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Showing posts from February 17, 2008

How the Sensex is calculated

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For the premier Bombay Stock Exchange that pioneered the stock broking activity in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called The Stock Exchange, Mumbai by paying a princely amount of Re 1.

Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market.

Sensex is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies.
The base year of Sensex is 1978-79 and the base value…

SKF India Ltd.(buy)--indian stock market

                  SKF India Ltd. - Q4CY07 Update, CMP Rs.365, Maintained Buy, with a Target Price Rs.540For SKF India, 2007 has been a historical year. It marked 100 years of its existence in India and more importantly, it posted one its best         financial        performances ever for year ended 31st December 2007. For the 12 months ended 31st December 2007, the company posted net sales of Rs.1,568.30 crore, a 17% increase on a YoY basis. EBIDTA surged by a very healthy 52% at Rs.265.24 crore. PBT rose higher by 64% at Rs.247.36 crore. PAT was up by a smart 58% at Rs.160.71 crore, its highest PAT ever! ·On an equity capital of Rs.52.73 crore, the EPS of the company stands at Rs.30.50, up from Rs.19.30 posted in 2006. ·Shareholding pattern of the company is 54% with the promoters, 27% with the mutual funds, insurance companies and FIIs while 19% is held by the public. ·The company is setting up a new facility at Ahmedabad to manufacture larg…

bjaja electricals--buy( friday telefolio)

Electrifying growth to continue In spite of the track record of consistent high growth and promising future, the scrip continues to be available at attractive valuation Buy Bajaj ElectricalsBSE Code500031NSE CodeBAJAJELECBloombergBJE@INReuterBJEL.BO52-week High/Low Rs 740 / 189Current PriceRs 498 (as on 22nd February 2008)A part of the Shekhar Bajaj Group (Promoter holding: 67.49%), Bajaj Electricals (BEL) is a 69-year-old Engineering company, with interest in Lighting, Luminaires, Appliances, Fans, and Engineering & Projects. It has 19 branch offices, a chain of 600 distributors, 3000 authorised dealers, over 1,20,000 retail outlets and over 200 service franchises spread across the country. PAT up 90% for the quarter and 103% for the nine month ended December 2007 The company has been focusing on enhancing revenue growth through introduction of new products, expansion of the dealer and retailer network along with good brand building efforts. The various actions that the company h…

FM radio broadcasters in demand

Two FM radio broadcasters rose between 5% to 5.5% after the telecom regulator recommended allowing ownership of multiple FM channels by a single operator and raising the foreign direct investment limit. Entertainment Network India rose 5.5% to Rs 476.45 and Mid-Day Multimedia hit 5% upper circuit at Rs 40. Meanwhile, BSE Sensex was down 342.17 points or 1.93% to 17,392.51 as US and Asian stock markets fell on heightened fears of a US recession. Entertainment Network India's net profit declined 35.1% to Rs 8.05 crore on 45.6% rise in sales to Rs 68.05 crore in Q3 December 2007 over Q3 December 2006. Mid-Day Multimedia's net profit declined 55.2% to Rs 0.99 crore on 5.7% rise in sales to Rs 28.22 crore in Q3 December 2007 over Q3 December 2006

Bliss GVS Pharma gains on setting record date for stock split

Bliss GVS Pharma gained 1.10% to Rs 494.75 at 11:01 IST on BSE, on setting record date for a 10-for-1 stock split. On BSE, 1,306 shares were traded in the counter. The scrip had an average daily volume of 5,577 shares in the past one quarter. The stock hit a high of Rs 505.10 and low of Rs 480.60 so far during the day. The stock had a 52-week high of Rs 785.85 on 18 January 2008 and a 52-week low of Rs 41.05 on 5 March 2007. The small-cap scrip had underperformed the market over the past one month till 21 February 2008, declining 22.87% compared to the Sensex's return of 0.80%. It had outperformed the market in the past one quarter, gaining 2.15% compared to Sensex's decline of 5.93%. The company's current equity is Rs 6.31 crore. Face value per share is Rs 10. The current price of Rs 494.75 discounts its Q3 December 2007 annualized EPS of Rs 52.61, by a PE multiple of 9.40. Bliss GVS Pharma has fixed 18 March 2008 as the record date for a 10-for-1 stock sp…

Bliss GVS fixes Record Date for Stock Split

Bliss GVS Pharma Ltd has informed BSE that March 18, 2008 has been fixed as the Record Date for the purpose of stock split of Rs 10/- per share of the Company into the shares of Rs 1/- each.

US interest rate cut hope invigorates IT stocks

Six IT stocks rose between 3.62% to 7.59% at 12:36 IST on BSE after US Federal Reserve signaled its intention to keep cutting rates and Hewlett-Packard Corporation gave a strong profit outlook. Meanwhile, BSE Sensex was up 76.16 points or 0.43% to 17,677.88, on positive cues from the global markets. Satyam Computer Services (up 7.59% to Rs 454.55), Mphasis (up 6.56% to Rs 247), Patni Computer Systems (up 5.86% to Rs 267.50), Tata Consultancy Services (up 4.85% to Rs 927.50), Wipro (up 3.82% to Rs 427) and Infosys (up 3.62% to Rs 1,625) edged higher. Hewlett-Packard Corporation reported quarterly profit that beat Wall Street's estimates. Investors in US markets bet strong overseas sales will sustain profits in the computer industry. Meanwhile, minutes from the Federal Reserve's latest policy setting meeting revived optimism that the central bank will stay aggressive to keep the economy from falling into recession. Exports to United States, contribute to more than …

Sensex may hit 29,000 next June

Like Mumbaikars caught unawares by the recent spell of cold wave, investors have been struggling to adapt to the recurring bouts of volatility on the bourses over the last one month. But the weathermen of Dalal Street are expecting sunny skies by the end of this calendar year. Five of the six participants at the ET Round Table see the bellwether BSE Sensex between 20-22,000 then. The panelists included Narayan Ramachandran, MD & Country Head, Morgan Stanley; Pankaj Vaish, MD & Head equities and fixed income, Lehman Brothers; Ved Prakash Chaturvedi, MD & CEO, Tata Asset Management; Gaurang Shah, MD, Kotak Life; Rashesh Shah, CEO, Edelweiss Capital; and Motilal Oswal, Chairman, Motilal Oswal Securities. The session was moderated by Ramesh Damani, director, Ramesh S Damani Finance. Only one participant, Ved Prakash Chaturvedi felt that the market was likely to be around 18,000 levels on December 31, 2008. "But that does not mean that mutual fund investors wil…

Welspun Gujarat Stahl Rohren strengthens on backward integration plan

Welspun Gujarat Stahl Rohren rose 4.57% to Rs 487.55 at 11:21 IST on BSE on reports the company is planning to set up a 2 million tonnes per annum steel plant in Mundra, Gujarat, under its backward integration plan. Meanwhile, BSE Sensex was up 181.63 points or 1.08% to 17,807.52, on positive cues from the global markets. Asian stocks rose today as Wall Street steadied overnight, helped by strong quarterly earnings and the prospect of lower interest rates. On BSE, 5.18 lakh shares were traded in the counter. The scrip had an average daily volume of 4.94 lakh shares in the past one quarter. The stock hit a high of Rs 491.90 and low of Rs 474 so far during the day. The stock had a 52-week high of Rs 537.70 on 17 January 2008 and a 52-week low of Rs 90 on 28 February 2007. The mid-cap scrip had outperformed the market over the past one month till 20 February 2008, rising 7.27% compared to the Sensex's return of 5.31%. It also outperformed the market in the past one quar…

MFs buy bank shrs aggressively as outlook upbeat

MUMBAI - Domestic mutual funds have been aggressive buyers of bank
stocks since the past one week. The interest in bank stocks was
because of an upbeat outlook for the sector on hopes of declining
interest rates, which is seen boosting the credit off-take and
treasury income of banks.
   "Banks have started slashing PLR (prime lending rate), which
increases the credit off-take and improves overall bottomline...Now
the growth potential in banking sector is good," said R.K. Gupta,
managing director, Taurus Mutual Fund.
   India's major lender, State Bank of India, last week announced a
25-basis-point cut in its benchmark prime lending rate that fuelled a
rally in SBI as well as other bank stocks.
   Following SBI's move, Bank of India announced a cut in home loan
rates and automobile loan rates by 25 bps each and on educational loan
by 50 bps.
   Housing Development Finance Corp Ltd, Canara Bank, and Allahabad
Bank have already cut their lending rates earlier this month. Many
other…

L & T bags PRESTIGIOUS ORDER

PRESS RELEASEIndian Companies Bag Prestigious OrdersLarsen & Toubro (L&T), one of the largest private sector companies in India, formally signed a contract this morning with Kuwait National Petroleum Company (KNPC) for manufacture and supply of 22 Hydrocracker & ARDS Reactors for KNPC's prestigious "Clean Fuel Project 2020". The total value of the contract is KD 117.89 million, equivalent to USD 421 million. This is the largest ever order placed with any single manufacturer in the world for such critical reactors.   Another contract was signed this morning between the Bridge & Roof Co. (India) Ltd, a Government of India Enterprise, with Kuwait Oil Company (KOC) for a contract for construction of Dry Crude Oil Tank at Gathering Center (GC 01) which includes demolition of two existing tanks with new piping and associated work. The value for this Contract is KD 2,350,700, equivalent to USD 8.44 million. The duration for this contract is 15 mont…

Shriram EPC attracts 14% premium

Wind turbine manufacturer and engineering firm Shriram EPC was hovering at Rs 341.50 in early trade, a premium of 13.8% over IPO price of Rs 300. The stock debuted at Rs 290, a discount of 3.3% over the IPO price. The stock hit a low of Rs 285 and high of Rs 374.70 in early trade. On BSE, 10.2 lakh shares changed hands in the counter. The current price of Rs 341.50 discounts the year ended March 2007 EPS of Rs 3.3, by a PE multiple of 103.4. Shriram EPC IPO had ended with 3.91 times subscription on 1 February 2008. The IPO had received bids for 1.95 crore shares as against 50 lakh shares on offer. The qualified institutional buyers (QIBs) portion was subscribed 6.13 times, the non institutional investors portion was subscribed 0.41 times and the retail investors portion was subscribed 0.62 times. The price band for the IPO was Rs 290-330. Shriram EPC is a service provider of integrated design, engineering, procurement, construction and project management services for r…

FUNDAMENTALLY GOOD STOCKS

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 b…

Parsvnath Developers forms JV with Royal Orchid Hotels Ltd to develop 10 hotels; To invest Rs 500 crores over 5 years

parsvnath Developers Ltd on February 20, 2008 announced a joint venture between its subsidiary, Parsvnath Hotels Ltd (PHL) and Royal Orchid Hotels Ltd (ROHL), one of India's fastest growing hospitality Companies, to develop and manage hotels across country.PHL and ROHL have signed an agreement to form a joint venture where PHL will hold the majority stake of 70% with ROHL 30%. Royal Orchid Hotels will manage the hotels and the Joint Venture Company will own and develop these projects. The Joint Venture Company will operate under the name of "Parsvnath Royal Orchid Hotels".Under the agreement, Parsvnath Royal Orchid Hotels proposes to develop 10 hotel projects in next five years across India, categorized into four 5-star, four 4-star and two 3-star hotels, resorts and serviced apartments. The construction on these hotels would involve an investment of over Rs 500 crores spread over the period of three to five years.There would be at least 1000 rooms would be built under t…

3i Infotech hardens on Chinese JV

3i Infotech surged 5.13% to Rs 124 at 12:07 IST on BSE, after the company said it has signed a non-binding memorandum of understanding with Yucheng Technologies, China to set up a 51:49 joint venture. The company made this announcement during market hours today, 19 February 2008. Meanwhile, BSE Sensex was up 212.29 points or 1.18% to 18,260.34, tracking firm Asian markets. On BSE, 42,924 shares were traded in the counter. The scrip had an average daily volume of 2.02 lakh shares in the past one quarter. The stock hit a high of Rs 124.45 and a low of Rs 119 so far during the day. The stock had a 52-week high of Rs 164.50 on 17 May 2007 and a 52-week low of Rs 85 on 22 January 2008. The mid-cap scrip had underperformed the market over the past one month till 18 February 2008, declining 10.34% compared to the Sensex's decline of 5.08%. It had also underperformed the market in the past one quarter, declining 11.75% compared to Sensex's decline of 6.39%. The company…

Rural Electrification Corporation --subscribe for listing gains

CM RATING47/100 Rural Electrification Corporation(REC), a public institutions financing power infrastructure in India, proposes to enter the capital markets with a public issue of 156.12 million equity shares of Rs 10 each through 100% book building process.

The issue comprises a fresh issue of up to 78.06 million equity shares by REC and an offer for sale of up to 78.06 million equity shares by the president of India acting through the ministry of power. The net issue to the public will be up to 152.21 million equity shares, after allowing for reservation of up to 3.90 million equity shares for subscription by eligible employees. The issue shall constitute nearly 18.18% of the fully diluted post-issue capital of REC. Net proceeds from the fresh issue are to be utilised to augment capital base to meet the …

BSE revises Group A list

MUMBAI: The Bombay Stock Exchange (BSE) on Monday announced the revised list of Group A companies that comprises 200 scrips.

Among the scrips added in the list are Aban Offshore, ABG Shipyard, Adlabs Films, Akruti Nirman, Biocon, Cairn India, Deccan Aviation,  Deccan Crhonicle,  DLF, Educomp Solutions, Financial Technologies, GVK Power, IndiabullsReal Estate  YES BANK
The revised list of group 'A' companies will come into effect from March 3, a BSE release said here.

KOHINOOR BROADCASTING-- A HIDDEN GEM

KOHINOOR BROADCASTING CORPORATION LIMITED
BSE Code: 531336
Book Value: Rs.15.95
Market Cap: Rs.104.14 Cr
Face Value: Rs.10
Market Performance: Out-performer
Target: Rs.70--Rs.80 in 12 -18 months time frame

Introduction: Kohinoor Broadcasting Corporation Ltd was incorporated by a group of professionals with Mr. Harjinder Singh and Mr. Mangal Singh as key promoters of the Company since its incorporation on 11 October 1994. During 2003 the Board decided to establish facilities for production of advertisements, TV programmes music programmes and certain other entertainment related activities. The Company is currently engaged in the media and entertainment industry with a particular focus on the TV sector or Visual Media
The Company has diversified in the production of TV programmes including current affairs, music, serialised drama and other entertainment programmes.The Company has got approval from Ministry of Broadcasting for setting up earth station for up-linking the television channels. The…