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Showing posts from June 15, 2008

Neyveli Lignite Corporation - The Mining Saga

Neyveli Lignite Corporation Ltd [NLC] owns the largest mines in India. It is a a 93.6% government owned company, was incorporated in 1956. It is engaged in lignite mining and power generation. The company owns the largest open cast mechanised mines in India, all situated around Neyveli in Tamil Nadu.

ENAM Direct has initiated coverage on NLC with a BUY Rating. NLC holds the maximum reserves of lignite in the country, handling as much as 90% of the total reserves. It currently has a mining capacity of 24 million tonnes of lignite, which is used to fuel its 2,490 MW of power generating capacity. It also sells about 10% of the raw lignite it mines to small-scale industries.

The cash-rich NLC plans to expand its power capacity by almost 5 times to 11,990 MW and its lignite mining capacity by two and a half times to 61.9 million tonnes by the end of the XII Plan (FY15-FY17).

Lignite, also known as 'brown coal,' is a cheaper alternative to coal. Considering the current glo…

Over 200 fined in KGN, Sylph price rise issue

Mumbai, June 20 Over 200 brokers and traders were fined up to Rs 5 lakh by the Bombay Stock Exchange for speculative trading in the scrips of KGN Industries and Sylph Technologies. KGN Industries and Sylph Technologies were re-listed on BSE in the Z Category after a gap of six to seven years and witnessed a huge price rise on listing day on account of speculative trading, as there were no price filters imposed on the day of listing for the purpose of price discovery in these scrips. The traders fined include Anand Rathi Financial Services, Angel Broking, Asit C Mehta, Geojit Financial Services, Motilal Oswal Securities, Prabhudas Liladher, Centrum Broking, Gandhi Securities & Investment, ICICI Securities, Karvy Stock Broking, and Ventura Securities . A total of 222 traders were fined with regard to KGN Industries and 118 for Sylph Technologies. On May 21 KGN Industries soared to Rs 55,000 on re-listing after seven years. When last traded, in 2001, the Z- Group scrip was trading at…

Inflation soars to 13-year high of 11.05%

Fuelled by petro hikeNEW DELHI: Fuelled by the sharp increase in fuel and cooking gas prices, the inflation shot up to a 13-year high of over 11 per cent. Coupled with increase in petrol product prices, the food prices put the pressure on inflation that touched 11.05 per cent for the week ending June 7, a development that could cause a major worry for the government. Capturing the Central Government's decision to hike petrol prices by Rs 5 a litre, diesel by Rs 3 a litre and domestic cooking gas by Rs 50 a cylinder led to the spurt in inflation, management of which is proving a major challenge for both the Finance Mi nistry and the RBI. Inflation was 8.75 per cent for the week ended May 31 mainly on account of rising food, vegetable and fruit prices. After the release of the government data on price movement in the country, the Bombay Stock Exchange benchmark Sensex dipped by over 300 p oints, reflecting the concern of the investing community. - PTI

Market extends losses on weak Asian equities

the market succumbed to selling pressure for the second consecutive day today. Political concerns and weak Asian markets weighed on the investor sentiments. Banking, realty and capital goods stocks were hurt the most in today's trade. All the sectoral indices on BSE ended in red. As per provisional data, foreign funds today, 19 June 2008, sold shares worth a net Rs 598.36 crore. Domestic funds bought shares worth a net Rs 141.07 crore. Asian markets, which opened before Indian markets, ended on a weak note. Key indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by 1.88% to 6.54%. The Dow Jones Industrial Average hit its lowest level in three months on Wednesday, 18 June 2008, as worries about a weak US economy compounded by credit sector concerns dragged down shares in banks, autos and transport firms However, European markets, which had opened on a weak note, recovered during the course of the trading session after unexpected news of a B…

L&T bags Rs 1,000 cr order for high tech equipments

MUMBAI: Engineering major Larsen and Toubro (L&T) has bagged orders totalling Rs 1,000 crore for supply of high tech equipment and systems in first two months of this fiscal and plans to expand its capacity to meet the growing demand. Stating that the demand for such critical hi tech equipment in the country as well as abroad is on the rise, Larsen and Toubro Member of the board and Senior Executive Vice President M V Kotwal said, "we are expanding our manufacturing facilities at Hazi ra in Gujarat and setting up a new facility at Oman, to cater to the rising demand.'' The company has bagged two major orders, including one from Tata Power subsidiary company Coastal Gujarat Power for power plant equipment and the other was from HPCL Mittal Energy for critical reactors. The major export orders that the company received were from Kuwait National Petroleum Company, Brazil-based Petroleo Brasileiro, Germany-based UHDE, Thailand-based PTT Asahi Chem Co Ltd. L&T has supp…

Mkt fall leaves a slew of undervalued stocks

It will be hard to find other spheres of human interest where the tide turns as fast as the stock markets. The India growth story ruled the roost till January '08. That seems like distant past. And, the present is marred by concerns of slowing growth and rising inflation. The difference between the immediate past and present is that the stock market has lost almost one-third of its market capitalisation. Surely, these are the toughest of times to say anything about the future course of the market.

However, every sharp fall leaves behind a slew of undervalued or discounted stocks. But, what it does not leave behind is the optimism, which was available in abundance when the market was scaling new highs every other day. A detailed ETIG analysis reveals that the latest downturn in the market has thrown up opportunities in the form of beaten-down stocks. We must warn investors that nothing can be said about the near term outlook of financial markets, as the general electio…

Strong Q4 result towers Simplex Realty

Simplex Realty was locked at 5% upper limit at Rs 200.65 at 14:12 IST on BSE after posting 3110.21% surge in net profit to Rs 25.14 crore on 131955.2% increase in total income to Rs 76.59 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 19 June 2007. Meanwhile, the BSE Sensex was down 294.42 points, or 1.91%, to 15,127.89 on weak cues from global markets. The Dow Jones Industrial Average hit its lowest level in three months on Wednesday, 18 June 2008, as worries about a weak US economy compounded by credit sector concerns dragged down shares in banks, autos and transport firms. On BSE, 872 shares were traded in the counter. The scrip had an average daily volume of 926 shares in the past one quarter. The stock hit a high of Rs 200.65 and a low of Rs 199.75 so far during the day. The stock had a 52-week high of Rs 403 on 4 December 2007 and a 52-week low of Rs 123.75 on 24 March 2008. The small-cap company had outperformed the mark…

Cambridge Solutions hardens on turnaround results

Cambridge Solutions jumped 16.18% to Rs 56 at 9:56 IST on BSE on reporting net profit of Rs 17.18 crore in Q4 March 2008 as compared to net loss of Rs 1.65 crore in Q3 December 2007. The company announced the results after trading hours yesterday, 17 June 2008. On BSE, 6,840 shares were traded in the counter. The scrip had an average daily volume of 42,724 shares in the past one quarter. The stock hit a high of Rs 56.90 and a low of Rs 49.50 so far during the day. The stock had a 52-week high of Rs 138.80 on 19 June 2007 and a 52-week low of Rs 34.60 on 25 March 2008. The small-cap company had underperformed the market over the past one month till 17 June 2008, declining 16.32% compared to the Sensex's decline of 9.97%. It had outperformed the market in the past one quarter, gaining 25.19% compared to Sensex's return of 4.68%. The company has an equity capital of Rs 111.34 crore. Face value per share is Rs 10. The current price of Rs 56 discounts its Q4 March 2…

Tide Water Oil hits the roof

Tide Water Oil rose 5% to Rs 4040.40 at 10:41 IST on BSE on reports Reliance Industries, French oil giant Total, US oil giant Chevron, Hinduja group and Keventer group have evinced interest in bidding for Andrew Yule's stake in the firm. Shares of Andrew Yule & Company, which holds 26.22% stake in Tide Water Oil, surged 15.67% to Rs 50.20 on 71,895 shares on BSE On BSE, the Tide Water Oil counter saw thin volumes of just 12 shares, with pending buy orders of 1352 shares at maximum limit. The stock had an average daily volume of 253 shares in the past one month. The stock hit a high and low of Rs 4040.40 so far during the day. The stock had hit a 52 week high of Rs 5276 on 5 November 2007 and a 52 week low of Rs 1740 on 18 June 2007. The small-cap scrip outperformed the market over the past one month till 17 June 2008, declining 1.71% compared to the Sensex’s decline of 9.97%. It also outperformed the market in the past one quarter, surging 31.51% compared to Sensex’s return of…

IDBI Bank capitalises on higher advance tax payment

IDBI Bank vaulted 5.55% to Rs 81.80 at 12:03 IST on BSE on reports it had paid 43% higher advance tax at Rs 10 crore in Q1 June 2008 over Q1 June 2007. On BSE, 12.76 lakh shares were traded in the counter. The scrip had an average daily volume of 12.18 lakh shares in the past one quarter. The stock hit a high of Rs 82.20 and a low of Rs 77.70 so far during the day. The stock had a 52-week high of Rs 181 on 20 November 2007 and a 52-week low of Rs 74 on 12 June 2008. The stock had underperformed the market over the past one month till 16 June 2008, declining 22.81% compared to the Sensex's decline of 11.70%. It also underperformed the market in the past one quarter, declining 13.21% compared to Sensex's return of 3.79%. The bank's current equity is Rs 724.76 crore. Face value per share is Rs 10. The current price of Rs 81.80 discounts its Q4 March 2008 annualized EPS of Rs 13.52, by a PE multiple of 6.05. IDBI Bank paid Rs 107 crore as tax last fiscal. Advanc…

When and why to sell off a stock

By: Aman Dhall, TNN

People love to buy, hate to be sold. Indeed, selling is an art. Ask an investor who regularly dabbles in the stock market.

Chances are that he will probably give a 15-minute talk on the subject and you may come back impressed by his sheer knowledge and experience, but with little learning.

That's because you may not exactly remember why you sold a particular stock at any point in time. Probably, it could be experience, gut feeling or simply a better understanding of the dynamics of the stock market which helped you plan your exit.

Here're seven reasons that help you bid adieu to a stock in your portfolio.1.Consistent under-performanceIf the company has reported poor results in the previous two-three quarters and the stock price has not shown any upward trend, analysts recommend you should exit a stock.

Hemang Jani, senior vice-president , Sharekhan, cites a case study of the mid-cap stocks in the recent stockmarket fall during the first quarter o…

Market may see positive opening

K. S. Badrinarayanan Progress in monsoon, advance tax numbers could set direction Paul Noronha

Slide continues: Stockbrokers react at the weak closing of the benchmarks, as there was no respite from selling pressure. – Notwithstanding, rising inflation and a fresh spat between the Ambani brothers, the market may see some buying at lower levels as it is in oversold zone and might consolidate a bit before taking fresh directional call. The positive closing of the US markets on Friday is likely to help the equity markets across the world open on a firm note on Monday. And, thanks to Saudi Arabia's indications that it is willing to raise oil production (by about half a million barrels a day to 10 million barrels, according to media reports), oil prices may cool-off a bit, at least temporarily, and that could soothe sentiment for equity markets.Important cues Though these positives may give a head start for the domestic market, to sustain the rally, it needs fresh impetu…

Flex Foods Ltd.: Appetising growth

CMP: Rs.26.25 Target: Rs.45 BSE Group: S BSE Code: 523672 52-Week High/Low: Rs.45/14 Market Cap: Rs.34.37 cr. Background: Flex Foods Ltd. (FFL) started commercial
operations in 1992 by establishing 100%
EOU for vacuum freeze dried vegetables,
mainly mushrooms and culinary herbs with a total processing capacity of 2,000 TPA. The project was part-
financed by a public issue of secured redeemable PCDs aggregating Rs.6.40 cr. The capacity has since gone up
several fold. FFL utilises over 70% of its production capacity for mushrooms and the rest for other vegetables
and fruits. Promoters: FFL was promoted by the Rs.2,000 cr. Flex Group. Uflex holds 47% in its equity. The Flex Group has interest in
diverse areas such as packaging, manufacturing pouches & machines, investments etc. Manufacturing Plants: Its processing infrastructure comprises the most modern plant and equipments from leading technology
providers like Niroan of Denmark, Non of Holland, Binder of Germany and Eur…

FMCG, tech stocks turn 'safer' bet for investors

Changing track BSE IT index up 30%, BSE FMCG almost 5% in last 3 months.Auto sector scrips not fancied at least for the medium term.Banking, realty stocks also affected by rise in interest rates.
Tania Kishore Jaleel AdvertisementMumbai, June 14 FMCG and technology stocks may not have been part of the last bull run of pre-January. But now that the tide has turned, sweeping the market southward, these stocks have bucked the trend, giving the best returns of any sector. In the last three months, the BSE IT index gained 30 per cent. BSE Teck gained by more than 17 per cent, and BSE FMCG almost five per cent. During this period, the Sensex and the Nifty fell 1.09 per cent and 2.3 per cent respectively. "Investors now seem to be moving out of sectors such as infrastructure, booking losses or profits and re-deploying funds in FMCG, pharma and technology," said Mr P.R. Dilip, Managing Director of Impetus Wealth Management Ltd. Since these sectors were not swept up in the m…

market khaber by c. kutumbarao---hyderabad broker

Markets hinge on monsoon

By C. Kutumba Rao


Displaying good resil-ience, stocks rallied smartly from lower levels
recorded during the early part of the week ended. After touching intra-
week lows of 14,645 and 4,369, the Sensex and the Nifty shed nearly
2.5 per cent to end the week at 15,190 and 4,517.

Modest renewed buying interest was seen in midcap and smallcap stocks.
Continued selling by FIIs and concerns over sustained rise in
inflation impacted negatively on the market sentiment. Better than
expected IIP numbers have provided some comfort to bulls.

Tight rope walk by the RBI and the government to combat inflation
without sacrificing growth may succeed, say observers. Reports suggest
that the government may bring back Indo-US nuclear deal for approval
citing the necessity for energy security.

Barring any negative developments on political front, near term
direction of markets depends on the progress of monsoon and the global
cues. Advance tax numbers and expectations over Q1 results may trig…

BGR Energy Systems: Buy

Investors with a three-year perspective can consider investing in the stock of BGR Energy Systems. The recent results posted by the company and the strong growth in order book belie fears of a slow down in the engineering services space. BGR's well entrenched position as an EPC player in the power segment and a multi-equipment supplier in the oil and gas segment makes it a good proxy for the energy sector. The current market price, at a sharp discount to its offer price of Rs 480, provides an attractive entry point. The stock currently trades at about 13 times its expected per share earnings for FY 2010. BGR has an order backlog of Rs 3,212 crore and secured 46 per cent more orders than the previous year. This order growth inspires confidence at a time when some companies in the engineering sector have reported slowdown in the growth of order intake. Order inflows are key indicators of any slowdown in the sectors serviced by engineering companies. BGR's strong order…

NIIT to provide education in Andhra schools

Learning solutions for classes VI to XBS Reporter / Hyderabad June 13, 2008, 19:11 ISTDelhi-based learning and knowledge solutions provider, NIIT, has received a letter of intent (LoI) to provide computer and computer-aided education in 2,005 more schools in Andhra Pradesh. The contract is valued at Rs 172.8 crore. The organisation has provided learning solutions in over 663 government schools in the state in the last five years . Under the new contract, NIIT will cover over 4.2 million children across the state. Maharashtra and Bihar governments have also placed orders on NIIT to provide similar training in their 900 schools for the next five years. "This project has taken NIIT's total presence to 2,663 schools in Andhra Pradesh alone. In addition to the students, NIIT will train over 50,000 government school teachers," L Balasubramanian, president (school learning solutions), NIIT, stated in a press release on Friday. NIIT's comprehe…

Wealth Creators for Next 5 years

Warren Buffett has rightly said "Most people get interested in stocks
when everyone else is. The time to get interested is when no one else
is. You can't buy what is popular and do well."

So let us look at potential sectors and stocks which can give us
multibaggers for the next 3-5 years. Rather then giving tips purpose
of this newsletter is to take you through the process of identifying
multibaggers that will help you in future selection of stocks.

The sector/stocks discussed below confirm to our earlier
recommendations of concentrating on 7-8 sectors and having a 60:40 mix
of mid caps and large caps in the portfolio.


Disclaimer: Do your own research before buying any stocks and build
your own conviction.

Sectors to Invest:

Steel and other Natural Resources
Engineering
Railway Infrastructure
Logistics
Banking
Hotels
Media and Entertainment
Pharma Packaging and Clinical Trials


Sectors to Avoid:

Real Estate
Airlines
Textiles
Cement


Gems of the market

·        Tata Steel – Capacity to…