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.