Rashtriya Chemicals and Fertilizers Limited (RCF)

                                                               RCF is a Government of India undertaking in the Fertilizer sector which paid consistent  dividend  for the last 10years  in the range of  17 % to  10 % . At  present this share is available at a market price of  Rs 35 which gives an yield of approx 4.36 % based on last year dividend.  


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Current  Current book value of the share is approx.  Rs 43  and  the 52 week high was Rs 57.20 and low price was 25.60  .Investment is recommended in this share based on it’s dividend yield as well as it’s potential to yield a capital appreciation of around 20 %

Tourism Finance Corporation of India -----> A Fixed Deposit Share

                                       Tourism Finance Corporation of India is known  as  the Fixed Deposit  Share  because of its   high dividend  yield and due to the lowest  risk . It offers a dividend  yield of  almost 5.00 % at the current market price of Rs 24.30/-.This public sector company is promoted by  IFCI,SBI,Bank of India , LIC etc etc and they together hold  67 % of the equity and the balance is with the public .

Last year Earning per share of this company was approx Rs. 6./- and this year also this will be maintained . By this yearend  book value of this share will be around Rs 50/-  which means that this share is available at a discount of almost 50 %. I recommend all of  readers to invest in this  share for  steady income as well as for 25 % to 30 %  appreciation .

My Portfolio for 2013

Here is my portfolio for 2013 worth 10 lakhs .Reson for selecting the stock has also been provied alongside . Performance of this portfolio will be reviwed on monthly basis an will be publised in this blog. I expect around 30 to 35 % appreciation for this portfolio by the end of 2013.

              

Videocon Industries

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

Pls do not invest in IPO's

Pls reade why you should not invest in IPO's

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 .

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

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

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 %

Get out from Ispat Industries

JSW steel is taking over loss making Ispat Industries at a price of Rs 19.85 per share. They also will be making an open offer to the existing share holders at this price .

Why you have to get out of Ispat Industries ?

As per my estimation Ispat Industries will be definitely merged with JSW steel in due course of time . Since this company is in deep loss,exchange rate at the time of merger will not be infavour of the investors in Ispat Industries .Ultimate looser in this deal will be the existing investors and hence i advice all the existing small investors to get out from this scrip at the earliest