EconomicTimes Updates

Gainers in Samvat '65

Last year around this time, when brokers and investors gathered at the Bombay Stock Exchange to flag off Samvat 2065 — a year in the Hindu calendar — the mood was morose. Global markets were going through one of their most turbulent periods and a recovery seemed a distant prospect, then.

A year later, as market participants assemble to welcome Samvat 2066 on Muharat trading day on Saturday, they would be a relieved lot. With key indices having risen 110% over the last seven months, Indian shares are now just 20% away from their record highs touched in early 2008. READ FULL STORY

Click NEXT to see the top A-Group gainers in Samvat 2065

Market's ready to give a rousing welcome to Samvat 2066 16 Oct 2009, 0342 hrs IST, ET Bureau

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MUMBAI: Last year around this time, when brokers and investors gathered at the Bombay Stock Exchange to flag off Samvat 2065 — a year in the Hindu calendar — the mood was morose. Global markets were going through one of their most turbulent periods and a recovery seemed a distant prospect, then. A year later, as market participants assemble to welcome Samvat 2066 on Muharat trading day on Saturday, they would be a relieved lot. With key indices having risen 110% over the last seven months, Indian shares are now just 20% away from their record highs touched in early 2008. Despite all the optimism around, driven by initial signs of recovery in the Indian economy and stability in global financial markets, concerns over the endurance of this rally remain. Market participants fear the market may choke on an overdose of liquidity, which has been fuelling stock prices in the past few months. “Though liquidity has rescued global markets and companies, it has driven stock prices to higher-than-expected levels and, now, will result in higher volatility in earnings and PE (price to earnings) too,” said Anand Shah, head — equities, Canara Robeco Asset Management. “We should not assume that the kind of liquidity that we are seeing now would remain and the reversal of liquidity could lead to a fall that is much-more than needed,” he added. Central Banks world-wide, including India, have started signalling the possibility of tightening of monetary policy early next year on fears that excess money supply may spark rapid price jumps of commodities and goods. Brokers said the hike in rates could result in some foreign investors liquidating their equity portfolios in emerging markets, including India, that have been created by borrowing at near-zero interest rates in the US. A hike in interest rates in the US would result in dollar rising against the rupee, resulting in the value of their Indian holdings eroding. Foreign institutions have pumped in close to $13 billion since early March, when the markets resumed their ascent after the tumultuous 14 months from January 2008. This, coupled, with domestic institutional inflows have driven Sensex’s valuation to close to 18 times 2009-10 and 15 times 2010-11 estimated earnings, considered steep in comparison with other markets. “Large liquidity flows into the Indian market from global and domestic funds has resulted in steep increase in stock prices, without commensurate increase in earnings,” said Sanjeev Prasad and Sunita Baldawa of Kotak Securities in a report. “We recommend investors to prepare for a likely correction in the Indian market over the next few months,” they added. Market participants are estimating a correction of 8-10% in benchmark indices and a bigger fall in the mid- and small-cap shares. A possible fall should be used to buy shares that will benefit from the likely revival in India’s and global economic growth, they said. “Indian equities continue to be vulnerable to a sell-off in global equities, or a sudden spike-up in crude oil prices. However, we believe that investors should use such volatility to buy Indian shares since the growth outlook for the next 12-18 months remains firm and is still not priced into equities,” said Amitava Neogi, ED of Morgan Stanley Private Wealth Management. Enam Securities, in a recent report, said: “Any corrections should be used to build core holdings in long-term scalar sectors linked to consumption (retail), infra (power), savings (insurance), & global suppliers (resources and IT).”

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Samvat 2065: Sensex gives 100% returns against gold's 34%, silver's 73%
Infosys pips Bharti in M-cap race to rank 7th most valuable company

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Mid-cap stocks

5 mid-cap stocks: Here’s your middle path to prosperity 16 Oct 2009, 0425 hrs IST

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ET Bureau It’s that time of the year again when many investors rejig their portfolio and take position on their favourite stocks. With most of the blue chips having turned expensive, the only option for most investors is the mid-cap sector. We at ET Intelligence Group bring you a list of 5 mid-cap stocks that could make your next Diwali brighter. But, as always, make sure you’ve done the due diligence before placing your bets on these.

Tata Teleservices (Maharashtra) Ltd 16 Oct 2009, 0425 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History TTML, which has recently joined hands with Japan’s NTT Docomo, is the Rs 2,000-crore Tata Group company that provides telecom services in the circles of Mumbai and Maharashtra, including Goa. TTML has reported net loss in each of the past six years. However, the picture is likely to change soon. The company is aggressively adding new subscribers and has topped the 10-million mark, following its innovative pricing methods. Higher users would improve network efficiency, thereby reducing cost per user. The company has undertaken necessary capex in the last few years. TTML has reduced the level of net loss in the last three quarters. It is likely to post quarterly profit by the March 2010 quarter.

Indian Hotels Company Ltd 16 Oct 2009, 0425 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Indian Hotels (IHCL), which has underperformed the markets, is currently trading below its book value. This appears pretty cheap as it has always traded between 1.4 and 5 times the book value in the last five years. The last few bad quarters indicate that the scrip is trading 28 times its past 12 months earnings. The hospitality industry is now going through a tough phase. However, being the industry leader, IHCL could well be the first one to move up once the tide turns. The Commonwealth Games being held in Delhi next year can be one major trigger for the industry, apart from the global economic revival.

Supreme Industries Ltd 16 Oct 2009, 0425 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Supreme Industries, India’s leading plastic goods manufacturers, has always enjoyed a healthy history of profit growth, cashflows and dividends. Its decision to exit unprofitable businesses, coupled with rising domestic demand for plastics and a likely glut situation in polymers, are likely to keep its profit growth strong in the coming quarters. At the same time, the company has constructed a commercial complex at Andheri with 2.5-lakh square feet of saleable area at a cost of Rs 115 crore. The sale proceeds from this property will boost the company’s bottomline for the next few quarters. The scrip at Rs 363 values the company just 8.6 times its earnings for trailing 12 months, much cheaper compared to its peers.

For more about this: <Mid-cap stocks>

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Src:Economictimes.Indiatimes.com

Which hidden jewels will Ashish Chugh buy this Diwali?

Which hidden jewels will Ashish Chugh buy this Diwali?

Ashish Chugh, Invesment Analyst and Author of Hidden Gems is bullish on Visaka Industries and Deccan Gold Mines.

On Visaka Industries

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Visaka Industries is basically a play on rural infrastructure. This company manufactures cement asbestos sheets and also reinforced cement boards. The company also has a textile division. It has got six manufacturing plants for making asbestos products and two manufacturing plant for garments.

If you take a look at the financials of the company. FY09, the sales of the company were about Rs 575 crore, profit after tax of about Rs 36 crore. This was after paying a tax of about Rs 20 crore. EPS for FY09 was about Rs 23.

If you look at the first quarter sales are up by about 10% to about Rs 190 crore. Profit after tax for the June quarter is about Rs 26 crore as against Rs 36 crore for the full year last year. Tax payment for this quarter is about Rs 12.5 crore.

For FY10 we expect the company to do a profit close to Rs 55 crore which would mean an EPS of about Rs 35. This is the stock which has got a good potential going ahead, it is catering to a growth market and at the same time the stocks is available at sensible valuations. It is available at a price to earning multiple of about 3.5 going on FY10 earnings.

If you see the dividend track record of the company, this company has got an uninterrupted track record of dividend payment for the past 12-13 years. Last year they paid about 40% dividend. So dividend yield at the current price is also about 3.5 to 4%.

So you have a stock with the market cap of about Rs 200 crore. Cash profits for FY10 are expected to be around Rs 70-75 crore. So you are getting a business to market cap to cash ratio of less than three years which is under valuation. Dividend yield is also pretty good at about 3.5-4%.

On Deccan Gold Mines

Deccan Gold Mines is the first private sector gold mining company and rather the only gold mining company listed on the Indian stock exchanges. The company has got blocks spread across four states. The total area of the blocks is more than 10,000 sq kilometers.

Talking of gold mining business gold mining company has to pass through three stages before they can commercially start mining gold. The first stage is called reconnaissance permit where they seek the approval of the authorities to do exploratory activities on say 200-300 sq kilometer of the block. Second stage is prospecting license wherein they short list about 25 sq kilometer or 30 sq kilometer out of the total area where they would like to do the further exploratory studies and the third stage is called mining lease where in they short list about half a sq kilometer or one sq kilometer where they would actually like to drill and take gold out or rather rock out and then refine it and produce gold.

The company has filed application for about six blocks for mining license. As per the management the actually mining of the company is expected to start in the last quarter of FY10-11 which is January to March of FY11 and if you look at the valuations of this company as of now the company has got zero revenues. It has a market cap of Rs 200 crore but going by what the management has been saying that. Management says that they are able to derive about 4 tonne of gold per annum assuming on a conservative basis that they are able to do only 2 tonne and taking a price of about Rs 15,000 per ten grams this would translate into revenues of about Rs 300 crore. Typically internationally the gold exploration cost is about USD 350-400 per ounce which in this case will translate into Rs 5000-5500 per ten grams. Assuming initial expenses to be high we still believe that on a conservative basis the operating profit of the company could be in the region of 40-50% which means on a revenue of about Rs 300 crore the company can do about Rs 120-150 crore of operating profit so as of now there are no profits but market cap is only Rs 200 crore which is less than 2 years of the companies operating profit. The valuation is low mainly because of two reasons. One is the uncertainties involved in the business and also the uncertainties with regard to the regulatory clearances for this company. The second relates to the psychology of the investor. Most people do not want to buy these companies now when the production is still one, one and a half years away. Everybody thinks that they are going to buy the company as soon as the company is going to start production but people will realize that smart money would already have accumulated the stock at lower levels.

I am not advocating buying the stock just now at upper circuits. I would not advise doing that but I think one can keep an eye on the stock. I would ideally believe that Rs 25-30 levels would be a good level to get into the stock but one can chose to do staggered purchases for this stock. Rather than thinking that they will buy everything when the production starts, start accumulating at this point of time. I would like to say that this is the one for a very high risk investor because of the uncertainties involved in the business and also somebody with a time frame of about 3-5 years.

Disclosure: I have investments in Deccan Gold Mines but have no investment positions or trading positions in Visaka Industries.

Src: Moneycontrol.com

Check out best stocks for Mahurat trading

Check out best stocks for Mahurat trading


ET Bureau

MUMBAI: Anand Rathi Securities has handpicked long term positive stocks where investors to place their bets for token buying during Muhurat trading.

The brokerage has advised investors to buy and then continue to accumulate the same stocks at any correction or declines. "These are long term Buy and Hold stocks, so don't panic if any decline in prices happens, rather as we mentioned above, you can accumulate or add more of them at lower prices. We are confident of long term positive outlook of these stocks," said DD Sharma, senior vice president-retail at Anand Rathi Securities.

1. Allied Digital 15 Oct 2009, 1424 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

2. Bilcare 15 Oct 2009, 1423 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

3. Biocon 15 Oct 2009, 1423 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

4. BHEL 15 Oct 2009, 1423 hrs IST

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Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

More on this : < Check out best stocks for Mahurat trading >



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Src: Economictimes.INdiatimes

RIL: World's 5th biggest 'value creator' in terms of investor returns in a decade

RIL: World's 5th biggest 'value creator' in terms of investor returns in a decade

NEW DELHI: Mukesh Ambani-led Reliance Industries has been named as the world's fifth biggest 'sustainable value creator' in a list of 25 top

All you want to know about gas row Gas row: Full Coverage Reliance Industries' KG-D6 facility World's top 10 oil producers

companies globally in terms of investor returns over a decade.

The petrochemicals giant is the only Indian company on the list, which has been topped by US-based pharma major Gilead Sciences and has been compiled by Boston Consulting Group in an annual report from its Value Creators series.

RIL is ranked even higher than NRI billionaire Lakshmi Mittal-led global steel major ArcelorMittal, and also many other global giants like BHP Billiton, Samsung, Tesco, Rio Tinto, BASF, McDonald's, Colgate-Palmolive and Procter&Gamble.

In the top five, Gilead Sciences is followed by IT major Apple (2nd place), British American Tobacco (3rd), Brazilian mining major Vale (4th) and RIL (5th).

The report, 'Searching for Sustainability: Value Creation in an Era of Diminished Expectations' has identified 25 firms, with a market capitalisation of at least USD 30 billion, that have consistently outperformed their local stock-market average during the 10 years from 1999 to 2008.

Also Read

→ Anil Ambani talks peace, RIL in accord

→ RIL surrenders 14 oil & gas blocks to government

→ Poor response to NELP 8 auction, RIL abstains

→ RIL questions sincerity of Anil's peace offer

"Companies suffering a massive decline in stock market valuation in the wake of the global economic crisis should learn the lessons of an elite group of so-called sustainable value creators that have generated sizable and sustainable shareholder returns over a decade," the BCG report stated.

Src: Economictimes.Indiatimes.com

Srisai's Instinct Stock Calls

Srisai's Instinct Stock Calls:


This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...

3-5 calls will be given in every SRISAI's INSTINCT STOCK CALLS.


Dt: 15.10.2009

India Infoline: Cmp 161

Stock has well surpassed Resi levels of 146-150 in Last two sessions. If it Closes above 146-150 levels for 2-3 days, then expect more upside from Here... So watch this... Supp @ 146-150 levels.


South Indian Bank: Cmp 141

THis Stock also has crossed Key Resi of 126 levels in last 2 session... Supports @ 118-126 levels. If That 126 level holds then It may Surpass 162-176-183 levels in Short Term.. Watch..


GDL: Cmp 125

GDL has supports at 111-116 level. So Buy This Stock with 111- as Stop Loss for a Target 134-144 levels.. Keep Strict SL...


SAIL: Cmp 180

Stocks Year high was at 188 levels.. Will It break or Not???? If it Breaks then it can go 198-206 levels soon... Supports @ 156-161-165 levels.

Essar oil: Cmp 161

Stocks has tried nearly 2-3 attempts to cross 166-170 levels... May it be Strong resistance zone at current levels... So try this stock after crossing that levels for the Tgt of 190 range... Supports at 156-147-144 levels.

Always Keep Strict Stop Loss... Keep Supp as SL(Long Trading), And Resi as SL(Short Trading)..



Ok..... Bye ....

By

Srisai

Heard on the Street and Stock Views - ET

Top stories

Heard on the Street
15 Oct 2009, 0559 hrs IST

Even as India Inc is banking on real estate IPOs to help trigger the muchneeded turnaround in the primary market, merchant bankers are sceptical about investor appetite.

Motilal Oswal recommends 'buy' on Bajaj Auto
15 Oct 2009, 0316 hrs IST

We are upgrading our earnings estimates by 4.6% to Rs 92.1 for FY10 and by 7.7% to Rs 102.9 for FY11 to factor in higher volumes in both domestic and export markets, better realisation, driven by improving product mix, higher operating leverage, higher interest income on treasury operations

Motilal Oswal recommends 'buy' on Anant Raj Industries
15 Oct 2009, 0315 hrs IST

ARIL has not only been able to comfortably ride the entire downturn (from net debt of Rs 280 crore in FY07 to net cash of around Rs 420 crore in FY09), but is now also looking to buy distressed assets.

Motilal Oswal recommends 'buy' on SBI
15 Oct 2009, 0312 hrs IST

Over the past couple of years, State Bank of India has been focusing on drawing significant synergies through an internal consolidation of its associate banks. The CASA ratio stands at 38%.

Motilal Oswal recommends 'buy' on Deccan Chronicle
15 Oct 2009, 0309 hrs IST

Deccan Chronicle will post a 1.7% Y-o-Y decline in quarterly revenue due to higher base of last year. Advertising revenue is set to grow sequentially by 2%. Decline in newsprint price will benefit the company.

Motilal Oswal recommends 'buy' on Dena Bank
15 Oct 2009, 0307 hrs IST

The bank has repriced Rs 1,200 cr deposits in the Q1. In FY10, it is planning to reprice the additional deposits worth Rs 26,000 cr, which will improve on margins.

Advisable to buy at-the-money put option as hedge: Siddarth Bhamre
14 Oct 2009, 1222 hrs IST

Options data in beginning of October series gave a tentative range of 4700-4800 on lower side and 5200-5300 on higher side to act as strong support and resistance zone respectively.

Src:Economictimes.Indiatimes.com