India story has not even begun; india story will begin when growth starts touchin 20% and does so for five consecutive years! By that time sensex will have touched 100,000. But my advice to investors is to remain invested in sound stocks that have growth and capital appreciation. IPOs at present seem to be like only ONE bird in BUSH (way in distant future) while old established stocks seem like TWO birds in HAND. At present time investors should stick to low PE, visible earning, heavy investments, high book value and visible asset holdings like
1) Jindal southwest Holdings (JSWHL) Low issued capital only 11m shares on such large holdings; holds 18m shares of JSWSTEEL, indirectly seem to own 6.5m shares of Jindal Steel and Power thru Sun Inv and in about two years if Sun Investments is listed,JSWHL will cash out heavy.
2)Jhunjhuwala Va: Low PE,low paid up cap,visible high earnings, sales of Rs 1,200 cr per year ! Vanaspati is a basic human need; people can go without cars but without vanaspati it will be difficult, huge expansion program, has bought 60,000 acres of plantations in Indonesia to ensure cheap supply of raw materials.
3)MTNL: On expansion mode, highly prized land bank in top cities of India (not rural land); very high book value of Rs 190 per share based on which share price should be Rs800 or so but share very cheap at Rs 125/-
4)Cairn: just about IPO price and that also of the era when IPOs were cheaply priced (now a days IPOs like Reliance Power etc seem very overly priced compared to Cairn) High possibility of striking good reserves of oil in Bihar.
] 5) Usha Martin Inf: High book value/investments and likely to emerge a leader in eLearning which it had in 2001 given up to IIT Chennai.
at 6:48:00 PM