Indian Equity Research and Investment Strategy
India first pure Internet Play, Info edge India Ltd – NAUKRI listed at 50% premium to its offer price. The stock is currently trading at Rs580. We advise to BOOK Profits for investors who have been allotted in the IPO as valuations look overstretched at these rates and don’t justify its earnings potential.
Tags: Dalal Street, Naukri, Info Edge,IPO India
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]
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
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
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
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.