There will be no news updates/opinion/stock picks for a month or so. This also means that if you have friends/relatives interested in such news/opinion as is provided by us, it would be a good idea to register them to the email subscription. A month would be a good time for synchronization as well.
Happy earnings for the while, and stick to the basics!
Cheers!
StocksCenter
Piramal Healthcare stock down 4% notwithstanding good results
Piramal Healthcare Ltd has announced the following Un-Audited results for the quarter ended September 30, 2009:
The Company has posted a Net profit for the period of Rs 1142.20 million for the quarter ended September 30, 2009 as compared to Rs 694.40 million for the quarter ended September 30, 2008. Total Income has increased from Rs 6369.00 million for the quarter ended September 30, 2008 to Rs 7115.90 million for the quarter ended September 30, 2009.
The Unaudited Consolidated results are as follows:
The Group has posted a net profit for the period of Rs 1062.70 million for the quarter ended September 30, 2009 as compared to Rs 733.90 million for the quarter ended September 30, 2008. Total Income has increased from Rs 8893.30 million for the quarter ended September 30, 2008 to Rs 9999.90 million for the quarter ended September 30, 2009.
The Company has posted a Net profit for the period of Rs 1142.20 million for the quarter ended September 30, 2009 as compared to Rs 694.40 million for the quarter ended September 30, 2008. Total Income has increased from Rs 6369.00 million for the quarter ended September 30, 2008 to Rs 7115.90 million for the quarter ended September 30, 2009.
The Unaudited Consolidated results are as follows:
The Group has posted a net profit for the period of Rs 1062.70 million for the quarter ended September 30, 2009 as compared to Rs 733.90 million for the quarter ended September 30, 2008. Total Income has increased from Rs 8893.30 million for the quarter ended September 30, 2008 to Rs 9999.90 million for the quarter ended September 30, 2009.
L&T posts disappointing numbers
Larsen & Toubro Ltd (L&T) has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a profit after tax of Rs 5804.00 million for the quarter ended September 30, 2009 as compared to Rs 4602.60 million for the quarter ended September 30, 2008. Total Income has increased from Rs 78578.70 million for the quarter ended September 30, 2008 to Rs 81363.90 million for the quarter ended September 30, 2009.
The profits and the sales growth were less than expectations. According to the company, the growth was subdued due to delay in clearance of infrastructure projects. Mr. Deosthalee, the CFO said that the results should be better in the second half of FY10.
The stock closed at 1608.5, down 3.86% with high volumes in a falling market.
The Company has posted a profit after tax of Rs 5804.00 million for the quarter ended September 30, 2009 as compared to Rs 4602.60 million for the quarter ended September 30, 2008. Total Income has increased from Rs 78578.70 million for the quarter ended September 30, 2008 to Rs 81363.90 million for the quarter ended September 30, 2009.
The profits and the sales growth were less than expectations. According to the company, the growth was subdued due to delay in clearance of infrastructure projects. Mr. Deosthalee, the CFO said that the results should be better in the second half of FY10.
The stock closed at 1608.5, down 3.86% with high volumes in a falling market.
Hero Honda rides slow on good numbers
Hero Honda Motors Ltd has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a net profit of Rs 5971.40 million for the quarter ended September 30, 2009 as compared to Rs 3063.00 million for the quarter ended September 30, 2008. Total Income has increased from Rs 32559.30 million for the quarter ended September 30, 2008 to Rs 41281.50 million for the quarter ended September 30, 2009.
The stock was down 0.45% to close at Rs. 1605 on the BSE.
The Company has posted a net profit of Rs 5971.40 million for the quarter ended September 30, 2009 as compared to Rs 3063.00 million for the quarter ended September 30, 2008. Total Income has increased from Rs 32559.30 million for the quarter ended September 30, 2008 to Rs 41281.50 million for the quarter ended September 30, 2009.
The stock was down 0.45% to close at Rs. 1605 on the BSE.
JP Associates stock hammered notwithstanding bonus issue and sterling results
JP Associates posted a fantastic set of numbers yesterday. The company even announced a bonus issue of 1 share for every 2 shares held. The stock was down 6.84% on the BSE, at Rs. 238.2. Volumes were high as well, on profit booking. The results-
The Company has posted a net profit of Rs 8701.90 million for the quarter ended September 30, 2009 as compared to Rs 2033.70 million for the quarter ended September 30, 2008. Total Income has increased from Rs 12987.60 million for the quarter ended September 30, 2008 to Rs 19125.10 million for the quarter ended September 30, 2009.
The Company has posted a net profit of Rs 8701.90 million for the quarter ended September 30, 2009 as compared to Rs 2033.70 million for the quarter ended September 30, 2008. Total Income has increased from Rs 12987.60 million for the quarter ended September 30, 2008 to Rs 19125.10 million for the quarter ended September 30, 2009.
Spanco bags Orissa eGovernance order. Stock up 5% at upper circuit.
StocksCenter recommended company Spanco [analysis] [tag] has bagged the Orissa State Data Center Project.This being the first SDC order in the country, it is the part of the core infrastructure under the National eGovernance Program instituted by the Dept of IT, GoI. The order value stands at Rs. 30 cr approx and spans over 4 months.
In a separate event, a Spanco/Mahindra Satyam combine missed a BSNL order worth Rs. 850 cr approx (as bid by HCL, the winner) for the East Zone.
In a separate event, a Spanco/Mahindra Satyam combine missed a BSNL order worth Rs. 850 cr approx (as bid by HCL, the winner) for the East Zone.
Biocon announces good Q2 as well as Half Yearly results
Biocon Ltd has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a net profit after tax of Rs 623.60 million for the quarter ended September 30, 2009 as compared to Rs 335.30 million for the quarter ended September 30, 2008. Total Income has increased from Rs 2682.70 million for the quarter ended September 30, 2008 to Rs 3124.40 million for the quarter ended September 30, 2009.
The Unaudited Consolidated Results are as follows
The Group has posted a net profit after tax of Rs 741.90 million for the quarter ended September 30, 2009 as compared to Rs 250.20 million for the quarter ended September 30, 2008. Total Income has increased from Rs 4577.30 million for the quarter ended September 30, 2008 to Rs 5923.50 million for the quarter ended September 30, 2009.
The Company has posted a net profit after tax of Rs 623.60 million for the quarter ended September 30, 2009 as compared to Rs 335.30 million for the quarter ended September 30, 2008. Total Income has increased from Rs 2682.70 million for the quarter ended September 30, 2008 to Rs 3124.40 million for the quarter ended September 30, 2009.
The Unaudited Consolidated Results are as follows
The Group has posted a net profit after tax of Rs 741.90 million for the quarter ended September 30, 2009 as compared to Rs 250.20 million for the quarter ended September 30, 2008. Total Income has increased from Rs 4577.30 million for the quarter ended September 30, 2008 to Rs 5923.50 million for the quarter ended September 30, 2009.
Investment Pick: Technocraft Industries Ltd
Listing Information:
Technocraft Industries Ltd is quite a newly listed company. It listed in 2007 on the stock exchanges following an IPO where 25% of the shares were offered at Rs. 107. The trading of this stock witnessed an alltime high of Rs. 130 on the BSE in 2007. An alltime low was recorded at Rs. 17.55 during the calamity this year. The stock currently trades between Rs. 40-45. Such is the listing information.
Fundamentals and Revenue Growth:
The company was founded in 1972 by graduates from IIT, Bombay. It is a diversified group. The company along with its subsidiaries manufactures drum closure products, cotton yarn, steel tubes & scaffolding systems. There is also a garment division which manufactures active wear products under the names Danube Fashions and Haute Chilli. The head office of Technocraft Group is in Mumbai. It has overseas presence in UK, Poland, Hungary, Germany and Australia.
In the 2-2.5 years it has been in the market, Technocraft Industries has posted strong results, with increased top line, however the bottom line, or the profits continue to lag behind the growth in the revenues, and have also dipped. Revenues have grown from Rs. 300 cr in FY0607 through Rs. 458 cr in FY0708 to Rs. 497 cr in FY0809. However Q1FY10 was bad for the company, with revenue dipping 21% YoY and profits falling by more than 40% YoY in the quarter. However, QoQ, the profits were better as the company made losses in Q4FY09. The company has weathered the storm, and is now poised to grow faster. When the growth would reflect in increasing bottom lines, and that is where the investor would be betting, the stock price would zoom to higher levels. An EPS of Rs. 10 would be welcome, and at a P/E of 11-12, the stock would be at Rs. 110-120. This would, of course, be in good conditions.
Previous Price Performance:
The stock has underperformed at the stock markets, as is clearly visible from the following data (from BSE *as on 21-10-09):
Shareholding Pattern:
Promoters hold 75% equity shares. The holding increased from just under 74 to 75% over the last year. The promoters bought shares from the market during Dec08 to Mar09, as is evident from various disclosures.
StocksCenter View:
One can invest in Technocraft Industries at these levels (40-45 or so) in dips with a cautious approach. A target of 150 plus is possible if the global scenario improves. The company has inherent capacity to grow irrespective of the global scenario as well as shown in Q3 and Q4 of FY09, however the profits took a beating- the sales were resilient. The stock price here will soon be a direct consequence of the bottom line growth, if sales remain resilient as is expected.
Technocraft Industries Ltd is quite a newly listed company. It listed in 2007 on the stock exchanges following an IPO where 25% of the shares were offered at Rs. 107. The trading of this stock witnessed an alltime high of Rs. 130 on the BSE in 2007. An alltime low was recorded at Rs. 17.55 during the calamity this year. The stock currently trades between Rs. 40-45. Such is the listing information.
Fundamentals and Revenue Growth:
The company was founded in 1972 by graduates from IIT, Bombay. It is a diversified group. The company along with its subsidiaries manufactures drum closure products, cotton yarn, steel tubes & scaffolding systems. There is also a garment division which manufactures active wear products under the names Danube Fashions and Haute Chilli. The head office of Technocraft Group is in Mumbai. It has overseas presence in UK, Poland, Hungary, Germany and Australia.
In the 2-2.5 years it has been in the market, Technocraft Industries has posted strong results, with increased top line, however the bottom line, or the profits continue to lag behind the growth in the revenues, and have also dipped. Revenues have grown from Rs. 300 cr in FY0607 through Rs. 458 cr in FY0708 to Rs. 497 cr in FY0809. However Q1FY10 was bad for the company, with revenue dipping 21% YoY and profits falling by more than 40% YoY in the quarter. However, QoQ, the profits were better as the company made losses in Q4FY09. The company has weathered the storm, and is now poised to grow faster. When the growth would reflect in increasing bottom lines, and that is where the investor would be betting, the stock price would zoom to higher levels. An EPS of Rs. 10 would be welcome, and at a P/E of 11-12, the stock would be at Rs. 110-120. This would, of course, be in good conditions.
Previous Price Performance:
The stock has underperformed at the stock markets, as is clearly visible from the following data (from BSE *as on 21-10-09):
| Year | Open Price | High Price | Low Price | Close Price | No. of Shares | No. of Trades | Total Turnover(Rs.) | * Spread (Rs.) | |
| H - L | C - O | ||||||||
| 2007 | 125.00 | 130.00 | 53.00 | 87.25 | 65476734 | 527786 | 6,596,540,882.00 | 77.00 | -37.75 |
| 2008 | 88.90 | 105.20 | 18.00 | 31.05 | 6712763 | 63881 | 437,485,032.00 | 87.20 | -57.85 |
| 2009* | 31.25 | 51.40 | 17.55 | 47.25 | 1959093 | 16629 | 69,149,753.00 | 33.85 | 16.00 |
Shareholding Pattern:
Promoters hold 75% equity shares. The holding increased from just under 74 to 75% over the last year. The promoters bought shares from the market during Dec08 to Mar09, as is evident from various disclosures.
| "Public" and holding more than 1% of the Total No.of Shares | |||
| Sl. No. | Name of the Shareholder | No. of Shares | Shares as % of Total No. of Shares |
| 1 | Reliance Capital Trustee Co Ltd Reliance Longterm Equity Fund | 486,589 | 1.54 |
| 2 | HDFC Trustee Company Ltd A/c HDFC Growth fund | 538,745 | 1.71 |
StocksCenter View:
One can invest in Technocraft Industries at these levels (40-45 or so) in dips with a cautious approach. A target of 150 plus is possible if the global scenario improves. The company has inherent capacity to grow irrespective of the global scenario as well as shown in Q3 and Q4 of FY09, however the profits took a beating- the sales were resilient. The stock price here will soon be a direct consequence of the bottom line growth, if sales remain resilient as is expected.
Putting things into perspective...
Last October, I wrote an article. I think it has become more and more relevant these days! Here it is:
http://content.msn.co.in/MSNC ontribute/Story.aspx?PageID=c6 b024b9-977e-485d-94be-822b0bb2 459a
In another year, at a similar time, we were happy. We had good reasons to be happy, our investments were growing at a good rate- no not at a good rate, at an unbelievable rate. Financial gurus and technical experts were all upbeat about the Indian growth story's reflection in the Index of Stocks.
Everyone was fiddling with their demat accounts, from the pan wallah to the IT professional. And they had reasons to do so. Money was pouring into the Indian bourses. Ostensibly, dollars were finding a new home, making partnerships with the rupees. And when one becomes blinded by the quick gains (and they were huge gains), he forgets about his partner- what is he really up to?
Housewives who had nothing to do at home started doing some home shopping. It was all clear in everyone's minds- India is on her way up. No one really noticed the speed with which things were turning out. One of the Seven Deadly Sins had been incurred, incurred on a colossal scale. The Sin was Greed.
People never knew what hit them, how it hit them, and how long was it going to hit them. They had been buying, taking off some air from the bubble that was being built and putting it safely in their electronic balloons. They took off little pieces of the huge volumes that were being traded by the Big Boys, without realizing what the Big Boys were really up to. By sheer luck, the air suddenly expanded in that balloon and they all felt happy.
The Big Boys had a lot of gas, by the way. They created more air, more people got lured into this gaseous trade. The Big Boys never really wanted this to happen. It was amongst themselves- the wrestling for the rising buck (or the falling one). The retail traders were like those irritating house-flies that aggregate when they smell some nice air.
However, the Big Boys were buying then, and buying hard. Were they actually buying? Or just passing the parcel- from one to another at a higher rate? The general public never realized this. And when they were buying, some of us were busy booking profits and buying again- getting lured again by the prospects.
Wow.
Now.
The Big Boys are selling, smartguy! Oops, your money! Why did it suddenly shrink? This should not have happened! But then, how could it happen?
Well, here's how.
There are two ways to make quick money in the bourses if you have a lot of money. (Oh, there's actually only one way to do so- beat the other guy. Buy from him when he's all out, wriggling for cash- and sell to him when he's confident, happy with cash.)
The first way is called the "Call" in the option's market and "Buy" in the future's market.
The second way is called the "Put" in the option's market and "Sell" in the future's market.
The Big Boys were using the first way last year, and what they are doing now is the second way. They had a good margin- a very good one during the second time- almost a 50% one (or maybe more, as time will tell).
And they have good reasons to sell now. The world's economy, that was looking all so spectacular a year ago is now speculated and foresighted as going down a gloomy spiral. The Indian economy, (that was seen as one of the fastest growing economies in the world that would not stop growing for what, some 25-30 years now) has suddenly garnered enough speculation to prove it slowing down, corroborated by the "global factors". The same Boys that were buying so ferociously for 2-3 years into the Indian companies, are now getting their dollars out since they have to be used to pay off other debts that they created by madly (apparently) taking risks.
Now if you look at the Sensex at 8000 some years ago and if you look at it now, the buyers then were buying into relatively expensive stocks. The same scrips, the same companies are now poised at a much better stage, buying other companies outside the nation, having growth prospects better like never before.
Let me put my case straight now:
Fundamentally, the cash investor of this date, of this age is at a beautiful advantage. And the ones who are holding "expensive" material which has suddenly cheapened are at a slight disadvantage. And those who are selling off their goods in sheer panic are going to curse themselves for selling their stuff to some vile, some intelligent buyers who will be cashing in on that a day that's not so far away. And on that day again, the Big Boys shall be playing as usual, unaffected by the sentiment they have created.
StocksCenter
This Diwali, pray for sense. This New Year, leave greed.
So the market is gung ho about what happened in the samvat gone by, and what has been the market performance DoD (Diwali over Diwali!). They were saying markets rose 90%. They were saying the year was gainful. Gainful it was, but was it wealth creating? One doubts, really.
How can one forget the wealth erosion that took place due to the events that started from US housing and ended up with the Satyam embarrassment. When greed sets in and you want to make gains that are not yours- when the money becomes dirty to own, when you lose the very sense of the value of that fifty rupee note, thinking it at par with the erstwhile ten rupee note, mister, you're soon going to be in a lot of problem.
Just when the traders and the investors brigade started splurging their (i would rather go as far to say) undeserving gains, just when they started thinking everything to be cheap, or rather inexpensive, they faltered into a mistake they will inevitably commit again.
It may be blasphemous for a bull to say that the markets should not stay up- but calling a spade a spade is not wrong by any calculation. Okay, one says- India did not have any problem. US had. We're good as we were. We can go on spending as we used to- markets will rise and we will be able to pay off our debts, since salaries will also rise given the markets to be a derivative of the corporate world. Sir, that is wrong.
What is happening in India now is what had been happening to the US in the last many decades. You'll probably believe this if i bring in some examples. AIG fell because it bought toxic assets, which were a product of the new breed of talented graduates who were being pulled into the financial markets lured by the big money. Talented people could have worked elsewhere and done something more contributory and productive rather than calculating arbitrage odds or punting on somebody else' behalf. That is what is happening here as well, well, off late one would stop me- since Lehman is dead now, but ask MBA wannabes or Commerce students and they'll tell you "I wanna do finance".
Emphasis needs to be laid on real sectors- such as biotechnology, IT, capital goods, and so on. Finance is just a net that facilitates other sectors. It cannot facilitate itself- understand this sentence, and you'll know what went wrong last year.
And coming over to the governments now. "America is a capitalist economy." My history teacher told me. America fought a cold war based on the capitalist ideology (no offense meant, there were other factors also!). I say, and I am a capitalist myself, America is not a capitalist economy. It is an American economy. If it were a true capitalist, it would let its organisations fail. AIG is fine, understandable since a capitalist is a hypocrite as well. But others did never deserve the bailout. And what have we got in India, as a direct consequence of the so much popularized and talked about American bailouts? Indian bailouts. Governments recapitalizing PSU banks is another issue that i dare not elaborate! Real estate biggies who were punting like dirty, greedy hogs some years ago were begging for government policy reforms and debt restructuring. And the government gave in to most of those demands- are we really such socialists that we only heed to the demands of the rich who have grown to be so rich that they cannot afford to become slightly poorer, or slightly less richer than they are now? The government should have let them fail, go insolvent. What the governments have done now, worldwide, by granting bailout money to people who do not deserve it is they have created a larger system, increased the degree of freedom to abuse money and its derivatives. They have not reduced the cyclical nature of capitalist economies, they have only increased the size of the cycle. The next bust will be larger than this one, and one wonders where would the bailout money come from! And how much would it be. A large audit needs to be done- to find out how much cash, how much real money actually exists. But that is as impossible as getting PoK back from Pakistan!
Putting things into perspective for the investor community, investments should be made in the spirit of investment. According to Graham, Benjamin and Dodd, and i fully agree to this, an investment is a choice by an individual or an organization such as a pension fund, after at least some careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over a period of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment.
Stay away from punters and penny stocks. Invest in companies where you know for sure there is a good management, and use your own head, sensibly and immune to greed.
Happy Diwali and a Prosperous New Year to All Readers!
StocksCenter
How can one forget the wealth erosion that took place due to the events that started from US housing and ended up with the Satyam embarrassment. When greed sets in and you want to make gains that are not yours- when the money becomes dirty to own, when you lose the very sense of the value of that fifty rupee note, thinking it at par with the erstwhile ten rupee note, mister, you're soon going to be in a lot of problem.
Just when the traders and the investors brigade started splurging their (i would rather go as far to say) undeserving gains, just when they started thinking everything to be cheap, or rather inexpensive, they faltered into a mistake they will inevitably commit again.
It may be blasphemous for a bull to say that the markets should not stay up- but calling a spade a spade is not wrong by any calculation. Okay, one says- India did not have any problem. US had. We're good as we were. We can go on spending as we used to- markets will rise and we will be able to pay off our debts, since salaries will also rise given the markets to be a derivative of the corporate world. Sir, that is wrong.
What is happening in India now is what had been happening to the US in the last many decades. You'll probably believe this if i bring in some examples. AIG fell because it bought toxic assets, which were a product of the new breed of talented graduates who were being pulled into the financial markets lured by the big money. Talented people could have worked elsewhere and done something more contributory and productive rather than calculating arbitrage odds or punting on somebody else' behalf. That is what is happening here as well, well, off late one would stop me- since Lehman is dead now, but ask MBA wannabes or Commerce students and they'll tell you "I wanna do finance".
Emphasis needs to be laid on real sectors- such as biotechnology, IT, capital goods, and so on. Finance is just a net that facilitates other sectors. It cannot facilitate itself- understand this sentence, and you'll know what went wrong last year.
And coming over to the governments now. "America is a capitalist economy." My history teacher told me. America fought a cold war based on the capitalist ideology (no offense meant, there were other factors also!). I say, and I am a capitalist myself, America is not a capitalist economy. It is an American economy. If it were a true capitalist, it would let its organisations fail. AIG is fine, understandable since a capitalist is a hypocrite as well. But others did never deserve the bailout. And what have we got in India, as a direct consequence of the so much popularized and talked about American bailouts? Indian bailouts. Governments recapitalizing PSU banks is another issue that i dare not elaborate! Real estate biggies who were punting like dirty, greedy hogs some years ago were begging for government policy reforms and debt restructuring. And the government gave in to most of those demands- are we really such socialists that we only heed to the demands of the rich who have grown to be so rich that they cannot afford to become slightly poorer, or slightly less richer than they are now? The government should have let them fail, go insolvent. What the governments have done now, worldwide, by granting bailout money to people who do not deserve it is they have created a larger system, increased the degree of freedom to abuse money and its derivatives. They have not reduced the cyclical nature of capitalist economies, they have only increased the size of the cycle. The next bust will be larger than this one, and one wonders where would the bailout money come from! And how much would it be. A large audit needs to be done- to find out how much cash, how much real money actually exists. But that is as impossible as getting PoK back from Pakistan!
Putting things into perspective for the investor community, investments should be made in the spirit of investment. According to Graham, Benjamin and Dodd, and i fully agree to this, an investment is a choice by an individual or an organization such as a pension fund, after at least some careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over a period of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment.
Stay away from punters and penny stocks. Invest in companies where you know for sure there is a good management, and use your own head, sensibly and immune to greed.
Happy Diwali and a Prosperous New Year to All Readers!
StocksCenter
Q2 Results | TCS, Ultratech, BASF, GTL, TV18, Cheviot, Himadri Chemicals, Deep Ind, Monsanto
1. TCS [Click Here For Our Pre-Bonus Analysis]
Q2FY09 Standalone Results-
Net Profit: Rs. 1347.6 cr vs Rs. 1173.04 cr (YoY Q2) up 14.88%
Total Income: Rs. 5719.04 cr vs Rs. 5520.79 cr (YoY Q2) up 3.6%
Q2FY09 Consolidated Results-
Net Profit: Rs. 1642.21 cr vs Rs. 1270.99 cr (YoY Q2) up 29.2 %
Total Income: Rs. 7426.6 cr vs 6784.45 cr (YoY Q2) up 9.5%
Tata Consultancy Services Ltd (TCS) has informed BSE regarding a Press Release dated October 16, 2009, titled "Sterling Performance drives Revenue to Rs. 7,435 cr, up 3.2% Q-o-Q; Net Profits at Rs. 1,642 cr, up 7.1% Q-o-Q".
Fantastic Results! Totally in sync with our analysis!
Also, TCS declared interim dividend of Rs. 2 per share, record date being Oct 29, 2009.
2. Ultratech Cement Ltd
The Company has posted a net loss of Rs (378.785) million for the quarter ended September 30, 2009 as compared to net profit of Rs 144.918 million for the quarter ended September 30, 2008. Total Income has increased from Rs 643.188 million for the quarter ended September 30, 2008 to Rs 935.589 million for the quarter ended September 30, 2009.
Good news for Grasim shareholders! Cement earnings are expected to be good this time.
3. BASF India Ltd
Net Profit was up 30% at Rs. 34 cr (Y0Y Q2)
Total Income was up 14% at Rs. 368 cr (Y0Y Q2)
4. GTL Infrastructure Ltd
The Company has posted a net loss of Rs (378.785) million for the quarter ended September 30, 2009 as compared to net profit of Rs 144.918 million for the quarter ended September 30, 2008. Total Income has increased from Rs 643.188 million for the quarter ended September 30, 2008 to Rs 935.589 million for the quarter ended September 30, 2009.
5. Television 18 India Ltd
Q2FY09 Consolidated Results-
Net Profit: (loss) Rs. -26.25 cr vs (profit) Rs. 1.2 cr (YoY Q2)
Total Income: Rs. 63.73 cr vs Rs. 79.1 cr (YoY Q2)
6. Cheviot Company Ltd
Net Profit was down 5 % in Q2 YoY at Rs. 5.98 cr.
Total Income was up 2 % at Rs. 52.16 cr for this quarter.
7. Himadri Chemicals & Industries Ltd
Net Profit was up 23% in Q2 YoY at Rs. 36.88 cr.
Total Income was up 9.8% at Rs. 125 cr for this quarter.
8. Deep Industries Ltd
Net Profit was up 33% in Q2 YoY at Rs. 4.21 cr.
Total Income was up 68% at Rs. 14.3 cr.
9. Monsanto India Ltd
The company incurred loss (operational and net) of Rs. 5 cr and Rs. 4.5 cr respectively.
The net income was down at Rs. 69.81 cr vs 78.61 cr last year this quarter.
Q2FY09 Standalone Results-
Net Profit: Rs. 1347.6 cr vs Rs. 1173.04 cr (YoY Q2) up 14.88%
Total Income: Rs. 5719.04 cr vs Rs. 5520.79 cr (YoY Q2) up 3.6%
Q2FY09 Consolidated Results-
Net Profit: Rs. 1642.21 cr vs Rs. 1270.99 cr (YoY Q2) up 29.2 %
Total Income: Rs. 7426.6 cr vs 6784.45 cr (YoY Q2) up 9.5%
Tata Consultancy Services Ltd (TCS) has informed BSE regarding a Press Release dated October 16, 2009, titled "Sterling Performance drives Revenue to Rs. 7,435 cr, up 3.2% Q-o-Q; Net Profits at Rs. 1,642 cr, up 7.1% Q-o-Q".
Fantastic Results! Totally in sync with our analysis!
Also, TCS declared interim dividend of Rs. 2 per share, record date being Oct 29, 2009.
2. Ultratech Cement Ltd
The Company has posted a net loss of Rs (378.785) million for the quarter ended September 30, 2009 as compared to net profit of Rs 144.918 million for the quarter ended September 30, 2008. Total Income has increased from Rs 643.188 million for the quarter ended September 30, 2008 to Rs 935.589 million for the quarter ended September 30, 2009.
Good news for Grasim shareholders! Cement earnings are expected to be good this time.
3. BASF India Ltd
Net Profit was up 30% at Rs. 34 cr (Y0Y Q2)
Total Income was up 14% at Rs. 368 cr (Y0Y Q2)
4. GTL Infrastructure Ltd
The Company has posted a net loss of Rs (378.785) million for the quarter ended September 30, 2009 as compared to net profit of Rs 144.918 million for the quarter ended September 30, 2008. Total Income has increased from Rs 643.188 million for the quarter ended September 30, 2008 to Rs 935.589 million for the quarter ended September 30, 2009.
5. Television 18 India Ltd
Q2FY09 Consolidated Results-
Net Profit: (loss) Rs. -26.25 cr vs (profit) Rs. 1.2 cr (YoY Q2)
Total Income: Rs. 63.73 cr vs Rs. 79.1 cr (YoY Q2)
6. Cheviot Company Ltd
Net Profit was down 5 % in Q2 YoY at Rs. 5.98 cr.
Total Income was up 2 % at Rs. 52.16 cr for this quarter.
7. Himadri Chemicals & Industries Ltd
Net Profit was up 23% in Q2 YoY at Rs. 36.88 cr.
Total Income was up 9.8% at Rs. 125 cr for this quarter.
8. Deep Industries Ltd
Net Profit was up 33% in Q2 YoY at Rs. 4.21 cr.
Total Income was up 68% at Rs. 14.3 cr.
9. Monsanto India Ltd
The company incurred loss (operational and net) of Rs. 5 cr and Rs. 4.5 cr respectively.
The net income was down at Rs. 69.81 cr vs 78.61 cr last year this quarter.
Q2 Results | Supreme Industries, Jindal Saw, Hitachi, Merck, Bajaj Auto, UCO Bank, Merck, Eastern Silk
1. Supreme Industries
Sales grew 16.33% in this quarter vs corresponding quarter last year to 342.5 cr. Net profit grew 91% to 19.8 cr in this quarter vs corresponding quarter last year. The company had finished with its buy back offer last quarter. Consequently, promoter holding has increased from 45% to 49%.
2. Jindal Saw Ltd
Although the topline was lower in this quarter vs corresponding quarter last year. Gross turnover was down 7.7%. Consumption of raw materials and purchase of traded goods was down 41% to 663.2 cr. However, with an increased EBIDTA to net sales ratio of 18.44% vs 13.37%, net profit rose 46% to 146 cr. Better profitability of export orders led to the increased EBIDTA.
3. Hitachi Home & Life Solutions India Ltd
Sales rose 30% in this quarter vs corresponding quarter last year to 140 cr. Net profit was also up. It rose 77% to 8.75 cr.
4. Bajaj Auto Ltd
The Company has posted a net profit of Rs 4028.30 million for the quarter ended September 30, 2009 as compared to Rs 1849.10 million for the quarter ended September 30, 2008. Total Income has increased from Rs 25412.80 million for the quarter ended September 30, 2008 to Rs 29092.40 million for the quarter ended September 30, 2009.
5. UCO Bank Ltd
The Bank has posted a net profit of Rs 2077.20 million for the quarter ended September 30, 2009 as compared to Rs 1500.90 million for the quarter ended September 30, 2008. Total Income has increased from Rs 21879.80 million for the quarter ended September 30, 2008 to Rs 26098.20 million for the quarter ended September 30, 2009.
6. Merck Ltd
Top line grew by 20.3% in this quarter vs corresponding quarter last year to 130 cr. Net profit grew 50% 26.1 cr.
7. Eastern Silk Industries
Sales fell 24% in this quarter vs corresponding quarter last year to 120 cr. Net profit fell 74% to end at 2.86 cr.
Sales grew 16.33% in this quarter vs corresponding quarter last year to 342.5 cr. Net profit grew 91% to 19.8 cr in this quarter vs corresponding quarter last year. The company had finished with its buy back offer last quarter. Consequently, promoter holding has increased from 45% to 49%.
2. Jindal Saw Ltd
Although the topline was lower in this quarter vs corresponding quarter last year. Gross turnover was down 7.7%. Consumption of raw materials and purchase of traded goods was down 41% to 663.2 cr. However, with an increased EBIDTA to net sales ratio of 18.44% vs 13.37%, net profit rose 46% to 146 cr. Better profitability of export orders led to the increased EBIDTA.
3. Hitachi Home & Life Solutions India Ltd
Sales rose 30% in this quarter vs corresponding quarter last year to 140 cr. Net profit was also up. It rose 77% to 8.75 cr.
4. Bajaj Auto Ltd
The Company has posted a net profit of Rs 4028.30 million for the quarter ended September 30, 2009 as compared to Rs 1849.10 million for the quarter ended September 30, 2008. Total Income has increased from Rs 25412.80 million for the quarter ended September 30, 2008 to Rs 29092.40 million for the quarter ended September 30, 2009.
5. UCO Bank Ltd
The Bank has posted a net profit of Rs 2077.20 million for the quarter ended September 30, 2009 as compared to Rs 1500.90 million for the quarter ended September 30, 2008. Total Income has increased from Rs 21879.80 million for the quarter ended September 30, 2008 to Rs 26098.20 million for the quarter ended September 30, 2009.
6. Merck Ltd
Top line grew by 20.3% in this quarter vs corresponding quarter last year to 130 cr. Net profit grew 50% 26.1 cr.
7. Eastern Silk Industries
Sales fell 24% in this quarter vs corresponding quarter last year to 120 cr. Net profit fell 74% to end at 2.86 cr.
Refineries: Expecting good results
GRMs world wide are set to improve now, as crude prices have moved from a lower to a higher level. Indian refineries such as MRPL and Chennai Petroleum Corp should be posting good results this quarter. Chennai Petro disappointed last quarter with losses, which would now be recovered, however, as crude oil prices are in a slower uptrend the next quarter's growth may be solely dependent upon the refineries' efficiency per se. MRPL posted profits last quarter, and with ONGC allowing huge investments in this PSU refinery, MRPL is seen as a growing company. It would also have good margins this time- and their (CPCL and MRPL) stock prices would break out of their current trading levels on the announcement of the results. MRPL is finding heavy resistance at the levels of 93, and has good support at 80. This is a good opportunity for short termers and long termers. For short termers, buying at this level and selling after results would be a good option- and for the long termers, MRPL has target of 200 plus, with improving GRMs.
As far as Reliance is concerned, much cannot be said about its results given the diversification of the company in many areas. However, they would be a lot better given increase in crude oil prices in this year, in tandem with the other refineries- if not better.
As far as Reliance is concerned, much cannot be said about its results given the diversification of the company in many areas. However, they would be a lot better given increase in crude oil prices in this year, in tandem with the other refineries- if not better.
Bharti Airtel - Reliance Communications - Idea Cellular | Stocks to watch out for
Now, TRAI is back to spoil the show. Telecom- the sector which should be as safe as FMCGs for investors to put their money, is not so courtesy of TRAI. These stocks took heavy battering in last week's trade, and would be interesting to see how markets absorb the negative sentiment. Bharti Airtel would be a BUY if it goes sub 300 and Reli Comm would be a BUY if it goes sub 200.
Bharati Shipyard - ABG Shipyard - Great Offshore update | Stocks to watch out for
These three have remained in the watch for quite some time now! Last week, Bharati Shipyard upped its stake in Great Offshore to 24%, now flirting with the 26% mark that would allow it to have management control of India's largest private integrated offshore services provider. Interestingly, Bharati Shipyard bought off shares held by Muljis, the promoters of GE Shipping.
RIL-RNRL | Stocks to watch out for
Just heard news that Anil Ambani requested cease fire, and said he loves his elder brother- asking him to gift their mother a Diwali gift of their reunion. RIL said the current matter was not personal, but was a corporate battle having interest of millions of shareholders. Mukesh Ambani is seen getting ready to play hardball with the younger brother.
Larsen and Toubro | Stocks to watch out for
The Sensex superstar L&T had raised quite an amount of money by a QIP last week, and had seen its stock hammered- in sync with the market. According to analysts, shareholders were unhappy by the equity dilution! Let's see how this moves next week. Tremendous volatility is not expected, however some big moves are possible.
Grasim Industries and Ultratech Cements | Stock to watch out for
After the demerger announcement, Grasim has fallen from levels of 2800 to 2350-2400 trading levels. It would be interesting to see a bounce back in Grasim, and its sustenance there. In FII to FII trades earlier last quarter, Grasim had traded at 2900. KM Birla is saying the offer is pro shareholders, and after being caught in an initial selling frenzy, Grasim would be seen to consolidate after falling about another 100-150 rupees maybe.
Indiabulls Power IPO Information
Issue Opens: 12 October 2009 to 15 October 2009
Issue Price Band: Rs. 40 to Rs. 45
Face Value: Rs. 10
Issue size: Rs. 1360 - 1530 cr
Incorporated in 2007, Indiabulls Power Limited is a power project development company. The company develops and intends to operate and maintain power projects in India. The Company is a subsidiary of Indiabulls Real Estate, listed on the bourses.
It doesn't have, at the moment, any operating power plants.
Issue Price Band: Rs. 40 to Rs. 45
Face Value: Rs. 10
Issue size: Rs. 1360 - 1530 cr
Incorporated in 2007, Indiabulls Power Limited is a power project development company. The company develops and intends to operate and maintain power projects in India. The Company is a subsidiary of Indiabulls Real Estate, listed on the bourses.
It doesn't have, at the moment, any operating power plants.
Indiabulls Power Ltd has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. These projects include:
1. Amravati Phase-I (1320 MW)
2. Amravati Phase-II (1320 MW)
3. Nasik (1335 MW) in Maharashtra
4. Bhaiyathan Thermal Power Project (1320 MW)
5. Chhattisgarh Power Project (1320 MW) in the State of Chhattisgarh.
Indiabulls is also developing four medium size Hydro Power Projects in Arunachal Pradesh aggregating to 167 MW. Indiabulls has also entered into MoUs with the Govt. of Madhya Pradesh and Jharkhand for setting up of 2640 MW & 1320 MW Thermal Power Projects.
Reliance declares results
The topline has increased 5% from 139,269 crores to 146,328 crores.
Operational profit has remained the same at 18488 crores vis-a-vis 18459 cr the year ago.
Net profit however decreased 21% to 15,309 crores as compared to nearly 20,000 cr the year before.
A decrease in the bottom line was expected owing to the bad year for refiners, but Reliance in particular has stood stronger than its peers. However, since the results of RPL have been accommodated in the results of RIL, it is safe to believe that RPL did not have a great year. But since it did not have a full operational year, the next year's results would be more determining of RPL's capability to add to RIL's numbers.
You can read the detailed result here: http://www.bseindia.com/xml-data/corpfiling/announcement/Reliance_Industries_Ltd_071009.pdf
Operational profit has remained the same at 18488 crores vis-a-vis 18459 cr the year ago.
Net profit however decreased 21% to 15,309 crores as compared to nearly 20,000 cr the year before.
A decrease in the bottom line was expected owing to the bad year for refiners, but Reliance in particular has stood stronger than its peers. However, since the results of RPL have been accommodated in the results of RIL, it is safe to believe that RPL did not have a great year. But since it did not have a full operational year, the next year's results would be more determining of RPL's capability to add to RIL's numbers.
You can read the detailed result here: http://www.bseindia.com/xml-data/corpfiling/announcement/Reliance_Industries_Ltd_071009.pdf
Reliance Industries board recommends bonus issue!
The BSE announcement:
Reliance Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 07, 2009, inter alia, has recommended, subject to the approval of the shareholders, issue of Bonus shares in the ratio of one equity share of Rs. 10/- each fully paid up for every one equity share of Rs. 10/- each of the Company.
Further, the Board has declared a dividend of Rs. 13 (Rupees thirteen only) per fully paid-up equity share of Rs. 10/- each.
Let us all say, Boom!
Reliance Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 07, 2009, inter alia, has recommended, subject to the approval of the shareholders, issue of Bonus shares in the ratio of one equity share of Rs. 10/- each fully paid up for every one equity share of Rs. 10/- each of the Company.
Further, the Board has declared a dividend of Rs. 13 (Rupees thirteen only) per fully paid-up equity share of Rs. 10/- each.
Let us all say, Boom!
If you're still bullish in the short term...
There are a few gaps/opportunities!
1. Bharti/R Comm:
Wait a while till these stabilize. A 10-15% upside is highly probable after they stabilize. TRAI announcements and bullying has never been good for the Telecom providers per se. Let the markets digest the shock. R Comm would be a good buy at sub 250 levels. Bharti, on the other hand is an investment pick which i would cover later this pick in a much detailed fundamental analysis.
2. Neyvelli Lignite:
Buy on this stock if it falls below 120, for the shorter term the target is around 135-140 trading range.
3. RCF:
Our older analysis was SPOT ON for this stock- 74 was the high it reached last week, and has come down significantly since then. We recommend a buy again on this one, albeit a little later at around 64-65 with a target trading range of 73-76.
4. MRPL:
Again, this was a hit last time, 100% accuracy! It now has retreated to levels of 85, and has good support at 80. One can buy for the shorter term, at around 81-82. Short term target is 89-90 in this case. If it doesn't fall to that level, the stock would swing higher to 92-94.
1. Bharti/R Comm:
Wait a while till these stabilize. A 10-15% upside is highly probable after they stabilize. TRAI announcements and bullying has never been good for the Telecom providers per se. Let the markets digest the shock. R Comm would be a good buy at sub 250 levels. Bharti, on the other hand is an investment pick which i would cover later this pick in a much detailed fundamental analysis.
2. Neyvelli Lignite:
Buy on this stock if it falls below 120, for the shorter term the target is around 135-140 trading range.
3. RCF:
Our older analysis was SPOT ON for this stock- 74 was the high it reached last week, and has come down significantly since then. We recommend a buy again on this one, albeit a little later at around 64-65 with a target trading range of 73-76.
4. MRPL:
Again, this was a hit last time, 100% accuracy! It now has retreated to levels of 85, and has good support at 80. One can buy for the shorter term, at around 81-82. Short term target is 89-90 in this case. If it doesn't fall to that level, the stock would swing higher to 92-94.
Ultratech finds the offer attractive
Ultratech Cement Ltd has informed BSE that the Board of Directors the Company at its meeting held on October 06, 2009, inter alia, has deliberated upon the proposal received from Samruddhi Cement Ltd ("Samruddhi") in relation to a potential consolidation of Samruddhi and the Company.
The Board, having found the proposal attractive, constituted and authorized a Committee of Directors and Officers of the Company to, inter alia, evaluate and consider the proposal in consultation with legal and financial advisors.
The Committee is expected to revert to the Board with its recommendations by 1st week of November, 2009.
The Board, having found the proposal attractive, constituted and authorized a Committee of Directors and Officers of the Company to, inter alia, evaluate and consider the proposal in consultation with legal and financial advisors.
The Committee is expected to revert to the Board with its recommendations by 1st week of November, 2009.
Grasim, Bharti Airtel cement pending Sensex correction!
After a shorter week, the stock markets finally witnessed an inevitable correction today. The major losers on the Sensex were Bharti Airtel, which was down nearly 8%, dropping below the 400 mark during the day's trade. Another big blow to the Sensex was Grasim. The markets did not welcome the proposed restructuring of Grasim, pushing it down more than 7%.
StocksCenter view of Grasim is contrary to what happened today in the stock market. We feel that since Samruddhi would remain a subsidiary of Grasim, the consolidated results of Grasim would not be affected adversely, only there would be an increase in minority interest in its subsidiary. The shareholders of Grasim would get additional and direct exposure to this subsidiary, which is planned to be merged with Ultratech in a process that would create the largest cement maker in the country.
The global markets were in the red as well, however in early trades, the US markets bounced back after a battering. So, we should see a better Tuesday tomorrow.
Bharati Shipyard formally announced the revised Open Offer for Great Offshore shareholders today- Rs. 560 a share.
The week has Infosys results coming up which would shape investor sentiments towards IT for a nearer term.
The markets are poised for a big move in this month - on either side, but the current sentiment makes one think it is the upper side. Also, the month after the next will be even more interesting as the speed of October will have to be absorbed.
All in all, a satisfying trade today.
StocksCenter view of Grasim is contrary to what happened today in the stock market. We feel that since Samruddhi would remain a subsidiary of Grasim, the consolidated results of Grasim would not be affected adversely, only there would be an increase in minority interest in its subsidiary. The shareholders of Grasim would get additional and direct exposure to this subsidiary, which is planned to be merged with Ultratech in a process that would create the largest cement maker in the country.
The global markets were in the red as well, however in early trades, the US markets bounced back after a battering. So, we should see a better Tuesday tomorrow.
Bharati Shipyard formally announced the revised Open Offer for Great Offshore shareholders today- Rs. 560 a share.
The week has Infosys results coming up which would shape investor sentiments towards IT for a nearer term.
The markets are poised for a big move in this month - on either side, but the current sentiment makes one think it is the upper side. Also, the month after the next will be even more interesting as the speed of October will have to be absorbed.
All in all, a satisfying trade today.
Grasim to demerge. Shareholders to get direct stake in new company.
Grasim has informed that in order to create a "pure play" cement company, it will hive off its cement business to another entity.
Cement business accounts for around 70% of Grasim's revenues.
The shareholders of Grasim will get 1 share of the new entity, ie Samruddhi Cement for every share of Grasim they hold. The existing shares of Grasim will continue to remain as well. Finally, in the new entity, Grasim will hold 65% stake, while the shareholders will hold a direct 35% in the company. After the procedure, Samruddhi Cement would be listed.
Finally, a merger of Samruddhi and Ultratech is planned.
Grasim will continue to do its other businesses, viz VSF. It has announced a Rs. 1000 cr investment in Gujarat for a VSF plant that will commence production in FY13.
Kumar Mangalam Birla said: "This is this is part of Grasim's continuing efforts ot improve shareholder value... the demerger opens up new opportunities for financing cement growth.."
How the markets react to this would be interesting to see on Monday.
Read the official announcement here.
This looks good!
Cement business accounts for around 70% of Grasim's revenues.
The shareholders of Grasim will get 1 share of the new entity, ie Samruddhi Cement for every share of Grasim they hold. The existing shares of Grasim will continue to remain as well. Finally, in the new entity, Grasim will hold 65% stake, while the shareholders will hold a direct 35% in the company. After the procedure, Samruddhi Cement would be listed.
Finally, a merger of Samruddhi and Ultratech is planned.
Grasim will continue to do its other businesses, viz VSF. It has announced a Rs. 1000 cr investment in Gujarat for a VSF plant that will commence production in FY13.
Kumar Mangalam Birla said: "This is this is part of Grasim's continuing efforts ot improve shareholder value... the demerger opens up new opportunities for financing cement growth.."
How the markets react to this would be interesting to see on Monday.
Read the official announcement here.
This looks good!
Pipavav Shipyard IPO Allotment | Check Online
Check the allotment status here:
http://karvy.com/ipoStatus/
Scroll down the list of Companies to Pipavav, and enter your application number.
It may list next week.
Happy earnings!
http://karvy.com/ipoStatus/
Scroll down the list of Companies to Pipavav, and enter your application number.
It may list next week.
Happy earnings!
Grasim to restructure business?
According to an announcement to the Bombay Stock Exchange, the Board of Grasim [BSE: 500300] will meet on Oct 3, 2009 ie tomorrow to consider a proposal for the restructuring of business.
Larsen and Toubro had sold its residual stake in Ultratech Cement earlier this year. It may be possible now, that Grasim may transfer its cement business to Ultratech. There is another possibility- a merger of Ultratech and Grasim.
There were rumours of the latter case earlier this year, when Grasim declined them- saying there "was not much value in merging with Ultratech".
If Grasim hives off its cement biz to Ultratech, that would be a serious blow to its top line as well as its bottom line. Cement accounted for nearly 80% of its revenue last year. And thus, the latter case may be more probable.
Let's see what happens- if you're a Grasim investor, you better watch tomorrow's news!
Larsen and Toubro had sold its residual stake in Ultratech Cement earlier this year. It may be possible now, that Grasim may transfer its cement business to Ultratech. There is another possibility- a merger of Ultratech and Grasim.
There were rumours of the latter case earlier this year, when Grasim declined them- saying there "was not much value in merging with Ultratech".
If Grasim hives off its cement biz to Ultratech, that would be a serious blow to its top line as well as its bottom line. Cement accounted for nearly 80% of its revenue last year. And thus, the latter case may be more probable.
Let's see what happens- if you're a Grasim investor, you better watch tomorrow's news!
Suggestions and Opinion for the retail investor
Okay. So the bull has been pushed into the ring. But, can you bear it? I could not help myself against that pun!
Some of the basic questions that you should ask yourself, if you have not really asked this to yourself before:
"When am I going to need that money that i invested in the markets?"
If your answer is "soon", then, fellow, you can disinvest. Yes, sell your holdings- as you are getting definite returns right now. The stock prices are not attractive enough to buy right now- which means, they should be attractive enough to sell. And if you have a reason to sell, that is, you are going to need that money for whatever purpose- it's better to get out and put it into the bank/make an FD.
"But my portfolio is still in the red/I have not recovered my losses."
Now, you are in a precarious situation. If you really need that money, go ahead and sell. It may be possible that the stocks that you hold- and given the recent bull run where most of the folks are back in the green, and you haven't, the stocks that you hold aren't really worth the wait if they're penny stocks. If they are index stocks or good fundamental companies, you may wait, but if it's the pennies- one cannot be sure to say when they'll bounce. It's odd, but penny stocks and long term investments don't go together. If you didn't know this, now you do- and you're a lot wiser, trust me. Coming back to the money, if you do not require that money for a few quarters, you can stay invested, and earn a bit more- do not freak out when the markets correct in the next month- it's October, baby!
"Okay, I don't need that money for now, not even for the year."
You should re-analyse your situation before you come to this answer. As a rule, you should invest only that portion of your savings which you are sure you're never going to need- ever.
"Yes, I'm sure."
Then you should ask yourself.
"What is my risk appetite?"
Basically, this question asks you whether you want to make a killing at the stock markets- risking your investment to the edge, or you want to play safe, and still get better returns than that normal bank fixed deposit, the post office scheme or that mutual fund manager. In order to facilitate a better answer, I'll name the two fellows. The first case would be Jack Sparrow. And the second would be Vito Corleone. Okay, you may not agree with the analogies, but anyways, that's the names i would employ.
Some of the basic questions that you should ask yourself, if you have not really asked this to yourself before:
"When am I going to need that money that i invested in the markets?"
If your answer is "soon", then, fellow, you can disinvest. Yes, sell your holdings- as you are getting definite returns right now. The stock prices are not attractive enough to buy right now- which means, they should be attractive enough to sell. And if you have a reason to sell, that is, you are going to need that money for whatever purpose- it's better to get out and put it into the bank/make an FD.
"But my portfolio is still in the red/I have not recovered my losses."
Now, you are in a precarious situation. If you really need that money, go ahead and sell. It may be possible that the stocks that you hold- and given the recent bull run where most of the folks are back in the green, and you haven't, the stocks that you hold aren't really worth the wait if they're penny stocks. If they are index stocks or good fundamental companies, you may wait, but if it's the pennies- one cannot be sure to say when they'll bounce. It's odd, but penny stocks and long term investments don't go together. If you didn't know this, now you do- and you're a lot wiser, trust me. Coming back to the money, if you do not require that money for a few quarters, you can stay invested, and earn a bit more- do not freak out when the markets correct in the next month- it's October, baby!
"Okay, I don't need that money for now, not even for the year."
You should re-analyse your situation before you come to this answer. As a rule, you should invest only that portion of your savings which you are sure you're never going to need- ever.
"Yes, I'm sure."
Then you should ask yourself.
"What is my risk appetite?"
Basically, this question asks you whether you want to make a killing at the stock markets- risking your investment to the edge, or you want to play safe, and still get better returns than that normal bank fixed deposit, the post office scheme or that mutual fund manager. In order to facilitate a better answer, I'll name the two fellows. The first case would be Jack Sparrow. And the second would be Vito Corleone. Okay, you may not agree with the analogies, but anyways, that's the names i would employ.
Portfolio reModelling for Jack Sparrow!
If you're Jack Sparrow, ie, you are ready to go whatever distance- to get a killing, which would also imply that you're ready to hold your stocks for verrrry long, you can do a couple-a things.
First and foremost, and this is the general rule that both Jack Sparrow and Vito Corleone follow- do not go by market speculation or punters. Do not go for penny stocks/tips and the like. You would never know when to get out since you did not know when you went in- trust me on this one. Your portfolio should have stocks that have tremendous potential on the upside. Okay, I knew this, how do i identify such stocks? That's tricky, but if you had followed some of my earlier posts/mails, you would know what stocks i'm talking about. I'll suggest a few, but bear in mind that the portfolio i model below is very risky.
1. Bharati Shipyard [CMP: 205, 52wk low: 45, reco: 51.1]
This should comprise of around 15-20% of your holding. The stock had gone to highs of 800, and considering that, it is at tremendous discount at the moment. Also, the company is gearing up to take over Great Offshore, and the battle is being fiercely contested by ABG Shipyard.
2. Spanco [CMP: 63.5, 52wk low: 16, reco:45]
This should be around 10-15% of your holding, depending on your risk appetite for S group stocks and smallcaps.
3. Asian Electronics [CMP: 48.05, 52wk low:17.2]
This is a punter's call. The company is recuperating, after going down hard. If the company gets back on its feet, the stock may easily test 500. It should be 5% of your portfolio, not more given the extremity of the risk involved.
4. Wire & Wireless [CMP: 22.05, 52wk low:7.8]
A loss making unit of Subhash Chandra- this saw highs of 100+ on the bourses when the sensex was at 21000 the last time it was. Fund raising is on, and if, if this manages to break even, all hell may break loose on this one- it'ld boom like anything. 10% is what you can bet on this one.
5. Vikash Metal & Power [CMP:21.8, 52wk low:4.8]
This saw highs of around 50, and this time it may go even further. It was planning a big power project in Bihar which is said to be operational by 2011. Another 5% here.
6. Technocraft Industries [CMP:42.2, 52wk low:17]
This hasn't really seen great heights till now, and is a good contender for big bull runs. A dividend paying company, with increasing toplines, this is a favorite for long term investors, and one of my personal favorite. Keep 15-20% here. This is a good bet.
7. The rest of the portfolio should be cash/contrarian stocks such as the FMCG ones- HUL, ITC, Castrol, etc. or pharma stocks which you can use to sell and average out (do not avg out Asian Electronics- that's a total gamble) one of the above, when they flunk.
First and foremost, and this is the general rule that both Jack Sparrow and Vito Corleone follow- do not go by market speculation or punters. Do not go for penny stocks/tips and the like. You would never know when to get out since you did not know when you went in- trust me on this one. Your portfolio should have stocks that have tremendous potential on the upside. Okay, I knew this, how do i identify such stocks? That's tricky, but if you had followed some of my earlier posts/mails, you would know what stocks i'm talking about. I'll suggest a few, but bear in mind that the portfolio i model below is very risky.
1. Bharati Shipyard [CMP: 205, 52wk low: 45, reco: 51.1]
This should comprise of around 15-20% of your holding. The stock had gone to highs of 800, and considering that, it is at tremendous discount at the moment. Also, the company is gearing up to take over Great Offshore, and the battle is being fiercely contested by ABG Shipyard.
2. Spanco [CMP: 63.5, 52wk low: 16, reco:45]
This should be around 10-15% of your holding, depending on your risk appetite for S group stocks and smallcaps.
3. Asian Electronics [CMP: 48.05, 52wk low:17.2]
This is a punter's call. The company is recuperating, after going down hard. If the company gets back on its feet, the stock may easily test 500. It should be 5% of your portfolio, not more given the extremity of the risk involved.
4. Wire & Wireless [CMP: 22.05, 52wk low:7.8]
A loss making unit of Subhash Chandra- this saw highs of 100+ on the bourses when the sensex was at 21000 the last time it was. Fund raising is on, and if, if this manages to break even, all hell may break loose on this one- it'ld boom like anything. 10% is what you can bet on this one.
5. Vikash Metal & Power [CMP:21.8, 52wk low:4.8]
This saw highs of around 50, and this time it may go even further. It was planning a big power project in Bihar which is said to be operational by 2011. Another 5% here.
6. Technocraft Industries [CMP:42.2, 52wk low:17]
This hasn't really seen great heights till now, and is a good contender for big bull runs. A dividend paying company, with increasing toplines, this is a favorite for long term investors, and one of my personal favorite. Keep 15-20% here. This is a good bet.
7. The rest of the portfolio should be cash/contrarian stocks such as the FMCG ones- HUL, ITC, Castrol, etc. or pharma stocks which you can use to sell and average out (do not avg out Asian Electronics- that's a total gamble) one of the above, when they flunk.
Vito Corleone's portfolio remodelling
If you think you're Vito Corleone, ie you want to play safe, the reverse would apply, albeit even more moderately. You are one of those types who would always want to invest in good companies, for a long term. Short term gains or losses do not bother you, while sure long term gains is your sole aim.
1. Clariant Chemicals [CMP: 362] - 20 to 25%
An MNC paying good dividends. Good fundamentals, and great balance sheet. Negative? At the all time high right now.
2. Lupin [CMP: 1136] - 10-15%
Again, great fundamentals. It's been doing some good M&As lately, and may surprise you with its results.
3. HUL - 20-25%
The safety net of HUL is a must for Vito Corleone, who would insist on investing rather not too rash!
4. Rei Agro - 5%
Beaten down stock, will roar when it gets into the groove.
5. Pfizer/Lakshmi Machine Works/Bharti Airtel/Biocon/Punj Lloyd/TCS
These 6 should make up the rest of your portfolio considering your choice.
Notice the sectors i'm bullish upon. It's the same as i discussed before, much before this bull rally. I'm still bullish on the same! If you know what you're doing, and it's contrary to what others are saying, you're probably doing the right thing. And that's what being Vito Corleone is, isn't it!?
And yes, tighten your seat belts, it can go anyway from here!
1. Clariant Chemicals [CMP: 362] - 20 to 25%
An MNC paying good dividends. Good fundamentals, and great balance sheet. Negative? At the all time high right now.
2. Lupin [CMP: 1136] - 10-15%
Again, great fundamentals. It's been doing some good M&As lately, and may surprise you with its results.
3. HUL - 20-25%
The safety net of HUL is a must for Vito Corleone, who would insist on investing rather not too rash!
4. Rei Agro - 5%
Beaten down stock, will roar when it gets into the groove.
5. Pfizer/Lakshmi Machine Works/Bharti Airtel/Biocon/Punj Lloyd/TCS
These 6 should make up the rest of your portfolio considering your choice.
Notice the sectors i'm bullish upon. It's the same as i discussed before, much before this bull rally. I'm still bullish on the same! If you know what you're doing, and it's contrary to what others are saying, you're probably doing the right thing. And that's what being Vito Corleone is, isn't it!?
And yes, tighten your seat belts, it can go anyway from here!
Subscribe to:
Posts (Atom)