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Showing posts from January 13, 2008

HOW TO STUDY STOCK?

Tools for Finding Breakout Stocks

Fundamental analysis is the process of looking at a company's basic or fundamental financial level. This type of analysis examines important terms of a companies to determine its financial health and gives you an idea of the value its stock.
Many investors use fundamental analysis alone or in combination with other technical tools to evaluate stocks for investment purposes. The idea behind this is to determine the current worth and, more importantly, how the market values the stock in coming future.

The following points are based on important tools of fundamental analysis and what they tell you. Even if you don't plan to do in-depth fundamental analysis yourself, it will help you to follow stocks more closely which will give you good returns in future/long term investments.

Earnings
It's all about earnings. When you come to the bottom line, that's what investors want to know. How much money are the companies making and how much is it going …

A SAFE STOCK TO INVEST - IDBI

A safe stock to invest - IDBI is a safe investment as it has made very bold announcement by intention to expand the branches across the globe. Its insurance valuation is catching momentum. Its recovery of bad assets is on course. CMP – 148.00 P/E – 26.6 ONE YEAR H – 181 L - 67
IDBI at price band of Rs 60 to 70 was trading in 10 to 15 crs F & O volume. As the volume dwindled to as low as 1 cr shares the stock was managing to hold at very close to its all time high. This in turn signified of IDBI counter becoming dry. This share had fallen along with others as the market saw a good drop but this can burst any moment. Buy now before it will start gaining momentum.
From reliable sources it is understood that investors close to political parties are accumulating IDBI and IFCI - this clearly suggests that unexpected news can flow in these 2 counters. Presumably Govt may announce a banking license in FICI whereas IDBI could be la SBI story and a rights issue is not discarded.
Another patte…

Reliance Power gets record 2.2 m applications

The Rs 11,700-crore initial share sale by Anil Ambani's Reliance Power Ltd is setting several new benchmarks, as frenzied bidding by investors continued on the eve of the close of issue tomorrow. The issue has set a new record for the total number of applications received for an initial public offering (IPO) in India. It also created a new record for the biggest total demand created for an IPO in the country. A total of 3 million applications were received from investors for the Rs 11,700 crore IPO at 5 pm today, surpassing the 1.95 million applications received for Mukesh Ambani's Reliance Petroleum IPO in May 2006. NTPC's initial share sale saw 1.44 million applications. Powergrid (1.27 million) and the just-concluded Future Capital IPO (1.17 million) were the other IPOs that generated big demand. With one more day to go for the close of the IPO, the Reliance Power IPO generated demand for Rs 248,000 crore — a new record. The previous highest demand was for the Mundra Po…

SEBI for 25% price band on IPOs up to Rs 250 cr

Some forthcoming IPOs raising less than Rs 250 cr

MUMBAI: Stock market regulator SEBI has proposed a 25% first-day price band for IPOs up to Rs 250 crore, to enable “steady and sustained price discovery over a period of time”. Once enforced, a price-band will put off several punters and leveraged investors who borrow money to pocket the listing premium by selling the shares soon after trading begins, a practice that’s known as ‘first day first show’ in Dalal Street. Some forthcoming IPOs raising less than Rs 250 cr

The move has evoked a mixed response. “Why single out the smaller players... abnormal price movements have been witnessed in larger issues as well in the past,” said Prime Database MD Prithvi Haldea. “What needs to be addressed first, is the price discovery mechanism in IPOs. Second it is imperative that the free float is increased,” he adds. “If 75-85% of the market cap is effectively in large companies, why penalise small companies. What of the significant rise in DLF post …

Future of Tata Group Stocks - FY09

Tata Group is one of the oldest business house in India with varied interests from Engineering to IT to Chemicals to Hospitality. The group has been on continuous restructuring exiting legacy businesses and consolidating the few where it could be amongst the Top-3 or Top-5.

Here is an exclusive Study of Tata Group Stocks as reported by HDFCSEC.

Tata Motors:
Tata Motors is expected to report a CAGR of 14.4% in Net sales, on the back of volume CAGR of 12.1% for the period FY07-FY09E. It will report an adj. Net profit CAGR of 10.2% for FY07-FY09E. The standalone business at 13.0x FY09E EPS at Rs.738 and subsidiaries at Rs.182/share. Successful acquisitions of global brands Jaguar and Land Rover (JLR) will adversely impact the stock price and sentiment in the near term. HDFC maintains a BUY rating on the stock with a target price of Rs. 920 from a one-year perspective.

Tata Steel:
The company currently trades at a P/E of 7.4x its FY09E EPS of Rs 115 per share, which is at ~30% di…

good scrips for investment

Gentlemen Fundamentally good best investment for a 12 month horizon period. a) NTPC b) Central Bank c) IDBI d) UCO Bank e) MTNL f) Powergrid g) Canara Bank Above scrips may appreciate by 100% purely on fundamental valuations in a span of 12 - 15 months

Strong Q3 numbers energise Reliance Energy

Reliance Energy rose 1.05% to Rs 2,286 at 13:17 IST on BSE on posting 50.02% rise in net profit to Rs 301.6 in Q3 December 2007 over Q3 December 2006. The company announced the results during market hours today, 17 January 2008. Meanwhile, BSE Sensex was up 65.25 points or 0.37% to 19,937.95. On BSE, 9.64 lakh shares were traded in the counter. The stock had an average daily volume of 14.91 lakh shares in the past one quarter. The stock hit a high of Rs 2,350 and a low of Rs 2,171.35 so far during the day. The stock had hit a 52 week high of Rs 2,631.70 on 10 January 2008 and a 52 week low of Rs 448.20 on 5 March 2007. The scrip of India's second largest power utility by revenue had outperformed the market over the past one month till 16 January 2008, rising 18.7% as compared to the Sensex's return of 4.13%. It also outperformed the market in the past one quarter, rising 19.02% as compared to the Sensex's rise of 10.39%. The company's current equity is R…

Orchid Chemicals scales 52-week high on healthy Q3 numbers

Orchid Chemicals & Pharmaceuticals rose 2.79% to Rs 316.30 at 12:09 IST on BSE after posting 91.06% rise in net profit to Rs 54.11 crore in Q3 December 2007 over Q3 December 2006. The company announced the results during market hours today, 17 January 2008. Meanwhile, BSE Sensex was up 13.75 points or 0.07% to 19,884.84. On BSE, 12.48 lakh shares were traded in the counter. The stock had an average daily volume of 4.26 lakh shares in the past one quarter. The stock hit a high of Rs 328. It is also a 52 week high for the scrip. It hit a low of Rs 304.25 so far during the day. The stock had hit a 52 week low of Rs 176 on 22 August 2007. The mid-cap scrip had outperformed the market over the past one month till 16 January 2008, rising 25.26% as compared to the Sensex's return of 4.13%. It also outperformed the market in the past one quarter, rising 38.63% as compared to the Sensex's rise of 10.39%. The company's current equity is Rs 65.84 crore. Face value p…

RIL slips despite robust Q3 results

Reliance Industries declined 1.4% to Rs 3,055 at 11:10 IST on BSE despite posting a robust 162.2% rise in net profit to Rs 8,079 crore in Q3 December 2007 over Q3 December 2006. The company announced the results during market hours today, 17 January 2008. Meanwhile, BSE Sensex was down 101.34 points or 0.51% to 19,766.71. On BSE, 6.56 lakh shares were traded in the counter. The stock had an average daily volume of 9.41 lakh shares in the past one quarter. The stock hit a high of Rs 3,139 and a low of Rs 3,035so far during the day. The stock had hit a 52 week high of Rs 3,252.10 on 15 January 2008 and a 52 week low of Rs 1,250 on 5 March 2007. The large-cap scrip had outperformed the market over the past one month till 16 January 2008, rising 13.54% as compared to the Sensex's return of 4.13%. It also outperformed the market in the past one quarter, rising 20.28% as compared to the Sensex's rise of 10.39%. The company's current equity is Rs 1,453.65 crore. Fac…

Healthier Future for India from McKinsey

Affordable care, preventive medicine, and healthy behavior must be the pillars of India’s health care reform.Rajat GuptaJanuary 2008Over the past four years of historic economic growth, leaders in India have come to realize that to emerge as a global economic superpower, the country must invest in its social fabric—in particular, education and health care. These investments are all the more necessary, as India is expected to become the world’s most populous country by 2035. It is already the youngest: home to 20 percent of the world’s people under 24 years of age. Without a doubt, this realization is a big step forward, but it isn’t enough.India should also develop innovative approaches that will enable its leaders in all corners of society—business, government, and civil society—to help build an educated workforce and a healthy country. Having spent much of my life in a dialogue among business, government, and civil society, I truly believe that when they work…

Kavveri Telecom Products gains on overseas acquisition

Kavveri Telecom Products was up 1.92% to Rs 286.15 at 14:16 IST on BSE on acquiring two foreign firms through its Canada-based arm.The company made this announcement during trading hours today, 16 January 2008. Meanwhile, BSE Sensex was down 645.32 points or 3.19% to 19,605.77. On BSE 1.06 lakh shares were traded in the counter. The scrip had an average daily volume of 38,623 shares in the past one quarter. The stock hit a high of Rs 294.75 and a low of Rs 285 so far during the day. The stock had a 52-week high of Rs 304.70 on 2 January 2008 and had touched a 52-week low of Rs 44.10 on 28 March 2007. The mid-cap scrip had outperformed the market over the past one month till 15 January 2008, gaining 26.81% compared with the Sensex's return of 5.14%. It had also outperformed the market in the past one quarter, surging 63.18% compared with the Sensex's rise of 8.20%. The company's current equity is Rs 10.06 crore. Face value per share is Rs 10. The current pri…

Orbit Corporation strengthens

Orbit Corporation rose 1% to Rs 966 at 10:42 IST on BSE after its equity holding in Orbit Shelter was raised to 100% from 35% earlier. Consequently, Orbit Shelter has become a wholly owned subsidiary of the company. The company made this announcement after trading hours on Tuesday, 15 January 2008. Meanwhile, BSE Sensex was down 368.95 points or 1.82% to 19,882.14. On BSE 18,769 shares were traded in the counter. The scrip had an average daily volume of 1.84 lakh shares in the past one quarter. The stock hit a high of Rs 975 and a low of Rs 940.70 so far during the day. The stock had a 52-week high of Rs 993 on 4 January 2008 and had touched a 52-week low of Rs 90 on 12 April 2007. The mid-cap scrip had outperformed the market over the past one month till 15 January 2008, gaining 20.17% compared with the Sensex's return of 5.14%. It had also outperformed the market in the past one quarter, rising 55.81% compared with Sensex's rise of 8.20%. Orbit Corporation…

hdfc infrasture fund

HDFC has also joined the bandwagon to launch an infrastructure fund like other AMCs. Everybody is painting a rosy picture of Indian infrastructure. However, their is no master plan and it is a haphazard growth story with various governments coming to power scrapping previous regimes work / projects and rampant corruption in awarding tenders.

HDFC Infrastructure Fund - Features
Closed Ended Fund - 3 years Will be converted into open ended after 3 years
To seek long term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure Minimum Rs. 5,000 and in multiples of Rs. 100 thereafter per application Till conversion of the scheme into an open-ended scheme, the scheme will offer for redemption / switch-out of units on an ongoing basis at monthly intervals at NAV based prices. The redemption / switch-out of units will be available only dur…

recommadations

Name of stock    Reached high cmp               commentPnb gilt        5241Book profit partly above 50Sirpur paper   155123HoldAdhunik metal  240 205Book profit partly  above 225Western ind ship  5141Profit booking was advised at at above 45 levels.Era construction930850Book  50 % of profit swtich to indian hume pipes or atlas copco at 1460 ( do not buy at above 1550Torrent cable        430      390HoldBag film              10182Book  40 % & hold remainingRamsarup ind  300250-                      holdOswal chemcial        7663HoldIfci                  12082HoldStelco   6851Profit booking was advised at above 60Psl 550490 HoldJ p asso        25002250 ( ten paid )  Hold on.Century tex  12001150 HoldPrime textiles  105 89HoldPatel logistic  12589 HoldAmrutanjan 674 492 HoldJayawal neco    73 71

RELIANCE PERTOLIUM LTD UPDATES

-- Reliance Petroleum Ltd has announced that the Company has successfully completed the second year of implementation of its complex refinery, coming up in a Special Economic Zone at Jamnagar. The Company has achieved 82% overall progress in just 24 months since commencement of the Project. Based on the progress so far, the Company is on course to complete the project ahead of its initial schedule of December 2008.

During the quarter, project implementation gained further momentum and led to achievement
of several significant milestones, including the following:

- Engineering activities are nearing completion.
- Overall procurement progress exceeded 97%.
- More than 75% of equipments and tagged items already received at site.
- Deliveries of over dimensional cargos (ODC) and super ODCs are nearing completion.
- Over 40% of equipments have been erected; Project skyline changed dramatically.
- Overall construction progress crossed the 60% mark for the complex.
- Structural and pipe fabrica…

Demand for hotel rooms will continue to outstrip supply

Demand for hotel rooms will continue to outstrip supply, says American Express Consulting Bangalore shows maximum room increase in APAC region.

The American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast released in Sydney today reports that demand for hotel rooms will continue to outstrip supply forcing up the
corporate negotiated rates in all major cities around the region.

In addition to the rate projections, the analysis by American Express Consulting, a division within Global Commercial Card, highlights the emergence of several new trends that will impact on a corporation's
ability to manage its hotel spend.

Firstly, a new generation of travellers are stimulating the supply of new types of rooms and new styles of hotels. Secondly, corporate social
responsibility policies are starting to influence buying decisions, and finally the movement of hotel pricing practices from static to dynamic models.

"Travel Managers and Procurement prof…