Category: Economy, Markets and Macro Views

Post Q32008 results both Tata Tea and Britannia Industries look good and can be a safe haven considered to the over heated financial and Realty sectors.

Tata Tea:
3Q EBITDA growth of 29% was ahead of estimates – margins have been improving over the last 3 quarters, driven by improving cost management and better product mix. Net profit (pre-exceptional) grew 175% due to decline in interest cost owing to cash inflow from Glaceau sale. (more…)

As we have opened the doors of liberalization we have also given permits to setup Modern East India Company to Foreign Institutions. Our markets are heavily owned by institutions in the past 4 years. Our analyst who has been monitoring the market very closely crunching every bit of data and talking to wizards of Dalal Street say that FIIs trapped the retail investors very badly in the recent meltdown.

In hopes of a dream budget, most retailers were expecting a pre-pudget rally to take the Index to a new high of 23,5000 [consensus on the street]. Greed and leverage opportunity by modern day brokerages, who always think of paradise, extended unreasonable credit to retailers who could never sustain. (more…)

This is not the first Bull Market we at DalalStreet.Biz are riding on. After having burnt our fingers in the early 90s we built a model of investing based on Fundamentals and Earnings of the company 🙂 Now, as reader you maybe wondering why are we writing after the show ? Well, whenever we had an opportunity, we have said that in the past [Rolta, SBI] and we just thought of summarizing more events on how Bull Market Analysts justify their Stupid Price Valuation Theories.

In 1991, as Harshad Metha rigged up (more…)

We have extracted charts of BSE-SENSEX. The charts below indicate that we are at support based on SEMI-LOG trendline, 50DEMA and fibonacci 61.8 retracement. Investors must consider 16,200 as a support. Close below 16200-16000 will indicate weakness.

SENSEX / Nifty Valuations: In one of my recent posts I had contradicted with Citigroup’s opinion about Citigroup’s SENSEX targets and you saw the results. At current levels the valuations look attractive; Markets are trading around 16.2 times one-year forward earnings. A great opportunity for medium and long-term investors.

Find charts attached below, charts can be enlarged and seen (more…)

The Blood Bath in the Indian markets in-line with global stocks should be considered as an opportunity to BUY & HOLD fundamentally good stocks. Nothing has changed in the Indian economy in the past week except Inflation figure, which was higher @ 3.79. Foreign Institutions are booking profits in emerging markets to set off their losses in the sub-prime fiasco.

There is selling across the board with Small-CAP and Mid-CAP being the worst affected. All the Realty Stocks are in deep red and kindly stay away from this sector as we consider it risky bet in short to medium term. (more…)

Tata Group is one of the oldest business house in India with varied interests from Engineering to IT to Chemicals to Hospitality. The group has been on continuous restructuring exiting legacy businesses and consolidating the few where it could be amongst the Top-3 or Top-5.

Here is an exclusive Study of Tata Group Stocks as reported by HDFCSEC.

Tata Motors:
Tata Motors is expected to report a CAGR of 14.4% in Net sales, on the back of volume CAGR of 12.1% for the period FY07-FY09E. It will report an adj. Net profit CAGR of 10.2% for FY07-FY09E. The standalone business at 13.0x FY09E EPS at Rs.738 and subsidiaries at Rs.182/share. Successful acquisitions of global brands Jaguar and Land Rover (JLR) will adversely impact the stock price and sentiment in the near term. HDFC maintains a BUY rating on the stock with a target price of Rs. 920 from a one-year perspective. (more…)