GVK Power has announced a major move to consolidate its unlisted holdings in infrastructure assets under its flagship company GVK Power and Infrastructure. The combined entity would command an asset base of around Rs. 19000 crores and would have interest in Power, airports, roads and mining. Investment Guru is of the view that this consolidation move would help to re-rate the company valuations as it would increase the muscle power of the company to bid for larger projects and would also help to increase the growth rate. The momentum in the stock has already started and is expected to continue in the coming days. The Third eye recommends investors to consider the stock with a view to take advantage of re-rating phenomenon on the stock markets.
Please note : The third eye column is not a recommendation of a stock as an Investment Idea. It does not carry any targets and is just an indication of the trigger in the stock. Please trade cautiously and read the disclaimer clause before acting on any article on this blog Read More!
Robust sales in the domestic market and higher capacity utilisation spurred state-run SAIL's third quarter net profit by 124.2 per cent at Rs 1,471.19 crore as against Rs 656.07 crore in the corresponding quarter last fiscal. The company also declared an interim dividend of 16 per cent against the paid-up equity amounting to Rs 660.86 crore for the nine month period ending December 31. SAIL's total income during the quarter ended December 31 stood at Rs 8,760.16 crore, compared to Rs 6,736.84 crore in the same quarter previous fiscal, up 30 per cent quarter on quarter.
Welspun Gujarat net up 415%
For the Quarter ending 31st December, 2006, Welspun Gujarat Stahl Rohren Limited (WGSRL), part of 1 Billion USD Welspun Group, reported top-line of Rs.7400 mn in Q3 – 07, a growth of 62 % as compared to Rs. 4556 mn in Q3-06. EBITDA reported grew by 217% from Rs. 302 mn to Rs. 958 mn. Net Profit increased by 415% and Cash PAT increased by 228% in Q3-07 as compared to Q3- 06.
L&T Q3 net up 84%
Q3 net profit was up at Rs 344 crore versus Rs 258 crore , YoY. Its Q3 net sales was up at Rs 4188 crore versus Rs 3688 crore, YoY. The company's adjusted net profit surged 84% to Rs 344 crore versus Rs 187 crore. L&T also got more than Rs 6,000 crore of orders during Q3. The company's current order backlog at about Rs 35,000 crore.
TV18 Q3 cons net up at Rs 19.32 cr
Q3 consolidated PAT pre ESOP was at Rs 19.32 crore versus Rs 16.04 crore, QoQ. Its Q3 operating revenue was up at Rs 64.8 crore versus Rs 53 crore, QoQ. On YoY basis, the company has posted consolidated net profit at Rs 19.32 crore against Rs 12.79 crore during the correponding quarter previous year. The company posted Q3 EPS of Rs 3.69 and its Q3 operating profit margin stood at Rs 49.32%.
Info Edge Q3 net profit at Rs 8.1 crore
Q3 Total Revenue of Rs. 379.26 million (up 71.16% Y on Y). Q3 EBITDA of Rs. 132.91 million (up 61.56% Y on Y). Net Profit for the nine months ended December 31, 2006 was Rs. 998.72million and Rs. 169.36 million respectively, a growth of 71.16% & 50.14% respectively, over the same period in the last financial year.
BPCL reports Q3 net profit at Rs 303.5cr
The company posted net profit of Rs 303.5 crore (Rs 3.03 billion) versus net loss of Rs 1131.8 crore (Rs 11.31 billion) YoY.
Its total income increased to Rs 24354.3 crore (Rs 243.54 billion) versus Rs 20361.5 crore (Rs 203.61 billion).
Syndicate Bk Q3 net up at Rs 226.1cr
The company posted YoY net profit of Rs 226.1 crore (Rs 2.26 billion) versus Rs 187.88 crore (Rs 1.87 billion). Its NII was up at Rs 556 crore (Rs 5.56 billion) from Rs 534.8 crore (Rs 5.34 billion).
Blue star Q3 net up at Rs 11.5 crore
Q3 net profit was up at Rs 11.5 crore versus Rs 6.9 crore, YoY. Its Q3 net sales was up at Rs 370 crore versus Rs 264 crore, YoY.
Mid-Day Multimedia Q3 results Disappoints
Q3 net profit was down at Rs 2.21 crore (Rs 22.1 million) versus Rs 4.65 crore (Rs 46.5 million), YoY.
IBP Q3 net profit at Rs 732.4cr
The company reported net profit of Rs 732.4 crore (Rs 7.32 billion) versus net loss of Rs 96.3 crore (Rs 963 million). Its total income was up at Rs 5454.9 crore (Rs 54.54 billion) from Rs 3961.3 crore (Rs 39.61 billion). Read More!
No. 5 Principal Tax Savings
NAV : Rs. 80.6
Launch Date : March 1996
5Year Returns : 55.96 %
3 Year Returns : 44.79%
1 Year Returns : 22.58%
Principal Tax savings fund has been able to get a rank in Top 5 ELSS funds of Investment Guru. Actually there was a neck to neck competition with Sundaram BNP Paribas Tax saver fund for this slot. However better consistency paid dividends and it finally managed to sneak in the Top 5 funds. The fund has high exposure to Energy, Financial Services, Services and Technology sectors. Reliance Industries, Phoenix International, Centurion Bank of Punjab, Grasim and Jindal Steel and Power fare among the top holdings.
No. 4 Prudential ICICI Tax Plan
NAV : Rs. 94.66
Launch Date : August,1999
5Year Returns : 51.08 %
3 Year Returns : 47.92%
1 Year Returns : 21.87%
This fund had a better three year return than the No.3 fund. However it lagged on the 5 year returns parameter with a big gap. This fund has high exposure to Health care, Chemicals, Diversified, FMCG and Auto Sector. Cedilla Healthcare, Sundaram Clayton, kesoram, Trent and Andhra bank are among the top holdings.
No. 3 HDFC LT Advantage Fund
NAV : Rs. 95.78
Launch Date : December,2000
5Year Returns : 55.96%
3 Year Returns : 44.79%
1 Year Returns : 22.58%
HDFC long term fund is a star performer from thye HDFC Stable. This fund has proved to be low risk and high Return fund. In terms of 5 Years performance it has actually done better than the No. 2 ranked fund. However, it has lagged in comparison to the No.2 fund in terms of 3 years return by a big margin. The fund has high exposure to FMCG, technology, metals, Chemicals and services sector. Top holdings include Concor, Maharashtra Seamless, Reliance Industries, SBI and Blue Star.
No. 2 HDFC Tax Saver
NAV : Rs. 149.33 (Growth option)
Launch Date : March,1996
5Year Returns : 52.86%
3 Year Returns : 54.19%
1 Year Returns : 28.13%
A star performer from HDFC, this fund has earned a distinct respect for itself in its category. The fund has an excellent track record and on the management front it should be ranked No.1 The fund has limited itself to a limited number of shares to improve its watch over its holdings. HDFC Tax saver funds has high exposure to Auto, Engineering, Technology, Construction and FMCG sector. Tata Motors, Crompton Greaves, Thermax, Infosys and Satyam are top holdings.
No. 1 SBI Magnum Taxgain
NAV : Rs. 58.19
Launch Date : March,1993
5Year Returns : 60.41%
3 Year Returns : 67.21%
1 Year Returns : 43.84%
The true leader in wealth creation, Magnum taxgain has been able to outperform all other ELSS funds on a consistent basis. The fund has bagged No. 1 rank in 1 Year, 3 Year and 5 Years returns. One of the main reasons for funds outperforming its peers is that it has able to take advantage of the ongoing boom by investing the hot sector at right time. Given the dynamic fund management, it is expected to continue its lead in the Tax saving mutual funds. However, the fund would get a tough competiton from HDFC Tax saver fund. Magnum Taxgain is heavily invested in Technolgy, Construction, Engineering, Diversified and Metal sectors. Jai Prakash, Shree Cement, Reliance Communication, Crompton Greaves and Infosys are the major holdings.
After going through the above analysis, Investment Guru is of the view that a prudent Investor should put his money in Magnum Taxgain and HDFC Tax saver Fund. For those who do not want liquidity at regular intervals, Growth option would be good. For those, who want regular tax free returns in their hands, choose the Dividend Payout Option. Read More!
The end of FY06 is arriving and most of the companies have issued timelines for employees to submit proof of Investment done for tax saving purposes. Most of us really do not really plan our tax saving avenues in a manner we think of our other Investments. It’s more of saving the taxes rather than utilizing the same money to generate higher returns.
Let’s talk briefly of the various avenues available for tax savings and find out where one should invest his or her money to get best of both worlds.
The enabling Section 80 C
One nice thing about the last finance bill was the removal of restrictions from upper limits of various investing avenues and freedom was given to invest in the eligible avenues subject to overall limit of Rs 100,000.
So, from the avenues given below, a tax payer can choose to invest in any avenue subject to a maximum investment of Rs. 100,000 to get deduction under Sec 80 C.
Avenues for Investment under Sec.80C
1. Contribution to Provident Fund
2. Repayment of Principal amount on Housing Loan
3. Payment of tution fee
4. Investment in PPF
5. Payment of Life Insurance Premium
6. Investment in NSC
7. Investment in Tax saving FD’s
8. Investment in Infrastructure development funds
9. Investment in Equity Linked Saving Schemes
Out of the above, Contribution to Provident fund is something in which most of us are already investing (deducted by employer) monthly. So out of the Rs.100,000, reduce the amount that would be deducted by the employer on account of your portion of contribution to Provident fund.
For those of us, who have school going children, Payment of tution fee is also considered for Sec. 80 C benefit.
For those who have availed of housing loan, the repayment of principal would qualify under the 1 Lac limit.
The question is how to utilize the rest of the limit (after PF, Children’s tution fee and repayment of housing loan, if any).
Investing in Government Securities
For those who seek absolute protection of their capital, Investing in Postal Saving schemes such as NSC or putting money in PPF (Public provident fund) is an option.
Public Provident Fund
This was a popular savings avenue before ELSS came into the picture. PPF offers interest income in the range of 8% with annual compounding. However, the maximum amount that can be invested in PPF is Rs.70,000 and money cannot be withdrawn before completion of 6th year. Doesn’t look exciting enough ….right ? Yes, I agree with you. However, for those who look at PPF in terms of their retirement corpus and who feel that their current PF deduction is not sufficient, they may consider this option.
National Savings Certificate
Another popular avenue of yesteryears, investing in NSC also offers a return of 8% on half yearly compounding basis. Another feature is that Interest accrued on NSC is also eligible for Sec 80 C benefit. However, with removal of Sec 80 L, NSC has lost favor since the interest income is taxable. The duration of NSC is for 6 years with a option of premature encashment after 3 years. However, that would reduce the net yield from NSC.
Tax saving FD’s
This is a relatively new kid on the block. Tax saver FD’s are issued by banks for a tenure of 5 years and premature withdrawal is not permissible. It generates interest income of 8% with quarterly compounding. The interest income is taxable. If we compare tax saving FD’s to NSC, Tax saving FD’s have an edge on lock in period which is lesser by one year. However NSC have an edge from the fact that Interest accrued is also eligible for 80 C limit.
Life Insurance and Tax savings
As far as life insurance is concerned, endowment plans (money back plans) have been a popular source of investing. However, ULIP’s have taken a center stage now since they offer insurance as well as market related returns in a single product. However, investors should understand the underlying structure of ULIP carefully since these offerings have a substantial charge towards expense in the initial years and is advisable only for investors with a large investing horizon.
Another avenue within insurance domain is Pension plans. Pension plans have got a boost in last finance bill with the overall limit raised from Rs. 10,000 to Rs. 100,000.
Let me disclose one thing here. I am biased towards other investing options as compared to Life Insurance products since I believe that insurance and investments should be taken separately. So while investing don’t think of insurance and while insuring yourself don’t think how much return you would generate from the investment in insurance. As far as insurance needs are concerned I believe in pure risk plans which cover your insuring needs at an affordable premium. However, these are my personal views and each one of you has a right to differ from this.
Infrastructure development Bonds-Losing sheen
With a return in the range of 5-6% this is the last avenue a tax saver would resort to. The dismal returns provided by these bonds have resulted in the investors shying away from these bonds. The return is hardly good enough to fight inflation, leave alone wealth creation.
ELSS –The best Tax- Savings option
Here we come to the best investing avenue for today’s investors. ELSS funds have been in limelight for their superior performance and with equity markets putting a strong and show the going is get to be good in the future too.
Why ELSS is the best Investment Strategy for Tax savings ?
1. Generates highest returns as compared to other Investing avenues
2. Provides a lock in period of Three years which is the minimum for any tax saving avenue.
3. Dividend option enables liquidity since investor gets tax free dividends during the tenure.
4. ELSS can also be seen as a way to long term investing in equity markets.
5. With India growth story unfolding and fundamentals looking intact, Investment Guru is of the view that equities would continue to outperform other investing avenues for at least next 5-7 years. Investing in ELSS provides dual benefit of capitalizing on superior returns as well as tax saving.
Why risk does ELSS pose to an Investor?
The basic risk with ELSS scheme is that since it has a considerable equity exposure, the returns are linked to market returns and hence there is no guarantee of returns and even capital.
However, I feel that this is more of a precautionary statement and needs to be reviewed in broader sense. If we choose an ELSS schemes which has delivered excellent performance in past years and has a track record of consistent results, the chance of investors loosing out would be negligible.
Choosing the best ELSS fund
Now since we have got an understanding that ELSS is a good option, let’s see how to pick a good ELSS scheme. Let’s put some filters to test the dependability of a good scheme.
1. The scheme should have an excellent track record in terms of returns generated.
2. The return generated should be seen for a 3 years timeframe since the lock in period is three years. Good returns generated on a 3 years plus timeframe would be an added advantage.
3. The returns should be delivered on a consistent basis. Hence ELSS funds with volatile returns would loose out to the one who deliver good performance year on year.
4. The fund should not have seen exodus of talent on a frequent basis. The fund should have strong processes in place to take care of management crisis.
In my next post I would highlight the Top 5 ELSS schemes which a tax payer can consider for Investing under Sec 80 C. Read More!
- Operating profit increased 65% to Rs. 1,976 crore (US$ 446 million) for Q3-2007 from Rs. 1,194 crore (US$ 270 million) for Q3-2006.
- Profit after tax for Q3-2007 increased 42% to Rs. 910 crore (US$ 206 million) from Rs. 640 crore (US$ 145 million) for Q3-2006.
- Net interest income increased 32% to Rs. 1,709 crore (US$ 386 million) for Q3-2007 from Rs. 1,296 crore (US$ 293 million) for Q3-2006.
- Fee income increased 53% to Rs. 1,345 crore (US$ 304 million) for Q3-2007 from Rs. 881 crore (US$ 199 million) for Q3-2006
- Retail assets increased 50% to Rs. 117,914 crore (US$ 26.6 billion) at December 31, 2006 from Rs. 78,495 crore (US$ 17.7 billion) at December 31, 2005
- Deposits increased 47% to Rs. 196,893 crore (US$ 44.5 billion) at December 31, 2006 from Rs. 133,881 crore (US$ 30.3 billion) at December 31, 2005.
Pfizer Net Zooms 50%
- Pfizer has declared its fourth quarter results. Its fourth quarter net profit stood at Rs 106.33 crore against Rs 70.73 crore in corresponding quarter previous year.
- Its Q4 total income was up at Rs 726.26 crore as compared with Rs 644.09 crore YoY.
Chennai Petro Net up 14%, Declares Dividend
- Chennai Petro has posted a 14.42% increase in net profit to Rs 243.50 million for the quarter ended Dec 31, 2006, whereas the same was at Rs 212.80 million for the quarter ended Dec 31, 2005.
- The Comapny has declared a dividend of 120% for the year 2005-06. This includes the 30% interim dividend paid in February, 2006.
ING Vysya Net zooms 294%
- The company has posted net profit of Rs 143.30 million for the quarter ended Dec 31, 2006 as compared to Rs 48.60 million for the corresponding quarter, last year.
- Total income has increased by 9.94% to Rs 3846.70 million for the quarter ended Dec 31, 2006 from Rs 3498.90 million for the quarter ended Dec 31, 2005.
Bharat Forge Net up 23%
- Third quarter net profit stood at Rs 76.95 crore versus Rs 62.69 crore in corresponding quarter previous year.
- Q3 total income total income was up at Rs 1037.09 crore as compared with Rs 956.67 crore, YoY.
Havell's India Net up 62%
- Net profit increased to Rs. 258 million as compared with a profit of Rs. 158.9 million in the corresponding quarter of the previous year.
- Net sales for the quarter jumped 72.04% to Rs. 3,909 million compared with Rs 2,272.1 million, a year ago.
GNFC disappoints, Net Down 23%
- Net profit at Rs 521.90 million for the quarter ended Dec 31, 2006 as compared toRs 675.90 million for the quarter ended Dec 31, 2005.
- The profit has been impacted by an unplanned shutdown of ammonia plant for 36 days and a 30 days shut-down for other major plants. The plants were recommissioned during the quarter
Sobha Developers Net up 49%
- Q3 Net Profit was 45.7 Croroes as compared to 30.6 crores in corresponding quarter last year.
- Net Sales at 298 Crores saw a growth of 77% as compared to 168 Crores in Q3 of last year.
- Q3 EPS stood at Rs. 7.13. EPS for Nine Months ending 31st december stood at 15.49.
Radio Mirchi Q3 Net up 14%
- Total income grew by 30.6% to Rs. 48.41 crores compared to Rs. 37.07 crores for the quarter ended December 31, 2005.
- The Company’s earnings before interest, depreciation, tax and
amortization (EBITDA) grew 20.8% percent to Rs. 17.65 crores and net profit
stood at Rs. 12.40 crores, up 13.9% YoY. On a like basis (7 Phase I stations only),
EBITDA for Q3FY07 stood at Rs. 15.11 crores, up 3.4% YoY.
- The new stations namely Bangalore, Hyderabad and Jaipur recorded EBITDA
margin of 28.2% for the quarter.
Coming up on this Blog....
How to Invest for Tax Savings ?Read More!
The company reported a net profit of Rs 337 crore in the third quarter versus Rs 319.81 crore in the previous quarter, an increase of 5.38% which is quite disappointing as compared to peer growth rates. Satyam has decreased its expected revenues for FY07 at Rs 6434-6442 crore against their earlier estimate of Rs 6452-6472 crore. Its EPS is seen at Rs 20.90. The stock price would see a pressure on account of disappointing results.
Deccan Chronicle The company's Q3 net profit was up at Rs 48.4 crore from Rs 31.8 crore YoY.
Dabur India Q3 net profit was at Rs 71.7cr versus Rs 58 Cr, YoY (Standalone). Its net sales was at Rs 508.7 crore versus Rs 405 crore,YoY (Standalone).
Upcoming results on 20th January,2007
ICICI Bank, Sobha developers,GSFC, Bharat Forge, Abhishek Industries, Bank of Rajasthan, Chennai Petro, Gati Corp, Godrej Consumer, Guj. NRE Coke, Havells India, Nagarjuna Fertilisers, Nirma,Pfizer, Sandesh, SRF Read More!
Akruti Nirman has eneterd the capital markets with a public offer of 67 lac shares of Rs. 10 each at a price band of Rs. 475 -540. Investment Guru is of the view that investors may apply for the issue with expectations of small to moderate listing gains. The company has developed a niche in area of real estate development under slum rehabitation schemes.
Highlights of the Issue
- The company is into development of Commercial and residential properties with Key focus on real estate development on slum rehabilitation land.
- As a growth strategy, the company which had, till now focussed on Mumbai, is now eyeing pune and banaglore. Company also intends to diversify into large scale development projects, such as Bio-IT Parks, new townships and serviced apartments and hotels.
- As of November 30, 2006 Akruti had development rights over 11,763,000 square feet of land area, primarily located in Mumbai. Of this area, 8,026,000 square feet represent slum rehabilitation land owned by the applicable slum rehabilitation authorities and 3,737,000 square feet was acquired or leased from third parties.
- The weighted avergae EPS for last three years works out to be 8.49. However the Annualised EPS based on last 8 mmonths ending November,2006 comes to 3.3 mainly on account of delay in certain projects and chnage in accounting policy for Revenue recognition.
- Net Asset Value as of Nov30,2006 comes to Rs. 19.93
Issue Opens : Jan 15, 2007
Issue Closes: Jan 19, 2007
Registrar : Intime Spectrum
“It has been an excellent quarter for RIL. Our integrated and globally competitive business portfolio continues to help RIL de-risk its business model and deliver a superior operating performance. I am pleased with the launch of “Reliance Fresh”, Reliance’s initiative in the organized retail sector that
shall create a unique value proposition for the Indian consumer. RIL remains committed to deploying its cash flows in growing its existing and new businesses.” Mukesh Ambani
It has become a habit for Mukesh Ambani to outperform expectations of its shareholders and this has been the foundation for the strong faith the Investing community has in the vision and leadership abilities of Mukesh Ambani in driving Reliance towards new horizons. True to its nature, reliance Industries delivered a strong Q3 performance.
Highlights of RIL YTD Performance
Turnover has risen by 33 % to Rs. 83,487 crore (US$ 18,863 million).
Net Profit has risen by 23% to Rs. 8,055 crore (US$ 1,820 million) – the highest ever for any private sector company in India.
Gross refinery margin of US$ 11.7 / bbl in this quarter – highest ever out- performance over the benchmark Singapore complex
Nine Months EPS at Rs. 57.8
TurTurnover has risen by 40 % to Rs. 27,771 crore.
Net Profit has risen by 58% to Rs. 2,799 crore.
Q3 EPS at Rs. 20.1
RIL’s contribution to the national exchequer in the form of various taxes was Rs. 9,068 crore (US$ 2,049 million).
Reliance exports increased to Rs 16,013 crore (Rs 160.13 billion) from Rs 6,638 crore (Rs 66.38 billion).
RIL’s international rating from both Moody’s and S&P is above the sovereign rating of India.
The petchem production also surged up 34% to 3.63 million tonnes versus 2.72 million tonnes. The company's Petchem revenues improved to 48.2%.
The Gross Refining Margins stood at USD 11.70 per barrel versus Singapore GRM of USD 3.7 per barrel.
In order to further strengthen the prospects of its E&P business, RIL has bid for 21 blocks in the sixth round of NELP bidding. This round of bidding witnessed high level of participation by leading international players.Read More!
TCS : The company posted net profit of Rs 1104.7 crore (Rs 11.04 billion) versus Rs 991.5 crore (Rs 9.91 billion) in the previous quarter, increased by 11.41%. TCS added 7835 employees and net employees addition was 5562 versus .
IPCL registered net profit of Rs 405 crore (Rs 4.05 billion), up 40.1% against Rs 289 crore (Rs 2.89 billion) in the same quarter of the previous year.
Tulip IT services posted net profit of Rs 27.5 crore (Rs 275 million) in the third quarter compared to Rs 20.2 crore (Rs 202 million) in the previous quarter.
Results on Tuesday, 16th January,2007
ABB, Bajaj Auto, HT media, Gujarat Ambuja Exports, Jubiliant Org, Patel Eng, Prism Cements,
Results on Wednesday ,17th Jaunary,2007
Wipro, Lupin Labs, NDTV, 3i Infotech, Alembic,Diamond Cables, Kirloskar oils, NIIT Tech.
Reliance will declare its Results on Thursday,18th January
Govt. okays Bharti-Walmart Combo on FDI
While Bharti would be managing the front-end that involves opening retail outlets, the US-based world's largest retailer would take care of the back-end such as cold chains and logistics.
With the government finding no fault with the venture, the stage is now set for other global retail chains like Tesco of UK and Carrefour of France to sew their deals for foray into the growing Indian market with similar arrangements. (ET)
Tatas call on Lanka's Suntel
If the deal is successful, Suntel will be VSNL’s third telecom service provider outside India. VSNL already has 51% stake in Neotel, South Africa’s second national operator, and is also in the process of picking up 26% in InfraCo, a new telecom network operator in South Africa (ET)
Reliance Q3 net seen up 26%
India's top private petrochemical and oil firm, Reliance Industries Ltd, is expected to report on Thursday its quarterly earnings rose 26 per cent due to robust margins from petrochemicals. Reliance operates a 660,000 barrel per day (bpd) refinery at Jamnagar in western India that can process cheap and high sulphur grades of crude to produce high-value products. Full-year earnings are forecast to rise 10.2 per cent to Rs 99.98 billion, according to Reuters Estimates. (ET)
Tata Steel buys Rawmet Ferrous
Rawmet has a ferro alloy plant near Cuttack consisting of two 16.5 MVA semi closed electric arc furnace having a capacity of producing around 50,000 tonnes of high carbon ferro chrome per annum. (ET) Read More!
The Stocks markets are in a mood to celeberate and why not ! The Q3 results have given them an opportunity to do that. Bouyant by the positive sentiments and overall buying , the sensex touched all time high of 14202 before settling at 14130. Nifty also touched its all time high of 4099 during the day.
Today we saw wonderful set of numbers reported by the companies. CMC reported a 69% jump in net profit for December 2006 quarter. CMC’s consolidated net profit jumped 69% in December 2006 quarter, to Rs 20.40 crore (Rs 12.07 crore). The stock closed at 900 after touching 974 levels.
Geometric Software Solution surged 4.25% to Rs 141.25, after it unveiled a net profit growth of 254% for Q3 December 2006 to Rs 8.29 crore in Q3 December 2006, compared to Rs 2.34 crore in Q3 December 2005.
Tata Sponge Iron reported a 193% surge in net profit in December 2006 quarter. Net sales rose 98.9% to Rs 82.13 crore (Rs 41.29 crore). The stock rose 20% on the news.
Steel stocks were in demand. SAIL continued its surge backed by statement from Steel minister that the company will invest Rs 100,000 crore to raise capacity from 14.6 million tonnes per annum to 40 mtpa by 2020. Sail had earlier announced scaling up capacity to 23.8 mtpa by 2010.
Uttam Galva Steels jumped 12% to Rs 42, after the company raised galvanised steel prices by Rs 1,500 a tonne to Rs 50,000 per tonne on Monday.
Rajesh Exports posted a net profit growth of 57.71% to Rs 28.12 crore in Q3 December 2006 compared to Rs 17.83 crore in Q3 December 2005. Net sales rose to Rs 1872.45 crore from Rs 1294.02 crore. The stock price shot 5% on the results. Read More!
Stock : Cairn Energy
Issue Price : Rs. 160
Listing Date : 9th January, 2007
Expected lsiting : Rs. 160-170
When it comes to IPO, everbody wants to make fast bucks and very few people are interested in holding the stock for long term gains. Cairn Energy's issue has been quite volatile in term of turn of events related to the IPO. First there was a enthusiastic feel with Pre-IPO placement by the company and then loomed large the shodows of pessimism on the fortunes of the IPO with the issue barley managing to subscribe fully.
Unfortunately, there has been lot of bad talks in the street about cairn's listing price. People are talking in terms of listing between Rs 125 to 160 range and a atmosphere has been built for the investors to dump the stok on listing day.
There is no doubt that Cairn Energy is a long term stock. The expectation of a good listing gain has certainly been smashed with the poor response to the issue.
Investment Guru is of the view that the stock should list near its issue price and hence doesn't offer much on the listing gain front. Investor who have subscribed with only listing gains in their minds may be well off cornering any premium on listing .
Investor should avoid dumping the stock on the listing day if it lists much below its issue price as there would be a comeback once the euphoria of stress selling dies down and long term pickers start picking the stock at better prices.
Long term investors should be better off holding on to their stocks as the long term prospects looks good for the stock. Read More!
First of all, New year wishes to all friends and visitors of this blog and I wish you a wonderful new year bringing tons of joy and happiness.
Tanla solutions is listing tomorrow. The stock was alloted at a price of Rs. 265. However, the lisiting price of this stocks has generated curiosity since the issue was a stunning success. As you may be aware that the stock is already listed on Hyderabad stock exchange as is currently qouting at Rs. 372.
BSE has come out with a circular that the closing price on Hyderabad Stock exchange would be the base price for listing of Tanla on BSE and the stock would carry a circuit filter of 2% . However, interstingly, there is no such circular from NSE. So this would be a interesting scenario to watch when the stocks lists at both the exchanges. There may a price gap for the scrip between both the exchanges in view of the above . Even at the expected listing price of 379 the stock offers a gain of 43% over its issue price. Read More!