Dear Visitors,
Investment Guru wishes all of you a Very Happy and prosperous new year.
Let us thank the year 2005 for giving us a wonderful time in terms of the increasing the shareholder's wealth and let's look forward to Year 2006 for a even more joyful journey of the stock markets.
I believe that the sensex should be able to touch the 10K mark by March,2006 before showing a consolidation phase.
My advice to all the visitors will be to take a resolution for this year that all your investments will be based on knowledge and understanding of a stock rather than a hearsay or rumour.
Investment Guru Blog will stand by you as your trusted partner in enhancing your investment wisdom.
Happy Investing !
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Post 9000 ! Beware of Speed Breakers
Stock Markets witness profit booking
Indian Stock markets got to taste the speed-breakers after zooming past the 9000 mark.
The sensex shed 170 pts. and nifty 55 pts. in a landslide fall. Huge selling was seen across the counters with investors seen cashing on to their gains of previous days. The Mid-cap and small cap index also fell by 2% each.
The current Scenario
Yesterday's selling can't be termed as abnormal. In a rising markets , bouts of profits bookings are a common phenomenon. However, to add spice to the fall was the unwinding of the December derivatives and the uncertainty on the Reliance post demerger scenario.
FII's have slowed down their pace of investments and the overall outlook for extreme short term has become bearish. FII's are also in holiday mood. The week ahead may see some more volatility.
Investment Guru's Outlook
Investment guru recommends investors to maintain their bullish outlook on the long term Indian Story. These downfalls are bound to happen in a market that is charting new territories. These downfalls should actually be used to build up positions in good stocks which are unnecessarily battered and hence will bounce back with improvements in sentiments.
Happy Investing!
Read More!
Indian Stock markets got to taste the speed-breakers after zooming past the 9000 mark.
The sensex shed 170 pts. and nifty 55 pts. in a landslide fall. Huge selling was seen across the counters with investors seen cashing on to their gains of previous days. The Mid-cap and small cap index also fell by 2% each.
The current Scenario
Yesterday's selling can't be termed as abnormal. In a rising markets , bouts of profits bookings are a common phenomenon. However, to add spice to the fall was the unwinding of the December derivatives and the uncertainty on the Reliance post demerger scenario.
FII's have slowed down their pace of investments and the overall outlook for extreme short term has become bearish. FII's are also in holiday mood. The week ahead may see some more volatility.
Investment Guru's Outlook
Investment guru recommends investors to maintain their bullish outlook on the long term Indian Story. These downfalls are bound to happen in a market that is charting new territories. These downfalls should actually be used to build up positions in good stocks which are unnecessarily battered and hence will bounce back with improvements in sentiments.
Happy Investing!
Read More!
Investment Idea : Aksh Optifibre Ltd.
Stock business outlook for the Turnaround candidate
company : Aksh Optifibre Limited (AOL)
CMP: Rs. 74
Short Term Target : Rs. 90 (2-3 Months)
Long Term Target : Rs. 120 (12 months)
Investment risk : Moderate
About the Company
Aksh Optifibres Limited is the second largest player in the Optical Fibre Industry. The company is mainly into manufacturing of Optical Fibres, OF Cables and FRP Rodes.
The company boasts of being the only company in the whole industry to manufacture OFC through co-extrusion process.
The company caters to the need of Telecom sector. In view of the strong Telecom growth story, AOL should gain immensly and should be able to turnaround its operations.
The company is undergoing a major expansion of its production capacity to cater to the growing demand of its products. The capacity expansion is estimated to be in tune of 50%.
The company is also undergoing a debt restructuring by transforming the high rate debt components to lower rate debts. This restructuring will show up on the improved margins of the company.
Turnaround to boost valuations
The capacity expansion and cost reduction initiative embedded with the strong industry outlook has made Aksh Optifibre a strong Turnaround candidate.
The company incurred a loss of Rs.3.24 crores in the last year on a turnover of Rs. 38 Crores. However, this year in six months only, the company has achieved a turnover of Rs. 47 crores and a profit of Rs. 8 crores. This gives a clear indication that the company is out of the blues and is on the verge of turnaround.
The company's order book is strong at Rs. 86 crores and is expected to swell further @ 50% given the strong demand for its products.
The stock is also recommended for a long term position since the real fruits of the performance will be available in FY07.
(Disclosure: Investment Guru has a position in the Investment Idea discussed. Investors are advised to use their discretion and read the disclaimer clause before acting on any recommendation discussed on this blog) Read More!
company : Aksh Optifibre Limited (AOL)
CMP: Rs. 74
Short Term Target : Rs. 90 (2-3 Months)
Long Term Target : Rs. 120 (12 months)
Investment risk : Moderate
About the Company
Aksh Optifibres Limited is the second largest player in the Optical Fibre Industry. The company is mainly into manufacturing of Optical Fibres, OF Cables and FRP Rodes.
The company boasts of being the only company in the whole industry to manufacture OFC through co-extrusion process.
The company caters to the need of Telecom sector. In view of the strong Telecom growth story, AOL should gain immensly and should be able to turnaround its operations.
The company is undergoing a major expansion of its production capacity to cater to the growing demand of its products. The capacity expansion is estimated to be in tune of 50%.
The company is also undergoing a debt restructuring by transforming the high rate debt components to lower rate debts. This restructuring will show up on the improved margins of the company.
Turnaround to boost valuations
The capacity expansion and cost reduction initiative embedded with the strong industry outlook has made Aksh Optifibre a strong Turnaround candidate.
The company incurred a loss of Rs.3.24 crores in the last year on a turnover of Rs. 38 Crores. However, this year in six months only, the company has achieved a turnover of Rs. 47 crores and a profit of Rs. 8 crores. This gives a clear indication that the company is out of the blues and is on the verge of turnaround.
The company's order book is strong at Rs. 86 crores and is expected to swell further @ 50% given the strong demand for its products.
The stock is also recommended for a long term position since the real fruits of the performance will be available in FY07.
(Disclosure: Investment Guru has a position in the Investment Idea discussed. Investors are advised to use their discretion and read the disclaimer clause before acting on any recommendation discussed on this blog) Read More!
Update on Narmada Chematur
I have got few queries from the readers of this blog to provide an update on the Investment Idea given in July on Narmada Chematur Petrochemicals Ltd (NCPL). The request was in view of the fall in the stock price pursuant to the news that NCPL will be merged with its parent company GNFC.
You can re-read the article on Investment Idea by Clicking Here
The stock was recommended at a price of Rs. 38 with a time frame of 12 Months and a target of Rs.70
The stock reached a high of Rs. 49.85 after the recommendation , however, fell down to Rs. 34 after the news of the merger.
GNFC is the promoter of NCPL and if the company is mulling a merger of NCPL to itself, I do not see it a s a setback to NCPL. Also, the announcement says that a merged possibility is being explored. Since the idea is at its initial stage , it would be difficult to predict what the management finally decides and what will be the swap ratio for the merger.
Looking at GNFC, with whom the company is getting merged, the financials looks good. The company has posted a 40% jump in the net profit in Q2 of this year. Even NCPL has registered good results. At this stage, Investment Guru is of the view that the merger may create synergies for GNFC and in turn should be eventually good for the shareholders.
However, it terms of share prices, a lot depends on the swap ratio for the merger.
Investment Guru is of the view that investors should hold on to the stock and watch for further developments in terms of the merger. The blog will keep you updated with any change in the outlook for the stock based on further developments. A new target price would be published on the blog once further visibility comes to the development on merger.
Happy Investing !!
Read More!
You can re-read the article on Investment Idea by Clicking Here
The stock was recommended at a price of Rs. 38 with a time frame of 12 Months and a target of Rs.70
The stock reached a high of Rs. 49.85 after the recommendation , however, fell down to Rs. 34 after the news of the merger.
GNFC is the promoter of NCPL and if the company is mulling a merger of NCPL to itself, I do not see it a s a setback to NCPL. Also, the announcement says that a merged possibility is being explored. Since the idea is at its initial stage , it would be difficult to predict what the management finally decides and what will be the swap ratio for the merger.
Looking at GNFC, with whom the company is getting merged, the financials looks good. The company has posted a 40% jump in the net profit in Q2 of this year. Even NCPL has registered good results. At this stage, Investment Guru is of the view that the merger may create synergies for GNFC and in turn should be eventually good for the shareholders.
However, it terms of share prices, a lot depends on the swap ratio for the merger.
Investment Guru is of the view that investors should hold on to the stock and watch for further developments in terms of the merger. The blog will keep you updated with any change in the outlook for the stock based on further developments. A new target price would be published on the blog once further visibility comes to the development on merger.
Happy Investing !!
Read More!
