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.

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 |

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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.