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.

Alternative To Equity (Stock Market) Investment

As we know the stock market has been butchered including domestic as well as the international market. The mutual funds are also performing very bad with constant reducing NAV.As the clues in the market remain such that immediate or bull run in short to medium term could not be expected.In such case we must focus on the alternatives present in the market , who are the best substitute for investment of our hard earned money.

1. Fixed Deposit
The first best alternative to equity market would be certainly Fixed Deposit , as the rate of return in the F.D is attractive and rising constantly.We should focus on the cause of rising interest rate:

1. If we look at the market inflation rate , which is near about 12% (appx.) ,whereby the interest rate on deposits at banks were about 8.5% to 9% , which is giving a negative revenue for us to meet or give a match to the inflation. In other words due to rising inflation our expense is rising by 12% p.a while our income on deposit is generated @9% making a deficit of 3% (appx.) .
thereby forcing the bank to offer there customer higher rate of interest to prevent premature redemptions.


2. In order to check inflation RBI under its credit policy issued from time to time is adopting measure to control liquidity in the market thereby hiking the lending rates and thus automatically the deposit rate get hiked.


2. Gold & Silver

It would be great to accumulate raw gold and silver in this festive season. The prices are going to soar in near to medium-long term.These metals are going to break there high in short term and will make new highs one after another , making it out of reach of general person and rewarding the investors generously.

These two alternative are the best amongst the various variants available in the market and would help investor to get generous return out of there investment.One can allocate there funds among the various options considering the two above as per there needs , funds , time of investment etc.

STOCKS TO FOCUS.

Present Scenario

At present times when the market is volatile , inflation is breaking records , interest rate are high , U.S economy is
under recession heading towards bankruptcy , Indian elections ahead , Soaring Crude Prices are all a matter of great concern.

In such unstable and volatile market , it becomes very difficult to decide the sector and the counter to enter.

Negative Counters

Reality sector will not get response soon.Among them the worst hit would be Unitech & DLF. Though Unitech has been under performing and was beaten up from long time due to sale of stake from Lehman Brothers. The counter is not expected to get well soon.

Regarding Banks , if a fresh entry is needed then preference should be given to Axis Bank. Sound company with minimum exposure in U.S market and is building up well.