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Showing posts from June 1, 2008

HOV Services hardens on offer for sale of units

HOV Services opened at 20% upper circuit at Rs 100.40 after it received an offer of approximately $202 million to purchase 100% of its wholly owned subsidiary HOV Services, LLC and its Hong Kong unit On BSE, 2,249 shares were traded in the counter. The scrip had an average daily volume of 7,461 shares in the past one quarter. The stock had a 52-week high of Rs 237.50 on 6 June 2007 and the stock hit a 52-week low of Rs 73.60 on 25 March 2008. The small-cap scrip had underperformed the market over the past one-month till 5 June 2008, declining 9.85% compared to the Sensex's decline of 9.05%. It had also underperformed the market in the past one quarter, declining 7% compared to Sensex's decline of 1.29%. The company's current equity is Rs 12.55 crore. Face value per share is Rs 10. The current price of Rs 100.40 discounts its Q4 March 2008 annualised EPS of Rs 0.32, by a PE multiple of 313.75. The offer is from a company controlled by some of company's pr…

How to build Mutual Fund (MF) portfolio?

First we should choose the fund houses based on the performance in good times as well as bad times over a period of 5-10 years instead of 1-2 years.Some recommendations are SBI Magnum, Reliance, Fidelity, HDFC, ICICI etc. Then we should allocate our investible funds for different categories starting first with diversified funds.1)Diversified funds: are always less risky as they cover multiple growth sectors instead of a particular sector or theme. You can have a long term view of 10-20 years in them. Upto 60% of the total investments can be made in diversified funds.2)Equity Linked Saving Scheme(ELSS): Only difference from diversifies funds is that they save us tax also and since there is a lock in period of 3 years fund managers have less pressure of redemption. The amount of funds invested in ELSS should be governed by our tax planning needs.3)Sector funds or thematic funds: are more risky in nature and outlook of the sector should be taken into consideration before i…

Tech Mahindra rockets on multi-million dollar deal buzz

Tech Mahindra soared 7.52% to Rs 847.85 on BSE after the company reportedly signed a multi-million dollar deal with Botswana Telecommunications to provide stem integration services across its mobile, internet and fixed-line businesses. On BSE, 93,728 shares were traded in the counter. The scrip had an average daily volume of one-lakh shares in the past one quarter. The stock hit a high of Rs 858.80 and a low of Rs 781 so far during the day. The stock shad a 52-week high of Rs 1562.70 on 6 June 2007 and the stock hit a 52-week low of Rs 614.80 on 17 March 2008. The mid-cap firm had underperformed the market over the past one month till 4 June 2008, declining 16.41% compared to the Sensex's decline of 10.70%. It had outperformed the market in the past one quarter, gaining 17.40% compared to Sensex's decline of 6.21%. The company's current equity is Rs 121.52 crore. Face value per share is Rs 10. As per reports, Tech mahindra is eyeing revenue of up to $10 mill…

Strong FY08 earnings propel Orbit Corporation

Orbit Corporation jumped 3.14% to Rs 486 at 9:57 IST on BSE after reporting a 2044.5% surge in net profit to Rs 166.63 crore on 1250% increase in net sales to Rs 417.03 crore in the year ended March 2008 over the year ended March 2007. The company announced the results after trading hours on Wednesday, 4 June 2008. On BSE, 4,752 shares were traded in the counter. The scrip had an average daily volume of 2.15 lakh shares in the past one quarter. The stock hit a high of Rs 486 and a low of Rs 470 so far during the day. The stock had a 52-week high of Rs 1079.95 on 18 January 2008 and the stock hit a 52-week low of Rs 216 on 19 June 2007. The mid-cap company had underperformed the market over the past one month till 4 June 2008, declining 11.92% compared to the Sensex's decline of 10.70%. It had also underperformed the market in the past one quarter, declining 17.64% compared to Sensex's decline of 6.21%. The company's current equity is Rs 36.27 crore. Face val…

Sejal Architectural Glass IPO to open on June 9

NEW DELHI: Sejal Architectural Glass on Wednesday said it would raise up to Rs 105.73 crore through an initial public offering (IPO) that will open on June 9. The price of the issue, which would include 91.94-lakh equity share of Rs 10 each, would be decided through 100 per cent book building process. The price band has been set at Rs 105-115. The IPO would constitute 32.84 per cent of the fully diluted post issue paid-up equity capital of the company and the issue will open on June 9 and close on June 12. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange. "The company would use proceedings from IPO in setting up a manufacturing for the production of float glass with an installed capacity of 2,00,750 MT per annum at Bharuch in Gujarat," Mr Dhiraj S Gada, Joint Managing Director, Sejal Architectural Glass L td said here. The proposed manufacturing unit would be the first Greenfield plant to be set up by the …

Sejal Architectural Glass IPO to open on June 9

NEW DELHI: Sejal Architectural Glass on Wednesday said it would raise up to Rs 105.73 crore through an initial public offering (IPO) that will open on June 9. The price of the issue, which would include 91.94-lakh equity share of Rs 10 each, would be decided through 100 per cent book building process. The price band has been set at Rs 105-115. The IPO would constitute 32.84 per cent of the fully diluted post issue paid-up equity capital of the company and the issue will open on June 9 and close on June 12. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange. "The company would use proceedings from IPO in setting up a manufacturing for the production of float glass with an installed capacity of 2,00,750 MT per annum at Bharuch in Gujarat," Mr Dhiraj S Gada, Joint Managing Director, Sejal Architectural Glass L td said here. The proposed manufacturing unit would be the first Greenfield plant to be set up by the …

buy recommedations

1.International combustion (Engineering) cmp=390

 Buy around 350/360 and add on declines.

2 IFCI (Finance) CMP=58

 Buy around 48/49 and add on declines.

3 Cholamandalam Finanance (Finance) CMP=145
Buy around 135/129 and add on declines.

4 Navabharat Ventures (Power/Sugar/Metal) CMP =270

Buy around 210/220 and add on declines

5 Hotel Leela (Hotel) CMP=42

Buy around 40/37 and add on declines
6 Venus Remedies (Pharma) CMP=435
Buy around 390/380 and add on declines
7 RPL (Oil and Refinery) CMP=173

Buy around 168/163/155 and add on declines

8 NTPC (Power) CMP=165

Buy around 155/148 and add on declines

9 Jindal Polyfilms (FMCG) CMP=215
Buy around 190/180 and add on declines

10 Spentex Industries (Textiles) CMP=20

Buy around 18/17.50 and add on declines.

The following are optional scripts and you may decide to buy. (5 to 10% below
current CMP)

1 CHD developers (CMP=13) (Buy at 13 and below)
2 Universal cables (CMP=71) (Buy at 68 and below)
3 Power Grid (CMP=94) (Buy at 92 and below)
4 IDBI (CMP=86) (…

Blue Dart Express spurts on delisting buzz

Blue Dart Express surged 9.21% to Rs 675 at 10:43 IST on BSE on reports foreign logistics firm DHL Express is planning to make an open offer to shareholders of the company to make it a wholly-owned subsidiary. Meanwhile, the BSE Sensex was up 120.79 points, or 0.76%, at 16540.44. The stock hit a high of Rs 684 and a low of Rs 648.05 so far during the day. The stock had a 52-week high of Rs 856.55 on 21 June 2007 and a 52-week low of Rs 452.50 on 31 May 2007. The scrip had underperformed the market over the past one month till 30 May 2008, slipping 8.48% compared to the Sensex's 5.04% decline. It had, however, outperformed the market in the past one quarter, gaining 2.16% compared to Sensex's 6.62% fall. The mid-cap courier company has an equity capital of Rs 23.73 crore. Face value per share is Rs 10. The current price of Rs 675 discounts its Q4 March 2008 annualised EPS of Rs 51.81, by a PE multiple of 13.02. According to reports, the move is aimed at delisting…

Management issue may upset IFCI sale again

MUMBAI: Lack of clarity on management control may once again dampen interest among investors who are seeking to bid for the strategic stake in IFCI. On May 29, the board of IFCI announced that it would be making a second attempt to sell 26% in the term-lending institution. Market observers say this time IFCI will be able to pull through the stake sale only if it is willing to give management control to the investors.
Less than six months ago, IFCI was forced to call off its plans to sell stake after talks with Sterlite and Morgan Stanley — the consortium selected among bidders — failed. The bone of contention then was that of management control. Banking analysts say with the slump in the stock market and the perceived slowdown in the economy, few investors may show interest in bidding.

"This makes it even more essential for the institution to being in clarity on what is in it for investors," said an analyst. Last time, IFCI had the advantage of calling for bids …

Niraj Cements IPO gets fully subscribed

MUMBAI: The initial public offer of Niraj Cements and Structurals got fully subscribed on the final day of its offer. The issue received bids for 56.56 lakh shares against 32.50 lakh shares on offer, generating a demand of 1.74 times, data available on the National Stock Exchange showed. The portion reserved for non-institutional investors got subscribed four times, while the portion for retail investors received bids for 3.80 times the shares on offer. The portion reserved for qualified institutional buyers, however, remained un-subscribed. The price band of the issue has been fixed between Rs 175- Rs 190. The issue, which opened on May 26, closed yesterday. The company is planning to raise about Rs 61.75 crore at the upper end of the price-band. The issue comprises a reservation of 3.25 lakh shares for eligible employees and net issue to the public of 29.25 lakh equity shares. The company would use the iss ue proceeds to fund its capital equipment requirement and meet w…

stock picks from economic tmes

Rural Electrification

CMP: Rs 107.15

Target Price: Rs 139

Religare has maintained a 'buy' rating on Rural Electrification Corp while reducing the target price from Rs 145 to Rs 139. The brokerage has cut down its non-interest income estimates for the company besides raising the effective tax assumptions for FY09 and FY10.

"The PAT forecast has thus declined by 10% and 7% for these two years respectively", says the report. According to the brokerage, the company posted a 47% growth in NII for FY08. However, lower non interest income coupled with an unexpected spike in employee expenses, compressed operating profits.

"This together with a high effective tax rate of 34% pulled net profit below our estimates at Rs 8.6 billion," adds the brokerage in a note to its clients. The brokerage expects the company's business to remain robust with a continued thrust on high-yielding segments like power generation.

"This will help maintain spreads…

Thermax: Buy

Strengthening of order flows last quarterPromising foray into utility boilers spaceCapacity expansion plans on trackSince meaningful contribution from the entry into utility boilers space may come only in the next financial year, investors can buy this stock with a long-term perspective.

Entry into the critical boilers space holds significant earnings potential. Srividhya Sivakumar AdvertisementHigher input costs , firming interest rates and a slowdown in order-book accretion due to postponement of orders by clients, appear to have taken their toll on Thermax's stock valuation. At the current market price of Rs 427, the stock trades at a modest valuation of about 15 times its likely FY-09 per share earnings. While concerns over slowdown in growth may continue to mar Thermax's prospects over the next one year, its entry into utility boilers space and the expected commissioning of new capacities this year are likely to provide the much-needed growth momentum over the lo…

Information technology stocks regain glory on strong dollar

BSE IT index outpaces Sensex; Satyam hits 52-week high
Adith CharlieAdvertisementMumbai, May 30 Counters of information technology stocks are turning out to be islands of safety for investors in a market that is desperately seeking direction. On Monday, Satyam Computer Services hit a 52-week high of Rs 544 on the BSE, reflecting investors' interest in information technology companies.The BSE IT index was up by 2.11 per cent today and closed at 4643.79. On a week-on-week and month-on-month basis, this index has gained 7 per cent and 9 per cent respectively. Investor Attention The benchmark Sensex on the other hand has tumbled 1.41 per cent from last week and 5.04 per cent in the last one month.A senior official with the Hyderabad-based Satyam told Business Line that the current rally in IT stocks is a classic case of the relative attractiveness of IT sector going up and that of other sectors spiralling down. IT is one of the two sectors that are not impacted by micro a…