BS TRANSCOMM crashed from a level of Rs.220/- to Rs.146/- in continuous down circuit.I have received many queries from the readers in this regard.I feels, there is nothing wrong with the business of the company but some market operators have trapped in this counter due to the unexpected change of mood in the whole market.The pain may only continue till their shares are absorbed.Requesting to average @ CMP and hold .
Monday, 29 November 2010
Friday, 26 November 2010
Traditionally ,Pharmaceutical companies are known as defensive bets .It also giving reasonable return in bull market ,that is why conservative investors are always giving preference for pharma companies in their portfolio. Considering the chances for low cost manufacturing and recession proof(to some extent) status of the business R&D driven pharma companies are always catching market attention. Neuland Laboratories is such a company from Hyderabad started in 1984. Neuland is promoted by Dr D R Rao and its board is supported by eminent personalities includes Mr Humayun Dhanrajgir (Former MD of Glaxo India), P V Maiya (Former chairman of ICICI Bank) Mr SP Budhiraja(Former MD of IOC) ..etc. Company is in the manufacturing of Active Pharmaceutical Ingredients(API’s) ,Contract Research and manufacturing (CRAM) and Clinical research. It also started the production of Peptides last year. Neuland having two USFDA approved manufacturing units ,one at Bonthapally and other at Pashamylaram near Hyderabad and exporting its products to more than 40 countries worldwide..It also have a strong R&D with 165 scientists. Company is one of the largest manufacturer of Ranitidine in India.Neuland’s sales in segment wise is as follows, 45% from Quinolones ,18 % Cardiovascular,16% CNS,10% Anti Ulcerants,4% Anti Asthma and rest from others. Company having two subsidiaries Neuland laboratories KK Japan and Neuland Laboratories Inc USA. Recently company started a joint venture with Cato Research Israel to offer clinical research services in India .Neuland owns 70% stake in this new company called Cato Research Neuland India Pvt.Ltd. Neuland’s R & D division has identified 13 new products for development in this year.
Financials
In the history of last 10 years ,Neuland posted a loss ( Rs.7 Cr )in last year with a sales of Rs.282 Cr.This is mainly because of the production disruption due to renovation of plants, unfavorable exchange rate and some regulatory problem of one of its products. Most of these problems are stabilized now and company is expecting better days ahead. Company has taken various cost cutting measures and steps for the optimum utilization of its resources. For the last two years ,Neuland made heavy investment in infrastructure including production facilities ,R&D and
H R. Benefits of these efforts are also expected to start from this year. It is a point to note that before the loss making last year ,in two previous years ,company posted EPS more than Rs.20/- and paid hefty dividends to share holders.Now the management is confident to achieve better results ahead and their optimism seems to be true based on the September qtr numbers. In the latest qtr Neuland posted a turnover of Rs.101 Cr v/s Rs.61 Cr and a net profit of Rs.3 Cr v/s Rs.70 lac .On an equity base of Rs.5.47 Cr ,company posted an EPS of Rs.5.30/- in latest qtr .Even after deducting the loss in first qtr ,it is expected to perform very well on a full year basis. A good management with transparency, integrity and ethics is the big positive of this Company. Currently Neuland is trading @ Rs.119/- which is even below its book value of Rs.126 /-. One may consider a BUY at current level with medium to long term view for decent return.
Wednesday, 24 November 2010
NOBODY CAN BLAME A LAYMAN ,IF HE BELIEVES ,HERE IN INDIA BUSINESS CHANNELS ARE PLAYING IN THE MARKET IN A BIG WAY AND SENSATIONALIZING EVEN MINUTE NEWS TO MOVE THE MARKET IN THEIR FAVOR AFTER CREATING HUGE POSITIONS IN STOCK MARKET.INCIDENTS IN LAST FEW DAYS ARE ENOUGH TO THINK IN THIS DIRECTION.YESTERDAY IT WAS CBI AND DAY BEFORE IT WAS KOREA.NOTHING WRONG IN REPORTING ANY NEWS RELATED WITH BUSINESS AND STOCK MARKET,BUY THE WAY SUCH NEWS IS PRESENTED BY THE CHANNELS ESPECIALLY A WELL KNOWN ANCHOR WITH HIS SPECIAL BODY LANGUAGE BEFORE GETTING THE TRUE PICTURE AND SERIOUSNESS IS REALLY IDIOTIC. AFTER SENSATIONALISING SUCH STORIES IN THE AFTERNOON THEY OR THE VESTED INTEREST PARTIES RELATED WITH THEM MAY REVERSE THEIR POSITIONS AND LATER CLARIFY THAT - THERE IS NOTHING ALARMING AND INVESTORS NEED NOT WORRY ABOUT THAT .BUT BY THAT TIME POOR RETAIL INVESTORS WILL PANIC AND SUFFER HUGE LOSS DUE TO THE DECISIONS TAKEN ON THE BASIS OF EXAGGERATED STORIES.
SEBI IS TAKING A LOT OF STEPS TO CONTROL THE WRONG DOING OF STOCK MARKET INTERMEDIARIES BUT CHANNELS ARE FREE TO REPORT ANYTHING AS THEY LIKE .THEY ARE NOT SHOWING ANY SHAME TO TAKE JUST AN OPPOSITE STAND IN THE NEXT DAY ITSELF .THESE CHANNELS AND ANCHORS ARE NOT EVEN SHOWING THE STANDARD OF SOME THIRD CLASS POLITICIANS.IT IS FAIR TO IMPLEMENT AT LEAST SOME SELF MADE MINIMUM STANDARDS IN REPORTING AND BROADCASTING .THERE IS LOT OF PLAYS HAPPENING BEHIND THE CURTAIN .SO RETAIL AMATEUR INVESTORS SHOULD TAKE UTMOST CARE IN THESE VOLATILE DAYS. IT IS BETTER TO AVOID HUGE POSITIONS IN F&O SEGMENT AND AND ALSO LEVERAGED POSITION IN CASH MARKET.
SEBI IS TAKING A LOT OF STEPS TO CONTROL THE WRONG DOING OF STOCK MARKET INTERMEDIARIES BUT CHANNELS ARE FREE TO REPORT ANYTHING AS THEY LIKE .THEY ARE NOT SHOWING ANY SHAME TO TAKE JUST AN OPPOSITE STAND IN THE NEXT DAY ITSELF .THESE CHANNELS AND ANCHORS ARE NOT EVEN SHOWING THE STANDARD OF SOME THIRD CLASS POLITICIANS.IT IS FAIR TO IMPLEMENT AT LEAST SOME SELF MADE MINIMUM STANDARDS IN REPORTING AND BROADCASTING .THERE IS LOT OF PLAYS HAPPENING BEHIND THE CURTAIN .SO RETAIL AMATEUR INVESTORS SHOULD TAKE UTMOST CARE IN THESE VOLATILE DAYS. IT IS BETTER TO AVOID HUGE POSITIONS IN F&O SEGMENT AND AND ALSO LEVERAGED POSITION IN CASH MARKET.
Tuesday, 23 November 2010
Saturday, 20 November 2010
Ingersoll Rand India is a subsidiary of US-headquartered Ingersoll-Rand plc . It is one of the largest manufacturers of compressed air systems in India. Its debt free status and huge reserves makes it an attractive bet for long term investors.Since there is slow growth in its overseas business,now parent company is increasing its interest in its Indian arm.Ingersoll Rand now planning to increase the capacity for manufacturing heating, ventilation and air conditioning products. Company is expected to make India as a hub for their regional requirements.For the half year ended September 2010,company posted a turnover of Rs.113 Cr (Rs.81 Cr) and a net profit of Rs.18.5 Cr (Rs.10.8 Cr) .Factors like good support from parent company, well accepted brand ,healthy balance sheet with around Rs.650 Cr cash reserves..etc , makes it an ideal candidate even for a conservative portfolio.Currently IR is trading around Rs.450/- . Investors can BUY it around Rs 430-440 for decent return in medium to long term
Thursday, 18 November 2010
I have recommended a BUY on SRI ADHIKARI BROTHERS TELEVISION NETWORK on 27th February 2010 @ Rs.27/- .After touching a high of Rs.73.50/- in last week ,it is now quoting around Rs.50/- .On a standalone basis ,in the September quarter company posted a turnover of Rs.9.5 Cr v/s Rs.5.4 Cr and a net profit of Rs.1.4 Cr v/s a loss of Rs.81 lac .For the half year ended SAB posted a turnover of Rs.17 Cr and a profit of Rs.2.83 Cr and an EPS of Rs.1.61 .SAB recently launched Hindi Music Channel ' Mastiii' through its subsidiary which is a huge success.It is also expected to start few more channels in coming years.Channel business is expected to brake -even shortly.Vast experience of promoters is the main plus point of this company .Investors can BUY at current level for good return in long term
Wednesday, 17 November 2010
I have recommended LUDLOW JUTE AND SPECIALITIES as a BUY on decline @ Rs.86/- ,before the declaration of second qtr result . Based on the robust performance I reiterate a BUY at current level of Rs.88/- .For the half year ended September ,Company posted a turnover of Rs.162 Cr v/s Rs.108 Cr , a net profit of Rs.16 Cr v/s Rs.4.7 Cr and an EPS of Rs.15/-
Old Report can be Accessd HERE
Old Report can be Accessd HERE
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