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

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 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 .

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.

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.

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.

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