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Showing posts from May 25, 2008

Bonus no respite to RPower shareholders as stock trades well below adjusted cost of acquisition

Reliance Power was trading at Rs 237.25 at 15:04 IST on BSE, which is still below the adjusted cost of acquisition of Rs 269 for retail investors and Rs 281 for institutional investors. The stock became ex-bonus today. The stock opened at Rs 308.95 on BSE. It hit a high of Rs 309.40 and a low of Rs 231.70 so far during the day. The stock had closed at cum bonus price of Rs 409.55 yesterday, 29 May 2008. The company has set 2 June 2008 as the record date for a 3:5 bonus issue. The stock had a 52-week high of Rs 599.90 on 11 February 2008 and a 52-week low of Rs 303.45 on 24 March 2008 (cum-bonus prices). The scrip had outperformed the market over the past one month till 29 May 2008, rising 1.80% compared to the Sensex's decline of 5.62%. It also outperformed the market in the past one quarter, sliding 4.89% compared to Sensex's decline of 7.18%. The face value per share is Rs 10. In a meeting held on 25 February 2008, Reliance Power's board of directors had a…

steel stocks-Melting under pressure

A cap on the selling price, restriction on exports, a weak rupee and higher input prices are adding to the woes of steel companies, which are already troubled on the margin front . After sugar and cement, steel has caught the eye of the government, and with an aim to cool down the scorching inflation, the government has started intervening to check steel price rise. While the actions may partly help in curbing inflation, for investors it is not good news and may become a cause of worry if the Indian steel sector follows the path of sugar and cement, which have lost the fancy on the stock exchanges after policy changes. "These developments will not only severely hurt the profitability of the steel industry, but also discourage investors from making new investments in the sector," says a chief financial officer of an integrated steel company. The Indian steel sector would have been in relatively better times if the domestic steel prices could ha…

Cement stocks resurge on easing of export ban

Cement companies in the Western region — particularly UltraTech and Ambuja Cements — can breathe easier now as the Government has lifted the prohibition on cement exports from Gujarat ports. These ports account for the major proportion of cement exports from India. This ban was imposed in mid-April to improve cement supplies and contain inflation. But the ban was lifted on Tuesday in anticipation of lower domestic demand for cement in the monsoon months starting from June. Impact on price The effect of the ban was evident in April, with cement prices coming down by Rs 10-15 per bag in Gujarat. ACC, the largest cement manufacturer in the country, announced that it would hold prices for two-three months, in response to the government's proposal. Following this, the industry too came forward to reduce prices by Rs 3-7.5 per bag from the prevailing levels.While easing of the ban may open up export avenues for producers ahead of the lean season, it may not have any near-term…

L&T MUST HAVE IN PORTFOLIO

India's largest Engineering and Construction giant Larsen and Toubro announced very good results on thursday and company also declared 1:1 bonus issue. L&T which underperformed BSE Sensex and Nifty in the recent days will once again outperform the markets in the coming days. L&T performance in this quarter is more significant when other stocks like SIEMENS, BHEL and ABB announced below par results in this difficult quarter. These results surprised stock analysts as they are expected uninspiring performance from L&T due to losses in derivatives.Significant points:

1. L&T is the best managed company in India – Business Today survey.
2. Rs 600 billion order book by March 2009.
3. Larsen and Toubro will benefit from huge infrastructure investments in India and Gulf regions.
4. Future growth comes from L&T Infotech and shipping along with engineering.
5. Strong order book, good execution skills and good track record and inherent value in subsidiaries make this stock a &q…

IFCI hogs limelight on plans to induct strategic investor

IFCI jumped 6.67% to Rs 62.60 at 15:08 IST on BSE after the company scheduled a meeting of the board of directors later in the day to consider induction of strategic investor. The stock hit a high of Rs 65 and a low of Rs 57.70 so far during the day. The stock had a 52-week high of Rs 121.20 on 17 December 2007 and a 52-week low of Rs 36.70 on 24 March 2008. The mid-cap scrip had underperformed the market over the past one month till 27 May 2008, declining 6.92% compared to the Sensex's decline of 4.35%. It also underperformed the market in the past one quarter, sliding 6.55% compared to Sensex's decline of 8.70%. The company's current equity is Rs 763.73 crore. Face value per share is Rs 10. This is the second time IFCI is making an effort to induct an investor. It may be recalled that in December 2007, IFCI's board decided to call-off the planned sale of a 26% equity stake as the Sterlite-Morgan Stanley consortium sought management control of the state…

L&T builds on bonus bounty

Larsen & Toubro rose 4.45% to Rs 2829.65 at 13:32 IST on BSE after recommending a liberal 1:1 bonus and posting 37.95% surge in net profit to Rs 966.76 crore on 34.79% rise in total income to Rs 8715.92 crore in Q4 March 2008 over Q4 March 2007. The results and the bonus announcement hit the market a little while ago. The stock hit a high of Rs 2949 and a low of Rs 2715 so far during the day. The stock had a 52-week high of Rs 4670 on 1 November 2007 and the stock hit a 52-week low of Rs 1775 on 29 May 2007. The large-cap scrip had underperformed the market over the past one month till 27 May 2008, declining 9.92% compared to the Sensex's decline of 4.35%. It also underperformed the market in the past one quarter, sliding 25.60% compared to Sensex's decline of 8.70%. The company's current equity is Rs 58.46 crore. Face value per share is Rs 2. The current price of Rs 2829.65 discounts its Q3 December 2007 annualised EPS of Rs 66.03, by a PE multiple of …

JM Financial board recommends bonus, stock-split

MUMBAI: JM Financial Ltd has informed the BSE that the board at its meeting held on May 28 has recommended a dividend of 50% (Rs 5/- per share) for the year ended March 31, 2008 and a special dividend of 200% (Rs 20/- per share) considering an exceptiona l income, being the profit on sale of 49% equity stake in Morgan Stanley India Company Pvt Ltd to Morgan Stanley. The board gave approval for issuing bonus in the ratio of three shares for every two shares held by the shareholders. The board also approved to split the face value of the shares to Re 1 per share from existing Rs 10 per share.

Six out of 10 stocks beat Sensex in recovery

76 stocks gain 50% or more from March lows
Aarati KrishnanDid you buy into stocks when the BSE Sensex hovered at the 14,800 mark in mid-March? If you didn't, you probably have reason to regret your decision. While you've been on the sidelines, the BSE Sensex has gained 12 per cent from its March 18 low and the BSE 500 has managed a 14 per cent return. These numbers seem tame in comparison to gains managed by some B group stocks, of whom 76 stocks have managed gains of 50 per cent or more. Stocks that have gained in value over this period have easily outnumbered those that lost ground. As many as 1044 of the 1200 NSE listed stocks, or nine out of every ten, have posted gains from their March 18 levels. As many as 723 stocks have beaten the Sensex (up 12 per cent) over this period.Orchid Chemicals (up 127 per cent from March 18), Harrisons Malayalam (94 per cent), Gemini Communications (93 per cent), Mercator Lines (86 per cent), IL&FS Investsmart (80 per cent) and …

Visa Steel gains on strong quarterly earnings

Visa Steel gained 2.71% to Rs 60.65 at 14:01 IST on BSE on reporting 3129% surge in net profit to Rs 20.99 crore on 78% increase in total income to Rs 259.66 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 28 May 2008. On BSE, 6 lakh shares were traded in the counter. The scrip had an average daily volume of 1.14 lakh shares in the past one quarter. The stock hit a high of Rs 61.80 and a low of Rs 58.55 so far during the day. The stock had a 52-week high of Rs 65.65 on 2 January 2008 and the stock hit a 52-week low of Rs 30 on 6 August 2007. The small-cap company had outperformed the market over the past one month till 27 May 2008, gaining 21.75% compared to the Sensex's decline of 4.35%. It had also outperformed the market in the past one quarter, rising 20.63% compared to Sensex's decline of 8.70%. The company's current equity is Rs 110.24 crore. Face value per share is Rs 10. The current price of Rs…

Pharma stocks regain investors' interest

'Plenty of growth opportunities for generic cos' Mumbai, May 26 The market might be in a very volatile phase but the pharma stocks seem to be quite fortified from the market volatility.While the BSE Sensex declined 4.54 per cent during the last one month, the BSE-Healthcare has been up 0.60 per cent during the same period."The pharma stocks are defensive stocks and they tend to outperform most stocks during a bearish phase," said Mr Bhavin Shah, Research Analyst, Dolat Capital Ltd."Pharma companies keep reporting sustainable numbers. Their stocks have a steady, strong and sustainable performance; and so in times of bearish markets they provide capital protection," said Mr Shah."The pharma sector had not performed very well earlier as the growth opportunities were lying in other sectors. So when the other stocks were battered during the past couple of months, these stocks showed both stable earnings and earnings visibility," said Ms Sarab…

Hindustan Unilever gains on hike in product prices

Hindustan Unilever was up 0.57% to Rs 237.10 at 12:19 IST on BSE after reports that the company has hiked prices in nearly all categories of personal care and home care products in an effort to neutralise the impact of rising cost of raw materials. On BSE, 82,840 shares were traded in the counter. The scrip had an average daily volume of 5.84 lakh shares in the past one quarter. The stock hit a high of Rs 239.25 and a low of Rs 233.10 so far during the day. The stock had a 52-week high of Rs 256 on 8 April 2008 and a 52-week low of Rs 170 on 22 January 2008. The large-cap scrip had underperformed the market the market over the past one month till 23 May 2008, declining 5.45% compared to the Sensex's decline of 0.43%. However it outperformed the market in the past one quarter, gaining 9.27% compared to Sensex's decline of 4.03%. The company's current equity is Rs 220.84 crore. Face value per share is Re 1. The current price of Rs 237.10 discounts its Q1 March…

STOCK RECOMMADATIONS

Buy Geodesic Information Systems For 1-1.5 YearsPosted: 25 May 2008 03:05 PM CDTInvestments with a 12-18 month horizon can be considered in the stock of Geodesic Information Systems, considering its niche business, moderate valuation and good growth prospects. At Rs 181, the stock trades at 11 times its FY-08 earnings and nine times its estimated current year earnings. With a net profit margin of 49 per cent, [...] Invest in Entertainment Network for Long TermPosted: 25 May 2008 03:04 PM CDTInvestors with a long-term perspective can buy the stock of Entertainment Network India (ENIL), which operates the radio channel, Radio Mirchi 98.3 FM. Within the media sector, radio is poised to record the fastest growth in advertising spends, although on a low base. It is also likely to be less vulnerable to any slowdown in [...] Bharti's Talks to Merger with MTN Could Not MaterializePosted:…

Geodesic Information System: Buy

Niche play on instant messagingStrong growth recordScalability, a concernLow valuations despite high margins and a strong presence in the promising instant messaging business make the stock attractive.

The company derives most of its revenues from developing instant messaging services. Investments with a 12-18 month horizon can be considered in the stock of Geodesic Information Systems, considering its niche business, moderate valuation and good growth prospects. At Rs 181, the stock trades at 11 times its FY-08 earnings and nine times its estimated current year earnings. With a net profit margin of 49 per cent, much higher compared to other listed, products-focussed technology companies, the valuation appears attractive, especially considering the good growth prospects. The company has managed a compounded annual revenue growth of 67 per cent and profit growth of 68 per cent over the past three years. Niche player
Geodesic operates in a niche area in technology. The company d…

Adlabs launches first multi-sensory cinema

AGRA: Adlabs Cinemas, an entertainment conglomerate, on Saturday launched country's first 6D cinema theatre at Agra providing a multi-sensory experience to the viewers. Unlike the conventional 2D or 3D movie theatres, the cutting edge technology had been employed for visual and audio effects that brought strikingly real three dimensional images before audiences thus allowing them to simultaneously sight, experience and smell the characters, Mr Tushar Dhingra CEO of Adlabs Cinemas said. The new technique was demonstrated here through a half-an-hour film 'India in Motion' where actor Anupam Kher takes the audience on a journey of India's evolution from an ancient civilisation to a modern nation. The 6D cinema was set to become a global tourist