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Showing posts from December 9, 2007

An introduction to open offers

Shanthi Venkataraman There has been a string of open offers in recent months, on the back of a wave of takeovers and stake hikes by the promoters of India Inc. The stock prices of companies for which offers have been made have also zoomed.Just what are open offers? How are they triggered? How do stocks behave in response to open offers? Read on to find out. Warning. Some of what you are about to read might seem a bit like regulatory mumbo-jumbo. Here goes. When there is a takeover, or a substantial quantity of shares or voting rights being acquired, regulations require the acquirer to provide an exit option to the target company's shareholders, as there is a change in control of the company. The acquirer makes an open offer to buy shares to the extent of 20 per cent of the share capital from the public, at a particular price, during a defined time period. A public announcement is made to this effect, providing details such as the background of the acquirers, the justification of t…

Fin, steel, cement stocks to be key wealth creators: MOST

Top 10 Wealth Creators in India:
Reliance Industries [Diversified Petrochemicals, Retail, Telecom, Finance, Energy]
Oil and Natural Gas Corporation [Oil / Refining]
Bharti Airtel [ Telecommunications]
Infosys Technologies [IT Outsourcing]
ICICI Bank [Retail and Industrial Banking and Insurance]
Bharat Heavy Electricals [Electrical Equipment and Turnkey Projects]
Steel Authority of India Ltd [Iron and Steel]
Larsen & Toubro [Construction + Turnkey Projects + Cement + IT Outsourcing]
State Bank of India [India's largest bank network]
Wipro [Information Technology]The top 10 most consistent wealth creators over a 15 year period are as follows,
Wipro
Cipla [Pharmaceuticals]
Reliance
Hero Honda [2 Wheeler Automobile]
Dr Reddys Labs [Pharma]
HDFC [Housing Loans + Big Holding in Banking and Insurance + Financial Products]
Asian Paints [Paints]
Ranbaxy Labs [Pharma R&D]
ITC [Cigarettes + Hotels + FMCG]
Nicholas Piramal [Pharma

REL submits bid for Mumbai Sea Link project

MUMBAI: Anil Ambani Group firm Reliance Energy on Saturday said it has submitted a bid for Rs 4,000-crore Mumbai Trans Harbour Sea Link project, for which a Mukesh Ambani company has already bid.

This follows a December 15 deadline set by the Supreme Court. REL submitted the bid in association with Hyundai Engineering Construction Company.

The Mumbai Trans Harbour Sea Link is a 22-km road bridge connecting Navi Mumbai with Mumbai over water. The sea link would be six-lane and would cut short the travel time between Navi Mumbai and Mumbai to 20 minutes from 90 minutes at present.

Mukesh Ambani's Sea King Infrastructure Ltd has already bid for the project.

"We are committed to the development of such projects, which are critical to the infrastructure development of the city," a Reliance Energy spokesperson said in a statement.

The Mumbai Trans Harbour Sea Link Project is expected to cost Rs 4,000 crore and is to be set up in 5 years.

The REL-Hyundai consorti…

Analysts' picks from ECONOMIC TIMES 15-12-2007

Hindustan Unilever

CMP: Rs 216.95

TARGET PRICE: Rs 254

Credit Suisse has initiated coverage on Hindustan Unilever with an 'outperform' rating and a discounted cash flow based price target of Rs 254. "HUL's underperformance in the past has been due to a combination of a slow market and margin pressure. The company is benefiting from accelerated investments in innovation at the global level and a concurrent increase in brand investments locally," the Credit Suisse note to clients said. "HUL is also benefiting on the cost side through an integrated supply chain. The company is set to deliver strong revenue growth by growing its core in line with the market and expanding its presence in the food and water businesses," the note added.


Dish TV

CMP: Rs 91.60

TARGET PRICE: Rs 120

CLSA Securities has maintained its 'buy' rating on Dish TV and a discounted cash flow-based valuation of Rs 120. "Dish TV's addition of new subscribers ha…

Praj Industries soars on tie-up with Brazil company

Praj Industries galloped 12.02% to Rs 268 after it formed a joint venture company with Jaragua Equipamentos Industriais, Brazil Meanwhile, BSE Sensex was down 93.57 points or 0.47% to 20,010.82. On BSE 33.25 lakh shares were traded in the counter. The stock had an average daily volume of 7.34 lakh shares in the past one quarter. The stock hit a high of Rs 270 so far during the day, which is a record high. The stock had touched a low of Rs 241.95 so far during the day. The stock hit a 52-week low of Rs 83.55 on 13 December 2006. The mid-cap scrip had outperformed the market over the past one month till 13 December 2007, gaining 22.07% as compared to the Sensex's return of 0.88%. It had underperformed the market in the past one quarter, gaining 9.97% as compared to the Sensex's rise of 28.84%. The company's current equity is Rs 36.55. Face value per share is Rs 2. The current price of Rs 268 discounts Q2 September 2007 annualized EPS of Rs 5.93 by a PE multiple…

New project launch boosts Parsvnath Developers

Parsvnath Developers rose 1.16% to Rs 415.50 after it unveiled Parsvnath Preston, a high-end group housing residential project, in Sonepat, Haryana. The company made this announcement during trading hours today, 14 December 2007. Meanwhile, BSE Sensex was down 89.81 points or 0.45% to 20,014.58. On BSE 3.58 lakh shares were traded in the counter. The stock had an average daily volume of 3.62 lakh shares in the past one quarter. The stock hit a high of Rs 421.95 and a low of Rs 391.25 so far during the day. The stock has a 52-week high of Rs 476.90 on 15 December 2006 and a 52-week low of Rs 221.60 on 7 March 2007. The mid-cap scrip had outperformed the market over the past one month till 13 December 2007, gaining 25.44% as compared to the Sensex's return of 0.88%. It had underperformed the market in the past one quarter, gaining 28.76% as compared to the Sensex's rise of 28.84%. The company's current equity is Rs 184.70. Face value per share is Rs 10. The c…

BGR ENERGY SUBSCRIPTION DETAILS

The IPO of BGR Energy for which we have a Subscribe Recommendation is heavily subscribed until 11:00PM on the final closing day.

At 11:00 PM the Retail Individual category was subscribed 46.89 times. This means the fate of all applications of 196 shares / Rs 94080 will be decided by lottery.

Sr.No.CategoryNo.of shares offered/reservedNo. of shares bid forNo. of times of total meant for the category1Qualified Institutional Buyers (QIBs) 5181600837731944161.6744
2Non Institutional Investors863600132201244153.0816
3Retail Individual Investors (RIIs)259080012149137046.8934

Allotment for Rs 100,000 application will be in the ratio of 3:10. The status of BGR Energy IPO Allotment can be checked here approximately by Dec-27. The Grey Market Premium has shot up and is now at Rs 410-425.

Alchemist Realty jumps on bonus issue recommendation

Alchemist Realty surged 3.87% to Rs 769 after its board of directors approved a liberal one for one bonus issue The company made the announcement during market hours today, 13 December 2007. On BSE, 4160 shares of the scrip were traded. The stock had an average daily volume of 8492 shares on BSE in past one quarter. The scrip had touched a high of Rs 770 and a low of Rs 703.50 so far during the day. The stock had hit a 52-week high of Rs 747 on 11 December 2007 and a 52-week low of Rs 73.30 on 28 December 2006. The scrip had outperformed the market in the one month to 12 December 2007, adding 24.59% as against the Sensex's 8.75 % gain. It had also outperformed the market in the past three months, soaring 120.34% against the Sensex's 31.41% rise. The small-cap firm has an equity capital of Rs 7.04 crore. Face value per share is Rs 10. At the current price of Rs 769, the scrip trades at a PE multiple of 66, based on Q2 September 2007 annualised EPS of Rs 11.65.

BUY RECOMMADATIONS

Buy Punj Lloyd @ 543-547 Stop Loss - 502 Target - 630 (4-9 days)
Buy Hindalco @ 199-207 Stop Loss - 186 Target - 235 (2-3 weeks)
BUY MAHINDRA FINANCE @293    TARGET-- 385(2010 MARCH) buy hydera bad ind cmp 223 stop loss 192.(medium term) buy lok housing cmp350  target 1000 (3yrs) Surya Pharma - Rs.120/- it appears that time is just ripe for the stock to make a powerful upward movement.

More steam left.........

Wednesday, December 12, 2007


Yes, our call was bang on target. First the timing of crossing 20K and then not allowing market to drift below 20K even though Street had gone short in a big way. R Com is the stock of the day and see major upside tomorrow. Market is unlikely to correct so long as short sellers do not come forward for covering which itself can take Sensex to 21000 very easily. There is also a possibility that market may test 25000 before Budget. The real fireworks are yet to start which will happen through PRE BUDGET rally. Invest in B gr shares which are undervalue and are at tipping point like Vardhman Textiles.

More than 200 mn USD has been invested by 3 smart operators in R Com yesterday and today ahead of some announcement which will take R Com price to Rs 850 very easily. It may take it to Rs 900 also. In fact, the game was set only in the last vallan but due to the fact that traders had gone in Rs 820 call made them to change to game in this vallan. Before…

Punj Lloyd builds on new order win

Punj Lloyd soared 7.12% to Rs 556 at 15:05 IST on BSE, after the company said it has won contract for building delayed coker unit & coker LPG Merox Block for the residue upgradation project of Indian Oil Corporation at its Vadodara, Gujarat refinery.


The company made this announcement during trading hours today, 12 December 2007.
Meanwhile, BSE Sensex was up 112.64 points or 0.56% to 20,403.53, on hopes the US interest rate cut announced on Tuesday, 11 December 2007, would trigger more foreign fund inflows.
On BSE 10.67 lakh shares were traded in the counter. The stock had an average daily volume of 8.56 lakh shares in the past one quarter.
The stock hit a high of Rs 558 so far during the day, which is a record high. The stock touched a low of Rs 507 so far during the day. The stock had a 52-week low of Rs 142.31 on 7 March 2007.
The mid-cap scrip had underperformed the market over the past one month till 11 December 2007, gaining 3.37% as compared to the Sensex’s return of 8.29%. It h…

Reliance Energy recovers on new order win

Reliance Energy was flat at Rs 1945 at 13.02 IST on BSE, having recovered from session's low of Rs 1896.95, after the company said it had won a contract Damodar Valley Corporation to set up a coal based power station at Raghunathpur in West Bengal.


The company made this announcement during trading hours today, 12 December 2007.
Meanwhile, BSE Sensex was down 52.79 points or 0.26% to 20,238.10 after the US Federal Reserve's small 25 basis points interest rate cut on Tuesday, 11 December 2007, raised worries about US economic growth.
On BSE 4.39 lakh shares were traded in the counter. The stock had an average daily volume of 19.09 lakh shares in the past one quarter.
The stock hit a high of Rs 1968 and a low of Rs 1896.95 so far during the day. It touched a 52 week high of Rs 2,000 on 1 November 2007 and a 52 week low of Rs 448.20 on 5 March 2007.
The large-cap scrip had underperformed the market over the past one month till 11 December 2007, gaining 6.97% as compared to the Sensex’s…

buy recomendations

513335Ahmednagar Forging2413 Month500Tutis Technology23.82 Month100532869Roman Tar19212 Month1000526481Phoniex Int5412 Month450IDEA1381 Month180532406Avantel Software11312 Month400526823Rajeswari Foundation31.53 Month100average524129Vinyl Chemicals303 Month100532764Gwalior Chem986 Month250590033APW160.512 Month700average504918Sandur Mangenese47012 Month2500590059Bihar Tubes1723 Month500JK Cement`2261 Month350500199I G Petro8012 Month300522150Aditya Forging14.453 Month45average531340Bervin Investments32.412 Month150OBC25612 Month480532745JRG 8712 Month250

Lanco Infratech strikes all-time high

Lanco Infratech galloped 17.70% to Rs 711 on reports that has bagged engineering procurement and construction contract from Lanco Group for 1,015 megawatt coal-based Nagarjuna power project in Mangalore.
On BSE 29.30 lakh shares were traded in the counter. The scrip had an average daily volume of 5.34 lakh shares in the past one quarter.
The stock hit a high of Rs 721.90, a record high for the stock on BSE. The stock had touched a low of Rs 595 so far during the day. The stock had a 52-week low of Rs 137 on 5 April 2007.
The mid-cap scrip outperformed the market over the past one month till 10 December 2007, gaining 42.09% as compared to the Sensex’s return of 5.41%. However, it underperformed the market in the past one quarter, surging 103.61% as compared to the Sensex’s rise of 28.23%.
The company’s current equity is Rs 222.36 crore. Face value per share is Rs 10.
The current price of Rs 711 discounts its Q2 September 2007 annualized EPS of Rs 6.24 by a PE multiple of 113.94.
The contract…

building blocks

If infrastructure and capital goods are the best investment theme for the next few years, infrastructure ancillary industries too will do well The most common advice from investment advisors and analysts is that you must own infrastructure in your portfolio. This is also reflected in the increasing number of domestic infrastructure mutual funds and their corpus. There is a huge deficit in domestic infrastructure, and attempts are being made to fill the burgeoning demand for power, ports, roads etc. Obviously, infrastructure companies will be the direct beneficiaries. But there is a host of industries that will also gain from this spend. "Infrastructure is the biggest opportunity today in India backed by the monetary allocation of about $500 billion in current Five Year Plan. This opportunity will cascade down to every player operating in infrastructure space, which will…