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Showing posts from March 16, 2008

Half the companies listed since 2006 ruling below offer price

Stocks across the sectors take a beating
K.S. Badri Narayanan Chennai, March 21Investors who subscribed to the initial public offer, in the first quarter of 2006, of shares by Sadbhav Engineering are a fortunate lot. Against an investment of Rs 185, the stock closed at Rs 1,080 on Wednesday, an appreciation of more than five-fold in the space of just two years. So, is investing in initial public offerings (IPO) a safe bet? The answer is no, if we go by the performance of the IPOs of the last two years. Actually there is one in two chance that you wouldn't have made any money at all. According to data available on NSE Web site, around 181 companies had come out with IPOs to raise money since the commencement of the bull-run that began in early 2006. Of these, about 50 per cent – 92 stocks to be precise – are quoting below the issue price. Seventy companies approached the market for funds in 2006. The number increased to 89 in 2007 and it is 13 in the year to date. IPOs ha…

Pyramid Saimira Theatre firmly in the picture after China foray

Pyramid Saimira Theatre surged 7.32% to Rs 311.65 at 14:08 IST on BSE on signing an agreement with China Society of Music Research Board, Ministry of Culture, Government of People's Republic of China to promote cultural cooperation. The company made this announcement during trading hours today, 19 March 2008. On BSE, 1.52 lakh shares were traded in the counter. The scrip had an average daily volume of 99,580 shares in the past one quarter. The stock hit a high of Rs 330 and a low of Rs 301 so far during the day. The stock had a 52-week high of Rs 551 on 31 December 2007 and a 52-week low of Rs 245.20 on 29 March 2007. The small-cap scrip had outperformed the market over the past one month till 18 March 2008, declining 11.19% compared to the Sensex's fall of 17.81%. It had underperformed the market in the past one quarter, declining 31.53% compared to Sensex's decline of 22.31%. The company's current equity is Rs 28.28 crore. Face value per share is Rs 1…

Performance awards for 21 power utilities

Our Bureau New Delhi, March 20 The Centre on Thursday presented 21 power utilities, including NTPC Ltd, Tata Power and PGCIL, with national awards for meritorious performance during the year 2006-07. The country's largest power generating company NTPC Ltd received four awards for the performance of its Simahdri, Talcher and Kaniha, Korba and Vindhyachal power stations. Three projects of PGCIL and two of Andhra Pradesh Power Generation Corp were also presented with the national awards for Meritorious Performance in 2006-07. Tata Power, Reliance Energy, JSW Energy and Torrent Power and electricity utility of Tamil Nadu were also among the companies awarded. While presenting the awards, the Power Minister, Mr Sushilkumar Shinde, said: "There has been improvement in all fields of the power sector. However, due to the increasing demand of energy, the country is still facing energy shortage of 9.5 per cent and peak demand shortage of 15.8 per cent

record dates

SymbolSeriesRecord DateEx DatePurposeCONCOREQ17/04/200816/04/2008BONUS - 1:1CROMPGREAVEQ4/4/20083/4/20083RD INTERIM DIVIDENDEMCOEQ25/03/200814/03/2008FV SPLIT RS.10/- TO RS.2/GANDHITUBEEQ26/03/200817/03/2008FV SPLIT RS.10/- TO RS.5/KNLEQ########4/4/2008FV SPLIT RS.10/- TO RE.1/

Riding the airwaves

Niren Shah / Mumbai March 17, 2008The Indian information technology and software space has lost its charm over the past one year due to the rising rupee as well as the imminent US slowdown, which is likely to result into cuts in IT-budgets of multinationals around the world. This means slower revenue and profit growth for most software majors across the board. More so, discretionary IT expenditure would be the first to be chopped off by the clients abroad. On the other hand, generic service providers catering to sectors like banking and financial services or insurance, with services which are somewhat indispensable too would face margin pressures due to lack of growth in the underlying sector, the loss of pricing power and the need to increase offshoring. One therefore wonders whether software services companies could be trusted or not for investing. It is however, not yet the moment to despair, since there are othe…

Cipla scores a generic win over Roche

NEW DELHI: In what could be a shot in the arm for Indian generic drug makers, the Delhi High Court on Wednesday rejected an injunction plea by Swiss drug major Roche to prevent Cipla from manufacturing and selling generic versions of its patented anti-cancer drug Tarceva (Erlotinib) in India.

The Indian drug maker's generic version of Tarceva is priced at one-third the price of Tarceva and the HC rejected Roche appeal in public interest given the huge cost difference between the two drugs.

However, this is only an interim order and HC will deliver its final judgement at the completion of the hearing. The court has also directed Cipla to keep a separate record of the sale of its generic anti-cancer drug as it will have to compensate Roche if the final verdict goes in favour of the Swiss company.��������…

RCom rings on global expansion buzz

Reliance Communications gained 3.28% to Rs 513.70 at 12:33 IST on BSE on reports the company is planning to set up WiMax networks across 50 countries in the next three years to move into the global telecommunication market. On BSE, 10.40 lakh shares were traded in the counter. The scrip had an average daily volume of 19.49 lakh shares in the past one quarter. The stock hit a high of Rs 520 and a low of Rs 508 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 376.60 on 19 March 2007. The large-cap scrip had underperformed the market over the past one month till 18 March 2008, declining 18.82% compared to the Sensex's fall of 17.81%. It had also underperformed the market in the past one quarter, declining 30.04% compared to Sensex's decline of 22.31%. The company's current equity is Rs 1032.01 crore. Face value per share is Rs 5. The current price of Rs 513.70 discounts its Q3 December 2007 annualized EPS …

Fed cuts key US interest rates by 3/4 point

WASHINGTON: The Federal Reserve slashed a key US interest rate by three-quarters of a percentage point on Tuesday, a substantial cut but smaller than many in financial markets had expected, as part of an effort to hold off a deep recession and financial meltdown.

The Fed's action, taken on an 8-2 vote of its policy committee, took the bellwether federal funds rate down to 2.25 percent, the lowest since February 2005. Financial markets had largely priced in a full point reduction.

"Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters," the central bank said in a statement outlining its decision.

The Fed also said downsid…

Time to Grab some Valuable Stocks at their 52-week low

Source TopNews The fears of US recession and after-effects of sub prime crisis have caused a massive erosion of investor wealth in the stock markets. The rising oil prices has also dampened the investor sentiment. Indian government is expecting a GDP growth of 8-8.5 per cent compared to an earlier estimate of over 9%. Indian stock markets were near their lifetime high in the start of January 2008 and most of the stocks were trading at lifetime high. Many Indian stocks are available at attractive valuations after the recent stock market meltdown. Agro Dutch touched a 52-week low of Rs 24 on March 17, 2008. Ambuja Cement touched a 52-week low of Rs 96. Binani Industries touched a low of Rs 121 in today's trading
session. The stock touched a high of Rs 131 on NSE and closed at Rs
122.75. The stock is looking attractive at current valuations for
long-term investors. Ansal properties touched a 52-week low of Rs 133.6 on NSE on Tuesday. The stock has touched a 52-week high of Rs 469 recen…

Concor speeds up on setting record date for bonus issue

Container Corporation of India which is known by its acronym Concor rose 0.91% to Rs 1640 at 11:44 IST on BSE after the company set record date for a liberal 1:1 bonus issue. Meanwhile, BSE Sensex was down 53.78 points or 0.36% to 14,755.71. On BSE, 840 shares were traded in the counter. The scrip had an average daily volume of 16,416 shares in the past one quarter. The stock hit a high of Rs 1688 and a low of Rs 1640 so far during the day. The stock had a 52-week high of Rs 2444 on 27 June 2007 and a 52-week low of Rs 1530 on 21 January 2008. The mid-cap scrip had outperformed the market over the past one month till 17 March 2008, declining 5.89% compared to the Sensex's fall of 18.25%. It had also outperformed the market in the past one quarter, declining 9.28% compared to Sensex's decline of 22.38%. The company's current equity is Rs 64.99 crore. Face value per share is Rs 10.

New order buzz energies Reliance Energy

Reliance Energy soared 6.32% to Rs 1266 at 10:42 IST on BSE on reports the company is close to signing an agreement with Indiabulls Real Estate to jointly develop a 6,000 acre multi product special economic zone in Maharashtra's Raigad district. The stock hit a high of Rs 1274.70 and a low of Rs 1161 so far during the day. The stock had a 52-week high of Rs 2631.70 on 10 January 2008 and a 52-week low of Rs 455.05 on 19 March 2007. India's second largest power utility by revenue had underperformed the market over the past one month till 17 March 2008, declining 30.34% compared to the Sensex's fall of 18.25%. It had also underperformed the market in the past one quarter, declining 34.14% compared to Sensex's decline of 22.38%. The company's current equity is Rs 203.10 crore. Face value per share is Rs 10. The current price of Rs 1266 discounts its Q3 December 2007 annualized EPS of Rs 51, by a PE multiple of 24.82. Reliance Energy's net profit ros…

Many scrips hit 52-week lows

ICICI Bank falls to below follow-on issue price 'Bear'ish effect Many recently listed scrips saw their share prices slip below their IPO issue price 'News of JP Morgan bailing out Bear Stearns has had its ripple effect here in our markets'Tania Kishore JaleelMumbai, March 17 Many scrips on the bourses hit their 52-week lows on Monday as the Sensex sank below the 15,000 level. Among the heavyweights, ICICI Bank saw its scrip fall to below its follow-on issue price of Rs 940 today. The scrip was down 13.76 per cent, touching an intra-day low of Rs 743, to close at Rs 757.40. Some of the other scrips that found themselves at their 52-week lows were Orchid Chemicals and Pharmaceuticals Ltd, which tumbled 39.09 per cent, Binani Industries Ltd, which tanked 16.43 per cent, Central Bank, which fell 6.16 per cent, India Hotels Company Ltd, which plunged 9.96 per cent, United Breweries Ltd, which plummeted 15.54 per cent and Dish TV, which dropped 10.70 per cent. Pan…

How to open a demat account

A demat or 'dematerialised' account holds shares in electronic form, thus saving you the bother of holding shares in paper form. Possessing a demat account is now a prerequisite for stock market investments. C. Rajalakshmi Planning to put your money in the IPOs that are coming up? Want to invest in stocks? Then you would have to certainly open a demat account. A demat or 'dematerialised' account holds shares in electronic form, thus saving you the bother of holding shares in paper form. Possessing a demat account is now a prerequisite for stock market investments. Demat services are provided by banks, financial institutions and stock broking houses. The broking houses in such cases also act as DPs (depository participants) intermediating between the depositories — CDSL or NSDL and the investor. To open a demat account, you have to make an application to a DP and submit required documents. Once you have a demat account to your name, you can open a trading acc…

stock recomedations

1 atlascopco below 850 high devidend yield stock 2. bhel below rs1810 The company continues to dominate the sub-critical equipment segment. higher order book 3.ece indusries below rs 375 indusrty can grow 5times by 2015 4. IDBI below rs 92 -- Details about the follow-on public offer (FPO) and rights issues are still being worked out between the bank and the government and cannot be disclosed unless the scheme is approved 5 rajesh export below rs90 good juwellery business 6 RPL below rs145, plant is going to start production by june2008 7.walchand below rs 500 8- sirpur paper is comes down to 80 levels book value above rs 80 dividend 35 % 9- sail 190 very firm steel prices 10- hcc 130 reacted from 279 looks attractive. 11 ifci turn around story reacted from 126 levels. looks very attractive at 47/48 levels 12.IDFC @ 154, good business, strong management 13.Larsen and Toubro @ 2900, best player in the infra sector, sky is
the limit for growth
14 NTPC < 200/-, keep accummulating as would co…

Make investment decisions based on quarterly results

There are a number of factors that influence the movement of stocks on the bourses. We all know that global cues, market sentiments and political and social environment influence stock prices. But the most critical factor that influences market sentiment is the quarterly result. Here's a layman's guide to interpreting a quarterly result that reveals much more that just the performance of the company in question.

TO BUY OR NOT

A company's quarterly financial statements typically contain the profit and loss account for the last quarter, the corresponding results in the previous year, the year-to-date financial performance on the profit and loss account, segment information in a prescribed format, investor grievances and comments on the actions taken by the management to address the auditors' qualifications in the immediately previous audited financial statements. According to analysts, all these information about the company's most recent financial perfor…

Welspun Gujarat Stahl Rohren: Buy

Welspun may benefit significantly from the increased spending by oil and gas companies on E&P activities.

The company has committed itself to a large capacity expansion drive. Srividhya Sivakumar Investments with a long-term perspective can be considered in the stock of Welspun Gujarat Stahl Rohren (Welspun), a leading manufacturer of steel pipes. The company's strong order backlog is supported by a well-timed expansion in capacities. Backward integration by way of setting up of a steel plate manufacturing unit and the company's preferred vendor status with most global oil and gas companies suggest strong growth prospects. At the current market price of Rs 375, the stock trades at about 14 times and 9 times its likely 2008-09 and 2009-10 earnings on a fully diluted equity base. While this is at a premium to its domestic peers such as PSL and Jindal SAW, Welspun's wider product mix, higher realisations and stronger presence in the high-margin export markets su…

BHEL: Buy

BHEL timed its first phase of capacity expansion to go on stream by January 2008, thus enabling higher order intake.

The company continues to dominate the sub-critical equipment segment. Vidya Bala An investment can be considered in the stock of Bharat Heavy Electricals (BHEL). Strong order-book, ongoing capacity expansion to meet Twelfth Plan target, entry into new business segments and efforts to tackle competition in the super-critical plants are factors that enhance prospects for earnings growth over the medium term. However, given the near-term capacity constraints, order book growth could slow down over the next year.Invest with a perspective of at least three-four years so as ride the growth that the company is likely to witness through enhanced capacities as well as order inflows from newer segments.At the current market price of Rs 1,879, the stock trades at 22 times the expected earnings for FY09. The current volatility in the market has resulted in valuations that…