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.
Thursday, December 4, 2014
Wednesday, June 19, 2013
e-Dynamics Solutions IPO - Are You Planning To Invest?
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.
The biggest and foremost deterrent for me about this company; their email ID.
edynamicssolutions@yahoo.com
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.
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.
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.
Read this article about their financial shady practices.
e-Dynamics solutions IPO red herring prospectus on BSE Website.
The biggest and foremost deterrent for me about this company; their email ID.
edynamicssolutions@yahoo.com
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.
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.
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.
Read this article about their financial shady practices.
e-Dynamics solutions IPO red herring prospectus on BSE Website.
Wednesday, January 23, 2013
Mid Cap Stock Analysis - Oberoi Realty Limited
Stock analysis of Oberoi Realty Limited based upon 3QFY13 results along with recommendation.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Tuesday, January 22, 2013
Reliance 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.
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.
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
fields.
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.
One may 'hold stocks’ of Reliance Industries in portfolio if already owned.
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.
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
fields.
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.
One may 'hold stocks’ of Reliance Industries in portfolio if already owned.
Large Cap Stock Analysis - Wipro Limited
Here are stock research notes based on 3QFY13 results of large cap stock Wipro.
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.
Company's 4QFY13 services growth guidance of 0.5 – 3.00% qoq is not very exciting but it does not derail the growth prospects.
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.
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.
Analysts are not overly worried about Wipro’s poor volumes as 3Q is seasonally weak and peers also saw a drop in volume growth.
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.
USD revenue growth is expected to pick up to 12.9% in FY14 from 5.6% in FY13.
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%.
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.
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.
Company's 4QFY13 services growth guidance of 0.5 – 3.00% qoq is not very exciting but it does not derail the growth prospects.
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.
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.
Analysts are not overly worried about Wipro’s poor volumes as 3Q is seasonally weak and peers also saw a drop in volume growth.
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.
USD revenue growth is expected to pick up to 12.9% in FY14 from 5.6% in FY13.
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%.
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.
Sunday, December 9, 2012
BHARTI INFRATEL LIMITED IPO
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.
Issue Snapshot
Issue Open: 11-December-12
Issue Close: 14-December-12
Price Band: INR 210-INR 240
Issue Size: INR 39,669 mn - INR 45,336 mn
Market Cap: INR 396,615 mn - INR 453,274 mn
IPO Grading: CRISIL IPO Grade 4/5
Listing: NSE & BSE
Lot Size: 50 or multiples of 50 equity shares
Discount: A discount of Rs. 10/- to the issue priceis being offered to Retail Individual Bidders.
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.
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.
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.
Issue Snapshot
Issue Open: 11-December-12
Issue Close: 14-December-12
Price Band: INR 210-INR 240
Issue Size: INR 39,669 mn - INR 45,336 mn
Market Cap: INR 396,615 mn - INR 453,274 mn
IPO Grading: CRISIL IPO Grade 4/5
Listing: NSE & BSE
Lot Size: 50 or multiples of 50 equity shares
Discount: A discount of Rs. 10/- to the issue priceis being offered to Retail Individual Bidders.
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.
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.
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.
Tuesday, August 14, 2012
Buy Stocks of India Cements - Stock Research Notes
India Cements is rated to ‘buy stocks’ at currently traded price at Rs.85. Checkout the target stock price.
Friday, August 3, 2012
Tamilnad Mercantile Bank IPO on the way
Tamilnad Mercantile Bank (TMB) will soon be coming up with it's Initial Public Offering (IPO).
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".
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.
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.
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".
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.
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.
Wednesday, July 18, 2012
The shallowness of IT industry and India shining
IT 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.
Read below fact from an article Golden age of Indian IT is over for good
"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%.
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."
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!!
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: Should You Buy Stocks of IT Companies now?
Read below fact from an article Golden age of Indian IT is over for good
"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%.
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."
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!!
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: Should You Buy Stocks of IT Companies now?
Friday, July 13, 2012
Should You Buy Stocks of IT Companies now?
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?
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.
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.
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 read the article here.
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.
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.
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.
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.
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 read the article here.
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.
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.
Monday, June 25, 2012
United 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!
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.
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.
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?
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!
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.
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.
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?
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!
Sunday, June 24, 2012
Kabra 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?
BUSIENSS
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.
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.
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.
Kabra extrusion has paid dividend consistently for last 7 years in a row. It's current stock dividend yield stands at healthy 5.17%.
STOCK FINANCIALS
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.
STOCK VALUATIONS
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.
BUSIENSS
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.
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.
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.
Kabra extrusion has paid dividend consistently for last 7 years in a row. It's current stock dividend yield stands at healthy 5.17%.
STOCK FINANCIALS
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.
STOCK VALUATIONS
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.
Saturday, June 23, 2012
Buy Stocks of Sesa Goa for medium term
Equity 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.
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.
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.
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.
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.
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.
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.
Friday, June 22, 2012
Buy stocks of Electrosteel Castings for one year
Here is the Result Update on Electrosteel Castings for 4QFY2012 with a 'Buy Stocks' recommendation and target stock price for next 12 months.
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.
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).
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.
The stock research report recommends to Buy stocks of Electrosteel Castings (ECL) with target stock price of Rs.22 in next 12 months.
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.
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).
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.
The stock research report recommends to Buy stocks of Electrosteel Castings (ECL) with target stock price of Rs.22 in next 12 months.
Friday, June 15, 2012
Mid Cap Stock To Buy - Page industries
Here is one Mid cap stock to buy with huge growth potential still waiting ahead.
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.
GROWTH
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.
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.
STOCK FINANCIALS
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.
STOCK VALUATIONS
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.
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.
GROWTH
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.
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.
STOCK FINANCIALS
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.
STOCK VALUATIONS
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.
Monday, June 11, 2012
Large Cap Stock Research Report - SBI
Stock 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.
SBI Stock trades at 20%+ discount to it's long-term average valuations.
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.
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.
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.
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.
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).
SBI Stock trades at 20%+ discount to it's long-term average valuations.
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.
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.
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.
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.
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).
Tuesday, May 22, 2012
Rakesh Jhunjhunwala holdings increase in 4 stocks
Rakesh Jhunjhunwala has increased his stake in 4 different stocks in April and May 2012.
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.
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.
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%.
He has bought additional 10 lakh shares, or 1.6% stake, in Geometric to take his total stock holding to 10.06%.
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.
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.
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.
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%.
He has bought additional 10 lakh shares, or 1.6% stake, in Geometric to take his total stock holding to 10.06%.
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.
Monday, May 21, 2012
IPO News - Rashtriya Ispat Nigam (RINL) IPO Coming Up
Rashtriya 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.
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).
This IPO is offering a discount of upto 5% on offer price to retail investors and employees of the company.
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.
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.
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).
This IPO is offering a discount of upto 5% on offer price to retail investors and employees of the company.
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.
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.
Monday, May 14, 2012
Stock Research Report - Hyderabad Industries
Hyderabad 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
IPO News - Speciality Restaurants IPO will open on May 16
Speciality Restaurants has earned a strong position for itself in the gourmet world in last 16 years. It has established several famous brands such as Mainland China, Oh! Calcutta, Sigree, Haka, Machaan, Mostly Kababs, Just Biryani and Sweet Bengal. Now Speciality Restaurants is coming up with an Initial Public Offering (IPO) for it's lovers.
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.
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.
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.
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.
You may want to read:
Stock Research Report - Hyderabad Industries
Buy Stocks of Titan Industries
Samvardhana Motherson Finance (SMFL) IPO Withdrawn - Why?
Mid Cap Stock To Buy - Jain Irrigation
Small Cap Stock To Buy - KNR Constructions
IPO News - Tribhovandas Bhimji Zaveri launching IPO
How to buy stocks with multibagger potential
Stock Research Report - Larsen & Toubro (L&T)
Stock to buy - Tech Mahindra
Goodyear India - Stock To Buy from Evergreen Industry
Infotech Enterprises - Stock Analysis and Recommendation
Stock Analysis – BPCL 3QFY12 Results
Buy Stocks of Va Tech Wabag
Stock Analysis - Bharti Airtel
Stock Analysis – ONGC
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.
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.
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.
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.
You may want to read:
Stock Research Report - Hyderabad Industries
Buy Stocks of Titan Industries
Samvardhana Motherson Finance (SMFL) IPO Withdrawn - Why?
Mid Cap Stock To Buy - Jain Irrigation
Small Cap Stock To Buy - KNR Constructions
IPO News - Tribhovandas Bhimji Zaveri launching IPO
How to buy stocks with multibagger potential
Stock Research Report - Larsen & Toubro (L&T)
Stock to buy - Tech Mahindra
Goodyear India - Stock To Buy from Evergreen Industry
Infotech Enterprises - Stock Analysis and Recommendation
Stock Analysis – BPCL 3QFY12 Results
Buy Stocks of Va Tech Wabag
Stock Analysis - Bharti Airtel
Stock Analysis – ONGC
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