CMP : Rs. 417
Medium term target : Rs.500
Long term target : Rs.600-700 (depends on growth delivered by the company)
What holds the future for Biocon ?
Biocon generates 78% of its revenues for Bip-pharmaceuticals and only 9% from research services. However, the company is looking at Research services to be the Key growth drivers of its future earnings together with its leadership in the Insulin segment.
The company has delivered good results . The sales have crossed Rs. 700 crores . The profit after tax has increased by 49%. The company has also declared 40% dividend.
The company has entered into strategic alliance with Vaccinex.Inc USA,to discover and co-develop therapeutic antibody products. This partnership is expected to open up a Multi Billion dollar opportunity for Biocon.
The EPS for FY04-05 was Rs. 20 which converts into P/E of 21 for the current market price.
Promoter hold 65% stake in the company.
Biocon is India's leading biotechnology enterprise. It is ranked No. 1 Biotech company in India and No.16 in the world It is the largest and only USFDA approved producer and exporters of STATINS. The company boasts of Asia largest Insulin plant located in Bangalore. Biocon R&D has key focus areas of Diabetes and oncolgy which could result to be a major revenue generator in coming years. India has 31 Million diabetic cases in year 2000 and this number is expected to go to 79 million by year 2030.
Biocon has alliance with CIMAB to work for clinical research for neck and head cancer.
Human Insulin, Oral Anti diabetic, statins, tacrolimus, sirolimus
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The company has come up with an IPO and is offering 71 lakh shares to public at Rs. 14 per share.
Beeyu Overseas is 100% export oriented company. It exports Tea and coffee and has Estates in Ooty and exports to number of countries including UK, UAE and CIS which account for a major share of the exports. The company has aggressive growth plans in place to increase its export earnings.
The issue is priced at a P/E of 11, which looks reasonable in view of the performance of existing Tea stocks, which have an average P/E of 19.
The current Book Value of the companyÂs share is Rs. 17.34
This stock is a darling of the Swing Traders and why not, the bandwidth that this stock provides speaks for itself.
The stock has an intact swing between the range of Rs.205 - Rs. 240. These are the two strong pillars between which the stock price swings quite frequently. The stock is not able to break any of this range.
Good stock for day traders. The third eye recommends keeping an eye on the counter as the stock moves in this range and tries to break it out. Safe to enter between Rs.205-210 range and exit between Rs.230-240 range for swing trading.
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Coping with stress?
1. Recognise the fact that stress is a part of life and your body will automatically prepare itself to manage it better. Don’t panic.
2. Believe in yourself: Most of the times we are stressed not because of a thing, but due to the perception we build in about the thing. Change your perceptions. Remember that you are more powerful and channelise your positive energy to fight stress.
3. Anticipate Stress: Many times the stress is caused by repeititive reasons. Analyse the reasons causing the stress and manage yourself in order to avoid that situation.
4. Think positive: Do your best in whatever you do and the results will certainly be motivating.
5. Express yourself. Talk about your problems. Suppressed feelings, anxieties, self-doubts, and low esteem are among major stresses that lead to illness and disease.
Skumar Nationwide stock is recommended for a long term Investment (1 -2 Years)
Current Market Price : Rs. 23
The target price
With its entire expansion and growth plan in place, the company is expected to achieve a targeted FY06 EPS of Rs.4 and FY07 EPS of Rs. 6. With the textile sector in limelight and expected to garner higher valuations, the stock can touch the Rs. 40-50 levels within one year on a conservative basis and Rs.70-80 levels in next two years.
(Please read the disclaimer clause before acting on any recommendations or ideas on this blog)
What makes this stock a good buy?
Skumar nationwide is a turnaround story in making and belongs to the textile sector, which is expected to emerge as an outperformer in the long term.
Skumars boast of brands like Reid & Taylor and Tamarind.
The company has pruned its bottom line with a debt restructuring exercise to take heads-on the vast growth opportunities in its niche areas. The company’s strategy includes operating in all segments of the textile sector.The company has plan to alliance with International brands and make further inroads in the retail business.It also plans to invest Rs. 300 crore over the next five years to give shape to its plans and the money could be raised through privtae placement. The private placement will also help unlock the value for the shareholders
At the Offer Price Rs.30 and the EPS of Rs. 5, the offer comes at a P/E of 6.
Considering the current market scenario, the stock is worth considering for applying in the IPO to garner the LISTING gains. However, long term hold in this stock is not advisable. Book your profits within a week of the listing to be on safer side.
The company had a total current installed capacity of 15,000 MT per annum. The Company has gone for a major expansion programme and has added 20 ton Counter Blow Hammer and Open Forging facilities which will substantially increase the current installed capacity to nearly 30,000 MT per annum
SGF baosts of customers in the Automotive Industry, Two Wheeler Industry, Earth Moving Industry, Tractor Industry and for Defense application.
The compnay has been incerasing its export pie. It has export customers in USA, Canada, U.K., Ireland, Europe and Middle East markets
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1. Identify various areas for Investments. For example Equity shares, Debentures, Govt. securities, Bonds, Mutual funds, fixed deposits, Insurance products etc.
2. Identify your Risk appetite. The more Risk you are willing to take, the more will be your exposure towrads equity investments. If you are in the age range of 25-30, it is recommended that you take higher exposure to equities.
3. Follow a disciplined path for investing your money in the stock markets. Don’t invest heavily in a single stock. Keep your investment spread in stocks of different sectors, putting more weightage on the sector that is currently performing.
4. Instead of investing your whole money in one shot, invest at different intervals to gain the cost averaging.
5. Set an exit target for each stock and exit when that target is reached. Don’t be greedy. The realisation from the exit stock should be invested keeping in mind your investment in different sectors.
6. If you are a beginner and do not have much capital and knowledge to invest, choose the IPO mode.
7. Give time to your Investments. Keep track of the happenings in the stock market in general and your stocks in particular. Churn your portfolio if you feel you don’t have the right mix. Avoid excessive churning.
For more on Diversification Strategy…keep visiting this blog. This blog is dedicated to make you a successful investor capable of taking an informed and rational decision relating to your investments rather than simply relying on rumours.
This stock is recommended for short term Investment. (1-3 Months)
The company has revamped its operations and starting its low-cost no frills air services named spice jet from 23rd May on various routes. The company’s strategy is to capture the traffic on routes, which are not covered by the existing low-cost offering airlines.
The company is also planning to come up with a GDR issue to finance acquisition of aircrafts.
The stock is currently trading at Rs.65 and is expected to touch a range of 85-90 within three months primarily driven by the reorganisation of the business.
Partial profit booking at 78-80 is also recommended if the scrip touches this range within a month.
Please read the Disclaimer before acting on any recommendation on this blog.
First of all I would like to thank you for the overwhelming response to my web page. The web page has drawn 140 visitors in a single day ! Thanks again and I assure you that this web page will continue its endeavour to make you a highly successful investor.
Just wanted to share the successful debut of "The third Eye" column which recommended a watch on the TV18 counter. The stock has gained handsomely and I am sure those of you, who have applied the recommendation and acted on it would have reaped good profits.
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Instinctively, you may think that the individual securities you own drive investment performance. But according to one prominent study, asset allocation was singled out as the largest determinant of a portfolio’s success.
Modern Portfolio Theory
Asset allocation is just one component of Modern Portfolio Theory, which was introduced in 1952 by Nobel Prize winning economist Harry Markowitz. In summary, Modern Portfolio Theory suggests that the risk of a particular security should not be looked at on its own, but rather in relation to a portfolio as a whole. It also explains how risk-adverse investors can construct a portfolio that optimizes expected returns given a particular level of market risk.
The study analyzed data from 82 large corporate pension plans with assets of at least $100 million over a 10-year period beginning in 1977 and concluded that asset allocation policy explained on average 91.5% of variation in total plan return.
2. Start investing early
3. Invest in things you know
4. Avoid fads
5. Don't let a market slump change your long-term investment plan
6. Don't check the price of a stock (or mutual fund) after you've sold it
7. Pay attention to what's going on with your investments
8. Be realistic about your tolerance for risk
9. Hold onto your winners and sell your losers
10. Get the best investment advice you can--and then think for yourself Read More!
I booked my profits !!!! (cooool!) Did you ? Read More!
The stock warrant is down 20% as compared to yesterday's price of Rs. 30. The stock warrant is currently at its all time low of Rs.24
The Company has posted good results and a quarterly EPS of 5.6 which makes the stock as well as the warrant attractive at this level. But the point is consistentcy....
Good buy for short term trading ....
The Third eye recommends to watch the counterRead More!
See you back after market close ...unless I have something immediate to share.
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Watch out for the next Investment idea !!! Read More!
Currently there is a 10% limit regardless of equity held. If parliament approves the cabinet decision, voting rights in banks will be aligned to shareholding
This has led a spurt in the prices of the Banking Stocks with many banks hitting the upper circuit.
Both Private and public sector banks gained . but private banks took the lead.
Catch the action...!!!
Buy at 64-66 levels
Expected to touch 90 within Three months Time frame.
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Investment Basics -Why should I Invest and How ? ....Watch Out !!! Read More!
Rajesh Read More!