My View On Hotel Leela

About the Company

The Most Fancied stock of hospitality sector is facing tough times because of the slowdown in economy.The rising costs and the way people have cut down on their spending would get reflected to a large extent on the hospitality industry. With most of the companies going on an austerity drive and cutting costs, hotels are the biggest sufferers. The cut down by corporate clients becomes first evident in the financial performance of the hotels.

About the Financials

The Company has posted results for the second quarter for the current fiscal ended 30^th September 2008.If the performance was flat in Q1, it has fallen in Q2.Net sales rose on YoY by a meager 9.35% but the burgeoning costs, which rose 46%; depreciation which was up 37% and MTM forex loss of Rs.9.30 crore, all took its toll. PAT fell by 40% at Rs.24.05%. The fall in the margins has been sharper. OPM fell from 64.82% to 44.23% and NPM fell from 40.06% to 21.96%.

Plans Of Expansion

Its new hotel at Udaipur is scheduled to open in current Q3. And the one in Gurgaon, is to open by end of October or early November. Its hotel in Chennai is expected to open by September 2009.

About The Counter

The time ahead remain bad for hospitality sector. The current fiscal is expected to remain tough and even being able to maintain these levels could become a task. It is advised to stay away from the counter as we do not find good return in this sector in short to medium term prospective.

Disclaimer: I do not have any personal holding in this stock.

My View On ITC LTD.

About The Company

The established brand has diversified business including Paper , Hotels , Cigarette , FMCG etc.The stock of the company has not performed in the recent rally in comparison to other front line stocks.This stock has been included in heavy weight stock category in both the exchange namely BSE & NSE due to its high market Capitalization and strong base of the company.

About The Financials

The company has posted the results for the second quarter ending 30/09/2008 a 15% rise in revenue, pre-tax profits at Rs. 1189 crores registered a subdued growth of 4.9% over the same period last year. Post tax profit at Rs. 803 crores grew by 4.1%. Steep increases in commodity prices and store rentals, the brand building costs of the new Personal Care portfolio and the significant investments in enhancing distribution capability combined to exert intense pressure on profitability during the quarter. Cigarette major, ITC once again faced the brunt of the higher tax it had to dole out on cigarettes. The ban on non-filter cigarettes also did not help matters.Net Turnover at Rs 3763 crores registered a growth of 15%.The main growth propeller was non-cigarette FMCG business, comprising packaged foods, garments, stationery, matches, incense sticks and personal care products, witnessed a 30% growth in revenues. The paper and packaging business suffered a drop of 3% due to rise in prices of pulp and waste paper. The company’s hotel business, too, suffered due to the slowdown in the economy and a decline in the travel industry. Its agri business revenues grew by 17%, driven by a growth in leaf tobacco exports. The leaf tobacco crop from Andhra witnessed an unprecedented spurt in prices with rates increasing by more than 80% on the back of demand supply mismatch.

The Govt’s ban on smoking in public places too will have an effect on the bottomlines of the company in the coming months. With so many businesses of ITC, one wonders why ITC remains in cigarettes despite the atmosphere for making cigarettes being non-conducive. The company has explained that it has ventured into FMCG to dilute the effect of cigarettes but it would stick to the cigarette business since it was legal and provides resources required to enter new businesses in future. The company will be able to maintain its performance in the current circumstances only if its able to increase the share of its non-cigarette businesses.

About The Stock

Due to overall bad sentiment in the market the stocks is showing new lows and providing a great opportunity to get into the stock at most reasonable price.

Disclaimer : I do not have any personal holding in this stock.

My View On SBI

About The Company

The biggest bank of the country , India with widest network of branches & ATM's across the country . The bank is a Public sector bank and other bank could not even imagine to be half of the total network of the SBI.

About The Results

The bank has posted the better results for the second quarter ended 30^th Sept 2008. On a standalone basis, net income was up, on a YoY by 40.37%. Interest earned stood at Rs 15566.50 crore against Rs 11616.28 crore previous year while interest expended was Rs 10111.15 crore against Rs 7853.36 crore same quarter last year. Net profit was up 40.23% at Rs 2259.72 crore.

On a consolidated basis, total income of the bank increased by 26.41% to Rs 27,083.47 crore. Its net profit grew 11.50% at Rs.2458 crore. Interest earned was Rs 22568.05 crore against Rs 17058.28 crore in 2007. Interest expended was Rs 15049.33 crore for the quarter ended Sep 30, 2008 against Rs 11783.16 crore in 2007. Increase in the lending rates helped SBI shore up its bottomlines.

About The Stock

PSU banks are better off today in the global meltdown scenario as their exposures are minimal. There has been a sell off on all bank counters but the brunt of the sell off faced by private sector banks has been harsher. SBI touched a new low at Rs.991. From valuation point of view the stocks seems to be most attractive in banking sector but we need to see how much pain is yet left in the Index as a whole before investment.

Disclaimer: I do not have any personal holding in this stock.

My View On Empee Distilleries

About The Company

As the name suggest the company is engaged in distilleries business.The promoters may not seem unreliable though they may be incapable. The present market of the company is close to Rs.135 crores and even after considering debt of close to Rs.50 crores, it works out to less than Rs.200 crores. Considering the presence of company in Tamil Nadu and Kerala for its breweries business as also expansion in Karnataka and Andhra Pradesh, share price seems to be ruling way below its fundamentals and intrinsic worth.

About The Results

The Company has posted somewhat better results for first quarter ending 30-09-08 with an EPS of Rs.3.01. For nine months ending 30-06-08 the EPS of the company was placed at Rs.5.94, with total income at Rs.564 crores and net profit of Rs.11.30 crores. For Sept. 08 quarter, the total income is at Rs.246 crores with net profit after tax of Rs.5.72 crores.

The company is expected to have a net profit of close to Rs.450 crores from its realty division by FY 10, but the same is not visible in the performance, as the company had already presented accounts for 15 months, post public issue.

About The Stock

This is one of those issue which present a false picture in front of the public with sole motive to get there business financed by public money and take home there investment. This is possible only during a stro0ng bull market when sentiment of public is high and they overlook the prospectus of the company , which is designed by the experts. If the company has the potential then why no IPO's are offered in this market and why all proposed IPO's are canceled ?. These sort of company get delist with no ISIN umber once the market moves under bear market , you wouldn't find there existence in next bull run. The expected annualized EPS for FY 09, of Rs.12 is discounted by about 6 times. This is probably the lowest PE multiple given to the company in its segment, considering its mid cap size.This is due to betrayal of investors confidence in the company and its promoters for the promises made by them, post public issue, which were not achieved by them. Also, hefty issue price of Rs.400 per share added woes to the wounds.Share is now ruling at Rs.70 against its all time low of Rs.64 and issue price of Rs.400 per share. I strongly recommend never to invest in such companies.

Disclaimer : I do not have any personal holding in this stock.

GOLD & SILVER : BEST OPPORTUNITY IN THE MARKET

Present Scenario

In this havoc , when the entire global market is heading towards recession and its a scene of discomfort and fear people are finding very difficult to trace a right place to invest there hard earned money , which in turn would not only give them handsome return but also assure the principal amount to be safe and secured. The stock market has stumble down not only in domestic but in international markets also. After number of generous effort from the financial bodies of the country including RBI , SEBI and the Finance ministry very insignificant results have been noticed and that too for a very short period. The market is facing difficulty to find the way ahead and get support at least not to decline further. The portfolio of the traders and investors are declining to vast extent day by day , whether we realize them by booking our losses or not is a secondary factor. In this scenario investors have not only lost the unredeemed profits but the invested capital has been washed off badly , moreover the remainder is stuck for a infinite period of time. This lead to credit crunch and shortage of liquidity in the market, thereby sole cause of financial instability of the country as a whole. In circumstances as such of failure of financial Institutions & big corporates , rise in figures of unemployment & inflation.After severe steps from govt. to improve liquidity in the market , no significant results are found that is leading us towards a dangerous situation ahead as United states of America.

What to do now?

In the above mentioned situation its tough to track the path to invest and keep them secured. The only way to be secured is to invest in precious metal , which is acceptable worldwide. These metal include GOLD & SILVER. Even though the currency is not valid or not acceptable in some parts of the world but these metals have international values. In a situation when the country gets bankrupted the currency gets value less but the gold is the only base for the public of that country to have financial health. The currency of any country is printed on basis of gold reserve or else one would have printed as much as money required but that is restricted to amount of gold deposited. When the reserve gets nil the value of currency of that country gets zero. In a situation of financial crisis the steps is considered as first a deep cut in stock index of that country, secondly sale of gold , sale of property respectively.

GOLD & SILVER has very bright future ahead and will make new life time highs. There may some depression due to international crisis and sale of gold from the country moving towards deep recession to make financial stability for time being , but it has provided a great opportunity for us to invest but for long term view , its best investment opportunity.

Being a financial advisor I would suggest to rush to accumulate gold. Some lower level may be seen but it may turn around from any levels. The maximum low expected is Rs 8000 per 10 gms but It may be a dream value , as it has strong support at higher levels. The best way to invest would be to start buying from current levels and average. In case you wish to go for 100 gms buy 25 gms in 4 times , at every dip to average your purchase.

My View On Cummins India

About The Company

Cummins India is the largest engine maker of the country. The stock has not been popular among the investors.The margins has been reduced but considering the present trend of margin pressure being faced by capital goods manufacturers, this kind of erosion in margin pressure is acceptable and understandable. The rise in topline is quite healthy, which gives a lot of confidence to the investors for future performance of the company. One can safely assume a growth of 35% in topline while a rise of 30% in bottomline for FY 09 and FY 10.

About The Financials

The company has posted good Q2 results with topline rising to Rs.808 crores (Rs.540 crores in corresponding quarter of previous year) registering a growth of about 50%. This can definitely be termed as an excellent growth considering the situation prevailing in capital goods, automobiles and manufacturing sector. PBT also risen by about 42% to Rs.128.95 crores against Rs.91.10 crores. Net profit also rose by 41% from Rs.66.48 crores to Rs.93.82 crores resulting in an EPS of Rs.4.74 for the quarter against Rs.3.36 of Q2 FY 08.The growth has been linear and H1 of FY 09 had a topline of R.1,540 crores (Rs.1,095 crores) with PBT of Rs.250 crores (Rs.180.45 crores) and PAT of Rs.182 crores against Rs.130 crores of H1 FY 08. EPS is placed at Rs.9.20 against Rs.6.59 for first half of FY 09.It may get noted that the EBIT margin has slipped to 13% for the quarter against 14.60% of the corresponding quarter in the previous year. And this reduction of 1.60% is instrumental in fall of bottomline relatively lower than the topline growth.

About The Stock

Though the stock price is correcting due to down trend in market but the performance of the company is good and could be considered while selecting stock for investment.

Disclaimer : I do not have personal holding in this stock.

What About Index Levels next?

Very long back , I had declared to my followers that the time ahead is very astonishing and the levels are unexpected. As per elliot wave analysis I had explained the cycle of bear phase in March '08 itself that whenever market enter in this cycle , which is confirmed at this point of time we use to see the following symptoms:-

1. 45% - 60 % cut from the highest point of the Index.

2. After bottoming, the Index consolidate for a period.

3. A scam or particular stock in which operator work will be best hammered. As in 1992 Harshat Mehta fall ACC cement was the culprit. In 2000 Ketan Parik Severe Fall in Technology pack was aimed and in this 2008 we target Reliance pack & Larsen.

4. Those stock which drive the stock in a particular rally get worst hit and in next rally they remain apart from the stock which drive the Index.As 1992's ACC is consolidating yet and 2000's Technology pack failed to perform in the recent rally instead they were busy making new lows during the rally when other stocks were outperforming.

Note :

1. To get answer of the following queries:-

a. When & Where will Index Bottom out?
b. Till when will market consolidate?
c. When will next rally begin?
d. Which sector will now participate in the next rally?


======NON registered member can register to get availed of the answers.
TO REGISTER EMAIL AT : ommansarovar@sify.com

My View On Ponni Sugars (Erode) Ltd.

About The Company

Ponni Sugars is a small company in its field but the management is doing well.ICICI Bank Limited has withdrawn their Nominee Director, Mr K J Rajasimha from the Board of Directors of Ponni Sugars and nominating in his place Mr. Manas Ranjan Pani as their Nominee Director.

Its current results throws a light on the expectations of other sugar results.It may be noted that sugar prices were firm during July – September 08, quarter and hence all the companies are going to present healthy results. However, from mid September, sugar prices have started softening and the trend is likely to remain the same till end of calendar year, as crushing season would be starting soon in Maharashtra and U.P. But due to lower production of about 20 million tonnes expected in season 08 – 09, sugar prices would rise form March 09.

About The Results

Total income of the company during the quarter is at Rs.33.76 crores against Rs.40.26 crores in the corresponding quarter of previous year. PAT for the quarter is at Rs.3.10 crores (against a loss of Rs.2.39 crores) and a net loss of Rs.1.88 crores in FY 08. This is after booking Rs.1.65 crores, being increase in cane price, effective from 1^st October 07.During the quarter, the company issued 40 lakh equity shares at Rs.50 per share, by converting preference share capital, due to which paid up equity of the company rose to R.8.60 crores.EPS of the company for the quarter is at Rs.3.64 while for H1 of FY 09, it is at Rs.2.50. This is because; the company had its bottomline in red for June 08 quarter, at Rs.1.02 crores.

About The Stock
The stock is trading near its 52 week low.Though the stock is small in its sector but if sugar sector leads the rally the stock has the capacity to reward there stake holders.

Disclaimer : I do not have any personal holding in this stock.

My View On Biocon

About The Company

Biocon is well renowned company of the pharmaceuticals sector and hold significant position in its field.For long term investment this counter is always counted to be part of the portfolio.The resulted posted by the company is not satisfactory and forcing to have second thought regarding investment in this stock.

About The Financials

Results for Sep 2008 shows EBITDA margin in pharma segment plummeting to 25.95% from 37.11% of Q1 FY 09. The dent on profitability has been due to rise in raw material costs from 43% of net sales in Q1 of FY 09 to 53.50% in Q2 of FY 09.Total income of Biocon during second quarter ending Sept. 08 was at Rs.442 crores against Rs. 279 crores of the corresponding quarter in the previous year. However, Q2 FY 08 includes the workings of its enzymes business, which was transferred to third party, effective from 01-10-07. Hence, it is appropriate to compare the results of the company on sequential basis.

Net sales rose to Rs.439.30 crores in Q2 from Rs.263.93 crores in Q1 of FY 09. Inspite of this, profit after tax but before exceptional items, has been flat at Rs.49.84 crores against Rs.48.55 crores of Q1. After forex losses provisions of Rs.25.45 crores during Q2, PAT was placed at Rs.25.02 crores against Rs.15.04 crores of Q1.

The company has issued 1 : 1 bonus on 15-09-08, due to which paid up equity of the company increased to Rs.100 crores. This has resulted into an EPS of Re.1.25 for the quarter while it is at Rs.2 for first half of FY 09.

About The Stock

The stock is near top its 52 week low but the pressure on margins may drown it further. The stock is expected to correct more because of the disappointing results.Fresh investors need patient to invest in this stock.

Disclaimer : I do not have any personal holding in this stock.

What Levels For Index Ahead?

Very long back , I had declared to my followers that the time ahead is very astonishing and the levels are unexpected. As per elliot wave analysis I had explained the cycle of bear phase in March '08 itself that whenever market enter in this cycle , which is confirmed at this point of time we use to see the following symptoms:-

1. 45% - 60 % cut from the highest point of the Index.

2. After bottoming, the Index consolidate for a period.

3. A scam or particular stock in which operator work will be best hammered. As in 1992 Harshat Mehta fall ACC cement was the culprit. In 2000 Ketan Parik Severe Fall in Technology pack was aimed and in this 2008 we target Reliance pack & Larsen.

4. Those stock which drive the stock in a particular rally get worst hit and in next rally they remain apart from the stock which drive the Index.As 1992's ACC is consolidating yet and 2000's Technology pack failed to perform in the recent rally instead they were busy making new lows during the rally when other stocks were outperforming.

Note :

1. To get answer of the following queries:-

a. When & Where will Index Bottom out?
b. Till when will market consolidate?
c. When will next rally begin?
d. Which sector will now participate in the next rally?


======All my registered members can mail me and get there answer.


======NON registered member can register to get availed of the answers.
TO REGISTER EMAIL AT ommansarovar@sify.com

My View On ICSA

About The Stock

The company has presence in energy solution provider, which continues to remain a growth area. However, in the time of crisis, market has started suspecting everything including financial results and FII stake. This implies confidence crisis, which is not encouraging anyone to go for investment in the stock.Taking a call on the results as well as sector, one can expect the company to continue to show better results, which needs to be positively received by the market.

Concern In the Counter

The concern has been with FII stake in the company, which is on a declining trend to 47.77% as at 30-09-08 against 50.40% as at 30-06-08. However, a positive for the company is conversion of its FCCB, as, out of FCCB of US $ 46 million, US $ 25 million were converted and US $ 21 million are remaining outstanding as at 30-09-08. Considering expected annual profit of over Rs.100 crores, for FY 09, the present outstanding FCCB of about Rs.100 crores is not an area of concern.However, market is expecting divestment of stake by FIIs and low promoters stake of about 18%, in the company, creates further weakness.

About The Financials

Results for quarter ending September 08, with total income rising by about 86% to Rs.279.61 crores from Rs.149.83 crores of corresponding quarter in the previous year. Even on sequential basis, growth in topline is by about 16%. Similar is the case with its bottom line, which rose by about 66% to Rs.48.03 crores from Rs.28.88 crores of Q2 FY 07. EPS for first half of the company is at Rs.20, which would be close to Rs.40 for FY 09. This results in a PE of close to 5 times, which makes the stock reasonably priced.

About The Stock

On 10-10-08 it had a new low of Rs.138 with high volatility with share bouncing back to Rs.232 on 14-10-08. Higher volatility is a risk factor so I do not recommend the investor to involve in this stock.

Disclaimer : I do not have any personal holding in this stock.

My View on RS Software

About The Company

The company belongs to software group.Though the size of the company is small and the sole aim of the company is to create sensation by publishing its quarterly results with blocks of “Net Profit up 100 times” etc. The sole aim of the promoters of the company are to have market operations and to trap the investors at the higher levels.

About The Financials

The result for the second quarter ending September 08, wherein PAT of the company of Rs.178 lakhs for the quarter, far exceeds PAT of FY 08, which was at Rs.117 lakhs.There seems to be no correlation between the profitability over the quarters, as also in regard to EPS stated by the company, for various periods. For FY 08, on equity base of Rs.744 lakhs, with PAT of R.117 lakhs, EPS is stated at 16 paise, while for September 08 quarter, on PAT of Rs.178 lakhs, EPS on equity of Rs.744 lakhs is stated at Rs.2.18.

About The Stock

Share now ruling at Rs.18 had its 52 week high low of Rs.52 and Rs.15 and when established mid cap I.T. companies are available at a PE multiple of 3 to 4 times, who would be interested in these manipulative stocks.I do ot suggest to make any investment in this stock.

Disclaimer : I do not have any personal holding in this stock.

Taxation Rules For Gold Jewellery

Whats the taxation rules for GOLD?

Any profit on transaction of gold is considered under the category of capital gains.

How Can we know whether it is long term or short term capital gain?

Gold ornaments held for a period of more than 36 months are long term capital assets and attract long term capital gains (LTCG) tax. If held for less than 36 months, then they are short term capital assets and attract short term capital gains (STCG) tax.

How to calculate LTCGT?

Long Term Capital Gain Tax = (sale price of ornaments - Indexed cost of acquisition)x 20%

What is indexed cost of acquisition?

The tax laws allow you to take the benefit of rising prices or inflation. That is, your original purchase price will be adjusted to current prices. That way, your inflation adjusted gains will be lower than the absolute gains.

My View On Prism Cement

About The Company

Though the company belongs to cement sector.The main culprit for this dismal performance has been fall in realizations as well as rise in energy bill.Due to old plant, the company is incurring an annual expenses of Rs.100 crores, which is taking a tool on its profitability.

About The Financials

Prism Cement had posted c financial results for the first quarter ending September 08 with topline plummeting from Rs.193 crores to Rs.163 crores with EBIT falling to Rs.23.53 crores against Rs.67.76 crores in the corresponding quarter of the previous year. Expectedly PAT fell to Rs.15 crores against Rs.51.84 crores in the corresponding quarter of the previous year, which has resulted in an EPS of 50 paise only for the quarter against Re.1.74 of Q1 FY 08. On consolidated basis PAT is placed at Rs.13.17 crores translating into an EPS of 44 paise only.Though annual shutdown took away Rs.25.68 crores in the quarter the same was existing at Rs.19.22 crores in the corresponding quarter of the previous year.

About The Stock

The company is not expected to perform good in near future so present times do not suggest it to be a good investment opportunity.

Disclaimer : I do not have any personal holding in this stock.

My View On Raj Tv

A new but fancied stock of the capital market.Raj & Sun Tv has come up as rivals where in terms of sheer size, in terms of stock price also in terms of Financials, Sun TV is way ahead.

Hot news In the Counter

1. A few days back, the company was in the news and the stock price had risen on rumours of the company getting into the print media. But the company clarified that at present it has no such intentions though it did make it clear that it is looking at the option of selling 5-10% of its equity to PE investors.

2. The company recently launched a news channel – Raj News and the company is banking on this to increase its ad revenues. It also expects revenue to flow in from Arasu Cable Corporation, starting from Q3 of current fiscal. It has also got into production of Telugu and Tamil movies and has earmarked Rs.30 crore for film production foray. It is currently working on four movies, which are set for release any time now.

3. The tussle, politically and on the viewer ship turf between Raj and Sun would continue. M. Raajhendhran, managing director of Raj TV is a part of the ruling party of Tamil Nadu, the Dravida Munnetra Kazhagam but the MD maintains that his channel is politically neutral.

About The Financials

For the first quarter ended 30^th June 2008, the company posted a 16% rise on a YoY in net revenue earned at Rs.17.50 crore. On this, it posted a 8% rise in PAT at Rs.5.60 crore. The company states that this itself is an achievement as in the face of the rising cost of manpower and content, the fact that it has managed to maintain its profit levels is encouraging.

About The Stock

The stock touched a new low at Rs.55 on 10^th October 2008. After analyzing the details of both the companies it could be deduced that Sun Tv would be a better option of investment.

Disclaimer: I do not have any personal holding in this stock.

My View On Wockhardt

About The Financials of the Company

For the second quarter ended 30thJune 2008 has not been too encouraging. The high interest outgo impacted the bottom lines, nullifying the rise in top line. Its interest outgo for the current Q2 was at Rs.87.95 crore, of which Rs.44.69 crore was on account of exchange rate difference on the foreign currency borrowings. The net profits would have taken a hit but for the adding on of Rs.10.39 crore under exceptional item. The company in Q1 ended 301st March 2008 had accounted for a MTM loss of Rs.27.89 crore, which have reduced by Rs.10.39 crore during current Q2. It entered into hedging Instruments, which are long term in nature to reduce interest cost for the loans, which the Company has taken in past and is outstanding as of June 30, 2008. YoY, the company posted a 48.3% increase in its consolidated sales, at Rs 935 crore for the second quarter ended June 30, 2008.

Positives News On the Counter

1. The company’s US business grew by 128%, which contributes 19% to Wockhardt’s revenues.

2. There were five abbreviated new drug application approvals during this period with a total of 61 products being marketed in the US market.

3. Its European business grew by 30% in the quarter under review.

4. Wockhardt’s domestic business grew by over 20% with its biotech portfolio comprising of Wosulin showing steady sales.

5. As per the Risk Mangement Policy, the company is hedging the interest for 50% of the long term loans.

6. Wockhardt had acquired five companies in Europe, the last being France’s Negma Laboratories in May last year.


About The Stock

Wockhardt has been facing the brunt of this disenchantment and on 10th October touched a new low at Rs.139, continues to languish at these levels. Investors seem to have developed an allergy for pharma stocks, especially thoroughbred Indian pharma stocks.Pharma stocks might take some time to get back the fancy of the investors and no immediate gains are seen in this sector. It is advised to book profit , if the opportunity is availed.


Disclaimer : I do not have any personal holding i this counter.

My View On Praj Industries

About the company

Praj Industries has been one of the fancied stock in the recent rally not only among the traders as well as among the investors too. The stock was volatile and spurt on news coming one after another.The company is engaged in Ethanol distillery projects as well as in brewery projects.

Shareholding Pattern : " Its Different "

JM Financial Mutual Fund bought about 5.80 lakh shares of Praj Industries, increasing its stake to 5.25%. Tata Capital holds 7.33%, Rakesh Jhunjhunwala has a 7.3% stake and Vinod Khosla holds 6.15%. Morgan Stanley holds 2.77%. Makes one wonder what is so special about the company?

About The financials

The financial performance of the company for the first quarter ended 30^th June 2008 has not been as good as expected. Infact its bottomlines took a hit. YoY, its topline showed a 12% growth at Rs.154.76 crore. Though it has managed to contain its operating expenses, OPM slipped from 28.27% to 20.57% and NPM from 20.47% to 15.99%. Ethanol distillery projects contributed over 85% to the topline, whereas the brewery projects made up for the rest. But forex losses during the quarter dented its earnings.

Positive News In the counter

1. The ability of the company to drive down cost as a result of value engineering exercises undertaken as well as the product mix has helped boost contain the margins at these levels. Praj’s current order-book is pegged at about Rs 950 crore of which 48% is from exports and the rest domestic. Being a net exporter, the current depreciation of rupee would go in favour of the company.

2. Increasing acceptance of ethanol-blended petrol and bio-fuels.

3. With fuel bills touching the sky, biofuels is the way into the future and Praj is ready to capitalize on this. It is setting up its first plant in Louisiana, based on sugarcane juice and if this biofuel gets accepted, Praj would have the whole of North America as a market. In EU, it has a JV - BioCnergy Europa B. V., with Aker Solutions. It has also got orders from European sugar majors such as British Sugar, Suedzucker and Danisco. Its JV in Brazil is expected to help tap opportunities there too but this may take a longer while as not much progress has been made on this JV.

Negative News In the counter

1. Suspection of Govt postponing the October deadline for making it mandatory for another 10% ethanol blending.

About the Stock

Though the prospects for the future is good and likely to be promising , one can have some minor stake in the company . Though attractive levels are expected in drastic falls for investors to invest in.

Disclaimer : I do not have any personal holding in this counter.

My View On TTML (TATA TELE.......)

About the company

TTML is headed under the renowned group of TATA.The compnay is engaged in telecoms services.The COmpany holds 38% Stake in TATA INDICOM.It was formed after acquisition of the erstwhile Hughes Telecom (India), and was then renamed as Tata Teleservices (Maharashtra) and offers telecom services using CDMA technology.

Overview

It is licensed to provide telecommunication services in the states of Maharashtra (including Mumbai) and Goa.
It has invested about Rs.3,000 crore in state-of-the-art infrastructure in these states.It has over 1.29 million customers in Maharashtra and Goa and offers telephony and ISP services in the cities of Mumbai and Navi Mumbai, and 137 towns across Maharashtra.

Financials

The financial performance has been consistently bad.Its performance for the first quarter ended 30^th June 2008 has been bad, as expected. Look at it from any angle, be it QoQ or YoY, the performance is bad. On a QoQ basis, the net sales of the company rose 4.88% at Rs.477.96 crore. The company’s EBIDTA was at Rs.154.89 crore, up by just 3% but this has been its highest EBIDTA. OPM, on QoQ fell but on YoY rose from 25.52% to 32.41%.

The total expenditure stood at Rs.464.09 crore of which 25% was on account of depreciation, another 26% was due to interconnect and access costs. The company spent Rs.70.89 crore on marketing and promotional costs.

Even after the interest outgo of Rs.75.32 crore, the company managed to stay in the positive zone but it was only after this that company slipped into the red; the main culprit being the big bill of Rs.114.09 crore on account of depreciation. This ate away most of the margins and dragged the company into losses. This has always been the trend, that’s the “consistency” factor at work here. So at the end of it all, the company reported net loss of Rs.34.71 crore as against a loss of Rs.20.59 crore in Q4FY08.During the Quarter ended June 30, 2008; "Foreign Currency Convertible Bond(FCCB)" holders holding Bonds of the value aggregating to $ 2.00 million exercised their option to convert their holding to equity, thus resulting in an increase in the paid up equity share capital by Rs.3.63 crore.

About The Stock

The stock has been most fancied stock among the traders being TTML a range bound stock for long period. It cycle was fixed , whereby trader start accumulating at lower range and dispose it off near its highest point.During the rally the stock also break its life time high and was success to make new highs and became popular among the investors.

The stock is currently quoted at Rs.22 and this has certainly come down from a high of Rs.65 it had touched in January, which was in anticipation that the company might manage to turnaround.

I do not recommend to make any investment in this stock at any levels , though may be opted for short term trading.In telecom sector investment in Bharti , MTNL and R Com would be better choice.

My View On Gammon India

About the Company

The company is Mumbai based and engaged in infrastructure engineering and construction services.The company is now trying to make a name for itself in the realty sector too.Its subsidiary Gammon Infrastructure Projects, the company is consolidating all its real estate projects under Gammon Realty, which it plans to list on the bourses. Gammon Realty plans to develop a range of properties across India in Mumbai, Bangalore, Mysore and Bhopal, and has already acquired sizeable land.It has invested Rs.160 crore in buying new land and plans to launch projects once the realty market picks up. It is planning an IT park on 10 acres in Dombivli, a Mumbai suburb. Also plans to a high-end residential and commercial complex spread over seven acres, near the Andheri Sports Complex in Mumbai. It has acquired some 200 acres in Mysore and another 200 acres near the new Devanahalli airport in Bangalore.The company has acquired a 75% stake in Italian turbine maker Franco Tosi Meccanica for €40 million and a 50% equity stake in power sector services firm Sadelmi for €7.5 million.

About the Financials

Financially, for the first quarter ended 30^th June 2008, but for the ‘other income’, the company would have posted a dismal bottomline. QoQ, net revenue of the company dropped 29% at Rs.585.24 crore and yet, it managed to post a 123% higher net profit at Rs.52.43 crore. How was this feat accomplished? The company made a profit of Rs.38.55 crore on sale of shares and this comprised of its ‘other income’ which changed the entire ending of the story, from sad to happy.

About the Stock

Stock has touched a new 52-week low at Rs.153 on 26^th September 08’ and continues to remain around the same levels.The foray into realty is expected to propel the company back into the positive limelight.The stock remain a sensitive stock in future market but for investment purpose the stock doesn't seems to be promising.

My View On Corporation Bank

About the bank

The bank is very rarely traded counter and not a fancied stock in banking counter.Regarding the banking performance the bank is not being much popular.The Bank is now in the process of raising its Tier I Bond / perpetual Bonds to the extent of Rs 600 crore and upper Tier-II Bond to the extent of Rs 1000 crore. These are in addition to raising of Lower Tier-II Bond to the tune of Rs 1200 crore.The Tier I ratio was at 10.13%.This is being done to mainly fund business growth this fiscal.The total number of branches at end of Q1FY09 stood at 999. It recently opened its first representative office in Dubai.

Financial Of the Company

The Capital Adequacy Ratio was at 12.43%.For quarter ended 30^th June 2008, the total business of the Bank stood at Rs.93,694 crore, a growth of 27.33 % on a YoY. Total deposits grew 26.62% at Rs.54,742 crore. The bank added 9.27 lakhs new accounts under deposits as at the end of June 2008. Advances grew 28.34% at Rs.38,952 crore.The Total Income of the Bank for the 3 months ended 30^th June 2008 increased to Rs.1,446.28 crore registering a growth of 16.75% on a YoY.

Return on Average Assets of the Bank was at 1.19%. The net worth of the Bank stood at Rs.4,413 crore compared to Rs.3,519 crore as on 30th June 2007.

The Gross NPA has come down to 1.46% compared to 2.07% as on 30th June 2007 and Net NPA to 0.36% as at 30th June 2008 compared to 0.46% on 30th June 2007.

The Net Profit of the Bank for the 3 months ended 30th June 2008 registered a growth rate of 4.06% at Rs.184.30 crore. But for the heavy depreciation on investment portfolio, the Q1 Net Profit growth would have been about 40% higher. For the period under review, the bank had provided Rs 63 crore as depreciation in securities portfolio.

Stock Counter

Corporation Bank is currently near about its 52 week low of Rs.230.I do not recommend to stay invested in this counter or to make any fresh holding.

Disclaimer : I do not have any personal holding in this stock.

My view on Voltas Limited

About The company

Voltas limited is a entity of TATA group ,the company is engaged in export to turnkey electro-mechanical projects for built environment. It is the biggest exporter of the same in the country. It is also the largest air conditioning company of India.It is a trusted name in mining and construction equipment, having executed the world’s single largest order of Rs.1,000 crore from Coal India.

Some of worth mentioning projects

1.The new Hong Kong Airport.

2. Mall of Emirates in Dubai.

3. Emirates Palace Hotel in Abu Dhabi.

4. Provided air conditioning for the new Hyderabad and Mumbai airport.

About the financial of the compnay

Financial position of the company for the first quarter ended 30th June 2008. YoY, net sales of the company rose 22% at Rs.1006.73 crore and despite a 205 rise in operating expenses, EBIDTA was up 58%. The over three times rise in other income also helped the operating margins. PBT was up 61% at Rs.126.18 crore and tax outgo was up 53%. PAT was up 63% at Rs.85.13 crore. The OPM was up at 12.88% from 9.94% and NPM at 8.46% from 6.32%. The Electro-mechanical projects & services division contributed Rs.463.16 crore, cooling products Rs.400.77 crore and the engineering products and services division contributed Rs.136.42 crore. The overall high sales for Q1FY09 was mainly on account of the cooling division which is seasonal and almost always, is the highest in first quarter. The company had an exceptional gain of Rs.23.21 crore which also boosted the profits and this was due to assignment of leasehold rights at Rs.23.24 crore, of which Rs.30 lakhs was deducted on account of VRS expenses.

Subsidary & Acquisitions

Voltas has acquired a 51% stake in Rohini Industrial Electricals for a consideration of Rs.62 crore. Prior to this, on June 17, 2008 the company purchased a subsidiary of Fedders Corporation, which is now a subsidiary of Voltas.

Shareholding pattern of promoters

A trait of Tata group, the promoter’s shareholding remains low at 27.57% and institutions hold 44.03%. LIC holds a 7.74% stake.

About the stock

In the meltdown of last week, it touched a new low at Rs.112.For long term prospective stock is a good buy.

Disclaimer : I do have any personal holding in this stock.

My View On DLF

The grand grand IPO , after a postponement enter the capital market being one of the biggest IPO ever of the time and received a overwhelmed response from the domestic as well the investors from abroad.The company has been no doubt and yet at present too is the leading company of its field.Unitech is another of its kind,whose shares has rewarded the shareholders in a significant manner and being titled as a multi multi bagger stock.
The entry of DLF was late in the market & as well as the recession in reality market thereafter did not provide a chance to the stock to perform or we would have seen a similar pattern of return.


The real estate slow down seems to be catching up with the big time realtor's too. DLF too is now feeling the pinch of the slowdown in the realty sector. Falling demand has forced the company to give the termination to 300 of its employees across India. And in big cities, where it is developing huge and prestigious projects, it cannot afford to slowdown despite the slowdown. Hence it has decided to go slow on its project executions in tier II cities.

But despite the slowdown, having purchased land at exorbitant rates, the company cannot simply afford to bring the prices down. So though there are no takers for many of its office and retail spaces, DLF is adamant about not bringing down the prices. Instead of bringing down the rates, it has decided to build less, stagger projects and thus spread the costs.

The company is trying its best to over come the problem , which is time being. The company was , is and will probably be the best and one of it's kind. No need to care about the fundamentals of the company. Once the stock market gets improved , the reality sector will get recover and hence both negative points will be solved out and the stock will be able to show its sub due performance.

Disclaimer : I have no personal holding in this stock.