IPO Update: Suzlon Energy

Suzlon, Leave something for Investors !

Suzlon energy has entered the capital markets with an issue of 2.93 crore shares of Rs. 10 each at a price band of Rs.425 – 510.

Investment Guru is of opinion that the issue is priced very aggresively by the company and hence lefts very less on the plate for Investors from fundamental prespective. However, with IPO boom going on in the markets it would not be a surprise if the issue rolls out some listing gains. Those who are interested in applying are advised to apply maximum of two times their expectation of allotment. From valuation perspective, the issue is worth avoiding.

However from the subscription patterns till date, there has been huge subscription from FII”s. Retail Investors are missing from the show and against an allocation of 86 Lac shares, applications for only 92,000 shares has been received.

Let’s Dig into the company:

The object of the issue is to fund the expansion plans, capitalisation of subsidiaries, construction of new corporate office, Redemption of preference shares and exploring growth opportunities.

Suzlon is a Total wind power solutions company. The company is India’s largest in its class and ranks among top ten in the world.

The company clocked a turnover of 1965 crores durting FY05, registering an increase of 125% over previous year.

The net profit of the company stood at 365 crores for FY05, a 151% increase over pervious year.

The issue comes at a FY05 P/E of 34. If we take the weighted average EPS of last three years, the issue comes at a P/E of 52.

The company considers companies like ABB, Siemens, BHEL and NEPC as its peer and the the peer Group average P/E comes to 29.

The company has Book Value of Rs.93 per share. Hence the issue comes at 5.48 times the Book Value.

Registrar: Karvy
Issue opens: 23-Sep-2005
Issue closes: 29-Sep-2005

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Talbros public issue: Allotment Status

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Senxex trades weak, Fundamentals Intact

Investors should not Panic, India Story Intact

The sharp fell in the stock markets witnessed yesterday resulted in panic selling among investors. The markets opened today on a positive note, however that was shortlived. Soon the sensex dipped again to Red. It is true that in this wave of correction in small and midcap stocks, many good stocks also took the beating. Even large cap stocks came under the fire.

Let's see what have changed in the last few days. I do not find anything missing except the momentum and hence those stocks which were running just on momentum and didn't had any fundamentals to justify their momentum fell like nine pins.

It's important for small investors to avoid a temptation of making fast bucks and buy stocks on hearsay.
However, the silver lining is that those investors who are sitting on cash and waiting for the markets to correct will find some opportunities to enter the markets at lower levels. The long term sentiments is still bullish.

Stocks which look good pick for Investments include Gujarat Ambuja, Hindalco, Reliance Industries, Moser Baer, Dishman Pharma, Allahabad Bank and Jindal Viaynagar

Happy Investing !

Next on this Blog:
IPO Update :Southern Online

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Markets taste Freefall, Sensex dips by 265 Pts.

Exit Penny Stocks , Use dips as Investment Opportunity

The sensex had a free fall today ! Selling was witnessed acrosas the caps and stocks. The market breadth looked negative with huge selling acroos the markets.

The free fall has come after Sebi and regulatory authorities sending warning signals on the way markets was approaching to higher levels. Filters have been revised on a whole lot of small and mid cap srtocks and many stocks have been put to Trade to Trade segments.

In one way , the crash cab be termed as healthy sign for the markets. This will help protect small Investors being ruined of thier precious money by investing in unknown penny stocks.

Investment Guru recommends smart Investors to make use of this opportunity to invest in some good counters which have also come down in line with market sentiments.
Tomorrow's trade will be crucial as funds may start buying selectively in value stocks, while continued selling is expected in most of the mid caps and penny stocks.
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FCS bucks the Trend

Stocks lists at 400% premium
Many of the investors were taken aback today to see FCS software ruling at Rs.199 on the bourses. It is the only IPO after the Impex Ferro which has shown such a jump. This shows the frenzy among the buyers for the IPO's on the listing day. Anyway, on the other hand it is good opportunity for those who got allotment. Investment Guru advice traders to be cautious as the stock may become more volatile during the day. Read More!

FCS Software -Listing Strategy (Sep. 21)

As per NSe circular, FCS software is making its debut on stock exchange on Wednesday,September 21, 2005.

The stock is expected to list ion the range of Rs.80-90. Investors are advised to book profit on 50% of their stock position within first 2 hours of trading. For the balance , it is advised to watch the demand-supply pattern for the stock. Recently listed IPO's like Amar remedies have shown good strength and the momentum seem to continue.
With lot of volatility seen on listing days, I would avoid trading in the stock , however , investors ready to take risk may short over Rs.100 levels to cover up during the day. Similarly , a position can be built in the stock at around Rs. 70 levels to set off at higher levels during the day.

Wish all the visitors happy listing and smart money tomorrow!! Read More!

FCS Software - Allotment Status

Click here to check Allotment Status Read More!

Investment Idea : Gujarat Ambuja Cement Ltd.

Cementing the Infrastructure story
CMP : Rs. 73
Target Price: Rs. 105
Time frame : 6 Months
Risk : Moderate

Investment Guru recommends to consider investing in Gujarat Ambuja Cement at the current levels. The Cement Sector is poised for strong growth both in terms of Volumes and price. The demand for cement is expected to inch up with infrastructure companies bagging large infrastructure projects. The price of cement bags is also expected to go up by Rs. 5-7 . This will help the cement companies grow both the top line and bottomline.
Gujarat Ambuja with its strong brand presence would be a beneficiary of the infrastructure boom.

Happy Investing !!

(Please read the Disclaimer clause before acting on any Investment Advice on this blog) Read More!

Investment Idea-3 exceeds Target !!

Investment Idea -3 on Skumars Nationwide has reached its target well ahead of the time, thanks to the booming stock markets. The stock was recommended on Investment Guru Blog at Rs.23 and is currently qouting at Rs. 56. This translates in to a return of 143 % in just 4 months time frame.
Investment Guru recommends Investors to hold on to the stock. The Target for the stock is now Revised to Rs. 90 with a time frame of 1 year.

Happy Investing !!
The Next Investment Idea is coming soon on Investment Guru Blog Read More!

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Happy Investing !!

Coming soon on Investment Guru Blog
Investment Idea #7
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Investment Guru rules - Spice jet reaches Target !

The Investment Idea No. 2 Royal Airways (known as Spice jet ) which was recommended in later part of May2005 has not only reached its target but has also surpassed it by a big margin.
The stock was recommended on this blog at a price of Rs.63 with a three months time frame and a target price of Rs.90. The stock is currently qouting at Rs. 115. This gives a absolute return of 83% in just 3 months.

Keep a watch on the blog for more Investment Ideas !
Happy Investing!! Read More!

IPO Update : TAC Ltd.

Keep your expectations Low
Talbros Automotive Components Limited is coming with a second public offer aggregating Rs. 50 Crores. The issue comes at a price band of Rs. 90-102 per share. The Share of the company is currently trading on BSE at Rs. 138. The stock has hit a 52-week high of 349 and a low of Rs. 60.

Investment Guru recommends investors to apply in the public offer. However, investors with eye on listing gains are advised to keep their expectation low as the money on the table is already visible and the stock price is expected to come down on listing. Investment Guru is of view that the offer should give a return in the range of 20-25% on its issue price. From long term perspective too, the stocks looks good at the offfer price.

Let’s dig into the company:
The objective of the public offer is to fund the setting up of forging plant at Faridabad to meet internal requirements.

The investment is in joint venture with Nippon Leakless Corporation, Japan for catering mainly to Honda group of companies within the country

The promoters are also investing in the public issue, which is a good indicator.

The company is the largest exporter of Gskets.

The clientele of the company includes Tat Motors, Ashok Leyland and swaraj.

The company is a profit making company since 1959 and has a dividend track record for 48 years. The last dividend declared was 20%.

The company has made six issues of Bonus shares till date. The last bonus isse of 5:2 was made in Dec.2004.

The major competitors of the company are Banco and Victor Gaskets.

The offer comes at a multiple of 3.66 times the Book value of the company.

For the quarter ended June, 2005, company has clocked sales of Rs.29 crores and a net profit of 1.59 Crores

Issue opens : 01-Sep-2005
Issue Closes: 09-Sep-2005
Registrar : KarvyComputershare Pvt. Ltd.
Mode : 100% Book Building

Coming soon on Investment Guru :
Does the Sensex makes Sense ?
The stock markets are booming with index touching new highs. The rally is spread acrss large , mid and small caps. How should a small investor approach the markets at this juncture? Should sensex be taken as a guide for making investment decisions?
Watch out for a crtical analysis of the sensex and the stock movements and the investment policy to be adopted in a bull run. Exclusively on Investment Guru Blog !

Read More!