tag:blogger.com,1999:blog-82509451426265044752024-03-05T10:14:15.990+05:30IndianStocksNews.com - Best Stocks To Buy and Stock TipsIndianStocksNews.com - Best stocks to buy now, stock tips, stock reports & recommendationsUnknownnoreply@blogger.comBlogger1322125tag:blogger.com,1999:blog-8250945142626504475.post-34365093384710498652014-12-04T06:25:00.004+05:302014-12-04T06:30:13.194+05:30Buy IPO of Monte Carlo Fashions as medium-long term investment<div dir="ltr" style="text-align: left;" trbidi="on">
I am sure many of you, especially the ones from North India, would have been wearing Monte Carlo sweaters since long. If not, at lease you have seen them. Monte Carlo Fashions Ltd. (MCFL) is one of the leading apparel brands in India. Monte Carlo primarily caters to the premium and mid-premium branded apparel segment for men, women and kids. Their offerings include woolen, cotton and cotton-blended knitted and woven apparels and home furnishings under the ‘Monte Carlo’ brand.<br />
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<a name='more'></a><span id="fullpost">The company’s net sales have grown at a CAGR of 16.3% over FY2012 to FY2014. Although, the EBIDTA margins have declined from 22% in FY2012 to 18.7% in FY2014, they are at sustainable levels. The net profit has grown at a CAGR of 5.8% over FY2012-FY2014. <br />
<br />
At the lower end of the price band, the stock is valued at ~24.8x PE on FY2014 earnings which is fair considering its <br />
<br />
i) strong brand image, <br />
ii) strong distribution network, <br />
iii) healthy balance sheet and <br />
iv) widening product portfolio. <br />
<br />
It is recommended to subscribe to the IPO at the lower end of the price band for at least two-year time period. If you are considering this IPO for less than two years, don;t expect big investment returns. <br />
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</span><br />
<a href="http://www.angelbroking.com/Research/5586/FPOnote/MonteCarloFashions.aspx" target="_blank">Click here</a> for a detailed IPO research report published by Angel Broking.</div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24514770424471723082013-06-19T16:52:00.004+05:302013-06-19T17:16:18.856+05:30e-Dynamics Solutions IPO - Are You Planning To Invest? <div dir="ltr" style="text-align: left;" trbidi="on">
Are you planning to buy IPO of e-Dynamics? I just read few details of e-Dynamics IPO and could not resist to post it for IndianStocksNews.com readers to make their own decision.<span id="fullpost"><br />
<br />
The biggest and foremost deterrent for me about this company; their email ID.<br />
<br />
edynamicssolutions@yahoo.com<br />
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An e-commerce technology company, apparently running e-commerce portal, have an email address hosted at Yahoo.com? They can't even have the email address hosted at their own domain name? Shows their expertise and dedication to technology.<br />
<br />
Now take a look at their website. http://www.edynamicssolutions.com/ A non-functioning website for e-commerce technology solutions company! I tried visiting the website different times in the span of 12 hours and all the time all I could see was Magento error! Such a non-serious e-commerce company who can afford such a long downtime. <br />
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</span><br />
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<span id="fullpost"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJ_S4OyrycgrKO_8TQmHPOvEMadPK67Sn-k_Gkb_W6TmOEBqkWQVbAYiZshFcOT-tA6E9dOFwEWBMxdYXLUw98ManbOKw4A2Lnu3ACAV_KAKa4eeaxagNZ01xjw1xvOfzAQa5nhvHOFhQI/s1600/e-dynamics_solutions_IPO.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJ_S4OyrycgrKO_8TQmHPOvEMadPK67Sn-k_Gkb_W6TmOEBqkWQVbAYiZshFcOT-tA6E9dOFwEWBMxdYXLUw98ManbOKw4A2Lnu3ACAV_KAKa4eeaxagNZ01xjw1xvOfzAQa5nhvHOFhQI/s400/e-dynamics_solutions_IPO.JPG" /></a></span></div>
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These two things are good enough to show how serious company is in their business of "technology". I don't even need to go into their financial details which are even shady.<br />
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Read <a href="http://www.moneycontrol.com/news/ipo-swot/e-dynamics-ipo-a-hi-tech-sounding-cos-not-so-hi-tech-biz_895033.html" target="_blank">this article</a> about their financial shady practices.<br />
<br /><a href="http://www.bseindia.com//downloads/ipo/2013429161442Draft%20Prospectus.pdf" target="_blank">e-Dynamics solutions IPO red herring prospectus</a> on BSE Website.</span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-53786490882823029372013-01-23T08:43:00.000+05:302013-01-23T08:44:23.913+05:30Mid Cap Stock Analysis - Oberoi Realty LimitedStock analysis of Oberoi Realty Limited based upon 3QFY13 results along with recommendation.<br />
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3QFY13 revenues for Oberoi Realty Limited are at Rs. 310 crore, it is up 41% yoy and 9% qoq. These numbers are higher than stock analysts’ estimates.<br />
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EBITDA margin has improved by about 100 bps on a qoq basis for company. Operating margins for its hospitality business improved significantly to 20.8% compared to 9.2% last year and 4.9% in the previous quarter.<br />
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Contracted volume sales remained flat at 0.12 million sq ft vs 0.13 million sq ft in 2QFY13 and 0.12 million sq ft in 3QFY12.<br />
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Note the company has not included contracted sales volume from the Worli real estate project. This lower contracted sales volume is due to lack of no major launches.<br />
<br />
Operating Cash Flows for company have moved back to positive territory. One may 'buy stocks’ of Oberoi Realty Limited with stock price target of Rs.351 in medium term.<br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-5484960475360092072013-01-22T09:16:00.003+05:302013-01-22T09:16:49.461+05:30Reliance Industries - What should you do with stock?Some notes meant to provide guidance on what to do with stock of Reliance Industries, especially after the recent rally in stock.<br />
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The recent rally in Reliance Industries was driven by a possible increase in gas price and E&P approvals to re-start the drilling activities. Refining margins for company were better than expected in 3QFY13. Petchem remained flat with little signs of near term demand revival.<br />
<br />
Possible upside in stock price is expected from the gas price hike. Recent initiatives by the government of India enable the company to renew exploration activities in key <br />
fields.<br />
<br />
The initial E&P results will take six to twelve months, after which a case for a possible reserve upgrade could be made. While petchem capacity additions are a step in the right direction, the then macro mood will determine EBITDA growth but will be hard to predict.<br />
<br />
One may 'hold stocks’ of Reliance Industries in portfolio if already owned. </span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-37234606579561513932013-01-22T09:03:00.002+05:302013-01-22T09:03:41.313+05:30Large Cap Stock Analysis - Wipro LimitedHere are stock research notes based on 3QFY13 results of large cap stock Wipro.<br />
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3QFY13 USD services revenue went up 2.4% qoq and it is slightly better than market estimates. IT services EBIT margin was up 16 bps as productivity gains and forex gains offset lower utilization and promotion costs. This and higher other income led to an EPS beat.<br />
<br />
Company's 4QFY13 services growth guidance of 0.5 – 3.00% qoq is not very exciting but it does not derail the growth prospects.<br />
<br />
Volumes declined 1% qoq but offshore – onsite realizations grew 3.0 – 3.2% qoq, continuing the trend of productivity gains in fixed price contracts that started last year.<br />
<br />
The company noted that its pipeline had expanded 1.7 times since 3QFY12 and pointed out improved deal closures and a perceptible change in client sentiment over the past quarter.<br />
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Analysts are not overly worried about Wipro’s poor volumes as 3Q is seasonally weak and peers also saw a drop in volume growth.<br />
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It looks like that 4Q guidance factors in macro headwinds like US debt ceiling etc, delays in some project starts and about 20 tail accounts that Wipro plans to de-emphasise.<br />
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USD revenue growth is expected to pick up to 12.9% in FY14 from 5.6% in FY13.<br />
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Positives in 3Q: the top 10 accounts continued to grow ahead of the company’s average on sales investments; realization was up 4-5% yoy; and attrition was much lower yoy at 14.2% vs 19%.<br />
<br />
In medium term, more upsides are expected in Wipro’s margins when the growth picks up.One may buy stocks of Wipro with a target price of Rs.460.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-52867678193571287922012-12-09T01:01:00.002+05:302012-12-09T01:06:38.360+05:30BHARTI INFRATEL LIMITED IPO<div dir="ltr" style="text-align: left;" trbidi="on">Bharti Infratel's initial public offering (IPO) of over 18.89 crore equity shares of face value of Rs 10 each opens for subscription on December 11. <br />
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<b>Issue Snapshot</b><br />
Issue Open: 11-December-12<br />
Issue Close: 14-December-12<br />
Price Band: INR 210-INR 240<br />
Issue Size: INR 39,669 mn - INR 45,336 mn<br />
Market Cap: INR 396,615 mn - INR 453,274 mn<br />
IPO Grading: CRISIL IPO Grade 4/5 <br />
Listing: NSE & BSE <br />
Lot Size: 50 or multiples of 50 equity shares <br />
Discount: A discount of Rs. 10/- to the issue priceis being offered to Retail Individual Bidders. <br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtWEWdgP0w9g0ieiWHRQR8ww_D6rb3o2dIq0P5lUnslaa839rkgod7eEkZpvWsInlI4dDy7a_d1oBQpryfDfE3LjA9-ZdsaTjs4H81P0Trh3kq-1sv9EK6xKHKpADM0r_0w6WInmoYrBMh/s1600/BHARTI-INFRATEL-LIMITED-IPO.jpg" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="136" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtWEWdgP0w9g0ieiWHRQR8ww_D6rb3o2dIq0P5lUnslaa839rkgod7eEkZpvWsInlI4dDy7a_d1oBQpryfDfE3LjA9-ZdsaTjs4H81P0Trh3kq-1sv9EK6xKHKpADM0r_0w6WInmoYrBMh/s400/BHARTI-INFRATEL-LIMITED-IPO.jpg" /></a></div><br />
Bharti Infratel is one of the oldest cellular tower infrastructure companies with towers allover India (all 22 circles). Bharti Infratel also owns 42% stake in Indus Towers. So, combinely Bharti Infratel has 80,656 towers (34,220 BIL and 46,436 Indus). It builds, operates and owns towers which are then rented to Telecom operators across the country. Revenues for company were INR 94.5bn with Net profits of INR 7.5bn in FY12.<br />
<br />
The Company caters to Bharti , Vodafone and Idea which reflects stable annuity business with huge growth potential for the company from these top 3 telecom companies in India. The Telecom tower infrastructure business is in a growth phase with rural penetration still at a paltry 38.3%, this presents huge opportunity to expand network base further.<br />
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New technologies like 3G and 4G, made available at high frequency (lower wavelength) by the government, require wider tower base and hence new tower installations/infrastructure.<br />
</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-83648991622667250342012-08-14T17:14:00.001+05:302012-08-14T17:19:10.974+05:30Buy Stocks of India Cements - Stock Research Notes<div dir="ltr" style="text-align: left;" trbidi="on">
India Cements is rated to ‘buy stocks’ at currently traded price at Rs.85. Checkout the target stock price.<span id="fullpost"><br />
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<span id="fullpost"><ul style="text-align: left;">
<li> 1QFY13 results surprised positively with EBITDA at Rs.280 crore, beating market expectations.</li>
<li>Recurring PAT at Rs.90.8 crore has also been ahead of market estimates.</li>
<li>Tax rate at 36% was higher than expected. Exceptional items of Rs.45 crore were on account of IPL franchisee and forex related losses.</li>
<li>Average sales price at Rs.4460/ton surprised positively and increased 5% qoq. Sales volume at 2.4 million tons missed market estimates by 1%. </li>
<li>Operating costs at Rs.3432/ton was in line but EBITDA/ton at Rs.1043 has beaten market estimates. </li>
<li>Revenue and EBITDA of other businesses were at Rs.138.5 crore and Rs.32.8 crore respectively. </li>
<li>Company has reiterated its guidance on timeline for the commissioning of 50MW CPP (captive power plant) in Andhra Pradesh and Indonesian coal mines by FY13 end. </li>
<li>It seems that the recent talk in the market regarding mergers and acquisitions in the sector is positive to mid-cap players like India Cements as it sets a floor for their valuation and future transactions in the sector. </li>
<li>Currently, the stock trades at an EV/ton of USD 69, which is at a 51% discount to its current replacement cost of USD140/ton, according to analysts’ estimates.</li>
</ul>
<div>
<strong>India Cements is rated to ‘buy stocks’ with a target price of Rs.102 over one year.</strong> </div>
</span></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-83337267234261840392012-08-03T06:46:00.001+05:302012-08-03T06:46:17.769+05:30Tamilnad Mercantile Bank IPO on the wayTamilnad Mercantile Bank (TMB) will soon be coming up with it's Initial Public Offering (IPO).<span id="fullpost"><br />
<br />
It's CEO Mr. Nagendra Murthy was recently quoted "Paperwork and ground work is almost done. We are ready. But the timing can be decided only after the court sets the date for the AGM".<br />
<br />
Tamilnad Mercantile Bank (TMB) is a 92-year old bank. It has a paid-up capital of just Rs.28 lakh. And it's reserves (excluding revaluation reserve) are in excess of Rs.1634 crore.<br />
<br />
Shares of TMB has a face value of Rs 10/share. But people say that these shares are traded more than Rs.45000/share in the grey market.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-19003148782976946752012-07-18T07:40:00.000+05:302012-07-18T07:40:00.226+05:30The shallowness of IT industry and India shiningIT Superpower. IT Behemoth. IT Capital of World. This is how India was used to being tagged in past 10 years. BJP's India shining was fuelled in reality by 'IT'. Congress tried to ride this 'shining India' and then became the reason of whining of India. Is Indian IT industry really so strong today? In just 10 years, this so called IT superpower has started loosing it's glammer, growth and .... shine too.<span id="fullpost"> <br />
<br />
Read below fact from an article <a href="http://economictimes.indiatimes.com/tech/ites/golden-age-of-indian-it-is-over-for-good-value-research/articleshow/14967193.cms" target=_blank>Golden age of Indian IT is over for good</a><br />
<br />
"Recently, I read an article about this year's Google's Code Jam contest, which is a sort of Olympics for programming skills. At the qualifying stage, 17% of the contestants were Indians. By the third round, as the competition intensified, Indians were down to 0.7%.<br />
<br />
Although India began with the highest number of participants, just three Indians lasted till round three, compared to 83 Chinese, 77 Russians, 36 Japanese, 25 Americans, 21 Poles, 13 Belarusians, 11 South Koreans etc. In fact, the code Olympics look much like the sports Olympics. So much for the IT superpower."<br />
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This is what the reality is. Indian IT industry hardly produces any 'products'. All it does is to provide cheap labour to western clients for offshore work rather than creating any Intellectual property. It is like modern day labourers who earn for the work completed on hourly basis, at slightly different scale though. And their contractors are so called Indian IT giants!! <br />
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How does it matter for stock market? The so called IT superpower is loosing it's position thanks to rising costs in India due to inflation and ever growing wages which are becoming increasingly unaffordable for offshoring client who looks for cheaper labour, especially in this era of slowdown. Another reason is slowdown/recession in developed world itself. This will stall growth of these IT bellwethers further in future loosing investor interest. Read: <a href="http://www.indianstocksnews.com/2012/07/should-you-buy-stocks-of-it-companies.html" target=_blank>Should You Buy Stocks of IT Companies now?</a></span><br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-86592127556674441792012-07-13T17:16:00.001+05:302012-07-14T17:49:19.094+05:30Should You Buy Stocks of IT Companies now?<div dir="ltr" style="text-align: left;" trbidi="on">
Q1 results of Infosys and TCS are out and both the companies have published contrasting results that create confusion in one's mind. Results of both the companies are generally benchmarked for entire IT industry and these recent results do not clarify situation of IT industry at all this time! What should you do at this time? Buy stocks of IT companies or not?<span id="fullpost"><br />
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Infosys stock is dragging in red while TCS is up in green. Sheer contradiction by two biggest IT supremos of India creating state of confusion in small investor's mind. <br />
<br />
US dollar income of Infosys has declined by 1.1% compared to previous quarter earnings. Also, achieving growth in the US dollar revenues for company could be difficult, especially when major corporations across Europe and US are reducing IT expenditures and so the number of projects that IT companies in India receive from them are decreasing. Also, Infosys has stopped providing quarterly guidance that will make guesswork more difficult for stock market analysts. <br />
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I was reading an article that explains how the IT industry is facing reduction in number of projects from their clients. Since the number of projects coming to companies are reducing constantly from bleak economies of Europe and US, the employees that IT companies had recruited are becoming overhead expenses for them. Normally, IT companies would recruit more employees than what they need, in anticipation of future flow of projects. It is called bench strength. Number of projects are not flowing in as they use to be in past few years but IT companies have to pay salaries and benefits to their bench strength without earning any revenues using their services. And looking at Europe and US, the trend seems to be continuing for next few quarters at least. You can <a href="http://economictimes.indiatimes.com/tech/ites/it-industry-hit-by-shortage-of-projects-from-europe-and-us/articleshow/14794654.cms?curpg=1" target="_blank">read the article here</a>.<br />
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Near future will certainly be difficult for most of the IT companies in India as they are dependent on Europe and US for major chunk of their revenues. Their first target will be to sustain the current levels of their revenues and then think of growth. From stock market's perspective, it tells you that these are the companies which may sustain but growing from here? Could be extremely difficult. And when there is no growth anticipated in near future, the stock remains range bound (call it dud) on bourses or it even declines. <br />
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In my opinion, stay away from IT sector stocks unless the economic scenario of Europe and US improves (which may take years!!), do not buy stocks of IT companies for now.</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-43811784099234718392012-06-25T08:37:00.002+05:302012-06-25T08:45:01.320+05:30United Phosphorus..Are shareholders at correct place?I was watching latest episode of Aamir Khan's TV show Satymev Jayate. CMD of United Phosphrous, Mr. Shroff had participated in this show and the way he was talking about sensitive issue of health absolutely insensitively, I really wonder if money of shareholders of United Phosphorus is in safe hands!<span id="fullpost"><br />
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As an educated person (I think I am!) and follower/user of organic food for a past few years, I felt Mr.Shroff was trying hard to insult my intelligence.<br />
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At the very same moment, the way he was endorsing pesticides (I felt it was foolishly), looking at his way of fooling around the sensitive issue of pesticides very insensitively, I strongly felt how he would be running his company and how he would steer the company in future.<br />
<br />
Has he really been able to run the company with futuristic vision? Or the business of company is just to manufacture poison and sell it allover India as "medicine" for crops? Why this company has not been able to find something which is organic and non-harmful? Why they are not researching on 'organic pesticides'? Why can not we (and they) think differently?<br />
<br />
Being stock analyst, I felt Mr. Shroff's vision in this direction is completely blocked. The way he represented the company on national television, was totally inappropriate in my opinion and so, the question, if shareholders of United Phosphorus have deployed their money at correct place? Feel free to express your opinion, we are world's biggest democracy and no one can and should dare suppress our voice!</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-33107700221952771242012-06-24T23:24:00.001+05:302012-06-24T23:41:04.698+05:30Kabra Extrusiontechnik - Stock to buy in 2012?Kabra Extrusiontechnik had a bad FY12 financially due to slowdown in Indian polymer consumtion growth. Construction pipes and FMCG packaging oriented polymer consumption is expected to resume it's growth in FY13 and so the growth of Kabra Extrusiontechnik. Does this makes it a stock to buy in 2012?<span id="fullpost"><br />
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<b>BUSIENSS</b><br />
As stated, The polymer consumption in plastic pipes for irrigation, water management, construction, telecom industries and packaging films for edible oils, milk, processed foods and other FMCG products is expected to show healthy growth in FY13 and beyond. Kabra Extrusiontechnik (KETL) is India's leading manufacturer of heavy machinery/plants for plastic processing industry to produce plastic pipes and packaging films. The expected growth will ensure demand for products of company.<br />
<br />
Industry experts believe that investment of nearly $10 billion would be required in the plastic processing industry to meet the future demands. Such big investments in the plastic processing industry will be a key growth driver for sector and so for the company.<br />
<br />
The company has set up one more manufacturing unit at Daman with investment of Rs.35 crores for new products. This additional capacity will be available from FY13 onwards. <br />
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Kabra extrusion has paid dividend consistently for last 7 years in a row. It's current stock dividend yield stands at healthy 5.17%.<br />
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<b>STOCK FINANCIALS</b> <br />
KETL's profits plunged 75% against a 14% fall in its net sales in first three quarters of FY12. This was due to investment in new plant in Daman and increased expenditure due to hike of 30% in local electricity rates. Company's revenues have grown at a CAGR of 16.9% with profit growth at 32.5% in the five-year period ended FY11. Its debt-equity ratio at end September 2011 is at 0.1.<br />
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<b>STOCK VALUATIONS</b> <br />
The stock trades at current stock price of Rs.34. The price-to-earnings multiple (P/E) is at 11.67 and price-to-book value ratio (P/BV) of 1.01. The board has recommended dividend of Rs. 1 per share for 2012 which makes dividend yield at 3% which is not bad. Looking at growth prospects and limited downside, it is a good small cap stock to buy at dips and wait for a year or two to get good investment returns.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-54146665066939804922012-06-23T21:01:00.000+05:302012-06-23T21:01:10.082+05:30Buy Stocks of Sesa Goa for medium termEquity research team of Nirmal Bang is bullish on Sesa Goa has recommended to buy stocks of Sesa Goa for medium term. Here is the stock research report.<span id="fullpost"> <br />
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Sesa Goa’s (SGL) annual report for 2011-12 indicates that company’s management is cautiously optimistic on the iron ore market. It may be recalled that Sesa Goa faced multiple headwinds like iron ore production as well as export ban in Karnataka, logistics issues in Goa and declining iron ore prices. <br />
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Iron ore prices are not looking to be on higher side in near future but above sectoral issues may not be resolved soon. Sesa Goa is an insignificant play in the combined merged entity i.e. Sesa-Sterlite. <br />
<br />
The combined entity’s valuation (a major portion of the valuation is driven by Cairn India and Hindustan Zinc) is high and with these valuations, target stock price for Sesa Goa will be Rs.230 in medium term.<br />
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<embed src="https://www.box.com/embed/y34cqlkp7xaq2db.swf" width="485" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-51928642784294493912012-06-22T18:09:00.000+05:302012-06-22T18:11:56.910+05:30Buy stocks of Electrosteel Castings for one yearHere is the Result Update on Electrosteel Castings for 4QFY2012 with a 'Buy Stocks' recommendation and target stock price for next 12 months.<span id="fullpost"> <br />
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The results of Electrosteel Castings (ECL) for 4QFY2012 were disappointing. The company’s EBITDA and net profit were negatively affected due to higher raw-material and interest costs. <br />
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The stock research team at Angel Broking has positive view on the company’s initiatives of venturing into steel making through its associate Electrosteel Steels (ESL). <br />
<br />
Further, the company’s backward integration initiatives through the allocation of iron ore and coking coal mines are expected to result in cost savings from FY2014. <br />
<br />
The stock research report recommends to Buy stocks of Electrosteel Castings (ECL) with target stock price of Rs.22 in next 12 months.<br />
<br />
<embed src="https://www.box.com/embed/qss24htih2qskmi.swf" width="485" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-79516448074464618552012-06-15T08:34:00.000+05:302012-06-15T08:37:17.360+05:30Mid Cap Stock To Buy - Page industries<div dir="ltr" style="text-align: left;" trbidi="on">Here is one Mid cap stock to buy with huge growth potential still waiting ahead. <span id="fullpost"> <br />
<br />
Page Industries is a franchisee of Jockey International (USA) in India. It manufactures and distributes Jockey products in India, Sri Lanka, Bangladesh, Nepal and UAE. Its products include innerwear and leisure wear for men and women. Though men's innerwear is the major contributor to total sales, the contribution of women's innerwear and that of other categories has been rising steadily. It has an installed capacity of almost 10.9 crore pieces per annum. The company has very strong distribution channel and you can see the Jockey products selling in every clothing shop across the nation.<br />
<br />
<b>GROWTH</b><br />
The company is in business for more than 17 years now and has established itself in India with very strong distribution network of 400 distributors and 20,000 retail outlets. It is a very wellknown brand with superb brand power that gives it product pricing power to keep it's profit margins stable. <br />
<br />
The innerwear market has been growing at compounded annual growth rate of 12% for last ten years. Sales of Page industries have grown at a CAGR of 34% for past 10 years. Company has increased it's manufacturing capacity by 500% in past 10 years. With added capacity in future, company will explore markets of Sri Lanka, Bangladesh, Nepal and UAE.<br />
<br />
<b>STOCK FINANCIALS</b> <br />
Sales of Page Industries have grown at a CAGR of 38% in the past five years. Net sales is expected to be Rs.700 crore in FY12. Operating margins are 21% for past five years. Its PAT has grown at a CAGR of 40% and is expected to be Rs.93 crore for FY12. It's debt- equity ratio was 0.4 as on September 30, 2011. The debt was for faster capacity expansion.<br />
<br />
<b>STOCK VALUATIONS </b><br />
Return on Equity for Page Industries has been very high (43 in FY10, 53 in FY11 and is expected at 65 in FY12). Very few stocks can generate such a high and a growing return on equity. The stock trades at stock price of Rs.2,900 currently. This puts P/E ratio at 36. The steep valuations seem to be very high at this point of time. It is the price of being very high growth stock. This high growth potential certinaly makes it a stock to buy. If this stock corrects with valuations of below 30 P/E, one may buy stocks of Page Industries for long term investment.</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-10777699301938233872012-06-11T06:31:00.001+05:302012-06-11T06:33:04.623+05:30Large Cap Stock Research Report - SBIStock research team of Motilal Oswal (a leading stock broking firm) has come up with a stock reseach report on State Bank of India (SBI). Checkout the stock report and target stock price.<span id="fullpost"> <br />
<br />
<b>SBI Stock trades at 20%+ discount to it's long-term average valuations.</b><br />
<br />
A challenging macroeconomic environment in India and asset quality issues for SBI over the last couple of years have led to significant correction in valuations. SBIN is trading at a discount of over 20% to its Long-Period Average valuations.<br />
<br />
For SBI, strong core income performance is most likely to continue and stock research team at Motilal Oswal is conservative on credit cost estimates which would provide a cushion in case asset quality surprises negatively.<br />
<br />
With a market share of 25%, SBI is almost like a proxy to the Indian economy and SBI has historically traded at a premium to other Public Sector Banks (PSB's), despite its return ratios being lower. Over FY12-14, SBIN's RoA and RoE are expected to converge with other PSBs.<br />
<br />
It is expected that RoA will improve from 0.9% in FY12 to 1.1% by FY14 and RoE will improve from 15.7% in FY12 to 17%+ by FY14.<br />
<br />
SBI is a top pick in PSB space, with a stock price target of Rs.2,725 ( this is 1.25x FY14E consolidated BV + Rs.102 for Insurance business).<br />
<br />
<embed src="https://www.box.com/embed/ligaaosti70747v.swf" width="485" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-54186616113258169392012-05-22T09:39:00.001+05:302012-06-11T06:30:30.177+05:30Rakesh Jhunjhunwala holdings increase in 4 stocksRakesh Jhunjhunwala has increased his stake in 4 different stocks in April and May 2012.<span id="fullpost"> <br />
<br />
As per the data available with stock exchanges, Rakesh Jhunjhunwala has increased his holdings in Prime Focus, Aptech, Viceroy Hotels and Geometric software through open market transactions.<br />
<br />
These stocks have surged in past 2 months significantly even in falling market. Viceroy Hotels was the biggest gainer at 39%, Geometric (16%), Aptech (12%) and Prime Focus (3%). All the surge was mainly due to Rakesh Jhunjhunwala buying stocks of these companies. Basically these stocks are good stocks to buy as long term investment.<br />
<br />
Rakesh Jhunjhunwala has acquired 25.5 lakh more shares or 1.71 per cent shares of Prime Focus. After this purchase, his total stake in company is at 7.64%.<br />
<br />
He has bought additional 10 lakh shares, or 1.6% stake, in Geometric to take his total stock holding to 10.06%.<br />
<br />
Rakesh Jhunjhunwala also acquired 2.24% in Aptech. His holdings in Aptech is over 32% per cent. Also he has increased his holdings in Viceroy Hotels to 13.45% by acquiring additional 3.45% shares.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-86969964576775389892012-05-21T08:01:00.000+05:302012-05-21T08:01:02.658+05:30IPO News - Rashtriya Ispat Nigam (RINL) IPO Coming UpRashtriya Ispat Nigam has filed IPO papers with SEBI. Rashtriya Ispat Nigam (RINL)is a state-owned company and will mostly be launching it's first initial public offer (IPO) in financial year 2012-13.<span id="fullpost"><br />
<br />
RINL has filed draft red herring prospectus (DRHP) on May 18th with SEBI stating IPO of 48.898 crore equity shares ( it will be a dilution of 10% equity stake by the GOI).<br />
<br />
This IPO is offering a discount of upto 5% on offer price to retail investors and employees of the company.<br />
<br />
RINL is India's second largest government owned steel company. It has original liquid steel production capacity of 3 mtpa and this capacity will be expanded to 6.3 mtpa by the financial year 2013.<br />
<br />
For the nine months period ended on December 31, 2011 RINL had recorded consolidated PAT of Rs 500.53 crore on total income of Rs 9,408.71 crore.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24530362756287093872012-05-14T03:43:00.000+05:302012-06-11T06:37:31.308+05:30Stock Research Report - Hyderabad IndustriesHyderabad Industries is a C K Birla Group company. It is into the business of producing building products, engineering goods and industrial products and is a market leader in its segments.<span id="fullpost"> <br />
<br />
HIL markets its product AC and fibre cement sheets under the well-known brand “Charminar”. The total capacity of the cement sheet is 8.55 lakh tpa, prefab building panels at 4.60 lakh tpa, prefabricated autoclaved capacity at 3.05 lakh tpa and thermal insulation capacity is 6,000 tpa. <br />
<br />
The commercial production of sheeting line 2 in Uttar Pradesh has started w.e.f. 09 February 2012. HIL is also the largest manufacturer of calcium silicate, insulation blocks, pipe sections and jointing for gasketing, thereby meeting the critical needs of the fertilizer, engineering & chemical industries. Company also makes aerocon prefab panels, autoclaved aerated concrete blocks, which find applications in the construction of buildings, malls, shopping complexes and office partitioning etc. <br />
<br />
HIL has a strong & extensive distribution network with nearly 8000 sales points spread across the country which is serviced by its 45 depots across country.<br />
<br />
The stock trades at current stock price of Rs.358 at P/E of 4.4 FY12. With expected EPS of 93.5 in FY13E, stock trades at P/E of 3.83 and at P/E of 3.25 with 110 EPS FY14E. With these estimates, stock price target will be Rs. 480 in medium term.<br />
<br />
At current stock price of Rs. 358, dividend yield is also very attractive at 4.47%. It's book value is 474 making it a stock available below book value and a good dividend yielding value stock to buy. <br />
<br />
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<br />
Company runs 62 Food & Beverage outlets in various cities of India. As per their website (http://www.speciality.co.in), Mainland China serves more than 2 lakhs Chinese meals per month. Mainland China and Oh! Calcutta have won major awards on various occasions for being India’s best restaurants in their respective categories. Company employs about 3000 people.<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifWeWtdnsnEbJ-9lwK7O2jbH2ySxcEAa3iYM5NXVVNJzfdZ9dSZRZ_waj_n8UcvvqKolD3mQBNpRLqI2QCN0RRLAKQyCSjc5tNxGjdrI-v9Sov9J7TGIQtBPeZ5UVwpo7FVm6eVm_5iQsW/s1600/Specialty+Restaurants+IPO.png" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="143" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifWeWtdnsnEbJ-9lwK7O2jbH2ySxcEAa3iYM5NXVVNJzfdZ9dSZRZ_waj_n8UcvvqKolD3mQBNpRLqI2QCN0RRLAKQyCSjc5tNxGjdrI-v9Sov9J7TGIQtBPeZ5UVwpo7FVm6eVm_5iQsW/s400/Specialty+Restaurants+IPO.png" /></a><br />
<br />
Company is launching its IPO issue of 1,17,39,415 equity shares of face value Rs 10 each on May 16, 2012. This issue will constitute 25% of the post-issue paid-up capital.<br />
<br />
Speciality Restaurants is planning to use funds gathered thru IPO for development of new corporate restaurants (with an outlay of Rs 144.685 crore); development of a food plaza (with cost of Rs 15.1 crore); and repayment of a term loan facility (with Rs 10.433 crore). As per DRHP filed with SEBI, company plans to open 48 new corporate restaurants.<br />
<br />
Promoters of Speciality Restaurants are Anjan Chatterjee and Suchhanda Chatterjee. They will reduce their shareholding in company to 60.69% post IPO issue. IPO will close on May 18.<br />
<br />
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<br />
Titan Industries posted PAT (Profit after tax) of Rs.144 crores in Q4FY12 which is 72% growth over PAT in same quarter last year. Watch sales was up 14% for Q4 and 15% for FY12. Jewellery volumes declined 7% for Q4 but it was up 5% for full year. Titan industries added 41 retail stores during Q4FY12. Now the total number of stores is 827 stores across India. Growth in Eyewear business was 17% in sales. Strong volume growth in Watches division is a key highlight of the quarter.<br />
<br />
Titan Industries is following strategy of expanding its presence in Lifestyle segments and categories where demographic dividend can be most leveraged. Titan Industries is one of the top stock pick by Prabhudas Lilladher stock reseach team in the Retail space with ‘Buy Stocks’ rating. Target stock price for next one year is Rs.290 (28x FY14 expected). Price volatility in Gold may act as a deterrent for volume growth for company.<br />
<br />
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<br />
The management of SMFL withdrew its Rs.1,665 crore IPO issue on Friday as investors turned back to it's expensively priced initial public offering and foreign funds panicked when Indian government announced that it was renegotiating the double taxation avoidance agreement (DTAA) with Mauritius government. SMFL has anchor investors and promoters based out of this foreign location.<br />
<br />
This IPO was opened on May 2, and was subscribed just 0.38 times till 7 pm on the closing day of issue according to the NSE website. Such was the bad response to IPO by investors due to exorbitantly priced initial public offering.<br />
<br />
SMFL is an auto part company being parent company of listed auto components manufacturer Motherson Sumi. Promoters Vivek Chaand Sehgal and his family owns 90.35% stake in company and the company was planning to raise around Rs 1,665 crore in the price band of Rs 113 to Rs 118 per share.<br />
<br />
Various news agencies are stating that company received poor response to it's IPO due to weaker market conditions but they are ignoring the fact that company had priced this issue with exorbitantly high valuations and was dreaming to be a debt free company on people's money with no value/returns for small retail investors. Company had left nothing on table for small IPO investors and so retail investors were not keen on investing in IPO. <br />
<br />
<a href="http://www.indianstocksnews.com/2012/05/ipo-info-samvardhana-motherson-finance.html" target=_blank>IPO Recommendation</a> to readers of IndianStocksNews.com about <a href="http://www.indianstocksnews.com/2012/05/ipo-info-samvardhana-motherson-finance.html" target=_blank>SMFL IPO</a> was very clear - "Small investors need not buy IPO of SMFL. Better stay away."<br />
<br />
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<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
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SMFL was founded in 2004 and provides an end-to-end range of design and manufacturing solutions to the automotive customers, including product concept and product design, engineering, manufacturing, sub-assembly and the production of integrated modules.<br />
<br />
Issue Open: May 02, 2012<br />
Issue close: May 04, 2012<br />
Price Band: Rs. 113 - Rs. 118 Per Equity Share<br />
Minimum Bid Size: 50 Equity Shares<br />
Face Value: Rs. 10 Per Equity Share<br />
Issue Type: 100% Book Building<br />
Maximum Subscription Amount for Retail Investor: Rs. 200000<br />
<br />
<b>IPO Grading / Rating:</b><br />
ICRA has assigned an IPO Grade 4 to Samvardhana Motherson Finance Ltd IPO. This means as per ICRA, company has 'Above Average Fundamentals'. This rating is influenced more by the group’s standing, production capabilities and the diversified product portfolio. But as on today, company is currently in losses.<br />
<br />
<b>Future Prospects</b><br />
Consolidated total debt of the company is Rs.3918 cr against networth of Rs.1433 cr. After this IPO, company is planing to reduce the debt by Rs.966 cr. Reduced debt will lighten interest costs and give a boost in balance sheet for profits, the effect of this will not be visible anytime soon in balance sheet. <br />
<br />
<b>IPO Valuation</b> <br />
SMFL reported EPS of Rs 2.90 in FY11 and had posted loss of Rs2.50 per share in FY12. Company has fixed a price band of Rs.113 to Rs.118 for this IPO. Company has also allotted nearly Rs.2 cr share to some anchor investors at a price of Rs.115. This valuation looks very high for IPO and especially when company had made preferential offer at Rs.52.10 per share in sept2011. From price to Book Value perspective, the ratio stands at more than 5 for lower and upper price band of IPO. Value investing says, value stock is the one which has P/BV ratio of 1 or lower. This IPO offering is way away from being an value investment for IPO investors. <br />
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Small investors need not buy IPO of SMFL. Better stay away.<br />
<br />
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<br />
<b>Business:</b><br />
Jain Irrigation is in business of micro-irrigation systems (MIS) and it is the biggest player in it's industry. Sales of Micro-irrigation systems constitute half of Jain Irrigation's total revenues. Company's products are eligible for capital subsidy from central government. These subsidy payments were delayed by government (as you know how Indian government works!!) in past 6-9 moths. This created problems for Jain irrigation in terms of working capital requirements and have contributed to it's lackluster performance in last one year. The company lost more than half of its value in stock markets in 2011 for its inability to curb the receivables.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdwriH7ny-k-vNmGYSk_bVmiFoGA4JZiL78nSC1VCnZlC9A40bWb7egcId-beUkFesPDQAcC-44HDyfmRF2mA-VrsUoWqrqGfAXIZuguPu-kaUKKyFrhYDDCO2_hNDyoxJuodzZG2A_XVA/s1600/Mid-Cap-Stock-Analysis-Jain-Irrigation.jpg" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="175" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdwriH7ny-k-vNmGYSk_bVmiFoGA4JZiL78nSC1VCnZlC9A40bWb7egcId-beUkFesPDQAcC-44HDyfmRF2mA-VrsUoWqrqGfAXIZuguPu-kaUKKyFrhYDDCO2_hNDyoxJuodzZG2A_XVA/s400/Mid-Cap-Stock-Analysis-Jain-Irrigation.jpg" /></a><br />
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Jain Irrigation's PVC pipe business grew 36% Y-O-Y in previous quarter. Company is tapping foreign markets and expecting exports revenue to grow to $100 millions. If company achieves this target, it will be more than 6 fold growth in PVC pipe exports business. Company is also working towards reducing it's working capital cycle for better balance sheet stability. For the same reason, Jain Irrigation has decided to operate an Non-Banking Financial Company (NBFC) and has approached RBI to obtain the same. Operating NBFC will help company in it's working capital requirements. <br />
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<b>Stock Financials</b><br />
Reported Profit After Tax for last quarter was at Rs.1.2 Crore which is a fall of 98.3% Y-o-Y. Fall in PAT was on account of higher interest cost of Rs.91.6 Crores and forex loss of Rs71.1 Crores. However, adjusted PAT stood at Rs.72.4 Crores.<br />
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The company's profitability in the last two quarters was hit by mark-to-market losses on its $157-million outstanding loans. The losses stood at Rs 59.3 crore in the September quarter and Rs 71.1 crore in the December quarter. However, these mainly remain non-cash adjustments. The main source of pain was the interest cost, which at Rs 250.6 crore for the nine months ended December 2011 was up 58% against the year-ago period. The net profit in the same period almost halved to Rs 95.2 crore.<br />
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<b>Stock Valuations</b><br />
At current stock price of Rs.88, the stock trades at P/E of 17. In coming quarters, balance sheet would be without forex losses and company's profits would be boosted by significant difference. This makes it a stock to buy in mid cap space.<br />
<br />
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<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPP4VmMWnMhXZTM7GZrIu_xlTBQeQ7E6Ozr6gREODtg5NAVNV77uspTQbohd47UsCKG_JGt2dmmk5ufrto9GzQS1WElVeQxVbbMkMlajwNbG78BL09Fqh8gcxGNR7Qs-HLhOfSA4Dcb_Qg/s1600/Buy+Gold+on+Akshay+Tritiya.JPG" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="320" width="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPP4VmMWnMhXZTM7GZrIu_xlTBQeQ7E6Ozr6gREODtg5NAVNV77uspTQbohd47UsCKG_JGt2dmmk5ufrto9GzQS1WElVeQxVbbMkMlajwNbG78BL09Fqh8gcxGNR7Qs-HLhOfSA4Dcb_Qg/s320/Buy+Gold+on+Akshay+Tritiya.JPG" /></a><br />
The easiest way people follow traditionally is to buy gold from jewelers in the form of ornaments. It is best way if you want to buy ornaments and make your other half happy! But what if you want to buy gold only for investment? Do you know that jeweler charges you making charges of more than 15 to 20% of total cost of gold jewellery that you are buying? And then sales tax is added on top of it. Immediate loss of more than 20% in your gold investment the moment you walk out of jeweler’s shop! And then when you go to sell the same gold after some time, another few percentage points (often more than 10%) of loss in the name of purity loss, breaking charge etc. that jeweler thinks of. Eventually you end up paying more than 30-40% of your gold purchase price (your investment in gold!) as making charges, breaking charges, taxes etc. So where is your profit that you want to earn from the appreciated price of gold? It’s in the pockets of jeweler (making/breaking charges) and government (taxes). <br />
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Gold bars or gold coins offered by banks you think is a smart choice? Banks often charge you more than 10 to 20 % on top of market cost of 24 carat gold when they sell you gold bars and coins.<br />
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Also, when you buy gold in the form of jewellery or gold bars and coins, you are always under threat of theft of gold. <br />
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Think smarter.<br />
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Unless you have black money that you want to convert in gold without any receipts, and you want to make most out of appreciating gold price being smart and savvy investor, go for Gold ETF. <br />
<br />
<b>Gold ETF</b><br />
Buying Gold ETF is purchasing gold in electronic form. You can buy them just like you buy the stock of any company from your broker. Gold ETF makes it easier for you to invest in gold. The investment objective of Gold ETF is to provide you with returns that closely correspond with the domestic price of real gold.<br />
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They are easy to purchase since you can buy even just one gram at a time. Over time, you can build up your gold portfolio to the level you want.<br />
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<b>Gold ETF Features</b><br />
1. Cheapest form of pure physical gold with no premium or making charges <br />
2. No issues of wastage or impurities like in the case of physical gold <br />
3. Tax efficient way to hold gold, No Securities Transaction Tax or wealth Tax <br />
4. Can be easily purchased or sold anytime at transparent real time price <br />
5. Can track your investment value in real time <br />
6. No worries of theft and also save on locker charges <br />
7. Benefit on long-term capital gains<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF2H2NkfJNcH3-Q1IAeyW83KqwYy5vlaIshU1WKBKWFoVymJGS6u3OcdHd7upwgzDioyxreCKyCUs836K0ozVY72N-ud06VPLOetRmTqOE_ZDuKXsvUNktqQc4BPbLF8qPCks_2T7CWUsZ/s1600/GOLD+ETF+Comparison.JPG" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="182" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF2H2NkfJNcH3-Q1IAeyW83KqwYy5vlaIshU1WKBKWFoVymJGS6u3OcdHd7upwgzDioyxreCKyCUs836K0ozVY72N-ud06VPLOetRmTqOE_ZDuKXsvUNktqQc4BPbLF8qPCks_2T7CWUsZ/s400/GOLD+ETF+Comparison.JPG" /></a><br />
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