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

Click here to check Allotment Status Read More!

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.
Read More!

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!