19 August 2012

52-WEEK BLOCKBUSTER: BAJAJ CORP: Business Line,


NSE/BSE- Markets closed on Aug 20- Ramzan/ ID

Markets -NSE/BSE- closed on Aug 20- Ramzan/ ID

Jointeca Education Solutions IPO


Issue Terms
 
Issue price / Floor Price (Rs)
15
Application per share (Rs)
15.00
Minimum investment amount (Rs)
120,000.00
Minimum bid (no of shares)
8000 shares and in multiples of 8000 thereafter
Maximum Shares for Retail
8000
Issue Date and Size
 
Issue opens
16-Aug-12
Issue closes
21-Aug-12
Listing on
BSE SME
Issue size (Rs cr)
5.35
Mkt cap at issue price (Rs cr)
15
Shares on Offer
Lakhs
Total shares offered
35.69
Of above, offered to public
30.65
Post-issue shares
100.00
Post-issue promoters' holding(%)
N.A.
Company Financials (Rs cr)
2012-03-31
No of months
12
Turnover
1.34
Net profit / (loss)
0.06
Borrowings
N.A.
Lead Managers & Registrar
Lead Manager(1)
Ajcon Global Services Limited
E-mail
mbd@ajcon.net


Registrar
Beetal Financial and Computer Services Pvt Ltd
E-mail
jes@beetalfinancial.com
Company Contact Details
Company's address
1014, Bagh Bahadhur Chowki Colony, Near SBI Crossing, Mathura, Uttar Pradesh
Pincode
281 001
Tel No.
0565 6000801
Fax No.
0565 2409538
Website
http://www.jointeca.com


Blind Spot - Relative theory, greater value: Edelweiss PDF

Last two years have seen a baffling mix of global and local factors playing spoilsport in the markets, making the stock picking an improbable task if not an impossible one. The emerging complex scenario has resulted in a valuation polarisation in the market. At the top level, there are stocks with a high quality earnings profile, but fully captured by their valuations and hence run the risk of a sharp de-rating on the slightest negative surprise. Similarly, at the bottom rung, there are companies whose valuations may look cheap, but lingering policy obstacles and lack of an earnings trigger could keep their valuations depressed for the foreseeable future. Given the unfavorable risk-reward metric, we would be guarded against both these extremes.

EDEL:- Annual Report Analysis - Tata Steel

Tata Steel’s annual report highlights another year of healthy cash flows from standalone operations. Tata Steel Europe’s (TSE) cash flows were supported by increased debtor securitisation by Proco, a step-down subsidiary of Tata Steel, lower raw material inventories on account of reduced cost of coking coal and iron ore. Actuarial losses on pension liabilities stood at INR22.3bn, which complying with IFRS principles were charged through reserves. The company’s cash contribution to pension funds stood at INR15.1bn, while the charge recognised through P&L was INR 5.8bn. Borrowing additional INR7.8bn through hybrid securities continued during the year, interest cost on which skirts P&L.  

Annual Report Analysis - Lupin: EDEL

Lupin FY12 BS highlights robust disclosures and stable operating performance, however higher w/cap requirement has affected operating cash flows. PAT was lower due to significant jump in tax rate. In our view tax adjustment on unsold inventory should not be considered as one off in the financial models.

Cement Channel Check - Subdued demand impacts prices; monthly update: Edel

Liquid funds, a parking ground for savings: Motilal Oswal Wealth Management in Business Line,


Most liquid and ultra short-term funds don’t have an entry or exit load.
Why settle for less, if you are getting more? We tend to adapt to alternatives which are more productive. The same story applies to investment decisions as we tend to invest in financial products which may earn more, albeit they come with their own risks. One category is liquid/ultra short-term funds which score over the traditional short-term fixed deposits, current accounts and saving accounts.
Interest rates may not drop in the near future in India as many macro-variables such as fiscal and current account deficits are at a dangerously high level. So, liquid/short-term funds will continue to score over current/savings accounts in terms of returns.

PL INDIA: Automobiles - CV Goods Segment - Trucks Rentals range-bound


PL INDIA
 
Automobiles
Sector Update – CV Goods Segment : Truck Rentals range-bound
Truck rentals remained range-bound and jittery, registering a 0-2% drop during July 2012 due to all-round slackness in dispatches from agri sector, manufacturing sector and import-export trade. Despite record discounts and soft auto finance schemes, M&HCV goods segment declined by 18.0% YoY in July as truck rentals for the fourth successive month remained soft. Multi-axle truck sales were down by 25.6% and tractor trailer sales slid by 21.7%. LCV goods segment grew at 14.6% in July’12, with growth during April-July’12 at 18.6% YoY. We maintain our view that M&HCV goods segment would de-grow by 8-9% in FY13E, given the drop in freight availability and softening of truck rentals. In our view, LCV goods segment is likely to grow in the range of 16-17% in FY13E. Key findings of the IFTRT report are mentioned below:

Allotment status of shriram transport finance ncd


Dear all,

Now you can check the allotment status of shriram transport finance ncd 2012 from this link (http://www.iepindia.com/irncd_detail_2.asp)

Thanks & Regards

19 July: Pivotals -Reliance Industries, SBI, Tata Steel, Infosys : Business Line,


INDEX OUTLOOK: Stocks press ahead : Business Line,


How to break free from investment myths:: ET


Anybody who invests in a basket of blue-chip stocks and holds it for 29 years is bound to be a billionaire, right? Not in Japan. With the Nikkei index at the same level as it was in 1983, the value of the investment would be the same as it was 29 years ago. The Japanese aren't alone. Stock indices of the European markets are down to 14-15-year lows. Investors in the US and India are a tad better with benchmark indices at their 2007 levels.

With zero returns after all these years, the cult of long-term investing is almost dead. Yet, financial experts and investment advisers don't tire of preaching that holding stocks for the long term will make you rich. They profer carefully selected data to show how stocks have made mounds of money for investors over different periods of time.

Many more such money myths have been perpetuated by investment professionals. Stocks have the potential to earn high returns, but investors should not wait endlessly to book those profits. Over the next few pages, we have examined seven such money myths, which can work against you in certain situations. For instance, it is not always better to buy a house. A young investor should not allocate too much to an illiquid asset like a house too early in life. Also, if the property market is overheated and interest rates are high, it is better to live on rent.

The mutual fund space is a minefield of myths. Read the reality behind these misconceptions. SIP investments are considered safe and almost a guarantee for better returns. But as we will illustrate, the SIP is just a mode of investment and does not hold out any guarantee of better returns. Buying too many funds with a similar investment mandate only clutters your portfolio without diversifying the risk. Top rated funds are not always the best performing funds.

Another major misconception relates to the Indian investors' obsession with assured returns and tax-free income. This makes them invest in tax-inefficient bank deposits and low-yield life insurance policies. We explain how debt mutual funds will be a better option even though you might have to pay a 10% tax on the income.

Then there is the problem with interest rates on loans. A lay person will obviously choose a loan that comes at the lowest rate of interest, but this can be misleading if you don't check how the rate has been computed. A flat rate of interest may seem low, but actually works out to be costlier than a reducing rate loan.

As the country celebrates its 65th Independence day, it's time for you to break free from the shackles of these ill-conceived notions. ET Wealth will give you all the support you need in your bid for financial emancipation.

Myth 1: Stocks give good returns in the long term

Indian markets have not generated any returns in the past five years.

Financial planners like to parrot the widely held notion that stocks give high returns in the long term. The catch is that 'long term' is not defined. The Indian markets have not generated any returns in the past five years, but some developed markets are worse. Japan's Nikkei, for instance, is at the same level as it was 29 years ago. British, German, French, Spanish and Italian markets are where they were 13-15 years ago. There has been some recovery in the US, but the Dow Jones is still at its 2007 level. So, 'long term' can be extended as per the convenience of the financial adviser. If his clients don't get the desired result in three years, he extends the horizon to five years, or even further to 7-10 years.


Does this mean investors should desert equities and concentrate their investments in the assurance of debt, gold and immoveable property? Certainly not. The journey for the Indian and most other markets has not been flat. There have been bullish phases and bearish periods, each bringing with it an opportunity to book fantastic profits or enter at unbelievably low prices.

Most planners frown upon the small investor's attempts to get in when the prices are low and exit when they are high. "Never try to time the market," they tell him. We agree that you cannot always hope to buy low and sell high. We are not espousing intra-day trading and short-term punting. But booking profits periodically is perhaps the only way to make serious money from a volatile stock market.

Markets tend to go through mood swings. There are periods of extreme pessimism, when market participants behave as if the stock market is going to close down. We witnessed this in 2008-9. Then there are periods of extreme euphoria, when they think stock prices can only go up. We saw this in 2007 and again in 2010. Smart investors who move against the crowd during these extreme situations, buying during a downturn and selling in a rally, make good money

How does one spot these entry and exit points? One simple way is to look at the valuation of the broader market as defined by its PE. We examined the PE and Sensex movement in the past 15 years (see graph below). On the few occasions that it moved below 12 (1998, 2002 and 2008), it offered great buying opportunities. Similarly, when it moved above 24 (2000, 2007 and 2010), these were signals for exiting.

This strategy of buying only below a PE of 12 and selling when it is above 24 requires tons of patience. You may have to sit on cash for a very long time. Also, there is a possibility that you might miss some rallies in the interim. "Since we are the second fastest growing major economy in the world, India doesn't deserve to go below a forward PE of 12," says Chokkalingam C, group CIO, Centrum Wealth.