This company belongs to well known Dhoot’s group with wide spread interest in consumer goods,Oil ,Telecom and Power . Last year turnover of this well diversified company was whopping 15000 Crore for the year ended Dec’2010 which was for 15 months period. Based on last year Balance sheet,current Book value of the company is over Rs 300/-.Current market price of this share is Rs 170/- which is grossly under priced considering the expected EPS of Rs 25/- for the current year .
Eventhough Videocon Industries is present in diversified area’s like Oil,Telecom,Power and consumer Goods it’s current market value doesn’t reflect the true value of this company. According to me within couple years this company will split into 4 to 5 companies based on the lines of it’soperation . There will be a huge unlocking of value at that time , if you have the patience to hold on to this share for couple of years
Friday 18 November 2011
Friday 7 October 2011
HOW HDFC LIFE CHEATED/LOOTED COMMON PEOPLE LIKE ME ?
Beware of HDFC LIFE Insurance policies. For Companies like HDFC Life , Insurance Money is an easy money .They deduct so much amount from our hard earned annual premiums in the form of various charges like Premium Allocation Charges, Fund Management Charges, Policy Administration charges , Switching charges etc etc . If you are surviving your policy period ,you are under total loss . You only earn, when you die incase of HDFC life. That also you have to die early .Common people unknowingly fell prey to HDFC LIFE as Branch Managers are involved in promoting new policies because of very high % of commission. I had taken an insurance policy from HDFC Life last year by the name “HDFC SL ENDOWMENT CHAMPION SUVIDHA” with an annual Premium of One Lakh.Normaly I don't take such policies ,but in case I took the policy because of the Hdfc Bank Manger .
Pls see how they cheated /looted me by charging various charges
1. Straight away HDFC LIFE deducted Rs 10000/- from my premium as Premium Allocation Charges. According to me this money they use to pay commissions to the agents. HDFC LIFE uses your own money to pay the commission to the agents for canvassing you to take the policy
After this deduction of Rs 10000/- my corpus available for investment stands reduced to Rs 90000/-
2. Now they started charging me Rs 950/- Per month as Monthly Policy charges. Due to this my corpus further reduced by Rs 11400/- to Rs 78600/-
3. Another deduction is the Fund Management Charges of 1.25 % of Fund Value which is coming to Rs1125 /- with this reduction ,my corpus stands at 77475 /-
Ie a total deduction of Rs 22525/- HDFC Life looted me Rs 22525/- for my Life cover in a single year .This Cheating is exclusive of the money I lost due to the unprofessional way of investment in the share market . My total corpus of one lakh has been reduced to Rs 63,248/- with the addition of above loss. Because of HDFC LIFE I lost Rs 36752 /- by various means in one year. If this is not Looting what else is Looting.
This looting is very significant as HDFC charges all these amounts by reducing the no. of units allotted to you. In a very bad year your entire corpus can vanish into thin air.
I hereby recommend my readers to never invest in Private Insurance Companies like HDFC LIFE unless you are sure about your death.
I am forwarding this blog to hdfc Chairman and to the officials of HDFC LIFE for their comment. If my working is wrong I will publish an unconditional apology in my blog.
Pls see how they cheated /looted me by charging various charges
1. Straight away HDFC LIFE deducted Rs 10000/- from my premium as Premium Allocation Charges. According to me this money they use to pay commissions to the agents. HDFC LIFE uses your own money to pay the commission to the agents for canvassing you to take the policy
After this deduction of Rs 10000/- my corpus available for investment stands reduced to Rs 90000/-
2. Now they started charging me Rs 950/- Per month as Monthly Policy charges. Due to this my corpus further reduced by Rs 11400/- to Rs 78600/-
3. Another deduction is the Fund Management Charges of 1.25 % of Fund Value which is coming to Rs1125 /- with this reduction ,my corpus stands at 77475 /-
Ie a total deduction of Rs 22525/- HDFC Life looted me Rs 22525/- for my Life cover in a single year .This Cheating is exclusive of the money I lost due to the unprofessional way of investment in the share market . My total corpus of one lakh has been reduced to Rs 63,248/- with the addition of above loss. Because of HDFC LIFE I lost Rs 36752 /- by various means in one year. If this is not Looting what else is Looting.
This looting is very significant as HDFC charges all these amounts by reducing the no. of units allotted to you. In a very bad year your entire corpus can vanish into thin air.
I hereby recommend my readers to never invest in Private Insurance Companies like HDFC LIFE unless you are sure about your death.
I am forwarding this blog to hdfc Chairman and to the officials of HDFC LIFE for their comment. If my working is wrong I will publish an unconditional apology in my blog.
Wednesday 11 May 2011
Pls do not invest in IPO's
Pls reade why you should not invest in IPO's
Above is the summary of my study of IPO’s made since 2008 . This study is based on the assumption that the initial allotee has not sold his shares till today .
Following facts came out from this study
1. 3 out of 4 IPO’s returned loss to the initial applicant .
2. Grading of IPO’s are nothing to do with the returns offered as some of the
IPO’s with grades of 1 returned more than 100 % return to the investors.
Grade 1 means “ company with poor fundamentals”. Examples are Bhagawati
Banquets & Hotels Limited in 2008 and Edserv Softsystems Limited in 2009.
3. Highest return of over 400 % is given by Jubiliant Foodworks Limited who’s IPO
was in 2010
4. Everonn Systems India Limited and Page Industries Limited , both of these
companies has given more than 300 % returns to it’s initial investors
5. Only 20 company’s generated more than 100% returns to it’s initial
investors from a total of 222 IPO’s made Since 2008
6. Eventhough 57 IPO’s were profitable to the initial allotte’s but the
profitability was less than 100% For 37 companies
Conclusion :
Do not invest your hard earned money in IPO’s at the
time of initial issue. You can invest in IPO’s at a much lesser rate
after the listing . Only Promoters are making money from IPO’s. According
to me these Promoters have cheated Indian Investors to the tune of Billions
and Billions and we need another JPC to investigate this cheating .
Sr.No,Year,TotalIPO's , ProfitableIPO's , Loss IPO's , % of ProfitableIPO's
1 2011 9 5 4 55.56
2 2010 71 19 52 26.76
3 2009 53 14 39 26.42
4 2008 89 19 70 21.35
Total 222 57 165 25.68
Above is the summary of my study of IPO’s made since 2008 . This study is based on the assumption that the initial allotee has not sold his shares till today .
Following facts came out from this study
1. 3 out of 4 IPO’s returned loss to the initial applicant .
2. Grading of IPO’s are nothing to do with the returns offered as some of the
IPO’s with grades of 1 returned more than 100 % return to the investors.
Grade 1 means “ company with poor fundamentals”. Examples are Bhagawati
Banquets & Hotels Limited in 2008 and Edserv Softsystems Limited in 2009.
3. Highest return of over 400 % is given by Jubiliant Foodworks Limited who’s IPO
was in 2010
4. Everonn Systems India Limited and Page Industries Limited , both of these
companies has given more than 300 % returns to it’s initial investors
5. Only 20 company’s generated more than 100% returns to it’s initial
investors from a total of 222 IPO’s made Since 2008
6. Eventhough 57 IPO’s were profitable to the initial allotte’s but the
profitability was less than 100% For 37 companies
Conclusion :
Do not invest your hard earned money in IPO’s at the
time of initial issue. You can invest in IPO’s at a much lesser rate
after the listing . Only Promoters are making money from IPO’s. According
to me these Promoters have cheated Indian Investors to the tune of Billions
and Billions and we need another JPC to investigate this cheating .
Sunday 24 April 2011
FUTURE VENTURES INDIA LIMITED ----> An IPO from a company with good Pedigree
FVIL a company from the Future group managed by the famous Kishore Biyani is coming out an IPO of 750 crores through 100 % book building process. Price range has been fixed as Rs10 to Rs 11. Issues opens for subscription on 25 April and closes on 28 April. Care has assigned a grade of “3” which indicates average fundamentals to this IP0. FVIL has kept the price band relatively at a lower side even though the name “Future” commands a very good premium.
Even though their business plan is not very clear , i advice the investors to go for this IPO because of the track record of the management as well as the business names associated with this group like Pantaloon Retail,Future Media,Future Brands, Future supply Chain and Future Bazaar,Central,Big Bazaar,Food Bazaar , Home Town , E- Zone etc etc . According to me you will get more than 100 % appreciation from this issue provided you sell immediately on listing.
Even though their business plan is not very clear , i advice the investors to go for this IPO because of the track record of the management as well as the business names associated with this group like Pantaloon Retail,Future Media,Future Brands, Future supply Chain and Future Bazaar,Central,Big Bazaar,Food Bazaar , Home Town , E- Zone etc etc . According to me you will get more than 100 % appreciation from this issue provided you sell immediately on listing.
Saturday 23 April 2011
Paramount Printpackaging ----> An issue to make money for Promoters
Investment in this IPO is not advised due to following reasons
1. Issue price is in the range of Rs 32/- to Rs 35/- which is very high for a company which is very week fundamentally. Even I will not advice investment in this IPO even the issue was at its face value i.e. Rs 10/-
2. ICRA has assigned an IPO grading of ‘2’ which indicates below average fundamentals
3. Promoters Logic behind starting this company is not clear as they have another company in operation in the same field which is 100% owned by the promoters. Hence the priority of the promoters will be always towards 100% owned company
4. Even two years ago also this Company was a loss making unit
5. Company has made defaults in payments towards the statutory requirements like professional tax, provident fund etc etc and the cases are going in the courts towards this defaults.
6.Company operates in an area where there is a lot of competition from small scale sector as the investment required for starting such companies are very less and technology used in such companies are very old.
1. Issue price is in the range of Rs 32/- to Rs 35/- which is very high for a company which is very week fundamentally. Even I will not advice investment in this IPO even the issue was at its face value i.e. Rs 10/-
2. ICRA has assigned an IPO grading of ‘2’ which indicates below average fundamentals
3. Promoters Logic behind starting this company is not clear as they have another company in operation in the same field which is 100% owned by the promoters. Hence the priority of the promoters will be always towards 100% owned company
4. Even two years ago also this Company was a loss making unit
5. Company has made defaults in payments towards the statutory requirements like professional tax, provident fund etc etc and the cases are going in the courts towards this defaults.
6.Company operates in an area where there is a lot of competition from small scale sector as the investment required for starting such companies are very less and technology used in such companies are very old.
Monday 18 April 2011
MUTHOOT FINANCE LTD - IPO FOR RISK TAKERS
This company started their activities from my native place. Those days, their office building was the only high rise building there. From there, they spread there wings all around Karalla and now to almost all the districts in India.Kerala is home to good of gold lending institutions and the Muthoot Finance is one of the Pioneers in this field . Another company Manapuram Finance Ltd also from Kerala has given handsome returns to its investors.
Now coming back to this IPO, Muthoot Finance Ltd is the Kerala - based largest gold financing company in India in terms of loan portfolio. Muthoot Finance provides personal and business loans secured by gold jewellery or Gold Loans. They have 1605 branches across 20 states and two union territories in India.
Issue Details are as follows
Issue Open : 18/04/2011
Issue Close : 21/04/2011
Price Brand : Rs 160 – Rs 175
Minimum Application : 40 Shares
Face Value : Rs 10 / share
Price band Looks very much on the higher side . If you are risk taker ,you can apply for this IPO for an immediate gain of 15 % . If you are a long term investor you can get into this share at a much lower rate after listing as this share is fundamentally strong.
Now coming back to this IPO, Muthoot Finance Ltd is the Kerala - based largest gold financing company in India in terms of loan portfolio. Muthoot Finance provides personal and business loans secured by gold jewellery or Gold Loans. They have 1605 branches across 20 states and two union territories in India.
Issue Details are as follows
Issue Open : 18/04/2011
Issue Close : 21/04/2011
Price Brand : Rs 160 – Rs 175
Minimum Application : 40 Shares
Face Value : Rs 10 / share
Price band Looks very much on the higher side . If you are risk taker ,you can apply for this IPO for an immediate gain of 15 % . If you are a long term investor you can get into this share at a much lower rate after listing as this share is fundamentally strong.
Wednesday 23 March 2011
Shilpi Cable Technologies ---> An IPO to Avoid
Shilpi Cable Technologies has opened its IPO for subscription on 22/03/2011 and issue will close on 25/03/2011.The price band of the issue has been fixed between Rs 65/- to Rs69/-. I advice all the investors to avoid this issue due to the following reasons.
1. Issue has been graded by CARE and Grade given to the company is 1 indicating POOR FUNDAMENTALS.
2.Very high Issue price of Rs 65 to Rs 69 with out much fundamentals
3.Company is in operation for last 4 years only
4.Earning per share is in negative for 2 years out of 3 years in operation
5. Net Asset Value per Equity Share as on March 31, 2010 is only Rs. 14.89 on consolidated basis.
6. Three to Four company's by the Promotor's already in the similar line of
operation
1. Issue has been graded by CARE and Grade given to the company is 1 indicating POOR FUNDAMENTALS.
2.Very high Issue price of Rs 65 to Rs 69 with out much fundamentals
3.Company is in operation for last 4 years only
4.Earning per share is in negative for 2 years out of 3 years in operation
5. Net Asset Value per Equity Share as on March 31, 2010 is only Rs. 14.89 on consolidated basis.
6. Three to Four company's by the Promotor's already in the similar line of
operation
Monday 21 March 2011
25 HIGHEST DIVIDEND YIELDING STOCKS
Listed below are the 25 stocks which gives the highest
dividend yields. These stocks are selected based on the consistency of dividend . All these stocks had declared dividend consistenly for last 5 years.Those who are interested in consistent dividend income can invest in some of these shares .
SR.NO. COMPANY NAME LAST PRICE LATEST Div % DIV YIELD
1 ZENITH BIRLA 8.99 20.0 22.25
2 ENGINEERSIND 306.00 1060.0 17.32
3 MERCK 574.70 950.0 16.53
4 PANORAMIC UNI 16.20 50.0 15.43
5 ZICOM SECURITY 37.65 50.0 13.28
6 JUPITER BIO 20.10 20.0 9.95
7 ALKALI METAILS 46.55 40.0 8.59
8 DALMIA SUGAR 24.90 100.0 8.03
9 IKF FINANCE 12.57 10.0 7.96
10 ASHIRWAD CAPITAL 1.92 15.0 7.81
11 BNR UDYOG 12.85 10.0 7.78
12 RISHABH DIGHA 26.50 20.0 7.55
13 ANUH PHARMA 133.00 200.0 7.52
14 HCL INFO 100.60 375.0 7.46
15 HERO HONDA 1474.15 5500.0 7.46
16 VALSON IND 20.40 15.0 7.35
17 ULTRAMARINE 41.25 150.0 7.27
18 FAIRDEAL FILA 18.50 12.5 6.76
19 INDUCTO STL 29.90 20.0 6.69
20 VALIANT COMM 18.00 12.0 6.67
21 HBPORTFOLIO 30.20 20.0 6.62
22 BN RATHI SEC 18.85 12.0 6.37
23 STANROSE FINANCE 78.50 50.0 6.37
24 GOWRA LEASING 19.05 12.0 6.3
25 SIPAPER 48.35 30.0 6.2
dividend yields. These stocks are selected based on the consistency of dividend . All these stocks had declared dividend consistenly for last 5 years.Those who are interested in consistent dividend income can invest in some of these shares .
SR.NO. COMPANY NAME LAST PRICE LATEST Div % DIV YIELD
1 ZENITH BIRLA 8.99 20.0 22.25
2 ENGINEERSIND 306.00 1060.0 17.32
3 MERCK 574.70 950.0 16.53
4 PANORAMIC UNI 16.20 50.0 15.43
5 ZICOM SECURITY 37.65 50.0 13.28
6 JUPITER BIO 20.10 20.0 9.95
7 ALKALI METAILS 46.55 40.0 8.59
8 DALMIA SUGAR 24.90 100.0 8.03
9 IKF FINANCE 12.57 10.0 7.96
10 ASHIRWAD CAPITAL 1.92 15.0 7.81
11 BNR UDYOG 12.85 10.0 7.78
12 RISHABH DIGHA 26.50 20.0 7.55
13 ANUH PHARMA 133.00 200.0 7.52
14 HCL INFO 100.60 375.0 7.46
15 HERO HONDA 1474.15 5500.0 7.46
16 VALSON IND 20.40 15.0 7.35
17 ULTRAMARINE 41.25 150.0 7.27
18 FAIRDEAL FILA 18.50 12.5 6.76
19 INDUCTO STL 29.90 20.0 6.69
20 VALIANT COMM 18.00 12.0 6.67
21 HBPORTFOLIO 30.20 20.0 6.62
22 BN RATHI SEC 18.85 12.0 6.37
23 STANROSE FINANCE 78.50 50.0 6.37
24 GOWRA LEASING 19.05 12.0 6.3
25 SIPAPER 48.35 30.0 6.2
Thursday 17 March 2011
IPO - PTC India Financial Services - 20 % appreciation on listing
This company was incorporated in 2006 in which the parent company PTC India Limited Holds 77.60 % of equity capital and the balance is equally owned by GSStrategic Investments Limited (an affiliate of The Goldman Sachs Group, Inc.) and Macquarie India HoldingsLimited (an affiliate of The Macquarie Group) . After this issue their shareholding will come down to PTC India Limited ---- 60.00 %,GS Strategic Investments Limited ---- 8.66 % and Macquarie India Holdings Limited ---- 3.46 % .The share is priced in the range of Rs 26- Rs 28/- and the retail invester will get a discount of Rs 1/- .
This issue comprises of two parts ,first part is the fresh issue and the second part is the offer for sale by GS Strategic Investments Limited and Macquarie India Holdings Limited . The Company intends to utilize the proceeds from the Fresh Issue to increase their capital base so that they can meet the capital requirements arising out of the growth of the business .
Main strength of this company is its promoter PTC ,who is the market leader for power trading solutions in India. Basically this company is an NBFC and offer financial products to the energy sector . Since the company is operating in the Energy sector ,which is expected to boom for the couple of years in India . Hence I advice you to invest in this issue .Moreover due to the dullness in the market you will have better chance of allotment and you can expect an appreciation of 20 % on listing
This issue comprises of two parts ,first part is the fresh issue and the second part is the offer for sale by GS Strategic Investments Limited and Macquarie India Holdings Limited . The Company intends to utilize the proceeds from the Fresh Issue to increase their capital base so that they can meet the capital requirements arising out of the growth of the business .
Main strength of this company is its promoter PTC ,who is the market leader for power trading solutions in India. Basically this company is an NBFC and offer financial products to the energy sector . Since the company is operating in the Energy sector ,which is expected to boom for the couple of years in India . Hence I advice you to invest in this issue .Moreover due to the dullness in the market you will have better chance of allotment and you can expect an appreciation of 20 % on listing
Friday 4 March 2011
Godavari Power & Ispat Ltd ( GPIL) -
Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., belonging to HIRA Group of Industries, Raipur, was incorporated in 1999 to set up an integrated steel plant with captive power generation .GPIL , today is a totally integrated steel plant which manufactures mild steel wires , sponge iron, billets, Ferro alloys, captive power, wires rods , Oxygen gas, fly ash brick etc etc . Today GPIL is the third largest manufacturer of coal based sponge Iron in India and one of the largest players in the mild steel wire segment .
Investment in this company is adviced due to the following positive aspects
1. Company has started the mining ore from their own iron ore mine
2. Company has commenced the operation of iron ore palletitation plant
3. Commercial operation of 20 MW Bio-mass power plant also has started
4. Company has got the permission for starting a solar power plant with
a capacity of 5o Mw
5. De-merger of this company into two based on steel and power and it’s
subsequent value unlocking
There will be dramatic improvement in the working of GPIL from current year with the commencement of operation of iron ore mine , power plant and the palletitation plant which will result in the lower raw material cost . As per my estimate company will close this year with a Net profit of Rs 73 /- resulting an Earning per share of Rs 26/- and a Book value of over Rs 190 /- which means that the share available now at a price less than it’s Book value .
Investment in this share is recommended at current price with an expected price of Rs 300 with in next 12 months
Investment in this company is adviced due to the following positive aspects
1. Company has started the mining ore from their own iron ore mine
2. Company has commenced the operation of iron ore palletitation plant
3. Commercial operation of 20 MW Bio-mass power plant also has started
4. Company has got the permission for starting a solar power plant with
a capacity of 5o Mw
5. De-merger of this company into two based on steel and power and it’s
subsequent value unlocking
There will be dramatic improvement in the working of GPIL from current year with the commencement of operation of iron ore mine , power plant and the palletitation plant which will result in the lower raw material cost . As per my estimate company will close this year with a Net profit of Rs 73 /- resulting an Earning per share of Rs 26/- and a Book value of over Rs 190 /- which means that the share available now at a price less than it’s Book value .
Investment in this share is recommended at current price with an expected price of Rs 300 with in next 12 months
Sunday 27 February 2011
Arvind Ltd:- Sitting on 1000 Acres of Land Bank
One of the oldest player in the textile segment is expected to close this year with a sales of over 2500 crore and a net profit of over 110 crore resulting in an eps of Rs 4.5 / share. Company is planning to invest over 2 billion for the expansion of its denim capacity and also to open various retail outlets across the nation.This expansion will result in a quantum jump of sales from 2500 Crores to 4300 crores in the next 2 years with an estimated eps of Rs 10/share.
Company is holding a land bank of 1000 – acre in and around Ahmadabad and the company is planning to develop these land for residential purpose. There will be a huge unlocking of value when this project is announced by the management.
At present the share is available at a price of Rs 54/- which will Gain 50 % to 100 % in next one year.
Company is holding a land bank of 1000 – acre in and around Ahmadabad and the company is planning to develop these land for residential purpose. There will be a huge unlocking of value when this project is announced by the management.
At present the share is available at a price of Rs 54/- which will Gain 50 % to 100 % in next one year.
Thursday 17 February 2011
Alok Industries to double in less than 2 years
Company present in Textile, Retail and Infrastructure sector expected to close this year with an expected turnover of over Rs 6000 Crores. Company invested over 70 billion in the last five to six years for various expansion programs has started reaping the benefits from theses expansion programs. These can be seen from the increase in sales
Year end, Sales in Crores, % sales Growth
March ‘11, 6300, 46 %
March ‘10, 4311, 45 %
March ‘09, 2966, 37 %
March ‘08, 2159, 18 %
March ‘07, 1829, 29 %
Main trigger in company is its expected revenue from its real estate in and around Mumbai and the company is expected to earn apprx 2000 Crores from its real estate in the next 2 years time.
Even though Company is present in one of the oldest industry but the policies followed by the management are very modern which is evident from their consistent investment in modernisation programs year after year. They are planning to invest around 4.5 billion in next 2 years for modernisation programs.
Company is expected to close this year with an expected eps of 5.00 and a book value of around Rs 45.00 which means that this share is available at 50 % of its book value.Investment is recommended in this share at present value of Rs 23 and the share is expected to double in less than 2 years
Year end, Sales in Crores, % sales Growth
March ‘11, 6300, 46 %
March ‘10, 4311, 45 %
March ‘09, 2966, 37 %
March ‘08, 2159, 18 %
March ‘07, 1829, 29 %
Main trigger in company is its expected revenue from its real estate in and around Mumbai and the company is expected to earn apprx 2000 Crores from its real estate in the next 2 years time.
Even though Company is present in one of the oldest industry but the policies followed by the management are very modern which is evident from their consistent investment in modernisation programs year after year. They are planning to invest around 4.5 billion in next 2 years for modernisation programs.
Company is expected to close this year with an expected eps of 5.00 and a book value of around Rs 45.00 which means that this share is available at 50 % of its book value.Investment is recommended in this share at present value of Rs 23 and the share is expected to double in less than 2 years
Monday 7 February 2011
Why you should invest in Blue star Info Tech ?
1. Consistent dividend paying company from inception.
2. Another company from the professionally managed Blue star Group.
3. Chances of a 1:10 split as the parent company has done the split few years back
4. Company in the software industry and all the company’s in industry are coming back strongly after the recession.
5. Investing in a Growth oriented management where Rs 7000 /- invested in Blue star in 1990 has grown to almost Rs 8,00,000 /- this is in addition to the consistent dividend .rights and a share of Blue star infotech free.
6. Current year Eps expected to be around Rs 13/-
7. At the end of the current year Book Value of this share will be around Rs 90/- ie you are getting this share for a Price to Book value ratio of 1.26
8. it’s a debt free company
2. Another company from the professionally managed Blue star Group.
3. Chances of a 1:10 split as the parent company has done the split few years back
4. Company in the software industry and all the company’s in industry are coming back strongly after the recession.
5. Investing in a Growth oriented management where Rs 7000 /- invested in Blue star in 1990 has grown to almost Rs 8,00,000 /- this is in addition to the consistent dividend .rights and a share of Blue star infotech free.
6. Current year Eps expected to be around Rs 13/-
7. At the end of the current year Book Value of this share will be around Rs 90/- ie you are getting this share for a Price to Book value ratio of 1.26
8. it’s a debt free company
Friday 21 January 2011
Shareinvestment-tips ----> Raj Oil Mills Ltd
Raj oil mills , a company wth a background of over 60 years in the edible oil industry with reputed brands like Cocoraj and Raj came out with an IPO at an offer price of Rs 120/ share in 2008 . Due to the little investors interest , this share is now available at a price of Rs 38/share with a very little downward risk.
Eventhough there was a decline in the net profit of 57.16 % in the last quarter ,this quarter and the coming quarter will make up for this loss due to the general up trend in the oil industry. Raj oil Mills is expected to close this financial year with an estimated eps of Rs.5 which means that this share is available at a P/E of almost 7.5. Hence investment is adviced in share in big lots.
Eventhough there was a decline in the net profit of 57.16 % in the last quarter ,this quarter and the coming quarter will make up for this loss due to the general up trend in the oil industry. Raj oil Mills is expected to close this financial year with an estimated eps of Rs.5 which means that this share is available at a P/E of almost 7.5. Hence investment is adviced in share in big lots.
Thursday 13 January 2011
Bhartiya International -Invest for long term
Bhartiya International –Invest for long term
Another consistent dividend paying company in the leather garment industry available dirt cheap at Rs 75/-.Current book value of the share is approx Rs 126/ share and the expected earnings per share for the current year is expected to be around Rs 10/-.
Company is also planning to enter the retail sector by establishing retail shops all over India. Investment is advised in this company based on its real estate connection .Bharatiya International is holding 30% equity in a group company with 125acres of land in Bangalore and they are developing a town-ship on this land. If this real-estate investment start’s contributing to its income then the price of this share will be doubled in no time also there is chance that the group company will be coming out with an ipo to finance the Town-ship project
Another consistent dividend paying company in the leather garment industry available dirt cheap at Rs 75/-.Current book value of the share is approx Rs 126/ share and the expected earnings per share for the current year is expected to be around Rs 10/-.
Company is also planning to enter the retail sector by establishing retail shops all over India. Investment is advised in this company based on its real estate connection .Bharatiya International is holding 30% equity in a group company with 125acres of land in Bangalore and they are developing a town-ship on this land. If this real-estate investment start’s contributing to its income then the price of this share will be doubled in no time also there is chance that the group company will be coming out with an ipo to finance the Town-ship project
Thursday 6 January 2011
Datamatics Global Services :- Invest for minimum 50 % appreciation
One of the well managed company in the BPO segment available at a very attractive price of Rs 35/- share( Paid up value - Rs 5 per share). This share was almost dormant for the last 6 months of the year because of not so attractive last 2 quarters.
Promoters confidence on the company can be seen from their 73 % of share holding and because of very less floating stock , even small buying in this stock can sky rocket the price .This company also pay’s the dividend consistenly and 25 % was the dividend rate for the last 2 years.Fundamentally this company is very strong with a lot of cash and with a very book value of above Rs 50/- . Hence investment is recommended in this share for a minimum appreciation of 50 %
Promoters confidence on the company can be seen from their 73 % of share holding and because of very less floating stock , even small buying in this stock can sky rocket the price .This company also pay’s the dividend consistenly and 25 % was the dividend rate for the last 2 years.Fundamentally this company is very strong with a lot of cash and with a very book value of above Rs 50/- . Hence investment is recommended in this share for a minimum appreciation of 50 %
Sunday 2 January 2011
IPO ANALYSIS - 2010
Given below is the Analsis of Initial Public Offer's (IPO) of companies who came out with IPO's in 2010.This Analysis is done on the basis of following assumptions
1. Got firm allotment of 25 Shares each in all the Ipo's
2. Sold all the shares on the last working day of 2010
Finding of this Analysis will really surprise you
Net return of all ipo's is apprx 0.03 %.
This negligible return point to the proper study of IPO's before investing your hard earned money .
1. Got firm allotment of 25 Shares each in all the Ipo's
2. Sold all the shares on the last working day of 2010
Finding of this Analysis will really surprise you
Net return of all ipo's is apprx 0.03 %.
This negligible return point to the proper study of IPO's before investing your hard earned money .
Subscribe to:
Posts (Atom)