Investment GuruInvestment Guru
Your Guide to Investing in Indian stock markets
Articles: 1, 2
Top 5 Tax saving Mutual Fund Schemes
Invest in these Schemes for best of Safety and Returns Most of us have received emails from our HR/Admin asking us to submit the proof of Investments for the purpose of Tax Saving s before a specified date and I am sure a lot of us are still in thinking mode as to where to invest for Tax savings. I had written a post last year (How to Invest for Tax Savings?) on the various avenues of tax savings and one more post on Top 5 tax saving funds. Well things have changed from last year in terms of stock market performance and it's right time to review which tax saving or ELSS (Equity linked saving schemes) should we invest in. Well, when I compared the tax saving schemes last year, I concentrated on the Top performing funds over a 5 year and 3 Year timeframe. We are currently going through such a phase in the stock markets which makes us think of saftey of our investments too. Hence I have introduced one more filter in terms of Risk profile of each fund (based on Standard deviation) and Y...
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Reliance Power : Basis of Allotment
Reliance Power : Allotment Status and basis of AllotmentThe wait is finally over. The allotment status of Reliance power IPO is out and you can check the same by clicking the link below or on the IPO Allotment Pane on the right hand side.Reliance Power IPO Allotment StatusBasis of Allotment The current Grey market premium for Reliance Power is in the range of Rs. 150-180
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Is it the right time to buy stocks ?
Start picking Fundamentally strong stocks Well the great Indian stock markets continued their southward journey. Today they reached Kanyakumari but realising they have gone too far returned back to settle at Bangalore. Jokes apart, today was one more day of high drama at the dalal street with trading coming to halt within minutes of opening. The street was market with scary scenes ( or do I say pleasant stock prices for those sitting on cash !) with tickers pointing losses tuning to 10 to 20% and even worse for a majority of stocks. Well, in my post "Stock Markets- New Year, New Horizons" dated 13th january, I had mentioned that the Indian markets will see profit booking in the month of January. But then hardly could I imagine that the extent of fall will be of this magnitude and speed. I was expecting the markets to correct by around 2000 points but as I write this post the markets have already corrected by more than 4000 points on sensex. Though the trigger was FII selling , the ...
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IPO Update : Reliance Power payment Options
As per the latest data available on NSE website the Reliance power IPO has been oversubscribed by 23 times by now. Money control says that the Retail portion has been subscribed 6 times. We were discussing in yesterday's post about the payment option to be chosen for applying to reliance power IPO. Now since we have more clarity on the subscription data , it looks that applying through part payment option would be a good idea as your capital investmnet would be lesser ensuring higher return on your investment.However, it is sad to say that the company has not clarified if it going to allot fully paid up shares to those applying for partly paid up shares in case of oversubscription. So the clouds of uncertainty are still there. The company reserves the right to allot you partly paid shares and call for the balance amount at a later date stipulated in the prospectus. Hence, one may not get shares before listing and may be reduced to a mere viewer seeing others booking listing gains. ...
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Reliance Power - In "Name" lies the Power
Dear friends, you must have heard a lot on Reliance power IPO and why not, there is an unprecedented euphoria for this IPO. Ask anybody and the reply will be – “Reliance Power - Yes, I am going to apply for it”. This is called the power of Name or say power of brand Value. You can sell a rock for a price of diamond if it is sold in the name “Reliance” and yes such brands are not created in days. It has taken late Sh. Dhiru Bhai Ambani a life time to create this brand and such is the magic of the brand that a project which is going to be up and running only in 2010 can ask a massive premium and that too with a expectation of it doubling on the listing day. So who says “Naam mein Kya rakha hai ?”I am not going to write an IPO update sort of thing on reliance power. Why ? because I don’t think anybody would like to read me on whether they should apply for it or not! But I would like to dwelve on some questions that this IPO has raised.Is Reliance Power going the RPL way?...
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Stock Markets: New Year, New Horizons
It's a great feeling to be back on the blog after a period of one month. Last month had been quite hectic in terms of balancing both the official and personal fronts and alas, the blog suffers. I ended the year 2007 on a devotional note with a trip to Lord Tirupati balaji and the trip was quite satisfying in terms of re-energising for the new year ahead as well as spend some quality time with the family. I wish that I could spend more time with the blog this year and fulfil the aspirations of the readers who often complain of irregular updates and missing investment ideas on the blog.I wish all of you a very happy, prosperous, fun-filled and an eventful new year and we all wish that the India Inc. too manages to bring cheers on the D-Street. So let's start the new year take stock of the past events and how would they shape the sensex this year.Year 2007 : Sensex Redefined The Year 2007 saw sensex raising its bar to record a second highest rise in last two decades of its history. S...
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IPO Allotment Status : Jyothy Laboratories
Jyothi Laboratories - IPO Allo tment Status Click her to Check Allotment Status of Jyothi laboratories IPO The stock was offered to investors @ Rs. 690 and the grey market is putting a premium of Rs 200 on the offer price.Meanwhile Both BGR Energy (100 x)and Transformers and Rectifiers (82 x) IPO have been hugely oversubscribed on the closing day.
IPO Update : Brigade Enterprise Limited
Banking on BangaluruBrigade enterpise limited has entered the capital markets with an offer of 166.24 lac shares of Rs. 10 each at a price band of Rs. 351-390 per share. Investment Guru is of the view that realty and infrastructure sector would continue to be in limelight as it makes deeper inroads in the world of stock markets. Brigade enterprise’s business model comprises of a mix of residential, commercial and hospitality properties. The company’s operation and land bank are focused in and around Bangalore. Exposure of the company to a limited geographical area and a lean land reserve of just 44.16 million square feet might put a dent on the margins in future. However, the bright side of the picture is that the company has sizeable ongoing projects which would keep the scorecard ticking in the medium term. On valuations parameters the stock looks aggresively priced leaving little scope of appreciation for Investors. The issue also has a green-shoe clause which would be used t...
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IPO Update: Transformers & Rectifiers India Limited
Transforming the power equationTRIL has entered the capital markets with a public issue of 29.95 Lac shares of Rs. 10 each at a price band of Rs. 425-465 per share through book building process. Investment Guru is of the view that Power transmission and distribution is an integral part of the power sector’s growth story and Transformers play a pivotal role in this process. TRIL is one of the major players in this segment. However, in this case too the promoters have not left much on the table for the investors as similar companies are available at same valuations in the secondary markets. One can apply for the issue with a view of moderate listing gains on listing. However, from a medium term perspective investment in peers such as Indo-tech transformers is also advisable as the company is operating on better margins.Let’s take a look at the companyTRIL is one of the major players in the India n markets manufacturing a wide range of transformers ranging from power generation, tra...
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IPO Update: BGR Energy Systems Limited
Electrifying Business at Sky High PricingBGR Energy systems has entered the capital markets with a public issue of 91.36 Lac shares at a price band of Rs. 425-480. Investment Guru is of the view that the company is into the powerful business of Power equipments and hence has potential to deliver excellent performance given its unique business proposition, government’s thrust on this sector and the demand supply mismatch.However, the promoters have been greedy in pricing the issue and the issue at the higher band is asking for a valuation in line with those of Blue-chips like BHEL and L&T. ICRA has assigned Grade 3 to the issue indicating Average fundamentals. I would prefer to stay away from the issue (though it is commanding a premium in grey market even at this aggresive pricing) since the current fundamentals do not justify such a high valuation and I would not like to pay a price today for the three year forward earnings of the company given the risk factors (see below). I...
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Kaushalya Infrastructure IPO Allotment Status
Edelweiss IPO to list on Wednesday, December 12th, 2007As per NSE circular, Equity Shares of Edelweiss Capital Limited would be listed on the stock exchange on Wednesday, 12 th december,2007. The Stock is currrently commanding a huge premium of Rs. 700 on the offer price of Rs. 825 per share in the Grey market.Kaushalya Infrastructure IPO Allo tment Status The IPO Allotment status for Kaushalya Infrastructure Development Corporation limited is out on its Regisrar's website Intime Spectrum.Click Here to Check Allotment StatusThe company had offered shares @ Rs. 60 per share. the issue was subscribed by around 7 times. The grey marlet is putting a premium of Rs. 10-12 on the stock.
Kolte Patil, Renaissance Jewellery IPO Allotment Status
Kolte Patil IPO Allo tment Status The isuue was subscribed whopping 46 times with retail portion oversubscribed by more than 16 times. The stock was offered at Rs. 145 is commanding a premiuim of Rs. 70-80 in the grey market.Click here to Check Allotment Status of Kolte Patil IPORenaissance Jewellery IPO allotment StatusThe company had offered shares @ Rs. 150. The issue was subscribed 24 times with retail portion oversubscribed by more than 10 times. The stock is commanding a premium of Rs. 30-35 in the grey market.Click here to Check Allotment Status of Renaissance Jewellery IPO
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A week of IPO Listing !
IPO's showers money on investors, Mundra listing on 27th NovemberWe saw a lot of IPO's listing this week and few more are coming to rock the markets. Before that let me give you an update that the Intime spectrum site is working and you can check allotment status for Mundra Port IPO. As far as IPO refund for Mundra port is concerned, you can expect them in your bank accounts by 27th November as per information posted by the Registrar. Mundra is listing on the bourses on 27th November and is expected to have a grand listing in the coming week. The stock may list around Rs. 1,000 levels on Tuesday. The most rewarding IPO was the least talked about. Allied computers which listed on BSE rewarded investors with a return of 217 %. This was followed by religare which rewarded investors with 182 % return. Out of the 5 IPO's that listed this week, only one Rathi Bars disappointed the investors and generated a negative return of 9%. And all this when Sensex posted a fall of 840 odd points ...
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Mundra Port Allotment, Barak valley Listing tomorrow
Mundra Port IPO Allotment StatusMundra Port IPO Allotment Status is out . You can check the allotment status from link belowClick here for Mundra Port IPO Allotment Status The website of Intime Spectrum, the Registrar to the issue is currently not accesible due to heavy traffic of investors, so it is advisable to check status late in the night or you can call the intime spectrum office.The stock was oversubscribed a whooping 116 times with Retail portion oversubscribed 16 times. An extremely strong listing is expected for the stock given the apetite for the IPO. The Grey market is putting a price tag of Rs. 900-1000 for the listing of Mundra Port.Barak valley Cements listing tomorrowBarak Valley Cement is listing on 23rd November,2007. The IPO was subscribed 27 times. Against the offer price of Rs. 42, the stock is commanding a premium of Rs. 28 in grey market which translates into a listing price of Rs. 80 Investors are advised to book profits on a price above Rs. 80Rathi Bars to...
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Companies where P Note exposure is High !
Fallout of P Note s continues to haunt the marketsFollowing are some of the companies where the P Note exposure is considered to be relatively higher and investor should keep above in mind while dealing in these shares. These stocks can witness bouts of unwinding (though not necessary at same time) and hence investors should be careful while taking a decision to invest or otherwise.India Bulls Financial ServicesICICI BankHDFCBharti AirtelReliance CapitalReliance EnergyFinancial TechnologiesSAILIVRCL InfraGateway DistriparkAptechBHEL(Please note, this is not an exhaustive list)
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Humpty Dumpty sat on an wall.......
Sebi circular on PN's drives sensex crazy In my previous post I was talking about what could make sensex fall from these levels and what I could find was that something related to FII's could be the possible driver...gosh....and what I feared came true....SEBI's draft circular on PN's came to a big jolt to the market sentiments as the markets feared that it would lead to withdrawal of money by these investors from the markets.We saw a drastic opening which led the markets to shut down for 1 hour. Leading stocks were seen down ranging 20% to 15% at a wafer thin volumes. Yes, it took just few seconds for the markets to reach the level which lead to a shut down for 1 hour...nobody got a chance to react... Our finance minister had to come out for a statement, but came from it was that he backed the SEBI's move and according to him the move is beneficial for the markets as well as the participants. Everybody as waiting for correctionyes, the recent rally had really stunned the inves...
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Metals shines as Sensex climbs mount 19K
Sensex defies law of Gravity, bull run goes beyond Reliance Pack Law of gravity says that everything which goes up, comes down. Looks like this doesn't applies for the Sensex !! What a day it was ! With sensex finally climbing 19000, it made sure that the cheers comes from across the board rather than only Reliance pack holders . Today was the day for metal stocks to shine brighter and make their presence feel in the march of sensex to glorifying heights !The beauty of today's rise was that it was secular in nature (did I say secular , sorry Tech is out flavour still, can't help it). The rally spread across the large , Mid and small cap stocks.Let's discuss some of the stocks that I have discussed earlier on the blog and see how they are doing. One of My favourites in metal pack "JSW Steel", rose around 13% to cross the 1000 mark. The stock had a spectacular run in the last one year. Sail also rose 16% to close at new high of Rs. 260. Skumars continued its run ahead of the demer...
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IPO Update - Power Grid Allotment Status
Power Grid IPO Allo tment has been done. Congratulations to all those who have got the allotment sione the stock is bound to list at a huge premium to the offer price.Investors who have applied for the IPO can check the allotment status here >>>Check Allotment Status The issue was oversubscribed a whooping 65 times creating a history in the IPO market. QIB section got oversubscribed by 115 times. Retail portion got oversubscribed by 7 times.As per unconfirmed sources, the IPO grey market is putting a premium of Rs. 25 on the offer price of Rs. 52. We will discuss the listing strategy in detail once the listing date is finalised.
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IPO Update : Supreme Infrastructure
Making Roads to Success Supreme Infrastructure has entered the capital markets with an offer of 34.75 Lac shares at a price band of Rs. 95-Rs. 108. Investment Guru is of the view that the company's business model of integrated construction setup has worked well and has enabled it to garner higher margins in an otherwise low margin business. There are few factors such as over-dependence on government projects and inexperience in the construction of office spaces which are relatively dark areas. However, the company has priced its IPO very modestly and investors in the IPO can expect good listing gains. Given its entry in the construction of IT parks and related areas, the stock would be worth watching from a medium term perspective.About the CompanySupreme Infrastructure is a medium sized Company in the infrastructure sector and is engaged in construction of Roads, Highways and widening of Highways. The company owns and operates a Ready Mix Concrete (RMC) Plant (powai) for captive c...
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Bulls on the Rampage, Reliance Rules, IPO magic continues
Sensex Strikes life time high of 16616, up 2555 pts. in just 23 days Looks like India is going through a very good phase. On one hand our cricketers are showering fours and sixes and delivering amazing performance at the world cup, on the other hand the stock markets are flaring up with sensex hitting all time high of 16616 with superstars like Reliance hitting every ball for a six !!! whatever, the game has taken an intresting turn, be it cricket or the sensex. So what's next ? Will our cricketers win over the australians ? will sensex post a new high on monday ? We should all thank Mr. bernanke , the US Fed chief for a 50 basis point rate cut which brought cheers to markets across the globe. Markets are now expecting RBI to announce a rate cut ! Fed's decision is being seen as a helping hand to the ongoing subprime crisis. On the Indian markets, this would ensure flow of funds to indian markets and hence liquidity would continue to be a driving factor for the markets.Reliance st...
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IPO Update- Consolidated Construction Consortium Ltd.
Making hay while the sun shinesCompany : Consolidated Construction Consortium Ltd. (CCCL)Sector : Construction / EngineeringShares Offered : 37 LacPrice Band : Rs. 460 – 510CCCL is a good mix of play on construction and engineering space. Investment Guru is of the view that the company has good growth potential given the visibility into its earnings based on 2000 crore order book, good management pool and its move towards high margin businesses. However, the IPO has been priced quite aggressively and the quantum of listing gains depends on the state of markets at the time of listing. Investment Guru expects moderate listing gains on listing.About CCCL CCCL is a provider of integrated turn-key construction services in the industrial, commercial, infrastructure and residential sectors of the construction industry. The Company was incorporated in 1997 in Chennai by promoters (ex L&T engineers), four of whom have over 20 years experience each in the construction sector. The compan...
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IPO Update: Koutons Retail India
Aggressive growth, Aggressive pricing Koutons Retail has entered the capital markets with an offer of 35.24 lac equity shares at a price band of Rs. 370 -415. Investment guru is of the view that the company has taken advantage of the retail growth story of India and has been able to deliver excellent growth with a viable business model. The future holds good for the company and the IPO proceeds would be used for expansion plans to fuel company growth engine. At the same time the company has priced the issue quite aggressively. However, given the growth rate in Topline and bottomline, and future expansion plans , and due to low float available to public, the stock would be bound to offer smart listing gains to the investors.The Organized Retail storyThe Indian retail sector is at an inflexion point with economy growing at 7-8%, favourable demographics, rising consumer incomes, real estate developments like emergence of new shopping malls and changing lifestyles that bring the Indian ...
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IPO Update: Power Grid Corp. of India Ltd.
Power Grid to Transmit Listing Gains, Get Electrified Powergrid Corporation has entered the capital markets with a public offer of 57.39 Crore equity shares at a price band of Rs. 44-52. The company intends to raise about Rs. 3000 crore at the higher band. Investment Guru is of the view that the company has good growth potential given the thrust on power sector reforms and its importance in the growth of the economy. The issue is priced reasonably and offers scope for listing gains. Hightlights of the IPO :Power Grid is into the business of Power transmission. (In Year 2007, it transmitted approximately 298 billion units of electricity, representing nearly 45% of all the power generated in India )The company has completed 101 transmission projects and schemes valued at Rs. 251.81 billion. As at June 30, 2007, it had 45 transmission projects in various stages of implementation. The Company plan to spend Rs. 550 billion towards investment in transmission projects during the GoI’s Ele...
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The Road Ahead : Markets to remain tricky
Global clues, Political developments & liquidity would be Key factors Wow! It's a great feeling to be back on the blog after a gap of more than one month. First of all thanks to all the readers of the blog who have showed tremendous faith in the blog and have been kind enought to wait patiently for updates on the blog. I am penning this post from myhometown Jaipur. I arrived here on Saturday afternoon and the city welcomed me with a scanty shower that changed the mood of the climate. Today also we witnessed a short span of showers and cool breeze was blowing. Jaipur , as always, has been close to my heart and every time I come here I make plans of settling here, sooner or later. I am sure I am going to write a great chapter in my career soon and when I do that most probably I would be based at Jaipur. I am not going to open the cards further and frankly these are just some thoughts that come to my mind . I need some hard core planning to convert this into action. Well, lets leave t...
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IPO Update : Everonn Systems India
Everonn - Technifying India 's future, Apply for listing gainsEveronn Systems has entered the capital markets with a public offer of Rs. 50 crore worth of shares at a price band of Rs.125 -140. Investment Guru is of the view that Indian IT Training business segment has huge potential given the young demography advantage of India and hence company's imparting IT training have good potential. Everonn Systems is a play on both the IT training as well as the niche segment of "Vitels" which is a virtual and Technology enabled learning solutions. However, company is heavily dependant on government initiatives and has high debt outstandings which can impact future cash flows given company's huge capex oriented plans. However, since the issue is compared to peers like Educomp and NIIT which are quoting at fancy premiums, it may generate listing gains for Investors.Let's look at some of the highlights of the issueAbout Everonn SystemsIndia is currently one of the largest markets for Schoo...
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Sensex to touch new high, "Vishal" listing today
Sensex to make a further new high todayYes, We have touched a new high yesterday and yes, we would repeat it today. The sensex is on the roller coaster ride driven by all roundpositive developments. The Global clues are positive and so is the situation back home. Liquidity is ample and inflation fears have cooled down. Interest rates are also sitting quietly. The sensex which closed at 14806 yesterday after striking a high of 14828 is poised to post a new high today. Select Midcap stock would continue to remian in limelight. Watch out for Skumars, Welspun Gujarat, Bank of Rajasthan, South Indian Bank and Punj LLoyd.Vishal Retail set for a "Vishal" listing !Yes, that's not a news for most of the Investors. Vishal retail is all prepared to set the markets on fire and that too with a explosive listing. The company has issues shares to investors @ 270 per share. Investment Guru is of the view that the stock would list in the range of Rs. 550-600 and will actually move further up during...
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IPO Update : Suryachakra Power corp. Ltd.
Suryachakra : Lacking the Power Punch ! Suryachakra Power corporation limited has eneterd the capital markets with an offer of 3.4 crore shares at a price band of Rs. 17-20 per share. Investment Guru is of the view that Suryachakra is a small player in its segment and hence doesn't command economies of scale which is an differentiating factor in the power industry. The IPO has also been priced very aggresively compared to company fundamentals. The outlook for power sector has been optimistic given the governments focus on infrastructural growth of India, however, it has to be seen if small plyaers like Suryachakra can really take advantage of this. The foray into power trading and Bio-diesel sector are a positive but the company's ability to succeed in these ventures is yet to be tested and proved. The IPO is rated as average. About the CompanySPCL is part of the Suryachakra Group and is headed by Sh. P.V RaoThe company's vision is to be a frontrunner in power trading by developi...
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Neclast disappoints admist sluggish market
Nelcast slips below IPO Price The listing of Nelcast was diappointing for those who got the allotments. The stock which listed at Rs. 230 in the opening trades soon started tumbling down. Though the stock did touch 274 levels on NSE, I believe not many trades would have happened at those levels. After staying near the IPO offer price for some time the stock went into discount zone and couldn't recover from the jerk's. The IPO was reasonably priced and the markets didn't thought it fit for further premium. The stock is currently qouting at Rs. 206 down nearly 6% from the IPO price.
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Nelcast listing on June 27
Nelcast to list in the range of 260-285Nelcast Ltd. is listing tomorrow on both BSE and NSE. The company has alloted shares @ Rs. 219 per share. The issue saw a good response and was oversubscribed by 7.36 times. the retail portion was subscribed around 4.6 times while the Institutional Investors portion got oversubscribed by 11 times. At the offer price the stock comes at a P/E of around 20 which can be considered to be reasonable given the current valuation of auto ancilliary sector. The stock is expected to list between Rs. 260-285 given the current IPO listing trends. A listing above this level can be considered as a good opportunity to book listing gains.
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Vishal Retail IPO Allotment StatusMore articles from this author:
Vishal Retail Allo tment Status is out. Investors who have applied in the IPO can check whether they were lucky enough to get allotment.Check Allotment Status of Vishal retailWe will discuss the expected listing price (one thing is sure that listing is going to be a explosive one) and how to play the stock on the listing day once the listing date is available.See Investment Guru's IPO update on Vishal retail
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