Indian Steel Companies Report – ENAM

Taking into scenario the Asian factors, ENAM after conducting an exclusive study in China, has rated the leading Indian Steel manufacturers – SAIL, Tata Steel, Jindal Steel & Power and JSW Steel Ltd.

Steel Authority of India Ltd:
Sizable presence and domestic leadership. Captive 2.9 bn tonnes iron ore reserves, scalable and integrated. Capacity: To rise from 12mn to 24+mn tonnes in FY11 through internal growth and acquisitions. Cost competitiveness: Captive resources (iron ore, coal) and modernization. The company enjoys attractive valuations, (more…)

PRU-ICICI Real Estate Securities Fund in India

We have been informed that Pru ICICI will launch the country’s first real estate fund. We are not too happy with the fund’s objective, really especially, 65% Real Estate Debt + 35% Real Estate Stocks. Here is the presentation that we have got. [PDF]

Why we are recommending a AVOID on this new fund offer?
The fund will take exposure to debt and it can vary between 50&-70%. Kotak, HDFC and other who raised money abroad for Real Estate have 5 to 10 years lock-in but they are investing directly in property and real estate stocks. That means they are acting as REITS [Real Estate Investment Trusts]. However, ICICI is investing 50% in debt and you have seen the lackluster performance of Realty Stocks lately, which is why we are recommending a AVOID.

We always recommend to invest in well diversified funds and over long period of time, they beat every other sector specific fund.

For example, until April2007, IT specific funds were showing YoY returns of 50%+ while diversified funds were showing 40%+. Today IT funds are showing 17% returns YoY while diversified funds are still showing 38%.

Panoramic Universal acquires 51% stake in Hi-Flyers Travel

Panoramic Universal has made its foray into travel arid tourism industry with acquisition of 51% stake in Hi-Flyers Travel Services, which is catering to premium corporate travellers like Sharekhan, Akruti Foundation, SSKI, Jam Irrigation, Supreme Industries, Boroughs India etc.

Hi-Flyers Travel Services is a full service travel outfit with a successful track record of a decade. It caters to international and domestic ticketing, package tours to popular destinations worldwide, forex services and other allied services like visa approvals, passport assistance etc.

Parle Software to export software products

Parle Software is engaged in exports of software products and software development services to countries like USA, U.K., & Far East country like Hong Kong & for effective overseas marketing, the company had set-up its own overseas marketing office in U.K. & representative marketing offices in U.S.A. & Hong Kong. These overseas marketing offices will help the company to increase its market shares in these countries and provide a platform for the effective marketing of its software products.

Long Term BUY – Patel Engineering

Indiainfoline is recommending a BUY on Patel Engineering Ltd [PEL]. The company enjoys 22% market-share in Hydro Power construction in India. The company has an order book of Rs 5,400 crore. Though majority of the power sector investments in India will be Nuclear fuel based, hydro power will also see some investments and their are only handful of players in the segment.

PEL owns a land bank of 1200 acres in Hyderabad, Mumbai, Bangalore, (more…)

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