Checkout Latest Rakesh Jhunjhunwala holdings. Here is a portfolio of Rakesh Jhunjhunwala updated as per shareholding Data of September 2009 with stock trading exchanges.
Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Stock Market. He has made Rs 5000 crores by just investing Rs 5000 in Indian Stock Market over the period of 25 years.
(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.
(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.
(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.
(d) One should be able to create a balance between the fear and greed.
(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.
Showing posts with label Most Popular Articles. Show all posts
Showing posts with label Most Popular Articles. Show all posts
CALS Refineries - Small Cap Stock & Penny Stock - Analysis
Cals Refineries is one stock in my small cap stock list and making rounds nowadays in circle of people who buy penny stocks. It was first suggested to me by Mr. Sreenivas. Sreenivas is from Bank of Oman and is an avid growth stock investor for long term investment horizon. He even called me up to discuss the same passionately. :) There were few others after this who asked me about Cals Refineries so I decided to research a bit about this and here is the stock research report with my opinion.
Background
Cals Refineries Limited was incorporated on the 25th of July, 1984 as a private limited company. On 22nd September, 1992 the company was converted into a public limited company and is now listed on the Bombay Stock Exchange (BSE) under the Scrip Code 526652.
With the energy sector playing a pivotal role in global economies, the company aims to actively participate in it's growth in India as well as in international markets.
Cals Refineries Limited, in the first phase of a mega project, is establishing a 4.8 MMTPA (100,000 BPD) refinery at Haldia, India.
Comparison with existing refineries in India
* Reliance Industries (33 million tonne)
* Essar Oil (7.5 million tonne)
* Reliance Petroleum setting up 29 million tonne
* MRPL (10.5 million tonnes)
* Chennai Petroleum (9.5 million tonnes)
* Bongaigaon Refinery (2 million tonnes)
Management of CALS Refineries
Chairman of Cals Refineries, Mr. M.S. Ramachandran, was Chairman of Indian Oil Corporation (I.O.C.), India’s largest Oil & Gas company. Mr. M. S. Ramachandran has over 38 years of experience in the Oil and Gas industry. He was Chairman of Indian Oil Corporation (I.O.C.), India’s largest Oil & Gas company. He helped the government to implement various policies that would attract private players into the Oil & Gas sector.
At I.O.C., he redirected the organization around key business lines with greater commercial focus and market facing capabilities. During his tenure, Mr. Ramachandran increased sales growth from USD 25 Billion to USD 34 Billion, which increased the net profit of company from USD 0.65 Billion to USD 1.2 Billion, raising the company’s Fortune ranking from 223 to 189.
Crude Oil supply
Cals Refineries Ltd has signed a deal with oil major BP for up to 5 million tonnes of crude a year for a refinery. So the supply of crude is already guarenteed.
Upstream Integration
Spice Energy, the parent company of CALS has another subsidiary, Spice Exploration, which has operations in Africa and Indonesia from where crude could be made available.
Signed with customers for finished products
Cals Refineries has signed a deal with oil major BP to buy up to 100,000 bpd crude for its refinery. As per the deal, 60,000 bpd is confirmed, the balance of 40,000 is optional.
Additionally, Cals Refineries Ltd has signed a memorandum of understanding (MoU) with Bharat Petroleum Corporation (BPCL) for petro products off-take from CALS. The MoU has been signed in order to off-take the part of petroleum products by BPCL from CALS in its first phase which is a 100,000 BPSD crude oil refinery after accounting for the products committed to British Petroleum (BP) and the entire petro products from CALS in the second phase of expansion which is another 100,000 BPSD refinery at Haldia, West Bengal.
Some calculations and stock price estimation
CAPACITY OF REFINERY = 4.8 MMTPA (Million Metric Tonnes Per Annum)= 100000 Barrels Per Day (Approximately) = 36500000 Barrels Per Annum
Gross Refining Margin (GRM) Per Barrel is 10$ = 500Rs Approx.
Approx. Annual Profit = 36500000 * 500 RS = 1825 Crores
EPS at above nis. = 1824/794 = 2.3 **794 crores is total Equity of CALS Refineries
Average P/E ratio of Indian Refining Sector would be 15
Share Price = 15 *2.3 = 34.50 Rs.
So if everything goes as per calculation in phase 1 and company manages to produce as estimated, around Rs. 30 - 40 could be the stock price range.
They have plans of capacity expansion for second and third phase as well. I am not sure about the numbers.
CMP of the stock: 0.68 Rs.
If you are investing in stock markets and not in Bank FD's/bonds/Kisan Vikas Patra, you have the appetite to take risks in your investments. ;)
So you decide how much money you can loose comfortably by investing in penny stock and invest that amount in CALS Refineries. !@##@$%^%&^%$#@ this must have been your immediate reaction after reading this statement but this is what my true opinion is!
A negative note to make
Cals refineries promoters hold only 0.11 percent share in this company and Shares held by Custodians and against which Depository Receipts have been issued 83.98 percent (custodian name is The Bank of Newyork Mellon DR) so public share holding is 99.89 percent and there are a huge equity capital of cals refineries.
Total 7,931,300,000 shares of Cals refineries held by general public.
As I have read in Business Standard news article, promoters do hold a big chunk of equity (almost >70%) which is held by custodians for issue of depository receipts at the moment. This might be a positive note to make on promoter's holdings.
I am not recommending you to buy stocks to invest in CALS refineries but I am asking you to take a bet in this counter. If it goes well, you would gain a lot, if you loose, never mind.
Few of the penny stocks that made such magic are:
ABAN OFFSHORE - 6.00 Rs to 5393 Rs
KS OILS - 0.50 paise to 142 Rs
MERCATOR LINES - 0.40 paise to 184 Rs.
COUNTRY CLUB- 0.42 paise to 222 Rs
PANTALOONS RETAIL- 2.23 Rs to 875
JAI CORPORATION- 16 Rs to 1079 Rs
You never know.....
Latest: Cals Refineries - Small Cap Penny Stock - What to do?
Background
Cals Refineries Limited was incorporated on the 25th of July, 1984 as a private limited company. On 22nd September, 1992 the company was converted into a public limited company and is now listed on the Bombay Stock Exchange (BSE) under the Scrip Code 526652.
With the energy sector playing a pivotal role in global economies, the company aims to actively participate in it's growth in India as well as in international markets.
Cals Refineries Limited, in the first phase of a mega project, is establishing a 4.8 MMTPA (100,000 BPD) refinery at Haldia, India.
Comparison with existing refineries in India
* Reliance Industries (33 million tonne)
* Essar Oil (7.5 million tonne)
* Reliance Petroleum setting up 29 million tonne
* MRPL (10.5 million tonnes)
* Chennai Petroleum (9.5 million tonnes)
* Bongaigaon Refinery (2 million tonnes)
Management of CALS Refineries
Chairman of Cals Refineries, Mr. M.S. Ramachandran, was Chairman of Indian Oil Corporation (I.O.C.), India’s largest Oil & Gas company. Mr. M. S. Ramachandran has over 38 years of experience in the Oil and Gas industry. He was Chairman of Indian Oil Corporation (I.O.C.), India’s largest Oil & Gas company. He helped the government to implement various policies that would attract private players into the Oil & Gas sector.
At I.O.C., he redirected the organization around key business lines with greater commercial focus and market facing capabilities. During his tenure, Mr. Ramachandran increased sales growth from USD 25 Billion to USD 34 Billion, which increased the net profit of company from USD 0.65 Billion to USD 1.2 Billion, raising the company’s Fortune ranking from 223 to 189.
Crude Oil supply
Cals Refineries Ltd has signed a deal with oil major BP for up to 5 million tonnes of crude a year for a refinery. So the supply of crude is already guarenteed.
Upstream Integration
Spice Energy, the parent company of CALS has another subsidiary, Spice Exploration, which has operations in Africa and Indonesia from where crude could be made available.
Signed with customers for finished products
Cals Refineries has signed a deal with oil major BP to buy up to 100,000 bpd crude for its refinery. As per the deal, 60,000 bpd is confirmed, the balance of 40,000 is optional.
Additionally, Cals Refineries Ltd has signed a memorandum of understanding (MoU) with Bharat Petroleum Corporation (BPCL) for petro products off-take from CALS. The MoU has been signed in order to off-take the part of petroleum products by BPCL from CALS in its first phase which is a 100,000 BPSD crude oil refinery after accounting for the products committed to British Petroleum (BP) and the entire petro products from CALS in the second phase of expansion which is another 100,000 BPSD refinery at Haldia, West Bengal.
Some calculations and stock price estimation
CAPACITY OF REFINERY = 4.8 MMTPA (Million Metric Tonnes Per Annum)= 100000 Barrels Per Day (Approximately) = 36500000 Barrels Per Annum
Gross Refining Margin (GRM) Per Barrel is 10$ = 500Rs Approx.
Approx. Annual Profit = 36500000 * 500 RS = 1825 Crores
EPS at above nis. = 1824/794 = 2.3 **794 crores is total Equity of CALS Refineries
Average P/E ratio of Indian Refining Sector would be 15
Share Price = 15 *2.3 = 34.50 Rs.
So if everything goes as per calculation in phase 1 and company manages to produce as estimated, around Rs. 30 - 40 could be the stock price range.
They have plans of capacity expansion for second and third phase as well. I am not sure about the numbers.
CMP of the stock: 0.68 Rs.
If you are investing in stock markets and not in Bank FD's/bonds/Kisan Vikas Patra, you have the appetite to take risks in your investments. ;)
So you decide how much money you can loose comfortably by investing in penny stock and invest that amount in CALS Refineries. !@##@$%^%&^%$#@ this must have been your immediate reaction after reading this statement but this is what my true opinion is!
A negative note to make
Cals refineries promoters hold only 0.11 percent share in this company and Shares held by Custodians and against which Depository Receipts have been issued 83.98 percent (custodian name is The Bank of Newyork Mellon DR) so public share holding is 99.89 percent and there are a huge equity capital of cals refineries.
Total 7,931,300,000 shares of Cals refineries held by general public.
As I have read in Business Standard news article, promoters do hold a big chunk of equity (almost >70%) which is held by custodians for issue of depository receipts at the moment. This might be a positive note to make on promoter's holdings.
I am not recommending you to buy stocks to invest in CALS refineries but I am asking you to take a bet in this counter. If it goes well, you would gain a lot, if you loose, never mind.
Few of the penny stocks that made such magic are:
ABAN OFFSHORE - 6.00 Rs to 5393 Rs
KS OILS - 0.50 paise to 142 Rs
MERCATOR LINES - 0.40 paise to 184 Rs.
COUNTRY CLUB- 0.42 paise to 222 Rs
PANTALOONS RETAIL- 2.23 Rs to 875
JAI CORPORATION- 16 Rs to 1079 Rs
You never know.....
Latest: Cals Refineries - Small Cap Penny Stock - What to do?
Best Stocks To Buy In 2009 - Stock Buying For Long Term Investment
This is the second most visited and read article on Indian Stocks News in year 2009 till now. I feel it is important to visit back to this list of best stocks to buy as I strongly believe we are soon going to see a moderate to big size correction in stock markets. We should be ready with cash to buy stocks which have intrinsic value and growth prospects.
Read: Best Stocks To Buy In 2010
Business Today magazine had recently published a list of top stocks to buy or watch out for in 2009. One may treat these as buy stocks advice, strictly for long term investment. Mentioned here are best stocks that are strong to survive the slowdown in 2009. Buying stocks which could emerge as best performing stocks to buy out of this gloom would help you in strengthening your portfolio in long term duration. They are very cheap stocks in terms of value stock investing for long term valuations. The list is in alphebetical order.
Business Today had spoken to 11 of the brightest minds on Dalal Street and got them to identify their favourite long-term value picks.
Aventis Pharma
Focus on lifestyle segment keeps it in good health
For some time now, smart money has been moving into shares of multinational pharmaceuticals companies. After India entered the product patent regime in 2005, the fortunes of MNC pharma companies have changed for the better.
They can now introduce new blockbuster drugs of their foreign parents and enjoy the profits. Aventis Pharma is one such well-placed MNC.
It is focussing on fast-growing lifestyle segments like cardiovascular and diabetes in the domestic market. Aventis has a few strong products in this segment like Amaryl (anti-diabetes) with a 4 per cent market share and Cardace (cardiovascular segment) with a 28 per cent market share. Besides, its parent Sanofi-Aventis, France, has a huge pipeline of molecules under development in the lifestyle category.
But what has impressed analysts is the aggressive introduction of its parents’ products in the Indian market. Says Rajiv Thakkar, CEO, Parag Parikh Financial Advisory Services (PPFAS): “Aventis’ overseas product introductions in India will expand its domestic business over time.”
Another factor, Thakkar says, that will benefit the stock is its debt-free status and a hefty cash balance. Thakkar, however, has not put a target price on the stock and cautions that the uncertain market may play spoilsport in the short-term. But in the long term, he says, “the stock has the makings of a multi-bagger.”
—Clifford Alvares
Axis Bank
Strong business model to offset succession worries
The stock market often reacts sharply to news from the banking sector. Axis Bank’s stock dipped sharply—slipping nearly 18 per cent to Rs 394.50 on January 27, 2009, down from Rs 485 on January 9, 2009. The market, already edgy over slowdown fears, was more worried over the retirement of Axis Bank’s long-time chairman P.J. Nayak, and the issue of a successor. Axis Bank’s advances continue to grow at a decent clip of over 50 per cent at a time when credit expansion has slumped.
The bank is facing a squeeze on margins as lending rates are falling while borrowing costs have yet to come down. Another hitch is possible stake sale of 21.5 per cent in Axis Bank held by administrator of the special undertaking of UTI. Says Vaibhav Agarwal, analyst, Angel Broking: “Axis Bank has been focussing on retail liabilities business before increasing its loan assets. Its fee income too is doing well.”
—Clifford Alvares
Bharat Electronics
Armed for growth
Just when large manufacturers are curtailing their activities to save on costs, Bharat Electronics is opening a support centre at Kochi, Kerala, to serve its growing clientele. A Navratna public sector undertaking which gets 80-85 per cent of sales from the armed forces, BEL’s turnover and profit after tax have been rising consistently for four decades now. It is talking to global players like Lockheed Martin, Boeing and EADS to make the most of the government’s “offset” clause, which requires any foreign company bagging an order worth over Rs 300 crore from India’s defence sector to share 30 per cent of it with Indian firms.
It also gains from its links with the Defence Research & Development Organisation. Says V.V.R. Sastry, BEL’s Chairman & Managing Director: “We are interacting with DRDO for developing new products.” Over the last one year, the BEL scrip has slid some 59 per cent, but broking houses still bet big on it. Says Dolat Capital’s Sameer Panke: “In the last five years, while the defence budget has grown at 12 per cent, defence capital expenditure grew at 23 per cent. BEL is a big beneficiary of this increase. The company has strong cash flows and no debts at all.’’
—K.R. Balasubramanyam
Bharti Airtel
More subscribers, more towers, and now more spectrum
Bharti Airtel typifies the success story of Indian mobile telephony. Its outstanding execution skills have made it the market leader. Over FY2006-08, Bharti cornered 26.5 per cent of the all-India incremental mobile subscriber additions. In the third quarter (fiscal 2009), it reported an increase of 41.5 per cent in gross revenues on a year-on-year basis, and 9 per cent on a sequential basis. During the same period, its mobile subscriber base grew by 55.3 per cent y-o-y and 10.5 per cent q-o-q to 85.7 million. Says Sunil Mittal, CMD, Bharti Airtel: “Bharti’s strategy of extensive roll-out ahead of competition, especially in new villages, has yielded rich dividends.”
The company is also well placed with its telecom infrastructure business, given the need for rapid network expansion by current and new operators. Bharti, with the largest tower portfolio in India through Infratel, is likely to be a key beneficiary. Then there are other reasons why the stock is a good bet. The spectrum allocation imbroglio seems to have been resolved. Says Hitesh Agrawal, Head of Research, Angel Broking: “The spectrum issue was critical for the sustained growth of the telecom sector. Now the medium-term growth requirement of Bharti has been taken care of.”
Checkout: Bharti Airtel - Investing In Stock From Telecom Sector
—Rishi Joshi
BHEL
Everybody wants light in dark times—and BHEL has the spark.
Bharat heavy electricals, the largest manufacturer of power plant equipment, is one company that is unlikely to be hit by the economic gloom. It knows the government will spend freely to improve the power sector. And the government does not cancel orders. So, BHEL, which has 64 per cent of the power plant market, has been ramping up capacity.
By December 2007, it had increased capacity from 6,000 MW a year to 10,000 MW, and is now taking it to 20,000 MW by 2011-12. Says Pulkit Bakliwal, analyst at Sharekhan: “The 11th Five-Year Plan has envisaged capacity addition of 78,000 MW.
BHEL has been the major beneficiary of the spending.” Government projects account for around 85 per cent of BHEL’s order book of Rs 1,04,000 crore, giving it high revenue stability. “Even in the present scenario, orders placed by government institutions are unlikely to get cancelled,” says Bakliwal, pointing out that the cash-strapped private players may have to do so. “This gives BHEL a huge comfort level,” Bakliwal adds.
But there are bumps on the road ahead. BHEL could face project delays and a lag before new orders start coming in. The stock, at slightly above Rs 1,320, is trading at a premium. Says Bakliwal: “A strong balance sheet and huge cash pile of about Rs 8,400 crore would help BHEL sail smoothly through the challenging business environment. We recommend a buy with a price target of Rs 1,546 over the next 12 months.”
—Manu Kaushik
CRISIL
Ratings become vital during downturns
The global credit crisis has hit the capital-raising plans of Indian companies.The only window open these days is through domestic debt issues or bank borrowings.
Here’s where a debt rating from CRISIL, India’s largest rating agency, helps. Another growth avenue has been created by the Basel-II norms to rate corporate loans given by banks.
Says Jigar Valia of Parag Parikh Financial Advisory Services (PPFAS): “It’s a small component now, but it’s going to be a phenomenally fast-growing business. It’s a perpetual and stable income.” CRISIL’s work for its parent Standard & Poor’s is a cash cow.
Adds Valia: “Even in years of de-growth, this company was trading at a PE multiple of 20 times; but thanks to the financial crisis, the stock is cheap.”
—Clifford Alvares
Engineers India
No fear of input cost hikes
One of Asia’s leading design and engineering companies, Engineers India builds petroleum refineries, industrial projects, offshore structures, metallurgy and power projects. India’s substantial investments in infrastructure have given it an order book of Rs 8,000 crore, to be executed over 3-4 years. It has begun protecting its margins by signing open-book orders—input cost hikes are passed through.
Says Ajay Parmar of Emkay Global Financial Services: “The stock looks quite attractive… there are no worries about the management since the government holds a 91 per cent stake… it has zero debt and high dividend payout. It’s a very safe bet in the current market scenario.”
—Rishi Joshi
GMDC
Sitting on a mine of wealth
The share price of Gujarat Mineral Development Corporation was one of the worst affected when Gujarat government asked state-run companies to fork out 30 per cent of their profit before tax for social work. Despite this, the stock is still seen as a good value pick—the bad news has been discounted. Profitability is expected to get a boost from the recent lignite price hike. “Full impact will be seen in the next financial year,” says Sameer Ranade, analyst at PINC Research.
The government may reverse the 30 per cent rule, since minority shareholders at some other companies have mutinied. GMDC’s moves into the power sector will add to valuation.
—Virendra Verma
HCl Technologies
Seeking a global footprint
As India’s fifth-largest IT services exporter, straddling a diverse portfolio of services that ranges from R&D to enterprise, BPO and infrastructure management, HCL Technologies has a de-risked model as it is essentially in high-growth, high-end, low competition areas. It is looking at inorganic growth.
The acquisition of UK-based Axon last year is expected to help it become a major player in SAP implementation, an area from which it expects to get a quarter of its revenues, against 11 per cent now. Says Vineet Nayar, CEO, HCL Technologies, “We have successfully integrated Axon to dominate the SAP space globally.”
Anagram’s V.K. Sharma says: “We feel the worsening global macroeconomic situation and slowdown in IT spending is factored in at this price. The stock trades at almost 8 per cent dividend yield, limiting its downside from these levels.”
—Rishi Joshi
HDFC
Pioneer grows biz in slowdown
At a time when the home loans business is in the dumps, a lower third-quarter profit at India’s largest housingfinance company did not ring any alarm bells. Housing Development Finance Corporation actually boosted net interest income by 18 per cent to Rs 785 crore but was hit by higher running expenses. Analysts did not waver from their “buy” rating.
HDFC’s asset quality has improved further, it has valuable subsidiaries in insurance and asset management and it has been consolidating its business. HDFC’s asset quality has improved in December 2008. Says Gaurav Dua of Sharekhan: “Throughout its history, HDFC has shown a healthy growth.”
Checkout: HDFC - Stock To Buy In Banking Sector - Results Analysis
—Clifford Alvares
Read: Best Stocks To Buy In 2010
Business Today magazine had recently published a list of top stocks to buy or watch out for in 2009. One may treat these as buy stocks advice, strictly for long term investment. Mentioned here are best stocks that are strong to survive the slowdown in 2009. Buying stocks which could emerge as best performing stocks to buy out of this gloom would help you in strengthening your portfolio in long term duration. They are very cheap stocks in terms of value stock investing for long term valuations. The list is in alphebetical order.
Business Today had spoken to 11 of the brightest minds on Dalal Street and got them to identify their favourite long-term value picks.
Aventis Pharma
Focus on lifestyle segment keeps it in good health
For some time now, smart money has been moving into shares of multinational pharmaceuticals companies. After India entered the product patent regime in 2005, the fortunes of MNC pharma companies have changed for the better.
They can now introduce new blockbuster drugs of their foreign parents and enjoy the profits. Aventis Pharma is one such well-placed MNC.
It is focussing on fast-growing lifestyle segments like cardiovascular and diabetes in the domestic market. Aventis has a few strong products in this segment like Amaryl (anti-diabetes) with a 4 per cent market share and Cardace (cardiovascular segment) with a 28 per cent market share. Besides, its parent Sanofi-Aventis, France, has a huge pipeline of molecules under development in the lifestyle category.
But what has impressed analysts is the aggressive introduction of its parents’ products in the Indian market. Says Rajiv Thakkar, CEO, Parag Parikh Financial Advisory Services (PPFAS): “Aventis’ overseas product introductions in India will expand its domestic business over time.”Another factor, Thakkar says, that will benefit the stock is its debt-free status and a hefty cash balance. Thakkar, however, has not put a target price on the stock and cautions that the uncertain market may play spoilsport in the short-term. But in the long term, he says, “the stock has the makings of a multi-bagger.”
—Clifford Alvares
Axis Bank
Strong business model to offset succession worries
The stock market often reacts sharply to news from the banking sector. Axis Bank’s stock dipped sharply—slipping nearly 18 per cent to Rs 394.50 on January 27, 2009, down from Rs 485 on January 9, 2009. The market, already edgy over slowdown fears, was more worried over the retirement of Axis Bank’s long-time chairman P.J. Nayak, and the issue of a successor. Axis Bank’s advances continue to grow at a decent clip of over 50 per cent at a time when credit expansion has slumped.
The bank is facing a squeeze on margins as lending rates are falling while borrowing costs have yet to come down. Another hitch is possible stake sale of 21.5 per cent in Axis Bank held by administrator of the special undertaking of UTI. Says Vaibhav Agarwal, analyst, Angel Broking: “Axis Bank has been focussing on retail liabilities business before increasing its loan assets. Its fee income too is doing well.”—Clifford Alvares
Bharat Electronics
Armed for growth
Just when large manufacturers are curtailing their activities to save on costs, Bharat Electronics is opening a support centre at Kochi, Kerala, to serve its growing clientele. A Navratna public sector undertaking which gets 80-85 per cent of sales from the armed forces, BEL’s turnover and profit after tax have been rising consistently for four decades now. It is talking to global players like Lockheed Martin, Boeing and EADS to make the most of the government’s “offset” clause, which requires any foreign company bagging an order worth over Rs 300 crore from India’s defence sector to share 30 per cent of it with Indian firms.
It also gains from its links with the Defence Research & Development Organisation. Says V.V.R. Sastry, BEL’s Chairman & Managing Director: “We are interacting with DRDO for developing new products.” Over the last one year, the BEL scrip has slid some 59 per cent, but broking houses still bet big on it. Says Dolat Capital’s Sameer Panke: “In the last five years, while the defence budget has grown at 12 per cent, defence capital expenditure grew at 23 per cent. BEL is a big beneficiary of this increase. The company has strong cash flows and no debts at all.’’—K.R. Balasubramanyam
Bharti Airtel
More subscribers, more towers, and now more spectrum
Bharti Airtel typifies the success story of Indian mobile telephony. Its outstanding execution skills have made it the market leader. Over FY2006-08, Bharti cornered 26.5 per cent of the all-India incremental mobile subscriber additions. In the third quarter (fiscal 2009), it reported an increase of 41.5 per cent in gross revenues on a year-on-year basis, and 9 per cent on a sequential basis. During the same period, its mobile subscriber base grew by 55.3 per cent y-o-y and 10.5 per cent q-o-q to 85.7 million. Says Sunil Mittal, CMD, Bharti Airtel: “Bharti’s strategy of extensive roll-out ahead of competition, especially in new villages, has yielded rich dividends.”
The company is also well placed with its telecom infrastructure business, given the need for rapid network expansion by current and new operators. Bharti, with the largest tower portfolio in India through Infratel, is likely to be a key beneficiary. Then there are other reasons why the stock is a good bet. The spectrum allocation imbroglio seems to have been resolved. Says Hitesh Agrawal, Head of Research, Angel Broking: “The spectrum issue was critical for the sustained growth of the telecom sector. Now the medium-term growth requirement of Bharti has been taken care of.”Checkout: Bharti Airtel - Investing In Stock From Telecom Sector
—Rishi Joshi
BHEL
Everybody wants light in dark times—and BHEL has the spark.
Bharat heavy electricals, the largest manufacturer of power plant equipment, is one company that is unlikely to be hit by the economic gloom. It knows the government will spend freely to improve the power sector. And the government does not cancel orders. So, BHEL, which has 64 per cent of the power plant market, has been ramping up capacity.
By December 2007, it had increased capacity from 6,000 MW a year to 10,000 MW, and is now taking it to 20,000 MW by 2011-12. Says Pulkit Bakliwal, analyst at Sharekhan: “The 11th Five-Year Plan has envisaged capacity addition of 78,000 MW.BHEL has been the major beneficiary of the spending.” Government projects account for around 85 per cent of BHEL’s order book of Rs 1,04,000 crore, giving it high revenue stability. “Even in the present scenario, orders placed by government institutions are unlikely to get cancelled,” says Bakliwal, pointing out that the cash-strapped private players may have to do so. “This gives BHEL a huge comfort level,” Bakliwal adds.
But there are bumps on the road ahead. BHEL could face project delays and a lag before new orders start coming in. The stock, at slightly above Rs 1,320, is trading at a premium. Says Bakliwal: “A strong balance sheet and huge cash pile of about Rs 8,400 crore would help BHEL sail smoothly through the challenging business environment. We recommend a buy with a price target of Rs 1,546 over the next 12 months.”
—Manu Kaushik
CRISIL
Ratings become vital during downturns
The global credit crisis has hit the capital-raising plans of Indian companies.The only window open these days is through domestic debt issues or bank borrowings.
Here’s where a debt rating from CRISIL, India’s largest rating agency, helps. Another growth avenue has been created by the Basel-II norms to rate corporate loans given by banks.
Says Jigar Valia of Parag Parikh Financial Advisory Services (PPFAS): “It’s a small component now, but it’s going to be a phenomenally fast-growing business. It’s a perpetual and stable income.” CRISIL’s work for its parent Standard & Poor’s is a cash cow.
Adds Valia: “Even in years of de-growth, this company was trading at a PE multiple of 20 times; but thanks to the financial crisis, the stock is cheap.”
—Clifford AlvaresEngineers India
No fear of input cost hikes
One of Asia’s leading design and engineering companies, Engineers India builds petroleum refineries, industrial projects, offshore structures, metallurgy and power projects. India’s substantial investments in infrastructure have given it an order book of Rs 8,000 crore, to be executed over 3-4 years. It has begun protecting its margins by signing open-book orders—input cost hikes are passed through.
Says Ajay Parmar of Emkay Global Financial Services: “The stock looks quite attractive… there are no worries about the management since the government holds a 91 per cent stake… it has zero debt and high dividend payout. It’s a very safe bet in the current market scenario.”—Rishi Joshi
GMDC
Sitting on a mine of wealth
The share price of Gujarat Mineral Development Corporation was one of the worst affected when Gujarat government asked state-run companies to fork out 30 per cent of their profit before tax for social work. Despite this, the stock is still seen as a good value pick—the bad news has been discounted. Profitability is expected to get a boost from the recent lignite price hike. “Full impact will be seen in the next financial year,” says Sameer Ranade, analyst at PINC Research.
The government may reverse the 30 per cent rule, since minority shareholders at some other companies have mutinied. GMDC’s moves into the power sector will add to valuation.—Virendra Verma
HCl Technologies
Seeking a global footprint
As India’s fifth-largest IT services exporter, straddling a diverse portfolio of services that ranges from R&D to enterprise, BPO and infrastructure management, HCL Technologies has a de-risked model as it is essentially in high-growth, high-end, low competition areas. It is looking at inorganic growth.
The acquisition of UK-based Axon last year is expected to help it become a major player in SAP implementation, an area from which it expects to get a quarter of its revenues, against 11 per cent now. Says Vineet Nayar, CEO, HCL Technologies, “We have successfully integrated Axon to dominate the SAP space globally.”
Anagram’s V.K. Sharma says: “We feel the worsening global macroeconomic situation and slowdown in IT spending is factored in at this price. The stock trades at almost 8 per cent dividend yield, limiting its downside from these levels.”—Rishi Joshi
HDFC
Pioneer grows biz in slowdown
At a time when the home loans business is in the dumps, a lower third-quarter profit at India’s largest housingfinance company did not ring any alarm bells. Housing Development Finance Corporation actually boosted net interest income by 18 per cent to Rs 785 crore but was hit by higher running expenses. Analysts did not waver from their “buy” rating.
HDFC’s asset quality has improved further, it has valuable subsidiaries in insurance and asset management and it has been consolidating its business. HDFC’s asset quality has improved in December 2008. Says Gaurav Dua of Sharekhan: “Throughout its history, HDFC has shown a healthy growth.”Checkout: HDFC - Stock To Buy In Banking Sector - Results Analysis
—Clifford Alvares
Best Stocks To Buy in 2009 - FMCG Stocks
I am republishing an old article posted earlier in December 2008. This has been one of the most visited and read article on Indian Stocks News. This article has been read more than 13000 times since Dec. 08. I thought it's good time to re-visit the past and learn something from it. I would like to invite you to conclude the learning. Put it as comments below the article.
Read: Best Stocks To Buy In 2010
FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.
FMCG stocks seem to be the dark horse on the bourses. These stocks are now catching the eye of investors. Analysts and market experts are now putting a ‘buy’ recommendations on select FMCG stocks, a move which is not just being considered as a safe ploy but also as a defensive strategy to counter a volatile and uncertain market.
The trend is visible on the bourses where leading FMCG counters have outperformed the overall market during the last few sessions. Take the case of MNC giant Hindustan Unilever (HUL). The company’s stock has made its 52-week high at Rs 267 on December 19, at a time when BSE’s benchmark index, Sensex, was trading under the 10,000-mark (down by over 50 % from its life-time high of 21,000 made in January, 2008).
Similarly, the scrip of another FMCG giant, Godrej Consumer, is currently hovering near its 52-week high of Rs 145. On Wednesday, the stock price closed at Rs 138. Other companies like P&G , Dabur(I) and Colgate Palmolive have also recorded better performance on the bourses. Market analysts who earlier stayed away from FMCG stocks are now taking a fresh look at these rising scrips. Though some reservations about the FMCG sector still persists, the analysts have accepted the “safe” nature of these stocks.
Read: Dabur India - Good Stock From FMCG Sector
“Fall in commodity prices (from crude, vegetable fat and food articles) is the main reason behind the outperforming FMCG sector. Earlier trends indicate that fall in commodity prices will lead to an improvement in profitability of the FMCG companies in the next fiscal. Such a phenomenon will not remain limited to just soaps and detergent companies; even paints, confectionery, food processing and others will get benefit of the fall in commodity prices,” said Ajay Parmar, head, equity, Emkay Global Financial Services. “Those who want to play defensive can invest in such stocks,” he added.
Anand Shah, a research analyst at Angel Broking, is also optimistic about the FMCG sector. Though the markets (at current level) have already discounted the positive impact of the fall in the raw material costs, Shah believes that those who wish to play safe should invest when the prices of the FMCG scrips fall.
“FMCG companies will be able gain cost advantage on raw materials, freight, transport and packaging. The balance sheet of the FMCG companies will definitely gain strength in the coming quarters,” Shah said while cautioning the investors to adopt a stock-specific approach instead of a sector-specific one.
However, not all are convinced. “Now-a-days , smaller players are eating into the business of big MNC players in the FMCG sector. Biggies are therefore losing their market share,” says VVLN Sastry, country head at Firstcall India Equity Advisors. “There is some momentary activity in FMCG stocks, which is a part of the defensive strategy adopted by the traders to restrict the downslide. But this trend will not prevail for a long time,” he added.
Source: Economic Times
Also Read:
Defensive Safer Stocks In Bear Market
Best stocks for Investing in Indian telecom sector...
Promoters investing money in own companies
10 Biggest Wealth Creators (Best stocks for safe I...
Indian Stock Markets : Where to invest in 2009?
Stock Markets in 2009 would be volatile - Marc Fab...
Nifty Target would be 2000 - Weakness developing i...
Top 10 Banking Stocks for best investment
Read: Best Stocks To Buy In 2010
FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.
FMCG stocks seem to be the dark horse on the bourses. These stocks are now catching the eye of investors. Analysts and market experts are now putting a ‘buy’ recommendations on select FMCG stocks, a move which is not just being considered as a safe ploy but also as a defensive strategy to counter a volatile and uncertain market.
The trend is visible on the bourses where leading FMCG counters have outperformed the overall market during the last few sessions. Take the case of MNC giant Hindustan Unilever (HUL). The company’s stock has made its 52-week high at Rs 267 on December 19, at a time when BSE’s benchmark index, Sensex, was trading under the 10,000-mark (down by over 50 % from its life-time high of 21,000 made in January, 2008).
Similarly, the scrip of another FMCG giant, Godrej Consumer, is currently hovering near its 52-week high of Rs 145. On Wednesday, the stock price closed at Rs 138. Other companies like P&G , Dabur(I) and Colgate Palmolive have also recorded better performance on the bourses. Market analysts who earlier stayed away from FMCG stocks are now taking a fresh look at these rising scrips. Though some reservations about the FMCG sector still persists, the analysts have accepted the “safe” nature of these stocks.
Read: Dabur India - Good Stock From FMCG Sector
“Fall in commodity prices (from crude, vegetable fat and food articles) is the main reason behind the outperforming FMCG sector. Earlier trends indicate that fall in commodity prices will lead to an improvement in profitability of the FMCG companies in the next fiscal. Such a phenomenon will not remain limited to just soaps and detergent companies; even paints, confectionery, food processing and others will get benefit of the fall in commodity prices,” said Ajay Parmar, head, equity, Emkay Global Financial Services. “Those who want to play defensive can invest in such stocks,” he added.
Anand Shah, a research analyst at Angel Broking, is also optimistic about the FMCG sector. Though the markets (at current level) have already discounted the positive impact of the fall in the raw material costs, Shah believes that those who wish to play safe should invest when the prices of the FMCG scrips fall.
“FMCG companies will be able gain cost advantage on raw materials, freight, transport and packaging. The balance sheet of the FMCG companies will definitely gain strength in the coming quarters,” Shah said while cautioning the investors to adopt a stock-specific approach instead of a sector-specific one.
However, not all are convinced. “Now-a-days , smaller players are eating into the business of big MNC players in the FMCG sector. Biggies are therefore losing their market share,” says VVLN Sastry, country head at Firstcall India Equity Advisors. “There is some momentary activity in FMCG stocks, which is a part of the defensive strategy adopted by the traders to restrict the downslide. But this trend will not prevail for a long time,” he added.
Source: Economic Times
Also Read:
Defensive Safer Stocks In Bear Market
Best stocks for Investing in Indian telecom sector...
Promoters investing money in own companies
10 Biggest Wealth Creators (Best stocks for safe I...
Indian Stock Markets : Where to invest in 2009?
Stock Markets in 2009 would be volatile - Marc Fab...
Nifty Target would be 2000 - Weakness developing i...
Top 10 Banking Stocks for best investment
20 Stocks You Must Buy - Forbes India Stock Picks
Forbes India magazine had recently published a list of 20 stocks to buy. These stocks could prove winner in stock market.
The Indian stock market took a severe beating last year. Valuation benchmarks were so distorted that even penny stocks began to look respectable in comparison to mid cap stocks and small cap stocks. So how do you get the juicy stocks and avoid the dregs?
Remember that the financial crisis, like Swine flu, came from foreign shores. So avoid stocks with global linkages, mostly. Go for companies that feed off domestic demand.
Thus, the prospects for automobile companies may look better if they continue to get access to cheap raw material. But that may not be the case for metal and oil suppliers, who still suffer the overhang of poor prices globally. We think four themes act as superb filters to get to the cream. Within these four themes, we have picked companies that have high return on capital employed, profit and revenue growth along with a strong connection to the domestic market. This is by no means an exhaustive list. In our judgment, the companies we’ve selected exemplify the kind of plays investors will benefit from. There may well be several other stocks among the 4,000-odd listed companies that could qualify to be selected under each of these categories.
This list is designed to offer a variety of opportunities for both the long-term value investor as well as those with a slightly higher risk appetite.
Checkout the list classified under various heads of top stock picks from Forbes India.
Consumer Durables (FMCG Sector) Stock Picks
Infrastructure Sector Stock Picks
Banking, Insurance, Retail and Airlines Stock Picks
Volatile & Trading Stocks For Short Term Gains
You may want to checkout: Stock Market in 2009 - Stocks to Buy
Source: Forbes Business Magazine
The Indian stock market took a severe beating last year. Valuation benchmarks were so distorted that even penny stocks began to look respectable in comparison to mid cap stocks and small cap stocks. So how do you get the juicy stocks and avoid the dregs?
Remember that the financial crisis, like Swine flu, came from foreign shores. So avoid stocks with global linkages, mostly. Go for companies that feed off domestic demand.
Thus, the prospects for automobile companies may look better if they continue to get access to cheap raw material. But that may not be the case for metal and oil suppliers, who still suffer the overhang of poor prices globally. We think four themes act as superb filters to get to the cream. Within these four themes, we have picked companies that have high return on capital employed, profit and revenue growth along with a strong connection to the domestic market. This is by no means an exhaustive list. In our judgment, the companies we’ve selected exemplify the kind of plays investors will benefit from. There may well be several other stocks among the 4,000-odd listed companies that could qualify to be selected under each of these categories.
This list is designed to offer a variety of opportunities for both the long-term value investor as well as those with a slightly higher risk appetite.
Checkout the list classified under various heads of top stock picks from Forbes India.
Consumer Durables (FMCG Sector) Stock Picks
Infrastructure Sector Stock Picks
Banking, Insurance, Retail and Airlines Stock Picks
Volatile & Trading Stocks For Short Term Gains
You may want to checkout: Stock Market in 2009 - Stocks to Buy
Source: Forbes Business Magazine
Monthly Income Scheme (MIS) From Post Office India - Safe Investment Plan
The Post Office’s Monthly Income Scheme (MIS) is a blessing for investors in times of falling deposit rates. A higher interest rate of 8% and an effective yield of 10.5% make it an attractive proposition. Let's checkout how..TOUGH times stare at investors looking for fixed income instruments. The deposit rates offered by banks have fallen to five-year lows. Bank FDs were the favourites till some months back as public and private sector banks offered upto 9% interest on deposits with maturity of 3 years and above. This has now declined to around 7%. The future looks bleaker, with the deposit rates expected to decline further by 50-100 basis points. What should the fixed income lovers do in such a scenario? Is there an alternative to bank FDs?
The Post Office Monthly Income Scheme, commonly known as MIS, is the answer. MIS was quite popular some years back. Its appeal, however, declined in the face of a rise in interest rates on FDs and aggressive marketing strategies unleashed by banks to woo new depositors. MIS could come into limelight once again in the backdrop of declining interest rates. Moreover, the post office deposits come with unique features such as a government guarantee on the deposit amount and fixed rate of interest.
Like any fixed deposit, a lump sum amount deposited with the post office under the aegis of MIS will earn an interest at a fixed rate of 8% per annum. And, unlike bank FDs, the interest is paid out every month. The tenure is fixed at 6 years. Apart from monthly interest-payout, MIS offers 5% bonus on maturity. The effective annual yield therefore works out to 8.9%, which is much higher than the bank deposit. The value add-on is that the monthly MIS proceeds could be invested directly in Post Office’s Recurring deposit (RD), which gives annual returns of almost 10.5% per annum.
HOW DOES IT WORK?Suppose Mr A invests Rs 90,000 in Bank FD for six years. With the rate of deposit hovering around 7%, Mr A will receive almost Rs 46,500 as interest at maturity and an option of compounded interest. On the other hand, if Mr B put Rs 90,000 into MIS today, he will receive Rs 600 every month for 72 months. He is entitled to Rs 43,200 in the form of monthly interest till maturity and Rs 4500 as bonus at the time of maturity. Mr B’s returns total Rs 47,700 in six years, which is higher than interest earned on the bank FD of the same tenure.
Suppose that Mr B did not require the monthly interest. So he opts for automatic transfer of MIS interest to Recurring Deposit. A sum of Rs 600 is deposited in his RD account every month, offering 7.5% per annum compounded quarterly. At the end of the sixth year, Mr B will receive almost Rs 51,400 from his RD account. The receivables from RD and the bonus on MIS total Rs 56,000 in six years. As a result, Mr B, who invested in MIS and monthly proceeds in RD, will accumulate Rs 9500 more than Mr A, who opted to invest in Bank FD of the same tenure.
The same features of MIS make it unattractive. The interest income is fully taxable as in the case of bank FDs. MIS do have an edge over bank FDs as there is no tax deduction at source (TDS). However, the bank FDs maturing above 5 years are subject to tax benefits under Sec 80C.
It will be definitely a better bet if one neglects the tax implications of the scheme. The rate of return is not interest rate sensitive. Though the general interest rates may fall further, the scheme will continue to fetch 8% fixed rate of interest. Further, a combination with RD will even earn an effective yield of 10.5%, which is attractive in times of uncertainty and falling interest rates.Source: EconomicTimes
Best Mutual Funds In India - Outlook Money-Morningstar Mutual Fund Rankings
If you look at the performance of mutual funds (MFs) over the last one year or so, you will be inclined to skip this article as most of them have seen their values erode by around half. But, if you take a longer-term view, it may not look as bad because in the preceding period, they had given returns that were, possibly, more than satisfactory.
Here is the article presenting the Outlook Money-Morningstar ranking of Mutual Funds, categorywise, based on performance over the last three years. With this information in hand, you will be able to figure out whether you should make fresh investments, continue with the funds that you are holding or cut your losses and exit.
Checkout: Best Mutual Fund Ranking Results
Equity
When equities started to tumble at the beginning of 2008, the small- and mid-caps suffered the most, predictably. The category lost 58 per cent compared to 53 per cent by large-caps.
Equity—Large-Cap.
The large-cap equity category is an interesting mix. Apart from the regulars, we have an infrastructure fund, a dividend yield fund and a tiny little fund that has quietly perched itself on top of the heap.
The topper, DSP BlackRock Top 100 (DBT100), is a fund we’ve been hooked to for quite some time now and, so far, without disappointment. We twice recommended this fund in the past year (in August 2008 and March 2009). Fund manager Apoorva Shah’s stock-picking skills and the fund’s ability to do well in both upturns and downturns differentiates it from the rest. So, if it returned 64 per cent against 57 per cent by the category in a raging bull market in 2007, it fell by just 45.5 per cent against 53 per cent by the category, in 2008. "Whenever we reach our price targets, we don’t hesitate to book profits," says Shah.
The tiny Sahara Growth Fund (Rs 3.28 crore assets) packed in quite a punch. Sticking mostly to Nifty stocks and holding high cash levels throughout the latter part of 2008, the fund protected the downside well and made timely exits from overheated sectors such as real estate, software and metals by the end of 2007. Under fund manager A.N. Sridhar’s stewardship (from February 2007), the fund sold all mid-caps and stuck to large-caps.
Birla Frontline Equity’s (BFE) consistency shows in its calls on the telecom sector, especially Bharti Airtel, as also selective PSU banks while trimming exposures to capital goods in time. These examples reflect fund manager Mahesh Patil’s skills. BFE takes marginal exposures to mid-cap scrips and doesn’t hesitate to aggressively book profits.
Also Read: Mutual Funds - A Good Way To Buy Stocks
Equity—Mid- and Small-Cap.
DSP BlackRock Equity (DBRE) tops. It has done well throughout its 10-year history. The little secret behind its success is that it isn’t a pure mid-cap fund; it buys across markets, with its current holding skewed towards large-caps.
Another of our chosen emerging funds, IDFC Premier Equity (IPE), did well. One of the most nimble in its category, it was among the earliest to limit inflows; if a mid-cap fund is too large, it finds it difficult to exit illiquid scrips in time. The fund holds about 30 scrips, far fewer than some of its peers. Across 2008, IPEF stuck to industry leaders in the mid-cap segment. "Typically, we prefer mature companies instead of start-ups," says fund manager Kenneth Andrade.
Swearing by India’s consumerism, Birla Sun Life Gen Next Fund (BGNF) came up trumps. BGNF can swing between large-caps and mid-caps, although for the past three years it’s tended towards mid-caps, on an average. A small corpus helped the fund to weather the downside better. Fund manager Sanjay Chawla’s fascination for the rural market and a high allocation to FMCG and pharmaceuticals in a falling market ensured its superior performance in 2008.
Equity-linked Savings Schemes (ELSS).
The topper, Sundaram BNP Paribas Taxsaver (SBPT), doesn’t shy from going the whole hog for mid- and small-caps in rising markets, and for large-caps in volatile markets. Since end-2007, it has also held fewer scrips. "There’s a need to have meaningful diversification rather than holding a large number of stocks in small quantities," says fund manager Satish Ramanathan.
Despite repeated changes of fund managers and, at one point, very large infows, SBI Magnum Tax Gain ’93 (SMTG) has managed to hold its ground. It moved from being a mid-cap-oriented to a large-cap fund. It slipped a bit in 2008 as it was late to exit capital goods and had a low exposure to defensive sectors.
A laggard during rising markets in 2007, Franklin India Taxshield (FIT) did much better in falling markets on account of its diversified large-cap base. Birla Sun Life Cap Tax Relief ’96 was a disappointment in 2008 because it had a large holding in the capital goods sector. It also took a big hit because of its exposures to plunging stocks: United Breweries Holdings and ICICI Bank.
Hybrid
Even if 2008 was good for debt-oriented hybrid funds, a few equity-oriented hybrid funds are also among the toppers since we take a three-year time frame.
Equity—Conservative Allocation.
This year’s topper, UTI Mahila Unit (UMU), has done well over a three-year period, although its past year’s performance was weak. The fund has actively managed equity and debt components to maximise returns and minimise losses. The fund lost out last year because its equity allocation was 10-14 per cent though, in the past, it has invested up to 25 per cent in equities.
With a one-year return of 28.5 per cent in 2008, Birla Sun Life MIP Savings 5 (BMIP5), could be mistaken for an equity fund. But it doesn’t invest more than 5 per cent in equities at any time. Massive redemptions on MF street in October 2008 brought down its corpus to Rs 21.1 crore by the end of that month from Rs 1,656 crore in the previous month. At this point, fund manager Satyabrata Mohanty parked 75 per cent of its corpus in just two G-secs and held the rest in cash to capitalise on falling interest rates during the last quarter of 2008. "We were also quick to exit them in January, when the tide reversed," he says.
Equity—Moderate Allocation.
The topper, ICICI Prudential Child Care-Study (IPCCS), invests 15-25 per cent in equities and the rest in debt. The scheme is targeted at parents who want to plan for the higher education of their children who are about 15 years old. As the goal is medium-term, fund managers Rahul Goswami and Munjal Shah manage the equity portion aggressively and invest only in mid- and small-caps. The fund did slip in 2008, but it balances its equity risk by sticking to high-rated debt. "Return of investment is more important to us than return on investment; I don’t want to take undue credit risks," says Goswami.
Debt
Overall, debt funds had a good year with falling interest rates and were back in the reckoning big time. After a gap of four years, they aggressively mopped up average maturities.
Bond—Medium-Term.
It was Canara Robeco all the way on the debt side. Head of their debt funds, Ritesh Jain, who joined in April 2008, was a star with both Canara Robeco Income (CRI) and Canara Robeco Gilt PGS, topping the Bond-Medium Term and Gilt-Medium Term categories, respectively. Jain manages CRI very actively, eking out returns on a daily basis, but limits trading to 40 per cent of the portfolio. He says: "I strongly believe that product cycles will get shorter as higher volatility creeps into all classes. Trading calls will have to be taken to bring down volatility." Lapping up corporate bonds post-September 2008 boded well for CRI.
The next in class, Fortis Flexi Debt (FFD), takes active management to a different level. It swings across average maturities by investing in different asset classes in varying proportions. While this is risky, so far, fund manager Alok Singh has managed to do this well, helped by the small fund size. Says Singh: "If we trade actively and our calls go wrong, we immediately spring into action." With government borrowing likely to be on the higher side, Singh now holds low-maturity corporate bonds to benefit from the spread between the bonds and the G-secs.
Bond—Long-Term.
Another dynamic bond fund, IDFC Dynamic Bond (IDB), did well. The fund doesn’t shy from aggressively stocking up higher maturity papers. Arjun Parthasarthy, earlier a fixed income trader with Citigroup and IDBI Bank, has been managing IDB since June 2008. Even with a corpus larger than FFD’s, IDB has done well over longer periods. "We aim to catch the medium- to long-term phase; hence, were comfortable with a larger corpus," says Parthasarthy.
Bond—Short-Term.
Category topper JM Short Term (JST) was aggressive and invested in scrips with slightly higher average maturities than is expected from a typical short-term fund. But with its corpus swaying between Rs 20 crore and Rs 50 crore in the latter half of 2008, JST took aggressive calls to stay ahead. Veteran debt fund manager Shalini Tibrewala, who got her calls right, swiftly switches maturities depending on market outlook.
Tactically targeting a mix of bonds and G-secs in the shorter to medium range also helped Reliance Short Term (RST) achieve a good rating. Additionally, RST also dabbles in slightly lower-risk scrips time and again, but fund manager Prashant Pimple claims the MF does its due diligence. "Going forward, we expect further rate cuts to happen due to falling inflation and the short- to medium-term rates could drop," he says.
Liquid.
Taking risks has consistently been LIC MF Liquid’s (LML) forte, be it in buying scrips below AA-rating—Outlook Money’s safety threshold—or holding scrips with high average maturity. But fund manager Ashish Kumar says that from September 2008, the portfolio has gone for a clean-up exercise. On account of the new regimen that limits the average maturities to 90 days for liquid funds, Kumar has stacked up LML’s average maturity. "Once the rule kicks in, I won’t be able to invest in higher duration papers; it’s best to lock returns now," he says.
Source: Outlook Money
Here is the article presenting the Outlook Money-Morningstar ranking of Mutual Funds, categorywise, based on performance over the last three years. With this information in hand, you will be able to figure out whether you should make fresh investments, continue with the funds that you are holding or cut your losses and exit.
Checkout: Best Mutual Fund Ranking Results
Equity
When equities started to tumble at the beginning of 2008, the small- and mid-caps suffered the most, predictably. The category lost 58 per cent compared to 53 per cent by large-caps.
Equity—Large-Cap.
The large-cap equity category is an interesting mix. Apart from the regulars, we have an infrastructure fund, a dividend yield fund and a tiny little fund that has quietly perched itself on top of the heap.
The topper, DSP BlackRock Top 100 (DBT100), is a fund we’ve been hooked to for quite some time now and, so far, without disappointment. We twice recommended this fund in the past year (in August 2008 and March 2009). Fund manager Apoorva Shah’s stock-picking skills and the fund’s ability to do well in both upturns and downturns differentiates it from the rest. So, if it returned 64 per cent against 57 per cent by the category in a raging bull market in 2007, it fell by just 45.5 per cent against 53 per cent by the category, in 2008. "Whenever we reach our price targets, we don’t hesitate to book profits," says Shah.
The tiny Sahara Growth Fund (Rs 3.28 crore assets) packed in quite a punch. Sticking mostly to Nifty stocks and holding high cash levels throughout the latter part of 2008, the fund protected the downside well and made timely exits from overheated sectors such as real estate, software and metals by the end of 2007. Under fund manager A.N. Sridhar’s stewardship (from February 2007), the fund sold all mid-caps and stuck to large-caps.
Birla Frontline Equity’s (BFE) consistency shows in its calls on the telecom sector, especially Bharti Airtel, as also selective PSU banks while trimming exposures to capital goods in time. These examples reflect fund manager Mahesh Patil’s skills. BFE takes marginal exposures to mid-cap scrips and doesn’t hesitate to aggressively book profits.
Also Read: Mutual Funds - A Good Way To Buy Stocks
Equity—Mid- and Small-Cap.
DSP BlackRock Equity (DBRE) tops. It has done well throughout its 10-year history. The little secret behind its success is that it isn’t a pure mid-cap fund; it buys across markets, with its current holding skewed towards large-caps.
Another of our chosen emerging funds, IDFC Premier Equity (IPE), did well. One of the most nimble in its category, it was among the earliest to limit inflows; if a mid-cap fund is too large, it finds it difficult to exit illiquid scrips in time. The fund holds about 30 scrips, far fewer than some of its peers. Across 2008, IPEF stuck to industry leaders in the mid-cap segment. "Typically, we prefer mature companies instead of start-ups," says fund manager Kenneth Andrade.
Swearing by India’s consumerism, Birla Sun Life Gen Next Fund (BGNF) came up trumps. BGNF can swing between large-caps and mid-caps, although for the past three years it’s tended towards mid-caps, on an average. A small corpus helped the fund to weather the downside better. Fund manager Sanjay Chawla’s fascination for the rural market and a high allocation to FMCG and pharmaceuticals in a falling market ensured its superior performance in 2008.
Equity-linked Savings Schemes (ELSS).
The topper, Sundaram BNP Paribas Taxsaver (SBPT), doesn’t shy from going the whole hog for mid- and small-caps in rising markets, and for large-caps in volatile markets. Since end-2007, it has also held fewer scrips. "There’s a need to have meaningful diversification rather than holding a large number of stocks in small quantities," says fund manager Satish Ramanathan.
Despite repeated changes of fund managers and, at one point, very large infows, SBI Magnum Tax Gain ’93 (SMTG) has managed to hold its ground. It moved from being a mid-cap-oriented to a large-cap fund. It slipped a bit in 2008 as it was late to exit capital goods and had a low exposure to defensive sectors.
A laggard during rising markets in 2007, Franklin India Taxshield (FIT) did much better in falling markets on account of its diversified large-cap base. Birla Sun Life Cap Tax Relief ’96 was a disappointment in 2008 because it had a large holding in the capital goods sector. It also took a big hit because of its exposures to plunging stocks: United Breweries Holdings and ICICI Bank.
Hybrid
Even if 2008 was good for debt-oriented hybrid funds, a few equity-oriented hybrid funds are also among the toppers since we take a three-year time frame.
Equity—Conservative Allocation.
This year’s topper, UTI Mahila Unit (UMU), has done well over a three-year period, although its past year’s performance was weak. The fund has actively managed equity and debt components to maximise returns and minimise losses. The fund lost out last year because its equity allocation was 10-14 per cent though, in the past, it has invested up to 25 per cent in equities.
With a one-year return of 28.5 per cent in 2008, Birla Sun Life MIP Savings 5 (BMIP5), could be mistaken for an equity fund. But it doesn’t invest more than 5 per cent in equities at any time. Massive redemptions on MF street in October 2008 brought down its corpus to Rs 21.1 crore by the end of that month from Rs 1,656 crore in the previous month. At this point, fund manager Satyabrata Mohanty parked 75 per cent of its corpus in just two G-secs and held the rest in cash to capitalise on falling interest rates during the last quarter of 2008. "We were also quick to exit them in January, when the tide reversed," he says.
Equity—Moderate Allocation.
The topper, ICICI Prudential Child Care-Study (IPCCS), invests 15-25 per cent in equities and the rest in debt. The scheme is targeted at parents who want to plan for the higher education of their children who are about 15 years old. As the goal is medium-term, fund managers Rahul Goswami and Munjal Shah manage the equity portion aggressively and invest only in mid- and small-caps. The fund did slip in 2008, but it balances its equity risk by sticking to high-rated debt. "Return of investment is more important to us than return on investment; I don’t want to take undue credit risks," says Goswami.
Debt
Overall, debt funds had a good year with falling interest rates and were back in the reckoning big time. After a gap of four years, they aggressively mopped up average maturities.
Bond—Medium-Term.
It was Canara Robeco all the way on the debt side. Head of their debt funds, Ritesh Jain, who joined in April 2008, was a star with both Canara Robeco Income (CRI) and Canara Robeco Gilt PGS, topping the Bond-Medium Term and Gilt-Medium Term categories, respectively. Jain manages CRI very actively, eking out returns on a daily basis, but limits trading to 40 per cent of the portfolio. He says: "I strongly believe that product cycles will get shorter as higher volatility creeps into all classes. Trading calls will have to be taken to bring down volatility." Lapping up corporate bonds post-September 2008 boded well for CRI.
The next in class, Fortis Flexi Debt (FFD), takes active management to a different level. It swings across average maturities by investing in different asset classes in varying proportions. While this is risky, so far, fund manager Alok Singh has managed to do this well, helped by the small fund size. Says Singh: "If we trade actively and our calls go wrong, we immediately spring into action." With government borrowing likely to be on the higher side, Singh now holds low-maturity corporate bonds to benefit from the spread between the bonds and the G-secs.
Bond—Long-Term.
Another dynamic bond fund, IDFC Dynamic Bond (IDB), did well. The fund doesn’t shy from aggressively stocking up higher maturity papers. Arjun Parthasarthy, earlier a fixed income trader with Citigroup and IDBI Bank, has been managing IDB since June 2008. Even with a corpus larger than FFD’s, IDB has done well over longer periods. "We aim to catch the medium- to long-term phase; hence, were comfortable with a larger corpus," says Parthasarthy.
Bond—Short-Term.
Category topper JM Short Term (JST) was aggressive and invested in scrips with slightly higher average maturities than is expected from a typical short-term fund. But with its corpus swaying between Rs 20 crore and Rs 50 crore in the latter half of 2008, JST took aggressive calls to stay ahead. Veteran debt fund manager Shalini Tibrewala, who got her calls right, swiftly switches maturities depending on market outlook.
Tactically targeting a mix of bonds and G-secs in the shorter to medium range also helped Reliance Short Term (RST) achieve a good rating. Additionally, RST also dabbles in slightly lower-risk scrips time and again, but fund manager Prashant Pimple claims the MF does its due diligence. "Going forward, we expect further rate cuts to happen due to falling inflation and the short- to medium-term rates could drop," he says.
Liquid.
Taking risks has consistently been LIC MF Liquid’s (LML) forte, be it in buying scrips below AA-rating—Outlook Money’s safety threshold—or holding scrips with high average maturity. But fund manager Ashish Kumar says that from September 2008, the portfolio has gone for a clean-up exercise. On account of the new regimen that limits the average maturities to 90 days for liquid funds, Kumar has stacked up LML’s average maturity. "Once the rule kicks in, I won’t be able to invest in higher duration papers; it’s best to lock returns now," he says.
Source: Outlook Money
High Dividend Stocks
Dividend is a tax-free income in the hand of shareholders. Dividends are far more profitable today than it would have been in the last four years. ET Intelligence dug deep to find out companies, which are consistent in paying dividends and in some cases have also increased the payout ratio.
This is because the stock prices have crashed in last one year, as result the dividend yield (dividend per share divided by price per share) has gone up. Therefore, the dividend per rupee of investment is much more today than it was earlier. However, investors should not aim at accumulating stocks with high dividend yield because such high yields may not be sustainable in case profit falls due to economic slowdown.
ET Intelligence dug deep to find out companies, which are consistent in paying dividends and in some cases have also increased the payout ratio. A high payout ratio means a higher percentage of profits are distributed among shareholders as dividends.
The payout ratio has come down for most of the companies in the table. For instance, Great Eastern Shipping paid 38.6% of its profits as dividend in FY 2003, which came down to 17.3% in FY 2008.
The drop in payout ratio has to be seen in the light of high growth in profits. When profits rise at astronomical rates, the dividend growth tends to be a bit lesser because the company prefers to retain some amount with it for further investment.
Investors interested in earning dividends should steer clear of companies with high fluctuations in profits. For instance, Tata Motors had incurred losses in FY 2001 and FY 2002.
Though the company is incurring losses, it can still pay dividend from its past cash flows. But sustaining dividend payment will become extremely difficult in near future. Similarly, other auto manufacturers, like Ashok Leyland, were also excluded from the sample because they operate in highly cyclical industry.
Checkout: Time To Invest For High Dividend Stocks
As we all know that investing in stocks is a risky affair, so, an investor should always try to balance his investments between stocks and fixed interest instruments, which are less risky. We did a simulation (taking the stocks mentioned in the table) to calculate the return purely from the dividend the stocks have been paying.
We assume that an investor had put in Rs 1,000 in each of the 10 stocks on April 01, 2003, taking his total investment to Rs 10,000. The amount invested in all stocks was same to make a portfolio with equal proportions invested in different stocks. At the end of first financial year on April 01, 2004, the investor would have received dividends from the companies amounting to Rs 1,264.
To minimise risk, we assume that the investor had invested the dividend in a fixed deposit for one year at the interest rate of 5.25% and then kept on rolling the fixed deposit every year for another one year. This is called ‘hybrid strategy’ , wherein the income from risky investments (in this case equity) is routed to relatively less risky investments (in this case fixed deposit).
Similarly, every year on the first day of April, the investor would have got dividends, which he would have routed to fixed deposit of one year. Following this strategy, the investor would have made Rs 8,970 from dividend and interest on those dividends in five years.
It is noteworthy that adopting this hybrid strategy the investor would have almost recovered 90% of his entire investment in five years time. This translates to annual return of 13.7% per annum from dividends only.
The most interesting part of the result is that the investor would have made a much higher return on his investments than offered by any fixed rate instrument. On the top of it, that return would have had been entirely free from taxes. The interest on fixed deposit is taxed.
As the interest earned formed a lesser part of the return; the tax incidence would also had been much lesser. Moreover, we have not considered the capital gains. The value of the total portfolio stands at Rs 46,302 today— close to five times of the principal amount of Rs 10,000—though the market has crashed by more than 50% since its peak.
Source: Economic Times
This is because the stock prices have crashed in last one year, as result the dividend yield (dividend per share divided by price per share) has gone up. Therefore, the dividend per rupee of investment is much more today than it was earlier. However, investors should not aim at accumulating stocks with high dividend yield because such high yields may not be sustainable in case profit falls due to economic slowdown.
ET Intelligence dug deep to find out companies, which are consistent in paying dividends and in some cases have also increased the payout ratio. A high payout ratio means a higher percentage of profits are distributed among shareholders as dividends.
The payout ratio has come down for most of the companies in the table. For instance, Great Eastern Shipping paid 38.6% of its profits as dividend in FY 2003, which came down to 17.3% in FY 2008.
The drop in payout ratio has to be seen in the light of high growth in profits. When profits rise at astronomical rates, the dividend growth tends to be a bit lesser because the company prefers to retain some amount with it for further investment.
Investors interested in earning dividends should steer clear of companies with high fluctuations in profits. For instance, Tata Motors had incurred losses in FY 2001 and FY 2002.
Though the company is incurring losses, it can still pay dividend from its past cash flows. But sustaining dividend payment will become extremely difficult in near future. Similarly, other auto manufacturers, like Ashok Leyland, were also excluded from the sample because they operate in highly cyclical industry.
Checkout: Time To Invest For High Dividend Stocks
As we all know that investing in stocks is a risky affair, so, an investor should always try to balance his investments between stocks and fixed interest instruments, which are less risky. We did a simulation (taking the stocks mentioned in the table) to calculate the return purely from the dividend the stocks have been paying.
We assume that an investor had put in Rs 1,000 in each of the 10 stocks on April 01, 2003, taking his total investment to Rs 10,000. The amount invested in all stocks was same to make a portfolio with equal proportions invested in different stocks. At the end of first financial year on April 01, 2004, the investor would have received dividends from the companies amounting to Rs 1,264.
To minimise risk, we assume that the investor had invested the dividend in a fixed deposit for one year at the interest rate of 5.25% and then kept on rolling the fixed deposit every year for another one year. This is called ‘hybrid strategy’ , wherein the income from risky investments (in this case equity) is routed to relatively less risky investments (in this case fixed deposit).
Similarly, every year on the first day of April, the investor would have got dividends, which he would have routed to fixed deposit of one year. Following this strategy, the investor would have made Rs 8,970 from dividend and interest on those dividends in five years.
It is noteworthy that adopting this hybrid strategy the investor would have almost recovered 90% of his entire investment in five years time. This translates to annual return of 13.7% per annum from dividends only.
The most interesting part of the result is that the investor would have made a much higher return on his investments than offered by any fixed rate instrument. On the top of it, that return would have had been entirely free from taxes. The interest on fixed deposit is taxed.
As the interest earned formed a lesser part of the return; the tax incidence would also had been much lesser. Moreover, we have not considered the capital gains. The value of the total portfolio stands at Rs 46,302 today— close to five times of the principal amount of Rs 10,000—though the market has crashed by more than 50% since its peak.
Source: Economic Times
Stock Market in 2009 - Buying Stocks For Best Returns
Year 2009 started with all the gloom for Indian stock market & across the globe. Retail investors looking for good returns from stock buying are searching for good to buy stocks in 2009 which could fetch returns more than other investment instruments. Here is the series of articles published earlier about best stocks to buy and investing in 2009 - 2010.
Best Stocks For 2009 - Top Stocks To Buy Now
As uncertainties prevail and a revival expected only post second quarter of 2009, looking at current stock market situation it will pay to focus on buying stocks of large cap companies with a proven track record, high earnings visibility, low leverage, good book value and low debt. It is highly advisable to buy stocks with strong promoter holdings looking at recent Satyam fiasco.
Best 20 Stocks To Buy In 2009 - Buying Stocks Long Term Investing
Business Today magazine had recently published list of top 20 stocks to buy or watch out for in 2009. One may treat these as buy stocks advice, strictly for long term investment. Mentioned here are best stocks that are strong to survive the slowdown in 2009. Buying stocks which could emerge as best performing stocks to buy out of this gloom would help you in strengthening your portfolio in long term duration. They are very cheap stocks in terms of value stock investing for long term valuations. The list is in alphebetical order.
Stock Market 2009 Predictions - Where would it be in Feb-March 2009?
Looking at current stock market situations worldwide, and especially US DOW trailing below 7500, Indian stocks can not remain isolated for long time since Indian economy is too dependent on world markets. Large companies like General Motors likely to go bankrupt in US, economy there is under severe pressure and chances are it would not grow at all and infact would be contracting in future for some time
Best stocks in 2008. Should we buy these for 2009?
These stocks were the best stocks to buy in Indian stock market in year 2008 (based on their annual rate of returns). Even as the current stock market stands at half in value since touching an all-time high on January 10, 2008, there were nine stocks among India’s top 500 companies which delivered gains to their shareholders over a period of one year. Here is a stock report published in ET. Can we buy these best performing stocks in 2008 for 2009 as well?
How to buy stocks ? Buy stocks with confidence
Current stock market, as we all know, is in an uncertain situation with ups and downs in stocks every week. Every investor may be wondering about how to buy a stock as buying stocks for long term investment has become difficult when there are no clear market trends.
Top 9 Stocks To Buy For 2009
ET spoke to more than nine brokerage firms to find out the nine gems for 2009. Interestingly, there has been a consensus among stock market research firms in choosing these stocks to buy in 2009 from a vast list of scrips. Here go the gems...
Value Stocks To Buy In 2009
These pessimistic times do present an opportunity for long term, patient investors to buy stock with intrinsic value and make extraordinary returns.
Best stocks to buy now are banking stocks
Amid easing of liquidity, low bond yields and expectations of long term economic revival, banking stocks are seen as the best bet for investment - both in medium term and long term.
Best stocks to buy in Indian telecom sector
Most of the brokerage houses have put Buy stock recommendations on Bharti Airtel, Idea Cellular and Reliance Communications stocks in Indian telecom sector. These big three could be considered as best investment options in sector.
Indian Stock Markets : Which Stocks to invest in 2009
Markets have corrected about 60% from their peaks and have bounced 30% from their lows.For how long will the markets behave the way they are behaving right now? What to follow for best investments?
Best FMCG Companies - Stocks to Invest in 2009
FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.
Economy will bounce back faster - Rakesh Jhunjhunwala
The Indian economy will bounce back much faster and more vigorously than most people anticipate. This will be driven by swift upswing in domestic demand, according to Mr Rakesh Jhunjhunwala, equity and investment guru.
Stock Markets in 2009 would be volatile - Marc Faber
Investment guru Marc Faber said that the volatility in stocks will continue in 2009. The markets would ease after an initial rebound.
Best Stocks For 2009 - Top Stocks To Buy Now
As uncertainties prevail and a revival expected only post second quarter of 2009, looking at current stock market situation it will pay to focus on buying stocks of large cap companies with a proven track record, high earnings visibility, low leverage, good book value and low debt. It is highly advisable to buy stocks with strong promoter holdings looking at recent Satyam fiasco.
Best 20 Stocks To Buy In 2009 - Buying Stocks Long Term Investing
Business Today magazine had recently published list of top 20 stocks to buy or watch out for in 2009. One may treat these as buy stocks advice, strictly for long term investment. Mentioned here are best stocks that are strong to survive the slowdown in 2009. Buying stocks which could emerge as best performing stocks to buy out of this gloom would help you in strengthening your portfolio in long term duration. They are very cheap stocks in terms of value stock investing for long term valuations. The list is in alphebetical order.
Stock Market 2009 Predictions - Where would it be in Feb-March 2009?
Looking at current stock market situations worldwide, and especially US DOW trailing below 7500, Indian stocks can not remain isolated for long time since Indian economy is too dependent on world markets. Large companies like General Motors likely to go bankrupt in US, economy there is under severe pressure and chances are it would not grow at all and infact would be contracting in future for some time
Best stocks in 2008. Should we buy these for 2009?
These stocks were the best stocks to buy in Indian stock market in year 2008 (based on their annual rate of returns). Even as the current stock market stands at half in value since touching an all-time high on January 10, 2008, there were nine stocks among India’s top 500 companies which delivered gains to their shareholders over a period of one year. Here is a stock report published in ET. Can we buy these best performing stocks in 2008 for 2009 as well?
How to buy stocks ? Buy stocks with confidence
Current stock market, as we all know, is in an uncertain situation with ups and downs in stocks every week. Every investor may be wondering about how to buy a stock as buying stocks for long term investment has become difficult when there are no clear market trends.
Top 9 Stocks To Buy For 2009
ET spoke to more than nine brokerage firms to find out the nine gems for 2009. Interestingly, there has been a consensus among stock market research firms in choosing these stocks to buy in 2009 from a vast list of scrips. Here go the gems...
Value Stocks To Buy In 2009
These pessimistic times do present an opportunity for long term, patient investors to buy stock with intrinsic value and make extraordinary returns.
Best stocks to buy now are banking stocks
Amid easing of liquidity, low bond yields and expectations of long term economic revival, banking stocks are seen as the best bet for investment - both in medium term and long term.
Best stocks to buy in Indian telecom sector
Most of the brokerage houses have put Buy stock recommendations on Bharti Airtel, Idea Cellular and Reliance Communications stocks in Indian telecom sector. These big three could be considered as best investment options in sector.
Indian Stock Markets : Which Stocks to invest in 2009
Markets have corrected about 60% from their peaks and have bounced 30% from their lows.For how long will the markets behave the way they are behaving right now? What to follow for best investments?
Best FMCG Companies - Stocks to Invest in 2009
FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.
Economy will bounce back faster - Rakesh Jhunjhunwala
The Indian economy will bounce back much faster and more vigorously than most people anticipate. This will be driven by swift upswing in domestic demand, according to Mr Rakesh Jhunjhunwala, equity and investment guru.
Stock Markets in 2009 would be volatile - Marc Faber
Investment guru Marc Faber said that the volatility in stocks will continue in 2009. The markets would ease after an initial rebound.
Buying Stocks For 2009 - Top Stocks To Buy Now
As uncertainties prevail and a revival expected only post second quarter of 2009, looking at current stock market situation it will pay to buy stocks of large cap companies with a proven track record, high earnings visibility, low leverage, good book value and low debt. Buying stocks with strong promoter holdings looking at recent Satyam fiasco could be one one of the considerations for stock buying.
Read: Best Stocks To Buy In 2010
Stock trades at cheap brokerage fees and buying stocks online or online stock trading have made trading stocks very frequent practice for normal investor, they should understnad that stocks mentioned here are for long term investing and will be fruitful if they hold for longer time durations.
In the aftermath of economic slowdown and fall in markets, and also uncertainty over the next few quarters, it is advisable to play safe and practice stock buying of large companies with a consistent track-record. Stock trades are best to be avoided for retail investor. Online stock trading have made it very easy for retail investors to trade stocks very frequently. It is complete no-no in current stock market situation.
Sandeep Shenoy, strategist, Pinc Research says, “Companies with integrated operations, strong balance sheets, low leverage or ability to complete financial closure for capex, and low working capital requirements are preferred.”
Beyond that, interest rate sensitive sectors are finding favour. Says Srivastava, “We are favourably inclined towards rate-sensitive sectors like banking, auto or even in real-estate on a selective basis. But, as the market is expected to be range bound, a trading strategy could prove helpful.”
Defensive plays like FMCG and utilities, too, figure among the preferred lot even as there is already some amount of premium built in their valuations, due to the stability they provide. Additionally, users of commodities are expected to outperform. Says Manish Sonthalia, senior VP Research & Strategy, Motilal Oswal Securities, “Now, the consumption side, like auto (two wheelers) will get more importance. Among other preferred sectors are FMCG and telecom.” Commodity user industries like construction, which may get a fillip on account of increased infrastructure spending, also figure in the list, although there are some issues pertaining to funding of projects.
Checkout:
Best stocks to buy in Indian telecom sector...
Best FMCG Companies - Stocks to Buy in 2009
How to buy stocks ? Buy stocks with confidence (Good book value and low debt stocks)
The laggards in 2009 will be commodities (metals), capital goods (due to order slowdown), real estate and IT (weak demand).
With respect to return expectations from the market (Sensex), it ranges 10-12 per cent on the conservative side to as much as 35 per cent, by December 2009.
Regarding investment worthy companies, The Smart Investor looked at the BSE 500 (94 per cent of total market capitalisation) and excluded companies with high debt levels or weak financials. Only those with a proven track record, good earnings visibility, strong cash flows and ability to raise debt were considered, as they will be in a better position to withstand tough times. Notably, many of them are leaders in their respective businesses, and their stocks capable of delivering 18-20 per cent returns over the next one year.
Have a look at these best large cap stocks to buy in 2009.
Tata Power - Got the power to be best
Sun Pharmaceutical - Best stock in Pharmaceutical sector
State Bank of India (SBI) - Elephant in Banking sector
Reliance Industries (RIL) - Best safe investment
IVRCL Infrastructures - Good stock with strong order book
ITC - Best stock in cigarettes business - Major in FMCG Too
Hero Honda - Best stock to invest in two wheeler auto industry
HDFC - Best stock to invest in Banking sector
Bharti Airtel - Best stock in telecom for definite investment returns
Apollo Hospitals - Good large cap stock in Healthcare
Investment worthy stocks- Best stocks to buy in 2009
Click on image to enlarge
Other investment worthy stocks to buy in 2009
Reference: Business Standard
>> Return To: Stock Market in 2009 - Stocks to Buy
Also Read:
Value Stock Investing - How To Buy Top Stocks
Best stocks to buy in Indian telecom sector...
Indian Stock Markets : Which stocks to buy in 2009?
Best FMCG Companies - Stocks to Buy in 2009
Economy will bounce back faster - Rakesh Jhunjhunwala
Promoters investing money in own companies
Stock Markets in 2009 would be volatile - Marc Faber
Nifty Target would be 2000 - Weakness developing in stock markets
10 Biggest Wealth Creators (Best stocks for safe Investments)
Read: Best Stocks To Buy In 2010
Stock trades at cheap brokerage fees and buying stocks online or online stock trading have made trading stocks very frequent practice for normal investor, they should understnad that stocks mentioned here are for long term investing and will be fruitful if they hold for longer time durations.
In the aftermath of economic slowdown and fall in markets, and also uncertainty over the next few quarters, it is advisable to play safe and practice stock buying of large companies with a consistent track-record. Stock trades are best to be avoided for retail investor. Online stock trading have made it very easy for retail investors to trade stocks very frequently. It is complete no-no in current stock market situation.
Sandeep Shenoy, strategist, Pinc Research says, “Companies with integrated operations, strong balance sheets, low leverage or ability to complete financial closure for capex, and low working capital requirements are preferred.”
Beyond that, interest rate sensitive sectors are finding favour. Says Srivastava, “We are favourably inclined towards rate-sensitive sectors like banking, auto or even in real-estate on a selective basis. But, as the market is expected to be range bound, a trading strategy could prove helpful.”
Defensive plays like FMCG and utilities, too, figure among the preferred lot even as there is already some amount of premium built in their valuations, due to the stability they provide. Additionally, users of commodities are expected to outperform. Says Manish Sonthalia, senior VP Research & Strategy, Motilal Oswal Securities, “Now, the consumption side, like auto (two wheelers) will get more importance. Among other preferred sectors are FMCG and telecom.” Commodity user industries like construction, which may get a fillip on account of increased infrastructure spending, also figure in the list, although there are some issues pertaining to funding of projects.
Checkout:
Best stocks to buy in Indian telecom sector...
Best FMCG Companies - Stocks to Buy in 2009
How to buy stocks ? Buy stocks with confidence (Good book value and low debt stocks)
The laggards in 2009 will be commodities (metals), capital goods (due to order slowdown), real estate and IT (weak demand).
With respect to return expectations from the market (Sensex), it ranges 10-12 per cent on the conservative side to as much as 35 per cent, by December 2009.
Regarding investment worthy companies, The Smart Investor looked at the BSE 500 (94 per cent of total market capitalisation) and excluded companies with high debt levels or weak financials. Only those with a proven track record, good earnings visibility, strong cash flows and ability to raise debt were considered, as they will be in a better position to withstand tough times. Notably, many of them are leaders in their respective businesses, and their stocks capable of delivering 18-20 per cent returns over the next one year.
Have a look at these best large cap stocks to buy in 2009.
Tata Power - Got the power to be best
Sun Pharmaceutical - Best stock in Pharmaceutical sector
State Bank of India (SBI) - Elephant in Banking sector
Reliance Industries (RIL) - Best safe investment
IVRCL Infrastructures - Good stock with strong order book
ITC - Best stock in cigarettes business - Major in FMCG Too
Hero Honda - Best stock to invest in two wheeler auto industry
HDFC - Best stock to invest in Banking sector
Bharti Airtel - Best stock in telecom for definite investment returns
Apollo Hospitals - Good large cap stock in Healthcare
Investment worthy stocks- Best stocks to buy in 2009
Click on image to enlargeOther investment worthy stocks to buy in 2009
Reference: Business Standard
>> Return To: Stock Market in 2009 - Stocks to Buy
Also Read:
Value Stock Investing - How To Buy Top Stocks
Best stocks to buy in Indian telecom sector...
Indian Stock Markets : Which stocks to buy in 2009?
Best FMCG Companies - Stocks to Buy in 2009
Economy will bounce back faster - Rakesh Jhunjhunwala
Promoters investing money in own companies
Stock Markets in 2009 would be volatile - Marc Faber
Nifty Target would be 2000 - Weakness developing in stock markets
10 Biggest Wealth Creators (Best stocks for safe Investments)
Top 9 Stocks To Buy For 2009
ET spoke to more than nine brokerage firms to find out the nine gems for 2009. Interestingly, there has been a consensus among stock market research firms in choosing these stocks to buy in 2009 from a vast list of scrips. Here go the gems...
SBI
State Bank of India, the largest bank in India, owns over 20% market share in deposits and loans with more than 90 million customers. It has the largest overseas presences. Amitabh Chakraborty, president equity at Religare Securities, is positive on the rate-sensitive sector as the interest rate is on the decline, resulting in higher treasury income for the banks.
Checkout: State Bank of India (SBI) - Elephant in Banking sector
IVRCL INFRA
The Hyderabad-based construction company gets 70% of revenue from water-related business. Currently, its order book size stands at Rs 15,969 crore. Dipen Shah, V-P at Kotak Securities, expects easing interest rates and increasing spending by govt to be positive for the counter.
Checkout: IVRCL Infrastructures - Good stock to buy with strong order book
BHEL
It is a default beneficiary for catering to priority sectors like power. It has installed equipment for over 90,000 MW for power generation out of total installed capacity of 146,000 MW. The order book size of Rs 10,400 crore shows the revenue visibility for next four years.
ITC
It is an outstanding market leader in its traditional businesses like cigarettes. With gaining market share in its nascent businesses of packaged foods and confectionery, branded apparel, personal care and stationery, Aggarwal from SMC Wealth Management Services, expects the counter to perform better in the months ahead.
Read: ITC - Best stock to buy in cigarettes business - Major in FMCG too
SUN PHARMA
It secures a premiere position among companies in the business of speciality therapy. While the recent financial crisis added to the woes of global pharma innovators, Sudip Bandyopadhyay, director and CEO at Reliance Money, expects cos like Sun Pharma with sound technology platform and wider niche generics presence to deliver safer growth.
Checkout: SUN PHARMA - Safe Investment Stock With Dividend
Punjab National Bank (PNB)
Punjab National Bank, the second largest public sector bank, it has seen a growth of 28% and 24% in its advance and deposits, respectively, in the quarter ended September last year. DK Aggarwal, managing director at SMC Wealth Management Services, expects the bank to continue lending to agriculture, SMEs and other productive sectors and is positive on the scrip.
NTPC
It has been on a rapid expansion spree over the past few years, during which it invested around Rs 23,000 crore and plans to invest Rs 13,600 crore this year. Anup Bagchi, executive director at ICICI Securities, expects the sector to remain strong on the back of favourable demand-supply situation and is upbeat on NTPC.
Reliance Industries Ltd. (RIL)
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Reliance Industries is expected to benefit from the start of production at KG basin. According to Amar Ambani, V-P at Indiainfoline, higher complexity of its refineries and integrated nature of petrochem complexes will enable it to earn relatively better margins compared to its peers in a cyclical downturn and hence it will have higher premium.
More on Reliance: Reliance Industries (RIL) - Buy Stock for safe investment
BHARTI AIRTEL
The countrys largest private integrated telecom solutions provider, it is expected to remain dominant in wireless segment. Dinesh Thakkar, CMD of Angel Broking, expects that apart from telecom, there remains value to be unlocked from the tower business and new initiatives like DTH, IPTV and the company?s international forays in places like Sri Lanka.
Checkout: Bharti Airtel - Best stock in telecom for definite...
Source Article: Economic Times
More articles about best stocks to buy for 2009:
Best Stocks For 2009 - Stocks To Buy Now
Value Stocks To Buy In 2009
Best stocks to buy in Indian telecom sector
Indian Stock Markets : Which Stocks to buy in 2009
Best FMCG Companies - Stocks to Invest in 2009
Economy will bounce back faster - Rakesh Jhunjhunwala
Promoters investing money in own companies
Stock Markets in 2009 would be volatile - Marc Faber
Nifty Target would be 2000 - Weakness developing in stock markets
10 Biggest Wealth Creators (Best stocks to buy for safe Investment)
SBI
State Bank of India, the largest bank in India, owns over 20% market share in deposits and loans with more than 90 million customers. It has the largest overseas presences. Amitabh Chakraborty, president equity at Religare Securities, is positive on the rate-sensitive sector as the interest rate is on the decline, resulting in higher treasury income for the banks.
Checkout: State Bank of India (SBI) - Elephant in Banking sector
IVRCL INFRA
The Hyderabad-based construction company gets 70% of revenue from water-related business. Currently, its order book size stands at Rs 15,969 crore. Dipen Shah, V-P at Kotak Securities, expects easing interest rates and increasing spending by govt to be positive for the counter.
Checkout: IVRCL Infrastructures - Good stock to buy with strong order book
BHEL
It is a default beneficiary for catering to priority sectors like power. It has installed equipment for over 90,000 MW for power generation out of total installed capacity of 146,000 MW. The order book size of Rs 10,400 crore shows the revenue visibility for next four years.
ITC
It is an outstanding market leader in its traditional businesses like cigarettes. With gaining market share in its nascent businesses of packaged foods and confectionery, branded apparel, personal care and stationery, Aggarwal from SMC Wealth Management Services, expects the counter to perform better in the months ahead.
Read: ITC - Best stock to buy in cigarettes business - Major in FMCG too
SUN PHARMA
It secures a premiere position among companies in the business of speciality therapy. While the recent financial crisis added to the woes of global pharma innovators, Sudip Bandyopadhyay, director and CEO at Reliance Money, expects cos like Sun Pharma with sound technology platform and wider niche generics presence to deliver safer growth.
Checkout: SUN PHARMA - Safe Investment Stock With Dividend
Punjab National Bank (PNB)
Punjab National Bank, the second largest public sector bank, it has seen a growth of 28% and 24% in its advance and deposits, respectively, in the quarter ended September last year. DK Aggarwal, managing director at SMC Wealth Management Services, expects the bank to continue lending to agriculture, SMEs and other productive sectors and is positive on the scrip.
NTPC
It has been on a rapid expansion spree over the past few years, during which it invested around Rs 23,000 crore and plans to invest Rs 13,600 crore this year. Anup Bagchi, executive director at ICICI Securities, expects the sector to remain strong on the back of favourable demand-supply situation and is upbeat on NTPC.
Reliance Industries Ltd. (RIL)
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Reliance Industries is expected to benefit from the start of production at KG basin. According to Amar Ambani, V-P at Indiainfoline, higher complexity of its refineries and integrated nature of petrochem complexes will enable it to earn relatively better margins compared to its peers in a cyclical downturn and hence it will have higher premium.
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BHARTI AIRTEL
The countrys largest private integrated telecom solutions provider, it is expected to remain dominant in wireless segment. Dinesh Thakkar, CMD of Angel Broking, expects that apart from telecom, there remains value to be unlocked from the tower business and new initiatives like DTH, IPTV and the company?s international forays in places like Sri Lanka.
Checkout: Bharti Airtel - Best stock in telecom for definite...
Source Article: Economic Times
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Top 10 fastest growing small companies in India
Growth is the only way listed companies generate wealth and value for their shareholders and other stakeholders, including employees. The younger and smaller the company, easier it is to grow. And the earlier you are able to pick future leaders, the better it is for you. In fact, during the last bear run, which ended in early 2003, many small companies gave double-digit annual returns on a consistent basis, even as frontline companies remained grounded.
ETIG has come out with its 2008 edition of fastest-growing small companies. Last year's list was dominated by companies from the then hot sectors such as real estate, capital goods and construction, with a sprinkling of IT companies. However, the toppers this time are now from less cyclical and asset-light sectors, especially infotech.
Take a look at the top 10 fastest-growing small companies:
ICSA India
This is the new face of the Indian IT industry — companies offering niche product and services with a clear differentiating factor. ICSA offers supervisory control and data acquisition (SCADA)-based IT solutions to power companies.
ICSA India had a market cap of Rs 1,305.2 crore (the average for September '08), besides having an average return on capital employed (RoCE) of 67.8% and interest coverage ratio (ICR) of 132.7, for the preceding three years.
Also, its compound average growth rate (CAGR) in sales and net profit for the preceding three years stood at 214.8% and 210%, respectively.
It is also engaged into merchant export of iron ore fines to China. The company is a member of CAPEXIL, FIEO and FIMI and is a recognized star trading house. At present, the company has run-of-mines contracts for two mines situated at Nuagaon and Maharajpur in Orissa.
Resurgere Mines' market cap (average for September '08) stood at Rs 733.5 cr, while the three-year average RoCE was recorded at 100.2% and ICR at 32.8. Its sales recorded a three-year compound average growth rate of 81%, while the CAGR of profit after tax stood at 561.4%.
The success of Sharon Bio-Medicine lies in its ability to expedite pace of product development by streamlining the processes and inculcating a culture of operational excellence. It offers contract research and manufacturing services for global pharmaceutical companies.
Since its inception, the company has carved its niche by offering a distinct value proposition to its customers.
Sharon had a market cap of Rs 101.7 crore (the average for September '08). Its three-year average RoCE stood at 30.8 % and ICR at 747.8. Its sales recorded a three-year compound average growth rate of 93.3%, while the CAGR of profit after tax stood at 254.2%.
Tanla Solutions develops value-added solutions for mobile phones. It offers end-to-end mobile commerce, mobile entertainment, mobile internet and mobile advertising solutions.
Tanla is a global provider of mobile commerce, mobile entertainment, mobile marketing and advertising solutions to the telecommunications, media and digital content industries. It has the distinction of being one of the first Indian companies to focus on integrated solutions and products for the wireless world.
With an average market cap of Rs 1,906.9 crore in September '08, the company's three-year average RoCE stood at 51.1% and ICR at 15.8. Moreover, its sales recorded a three-year CAGR of 173.8%, while the CAGR of profit after tax stood at 189.8%.
Northgate Technologies Limited
The corner stone capabilities of Northgate Technologies' business are infrastructure (high capacity, highly scalable server farm), services (internet advertising tracking tool, instant messaging, short messaging, net telephony, global content delivery, video streaming, social networking, file sharing and downloading, gaming and many more), and monetization (mass monetization through fast growing global internet advertising industry).
Its core strengths of world-class server farm infrastructure, a rapidly-expanding global content distribution platform, popular internet properties, partnership with large web communities and own advertising network differentiates it from other peers who operate in only sector, the company claims.
Northgate Tech's market cap (average for September '08) stood at Rs 904.9 crore, while the three-year average RoCE was recorded at 31% and ICR at 1141.4.
Its sales recorded a three-year compound average growth rate of 102.1%, while the CAGR of profit after tax stood at 110.9%.
Venus Remedies India is a research and development driven, pharmaceutical manufacturing company. The company is constantly working to broaden the pipeline of products and to make a impact in the international markets.
It has two manufacturing locations in India and one in Germany. Venus is a manufacturer of oncological and cefelosporine injectable products following EU-GMP norms for all is activities.
The company had a market cap of Rs 316.9 crore (the average for September '08), besides having an average return on capital employed of 43.2% and interest coverage ratio of 59.5, for the preceding three years.
Also, its compound average growth rate in sales and net profit for the preceding three years stood at 84.4% and 117.5%, respectively.
Geodesic Limited
ETIG has come out with its 2008 edition of fastest-growing small companies. Last year's list was dominated by companies from the then hot sectors such as real estate, capital goods and construction, with a sprinkling of IT companies. However, the toppers this time are now from less cyclical and asset-light sectors, especially infotech.
Take a look at the top 10 fastest-growing small companies:
ICSA IndiaThis is the new face of the Indian IT industry — companies offering niche product and services with a clear differentiating factor. ICSA offers supervisory control and data acquisition (SCADA)-based IT solutions to power companies.
ICSA India had a market cap of Rs 1,305.2 crore (the average for September '08), besides having an average return on capital employed (RoCE) of 67.8% and interest coverage ratio (ICR) of 132.7, for the preceding three years.
Also, its compound average growth rate (CAGR) in sales and net profit for the preceding three years stood at 214.8% and 210%, respectively.
Allied Digital provides remote infrastructure management and systems integration in the domestic market. It is a leading IT Infrastructure management and technical support services outsourcing company.
It enables global, large and medium enterprises and service providers to reduce their total cost of ownership using a combination of onsite and remote services.
With an average market cap of Rs 1,239.2 crore in September '08, the company's three-year average RoCE stood at 62.8% and ICR at 103.5. Moreover, its sales recorded a three-year CAGR of 79.2%, while the CAGR of profit after tax stood at 211.6%.
As the name suggests, Prime Property Development Corporation is a real estate developer in India, based in Mumbai.
Its properties include information technology parks; commercial units comprising show rooms, shops, and offices; mall projects with anchor shop, shopping complex, multiplex, food court, entertainment area, and a hotel; and commercial-cum-residential projects.
The company had a market cap of Rs 120.2 crore (the average for September '08). Its three-year average RoCE stood at 48.1% and ICR at 394.7. Its sales recorded a three-year compound average growth rate of 86.4%, while the CAGR of profit after tax stood at 185.3%.
Resurgere Mines and Minerals India Ltd
Resurgere Mines and Minerals India Ltd is engaged in the business of extraction and processing of iron ore products, ie lump ore and size ore, and is predominantly a manufacturer of calibrated lump ore (CLO) and iron ore fines.It is also engaged into merchant export of iron ore fines to China. The company is a member of CAPEXIL, FIEO and FIMI and is a recognized star trading house. At present, the company has run-of-mines contracts for two mines situated at Nuagaon and Maharajpur in Orissa.
Resurgere Mines' market cap (average for September '08) stood at Rs 733.5 cr, while the three-year average RoCE was recorded at 100.2% and ICR at 32.8. Its sales recorded a three-year compound average growth rate of 81%, while the CAGR of profit after tax stood at 561.4%.
The success of Sharon Bio-Medicine lies in its ability to expedite pace of product development by streamlining the processes and inculcating a culture of operational excellence. It offers contract research and manufacturing services for global pharmaceutical companies.Since its inception, the company has carved its niche by offering a distinct value proposition to its customers.
Sharon had a market cap of Rs 101.7 crore (the average for September '08). Its three-year average RoCE stood at 30.8 % and ICR at 747.8. Its sales recorded a three-year compound average growth rate of 93.3%, while the CAGR of profit after tax stood at 254.2%.
Tanla Solutions develops value-added solutions for mobile phones. It offers end-to-end mobile commerce, mobile entertainment, mobile internet and mobile advertising solutions.Tanla is a global provider of mobile commerce, mobile entertainment, mobile marketing and advertising solutions to the telecommunications, media and digital content industries. It has the distinction of being one of the first Indian companies to focus on integrated solutions and products for the wireless world.
With an average market cap of Rs 1,906.9 crore in September '08, the company's three-year average RoCE stood at 51.1% and ICR at 15.8. Moreover, its sales recorded a three-year CAGR of 173.8%, while the CAGR of profit after tax stood at 189.8%.
Northgate Technologies LimitedThe corner stone capabilities of Northgate Technologies' business are infrastructure (high capacity, highly scalable server farm), services (internet advertising tracking tool, instant messaging, short messaging, net telephony, global content delivery, video streaming, social networking, file sharing and downloading, gaming and many more), and monetization (mass monetization through fast growing global internet advertising industry).
Its core strengths of world-class server farm infrastructure, a rapidly-expanding global content distribution platform, popular internet properties, partnership with large web communities and own advertising network differentiates it from other peers who operate in only sector, the company claims.
Northgate Tech's market cap (average for September '08) stood at Rs 904.9 crore, while the three-year average RoCE was recorded at 31% and ICR at 1141.4.
Its sales recorded a three-year compound average growth rate of 102.1%, while the CAGR of profit after tax stood at 110.9%.
Venus Remedies India is a research and development driven, pharmaceutical manufacturing company. The company is constantly working to broaden the pipeline of products and to make a impact in the international markets.It has two manufacturing locations in India and one in Germany. Venus is a manufacturer of oncological and cefelosporine injectable products following EU-GMP norms for all is activities.
The company had a market cap of Rs 316.9 crore (the average for September '08), besides having an average return on capital employed of 43.2% and interest coverage ratio of 59.5, for the preceding three years.
Also, its compound average growth rate in sales and net profit for the preceding three years stood at 84.4% and 117.5%, respectively.
Geodesic LimitedGeodesic operates in a niche area of developing various innovative products in the information, communication and entertainment space. Its product-list is versatile and all-encompassing when it comes to offering choice of communication and collaboration solutions to its users, whether it is the inherently simple hand-held Simputer to web-based mobile & wireless applications to the intricately complex Engage Spyder applications.
Geodesic's mix of innovative products and high performance solutions has driven the company to profit right from its first year, according to the company.
With an average market cap of Rs 1,511.5 crore in September '08, the company's three-year average RoCE stood at 31.1% and ICR at 1027.3.
Moreover, its sales recorded a three-year CAGR of 98.9%, while the CAGR of profit after tax stood at 98.2%.
Info Edge (India) Ltd
Geodesic's mix of innovative products and high performance solutions has driven the company to profit right from its first year, according to the company.
With an average market cap of Rs 1,511.5 crore in September '08, the company's three-year average RoCE stood at 31.1% and ICR at 1027.3.
Moreover, its sales recorded a three-year CAGR of 98.9%, while the CAGR of profit after tax stood at 98.2%.
Info Edge (India) LtdThe company is a leading provider of online recruitment, matrimonial & real estate classifieds and related services in India.
Its business is managed primarily through four divisions, which comprise online recruitment classified division, online matrimonial classified division, online real estate classified division and offline executive search division.
Info Edge's market cap (average for September '08) stood at Rs 2,056.7 crore, while the three-year average RoCE was recorded at 60.4% and ICR at 11.4.
Its sales recorded a three-year compound average growth rate of 70.6%, while the CAGR of profit after tax stood at 451.8%.
Its business is managed primarily through four divisions, which comprise online recruitment classified division, online matrimonial classified division, online real estate classified division and offline executive search division.
Info Edge's market cap (average for September '08) stood at Rs 2,056.7 crore, while the three-year average RoCE was recorded at 60.4% and ICR at 11.4.
Its sales recorded a three-year compound average growth rate of 70.6%, while the CAGR of profit after tax stood at 451.8%.
Source: Economic Times
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