Equity SIP New Buzzword

SIP Systematic Investment Plan was already famous and proven in Mutual Fund context but now SIP has also come directly into Equity Stocks which is essentially Individual Stocks. 

Equity SIP is a new facility through which you can buy a script for a regular interval over a period of time for  specified amount or for a specified quantity.

Amount based Equity SIP

 Amount based Equity SIP is a SIP type wherein a fixed amount (or approximately the same) is invested in your desired scrip at each frequency

Quantity based Equity SIP 

Quantity based Equity SIP is a SIP type wherein a fixed quantity of shares of your desired scrip is purchased at each frequency.  

Currently few online brokers are providing this facility on select stocks. ICICI Direct is one of them.

Benefits of investing in Equity SIP are 

•     It is a disciplined investments approach
•     Accumulates wealth by investing smalls sums regularly
•     Spreads and averages your cost of purchase (by buying in both ups and downs)
•     Removes the risk of timing the market
•     Reduces the risk of market volatility
   

NTPC to gain if RIL-NTPC dispute heads for truce

Solicitor General recommended that NTPC be given gas at a concessional rate under a provision of the production sharing contract.

RIL can sell gas below market rate to government or government nominee so NTPC can get gas at $ 2.34 which was price quoted in 2004 tender.

NTPC is already working on the gujrat plants hoping to get the gas. Gas will be allotted to the plants which are expected to complete this year.

If NTPC gets price at lower rate this will improve profitability and secure gas for the plant in long term.

Might be good new for NTPC which is trading in a narrow range of 190-200 for past few months without any news trigger

Coal Block Development to get Boost

The Lok Sabha has cleared amendment of Mines and Minerals Development and Regulation Act (India) (MMDR) of 1957.

Currently coal blocks for PSU (public sector unit) and private sector companies are not allocated through bidding process. A screening committee approves the blocks. This will change and now there will be competitive bidding process.

PSUs are kept outside of bidding process like Coal India. Coal blocks will be developed faster as new players will pay premium based on bidding.

26 blocks are fully developed out of 206 allotted till now.

If private players get more blocks, power production will get a leg up and many companies planning to foray into coal based power plants will see interest in obtaining the coal block for captive purpose.

Blackstone invest in Moser Baer Power Project

Moser Baer India shares jumped 11% intraday closing 6.66% up.  Blackstone has invested 300 million dollar.

Moser baer is company involved with making cd/DVD/Blue ray disks. It is also in Solar power and Entertainment business . Now it is entering thermal power with plans to setup around 4000 MW in thermal and 1000 MW in solar.

Deepak Puri and Ratul Puri, who are the promoters of Moser Baer India Ltd has founded  Moserbaer Projects.

GMR Infra awake from Slumber

China Huaneng Group may be buying GMR infra stake in Intergen at about 1.4 Billion dollars. GMR Infra bought Intergen at 1.1billion dollars. Apart from making profit of 300 million dolllars GMR will use other money to reduce interest liability which was dragging the profits down.

Lower Intereset Outgo with higher revenue increase due to delhi airport t3 opening and restarting of barge mounted power plants are big plus.

Fund tie up for other airport and power projects will get a boost. If the deal goes through it will be a very big positive for GMR Infra.

Hopefully the bad days should be near soon and should start its upward climb.

Should be in a much better price by next quarter results.

GMR is up 4.5% in today's trade.

RIL Reliance Industries and Shale Gas

Shale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia. One analyst expects shale gas to supply as much as half the natural gas production in North America by 2020 [Source:Wikipedia.]


Illustration of Shale Gas


It's another fossil fuel boom in the making, although its cleaner-burning than coal, gas from shale still poses a severe threat to environmental security. Methods used for drilling that frees the gas requires the use of toxic chemicals that many fear could contaminate underground sources of drinking water that supply millions of people.



Reliance Industries believes that shale gas offers an exciting opportunity and that new drilling techniques are transforming the U.S. natural gas industry. Furthermore, the company estimates shale plays to contain in excess of 650 trillion cubic feet of natural gas.


Shale gas is emerging as a potential investment strategy, chiefly on the anticipated upsurge in demand for natural gas.


Natural gas is a clean energy source and is likely to replace coal.


Reliance has done 3 shale gas deals in 3 months.


20% stake in Carrizo's

40% stake in Atlas Energy's

45% stake in Eagle Ford Shale




Higher price of Shale gas is also attracting lot of interest and investment.



Shale gas investment will add profitability after 4-5 years but its an interesting space to watch out for in the coming years.

GMR Infra results Update.

 GMR Infra Q1 PAT up by 26% at Rs 28 cr


Revenue increased marginally but it was because barged mounted plant was getting shifted and its going to be running in fully capacity by August end.


This plant can contribute around 100 crore quarterly.


In 2 years operational capacity of power plants will go upto 2800 from 800 MW currently.

 Male airport to achive financial closure by September.



GM Rao said that debt ratio might increase more or stay same but not go down because many projects are in capital infusion phase.



According to some analyst Medium term target is 70 and stop loss is around 54.

DSP BlackRock Micro Cap Fund & DSP BlackRock Small & Mid Cap Fund

DSP BlackRock Micro Cap Fund / DSP BlackRock  Small & Mid Cap Fund



Sensex for past few months has been moving in a very narrow range. Small/Mid Cap and Micro caps is the area where we are seeing growth.


Its hard to cherry pick individual stock in this area. Also it is sometime subject to manipulation so swings are high.



For Small and Micro cap stocks I think its better to invest through mutual funds where they are focussed on it and manage the chrun properly.



MicroCap Fund was started as Closed Ended Fund but now has been made open ended fund and is open to subscription.



Till it was closed ended I was investing in Small and Mid Cap Fund but now I am also going to invest in MicroCap fund.



The investment objective of the scheme is to seek to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity-related securities, which are not part of the top 300 companies by market capitalisation.



It is high risk fund for people for higher apetite for returns. There is only growth option in this fund.


In the YOD( 16th July), the BSE mid-cap and small-cap indices have outperformed the Sensex. The BSE mid-cap and small-cap grew 10.12% and 12.99%, respectively while the Sensex delivered returns of just 2.81%.



Investor should have basket of funds some from largecaps, some diversified and some from small and mid/micro cap category to not miss any rally in one category.




DSP Black Rock Micro Cap Fund, a new entrant has also claimed CRISIL Fund Rank 1, in the Small & Midcap category.




Diversified funds have given returns in the range of 5-10% but micro cap funds recently have given returns in the range of 30%


The highest return of 34% has been generated by DSP BlackRock Micro Cap Fund.The fund has invested around 94% in mid- and small-cap stocks and less than 1% into large-caps.

Investors can subscribed some amount in this fund

GMR Infra Updates

GMR Infra has put the international power portfolio for sale. Intergen which operates power plants in US,Australia was bought by GMR in 2008 where it paid around 960 million dollars for 50% stake.

GMR is building number of power plants in India and also has a barged mounted plant.

Recently DIAL t3 terminal got opened which is build by GMR Infra. They are also planning to invest around $ 400 million for Male airport.

All its projects are long gestation and this stock can give returns in long term though slowly. Once the investment phase is over P/E ratio will improve and stock price will rise. Holding for atleast 2 years will give good returns

SJVN subscribed 1.83 times

The Initial Public Offering (IPO) of SJVN Limited which opened for subscription on April 29, 2010 will be closed today on Monday - May 3, 2010.


The IPO has received subscription of 1.83 times with total bids for 758380250 equity shares against the offer of 415000000 equity shares.

Parekh Aluminex Target acheived..

Parekh auminex as expected as almost doubled in last 3 months.

http://beyond-basics.blogspot.com/2010/01/parekh-aluminex.html ( Around Rs130)

Currently it is trading at 255.10           +17.70   +7.46%

 

Goenka Diamond & Jewels Limited IPO

Goenka Diamond & Jewels Limited is entering the capital markets with an initial public offering (IPO) of 10,000,000 equity shares of face value of Rs.10 each with a price band of Rs. 135- 145 per share. The Company is looking to raise in excess Rs. 1.35 bn through this issue. The issue shall constitute 30.93% of the fully diluted post issue paid up capital of the Company.

The issue appears attractive with an annualized FY10 P/E of 6.9x compared to an average of 15.7x for its peers (Shrenuj, Asian Star, Renaissance, Rajesh Exports and Gitanjali).

It has enjoyed a superior ROE (FY09) of over 46% compared to a peers’ average of 10%-18%.

I think we should go ahead and subscribe to the issue.

Irrational Exeburance in Primary Markets (IPO)

 Primary market is back in boom after lying low for quite some time. Other than PSU FPO or IPO. Private sector IPOs are getting subscribed more than 50-100 times. QIBs and NIIs are subscribing almost more that 100 times.

Is there a strong appetite or it is a signal that a bubble formation has started and its time to exit. Only coming time will tell whats the truth.

REC FPO though just managed to subscribed has given substantial gain from Rs 203 FPO price and current price of Rs 255. Retail got full allotment on 1 lac because of low response and are sitting on a healthy profit of Rs 25000.

NMDC is also around Rs 350 and retail is going to get at Rs 285 with gaurantee of almost full allotment.

Other IPOs are getting subscribed 40-50 times and getting allotment is almost luck or you might be lucky to get 1 lot which doesn't make much profit.

I think now is the time to think which company offers good long term benefits and go for it even though the IPO/FPO might not be getting subscribed. If your conviction is correct then you can make huge amount of money.

Lets see how the coming IPOs fare. Here are few which must be watched

#NMDC
# IL&FS Transportation Networks Limited
# PRADIP OVERSEAS LIMITED
# PERSISTENT SYSTEMS LIMITED
# SHREE GANESH JEWELLERY HOUSE LIMITED

New Affordable Housing Projects in Bangalore

Here are few Housing projects which are yet to complete and will be complete in few months or around 1-2 years

HM Capital (Marathahalli)

HM North City (Yahalanka)

SJR Unity (Marathahalli)

NItesh Flushing meadows (whitefield/ITPL)

Provident-WelWorth City (doddaballapur)

Kumar Prince Town (JalaHalli)

Westend Heights New Town (BTM Extension)

Patel Smondoville (Neotown)

Plama Heights (Hennur Road)

Rohan Mihira (Marathahalli)

Rohan Jharokha(old airport road)

Alpine Pyramid (Sahakar Nagar)

Alpine Eco (Marathahalli)

Profit Booking Time : Year End Coming

Stock Market rose quite a lot this year from last March to this March.
You would have made lot of money but if you were also invested in sectors which didn't perform or were laggards you would be sitting at some loss in those sectors like Telecom or recent IPOs like NHPC which are below initial offering.

To reduce tax liability this is the time to book losses in them to offset the profit made this year.

Others will start doing it or has already started and stock market also has peaked so this is the time to cut off the laggard stock from the portfolio and clean it up along with reducing the tax liability.

Jubilant Food's IPO Listing Rocked

As suggested on 16th January to subscribe to Jubilant IPO, the listing has rocked and stock gained 65% on listing and is 10% up again today.

Anchor investor has bought additional stake on listing and counter witnessed huge buying interest.

Hope the PSU IPOs and FPOs get a good response after lack luster response to NTPC. bad response can be attributed to weak market conditions and operators trying to beat the stock.

NTPC at this price seems to be a low risk even though it goes below FPO price. 10-15% annual gains are easily expected.

Infinite computers also good positive listing , Adani power which was priced at Rs 100 is also above the IPO price at 110 currently with 10% return.

Moser Baer at current price look attractive and GMR infra around Rs 50 or lower seems to be a good bet. It has lot of annuity and toll projects which will provide cash flow for next 20-30 years.

Lot to look out in the next few weeks. Rail Budget, General Budget, interest rate, food inflation and oil prices etc.
News from european/american markets is not too positive and tilting towards negative so next trigger has to come from internally to take the market to the intermediate high so I think in February market seem to be going no where overall with usual ups and downs with overall flatish so we can consider it as a traders markets and not investors for atleast this month till we get cues towards some direction.

NTPC FPO : 5th Feb Last day tomorrow

NTPC Limited (NTPC), India’s largest power generation company, has come out with a follow-on public offer (FPO) of 412,273,220 equity shares of Rs. 10 each at a floor price of Rs. 201 per share which is at a discount of ~Rs. 5 to the ruling market price, with the Government of India looking to raise in excess of Rs. 82.87 bn by divesting 5% of its stake in the company.




NTPC is the best defensive play in the Indian power sector considering its position of market leadership, strong balance sheet, high credit rating, efficient operational capabilities and stable cash flows. At the floor price of Rs. 201 for the issue stock appears to be at discount.


I think we should go ahead and subscribe to this issue.

IPO Allotment Status

Check IPO Allotment Status Here for Karvy

Check IPO Allotment Status Here for BigShare

Check IPO Allotment Status Here for Linkintime

Jubilant Foodworks IPO subscribed 30.68 times

Current IPOs
# Vascon Engineers
# Syncom Healthcare
# Thangamayil IPO
# Aqua Logistics IPO
# NTPC Limited FPO

Markets in coming days

As expected stock market has corrected and might correct more today seeing bad results from ICICI Bank , L&T. Baking and Engineering/Construction space will be affected.

Dollar hardening also has made carry trade difficult which will also reduce inflow.

This is what I wrote last week

"Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction."

This fall should help people to enter in good stocks who missed the recent rally

Hotel-Restaurant Stocks maybe in action this week

Jubilant which operates Domino's pizza has come up with an IPO with a PE around 15.

Other restaurant stocks like Indage Leisure, Sayaji Hotels, Kamath Hotels, Bhagwati Banquets & Hotels etc should see some action on the counter.

Indage Leisure has a current market presence  in the fine/casual dining, high end bars/clubs, Cafe and Bistros.

Kamath runs various kamat hotels and Orchid Hotel

Sayaji has hotels in Gujrat,Indore, pune and runs very successful Barbeque Nation restaurant.

Bhagwati has hotels and clubs in Gujrat and plans to expand in Tier-II cities.

Good Mutual Funds to buy now.

Here are few funds I like and I have invested

Large Cap Fund
DSP BR TIGER Fund
Reliance RSF Equity/Reliance Growth

MidCap fund
DSP BR Small & Mid Cap Fund
Sundaram SMILE Fund

Sectoral Fund
Reliance Natural Resources Fund
Reliance Diversified Power Sector Fund

I usually go for dividend fund nowadays because it is one way of profit booking when market has gained a lot. I do make sure that those dividends are reinvested at appropriate times so that I don't fall behind growth.

SIP is also a good option to invest. I usually invest regularly on my own across different funds which I think is good at a particular time instead of putting money in same fund every month. This is required for sectoral funds because sectorals funds can be volatile and the given sector wont be in flavour for all the time so need to switch between sectors one in a year.

What do you think are good sectors to bet on in 2010? For diversification you can buy sectoral fund from that sector so that you have various stocks of that sector in your basket.

Sub Rs 50 stock recommendation from various Analysts

Ashish Chugh recommends

• SSPDL(Srinivasa Shipping and Properties Development Limited) - Real Estate Play
• IFGL Refractories  - Value Stock
• Andhra Cements. - Value Stock 

VK Sharma recommends

• Indraprastha Medical
• Om Metals Infraprojects
• Timex
• MIC Electronics.

SP Tulsian recommends

• Donear Industries - Mid Term Pick
• Tourism Finance - Public Sector Stock
• Ugar Sugar - Small Cap from Sugar Sector

Ambareesh Baliga recommends

• Celestial Labs - (combination of a technology and a pharmaceutical company)
• Shasun Chemicals - APIs
• Compucom Software - education and e governance
• Radha Madhav Corporation - pharma packaging

Satish Betadpur recommends

• City Union Bank
• Hilton Metal Forging
• Himatsingka Seide
• Gammon Infra.

Current IPO

Avoid Infinte Solutions IPO.

Subscribe to forthcoming Jubilant foods

IFCI under F&O curb

IFCI was today banned for F&O trade.

Futures & Options For Dummies

It is expected that more stocks will come under curb..many stocks are hitting upper circuits and you can see lot of circuit stocks around. Lot of midcap and small cap are way above 52 weeks high.

Volatility has increased in the market and every has started giving recommendations. Punter stocks, penny stocks, stocks less than Rs 10 are back in flavour.

The Guide for Penny Stock Investing

When money has nothing to chase after large cap/mid cap, small cap and other value/growth stocks it chases these dud stocks which otherwise have no takers. This kind of situations tells us that market is in its last leg up medium term upmove.

Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction.

I will list some stocks which are monthly gainers/losers.

The Neatest Little Guide to Stock Market Investing

Monthly Gainers	Prev Price	Current Price	% Gain
Panchmahal Steel	68.5	168	145.26
Neha Internation	38.3	88.9	132.11
JMDE Packaging & Rea	2.85	6.53	129.12
Mahan Industries	18.06	40.35	123.42
Twentyfirst Cent	14.01	31.2	122.7
Aviva Industries	14.3	31.25	118.53
Invicta Meditek Ltd.	4.46	9.73	118.16
Hittco Tools Ltd.	7.8	16.75	114.74
Regency Trust Lt	14.33	30.2	110.75
Integra Capital	9.53	19.7	106.72
Pressure Sensiti	2.42	4.93	103.72
Subuthi Finance	18.75	38	102.67
Sungold Capital	6.61	13.39	102.57
Clutch Auto	43.85	81.9	86.77
Triveni Glass L.	7.2	13.19	83.19
Alpha Hi-Tech Fu	2	3.57	78.5
Lakshmi Mill Co.	1,397.65	2,400.00	71.72
M K Exim (India) L	10.44	17.45	67.15
Tayo Rolls Ltd	109.65	179.2	63.43
Linc Pen & Plast	44.7	72.85	62.98
Monthly Losers	Prev Price	Current Price	% Gain
JaiprakashAssociates	222.35	164.5	-26.02
Maruti Suzuki India	1,578.85	1,422.00	-9.93
HDFC	2,617.90	2,525.05	-3.55
Hindustan Unilever L	265.8	257.25	-3.22
Lupin Ltd.	1,435.00	1,393.00	-2.93
Hero Honda Motor	1,666.20	1,628.45	-2.27
Jindal St & Pwr	712.85	697	-2.22
Godrej Industries Lt	173.9	170.05	-2.21
Bajaj Auto Ltd.	1,742.70	1,706.50	-2.08
Jet Airways	550.55	539.5	-2.01
Nestle India	2,607.85	2,560.00	-1.83
GlaxoSmithKline Phar	1,603.65	1,575.00	-1.79
ITC Ltd.	251.85	248.2	-1.45
Cipla	345.7	341.1	-1.33
Piramal Healthcare L	396.5	392	-1.13
HDFC Bank	1,698.60	1,683.00	-0.92
Religare Enterprises	387	383.5	-0.9
L & T	1,680.80	1,667.00	-0.82
Balrampur Chini	135.75	134.8	-0.7
SBI	2,180.75	2,169.00	-0.54
P&G Hygiene&Health	1,737.85	1,730.00	-0.45
MMTC Ltd.	34,941.80	34,800.00	-0.41
Dabur India	163.15	162.5	-0.4

SEL Manufacturing

SEL manufacturing is a company of RS Saluja Group.

They are the manufacturers, exporters of all types of knitted garments. We have in house spinning, knitting, dyeing, Finishing and Garmenting to meet the demand of price conscious and quality conscious market. SEL do all types of knitted products. Basic Products include T-shirts, Polo shirt, Sweat shirt, Boxer shorts, Girls top etc. and  can provide bulk quantities. SEL manufactures 30-35 thousand garments daily.

The company is investing in high end fabric manufacturing and to meet growing demands it is setting up additional capacity.
With decades of expertise and excellence of meeting the discerning needs of niche client’s world wide, SEL Manufacturing Company Ltd. has laid out ambitious plans of product capacity augmentation to continue its proud contributions in the world of premium quality cotton - yarn, fabrics and garments.

It has global presense and it operating in most of the american,european , african and south asian countries.

Check out the global presense

The stock has book value of around 160 and is currently available at Rs 90. P/E ratio is also low of less than 3. Long term target can be expected to reach around the book value.

Karuturi Global

Karuturi Global  is India's largest rose exporter and has now expanded to  agriculture export business,food processing and IT .

It plans to grow tomatoes,cereal crops , fresh vegetables, palm oil and sugarcane in various african countries various it has been alloted land.

Company has around 600 acres of land for cultivation of roses.

It has acquired 7,65,000 acres of agriculture land for culivation and also has 239 hectares of land in Kenya and Eithopia for rose cultivation . It is worthy to note that mammoth land makes this company largest land bank owner in the work.

By 2010 it plans to produce 1 billion stems of roses.

It can reach Rs100 in 3 years time considering the growth plans

Overview from company's website.

Incorporated in 1994, Karuturi Global is today the largest producer of cut roses in the world, with are area of over 239 hectares under Greenhouse cultivation and an annual production capacity of around 555 million stems.

An integrated production model encompassing in-house plantation, cultivation and distribution capabilities coupled with a series of green initiatives make us one of the lowest cost producer of cut roses in the world. Almost our entire produce is exported to high-value markets such as Holland, Germany, United Kingdom, Italy, Singapore, Hong Kong, Taiwan, Bahrain, Muscat, Dubai, Australia, Japan, New Zealand, Brunei and North America, with a small portion sold in India.

Having established our strong presence in floriculture, we now aim to broad base our portfolio into a larger agri-produce basket. The acquisition of large tracts of land in Ethiopia has set the stage for us to evolve into an end-to-end agri-focused company.

Equipped with a robust and de-risked business model, Karuturi Global’s other fast-growing business realms are food processing, floriculture retail including a flower auction portal and information technology.

Company Website : http://www.karuturi.com

Indiabulls securities

Indiabulls securities seems to be good bet in the brokerage space. It has not participated in the recent rally from late November.

With year looking good ahead and increased stock market times, volume increase can improve topline and bottom line.

Most of the midcaps are near or above there 52 weeks high. This stock  is not near its 52 weeks high rather its almost half the price. Looking at the price and growth prospects it seems to be a value buy.

Parekh Aluminex

Parekh Aluminex is India's largest manufacturer and exporter of Aluminum Foil Containers (AFC). They are emerging as the leading name in AFCs in the entire sub-continent, being the first Indian company to receive ISO 9001:2000 certification from BVQI, UK. It is almost monopoly in its segment.

Company is growing at a rate of almost 50% on year on year basis. The same is expected for next few years. Revenues are expected to touch 600 crores.

It is available below book price and its PE is also attractive.

Parekh Aluminex also list under Forbes 'Best Under A Billion' company.

It can be bought at current price with a target of above 200.