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Showing posts from January 20, 2008

BUY BHEL

Buy BHEL, target Rs 3250: HSBC HSBC Global research has maintained buy ratng on BHEL with target price of Rs 3250 implying upside potential of 55% in its January 24, 2008 report. "We expect BHEL to report an EPS CAGR of 36% over FY07-10e driven by 31% revenue growth and 110bps margin improvement over the same period. BHEL already has a 69.6% share of the thermal business in the 11th Five- Year Plan. We believe the risk to our forecasted revenue growth is low because 62% of the 11th Plan project has already been ordered, resulting in an outstanding order backlog of Rs 724 billion, which is 4x FY07 revenue. The operating leverage and already awarded project, at better pricing, will help BHEL to improve the margin by c110bps over FY07 10e. Valuation supported by strong order book. At our 12-month target price of Rs 3,250, BHEL will be trading at 26xFY10e which is based on strong revenue growth visibility provided by the 58% y-o-y increase in the order book," according to HSBC G…

Investments in the realty sector to harness rich capital gains

The realty sector in the country is all set to enter into a new era in 2008 with a plethora of investment options lined up in the coming months. Investors may invariably be in a dilemma as to where to invest and what percentage should be earmarked for each category in the investment portfolio.

It is one area where both yield and capital appreciation is assured for investors. What is more, today, one can use the asset acquired over the years to raise short term funds for a rainy day through multiple options like mortgage loan against immovable property , loans against rental income and reverse mortgage for senior citizens.

Residential property


Those looking at residential property should remember there are three pertinent factors which are beyond investors' control like increase in land cost, input cost and registration fee. They are moving up at regular intervals irrespective of the government in power and its policies to supplement the revenue for the exchequer . Th…

10 stocks to make young investors crorepatis - Source : rediff.com

January 21, 2008
It fell like the proverbial house of cards. The 30-stock benchmark of the Indian stock exchange, the Sensex, recorded its biggest crash on January 21. The index closed the day at 17,605 points, down a precipitous 1,400 points.While the event is likely to send shudders down the spines of investors across all age groups for the young brave hearts amongst you we have got ten stock picks that can make you millionaires. The caveat, however, is that you need to hold them for a long period: ten years if you can to reap the benefits of picking stocks that will create value for you.We asked brokerage house K R Choksey Shares and Securities to hone in on ten stocks that will create value for investors in the long run. Gaurang Shah, vice president, equity research at K R Choksey Shares and Securities came up with these ten gems for long term investors just a few days before January 21. Over to him.Here are our top picks which have the potential to be multibaggers ( a …

BRPL surges on strong Q3 show

Bongaigaon Refinery & Petrochemicals jumped 12.89% to Rs 67 at 9:56 IST on BSE, on reporting 143.5% surge in net profit to Rs 84.90 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Wednesday, 23 January 2008. Meanwhile, BSE Sensex was up 426.59 points or 2.42% to 18,020.66, tracking firm global markets. US stocks spurted on Wednesday, 23 January 2008, on optimism that a government plan to rescue ailing bond insurers is taking shape and could prevent billions more in credit losses. The US market also drew support from growing confidence that aggressive interest-rate cuts by the Federal Reserve could help stabilize the economy and support the beleaguered banking sector. On BSE, 36,125 shares were traded in the counter. The scrip had an average daily volume of 18.72 lakh shares in the past one quarter. The stock hit a high of Rs 70 and a low of Rs 63.90 so far during the day. The stock had a 52-week high of Rs 116.80 on…

reommedations

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20 stocks that can make you rich

January 23, 2008
One of the fundamental principles of investing or wealth maximisation is to buy stocks at the right price which is difficult to achieve in a market that has been moving up since the last four years.The current mayhem in the domestic stock market provides an opportunity to buy quality stocks at cheaper valuations. After the bloodbath in the last few days, which saw bouts of selling across the board, many experts believe that this is the right time to identify and pick good stocks, as valuations are fairly attractive relative to fundamentals.Most investment experts believe that fundamentally nothing has changed and that India remains a long-term growth story with GDP expected to grow in excess of 8 per cent over the next few years. Check out the more than 20 stocks (in the table below) that experts believe can make you a fine packet over time.The domestic consumption-led demand augurs well for the economy as it largely insulates it from the potential slowdown i…

Bollywood calling

Niren Shah / Mumbai January 21, 2008Technological advances, increasing corporatisation  and favourable macroeconomic conditions promise excellent rewards for those who tune in. It has been a few months now that concerns of a global economic slowdown have been looming large across industries, which has been adequately reflected in the volatility in the equity markets too. Amid this turmoil, there is also a streak of hope rising from back home, where growing domestic consumption, increasing disposable incomes and a continued economic growth of over 8 per cent a year promises to keep the engines of industry running and in turn, cash registers ringing. It is therefore logical to cast a serious eye toward those sectors, which are likely to ride the domestic consumption wave over the coming few years. The filmed entertainment segment of the Indian media industry is one of the top contenders in this space, with t…

Here is a BUY List from ENAM Securities Research and ICICI Securities.

Here is a BUY List from ENAM Securities Research and ICICI Securities.

ICICI Securities Research List:

Scrip + 12Mth Target Price + Expected Returns
HDIL 2076 145
Sobha Developers 1324 106
Balrampur Chini 116 73
Ashok Leyland Auto 55 72
Tata Tea 1050 66
Tata Steel 1090 62
3i Infotech Technology 180 62

MTNL 194 62
Sun Pharmaceutical 1553 61
Gateway Distripack 164 61
Bajaj Auto 3292 60
Glenmark Pharmaceutical 702 59
Reliance Communication 898 56
Sesa Goa 3989 52
Zee News 80 51
India Cement 300 49
Bank of Baroda 550 49
Ranbaxy 503 48
GAIL 600 47
ITC 270 47
Reliance Industries 3449 46
IDFC 250 41

Lehman Brothers Top 10 Picks in India Now:
1. ICICI Bank
2. Punjab National Bank
3. Tata Motors
4. L&T
5. Nagarjuna Construction
6. Infosys Technologies
7. Nicholas Piramal
8. Reliance Industries
9. NTPC
10. Unitech

What exactly is an IPO?

When a company wants to raise money, one of the ways it can do so is by selling its equity shares to the public. If it happens to be the first public offer of the company, it is known as the initial public offer (IPO).

In an IPO, the promoters share in the company's equity comes down, as the number of shares issued by the company (paid-up capital) increases.

After the IPO, the shares get listed on the stock exchange and shareholders can trade their shareholdings on the bourses.To make an IPO, a company has to file a prospectus with the Securities and Exchange Board of India (SEBI) stating the purpose of raising the money and disclosing other details of the company and its directors.

Once it is approved by SEBI, the company files the prospectus with the registrar of the company to initiate the process of IPO. According to SEBI norms, a minimum of 30% of any IPO is reserved for retail investors — those who are applying for shares worth less than Rs 1,00,000.

The shares a…

Zenith Birla surges on stock split, bonus proposal

Zenith Birla India surged 4.99% to Rs 63.15 at 9:57 IST on BSE, after the company said its board will consider a 5-for-1 stock split in a meeting to be held on 28 January 2008. The company made this announcement after trading hours, on Friday, 18 January 2008. Meanwhile, BSE Sensex was down 429.44 points or 2.26% to 18,584.26, as Asian markets fell after a proposed US stimulus package failed to soothe fears the US will tip into recession. On BSE, 250 shares were traded in the counter. The scrip had an average daily volume of 2.50 lakh shares in the past one quarter. The stock hit a high of Rs 63.15 and a low of Rs 63.15 so far during the day. The stock had a 52-week high of Rs 79.70 on 4 January 2008 and a 52-week low of Rs 29.40 on 28 March 2007. The mid-cap scrip had underperformed the market over the past one month till 18 January 2008, declining 10.22% compared to the Sensex's decline of 0.78%. It had outperformed the market in the past one quarter, rising 62.35…

Parsvnath aims $15 billion investment in 5 years

NEW DELHI: Aiming to turn a 'conglomerate' from being a real estate major, Parsvnath Developers on Sunday announced an investment of Rs 60,000 crore (15 billion dollars) in next five years in diversified areas like SEZs, airports, express ways and retails business.

"We shall be bidding for upcoming airports like Udaipur, Greater Noida, Maharashtra and other states. Besides, SEZs will be another major investment area in the coming three to five years," Pradeep Jain, Chairman of Parsvnath Developers Limited, told reporters.

Asked about the source of funding, Jain, who started as a broker about 15 years back grew to become India's leading real estate developer, said "funding for new businesses will not be an issue... we shall leverage from our huge large land bank".

Among the major projects, Parsvnath would be focusing on development of SEZs, hotels, highways, retail and telecom, he said adding the company has 191 million square feet of develo…

Stock valuations are not about earnings alone

Listing of subsidiaries, re-rating of peers within a sector and news of private equity deals are among the factors that can transform the valuation picture.
Srividhya SivakumarHealthy growth in corporate earnings, rising institutional interest and ample liquidity have been the main drivers of high stock prices over the past three years. Conventional parameters apart, the recent re-rating of stocks has also been driven by other factors. Companies are valued not just for their core businesses but also for other strengths that have the potential to add value to core operations. Here are a few such triggers investors need to take note of: Listing of subsidiaries With the primary market in spate, companies seeking to hive off a new business for subsequent listing stand to receive an attractive valuation for the new business that isn't captured in the company's books. The listing of a subsidiary by an existing company has more often than not delivered value to the holding…