Indian Stock Market News, Recommendations & Broker Views |
| Posted: 17 Jan 2008 12:09 PM CST GODREJ INDUSTRIES stands to gain immensely from the recent repeal of Urban Land Ceiling Act of Maharashtra. It holds a large piece of land in Vikhroli, a central suburb of Mumbai which it can now develop. After development, the rental income alone could be over 100 crores annually. According to sources, the company is holding 82.88% stake of Godrej There is also a buzz in the market that Godrej Poperties will be At the time of writing this, the stock was trading at the lows of
          | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER Posted: 17 Jan 2008 12:08 PM CST JK LAKSHMI CEMENT LIMITED has been posting stellar results for the last five quarters in a row. The nine months Cash EPS till December, 2007 stands at 43.21 as against 27.57 for the same period previous year. At current price of 171, this stock is trading at a PE of a mere The company has also declared an interim dividend of 10% and record
          | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Parsvnath Dev eyes 120-140% bottomline growth - Pradeep Jain,Parsvnath Developers Posted: 17 Jan 2008 10:13 AM CST Pradeep Jain, Chairman, Parsvnath Developers, said DoT has wrongly rejected our application for telecom licence. "We may again approach DoT to reconsider our application."
Jain said the company would grow about 120-140 % over last year. "Last year, we had a bottomline of Rs 292 crore. This year, at under 120-140%, the bottomline comes to about Rs 600-700 crore."
Excerpts from CNBC-TV18's exclusive interview with Pradeep Jain:
Q: First off from the telecom bit, what next from your point of view, now that the licence has been rejected. Would you consider acquiring an additional smaller company who has acquired licence or would you consider re-bidding? What is the process like?
A: We are the first players to apply to DoT. They have wrongly rejected our application. DoT said telecom is not part of the Memorandum and Articles of Association. Although in the other object, communication is there. Our lawyers and other legal experts are trying to understand on what grounds they have reject our application. We may again approach DoT to reconsider our application.
In regards to acquiring a new or an overseas player, telecom is not our main business. We have already formed a telecom company in the last four-five months. We feel there is large synergy and will explore that possibility as well.
Q: You have your finger in several pies like hotel development, SEZs, and even airport development. Give us an idea of what kind of revenues you are seeing for the listed entity? You reported revenues of Rs 800 crore for the first half. Give us an idea for FY09 and FY10 or as long as you can see the visibility?
A: We are developing a lot of real-estate projects at this point of time. We own about more than 191 million sq ft area and are developing a number of the integrated townships, housings, standalone malls, and most Delhi Metro stations, among others. Commercial development is also on. We are currently doing projects in Kurla and Mahim and a number of SEZs.
We will grow about 120-140 % over last year. Last year, we had a bottomline of Rs 292 crore. This year, at under 120-140%, the bottomline comes to about Rs 600-Rs 700 crore.
We own 17 hotel properties across the country. We have started work on six properties and work on the other eleven properties will begin in the next 3-6 months. We have almost tied up with the operator. We will own the property and the operator will operate all those properties. We are talking with international and domestic operators and are close to signing up operating agreements with those operators.
We are in negotiations with both onshore as well as offshore hotel operators to acquire or operate.
          | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 17 Jan 2008 10:11 AM CST Early Results of IT companies for the December quarter may not be as exciting as they used to be few quarters ago. The sector has lost some of its appeal after the rupee-dollar debacle and global subprime crisis. However, going by the latest quarter numbers of Infosys, iGATE Global Solutions and Mastek, one can conclude that even though the picture may no more be rosy for the IT sector, it's not too gloomy either. Out of the three, Infosys and iGATE generate a major part of their revenues from IT services, while Mastek is in the solutions-led business. In that sense, Infosys and iGATE broadly represent the big and mid-sized IT services companies more than Mastek. The first two also generate a majority of their income from the US market. Thus, their numbers — especially that of Infosys, the second biggest IT exporter from India — provide a quick window to the trend in the US market. Mastek, on the other hand, has a larger presence in the UK. Both Infosys and iGATE have reported a moderate growth in sales and profits sequentially, following new client additions at higher billing rates. Infosys has added 47 new clients, four more than those in the same quarter of the previous year. iGATE also added three new clients during the quarter. This underlines the sustained demand traction in the IT outsourcing market, putting aside the concerns regarding global macroeconomic issues. On the profitability front, both companies have fared well. Infosys reported a 1.2% rise in operating margin at 32.6% over the previous quarter. This was mainly aided by lower selling and administrative costs. In iGATE's case, margins improved for the second consecutive quarter. Operating margin expanded from 15.8% a quarter ago to 17.5%. The company expects to increase this to over 20% by the end of FY09 by bringing down the average employee experience from 3-4 years to 1-3 years. Analysts are concerned over the signs of a slowdown in the US economy. It's widely believed that any such economic issue may eventually increase outsourcing by US companies to keep costs under control. But the market is more concerned about the quality of the revenue generated in terms of realisations. Even if business is generated, it is important to see the price at which it comes. The results of both iGATE and Infosys throw some light on this aspect of the business. During the December quarter, both companies were able to win contracts at higher billing rates. These are expected to remain buoyant. Infosys expects billing rates for new customers to go up by 3-4%, whereas repeat business is likely to attract 2-3% higher rates. Further, both iGATE and Infosys expect to see either flat or marginal uptrend in IT spends in '08. Infosys, for instance, has already seen some of its clients expanding their IT budgets by 6-7%. Though these results provide a precursor to what lies ahead, the picture will be clearer once results of other IT companies unfold over the next few days.
          | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stocks to pick: Reliance capital,Axis Bank, Moser Baer, Shree Cement Posted: 17 Jan 2008 10:08 AM CST Reliance Capital Research: Macquarie Rating: Outperform CMP: Rs 2,768 Macquarie has initiated coverage on Reliance Capital with an It has already established its credentials by surging to the top spot Moser Baer JP Morgan retains its negative view on Moser Baer with a Axis Bank Axis Bank can trade up to 25x 12-month forward P/E based on its strong
          | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rakesh Jhunjhunwala's latest Portfolio Posted: 14 Jan 2008 10:53 PM CST
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
