Concept Consultants

Our picks stocks for investment in 2009 has given 14% returns on investment of Rs.10 Lacs in just 8 days, However the benchmark index gave only  9%. returns.

This bunch of stocks which was picked on 26-12-2008 with investment view has already given great returns. The Nifty stood on that day 2857.25 and closed at 3112 on 6-Jan-2009 there buy generating returns of 9%

Alstom Projects which was recommended on that day to invest at 223.9 has closed at 275 there by give 23% returns. All nine stock which were picked gave more the 10% returns.

Investors who have bought these shares can hold for some time as current market trend showing strength.

Fundamental Analysis, Indian Market News, Stock Tips , long term, Stocks to invest

Voltas Ltd, and TATA group company is an air-conditioning and engineering solutions provider. While the company’s primary business is providing comfort air-conditioning requirements for homes and offices, malls, airports homes and multiplexes, it also operates in areas which require monitoring of temperature, humidity, or treatment of air. The users in this segment include steel and power plants, petrochemicals facilities and laboratories. The company is also into manufacturing of material handling equipment and provides agency services for selling textile machines and construction and mining equipment. This diversification should provide cushion for the company against any slowdown in any one segment.

The company’s main strengths lie principally in area of, the design and manufacturing of industrial equipments, and management and execution of air conditioning and public work projects. In it’s engineering division the company caters products and services to the Textile industries and mining & construction equipments,

The Company in its results for Q2 FY2009 ahs reported Sales / Income from Operations an increase by 29% to Rs.931 crores, as against Rs.722 crores in the same period last year.  Operating Profit has increased by 28% to Rs.89 crores as against Rs.69 crores in the same period last year. Profit after Tax increased by 16% to Rs.62 crores, as compared to Rs.53 crores in the same period last year.

The Company’s Electro-mechanical Projects and Services segment’s revenues grew by 40%. The Order Book of this segment stands at Rs.5575 crores, registering a   growth of 107%.

The Engineering Products and Services segment’s revenues grew by 21%, despite a slow down in demand for capital equipment.  Mining & Construction Equipment business achieved 40% growth in sales, over the corresponding period, last year.
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The company share price which has fallen more than Rs. 200 from its 52week high of Rs. 261 to current market price of 61 is currently trading at attractive PE  compare to its pears. And the stock which has been recommended by most of the stock brokers and fundamental analysts if good pick at these level and can scale to higher levels in a years time.
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Punj Lloyd Ltd is a diversified in Engineering & Construction services in Oil & Gas, Infrastructure and Petrochemicals, and with interests in Defense, Aviation, Marine and Upstream sectors. The company known for its capabilities in finishing the mega project on time

The company has done projects across the world, the Group continues to provide integrated design, engineering, procurement, and construction and project management services for the energy, infrastructure and petrochemical sectors. From pipelines, tanks and terminals to refineries, power plants to renewable, airports, rail transit systems to expressways, the Group can offer EPC solutions across a wide spectrum of businesses.

The company has recently singed MOU with Thorium Power Ltd, The MOU establishes a framework to explore and identify the strengths of Thorium Power in areas of the deployment of Thorium Power’s nuclear fuel designs in India, Southeast Asia and other territories; to expand consulting activities for the development of nuclear power generation regionally and worldwide; and to pursue the establishment of a joint venture between Thorium Power and Punj Lloyd to best capitalize on the emerging nuclear renaissance. 

In the Q2 FY2009 company got more orders for leading companies like, Qatar petrochemical, GVK Power. The company also won it’s first drilling contract in Libya. The company’s order book stood at more than 21000 crore at end Q2. As per the company statement the 28% of order book is from South Asia and 26% from Middle East, 37% form south East Asia and Asia pacific.

The company announced following numbers in its Sep 2008 (Q2) quarter.

Total revenue of the company have gone up by 53% to Rs2954 crore. The net profit after tax of the company has shown increase of 60% to Rs. 144 crore. The EPS of the company stood Rs. 4.94 for Q2 FY2009 and Rs 8.44 for half year. Also the EBITA of the company has been showing consistent growth to the tune of above 75%.

The company has been trading in the range of 120-140-170 and at current market price the company is trading at around 11 times of last yeas EPS of 12.65 and the company has already reported 8.44 for first two quarter. The stock price of the company had heavy correction along with the entire market, looks good the current market price.

On Technical charts the company made its 52 week High of Rs 656 and low of 127.40, if showing consolidation formation and trading in the range of 130-180 range the stock huge support at 140 levels, Rs 140 has been acting as support when the stock is trading above 140 and as  resistance when the stock is trading below 140. In my view the stock may reach 250-300 range in year’s time. Investors with long term view can invest in this stock.

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Deepak Fertilizer and Petrochemicals, is mainly into production of chemicals which accounts for 66% of its revenues and 87% of its net profits and manufacturing of fertilizers accounting 31.8% of revenues and 11% of Net Profit. The company has recently forayed in the realty sector with the setup of a specialty Mall in Pune, which also generated almost 4 crores of revenues in Sep 08 quarter.

The company in the last quarter has announced a net profit increase of 91% amounting to 41.81 crores and jump of 65% in revenues to 369 crores. The company during the last financial year had touched 1000 crores of revenue for the year and is well on track this year to surpass it by crossing 700 crores of revenue in the first half. The EPS declared for the half year is 9.83 compared to 11.37 declared for FY08.

The company is currently trading at 5 times its last year earnings. At the 52 Week high, the valuation had jumped to 15 times on 6-Jan-2008. With the companies diversification into realty providing it a steady stream of revenue and hopes of a brighter future for its fertilizer business and the drop in prices of raw materials especially Naphtha gives a brighter cost future for the company. The only risk being the downturn in the economy leading to depression in prices and sales. But we expect the company to be better placed to face the uncertain future with its past execution strength, strong management and well planned diversification. The valuation at 4 times is quite attractive considering the high dividend yield of 4%.

Technicals
The company made a 52 week high of 178 on 2-Jan-2008 and a 52 Week low of 40 on 27-Oct-2008. Its all time high was 178 made on 2-Jan-2008. The price has fallen sharply since and is now taking support at 50 levels. It is forming an inverted head and shoulder pattern with potential upside target of 69 in the short term . Once it breaks above the 69 resistance it can move up to 90. On the downside, the stop loss should be placed at 47 which can be broken if there is fresh panic in the markets.

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Cairn India which dose oil exploration business in India having its main focus on Rajasthan, India has stuck more oil and gas.

 

The company which has the production sharing contract with ONGC for this oil field in which the cairn hold 70%

 

The companies share price has trading between 130-170 in recent times, the market analyst feel the stock is good long term buy.

 

Though the fall crude oil price may act as dampener in the share price movement and the analyst feel the stock can touch 300-320 levels in long term.

 

Investor with the long term can buy the stock for handsome returns

Fundamental Analysis, Indian Market News, Market Gossip, Stock Tips buy, cairn, gas, long term, oil, ongc

In order to increase the capital inflows in Indian markets today SEBI chairman Mr. C. B. Bhave has announced changes in P-notes policy. SEBI today scraped a rule which allowed P-notes could only account for upto 40% of the value of assets foreign fund, he also said entire framework for FII participation needs to be reviewed.

As per Oct 2007 decision FII’s were expected to bring down total p-notes issuance to 40% of their total assets before march 2009. However Mr. Bhave himself told the reporters that FII issuance of P-notes has already come down substantially and thus today’s decision may not make any immediate difference to FII position.

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Market liquidity is a business, economics or investment term that refers to an asset’s ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value.

A liquid asset can be sold (1) rapidly, (2) with minimum loss of value, (3) anytime within market hours. The characteristic of a liquid market is that there are ready and willing buyers and sellers at all times. An elegant definition of liquidity is also the probability that the next trade is executed at a price equal to the last one. Such scenarios arise when there are many buyers and sellers and this will not affect the price at that particular moment.

The liquidity of a product can be measured as how often it is bought and sold, this is known as volume in stock market. Often investments in liquid markets such as the stock exchange or futures markets are considered to be more liquid than investments such as real estate, based on their ability to be converted quickly. Some assets with liquid secondary markets may be more advantageous to own, are willing to pay a higher price for the asset than for comparable assets without a liquid secondary market. The liquidity discount is the reduced promised yield or expected return for such assets, like the difference between newly issued.

Speculators and market makers are key contributors to the liquidity of a market, or asset. Speculators and market makers are individuals or institutions that seek to profit from anticipated increases or decreases in a particular market prices. By doing this, they provide the capital needed to facilitate the liquidity.

Fundamental Analysis