Category: Economy, Markets and Macro Views

In early August DalalStreet.Biz had put a BUY recommendation on Amtek Auto Limited when the price was around Rs290. We still maintain the same BUY rating on the stock at around Rs320 and continue to be bullish about the prospects of the company in long term.

DalalStreet.Biz analysts are also bullish on the long term prospects of Bharat Forge Company Limited. Bharat Forge is setting up a large manufacturing facility in SEZ. It has been aggressively expanding in export markets. BUY 25% of your capacity around Rs350 and we will inform you of further developments.

We are also studying the prospects of HT Media and we will keep you posted as soon as our research on the stock is done.

Thanks and Happy Investing.

Logistics, Retail, Telecom and IT are likely to be the star performers in India Inc for Q2. In a research report published by ILFS,[PDF] Logistics is expected to report a rise in YoY sales of 232% followed by Retail expected to report 70.2% rise in YoY sales. IT is expected to report growth of 39% and Telecom 36%.

ILFS favorite picks sectorwise are as follows.
Logistics:
Gateway Distriparks and Allcargo Global

Retail:
Pantaloon Retail (India) Limited and Shoppers Stop.

IT:
Infosys Technologies Limited, TCS, Wipro (My favorites are Satyam and HCL Technologies)

Check out the entire report here.[PDF]

India Invest , Q2 Results , Dalal Street

The Indian IT industry is expected to announce a rock solid quarter for Q2. Infosys results are expected on 11-OCT-2006. IT companies are expected to grow 8.8% QoQ and analysts at JP Morgan have set some high expectations from Infosys, 11% QoQ.

CLSA has outperform on Infosys and Wipro and underperform on the rest(Satyam, TCS, HCL Technologies). Read CLSA report here. [PDF] I personally believe Satyam and HCL-Technologies are undervalued compared to their peers. Both the companies should decisively cross $1 Billion in sales this financial year, critical figure required to bid for large IT contracts. Satyam and HCL-Tech hopefully will get re-rated very soon. Accumulate on every decline.

Disclosure: I am a small investor and hold both Satyam and HCL-Technologies.

Should India follow the Chinese Business Model for SEZs ? Here is an excellent comparison of how SEZs in China have transformed the Chinese economy. The SEZs location, proximity to Hong Kong and Taiwan was itself a blessing in disguise.

Not too long ago, I had questioned the behavior of S P Tulsian and the TV channel pampering and beaming his sick advise, CNBC-TV 18.

SEBI has unearthed a Mini-Scandal involving Mathew Easow’s stock tipping on MoneyControl(CNBC TV18 group company).

Modus Operandi of Matthew Easow:
Matthew Easow would buy stocks a week to 10 days in advance and then come out on CNBC’s MoneyControl and give a BUY recommendation and when you small investors would BUY, he would SELL. In case of Kalpana Industries Ltd, Matthew had accumulated the stock from 02-09-2006 and then gave a BUY recommendation on the tainted MoneyControl on 13-09-2006 and on the very same day he sold 13,500 shares even before the target price he mentioned was achieved. Other stocks in this mini scandal are, Albert David , Alhcon Parent and CESC Limited.

SEBI investigated the entire issue and fined rs20 Lakhs on Matthew Easow. Read the entire findings of SEBI here. I have lost respect for CNBC TV 18 and it’s group company MoneyControl for focusing shady brokers and researchers like Matthew.

Small investors, kindly stick to good and fundamental investing values. AVOID StockTips.

Indian Stocks ,
Mini Scandal ,
Indian Investor ,
CNBC India

Morgan Stanley Star Analyst, Andy Xie has resigned. Recall he is the same guy who came on CNBC TV-18 in June-06 and created panic amongst Indian investors by telling that the Indian Stock Market was headed towards a bear phase. I had strongly opposed his reactions then because he was very immature to have made such an ir-responsible statement.

Subsequently the Indian markets bounced back and Morgan Stanley Revised India’s GDP upwards on Sept-2. And exactly a month after this, he resigned. Maybe Andy Xie didn’t want to face the embarrassment from his peers during peer review which come up at the end of every quarter in MNC firms. Did Andy deserve to be a STAR at all ? You know better 🙂 Good Luck for your future Andy!!!