Strong performance by Tata Motors is indicated by the fact that Tata Motors has paid the advance tax of 220 Cr for the quarter ending Dec'10 against 100 Cr for the corresponding quarter last year.
The consolidated net profit for the Half Year ended Sep'10 for the Tata Motors was Rs.4,212 crores as compared to loss of Rs. 307 crores in the first half last year. Consolidated EPS for first half of FY11 stood at 73.76 Rs against 5.97 Rs last year. This makes Tata Motor looks extremely cheap with the forward PE of approximately 10.
The global sales of Tata Motors is going up. Jaguar and Land Rover sales rose 22% to 22,957 units in November 2010 over November 2009. Jaguar sales for the month were 5,621 units, up by 30%, while Land Rover sales were 17,336 units, higher by 20%. As both of them add great value to the profitability of the Tata Motors, it is a huge plus point.
Another good news on the counter is that Tata Motors is going to increase the prices of the vehicles in January'11.
Thursday, December 16, 2010
Wednesday, December 15, 2010
Excellent Listing for MOIL but not enough returns for retail investors
As anticipated by millions of Indians and almost all the analyst, MOIL has given a very good listing gain. It has listed at 551 and traded above 500 most part of the day, but closed at 466.5 in NSE. It has reached the intraday high of 591.
The only problem with the MOIL was, even though the retail investors have subscribed for one full application (2 Lakh i.e., 31 lots) most of them are allotted with only 1 lot (17 shares). So even if retail investors have booked profit at 530 Rs, they have gained only around 175 Rs. With only 17 shares allotted, the overall profit is 17*175 is approximately 3000 Rs. With the investment of 2,00,000, profit of 3,000 doesn't sounds impressive.
Hence my conclusion about the allotment and listing gains of MOIL is not impressive.
The only problem with the MOIL was, even though the retail investors have subscribed for one full application (2 Lakh i.e., 31 lots) most of them are allotted with only 1 lot (17 shares). So even if retail investors have booked profit at 530 Rs, they have gained only around 175 Rs. With only 17 shares allotted, the overall profit is 17*175 is approximately 3000 Rs. With the investment of 2,00,000, profit of 3,000 doesn't sounds impressive.
Hence my conclusion about the allotment and listing gains of MOIL is not impressive.
Thursday, December 2, 2010
Current Status of the Invesment opportunity mentioned below
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| Current Status of the above mentioned investment. |
Thursday, November 25, 2010
Must invest in MOIL IPO
After successful listing of CIL (Coal India Ltd) and successful profits in PGCIL (Power Grid Corporation of India Ltd) FPO, it is time to invest in MOIL IPO. The issue is open from 26th of Nov to 1st of Dec for subscription.
With the price band of 340-375, the pricing looks very attractive. It may the listing gains of 30-50%. With the small equity(3.36 Crore on stake in IPO) and retail investment cap increased to 2 Lakh Rs, it looks like it will over subscribed many a times and thus many investors may want to buy the share on the listing day which should give the high listing gains for the investors.
The fundamentals of the company are very strong. They have cash reserves of 105 Rs per share. It has witnessed revenue and PAT CAGR of 31% and 42% over the last four years. Current Operating Profit Margin is 70.% and PAT margin is 52.1% which is very high. The offer price of the stock (340 to 375) is 9.6 to 10.6 times TTM (Trailing Twelve Month) EPS of Rs 35.5 as on Qtr ended Sep 10. The company has a status os Mini-Ratna given by Government of India in FY08.
With the price band of 340-375, the pricing looks very attractive. It may the listing gains of 30-50%. With the small equity(3.36 Crore on stake in IPO) and retail investment cap increased to 2 Lakh Rs, it looks like it will over subscribed many a times and thus many investors may want to buy the share on the listing day which should give the high listing gains for the investors.
The fundamentals of the company are very strong. They have cash reserves of 105 Rs per share. It has witnessed revenue and PAT CAGR of 31% and 42% over the last four years. Current Operating Profit Margin is 70.% and PAT margin is 52.1% which is very high. The offer price of the stock (340 to 375) is 9.6 to 10.6 times TTM (Trailing Twelve Month) EPS of Rs 35.5 as on Qtr ended Sep 10. The company has a status os Mini-Ratna given by Government of India in FY08.
Medium Term Investments
As the sensex has tanked approximately 1700 points (19318.16) from the day of Diwali muhurat trading (21004.96 on 5th Nov 2010), I feel it is correct time to enter into the following stocks with the short to medium term time horizon.
They should give good returns of approximately 40-50% in next 6 months to 1 yr time zone.
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S.No | Name | CMP |
------------------------------------------------------------
1 | Asahi Infra | 10.61 |
2 | Kohinoor Broad | 2.59 |
3 | Temptation Foods | 24.6 |
4 | Thermax Limited | 897.15 |
5 | Larsen & Tourbo Ltd | 1941.95|
6 | Apollo Tyres Ltd | 66.95 |
7 | Hindalco Industries Ltd | 203.65 |
8 | ONGC | 1226.8 |
9 | Reliance Infrastructure Ltd | 910.25 |
10 | Sterlite Industries India Ltd | 167.05 |
11 | Tata Motors Ltd | 1206.3 |
12 | Tata Power Company Ltd | 1276.9 |
13 | Tata Steel Ltd | 603.1 |
14 | Shanthi Gears Ltd. | 45.9 |
15 | Bajaj Holdings & Investments Ltd | 861.2 |
16 | Shiv Vani Oil & Gas Expl Services Ltd | 391.85 |
17 | PTC India Ltd | 115.8 |
18 | K Sera Sera Productions Ltd | 14.55 |
19 | Gitanjali Gems | 297.65 |
The above mentioned stocks are my personal favorites. Todays nifty is 5799.65. We will track the returns on each of them after few days.
Tuesday, October 26, 2010
Invest long in K Sera Sera
Hi,
Invest in K Sera Sera. It has given a very good result yesterday with a profit of 42 crore for quarter ending Sep 30. This makes the quarterly EPS of 2.03 Rs per share.Even if we assume the annual EPS for FY10-11 is 7 Rs, it is trading at ridiculously low PE of 2.
Apart from the above mentioned reason to invest in K Sera Sera, there are many more reasons to invest in it. I am listing them down:
Apart from this, there are 10 films on the floor and 5 films awaiting box-office release by the K Sera Sera Productions.
With the CMP of 15.75 Rs, it is available at high discount. It should go to new highs soon (1-2 yr time horizon).
Invest in K Sera Sera. It has given a very good result yesterday with a profit of 42 crore for quarter ending Sep 30. This makes the quarterly EPS of 2.03 Rs per share.Even if we assume the annual EPS for FY10-11 is 7 Rs, it is trading at ridiculously low PE of 2.
Apart from the above mentioned reason to invest in K Sera Sera, there are many more reasons to invest in it. I am listing them down:
- 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.
- 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.
- 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.
- K Sera Sera Box Office Pvt Ltd. (wholly owned subsidiary) is releasing its forthcoming film titled, `332 Mumbai To India` on 19th November, 2010.
- 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.
- 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.
Apart from this, there are 10 films on the floor and 5 films awaiting box-office release by the K Sera Sera Productions.
With the CMP of 15.75 Rs, it is available at high discount. It should go to new highs soon (1-2 yr time horizon).
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