Superstar Gems

Market Update 25/11/2011

2011-11-25T10:42:00.002+05:30

Mkt Update 25/11/2011 : Investors sitting with cash could now start buying A Grade stocks. I would deploy at least 50% of my cash in building a solid portfolio now. A year end rally may be on the cards.

Cheers!

The Carnage in the Market

2011-11-23T14:13:00.003+05:30

There is blood on the streets and everyone's thinking when will this carnage end? Stocks across the board have fallen anywhere between 50 to 90% in the last one year irrespective of their fundamentals. Is this a synchronized bear cartel hammering that is happening across the globe? It could be. Or it could be a natural manifestation of the socio-economic-political problems that the world is going through at this time. Remember the Mayan calendar ends on 21.12.2012. Is the current carnage a pre-cursor for things to come? Is apocalypse coming?

There is unrest in many parts of the world. There is a huge gap between the rich and the poor. The concentration of power & wealth is right now in the hands of a few. Things are coming to a head for a final, all out battle between the haves and the have nots. So when the rest of the world is in turmoil, it would be foolhardy to expect a smooth ride in the stock markets. The erstwhile normal bullish/bearish cycles have shrunk considerably and volatility has risen multifold.

One thing is certain. The world is changing, and it's changing very rapidly. So the best we can do is to be ready for change. A new scenario will emerge out of the current turmoil and only those who are adaptable will survive.

Cheers!

Hot Pick : CREW B.O.S. PRODUCTS LTD

2011-11-01T13:56:00.002+05:30

Last time I had recommended this stock in 2009, it went up 12 times in
approximately one year. See the given link to the old post :

http://superstargems.blogspot.com/2009/02/hot-pick-crew-bos-products-limited.html

Now this stock is again available at a mouth-watering price. I would accumulate
this stock as much as I can. Current price :35-36, Target price :100+
Time frame : 1year

Cheers!

Hot Pick : GTL LTD. BSE Code 500160 NSE Code : GTL

2011-09-15T12:32:00.001+05:30

Not much is required to say about this company, GTL, which is quite a well researched stock and followed extensively by experienced market movers & shakers.

For info about the company, go here : http://www.gtllimited.com

So I'll come straight to the point. This stock used to trade consistently at 462 levels not so long ago, but was hammered down to 120 levels in a single day. Currently trading at a mouth-watering price of just 63.50, the POTENTIAL FOR UPSIDE IN THIS STOCK IS HUGE! The latest news on the company is that there is going to be a lenders meeting on the 19th September which will take forward the CDR process. The management has also proposed a DIVIDEND of 10%. The company is in the booming Telecom and Cell Towers business and there are number of interested Buyers for this company should it come up for sale. Among those rumored to be interested in buying this company are VIOM Networks (TATA group), Srei Infra, Reliance ADAG (Anil), Reliance Ind (Mukesh), and WIPRO (Premji).

This is a low risk and high return stock which should not be missed. The BOOK VALUE of the stock itself is 132.
Cheers!

Hot Pick : Alok Industries Bse Code : 521070 Nse Code : ALOKTEXT

2011-08-19T15:33:00.001+05:30

Time to re-visit Alok Industries. Last time I had recommended the stock at the price of 21 it went straight up and made a high of 35. Currently the stock is quoting very cheap at around 16.50. Book Value itself was 34.48 in March,2010 Source : http://www.moneycontrol.com/financials/alokindustries/balance-sheet/AI54 The current Book Value would be even more. Right now this stock is trading so cheap only because of the depressed market sentiment throughout the world markets.
It is currently trading at a ridiculously cheap PE ratio of just 3.4. The fair PE Ratio for such a company should not be less than 7. Which gives us a target of around 35-36 in the medium term. Not only is this stock trading at very low PE levels, technically also it looks ripe for a big bounce. The management is looking to reduce its debt levels and has aggressive growth plans. Alok Industries is a fully integrated textile company and is amongst India’s largest textile manufacturers. It has state of the art manufacturing facilities and boasts of the highest quality standards. Moreover, they have a land bank in Mumbai valued at 2000 crores plus. They are going to sell this land within this financial year and all this money will go into retiring its debt. The Promoters are using the opportunity presented by the weak global sentiment to increase their stake. A dividend has also been declared.

This stock is a potential multi-bagger for seasoned investors.

Company website : http://www.alokind.com/

Hot Pick, Potential Goldmine : Koutons Retail India Ltd. Bse Code:

2011-07-02T10:58:00.001+05:30

Koutons Retail India Ltd. had seen a stupendous rise in the retail sector in the last decade. It has built a brand name for itself and was the pioneer in this business. In 2007 they came out with an IPO priced at Rs.415 per share. The issue got over subscribed and the stock traded for more than double the issue price after listing. They have built a chain of over 900 stand alone stores and has a pan India presence.

But the company has hit upon hard times since the last one and a half years, mainly due to too fast expansion and bad debt management. The price of the share subsequently nosedived. At present, the scenario is that the company has initiated a CDR (Corporate Debt Restructuring) plan and the management is trying to salvage the situation and get the company back on track. The price of the share has fallen to an abysmal level of 26.50 right now. I reckon this is a stock aggressive investors & traders can pick up for a big bounce. If the CDR process gains momentum then this might even turn out to be a good long term investment. According to knowledgeable people, the Brand Value of 'KOUTONS' itself is worth much more than the current share price. So this is a stock which I would be willing to take a punt on. If it works, it could give huge gains.

Company website : http://www.koutonsparivar.com

Cheers!

Hot Pick : Eros International Media Ltd. Bse Code: 533261

2011-03-08T14:26:00.002+05:30

Eros International Media is a global player in the Media business operating on a vertically integrated studio model controlling content as well as distribution & exploitation across all formats globally, including cinema, digital, home entertainment and television syndication.

Established in 1977, Eros has over three decades of market leadership in creating a global platform for Indian cinema. The group has an enviable distribution network that spans across 50 countries and over 27 dubbed foreign languages, with offices in India, UK, USA, Dubai, Australia, Fiji, Isle of Man and Singapore. Eros has built a successful business model by combining the release of a portfolio of over 70 new films every year with the exploitation of a valuable film library of over 2000 film titles, making it undisputedly one of the largest content owners in the business.

In 2006, Eros plc, the holding company of the Eros Group, became the first Indian media company to obtain a listing on the Alternative Investment Market (AIM) of the London Stock Exchange.

The company came out with an IPO last year at a price of Rs. 175 per share which was heavily over-subscribed and it listed at a price of 213. At current price of 140, it is available at a massive discount to it's Ipo listing price. I believe this is only due to the current subdued overall market conditions, and fundamentally, this company is very sound. The company has been posting good Earnings consistently and the share is available in a single digit PE ratio, which is a steal for a front-line Media stock. The company has at least 10-12 BIG releases lined up this year. Films like Game starring Abhishek Bachchan, Zindagi Milegi Na Dobara, starring Hrithik Roshan, Abhay Deol, Mausam starring Shahid Kapoor, Ra-One starring Shahrukh Khan, Rana starring Rajnikant.....and the list goes on. To my mind, it's a great investment buy at current price and has the potential to give Multi-bagger gains.

Company websites: http://www.erosentertainment.com and http://www.erosintl.com

Cheers!

Hot Pick : Geodesic Ltd. Bse Code : 503699

2011-01-03T14:35:00.003+05:30

Geodesic Ltd (formerly Geodesic Information Systems Ltd) was incorporated in 1999 by Pankaj Kumar, Kiran Kulkarni, Prashant Mulekar and Mahesh Murthy. A publicly traded company, Geodesic is listed on the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and its Foreign Currency Convertible Bonds (FCCB) is on the Singapore Stock Exchange. With twelve offices spread across the globe, four marketing partners and 525 employees, Geodesic earned revenues of US$ 133 million and a net profit of US$ 52 million during FY 2009. Geodesic's first half of 2010 revenues stood at US$ 60 million with a net profit of US$ 24 million.

Geodesic's real time content, communication and collaboration platform, in conjunction with a powerful Customer Alignment and Relationship management (CRM), works seamlessly across the web, desktops and mobile devices. The flexible and scalable platform addresses both the retail and the enterprise segment, and has been well received by the banking and financial services industry, portals and publishers, enterprises including SMEs, mobile device manufacturers, telecom operators and retail mobile users.

In its constant quest to evolve and expand its suite of products and solutions across segments and new geographies, Geodesic acquired

•Picopeta Simputers Pvt Ltd, a Bangalore-based company, engaged in building hand held devices and solutions for the developing world.

•Engage Solutions, a Hong Kong-based software solutions company for its comprehensive Customer Alignment and Relationship Management solution.

•Swedish firm, Clangula IT to address the lucrative North European markets and work closely with handset manufacturers.

•E Dot Solutions, a web 2.0 company engaged in large portal deployments.

•Chandamama India Ltd - the number 1 Indian children's print magazine for the purpose of acquiring content - digitizing and mobilizing it to address the growing retail mobile users.

•Interactive Networks Inc., a Latin America-based software provider of advanced instant messaging and value added solutions. This acquisition expanded Geodesic's product profile and reach beyond India, Europe, Asia and the US into South America and Africa.

A proud recipient of several international awards including Deloitte Touche Tohomatsu Fast 50 and Fast 500 Asia Pacific for five consecutive years, Red Herring 'Top World 100' small cap technology companies in 2005, Geodesic has been featured in Forbes 200 'Best under a Billion-Asia Pacific' for 2008 and 2009.

Geodesic's Mundu IM and Mundu Radio have been adjudged as the one of the top 10 and top 12 mobile products by C|net and PC Magazine respectively, not to mention Mundu IM winning the best mobile internet service at GSM Asia for the year 2009.

Geodesic recently made a buy back offer at a maximum price of Rs.150 per share. It's 52 Week high is 147 plus, and currently trading at a mouth-watering price of just 83, this stock is going to be a Fund Manager's delight in the coming year! The fundamentals of the company are excellent with Half year eps for current financial year at 17.85 already in the bag. The expected eps for full year is likely to be in the Rs.35-40 range, this stock is currently available at a PE of less than 3! PE ratios of peer companies range from 12-25. This tells you how much scope for appreciation is there in this stock. The stock should ideally trade in the Rs. 450-500 range based on current fundamentals. This stock is definitely a potential multi-bagger for 2011. Happy investing & Happy New Year!
Cheers!

Company website: www.geodesic.com

Mindblowing Results Posted by Southern Ispat & Energy Ltd. BSE Code: 531645

2010-11-29T13:31:00.002+05:30

The Board of Southern Ispat & Energy Ltd. have just declared the Audited Results for 15 months ended June 30, 2010. Income from Operations and others has gone up from 392.61 million to 3288.71 million. That's an almost 900% jump! Cash EPS (earnings per share) has gone up from 1.39 to 8.55! WOW! If the company maintains this scorching pace of growth in the December quarter also, then this stock should quote at a price of 66 in the next six months. And right now, the stock is available at dirt cheap levels, due to the overall market correction. VERY STRONG BUY.

See the results here for yourself : http://www.bseindia.com/xml-data/corpfiling/AttachHis/Southern_Ispat_and_Energy_Ltd_291110_Rst.pdf

Potential GOLDMINE : Southern Ispat & Energy Ltd. Bse Code: 531645

2010-11-01T12:37:00.003+05:30

Southern Ispat & Energy Ltd. has declared its results for the quarter ended September 2010. Total income came in at Rs 113.24 crore as compared to Rs 32.3 crore, a 251% jump YoY. It reported an 879% jump in net profit of Rs 7.34 crore versus Rs 75 lakh, YoY. In an interview with CNBC-TV18, Vivek Agarwal, CMD, Southern Ispat & Energy gave his perspective on the quarter gone by and the road ahead. I will encourage you to go here to see/read the full interview with the CMD, and understand its impact :

http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=495548

Founded in 1995 as SOUTHERN ISPAT LIMITED by Agarwal Group. The name of the Company was changed to SOUTHERN ISPAT & ENERGY LIMITED with effect from 18th September 2008. SIEL is engaged in the manufacture of Steel Billets based out of Kerala. From its humble beginning 15 years ago as a steel billets manufacturing company, SIEL is diversifying itself in to a chain of businesses in steel sector and is all set to became the only integrated Company manufacturing from iron ore to machine flanges under one roof. They are looking at an acquisition in Gujarat, a steel plant which is into alloy steel flanges. So that will be another move. To cater to all this they are looking for a mine in Chattarpur district which they will be signing in the next week. So the acquisition of the plant in Gujarat and the iron ore both they will be signing in the next week.

This share has seen highs of 48.60 as recently as Jan, 2010. And currently trading at just 11.50 at a very low single digit PE ratio. It's trading at a massive discount to even its current Book Value. From all parameters, this stock is a SCREAMING BUY right now! I will not be surprised if this stock goes on to be the Multi Multi-Bagger of the year 2011. A potential GOLDMINE for sure!

Company website : http://southernispatltd.com/index.html

Cheers!

Potential GOLDMINE : K Sera Sera Productions UPDATE

2010-10-25T14:18:00.003+05:30

K Sera Sera Productions has just released its results, and they are very good. The company has posted an EPS of 2.03 for Sept qtr. Half Year EPS already at 3.24. With annualized EPS of 6.5, this share is trading at a ridiculously cheap PE ratio of just 2. No other media company is available at such a cheap PE ratio. Average PE ratios of most media companies range from 15-30. Even if we give a conservative PE ratio of 10 to it, then the stock price should be at 65 (6.5x10=65).

Apart from the stupendous results, the company has also announced the following along with its results:

1.K Sera Sera Miniplex Pvt Ltd (a wholly owned subsidiary of K Sera Sera) has successfully tied its presence for miniplex theatres in 60 districts with 128 screens across India.

2.K Sera Sera Technologies Pvt Ltd (a wholly owned subsidiary) after successfully developing its mastering software is now conducting trial runs and would be commercially launching the technology under the brand name 'skycinex' in near future. Further, the company intends to convert about 3000 existing cinemas in India into 'skycinex' technology within a span of 3 years.

3.K Sera Sera Productions FZE, Dubai (a wholly owned subsidiary) announced the successful establishment of its wholly owned Australian company under the name of K Sera Sera Holdings Pty Ltd. (ACN No. 146 219 865). The main objects of this new subsidiary inter-alia are mining, oil and gas, natural resources and acquisition on a global platform.

4.K Sera Sera Box Office Pvt Ltd. (wholly owned subsidiary) is releasing its forthcoming film titled, '332 Mumbai To India' on 19th November, 2010.

5.K Sera Sera Productions FZE, Dubai (wholly owned subsidiary) have planned the launch of its B2C online shopping portal, 'kbazzar.com' in early November, 2010. This shopping portal will host approximately 10 million products ranging from books to cars.

6.Since the company is now a diversified entity with presence in various sectors, it is prudent to change the name in line with the new image. Appropriate steps are being taken for the same.

In light of the above stated corporate developments in K Sera Sera, the stock is a potential GOLDMINE. I would ACCUMULATE.

Website : www.kserasera.com

Cheers!

Hot Pick : ALOK INDUSTRIES BSE CODE : 521070 NSE CODE : ALOKTEXT

2010-10-11T14:33:00.002+05:30

Time to re-visit Alok Industries. Last year I had recommended the stock at the price of 13.60 with an initial target of 25, which was immediately met. Currently the stock is quoting very cheap at around 21.60 levels. Book Value itself is 34.48 (March,2010) Source : http://www.moneycontrol.com/financials/alokindustries/balance-sheet/AI54

Not only is this stock trading at very low PE levels, technically also it looks ripe for a breakout after a long consolidation. The management is looking to reduce its debt levels and has aggressive growth plans. Alok Industries is a fully integrated textile company and is amongst India’s largest textile manufacturers. It has state of the art manufacturing facilities and boasts of the highest quality standards.

This stock is a potential multi-bagger for seasoned investors.

Company website : http://www.alokind.com/

Potential GOLDMINE : Cronimet Alloys India Ltd Bse code: 532990

2010-10-01T12:02:00.002+05:30

Cronimet Alloys India Ltd (previously GMR Ferro Alloys) is a ferro alloys company, engaged in the manufacture of high carbon ferro-chrome for use in the stainless steel industry. It was created by GMR Industries Ltd by spinning off its metallurgical division in April 2006. It has a high carbon ferro-chrome manufacturing facility in Srikakulam district of Andhra Pradesh., and has an installed capacity of producing 25,000 MT ferro chrome in two grades, high silicon and low silicon.

Cronimet Mercon Invest Ltd (a Dubai based MNC) has completed the acquisition of GMR Ferro Alloys and Industries Ltd, part of the GMR Group which is into diversified infrastructure sectors. Post this development, the company has been renamed as Cronimet Alloys India Ltd. Consequent to the acquisition, Cronimet has shifted the headquarters of GMR Ferro Alloys from Hyderabad to Tekkali in Srikakulam district. This is a tightly held company. Cronimet MNC's holding in the company has increased to 70.48%. There is very little free floating stock of this company in the market which is fast drying up. The company posted an EPS of 3.82 in the June quarter, which means that on an annualized basis, the stock is trading at a very cheap PE ratio of just over 5. With the kind of growth the company is poised to make in the next few years, this stock can be a potential GOLDMINE.

Technically, the Cronimet Alloys India Ltd stock is making new highs and as there is hardly any floating stock left in the market, those who enter the stock quickly can possibly make huge gains.

Cheers!

Hot Pick: K Sera Sera Nse: KSERAPRO Bse: 532081

2010-09-03T13:00:00.002+05:30

K Sera Sera has posted excellent June quarter figures. Operating Profit Margin increased from 17.36 to 38.66 and Net Profit Margin increased from 28.58 to 35.87 qtr on qtr sequentially. Income from Operations went up from 465 million to 608 million and Net Profit jumped to 252 million as compared to 181 million in the same quarter last year (Consolidated figures). Standalone Income from Operations jumped from 27.6 million to 233.8 million. Here are some salient points of the last quarter results which would qualify this stock as a buy at current price:

1. K Sera Sera Pvt. Ltd has launched its Greenfield technology of converting a full length 2D feature film into 3D content within just 24 hours.

2. K Sera Sera Miniplex Pvt. Ltd has successfully locked 70 screens across various districts in India.

3. K Sera Sera Box Office Pvt. Ltd is all set to release two movies "332 Mumbai To India" in October and "Chatur Singh 2 Star" starring Sanjay Dutt & Ameesha Patel in November/December this year.

4. K Sera Sera's Television division has started the shows "The Roots" and "Stretch" on Sahara Network.

5. The registration on its portals, Kmediatalent & Klogtalent has reached above 8 lakhs.

6. Further, K Sera Sera Productions Ltd has invested 26.40 crores in Kamla Infrastructure Landmark (P) Ltd making it a holding company.

(Source : http://www.bseindia.com/xml-data/corpfiling/AttachHis/K_Sera_Sera_Productions_Ltd_130810_Rst.pdf)

The valuations of the company look very attractive as the consolidated EPS for June quarter alone stands at Rs 1.21. On an annualized basis, the stock is trading at a PE of just around 2.3 which is ridiculously cheap for a Media Stock. Technically, the stock has consolidated for nearly six months in the price range of 11.10-11.50 and looks ripe for a breakout.

Cheers!

Market at Inflection point

2010-08-25T14:00:00.002+05:30

Hi friends,

The Markets are currently poised at an Inflection point at present levels of 5475-5500 (Nifty). An immediate Upside or downside of around 700 points may be in the offing. The view on Indian stock markets is broadly bullish so the chances are high that the breakout will be on an upside. Mid-Small caps with good fundamentals which have relatively underperformed the market in the last six months or so may come in the limelight. Very fast gains can be made in the next rally which can happen soon. My view on SHRI LAKSHMI COTSYN is ACCUMULATE. It is a definite MULTIBAGGER STOCK in the long term.

Cheers!

Hot Pick : Shri Lakshmi Cotsyn Ltd. Bse Code: 526049

2010-06-23T11:43:00.002+05:30

Shri Lakshmi Cotsyn Ltd. is a USD 250 million company. A premier manufacturer of home furnishing products and enjoys competency in manufacturing denim fabric, terry towels, bed linen, cotton fusible interlining, embroidered fabric, technical textile products and ballistic products.

An armoring division of Shri Lakshmi Cotsyn Ltd. (SLCL) has recently made an entry into India’s growing defence market with the launch of complete 360 degree armored vehicles for Indian armed forces and police. The company has introduced an exclusive range of uniquely designed models of 360 deg. protected Armored Vehicles which includes “DHRUV – ATC” (Armored troop career), “DRONA – MPV” (Blast & Mine protection vehicle) and “VIPER” (Fast Moving Attacking vehicle). The company engaged in processing a very wide range of end-to -end textile products has diversified its portfolio by getting into specialized armored vehicle segment.

The high-end 360 degree protected armored vehicle, which is a first- of its- kind in India with bullet, mine and blast proof capabilities will be showcased in New Delhi in October 2009.

The company has recently renamed Armet Armored Vehicles (India) Ltd. as Shri Lakshmi Defense Solution Limited, a 100% subsidiary of SLCL. It’s new unit near Kanpur, Uttar Pradesh has commenced commercial production and is in the process of delivering its first bullet proof vehicle “DHRUV” (Armor troop carrier) to Special Task Force.

The company imports chassis from reputed international firms like Ford Motor and General Motors and then fabricates indigenously at its plant. SLCL plans to make around 300-400 vehicles a year and expects a turnover of Rs 150 cr in the first year of its operation.

The company currently is in talks with Indian paramilitary forces and also some high-value customers in India, Europe and the Middle-East who want their vehicles to be armored with Level-B7 protection with bullet, mine and bomb-proof accessories. The armoring could cost anywhere between Rs 50 lakh to over Rs 1 crore, depending upon the accessories embedded in the vehicle.

Dr. M. P Agarwal, CMD, Shri Lakshmi Cotsyn Limited said in a recorded interview: “While presenting the Union Budget Finance Minister Pranab Mukherjee allocated $28 billion for defense which is the highest ever allocation for the defense sector. For SLCL it is a logical move to be part of the Indian government's efforts to broad base defense procurement from the private sector. We see significant growth opportunities in the domestic as well as global defense market. Our high-end 360 degree armored vehicle will aid security forces counter threat and enhance combat efficiency.”

“SLCL is an approved vendor with host of Indian defense establishments. The company has been already supplying safety textiles such as bio- chemical, high altitude fabric, bullet-proof jackets and bullet-proof helmets, camouflage fabrics, uniform fabric, IR fabric and carbon fabric to Indian defense establishments. The company post its exhibition in Delhi expects to fetch large orders for its 360 degree protection armored vehicle from Indian defense forces and state police forces. The order flow is expected to give significant boost to our commercial sales.” Dr Agarwal added.

At cmp of 140, the Stock is trading at a mouth-watering PE of just 2.5!! The Book Value of Shri Lakshmi Cotsyn Ltd. in June, 2009 itself was Rs. 175.33 (source: moneycontrol). Add to it the Enterprise Value and the Fair Value of such a high growth company should not be less than 500, giving it a fair PE ratio of 10. The company's business prospects are excellent and it has shown a growth of 63% in the last quarter as compared to the same quarter in the preceding year. The Promoters have increased their shareholding in the company from 43.31% in March, 2009 to 47.91% in March, 2010. To conclude, this stock is an excellent Investment Opportunity.

Company websites: http://www.shrilakshmi.in and http://www.shrilakshmicotsyn.com

Cheers!

Micro Technologies Revisited

2010-03-15T09:22:00.002+05:30

Micro Technologies has corrected from its recent highs of 216. It's a fast growing company which is expanding in many world markets. Recent news : http://www.bseindia.com/qresann/news.asp?newsid=03c068ea-a37c-41fe-b1db-d5d41315d377
This stock is trading at a PE of just above 3, which is dirt cheap by any standards. The current Book Value of this stock is around 290, which means this stock is trading at a huge discount to its BV at cmp. Technically also, Micro Tech has corrected and consolidated at the present levels. The full year results are just a month away and they are expected to be very good. I think it's time for this stock to start flying again. Potential Multibagger. Company website: http://www.microtechnologies.net

Cheers!

Hot Pick : Facor Alloys Ltd. Bse Code: 532656

2010-02-17T12:22:00.005+05:30

Facor Alloys Ltd. is one of India's largest producers and exporters of Ferro Alloys, an essential ingredient for manufacture of Steel and Stainless Steel. It exports to several countries like Korea, Japan, Italy, Netherlands, USA, Turkey, China and Taiwan. Post trifurcation of the Facor group into 3 independent entities in 2004 under a demerger scheme, FACOR has the capacity to produce 65,000 TPA of Charge Chrome / Ferro Chrome and 2,50,000 TPA of Chrome Ore at its Plant in Orissa. It has also established a mining complex at Bhadrak in Orissa for the mining of Chrome Ore, the main raw material for the production of Charge Chrome/ Ferro Chrome. FACOR has been accredited with ISO 9001:2000 standard, which coupled with other control measures adopted by the Company, enables it to maintain its world wide status as a producer of quality products.

The stock has seen highs of around Rs.21 before the crash happened in 2008. At current price of just around 4.9, the stock is available at a good discount to its Book Value of nearly 5.86. The company is also looking at acquisitions of Chrome Ore mines abroad to expand its capacity. Once the acquisition is made, the stock can see a complete re-rating. At current valuations the stock looks very cheap and the future looks good for this stock.

Cheers!

Hot Pick : GHCL Ltd. Bse Code : 500171

2010-02-05T15:40:00.002+05:30

GHCL Ltd. is a leading Chemicals & Textiles company. The company is amongst the global leaders in manufacture and development of different varieties of Soda Ash. Soda Ash is an essential ingredient in the manufacture of detergent, soap, glass, sodium salts and dyes. It is widely used in textiles, paper, metallurgical industries and desalination plants. The Textile division at GHCL is a vertically integrated operation that manufactures premium quality Yarn, Griege Fabric and Home Textile products like Bed Linen, Curtains, Madeups and Cotton Yarn.

The two Spinning units located in Tamil Nadu have an installed capacity of 125,000 spindles manufacturing 100% Cotton and Polyester Cotton yarns. The manufacturing units at the Textile Company have state-of-the-art textile machinery from Reiter, Switzerland and Schlafhorst, Germany, among others to lend that cutting edge to Quality.

The production facilities are ISO 9001-2000 certified and also have been awarded the OKO-TEX certification from CITIVE, Portugal. Wind-power is used for generating and meeting out the energy requirement for the spinning operations, which is not only cost effective but also eco-friendly. See the company website: www.ghclindia.com

The stock is giving a very high dividend yield consistently, and at current market price of just 44.15, this stock is available at a steal. The PE ratio is just around 4. The Book Value as of March, 09 is a whopping 121.38 (source: religare technova) The stock has seen highs of around 185 in the December, 2007 Bull run and used to trade consistently around that level in the years 2006 & 2007. At current price this stock is trading at a deep discount to its peers like Tata Chemicals, United Phosphorus etc. and merits an investment buy.

Cheers!

Hot Pick : Prithvi Information Solutions Ltd. Bse Code : 532675

2010-01-19T15:09:00.003+05:30

Prithvi Information Solutions is a leading Technology solutions provider involved in the domains of technology outsourcing, process outsourcing, and intelligence solutions and networking solutions. The company aims to be a complete solutions provider and not just a plain vanilla software company. Founded in 1998, Prithvi has offices in USA, Netherlands, Middle East, Singapore and India. It is headquartered in Hyderabad, India. The company is ranked as the 12th largest IT service exporter in India in FY 2008-09 by NASSCOM. Ranked among Deloitte Technology Fast 500 Asia Pacific 2009. Prithvi's global network of development centers and sales offices are in Europe, Middle East and Asia Pacific. Their solutions are particularly advanced and powerful for these vertical markets: Healthcare, Retail, BFSI and Telecom. See the company website: http://www.prithvisolutions.com

The Promoters hold around 33% stake in the company as of Sept, 09 and I reckon the holdings of the promoter and FIIs may have gone up during the last couple of months. The half year EPS of Prithvi for the current FY2009-2010 is already 19.17, at current market price, the stock is trading at a dirt cheap PE of around 3 only. The Book Value of the share is around Rs.250 and not so long ago, Lehman Bros. had given a valuation of Rs.469 per share to Prithvi, before the global melt-down happened and LB exited the stock. The stock has seen highs of around 460 in April, 2006, from where it has fallen to the current lows. There were some issues with the management in the past, but if they come clean with the audited results soon, this stock is a potential multi-bagger. Long term investors with some risk appetite can hope to make substantial gains in this stock.

Cheers!

Hot Pick : Micro Technologies (India) Ltd. Bse Code : 532494

2009-12-24T11:46:00.005+05:30

Micro Technologies (India) Ltd. is an IT based company, a leading global developer, manufacturer and marketer of security devices for its clients across the globe. Product lines include the much-needed security devices, life style and support systems and web-based software. Micro Technologies has a history of leading-edge security solutions products.

The valuations of the stock at current price of 150 are dirt cheap! The annualized EPS (consolidated) for FY 2009-2010 is Rs.70, which means the stock is trading at a ridiculously cheap PE ratio of 2. Peer companies command a PE ratio of 15-20, which shows the potential upside for the stock price of this company. As of 30th Sept, 2009, the promoters hold a healthy 32.49% stake in the company. The future seems bright for this company and investors can look for this value stock.

Some recent news about the company:

*Micro Technologies (India) Ltd. launched Micro Jai-Kisan in the city today. Dr. C P Joshi, Union Rural Development Minister, unveiled the innovative device for farmers at a press conference.

*Micro Technologies to parter with premier Israeli company to jointly provide security solutions.

*Micro Technologies listed for the NASSCOM "Innovative Products Award" for Wi-Fi Security system.

Company website: http://www.microtechnologies.net/index.aspx

Cheers!

PS: On 22 Dec, 2005, SKP Research came out with a BUY Report on this stock when the price was Rs.318 with a Target of Rs. 462 Here is the link: http://www.valuenotes.com/skp/skp_MicroTech_22dec05.pdf?ArtCd=72544&Cat=C&Id=993

Early Opening of Stock Exchanges from 4 Jan

2009-12-17T11:25:00.004+05:30

The Stock Exchanges (NSE & BSE) have announced extending of trading hours by opening the markets at 9:00 AM instead of the earlier 9:55 AM from 4 Jan, 2010. This should be a welcome step for investors who were so far unable to place orders online because they had to leave for their respective offices before the market opening. But this move is being unreasonably opposed by some Tv anchors for their own narrow personal interests. Copy pasting below a good post on a popular market message board by a boarder named Guru.

Posted by: gurugyan9 on (17-Dec-09 10:45 )
Rating *****

It is with great regret that we have to say that the CNBC TV18 main anchor, Udayan Mukherjee has become too big for his boots and is misusing his powers. Instead of reporting market news in an impartial and neutral manner, which is expected from a responsible Business News Channel, Udayan has off late started to try to force his own personal opinions on the viewers and thus try to influence them. The ordinary lay viewers are easily influenced by the views expressed by the channel anchors, specially the ones who broadcast in the first hour of market opening, ie. Udayan and Mitali. It has been noticed that they try to impose their personal opinions, driven by their own vested interests on the viewers. There are hundreds of instances where we have noticed this. The latest being the move by the stock exchanges to open the markets from 9:00 AM. This is a welcome move for the stock market investors who were previously unable to place orders in the market in the morning because they had to be in their respective offices by 10:00 AM. Such millions of office goers who have investments in the market were till now unable to place their orders online because they had to start from their homes around 9:30 AM for their offices. Now with the welcome move of the stock exchanges they will get an opportunity to place orders before they start from their homes for their offices.

This new announcement by the exchanges is a welcome step and will be of great convenience to stock market investors. This is an investor friendly move by the exchanges. But since this move would mean that Udayan & Mitali will have to start one hour early from their homes, they are viciously opposing this move on their tv channel. How can the channel allow them to dictate their terms to the millions of viewers? Both Udayan and his protegee Mitali have become too big for their boots and are totally ungrateful for how much they have earned from the company they work in and also the stock markets in general in the last 10 years. Udayan was just a small reporter when he joined CNBC TV 18 ten years ago and was promtly made the main anchor. Since then he has become the blue eyed boy of the channel and its MD, Raghav Behl. Raghav has given too much free rein to Udayan and has become over dependent on him. We think the wise thing would be to look for replacements for such big-headed Anchors. If these people have no respect for journalistic ethics of reporting in a fair and impartial manner, they should be shown the door.
Guru

link : http://www.moneycontrol.com/india/messageboardblog/message_thread/2492368/3721398#m3721398

Cheers!

Hot Pick: K Sera Sera Nse: KSERAPRO Bse: 532081

2009-12-02T11:09:00.002+05:30

K Sera Sera is an Entertainment company primarily in the business of movie production & distribution. The company has posted half year EPS of Rs.8.63 already for the current financial year. This means that the stock is trading at an astoundingly low PE of less than 1. The average PE ratio given to the industry is between 15 and 50. This shows the potential of this stock. The stock's Book Value is Rs. 41.62, profit grew by 100% for the quarter ended 30th Sept, 2009. Net Profit achieved Rs. 39.72 cr*. The company has produced films like Sarkar, Sarkar Raj, Golmaal, Ek Hasina Thi, Vastushastra in the past and distributed films like Guru, Golmaal, Partner, Don, Kaal, Hanuman, Ab Tak 56, Dor, No Entry, Fanaa, Casino Royale, Die Hard-4, Da Vinci Code, Kabhi Alvida Na Kehna.

The company has announced enormous diversification plans. Board of Directors has decided to invest in IPL (Indian Premier League) 20-20 Cricket Team. The company has entered into a Joint Venture for the forthcoming film, "Americans In Danger" starring Colin Farrell, Chris Evans & Anne Hathaway. An average Hollywood blockbuster collection is well over Rs. 5000 crores and this film is already considered as an awaiting blockbuster in Hollywood circles*.

The future looks bright for this company and the stock price is currently available at a dirt cheap price of around Rs. 14.

* Source: DNA Money advt. For more info, visit company website: http://www.kserasera.com

Cheers!

Hot Pick : Bihar Tubes Ltd. Bse Code : 590059

2009-10-08T01:27:00.004+05:30

Bihar Tubes Ltd. is an ISO 9001:2000 company engaged in manufacturing and exporting galvanized steel tubes, galvanized steel pipes and welded black pipes/tubes. They manufacture Mild Steel Tubes, Aluminum Steel Tubes for a range of applications like Mild Steel Tubes for structural purpose and mechanical & general engineering purpose, ERW Pipes for water, gas & sewerage, Steel Tubes for idlers of belt conveyors, water wells and Lancing Pipes for various automotive & industrial applications.

The stock has fallen from its highs of around 216 in Dec, 2007 to its current mouthwatering price of 59. The stock price of this company has been lying dormant for a long time and a technical breakout can happen any time after this consolidation. Religare research had put a BUY call on this stock on 7th May, 2008 when the market price was 151 and they had given a price target of 240 plus for it.
Download the report from here: http://www.zshare.net/download/66633891ddd181a6/

So if this stock was found attractive at 151 levels, at current price of 59 it's available at a steal. Seems to be a good investment bet.

Cheers!

PS: I'm glad that one of my recent picks, FCS Software has nearly tripled after I recommended it. Hope you profited from it.

HOT PICK: PSL LTD. bse code: 526801

2009-09-17T16:49:00.004+05:30

PSL manufactures and supplies spiral welded pipes conforming to American Petroleum Institute (API) standards for oil, gas and water transmission, as well as structural and piling applications for both onshore and offshore sector.

Its subsidiaries include PSL Corrosion Control Services Limited, Pipeline Systems Limited and PSL USA Inc. PSL USA, Inc. and PSL-North America, LLC.

According to sources, the conglomerate expects to establish a large share of the proposed gas pipeline network to be built by GAIL, GSPL, and other domestic players, who have announced proposals to construct pipeline transmission networks worth over Rs 20,000 crore.

PSL's annual pipe manufacturing capacity presently stands at 1,475,000 million tonnes per year.

The Promoters' shareholding stands at a very healthy 49.13% and the PE ratio is only around 8 at cmp of 179. Its Market Cap vs Sales is very attractive as compared to its peers. PSL has a market cap of 700 crs whereas the sales stand at around 3600 crs, which means Sales are around 5 times of the market cap. Now compare this with its peers like Welspun Guj whose market cap is around 4700 crs and Sales of 5800 crs, which means sales is 1.2 times market cap. Another peer Maharastra Seamless has a mkt cap of 2000 crs and sales of 2100 crs, i.e. sales is 1.05 times mkt cap. So as compared to its peers, PSL Ltd appears to be grossly undervalued.

The share is trading at a deep discount to its Highs of around Rs. 555 in December 2007. Very recently, fund house Citigroup Global Market (Mauritius) Pvt Ltd increased its stake in PSL Ltd to 5.38 per cent. The future looks very bright for this company and we can expect this stock to eventually make new highs like peer Jindal Saw is currently making.

Cheers!

Want to see me on BIGG BOSS SEASON 3? Then SMS BB {SPACE} NAVIN BAJAJ TO 56882

2009-09-12T02:14:00.004+05:30

Hi friends,

Hope all of you are doing well and benefitting from my calls. There is some piece of news for you. If you would like to see me in the BIGG BOSS' House this season on COLORS TV channel, then please SMS your vote for me by typing BB NAVIN BAJAJ and send it to 56882. Send as many SMSes as you can if you'd like to see me as one of the housemates of Bigg Boss (Indian version of the International show Big Brother) house this season. As you might be knowing, this season the host of the show will be Mr. Amitabh Bachchan. So kindly SMS your vote for me.

Cheers!

COMPACT DISC INDIA LTD. BOARD RECOMMENDS DIVIDEND

2009-09-04T15:49:00.002+05:30

Compact Disc India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 04, 2009, inter alia, has recommended Dividend @ 20% i.e. Rs. 2/- per share for the financial year 2008-09 which shall be finally declared in the forthcoming Annual General Meeting to he held on September 30, 2009.
http://www.bseindia.com/qresann/news.asp?newsid=165905B7-B294-4AD8-8685-B2155B30E176&flag=I&type=A&scrip_CD=526141

Cheers!

COMPACT DISC INDIA LTD. JUNE QTR RESULTS & OPEN OFFER

2009-07-27T12:27:00.000+05:30

The June qtr results of CDIL have been declared. Sales are up from 433 million to 442 million, and Net Profit is up from 83.5 million to 91.71 million. EPS is up from Rs8.73 to 9.58 in this quarter.
A Note attached with the results says "Seengal Capital Advisors Pvt. Ltd., an investment arm of the Promoters of CDIL and iMedia Ventures Ltd., content developer have offered to buy upto 40% equity of the company by open offer".
Cheers!

Hot Pick: Compact Disc India Ltd. Bse Code : 526141

2009-07-22T10:14:00.006+05:30

Compact Disc India Ltd. is in the sunrise sector of Animation and has reported fabulous results for FY ended 2009. FINANCIAL HIGHLIGHTS OF FY 2008-09:

* Sales Revenues higher by 87% at Rs.192.10 crore.- Profit-After-Tax (PAT) increases by 102.51% to Rs.39.50 crore.
* Profit-Before-Tax (PBT) increases by 101.21% to Rs.43.81 crore.
* Earning per Share (EPS) higher at Rs.41.27 as compared to Rs.20.51 last year; higher by 101.21% (annualized).
* CDI continues to be the largest animation film outsourcing company in South Asia.

Source : http://www.compactdisc.co.in/

The EPS of this stock is reported at Rs.41 and the stock is trading at a dirt cheap PE of only 1.5 at cmp of 61.15. The company is promising to triple its Net Profit in FY2009-2010. If it's able to fulfil its promise, then you can well imagine where the price of this extremely undervalued stock can go, considering the fact that the PE ratios for companies in the Animation & Media sector enjoy PE ratings between 10 and 20. The company has announced several tie ups with reputed movie production houses. CDIL has informed the exchange that the Company has signed a MOU with BBC Films to co-produce the film, "Blame it On The Bhangra". The Promoters have increased their stake in the company by 4% during the last year. This is a high risk-high returns kind of stock which is a potential multi-bagger.

Cheers!

Hot Pick: FCS Software Solutions Ltd. Bse: 532666

2009-06-03T13:03:00.004+05:30

Friends, I'm happy that my last three buy calls have all more than doubled in the last couple of months. While the index stocks (the big caps) have rallied a lot after the elections, there is a lot of value in the Mid-Small caps. One such stock is FCS Software which is a dividend paying company, giving consistent results over a period of time. The promoters hold a good 67.92 % in the company which should give confidence to the other shareholders. The nine months EPS of the company is already Rs.16 and the fourth quarter results will be out by the end of June. The stock is grossly undervalued at current price of 46 and is trading at a PE of less than 3. Investors can buy this stock at current price.

Cheers!

Hot Pick : ALOK INDUSTRIES BSE CODE : 521070 NSE CODE : ALOKTEXT

2009-04-08T10:35:00.003+05:30

ALOK INDUSTRIES is a profit making, dividend paying company and the share is currently trading near its lows of approx. 13.60. The 52 week high was 73 and low was 11.55. The stock is going at a mouth watering PE of less than 2 and the Book Value is around 60 Rs. This stock also trades in F&O which means it can see unlimited gains in a single day. This is a stock having great fundamental value and is looking all set for a technical breakout. Targets can be 25, 36 and 55 for long term Investors.

Hot Pick: Balaji Telefilms

2009-02-27T10:42:00.002+05:30

NSE CODE : Balajitele BSE CODE : 532382
Balaji Telefilms is a pioneering television content producing company with a presence across Indian general entertainment channels. The 52 week high for the stock was 223 and 52 week low was 31.15. The stock is currently trading near its lows at only 32 at a PE ratio of less than 4. Historically, media companies such as this have traded between PE bands of 15 to 55. The stock had nose dived after their contract with Star Plus came to an end. But now the company has started two new shows, Kitni Mohabbat Hai and Bandini. The company also plans to launch a horror show next month. The stock presents great value at current price and the future looks to be bright.

Cheers!

Hot Pick: Crew B.O.S. Products Limited

2009-02-20T11:11:00.002+05:30

Nse Code: CREWBOS Bse Code: 532873

It's been a while since I updated this site. The markets all over the world are re-testing the lows of Oct, 2008. I think this presents an opportunity for investors to cherry pick and build a long term portfolio. Crew B.O.S Products is a profit making, sound company with a 52 week high of 94.40 and low of 16.65, currently available at a mouth-watering price of just around 18. The nine months EPS of the company already stands at 7.99, which means that at current price the share is available at a PE ratio of less than 2. The Promoters have been increasing their stock holding in the company over the last few months and their latest percentage holding in the company stands at 54.13%. The company is in the business of Fashion & Leather accessories and the future is bright for this company.

Cheers!

Panic bottom signals a trend change?

2008-09-15T11:01:00.002+05:30

Lehmann Bros. filed for bankruptcy today and the global markets have tumbled. The Indian markets are no exception. The price of crude is now below $ 100, yet our markets have not rallied. The reason for that is the unusually fast depreciation of the Indian Rupee against the US Dollar. The USD has risen from Rs. 40 to Rs. 46 in just a few months. The rise has been very sharp since the day Derivatives trading in Forex was launched in India. So such a sharp move in the USD-Indian Rupee exchange rate was sort of expected on the back of heavy speculation. The rise of the dollar against the rupee has almost nullified the fall in Crude Oil price.

But such bankruptcies in the US financials can actually be good news for the markets, in the sense that all the bad news is finally getting out in the open. Also consider the fact that the bell weather stock of India, Reliance Industries has finally taken a pounding. During the entire bear market phase of 2008, RIL was the last man standing coz it hadn't fallen much as compared to the mid-caps. It was sort of holding the fort above Rs. 2000 levels. But today it has broken down to a low of Rs.1832. To my mind, this is a sure sign that we are finally close to a trend change and the end of the extended bear phase. RIL will soon form its bottom and then usher in a rally for the Diwali-Christmas season. Most of the midcap stocks may have bottomed out already and it makes sense to go out and buy such beaten down value stocks in bulk. I think we are on track for a rally around Diwali which could last upto Christmas. So keep your shopping list ready.

Cheers!

Are we getting ready for Diwali Fireworks?

2008-09-04T09:31:00.002+05:30

The first eight months of 2008 have been quite dismal for stock market investors. But with crude oil coming down to $109 levels there is a ray of hope. As explained in one of my earlier blogs, since the beginning of this year, money flowed from the equity markets to Crude and other select commodities like Gold. It seems that the cycle is now turning in favor of the equity markets. If crude goes below $100, the Nifty will climb above 5000 effortlessly. And if it goes below $80, we can expect to see fireworks! FIIs are coming back into the Indian markets and the rate of inflation is likely to peak out (or has already peaked out) soon.

The IPO market is also seeing a revival with Resurgere Mines & Minerals India Ltd doubling on the first day of listing. Another IPO is being listed today which is AUSTRAL COKE & PROJECTS LIMITED. This is a group company of Gremach Infrastructure Equipments & Projects Ltd and a positive listing of Austral Coke today will have a great positive impact on the share price of Gremach Infra also.

Cheers!

Hot Stock Ideas

2008-08-04T10:12:00.002+05:30

Ok. The markets have played out exactly like I had previously opined. Crude Oil has come down to $ 120s again and I reckon it could go lower. That can only mean good news for the Indian Stock Market. The political uncertainty is also out of the way with Manmohan Singh's govt. winning the Trust vote. Mars is leaving Saturn on 10th August. Time to buy.

I have been receiving repeated requests about suggesting some stocks for investment now. Here are a few of my Top Picks:

1. GREMACH INFRA (BSE CODE : 532836) - This stock used to be the darling of the markets just six months ago. Having seen highs of over Rs. 500, this share is now trading at a mere Rs. 88. The diluted EPS for FY 2007-2008 was Rs. 23.74, which means this once highly rated Infrastructure stock is trading at a PE of just 3.7. I will buy this stock.

2. GODAWARI POWER & ISPAT LTD (GPIL) : This stock has come out with a stellar performance in the 1st quarter, despite the slowdown in the rest of the market. It posted a diluted EPS of Rs. 13.09 in the June qtr. With an expected annualized EPS of Rs. 55, and cmp of just Rs. 204, this super stock is trading at a PE of a mere 3.7. I will buy this stock.

3. CREW BOS : This stock has a one year high of Rs. 163, and currently available at a throw away price of just Rs. 33. Having posted a diluted EPS of Rs. 2.4, with an annualized EPS of Rs. 10, this stock is trading at a PE of a mere 3.3. I will buy this stock.

Cheers !

Analyze this!

2008-07-04T00:19:00.002+05:30

India's economic miracle is certainly not over, it's just started. The complete turnaround in the Stock Market from the euphoria of 21000 to the present gloom of 13000 is the handiwork of a newly bred species called Hedge Funds. These people move fast. Quick money is their mantra. The Futures market is their play area. If I was a Hedge Fund Manager with unlimited resources at my command (resources include huge amounts of money, control over the print and electronic media, financial analysts and politicians across the globe on my pay-roll etc.), this is what I would have done.
Starting at the start of Financial Year 2007-2008, first I would have pumped in money in the emerging stock markets, with a view of cashing out within six-nine months. So after creating a frenzy for stocks in Nov-Dec, 2007 and building up a Crescendo, I cash out at the peak in early January, 2008. But since markets don't fall on their own, I have to orchestrate a fall. I do that by shorting the Nifty in huge quantities. The other smaller players have no choice but to follow suit. It's like playing poker......have you ever played poker? :) The guy with the most chips pretty much decides what happens at the table. Ok, back to the market. So now that I've shorted the Nifty, how do I convince other people to sell their stocks too, so that I can make profits on my shorts? I start circulating pessimistic stories in the media about an ensuing recession. But since just two-three months ago, my people had circulated bullish stories in the media......how do I now do a volte-face? So, my propaganda has to be backed by some change in the fundamentals. And how do I change the fundamentals of any economy? I fiddle with the price of oil, which is the most important factor in any country's economy, specially the emerging markets. So, having made my money in the stock markets, I now start pulling out all my money from there and start buying Crude Oil Futures. So, as I push Crude Oil prices up by my relentless buying, the rising prices of oil play havoc with the economies of most countries and their stock markets come crashing down!
So this was what happened until now. What happens next? Surely, from a price of just $55 two and a half years ago to almost touching $150 now, the actual demand for oil has not tripled in this short span of time. The prices went up due to huge Speculation in the Futures market. So, when prices reach unrealistic levels, they become unsustainable. To my mind, that point would be reached somewhere around $171 levels and and the price of Crude would then crash back to around $110-115 levels. Correspondingly, a surge in the stock markets will then be seen. I think this turning point would be reached some time before the end of July, 2008, which is this month itself or latest by August. So, my guess is that from August onwards, the stock markets would again start going up.
I am actually praying for an early election. An early election would mean that the politicians who have amassed huge wealth in the last four years of power will open their purse strings and start to SPEND. All political parties will start to SPEND their money for electioneering, which will generate lot of employment and business across the country.
Contrary to popular belief that the fall of the UPA Govt. will bring instability and uncertainty, my reading is that a fall of the govt. will actually END the instability and uncertainty which is currently prevailing in the country and specially the stock markets.
Cheers!

Will JK Lakshmi Cement be a takeover target?

2008-06-27T09:43:00.002+05:30

As I said in my earlier post, that it is unlikely that I'd have the time to blog regularly or answer individual queries. The stock markets have been trending down since the start of this year and have been pretty depressing on the whole. As some of you know I have other interests like Astrology, Films etc. and have been pursuing those interests. Was in Bangkok couple of weeks ago to attend the IIFA Awards. Watch out for Akshay Kumar's dare-devil act in the show, in the television telecast on Star Plus on the 29th of June.

Coming back to the markets, u may recall that I had named the IT and Pharma sectors as the Outperformers of the market this year, at the start of the year itself. That call has come true. You may also recall my call given on Kohinoor Foods last year when it was trading below Rs. 50 levels. At that time, that stock was available at low single digit PEs. Even during the market crash, Kohinoor Foods was trading at Rs. 120 levels in March, 2008. Today there is news in the papers that Kohinoor Foods has become a hostile take-over target. A Bombay based company Temptation Foods along with Consortium consisting of names such as Morgan Stanley, DSP Merril Lynch among others have acquired nearly 30% of the shares of the company during the last six-seven months. Even after the total market collapse, Kohinoor is trading around Rs. 100 today......a good 100% gain over the price when I gave my buy call on it, in less than a year.

A similar fate may await JK LAKSHMI CEMENT LTD. I feel at PE levels of a mere 2.3 at current price of 89 odd, JK LAKSHMI CEMENT LTD. may become an attractive take-over target for bigger players in the cement sector. The Promoters themselves have increased their stake from 41.52% last year to 45.60% on 31st March, 2008 taking advantage of the weakness in the stock price. I suspect the Promoter share may have gone further up since then. If there is one sector in this beaten down market which deserves a buy currently, then to my mind, it is the Cement sector. My Best picks in this sector are ACC, Ambuja and ofcourse, JK Lakshmi Cement.

About my current market outlook, I feel that the price of Crude Oil is the most important factor in deciding where the markets are headed from here. Then ofcourse, there is the ensuing general elections in the country. I think the price of Crude may go as high as $171 per barrel in the next couple of months before settling down to $115-$120 levels in the medium term.

You may also recall that I had given an explicit Sell call on over-hyped and over-heated stocks like JP Associates, GMR Infra , Punj Lloyd etc. much before the others. Look at how much they've fallen in the last six months. Even the Real Estate stocks have fallen nearly 50% from their highs, and to my mind, they are likely to fall further. While there has been a downward correction to the tune of 50% in the price of Real Estate stocks, Real estate prices on the ground themselves are yet to fall by that percentage. People thinking of buying a residential/commercial property should wait for the next six months to get them at much cheaper prices.

Investors like me would accumulate JK Lakshmi Cement in the current market weakness.

Cheers!

Why doesn't the Govt. control Realty Prices??

2008-04-23T10:35:00.002+05:30

The government's threats of price control to the steel & cement sectors have been keeping the prices of shares in these sectors down. If the govt. thinks that these sectors are behaving as a cartel, then there are bigger cartels in other industries. Why doesn't the govt. control prices of real estate? Buying a house has gone beyond the reach of the Indian middle class. Prices of housing have gone up threefold in the last two and and a half years. A flat in Mumbai which used to cost 50 lakhs two years ago, is now quoting at 1.5 crores! It's impossible to buy a 3BHK flat in any decent area of Mumbai for less than 1.5 crores. Can the Indian middle class afford that? To my mind, the whole vicious cycle of inflation started with the sky-rocketing prices of real-estate in India. Everything else followed. Has the govt. taken any action on the Builders' cartel?

There is another cartel in the Pvt. Banking space. The charges these banks are levying from their customers for demat transactions, maintenance and other services are exhorbitant. Has the govt. taken any action on them? There is another cartel in the Food sector. The prices of food items like grains, fruits, vegetables, milk etc. have gone up a lot in the last two years. Has the govt. issued a threat to them for bringing down their prices?

So why is the govt. singling out just the steel and cement sectors for price control? In an overall inflation scenario, which is across the board, such targeting of the steel & cement industries is ridiculous.

Cheers!

Market Outlook

2008-04-20T21:33:00.002+05:30

Hi friends,

At the outset, let me apologize for not being as active on this blog as I used to be. It's just that I've been awefully busy lately. I'll try to answer individual queries (time permitting) but please feel free to answer each other's queries if you wish to.

Now for my current views on the Market situation. The market has seen a very nice bounce from the lows of this year in the last three weeks. But the big question is whether this move is sustainable or whether this is a dead cat bounce. My reading is that even if we have put the worst behind us, things are not going to be all hunky dory from now on for the rest of the year. The market may still take about 2-3 more months to stabilize and a positive, sustainable uptrend may be seen from August-September onwards. As predicted by me in my New Year blog, IT and Pharma Sector stocks have outperformed the market so far. The biggest concern for the Indian market right now is inflation and cement, steel sectors have been under threat by the govt. as being price control candidates. But my point of view on Cement is that it is a good time for long term investors to get into this sector as pressure from the govt. is only a temporary sentiment dampner. On the ground, the fact is that there is a very robust demand for Cement and business is good.

The bad news coming from the US may also take a few more months to end, and only after the US Markets stabilize will our market see a sustained positive move. This market is presenting an opportunity for long term investors to invest in high quality, low PE - high growth stocks. Unfortunately, there is not much to do for very short term traders right now. Traded volumes are very low and there is a lack of interest from the retail investors who were badly hit by the crash early in the year. At this point, the likely trading range for the Sensex for this year seems to be between 14500 and 21600.

Cheers!

About PE ratios and the right time to buy

2008-03-17T22:48:00.003+05:30

I was asked an important question by Raghu, and I thought I'd blog it for everybody else also

Raghu said...
Hi Naveen.Today I read in TOI that the Sensex may breach 11000 levels which means there is still lot of downside left.In such scenario do you think it is a good time to open the positions? I am not talking about value stocks like JKL but some good stocks which have taken the beating along with junk stocks. Though I understand that an optimum PE Ratio for each co varied based on its future prospects can you pls advice as to is there any standard/PE for evaluating Small/ Medium and large scale firms respectively.Also I have noticed that after a bear phase market gives an excellent returns for the following next 2 -3 years. Is it true or just a co-incident. Just a curiosity question pls.

Hi Raghu, it is the nature of the market that the participants get overly optimistic when the times are good and overly pessimistic when the times are bad. There are excesses on the way up and also on the way down. A good player will choose his/her target company carefully and should be able to evaluate it both in relation to and independent of the Indices.

You've asked me what is the optimum PE ratio for various groups of companies. There is no standard PE ratio which will fit every stock. It will vary from industry to industry and from stock to stock. Take for example, a stock like Punj Lloyd. I gave a sell on that stock when it was trading around 500-550 levels. At the same time many so called 'Analysts' (the ones who regularly appear on certain TV channels) were singing praises of that stock and advising a buy. The stock today closed at 297. Most people would think it is a great opportunity to buy that stock because it has fallen 45% from its highs. But do you know what PE it is trading at even now for FY08? 27!! That means that it was trading at a PE of 50 when the price was at 550. Compare that with the the current PE of JK Lakshmi which is less than 2.5.

How would you reconcile this anomaly? The truth is that the market does not always run on fundamentals. In fact, it seldom runs on fundamentals. More often than not, it runs purely on the will of the Operators and the Hype generated about that stock. But this is true only in the short to medium term. This is so because the vested interest parties cannot keep the price of a stock up or down as per their convenience beyond the medium term. In the long term the true fundamentals of a stock have to catch up. Punj Lloyd is just an example I am giving to elaborate my point. If you look closely, you will find that Punj Lloyd is still Up nearly a 100% from its year's low of 147 which was the prevailing price in April, 2007. But public memory is short, so they don't remember the figure of 147 attached with Punj Lloyd, they only remember the recent high price of 550. If you ask me, then the fair value of this stock should be between 150 and 175....................maximum 200. But the 'TV Analysts' would have you believe that it is a great buy even at 550!

At the peak of the recent Bull market, certain Power stocks were trading at PEs between 70 and 100. Thankfully, today many of them have come down to nearly half that. Though there is no thumb rule as to what should be the Optimum PE limit for any stock, I personally would be very uncomfortable in buying any stock over a PE of 25, no matter how good the company or the management, in the present scenario.

Coming to the last part of your question.........ofcourse bear markets give an excellent opportunity to buy good stocks at throwaway prices, but provided you buy the right stocks and for the long term. The simple basic rule of the market is to buy low and sell high. But it is ironical that most people actually end up doing the opposite.
Cheers!

JKLAKSHMI CEMENT : A GOLDEN OPPORTUNITY

2008-03-07T11:05:00.004+05:30

The Nifty is down to 4764 at the time of writing this. Can it go down further? Yes, it can. The way I look at the current market scenario is like this. There are two different pockets in the market right now. One pocket consists of the frothy stocks which went up to crazy heights just a couple of months ago, without having any real earnings to justify their price rise. I am talking about stocks like REL, RIIL, Jai Corp, Unitech, JP Assoc, Punj Lloyd, GMR Infra etc. These stocks need to go down further.

Then the second pocket consists of stocks like JKLAKSHMI CEMENT which have gone down on very low volumes purely in sympathy with the overall negative sentiment in the market. They don't deserve to be at such prices. At today's low of 119, JKLAKSHMI is trading at a PE of 2.53. This is incredible for a company of this size and quality of management. JKLAKSHMI's PE is at a huge discount to its peers. The industry average PE used to be in the range of 10-14 which has now shrunk to between 8-12 after the January crash. If I was a Fund Manager I would be going all out to buy this stock in bulk at these prices. Capacity is going to be enhanced from the present 3.5MT to 5MT by October 2008 and to 10MT by 2011. Cement is going to be in demand due to the thrust on building new infrastructure in the country.

Considering all this, I would say that the market is giving a golden opportunity to buy gems like JKLAKSHMI at such throwaway prices.

Cheers!

BUDGET IMPACT on various sectors

2008-03-01T10:13:00.002+05:30

Here is a brief compilation of the effect this Budget will have on various sectors :

1.AUTOMOBILES : POSITIVE
Excise on 2 and 3 wheelers, small passenger cars reduced from 16% to 12%.

2.BANKING : POSITIVE with a caveat
PSU Banks are expected to face pressure on their net interest margins until the subsidy for waiver of agricultural loans and one time settlement of loans is released from the govt.

3.CEMENT : NEUTRAL
The govt. has increased budgetary allocation for roads under NHDP. This coupled with the govt.'s focus on Infrastructure & Housing development will be key drivers for raising demand. Appointing of a Coal regulator is a postive move as it will facilitate timely and proper allocation of coal (a key raw material) blocks to the core sectors, cement being one of them. From a differential excise duty levied last year, the budget proposes a flat rate of Rs.400 per MT bulk cement or 14% ad valorem, whichever is higher and cement clinkers excise duty at Rs.450 per MT. This move will not have much impact because most cement manufacturers have set up grinding units so they don't have to source clinker.

4.ENGINEERING AND CAPITAL GOODS : POSITIVE
Reduced excise duty on manufacturing goods will boost demand. Custom duties on project imports lowered. Overall, a good budget for engineering.

5.FMCG : POSITIVE
Reduction in taxes and waiver of farm loans will boost consumer demand. Increased consumption to boost volumes.

6.INFORMATION TECHNOLOGY : NEUTRAL
Higher spend on education is good news for training providers. But the service tax on customised software is a negative for technology companies but it will be passed on to the clients.

7.INFRASTRUCTURE : POSITIVE
Continued thrust on Infrastructure spending is good news. Major developmental schemes get vastly increased allocations. But service tax on works contract raised from 2% to 4%.

8.MEDIA : POSITIVE
Cheaper set top boxes is good news for direct to home operators and will help in digitisation of the TV Industry. More money for I&B Ministry.

9.OIL & GAS : NEUTRAL
No reduction in custom duties for crude oil and petroleum products. Marginally negative for polymer industry as costlier Naptha will push its cost structure upwards.

10.PHARMACEUTICALS : POSITIVE
Reduction in excise duty from the current 16% to 8% is a big positive for this industry. Increased allocation of funds for eradication of HIV/AIDS and polio and reduction in customs duty on certain life saving drugs from 10% to 5% is a positive for companies having product pipeline catering to these segments.

11.REAL ESTATE & CONSTRUCTION : NEUTRAL
Cut in peak CENVAT rate from 16% to 14% could benefit companies as raw material cost would come down. Increase in short term capital gains tax could increase tax liabilities for several companies.

12.RETAIL : NEUTRAL
Nothing specifically aimed at development of this sector. But Increase in threshold limit for personal income tax to result in a rise in disposable incomes thereby fuelling a growth in this sector.

13.TELECOM : NEUTRAL
Service tax, revenue sharing licence fee, spectrum charges unchanged. Cheaper data cards, convergence products. 1% excise duty on cellphones will make them more expensive.

14.TEXTILES : NEUTRAL TO POSITIVE
Integrated textile parks, upgradation gets a boost. Yarn banks on the anvil. Additional allocation to TUF to accelerate capital investment in the textile sector. Removal of National Calamity Contingent Duty (NCCD) of 1% on polyester filament yarn to benefit companies that have spinning capacities.

15.UTILITIES : NEUTRAL
Reduced 7.5% customs duty on project import to 5% to boost investments. Additional 4% duty of 4% withdrawn from power generation projects (other than mega power projects), transmission, sub-transmission and distribution projects, good for high voltage transmission projects.

Cheers!

HDFC BANK - CENTURION BANK OF PUNJAB MERGER

2008-02-26T00:38:00.002+05:30

The Boards of both banks, HDFC and Centurion Bank of Punjab, have okayed a swap ratio of 1 share of HDFC Bank for every 29 shares of CboP, reports CNBC-TV18.
The merger ratio has come in favour of HDFC Bank at current market price.
HDFC Bank will make a preferential issue to HDFC after the merger to maintain 23.28% stake. The merger values CBoP at Rs 50.80 per share.

Visitors to my site may recall that in response to numerous recent queries about CBOP when it was trading above 70, I had given a SELL call on it. Today's closing price on the BSE was 48.25. My call stands vindicated.

Cheers!

Reliance Power Bonus ratio is 3:5

2008-02-24T19:47:00.002+05:30

Reliance Power has today declared a Bonus issue in the ratio of 3:5 , which means 3 bonus shares for every 5 held. This bonus issue is only for Non-Promoters. Anil Ambani's personal stake will come down from 45% to 40%. This would bring down the cost price of retail investors in the Rel Power IPO to 269 and for others to 281. But Ex-Bonus, the price is expected to go down to adjust accordingly.

Cheers!

Reliance Power to issue Bonus Shares

2008-02-17T23:55:00.002+05:30

In a move to compensate the retail investors who burnt their fingers in the Reliance Power IPO, Anil Ambani has announced a Bonus Issue. A board meeting will be held on the 24th Feb to discuss the Bonus ratio. Will this lift the share and the rest of the market tomorrow? We'll see.

There is a buzz in the market that a tussle is going on between the estranged Ambani Bros. for the title of the richest man in India, and there are vested interests involved in pushing & pulling the Reliance Power share price. The announcement of a bonus issue could be a smart move by Anil to salvage some market cap of the ADA group companies which have taken a dent after the Reliance Power listing price fiasco. He has two more IPOs lined up and this move is to resurrect his sagging goodwill among the Indian investors after the Rel Power let down.

It remains to be seen whether we'll see the start of a pre-budget rally next week. The global markets, led by the US markets, are still in a turmoil. If there is some semblance of stability in the global markets it would help the Indian market to do its pre-budget jig.

Cheers!

RELIANCE POWER LISTS BELOW ISSUE PRICE

2008-02-11T15:20:00.000+05:30

The worst fears of the market have come true. In my last blog, I mentioned that if Reliance Power lists below its issue price, it will take the entire market down with it. That is exactly what happened today. The bell has tolled. Not only has the Reliance Power stock opened below its issue price, it has closed at a dismal Rs. 375.

Having said that, this current crash in the market presents a good opportunity to buy select good value stocks at prices you could only dream of till a couple of months back. Gems like JKLAKSHMI CEMENT, for example, are now available at throwaway prices. Long term investors can build their portfolios now.

Cheers!

Reliance Power IPO Listing : The Acid Test

2008-02-10T20:28:00.000+05:30

The younger of the Ambani Bros. will ring the BSE bell tomorrow morning. But for whom the bell tolls? That is the big question. If the bears are able to hammer the price below or even close to the issue price then the bell will toll for the market. But I don't think that will happen. Even though the grey market premium, which started at 450-500 rupees when the issue had opened for subscription, has almost diminished to zero, I expect the stock to touch 700 at some point in time during the day tomorrow.

Keeping aside the Reliance Power listing, the markets are still rattled by the recession in the US. The US market is pulling down the whole world's markets with it. But that said, the Indian markets are still cushioned by the robust domestic growth and should perform better than the rest of the world over a one year period. The budget is also round the corner and a pre-budget rally is also expected. Such crashes, as the one we saw on Black Monday, can be expected to happen at least once a year and present a good opportunity to cherry pick at lower levels. Even at the beginning of the year I had predicted a big correction around the end of January, which came two weeks earlier than expected.

So what should be the strategy of a prudent investor now? Firstly, I would use any rally in the market fancied stocks which are quoting at PE ratios of anything between 50 - 100 to exit those stocks. Such high valuations are not sustainable in the long run. In these uncertain times I would rather play safe and invest in stocks which I would be comfortable holding for a minimum of a one year time frame. If you are a short term or day trader, then these are very difficult times for you. Simply because the volatility is too high. Markets are so choppy right now that you can get chopped both ways if you get it wrong.

Here's hoping that a pre-budget rally starts soon.

Cheers!

My response to Udayan Mukherjee's post on Moneycontrol

2008-01-22T20:55:00.000+05:30

Hi Udayan,

While I appreciate your intention of assuaging the feelings of the Indian Investors whose fingers have been badly burnt, I do not agree with the content of your post.

What 'mistake' did people who are long term investors make who were holding stocks with less than 10 PE or in some cases stocks with even less than 5 PE? You would be right in saying that those who were chasing overpriced and over-hyped stocks like RNRL, RPL, Ispat, Essar Oil, Reliance Energy etc. were overcome by their greed and that's why they had to pay for their 'sins'. It is completely understandable if you were admonishing people who were in such stocks for their 'mistake'.

But what mistake did a person who was holding a JK LAKSHMI CEMENT LTD., for example, make?

*That stock was trading at a PE of 3.7 at the price of 172 just one week ago. It was available at 109 today and the PE shrunk to 2.4!!

*The company has a confirmed annualized EPS of 47 for FY2007-2008.

*It has been posting spectacular results for the last six quarters in a row.

*Capacity enhancement from 3.5 million tonnes to 5 million tonnes on schedule.

*Captive Power Plant of 36 MW fully stabilized. Annualized savings of approx. Rs.30 crores.

*High cost debts of Rs. 325 crores replaced.

*Interim dividend of 10%. Record date is 30th Jan, 2008.

The point I'm making here, dear Udayan, is that NOT EVERYBODY WHO WAS INVESTED IN THE INDIAN STOCK MARKET MADE A 'MISTAKE'. IT WAS A SYSTEMIC FAILURE. People were FORCED to sell even their good stocks by their brokers. Why did this forced selling take place? What exactly was wrong with the system of Margin Calls which led to this bloodbath?
Instead of just writing off the Indian Investors' intelligence as a 'mistake', you should use your good offices to find out the REAL CULPRITS BEHIND THIS BLOODBATH. To me, this bloodbath reeks of a scam, which should be investigated.

No cheers!
Superstar

Udayan's post on Moneycontrol titled: Lessons to be learnt from Jan 2008

2008-01-22T20:52:00.000+05:30

Posted by: Udayan Mukherjee on ( 22-Jan-08 14:43 )

The thing about life is that one makes mistakes. Many mistakes were made in the second half of 2007 and those sins have to be washed away by blood, such is the way of financial markets. Some participants will go down under and never be able to get back to the market again but most will survive. The pain will linger for many months, maybe years but lessons have to be learnt. Every such debacle has lessons for us and the sooner we forget them the more we suffer.

The first lesson is not to let stock price performance become the sole reason for buying, a mistake which was made in abundance in the last 3 months. What couldn't be explained by fundamentals was credited to liquidity. The present lost all relevance as people chose to focus on the distant future, perhaps simply because the present could never justify those ticker prices; only a hazy dream of the future could. Traders and investors had no time for fundamental analysts, in many cases they were labelled "cribbing fools". Chartists became the most celebrated tribe on the street as only they could see and predict the one way run to glory for many of the hot stocks even as fundamental watchers cringed at valuations....till the music stopped. Don't get me wrong, charts do work in trending markets but once stock prices veer away completely from fundamental value, people need to get careful. But they never are. Now that the blinkers are off, people should ask themselves why stocks like RNRL, Ispat, RPL, Essar oil and Nagarjuna fertilisers have lost 50-70% of their value. It is simply because their stock prices had snapped all connection with underlying business fundamentals, earnings and value. Their stock prices became the only reasons for buying them which works for a while but not forever.

The other big lesson, one which should have been driven in earlier in May 2006, is the danger of overextending oneself in the futures market. The lure of stock futures is easy to understand. Put in some margin, take a big exposure on a fast moving stock, make a killing when prices shoot up. Repeat exercise. Just that people forgot that prices may also come down and at a pace which noone can even imagine, maybe their friendly stockbrokers forgot to tell them that part of the story. The result : unbridled speculation that ran into lakhs of crores, excesses that we are paying for today. Even this fall will not cure investors of their love for futures speculation but if at least some amount of caution is injected it would have been a worthwhile learning. Futures are not toys for amateurs, they are time bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.

The other learning which I hope will play out in the future, as it has in the past, is that it pays to be brave in times of panic such as these. If I was allowed to invest myself , which I am not, I would have no hesitation in deploying serious money into the market today, knowing fully well that prices may fall more tomorrow. And I would be standing there tomorrow to buy more of the same, till my money ran out. India is going to be a terrific stock market story for many years to come, even an intermediate bearish patch cannot shake that conviction of mine. At best, one will have to wait a bit for the returns to follow. That's alright. You are happy to put money in a bank FD and then wait for one full year to collect that measly 8%, aren't you? Then why does the stock market need to give you 20% every month? In the last one year, I haven't seen so many good stocks trade at such mouth watering levels. Forget trading, avoid the duds which were fuelled up by operators, just go out and buy those bluechips. They will deliver, even if there is a global market meltdown for a while, and if you are a bit patient you will be rewarded. But do remember January 2008, as history will repeat itself again in the future. Just that our memories tend to be too short and our greed too much.

NOTE: This column was written at 2pm, even as the markets were trading.

-Udayan Mukherjee, Executive Editor, TV18

Blood on the Street

2008-01-21T15:19:00.000+05:30

5450 came on the Nifty and went. 5150 came and went. Even 5000 came and went. It was a day of high drama when stocks fell left, right and centre. Almost a knockout punch was levelled by the basket selling which came in today afternoon. According to information available, today's panic selling happened because of Margin calls. The exchanges called for margins and the brokers had to sell their leveraged positions forcibly to avoid having their terminals shut down.

In a sense, it is good that most of the poison has been spewn out of the system in one day ( I hope so). The faster this correction gets over, the faster we'll be back on our feet.

What a day! No cheers!

Guest Tips Here : Part II

2008-01-20T23:20:00.000+05:30

Hi friends,

Starting a new thread for Guest Tips here as the old one was full to the brim and the page was taking a long time to load. Use this new thread to post your tips and queries. I will try to answer as many as possible, whenever I can. But you people can answer each other also, if you can. If you are addressing your question to me then please restrict your queries to a maximum of TWO Stocks at a time.

Cheers!

CURRENT MARKET OUTLOOK

2008-01-18T09:44:00.000+05:30

As you all know that the global stock markets are very weak right now and there are recessionary fears in the United States. The stock markets the world over are falling like nine pins. Only the Indian and Chinese Stock markets have so far withstood the storm relatively well. Simply because of the high economic growth these two countries enjoy. But every year, there are at least two occasions when the markets correct severely across the board. I had predicted about a correction in the overall market around the end of January on my website in my New Year Blog but it has happened two weeks earlier than I expected.

This correction is giving us and opportunity to cherry pick good value stocks at cheap prices. You can also use this correction to exit pure momentum stocks and get into high quality stocks which you always wanted to own but could not afford to because of their high prices. This is a good time to churn your portfolio and move from low quality stocks to high quality stocks. So keep an eye on the new picks I've given here and pick them up on dips.

There are two possible scenarios in the overall market:

A) That we are almost near the end of tunnel and markets should start recovering from next week itself.

B) This is the start of a bigger correction in the overall markets and things may get worse before they get better. Remember what happened in May 2006 and March 2007. Every year this happens that the markets have to go through one or two deep corrections. This may be the first big correction this year. The levels to be watched on the Nifty are 5850, if we close below that then next support is at 5700, if we breach that also then there is a possibility of the Nifty going to even 5500 or 5450.

I am hoping that scenario A plays out and not scenario B. Long term, India is still in a bull market and will make higher tops on the indices. It is just that we should be prepared to face a few road blocks on the way.

Cheers!

JK LAKSHMI CEMENT LIMITED : MULTIBAGGER

2008-01-16T14:10:00.000+05:30

JK LAKSHMI CEMENT LIMITED has been posting stellar results for the last five quarters in a row. The nine months Cash EPS till December, 2007 stands at 43.21 as against 27.57 for the same period previous year. At current price of 171, this stock is trading at a PE of a mere 3.6!!! The fair value of this stock should be three times the current market price at least. Long term investors can look forward to targets of 500 plus in the next one year. The company has also declared an interim dividend of 10% and record date for that is 30th Jan, 2008. If ever there was an undervalued share in the stock market, this is the one. Must Buy.

HOT STOCK : GODREJ INDUSTRIES

2008-01-16T13:32:00.000+05:30

GODREJ INDUSTRIES stands to gain immensely from the recent repeal of Urban Land Ceiling Act of Maharashtra. It holds a large piece of land in Vikhroli, a central suburb of Mumbai which it can now develop. After development, the rental income alone could be over 100 crores annually. According to sources, the company is holding 82.88% stake of Godrej Properties P. Ltd. which is holding 51% of Godrej Realty P. Ltd. and 100% of Godrej Waterside Properties P. Ltd. These companies are developing an IT Park at Kolkatta and a Residential Project at Thane. There is also a buzz in the market that Godrej Poperties will be coming out with a public issue soon. This and the company's foray into real estate in a big way will result in huge value unlocking for Godrej Industries.

At the time of writing this, the stock was trading at the lows of 359.40. It can turn out to be a Multibagger investment for long term investors.

Cheers!

Watchlist of Potential Winners

2008-01-14T12:54:00.000+05:30

Hi friends,

The current lull in the market and the ongoing correction in the mid-small caps will give rise to buying opportunities in several stocks which can be potential Winners. You could keep them in your watchlist and buy them on dips. Apart from my favorites CYBERMATE INFOTEK and JAYASWAL NECO, here are some more names which can be potential multibaggers in the long run:

1. Jay Ushin Ltd.
2. Jay Bharat Maruti Ltd.
3. South Asian Petrochem Ltd.
4. Aurobindo Pharma.
5. Unichem Labs
6. Agro Dutch
7. Su-raj Diamonds
8. Alps Industries
9. FCS Software
10.Shri Lakshmi Cotsyn
11.Suven Pharma
12.IKF technologies
13.Spicejet
14.Shakti Metdor

Cheers!

How to cope with the current market mayhem

2008-01-10T22:48:00.000+05:30

Hi friends,

I am inundated with your queries! But before I start answering them individually, I thought I would write a general note on what you people might be going through with the current sudden downward move of the overall market. First advice to you is : DO NOT PANIC!

The times we live in demand from us that we should be able to think on our feet and take quick decisions. But the decisions we take must be well considered and should not be impulsive. DO NOT ACT IN PANIC. There has been a great run in the small and midcap universe in the last one month or so without a break. So it is but natural that profit booking has to come in at some point. And in raging bull market like ours, corrections will always be swift and sudden.

Look at the bright side of these corrections. These corrections show you which are the stocks which are showing strength even when the market sentiment turns weak. They separate the wheat from the chaff. I would say that this is a good time for you to get out of weak stocks which were running purely on momentum and get into strong stocks which are backed by solid fundamentals. For example, if you were holding junk stocks with no EPS figures to talk about, then sell them and enter LOW PE stocks like Cybermate Infotek, Jayaswal Neco etc. in the small cap section, Aurobindo Pharma in the large caps, Unichem Labs in the midcaps. These are only a few examples of stocks you can buy in the current overall market weakness, there can be many more such stocks out there which will turn out to be big winners in the medium to long term.

I hope you get my drift.

Guest Tips Here

2008-01-02T12:44:00.000+05:30

Hi friends,

As I've always believed in the power of team-work and collective wisdom, I'm introducing this thread which is open to all the visitors to this site. I have always tried to incorporate good suggestions into my site. So all of you are welcome to post your latest stock tips here and discuss them amongst you.

To just give a few pointers to those of you who are new in the stock markets, here are a few factors which make stocks go up. A stock may go up if one or more of the following factors hold true for it:

1) If it is fundamentally sound and posting good profits consistently and if it has a low PE as compared to its peers.

2) If it is technically on the verge of an upward breakout or is in a confirmed uptrend. Learn to read the technical charts to be able to predict price movements effectively.

3) If there is some Corporate Action coming up in a stock like a bonus or a stock split or a merger/demerger, for example.

4) If the stock is in news and if some big operators/fund houses/brokerages have taken position in it.

5) A combination of all the above factors will make a stock simply irresistible and then one should not hesitate to go ahead and buy.

Happy blogging and Cheers!

PS: A link for posting tips for guests was provided earlier also (see the link GUEST STOCK TIPS on the right side of the main page), but very few people are using it. Some of the tips posted there by guests have also risen very sharply over the last few months. Instead of scattering your tips all over this site, it is much better to centralize all guest stock tips at one place for more convenience.

Happy New Year

2008-01-01T00:16:00.000+05:30

Wish all of you a very Happy & Prosperous New Year. While the star sector of 2007 was the Power & Energy sector. The sectors which I think will perform well in 2008 will be IT, Telecom, Pharma, Agri and select Metals & Mining along with select Energy stocks. The markets are likely to go higher before they go down. We might see a tearing bull rally in January. Corrections may come either around the end of January or around the end of April. But an end of the year target of 25000 on the Sensex is what I expect from this year. While the indices may give moderate returns, there will be plenty of action in the mid and small caps in the coming year.

Hope everyone prospers in this New Year.

Cheers!

HOT STOCK : AUROBINDO PHARMA

2007-12-19T10:18:00.000+05:30

One of the largest API manufacturers in Asia, Aurobindo Pharma has commercialised over hundred APIs. Aurobindo's products are spread over six major areas encompassing Antibiotics, Anti-Retro Virals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.

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.

This is an A group stock trading at a PE of only 10 at current market price. The price is near year's low and technically looks as bottoming out. The stock is also in FNO and can see some action in the near future. Being an A lister in the Pharma industry, this stock deserves a PE rating of 15-20 and thus, a price target of 780 to 1040 in the medium to long term.

Cheers!

HOT STOCK : UNICHEM LABS

2007-12-17T11:27:00.000+05:30

Unichem brings to the customer a blend of modern-day research and nearly six decades of rich experience in the Indian pharmaceuticals industry. The Company was promoted by the late Mr. Amrut Mody, a pioneer in the Indian pharmaceuticals business.

Even though formulations account for a significant portion of Unichem's revenues, the Company also manufactures active pharmaceutical ingredients (API or bulk actives). The Company has prudently addressed relevant and growing therapeutic areas like gastro-intestinal, cardiovasculars, diabetes, psychaitry, neurology, anti-bacterials, anti-infectives and pain management, among others.

Unichem is headquartered in Mumbai with five manufacturing locations in Roha (Maharashtra), Goa, Ghaziabad (Uttar Pradesh), Pithampur (Madhya Pradesh) and Baddi (Himachal Pradesh). The Company's facilities enjoy credible certifications: for instance, the Goa plant has been approved by UK MHRA (earlier MCA), MCC (South Africa), WHO (Geneva) and TGA (Australia). The Baddi plant has been approved by UK MHRA and MCC (South Africa). The Company has received ISO 9001:2000 for all its plants and corporate office. Similarly the Company has received ISO 14001:2004 certificates for its formulation plants ( Goa, Ghaziabad and Baddi) and Corporate Office at Mumbai.

As a future-focused initiative. Unichem has expanded its Research and Development facility in Jogeshwari (Mumbai) to spearhead research in Novel Drug Delivery Systems (NDDS) and develop non-infringing routes for the manufacture of products directed at the regulated markets. The Company has also funded a collaborative research with the Indian Institute of Sciences, Bangalore. Unichem's growth strategy is fueled and backed by more than 2400 talented and motivated human resources.

Source : www.unichemindia.com

The financials of the company are robust. With the full year earnings expected to be in the 23-25 range, the stock is trading at a PE of only 7.7 at cmp of 190 which is quite low as compared to its peers. The stock deserves a PE rating of 12-15 and thus the fair value of this stock should be around 300 to 375 levels. Technically, the stock looks like it has bottomed out and will now go up.

SPICEJET

2007-12-14T16:07:00.000+05:30

Prabhudas Liladhar has initiated ‘buy’ on the stock for target Rs 84. SpiceJet is the most efficient low cost player in the industry. With a fleet size of 11 in 2006-07 and passenger load factor of about 77 per cent, the company has a market share of about 8 per cent. SpiceJet's identical fleet configuration (all B737-800s) helps reduce its operational costs. Also, the absence of food on board helps it achieve a better turnaround. Irrational pricing prevalent in the industry a couple of years back has largely ceased. With improving yields and the lowest cost per ASKM in the industry, Spice is poised for a turnaround. The company has also started focusing on ancillary revenue to further boost sales. The share of ancillary revenue is expected to go up to 10 per cent (from 7-7.5 per cent earlier) in 18 months. Prabhudas expects the company to achieve profitability in 2008-09. SpiceJet is currently trading at 2.0 times 2008-09 estimate and 1.7 times 2009-10 estimated adjusted enterprise value per sales, which appears attractive for a growing company. Prabhudas expects topline to grow at 64 per cent CAGR over the next three years to Rs 2,823.9 crore by 2009-10 and achieve profit after tax of Rs 76.1 crore (from a loss of Rs 70.8 crore in 2006-07). source : Economic Times

HOT STOCK : GUFIC BIOSCIENCE

2007-12-07T10:36:00.000+05:30

Gufic Bioscience, with one of the finest Tissue Culture labs in India, along with a sophisticated R&D Center and a robust infrastructure has a vision to grow into a global Bioscience major. Informed buying has been taking place for the last few days around 10 levels and the share price is tipped to double in the near future. The Promoters hold a very healthy 70% stake in the company.

SOUTH ASIAN PETROCHEM LIMITED

2007-11-16T13:31:00.000+05:30

SOUTH ASIAN PETROCHEM LIMITED operates in the Petrochemicals market and has been doing quite well in recent times. Its half year EPS is already Rs. 2.71 and with a projected full year EPS of 5 plus, this stock deserves a re-rating upwards. Especially when petrochem companies have become the darling of the markets recently, with some stocks in this sector doubling and tripling in no time. Promoters are acquiring more stake in the company and this stock is a potential multibagger.

GODAWARI POWER & ISPAT LIMITED

2007-11-16T13:22:00.000+05:30

GODAWARI POWER & ISPAT LIMITED is all set to move up. IT IS ONE OF THE MOST UNDERPRICED STOCKS IN THE RED HOT POWER SECTOR. First half EPS already stands at 17 plus rupees. With a projected EPS for full year of Rs. 34-36, GPIL is grossly undervalued. While peer companies in the Power Sector are having PE ratios of anything between 30-150, this stock deserves a re-rating. Recently the company has cleared fund raising plans of 210 crores. Technically also, this stock looks ready for a big move ahead. Current price is only Rs. 267. Can easily become a multibagger in the medium term.

ALPS INDUSTRIES : DEEPAWALI PICK

2007-11-09T19:14:00.000+05:30

Alps Industries is a gem of a stock currently trading at dirt cheap prices. It has delivered a half year EPS of rs. 5.52 and projected EPS for full year is 11-12 rupees. The company is the owner of the well known Vista brand of window dressings and its book value is nearly 88 rupees. The stock is currently trading at a huge discount to its Book Value around the price of 46-47. In my opinion this company deserves a PE rating of at least 12, so Fair Value of this stock should be 12x12=144. It is reported that Clearwater Capital Partners has bought 3 lakh shares at Rs 47 per share (1.54 % stake) very recently. Promoters of the company and FIIs have upped their stake in the company considerably during the last one year. Alps Industries presents a huge upside potential from current levels.

SALONA COTSPIN REVISITED

2007-10-31T15:45:00.001+05:30

Action seems to be returning in Salona Cotspin (bse code : 590056). The textile industry as a whole has underperformed the market for the past one year or so due to the appreciation of the rupee against the dollar. Govt. seems to be genuinely concerned about the hardships being faced by the exporters and is taking steps to help them. Salona Cotspin has a good track record of consistently growing Net Profit figures and regular dividend payouts. Watch out for this counter, volumes are picking up. Cheers!

JAYASWALS NECO

2007-10-31T15:40:00.000+05:30

Any level is a good entry level in Jayaswals Neco. The EPS for FY08 is likely to be in 8-10 range and EPS for FY09 likely to be significantly more. Somebody has asked what is the story in this counter, the story is that the company has turned around and is now going to make very good profits. This is the next Jai Corp or next KEC International in the making. Nagpur-based Jayaswals Neco has set up a commercial power plant at Moitra village in Hazaribagh district of Jharkhand. The 270-mw coal-fired plant will have two units of 135 mw each. The company has coal mines with estimated reserves of 30 million tonnes in Moitra village itself.Jayaswals Neco has planned to sign the power purchase agreement with PTC India. The company already has a 40-mw captive power plant at Siltara in Raigarh district of Chhattisgarh where an integrated steel plant has come up.Incorporated in 1972, Jayaswals Neco essentially produces iron castings and pipes that find applications in railways and construction sectors. In 1992-93, the company diversified into the solvent extraction business. The integrated steel plant in Chhattisgarh signifies an important backward integration move. This move will bring down their costs very significantly and propel their earnings to a new level. Cheers!

POWER PLAY

2007-10-04T23:22:00.000+05:30

The power sector is red hot right now. This sector is set to reap the rewards of major reforms initiated in the country some time back. Current events like Reliance Energy coming up with an IPO of Reliance Power and the listing of Power Grid Corp will fuel the fire in Power Stocks. PTC and NTPC are going to set up Power Exchanges to trade power. Power Grid is expected to list around rupees 80. We may see a big rally in Power stocks like PTC, NTPC, Torrent Power etc. in the near future.

GOOD BUY : HPCL

2007-09-26T13:05:00.000+05:30

HPCL is a grossly undervalued stock in the currently hot and happening Oil & Gas sector. This has been largely due to APM (administered pricing mechanism) of the govt. Once APM is dismantled, this stock can sky rocket. Even otherwise, the stock is grossly undervalued and underowned. With previous year EPS standing at 75.65, this stock deserves a price of at least rs. 750. Compare that with its current mkt price and there is a lot of room for appreciation. Also there is a huge valuation gap between HPCL and its peers like RPL after a major rally in RPL, RNRL and other refinery/energy stocks. HPCL definitely deserves a re-rating upwards and market participants seem to be slowly realising this now.

SUPERSTAR GEM : DCM SHRIRAM CONSO

2007-09-06T17:55:00.000+05:30

DCM SHRIRAM CONSOLIDATED Ltd. is a diversified company operating in the Agri (Fertilizers, Bioseeds, Chemicals etc.), Cement, Sugar, Rural Retail business. Fenesta Buildings systems (UPVC Window and Door systems pioneered by DSCL under the ‘Fenesta’ brand ) is a new addition to their portfolio with great growth prospects. The company has recently received Rs. 837 crores from the sale proceeds of its Mill land in Delhi to DLF. This windfall will make the company debt free. The company has cash alone of approx. rs. 100 per share. The company has also declared an interim dividend of rs. 3 per share. This stock is a multibagger in the making.

Another Gem : SHRINGAR CINEMAS

2007-08-30T17:00:00.000+05:30

SHRINGAR CINEMAS is an excellent pick in the media sector. The Promoters holding is 48.06% qtr ending June, 2007. The EPS for June qtr was rs. 1.65 as compared to 40 paise last year. At a projected eps of rs. 6 for fiscal 2007-2008, the share trades at a PE of approx. 9. This is very low as compared to other media stocks. If the stock is brought near the PE levels of its peers, the fair value should be around rs.90. The company is adding new properties to its kitty of Multiplexes and the growth for this company's business is expected to be good. Technically, once this stock closes above 62 with good volumes, it could then go up to the next level of 75.

INVESTMENT PICK : AGRO DUTCH INDUSTRIES LTD.

2007-08-27T14:51:00.000+05:30

Hi friends,

Presenting a gem of an investment opportunity for patient investors: Agro Dutch Ind Ltd. Agro Dutch is a premier packaged mushroom producer in the country and exports its products to many countries across the globe. The current valuations of the stock are mouth-wateringly cheap. The first quarter eps jumped from 1.37 last year to 2.89 in the current year. With projected eps of rs.10 plus for 2007-2008 fiscal, this stock trades at a PE of a mere 2.5 approx. at current price. The promoters of the company have added 4% shares to their kitty from June 2006 to June 2007. This stock can easily go over 50 rs. within a one year time frame. Strong BUY rating.

SUPREME PETROCHEM

2007-07-25T10:02:00.000+05:30

There have been lots of rumors floating around on Supreme Petro that the Operator is going to take the stock price to around 33-34 levels within a month. If we look at the stock fundamentally also, it seems to be a good buy. Trading at a single digit PE, the downside from the cmp of 24 is limited and the Upside prospects look good. The company had also entered into a MOU with the govt. of Maharashtra for a project, which should help in the growth of this company.

Investment Pick : SATNAM OVERSEAS (KOHINOOR FOODS)

2007-07-24T11:38:00.000+05:30

Satnam Overseas (Kohinoor Foods) presents excellent value for money at current mkt price. Having posted an eps of rs. 11 plus for 2006-2007, this share is trading at a very low single digit PE. Dividend of 10% has also been declared. Since this company is primarily in the exports of Basmati Rice and other Processed Foods, the stock price is currently depressed because of the depressed dollar value against the rupee. But going forward, the future should be good for this company. Excellent BUY at current levels and one can expect minimum 50% appreciation within one year.

Investment Pick : THIRUMALAI CHEMICALS

2007-07-24T11:32:00.000+05:30

Thirumalai Chemicals is a great stock for investment, at current mkt price. The company has posted an excellent eps for the June 07 quarter of Rs. 11 plus. The full year's eps for 2006-2007 was Rs.24 plus. The company has recently given 90% Dividend also (9 rs. per share). The medium term target for this stock is Rs. 300 and Long term Rs. 400. Currently trading at a low single digit PE. Downside risk is minimum and Upside gains can be huge.

Momentum Play

2007-07-15T13:27:00.000+05:30

Momentum is back in the mid-small caps and traders should make hay while the Sun shines. The volumes have increased many fold in the smaller stocks and one can take short term positions in stocks like Supreme Petro to make quick gains. Cheers!

New Astro Post

2007-07-10T11:14:00.001+05:30

Check out your astro forecast for the coming month at my astro site: http://superstarastro.blogspot.com

MADHAV MARBLES REVISITED

2007-06-20T14:56:00.000+05:30

Madhav Marbles was first recommended by me around Rs.90 levels approx. six months back after which it rallied to 162 levels within approx. one month of my reco. It stayed in the 140s for quite a long time. Then after the market crash in March, this stock has come down to its current lows of around Rs. 75. The company has already posted an EPS of Rs.20 for nine months and the full year EPS could be approx. Rs.25 or more. The reason for its fall to current levels could be the depreciating value of the Dollar against the Rupee, besides Operator activity. The company has a board meeting on the 28th of June, 2007 to declare the annual results and discuss dividend. I think it is available at a steal presently and can give rich rewards in the future, if held patiently. The delivery volumes are a very high 79% which indicate accumulation. Cheers!

HOT INVESTMENT PICKS: ARVIND MILLS

2007-06-01T12:46:00.000+05:30

The demand for denim is picking up again, and Arvind Mills is currently trading near its year's lows. I reckon it's time to start buying this stock again. Arvind Mills is a frontline stock in the textiles sector and has posted an eps of Rs. 5.40 for the year ended, March, 07. There was a time when Arvind Mills used to trade at a PE of even 20, but currently trading at a PE of only 8. The delivery volumes for yesterday were a very high 69%. Technically also this stock looks ripe for an upmove, with immediate targets of 55 and then 68. For long term investors the targets can be over 100 also. Cheers!

PS: I continue to like SRF Limited, Salona Cotspin (bse) and FCS Software. These are at the top of my buy list.

Astro Forecast and Market Outlook

2007-03-17T16:17:00.000+05:30

Hi friends,

Sorry for the delay in publishing this month's astro forecast for all the Moon signs of the zodiac. I have been quite busy lately and just could not find the time to do it earlier. The forecast has now been published and you can go to my astro site : http://superstarastro.blogspot.com/ to read it.

My outlook for the stock market in the coming month is cautiously positive. I feel that the worst is behind us and one can selectively cherry-pick good value stocks which have been beaten out of shape, for long term investment. The sectors to watch would be Textiles, Chemicals, IT, Pharma & select Banking in the coming weeks. The world wide mayhem in the stock markets was triggered by the inauspicious opposition of Mars and Saturn in the celestial skies. And once Mars moves out of Capricorn on 29th March, things should get better. But the real big change will only come only after 16th July, 2007 when Saturn returns to Leo.

Cheers!

FCS SOFTWARE : Value Pick

2007-02-21T09:35:00.000+05:30

Continuing with my theme of concentrating on Value stocks in the current market weakness, I present another potential multibagger. The company has posted a nine months EPS of Rs.11.45 and at a projected EPS of Rs.15 for full year, the fair value of this stock should not be less than 150. But the stock is currently trading at only 82.30. Clearly, it is one of the most undervalued IT stocks in the market.

SRF Limited : Value Pick

2007-02-13T22:02:00.000+05:30

SRF Limited is a textiles and nylon fibre manufacturing company with nine months EPS at rs. 36 approx. At cmp of nearly rs. 160, this stock is definitely a Value Pick. The year's low was 136.50 and high was 372.70. The company also stands to gain from carbon credits. It is a very attractive buy at current levels and the current weakness in the overall markets can be used to accumulate this stock.

Recent pieces of news from the company:

SRF Ltd has informed BSE that the Board of Directors at its meeting held on October 27, 2004 inter-alia, had approved capital expenditure proposal for Modernization and Expansion of capacity of Industrial Synthetics Business (now Technical Textiles Business) at Manali (Madras) and Gwalior.The Company has now informed that, following projects have been commissioned:
1. Expansion of capacity of Nylon Tyre Cord Fabric at Gwalior— from 10000 MTPA to 17000 MTPA
2. Expansion of Poly and Spinning capacity at Manali — from 11000 MTPA to 25400 MTPA.

SRF Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 20, 2007 has approved the following projects:
1. Upgradation of R&D facility and pilot plant at a total cost of Rs 14.40 Crores.
2. Manufacturing of a new fluoro speciality chemical at a total cost of Rs 14.35 Crores.

Golden Opportunity

2007-02-12T10:53:00.000+05:30

Friends, you have seen almost the entire market melt down in the last few days. The mid-small caps stocks have been badly hit. I would reckon that one should not look at the indices right now and concentrate on individual stock valuations. This current dip in the market is a golden opportunity to accumulate VALUE stocks, specially in the mid-small cap sectors. Stocks are now changing hands from the weak players to the stronger players in the market who have a better holding power. Some of my readers have been asking me what to do with the stocks they are holding. Instead of addressing each one personally, I'm writing this post. I personally am buying Value stocks on every dip. I feel that the dip in the value stocks is temporary and those who accumulate good stocks now, will turn out to be big winners in the medium term. And btw, I've posted the zodiac signs forecast for the next month on my astro site : http://superstarastro.blogspot.com/

Salona Cotspin : Another Gem

2007-02-06T13:35:00.000+05:30

Friends, continuing with my endeavour of creating wealth for all my readers and well-wishers, I am presenting another gem: Salona Cotspin (bse), yesterday's closing price Rs.21.75. This textiles company has been posting excellent results consistently and the nine months eps for 2006-2007 stands at over rs.5. My attention was drawn to this stock by a guest on my site and after checking the fundamentals and technicals of this stock, I am giving it a Buy rating. Cheers!

TT Limited

2007-02-02T10:13:00.000+05:30

TT Limited is a fast growing company in the hosiery business. I'm sure most of you would be familiar with their TT Brand. They have just declared an interim dividend of Re.1 (10%) which can be availed. The half year eps has been over Rs.3 so far and the stock's closing price yesterday was Rs.24.50. The stock looks undervalued and there is scope for a lot of appreciation from the current levels in the medium term.

Action Themes

2007-02-01T15:26:00.000+05:30

The themes which will see heightened activity are likely to be the Carbon Credits theme, Leather goods, Mining and Minerals, Heavy machinery, Quality Realty apart from Metals and Oil related sectors. Stocks which immediately come to mind are SRF, Guj Fluoro, SAIL, Mirza Tanneries, Chemplast, BHEL, Lok Housing, Madhav Marbles.

Sectors to watch : Metals & Oil

2007-01-31T09:47:00.000+05:30

Astrologically, the time is good for the Metals and Oil sector. There could be hightened activity in these sectors for the next one or one and a half months. One can take a look at these sectors for the medium term.

Maadhav Granite & Realty Ltd. (Madhav Marbles)

2007-01-24T13:55:00.000+05:30

I had initially started coverage of Maadhav Granite at the price of Rs. 90 with a BUY rating. Within approx. one month of my call, the stock raced to 161.5. Since then it retraced to 140 levels, where it spent quite a lot of time consolidating. The third quarter results are now out, and as expected, they are excellent. The EPS for nine months now stands at Rs.19 plus. The management is good and some new projects are on the anvil. It is a BUY with a target of Rs.250 in the medium to long term.

Guest Stock Tips

2007-01-22T01:51:00.000+05:30

Friends, in order to make this site more interactive, I'm introducing a column where each one of you can post their stock tips. This website is meant for sharing information about hot stocks, so each one of you can contribute. Instead of posting about stocks you like in other Stock headings, you can now post them all under this heading.

Some points to be noted while posting your tips:

1. Pls give the rationale behind your buy/sell call on any particular stock about which you are writing. Any info that you can give about the stock that will help the readers in making their buy/sell decision.

2. Pls give current mkt price and your targets for the stock which you are posting about.

3. Pls DO NOT post comments which are meant to market some other sites. Make sure your comments do not contain any links to other sites. Such comments will be rejected. Only relevant links to the site of the companies whose shares you are commenting about will be allowed.

Cheers!

The next Superstar Stock: MP Glychem (bse)

2007-01-16T11:00:00.000+05:30

MP Glychem (bse) is a company belonging to the Ruchi Group and is in the business of solvent extraction. The new name for the company is Anik Industries (bse code: 519383). India is witnessing a retail boom and the prospects of this company look good. The fundamentals are just great too. The half year eps of this company is already approx. Rs. 3. So, it is currently trading at very low PE ratios. On fundamentals alone, the fair value needs to be at Rs.60. And there are also rumors of stake sale talks with Reliance retail. The Promoters are also buying this stock to add to their shareholding. Visit www.ruchigroup.com

Cheers!
Superstar

Important Information for every citizen

2007-01-15T23:57:00.000+05:30

Received the following in my mailbox tonight. Thought I should share it with everybody:

"Did you know that there is a system in our constitution, as per the 1969 act, in section "49-O" that a person can go to the polling booth, confirm his identity, get his finger marked andconvey the presiding election officer that he doesn't want to vote anyone !!!!
Yes, such a feature is available, but obviously these seemingly notorious leaders have never disclosed it. This is called "49-O".

Why should you go and say "I VOTE NOBODY"... because, in a ward, if a candidate wins, say by 123 votes, and that particular ward has received "49-O" votes more than 123, thenthat polling will be cancelled and will have re-polled. Not only that, but the candidature of the contestants will be removed and they cannot contest the re-polling, since people had already expressed their decision on them.

This would bring fear into parties and hence they will have to look for genuine candidates for their parties for election. This would change the way, of our whole political system... it is seemingly surprising why the media and election commission has not revealed such a feature to the public.... please spread this news to as many asyou know... Seems to be a wonderful weapon against corrupt parties in India... show your power, expressing your desire not to voteanybody, is even more powerful than voting... so don't miss your chance. So either vote, or vote not to vote (vote 49-O) and pass this info on... "

Astro Forecast for the period 15th Jan to 14th Feb

2007-01-14T14:59:00.000+05:30

Beginning today, I'll post a monthly Astro forecast for all the 12 Moon signs. Note that the forecast is based on Moon Signs and not Sun Signs. If you don't know what your Moon sign is then you need to take a look at your birth chart (horoscope) and see in which zodiac sign is the Moon placed. That is your Moon Sign. Forecast for the period 15th Jan, 2007 to 14th Feb, 2007:

Aries - This is a bright month for you. You will be in high spirits as your income will be good and you will have many opportunities to socialize with friends. Friends will also be instrumental in furthering your career interests. You will have to take care of your health and some minor problems related to kids.

Taurus - The month begins on a high note with opportunities of intimacy with the opposite sex. Travel is also on the cards, which maybe for business and/or pleasure. Elderly people may have trouble with their knee(s). Beginning of Feb will open up new income avenues for you.

Gemini - Mars is stationed in your house of spouse this month, so avoid unnecessary arguments with your spouse/lover, as that might escalate into bigger trouble. It is also prudent to get a complete health check up done. If contemplating some major career or health related decision then it is better to postpone it for later.

Cancer - Saturn has returned to your sign in retrograde motion to conclude some nagging issues which have been pending for the last few months. Children will be a source of joy at the beginning of this month. There is also a possibility of romance from more than one quarters. You need to take things easy this month.

Leo - Issues about loans given or taken will come to the surface this month. Listen to your mother for guidance and comfort. Your mental abilities will be sharp and students will do well in their studies. A domineering attitude, specially inside your house, will not be in your best interests, so be a little more democratic.

Virgo - You will receive help and comfort from younger siblings this month. Property related matters will come to the fore. Children will keep you busy with their activities. Health of father may be a cause for concern. Investment in petro product companies may give short term profits.

Libra - The month may start with an income boost or sharp gains in your investments. You will be courageous and willing to take risks in all aspects of your life. New vehicle or new house/renovation of house will be on your agenda this month. Be careful that your bubbling enthusiasm does not become recklessness.

Scorpio - Not just this month, but this entire year will be a lucky year for you due to the benign influence of the magnanimous planet, Jupiter. The first part of this month can bring some great monitary gains. Planning for some journey may also take place now. Enjoy this rosy period.

Sagittarius - You will think and act like a leader. Even in your family gatherings, people would like to make you incharge. You will have a commanding personality this month, but be careful not to give too many orders to your spouse/partner. Some chronic ailment may resurface, so take good care of your health.

Capricorn - This is going to be a hectic month for you. Your place of residence or work will be buzzing with activity. Learn to delegate work, else you might not be able to handle all the work that's coming your way. You are likely to reap the financial gains of your old work/investments in the month of Feb.

Aquarius - Your expenses will be heavy this month. But it is some consolation that your income will also keep pace with your expenditure. You may plan for a pilgrimage or a religious ceremony. Old contentious issues or pending court cases may resurface in the coming months. Seek divine help.

Pisces - If you have children, they might be a cause for concern. Your luck is shining this month and you will do well in your business/career. You will gain from the advice of your younger brother or brother-in-law. You are likely to splurge the money you'll make in the earlier half of this month, in the latter half.

Astrology Forecasts

2007-01-12T13:18:00.000+05:30

Friends,

Those of you who know me for a long time and have been familiar with the various astrology columns and weekly forecasts I used to write online, have requested that I start an Astrology column on this site too. So, giving respect to that request, I am thinking of starting something on Astrology and maybe a monthly forecast for all the zodiac signs and how their fortunes will be every month in the stock markets.

But such an effort will take up a lot of my time and then you must support this site by clicking on the google ad-links. In order to keep this site totally free, every visitor should atleast click 3-4 google ad-links daily. It will not cost you anything but it will keep this site running.

Cheers!
Superstar

Sugar Sector Outlook

2007-01-12T11:08:00.000+05:30

Sugar Sector has been in a downtrend for quite a long time now............approx six months. But let's not forget that this sector had gone up 4-6 times in the year before that. Being a commodity sector which is regulated by the government, the fortunes of this sector are mostly guided by the govt. policies. The lifting of ban on exports can revive this sector. Technically speaking, one can expect some kind of bottom being reached soon in this sector. The stocks which can be accumulated on falls are Bajaj Hindustan, Oudh Sugar, KCP Sugar.

One can start entering Bajaj Hindustan around 195-200, Oudh around 80-84 and KCP around 26. These can be good starting levels of entry in a staggered manner.

Cheers!
Superstar

Dark Horse: Yash Management & Satellite

2007-01-09T13:54:00.000+05:30

The future is Nanotech. It is believed that Nanotechnology will revolutionize the fields of Electronics, Medicine and Material sciences. Yash Management & Satellite is a Mumbai based media company which has now changed its operation profile.

Mr Anurag Gupta, Managing Director of Yash Mangement, confirmed that the company is indeed changing its operational areas completely. "We are dismantling the old business and the media content outfit is being hived off. Yash Management is now being shaped up as a joint venture with Cientifica, a global nano-tech research and consultancy services major. The new outfit is getting into contract research, consultancy and marketing of nano-technology related products," Mr Gupta said. At present, the company's nano-tech division - Yash Nanotech - is setting up a dedicated centre for contract research near Mumbai. "Immediately, we are starting research work in nano-tech in application areas of pharmaceuticals, paints and auto tyres for some of our clients," said Mr Gupta.

As a precursor to its collaborative research arrangement with IIT-Mumbai, Jawaharlal Nehru National Research Centre, Bangalore, and National Chemical Laboratory, three scientists have been inducted as advisors to Yash Nanotech. Visit www.yashnanotech.com for more info about the company.

PS: A strict stop loss of 12.50 was given

Cheers!
Superstar

Market Outlook

2007-01-08T23:44:00.000+05:30

The feeling that 2007 may be the year of mid-small caps is catching on among Stock Mkt players. There was a total disconnect between the price rise of Index stocks and Mid-Small caps in the year 2006, where only the Index heavy weights and a select few pockets of the market saw action.

Talking about near term outlook, I feel there may be a dip in the markets before the coming budget, so one must excercise caution. If at all a dip comes, it will be a good opportunity to accumulate undervalued mid-small caps. The index might be rangebound, while action will shift to underpriced mid-small caps. But for the full year, the outlook is bullish. It is my expectation that by the end of 2007, the index may scale 16000 plus levels.

Cheers!
Superstar

Current Picks: Gupta Synthetics (bse)

2007-01-03T13:09:00.000+05:30

Gupta Synthetics is a textile processing company having very strong fundamentals. First recommended by me at 118 levels, this stock ran upto 390 levels with a month and a half of my reco. Subsequently a 2 for 1 bonus was announced by the company, but since the record date was not informed, the stock corrected back to around 250 levels. The record date for bonus has been announced as 8th Jan, 2007 and the stock has started rising again after my second buy call. Currently at 309 levels, Gupta Synth is still trading at a PE of less than 5, leaving a great scope of appreciation. If the company continues to post good earnings figures consistently, a target of over 500 can very easily be achieved for the medium term investors. Visit the company's website: www.guptasynthetics.com for more information about the company.

Introduction

2007-01-03T12:42:00.000+05:30

Does the name Superstar really need an introduction? I guess not if you have profited by following his calls on the moneycontrol website. Unlike stock tippers who come and go like flashes in a pan, Superstar has passed the test of time having been in the Indian Stock markets for nearly a decade. You have seen almost all of Superstar picks becoming Multibaggers. Investors who have been following the Superstar calls on moneycontrol over the last nearly five years will vouch for that. Some of the gems which were discovered by Superstar included Graphite India, CCL Products, KEC International, Sintex Industries, KCP Sugar, GE Shipping, IPCL, Kirloskar Oil, Shreyas Shipping, Gupta Synthetics, Plastiblends, Madhav Marbles, CESC, Today's Writings, CrewBos, Basant Agro, Adlabs, Prakash Industries, Garware Wall, KLG Systel and many many more have become MULTIBAGGERS since they were first discovered by Superstar.

This website is being created on the suggestion of many of Superstar's friends and clients so as to eliminate the dependence on the very unreliable moneycontrol site, where the admin keeps fiddling with the comments posted as per their vested interests. So, with the beginning of the new year 2007, let this be a new start in WEALTH CREATION for the individual investor, whether small or high networth. Amen.