US Federal Reserve has cut a key interest rate by a quarter-point to 2%. After a two-day meeting, Fed announced its decision to cut rates down to 2%, its lowest level since late 2004.
The Federal Reserve lowered a key US interest rate by a modest quarter percentage point on Wednesday in what may be the last of a series of cuts aimed at aiding an economy hit hard by a housing slump and credit market turmoil.
The Fed's action takes the bellwether federal funds rate to 2 percent, the lowest since December 2004. It was the seventh reduction in a campaign that has brought rates down by 3.25 percentage points since mid-September.
President George W Bush on Tuesday said the U.S. economy faced a "tough time," a point underscored on Wednesday by a report that showed US gross domestic product expanded at a slim 0.6 percent annual rate in the first quarter.
While the growth rate was a bit stronger than economists had expected, it reflected a buildup in inventories that may weigh on the economy in coming months.
Other details in the report were decidedly weak.
Consumer spending, which accounts for two-thirds of US output, grew at the slowest pace since 2001, business investment fell and homebuilding continued to nosedive, recording the biggest drop in 26 years.
Fed Chairman Ben Bernanke told Congress on April 2 that "recession is possible," adding that the Fed believed there might be a "slight contraction" in the economy in the first six months of the year.
At the same time, with gasoline prices heading toward $4 dollars a gallon and strong global demand pushing up food prices, some Fed officials have worried that a desire to bolster the economy could divert the central bank's attention from inflation pressures.
In addition to rate cuts, the Fed has taken a number of emergency steps to ease credit strains that have threatened to make the economy's ills worse, pumping billions of dollars into markets to keep them from choking on mortgage-related bets.
At their meeting on Wednesday, Fed officials discussed a new measure -- paying interest on commercial bank reserves held at the central bank -- that could improve their ability to provide liquid funds to the market.
The Fed has also mulled whether expanding the size of its term auction facility cash auctions for banks and extending the duration of those loans beyond 28 days could help ease still-tight credit conditions.
Wednesday, April 30, 2008
Tuesday, April 29, 2008
Sesa Goa Bonus & Stock Split on cards
Sesa Goa spurted 3.97% to Rs 3854 at 10:02 IST on BSE after the firm announced splitting each share into ten and thereafter giving one bonus share for each share held.
The stock hit a high of Rs 3925 and a low of Rs 3776.10 so far during the day. The stock had a 52-week high of Rs 3969 on
The mid-cap iron ore exporter has an equity capital of Rs 39.36 crore. Face value per share is Rs 10.
The current price of Rs 3854 discounts its Q3 December 2007 annualised EPS of Rs 500.72, by a PE multiple of 7.69.
Sesa Goa reported 216.37% surge in net profit to Rs 798.30 crore on 116.21% increase in total income to Rs 1669.97 crore in Q4 March 2008 over Q4 March 2007.
Sesa Goa, an iron ore mining company of the Vedanta group, has been involved in iron ore mining, beneficiation and exports besides. It is also into the manufacture of pig iron and metallurgical coke.
Fresh tariff war hits telecom stocks
Top two telecom stocks were down by 0.61% to 1.28% after these firms reduced long distance telephone calls, aiming to increase their market share in rural areas.
Shares of
The fresh tariff war by Airtel and RCom has triggered expectations of similar announcements by the competitors such Idea Cellular and the unlisted Vodafone.
According to reports, the 700-million strong rural market in
Celestial Labs posted 222.8% surge in net profit in Q4
Celestial Labs soared 7.66% to Rs 44.25 at 10:53 IST on BSE after the company posted 222.8% surge in net profit in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 45.20 and a low of Rs 42.35 so far during the day. The stock had a 52-week high of Rs 78.25 on
The small-cap bioinformatics services provider has an equity capital of Rs 11.19 crore. Face value per share is Rs 10.
The current price of Rs 44.25 discounts its Q4 March 2008 annualised EPS of Rs 9.12, by a PE multiple of 4.85.
The net profit of Celestial Labs surged 222.8% to Rs 2.55 crore on 56.3% rise in sales to Rs 4.94 crore in Q4 March 2008 over Q4 March 2007.
Hyderabad-based Celestial Labs operates in IT/bioinformatics, biotechnology and consultancy work.
Tata Steel plans to acquire mining assets
Tata Steel rose 3.02% to Rs 801.15 at
The stock hit a high of Rs 808.50 and a low of Rs 775 so far during the day. The stock had a 52-week high of Rs 969.30 on
World’s sixth largest steel maker has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 801.15 discounts its Q3 December 2007 annualised EPS of Rs 70.17, by a PE multiple of 11.41.
According to reports, Tata Steel and MMTC are setting up special purpose vehicle (SPV) where Tata Steel will hold 74% stake while the remaining will be held by the MMTC. The SPV will acquire mining assets abroad. The SPV will also undertake gold and diamond mining operations abroad. The boards of both the companies have already approved the proposed joint venture, the reports added.
Tata Steel’s net profit rose 0.5% to Rs 1068.58 crore on 11.3% growth in net sales to Rs 4973.92 crore in Q3 December 2007 over Q3 December 2006.
Tata Steel is engaged in manufacture and distribution of steel, welded steel tubes, cold rolled strips, bearings and other related products and services.
Shiv Vani Oil & Gas Exploration Good quarterly numbers
Shiv Vani Oil & Gas Exploration Services rose 2.77% to Rs 584 at 11:46 IST on BSE after the firm reported 109.2% rise in net profit in the quarter ended March 2008 over the quarter ended March 2007.
The stock hit a high of Rs 601 and a low of Rs 573 so far during the day. The stock had a 52-week high of Rs 739.95 on
The mid-cap oil exploration services provider has an equity capital of Rs 43.91 crore. Face value per share is Rs 10.
The current price of Rs 584 discounts its March 2008 quarter annualised EPS of Rs 17.52, by a PE multiple of 33.33.
The net profit of Shiv Vani Oil & Gas Exploration Services rose 109.2% to Rs 19.23 crore on 118.4% rise in sales to Rs 137.19 crore in March 2008 quarter over March 2007 quarter. The company has changed its year ending to January-March, from September-December earlier.
Shiv Vani Oil is the largest seismic data operator in
Finolex Cables Good Q4 result
Finolex Cables gained 0.88% to Rs 69 at 11:45 IST on BSE after posting 13.1% rise in net profit to Rs 9.99 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 71.95 and a low of Rs 68.25 so far during the day. The stock had a 52-week high of Rs 133.50 on
The company’s current equity is Rs 30.59 crore. Face value per share is Rs 2.
The current price of Rs 69 discounts its Q4 March 2008 annualised EPS of Rs 2.61, by a PE multiple of 26.44.
Finolex Cables’ net sales rose 44.8% to Rs 423.21 crore in Q4 March 2008 over Q4 March 2007.
The company manufactures and distributes a wide range of communication and electrical cables.
Phillips Carbon Black strong Q4 results
Phillips Carbon Black surged 8.46% to Rs 207.70 at 12:54 IST on BSE after the company posted 279.50% spurt in net profit to Rs 89.30 crore in FY March 2008 over FY March 2007.
The stock hit a high of Rs 229.80 and a low of Rs 198 so far during the day. The stock had a 52-week high of Rs 297 on
The stock witnessed solid rally ahead of its results. From recent low of Rs 156.15 on
The company’s current equity is Rs 25.25 crore. Face value per share is Rs 10. Promoters hold 50.17% stale in the company (as at end March 2008).
The current price of Rs 207.70 discounts its Q4 March 2008 annualised EPS of Rs 22.04, by a PE multiple of 9.42.
Phillips Carbon’s net sales rose 3.50% to Rs 1033.18 crore in FY March 2008 over FY March 2007. The company reported 37.20% rise in net profit to Rs 19.08 crore on 7.60% rise in net sales to Rs 274.11 crore in Q4 March 2008 over Q4 March 2007.
The company produces carbon black, which is input for manufacturing tyres.
Bliss GVS Pharma robust earnings
Bliss GVS Pharma gained 1.26% to Rs 48.25 at 12:17 IST on BSE on reporting 477.28% surge in net profit to Rs 8.36 crore on 81.78% growth in total income to Rs 37.18 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 49 and a low of Rs 44.50 so far during the day. The stock had a 52-week high of Rs 78.59 on
The company’s current equity is Rs 6.45 crore. Face value per share is Rs 1.
Bliss GVS Pharma’s net profit rose 730.68% to Rs 33.25 crore on 59.28% growth in total income to Rs 103.55 crore in FY 2008 over FY 2007.
The company operates in two segments, healthcare products and pharma products.
Wearology spurts on nod for sale of unit
Wearology spurted 5% to Rs 136.90 at 13:08 IST on BSE after its board approved sale of its manufacturing unit at Rabale in Navi Mumbai including land, building and plant & machinery for an undisclosed amount.
The stock hit a high of Rs 136.90 and a low of Rs 129.10 so far during the day. The stock had a 52-week high of Rs 319.80 on
The small-cap garments exporter has an equity capital of Rs 5.20 crore. Face value per share is Rs 10.
The current price of Rs 136.90 discounts its Q4 March 2008 annualised EPS of Rs 179.35, by a PE multiple of 0.76.
The net profit of Wearology rose 18.2% to Rs 23.36 crore on 26.7% decline in sales to Rs 4.11 crore in Q4 March 2008 over Q4 March 2007.
Wearology is a recognised export house exporting fashion garments, bed linen fabric and industrial garments to the Middle-East,
Dwarikesh Sugar good Q2 figures
Dwarikesh Sugar Industries flared up 3.71% to Rs 74.15 at 13:57 IST on BSE after the firm reported net profit of Rs 6.38 crore in Q2 March 2008 as compared to net loss of Rs 0.29 crore in Q2 March 2007.
The stock hit a high of Rs 75 and a low of Rs 72.20 so far during the day. The stock had a 52-week high of Rs 129 on
The small-cap sugar manufaturer has an equity capital of Rs 16.31 crore. Face value per share is Rs 10.
The current price of Rs 74.15 discounts its Q2 March 2008 annualised EPS of Rs 15.65, by a PE multiple of 4.73.
Dwarikesh Sugar Industries reported 35.8% rise in sales to Rs 86.65 crore in Q2 March 2008 over Q2 March 2007.
Dwarikesh Sugar manufactures and sells sugar in bulk to wholesalers and agents
Indiabulls Securities a good dividend yield Stock
Indiabulls Securities advanced 5.72% to Rs 131.50 at 14:26 IST on BSE after the company’s board recommended a liberal dividend of Rs 7.50 per equity share for the year ended March 2008.
The dividend yield works out to 5.70%.
The stock hit a high of Rs 132.50 and a low of Rs 124.15 so far during the day. The stock had a 52-week high of Rs 300 on
The Indiabulls Securities scrip was listed at Rs 300 on BSE on
The stock had touched a 52-week low of Rs 85.10 on
The mid-cap company has an equity capital of Rs 50.69 crore. Face value per share is Rs 2.
The current price of Rs 131.50 discounts its Q4 March 2008 annualised EPS of Rs 8.73, by a PE multiple of 15.06.
Indiabulls Securities is engaged in securities brokerage. The company provides wide range of services to its clients in securities brokerage including equities, commodities, wholesale debt, futures and options; depositary services; research services; insurance, IPO and mutual fund distribution.
Indiabulls Securities reported 45.70% rise in net profit to Rs 55.29 crore on 47.80% increase in total income to Rs 163.90 crore in Q4 March 2008 over Q4 March 2007.
The company posted 81% rise in net profit to Rs 248.67 crore on 40.80% increase in total income to Rs 628.67 crore in FY March 2008 over FY March 2007.
Grasim Industries Strong Q4 results
Grasim Industries fell 1.13% to Rs 2605 at 14:34 IST on BSE even as the firm reported 40.64% rise in net profit in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 2734 and a low of Rs 2590.05 so far during the day. The stock had a 52-week high of Rs 4074 on
The large-cap diversified firm has an equity capital of Rs 91.67 crore. Face value per share is Rs 10.
The current price of Rs 2605 discounts its Q3 December 2007 annualised EPS of Rs 241.59, by a PE multiple of 10.78.
The net profit of Grasim Industries rose 40.64% to Rs 667.37 crore on 12.10% rise in total income to Rs 2861.09 crore in Q4 March 2008 over Q4 March 2007.
The company is engaged in manufacturing and marketing cement, fibre & pulp, sponge iron, textile, chemicals and other.
CEAT robust Q4 numbers
CEAT rose 2.84% to Rs 137.55 at 15:21 IST on BSE after the firm reported 228.62% rise in net profit in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 142 and a low of Rs 132.50 so far during the day. The stock had a 52-week high of Rs 244 on
The small-cap automobile tyres maker has an equity capital of Rs 34.24 crore. Face value per share is Rs 10.
The current price of Rs 137.55 discounts its Q3 December 2007 annualised EPS of Rs 22.45, by a PE multiple of 6.12.
The net profit of CEAT rose 228.62% to Rs 76.93 crore on 14.80% rise in sales to Rs 646.23 crore in Q4 March 2008 over Q4 March 2007.
CEAT, previously Ceat Tyres, the flagship of the RPG group, manufactures steel-belted radials for passenger cars. The range of tyres manufactured is marketed under the Ceat, Samraat and Secura brand names.
Reliance Capital good FY 2008 numbers
Reliance Capital advanced 3.50% to Rs 1506.10 at 15:20 IST on BSE after the company reported 58.70% rise in net profit to Rs 1025.45 crore in the year ended March 2008 over the year ended March 2007.
The stock hit a high of Rs 1520 and a low of Rs 1452 so far during the day. The stock had a 52-week high of Rs 2,925 on
The company’s current equity is Rs 245.63 crore. Face value per share is Rs 10.
The current price of Rs 1506.10 discounts its Q4 March 2008 annualized EPS of Rs 62.80, by a PE multiple of 23.98.
Reliance Capital's total income rose 135.30% to Rs 2079.79 crore in the year ended March 2008 (FY 2008) over the year ended March 2007. The company posted 23.90% rise in net profit to Rs 386.49 crore on 96.20% jump in total income to Rs 799.29 crore in Q4 March 2008 over Q4 March 2007.
The company posted 23.90% rise in net profit to Rs 386.49 crore on 96.20% jump in total income to Rs 799.29 crore in Q3 March 2008 over Q3 March 2007.
Reliance Capital’s board of directors recommended a dividend of Rs 5.50 per share on equity share for the financial year ended March 2008.
Reliance Capital provides corporate advisory services like project finance, management of issues for raising capital and managing exposure to currencies and interest rates. It is also involved in custodian and depository activities, asset management, insurance, and real estate development.
BUY` on HEG (CMP: Rs 302) with a 12 months target price of Rs 444.
Networth recommended a `BUY` on HEG (CMP: Rs 302) with a 12 months target price of Rs 444. HEG, a premier company of LNJ Bhilwara Group, is the fifth largest Graphite Electrodes manufacturer in the world with an installed capacity of 60,000 MTPA. HEG is also the largest exporter of Graphite Electrodes in
Gold slides to 3-month low on dollar rise, oil losses
NEW YORK/LONDON: Gold ended sharply lower after hitting a three-month bottom on Tuesday on the back of a firmer dollar, declining oil prices and weak sentiment ahead of an interest rate decision by the Federal Reserve. Gold often takes its cue from movements in the dollar because of its role as an alternative investment to currencies, stocks and bonds.
The outcome of the Fed meeting would set the tone for currencies and precious metals, dealers said. "Strength in the US dollar is clearly a major factor, plus we have seen a quite bit of money coming out of the StreetTRACKS exchange-traded fund.
Both these things are weighing on the market," said Dan Smith, analyst at Standard Chartered Bank. "There is some indication of consumers starting to come back in at these lower prices, but we are waiting to see how powerful that would be. I am looking for prices to recover somewhat from where we are now," he said.
Gold held in StreetTRACKS Gold Shares, the world's largest gold-backed ETF, fell more than 50 tonnes in less than a week to about 591 tonnes as of Monday. Spot gold fell as low as $868.80 an ounce, the lowest price level since Jan 22. It was at $873.55/874.75 at
Jonathan Jossen, independent floor trader in
The dollar hit its highest level against the euro in nearly four weeks, on track for its largest monthly gain in nearly a year, amid expectations the Federal Reserve will signal the end of its easing campaign. The Fed will begin its two-day meeting later on Tuesday and analysts expect the policy-setting body to cut key borrowing costs by a quarter percentage point to 2.0 percent and indicate that its rate-cutting campaign is finished for now.
A firmer dollar makes gold costlier for holders of other currencies and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation. Oil fell more than $3 a barrel, retreating further from a record high hit on Monday. US crude futures ended down $3.12 at $115.36 a barrel.
FED DECISION AWAITED
George Gero, vice president with RBC Capital Markets Global Futures in
Gero also cited a lower open interest in the US gold futures market, larger gold delivery notices and chart-based selling below $880 an ounce for bullion's drop. Spot gold has been trading well below its lifetime high of $1,030.80 an ounce hit on March 17, with attempts to revisit the level resulted in heavy profit-taking by investors.
US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange settled $18.70, or 2.1 percent, at $876.80 an ounce on Tuesday.
In industry news,
Silver fell to $16.48/16.57 from $16.96/17.02 an ounce late in
Thursday, April 24, 2008
Holiday for me for next 4-5 days
Hi Friends ,
My son is appearing for AIEEE exam on 27th April'08, At CHENNAI. I have to Accompany him. Iam Taking Holidays till 30th April-08.
Kindly Spare with me.
Yours
G.V
My son is appearing for AIEEE exam on 27th April'08, At CHENNAI. I have to Accompany him. Iam Taking Holidays till 30th April-08.
Kindly Spare with me.
Yours
G.V
BNK CAPITAL MARKET @40/- --Multi Bagger!!!
In our Forum Mr.Amit Given an excellent research on BNK CAPITAL MARKET, recommended to buy @ Rs:40/- it becomes a Multi Bagger in Short time.
Thank You Amit Thanks alot for your research.
Take care of your Investments Guys. No one Gives you Guarantee.
Buy BNK capital market ltd it holds 3005419 shares of CESC ltd
( thirty lakh five thousand four hundred and nineteen shares) worth 140 crore the current
market cap of bnk capital market is just 20 crore and the value of holding/investment is 140
crore it means bnk is available just for free........ one should not miss this chance bcoz there are
only 24 lakh share in the market so definitely operator's are going to ride this horse for big
target. rest is your call i see a huge up side in this stock.
you can see below
the share holding pattern of cesc ltd and at no 3 you will see the name
of bnk capital market ltd and it's holding . i am always with proof.....no bakwas
| CESC Ltd (copy from bseindia.com) | |||
| | |||
| Scrip Code 500084 | Quarter March 2008 | ||
| | |||
| Statement showing Shareholding of persons belonging to the category | |||
| | |||
| Sr. No. | Name of the shareholder | No. of shares | Shares as a % of total number of shares |
| 1 | Life Insurance Corporation of | 4798408 | 3.84 |
| 2 | Goldman Sachs Investments Mauritius Ltd | 5072422 | 4.06 |
| 3 | BNK Capital Markets Ltd | 3005917 | 2.41 |
| 4 | Matthews | 2006117 | 1.61 |
| 5 | CLSA ( | 2034484 | 1.63 |
| 6 | Citigroup Global Markets Mauritius Pvt Ltd | 1783404 | 1.43 |
| 7 | FID Funds Mauritius Ltd | 2406632 | 1.93 |
| 8 | Fidelity Investment Funds Global Special Situations Fund | 3494668 | 2.8 |
| | Total | 24602052 | 19.69 |
Thank You Amit Thanks alot for your research.
Take care of your Investments Guys. No one Gives you Guarantee.
Buy Visa Steel; target Rs 85 - pinc research
PINC puts buy on Visa Steel; target Rs 85
PINC Research has reiterated ‘buy’ on Visa Steel for a one year target price of Rs 85. The company currently manufactures pig iron, coke and ferro chrome with capacities of 225k, 400k and 50k respectively.
Visa Steel has production facilities in Kalinganagar and Golagaon in Orissa. Its capacities include 225k tpa of pig iron, 400k tpa of coke and a 50k tpa ferro chrome unit. Currently, MBF is under a maintainence shutdown for relining and should be operational by Jun’08.
The company is setting up a 500K tpa fully integrated special & stainless steel plant at an outlay of Rs 1,150 crore. This will be funded through debt of Rs 750 crore, IPO proceeds of Rs 200 crore and internal accruals.
The above capital expenditure also envisages setting up a 300k tpa sponge iron facility and 75 MW (3*25) waste heat recovery power plants. The sponge iron and 50MW facility is expected to be commissioned in April-June 2008-09, while the last 25MW will be commissioned in 2009-10.
Visa Steel has been allotted a coal block in Patrapara (Talcher, Orissa) and is in process of being allotted a captive iron ore mine. While its chrome ore requirement would be met by Ghotringa Minerals (89% subsidiary), its coking coal needs will be met through long term contracts with Millennium
At the market price of Rs 48, the stock trades at a P/E of 2.8x and EV/EBITDA of 3x 2009-10 estimated earnings of Rs 16.9. PINC believes these valuations do not factor in a buoyant pricing environment for ferro alloys and coke. Moreover, the upcoming captive linkage for raw materials will improve operational efficiencies. Also, the special and stainless steel plant will provide a new dimension to the business model.
Gold, silver prices tumble on lower global advices
Both the precious metals, gold and silver, tumbled on the bullion market on lack of demand at higher levels coupled with stockists' offerings due to fall in overseas markets.
Standard gold (99.5 purity) fell by Rs 155 per 10 grams to Rs 11,730 from Rs 11,885 previously.
Pure gold (99.9 purity) also finished lower by a similar margin to Rs 11,785 from Rs 11,940.
Silver ready (.999 fineness) slipped by Rs 520 per kilo to Rs 23,175 from Rs 23,695.
Precious metals complex suffered significant losses in
The June gold fell by USD 16.20 to USD 909 an ounce on the Comex division of the New York Mercantile Exchange.
Nymex June crude oil was down 17 cents at USD 117.90 a barrel.
Gold investors have also been disappointed by a large physical offtake out of the world's largest gold exchange traded fund, a dealer added.
Comex July silver declined by 54.8 cents to settle at USD 17.276 an ounce.
Gold prices in
Nicholas Piramal Healthy Q4 numbers
Nicholas Piramal India surged 3.29% to Rs 341 at 15:08 IST on BSE after reporting 317.16% rise in net profit to Rs 112.3 crore on 33.51% growth in net sales to Rs 516.98 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 347 and a low of Rs 335 so far during the day. The stock had a 52-week high of Rs 383 on
The company’s current equity is Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 341 discounts its Q3 December 2007 EPS of Rs 14.13, by a PE multiple of 24.13.
Nicholas Piramal
On
In January 2008, the company acquired pharmaceuticals business of Healthline,
Nicholas Piramal
Bajaj Steel's Strong Q4 result
Bajaj Steel Industries rose 2.94% to Rs 162.95 at 13:37 IST on BSE after posting 1229.14% surge in net profit to Rs 3.15 crore on 14.16% fall in total income to Rs 34.75 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 165 and a low of Rs 153.15 so far during the day. The stock had a 52-week high of Rs 234.25 on
The company’s current equity is Rs 2.20 crore. Face value per share is Rs 10.
The current price of Rs 162.95 discounts its Q3 December 2007 EPS of Rs 38.36, by a PE multiple of 4.25.
Bajaj Steel Industries’ net profit rose 177.24% to Rs 7.06 crore on 7.42% growth in net sales to Rs 189.48 crore in FY 2008 over FY 2007.
The company is engaged in manufacturing machines. It manufactures machines for preparing textile fabrics, cotton ginning machines and plastic articles for packing of goods.
Polaris Software defers buyback
Polaris Software Lab declined 5.89% to Rs 101.55 at
The stock hit a high of Rs 104.80 and a low of Rs 98.50 so far during the day. The stock had a 52-week high of Rs 200.70 on
The company’s current equity is Rs 49.33 crore. Face value per share is Rs 5.
The current price of Rs 101.55 discounts its Q4 March 2008 EPS of Rs 5.49, by a PE multiple of 18.50.
The Polaris Software board considered a buy-back proposal where members of the board drew attention to the real estate investments made by the company and suggested that the best option to maximize shareholder value from these investment should also be explored. Further, the board of Polaris Software Lab has appointed a committee to give recommendations to take a decision in this regard at its next meeting.
In March 2008, Polaris Software Lab’s wholly owned subsidiary Polaris Retail Infotech launched Smart Store, a retail software product for small retail businesses.
In February 2008, the company entered into a strategic partnership with City Networks, to provide ongoing product development and support services to City Networks.
Polaris Software Lab’s net profit rose 0.59% to Rs 13.54 crore on 0.03% growth in net sales to Rs 239.37 crore in Q4 March 2008 over Q3 December 2007.
Polaris Software Lab delivers customized software solutions and products in the domain of banking, financial services and insurance (BFSI).
Harita Seating Systems strong Q4 numbers
Harita Seating Systems was locked at upper limit of 5% at Rs 79.30 at 10:38 IST on BSE after the company reported 72% rise in net profit in Q4 March 2008 over Q4 March 2007.
The stock had a 52-week high of Rs 150.75 on
The small-cap automobile seats maker current equity is Rs 7.77 crore. Face value per share is Rs 10.
The current price of Rs 79.30 discounts its Q4 December 2007 annualised EPS of Rs 14.52, by a PE multiple of 5.46.
The net profit of Harita Seating Systems rose 72% to Rs 2.82 crore on 29.9% rise in sales to Rs 54.34 crore in Q4 March 2008 over Q4 March 2007.
The company manufactures automobile seats for cars, jeeps and trucks.
Koutons Retail India Azim Premji (WIPRO) picked up 2% stake
Koutons Retail India inched up 0.74% to Rs 794 at 10:08 IST on BSE on reports Azim Premji, chairman and majority owner of Wipro, has picked up 2% stake in the company for Rs 20 crore.
The stock hit a high of Rs 826 and a low of Rs 792.20 so far during the day. The stock had a 52-week high of Rs 1098 on
The mid-cap apparel retail company has an equity capital of Rs 30.55 crore. Face value per share is Rs 10.
The current price of Rs 794 discounts its Q3 December 2007 EPS of Rs 49.71, by a PE multiple of 15.97.
According to reports, Premji picked up about 3 lakh shares of Koutons from the secondary market, through his private equity fund PremjiInvest.
The news report quoted Ajay Mahajan, chief financial officer of Koutons Retail who confirmed the stake purchase by Premji.
Koutons Retail reported a net profit of Rs 12.20 crore on sales of Rs 173.10 crore in Q3 December 2007.
Koutons Retail India (Koutons) designs, manufactures and retails apparels. Its products are market under the 'Kouton' and `Charlie Outlaw' brands through its exclusive brand outlets (EBOs) across
Concor good Q4 numbers
Container Corporation of India gained 0.81% to Rs 914.95 at 10:01 IST on BSE after posting 19.9% rise in net profit to Rs 202.98 on 11.8% growth in net sales to Rs 903.59 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 917.50 and a low of Rs 910 so far during the day. The stock had a 52-week high of Rs 1222 on
The company’s current equity is Rs 129.98 crore. Face value per share is Rs 10.
The current price of Rs 914.95 discounts its Q4 March 2008 EPS of Rs 124.93, by a PE multiple of 7.32.
Container Corporation of India (Concor)'s net profit rose 7.57% to Rs 757.09 crore on 11.40% growth in total income to Rs 3500.20 crore in FY 2008 over FY 2007
In February 2008, Concor entered into a joint venture agreement with Allcargo Global Logistics to set up a container freight station and inland container depot in UP.
In January 2008, the company recommended issue of 1:1 bonus shares. The stock recently turned ex-bonus.
Concor, a central government public sector undertaking under Ministry of Railways, is primarily engaged in container rail transportation business, inland container depot (ICD) operations, warehousing and road transportation. Concor also provides transit warehousing for Exim (export and import) cargo, bonded warehousing and provides air cargo facilities.
Wednesday, April 23, 2008
There's money to be made in these uncertain times
Markets by nature are uncertain. The current news headlines make them appear even more uncertain. In these uncertain times, there are heads-I-win-tails-you-lose opportunities available. One of these opportunities is given below.
Let us say you invested Rs 5 lakh in a Nifty index fund. The Nifty is currently trading around 5,000-levels. Assume you did not see the stock prices for 3.25 years and opened you newspaper to check the prices only on
The portfolio value you would expect would depend on the Nifty level then prevailing. If the Nifty closed at 3,500 on
An alternative to the above strategy is available in the markets, where the downside is completely eliminated and the full (and sometimes more than the full) upside is captured. As I write the Nifty is trading above 5,000-levels and the Nifty call options with expiry of
Say you wish to invest Rs 5 lakh. Do the following two transactions:
Buy 100 call options at a price of Rs 1,140 per option. Total cost would be Rs 1,10,000. Invest the balance amount in a bank FD with a 9% interest rate till
On
So where is the catch? There is no catch other than taxes. If the markets were to go up, long-term capital gains in equity would be tax free, where as long-term gains in equity options may not be. Further bank interest would be subject to taxation. One could invest in fixed maturity plan mutual funds instead of bank FDs to save on tax, but the rate of return would vary slightly.
A question may arise as to why these opportunities are available in the market. The reason is that market participants have very short memories and tend to extrapolate recent events far into the future. Just as demand for earthquake insurance goes up immediately after an earthquake, currently there is huge demand for put options (implied volatility of 40%-50% for the academically inclined). In such a scenario, call options are being sold at ridiculously low levels (implied volatility of 0% !!!).
So for someone who is not bothered about paying taxes on the gains, this strategy would be heads I win, tails you lose.
(The author is chairman, Parag Parikh Financial Advisory Services)
IPL sponsors become hot-ticket stocks
There is no denying that cricket as a sport in India
According to analysts, companies like India Cements, GMR Infrastructure and United Breweries are likely to make good money out of the Twenty20 extravaganza. According to analysts, India Cements is one of the best picks as far as profits from IPL goes. “The company is likely to earn a turnover of Rs 3 billion from IPL in the next three-four years,” an analyst said.
Shares of India Cements ended 4.6% lower at Rs 184 on Wednesday. The stock is up nearly 4% over the past one week. United Breweries closed 0.7% higher at Rs 192 while GMR Infrastructure ended a tad lower at Rs 161 on the BSE. Both United Breweries and GMR Infrastructure have appreciated in the range of 7.5 to 8% over the past one week.
According to analysts, companies like India Cements, GMR Infrastructure and United Breweries are likely to make good money out of the Twenty20 extravaganza. According to analysts, India Cements is one of the best picks as far as profits from IPL goes. “The company is likely to earn a turnover of Rs 3 billion from IPL in the next three-four years,” an analyst said.
Shares of India Cements ended 4.6% lower at Rs 184 on Wednesday. The stock is up nearly 4% over the past one week. United Breweries closed 0.7% higher at Rs 192 while GMR Infrastructure ended a tad lower at Rs 161 on the BSE. Both United Breweries and GMR Infrastructure have appreciated in the range of 7.5 to 8% over the past one week.
Steel stocks melt on steel makers' assurance to hold price line
Six steel stocks were down between 1.26% to 4.45% at 10:50 IST on BSE on reports Steel Authority India and Tata Steel said have decided to hold steel prices for at least a few months.
Steel Authority of India (down 4.45% to Rs 175.20), Shree Precoated Steel (down 4.23% to Rs 202.50), JSW Steel (down 3.05% to Rs 850.10), Jindal Steel (down 2.92% to Rs 2,189), Tata Steel (down 2.55% to Rs 761) and Bhushan Steel (down 1.26% to Rs 812) edged lower.
Reportedly, JSW Steel on
Tata Steel and Steel Authority of India (SAIL) announced their plans not to increase steel prices for next two-three months shortly after prime minister Manmohan Singh visited their plants and advised them to hold prices. Earlier, finance minister P Chidambaram had charged the steel producers with ‘cartel-like behaviour’ in the Parliament.
Pharma stocks down on regulator's action to check prices
Four pharma stocks were down between 0.27% to 3.3% on reports the drug price regulator will initiate prosecution proceedings against five pharmaceutical companies for selling select brands without getting their prices approved by the regulator.
Wockhardt (down 0.27% to Rs 301.05), Lupin (down 0.77% to Rs 538), Cadilla Healthcare (down 1.04% to Rs 270.60) and Alembic (down 3.3% to Rs 58.60) edged lower.
Reportedly, the companies, which would face legal action for allegedly selling 39 specified pack sizes of different medicines without getting prior price approvals, are Alembic, Cadilla Healthcare, Wockhardt, Lupin and Medley Pharmaceuticals.
While the largest number of cases are registered against Cadilla Healthcare for flouting prices in about 30 products, Wockhardt and Lupin face regulatory action for one case each. The National Pharmaceutical Pricing Authority (NPPA) has asked Cadilla Healthcare to pay the amount it allegedly overcharged from consumers in case of about 25 other products as well.
The regulator is also examining close to 30 other cases of overcharging, where companies may be asked to pay back the excess amount collected from consumers. In case of non-compliance, those companies may also face prosecution proceedings.
NPPA’s tough action comes days ahead of a crucial meeting of ministers on
Tata Steel reverses course as Corus plans price hike
Tata Steel rose 1.93% to Rs 794 at 15:24 IST on BSE after Anglo-Dutch steelmaker Corus, owned by Tata Steel, announced price increases for reversing mill plate and structural sections.
The stock hit a high of Rs 804 and a low of Rs 757 so far during the day. The stock had a 52-week high of Rs 969.80 on
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 794 discounts its Q3 December 2007 EPS of Rs 70.17, by a PE multiple of 11.31.
The announcement is a stark contrast to Tata Steel’s earlier announcement of holding the domestic steel prices. Reportedly, Corus will be increasing basis prices for reversing mill plate by £60 per tonne effective to all dispatches from
Corus also asid steel manufacturers continue to incur significantly higher costs for raw materials and energy. It further added that the price increases are a direct consequence of high global demand for steel driving dramatic increases in the cost of raw materials.
Earlier in the day, shares of Tata Steel and other steel makers had declined on reports of Steel Authority
Tata Steel’s net profit rose 0.5% to Rs 1068.58 crore on 11.3% growth in net sales to Rs 4973.92 crore in Q3 December 2007 over Q3 December 2006.
Tata Steel is engaged in manufacture and distribution of steel, welded steel tubes, cold rolled strips, bearings and other related products and services.
CRISIL strong Q1 numbers
CRISIL spurted 8.31% to Rs 3523 at 15:30 IST on BSE after posting 74% surge in consolidated net profit to Rs 31.48 crore in Q1 March 2008 over Q1 March 2007.
The stock hit a high of Rs 3547 and a low of Rs 3262.65 so far during the day. The stock had a 52-week high of Rs 4275 on
The company’s current equity is Rs 7.23 crore. Face value per share is Rs 10.
The current price of Rs 3523 discounts its Q4 December 2007 EPS of Rs 152.14, by a PE multiple of 23.16.
CRISIL’s net sales rose 30.68% to Rs 116.74 in Q1 March 2008 over Q1 March 2007, on consolidated basis.
In February 2008, CRISIL said it plans to set up a credit information company in
Kirloskar Brothers good Q4 results
Kirloskar Brothers surged 4.51% to Rs 289.90 at 14:30 IST on BSE after posting 43.4% rise in net profit to Rs 52.66 in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 289.90 and a low of Rs 280.50 so far during the day. The stock had a 52-week high of Rs 527 on
The company’s current equity is Rs 21.15 crore. Face value per share is Rs 2.
The current price of Rs 289.90 discounts its Q4 March 2008 EPS of Rs 19.92, by a PE multiple of 14.55.
Kirloskar Brothers’ net sales rose 26.9% to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.
On
On
The company is engaged in manufacturing and selling pumps and compressors. Products of the group include power driven pumps, valves, anti corrosion products, electric motors, spares and others. The group operates in three segments, namely, pump, compressors and others.
Bajaj Hindustan Robust Q2 numbers
Bajaj Hindustan gained 1.05% to Rs 235.25 at 14:11 IST on BSE after posting 1075.68% surge in net profit to Rs 43.03 crore in Q2 March 2008 over Q2 March 2007.
The stock hit a high of Rs 245.70 and a low of Rs 233.40 so far during the day. The stock had a 52-week high of Rs 399.50 on
The company’s current equity is Rs 14.14 crore. Face value per share is Rs 1.
The current price of Rs 235.25 discounts its Q1 December 2007 EPS of Rs 8.39, by a PE multiple of 28.04.
Bajaj Hindustan’s total income fell 5.25% to Rs 500.04 crore in Q2 March 2008 over Q2 March 2007.
Bajaj Hindusthan (BHL), a part of the 'Bajaj Group', is
Surana Telecom rings on nod for share buyback
Surana Telecom & Power rose 1.07% to Rs 37.75 at 12:30 IST on BSE after its board approved buyback of shares at a price not exceeding Rs 50 and for an amount not exceeding Rs 6 crore.
The stock hit a high of Rs 39.25 and a low of Rs 35.70 so far during the day. The stock had a 52-week high of Rs 52.50 on
The company’s current equity is Rs 11.3 crore. Face value per share is Rs 5.
The current price of Rs 37.75 discounts its Q3 December 2007 EPS of Rs 4.11, by a PE multiple of 9.18.
The number of shares to be bought back shall not be more than 18 lakh equity shares.
Surana Telecom & Power' s net profit declined 7.9% to Rs 2.32 crore on 26.5% fall in net sales to Rs 15.37 crore in Q3 December 2007 over Q3 December 2006.
The company is engaged in manufacturing heat-shrinkable jointing kits, cable splicing/filling compounds, jelly filled telecommunication cables, wire connectors, end caps, modular connectors and high-density polyethylene (HDPE) pipe.
Bhagyanagar India tumbles on deferring share buyback plan
Bhagyanagar
The stock hit a high of Rs 45.60 and a low of Rs 42.20 so far during the day. The stock had a 52-week high of Rs 79.50 on
The company’s current equity is Rs 14.9 crore. Face value per share is Rs 2.
The current price of Rs 42.50 discounts its Q3 December 2007 EPS of Rs 5.04, by a PE multiple of 8.43.
Bhagyanagar
Exide Industries Strong Q4 result
Exide Industries surged 6.94% to Rs 81.70 at 9:55 IST on BSE after posting 63.1% rise in net profit to Rs 62.82 crore on 49.4% growth in total income to Rs 796.36 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 81.70 and a low of Rs 78 so far during the day. The stock had a 52-week high of Rs 90.90 on
The company’s current equity is Rs 80 crore. Face value per share is Rs 1.
The current price of Rs 81.70 discounts its Q4 March 2008 EPS of Rs 3.14, by a PE multiple of 26.02.
Exide Industries’ net profit surged 61.28% to Rs 250.33 crore on 51.69% growth in total income to Rs 2,851.38 crore in FY 2008 over FY 2007.
Exide Industries is engaged in manufacturing and selling storage batteries. It manufactures lead acid storage batteries used for starting piston engines and other lead acid accumulators.
Tuesday, April 22, 2008
Rally enters sixth day, but seen running out of steam
Rally enters sixth day, but seen running out of steam
Equity benchmarks extended their gains to the sixth consecutive session on Tuesday, but the rally appeared to be running out of steam. With quarterly corporate earnings broadly falling short of consensus estimates, market watchers expect institutional buying interest to wane, pushing the indices back into a narrow trading range.
The 30-share Sensex closed at 16,783.87, a gain of 44.54 points, or 0.3%, over the previous close. The barometer fell to an intra-day low of 16,597.53, but recovered on the back of a similar trend in key Asian markets. European markets, which opened after the close of trading in
The 50-share Nifty rose 12.30 points, or 0.2%, to close at 5,049.30. IT stocks fell out of favour following lacklustre quarterly numbers from TCS announced late evening on Monday. TCS itself bore the brunt, shedding 11% over its previous close, while other stalwarts like Wipro and Infosys too were down 5% each.
Buyers, however, continued to place their faith in infrastructure, cement, banking and real estate shares. Among Sensex stocks, BHEL, Jaiprakash Associates, DLF and HDFC were among the best performers.
The immediate near term trigger for the market is the expiry of the current month derivative contracts. According to Ankur Agarwala of IDBI Capital, the Nifty is expected to see an expiry of above 5,100. “The rally post expiry is expected to continue till 5,280,” he says.
“We could see lot of stock specific action due to various factors in play like inflation, RBI policy, crude oil prices among others. There is bullish trend in stocks like ONGC, SBI, RIL, RPL and NTPC,” he adds.On the downside, he expects 4,880 to be a strong support level for the Nifty.
Greaves Cotton, BUY
Greaves Cotton, BUY
Attractive valuation
Price Rs230 Target Price Rs442
Greaves Cotton Limited (GCL) reported results broadly in-line with our
expectations. Though the infrastructure equipment division reported robust
growth, engines segment reported subdued numbers. We believe the key trigger
for the stock going ahead will be the success of the twin engine cylinder that the
company has launched. We maintain BUY with target price of Rs.442
MK,
GVK Power & Infrastructure Robust Q4 result
GVK Power & Infrastructure rose 0.22% to Rs 44.90 at 15:16 IST on BSE on posting 511.78% rise in net profit to Rs 90.85 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 53.55 and a low of Rs 44.65 so far during the day. The stock had a 52-week high of Rs 93.50 on
The company’s current equity is Rs 140.58 crore. Face value per share is Rs 1.
The current price of Rs 44.90 discounts its Q3 December 2007 EPS of Rs 1.01 by a PE multiple of 44.45.
GVK Power & Infrastructure reported 173.34% rise in total income to Rs 117.32 crore in Q4 March 2008 over Q4 March 2007.
GVK Power & Infrastructure had recently split its shares from the Rs 10 per share to Re 1 per share.
The company's principal activity is to operate power plants.
UltraTech Cement good Q4 numbers
Ultratech Cement jumped 5.81% to Rs 817.90 at 14:48 IST on BSE on posting 22.17% rise in net profit to Rs 282.88 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 808 and a low of Rs 770 so far during the day. The stock had a 52-week high of Rs 1,165 on
The company’s current equity is Rs 124.49 crore. Face value per share is Rs 10.
The current price of Rs 817.90 discounts its Q3 December 2007 EPS of Rs 89.80, by a PE multiple of 9.1.
The company reported 9.6% rise in total income to Rs 1,628.69 crore in Q4 March 2008 over Q4 March 2007.
The company is engaged in manufacturing and marketing clinker and cement in
Binani Cement expansion plans
Binani Cement surged 6.44% to Rs 86.75 at 14:14 IST on BSE on reports the company would invest about to Rs 2000 crore by 2012 for expansion of capacities both in India and overseas.
The stock hit a high of Rs 89.50 and a low of Rs 82.65 so far during the day. The stock had a 52-week high of Rs 130 on
The company’s current equity is Rs 203.10 crore. Face value per share is Rs 10.
The current price of Rs 86.75 discounts its Q4 March 2008 EPS of Rs 12.63, by a PE multiple of 6.87.
As per recent reports, this expansion includes setting up of one million tonnes per annum (MTPA) of grinding unit in Bharuch, two MTPA green field project in coastal Gujarat, doubling the cement capacities in China and Dubai and acquiring coal mines in Indonesia. A mix of debt and equity would fund the investment, reports added.
Binani Cement’s net profit rose 151.8% to Rs 64.13 on 80.3% growth in net sales to Rs 336 in Q4 March 2008 over Q4 March 2007.
The company is engaged in manufacturing and marketing cement and non-ferrous metal. The group operates in three segments: cement, zinc and by-products and glass fibre.
Surana Telecom gains ahead of board meet on buyback
Surana Telecom rose 4.07% to Rs 38.40 at
The stock hit a high of Rs 39.50 and a low of Rs 37 so far during the day. The stock had a 52-week high of Rs 52.50 on
The company’s current equity is Rs 11.3 crore. Face value per share is Rs 5.
The current price of Rs 38.40 discounts its Q3 December 2007 EPS of Rs 4.11, by a PE multiple of 9.34.
Surana Telecom’ & Power' s net profit declined 7.9% to Rs 2.32 crore on 26.5% fall in net sales to Rs 15.37 crore in Q3 December 2007 over Q3 December 2006.
The company is engaged in manufacturing heat-shrinkable jointing kits, cable splicing/filling compounds, jelly filled telecommunication cables, wire connectors, end caps, modular connectors and high-density polyethylene (HDPE) pipe.
PSL wins Large order
PSL gained 2.14% to Rs 313 at 13:04 IST on BSE after the company said it has secured two orders worth Rs 1,225 crore from Larsen & Toubro and HPCL-Mittal for laying pipelines.
The stock hit a high of Rs 321 and a low of Rs 309 so far during the day. The stock had a 52-week high of Rs 588 on
The company’s current equity is Rs 42.17 crore. Face value per share is Rs 10.
The current price of Rs 313 discounts its Q3 December 2007 EPS of Rs 28.37, by a PE multiple of 11.03.
One of the two orders is valued at Rs 917 crore received from HPCL-Mittal for supplying steel pipes for the Mundra Bhatinda crude oil line. The other order is valued at Rs 308 crore secured from Larsen & Toubro (L&T) for water transport.
PSL’s net profit rose 45.1% to Rs 30.19 crore on 32.1% growth in net sales to Rs 659.05 in Q3 December 2007 over Q3 December 2006.
PSL manufactures pipes to meet requirements from all sectors, including oil and gas. Its mills are equipped with internal and external pipe-coating facilities to meet technical requirement of the oil, gas and water sectors in conformity with international specification. It has facilities at Kandla and Ahmedabad in
Escorts good Q2 numbers
Escorts rose 5.3% to Rs 104.40 at 11:30 IST on BSE on reporting 44.3% rise in net profit to Rs 9.68 crore in Q2 March 2008 over Q2 March 2007.
The stock hit a high of Rs 106.90 and a low of Rs 97.55 so far during the day. The stock had a 52-week high of Rs 174 on
The company’s current equity is Rs 84.44 crore. Face value per share is Rs 10.
The current price of Rs 104.40 discounts its Q2 March 2008 annualised EPS of Rs 4.59, by a PE multiple of 22.74.
Escorts reported 7.4% decline in sales to Rs 531.47 crore in Q2 March 2008 over Q2 March 2007
The company is engaged in manufacturing agri-machinery, telecommunications, healthcare, construction and material handling equipment, automotive and railway ancillaries. It also provides information technology and financial services.
TCS disappointing Q4 results
TCS slumped 7.11% to Rs 922 at 10:45 IST on BSE after the company reported 5.95% fall in net profit to Rs 1108.81 crore in Q4 March 2008 over Q3 December 2007.
The stock hit a high of Rs 980 and a low of Rs 912.35 so far during the day. The stock had a 52-week high of Rs 1299.50 on
The company’s current equity is Rs 97.86 crore. Face value per share is Re 1.
The current price of Rs 922 discounts its Q4 March 2008 annualized EPS of Rs 45.32, by a PE multiple of 20.34.
TCS posted 2.23% rise in net sales to Rs 4942.49 crore in Q4 March 2008 over Q3 December 2007.
TCS reported 7% growth in net profit as per US GAAP at Rs 1256 crore on 18.4% growth in revenue at Rs 6095 crore in Q4 March 2008 over Q4 March 2007. The company’s management sounded positive on growth prospects despite worries that a weak
The company said the deal pipeline is encouraging and client ramp-ups have started happening
Meanwhile, some of the prominent brokerages have downgraded the stock after the disappointing results. Morgan Stanley has downgraded its rating on TCS to equal-weight from overweight. Similarly, Lehman Brothers Inc. has also cut its share price estimate for the Tata Consultancy Services stock to Rs 1,161 from Rs 1,286 earlier.
On
The company provides IT and business process outsourcing services. The group provides services to industries such as banking and financial services, insurance, manufacturing, telecommunications, retail and transportation.
Biocon Liberal bonus
Biocon rose 4.91% to Rs 529.65 at
It also announced its Q4 results today.
The stock hit a high of Rs 551.50 and a low of Rs 494.85 so far during the day. The stock had a 52-week high of Rs 663.30 on
From its recent low of Rs 429.10 on
The company’s current equity is Rs 50 crore. Face value per share is Rs 5.
The current price of Rs 529.65 discounts its Q3 December 2007 annualised EPS of Rs 113.61, by a PE multiple of 4.66.
The company’s net profit rose 31.19% to Rs 62.03 crore on 1.96% decline in total income to Rs 236.71 crore in Q4 March 2008 over Q4 March 2007.
Biocon is
Geometric hardens after property sale
Geometric gained 1.62% to Rs 65.70 at
The stock hit a high of Rs 67.45 and a low of Rs 65.05 so far during the day. The stock had a 52-week high of Rs 133 on
The company’s current equity is Rs 12.42 crore. Face value per share is Rs 2.
The current price of Rs 65.70 discounts its Q4 March 2008 EPS of Rs 3.75, by a PE multiple of 17.52.
Geometric’s net profit rose 290.60% to Rs 5.82 crore on 3.95% growth in net sales to Rs 45.76 crore in Q4 March 2008 over Q3 December 2007.
The company's principal activity is to provide innovative software services and products.
Monday, April 21, 2008
Smooth sailing for SCI on bonus buzz
Shipping Corporation of
The stock hit a high of Rs 248 and a low of Rs 227 so far during the day. The stock had a 52-week high of Rs 332 on
The company’s current equity is Rs 282.3 crore. Face value per share is Rs 10.
The current price of Rs 242.35 discounts Q3 December 2007 annualised EPS of Rs 25.05 by a PE multiple of 9.67.
Shipping Corporation of India (SCI)’s net profit declined 22% to Rs 176.78 on 11.5% fall in net sales to Rs 915.27 crore in Q3 December 2007 over Q3 December 2006.
Reports claimed bonus proposal could be linked with the proposal of Shipping Corporation of India (SCI) seeking ‘Navratna’ status, which is likely to be taken up over the next few days. Navratna status would provide SCI with greater autonomy in financial and operational decisions, while allowing it to set up joint ventures internationally relatively faster. SCI, had surplus and reserves of Rs 4,817.14 crore as on
SCI, a state-run shipping company, operates and manages a fleet of line vessels, tankers, bulk carriers, passenger vessels and off shore vessels.
Axis Bank Strong Q4 result
Axis Bank rose 5% to Rs 866 at 14:36 IST on BSE after bank’s net profit rose 70.56% to Rs 361.4 crore on 56.57% rise in total income to Rs 2571.9 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 868.70 and a low of Rs 799 so far during the day. The stock had a 52-week high of Rs 1,291 on
The bank's current equity is Rs 357.71 crore. Face value per share is Rs 10.
The current price of Rs 866 discounts Q3 December 2007 annualised EPS of Rs 34.34 by a PE multiple of 25.21.
The bank’s net profit rose 62.51% to Rs 1071.03 crore on 60.84% rise in total income to Rs 8800.8 crore in FY 2008 over FY 2007.
Axis Bank provides commercial banking services, which include merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.
MIRC Electronics 10% upper circuit
MIRC Electronics hit 10% upper circuit at Rs 19.80 at 14:09 IST on BSE on reports chairman Gulu Mirchandani has agreeed to buy his dissenting brother Sonu Mirchandani’s one-third stake in investment firm Guviso, for Rs 111 crore.
The stock hit a high of Rs 19.80 and a low of Rs 18.60 so far during the day. The stock had a 52-week high of Rs 41.85 on
The company’s current equity is Rs 14.2 crore. Face value per share is Rs 1.
The current price of Rs 19.80 discounts Q3 December 2007 annualised EPS of Rs 2.5 by a PE multiple of 7.92.
Gulu will buy the 33.3% stake held by Sonu’s wife for about Rs 110 crore. The proposed deal will increase Gulu’s stake in the holding entity Guvisco from 27.77% to 61.07 %. Guvisco owns a 52.74% stake in MIRC, which manufactures the Onida brand of consumer goods. Onida has a share of 8-10% in the Rs 14,000-crore colour television market, which is growing at 10% every year.
The Mirchandanis’ brother-in-law, Vijay Mansukhani, will retain his 33% stake in Guvisco. Mansukhani was made managing director of the company last year, while Gulu retained the chairman’s post.
This caps the months-long dispute between the brothers over Sonu’s decision to exit and sell his stake to outsiders. Sonu was reportedly in talks with Videocon Industries and Future Group, amongs others, to sell his stake. Videocon had shown interest in the deal on condition that the promoters settle their internal differences.
The trigger for the dispute among siblings was Gulu’s decision to put his son Kaval in charge of the company’s plasma and LCD business without consulting Sonu reports added.
Banco Products in reverse gear on deferring buy back proposal
Banco Products India declined 7.49% to Rs 35.80 at
The stock hit a high of Rs 38.05 and a low of Rs 35 so far during the day. The stock had a 52-week high of Rs 51.70 on
The company’s current equity is Rs 14.2 crore. Face value per share is Rs 2.
The current price of Rs 35.80 discounts its Q3 December 2007 annualised EPS of Rs 6.96, by a PE multiple of 5.14.
Banco Product
The company is engaged in manufacturing and selling automobile ancillaries. It manufactures gaskets and radiators, which are used in sealing and cooling applications in automotive and industrial engines.
Satyam Computers good Q4 numbers
Satyam Computer Services rose 1.71% to Rs 476.95 at 10:52 IST on BSE after reporting net profit rise of 17.84% to Rs 468.45 crore on growth in total income of 31.45% to Rs 2337.84 crore in Q4 March 2008 over Q4 March 2007.
The stock hit a high of Rs 488 and a low of Rs 473.50 so far during the day. The stock had a 52-week high of Rs 522.30 on
The company’s current equity is Rs 134.12 crore. Face value per share is Rs 2.
The current price of Rs 476.95 discounts its Q3 December 2007 EPS of Rs 26.35, by a PE multiple of 18.1.
The company’s net profit rose 20.55% to Rs 1715.74 crore on 30.95% rise in total income to Rs 8394.48 crore in FY 2008 over FY 2007.
For FY 2009, under US GAAP, revenue is expected to rise between 24.0% to 26.0% to $2.65 billion and $ 2.69 billion in FY 2009 over FY 2008. Basic earning per American depository share (ADS) is expected to rise by 15.2% - 17.6% to $ 1.44 and $ 1.47, in FY 2009 over FY 2008, Satyam said.
Under Indian GAAP consolidated revenue is expected to rise by 23.9% and 25.9% to Rs 10,500 crore and Rs 10,670 crore, in FY 2009 over FY 2008. Earning per share (EPS) is expected to rise by 17% to 19%. To Rs 29.54 to Rs 30.04, in FY 2009 over FY 2008.
The company recommended a total dividend of 175% (Rs 3.50 per share on par value of Rs 2 per share), including interim dividend of 50% (Re 1 per share on par value of Rs 2 per share) for FY 2008.
The company provides information technology services, Internet services and develops software products.
SRF gains on buy back proposal
SRF gained 3.60% of Rs 133.80 at 9:55 IST on BSE after the company said on Thursday, 17 April 2008, it has scheduled a board meet on 25 April 2008 to consider buy back of equity shares.
The stock hit a high of Rs 134.90 and a low of Rs 131.50 so far during the day. The stock had a 52-week high of Rs 207.40 on
The company’s current equity is Rs 67.89 crore. Face value per share is Rs 10.
The current price of Rs 133.80 discounts its Q3 December 2007 EPS of Rs 20.20, by a PE multiple of 6.62.
SRF’s net profit declined 51.1% to Rs 34.28 crore on 9.2% fall in net sales to Rs 408.81 crore in Q3 December 2007 over Q3 December 2006.
SRF is engaged in manufacturing nylon tyre cord fabric, industrial yarns, polyester films, belting and coated fabric, refrigerant gases and chloromethanes.
Post Market Commentary-21-April-08
Rally spills over to fifth consecutive trading session
The Indian stock market mirrored gains in global counterparts to posts decent rise, shrugging off a steep 50 basis points hike in cash reserve ratio (CRR) announced by the Reserve Bank of India late on Thursday, 17 April 2008. The market was closed on
The unscheduled CRR rate hike comes ahead of RBI's annual credit policy for 2008-09 to be unveiled on
CRR is the amount of money banks have to keep with RBI as a percentage of their liabilities (deposits). CRR hike will be introduced in two stages. In the first stage, RBI will raise CRR by 25 basis points to 7.75% on
Asian markets, which opened before Indian markets, surged on hopes the worst was over for the banking sector, following the top
The 30-share BSE Sensex was up 258.13 points or 1.57% at 16,739.33.
S&P CNX Nifty was up 78.60 points or 1.59% at 5,037
The market breadth was strong. Metal shares staged a strong comeback after the recent correction. Banking shares rose taking the hike in CRR in their stride. However IT pivotals retracted from day’s high hit in early trade on profit booking. They had logged handsome gains last week buoyed by encouraging guidance from IT bellwether Infosys Technoligies.
Sasken Communication Technology surged 32.62% to Rs 190.90 after its board approved a proposal for buyback of shares from open market at a price not exceeding Rs 260 per share for an aggregate amount of Rs 40 crore. The company made this announcement on
short-selling, that is selling a stock that you do not own, and making profit when the price falls, will be allowed from today,
Initially, short-selling will be permitted only in 227 stocks that are also traded in the futures and options segment, where deals can be entered into for making transactions at a future date. Later, the stock exchanges may decide to extend short-selling to a larger universe of stocks.
Wednesday, April 16, 2008
Asit C Mehta initiates 'buy' on Asian Paints
Asit C Mehta Investment Intermediates has initiated 'buy' on Asian Paints for target price of Rs 1,419 (implying a forward P/E multiple of 23x) on account of robust domestic demand for decorative paints. The brokerage expects the company to register a 3-year EPS CAGR of 28.2 per cent till FY10E. At CMP of Rs 1,200 the stock is trading at 25.0 times FY09E & 19.5 times FY10E earnings per share.
The company’s revenue is expected to grow at a CAGR of 18.5 per cent from Rs. 3,978.1 crore in FY07 to Rs. 6,627.04 crore in FY10E, mainly due to capactiy addition and better realisations.
In FY08E, the company was able to pass on the increase in the raw material cost which helped the company to sustain in its raw material cost as a percentage to net sale. Further, the increase in volume led to economies of scale resulting in better operating margins. Asian Paints’ net profit margins are in line with EBIDTA margins and are expected to grow at a 28.2 per cent CAGR from Rs 281.03 crore in FY07 to Rs. 591.64 crore in FY10E Hence EPS is expected to grow at a CAGR of 28.2 per cent from Rs 29.30 in FY07 to Rs. 61.7 in FY10E.
The paint industry is divided into organized and unorganized sector. The unorganized segment plays a huge role in decorative paint segment due to low technical know-how and highly scattered market. The organized segment constitutes 54 per cent of the total volume and 65 per cent of value of paints industry. Again the whole paints industry can be classified into decorative (75% of total industry size) and industrial paints (25% of total industry size).
The Indian Paint Industry grew by 18 per cent from Rs 9,500 crore in FY06 to Rs 11,200 crore in FY07. The industry has a positive correlation with GDP as both have same drivers for growth. Demand for paints is both, derived as well as direct. The demand for decorative paints is a direct demand whereas the demand for industrial paints is a derived demand.
Indian climatic conditions are not conducive for foreign formulations and modification cost in product formulation is quite high. As a result, imports are no threat to the Indian players. In case of industrial paints, most of the major players in the industry already have a tie-up with global players, for latest technology and markets accessible to them. It negates the further supply from the international markets even after reduction of import duty from 40 per cent to 15.3 per cent in last 8 years.
The paint industry is raw material intensive industry. It takes around 300 different raw materials to make paint, most of which are petroleum based. Titanium Dioxide is the largest consumed raw material for manufacture of paints. It constitutes around 30% of the total manufacturing cost. Besides Titanium Dioxide, there are other petroleum based raw materials which constitute 40-50 per cent of total raw material consumed. Hence any movement in crude oil prices will impact the profitability of the company.
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