November, 2006 | Dalal Street

Mutual Funds Review

Subscribe to Reliance Long Term Equity Fund – NFO

November 21, 20061 min read

Reliance is coming with a new fund offering of Reliance Long Term Equity Fund – Closed ended for 36 months and then opens for regular sale and re-purchase. The focus of Reliance Long Term Equity Fund is to invest in Midcaps and Smallcaps of the BSE-Midcap and Smallcap indices to generate wealth. According to Lippers, Reliance is one of the top performing fund houses in the world, DalalStreet.Biz recommends a Invest.

Various Reliance Mutual Fund Schemes and Objectives:

Reliance Vision Fund – Large Caps

Reliance Growth Fund – Mid Caps and Large Caps

Reliance Equity Opportunities Fund – No Bias on any Cap or Sector

Reliance Equity Fund – Top 100 stocks by Market Capitalization and those present in the F&O Segment

Reliance Long Term Equity Fund – Small and Mid Cap Stocks [NFO, Subscribe]

India IPO Reviews and Updates

Sobha Developers Ltd IPO – Business Line Critics

November 19, 20062 min read

DalalStreet.Biz initiated its coverage on Sobha developers IPO last week. Sobha Developers Review – 1 is here and Sobha Developers Land Bank Details is available here.

Vidya Bala, writer for Business Line newsppare writes that, Sobha’s offer price at Rs 550 or Rs 640 is at a P/E multiple of 19 or 22 times its expected earnings for Fy08 [Not FY07]. Why isn’t Vidya writing about FY07 ? Why isn’t Vidya clearly stating the figures ? Oho! their can be some Page3 scenes going in the background 🙂 . Lets analyze this. Offer price of Rs 640 at 22 times P/E translates into earnings per share of Rs 29 for FY08. Which translates into a Net profit of Rs 211 crores for FY08 on an equity of 7.29 crore shares of face value Rs10 each.

Sobha’s profits for first half of FY07 (sept-30th 2006) is Rs 53 crores. It has recorded a 137% growth over first half of last year. So if we assume Sobha grows at 100% for full year its net profits for FY07 will be 180 crores. So in FY08 will Sobha Developers just grow by mere 17.20% ? [Net Profit of 211 crores as arrived above.] When and where will growth slowdown ? I hope you now understand what is the problem with Business Line Analysis.

Business Line also writes that investors with HIGH RISK APPETITE can subscribe to the issue. Your thoughts and comments are appreciated. Mail them to nascentnet AT Yahoo Dot Com.

Tags:Sobha Developers IPO, IPO India , Indian Investor, Real Estate India

Economy, Markets and Macro Views

AC Refrigeration Business to ride retail boom in India

November 19, 20061 min read

Who will ride the Retail Boom ? Reliance, Pantaloon or Bharti ? We don’t know.

During the 18th century gold mine rush in California, the companies that made money were the allied tools suppliers. Similarly, during the retail boom in India, we don’t know if Reliance or Pantaloon will make money or not, but we know Blue Star Limited and Carrier Aircon Ltd are all set to cash-in on the refrigeration needs of these companies. Refrigeration for cold storage units, retail outlets and for their logistics vehicles.

Both Blue Star and Carrier Aircon are in talks with Reliance Retail Ltd and Bharti. So keep an eye on these stocks.

Tags: Invest India, Dalal Street, Retail India, Invest India

Equity Research

BUY Tech Mahindra – Merill Lynch

November 17, 20061 min read

Long after DalalStreet.Biz initiated coverage on Tech Mahindra, Merill Lynch has now initiated a covergae with a BUY rating and a target price of Rs1280. Our price target was Rs 1,250.

Brokers Recommendations:
KPIT Cummins – Outperformer from Prabhudas Lilladhar

Tags: Dalal Street, Tech Mahindra, Invest India, Money India

Mutual Funds Review

Reliance Growth and Reliance Vision Fund Top Performers

November 17, 20061 min read

Global Mutual Fund Rating agency, Lippers have rated Reliance Growth and Reliance Vision fund amongst the top 20 funds for record performance in the past 5 years in the world.

Lipper data suggests, Reliance Growth Fund has given compounded returns of 71.39 per cent per annum, while Reliance Vision Fund has given return of 68.16 per cent over the past five years.

However, none of the HDFC funds figured in the list. If you want to invest in Mutual funds, then take the SIP route.

India IPO Reviews and Updates

Info Edge India – Basis of allotment

November 16, 20061 min read

The basis of allotment for Info Edge India IPO Limited is as mentioned below. This is for Retail Individual Investors.

Info Edge (India)
Oversubscription Figures:
HNI : 61.46106 times
RETAIL : 11.10637 times
Basis of allocation under Retail:
No of Shares Applied	No. of Shares Allotted	Ratio
No of Shares Applied	No. of Shares Allotted	Ratio
20	20	9:100
40	20	9:50
60	20	27:100
80	20	9:25
100	20	9:20
120	20	27:50
140	20	63:100
160	20	18:25
180	20	81:100
200	20	9:10
220	20	FIRM
240	22	FIRM
260	24	FIRM
280	25	FIRM
300	27	FIRM

You can check if you are allotted or not on Intime Spectrum registry here.

Tags:IPO India, IPO allotment , Info Edge IPO Allotment, Invest India

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