INDOWIND ENERGY Stay away Stock

Net profit is at Rs.7.06 crore, its highest ever in any quarter and almost equal to Rs.7.20 crore which it posted for 12 months FY09. QoQ, net profit is up more than 7.5 times and YoY, it is up 60%.
It has a net sales for Q1FY10 of Rs.8.83 crore, down 72% on a QoQ and down 34% on a YoY. OPM is at an unbelievable 101% and NPM at 80%. This is even better than a realty company!
The company has an other income of Rs.2.19 crore and operating expense is down to a meager Rs.2.05 crore of which Rs.1.81 crore is via ‘other expense’ and Rs.24 lakhs on employee cost . Where is the expense on raw materials? Does this mean that income in first quarter was from trading income only? Something somewhere smells completely fishy here.
The stock was up yesterday by 9.76% at Rs.36. Purely a speculative stock. Just get out using this momentum as the results are more of a warning than a sign of good tidings. thanks

IDFC Yet Another Strong Infra Stock to Invest

After long wait today I made purchase on IDFC. This highly reputed infra company, despite the trying circumstances, has posted a good set of results for the year ended 31st march 2009. Its Net Interest Income (NII) increased by 33% to Rs.922 crore and of this, NII came from infrastructure loans, which increased by 34% to Rs. 758 crore and NII from treasury operations increased by 27% to Rs.164 crore.
After accounting for Rs. 278 crore for tax, profit in associate company and minority interest, net profit for FY09 was stagnant at Rs.750 crore as against Rs.742 crore in FY08.
The biggest concern was IDFCs’ exposure to realty. Total disbursal outstanding to commercial and industrial infrastructure, as on 31st March 2009 stood at less than Rs.3,000 crore, accounting for about 12.9% of its total outstanding disbursements.
Govt continues to hold 20.2% stake in the company as on 31/03/09. FII/FDI holding has come down to 39.5% (46.7%), Mutual funds holding is at 7.7% (8.5%), Corporate Bodies have increased stake to 4.3% (3.5%) and retail has increased the most at 13.3% (7.7%).
Net NPAs was at 0.21% of outstanding loans. Capital Adequacy Ratio was at 23.75% (Tier I – 20.04%; Tier II – 3.71%).
FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude. Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well. thanks.

Nava Bharat Ventures Good Power Stock to Stay Invested

Nava Bharat Ventures got into power and sugar and that has been a very wise decision. It is power and sugar which has helped the company face the rough weather in FY09, especially in ferro alloys, where lack of demand since the end of Sep’08, forced the company to curtail production and shut its ferro chrome furnace.
Overall performance for FY09 was good. In the last quarter of FY09, the topline and the bottomline took a dip. The revenues for the quarter fell by 12.14% to Rs 303.36 crore and net profit declined by 16.13% to Rs.108.54 crore. Power segment sales rose by 92% while ferro alloys sales was down 74%.
For FY09, revenues of the company increased by 43.43% to Rs 1,350.05 crore and its net profit increased by a whopping 62.84% to Rs 520.57 crore. The company posted a forex loss of Rs.29.17 crore. It also bought back 1.93 million equity shares of Rs 2 each for Rs 23.26 crore and extinguished equal number of equity shares. After this, the paid up capital has come down to 7.59 million equity shares of Rs 2 each.
The company plans to go full throttle with its power projects and has plans to set up a 1,050MW merchant power plant (50: 50 JV with Malaxmi group) and another 64MW at its existing location in Orissa. Capex envisaged is Rs.4700 crore ad is expected to be commissioned by FY12. It has been allocated Rambia coal mine in Orissa with estimated reserves of 112 million mt. It also plans to put up another power plant in Andhra Pradesh.
This remains a good long term stock as it is power which will power the company in the coming months. thanks

YUKEN INDIA

Yuken India manufactures hydraulic equipment including hydraulic pumps for industrial and mobile applications, hydraulic valves, mobile valves and complete hydraulic systems to suit customer-specific requirements.
Hydraulic devices are mainly used in the heavy engineering industry for automation. With automation the buzz all around, Yuken’s products have a good demand. This perception of good demand has been reflected in the share price but unfortunately it has not been seen in the financial performance.
For FY09, the company posted net sales of Rs.105.48 crore and on this, it posted a net profit of a meager Rs.99 lakhs. The company had posted a loss in Q3FY09 but it managed to turnaround in Q4FY09 with a tiny net profit of Rs.20 lakhs.
The stock enjoys fancy on account of its brand name. Its been around for the last 31 years, with most manufacturers of Original Equipment using Yuken as their preferred partners for hydraulics. Yet given the current performance, an EPS of Rs.3.30 on a FV of Rs.10/share, a PE of over 18 at the current market price, comes forth as being more than fully priced. thanks

THERMAX Remains a Very Good Investment

The financial performance of Thermax for year ended 31st March 2009 company has managed to keep its head way above the water.
The company showed a 1.75% rise in total income at Rs.3303 crore. Export income, including deemed exports, increased by 35 % to Rs. 912 crore. The consolidated income of the group was lower by less than one percent at Rs. 3501 crore. Net profit rose marginally by 2% at Rs.287 crore. The Board recommended a dividend of 250% (Rs. 5 per share of face value of Rs. 2).
The fourth quarter performance indicates that things are surely improving. In Q4FY09, the company posted an income of Rs. 960 crore, up by 3% on a YoY. Net profit was up 17% at Rs.94 crore.
The Thermax group order book, after consideration of renegotiated orders, stands at Rs. 3078 crore as on March 31, 2009 compared to Rs. 2637 crore in the previous year. During the year, the company has received some prestigious orders for captive power plants, utility boilers, municipal sewage treatment and performance chemicals for the oil sector.
Clearly, things are on the upswing. It will take a while to bounce with vigour but the energy is back. Thermax remains a very good investment– as its orders to the power sector will get a fillip as it remains a priority sector for growth. Specialising in energy conservation systems and captive power projects, Thermax is likely to profit from the growing importance for energy management among its user industries. stay invested. thanks

Indraprastha Gas Limited (IGL) Think About It

IGL Looks good.
Indraprastha Gas Limited (IGL) is India’s biggest gas distributor, owned by the state-run GAIL and Bharat Petroleum. It supplies compressed and piped natural gas for Delhi and its outskirts. Results for the third quarter ended had not good, But its performance for the fourth quarter of FY09 was good, with improved OPM and NPM on a QoQ basis.
For FY09, IGL registered a turnover of Rs 857.12 crore, posting a sales value growth of 21%.The company reported a 1.14% decline in net profit at Rs.172.47 crore. The biggest impact was on account of the demand of Rs 17.50 crore received from supplier of natural gas for excess drawl of gas for July-December 2008. OPM was down from 45.82% to 38.07% and NPM was down from 24.71% to 20.12%.
The company has signed up for a gas requirement of 0.2 million metric standard cubic metres a day (mmscmd) with GAIL and BPCL. It will also get 0.3 mmscmd of gas from Reliance Industries’ K-G basin.
Over the next 12 months, IGL plans to spend Rs.1600 crore to expand its retail network to 240 retail outlets before the commencement of the Commonwealth Games in October 2010. It has been allotted land for 18 outlets and more are in the process of being allotted. We have been allotted land for 18 outlets and more are in the process of being allotted. The company plans to add 50,000 new PNG connections in the current financial year and take the total PNG connections to 300,000 by 2012.
With the importance given today to environmental friendly companies and priority to petrol/diesel substitutes which are clean, IGL is poised to do well. Being an already established player, it also has the advantage of being amongst the first entrants. Think about it having in portfolio. thanks

SHRIRAM EPC Results Wait & Watch

Shriram EPC provides solutions for renewable energy projects and is a major manufacturer of wind turbines. For the year ended 31st March 2009, the company posted a net sales of Rs.1005.80 crore, up 44% and this is for the first time that revenue crossed Rs.1000 crore mark. But its profit margins are dismal. It posted a net profit of Rs.47.47 crore, up 35%. This on an over Rs.1000 crore turnover does not look too enticing. The NPM for the year thus stands at 4.72%.
The company has commissioned two units of a biomass power plant for Lakshmi Energy in this financial year and has commenced operations at its integrated wind turbine manufacturing facility, with capacity to manufacture MW class wind turbines, in Gumminipoondi. Its consolidated order book stands at Rs 1670 crore billion as on March 31, 2009.
The company had issued shares at Rs.300 when it had come with the IPO in early 2008. Today it is quoted at just around Rs.183 levels and shareholders are surely in a loss. They may have to wait for some more time. thanks

Bajaj Hindusthan Q2 results of Largest Indian Sugar Mill

Bajaj Hindusthan has posted flat results for Q2 March 09. Optically it looks good, which is due to reversal of forex losses of Rs.83.66 crores provided earlier and now credited back to profit & loss account.
However major disappointment is from its sugar and distillery segment. The company, as at 30-09-08, had a closing stock of 35.56 lakh bags of sugar, valued at Rs.16.25 per kg., at Rs.578 crores. It is learnt that the company had crushed 64 lakh tonnes of sugarcane in the current season and has produced 57 lakh bags of sugar with a recovery of 8.9%. Part of opening stock, out of 35.56 lakh bags, were sold in Q1 and remaining quantity got sold in Q2. In Q1 average sugar realization was at Rs.17.75 per kg. while it was at Rs.20.60 per kg. in Q2. So, sugar segment earned an EBIT of about Rs.4.35 per kg. But this is not reflected in the results as its sugar segment had an income of Rs.408 crores and EBIT of just Rs.30.50 crores. Even distillery for Q2 had a turnover of Rs.38.63 crores and negative EBIT of Rs.1.19 crores which is surprising.
Considering overall results, the company being the largest sugar mill in the country with a capacity of 96,000 TCD, has really disappointed. thanks After election results, sugar stock will show good results, keep the good sugar stock in your account.

Yes Bank Think About It Results Pattern

Yes Bank has posted good results for Q4 with total income rising to Rs.656 crores against Rs.494 crores in the corresponding quarter of the previous year. PAT for the quarter is at Rs.80.11 crores against Rs.64.50 crores, resulting in an EPS of Rs.2.70 for Q4, against Rs.2.18 of the corresponding quarter of the previous year.
Share touched its 52 week low of Rs.41, on 9th March 09, when all the private sector banking stocks took a beating. Since then, it has been going up and now ruling at Rs.77, which discounts its historic earnings by less than 8 times. It is certain to see growth from bank, even in FY 10 and an EPS of Rs.12 is most likely, which discounts the current price by about 6.50 times. Those who have 6 months view can expect the share price to move in three digits.
Price behaviour of this stock reminds old price movement pattern of HDFC Bank, about 12 years back, which has now become a private sector giant. This Bank also has all such ingredients to grow big in the long run. thanks

SATYAM Bidding process News Satyam Share price

SATYAM STAKE SALE Bidding process will be received by 10 a.m. on 13th April and would be opened on that day itself. Since market is closed on 14th April,
Who are final bidders for Satyam?
As of date, there are 4 serious bidders in the fray and they are L&T, Tech Mahindra, Cognizant Technologies and P E Firm W L Ross.
Earlier, iGate, Hinduja Group and B K Modi controlled Spice Group opted out of the race, though, Spice Group maintains that it could re-enter the bidding, if its conditions for an open auction and transparent process are met.
There has been speculation that IBM has pulled out of the race, on fears of 13 US Class Action Suits, filed against Satyam in courts by ADR holders.

What will be the expected Satyam Share price after bidding?
Satyam is owning close to 75 lakh Sq.Feet of constructed area across the globe.
The present value of all these real estates is pegged at close to Rs. 4,000 crores.
prospects of recovering funds of Satyam, having diverted to Maytas. valuation of Rs.60- Rs.72 per share. Also, if two top acquirers are in a 10% band, open bidding can take it to upper range of Rs. 72.

Suggestion to the Satyam Stock investors.
Going with current trends bids are likely to be aggressive and share price is likely to react upward. In this situation, if one remains invested upto 15th April in the stock would stand to gain.

Bajaj Holdings Debt Free Stock To Invest in

Yesterday, the stock has gained 5.54% and ended the day at its high at Rs.71.40. And this gain is in a market which saw a sell off and it punished even companies which had posted good results.
The company has a net sales of Rs.71 lakhs and on this sales, it continues to have a staggering employee cost of Rs.3.28 crore. It posted an other income of Rs.2.17 crore. In Q2FY09, it posted its best ever PAT of Rs.12.98 crore and this was mainly on account of the interest received on Income-Tax refunds. This was at nil for Q3FY09. Infact it plans to make provision for tax and deferred tax only in Q4. Yet, its net loss for the current third quarter was at Rs.1.10 crore.
There has been talk of Blackstone wanting to buy out the 27% stake held by Western Maharashtra Development Corporation (WMDC) but that has apparently not happened. So why does this stock such a high discounting on the bourses despite the dismal performance?
Another big positive for the company is that it is totally debt-free.
So financially, the company is breaking no records but surely, thanks to its holdings, the valuation goes up tremendously. thanks

HOUSE OF PEARL FASHION Stay Away For Now

House of Pearl Fashions (HOPF) is a ready-to-wear apparel company operating in three distinct business streams: manufacturing, marketing and distribution, and sourcing of garments. Basically, the company is good but right now, the investor perception for the entire textile sector, be it ready made or any apparel company, there are no willing buyers. This can be seen from the listless way in which the stock has been moving in the narrow range of Rs.35-45 since past few days.
This had begun to show in the bottomline of the company and it has got further accentuated during the third quarter performance, For the period ended 31st Dec 2008, the company's net sales were at Rs 11 crore versus Rs 4.34 crore in Q3FY08. Its net profit was at Rs 84 lakh versus Rs 6.5 crore. The company, in its Notes to Accounts has stated that profitability for the quarter was adversely impacted due to due to new ventures which are at the gestation period. The company has not provided for MTM forex losses which it will do so at the end of the year. Over and above all this, the global slowdown.
The stock touched a new low at 36 on 5th March 2009 but it recovered a bit on news that its subsidiary in Bangladesh is in the process of restructuring its business.
No major news are expected in this stock. Best to avoid this out-of-fashion stock. thanks

Assam Company A Penny Trading Stock

Assam Company is in the business of cultivation, manufacture and sale of tea. It is also engaged in the business of oil and gas exploration. The stock, on the bourses is considered mainly as a low priced speculative stock, allowing the investors to trade in a stock which is quoted even below its face value of Rs.10 per share. Currently quoted at levels of Rs.6, it is unbelievable that during the boom time, it had managed to touch a new high at Rs.40.
Its MTM forex loss for the year stood at Rs.45.33 crore, arising on account of outstanding FCCB Loan of US$ 44.70 million.

The seasonal cycle indicates that the fourth quarter is usually its best but this time, it posted a net loss during the fourth quarter. A purely “penny” trading stock and that too in the range of Rs.3-5.thanks

ARIES AGRO Stock Think After Q4 Results

Invest in the ARIES AGRO Stock only after the Q4 results are announced. Check out Why. Aries Agro declared (disapponting) its consolidated financial performance for the third quarter ended 31st Dec 2008. Net sales for the quarter rose 7.33% but EBIDTA fell 69% at Rs.2.70 crore and net profit was down at a paltry Rs.53 lakhs, down 89%. Tax provision was down and that helped the company stay in the black.
The company has explained that the reduction in profit was due to the unprecedented fall in the prices of key raw material. The stock of raw material has been valued at market value wherever the same is lower than cost as required by relevant accounting standard.
The company is into manufacturing of micronutrients and other nutritional products for plants at Mumbai, Hyderabad, Bangalore and Kolkata. Aries Agro had gone public in December 2007 to raise funds to set up new units at Ahmedabad, Lucknow, Medak and a new unit in Maharashtra. Its unit at Medak has gone on stream and recently it set up micro-nutrient manufacturing unit at Lucknow. The fourth unit planned in Maharashtra is to be implemented by end of June 2009. This is expected to take the aggregate capacity to 100,800 MT.
It had issued shares at Rs.130. On 5th March 09’, it touched a new low atRs.24.50 and continues to languish at these levels. One can take a call on investing in the stock only after the Q4 results are announced. thanks

Castrol Stock Can Go Up With Launch of The Nano

2008 marked the presence of Castrol as a brand in India for 100 years. For a company which depends mainly on the auto sector, one would have expected that the company, given the poor state of the auto sector would have impacted margins of Castrol. The first half of the current year helped the company bear the impact of the slowdown in the second half, especially in the fourth quarter.
For the year ended 31st Dec 2008, its net sales for the year were up 17% at Rs.2216.80 crore. EBITDA was up 21% at Rs.441.60 crore. The company has maintained its margins almost at the same levels. OPM for year was at 19.92% as against 19.30% in previous year. This a good increase, given the 205 increase it had to face on cost of raw materials and marginal drop in volume sales too. The company ended the year with a net profit of Rs.262.30 crore, up by 20%. NPM was down at 8.71% from 10.68% in previous year.
The one very positive factor in favour of the company is that it has an exclusive tie-up with Tata Motors for its passenger and commercial vehicles, and will be an original equipment (OE) supplier and after-sales services provider to the Nano. It is also working on making a specialised low-cost fuel-efficient lubricant for the Nano and this is an exclusive lubricant. Very much under the wraps, this lubricant is expected to reduce emissions and ensure higher engine longevity in a competitive business environment.
The response to Nano and the new lubricant would, to a large extent decide the coming first quarter of FY10. With small and low cost cars being the norm, once this exclusivity agreement is over, with Ford and Bajaj also planning similar cars, maybe this would be its new milch cow. The stock is sure to see some spurt in the run up to the launch of the Nano in the coming days. thanks

SEAMEC Stock Amongst the Major Gainers

Seamec Ltd with four vessels, provides offshore support to petroleum exploration and production companies, in India and abroad.
The company managed to finally turnaround in the fourth quarter ended 31st Dec 2008. It reported net profit of Rs 54.57 crore as against net loss of Rs 15.88 crore in Q407. Sales rose by a whopping 368.84% to Rs.104.41 crore. For the full year, net profit rose 27.25% to Rs 47.12 crore in the year ended December 2008 as against Rs.37.03 crore during the previous year ended December 2007.
The positive about Seamec is that it has a small fleet of just four vessels and hence deployment is easier. In 2009, as against last year, all the four vessels have been hired as of now. The company expects no dry docks for the year, and there are no cancellations as of now. 7.5% growth in topline in FY09 expected.

The stock was amongst the major gainers of the day, and has been so since the day the results were announced. It was up over 20% yesterday at Rs.57.30. Thanks

TCS Q3 Results 2008

tcs, tcs q3 results 2008, tcs q3 results 2009, tcs q3, infosys q3 results tcs q3 results; Tata Consultancy Services Ltd (TCS) has informed that a meeting of the Board of Directors of the Company will be held on January 16, 2008, to take on record the auditedresults of the Company for the quarter ended December 31, 2007 (Q3) and to consider declaration of a Third Interim Dividend to the shareholders.

Further the Company has informed that, January 24, 2008 has been fixed as the Record Date for the purpose of payment of Third Interim Dividend, if declared. Tata Consultancy Services Q3 profit up 1.6% at Rs 1,352 crore.
INDIA'S biggest software services exporter TCS reported on Thursday that its third-quarter net profit rose by a lower-than-expected 1.57 per cent from a year earlier, hit by the global economic slowdown.

Nelco Goes With Tata Power

The financial performance of Nelco continues to deteriorate. If its net loss for the first quarter ended 30th June 2008 was at Rs.4.89 crore, t has now gone up in the second quarter ended 30th Sep 2008 to Rs.11.35 crore. This has been like a douche of cold water. From a trailblazing performance and turnaround it reported in Q4FY08, this slipping back into consistent losses disappointed the markets considerably. Yet, its stock price managed to bounce back from the lower levels and is now steady at quoted at Rs.38, indicating that despite the losses, maybe the fact that it comes from the stables of Tata and also that it has a lot of fancy in the market, helped in holding up the share price. And this fancy has been built up on expectations of the restructuring, which is keeping the stock price stable.



For Q2 ended 30/09/08, its net sales rose 49% to Rs 28.59 crore, while QoQ its topline rose 49%. It then went on to report a net loss of Rs 11.35 crore in the current Q2. For Q2FY08, it had reported a net profit of Rs.1.96 crore.



The biggest orders for the company comes from the Ministry of Defence (MoD) and the past trend indicates that the first three quarters of the company are always subdued, the orders from MoD fructifies only in Q4.



The reason why investors have still stuck on to Nelco, despite the losses is due to expectations of a restructuring which would turn around the fortunes of the company. Tata Power is the main promoter of Nelco, it has a 48.64% stake in the company. Tata Power’s Strategic Electronic Division (SED) has an order booking in excess of Rs.200 crore with status of a Prime Contractor with MoD. There has been news doing the rounds for a long time that this SED would be transferred to Nelco as the nature of its business fits in more with Nelco than with Tata Power. Neclo is also on the approved list of MoD. And hence transfer of this SED to Nelco should not pose any problems. Once this restructuring happens, the financial performance of Nelco
would vastly improve.
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BHARAT FORGE Future looks Brighter

The stock is near at its low of Rs.78 and the reason for this is not far. India’s largest auto component manufacturer is sure to feel the pinch of the slowdown in the auto sector- in India and globally. When auto companies have cut down production, surely there is no way in which Bharat Forge could have remained unaffected.

The company stated that it is planning to cut down production, mainly in Europe where it earns a major chunk of its revenue, as demand has gone down. It also plans to hasten its diversification into high growth areas, including infrastructure and power, to overcome the cyclical nature of auto business. Bharat Forge has three plants in Germany and one each in Sweden, Scotland and the US. It also has two plants in China.

This apart, Bharat Forge’s primary customers in India include Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, Bajaj Auto among others. And with all of them cutting production, the going looks tough for Bharat Forge too.

Financially, the company has been showing strains but its more the MTM forex loss which has hastened the fall in the margins. For the second quarter ended 30th September 2008, its total revenue increased 28% but after that the costs have taken its toll. EBIDTA was down on a YoY from 18.2% to 15.2%. Then the company posted a mammoth forex loss of Rs.87.50 crore and this pushed down the PAT, which for the quarter was down at a meager Rs.4.10 crore from Rs.79.10 crore in Q2FY08.

Currently 80% of its revenue comes from the auto sector and taking lessons from this slowdown, it has decided to turn this mix from 80% to 60% by 2012 and to a meager 25% by 2015. The company recently signed a joint venture agreement with power system manufacturer Alstom to make supercritical power equipment. But till then, atleast in the coming few months, FY09 and first half of FY10 looks grim. Thanks

HIMATSINGKA SEIDE results analysis

The market is yet to get over the poor performance it posted for the first quarter of the current year. It had justified the drop in performance by stating that it had posted the loss on account of the his loss was mainly on account of the new bed line manufacturing facility, which was commissioned in October 2007 at Hassan Special Economic Zone, Karnataka and had yet to fully integrated into the company. Its forex loss also added on to the loss.

Well, the story continues onto the second quarter too. Consolidated revenues for the quarter ended September 30th 2008 stood at Rs.261.27 crores as against Rs.259.14 crores during the previous year. Net loss for the quarter stood at Rs.20.50 crores vs net profit of Rs. 10.94 crores during the previous year. The performance has been impacted by foreign exchange fluctuations amounting to Rs.25.59 crores during the quarter. Also the exceptional items included a write back of provision amounting to Rs.1.94 crores on a mark to market provision for a Foreign Exchange Derivative contract.

What is gratifying to note is that the company’s bed linen facility has turned in a positive EBITDA performance of Rs.5.30 crores in the quarter as against an EBITDA loss of Rs.7.00 crores in the previous quarter. The capacity utilization for the quarter stood at 60.50% capacity.

The entire focus of the company, in FY09 is on stabilising the greenfield facility at Hassan, and continue to explore growth opportunities in emerging markets in retail and distribution. The investors have virtually abandoned the stock which continues to hover near its 52-week low of Rs.23.90. Given the losses and now the dim future prospects of the textile industry, the stock is not expected to do well in the immediate future.
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