October, 2010 | Dalal Street

Avoid Prestige Estates Projects

October 11, 2010October 11, 20102 min read

Prestige is one of the leading real estate development companies in Bangalore[75%] and Chennai [15%] with portfolio ranging from residential, commercial, hospitality and retail segments of the real estate industry.

The Prestige Group plans to issue fresh shares to the tune of 6.6–7 crore and raise Rs 1,200 Cr. Now without wasting each others time lets directly come to understand if it is worth investment.

Management – All in the Razack family [ So are many Indian Businesses, but we disapprove]

Quality of Work and Consumer Demand – Was of Very good Quality until (more…)

Economy, Markets and Macro Views

Rural Demand to Jump – Agflation to Moderate

October 4, 20101 min read

Analysts across the street are hiking Khariff farm income growth by 20-25% with a better-than-expected harvest likely in October-November. Summer farm income growth has already likely doubled to 18.9% from 09 on agflation.

Rains 102% of normal – have raised yields to water a crop that is far larger than what the increase in sowing suggested. The biggest gain should accrue to cotton farmers who should enjoy both a 39.6% larger crop as well as higher prices. Pulses farmers will see a (more…)

Economy, Markets and Macro Views

India Current account deficit widens – BoP Updates

October 1, 20102 min read

Current account deficit continued its widening trend in Q1FY11, reaching USD 13.7 bn against ~USD 13 bn in the previous quarter. It was ~3.7% of GDP, which is on the higher side, historically. Among broad components of the current account, merchandise balance deteriorated, while invisibles improved compared with the previous quarter.

The monthly incoming trade data suggest that trade deficit continues to widen in Q2FY11 and, therefore, until invisibles improve markedly, current account deficit could widen even further in Q2FY11. On the currency side as well, while falling domestic inflation (more…)

India IPO Reviews and Updates

Returns from PSU Equity Offerings

October 1, 20102 min read

Analyzing the Performance of PSU stocks on listing (28 companies) , the returns look reasonably good. 17 Companies have offered >10% returns, 10 companies >20% returns and only 2 companies have seen erosion between 0-8%.

It is worth noticing, that although returns have not been exorbitant, a majority of offering have provided over 10% listing gains (17 out of 26 companies) with 10 companies managing over 20% listing gains which are not mediocre by any means.

It is important to notice that of the 3 companies with negative returns as on today; all of the 3 companies have tapped the market (more…)

Equity Research

Updated Portfolio of Rakesh Jhunjhunwala

October 1, 20101 min read

As on Sept-20-2010, here is the portfolio of Jhunjhunwala Rakesh and Rekha of RARE Enterprises. Investors should know that he holds the Stocks ir-respective of short-term blips – for example – Punj Lloyd. In our study we found that he holds the stock for more than 5 years and that is how he makes a killing. However, apart from directly owning the company’s stock he is a Trader as well making money for members of his syndicate. So if you have to follow him, then Patience is the keyword. Anyway, here is his portfolio, (more…)

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