Wednesday, August 31, 2011

JOKE OF THE YEAR



" India's gross domestic product (GDP) growth in the April-June quarter is disappointing "

 Finance Minister Pranab Mukherjee


Even a first standard kid except our finance minister knows , if interest rate  hike is going on in this pace that will affect  over all demand and  growth


BUT 

* NO LONG TERM PLANS TO BOOST FOOD PRODUCTION

* NO INFRASTRUCTURE AND LOGISTICS SUPPORT FOR EFFICIENT DEPLOYMENT OF AVAILABLE RESOURCES.

* NO SINCERE EFFORTS TO CHECK FAKE CURRENCY

* NO ACTION TO BRAKE  CARTELS FORMED BY  MAJOR PRODUCERS.

* NO CLARITY ON ENVIRONMENTAL ISSUES RELATED WITH MAJOR PROJECTS.

* NO STERN ACTION AGAINST TREASURY HIJACKERS


                          ONLY DIALOGUES ,CONCERNS AND INTEREST RATE HIKES.


IF  INTEREST RATE HIKE IS NOT TO CONTROL DEMAND AND REDUCE INFLATION  - WHAT IS THE PURPOSE OF THESE RATE HIKES ?


IF YOU KNOW ANY MAGIC TO KEEP GROWTH RATE   AND INTEREST RATE AT HIGHER LEVEL SIMULTANEOUSLY EXCEPT DATA MANIPULATION ,PLEASE COMMENT .......





Saturday, August 27, 2011

GALAXY ENTERTAINMENT CORPORATION - WILL BIYANI WAKE UP ?





Once , Kishore Biyani was an icon of Indian business men.He is also considered as the father of Indian organised retail sector.But off late his image is fading at least among the investors of his listed companies like Future Capital Holdings.Diversification beyond limits with over enthusiasm will always end in lack of concentration and which is happening in Future group now.We can't justify collecting money from pubic again and again and at the same time ignoring the best available opportunities to create wealth.I don't know , till now whether Kishore Biyani is even aware that there is a company named 'Galaxy Entertainment Corporation (BSE CODE - 506186) ' is existing  with his 'Future Group'.Anyway it is taken over by Future group in 2005 from the Chatterjee group (the major share holder of Haldia Petrochemicals Limited) but strangely ignored till now.Phoenix group also holding  stake in this company. It is very difficult to guss why future group neglect this company even at a time Leisure and entertainment stocks are commanding huge valuations.As ,  many of you are aware Galaxy Entertainment running bistros,theme restaurants and eateries under two brands named "The Sports Bar' and 'The Sports bar Express'. Company's facilities are located in Noida,Mumbai,Bangalore,Indore...etc.Company also had a gaming business under the fold 'The bowling Company' .For the FY 2010-2011 , company posted a turnover of Rs.27 Cr and a loss of Rs.7 Cr.In the first quarter of This FY , Galaxy posted  a sales of Rs.6 Cr and a loss of Rs.3 Cr.

Recent Developments


Even in a huge loss , this company inviting my attention because of some recent developments.I believe ,after a long time the promoters now identified that there is a company laying in Future ( Pantaloon) group in the name of Galaxy Entertainment Corporation.Recently company decided to stop the operations of some loss making centers and also changed the bowling business into a minimum guarantee plus revenue sharing model. Recently  Sunil Biyani, cousin of Kishore Biyani is appointed as an additional director of  Galaxy entertainment.And the most important point is -  Company is now seeking share holders permission to borrow an amount upto Rs.80 Cr and the reason for this fund raising is mentioned as the implementation of  new projects and for working capital requirements.Further more ,the old promoters - Chatterjee group - bought additional 7 % stake through bulk deal on 17/08/2011 @ Rs.14.25 ( currently Chatterjee group is in Public Category). Almost 60 % stake is already held by the two promoter groups - Future and phoenix Mill.
Now,listed food chain companies are very rare in India and if there is one like Jubilant foodworks ( even if with an international brand 'Dominos) is running at hefty valuation. ( Agree - both business is  not strictly comparable) .I don't think Kisore Biyani is a fool to waste opportunities and believe he is still with caliber to do something if he decides, especially at a time many foreign food brands are interested to enter into India with local partners.Anyway Galaxy entertainment Corporation is now trading near its all time low @ Rs.13/- ( All time high is Rs.420/- in 2005) is worth for a bet for maximum risk takers at current price or below and it is the only listed company from Future Group which may turn as a multi-multi bagger from current level .The one and only question is whether the promoter is interested or not,and the first sign of the answer for  this question may get in near future when they announce the utilisation of  funds they are going to raise shortly.

Tuesday, August 23, 2011

WEBSOL ENERGY SYSTEMS LTD- REPEAT

I have recommended a BUY on WEBSOL ENERGY SYSTEMS @ Rs.59 on 24/02/2010.After hitting a high of Rs.92/- in March, now it is trading around Rs.45/- .Reiterate a BUY at CMP for long term.

Old Posting HERE

Saturday, August 20, 2011

GODREJ INDUSTRIES Ltd - BUY

















 For many of us , Godrej Industries  Ltd (GIL) may be a chemical company.But it is more than that .Its stake in Godrej Agrovet(75%),Godrej Consumer products (22 %) and Natures Basket makes it an interesting company.It also owns 71% stake in Godrej properties.Godrej Agrovet is mainly in animal feeds and agri inputs ( mainly herbicides).Company also owns 37000 hectare oil palm plantation in various states like Andhra,Tamilnadu,Goa..etc.Godrej Agrovet also having a joint venture with ' Tyson' in poultry business which is selling processed poultry products under the brand name "Real Good" and value added ready to eat products under the brand name "YUMMIEZ" Company is now planning to expand the operations of this division to many more cities which is limited now.'NATURE'S BASKET' is a subsidiary of GIL which is operating around 13 stores currently for selling organic fruits and vegetables,beverages,dairy products..etc.Company's this division is expected to brake even shortly and new shop additions are planned. The agri centric business of GIL through Godrej Agrovet having huge potential in India ,and company's latest financials is a reflection of this fact. FMCG  business of Godrej CP  is also growing rapidly For the first quarter of this financial year  GIL posted a turnover of Rs.1310 Cr an improvement of 31 % over last year and a net profit of Rs.71 Cr ( up 46 %) . EPS for first quarter is Rs.2.25.This professionaly managed company having huge expansion plans it its various businesses and it is expected to show decent growth going forward.GIL can be included in your portfolio at CMP of Rs.186/-

Friday, August 19, 2011

CONCURRENT INDIA INFRASTRUCTURE - UPDATE

After a long time ,got many queries from readers about Concurrent which is currently trading at its yearly low @ just Rs.4/-.Many of them are asking -  is it a buy even at current level ?.But it is not a buy for me even at current level and there is no change in my opinion on this company from my earlier stand .Old postings can be accessed HERE and HERE.

Monday, August 15, 2011

KOVAI MEDICAL CENTER & HOSPITAL LTD - BUY








CMP .Rs.114/-

Healthcare is considered as one of the sectors India having huge potential in coming years..Hospital services is a major part of this industry.But the number of listed players in this sector is limited.Kovai Medical Centre and Hospital (KMCH) is one of the good listed companies from this space.This Coimbatore based 800 bed multispeciality  hospital having all most modern facilities including Open heart surgeries ,Kidney transplants, Knee replacements, Hip replacements , Complex Neuro surgeries Angiograms, Angioplasties, Stenting ,fallopian tube recanalisation, Chemotherapy, Blood component therapy, Arthroscopic surgeries, Laparoscopic and Thorocoscopic surgeries,Emergency-Trauma Care Center... etc  KMCH is located in a 20 acre facility close to coimbatore airport and also having three satellite hospitals - two at Erode and one at Ram nagar.KMCH recently started the facility of E-Bus (Endo Bronchial Ultra Sound) which is very effective for identifying lung cancer in an early stage. It is one of the very few hospitals in this region with this facility. KMCH is now expanding its service to pediatric , and eye segment and this facilities will commence operations in few months. In  recent times KMCH is very aggressive  in bringing new technologies ,most modern facilities and new departments to its fold. Company is spending an amount of Rs.200 Cr for this expansion programme.Growth for KMCH will come in two ways .One through the addition of  more facilities and departments  at the existing hospitals and the other is through the starting of new satellite centers in other places.For the quarter ended June 2011  ,KMCH posted a turnover of Rs.51 Cr v/s Rs.31 Cr and a net profit of Rs.2.43 Cr v/s Rs.81 Lacs. As an indication  of the confidence of promoters, they are steadily hiking their stake in last few quarters through open market purchases.At CMP of Rs.114/- , it is a good long term bet for a healthy portfolio.

Wednesday, August 10, 2011

KAVERI SEED COMPANY / ADVANTA INDIA - RESULT UPDATES









Both these companies declared very good results for the June quarter

KAVERI SEED COMPANY LTD.


Turnover   Rs.241 Cr  v/s Rs.148 Cr

Net Profit  Rs.47 Cr   v/s Rs.31 Cr

EPS Rs.     Rs.34.5     v/s Rs.23



ADVANTA INDIA LTD


Turnover   Rs.225 Cr  v/s Rs.175 Cr

Net Profit  Rs.17 Cr   v/s Rs.4 Cr

EPS Rs.     Rs.10     v/s Rs.2.50


Since both these companies are in hybrid seeds segment and this industry is seasonal in nature ,it is not prudent to annualise the quarterly results based only on June quarter result.

Both these companies having huge potential in this space ,HOLD  both for long term.













CAMLIN FINE CHEMICALS- REPEAT

Based on the June quarter performance and the benefits expected from the recently acquired Hydroquinone manufacturing facility of Borregaard in the future , I reiterate a BUY on Camlin Fine Chemicals @ CMP of Rs.100/-


For old posting click HERE

Saturday, August 6, 2011

What is next ?

Most probably  there will be deep red in the street on Monday as a knee jerk reaction to the developments in US.Business channels and analysts  will surely  make you panic , but I think it is a time to act with prudence and not on emotions.In fact India may be one of the big beneficiary of the ongoing happenings in western world.We all know , the main problem Indian economy facing now is the non stop rise in inflation mainly on account of commodity prices. Current happenings may turn as a boon for India  and eventually we may reach a situation of cutting down the interest rates. Such a situation will surely help our market to start the next leg of rally. Even we take the situation in US , this warning from S&P may help that country to think seriously about their economy and save it from a disaster.So ,better to stay cool ,think and then take a decision instead of taking decisions based on emotions.Try to spot out the beneficiaries of softening western economies,catch them in small lots.Never over trade and don't think the entire problem will end in one or two days.Don't divert funds to stock market to make quick gains if such fund  is meant for some other time bounded purpose.Avoid leveraged purchases  is the most important point to note . Let us concentrate in quality companies - which will surely out perform in long term.

Wednesday, August 3, 2011

DFM FOODS - Result Update

DFM Food is one of my old recommendations @ Rs.48/- ( For Old posting - Click HERE) , which is currently trading @ Rs.161 near to its all time high.Today company declared excellent result with an improvement  of  66 % in sales and 135 % in net profit . In the first quarter , company posted a turnover of Rs.34 Cr v/s Rs.20 Cr  and a net profit of Rs.3 Cr v/s Rs.1.27 Cr . Full benefit of its recent expansion is expected to reflect from this financial year onwards. HOLD it for long term .

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