EVERONN EDUCATION @398.50
Everonn is India’s second-largest
technology-aided knowledge services
company, offering comprehensive
learning solutions across the education
value chain.
The company provides Education Service
for several State Governments in India,
for their Computer Education, Computer
Literacy, Computer Aided Learning and
Teachers Training projects.
Everonn has the technological capabilities
to stream relevant educational content
simultaneously and seamlessly through
VSAT, Broadband and the 3G Spectrum
(Mobile). Everonn currently operates live
and interactive sessions through over 13
studios at Chennai and New Delhi.
The revenue of the company for the
quarter ended on Dec 31th increased 83.5
% YoY while profit increased 54%.
The topline of the company are expected
to grow at a CAGR of 51% over 2008A
to 2011E.
Everonn Education Ltd is a provider of range of services in education and training segment.
Incorporated in 2000, the company is engaged in designing and developing of educational and training
infrastructure.
Everonn Education Ltd creates virtual and interactive learning classroom networks across India. The
company caters the needs of school, colleges and retail segments. it supplies necessary hardware to schools and colleges and also offers various courses -- curriculum and non curriculum-based -- for students.
The company has been an education service provider for several states in India, for their computer
education, computer literacy, computer-aided learning and teacher training projects. It has presence
in 11 states, over 4,400 computer labs and has trained 1.4 million students.
Everonn has network of 3500 learning centers across India making it the largest networked education company.
Everonn currently operates live and interactive sessions through over 13 studios at Chennai and New Delhi
Results Updates (Q3 FY10)
The bottomline of the company for the quarter increased at 54% yoy that is Rs.121.45mn from
Rs.78.86mn of same period of last year. Total revenue for the third quarter stood at Rs.799.17
mn from Rs.435.51 which is 83.5% increased than that of a year ago period. EPS for the quarter
stood at Rs.8.03 per equity share of Rs.10.00 each.
Expenditure of the company increased 98% YoY to Rs.520.11mn from Rs.263.27mn of same
\period of last year. Interest expenses for the quarter stood at Rs.22.42mn. OPM & NPM for the
quarter stood at 35% and 15% respectively.
Products and services
Institutional Education and IT Infrastructure Services (IEIS)
The company is able to set up education ad IT infrastructure within a period of thirty days with signing
the contract with the government and government agencies. It provides IT hardware, software,
physical infrastructure and also provides other services.
IEIS projects are completed in the states of Tamil Nadu and the Union Territory of Pondicherry. The
company along with government of Andaman and Nicobar Islands is implementing an IEIS project in
order to implement computer education in all government school at all levels.
Virtual and Technology Enabled Learning Solutions (ViTELS)
ViTELS provides education and training solutions through satellite based VSAT technology. ViTELS
delivery centres are available at over 200 colleges/ schools.
Testing and Alliance Partner Services (TAPS)
This provides assessment tests that are part of various study aboard programmes, pre-employment
tests, psychometric tests and many more.
Valuation
At the current market price of Rs.401.45., the stock trades at a P/E of 14.65x and 13.04x for
FY10E and FY11E respectively.
On the basis of EV/EBDITA, the stock trades at 6.78x and 6.44x for FY10E and FY11E respectively.
Price to Book Value of the stock is expected to be at 2.46 and 2.07 respectively for FY10E and
FY11E.
The Net sales of the company are expected to grow at a CAGR of 51% over 2008 to 2011E.
Everonn signs MOU with Australasian Academy of Mentoring and Coaching (AAMC) Training Group,
a wholly Australian owned registered Training organization operating internationally.
The members at the Extra Ordinary General Meeting (EGM) of the Company, inter alia, has
approved the increase in the limit for FII investment up to 100% of paid up capital of the
Company.
expect strong order flows from the government on various projects under the public private
partnership model, recommend ‘BUY’ in this particular scrip with a target price of Rs.465.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Friday, February 26, 2010
Thursday, February 18, 2010
Man Infraconstruction IPO Analysis
Man Infraconstruction (Man Infra), a construction contractor in the realty and infrastructure segment. The company intends to utilise funds to purchase capital equipment and for general corporate purposes.
Man Infra undertakes and executes construction contracts besides providing project management and consultancy. In the infrastructure space, it takes up construction of roads and port container terminals and support infrastructure. In the realty sector, it undertakes residential and township construction, commercial and industrial construction.
The share of residential to total order book is 83% and that of commercial 10%
Promoted by Parag Shah and Mansi Shah, Man Infrastructure provides construction services for the port sector, residential and commercial real estate and roads. The company started off as a contractor for port infrastructure in August 2002 providing services including construction of onshore terminals, container freight stations, operational buildings and workshops. It has gradually entered into contracting services in the residential and commercial space in the Mumbai market. Over the years, real estate sector projects have become the major contributor to the consolidated revenue of the company. The share of the real estate sector to consolidated contract revenue came down in the fiscal ended March 2009 (FY2009) to 53% from 60% in FY 2008, but has since accelerated to 72.5% for the nine month ended December 2009.
Man Infrastructure's five biggest clients based on cumulative sales turnover of the last five fiscal years were Dynamix, Simplex, Gateway Terminals, MICT and Gokuldham Real Estate Development Company. In FY 2007, 2008 and 2009, 57.44%, 15.92% and 2.48%, respectively, of its standalone contract revenue was derived from Gateway Terminals (a container terminal operator at the Jawaharlal Nehru Port Trust) for port infrastructure projects and 6.65%, 11.47% and 5.88%, respectively, from Neelkanth, and 1.60%, 36.33% and 26.56%, respectively, from Dynamix, and 0%, 11.25% and 34.06%, respectively, from Simplex. The company has developed strong customer relationships on account of timely completion of projects in accordance with their requirements. It has long-term relationships with many of its clients, including subsidiaries or affiliates of the A.P. Moller group such as Maersk India and Gateway Terminals, and subsidiaries or affiliates of P&O Ports (now known as DP World) such as Mundra International Container Terminal, and have received repeat business from such clients.
Currently, Man Infrastructure's operations are confined to construction services. It has no presence in infrastructure project development. This is one area the company is looking at entering. Moreover, it also intends to move up the value chain in the construction services business from current item rate contracts to turnkey solutions from project design to commissioning. Towards this, the company is building up capabilities organically as well as through selective acquisitions of specialized businesses with design capability.
Man Infrastructure is offering fresh equity shares of 56,25,150 through the IPO at an offer price band of Rs 243-Rs252, which would raise about Rs 137 crore to Rs 142 crore. The company intends to use the proceeds to meet the expenditure on purchase of capital equipments of Rs 122.53 crore and for general corporate purposes.
Strengths
The order book was Rs 2020.93 crore end December 2009. About 93% comprised real estate projects, with the share of residential to total order book standing at 83% and that of commercial orders at 10%. The balance is made up of port infrastructure (5%) and road infrastructure (2%) projects. Nearly 22.31% of the total order book is accounted for by Slum Rehabilitation Authority projects and government residential projects in Maharashtra. Moreover, real estate contracts are concentrated around the Mumbai market, which has bounced back quickly from the slowdown and continues to be stable.
Weakness
Execution of some of the projects slowed down in the first nine months of FY 2010. Consequently, the contract revenue declined 14% to Rs 388.07 crore. Continued slowdown in contracts irrespective of client side or contractor related issues might affect revenue, going forward, if not sorted out.
Some of the promoter group companies are into real estate development as well as have object clause to pursue construction services.
A majority of the order backlog is made up of item rate contract. The proportion of revenue derived from contracts, where the consideration is payable solely on item rates, was 42.42% in FY 2008 and 53.00% in FY 2009. Hence, margin is not insulated from the vagaries in movement of commodity prices as well as labour and construction equipment costs.
Have limited experience in the execution of construction projects in infrastructure sectors other than port infrastructure and real estate. Similarly, has no prior experience of build-operate-transfer projects, either the bidding or development and operation.
Despite targeting a port capacity addition of 511 million tones in the Eleventh Five-Year Plan (YEARS!!), the country is going slow on order finalisation. The slippage is currently estimated at about 40% and this could impact the order inflows from this sector.
Valuation
Consolidated sales were up by 154% to Rs 586.92 crore and net profit equally higher by 159% to Rs 82.55 crore in FY 2009. On post-IPO equity, the FY 2009 EPS works out to Rs 17.5 and the nine-month ended December 2009 annualised EPS Rs 18.9.
Underlying the high profit, OPM stand at 30.4% for the nine months ended December 2009, up from 24.7% in FY 2009. For a pure construction company, this margin looks high.
At the current offer price of Rs 243-Rs 252, the consolidated EPS for FY 2009 is discounted 13.9-14.4 times. Comparable companies BL Kashyap and Consolidated Construction Consortium are discounting their FY 2009 consolidated EPS 10.2 and 22 times.
Offer details
The offer is open from February 18-22. On offer are a total of 5,625,150 shares. IDFC SSKI and Edelweiss Capital are the lead managers to this issue
You may apply,for decent listing gains.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Man Infra undertakes and executes construction contracts besides providing project management and consultancy. In the infrastructure space, it takes up construction of roads and port container terminals and support infrastructure. In the realty sector, it undertakes residential and township construction, commercial and industrial construction.
The share of residential to total order book is 83% and that of commercial 10%
Promoted by Parag Shah and Mansi Shah, Man Infrastructure provides construction services for the port sector, residential and commercial real estate and roads. The company started off as a contractor for port infrastructure in August 2002 providing services including construction of onshore terminals, container freight stations, operational buildings and workshops. It has gradually entered into contracting services in the residential and commercial space in the Mumbai market. Over the years, real estate sector projects have become the major contributor to the consolidated revenue of the company. The share of the real estate sector to consolidated contract revenue came down in the fiscal ended March 2009 (FY2009) to 53% from 60% in FY 2008, but has since accelerated to 72.5% for the nine month ended December 2009.
Man Infrastructure's five biggest clients based on cumulative sales turnover of the last five fiscal years were Dynamix, Simplex, Gateway Terminals, MICT and Gokuldham Real Estate Development Company. In FY 2007, 2008 and 2009, 57.44%, 15.92% and 2.48%, respectively, of its standalone contract revenue was derived from Gateway Terminals (a container terminal operator at the Jawaharlal Nehru Port Trust) for port infrastructure projects and 6.65%, 11.47% and 5.88%, respectively, from Neelkanth, and 1.60%, 36.33% and 26.56%, respectively, from Dynamix, and 0%, 11.25% and 34.06%, respectively, from Simplex. The company has developed strong customer relationships on account of timely completion of projects in accordance with their requirements. It has long-term relationships with many of its clients, including subsidiaries or affiliates of the A.P. Moller group such as Maersk India and Gateway Terminals, and subsidiaries or affiliates of P&O Ports (now known as DP World) such as Mundra International Container Terminal, and have received repeat business from such clients.
Currently, Man Infrastructure's operations are confined to construction services. It has no presence in infrastructure project development. This is one area the company is looking at entering. Moreover, it also intends to move up the value chain in the construction services business from current item rate contracts to turnkey solutions from project design to commissioning. Towards this, the company is building up capabilities organically as well as through selective acquisitions of specialized businesses with design capability.
Man Infrastructure is offering fresh equity shares of 56,25,150 through the IPO at an offer price band of Rs 243-Rs252, which would raise about Rs 137 crore to Rs 142 crore. The company intends to use the proceeds to meet the expenditure on purchase of capital equipments of Rs 122.53 crore and for general corporate purposes.
Strengths
The order book was Rs 2020.93 crore end December 2009. About 93% comprised real estate projects, with the share of residential to total order book standing at 83% and that of commercial orders at 10%. The balance is made up of port infrastructure (5%) and road infrastructure (2%) projects. Nearly 22.31% of the total order book is accounted for by Slum Rehabilitation Authority projects and government residential projects in Maharashtra. Moreover, real estate contracts are concentrated around the Mumbai market, which has bounced back quickly from the slowdown and continues to be stable.
Weakness
Execution of some of the projects slowed down in the first nine months of FY 2010. Consequently, the contract revenue declined 14% to Rs 388.07 crore. Continued slowdown in contracts irrespective of client side or contractor related issues might affect revenue, going forward, if not sorted out.
Some of the promoter group companies are into real estate development as well as have object clause to pursue construction services.
A majority of the order backlog is made up of item rate contract. The proportion of revenue derived from contracts, where the consideration is payable solely on item rates, was 42.42% in FY 2008 and 53.00% in FY 2009. Hence, margin is not insulated from the vagaries in movement of commodity prices as well as labour and construction equipment costs.
Have limited experience in the execution of construction projects in infrastructure sectors other than port infrastructure and real estate. Similarly, has no prior experience of build-operate-transfer projects, either the bidding or development and operation.
Despite targeting a port capacity addition of 511 million tones in the Eleventh Five-Year Plan (YEARS!!), the country is going slow on order finalisation. The slippage is currently estimated at about 40% and this could impact the order inflows from this sector.
Valuation
Consolidated sales were up by 154% to Rs 586.92 crore and net profit equally higher by 159% to Rs 82.55 crore in FY 2009. On post-IPO equity, the FY 2009 EPS works out to Rs 17.5 and the nine-month ended December 2009 annualised EPS Rs 18.9.
Underlying the high profit, OPM stand at 30.4% for the nine months ended December 2009, up from 24.7% in FY 2009. For a pure construction company, this margin looks high.
At the current offer price of Rs 243-Rs 252, the consolidated EPS for FY 2009 is discounted 13.9-14.4 times. Comparable companies BL Kashyap and Consolidated Construction Consortium are discounting their FY 2009 consolidated EPS 10.2 and 22 times.
Offer details
The offer is open from February 18-22. On offer are a total of 5,625,150 shares. IDFC SSKI and Edelweiss Capital are the lead managers to this issue
You may apply,for decent listing gains.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Wednesday, February 17, 2010
Don't fall prey to tips for quick returns: Sebi
SEBI has observed a proliferation of websites that offer investment advice to investors. Many of these websites offer investment advice not backed by any reasonable basis and prima facie appear to be misguiding. Investors should realize that when they follow such advice they are exposing themselves to undue risk in using unconfirmed information available on such Websites/Blogs/astrology predictions or advice/Newspaper Advertisements/SMS’s/Emails/rumours/ advice rendered through television or print media and trading tips on an intra-day basis, short term basis or long term basis. The public in general is advised not to fall prey to or be lured by such sources of information promising quick gains and unrealistic high returns. It is advised that investors should take well informed investment decisions.
The following may be borne in mind:
• Deal only with/ through SEBI registered intermediaries.
• Do not get carried away by advertisements promising unrealistic gains and windfall profits.
• Do not invest based on market rumours or unconfirmed or unauthentic news.
• Be aware that advice through television or print media does not mean that it is the opinion of the channel or publisher.
• Be extra cautious while using information available from media sources such as Websites/ Blogs/ Newspaper Advertisements/ SMS’s Emails/rumours/ advice through television or print media for information and tips for intra-day, short term or long term investing.
• Do not be guided by astrological predictions on share prices and market movements.
• Do not make investment decisions on the basis of implicit/explicit promises made by anyone.
• Do not be unduly influenced by indicative returns.
• Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.
Remember: Always know your risk-reward BEFORE investing.
• There are many websites which educate us as investors, there are news websites, company websites, database websites which we can use to know more about the companies that we wish to invest.
• Never invest on market rumours or tips, if one says one has inside information why oneself is not taking full benefit and sharing with everyone else. Are the so-called insiders so reckless that they don't know how to protect their own interests?
• Now there are so many business channels and investment related newspapers and a multitude of analysts write their views but nobody is bothered about knowing their credentials, a failed trader becoming a super analyst is a rarity but it seems it is becoming abundance. May be SEBI is of the same view and that is why they have had to caution investors.
• Predicting market turns is always difficult but as human beings we have to predict for future course of action. As investors we need to be cautious with those who claim they can time the market like a school time-table, only certainty in market is its uncertainty so never invest on any market call / tip before knowing the credentials of the person, IT IS YOUR HARD-EARNED MONEY AT STAKE!
• When u are Getting Free calls with accuracy of more then 80% +.....Sometime our stock fails...but then we give stop & resistance levels too, to our paid clients.
• Always remember...no force or single person can move stock.Its a game of mass psychology.
We look at chart ,collect information and just spread it .......free of cost.
• Always Remember :Never pay money to anybody ..who is asking for it.Just ask any Analyst (TV ,Media ,Print or Website wale Analyst ko pucho............What is their success ratio in Day trading???A Million $ Question ...Doing Bla-Bla on TV ,writing on web is very easy......but while u trade .....u are playing with live wire
wish u happy trading to all of u.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
The following may be borne in mind:
• Deal only with/ through SEBI registered intermediaries.
• Do not get carried away by advertisements promising unrealistic gains and windfall profits.
• Do not invest based on market rumours or unconfirmed or unauthentic news.
• Be aware that advice through television or print media does not mean that it is the opinion of the channel or publisher.
• Be extra cautious while using information available from media sources such as Websites/ Blogs/ Newspaper Advertisements/ SMS’s Emails/rumours/ advice through television or print media for information and tips for intra-day, short term or long term investing.
• Do not be guided by astrological predictions on share prices and market movements.
• Do not make investment decisions on the basis of implicit/explicit promises made by anyone.
• Do not be unduly influenced by indicative returns.
• Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.
Remember: Always know your risk-reward BEFORE investing.
• There are many websites which educate us as investors, there are news websites, company websites, database websites which we can use to know more about the companies that we wish to invest.
• Never invest on market rumours or tips, if one says one has inside information why oneself is not taking full benefit and sharing with everyone else. Are the so-called insiders so reckless that they don't know how to protect their own interests?
• Now there are so many business channels and investment related newspapers and a multitude of analysts write their views but nobody is bothered about knowing their credentials, a failed trader becoming a super analyst is a rarity but it seems it is becoming abundance. May be SEBI is of the same view and that is why they have had to caution investors.
• Predicting market turns is always difficult but as human beings we have to predict for future course of action. As investors we need to be cautious with those who claim they can time the market like a school time-table, only certainty in market is its uncertainty so never invest on any market call / tip before knowing the credentials of the person, IT IS YOUR HARD-EARNED MONEY AT STAKE!
• When u are Getting Free calls with accuracy of more then 80% +.....Sometime our stock fails...but then we give stop & resistance levels too, to our paid clients.
• Always remember...no force or single person can move stock.Its a game of mass psychology.
We look at chart ,collect information and just spread it .......free of cost.
• Always Remember :Never pay money to anybody ..who is asking for it.Just ask any Analyst (TV ,Media ,Print or Website wale Analyst ko pucho............What is their success ratio in Day trading???A Million $ Question ...Doing Bla-Bla on TV ,writing on web is very easy......but while u trade .....u are playing with live wire
wish u happy trading to all of u.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Monday, February 15, 2010
Do not let the change go !!!! Grab it - Concurrent
Scripscan:
Code:531261
Price when posted : BSE: Rs 17.30
Concurrent belongs to the the "T" group or trade to trade segment.Its funny to see people making "trade to trade" stuff a bone of contention here.It hardly means anything except people can`t trade intraday,circuit filter would be 5%..thats it and nothing else...Even the likes of reliance capital,lupin been in the t group earlier...Its just done to curve the volatility..Ignorant guys are making a heck of it..AT ANY POINT OF TIME IT WOULD BE SHIFTED BACK TO ITS B group...Many of you are not digesting the tumultous seeling that concurrent is facing.To answer I can only say... it has moved from a level of 2 to 18..that too under the present market environment..why wont people sell?You expect each and everyone to be aware of the real story of concurrent?90% investors acts on hearsay and rumuors...if losses occurs nothing but stock market would be blamed...How does a `t` group matter if story is great? Take the case of today..nearly 14 lakhs shares changed hands.It means 14 lakhs delivery shares were bought and sold .No bulk deal has happened in the trading session which signifies exiting of weaker hands and entry of stronger investors.Obviously their thoughts and ideologies are different and superior to that of sellers.
They have just bagged an order of 11 odd crorers for material handing.Material handling is easy stuff,its just transport of material from here to there.They gonna complete the order by this march and make a profit of 1 cr from the deal.
Concurrent being in the bulk deals for huge selling from a particular company named ABSOLUTE LEASING & FINANCE PVT LTD.Its a company of MR G.K.Agarwal who was the erstwhile owner of kushagra,he was told to exit the company and thus he offloaded all his 15 lakh odd shares in the market.Weaker hands gone out.
Concurrent has made an acqusition of kazi aviation for zero bucks.They hope to bag orders from riyadh airport for handling and maintaince.If everything goes right this high margin vertical would contribute 100crs topline in the coming few years.
Its about to bag a big order from andhra cement for captive power plans.It would be a huge contract with time spanning a period of 20-30years.
A press conference is soon round the corner in mumbai,Sudhir plans to make Mr Vilas rao desmukh as the cheif guest.A couple of deals could be signed infront of him.
Kushagra operations are nearly stopped,even concurrent has returned all their offices and stuff to them.Its a great sign of a strong aggresive visionary entreprenur which fascinated me the most.
The company’s Operating profit and Net profit is expected to grow at a CAGR of 11% and 200% over FY08 to FY11E.
The Company has launched its official website ww(.)concurrentindia(.)com in an effort to bring important news and details of the projects for providing the user with better information about overall activities of the company.
The company has bagged EPC contract from Pennant Penguin Holdings in Kandy, Srilanka. The contract involves setting up of 30 MW power projects which is expected to be executed in over a span of 24 months.
The company is looking to float a preferential issue at Rs 15 per share for the purpose of acquisition of land for logistics business. The company has identified land of 25 acres near Hyderabad City for the purpose of setting up logistics supply chain.
The company has bagged a sub-contract worth Rs 22crore from Sreenidhi Constructions, Belgaum, Karnataka.
The company has signed agreement with Ellis Richardson Inc (ERI) on an exclusive basis for Indian markets and on a non-exclusive basis for the overseas markets.
The company has submitted its bid for acquisition of 4.15 MW power project in the state of Andhra Pradesh. The project is a Mini Hydro Electric Power Plant. The cost of the project is Rs. 23crore.
The company is looking to acquire 320 perches land in Sri Jayewardenepura Kotte, Colombo, Sri Lanka.
The company launched a pilot project for power generation in the Negombo beach region of Sri Lanka, has announced that the pilot was successful.
We recommend ‘BUY’ with a target price of Rs.40.00 for long term.
I AM VERY BULLISH ON THIS COMPANY,To summarize, buy 10000-20000 shares of concurrent now and retire rich after 3 years.Cheers folks. MY TARGET............
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Code:531261
Price when posted : BSE: Rs 17.30
Concurrent belongs to the the "T" group or trade to trade segment.Its funny to see people making "trade to trade" stuff a bone of contention here.It hardly means anything except people can`t trade intraday,circuit filter would be 5%..thats it and nothing else...Even the likes of reliance capital,lupin been in the t group earlier...Its just done to curve the volatility..Ignorant guys are making a heck of it..AT ANY POINT OF TIME IT WOULD BE SHIFTED BACK TO ITS B group...Many of you are not digesting the tumultous seeling that concurrent is facing.To answer I can only say... it has moved from a level of 2 to 18..that too under the present market environment..why wont people sell?You expect each and everyone to be aware of the real story of concurrent?90% investors acts on hearsay and rumuors...if losses occurs nothing but stock market would be blamed...How does a `t` group matter if story is great? Take the case of today..nearly 14 lakhs shares changed hands.It means 14 lakhs delivery shares were bought and sold .No bulk deal has happened in the trading session which signifies exiting of weaker hands and entry of stronger investors.Obviously their thoughts and ideologies are different and superior to that of sellers.
They have just bagged an order of 11 odd crorers for material handing.Material handling is easy stuff,its just transport of material from here to there.They gonna complete the order by this march and make a profit of 1 cr from the deal.
Concurrent being in the bulk deals for huge selling from a particular company named ABSOLUTE LEASING & FINANCE PVT LTD.Its a company of MR G.K.Agarwal who was the erstwhile owner of kushagra,he was told to exit the company and thus he offloaded all his 15 lakh odd shares in the market.Weaker hands gone out.
Concurrent has made an acqusition of kazi aviation for zero bucks.They hope to bag orders from riyadh airport for handling and maintaince.If everything goes right this high margin vertical would contribute 100crs topline in the coming few years.
Its about to bag a big order from andhra cement for captive power plans.It would be a huge contract with time spanning a period of 20-30years.
A press conference is soon round the corner in mumbai,Sudhir plans to make Mr Vilas rao desmukh as the cheif guest.A couple of deals could be signed infront of him.
Kushagra operations are nearly stopped,even concurrent has returned all their offices and stuff to them.Its a great sign of a strong aggresive visionary entreprenur which fascinated me the most.
The company’s Operating profit and Net profit is expected to grow at a CAGR of 11% and 200% over FY08 to FY11E.
The Company has launched its official website ww(.)concurrentindia(.)com in an effort to bring important news and details of the projects for providing the user with better information about overall activities of the company.
The company has bagged EPC contract from Pennant Penguin Holdings in Kandy, Srilanka. The contract involves setting up of 30 MW power projects which is expected to be executed in over a span of 24 months.
The company is looking to float a preferential issue at Rs 15 per share for the purpose of acquisition of land for logistics business. The company has identified land of 25 acres near Hyderabad City for the purpose of setting up logistics supply chain.
The company has bagged a sub-contract worth Rs 22crore from Sreenidhi Constructions, Belgaum, Karnataka.
The company has signed agreement with Ellis Richardson Inc (ERI) on an exclusive basis for Indian markets and on a non-exclusive basis for the overseas markets.
The company has submitted its bid for acquisition of 4.15 MW power project in the state of Andhra Pradesh. The project is a Mini Hydro Electric Power Plant. The cost of the project is Rs. 23crore.
The company is looking to acquire 320 perches land in Sri Jayewardenepura Kotte, Colombo, Sri Lanka.
The company launched a pilot project for power generation in the Negombo beach region of Sri Lanka, has announced that the pilot was successful.
We recommend ‘BUY’ with a target price of Rs.40.00 for long term.
I AM VERY BULLISH ON THIS COMPANY,To summarize, buy 10000-20000 shares of concurrent now and retire rich after 3 years.Cheers folks. MY TARGET............
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Sunday, February 14, 2010
Stock market related Fun valentine day messages SMS 14 Feb 2010!!!
We market Persons have our own Dictionary which is filled with market words.
Here are the Best messages SMS for Stock market traders,investors
have Fun on this valentine Day
You have made me rangebound between hope and despair.Please accept my love otherwise I will breakdown like NIKKEI & will never reclaim the old highs of Hope!!
Happy valentine Day
If you promise to provide me long term support,I will bounce back From any bottom
Happy valentine Day
My heart for you will never be bearish.
My smile for you will never go in downtrend .
My love for you will never touch resistance.
I love you
Happy valentine day
You and me are the best combination like
fundamental and technical analysis together
Happy valentine Day
Anyone can make you SMILE,
anyone can make you CRY,
But it is that special person
That can make you bullish in bear markets of Life
I love you
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Here are the Best messages SMS for Stock market traders,investors
have Fun on this valentine Day
You have made me rangebound between hope and despair.Please accept my love otherwise I will breakdown like NIKKEI & will never reclaim the old highs of Hope!!
Happy valentine Day
If you promise to provide me long term support,I will bounce back From any bottom
Happy valentine Day
My heart for you will never be bearish.
My smile for you will never go in downtrend .
My love for you will never touch resistance.
I love you
Happy valentine day
You and me are the best combination like
fundamental and technical analysis together
Happy valentine Day
Anyone can make you SMILE,
anyone can make you CRY,
But it is that special person
That can make you bullish in bear markets of Life
I love you
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Saturday, February 13, 2010
Important Financial Ratios for Fundamental analysis
1. Book Value Per Share =(Equity Share Capital + Reserve)/Total No. of Equity Shares
2. Cover =Earnings Per Share (EPS)/Dividends per Share
3.Earnings per Share (EPS) ={Profit after Tax(PAT)—Preference Dividend}/Total No. of Equity Shares
4. Earnings Yield (%) =(Earnings Per Share (EPS)/Market Price of Share)x 100
5. P/E Ratio= Market Price of the Share/Earnings per Share (EPS)
6. P/BV Ratio=Market Price the of Share/Book Value of the Share
7. Yield (%)= (Dividend per Share/Market Price per Share)*100
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
2. Cover =Earnings Per Share (EPS)/Dividends per Share
3.Earnings per Share (EPS) ={Profit after Tax(PAT)—Preference Dividend}/Total No. of Equity Shares
4. Earnings Yield (%) =(Earnings Per Share (EPS)/Market Price of Share)x 100
5. P/E Ratio= Market Price of the Share/Earnings per Share (EPS)
6. P/BV Ratio=Market Price the of Share/Book Value of the Share
7. Yield (%)= (Dividend per Share/Market Price per Share)*100
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Friday, February 12, 2010
Top 10 Stocks in NSE BSE with rise in Promoters Shareholding in Dec 2009
This is unique List of Stocks Where promoters Shareholding is Rising.
Indian promoters have Increased their Stake ,While Promoters have Exited From their Stock Investment
Many of These Stocks are Still out of stock market investment research,So Could Be multibaggers.
Consider this List As Starting Point and research the Company before buying stocks.
Or ask us about the Company.
Share Name BSE Code NSE Code % Promoters holding 31 Dec 2009 % Promoters holding 30 Sep 2009 %Change
GEE KAY FINANCE & LEASING COMPANY LTD. 531863 NA 8.6\ 0.54 +1492.6%
MACK TRADING CO.LTD. 501471 NA 72.89\ 10.14 +618.8%
CONCURRENT (INDIA) INFRASTRUCTURE LTD 531261 NA 43.31\ 13.4 +223.2%
COMP-U-LEARN TECH INDIA LTD. 532363 NA 14.08\ 4.65 +202.8%
MAFATLAL INDUSTRIES LTD. 500264 MAFATLAIND 65.73\ 32.74 +100.8%
PRECISION CONTAINEURS LTD. 523874 NA 11.83\ 6.18 + 91.4%
VAS INFRASTRUCTURE LTD. 531574 NA 59.33\ 31.99 +85.5%
MAYTAS INFRA LTD. 532907 MAYTASINFR 37.01\ 21.5 +72.1%
ANUKARAN COMMERCIAL ENTERPRISES LTD. 512355 NA 60.5\ 38.1 +58.8%
KOHINOOR BROADCASTING CORPORATION LTD. 531366 NA 0.36\ 0.23 +56.5%
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Indian promoters have Increased their Stake ,While Promoters have Exited From their Stock Investment
Many of These Stocks are Still out of stock market investment research,So Could Be multibaggers.
Consider this List As Starting Point and research the Company before buying stocks.
Or ask us about the Company.
Share Name BSE Code NSE Code % Promoters holding 31 Dec 2009 % Promoters holding 30 Sep 2009 %Change
GEE KAY FINANCE & LEASING COMPANY LTD. 531863 NA 8.6\ 0.54 +1492.6%
MACK TRADING CO.LTD. 501471 NA 72.89\ 10.14 +618.8%
CONCURRENT (INDIA) INFRASTRUCTURE LTD 531261 NA 43.31\ 13.4 +223.2%
COMP-U-LEARN TECH INDIA LTD. 532363 NA 14.08\ 4.65 +202.8%
MAFATLAL INDUSTRIES LTD. 500264 MAFATLAIND 65.73\ 32.74 +100.8%
PRECISION CONTAINEURS LTD. 523874 NA 11.83\ 6.18 + 91.4%
VAS INFRASTRUCTURE LTD. 531574 NA 59.33\ 31.99 +85.5%
MAYTAS INFRA LTD. 532907 MAYTASINFR 37.01\ 21.5 +72.1%
ANUKARAN COMMERCIAL ENTERPRISES LTD. 512355 NA 60.5\ 38.1 +58.8%
KOHINOOR BROADCASTING CORPORATION LTD. 531366 NA 0.36\ 0.23 +56.5%
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Top 10 Stocks With highest rise in % FII Shareholding NSE BSE
Top 10 Stocks which FII increased their stakes in terms of percentage shareholding
Many of these are Mid Cap Peeny Stocks
But in future we will see what is impact of FII Buying these shares
Stock BSE Code NSE Code FII % Holding 31.12.2009 FII %Holding 30.09.2009 % Change
Jai Balaji Industries Ltd 532976 JAIBALAJI 11.63 \0.05 + 23160%
Mudra Lifestyle 532820 MUDRA 1.67\ 0.01 +16600%
Kaashyap Tech 532283 Not Available 31.86 \0.46 +6826.09%
Sakthi Sugars 507315 SAKHTISUG 9.99 \0.18 +5450%
VIP INDUSTRIES 507880 VIPIND 0.97 \0.02 +4750%
Sunteck Realty 512179 SUNTECK 5.47\ 0.35 +1462.86%
Andhra Pradesh Paper Mills 502330 APPAPER 20.98 \1.38 +1420.29%
Cosmo Films 508814 COSMOFILMS 0.26 \0.02 +1200%
Walchandnagar Industries 507410 WALCHANNAG 0.12 \0.01 +1100%
Symphony Comfort Systems 517385 Not Available 0.11 \0.01 +1000%
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Many of these are Mid Cap Peeny Stocks
But in future we will see what is impact of FII Buying these shares
Stock BSE Code NSE Code FII % Holding 31.12.2009 FII %Holding 30.09.2009 % Change
Jai Balaji Industries Ltd 532976 JAIBALAJI 11.63 \0.05 + 23160%
Mudra Lifestyle 532820 MUDRA 1.67\ 0.01 +16600%
Kaashyap Tech 532283 Not Available 31.86 \0.46 +6826.09%
Sakthi Sugars 507315 SAKHTISUG 9.99 \0.18 +5450%
VIP INDUSTRIES 507880 VIPIND 0.97 \0.02 +4750%
Sunteck Realty 512179 SUNTECK 5.47\ 0.35 +1462.86%
Andhra Pradesh Paper Mills 502330 APPAPER 20.98 \1.38 +1420.29%
Cosmo Films 508814 COSMOFILMS 0.26 \0.02 +1200%
Walchandnagar Industries 507410 WALCHANNAG 0.12 \0.01 +1100%
Symphony Comfort Systems 517385 Not Available 0.11 \0.01 +1000%
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Thursday, February 11, 2010
Man Industries India Ltd
Man Industries India Ltd— BUY—55—INR
Sector — Metals (Tubes & Pipes)
Regd.Off.— Man House, 102, S V Road, Mumbai, M.H. -- 400056
Listed — NSE, BSE.
Company overview—
Man industries promoted by Rameshchandra Mansukhani was incorporated on March 19, 1988 has its aluminium extrusion plant at Pithampur, MP. Man Industries (India) Limited is the flag ship company of Man Group of UK is a leading manufacturer of large diameter SAW Line Pipes and Coating Systems for high pressure applications like transportation of Oil, Gas and other Petrochemical products. Company is an ISO 9001, ISO 9002, ISO-14001 and ISO-18001 certified and all its facilities hold valid API Licenses for production of high pressure line pipes for hydrocarbon applications. Company plants are located at Pithampur, MP and Anjar (Kutch), Gujarat. Company commenced its operations with manufacture of aluminium extrusions in 1988; the company's diversification into manufacture of SAW/Spiral pipes in 1994 is presently contributing more to the company's turnover than the aluminium extrusion division. The pipes division of the company which includes both Saw Pipe manufacturing facility and Spiral Pipe and Coating are also located at Pithampur, MP near to the aluminium extrusion plant. The company has Collaboration agreement with Chr. Haeusler, Switzerland for API-grade longitudinally welded SAW pipes. The SAW pipe division at Pithampur, can manufacture pipes of diameters between 18 inches and 60 inches and thicknesses between 6 mm and 25.4 mm and of lengths upto 12 mtr. Company is eligible to bid for major trunk line projects both in domestic and as well in international level as it has upgraded its facilities to meet international quality standards. Company has world’s most advanced technology in this highly specialized and high priority area. The latest pre stressed 3 Roll Bending Process from Heausler, is being used to manufacture pipes of matchless profile, strength and toughness. The collaborators have given a performance guarantee for the plant in terms of production parameters and adherence to all International Standards including API / NACE.
Products & Services—
Company has manufacturing facility for Spiral SAW Pipes along with facilities for various corrosion preventive coatings on line pipes such as FBE/3 layer Polyethylene Coating, Coal tar Enamel Coating, Internal & external Cement mortar and internal epoxy Lining, Aluminium extrusions. In addition to the above, the facility of a COLD EXPANDING MACHINE is also available at the works. EXPANDER is imported from Romania to meet the mandatory/optional requirements of oil & gas industry. With a state-of-the-art online plate UT Machine, an automated Roll Bending Mill, equipped with CNC & PLC Controls, state of art Internal and External Welding Units, On line real time Radioscopy, advanced CNC Hydrostatic testing, on line X-ray / Ultrasonic M/c. etc., it supply quality and flawless steel pipes confirming to API / NACE international standards, to meet global demand of a large diameter of range from 18" to 60" meant for critical applications.
Recent developments—
Company bagged Rs 13.40 billion orders from Middle East during the current year. The latest international order has been allotted to the Indian company amidst stiff international bidding. The order has to be executed in the current financial year. With the latest order of Rs 13.40 billion, the company’s total order book stands about Rs 20 billion.
Company is exploring the possibilities to set up a manufacturing unit in the US at USD 200 million. Company had plans to start the said facility two years back and had even bought the required land. However, the company was forced to postpone the proposal, as seven US and Indian companies entered the market at the same time. Since then, a global recession has further depressed demand. Steel pipe mills also, as a rule, do not operate at more than 60 per cent of capacity. However, with a recovery underway, MIIL’s interest in the US scheme has renewed. Company would look for an investment opportunity of $200 million to produce approximately 300,000 tons of steel pipes of different diameter, gauges and sizes.
Valuation—
Company keeping pace with its progressive role and strong order book positions will make it grow at very sustainable rate in future. At CMP, stock is trading at 9.65 P/E multiple of its FY2011 estimated EPS. We recommend investors to "BUY" "Man Industries" for medium to long-term investment horizon.
Market Cap 295.73
* EPS (TTM) 10.57
* P/E 5.25
* P/C 3.24
* Book Value 76.54
* Price/Book 0.73
Div(%) 30.00
Div Yield(%) 2.70
Market Lot 1.00
Face Value 5.00
Industry P/E 11.70
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Sector — Metals (Tubes & Pipes)
Regd.Off.— Man House, 102, S V Road, Mumbai, M.H. -- 400056
Listed — NSE, BSE.
Company overview—
Man industries promoted by Rameshchandra Mansukhani was incorporated on March 19, 1988 has its aluminium extrusion plant at Pithampur, MP. Man Industries (India) Limited is the flag ship company of Man Group of UK is a leading manufacturer of large diameter SAW Line Pipes and Coating Systems for high pressure applications like transportation of Oil, Gas and other Petrochemical products. Company is an ISO 9001, ISO 9002, ISO-14001 and ISO-18001 certified and all its facilities hold valid API Licenses for production of high pressure line pipes for hydrocarbon applications. Company plants are located at Pithampur, MP and Anjar (Kutch), Gujarat. Company commenced its operations with manufacture of aluminium extrusions in 1988; the company's diversification into manufacture of SAW/Spiral pipes in 1994 is presently contributing more to the company's turnover than the aluminium extrusion division. The pipes division of the company which includes both Saw Pipe manufacturing facility and Spiral Pipe and Coating are also located at Pithampur, MP near to the aluminium extrusion plant. The company has Collaboration agreement with Chr. Haeusler, Switzerland for API-grade longitudinally welded SAW pipes. The SAW pipe division at Pithampur, can manufacture pipes of diameters between 18 inches and 60 inches and thicknesses between 6 mm and 25.4 mm and of lengths upto 12 mtr. Company is eligible to bid for major trunk line projects both in domestic and as well in international level as it has upgraded its facilities to meet international quality standards. Company has world’s most advanced technology in this highly specialized and high priority area. The latest pre stressed 3 Roll Bending Process from Heausler, is being used to manufacture pipes of matchless profile, strength and toughness. The collaborators have given a performance guarantee for the plant in terms of production parameters and adherence to all International Standards including API / NACE.
Products & Services—
Company has manufacturing facility for Spiral SAW Pipes along with facilities for various corrosion preventive coatings on line pipes such as FBE/3 layer Polyethylene Coating, Coal tar Enamel Coating, Internal & external Cement mortar and internal epoxy Lining, Aluminium extrusions. In addition to the above, the facility of a COLD EXPANDING MACHINE is also available at the works. EXPANDER is imported from Romania to meet the mandatory/optional requirements of oil & gas industry. With a state-of-the-art online plate UT Machine, an automated Roll Bending Mill, equipped with CNC & PLC Controls, state of art Internal and External Welding Units, On line real time Radioscopy, advanced CNC Hydrostatic testing, on line X-ray / Ultrasonic M/c. etc., it supply quality and flawless steel pipes confirming to API / NACE international standards, to meet global demand of a large diameter of range from 18" to 60" meant for critical applications.
Recent developments—
Company bagged Rs 13.40 billion orders from Middle East during the current year. The latest international order has been allotted to the Indian company amidst stiff international bidding. The order has to be executed in the current financial year. With the latest order of Rs 13.40 billion, the company’s total order book stands about Rs 20 billion.
Company is exploring the possibilities to set up a manufacturing unit in the US at USD 200 million. Company had plans to start the said facility two years back and had even bought the required land. However, the company was forced to postpone the proposal, as seven US and Indian companies entered the market at the same time. Since then, a global recession has further depressed demand. Steel pipe mills also, as a rule, do not operate at more than 60 per cent of capacity. However, with a recovery underway, MIIL’s interest in the US scheme has renewed. Company would look for an investment opportunity of $200 million to produce approximately 300,000 tons of steel pipes of different diameter, gauges and sizes.
Valuation—
Company keeping pace with its progressive role and strong order book positions will make it grow at very sustainable rate in future. At CMP, stock is trading at 9.65 P/E multiple of its FY2011 estimated EPS. We recommend investors to "BUY" "Man Industries" for medium to long-term investment horizon.
Market Cap 295.73
* EPS (TTM) 10.57
* P/E 5.25
* P/C 3.24
* Book Value 76.54
* Price/Book 0.73
Div(%) 30.00
Div Yield(%) 2.70
Market Lot 1.00
Face Value 5.00
Industry P/E 11.70
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Wednesday, February 10, 2010
ARSS Infrastructure Projects IPO analysis
Focused on rail and road infrastructure
Rs 2877.53-crore unexecuted order book, 41% comprises railway projects, 41% road projects, and 3% irrigation
Promoted by Subhash Agarwal of Bhubaneswar and his three brothers, ARSS Infrastructure Projects (AIPL) provides construction services for railway infrastructure, roads & highways and irrigation projects. Originally incorporated in May 2000 as ARSS Stones, the company changed its name to ARSS Infrastructure Projects in May 2005. Initially, it took up railway contracts mainly in and gradually expanded to zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. Its expertise in railway construction projects extends to earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, and linking of tracks. Over the years, it has diversified its field of activities into other construction segments such as development and construction of roads, highways, bridges, irrigation projects, and EPC activities for railways. AIPL has crusher plants at six locations in various districts of Orissa and necessary equipment required for quarrying and crushing granite stone to produce required sizes of rock products for railway track ballast or highway work or any other civil construction work.
Some of the standalone and joint venture projects currently being executed include the Rs 208- crore Cuttak-Paradeep Road construction and widening project, the Rs 261-crore rail infrastructure work for Jindal Steel & Power's Angul project, and construction of roadbed including minor & major bridges, facilities and general electrification works on the Haridaspur-Paradeep new broad-gauge (BG) line.
Strengths
Strong unexecuted order book of Rs 2877.53 crore as on 10 January 2010 and significantly diversified order book comprising 41% railway projects, 41% road projects, 3% irrigation projects, and balance others. Moreover, orders from government and government entities amounted to 87.5% of the order book as on January 10, 2010.
Has successfully executed over 86 projects involving construction of over 200 km of railway tracks, 300 km of roads & highways, 10 minor & major bridges and other general civil engineering works over nine years. Given the strong investment lined up in the country, both in the road sector as well as by the Railways including the dedicated rail freight corridor project, is well positioned to capitalise on it.
Has strong relationship with clients such as Rail Vikas Nigam, RITES, and various departments of the Orissa government. About 73.11 % of its order book as on 10 January 2010 comprised repeat orders.
Weak Point
There are a number of pending litigations against the company and/or the promoters and group companies, including a criminal case.
Has expanded its presence and pursued orders outside Orissa like Chattisgarh, Rajasthan, Jharkhand, Haryana and Tamil Nadu. Still, contracts outside Orissa are limited.
Had negative cash flow from operating activities in the fiscal ended March 2008 (FY 2008) as also nine months ended December 2009.
Valuation
AIPL's revenue grew 99% to Rs 624.38 crore in FY 2009 and net profit was up by 90% to Rs 51.04 crore. The EPS for FY 2009 works out to Rs 33.9 and Rs 34.4 on post-IPO equity at the lower and upper price band, respectively. The P/E works out to 12.1 times and 12.9 times on the lower and upper price band, respectively. This is comparatively higher than players such as PBA Infrastructure and MSK Projects, which quote at P/E of 6.8 times and 10.8 times their FY 2009 earning. However, the offer is at a discount to J Kumar Infrastructure and Tantia Constructions which quotes at 12.3 and 13.7 times of their FY 2009 earning. But the scrip is offered at 9.3 times to 10.0 times the annualised EPS of 44.3 to 45.0 for the nine months ended December 2009 on the lower and upper band.
you may apply for this ipo for decent listing gains & also a fruitful investment for long-term(1year).
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Rs 2877.53-crore unexecuted order book, 41% comprises railway projects, 41% road projects, and 3% irrigation
Promoted by Subhash Agarwal of Bhubaneswar and his three brothers, ARSS Infrastructure Projects (AIPL) provides construction services for railway infrastructure, roads & highways and irrigation projects. Originally incorporated in May 2000 as ARSS Stones, the company changed its name to ARSS Infrastructure Projects in May 2005. Initially, it took up railway contracts mainly in and gradually expanded to zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. Its expertise in railway construction projects extends to earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, and linking of tracks. Over the years, it has diversified its field of activities into other construction segments such as development and construction of roads, highways, bridges, irrigation projects, and EPC activities for railways. AIPL has crusher plants at six locations in various districts of Orissa and necessary equipment required for quarrying and crushing granite stone to produce required sizes of rock products for railway track ballast or highway work or any other civil construction work.
Some of the standalone and joint venture projects currently being executed include the Rs 208- crore Cuttak-Paradeep Road construction and widening project, the Rs 261-crore rail infrastructure work for Jindal Steel & Power's Angul project, and construction of roadbed including minor & major bridges, facilities and general electrification works on the Haridaspur-Paradeep new broad-gauge (BG) line.
Strengths
Strong unexecuted order book of Rs 2877.53 crore as on 10 January 2010 and significantly diversified order book comprising 41% railway projects, 41% road projects, 3% irrigation projects, and balance others. Moreover, orders from government and government entities amounted to 87.5% of the order book as on January 10, 2010.
Has successfully executed over 86 projects involving construction of over 200 km of railway tracks, 300 km of roads & highways, 10 minor & major bridges and other general civil engineering works over nine years. Given the strong investment lined up in the country, both in the road sector as well as by the Railways including the dedicated rail freight corridor project, is well positioned to capitalise on it.
Has strong relationship with clients such as Rail Vikas Nigam, RITES, and various departments of the Orissa government. About 73.11 % of its order book as on 10 January 2010 comprised repeat orders.
Weak Point
There are a number of pending litigations against the company and/or the promoters and group companies, including a criminal case.
Has expanded its presence and pursued orders outside Orissa like Chattisgarh, Rajasthan, Jharkhand, Haryana and Tamil Nadu. Still, contracts outside Orissa are limited.
Had negative cash flow from operating activities in the fiscal ended March 2008 (FY 2008) as also nine months ended December 2009.
Valuation
AIPL's revenue grew 99% to Rs 624.38 crore in FY 2009 and net profit was up by 90% to Rs 51.04 crore. The EPS for FY 2009 works out to Rs 33.9 and Rs 34.4 on post-IPO equity at the lower and upper price band, respectively. The P/E works out to 12.1 times and 12.9 times on the lower and upper price band, respectively. This is comparatively higher than players such as PBA Infrastructure and MSK Projects, which quote at P/E of 6.8 times and 10.8 times their FY 2009 earning. However, the offer is at a discount to J Kumar Infrastructure and Tantia Constructions which quotes at 12.3 and 13.7 times of their FY 2009 earning. But the scrip is offered at 9.3 times to 10.0 times the annualised EPS of 44.3 to 45.0 for the nine months ended December 2009 on the lower and upper band.
you may apply for this ipo for decent listing gains & also a fruitful investment for long-term(1year).
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Sunday, February 07, 2010
Sumeet Industries Ltd
Sumeet Industries Ltd (Code 514211)
- Sumeet Industries Ltd is a diversified conglomerate marching towards establishing its presence in entire Polyester Fabrics Value Chain (Manufacturing Pet Chips and POY / FDY directly from MEG and PTA, Twisting & Texturising, Weaving and Dying) will enable the company to offer premium products at extremely competitive price and boost its profitability margin and market share. There is huge value unlocking seen in near future!!!
While browing through the results of some companies I came across this interesting company called Sumeet industries. Out of the glare and glitz of the broader market this company is expanding massively. And the good thing is that its expansion is likely to be completed by the end of 3rd quarter. Thus the results for 3rd and 4th quarter of FY10 is going to be substantially higher.
Current price : Rs 21.40
Target price : Rs 75
Period of holding : 1 year
Lets see what the company is trying to do.
Sumeet industries is a manufacturer and exporter of polyester and polypropelene yarn and woven fabric.
During the period FY04 to FY09 sales have grown from Rs 34.24 crores to approx Rs 157.79 crores which is approximately a five fold increase or a 36% CAGR. Correspondingly the PAT (Profit after tax) has also grown from Rs 81.56 lacs in FY04 to Rs 3.81 crores in FY09 which is again a CAGR of 36%. However the EPS has not increase in that proportion. That is because the equity base has been expanded. And the reason is simple - for expansion.
It has setup fully imported C.P. PLANT of 100000 Tons per annum capacity and this has started operations from the 1st of July 2009. It is also setting up a 10’ lines of Polyester POY / FDY Spinning Plant with annual installed capacity of 48300 Tons per annum as Expansion Cum Backward Integration Project. This is expected to be operational by the end of 3rd quarter FY10. You must be wondering what do these expansion mean.
a) Using the CP plant pet chips which were earlier bought from the market will be produced within the company which will reduce cost substantially and will also be very much competitive and the company will be in a position to compete in the market in its price strategy with its peer group.
b) The polyester capacity that the company currently has is 12500 Tons per annum. So the expansion means a fourfold increase in capacity.
So atleast a fourfold increase in profits is what we can safely assume only from the capacity expansion. Also as per last financial years accounts raw materials consumed is approx 61% of sales. Thus even if we assume a 10% decrease in cost due to CP plant the net profits are likely to increase quite substantially. Even on a conservative basis its truly a 5 bagger atleast in the next 12 months.
A verbatim transcript of an interview with Shankar Lal Somani (Promoter, Sumeet Industries Ltd) on CNBC-TV18
You have recently got a big order of about Rs 20 crore from Egypt. When is that expected to be executed for polyester chips? When will we see a trickle in terms of your topline?
We were in the expansion project of Rs 150 crore polyester filament yarn. First part we had already completed before six months. Now we are near about completion all our expansion plans and we had already got export order of Rs 20 crore from Egypt, our new product chips.
When will this sum of Rs 20 crore reflect in your books fully?
We had already exported some quantity and will be exported within two months
Currently what is your capacity? What capacity utilization would you be functioning at? Can we expect this topline on a quarterly basis to now clock in an average basis of about Rs 100 crore was that an aberration last quarter?
We are already running at 100% capacity but some expanded capacity will be started by in this month currently. At the end of current month our capacity will be 100%
There has been a huge jump in your revenue figures and your profitability as well this quarter. What do you hope to close the year-end in terms of your revenue?
In turnover base, earlier it was Rs 125 crore. By completing this expansion, our turnover will be Rs 700-800 crore. So the turnover will be five-seven times. Turnover and profit will increase correspondingly.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
- Sumeet Industries Ltd is a diversified conglomerate marching towards establishing its presence in entire Polyester Fabrics Value Chain (Manufacturing Pet Chips and POY / FDY directly from MEG and PTA, Twisting & Texturising, Weaving and Dying) will enable the company to offer premium products at extremely competitive price and boost its profitability margin and market share. There is huge value unlocking seen in near future!!!
While browing through the results of some companies I came across this interesting company called Sumeet industries. Out of the glare and glitz of the broader market this company is expanding massively. And the good thing is that its expansion is likely to be completed by the end of 3rd quarter. Thus the results for 3rd and 4th quarter of FY10 is going to be substantially higher.
Current price : Rs 21.40
Target price : Rs 75
Period of holding : 1 year
Lets see what the company is trying to do.
Sumeet industries is a manufacturer and exporter of polyester and polypropelene yarn and woven fabric.
During the period FY04 to FY09 sales have grown from Rs 34.24 crores to approx Rs 157.79 crores which is approximately a five fold increase or a 36% CAGR. Correspondingly the PAT (Profit after tax) has also grown from Rs 81.56 lacs in FY04 to Rs 3.81 crores in FY09 which is again a CAGR of 36%. However the EPS has not increase in that proportion. That is because the equity base has been expanded. And the reason is simple - for expansion.
It has setup fully imported C.P. PLANT of 100000 Tons per annum capacity and this has started operations from the 1st of July 2009. It is also setting up a 10’ lines of Polyester POY / FDY Spinning Plant with annual installed capacity of 48300 Tons per annum as Expansion Cum Backward Integration Project. This is expected to be operational by the end of 3rd quarter FY10. You must be wondering what do these expansion mean.
a) Using the CP plant pet chips which were earlier bought from the market will be produced within the company which will reduce cost substantially and will also be very much competitive and the company will be in a position to compete in the market in its price strategy with its peer group.
b) The polyester capacity that the company currently has is 12500 Tons per annum. So the expansion means a fourfold increase in capacity.
So atleast a fourfold increase in profits is what we can safely assume only from the capacity expansion. Also as per last financial years accounts raw materials consumed is approx 61% of sales. Thus even if we assume a 10% decrease in cost due to CP plant the net profits are likely to increase quite substantially. Even on a conservative basis its truly a 5 bagger atleast in the next 12 months.
A verbatim transcript of an interview with Shankar Lal Somani (Promoter, Sumeet Industries Ltd) on CNBC-TV18
You have recently got a big order of about Rs 20 crore from Egypt. When is that expected to be executed for polyester chips? When will we see a trickle in terms of your topline?
We were in the expansion project of Rs 150 crore polyester filament yarn. First part we had already completed before six months. Now we are near about completion all our expansion plans and we had already got export order of Rs 20 crore from Egypt, our new product chips.
When will this sum of Rs 20 crore reflect in your books fully?
We had already exported some quantity and will be exported within two months
Currently what is your capacity? What capacity utilization would you be functioning at? Can we expect this topline on a quarterly basis to now clock in an average basis of about Rs 100 crore was that an aberration last quarter?
We are already running at 100% capacity but some expanded capacity will be started by in this month currently. At the end of current month our capacity will be 100%
There has been a huge jump in your revenue figures and your profitability as well this quarter. What do you hope to close the year-end in terms of your revenue?
In turnover base, earlier it was Rs 125 crore. By completing this expansion, our turnover will be Rs 700-800 crore. So the turnover will be five-seven times. Turnover and profit will increase correspondingly.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Saturday, February 06, 2010
BUY MIC Electronics (Investment folio) TGT........
BSE: 532850 NSE: MIC
Rec. Price;44.05
MIC is the only company in India to have the ‘design-to-manufacture’ capability for manufacture of LED video display systems. The company provides customized solutions based on its customer needs, location, display, and purpose.
The fourth generation lighting, LED lighting is making definite in-roads into the general lighting market. It is being reported that electricity for lighting costs US$ 185 bn. annually, world over, and consumes 2300 Twh of power and generates about 2 bn. tones of CO2 annually. Since LEDs are about 10 times more efficient than incandescent lights, and since Governments in many countries are formulating favorable policies of incentives, it is expected that LED lighting will have rapid growth in the next several years. Lighting is said to represent an annual US$ 130 bn. opportunity. This includes lamps, ballasts, luminaries and controls, with lamps accounting for ~30% of the total or US$ 40 bn. Since LED luminaries are all inclusive with lights and controls, the figure can be much higher. The forecast is that LEDs could account for ~4% of the lamp market by the year 2011. OSRAM projects that LEDs could account for one-third of the general lighting market by 2020. Philips is more aggressive in claiming 50% penetration by 2015 and 90% by 2020. It is only natural to expect that the trends in India will be similar – at least qualitatively.
MIC has successfully completed the development of Passenger Information Display System based on the Satellite Imaging for Rail Navigation (SIMRAN) technology. MIC is the only company in the country to have received the approval from Research Design and Standards Organisation (RDSO) of Indian Railways. Supplies of these displays have already commenced. The Indian Railways has announced an ambitious plan to modernize 599 stations and is replacing the existing Single colour Passenger Information displays with True Color LED Passenger Information displays.
MIC being the only Indian company approved by the RDSO, and are looking at a business opportunity of more than Rs. 700 Crore over the next four to five years from this segment
Its products find various applications including:
Sport and live events;
Advertising applications covering electronic billboard/hoardings, news advertisement ticker displays;
Indoor applications including ones at shopping malls, airports, railways, and bus stations; and
Mobile applications.
MIC is the only company to have supplied the full spectrum of coach lights, fitted in a running coach and also the only company to obtain RDSO clearance. This segment alone can provide more than Rs.1000 crore market in the coming years. In respect of the emergency lights, MIC is the major supplier enjoying around 50% share of the Railway market.
The fiscal year 2008-09 with annual revenues of Rs. 297.64 Crore and Profit after Tax at Rs. 63.95 Crore.
During the year 2008-09, MIC had achieved a turnover level (including other income) of Rs.242.57 crore as against Rs.314.01 crore in 2007-08. The company sold 6865 LED display modules and 7141 units of LED Lighting Products in 2008-09.The fall in turnover is due to conscious shift from communications segment to media segment for reasons of profitability. Despite this fall in overall turnover, the company earned a post tax profit of Rs.64.41 crore in 2008-09 as against Rs.65.82 crore in 2007-08. The Profit After Tax (PAT), expressed as a percentage of turnover, has significantly improved from 20.96% in 2007-08 to 26.55% in 2008-09
MIC has four subsidiaries;
1. InfoSTEP Inc, USA and
2. MIC Technologies (Australia) Pty. Ltd. Australia,
3. MIC Electronics Inc. USA, and
4. Maave Electronics Pvt. Ltd. India,
Market Cap 443.31
* EPS (TTM) 5.72
* P/E 7.70
* P/C 7.42
* Book Value 28.80
* Price/Book 1.53
Div(%) 20.00
Div Yield(%) 0.91
Market Lot 1.00
Face Value 2.00
Industry P/E 18.83
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Rec. Price;44.05
MIC is the only company in India to have the ‘design-to-manufacture’ capability for manufacture of LED video display systems. The company provides customized solutions based on its customer needs, location, display, and purpose.
The fourth generation lighting, LED lighting is making definite in-roads into the general lighting market. It is being reported that electricity for lighting costs US$ 185 bn. annually, world over, and consumes 2300 Twh of power and generates about 2 bn. tones of CO2 annually. Since LEDs are about 10 times more efficient than incandescent lights, and since Governments in many countries are formulating favorable policies of incentives, it is expected that LED lighting will have rapid growth in the next several years. Lighting is said to represent an annual US$ 130 bn. opportunity. This includes lamps, ballasts, luminaries and controls, with lamps accounting for ~30% of the total or US$ 40 bn. Since LED luminaries are all inclusive with lights and controls, the figure can be much higher. The forecast is that LEDs could account for ~4% of the lamp market by the year 2011. OSRAM projects that LEDs could account for one-third of the general lighting market by 2020. Philips is more aggressive in claiming 50% penetration by 2015 and 90% by 2020. It is only natural to expect that the trends in India will be similar – at least qualitatively.
MIC has successfully completed the development of Passenger Information Display System based on the Satellite Imaging for Rail Navigation (SIMRAN) technology. MIC is the only company in the country to have received the approval from Research Design and Standards Organisation (RDSO) of Indian Railways. Supplies of these displays have already commenced. The Indian Railways has announced an ambitious plan to modernize 599 stations and is replacing the existing Single colour Passenger Information displays with True Color LED Passenger Information displays.
MIC being the only Indian company approved by the RDSO, and are looking at a business opportunity of more than Rs. 700 Crore over the next four to five years from this segment
Its products find various applications including:
Sport and live events;
Advertising applications covering electronic billboard/hoardings, news advertisement ticker displays;
Indoor applications including ones at shopping malls, airports, railways, and bus stations; and
Mobile applications.
MIC is the only company to have supplied the full spectrum of coach lights, fitted in a running coach and also the only company to obtain RDSO clearance. This segment alone can provide more than Rs.1000 crore market in the coming years. In respect of the emergency lights, MIC is the major supplier enjoying around 50% share of the Railway market.
The fiscal year 2008-09 with annual revenues of Rs. 297.64 Crore and Profit after Tax at Rs. 63.95 Crore.
During the year 2008-09, MIC had achieved a turnover level (including other income) of Rs.242.57 crore as against Rs.314.01 crore in 2007-08. The company sold 6865 LED display modules and 7141 units of LED Lighting Products in 2008-09.The fall in turnover is due to conscious shift from communications segment to media segment for reasons of profitability. Despite this fall in overall turnover, the company earned a post tax profit of Rs.64.41 crore in 2008-09 as against Rs.65.82 crore in 2007-08. The Profit After Tax (PAT), expressed as a percentage of turnover, has significantly improved from 20.96% in 2007-08 to 26.55% in 2008-09
MIC has four subsidiaries;
1. InfoSTEP Inc, USA and
2. MIC Technologies (Australia) Pty. Ltd. Australia,
3. MIC Electronics Inc. USA, and
4. Maave Electronics Pvt. Ltd. India,
Market Cap 443.31
* EPS (TTM) 5.72
* P/E 7.70
* P/C 7.42
* Book Value 28.80
* Price/Book 1.53
Div(%) 20.00
Div Yield(%) 0.91
Market Lot 1.00
Face Value 2.00
Industry P/E 18.83
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Wednesday, February 03, 2010
BUY Parekh Aluminex Limited (Investment folio) TGT........
BSE: 532606 NSE: PARAL
Rec. Price: 149.40
Parekh Aluminex Limited is one of the biggest manufacture in Aluminium Foil Rolls and Aluminium Lids and exporter of Aluminium Foil Containers (AFC), in India. They are the single largest player in the organized sector in India. In the ten years of existence, they have carved a niche for their products in not just India, but the entire region, emerging as the leading name in AFCs in the entire sub-continent.
The total income grew by 41% to Rs. 4,223.26 million compared to Rs. 1,123.20 million for the year ended 31st March, 2008.
The financial year 2008-2009 has been a challenging year for Indian industry. In spite of slowdown in Global and Indian economies, the Company has maintained its growth.
PBDIT and Net Profit after Tax stood at Rs.726.86 million and Rs.381.40 million respectively compared to Rs.484.98 million and Rs.261.19 million for corresponding previous year.
Retained earnings increased to 58%.
With two manufacturing facilities situated strategically close together in the tax haven of the Union Territory of Dadra and Nagar Haveli, India,
Parekh Aluminex Limited has signed of a marketing agreement with one of the largest manufacturers of aluminium in the world to market its products in Germany.
Further, Parekh Aluminex Limited has acquired a Singapore based company by taking over its plant & machinery for making Aluminium Foil Containers, along with its customer base. As a result business of South East Asian Airlines such as Emirates Airlines, Singapore Airlines, Thai Airways amongst others have been added to the company’s kitty.
Market Cap 190.22
* EPS (TTM) 32.98
* P/E 4.46
* P/C 3.29
* Book Value 205.18
* Price/Book 0.72
Div(%) 25.00
Div Yield(%) 1.70
Market Lot 1.00
Face Value 10.00
Industry P/E 15.40
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Rec. Price: 149.40
Parekh Aluminex Limited is one of the biggest manufacture in Aluminium Foil Rolls and Aluminium Lids and exporter of Aluminium Foil Containers (AFC), in India. They are the single largest player in the organized sector in India. In the ten years of existence, they have carved a niche for their products in not just India, but the entire region, emerging as the leading name in AFCs in the entire sub-continent.
The total income grew by 41% to Rs. 4,223.26 million compared to Rs. 1,123.20 million for the year ended 31st March, 2008.
The financial year 2008-2009 has been a challenging year for Indian industry. In spite of slowdown in Global and Indian economies, the Company has maintained its growth.
PBDIT and Net Profit after Tax stood at Rs.726.86 million and Rs.381.40 million respectively compared to Rs.484.98 million and Rs.261.19 million for corresponding previous year.
Retained earnings increased to 58%.
With two manufacturing facilities situated strategically close together in the tax haven of the Union Territory of Dadra and Nagar Haveli, India,
Parekh Aluminex Limited has signed of a marketing agreement with one of the largest manufacturers of aluminium in the world to market its products in Germany.
Further, Parekh Aluminex Limited has acquired a Singapore based company by taking over its plant & machinery for making Aluminium Foil Containers, along with its customer base. As a result business of South East Asian Airlines such as Emirates Airlines, Singapore Airlines, Thai Airways amongst others have been added to the company’s kitty.
Market Cap 190.22
* EPS (TTM) 32.98
* P/E 4.46
* P/C 3.29
* Book Value 205.18
* Price/Book 0.72
Div(%) 25.00
Div Yield(%) 1.70
Market Lot 1.00
Face Value 10.00
Industry P/E 15.40
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Affair between the Stock Market & RBI Monetary Policies
Is it so? So, what do you think, is there actually an affair between the two? Who is the more dominating one? Does a change in one’s mood immediately affect the other? Or are they like the timepass couple, quite indifferent to each other.
Before you think this is like some relationship consulting blog, let me confirm it is purely a financial one. So, let’s get back to our couple- monetary policies & stock market.
Does a slight twist in the monetary policies affects the stocks or is it the other way?
We all probably read in today’s paper that our Finance Minister Mr. Pranab Mukherjee has asked banks to cut interest rates and provide cheap credit so as to boost the economy. This is a way in which cheap credit is made available to the public in hand.
But how does a bank increase credit in our hands? It is here that the RBI comes into picture. The RBI through its monetary policies like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) can increase/decrease the credit available to the banks.
Cash Reserve Ratio is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes.The commercial banks have to keep this as a deposit with the RBI.
Statutory Liquidity Ratio is the amount which a bank has to maintain in the form:
Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities. This Statutory Liquidity Ratio is determined as percentage of total demand and percentage of time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are liable to pay to the customers on anytime demand. This percentage is fixed by the RBI.
The objectives of CRR & SLR are:
1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in Government securities (SLR).
3. To ensure solvency of banks.
The Effect on the Stock Market:
Let’s see what happens when RBI increases CRR and SLR.– If RBI decides to increase the percentages of CRR & SLR the available credit at the disposal of the banks goes down. This in turn has an effect on the credit available to the public because they can borrow less. The increased cost of borrowing also hits the borrower.
But how does it affect us as an investor? Due to lack of available credit, we (as in the public) demand less of goods & services, which ultimately has an impact on the profit of companies. It thus, does affect the prices of the stocks too! So, did you see the indirect effect these policy actions of RBI have on the stock market?
It is difficult to predict to what extent or how the stock market will react but it does bring about a negative/positive buzz in the financial community. That is why it is important to keep a track of what is happening to the economy on the whole. It is like a big cycle.
The exact opposite happens when the RBI decides to cut these percentages.
Conclusion:
As far as today’s news article is concerned, getting more credit available in the hands of the public will sure boost the economy.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Before you think this is like some relationship consulting blog, let me confirm it is purely a financial one. So, let’s get back to our couple- monetary policies & stock market.
Does a slight twist in the monetary policies affects the stocks or is it the other way?
We all probably read in today’s paper that our Finance Minister Mr. Pranab Mukherjee has asked banks to cut interest rates and provide cheap credit so as to boost the economy. This is a way in which cheap credit is made available to the public in hand.
But how does a bank increase credit in our hands? It is here that the RBI comes into picture. The RBI through its monetary policies like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) can increase/decrease the credit available to the banks.
Cash Reserve Ratio is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes.The commercial banks have to keep this as a deposit with the RBI.
Statutory Liquidity Ratio is the amount which a bank has to maintain in the form:
Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities. This Statutory Liquidity Ratio is determined as percentage of total demand and percentage of time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are liable to pay to the customers on anytime demand. This percentage is fixed by the RBI.
The objectives of CRR & SLR are:
1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in Government securities (SLR).
3. To ensure solvency of banks.
The Effect on the Stock Market:
Let’s see what happens when RBI increases CRR and SLR.– If RBI decides to increase the percentages of CRR & SLR the available credit at the disposal of the banks goes down. This in turn has an effect on the credit available to the public because they can borrow less. The increased cost of borrowing also hits the borrower.
But how does it affect us as an investor? Due to lack of available credit, we (as in the public) demand less of goods & services, which ultimately has an impact on the profit of companies. It thus, does affect the prices of the stocks too! So, did you see the indirect effect these policy actions of RBI have on the stock market?
It is difficult to predict to what extent or how the stock market will react but it does bring about a negative/positive buzz in the financial community. That is why it is important to keep a track of what is happening to the economy on the whole. It is like a big cycle.
The exact opposite happens when the RBI decides to cut these percentages.
Conclusion:
As far as today’s news article is concerned, getting more credit available in the hands of the public will sure boost the economy.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Tuesday, February 02, 2010
Are you ready for 4200 Nifty?
7 Reasons Why Nifty would go to 4200 and Sensex 13800
Bulls exhausted; false breakouts globally signal an end to this rally; we hence expect a
large correction, which is at least a 50% retracement of the entire run.
Multiple trend lines (Fan line) breaks across the world.
5-wave impulsive moves complete; Nifty and Brazil Bovespa remain classic examples,
FTSE, DAX, CAC also look complete.
‘Bearish Outside Engulfing’ month for BSE Sensex (CMP-16357, TGT-12800), Metals
(CMP-15962, TGT-10500), Autos (CMP-6953, TGT-5000) and Cap Goods (CMP-
13125, TGT-10000).
Ending Diagonals/Bearish Wedges visible on many indices.
Momentum sell offs after negative price/momentum divergence.
Dollar to further spook the markets, DXY bullish reversals in place; target 83-84, INR
heading back to 49-50.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Bulls exhausted; false breakouts globally signal an end to this rally; we hence expect a
large correction, which is at least a 50% retracement of the entire run.
Multiple trend lines (Fan line) breaks across the world.
5-wave impulsive moves complete; Nifty and Brazil Bovespa remain classic examples,
FTSE, DAX, CAC also look complete.
‘Bearish Outside Engulfing’ month for BSE Sensex (CMP-16357, TGT-12800), Metals
(CMP-15962, TGT-10500), Autos (CMP-6953, TGT-5000) and Cap Goods (CMP-
13125, TGT-10000).
Ending Diagonals/Bearish Wedges visible on many indices.
Momentum sell offs after negative price/momentum divergence.
Dollar to further spook the markets, DXY bullish reversals in place; target 83-84, INR
heading back to 49-50.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
PAE Ltd. - Into Solar energy space. You may not be aware of it!!!
BSE: 517230
We all have to take cognizance of the fact that ever increasing global energy consumption equals environmental disaster unless we move to a de-carbonized energy system. While IPCC, Intergovernmental Panel on Climate Change has recently been lambasted for creating too much hype around melting of glaciers by 2035 and that too without doing a detailed study on the same (they picked up some content present on web), one can still cannot sit back and say that we have enough fossil fuel for our lifetime, and global warming isn't going to effect us.
Countries like China, are already putting in great deal of money on securing their energy needs from both fossil fuels and from alternative sources of energy. In India, many smaller companies at their own level are working on various alternative sources of energy. Solar and Wind are the two forms of energy, most of them are working on. Solar energy has had its share of criticism on various grounds, most important of them being cost and availability of raw material, which in most of the cases is silicon. So, keeping the above factors in mind, I thought, why not discuss a company that is into potential alternative source of energy, and may not even have to face constraints with respect to availability of raw material. The company I am talking about is PAE Ltd. @41 I am sure most of you may not be aware of the company
operations. Well PAE Ltd. is not into Solar Panels manufacturing on its own. On standalone basis, it is in the business of marketing and distribution of Lead Acid Storage Batteries to provide power storage in power back up systems. In addition to batteries, PAE also buys and/or builds power back-up systems from manufacturers and sells to OE, dealers and end users. It also provides total power solutions to end customers by doing installations, commissioning and service of large power back-up systems.
So, basically it is into power related business, but most of it is in the form of distribution and marketing. This is also evident from its low margin results. On a net sale of Rs 250 crore for FY 2008-09, it could only make a net profit of Rs 5.36 crore. Now, the most important thing is that the company has forayed into Solar Panels manufacturing, but not on its own, rather by taking a controlling interest (51%) in Shurjo Energy Private Limited, which was in need of funds to expand its capacity to 10MW from 2MW. In terms of the agreement, the company has totally invested Rs 5.06 crore in Shurjo Energy for acquiring 51% stake in the company.
Now, going into the details of Shurjo Energy Pvt. Ltd., it is into manufacturing solar panels using CIGS Coppe Indium Gallium diSelenide (CIGS), thin film technology which has "off grid" and "on grid" applications. The company has its manufacturing facility in Kalyani, West Bengal. The difference with this company is in its use of CIGS technology that does not use silicon as the active photovoltaic semiconductor and therefore does not suffer from any raw material supply problems. Shurjo also recently passed IEC 61646 & IEC 61730 tests (The certifications required for solar modules used in solar power plants in most markets worldwide) for its CIGS solar modules, opening up the Grid-connect market for its modules.
Studies show that CIGS material actually yields more energy per kW installed, compared to traditional crystalline products, due to its better performance in low light conditions (Source : web).
As mentioned earlier the installed capacity stood at just 2MW, which will be ramped up to 10MW. One cannot expect major contribution to revenue and profitability even if the capacity is ramped up to 10MW, this is because the company has only 51% stake and therefore accounting for minority interest shall only bring half the profit. However, for all those interested in investing in companies foraying into green technology, should definitely keep a tab on the developments and there impact on the performance of the company.
Market Cap 38.79
* EPS (TTM) 5.40
* P/E 7.55
* P/C 6.41
* Book Value 35.41
* Price/Book 1.15
Div(%) 15.00
Div Yield(%) 3.68
Market Lot 1.00
Face Value 10.00
Industry P/E 47.19
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
We all have to take cognizance of the fact that ever increasing global energy consumption equals environmental disaster unless we move to a de-carbonized energy system. While IPCC, Intergovernmental Panel on Climate Change has recently been lambasted for creating too much hype around melting of glaciers by 2035 and that too without doing a detailed study on the same (they picked up some content present on web), one can still cannot sit back and say that we have enough fossil fuel for our lifetime, and global warming isn't going to effect us.
Countries like China, are already putting in great deal of money on securing their energy needs from both fossil fuels and from alternative sources of energy. In India, many smaller companies at their own level are working on various alternative sources of energy. Solar and Wind are the two forms of energy, most of them are working on. Solar energy has had its share of criticism on various grounds, most important of them being cost and availability of raw material, which in most of the cases is silicon. So, keeping the above factors in mind, I thought, why not discuss a company that is into potential alternative source of energy, and may not even have to face constraints with respect to availability of raw material. The company I am talking about is PAE Ltd. @41 I am sure most of you may not be aware of the company
operations. Well PAE Ltd. is not into Solar Panels manufacturing on its own. On standalone basis, it is in the business of marketing and distribution of Lead Acid Storage Batteries to provide power storage in power back up systems. In addition to batteries, PAE also buys and/or builds power back-up systems from manufacturers and sells to OE, dealers and end users. It also provides total power solutions to end customers by doing installations, commissioning and service of large power back-up systems.
So, basically it is into power related business, but most of it is in the form of distribution and marketing. This is also evident from its low margin results. On a net sale of Rs 250 crore for FY 2008-09, it could only make a net profit of Rs 5.36 crore. Now, the most important thing is that the company has forayed into Solar Panels manufacturing, but not on its own, rather by taking a controlling interest (51%) in Shurjo Energy Private Limited, which was in need of funds to expand its capacity to 10MW from 2MW. In terms of the agreement, the company has totally invested Rs 5.06 crore in Shurjo Energy for acquiring 51% stake in the company.
Now, going into the details of Shurjo Energy Pvt. Ltd., it is into manufacturing solar panels using CIGS Coppe Indium Gallium diSelenide (CIGS), thin film technology which has "off grid" and "on grid" applications. The company has its manufacturing facility in Kalyani, West Bengal. The difference with this company is in its use of CIGS technology that does not use silicon as the active photovoltaic semiconductor and therefore does not suffer from any raw material supply problems. Shurjo also recently passed IEC 61646 & IEC 61730 tests (The certifications required for solar modules used in solar power plants in most markets worldwide) for its CIGS solar modules, opening up the Grid-connect market for its modules.
Studies show that CIGS material actually yields more energy per kW installed, compared to traditional crystalline products, due to its better performance in low light conditions (Source : web).
As mentioned earlier the installed capacity stood at just 2MW, which will be ramped up to 10MW. One cannot expect major contribution to revenue and profitability even if the capacity is ramped up to 10MW, this is because the company has only 51% stake and therefore accounting for minority interest shall only bring half the profit. However, for all those interested in investing in companies foraying into green technology, should definitely keep a tab on the developments and there impact on the performance of the company.
Market Cap 38.79
* EPS (TTM) 5.40
* P/E 7.55
* P/C 6.41
* Book Value 35.41
* Price/Book 1.15
Div(%) 15.00
Div Yield(%) 3.68
Market Lot 1.00
Face Value 10.00
Industry P/E 47.19
* As per latest stand alone adjusted profit after extra-ordinary items.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
Monday, February 01, 2010
Buy First Leasing Company of India
INVESTMENT IDEA@ 57.45
BSE Code: 500145 & NSE Code: Firstlease
Market Cap: 120.22
EPS (TTM): 15.01
Face Value: 10.00
P/E : 3.51
P/C : 2.22
Book Value : 92.83
Price/Book : 0.57
Div(%) : 18.00
Div Yield(%) : 3.41
Industry P/E : 18.84
Buy for Short Term Target Rs. 75/- Medium Term Target Rs. 100/- Long Term Target Rs. 150/-.
Operator call and not mine.Am out of short term stuff.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
BSE Code: 500145 & NSE Code: Firstlease
Market Cap: 120.22
EPS (TTM): 15.01
Face Value: 10.00
P/E : 3.51
P/C : 2.22
Book Value : 92.83
Price/Book : 0.57
Div(%) : 18.00
Div Yield(%) : 3.41
Industry P/E : 18.84
Buy for Short Term Target Rs. 75/- Medium Term Target Rs. 100/- Long Term Target Rs. 150/-.
Operator call and not mine.Am out of short term stuff.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken
E-MAIL,sharekhan.guide@gmail.com
contact;09013177977,AMIT
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