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

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%

 

Bartronics - Multibaggar stock

Current PE - 6.3
Current Price 76.
52 wk High - 252

Incorporated in 1990, Bartronics is a Hyderabad based company that started with providing solutions in Bar Coding, one of the oldest AIDC technologies, RFID, POS, Smart Cards working as AIDC division, RFID division, Smart Card Division and Retail-IT division in separate.

Booming AIDC/RFID/RETAIL/Smart Card Industry

The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.

RFID is the emerging technology for tracking goods and assets around the world. It is indispensable for a wide range of automated data collection and identification applications across the supply chain. Whether you are a consumer, industrial goods manufacturer, a logistics company, a retailer, home sales / services provider or health care provider, Bartronics provide the complete end to end RFID solutions automating the entire business process.

Bartronics is getting benefits from Govt technological initiatives. Railways is also looking at RFID implementation across trains in the country.

Bartronics has strong presence both in local and international markets. Bartronics has recently bagged order from singapore government for supply of 48,000 tags to Singapore housing development board.

It has also bagged order from DMC ( Delhi Muncipal Corporation) and expects huge revenue of 5000 crore in around 9 years.

Bartronics is expected to provide high CAGR in coming years. Good stock with healthy valuations.


Source : Company website

Alternate Energy

Suzlon Energy and Moser Baer are now top players in Wind and Solar Energy Business. Both have fallen greatly from their heighs and may still fall some more but the downside seems to be limited.

Oil price crashing had a big impact on this sector because when oil comes cheap investment in alternative energies decline. But this sector is going to perform in the long term because there is no alternative to alternative renewable energy.

US Obama has has hinted on promoting renewable energy and huge investments in this area. Economic slowdown will have impact on the order book of these companies and this seems to be a good time to buy these stocks for long term at relatively cheap prices.

Moser baer photovoltaic has bagged order from gujarat govt to setup roof top photovolatic installations and complete system will be installed by April 2009

Moser baer is also going to setup India's largest grid connected solar farm in Rajasthan.

Apart from Entering entertainment business through its home videos It is a big player in media devices. It is also trying to enter in DVD,Monitors and other conputer peripheral hardwares.

Suzlon has controlling stake in REPower which is a big wind energy player. It has got regulatory approval to raise 18 billion rupees for it ADR issue.

Currently in capital investment mode earnings will start trikling in coming years..

SREI Infrastructure Finance Ltd.

SREI Infra is involved in financing infrastructure projects in Power,Road,Aviation,Shipping & Railways which requires huge capital expenditure.
SREI Infra is currently quoting at its new 52 week low with a PE of 3.49

Srei Infrastructure Finance Ltd. is one of India's leading Non Banking Financial Institutions and the only private sector infrastructure financing NBFI.

In addition to infrastructure, Srei also offers a bouquet of allied financial services like capital market services, insurance broking and venture capital. These have not only helped to serve existing customers better, they have also grown into healthy stand-alone services.

Srei has entered into a strategic alliance with BNP Paribas Lease Group, a subsidiary of BNP Paribas of France, for equipment financing business through a joint - venture.

SREI subsidiary Quippo is involved in Telecom tower Infrastructure services.

Liquidity crunch and high interest rates took tool on this stock which is now very cheap. Though overall downside cannot be gauged, fresh exposure can be taken in small lots to accumulate at lower levels.

Source: company website

JM Telecom Sector Fund

JM Telecom Sector Fund

This fund has the right mix of stocks which can perform in this economic environment. Recent recession has bought most of the stocks at attractive level. P/Es are low and they are resonably priced. Only few sectors are showing growth others are in contraction mode. Telecom sector will still continue to grow and add subscribers. though their is cut throat competition , growth in broadband , 3g and other services will drive revenue and growth.

This fund has right mix of stocks with huge weightage on Bharti(Airtel),Reliance Communcation(Rcom), Tanla,Geodesic, Tulip IT (Tulip Telecom) which are now resonable priced and poised for some more growth.

NAV of this fund is below 6 currently and can be bought in few lots for 2-3 years time frame. It has a small Asset size of about 4 crores so it can be nible footed as compared to the bigger funds in terms of churn.

Rolta India - Stock Coverage

In current turmoil in stock market and not so good outlook for Indian IT industry which sources its revenue mainly from US and somewhat from Europe, the IT stocks are out of flavor. nearly 40% of the revenue comes from BFSI segment which has collapsed.

One stock which stands apart is Rolta India. It is a market leader in providing specialized IT-based solutions toe the geospatial and engineering sectors.Rolta has broadened its engagement and geographic footprint with strategic joint ventures with Stone & Webster and Thales.
It has a near monopoly in the verticals it is playing.
* 70% share of Indian GIS market
* 90% share of Indian EDA market
* 95% share of Indian Defence GeoSpatial market

Rolta provides a full complement of specialized services in the following areas:

Information security, software packaging and testing, ERP consulting and integrated CAD/CAM /GIS services

Animation,modelling, programming, interactive media. and game design solutions

Fully integrated C4ISTAR for armed forces

Global leader in IT-based Geospatial, Engineering Design and information security and defence solution

End-to end geospatial and photogrammetry solutions for diverse applications and industries

Engineering design and automation solution for the energy, ship building and industrial segments

I don't want to give a target price for this stock nor I have a right price for you to enter because I cannot judge the bottom of stocks in current scenario. Logic doesn't follow in fearful market. But if someone wants to be in the IT world in a niche segment which is growing they can take an exposure to this stock.

Rolta India can also benefit from the nuclear deal signed by India. It is aiming to provide engineering design and automation solutions to EPC players. L&T and BHEL are already its clients who are eyeing a huge pie in the nuclear business oppurtunities.

source : rolta india website, hindu business line

Infrastructure Funds and Sector Overview

Equity markets are on high for past few years and this has woken up the mutual fund industry which was in lull.
Because of stunning stock market performance, returns on lackluster mutual funds is also glittering.
This has prompted various AMC (Asset Management company) to mop up new money through various New Fund Offers.
Sectorial Funds can outperform the market if the particular sector is of current fancy.
Same is the case with Infrastructure.


Infrastructure in general has tremendous scope for growth as our country needs huge developments in that area.
Fund houses are trying to cash in on this boom.

Following list shows various sectorial/thematic infrastructure fund from various fund houses.

Fund
AIG Infrastructure & Economic Reform Fund
Birla Infrastructure Fund
Canara Robeco Infrastructure
DBS Chola Infrastructure Fund
Escorts Infrastructure Fund
HDFC Infrastructure Fund
ICICI Prudential Infrastructure Fund
Kotak Indo World Infrastructure Fund
Lotus India Infrastructure Fund
Principal Infrastructure & Services Industries Fund
Sahara Infrastructure Fund - Fixed Pricing
SBI Magnum Infrastructure Fund - Series 1
Tata Indo-Global Infrastructure Fund
UTI Infrastructure Advantage Fund
UTI Infrastructure Fund

Investors has lot of options to choose from. He/She needs to be prudent in making choosing the right fund of his choice.
Lot of money is coming to this sector and fundamentally this is good investment.
It can give sustained growth for few years to come.

As we have discussed about the rewards from this sector, we also need to address the risk.

Risks
High growth may not be sustainable and may slowdown.
Competition is increasing because of lot of interest.
Many Indian companies are in fray with multinational joining too in the race.
Margins are under pressure because of fight to bag the project under their banner.
This poses execution risks. Bidding lowest [sometime unreasonable low] poses high implementation risk.

Stocks
GMR Infra
Punj LLoyd
JP Associate
Bhel
L&T
RIL
Few Power Generation and Utility companies.


You can check the order book, execution capability and funding ability of the company before zeroing or finalizing any particular stock.

Hope now after reading this post you will be more informed about investing/diversifying into infrastructure stocks/funds

ICICI Bank

ICICI BANK

I was soon going to post a recommendation on my blog about this favorite stock of mine....

Like Punj lloyd is future L&T then I see ICICI bank is future Citibank.

Today ICICI Bank has given good news regarding unlocking value by listing its various subsidiary.

ICICI Bank will list at least four of its subsidiaries and the process could commence within six months, starting with its brokerage arm ICICI Securities.

This holds very good news for ICICI's shareholders

Happy Investing..

Housing Development & Infrastructure (HDIL)

Recommendation from my friend Deepak Garg.

Housing Development & Infrastructure (HDIL)

CMP Rs1,141

1 year Target Rs. 2000

HDILis a real estate development company with significant operations in Mumbai Metropolitan Region. Its business focuses on Real Estate Development, including construction and development of residential, commercial & retail projects, slum rehabilitation and development, land development including development of infrastructure.

It is a part of Wadhawan group which has been involved in real estate development in the Mumbai Metropolitan Region for almost three decades. Its residential project consists of apartments, towers, large multi-purpose townships which are sold to individual customers. It haspresence across all key segments – residential,commercial, retail, SEZs and particularly SRS

It is seeking to develop projects in other locations including Kochi & Hyderabad. Apart from residential projects, it is also considering expanding into hotel projects, special economic zone developments, mega structures, complexes which are large scale mixed use retail, commercial and residential development.

It has a significant upside potential from GVK Slum Rehabilitation Scheme (SRS) and upcoming special

economic zones (SEZs). HDIL has development pipeline of 120mn sqft (excluding GVK SRS and SEZs). It is also developing 276 acres of slum land adjacent to Mumbai airport.

HDIL’s presence in the Mumbai property marketand expertise in SRS will help it capitalise on the strong demand in the region, which has huge land shortage.

This makes it lucrative as a long term stock.

Good Telecom Bet : JM Telecom Sector Fund

Are you confused whether to buy Reliance Comm or Bharti Airtel.
Do you want to be part of telecom growth story.

Here is a mutual fund which can help you do the same with not putting all eggs in one basket.

I came across with Mutual Fund few days back which I found interesting.

It has both bharti and reliance Comm as 30% each in its portfolio.

Other telecom and telecom related IT stocks are

JM Telecom Sector Fund

Company Percentage

Bharti Airtel 33.9

RelianceCommu.Ltd 29.61

Tulip IT Services Lt 10.29

Tanla Solutions 8.64

Geodesic Infor.Syst. 6.18

Tech Mahindra Ltd. 5.52

MTNL 3.98

Sasken Comm.Tech. 2.14

All stocks are good in their space and expected to give good returns. Good fund to keep for 2-3 years expecting good returns.

Reliance Communications

Reliance Communications Limited is India’s largest integrated communications service provider in the private sector with over 38 million individual, enterprise, and carrier customers.
They operate pan-India across the full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. They also have an extensive international presence through the provision of long distance voice, data and internet services and submarine cable network infrastructure globally.

Principal Operating Companies
Reliance Communications Limited is a major operating company and is also the holding company for the other major operating companies in the Group. Reliance Communications provides CDMA-based wireless, wireline, broadband, and long distance services in India and overseas. Its major assets are the CDMA wireless network, transmission networks used in its business, and the contact centres.

FLAG Telecom Group Limited (FLAG) is a subsidiary of Reliance Communications. FLAG provides international connectivity services and infrastructure. Its major assets are the FLAG Atlantic, FLAG North Asia Loop, FLAG Europe Asia and FALCON submarine cable systems. Subject to completion of the acquisition, Yipes will be held through FLAG.

Reliance Telecom Limited (RTL) is a wholly owned subsidiary of Reliance Communications. RTL provides GSM-based wireless services in 8 service areas, and owns the GSM wireless networks in its service areas.

Reliance Communications Infrastructure Limited (RCIL) is a wholly owned subsidiary of Reliance Communications. RCIL provides wireless multimedia (Reliance Mobile World) and internet access (Reliance Netconnect) services to customers of Reliance Communications.

Reliance Telecom Infrastructure Limited (RTIL) owns, operates, and develops telecom infrastructure, primarily consisting of wireless communication sites and towers. It currently owns virtually all of the towers used by Reliance Communications’ CDMA and GSM wireless networks and is developing additional towers to meet the needs of Reliance Communications and other customers. RTIL is currently a subsidiary of Reliance Communications. On July 19, 2007 Reliance Communications announced that it had sold 5% of RTIL to seven international institutional investors for a cash consideration of US$337.5 million.

Tech Reliance will be a brand new company apart from his existing BPO arm Reliance Infostreams.


Tech Reliance would now operate as a part of Reliance Communications and would be later seperated off to function as a seperate entity.
Reliance Anil Dhirubhai Ambani Group (ADAG) companies spends between $400-500 million on IT services for all related ventures and the step could possibly save costs and also step up the consultancy aspect of his new age business.


Simple Investment Rationale
1. Growing telecom industry, pan india GSM and CDMA coverage.
2. Value Unlocking in Tower Business
3. Value unlocking in Internation businesses like FLAG and Yipes.
4. Value unlocking in Tech Reliance
5. Value unlocking in Reliance Infostreams


Long term stable stock a must in every portfolio.

Punj Lloyd research report

Please follow the link to get the research report of my favorite stock - Punj LLoyd.

Punj Lloyd - Research Report

Stock Pick : Aurobindo Pharma

Aurobindo Pharma was born of a vision. Founded in 1986 by Mr. P.V.Ramaprasad Reddy, Mr. K.Nityananda Reddy and a small, highly committed set of professionals, the company became a public venture in 1992. It commenced operations in 1988-89 with a single unit manufacturing semi synthetic penicillins (SSPs) at Pondicherry.

Aurobindo Pharma had gone public in 1995 by listing its shares in various stock exchanges in the country. The company is the market leader in semi-synthetic penicillin drugs. It has a presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc.

Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes.


Over the years, the Aurobindo Pharma has evolved into a knowledge driven company. It is R&D focused, has a multi-product portfolio with multi-country manufacturing facilities, and is becoming a marketing conglomerate across the world.

Aurobindo Pharma created a name for itself in the manufacture of bulk actives, its area of core competence. After ensuring a firm foundation of cost effective production capabilities and a clutch of loyal customers, the company has entered the high margin speciality generic formulations segment, with a global marketing network.

The formulation business is systematically organised with a divisional structure, and has a focused team for each key international market. Aurobindo believes in gaining volume and market share in every business/segment it enters.

Aurobindo has invested significant resources in building a mega infrastructure for APIs and formulations to emerge as a vertically integrated pharmaceutical company. Aurobindo’s five units for APIs and four units for formulations are designed for the regulated markets.
[source : company website]

Aurobindo Pharma will go for a series of filings - totalling some 250 — in regulated markets, mainly in the US, in the next three years to tap emerging opportunities and to create new ones.

Aurobindo is also preparing for a major foray in Japan which is the world’s third-largest pharmaceuticals market after the US and Europe. However, though Japan is a huge branded generics market, Aurobindo is looking to pitch for the unbranded generics where the margins are huge[source DNA]

This stock seemed to have bottomed out and is trading at around 8-9 PE. This is very cheap for a high growth good stocks.

While most of its peers are trading at around 25-30 PE like cipla and ranbaxy. This stock can give great returns in next 1-2 years from current market price .

Mint money!! :-)

Tops pics for 2008 : 1 year view

Some more stocks which you can buy from 1 year perspective

1. GMR
2. Punj LLoyd.
3. Reliance Energy.
4. Indian Hotels ( 2 years)
5. Reliance Comm.

Stocks to buy now

Are you upset after the current fall??

or Do you see this as an opportunity to buy stocks which you always wanted to???

Please don't panic and buy fundamentally good companies.

Currently following stocks are buys :-

1. RIL
2. BHEL
3. Larsen
4. GMR Infra
5. RCom
6. Bharti
7. ICICI Bank.

Bangalore Property

Now is the time to buy property in Bangalore.

With interest rates peaked and over capacity problem, bangalore housing properties are showing 25-30% decline.

Prices are quoted almost 1000rs per sq feet cheaper.

For a 1000 sqfeet house its almost 5-10 lacs cheaper :-)

In an years time interest rates will come down making your floating interest rate EMI less.

With lower interest rate more people will chase property and will make these properties again expensive even with lower interest rate.

What you gain now?

1. Lower price for the property.
2. Easy availability making your choice wider.
3. Making your priced possession cheaper going forward with lower interest rate.
4. Faster appreciation from current depressed prices.

Read more.....

http://www.rediff.com/money/2007/dec/12bang.htm

Sectorial Mutual Funds

Some Sectoral Mutual Fund Pics for 2-3 years

• BIRLA GEN NEXT FUND GROWTH
• Canara Robeco Infrastructure
• Birla Infrastructure Fund
• Reliance Media & Entertainment Fund Growth Plan
• UTI Banking Sector Fund
• Reliance Power Sector Fund
• SBI Magnum Tax Gain
• Tata Infrastructure Fund - Growth
• UTI Energy Fund
• UTI Infrastructure Fund
• UTI-India Lifestyle Fund

Note :- Funds are not in order of preference.

PSTL - Multibaggar stock

Pyramid Saimira Theatre Ltd.

"PYRAMID SAIMIRA" Group is one of the India’s largest entertainment group spanning across four countries (India, Malaysia, Singapore and USA). Its business includes Film Production, TV Content Production, Theatres (exhibition). Currently it is the largest theatre chain company in India, rising to become world’s largest theatre chain company shortly.

Its Production Division is producing concurrently more than six films and plans to produce 50 films in all Indian languages. Its TV Content Division will produce more than 16 hours of original programming per day, making it the largest TV content supplier in India. Pyramid Saimira Group plans to become a giant in the entire entertainment industry’s sphere and also will become one of the largest content agglomorators of international films in Asia / Pacific region. It operates theatres in four countries and produces films in six languages.

RIL - A true wealth creator

The oldest wealth creator.

Whats a portfolio without RIL. RIL is the most widely held stock in the world!! A feat in itself.

With interest in diverse industries like petrochemicals,oil and gas, polyester, retail, textile, SEZ, this behemoth is the largest private sector company in India with Highest market capitalization.

Investors have gained immensely from this company from decades and people will vouch for it.

Recent News
1. Global Acquisition plan of more than 10 billion dollars.
2. Entering Uranium Exploration business.
3. Huge expansion in retail with investment in tune of 25000 crore.
4. Biggest refinery to be started in March 8 months ahead of schedule.
5. Oil and Gas Exploration with huge success rate in KG basin.
6. Developing multi-product SEZ in gurgoan and mumbai.
7. Entering Jewellery business.
8. RIL ,GAIL joining hands for petro complexes abroad.

I am not delving too much into details of this company as every one knows about it.

All I would say is that as always it is geared -

"Towards A Quantum Leap"