Tuesday, 20 November 2007

Status Report

GMR Infra is currently trading at Rs 253. I recommended this stock when it was at Rs 176. This is an increase of almost 45% !!!

Sudarshan Sukhani is of the view that GMR Infrastructure has more headroom left compared to JP Associates. Sukhani told CNBC-TV18, "JP Associates is the better chart but GMR is a better buying opportunity as of now so because there is more headroom. I would feel GMR probably is now ready to breakout and do what JP Associates has already done."

Thursday, 15 November 2007

Edelweiss IPO subscribed nearly 6 times

The initial public offer (IPO) of brokerage firm Edelweiss Capital of Thursday got subscribed by nearly six times on the very first day of its issue.

The issue received bids for 4.87 crore shares as against 83.86 lakh shares on offer, latest data available on the Bombay Stock Exchange show.

The price band for the issue, which was subscribed 5.81 times, has been fixed between Rs 725-825 per share. The offer would close on November 20.

The issue got robust response from investors with Qualified Institutional Investors subscribing 8.39 times and the Non-Institutional investors subscribing 8.49 times.

The company is planing to raise about Rs 700 crore of which for Rs 378 crore would be utilised for strengthening operations of its unlisted securities arm Edelweiss Securities Ltd (ESL) and Rs 57 crore would be used in its own operations.

The company proposes to fix issue price on November 27 and the listing would take place in the second week of December.

Kotak Mahindra Capital, Citigroup and Lehman Brothers are the book running lead managers to the issue.

Source: Economic Times

Rocketing rentals: India’s 4 costliest markets in Delhi

At a whopping rental of Rs 950 per sq ft, Delhi’s Khan Market has emerged as the country’s most expensive retail location, far ahead of its pricey Mumbai counterparts. To top that, it is also the 16th most expensive shopping location in the world.

The top four expensive locations in India are Khan Market, Connaught Place, South Extension and Greater Kailash, according to a report — Main Streets Across the World — by global real estate consultancy firm Cushman and Wakefield. These are followed by Mumbai’s Linking Road, Kemps Corner and Colaba Causeway.

Khan Market, whose rentals have gone up by 35.7% from Rs 700 per sq ft per month in 2006 to Rs 950 in the quarter ended June 2007, became the 16th most expensive shopping location in the world — ahead of Tverskaya in Moscow and Wanfujing in Beijing. That’s a jump of eight places for the market that ranked 24th on the list in 2006. In India, it continues to be the most expensive market.


Delhi’s Khan Market, CP, South Ex and GK are the top 4 most expensive retail locations in India. Khan Market is now 16th costliest shopping location in the world in terms of rentals. CP, with 87.5% increase over last year, registered the highest rise in rentals anywhere in India.

Source: Economic Times

Stock Tips: Buy Bharti Airtel

Bharti Airtel looks like a good buy at current price. Short term target is around Rs 1000.

CMP: RS 900

Sunday, 11 November 2007

Bulls fail to stir some bluechips

The stock market is breathing octane these days. The Sensex has clocked new records as the indices attained new heights, but amidst the fireworks there still exist some losers — which remained untouched by the great euphoria witnessed in the Indian stock markets over the last 20 months.

Yes, you are right. We are talking about the laggards who remained bearish even as the bull raced ahead on Dalal Street from February 8, 2006 when Sensex for the first time touched 10K to October 29, 2007 when it touched the historic figure of 20K.

The majors from the BSE 100 which ended up gasping during the period include Hindustan Petroleum (HPCL, -23% ), Glaxosmithkline Pharmaceuticals (-19%), Hero Honda Motors (-16%), Cipla (-14%), Bharat Forge (-13%), Indian Oil Corporation (- 13%), Patni Computer Systems (-11%), Tata Tea (-3%) and Bharat Petroleum Corporation Limited (-2%).

Analysts believe that there isn’t just a singular justification for why they didn’t click when every other companies set the Sensex ablaze. But yes, they’ve been left far behind in the marathon rally at Dalal street. SundayET takes a snapshot of the top laggards during the great Indian stock run.

The following are some of the bluechip companies that didn’t get impacted by the bull run. Hindustan Petroleum Corporation: It is not surprising that HPCL figures at the top of the list, dipping by 23% in that time period. The petroleum sector has always been at the mercy of government policies, which is primarily the reason for its downfall.

“Ever since the disinvestment of these stocks backfired four years back, they were never part of the Sensex rally. Crude prices going over the roof didn’t help much either. The oil marketing companies are falling on the fundamentals too, which don’t look very rosy,” says Ashu Madan, national head, Religare, a broking company. Another reason for the underperformance was the lower subsidy provisioning.

Glaxosmithkline Pharmaceuticals: Next on the list comes Glaxosmithkline, which declined by 19% in the same period. Research analysts believe that the pharma sector has been traditionally lying low and its hey days are still to come. “Globally, the pharma sector has been underperforming. So, it doesn’t comes as a surprise that Glaxosmithkline hasn’t done well. Another reason for lagging behind is the strengthening rupee, since their profits are directly related to it,” says Shriram Iyer, head of research, Edelweiss Capital.

Source: Economic Times

Shares set to rise further in 2008: JPMorgan

Stock markets in India are expected to rise further next year but at a slower pace as high valuations and a fall in corporate profit growth limit gains, analysts at JPMorgan said. The Mumbai market's benchmark index is expected to rise to 22,500 points by the end of next year, up 16 per cent from Tuesday's close of 19,400.67.

The index has gained nearly 15 per cent in October, its biggest monthly gain in almost four years, taking its rise this year to 40 per cent. It had gained 47 per cent last year and 42 per cent in 2005.

Bharat Iyer, head of research at JPMorgan in India, said corporate profits, which had grown 25-30 a year for the past three years, would slow from a high base.

"You have challenges in the form of rupee appreciation, volatility in interest rates, etc. So you expect earnings growth to structurally slow down.

"It's still very attractive in absolute terms at 19-20 percent, but the fact of the matter is that you are coming down from 30 percent to 19-20 per cent, which is a step down."

He said infrastructure, engineering and construction and steel sectors were likely to perform well, while drug makers and telecoms were not expected to be as strong as they have been.

Source: Economic Times

Thursday, 8 November 2007

Re-enter IFCI

Both Sudarshan Sukhani and PN Vijay are of the opinion that this stock can be reentered at the current price for short term. I had given this recommendation when the price of this stock had fallen to Rs 77.

CMP: 83.60

Shiv-Vani Oil

Sharekhan has maintained a buy rating on Shiv-Vani Oil and Gas Exploration Services. They have given a target of Rs 480. This is an extract out of their report ."Shiv-Vani Oil & Gas Q3CY2007 results were ahead of our expectations. The order inflow was also healthy as the company has received orders of around Rs400 crore over the last three months and the order backlog has grown to over Rs 3,000 crore. The outlook for Q4 is encouraging with the commencement of the much-awaited Rs650-crore coal bed methane (CBM) project awarded by Oil & Natural Gas Corporation (ONGC). At the current market price the stock trades at 11.1x CY2008 and 8.7x CY2009 estimated earnings. We maintain our Buy call on the stock with a price target of Rs 480.”

CMP: Rs 380

Tuesday, 6 November 2007

Buy Reliance Petroleum

Reliance Petroleum is a good buy at this time. It has corrected a bit today and touched a low of Rs 205 today. You can buy this on declines with short term target of Rs 230-245. Keep a Stop loss of Rs 184.

CMP: 216

Status report: Neyveli Ligite

Neyveli Ligite touched an intra day high of Rs 180 today!! That is almost 35% increase from its recommended price of Rs 133. Congrats to those who bought this one!!!

BTW I am on my vacation and that’s the reason for infrequent posts :-)Will be back soon!!

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.