Thursday, October 3, 2013

STAY TUNED

Dear followers,
Stay Tuned.....Big investment and trading ideas to be announced this weekend

Thursday, September 5, 2013

Trap Ahead

Dear traders,
Dont get over excited by seeing the past three or two days nifty movement. I feel this is kind of a trap bcoz India's Fundamentals like rupee depreciation,Current Account Deficit,Inflation have not been solved yet.As Raghuram Rajan became RBI governor Market expecting some soft corner measures from him. That is why nifty seen a dramatic U-turn of 300 points.So I request not to  put your money in this mkt with intention of making quick returns.For me its a time for acquiring and buying on dips good quality large caps for next two or three years prespective

After this week I will be mentioning some names associated with banking licence and few other good quality stocks

                                                                   THANK YOU

Wednesday, July 31, 2013

Dont Invest In MCX and FT shares As of Now


National Spot Exchange (NSEL) has suspended trading of all contracts, other than e-Series and deferred the settlement, sparking fears of cash crunch and default of payment in the Financial Technology-promoted commodity bourse. The exchange has blamed the government for the structural changes it has instructed a few weeks back for creating market disequilibrium. 

While NSEL officials were unavailable for comments, brokers said that the exchange has stopped payouts on Wednesday due to financial crisis, which could impact operations of many of the brokers who are into commodity trading on Thursday. 

"National Spot Exchange (NSEL) has suspended trading of contracts, other than e-Series contracts till further notice. It has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days," NSEL said in a late evening press release on Wednesday. 
Today Financial Technology share hit a year low at 307 from previous close of 540.  MCX also tanked to 15% from yesterdays close of 638 to 536.So better avoid investments at this point until we get a clear picture

Wednesday, July 17, 2013

Simple Request

Dear fellow traders,
Pls don't take leverage on trading and kindly don't trade with borrowed money as market is much volatile and going through a weak sentiment.Better to buy with a long only view.

Wednesday, June 19, 2013

Why Nifty Tanked 130 Points today

  1. Overnight interest rates in the U.S. have been near zero since December 2008 when the Fed initiated its bond buying programme. As a result of this ultra-low interest rate regime and abundant liquidity, money has flown out from the U.S. to emerging countries like India, where interest rates are comparatively higher. Foreign institutional investors (FIIs) have pumped almost $14 billion into India so far this year and $22.2 billion last year.
  2. The Fed is now contemplating to reverse its policy because the U.S. economy seems to be coming back on tracks. Any tapering of bond-buying by the Fed could mean interest rates in the U.S. could start rising and money will flow back to government debt bonds in the U.S.
  3. Fearing a reversal in the Fed policy, FIIs have turned sellers. FIIs have sold equities totalling over Rs. 4,000 crore over the last seven sessions. FIIs have sold Indian debt totalling $4.7 billion in 18 consecutive sessions.
  4. A reversal of portfolio flows results in falling equity prices. Since May 22, the BSE Sensex is down nearly 6 per cent, while the Nifty has broken the 5,700 mark.
  5. The withdrawal of funds has hit the rupee hardest because India runs a large current account deficit (the difference between inflows and outflows). Conversely, a weak rupee makes investment in Indian stocks unattractive.
  6. Corporates with unhedged forex exposure could suffer increased losses as the rupee inches lower. This will further weaken investor sentiments.
  7. Outflows from equity and debt markets raise concerns about financing of the current account deficit. An estimated $90 billion is required to fund the gap in India's balance of payments (export minus imports) in the current financial year.
  8. Asset price volatility and a slowdown in capital inflows would hurt investment, as uncertainty further delays a revival of the capex cycle, global investment bank Nomura says.
  9. The Reserve Bank of India, which has warned of upward risks to inflation on account of the rupee weakness, may be forced to hold on to its rates. This will further hurt stock markets. All this would delay India's GDP growth, which hit a decade low in the last fiscal.
  10. The only positive from the Fed's reversal will be a fall in commodity prices, including gold, which will also help bring down high current account deficit.

Thursday, May 30, 2013

Adding Selected Realty Shares In Portfolio

After booking profit in TGBL and Cairn India now I am using my cash reserve in portfolio to buy selected fundamentally strong realty stocks at attractive valuations.Already have Rs.84344in portfolio as reserve and 5 stocks in holdings.Initially started portfolio with Rs.100000.
Now adding DLF(203),JP associates(66) and Sobha Developers(390) and Oberoi Realty(235) all with equal weightage of 10% in portfolio worth Rs.40375 purchase.So my cash reserve will be reduced to Rs.43969.This is biggest addition to my trading portfolio in recent times
I expect ahead of upcoming monetary policy by RBI on june good realty shares will continue uptrend. Most probably this time there will be a cut in CRR and Repo too.So this is right time to pick trading bets


SCRIPBUY RATEBUY QTYSECTORWEIGHTAGECMPCURRENT VALUE
STRIDES ARCOLAB8006PHARMA5%8875322
BAJAJ FINSERV8906NBFC5%6674002
JAI CORP85117REALTY10%607020
DCB50200BANKING10%459000
RELCAPITAL40025NBFC10%3428550
DLF20350REALTY10%20310150
JP ASSOCIATES66150REALTY10%669900
SOBHA39025REALTY10%3909750
OBEROI23545REALTY10%23510575
HOLDINGS74269
RESERVE43969
PORTFOLIO118238

Thursday, May 16, 2013

Buy JM Financials For Longterm


JM Financial is an integrated financial services group, offering a wide range of services to a significant clientele that includes corporations, financial institutions, high net-worth individuals and retail investors.

The Group has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, NBFC (Non Banking Finance Company) activities, private equity and asset reconstruction. While each of these businesses is independent in itself, they share the Group’s belief of trust being the most important factor for the organisation. The values of integrity, teamwork, innovation, performance and partnership shape the corporate vision and drive it to its purpose. 


Former Citigroup Chief Executive Vikram Pandit is buying a stake in financial services company JM Financial Ltd, JM Financial said in a statement on Thursday.

Pandit, who resigned from Citi last October, will also become non-executive chairman of JM Financial's banking arm if it succeeds in getting a banking license, the company said.

India is in the process of issuing new bank licences for the first time since 2004, and numerous companies are expected to apply. Pandit will have the right to buy shares in the proposed bank.

JM Financial said it would expand its lending and financing businesses by issuing $100 million in capital to funds raised and managed by a firm led by Pandit.

JM Financial, one of India's largest domestic financial firms, also said it would set up a fund jointly with Pandit's firm to buy distressed assets. The fund is targeting an initial capitalisation of $100 million.

Pandit said he had known JM Financial for more than two decades. "Given the opportunity, JM Financial can provide the banking and financial services that the country needs," he said in JM Financial's statement.

Pandit and his business partner, Hari Aiyer, will buy a 3 percent equity stake in the financial services company through an issue of warrants, the Indian company said. JM Financial has a market capitalisation of Rs.2000 crore

Currently JM Financial is trading at Rs.23 with PE ratio of approx 35.In regards to Vikram Pandit stake buy I assign a long term bullish view on the company with a target of 50 plus

Wednesday, May 15, 2013

ADD HEXAWARE IN MODEL PORTFOLIO


Add Hexaware in Core Portfolio
Hexaware is Indian mid sized IT company with a approx market cap of Rs.2500 crores.They have expertise in Enterprise solution,Infrastructure Management Services and exposure to Banking and Financial Service,Asset Management and Capital Market,Insurance Service,Healthcare and Life Science etc

The promoters currently holds 32% stakes and FII holds nearly 42% stakes in the company as per January-March quarter.More over Hexaware is Zero debt company.


Hexawares  consolidated income rose by 16 per cent to Rs 507.68 crore in the January-March quarter of 2013, from Rs 438.29 crore in the same quarter of 2012.The global headcount was 8,670 by the end of March 2013.
For the entire 2012 — the firm follows January-December fiscal — Hexaware had a net profit of Rs 327.64 crore, and revenue of Rs 1,948.17 crore.
Hexaware Technologies, a leading player in IT, BPO and consulting services  announced that it has secured a large contract worth potentially $177 million over a five-year term.
Hexaware has been associated with this leading U.S.-headquartered multinational company for several years. Through this contract, the company has a potential $100 million worth incremental business while extending existing business worth another $77 million over the course of the five year agreement. While it is an existing customer for Hexaware, this client also is a leading business process outsourcing client for Caliber Point Business Solutions, a 100 per cent wholly owned subsidiary of Hexaware.

At  current rate of Rs.80 the stock is trading at PE ratio of 8 with a fair valuation.So I initiate a buy call on Hexaware with a target of 120-130 range in next one year

Wednesday, May 1, 2013

Booking Profit in Cairn and Tata Global


My recent buying in Trading portfolio is doing good now.Bought 35 Cairn @ 290 in 5/3/2013 and 80 shares of TGBL @ 130.Now selling both scrips at 310 and 150 respectively.So just booking Rs.700 in Cairn and Rs.1600 in TGBL as market is around 6000
Now I have 10850+12000 and old cash reserve of 61484.So latest cash reserve is Rs.84334
For old details of trading portfolio check here http://keralatraders.blogspot.in/2013/03/holdings-in-trading-portfolio.html

SCRIPBUY RATEBUY QTYSECTORWEIGHTAGECMPCURRENT VALUE
STRIDES ARCOLAB8006PHARMA5%8655190
BAJAJ FINSERV8906NBFC5%7704620
JAI CORP85117REALTY10%657605
DCB50200BANKING10%479400
RELCAPITAL40025NBFC10%3659125
     TOTAL VALUE35940
     RESERVE84334
     TOTAL 120274

Friday, April 26, 2013

Latest Portfolio of Ace Investor Rakesh Jhunjunwala

The top three picks remained as Titan Industries with approx value of Rs.1573 crores,Lupin with Rs.640 crores and Crisil with Rs.490 crores as per today's market price. Tata groups fertiliser and chemical company  Rallis India is worth Rs.242 crores in his portfolio
There are some more investments in small caps like adinath exim,alphageo,provogue etc by RJ.It will be updated soon after their Q4 result announcing

Tuesday, April 16, 2013

Why Nifty Rallied Over 100 Points Today?

Today we had a smart move in Indian market despite fall in other Asian markets and European market.Nifty was trading in range between 5555 and 5683 in today's session.
The main reason for rally in market is due to the the fall in Gold Prices and Crude oil.As we all know that India is importing crude oil and gold and it constitutes major part of imports.This is causing huge increase in current account  deficit for our economy.As gold price cooled to a great extend we need to pay less amount for importing gold.Now  one ounce of Gold is trading at 1361 in International market.
Also Brent crude oil is trading below $100.This also gives some relief into India's Current account deficit.
So it is always better to have current account deficit well under control.Now India's current account deficit is around 5.3% of GDP which is at all time high.
Also in upcoming monetary policy on May 3 Rbi may reduce key rates such as crr and repo rate as WPI inflation cooled to 5.96 lowest in 40 months

Monday, April 15, 2013

STAY AWAY FROM GOLD LOAN NBFC AND JEWELLERS



The price of gold fell to its lowest level in more than 18 months amid fears that sales of the precious metal forced on Cyprus by its desperate financial plight would lead to wholesale dumping by hard-pressed countries in the coming months.
At the end of a week dominated by the plight of the troubled island nation, gold slid below US$1,500 an ounce for the first time since July 2011 in anticipation that Cyprus would raise £400 million (HK$4.8 billion) by offloading some of its reserves.
Share prices also fell on the major European bourses after the gathering of EU finance ministers in Dublin made it clear that there would be no increase to the £10 billion earmarked for Cyprus, even though the expected cost of the bailout has been raised by £6 billion to £23 billion.
While the gold sale by Cyprus is itself small, heavily indebted euro-zone nations such as Italy and Portugal could also find themselves under increasing pressure to put their bullion reserves to work.
"If Cyprus can break the gold market, then [there are] many reasons to be worried, with Slovenia, Hungary, Portugal, Spain and Italy in line," Milko Markov, an investment analyst at SK Hart Management, said. "It is a make-or-break moment for gold ... if the market can't handle the reallocation and Cyprus, then there is really a need for a bear market."

Here are my top sells for the week based on gold price crash in world market.If gold is going down from current levels,I request my clients and followers to reduce exposure to this companies or stay away for some months.The current mkt price is given in the bracket
1)Titan Ltd(249)
2)TBZ(215)
3)PC Jewellers(107)
4)Manappuram(20)
5)Muthoot Finance(150)

Investors rush to sell Kerala banks’ stocks



Kerala-based lenders have seen a sharp erosion in the value of their shares in the past fortnight after Saudi Arabia initiated a clampdown on illegal immigrant workers and brought in regulations that stipulated reservation of 10% of jobs for citizens. The new rule, known as Nitaqat, is likely to impact over 300,000 low- and semi-skilled Indian workers, most of whom are from Kerala.
The deadline to implement the law, originally set for late March, was extended by three months but panic has gripped Indian workers in that country. The Kerala government had moved the centre to address the matter.
Any job losses can have ramifications on the flow of non-resident Indian (NRI) deposits and remittance funds to the southern state, routed primarily through Kerala-based lenders such as State Bank of Travancore (SBT), Federal Bank LtdSouth Indian Bank Ltd (SIB) and Dhanlaxmi Bank Ltd.
Stocks of these lenders have been declining since late March when the new labour norms became known.
Most of these banks generate about 10% of their fee income from the remittance business.
SBT managed Rs.31,000 crore of remittances from the Middle East in the fiscal year ended 31 March. “We are yet to ascertain the impact of the new regulations. According to official estimates only 500-600 people have returned from Gulf but the actual number is not known,” said Bhanu Murthy, deputy general manager, NRI services, at SBT.
Analysts and bankers ruled out any major impact on remittance and NRI deposit mobilization by these banks, saying the clampdown will primarily impact the unskilled, illegal immigrants but not regular employees. They attributed the fall in bank shares to a panic reaction by investors.
“There may not be too much of an impact on the remittance-related fee income and NRI deposits as banks typically fulfil the know-your-customer procedures while accepting such depositors,” said Abhishek Kothari, research analyst at Mumbai-based brokerage Violet Arch Securities. According to him, banks don’t accept deposits from the kind of illegal immigrants who may now be forced to come back.
Abhraham Chacko, executive director, Federal Bank, said the fall in stock prices was just a “knee jerk” reaction to the change in the Saudi law.
“It is true that Kerala would be impacted most because they have the largest share of migrant workers but it is also a fact that these workers do not have accounts in Federal Bank alone. Also, the 10% job quota that Saudi is enforcing will impact labour from other countries like Pakistan and Bangladesh, besides India,” Chacko said.
Chacko said about 7% of total remittances to India from the world are through Federal Bank. India was the top receiver of global remittances in 2012, getting $70 billion, ahead of China, which got $66 billion, according to the World Bank.
“About 25% of our deposits come from NRIs but more than 80% of them don’t stay with us —people spend the money. I think even if there are job losses in Saudi, it won’t be big numbers,” Chacko said.
Federal Bank had total deposits of Rs.51,607 crore as of December 2012.
Dhanlaxmi Bank too ruled out any significant impact. “Major part of the remittances are maintenance remittances (money sent for household expenditure). Such remittances contribute a relatively small portion of our deposits,” said P.G. Jayakumar, managing director and chief executive officer of Dhanlaxmi Bank.
In this point I would like to add South Indian Bank at 20-22 levels for target of 30 in next one year.I strongly believe SIB will bounce back from this levels of 23

Thursday, April 11, 2013

Infosys Q4 Dissapointed



Infosys Ltd’s fourth-quarter revenue growth fell short of expectations and its guidance for the current fiscal year came in below the industry average as India’s second-largest software services firm said the economic climate was a cause for concern.
The Infosys stock plunged 18.5% to Rs.2,379 at 9:32 am on Friday, while the benchmark Sensex was down 1.4% to 18,292.67.
The company forecast revenue growth in 2013-14 at 6-10%, less than the 12-14% that the Nasscom industry lobby has forecast for the year, as part of its earnings announcement for the year ended March on Friday. This is the second consecutive year that the company has forecast revenue growth lower than average industry expectations.
Infosys reported fourth-quarter sequential revenue growth in dollar terms at 1.4% compared with expectations of at least 3% growth

Wednesday, April 3, 2013

WAIT AND WATCH FOR MANAPPURAM


Gold is falling day by day.Already Fallen Rs.440 yesterday and today again tanked Rs.200.Currently gold is trading at Rs.21600 for 8 gram
So Traders keep away form gold related NBFC like Manappuram and Muthoot Finance for some days as fall in gold price will adversely effect Manappuram profit margins and biz

Sunday, March 24, 2013

Sell Call on HDIL Saved My Clients


Hope all my clients kept miles away form HDIL......In my earlier research report advised not to buy HDIL at 80 levels as there is more downside seen in HDIL.They have huge debt of Rs.4080 crore in co balance sheet.http://keralatraders.blogspot.in/2013/01/dont-buy-hdil-now.html

See now what happened to HDIL.
Its trading @ 45.
Whooping 50% discount for India's second largest Realty player,Can u believe it???????

Thursday, March 21, 2013

Manappuram Finance: Why the stock is down 31% in 2 days


Manappuram Finance opened higher on Thursday, rising as much as 8 per cent, before slipping in to the red. The stock has fallen 31 per cent over the last two sessions. Manappuram Finance shares were down 1 per cent to Rs. 23.70 as of 10 a.m. on the National Stock Exchange. Muthoot Finance, another gold finance firm, traded 2.5 per cent higher at Rs.179.40 after falling over 10 per cent in the last two sessions.

Gold prices are falling: According to Reserve Bank of India regulation, gold loan companies can lend up to 60 per cent of the value of jewellery.Manappuram offers loans at 75 per cent of the scrap value of jewellery. At 24 per cent per annum interest, the principal and accrued interest will become 93 per cent of the value of jewellery in one year's time. This scenario leads to an incentive for borrowers to default. So, companies are forced to reverse interest income to prevent defaults.

Profit hit: Manappuram Finance revised its January - March guidance from a profit of Rs. 90 crore to a loss of Rs. 50 crore due to interest reversals of Rs. 250 crore. According to Espirito Santo Securities, Manappuram management explained that this has occurred on Rs. 1,500 crore of loans which were disbursed between September 2011 and January 2012 and expected accrued interest of Rs. 500 crore up to March 2013. The management said that there may be further losses if the gold price declines from current levels.


Risk management practices: There is a perception that the gold loan business is secure as the underlying asset is highly liquid and the borrower has emotional attachment to the asset. However, the recent episode highlights that slippages are very high (15 per cent of September-December 2011 disbursements turning bad) and even in a stable gold price scenario the company may incur losses, Espirito Santo says.


Bank of America-Merrill Lynch downgraded Manappuram Finance to "underperform" from "buy", and reduced its target price to Rs. 20 from Rs. 48, citing higher-than-expected under recoveries.

Corporate governance issues:  Espirito Santo says Manappuram management had selectively disclosed the revision in the quantum of interest reversals before making it public. This is the second instance of miscommunication with investors. Management committed similar mistakes during Q3 FY13 results. We downgrade our corporate governance rating to Red from Amber, the brokerage added.


                                   This report is taken form NDTV Profit website


Tuesday, March 19, 2013

RBI cuts repo rate by 25 bps, says room for further easing limited


The Reserve Bank of India (RBI) on Tuesday cut its key lending rate by 25 basis points (bps) in an attempt to prop up growth in the slowing economy, drawing comfort from inflation based on the wholesale price index staying under 7%, but warned that room for further monetary easing was limited.
The apex bank kept the cash reserve ratio (CRR) unchanged in its mid-quarter monetary policy.
The rupee weakened and the BSE’s benchmark Sensex fell on RBI’s warning.
Noting that risks on account of the current account deficit (CAD) remain significant, despite a likely improvement in the fourth quarter, RBI said, “Accordingly, even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited.”

DMK withdraws support from UPA coalition



The Dravida Munnetra Kazhagam (DMK), a key regional ally, pulled out of India’s ruling coalition on Tuesday in protest against the government’s position on a US-backed United Nations resolution on war crimes carried out during Sri Lanka’s civil war.
The DMK is based in the southern state of Tamil Nadu, and has often pressured the Indian government to do more to protect Sri Lanka’s minority Tamil population.
The DMK has 18 seats in the lower of house of Parliament as part of Prime Minister Manmohan Singh’s coalition, which already rules in a minority. Singh’s Congress party can continue to govern with parliamentary support from two other regional parties.

Wednesday, March 13, 2013

SERVICES OFFERED BY KERALA TRADERS



We have the following facilities to offer to the clients:
  • Trading on NSE Capital Segment & Derivative Segment. 
  • Trading on BSE
  • Trading on MCX & NCDEX
  • All the above through single V-SAT/ lease line/
  • CDSL Depository
  • Research / Recommendations through mobile & yahoo mesenger
  • No account Opening/Closing charges in any segments (except stamp charges).
  • No account Opening /Closing charges for Depositories (except stamp charges).
  • No Annual Account maintenance charges in depository.
  • Transaction charges on Depositories to the lowest possible level. (charges on CDSL + basis based on sub broker’s recommendation).
  • Accessibility of holding statement through our back office software as well as through CDSL Easy.
  • Back Office to the clients through FTP / Internet.
  • Internet trading for the clients through different modules. Internet through browser-based application is free to the clients.
  • Margin in NSE Derivatives .
  • Digital contract notes and other statement to clients through e-mail as well as physical.

                         Wish you Happy Investing 

Monday, March 11, 2013

Big bull Jhunjhunwala losing his magic touch


Is Rakesh Jhunjhunwala, India’s most followed stock investor, losing his magic touch? It seems so going by the performance of some of his most recent investments. Jhunjhunwala’s recent market bets from Pipavav Defense and Offshore Engineering (earlier Pipavav Shipyard) to DB Realty, Sterling Holidays and Resorts to A2Z Maintenance (bought from the secondary market immediately after IPO) are either quoting lower or at similar levels since he invested in them about two years ago, an analysis by Financial Chronicle revealed.Jhunjhunwala, popular in market circles as ‘Warren Buffet of India’ for his long-term investment approach, may still have the last laugh after a few years if the stocks zoom as in the case of his other famous investments such as Titan, Crisil, Geojit and others, said stockbrokers.However, for now, RJ’s reputation built over the years is under a serious threat.DB Realty, where he bought 12.50 lakh shares at an average price of Rs 90.21 apiece in October last year, is now trading at Rs 79.75, causing Jhunjhunwala Rs 1.3 crore loss as of Monday. 

Similarly, the big bull is nursing his wounds in Pipavav Defense and Offshore Engineering, owned by SKIL Infrastructure, in which he invested in September 2011. The Rs 81.90 crore investment in Pipavav Defense and Offshore Engineering was made in convertible shares issued at that time for Rs 78 apiece. The conversion, due in 18 months, falls in the coming weeks.

Shares of Pipavav Defense and Offshore closed at Rs 67.10 apiece on Monday, a loss of nearly Rs 11 a share for the billionaire, who was ranked #46 richest Indian by Forbes.Similarly, Jhunjhunwala’s move to garner investor faith by buying over 16 lakh shares in A2Z Maintenance, a company he backed, on the day of the company’s listing on the stock exchanges has backfired. Though the exact price he paid to buy these shares is not known, the stock closed at Rs 333 apiece on the listing day compared with the IPO price of Rs 400.The share hit a new low of Rs 26.40 on Monday, wiping off at least Rs 50 crore from his secondary market investment. 

An email sent to Jhunjhunwala and Utpal Sheth, CEO of Rare Enterprises, the investment firm founded by the former, elicited no response.Vijay Kedia, director of Kedia Securities, who himself models his investments on Jhunjhunwala, says the ups and downs are part and parcel of the market. “We need to understand that the market is supreme,” he said, but added that “Jhunjhunwala is Jhunjhunwala. He is not running a 100-metre or 400-metre race. He is in a marathon. He’ll stay invested for five years or 10 years.”Kedia felt the recent crash in mid-cap stocks dented investor confidence and this may have impacted Jhunjhunwala-owned stocks as well. Perhaps, only the saving grace is that Jhunjhunwala’s investment in Sterling Holidays and Resorts, where he invested at Rs 75 a share in September 2011, has gone up by a paltry Rs 5, or over 6 per cent, over the past 18 months. The stock is trading at Rs 80 a share. The letdown for investors in A2Z Maintenance, which went public in December 2010 showing Jhunjhunwala’s backing as he continued to hold nearly 20 per cent, has forced the postponement of IPOs of several other firms that he backed.During the road shows for A2Z Maintenance, the 52-year-old investor promised that at least six companies that he backed would be listed in the coming years. Some of the unlisted firms that he has invested in include Topsgroup, John Energy, Hungama Digital and Concord Biotech.
                 This article is taken from My digitalfc.com.I express my sincere thanks to this reporter  Rajesh Abraham

Sunday, March 10, 2013

BERGER MAY BUY SHALIMAR PAINTS


BERGER PAINT IS LIKELY TO ACQUIRE SHALIMAR PAINTS......LIKELY TO BE 180/- PER SHARE.......OFFICIAL ANNOUNCEMENT LIKELY AT 3.30pm TODAY

Friday, March 8, 2013

REASON FOR SPURT IN JET AIRWAYS


 Shares in Jet AirwaysBSE 9.93 %extended gains to more than 13 per cent on Friday, after a news channel reported that Abu Dhabi's Etihad Airways may buy a 10-12 per cent stake in the company directly from promoters. 

Etihad may pay as much as Rs 750 ($13.75) a share for the stake, the report said. 

Etihad has been in talks with Jet to buy a 24 per cent stake, government sources said. 

The channel said Etihad may buy the remaining stake by issuing preferential shares. 

I already posted today morning about possible oppen offer by Ehihad for Jet Airways

IF ETIHAD BUYS MORE THAN 24% IN JET THEN AN OPEN OFFER WILL TRIGGER.....
RETAIL SHAREHOLDERS WILL BE BENEFITED.I EXPECT STAKE SALE MAY BE AROUND 700/- PER SHARE AS PER LATEST FINANCIALS OF JET AIRWAYS

         SO I RECOMMEND BUYING JET AIRWAYS AT Rs.510 LEVELS FOR TARGET OF Rs.700

OPEN OFFER IN JET AIRWAYS????????


This is my personnel view on Jet Airways

IF ETIHAD BUYS MORE THAN 24% IN JET THEN
AN OPEN OFFER WILL TRIGGER.....
RETAIL SHAREHOLDERS WILL BE BENEFITED........
STAKE SALE MAY BE AROUND 700/- PER SHARE

SO I RECOMMEND BUYING JET AIRWAYS AT Rs.510 LEVELS FOR TARGET OF Rs.700

Quiz Damaka For My followers and Win Exciting Prices


This is a simple quiz program conducted once in a week.I will ask a question related to stock market on every Friday.
Terms and conditions
1)You can post the answer on blogger comments section only.
2)Last date for posting answer will be Sunday midnight 11.59 am.There after nothing will be entertained 
3)If there are more right answers winner will be decided through lot system.
4)One participant should post only one answer

Here is the question of the week.Go and shoot it and win fabulous prices
I Founded a real hidden gem in Indian IT space....The clues for the company are follows
1)This company remains best play among the mid-sized Indian IT sector
2)This company is fully debt free
3)Have cash surplus of Rs.1.8 billion(Rs.43 per share)
4)Its now trading in between Rs.100 and 110 levels...
I hope this clues are enough for getting right answer.So start posting right answers in comments section

Wednesday, March 6, 2013

Target Met in Infosys(20% profit)

I am happy to announce that my target on Infosys met today on trading hours.I gave a fresh buy call on Infosys at  Rs.2500 just before companies Q3 results.For details of buy recommendation click here.http://keralatraders.blogspot.in/2013/01/infosys-q3-beats-estimates-net-profit.html
I am again posting my ten reasons for Infosys share buy

  1. Infosys net profit at Rs.s.2,369 crore in the December quarter was flat against Rs.s.2,370 crore in the September quarter, but much better than the average estimate of Rs. 2,100 crore in a poll of 16 analysts, according to Thomson Reuters.
  2. Infosys said revenue rose 12 per cent in October-December to Rs.s.10,424 crore from Rs.s.9,300 crore a year earlier. That compares with analyst estimates of Rs.s.9,680 crore.
  3. Dollar revenues for the December quarter stood at $1.91 billion against $1.79 billion in the previous quarter and better than estimates of $1.87 billion.
  4. The biggest positive for the stock was the upward revision announced in the full year dollar sales forecast. Infosys said FY13 revenue forecast is seen at $7.45 billion, which is better than $7.34 billion projected by the management earlier. The new guidance implies 6.5 per cent growth year-on-year and includes Lodestone's revenues.
  5. Earnings per share for the full fiscal are likely to be Rs.s.162.80, a 10.4 per cent jump over the year ago period.
  6. Infosys maintained margins despite higher operating costs. EBIT or operating margins declined to 25.69 per cent against 26.3 per cent in the September quarter, but better than estimates of 25.5 per cent. Margins declined on account of wage hikes.
  7. Infosys managed to post 2 per cent sequential growth in volumes though the biggest surprise was the pick-up in pricing, which rose 3.7 per cent. Utilization rate rose to 70.1 per cent against 69.60 per cent.
  8. Management sounded optimistic: S. D. Shibulal, CEO and managing director of Infosys said the company has done well in this quarter despite an uncertain environment. "We continue to gain confidence from a strong pipeline of large deals. However, the broader economic environment remains difficult. Even so, we remain cautiously optimistic about the January-March quarter", he added.
  9. Analysts said the worst might be over for Infosys. "This is a very credible performance. Infosys has exceeded our estimates at the bottom line by 4-5 per cent and they have done this after 4-5 quarter... so, kudos to the management. The combine of a beat on actual Q3 numbers and upbeat guidance should reflect in our and most brokerage estimates going upwards," Saurabh Mukherjee of Ambit told NDTV Profit.
  10. Brokers were upbeat: Kotak said Infosys had reported an excellent quarter with organic growth beating expectations. Nomura said Q3 revenues were very impressive and organic growth guidance not being cut is positive. Citi said Infosys has showed a substantial beat in Q3.

Now on 7 march Infosys is trading at Rs.3002 levels which means 20% upside form my buy call on January 10th report.Now I wish to book profit in Infoys at this levels.

Tuesday, March 5, 2013

Holdings in Trading Portfolio


Here is my latest portfolio holdings and snapshot of my trading portfolio.I initially started portfolio with Rs.100000 on Aug 2012 and now fund size is around 1.2 lakh.Now I am holding aprox 61000 worth stocks and 61484 as cash surplus in portfolio.I have generated 20% returns so far since

SCRIPBUY RATEQTYSECTORCMPGAIN/LOSSS% CHANGEVALUE
STRIDES ARCO8006PHARMA905630356480
BAJAJ FINSERV8906FINANCIAL SERV815-45025508
JAI CORP85117REALTY60-2925-299945
DCB50200BANKING43-1400-148600
RELCAPITAL40025NBFC380-500-59500
CAIRN29035OIL3003503.510500
TATA GLOBAL13080FMCG1332402.310640
TOTAL VALUE61173
BAL AMOUNT61484

Monday, March 4, 2013

Why NHPC tanked 25%?



NHPC stock fell as much as 25.8% on Monday before recovering marginally. This followed a 10.5% decline on Friday and prompted the management to issue a clarification. “As far as the fundamentals of the company, there is no change which affects the major price movement,” the company said in a stock exchange filing. “In our opinion, there is no issue in the Finance Bill, which has any adverse effect on (the) hydro sector.”
Dealers said the fall in the stock was due to some margin calls being triggered, which had a domino effect. While the budget may not have had an impact, the company’s fundamentals remain weak, though that doesn’t warrant such a steep decline in its stock price.
After listing at Rs.36 a share in 2009, NHPC exceeded that price only once—on 6 January 2010. The main problem dogging the company has been a delay in executing projects. It added no capacity at all in FY10, just 120 megawatts (MW) in FY11 and none at all in FY12. If one went by the projections given in its red herring prospectus, NHPC should have added 3,941MW of capacity by now.
So far this fiscal year, the company has added 275MW of capacity. An investor presentation on its website said it expects to add another 417MW of capacity in this fiscal year and another 680 MW in the next.
However, after that, expect another lull in commissioning for 18 months before capacity additions start in FY17. NHPC has so far spent Rs.19,000 crore on these projects which are at varying levels of completion.Emkay Global Financial Services Ltd said in a report that, “20% book (is) invested in projects that are stuck or facing problems.” In other words, it will take a long time for these projects to be added to NHPC’s gross block and start earning.
The recent capacity additions have also meant that NHPC has reported a rise in generation. But then it has also been facing other problems. Capital costs for the company have increased and the tariff for new projects such as Chutak in Jammu and Kashmir is estimated at Rs.8 per unit, far higher than the average electricity rates around the country.
NHPC is also seeing receivables piling up, another threat to earnings. According to Emkay, total receivables at the end of December 2012 stand at Rs.1,999 crore, about one-third of its FY12 sales. Of this, receivables which are more than 60 days old constitute Rs.1,258 crore.
While these limit the upside for the stock, note that NHPC now trades at 0.77 times estimated book value for FY14, much below the consensus 1.1 times call by brokerages.
So I would like to Given fresh buy call on NHPC at this fair valuation.But kindly note that this stock is not suitable for short term traders.Only longterm investors with 2 year holding period can accumulate stock
                   I express my sincere thanks to Livemint website for this article