Investment Idea : Narmada Chematur Petro.

NCPL - On the Right Track….
CMP : Rs. 38
Target Price : Rs. 70
Period : 10 - 12Months
Risk : Moderate to Low

Investment Guru recommends investors to invest in Narmada Chematur Petrochemicals Limited with a year’s perspective. The company is all set to deliver excellent performance and the stock price should reflect the same.

What makes NCPL a good buy ?
Narmada Chematur Petrochemicals Limited (NCPL) is an Indo-Swedish Joint Venture Company of Gujarat Narmada Vally Fertilizers Company Limited (GNFC), Chematur Engineering AB, Sweden(CEAB), IBI Chematur, Mumbai (IBIC).
The company has made its mark in the field of Speciality Chemicals. The main products of the company are Aniline and TDI. The company enjoys near monopoly in the filed of TD, not only in India but also in South-east Asia.

Aniline, a specialty chemical has varied uses as a vital raw material in rubber chemicals, dyes & dye intermediates, MDI and pharmaceuticals. Hence the company’s product is a raw material for the Auto industry as well as textile industry, both of which are expected to do well in the coming years, hence good demand for NCPL’s products.

The presence of NCPL in the area of Aniline assumes greater importance, looking at the fact that the demand for Aniline is likely to increase at the rate of 8% per year

The company run on backward integration modeland sources its feedstock from GNFC(promoter company).

The company is currently operating at 140 % of its rated capacity and has expansion plans in place to leverage the growing demand for its products.

The company plans to get into manufacturing many value added products based on its core product, Aniline. NCPL is also starting a Product Application Development Centre to work towards finding newer avenues related to Polyurethane from and other future products.

The company boasts of excellent financials. The turnover has jumped 45% in FY05 as compared to earlier years. The net profit rose by 150%.

At current price of Rs.39 the company is traded at a P/E of 5 times its FY05 EPS. Given the prospects for good growth in the current year, the stock is expected to be an outperformer and give handsome returns to the shareholders.

Happy Investing !

(Disclosure: Investment Guru has a long term position in this stock. Please read the disclaimer clause before investing based on any recommendation on this blog)
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Market Watch : Never say die !

The Indian stock markets continue their upward march. The Nifty is currently trading at 2290 levels.The sensex has crossed 7500 mark and it has gained 500 points in just 25 days.
The rally looks stretched across the caps and sectors. The fireworks in the markets is expected to continue as the results seasons has not yet produced any major negatives. Monsoon is also on the right track. FII's continue their buying spree in the markets.

With this scenario in place, the obvious question that comes to a small investor is that Where is the Index moving ? Should I buy more at current levels or continue to hold? Shouls I start selling profitable stocks and start acumulating cash for buying at lower levels.

Keep a watch on the Investment Guru blog to answer all your questions. If you have any specific question on the Market trends , please leave a comment on this post.

Coming Soon on Investment Guru :

Stock Market : The Road Ahead
Investment Idea # 6

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IPO Update : IDFC Ltd.

Bet on Parekh, it's a long term play
IDFC is offering 40.36 crore shares through its initial public offer at a price band of Rs.29-34. Out of this 14.12 crore shares are offered to public.

Investment Guru recommends investors to apply in the IPO with a long term game plan. The stock is expected to bring smiles to investors in long term and reasonable listing gains also.

Let's look into the company
Management : The company is headed by Deepak Parekh who has taken HDFC to new heights. Under his able leadership and team full of stalwarts,the company should do well.

IDFC is an infrastructure play in business sense. The infrastructure sector is in limelight and is expected to be an outperformer in the long term. IDFC provides financing to Infrastructure companies.

With Infrastructure companies doing well, managing NPA's should not be an issue for the company. The company boasts of least NPA's among banks/financial institutions.

The company is focussing on the energy, trasportationtion ,telecommunications and oil and gas sectors to expand its financing.

IDFC's project finance assets (8000 crores) are as large as those of ICICI.

In the current year, company's share in the private infrastructure finance business is expected to be about 30%

IDFC Return on Assets (5.5%) is highest compared to any bank !!

The company has registered 18% increase in profits compared to last year (Profit after Tax Rs.304 Crores)

Senior debts forms the largest component in the financing portfolio and is an indicator of good quality of assets.

At offer price of Rs.34 at higher band, the stocks looks reasonably priced.
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The Third Eye - Gufic Bioscience

The Gufic Biosciences counter has shown huge demand today with more than 28 Lac shares traded. The stock is up 20% and currently trading at Rs. 34.75 with no sellers and pending buy orders of 13 Lac shares.
The stock has 52 Week high of Rs.46 and 52 week low of Rs.23
With market still maintaining at the top levels, investors are looking for stocks which have not yet run up high and that's why you will some some new stocks making news every other day.
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Where is Investment Guru ?

Dear Friends,
You must be wondering why this blog is not updated for last 7 days? Where is Investment Guru? Is he away from the markets for time being ?
To reply to your questions I would say, partly yes and partly no.
I went for an offsite session on last friday, so didn't look at the markets.
I decided to do something different on this weekend, so just went out to a calm place to do some soul searching (no double meaning please !)
It's a good idea to go to a calm and peaceful place and just think about yourself and see whether you are living your life towards your objective or do you need to reorganise yourself.

I did a cursory watch on the markets during this week, which is not taking any breather as of now. I am right now more focused on selling in those stocks where I have good profits and have some liquidity to use when the markets takes a pause. I also believe that even if markets falls, some stocks are there to stay and go against the current. Just trying to identify those stocks (will share some of those with you , once I have some stuff to serve to you guys!)

I will be back with some more updates on the blog!

One more thing, if you have noticed that I have introduced one more link to the list of useful links . I would like to introduce you to the "FUN BLOG" It's a blog basically designed to provide some moments of laughter with good jokes. It is an open blog where you can share you jokes with all the viewers. Investment Guru recommends viewers to go through this blog regularly. Jokes play an important role in changing the mood swings to positive and bring smiles & laughing moments. I believe most of you will agree that to spend some such moments everyday is necessary. So lets join this effort to bring smiles to all faces and lets have some fun with the fun blog. Contribute jokes to the blog and be part of this blog. You can send your jokes to
Cheers !
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The Third Eye : Teledata Informatics Ltd.

Teledata Informatics:Turning the Tide
Teledata is showing good strength with high volumes. The stock is currently trading at Rs.28 (52 Week low is 22 and high is Rs.63)
The biggest weakness of the stock is that a large part of the holding is with general public. FII's and mutual funds had a good holding in the stock in Dec,2004. However they sold off majority of the holding by March.
However, in last few sessions, a buying momentum is seen and this a indicator of interest in the stock at current levels.

Investment Guru recommends investor to keep a watch on the counter . A few more sessions of good volumes can turn the tide for the stock. Moreover, the company has come out with good results.
Investors willing to take some risk can enter the counter right away.

( I am an active boarder at money control and I am aware that many investors were trapped in this stock at Rs. 60 levels. However,at current levels,the stock looks promising )

Happy Investing !!
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NectLife IPO Allotment Status

The Nectar Life Sciences Limited's IPO allotment status is now available

  • NectLife Allotment Status
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    IPO Update: Vivimed Labs

    Excellent listing gains, pray for allotment
    Investment Guru recommends investors to apply for this IPO. The vivimed IPO is expected to deliver excellent listing gains due to various propositions. The company is offering 25 Lac shares of Rs.10 each at a premium of Rs.60.

    What makes this IPO offer excellent listing gains?

    Vivimed Lab has knocked the primary markets with an offer of 25 lac shares @Rs.70 per share.

    The unique thing about this offer is that out of 25 Lac shares, the company is offering 18.5 Lac shares to public. This will lead to a rush for the stock by FII's and mutual funds on the listing. The stock is expected to give excellent listing gains.

    The company is a leading manufacturer and exporter of API's. The company works in three segments viz., speciality chemicals, API's and generics.

    The company is poised for a strong growth in its export earnings. The company expects growth in exports at 80%.

    The clientele for this company includes leading companies in US and Euopean markets. In india, the company boasts of clients such as Hindustan lever, Marico & anchor.

    The offer comes at a P/E of 6.92 , which is very attractive given valuations of this sector which trades at a P/E of more than 15.
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    IPO Update: SRB Steels Limited

    SRB Steels: Do you dare to apply?

    SRB Steels has come up with an IPO offering 2 Crore shares at a price band of Rs.20-22

    Investment Guru Recommends investors to avoid this IPO.

    Why shouldn't I apply in this IPO?

    1. Considering the earnings of the company at Rs.2.99 per share, the offer comes at a P/E of 7.36 at the higher end of the price band. I would prefer to buy a quality steel stock like TISCO and JVSL that are trading at a P/E of 5.

    2. The company is a part of Jai Balaji group of companies belonging to jajodia family. Looking at the waythe companiess are structured in the group, it doesn't look like a professionally managed group. Also, the other companies in the group are not doing well.

    3. The Metal industry in general and steel sector in particular is going through a downward trend. The best approach is such cicumstances is to stick to quality stock.

    Happy Investing !!
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    IPO Update: Yash Papers Ltd.

    Yash papers limited has come with a public offer of 1.68 crore shares at an offer price of Rs.14 per share.

    Following are the points worth considering before applying to the public offer :

    1.The stock is already listed on BSE and is currently quoting at Rs.20

    2.The offer price comes at a P/E of 4. Let’s see how the stocks of its competitors doing in terms of P/E:
    Star Paper : P/E 9
    APPM: P/E 6
    West coast: P/E 10
    Shesasayee : P/E 5

    3.The paper industry is expected to grow at a stong pace. The per capita consumption of paper in India is 5Kg per annum as compared to the Asian average of 27Kg per annum.

    4.Yash papers is a market leader in the Kraft paper segment and has good presence even in Poster paper segment.

    5.The Net Asset Value of the company's share post this issue will be Rs. 18.23

    Inevstment Guru recommends Investors to apply for the IPO. However ,since the stock is already listed and we have visibility to the share price, investors should not expect extraordinary listing gains.

    Issue Opens: 30-Jun-2005
    Issue closes : 08-Jul-2005
    Registrar: Skyline Financial Services Private Limited

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    IPO Update : Provogue listing

    Provogue lists as per Expectation
    The Provogue stock today listed on the NSE at Rs.249. The stock touched intra-day high of Rs.299 and is currently qouting at Rs. 270.
    The listing is as per expectations and the stock has rewarded the few lucky shareholders who got allotment.

    The strategy

    Inevstment Guru recommends investors to book listing gains. They can re-enter the scrip later at lower levels in case they wish to hold for short to medium term.

    Happy Investing!!
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    Investment Guru Rules.......

    Investment Idea gives 85% return in 2 Months

    The debut Investment Idea by Investment Guru has shown its true colours !
    Investment Guru recommended investment in Karnataka bank at Rs.64 levels in the month of May-05 for a period of three months and the stock is today ruling at Rs.119.
    Felling left out ? Those viewers who have invested on Investment Guru's recommendation must be cheering up !!!

    Those who have missed the chance are advised not to lose heart. Keep a close watch on this blog for the upcoming Investment Ideas!!!
    Lots of Investment ideas to keep coming on this blog.
    Happy Investing !!

    Coming soon on Investment Guru
    Watch Inevstment Guru taking stock of its recommendation and telling you how much you would have earned following the recommendations ! Investment Guru SCORE CARD coming soon....
    Read More!

    IPO Update : Beeyu Overseas

    Good Stock, Modest Listing!
    The Beeyu Overseas stock has listed yesterday on BSE . Though the stock touched a high of Rs.20 as compared to offer price of Rs.14, it could not sustain it and closed at Rs.16.
    Investment Guru recommeds investors with long term mindset to hold to the stock. This stock will give a decent return in long run. Investment Guru puts a Rs.50 tag on this stock with 12-15 months perspective.

    Happy Investing ! Read More!

    Sector Watch: Media stocks

    Media Stocks put a super hit show !!
    The Media stocks have seen a considerable interest after the news broke out that Anil Ambani has taken a majority stake in ADLABS. The stock caught fire with high volumes. Looks like every investor wants to Invest in whatever Anil ambani invests in !!
    The other holdings on ambani group like birla corp, rallis India have also shown an upmove with higher volumes (though these are not media stocks)

    The stock in action today were UTV and TV Today. TV today has hit the upper band with huge volumes of 65 lac shares traded and another 5 Lac in line with no sellers.
    UTV bounced back with few weeks of lethargic show and moved up to Rs 180 before coling off to Rs. 172.
    Investment Guru is of view that the fire in TV Today stock will continue even in tomorrow's session before traders start booking profits.

    Next on Investment Guru ....
    Will the market sustain the rally ?
    Which are the stocks that are going to participate in the next round ?
    Is the market slowly and steadily moving to the uncherised stocks ?

    Get replies to these questions and many more on the upcoming article on Investment Guru blog.
    Stay tuned to read more !
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    The Third Eye : Polaris Software

    Polaris software has shown good strength in the last few sessions and has been able to break the resistance of 110-115 levels.
    The stock has shown an upcoming from the 98 levels and now is strongly placed at 125-130 range with strong volumes.
    The Third Eye recommends a watch on the counter as it make higher moves. Those who have invested at 110-115 levels should keep a hold on the stock.
    The stock looks good from a short to medium term prospective.

    Happy Investing!! Read More!

    IPO Update: Beeyu Overseas Allotment Status

    Dear Investors,
    The Allotment for Beeyu Overseas IPO has been done. Please check your deamt accounts to know how many shares you got alloted.
    To chart your strategy for getting the maximum out of the listing, stay tuned to Investment Guru !

    Happy Investing! Read More!

    Provogue IPO: Check your Allotment Status

    Dear Investors
    The Provogue IPO allotment is done and you can check the status of your applications .
    Click here
  • Provogue Allotment Status

  • The listing details will be updated on this blog soon!!
    Happy Investing! Read More!