-117 a share. There is a 5% discount to the issue price for retail investors.
It is engaged in the development of the Yamuna Expressway and related real estate projects. The 165 km long 6-lane Yamuna Expressway will connect Noida and Agra in Uttar Pradesh.

WHAT THE EXPERTS SAY :
Vallabh Bhanshali of Enam Securities says "The pricing is good and one can INVEST".
Nirmal Bang has recommended subscribing to the issue with a long term view.We have arrived at a fair value of Rs 137 per share and at the upper band of the issue price of Rs. 117 the stock will be trading at a discount of 17.5% to the fair value.
SKP Securities has recommended avoiding the issue.
SHAREKHAN has said in its report that there is potential for upside in the stock’s valuations
Investment Advisor SP Tulsian likes this issue because Axis Bank have put in the money at Rs 115 per share.Tulsian says, is an interesting play. “I am positive on the stock.”
Angel Securities is neutral on the IPO.
Swastika Investmart has come out with a research report on Jaypee Infratech's IPO. The broking firm has recommended applying for the IPO with a medium term to long term view.
Businessline has recommended INVEST

MY RECOMMENDATION:
The Group inspires confidence. Axis Bank investing @ 115 is also a positive. Medium to Long term investors should consider INVESTing in the IPO.
Do not expect, however, much of listing gains.

Srikanth Matrubai

Also visit Also visit
http://goodfundsadvisor.blogspot.comTHE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

SATLUJ VIDYUT NIGAM IPO - RECOMMENDATION

2010-04-30T10:28:00.000-07:00
GOVT SEEMS TO HAVE LEARNT ITS LESSON

Hydro Power Generator SATLUJ JAL VIDYUT NIGAM LIMITED has come out with a Public Issue at a price band of 23-26 with a 5% discount to retail investors.

SJVNL is primarily into hydroelectric power generation and currently has the largest operational facility in India with an installed power generation capacity of 1,500 megawatt (mw).
Satluj Jal Vidyut Nigam Ltd (SJVNL) is a joint venture between the Centre and the Himachal Pradesh government. The Centre holds 74.5 per cent stake and the rest 25.5 per cent is held by the state government.
CARE has assigned an IPO Grade 4 to SJVN Ltd IPO. This means as per CARE company has 'Above Average Fundamentals'.
WHAT OTHERS HAVE TO SAY :
DNA says "Considering SVJNL's strong track record, long term investors can SUBSCRIBE"

Aditya Birla Money says " recommend to buy ipo issue for long-term perspective."
Motilal Oswal Financial Services said issue looked fairly priced.
Mehta Equities is positive on company's growth prospects and recommend investors to subscribe.
Hem Securities recommend investor to “subscribe” the issue.
Dalal Street biz says " We recommend investors to Subscribe to the IPO"
* Hem Securites: Subscribe
* SPA Securities: Neutral
* Way2Wealth: Subscribe
* Kredent: Subscribe for long term
* ShareKhan: Subscribe
Angel Broking has recommended a "subscribe" to the IPO.
SP Tulsian has recommended investors to "subscribe" to the issue.
Prabhudas Lilladher has advised "subscribe" to the IPO.
Udayan Mukherjee of CNBC TV18 says "do not see major listing gains for Satluj Jal".

MY RECOMMENDATION :
The IPO has been priced fairly valued and there should be listing gains., this is based mainly on the 5% discount. The Govt seems to have learnt its lessons with the dismal performance of previous IPOs.
SJVNL may not have too big listing gains, but should quote around 26-28.
The Price to Book Value is expensive compared to NHPC and thus upside is limited. The 5% retail discount will save the issue from being a flop.
Long term investors and conservative investors should definitely consider investing in this IPO., especially considering the fact that the Govt intially wanted to price this issue at Rs.30!!!!

Also visit Also visit
http://goodfundsadvisor.blogspot.comTHE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

VALUEMART - ACCUMULATE

2010-04-18T00:04:00.000-07:00

Investors can continue to accumulate Valuemart.
If you remerber, I had given a BUY call when the stock price was Rs.1.6. Now the stock has nearly tripled and quoting at Rs.4.4. Click here http://equityadvise.blogspot.com/2009/11/valuemart-value-buy.html

I had given the Buy call at around Rs.1.4 and now it is Rs.4.3.
I would still stick my neck out and say that Valuemart is a good buy at even this rate.
The company has wiped out all its losses. It has good reserves.
Moreover the Company seems to be on the lookout for a Acquistion. If this does happen, than the stock will be in altogether different league.

WHY BUY :
1) Company has wiped out all its losses and has been posting profits regularly.
2) The Promoters have invested 10mn equity shares at a premium of Rs.4 per share.
3) The Company`s topline was least affected in the recent recession.
4) The Company continues to focus on Inorganic growth and has had great success with its recent acquisitons.
5) The Company is proposing to revive its GDR issue.
6) The Company`s core strength has been the Domestic BPO Market which has shown strong signs of High Growth.
7) The Legal Process Outsourcing (LPO) is growing at a good rate and Valuemart is positioned well to exploit this.

Buy now and at every decline.

Also visit

http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

NMDC FPO- WHAT YOU SHOULD DO

2010-03-10T02:50:00.000-08:00

NMDC's Further Public Offer price band has been fixed between Rs.300 to Rs.350. This shows that even the Govt is confused about its price. Let us first see what the Experts have to say on this FPO.

WHAT OTHERS SAY :
The Hindu Business Line says "High revenue visibility, superior margins, large cash coffers and zero debt make NMDC a preferred mining stock. However, stiff market valuations are the only cause for concern."

Investment advisor SP Tulsian says "t is a clear advice to retail investors to apply at Rs. 300 per share. If price gets discovered at Rs. 300 per share, net cost of acquisition to them will be Rs. 285 per share, which will leave some profit on the table for the prospective retail investors".

CNBC TV18 in its report on the FPO says "Even at discount, NMDC FPO looks expensive to global peers".

Sandeep Mohan, High Networth Individual, says, "Rs 300 in my mind is a price which is on the higher side based on all the parameters that one has there to analyse. Avoid".

R Venkat Subramanian, CIO of Infina Finance Pvt Ltd says, at around Rs 300 maybe it is worth giving a shot.

Manish Bhatt of Prabhudas Lilladher says, one should subscribe to the issue at cut-off price with one-year horizon. He expects the pricing may be around Rs 300 per share, so that investors will get shares at Rs 285.

SKP Securities says "Even after considering that NMDC is the industry leader by volume, the valuations of the company are stretched compared to its domestic and global peers. We recommend to avoidthe issue."

Udayan Mukherjee, Managing Editor, CNBC-TV18 says, it is a good asset, but anything more than Rs 300 is a bit of a stretch. “I think it is a great company. But above Rs 300, I don’t think there is any margin of safety at all.”

Brijesh Mehra, Country Coverage Head, RBS, says "NMDC FPO premium over global peers justified"

Deven Choksey of KR Choksey shares, feels "Even at 350, NMDC is good considering the value of its mineral resources".

Angel Broking advises 'avoid' on NMDC FPO issue

SRIKANTH MATRUBAI advises :
The Further Public Offer of NMDC can be considered for investment at Rs.300. Retail Investors will get a further discount of 5% which will lessen their cost to around Rs.285.
NMDC is the largest iron ore producers in India.
NMDC has been a gaint performer with strong revenue visibility, huge cash reserves and zero debt. NMDC's capacity to maintain higher margins compared to peers is impressive.
INVEST AT RS.300.

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

KELTECH ENERGY - BUY

2010-02-08T09:16:00.000-08:00
EXPECT MORE FIREWORKS FROM THIS MULTIBAGGER

The Explosive Results from Keltech makes it a attractive buy for short term and medium term gains.

PROMOTERS:
Keltech Energy is promoted by Chowgule Group which has become a big Business Group since its modest beginnings in 1916. The Group has presence in Iron Ore Mining, Industrial Gases, Shipbuilding, Brewery, Explosives among others.

Keltech Energies Ltd was formerly known as Karnataka Explosives Ltd was incorporated in 1977 and manufactures a wide range of pre packaged Industrial Water Gel explosives and a variety of expanded Perlite Products. It has plants in Karnataka, MP, Maharastra and AP.

The company has recently decided to set up facility for Explosives accessories.

WHY BUY NOW???
Keltech Energy will benefit from the high growth in the Country's Mining sector.
We will further explore the various reasons for the "BUY" call.

Falling Input Costs:
The Falling prices of ammonia nitrate (main raw material) and the Packing Materials Costs has worked wonders to the profitability of the Company and the trend is likely to continue for at least another two quarters.

Low PE:
The Average Industry PE is 25.76 and Keltech Energy is quoting at a paltry 2.62. This gap will definetly bridged sooner rather than later. The Trailing EPS of Keltech is 84.9 giving it a PE of under 3.

Book Value :
The book Value is a healthy 126.69
The Company has a lean capital of only Rs.1 Crore and the Reserves stood at Rs.11.67 as on March 2009 which would have shot up after the spectacular results of the past 3 quarters.
The High Book Value makes the Company a sureshot BONUS CANDIDATE!

Dividend :
Dividend was 25% and should go up due to the Boom in EPS. Doubling of Dividend is a definite possibility.

Buy now and on every dip., Keltech Energy promises to be a MultiBagger.

Keltech is listed in BSE under the Code "506528"

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

Jubilant Foodworks IPO Review

2010-01-19T01:18:00.000-08:00

UNAPPETISING

Jubilant Foodworks which runs the Fast Food Retail Chain DOMINOS PIZZA brand has come out with a Intial Public Offer aiming to raise about 328 crores.

The Company has already in several anchor investors that includes Reliance MF, SBI MF, Blackrock, Canara Robeco MF and Fidelity for a total investment of Rs44.3 crore under its pre-IPO placement, which is a positive sign.

WHAT THE EXPERTS SAY :

Spice Group's Finance president Mr.Sudeep Bandyopadhyay feels that the Jubilant would be 'interesting' as it represents the growing fastfood business in India.

BusinessLine Says 'The IPO is stiffly priced at a PE of 34-36 compared to its peers such as Mcdonalds, etc which are available at a PE of 13-15 and recommends AVOID

Investment Advisor SP Tulsian said investors should AVOID the issue.

Manish Bhatt of Prabhudas Lilladher says that one can SUBSCRIBE with a 'Long Term' view.

Sharekhan says "Though the price looks expensive, the strong brand and sound cash flows make this a lucrative deal for the investors".

The Economic Times says "The issue has little value to offer to the retail investors. Investors keen on taking exposure in the out-of-home food service industry may probably get better valuations once the company gets listed."

Nirmal Bang says "The valuations look expensive though we believe good growth in the next few quarters may justify valuations going forward."

Swastika Investment has a "SUBSCRIBE" recommendation because of the niche industry the company operates and has a price target of Rs.200.

SRIKANTH MATRUBAI'S TAKE :

The Company's High Interest costs is a concern. The biggest against the IPO is that only about 20% of the IPO money will go the Company's book while the rest of the IPO money is for the strategic investors looking for an exit.

Sure, the growth prospects are mouth watering, but the accumulated losses and heavy competition will weigh heavily on the stock price.

AVOID NOW AND TAKE A CALL LATER.

You can also visit http://equityadvise.blogspot.com/search/label/IPO for more IPO recommendations

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

QATAR NEWSPAPER PUBLISHES MY VIEW ON DEBT FUNDS

2009-12-30T02:45:00.000-08:00
Qatar's leading English Daily THE PENINSULA published my view on Debt Funds. The Newspaper carried a article on how the Indian Investors dumped most of their equity investments and how most investors were looking at the debt investments.
Further, the article wrote about which debt funds should be looked for investments and published my opinion on them.
This is what it had to say :
'Considering the falling interest rates, one would be better off investing in long term debt funds rather than short term as these would not yield much, says fund advisor Srikanth Shankar Matrubai. In his estimation, some good debt funds for an NRI to invest in would be ICICI Prudential Income Opportunities Fund, Birla Sunlife Income Plus, Canara Robecco Income(Growth) Fund and HDFC Income Plan. Then there is TATA Capital NCD which is giving attractive Rate of 12 per cent. "

One of my NRI client based in Qatar brought this to my notice.
Click on the link below to read the article.

THE ARTICLE

http://www.thepeninsulaqatar.com/Display_news.asp?section=business_news&month=march2009&file=business_news2009031581431.xml

Regards,
Srikanth Matrubai

Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

JSW ENERGY IPO - POWERFUL!!!!

2009-12-06T10:03:00.000-08:00

MAY NOT DISAPPOINT AS OTHER POWER IPOS

JSW Energy Ltd. (JSWEL) is a group company of Jindal South West (JSW) group headed by Mr.Sajjan Jindal. JSW Energy was first set-up at Vijayanagar an IPP with a capacity of 260 MW. The plant is currently under expansion to 600MW at a fast pace. It is executing a 2 X 300 MW power plant at Toranagallu, Bellary.

It is after almost 15 years, that the JSW Group is hitting the IPO market with an IPO of JSW Energy to raise Rs 2,700 crores.

My Personal Recommendation is INVEST.

Why Invest ?
The issue has been graded by rating agency CARE Ltd as Grade 4, indicating above-average fundamentals.
JSW Energy has roped in a group of seven anchor investors including Eton Park International, Reliance Capital , Deutsche Securities and Credit Suisse its IPO.
JSW Energy offers discount to rope in retail investors, has offered a Rs 5 per share discount to retail investors in the IPO.
Proceeds from the IPO would be used to increase generation capacity to 11,390 MW by 2015 as well as for mining and transmission projects
JSW Energy already has operational capacity of 860 mega watts (MW). Besides, the company has 2280MW of capacity under construction, projects where financial closure has been achieved and fuel supply arrangements are in place. Of this, 135MW was commissioned in August this year and the balance is expected to be commissioned in April 2011. Some other companies such as Reliance Power Ltd and Indiabulls Power Ltd had little/no operational capacity at the time they raised funds through IPOs.

What Other Brokerages have to say on JSW IPO :

Business Line has given a "INVEST" call.
Prabhudas Lilladher sees a probable 7-8% listing gain on subscription at lower end of the price band (Rs100-115) and recommends "INVEST".
Broking house KC Securities has however recommended an 'AVOID' on the issue
Brokerage house First Call India Equity Advisors (P) has recommended `SUBSCRIBE` to the IPO and says "JSW Energy`s IPO is cheaper than the last three power sector issues - Adani Power, NHPC and India bulls Power".
Independent analyst SP Tulsian says "issue looks good even at the upper band of Rs. 115 a share. It is likely that this issue will not disappoint".
Sharekhan too is UPBEAT on the IPO.
Edelweiss Securities has issued a 'do not subscribe' recommmendation on the JSW Energy IPO as there appears to be limited/no upsides.

Best of luck,
Srikanth Matrubai

Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

VALUEMART - VALUE BUY

2009-11-25T23:27:00.000-08:00

PENNY STOCK WITH GOOD POTENTIAL
One can buy Valuemart at the Current Market Price of Rs.1.6 and on every declines. The Company is showing signs of turning from a Penny Stock to a Multi-bagger.
Read on....

HISTORY :
Valuemart Info Technologies Limited (VITL) was incorporated as GDR Software Pvt Ltd in 1997. The name of the company was changed to the present one in Aug. 2004. The company is professionally managed IT organization engaged in software development for domestic and expor t market covering customer application development, internet, e-commerce, medical transcription, inhouse personnel training and tie-ups consultancy, product development, CAD (Computer aided Designs), CAM (Computer assisted Manufacturing) and GIS (Geographical Information Systems).

ACQUISITIONS :
Valuemart Info Technologies Ltd has been on acquisiton spree.
It has acquired a 51% stake in HVO Technologies Ltd (HVO). HVO which has its offices in Bangalore, Hyderabad and Silicon Valley in the US, helps in providing high value software outsourcing services.

In November 2007, Valuemart Info Technologies acquired a 74% stake in Datatalk Services (India) (Datatalk) a Bangalore-based IT and BPO company.

RESULTS :
For the Quarter Ender September 30, 2009, the Company has reported net income of Rs.361 Lakhs compared to 147 lakhs previous years., jumping more than 150%. The Net Profit too has jumped from Rs.16 Lakhs to Rs.40 lakhs giving an annualised EPS of 0.4 on the FV of Rs.2.
The Industry PE is about 20 which gives Valuemart a price target of Rs.8., which is about 400% from the current Market price of Rs.1.6.

WHY BUY :
1) Company has wiped out all its losses and has been posting profits regularly.
2) The Promoters have invested 10mn equity shares at a premium of Rs.4 per share.
3) The Company's topline was least affected in the recent recession.
4) The Company continues to focus on Inorganic growth and has had great success with its recent acquisitons.
5) The Company is proposing to revive its GDR issue.
6) The Company's core strength has been the Domestic BPO Market which has shown strong signs of High Growth.
7) The Legal Process Outsourcing (LPO) is growing at a good rate and Valuemart is positioned well to exploit this.

Buy now and at every decline.

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

COX & KINGS IPO - INVEST

2009-11-18T02:51:00.000-08:00

Cox & Kings India Limited has come out with a Public Issue of 18.496.649 Equity Shares with a price band of 316-330. The issue opens on 18 Nov and closes on 20 Nov.
Cox & Kings is the longest established travel company in the world. Its distinguished history began in 1758. Cox & Kings is a premium brand in all travel related services in the Indian subcontinent, employing over 800 trained professionals.

Post Issue, the Promoters holding will be around 63.6%.

CARE has graded the IPO at "Grade 4". This Grade indicates 'above average' fundamentals.

BROKERAGES VIEW :
Angel Broking has recommended "Subscribe" saying "On the back of positives like C&K’s superior growth rates, its wide geographical reach, a strong brand franchise and the improving industry dynamics, we recommend a Subscribe view on the IPO"

RR Financial Consultants says "The long term investors can invest in the IPO."

Hem Securities says : "The Company has shown decent growth in its topline and bottomline as well. We recommend "Subscribe" to the issue".

Bonanza Portfolio says "apply at Upper Band at Rs.330 share".

Sharekhan says "Reasonable pricing and strong financials are positives. We recommend Invest"

Swastika Intelligence Group recommends Investing in the IPO for good listing gains to investors and also for medium-term and long-term Investment.

KR Choksey has recommended "Subscribe".

SP Tulsian has said :"After a long time, we have come across a comforting IPO, which looks capable to give listing gain as well as much more, if held on with 12 months view. Issue is recommended even at the upper band of Rs 330 per share."

Businessline too has recommended its readers to "INVEST" in the IPO., due to the company’s strong brand image, wide geographical reach, synergies of operations and the economies of scale it enjoys.

MY VIEW :
Comparing Cox & Kings with Thomas Cook, which is quoting at a PE of around 50, the issue is definitely priced cheap. The pricing does offer scope for appreciation. Long Term Investors should have no hestitation in subscribing to the issue. SUBSCRIBE.

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

OK PLAY - MORE THAN OK

2009-11-08T01:19:00.000-08:00

With growing children population and more parents working, the children need to be satisfied. What better way than pamper him with toys. This is where OK play comes into picture.
The company has come out of Red and posted profits for the last two quarters.
To meet the growing needs of the retail sector, the company entered into marketing, technical and manufacturing agreement with Purform, one of the largest selling mannequin brands in the world from New Zealand.

Ok Play has tied up with an Israeli partner and is in the process of creating better and bigger technologies for its customers . It is slowly moving away from being a plasticsmade-to-order engineering and consulting company and is graduating into a company manufacturing products and a range of them.
OK Play has come a long way. It began with an attempt to create innovatively designed overhead water tanks for houses. shifted quickly to toys and acquired a company in the United Kingdom called OK Play and used his own expertise of rotation moulding plastic to create better and more appropriate things for the corporate customer.

As the Euro IV Norm has has made it mandatory for vehicles to have anti inflammable fuel tanks, OK Play is right to exploit this business opportunity with its expertise and knowledge.

Remember that Benneth & Coleman bought this Share at Rs.130 levels.

At the Current Market Price of around Rs.25, there is very little downward and can be bought for both short term and medium term.
BUY

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

ASTEC LIFESCIENCES - AVOID

2009-10-30T08:23:00.000-07:00
NOTHING ON TABLE FOR INVESTORS

One can safely AVOID investing in the Intial Public Offer of Astec Lifesciences which has come out with a Public Offering at a Price Band of Rs.77-82.
The company is engaged in the manufacture and sale of intermediates, active ingredients and formulations in the off patent–proprietary category with a focus on agrochemical and pharmaceutical sector.

It carries out manufacturing activities at two locations in Maharashtra, India comprising of three units viz. one unit at Dombivli, Maharashtra and two units at Mahad, Maharashtra.

INVESTMENT ANALYSIS :
THUMBS UP :
1. Diverse Product Range
2. Consistently managed to achieve High Capacity Utilisation.
3. In House R & D
4. Has 69 registrations in Indian Market.
5. Experienced Management Team
6. Good Track record of Profitability

THUMBS DOWN :
1. Depending on Monsoon
2. NO long term sales and raw material agreement
3. Could face Foreign Exchange Fluctuations
4. Fear of anti-dumping duty
5. Sector faces poor discounting with investors

OTHER BROKERAGES VIEW :
Way 2 Wealth says "Compared to its peer 'Anu's Lab', the valuations seem expensive. AVOID"
SMC has given a Ranking of "2 STAR" indicating Below Average.
SP Tulsian says "SKIP"
Astec LifeScient Limited got Grade 2 by CARE, means as per CARE, company has below average fundamentals.

ADVISE :
AVOID. Period. Comparable Companies do not enjoy the fancy of investors and the Company will not be able to attract any investor interest. Too many Negative Points make this IPO an '"AVOID".
Compared to Bharat Rasayan, this Company is asking Double the price of BRL's PE, which is way too expensive.

Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

HEIDELBERG CEMENT - MNC CO AT A PE OF JUST 5

2009-10-23T09:51:00.000-07:00
BSE CODE : 500292
NSE CODE : HEIDELBERG
Formerly Known as Mysore Cements, HeidelbergCement India Limited is a 68.55% subsidiary of HeidelbergCement AG.
The Company has its Manufacturing Units spread across Karnataka, Madhya Pradesh, UP and Maharastra.

IMPRESSIVE RESULTS :
The Company has continued to impress with its very consistent results. It posted half yearly EPS of 4.13 in June 09., which annualised gives the Current Market Price a PE of under 5.
This for a Cement company which is Debt Free and is an MNC!!.
Since it was taken over from the Birla Group, the new management of Heidelberg has impressed with excellent results and posted a Net Profit of Rs.93 crores in June 30 2009 for the half year.
ZERO DEBT :
The Company has cleared all its Debt of Rs.460crores and is now Debt Free.

WHY BUY:

With the increased focus by the Govt on Infrastructure Projects, the demand for Cement is expected to be robust and Heldelberg is poised to benefit from the same.
The Promoters have bought the stock from the Birla promoters at Rs.58 per share.
The Average PE for the Cement Industry is 10 and even if we consider that the market recognises the Potential of this company and gives it only the average PE, still the Company should be quoting at least Rs.80.

BUY with a Target of Rs.70 by March 2010.

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

INDIABULLS POWER - POWERLESS

2009-10-12T05:43:00.000-07:00

POWERLESS

STEEPLY PRICED.

VERY LITTLE ON THE TABLE FOR THE INVESTOR

Indiabulls Power, a subsidiary of Indiabulls Real Estate has entered the Primary market today to raise around Rs.1562 to Rs.1758.

Issue Details ::

* Issue period : 12th October - 15th October 2009
* Price Band : Rs.40 to Rs.45
* Bid Lot : 150 Shares and multiples of 150 thereof
* Face Value : Rs 10

The Issue is to part finance the construction and development of 1320MW Amravati Power Project., contribute equity to Wholly owned subsidiary towards development of 1335MW Nashik Power Project and other General Corporate purposes.

IPO Grading / Rating
CRISIL has assigned an IPO Grade "3/5" (pronounced "three on five") to Indiabulls Power Ltd IPO. This means as per CRISIL, company has average fundamentals.

WHAT DO OTHERS SAY :
The Hindu Business Line says AVOID. With projects in the initial stages of development, execution risks are too high for retail investors.

Investment Advisor SP Tulsian said at Rs 40, it could be given an investment consideration, and anything beyond Rs 40 was a clear no.

Manish Bhatt of Prabhudas Lilladher also said one could subscribe to the issue. "Indiabulls Power (IPL) looks good."

RR Financial Consultants : the issue can be subscribed to by an investor willing to hold it for 3 or more years to fully realise and profit from the business potential of the company.

SMC Capital Equity Head Jagannadham Thunuguntla said, Investors with long term investment horizon can buy in the IPO as for short term better power scripts are available in the market

Sharekhan says "though IPO is priced better than some of the recent public offerings from power utilities companies, the scope for the short-term gain is limited.

Angel Broking recommends "Avoid" as it feel the issue is expensive compared to Rel power , Adani Power and NTPC.

Also visit Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

AGMS ARE BACK.... SO IS THE TAMASHA

2009-09-19T08:02:00.000-07:00
Annual General meetings are supposed to be Serious Events. It is the Day of the Shareholder.

But anyone attending an AGM will surely doubt about the seriousness of the Meeting.

FRAUD COMPANIES :
Companies are just interested in seeing the completion of the AGM in a jiffy. If a Shareholder praises the Management, he is allowed to speak, otherwise, he is politely told to stop to 'allow other shareholders' to express their opinion. I have seen in Bangalore AGMs that shareholders like Ganesh Bhat, Alex.D.Rebello are not allowed to speak for long time.
Other shareholders (in connviance with the Management) disrupt them for taking so much time. Management too ducks the query by telling "we will get back to you ". Some Companies fill the AGM hall with their Employees to make up the Quoram.

NO ANNUAL REPORTS :
These Companies are mostly those which Do not even care to send the Annual Reports. Some Bangalore companies who cheat like this without even caring to send the Annual Reports are Pan Electronics, Otco International, Cerebra Integrated, Encore Software, Jain Farms, Nova Granites, Odyssey Video, Powersoft Global, Vision Tech, Jain Farms, etc.

HOLDING THE AGM ON THE LAST DAY :
Some Companies deliberately hold the AGM on the last working day of September to ensure that as little people attend the AGM and they can finish the AGM without any 'trouble'. Some prominent culprits from Bangalore who regularly hold the AGM on 29th or 30th September every year deliberately are Bhuwalka Steel, Logix Microsystems, Rajesh Exports, Silktex, Kals Info, Cerebra Integrated, Cyberscape Multimedia, Gilada Finance, Intertec Communications, IQ Infotech, Jain Farms, Mukunda Industrial Finance, Odyssey Video, Pasari Spinning, REsidency Housing Finance, Shimoga Technologies, Valuemart, Wintac, Kaveri Telecom.
What I have provided is just a sample list. Just imagine how many will fill the Full List. This Year, I myself have 32 AGMs on 29th and 44 AGMs on 30th. How many can I attend and get the information???

The Companies Act has now allowed AGMs to be held on Sundays also, but as far as my knowledge , NO Company has conducted an AGM on a Sunday till now.

GIVING GIFTS :
There are Companies who ensure that their AGM runs smoothly by pleasing 'Gifts' to Shareholders. And they give 'Gifts' even before the AGM begins so that shareholders take the Gift and go away. This way, the Companies can boost of Good Attendance by virtue of Shareholders signing Attendance Register and also with Virtually NO Shareholder asking them 'uncomfortable' questions.
The Little Gift Packs are not 'token of love' but truly a ruse to placate voices of dissent.

'SPECIAL' SHAREHOLDERS
There are some 'smarter' companies who manage to strike a Deal with 'Special' Shareholders who have the potential to disrupt Meetings. These 'Special' Shareholders are given either More Gifts and Momentos or even Cash and other shareholders are quietly given a cold shoulder. These 'Special' Shareholders ensure that all the Resolution are passed without any hitch and in double quick time. They even tell the Management to 'skip' reading the Annual Report and the Auditor's Report!!!!!!

CALLING FOR A POLL IS A PLOY :
Some Shareholders are experts in 'extracting' Gifts by hook or crook. If they sense that the Management is weak and fearful of Shareholders, they force the Company to call a poll. They express displeasure over the Accounts and when resolution is put to vote, the shareholders demand a poll. And lo behold! a timely announcement of a 'Gift' will enable the passing of accounts and other resolutions in minutes, if not seconds. No poll, nothing. It is a policy of 'you eat, I will also eat'.

Shareholders on their part are not Angels. I have seen some Shareholders holding just 1 single share (that too in Joint Name) and all of them attending the AGM purely to Get Great Food and even Gifts. SEBI rule says a shareholder holding even 1 share can attend an AGM. Just see the Return Potential. Buy a Share for say, Rs.50 and walk with Food worth Rs.200 and sometimes, Gift worth Rs.200. And moreover, your investment is only one time whereas the Food and Gift keeps on repeating annually.

Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

L&T FINANCE NCD - INVEST

2009-09-03T21:23:00.000-07:00

SAFE, SECURE AND LIQUID TOO

L&T Finance is offering its First Ever NCD.
Srikanth Shankar Matrubai
L&T Finance is a 100% subsidiary of L&T. The Company has a good Track record. The Company's Capital Adequacy is very good at 16%.
The NCD is secured and the Company is also setting up a Debenture Redemption Reserve by setting aside 50% of the Capital raised in the NCD.

COMMENTS AND RECOMMENDATION :
The better return is the biggest attraction. Banks like the SBI is offering around 8% return on a 5 year FD and here L&T Finance is offering 9.5% with a better liquidity.
Good Rating from both CARE and ICRA. CARE has given a AA+ and ICRA has rated the issue LAA+ indicating LOW RISK.

Definitely better than any Fixed Deposit because of its better liquidity and Tax Benefits.

There is even a chance of Capital Gain because of its listing in Stock Markets and the greater interest in Retail Bond Market growing everyday. Any major fall in yields of Debt instruments would present L&T NCD investor with an opportunity to Cash out by selling in the Stock Markets.
The Company has also indicated that it may consider Buyback of the NCD and also consider giving loans to the holders of the NCD, in future.
INVEST preferably in the 10 year option and lock in the higher interest rates offered.

Also visit
http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

NHPC IPO - FOR LONG TERM INVESTORS

2009-08-09T08:04:00.000-07:00
NHPC Public Issue is only for Long Term Investors. At 36, the stock is steeply priced at a PE of 32.

NHPC is India's Biggest HydroElectric Power Generator.

NHPC has a PE of 32 on a reported EPS of 1.11. The co. is largest Hydro-electric-project (HEP) power co with 5175 MW current capacity and 4622MW under construction. 100% collections over last 3 years is a huge achievement. There are no fuel costs since river water is the source but dependent on monsoons.
NHPC isnt a cheap stock and its valuations are bit steep when u look at the price band of Rs 30-36. Its capacity is just 5175MW, but EV/MW is more than Rs 7crore higher than that of NTPC, which has the highest capacity of 31000MW today. So on what basis r they asking for this price is not known.

COMMENTS AND RECOMMENDATION :
PSUs have always given good returns to investors and I do not see why NHPC should be an exception. NHPC has a established track record and has a good operating performance.
Not much on the Table for Short Term Investors, but Long Term Investors should not miss this golden chance to lay hands on this FUTURE BLUECHIP. Long Term, NHPC should do well especially considering that most of its plants are in North East which allows it generate electricity even during the Non-Peak period.
Some Brokerages like CLSA however have preferred NTPC than the stiffly priced NHPC.
My personal opinion is that you can AVOID investing in the IPO and have a look at the company post listing, on declines or better still can consider the better priced NTPC.
Also, do not forget that the issue was initially priced in the band of 20-24, and the Bullish market made the Govt greedy and price was increased to 36.
I feel, that NHPC at Rs.36 has left very little on the table for the investor.

Also visit Also visit
http://goodfundsadvisor.blogspot.com

THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

MY CONSULTATION CHARGES

2009-06-22T04:14:00.000-07:00
Dear all,

Patients pay their doctors for advice and then buy the medicines from the chemist. ARN holders(also called as Independent Financial Advisors, IFAs) are viewed as doctors and therefore being asked to seek a fee from their clients for advice rendered.

I am now charging FEES both for Online and Offline Advice.
My Charge is right now a reasonable Rs.500.

By the way, it is good for you too.
When a person pays for advice, he is serious about it and will demand good service which will keep you on your toes. I have more responsibility when I am charging a client for advice and service. I have to excel in both.

Charging a fee also enables me to approach my relatives and friends without the worry that personal relationship would be strained.

Do also remember, that IFAs also do a lot of services like redenring Account Statements, follow up services, apart from, Of course, giving Quality Investment Advice.
Clients need to understand that paying a fee puts greater onus on the advisor, as there will be consistency as well as the development of a relationship. Surely in bear markets, it is easier for them to recognise this, as they have been badly hurt, made emotional decisions about investing, and now feel the need for unbiased advice even more.

Remember, that there are too many schemes with mirror portfolios and identical investment objectives. The choice is difficult. Figuring out which is the right one for you is a herculean task.
Trying to save a paltry consultation charges and Compromising on a "Good" Scheme will only make you look like a fool, a few years down the line.
Or instead, relying on MY Proven Research, where even the US based etfdb has acknowledged as my blog being in the Top 50 Investment Blog in the World, is the first Wise thing to do.

Here is the link http://http://goodfundsadvisor.blogspot.com2009/05/my-blog-ranked-as-worlds-no3.html

The Choice is yours.

As the World's Greatest invest Warren Buffet has said : "Price is what you pay. Value is what you Get".

HOW TO PAY :
Pay through Demand Draft or Cheque For Rs.500/ payable to "SRIKANTH SHANKAR MATRUBAI" payable at Bangalore.
You can remit to my SB Account at ICICI Bank 029701527711 also.

Regards,
Srikanth
9972520155

Also visit
http://goodfundsadvisor.blogspot.com

THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

IRB INFRASTRUCTURES BUILDERS - On a Strong Wicket

2009-06-01T00:56:00.000-07:00
IRB INFRASTRUCTURES BUILDERS
On The Right Track

Srikanth Shankar Matrubai
01 June 2009

One can consider Accumulating and buying at every dip the stock of IRB Infrastructure Developers.

Background :
IRB Infrasturcture Developers Ltd (IRB) is the holding company for the Infrastructure and Construction SPVs of the IRB Group. IRB is one of the Largest Road BOT operators in the Counrty with more than 800 km under its maintenance. Its Daily Toll collection is more than Rs.1.25 crores from its 30 Toll Plaza Centres.
The company, along with its subsidiaries has constructed or , operated and maintained around 1200 kms of road length so far and one of the major road developers in the country. The aggregate size of all our BOT projects (both completed and under execution) is around Rs. 33,000.00 million.

IRB won the CNBC - Essar Steel Infrastructure Excellence Award for the Mumbai-Pune section of NH 4 under the highways and flyovers category.
IRB generates revenue from three businesses — building of roads, maintenance of roads built, and toll collection. Of this, toll revenue is likely to be the major earnings driver. Toll-road operation is a more profitable business than simple construction as margins are higher in toll-collection.
Subsidiries
Ideal Road Builders Pvt. Ltd

ATR Infrastructure Pvt. Ltd.

Aryan Toll Road Pvt. Ltd.

Mhaiskar Infrastructure Pvt. Ltd.

IDAA Infrastructure Pvt. Ltd.

NKT Road and Toll Pvt. Ltd.

IRB Infrastructure Pvt. Ltd.

MMK Toll Road Pvt. Ltd.

Modern Road Makers Pvt. Ltd.

Thane Ghodbunder Toll Road Pvt. Ltd.

Aryan Infrastructure Investments Pvt. Ltd.

IRB Surat Dahisar Tollway Pvt. Ltd.

IRB Kolhapur Integrated Road Development Company Pvt. Ltd.

Debt Rating :
Recently, in April 2009, Fitch Ratings assigned IRB a Long Term Rating of A- (A minus) with a Stable Look. The ratings reflect IRB's status as a holding company with investments in road infrastructure projects, its full stake in its Engineering, Procurement and Construction (EPC) arm, a track record of project execution and a portfolio of strong operating assets. Fitch was especially happy with IRB’s Comfortable Liquidity Position vis a vis its Strong Cash Balance.

Positives :
1)The Company has an impeccable Track Record of Timely Project Completion leading to Early Collection of Toll.
2)The Company is fully Integrated be it the Engineering, Procurement of Materials, Equipments, etc. This enables the Company to reduce any dependence on Third Party and also ensures Cost Cutting and Time Saving and thus capture the full Value in all its projects. The Company owns such large inventory of Construction Equipment that it can undertake 7 projects simultaneously.
3)The company has a inbuilt Clause in its Toll Sharing Agreement wherein the Company has the right to increase Tolls every 3 years thus ensuring Strong Revenue Growth.
4) IRB’s existing BOT projects do NOT have any Toll sharing Arrangement. Because of its early mover advantage, it could get terms Much more Beneficial than most of its peers.
5) IRB is eyeing to diversify from its High Concentration in Maharastra and is already successful in Gujarat.
6) It has a Huge Order Book of over Rs.5900cr.
7) The Falling Interest Rates will only Give a Further Boost to the Profit Margin of IRB.
8) Of the 10 SPVs that the Company is operating, already Debt of 8 SPVs have been repaid!! These 8 Projects are giving the Company a Revenue of Rs.45 Lakhs per day.

Bharuch-Surat is a large project, which we should be able to complete by end of June. There the toll revenues should start in July this year. That would be a substantial revenue because we are expecting a passenger car unit (PCU) of anywhere between 55,000 and 60,000 on that highway. It would surely result in substantial revenues.

8) The Bharuch- Surat project expected to be start giving Toll Revenues by July 09 would boost the Topline of IRB due to its High Passenger Car Unit (PCU) of 55000 to 60000.
9) The jewel in the Crown of IRB, “The Mumbai-Pune Expressway” wherein the Revenue is 80lakhs per day.
10) The Company operates about 7.56% of the Golden Quandrangle which is the highest by any Operator and would increase to 12 per cent after additional 600 kilometers get added to company’s portfolio by next year,

Real Estate Play Too :
1)The company diversified into real-estate development by setting up a township near Pune. It holds about 1400 acres which it intends to use for Commercial and Residential Development.
2)IRB has also bagged the Kolhapur city road development which entails a Concession Period of 30 years from all the Nine Entry Points to the City and more importantly, the company has been given Prime Commercial Area of 700000 sqft for a 99year Lease.
The Company intends to build a budget hotel and has already signed a MOU with Indian Hotels.

Negatives :
Its New Projects could be less Beneficial because of losing its Early Mover Advantage and More Pronounced Competition.
The Stock is fairly Expensive at CMP (140 levels).

The Promoters hold about 74.4% in the Company.

BROKERS TARGETS :
Lehmann Brothers have a Target of Rs.195
Emkay has a Target of Rs.240
PINC Research has a Target of Rs.246

CONCLUSION :
IRB is a different play in the Infrastructure Sector in the sense its Revenue has a more or less stable and have a High Degree of Certainty.
IRB enjoys Superior Profit Margin due to its Early Mover Advantage.
A Significant Spike in Net Revenue can be expected once the Bharuch-Surat and later the Surat-Dahisar projects start Contributing.
Deutsche Bank picking up 10% stake in IRB’s Surat-Dahisar 6 laning Project shows the Confidence Lenders have in the Company.
The company’s Expected EPS for FY10 is 19 which makes the Company look very attractive. Do buy now and at every dip for a Smooth Journey.
http://goodfundsadvisor.blogspot.com
Disclaimer:
This report represents the personal views of the Author and is not a solicitation/invitation to any one to buy/sell the stock. The information has been obtained from the Public domain and various sources, which are believed to be reliable. You are advised to verify yourself before taking any investment decision. In spite of this, the author does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. He shall not accept any liability whatsoever arising from any decision taken on the basis of the above report. The author or his family may have a position in the stock at the time of writing and could be interested in the stock going up.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

My Blog named World's No.3

2009-05-29T01:46:00.000-07:00
I recently received a Mail from www.etfdb.com, a US based etf site which has ranked my Bloghttp://http://goodfundsadvisor.blogspot.com among the Top 50 50 Buy and Hold Investing Blogs and mine has been ranked at NO.3.
This is what the email said :

“From: Jimmy Atkinson
To: sharesher@indiatimes.com
Sent: Thu, 14 May 2009 21:59:42 +0530 (IST)
Subject: Good Funds Advisor Named a Top 50 Buy and Hold Investing Blog

Hi

Just in case you
have not yet noticed, Good Funds Advisor was named a top 50 buy and hold investing
blog at ETF Database earlier this week. I thought you and your readers might
want to check out the rest of the list. Let me know if you have any feedback, or
feel free to leave a comment directly on the blog post. httphttp://etfdb.com/2009/top-50-buy-and-hold-investing-blogs/

Thanks!
Jimmy
Atkinson

ETF
Database

http://etfdb.com /
I dedicate this success to YOU. Yes, you dear readers, who keep visiting my blog and come up with interesting suggestion.
So, guys check out and tell me how can I further improve my blog and make it No.1.
Thanks to you all
Srikanth Shankar Matrubai

http://www.credit-land.com

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

JK Lakshmi Cement – Value Play

2009-05-18T05:22:00.000-07:00
JK Lakshmi Cement – Value Play

Srikanth Shankar Matrubai
15 May 09

Investors with a penchant for high risk can consider accumulating JK Lakshmi Cement at present levels and at every decline, especially after it’s better than peer results.

Background:
The Company earlier known as JK Industries is a JK Group Company. The Company has done exceedingly well in a tough environment by focusing on reducing costs. JK Lakshmi Cements is a leading Cement Manufacturer with a strong footprint in Northern and Western India.

JK Lakshmi Cement Ltd is the first cement manufacturer in north India to use colored bags to help the customer in segregating different products. It also has a regular contact programme with masons, dealers and architects to keep abreast of their needs and requirements

Better than expected financial results:
The company has been very consistent in posting good numbers for more than 5 quarters in a row now. Yes, the Operating Margins has come down on a annual basis by more than 5 basis points but Q on Q, the both the OPM and NPM have risen, Real Estate Slowdown has affected the sales of most Cement Companies who had to give Discounts, etc to shore up volumes and JK Lakshmi Cement seems to an exception.

The Company had also declared an Interim Dividend of 10% in Jan 2008. And now announced a Final dividend of 40%.

Cutting down its Input Cost:
With its Captive Power Plant and sourcing of pet coke from Reliance Industries (which is located to its plant), the Company should be able to continue to rein its input cost further.

Future Plans:
The Company just recently commenced production at its plant in Gujarat with a production capacity of 0.6mtpa, which is sure to strengthen its presence in Gujarat.

The Company’s Production Capacity is expected to jump up from the present 5mtpa to 12mtpa.

The company’s Greenfield plant in Chattisgarh with a production capacity of 2.7mtpa is expected to be operational by 2011.

The Company has already 9 Ready Mix Concrete Plants in operation and expects to ramp this up to 20 RMCs by 2010.

Recommendation:
The Company has managed to contain its transport cost by segmenting its markets and combining the use of Road and Rail transport.
By 2011, the Company expects its Waste Heat Recovery system to generate 12 MW power and further save its Power Cost.

At the CMP of Rs.75, on the reported EPS of 30, the Company is quoting at 2.5PE. The company has doubled in the last two months or so. Book
Value is 118.

Going forward, Higher Realization and Reduced Input Cost will bolster the Net Profit Margin of the company and boost its EPS and Book Value further.

Analysts are betting that by 2012, the EPS of JK Lakshmi Cement could be anywhere between 60-80, which even at a conservative PE of 3 should give a price of 180-240.
Buy at every decline with a 2 year Price Target of 300.

http://hubpages.com/profile/goodstockadvisor

http://hubpages.com/profile/goodstockadvisor

http://goodfundsadvisor.blogspot.com

INDRAPRASTHA GAS

2009-03-26T04:34:00.000-07:00
INDRAPRASTHA GAS is one Stock on which almost all Analysts are bullish and are positive about its future potential.
BACKGROUND :
Indraprastha Gas Limited is a Delhi based city gas distribution company promoted by the government of Delhi along with GAIL and BPCL. With almost a decade in operation, the company has shown excellent performance in all respects of operations. The company is in the business of supply of Compressed Natural Gas (CNG) as fuel in the auto segment and distribution of Piped Natural Gas (PNG) as cooking fuel in the home and commercial segment. CNG is a substitute for petrol or diesel. It is environment friendly and is and is considered as a cleaner alternative to other fuels.

FINANCIAL PERFORMANCE :
The Company continues to post healthy results and has reported consistent growth in operating profit margin over the past few years. Though the Q3 results shows lesser Net Profit, this is Provisioning of 17cr for excess purchase of Gas at Price higher than the Concessional Price. The company seems confident of the same being given at the Old Rates.

FUTURE POTENTIAL :
1)The company operates in Delhi which has MORE number of Vehicles than all the other Metros of Mumbai, Kolkatta, Chennai and Bangalore PUT TOGETHER!!!!!, giving the company Jumbo Opportunity with NIL competition.
2)The Upcoming commonwealth Games in 2010 would boost demand the Company's Gas as the The Govt is ensuring that the City runs its vehicle on the Company's Environmently Friendly Gas.
3)The Company already has more than 170 CNG Stations and continues to invest in more number of Stations.
4)The company has a mandate to source gas from GAIL at Concessional rate rather than Market Price.
5)The Company has also started looking at markets outside of Delhi and has started its operation in Noida, Panipat, Ghaziabad, etc.
6) PNG market is huge and till now the Company has penerated only about 5%, the Company targets to penerate 50% in next 3 years and should contribute substantially to the bottomline of the company.
7) Has Huge Cash Flows and is a Zero Debt Company.
8) The Company has been increasing Dividends every year and the trend should continue.
9) High Entry Barrier and First Mover Advnatage
10) The Delhi Govt's move to stop registration of Diesel run Mini Trucks in the State would boost the Company's prospects.

NEGATIVES :
1). There could be competition in future.
2) The Company has been an underperformer throughout since its listing expect for the last 6 months or so.
3) Any Govt move to remove conession Gas rates would affect the company's margins.
4) Conversion of Govt vehicles has neared saturation point.

TARGETS :
Parag Parikh Financial Servies has a Price Target of 154.5.
Kotak Securities has a Price Target of 145.
ICICI Securities has buy rating on Indraprastha Gas with a price target of Rs 142.
Karvy Stock Broking has maintained its buy rating on Indraprastha Gas with a target price of Rs 155.
Technical Analyst, Vijay Bhambwani is of the view that Indraprastha Gas has target of Rs 150-155.
Enam Securites has a Target Price of 167.

CONCLUSION :
Rising conversion rate of private vehicles and buses to CNG and a monopoly in the Delhi market assure steady volume growth. Accumulate for Long Term Play.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

CAIRN INDIA - A SAFE BET

2009-01-28T22:23:00.000-08:00

Cairn India looks cheap at the current levels of 170-180.
Cairn is 69% owned by Cairn Energy Plc UK,. Cairn has been operating in India for more than 12 years with its Ravva and Cambay operations. Cairn's Mangala Oil Discovery in 2004,, is India's largest oil discovery since 1973.
Cairn's recent new discovery of Oil in its Rajasthan Block is a positive trigger for the stock. This discovery should increase Cairn's reserve estimates.
With commencement of production from its oil blocks to start very soon and significant free Cash flow generation, the Stock should show strength. This is enchanced by the fact that the Govt of India has given its consent to shift the delivery point from Barmer to the gujarat Coast.

Reports suggest that Cairn plans to use enhanced Oil Recovery Techniques(EOR) at its Rajasthan Fields. This EOR should help Cairn increase its recovery by at least 10% which will decrease its production cost.

Cairn is currently discounting Low Crude Oil Prices in perpetuity and no accretion to reserves.
Even at $75 a barrel Cairn could easily double. Even though Oil is presently quoting at %35, the July 2009 Contract is being traded at $49.7, a huge difference of $15!!!!.
Oil Prices concern has been overplayed on the Stock. Long Term Investors should start Accumulating Cairn at these levels as Earnings visibility is profoundly enhanced. Conservative earnings estimates put out by leading analysts and based upon Crude at $ 48 a barrel, predict Cairn earnings to rise up to Rs 74 by FY 10.
Cairn is quoting near its book value of 164 and is a very promising bet for 2009 among Zero-debt companies.
BROKERAGE TARGETS :
Kotak Securities in its Dec 2008 report has put a Target Price of Rs.240 on Cairn.
ICICI has rated Cairn a buy with a target of Rs.245.
UBS has given a target of Rs.374
Religare has a target of Rs.305
India Infoline has sticked to its target of Rs.219 for Cairn.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

KINGFISHER AIRLINES - PROMISING GOOD TIMES

2009-01-17T03:21:00.000-08:00

Kingfisher Airlines Limited Formerly known as Deccan Aviation Ltd. The Group's principal activity is to provide commercial passenger airline and a private helicopter and airplane chartering services in India.
After the Annual General Meeting, I had a chance to talk with the “King of Good Times”, Dynamic Chairman of Kingfisher Airlines, Dr.Vijay Mallya.

He announced “the worst is over for the Airlines Industry. Kingfisher Airlines Fundamentals is getting stronger by the day and we will start to break even from this month itself.
“I think the worst is over and there’s no reason why private equity investors who had expressed interest when oil was at $100 a barrel shouldn’t be more interested when oil is $36 a barrel,” Mallya said

SEE VIDEO OF DR.VIJAY MALLYA HAVING LUNCH WITH WE, THE SHAREHOLDERS ;

He said once the Govt brings the ATF under the ‘Declared Goods’ category, Kingfisher Airlines will immediately reduce fares.
“We can pass on pretty much majority of the savings and that would be good for the industry, make air travel even more affordable and stimulate an industry that has slowed down considerably,” claimed Mallya.
.
"Kingfisher will be the biggest airline in India by 2010 not only in terms of market share, as others claim. In all the aspects, it will be the biggest. Wait and you will see," he said, dismissing all related questions. Hyperbole? Like the man says, we will wait and see.

MY TAKE :
At least in Near Short Term of upto 1 year, things are looking much much brighter than it was in anytime of the Kingfisher’s history. The operations costs are lower and there are no visible signs of going up, and, the Airfares are not being reduced and surprisingly, the load factor is going up, which should all add up to “Good Times” for the Kingfisher Stock. Can expect an upside of at least 40% from here and expect the Stock to reach at least 50-55 by June End 2009. Buy in Small quantities as “Contra” Pick. The stock could be the Dark horse of 2009.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

SATYAM FRAUD - RAJU BAN GAYA UNGENTLEMAN

2009-01-17T03:19:00.000-08:00

SATYAM FRAUD - RAJU BAN GAYA FRAUD

I go by the Dictam, "THERE IS NEVER ONE COCKROACH IN A KITCHEN". I, for one, there is much more skeleton in the cupboard of Satyam, waiting to tumble down, than has been known till now.
It is shocking that India`s 4th Largest Software Co, having 185 of Fortune 500 companies as its clients has had such big skeletons in its cupboard.
I also suspect whether Balance Sheets can be fudged for seven years in a row. Probably, Satyam`s fudging has been very recent. A popular saying that captures the process of accounting fraud of the kind Satyam has likely engaged in is, “You have to say a hundred lies to cover the first lie,”

GOVT SHOULD STEP IN :
There is always a first time. Sure, Indian Govt does not enter into the nitty-gritty of merger and acquistions, but Satyam`s case is different. This scam, to me, is Bigger than What Enron did to US. The Whole World Media will be jumping at the prospect of painting Black the Indian Corporate Governance Picture and would not hesitate to add some spice too. And moreover, World Economy in a Tailspin, the Govt should do all it can to prevent the Indian IT Ind getting marginalised, before this has a cascading effect. . Govt can`t just wash its hand off. The Govt should ensure that Satyam`s 53000 employees and innumerable Shareholders are protected.

The damage is not just confined to the IT Ind, alone but also on India Inc`s credibility. The Govt should get to the bottom of this without even a bit of favouritism .

MY SUSPICION :
The First thing that any Auditor does, is to check the Cash and Bank Balance, as this is very easy to verify. In all probability Satyam did have money on the books till the last audit. (Satyam paid 226 crores as Tax). I wonder whether Satyam liquidated the bank accounts and started holding cash reserves. Probably, First Raju tried to take out money through Maytas deal. When his move back fired, and he started losing even his stake in Satyam, he decided to decamp with entire cash saying that the Cash were on account of fudged balance sheet and there is no Cash at all. Raju family is diverting the attention of law agencies by alleging fudging.
A Bigger Fraud is happening now!!!
By the way, PWC should be BANNED, financial penalty levied and its auditors Jailed.
HOPEFULLY, NARAYANA MURTHY IS RIGHT WHEN HE SAYS THAT THIS IS JUST A ISOLATED CASE AND A FAILURE OF GOVERANCE. For years, IT Cos (TCS, Infy, Wipro) have prided themselves on their Corporate Governance. One Satyam,sadly, will surely change this.

God help the Indian IT industry.
Best of luck,
Srikanth Shankar Matrubai

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

Some More Top Picks for 2009

2009-01-17T03:10:00.000-08:00

Some More Top Picks for 2009

Anup Bagchi, Executive Director, ICICI Securities, said infrastructure will tend to do well. Places like NTPC, etc. will tend to do well. On the defensive plays, some of the pharma will do well, Glenmark is one of our top picks and one can play on the FMCG stocks as well the HLL, etc. will do well because the input prices are correcting sharply and that will lead to increase in margins.
India Infoline feels that Reliance will be elevated to top Global League and were bullish on the stock. Besides, Reliance, India Infoline felt that SBI, ITC, Bharti Airtel and RCom should outperform in 2009.
Religare feels that Reliance, BHEL, Tata Steel, DLF and L&T should do well.

Besides Banking Stocks, Angel Broking is bullish on Reliance, Bharti and RCom.
ICICI Securities top picks are SBI, L&T, NTPC, Maruti and Bharti Airtel.

Geojit has chosen Tata Power, Infosys, SBI, HDFC and ICICI Bank as its pick for 2009.

Khandwala Securities is very bullish on the Sensex and expects a high of 15975 for the Sensex in 2009 and feel Reliance, Tata Steel RCom, ICICI and JP Associates should be bought at every declines.

Centrum Broking has picked up Hindustan Unilever besides Airtel, Infosys, LT, ICICI.

Most brokerages seem to believe that Reliace Industries and Bharti Airtel should outperform the Sensex in 2009 and should form part of every investor portfolio.
Best of luck,
Srikanth Shankar Matrubai,

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

TOP PICKS FOR 2009

2009-01-17T03:03:00.001-08:00
I have picked from various sources the top Picks By Experts for 2009 for your benefit. Go through them, it may be useful to you.

Ambareesh Baliga of Karvy Stock Broking says Stock-specific, we would say it’s NTPC, BHEL, L&T, Infy, SBI and P&B. In infrastructure, it’s GMR and Punj Lloyd.

Samir Arora of Helios Capital advises investors to have a 15-20% exposure to gold, as the yellow metal will do well in next 1-2 years.

He is bullish on financials, infrastructure, select media and broking stocks. "We don't like commodities, pharma, consumer staples, and technology.".

Outlook Money has chosen Bank of India, Titan Inds, HDFC Bank, KS Oils, Mphasis, Bharti Airtel, Indraprasta Gas and Emami.

Angel Broking's top picks are HDFC Bank and Axis Bank.

Nirmal Bang is bullish on GEShipping, JPAssociate, Moser-Baer and SBI. Nirmal Bang also felt Stock specific counters like: GEShipping, SCI, Ster, TataSteel and Welspun Gujarat looks attractive to buy on dip.

KRChoksey Research's top picks are Reliance Industries, State Bank of India (SBI), Infrastructure Development Finance Company (IDFC), Housing Development Finance Corporation (HDFC), Bharat Electronics (BEL), BEML, Bharat Forge, Tata Steel, Glenmark Pharma, Mundra Port, Bharti Airtel, Hindustan Zinc.

Prabhudas Lilladher's top picks are Hero Honda, Amtek India, ICICI Bank, State Bank of India, Bank of India, Bank of Baroda, Crompton Greaves, Voltas, Jyoti Structures, IVRCL, Hindustan Unilever, Tata Chemicals, HDFC, Sun TV, IBN18 Broadcast, Aban Offshore, Bharati Shipyard, GAIL, Reliance Industries, Sun Pharma, Dishman Pharma, Lupin, Jindal Steel & Power, Reliance Communication, Tulip Telecom, Bombay Rayon Fashions, XL Telecom & Energy, Country Club, Parekh Aluminex.

According to Anagram Research's report, be invested in upstream crude companies and buy more if the commodity dips to newer 2009 lows, (which obviously means Stocks like Reliance Petroleum, Chennai Petro, MRPL, Cairn).
UBS AG in its Top 10 Picks for Asia has picked up only one stock from India and that stock is not suprisingly is Bharti Airtel Ltd!!

Financial Chronicle has picked Sun Pharma, Glaxo, Exide, GSPL, HDIL, AIA Engg, IVRCL and Everest Kanto as its top picks for the year 2009.

In an article, Money Today picked up AIA Engg, Cairn India, MTNL, NMDC, PTC, Biocon, MIC Electronics, Champagne Indage, Raymond and Gitanjali Gems as its top picks for 2009 based on the Low Debt levels and trading below Book Value.

Sharekhan's Top Picks are Bharat Heavy Electricals Ltd, Reliance Industries Ltd, LUPIN LTD, Housing Development Finance Corp.Ltd, ITC Ltd, Maruti Udyog Ltd, Shiv Vani Universal Ltd, Marico Ltd, Hindustan Lever Ltd, Larsen & Toubro Ltd, Bharti Airtel Ltd and Aban Offshore Ltd.

Well, the list is exhaustive and should be enough for you to make a shortlist on what to buy. I have not given my own picks as I am still doing some more research on few stocks and will be posting my own in a few days. Keep visiting my blog and find out. Your comments will be highly appreciated and your Top Picks will also help me and other readers to make a final decision.
Best of luck,
Srikanth shankar Matrubai

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

INDIA WILL BOUNCE BACK

2009-01-17T02:53:00.000-08:00

INDIA WILL BOUNCE BACK

Read my Article in Today's(1/1/2009) Financial Chronicle on Page 12 on "INDIA WILL BOUNCE BACK"

BOUNCING back ¦ AS AN investor and a financial advisor, I am relieved to see the year 2008 being consigned to history. It was a year in which the financial crisis held the entire world in its grip. Equity markets crashed in nearly every country, while most financial institutions across the world were looking up to their respective governments to bail them out of the mess. Though India escaped relatively unhurt from the financial market turmoil, it was badly hit by the slowdown in the commodities market and real estate. Besides, the US recession badly affected the country's information technology (IT) sector. The outlook for 2009 is not too rosy either. With general elections due in April/May, we cannot expect the government to be aggressive on the reform front. The strong dollar is holding back the foreign institutional investors (FIIs) from pumping money in Indian markets. The continuing global recession will be a dampener on the inflows. The key takeaway, however, is that India will see growth when the world continues to be in a fullblown recession.

Thankfully, there is good news too. Falling crude prices will ease the pressure a bit on the country's balance of payment.

The government has admitted that the economy is faltering and taking pro-active steps to stem the rot before it gets out of hand. Easing interest rates have made companies breath easy.

The RBI is looking to make the housing sector as attractive as before and this is one sure shot way of igniting the spark back in the economy as most sectors such as cement and steel are directly and indirectly depended on the real estate sector. Giving stimulus to infrastructure would complete the picture and the recovery would be put on the fast track. Experts have diverse opinions but majority are optimistic that by mid-2009, we should be looking at a recovery and an eventual bounce-back by the Indian economy.

Srikanth Shankar Matrubai, Bangalore

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

ALOK INDUSTRIES - SAFE AT THESE LEVELS

2009-01-17T02:52:00.000-08:00

ALOK INDUSTRIES - SAFE AT THESE LEVELS

Established in 1986, Alok Industries is one of the largest vertically integrated Textile Companies in India is preferred as a Vendor by Global Gaints like Wal-Mart , Target, etc.
The Company announced excellent results recently where its Sales grew by 40.5% to 1241crores. Exports which make up 40% of sales, grew by 40% to 460 crores. The Net Profit should have shooted up but due to Hedgeing, did not reflect the Strong Dollar but this should get reflected in Dec and March results.
The Company has started to focus aggressively on Africa, Latin America and Gulf countries in order to reduce its dependence on the US and Uk.
The Company has been very active in increasing its capacities for the last four years, all of which should start to get executed by March 2009. The Company’s officials have said, that they have no funds requirement as of now and have already tied up for the same.
Alok should start extract benefit from its Capital Investment from the next fiscal.
Alok also has plans to foray into Fabrics used for Car Upholstery, etc and also wrinkle-free, stain-resitant, bullet-proof fabrics.
With the Govt of India too considering a Package to help Exporters, Alok should be major beneficiary.
Alok has taken a huge beating in the Stock Markets. From a High of 103, it is now trading at around 18 levels. With a Book Value of 67 and at a conservative estimated EPS of 8, the stock is now trading of PE of only 2.3. The Stock can be considered in small chunk for Long Term.
CAVEAT :
Rupee appreciation can impact profit margins of the company.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

BOC INDIA - A SAFE BUY

2009-01-17T02:51:00.000-08:00

Safest Buy Now is BOC INDIA
Dear all,

BOC India was established in 1935 in Kolkata. Through seven decades of operations, it has set up itself as provider of complete solutions in gases business to the Indian industry. With over 20 production plants, comprising one of Asia's biggest air separation units; 40 warehouses and depots; 100 dealers; more than 100 dedicated tankers in the distribution fleet; - BOCI offers an wide geographic reach, thus bringing it closer to its customers in any part of the country. Headquartered in Kolkata, BOC India Limited employs 654 people and serves more than a lac customers.
BOC India which is quoting at 124 is one of the Safetest Buy in the Indian Stock Market today. The Company is Buying Back shares at 200. The Promoters hold a staggering 89.6% stake in the Company!!!
BOC india is a part of Linde Group which is the world's leading gases & engineering company with a turnover of Euro 12.3 billion & presence in over 100 countries.
In these times of tight liquidity the Company with a Capital of 85 crores, is sitting on a mountain of Cash in Hand of above 275 crores!. And Book Value of the Company is above 50.
The Company is already providing over 1290 tonnes per day of gases to TISCO which will go up substantially on TISCO's huge expansion programme. Similarly 1800 tonnes per day project to Jindal Vijaynagar too is being completed by end of 3rd Quarter of current year. Reflection of which will be in year 2009's result. 700 tonnes per day requirement is from Jindal Steel. Further big orders are expected from SAIL & Raourkela Steel. Thus company's gases production will increase substancially in near future & expected to go upto 5000 tonnes per day in next 3 -5 years.

Company is growing in its Medical gases segment & has restructured its hospital care business.

Solar Cell, photo Voltaic industry is offering a potential for gases industry. BOC India has won order from Moser Bear & has established a clear lead in this segment also. Tata Power, Reliance, videocon etc. has planned to make investment of Rs. 1,00,000 Crores in this sector, which too will provide oppurtunity to BOC.

The company will also trade in Helium Gases.

It has gained orders over 450 Crores in Engineering segment which would increase further in near future.

Hydrogen Fuel could be a big trigger in this counter. Linde is agressively pursuing in the field of Hydrogen as an alternative fuel. It may take many years to materialise but will be very positive factor for long term investor.

Company has projected a growth @ 50 % in one of its meeting.

The company is expected to reopen its buyback offer at 200 in about 6 months time. Buy now and submit the shares in buyback, and make a cool profit of about 60%.
Best of luck,
Srikanth Shankar matrubai

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

ROLTA INDIA - A BUY

2009-01-14T04:21:00.000-08:00
One can consider Buying Rolta India at these levels and adding more on every decline considering its fairly Good Results, Strong Future Prospects and Hammered Stock Price on Rumours of Promoters selling Stake. (since then, the Promoters denied such development).
Uncertain environment for IT companies especially after the Satyam fiasco, but Rolta has managed to hold its own due to its Strong Domestic Focus and Niche areas of Business.
Rolta offers engineering design and geospatial information services (GIS) to clients in the infrastructure, oil & gas, power and defence sectors.
The Fact that Rolta's clients are agencies such as the Ministry of Defence, National Remote Sensing Agency, Survey of India, Airports Authority of India, make its business Recession Proof.
Rolta's significant presence and strong track record make it well placed to tap Repeat Business, as its very nature of operations make its clients require constant upgrade and maintenance of imaging data.
Rolta's JV with Thales (a major player in Critical Information Systems) should help Rolta strenghten its position in Defense and Security Market.
With the 3G services due to commence very soon, Rolta is poised to take maximum benefit by extending its digital mapping services on mobile phones. Rolta already provides these services to Telecom companies in Europe and North America.
Rolta recently announced acquistion of Chicago based Piocon Technologies, its 4th acquistion in the past 2 year. This should help Rolta bloster its Design Portfolio.
Currently quoting around 85-90, Rolta is quoting lower than its peer and should start enjoying premium to its peer very soon especially considering its superior net Profit Magin and its Strong Client base, which are mostly government institutions and large core engineering industries.
With increased Govt spending on Internal Security and Defense Prepardness in the wake of 26/11 Mumbai blasts, Rolta's business prospects look visibly attractive.
Accumulate.
Risks :
Rolta has had a bad past when in 2002, a accounting scandal hit Rolta and was pulled up by SEBI, any repetition could spell trouble.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

SUJANA TOWERS LTD

2009-01-11T06:30:00.000-08:00
SUJANA TOWERS LTD which was formed by the de-merger of tower division of Sujana Metal Products Ltd looks attractive at current level of around Rs.25 (Face Value 5).

Sujana Towers Ltd is in manufacturing of Power Transmission towers as well as Telecom Towers. In Power transmission segment it mostly sells towers to project engg companies or in some cases, forms JV for such projects where in its role remains as tower supplier and JV partner undertakes installations. Post its massive expansion, 80 per cent of the structural steel requirement of the lower division is being met through in-house production. The company currently utilizes 85 per cent of its galvanized tower capacity.

In order to meet the rising demand, it is further increasing its gavanised tower capacity by 75 per cent to 2,28,125 mtpa in Chennai, which is expected to be commissioned from January 2009. The additional capacity will be directed at meeting export demand for power and transmission towers from East and West Africa.
Sujana Towers Ltd is looking put up a new plant in Gujarat to produce galvanized steel parts with a capacity of 75,000 MTPA. Company is also contemplating to acquire a company in China for manufacturing of tower parts and set up a subsidiary in Hong Kong for sourcing cheaper raw material. Recently, it acquired 51% shareholding in Telesuprecon Ltd (Mauritius), undertaking Telecom infrastructure contracts in various cast / central African countries.

In this business, the delivery schedule adherence is most important and critical, so most of the companies won't carry large order
books, the order are taken for shorter periods of 1-3 months and cycle of execution and order intake continues. Almost all the telecom companies are clients of company, similarly all major turnkey players in power transmission business procures towers from Sujana Towers.
Fortunately, in the second half of CY09 almost all key inputs like Steel, Zinc, Welding Electrodes have become cheaper making Sujana more viable on the cost front.

The management sees huge demand for towers, both from the power and telecom sectors. In the power transmission business, the relationship with Deepak Cable continues Sujana Towers executing orders up to 400kVA. The company is making additional investment for 756kVA capacity, government board approval for which is awaited.

Looking to the expansion in capacities and growth potential in Power transmission, Telecom and Railway electrification, the
company is likely to post significant growth in coming couple of years. Going by management's estimates, company is likely to post good growth in top line and bottomline in coming years. Stock is available at 2X expected '09 earnings, which is quite attractive compared to other companies in the same Sector.
FIIs had a Steep Holding of nearly 48% in the company and seems to have Dumped this stock alongwith BlueChips and so it is no surprise that Sujana Towers fell from a massive 240 to a ridiculous 24 now. The expected EPS for the year is 12, which gives it a PE of only 2. The Stock looks attractive in view of its strong order pipeline, expansion program and sound market strategy. Most risks are priced in and stock seems to be building a base for the next rally.

Best of luck,
Srikanth Shankar Matrubai

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

FORTIS HEALTHCARE - A MULTIBAGGER

2009-01-11T06:29:00.000-08:00
Fortis Healthcare Limited (FHL), one of India’s largest private healthcare companies with network of 23 hospitals and more than 2600 beds has been hyperactive in acquiring stakes in Hospitals across India and is said to be eyeing Wockhardt and Manipal Hospitals.
The company is a leading player in the nascent healthcare services market that has high growth potential.The company is well placed to capitalise on the high growth potential for healthcare services.

Despite being a relatively recent entrant to the healthcare space, Fortis has used acquisitions and investments to build a strong reputation in specialised areas such as cardiac care and orthopaedics, and a sizeable scale of operations in this business. Fortis Healthcare now controls a network of 12 hospitals, of which seven are owned and the rest are under management contracts; these are located mainly in and around the National Capital Region. It also recently charted a foray into Western India by acquiring a stake in Mumbai-based Hiranandani Healthcare. The owned hospitals include Escorts Heart Institute and Research Centre (EHIRC) in Delhi, other Escorts hospitals in Amritsar and Faridabad and the Fortis Hospitals in Amritsar, Noida and Mohali. The company also operates 16 satellite "Heart Command Centres" in other hospitals. EHIRC enjoys a very strong reputation in cardiac care for its skilled doctors and efficiently-run operations. Future plans include greenfield projects in Jaipur, Delhi and Gurgaon, to scale up the current bed capacity of 1,800 by another 750 over the next two years. Plans are also afoot for further geographic expansion through acquisitions and management contracts. It recently took over the 180 bed Malar Hospitals in Chennai and launched high-end "Malar Heart Institute" there.

Demand prospects for healthcare services appear strong in the light of higher longevity and the demographic shift in the Indian population and acute shortage of hospital infrastructure (a deficit of 7.5 lakh hospital beds is estimated over the next six years). A rising incidence of lifestyle diseases and increasing penetration of health insurance, suggest that service providers may enjoy strong pricing power in the years ahead. Fortis Healthcare, as one of the two leading players in the domestic healthcare space, given its strong brand equity, is well-placed to capitalise on this opportunity.

The hospital business is highly capital-intensive, with a new facility usually taking a five-six year gestation period to break even at the net profit level. Apart from revenue per bed, profitability of a hospital depends, to a large extent, on the level of occupancy and the average length of stay for patients. Higher occupancy and a lower length of stay contribute to higher asset turnover, leading to better operating profit margins. Given that Fortis made its first foray into the healthcare space in 2001, its facilities, with the exception of the key Escorts facilities, are fairly new and, therefore, have relatively low occupancy levels at present. But the management has shown its skill and expertise in improving occupencies and earning better margins.

Financials :
The Company recently turned around and posted postive Profit After Tax for the First Quarter and reported Highest Ever EBIDTA for Sep quarter at 23.16 crores with a Growth of 44%.

Dismissal of Anil Nanda case against Escorts Heart Institute and Research Centre has mitigitated the legal risk hanging over its head since its IPO. The company is now free to execute its plans for growing the Escorts network and brand.
Fortis has the Largest Chain of NABH accredited hospitals in India. Fortis Escorts Hospital, Jaipur has also attained the distinction of being the first hospital in India to get NABH accreditation barely within 10 months of start of its operations. This is the fastest for any hospital in India.
Promoters hold about 74% stake in the Company and with the just announced Rights Issue of 1000 crores, they are sure to increase their Stake.

Risks
Business risks surrounding Fortis' operations arise from its ability to retain its skilled workforce and attract new patients at its smaller centres. Apart from this, a significant proportion of corporate clientele could result in pricing pressure as such clients may try to wrangle better rates. Given the aggressive expansion plans, there are significant execution risks to the revenue and profit projections.

CONCLUSION :
With the Promoters sitting on Huge Cash and the proposed Rights Issue giving some more cash, they can get a lot of Hospital Asset at distressed price (Wockhardt, Manipal, etc) and the Company is bound to be Multi Bagger in the years to come.

BUY

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

SINTEX INDUSTRIES

2009-01-11T06:24:00.000-08:00
Sintex (earlier known as Bharat Vijay Mills) has two key divisions: textiles and plastics. In the recent past the company has diversified into high growth businesses like monolithic structures, pre-fabricated products and composite plastics. In the last few years the company has acquired seven companies and now has a manufacturing base of 35 facilities.
Key points

* Monolithic business to drive revenue growth: Sintex Industries (Sintex), known for its water tanks, has pioneered the concept of monolithic construction in India and is the market leader in this segment. The business of monolithic structures, used in low-cost housing, is expected to drive Sintex’ revenue growth in future, on the back of the rising need for affordable and mass housing in India. This business division currently has orders of close to Rs1,400 crore and its revenues are estimated to grow at a CAGR of 98% over FY2008-10E.
* Acquisitions strengthen portfolio of plastic products: Sintex has acquired five companies since May 2006, spread across geographies and catering to niche markets. These acquisitions have been timely and would help Sintex to absorb latest technologies as well as expand its reach and customer base in the composite plastic business. The integration of all these companies can lead to substantial benefits in terms of leveraging of the acquired assets and expansion of the client base.
* Prefabs, another feather in the cap: Sintex’ pre-fabricated products are gaining fast acceptance in the country. There is a huge demand for these products which are increasingly finding use in primary school buildings, toilets and telecom tower shelters. Logistics remain a key to success here. Sintex is also increasing its prefabs capacity to 100,000 sq ft per day. The business is expected to grow at a CAGR of 45% over FY2008-10E.
One can consider BUYING Sintex Industries Ltd (Sintex)as it is a well diversified company having strong domain expertise in range of plastics and concentrates on the niche segment of textiles business. Sintex is a market leader in the plastics processing industry, which has been growing at scorching pace through both organic and inorganic route, with net profit CAGR of around 36% for FY06-08A. Sintex, over the years, leveraged its established market dominance in water tanks (~70% share) to tap other higher-margin segments. Going forward, we expect Sintex's revenue and profit would grow at a CAGR of 46% and 43% respectively during FY08-FY10E, boosting EPS to Rs 25.2 in FY09 and Rs 32.6 in FY10 from Rs 15.7 in FY08.

SHAREKHAN VIEW
Valuations and view
We have valued Sintex using two valuation methods: (1) discounted cash flow (DCF) and (2) sum of the parts (SOTP). For the DCF method, we have built a ten-year, three-stage growth model and derived a fair value of Rs453 for the stock. Under the SOTP method, we have valued the various businesses of the company on the basis of enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA). Our SOTP valuation method has yielded a fair value of Rs346. Hence, our price target is the average of the two fair values: Rs400.

Over the years, Sintex has emerged as a key player in the plastic specialties business in the country. The various acquisitions carried out in the past two years have helped the company gain immediate access to desired technology and enter into some of the largest markets in the composite business. Sintex has time and again displayed its ability to pioneer new technologies (prefabs and monolithic structures) as well as proven its strong execution capabilities.

We like the company’s business model which is spread across various segments (plastics, prefabs, monolithic construction, textiles etc) and geographies. All these business are expected to witness stable to strong growth over the next few years. The ability of the company’s management to acquire companies and scale up their operations further justifies our confidence in the company. We are convinced that the company can grow inorganically as well and create value for not only itself but also for its shareholders. We reinitiate coverage on Sintex in this report. We recommend a Buy on the stock with a price target of Rs400. At the current market price the stock is trading at 13.7x and 9.2x FY2009E and FY2010E fully diluted EPS respectively. On EV/EBIDTA basis, the stock is quoting at 6.8x FY2009 and 4.8x FY2010 estimates.

RELIANCE MONEY VIEW
We expect Sintex's revenues and the net profits to grow at 46% and 43% CAGR respectively over the period FY08-10E, on account of robust growth prospects available across the plastics segment and the international acquisitions. The key driver however would be a significant opportunity coming from the inorganic front alongside its expertise in the monolithic (order book - Rs.1.45bn), prefabs and custom molding segments. Also capacity expansion seen across its plastics and textile segments will boost its performance both domestically and internationally. Looking at the strong revenue traction to come out of its acquisitions, we initiate coverage on Sintex with a Buy rating. Our target price of Rs. 364 implies an upside of 30% from current levels. At the target price, the stock would discount FY10E EPS and EV/EBITDA by 11x and 7.7x respectively.

RELIGARE VIEW
Using Discounted Cash Flow basis, we arrived on a target of 587 for Sintex and maintain a BUY
ANGEL BROKING has initiated an accumulate rating on Sintex Industries with a 12-month target price of Rs 230 in its December 15, 2008 research report.

Also visit http://goodfundsadvisor.blogspot.com
THE BLOG/BLOGGER WILL NOT BE HELD RESPONSIBLE FOR ANY ACTIONS THAT MAY RESULT IN ANY LOSS TO THE PERSON ACTING ON THE INFO OF THE BLOG, AS THE BLOG MAY BE ALTERED/DELETED FROM TIME TO TIME.

OPTO CIRCUITS - RECESSION PROOF

2009-01-11T06:17:00.000-08:00
Opto Circuits has been a Consistent Performer since its Public Issue in 2000. It has never faltered and has an uncanny knack of delivering good performance quarter after quarter.
Opto Circuit is a leading manufacturer of medical equipments like digital thermometers, cholesterol monitors, cardiac stents etc. The company came out with excellent results for September quarter with its revenues growing by more than 75% from around Rs 125 crore to Rs 217 crore and net profits have also grown by 66% from around Rs 34 crore to Rs 57 crore. The company has been able to expand its EBITDA margins also by 230 bps points on the back of strong operational efficiency and integration synergies.

In the recent past, the company had acquired two companies namely Eurocor of Germany and Criticare in US and both these acquisitions have given the company tremendous advantage to reach different geographical areas and beat the global slowdown with its diversified product basket.
Over the past few years, Opto has created strategic and shareholder-value by focusing on inorganic opportunity for growth, be it in the Advanced Micronic Devices acquisition in ’01, Palco Labs and the thermometer division of HUL in ’02, Mediaid in ’03, EuroCor in ’05, or the recent Criticare Systems acquisition in ’08. This shows the management’s focus on value creation.
The management in a recent outlook to Leading Brokerage said "Invasive segment to continue to grow at 100% for the next couple of years despite global economic slowdown; the business is fairly insulated from global economic slowdown because OCIL primarily operates in the critical care industry; non-invasive business to remain solid and growing led by new products launches; criticare provides significant growth opportunities in the US markets and is expected to generate revenues of US45-50mn in FY09 with significant margin improvement."
TARGETS :
Vikas Sethi, MD of Sethi Finmart is of the view that Opto Circuit can touch Rs.250
Kotak Securities has maintained its Buy rating on Opto Circuits with a target price of Rs 212.
Emkay Global Financial Services has maintained its buy rating on Opto Circuits with a target price of Rs 432.
India Infoline maintained a BUY on Opto in its August 2008 Report with a Price Target of Rs.509.
Sharekhan has a target of 453 in its Dec 2008 report.

COMMENTS :
Opto operates in a High Margin Business.
Opto is in a Recession Proof Business.
Opto continues to face very little new competiiton.
Opto continues to grow aggressively through acquistions.
Opto will benefit from Falling Interest Rates as it requires High Working Capital Requirement.
Opto has a strong Distribution Network across 36 countries.

RISKS :

Litigation Risks

So far Opto Circuits hasn’t faced/made any provisions for litigations. However with its EuroCor and Criticare Systems acquisitions, Opto Circuits will be vulnerable to litigation. This is because Criticare has a substantial patents portfolio (approved and pending) and EuroCor too has some patents.
Technological obsolescence
Technology plays a vital role in Medical Electronics industry in which Opto Circuits operates where it is required to constantly upgrade and innovate in terms of the technology employed.
Debtor days on the higher side
The working capital requirements for Opto Circuits have jumped over the last two years primarily due to higher debtors’ collection period and due to large inventory levels. Debtors’ collection period for FY08 was on the higher side (approx. 220 days)

CONCLUSION :

Opto Circuits has been one of those Rare Companies who believe in Distributing Wealth to its Shareholders. It has given Bonus and Dividend for last 8 year consective years.
After the recent correction in stock price, the valuations offer a good buying opportunity. Opto has traded at a premium to the market due to high growth, healthy margins and upside from potential acquisitions. But with the recent market fall and overhang of large ownership by FIIs, the stock price has corrected more than warranted , making it more attractive. BUY

Finally, it would be apt to recall OPTO CIRCUITS had made it to the list of FORBES list of 200 Top companies under $1billion in Asia.

Most brokerages have an average EPS estimation for Opto at 15. Even at a conservative PE of 10, the minimum price target should be 150.

Opto Circuits is among my Top Picks for 2009

The blogger is not responsible for any loss arising on account of transactions done on the basis of recommendations/opinions published here. You are advised to consult your Advisor before taking any decision.