Reliance Power will oversubscribe hopelessly
Everybody will not get much allotment in the Reliance Power IPO, because it will be hopelessly oversubscribed. So you need to now focus your eyes on what happens post-listing and when you take a look at the grey market then you worry a little bit, not a little bit more than a little bit because the grey market price is somewhere around Rs 900 that’s double of the IPO price. Whatever good to that one is heard from the management on the Reliance Power IPO and there were many positives, which came through from the media conference at Rs 900 its very difficult unless the market remains in this very frothy frame of mind on the sector its extremely difficult to justify that price because at Rs 900 you are talking about 2 lakh crore marketcap for Reliance Power, you got to look four-five years out and still you will be scratching your heads to justify that.
Future Cap Holdings still in nascent stage
Future Capital Holdings is all set to hit the primary markets with an offer of 64 lakh shares. The price band is in the range of Rs 700-765 per share.
It is very difficult to compare it to peers. The peers will be Indiabulls Financial Services or Reliance Capital. But the company is currently in a nascent stage. Out of the three areas, where it operates, only one is fully operational and the others are still being set up. So, it is very difficult to give valuations based on the current financials.
For the first half of the year, the company has posted a net loss of Rs 12 crore. It is very difficult to value the company based on the present criteria. You have to value it based on the future values and see how the businesses are likely to pan out. This company has three main businesses: one is the investment advisory services, under which they do advisory services for a lot of funds (onshore and offshore). Under this, they also operate PE sort of investments. That is where the main revenues are coming from, right now.
The other is the consumer finance business, which they are planning to rollout in the future. At the moment, they have a tie-up with Pantaloon Retail arm, where they have exclusive rights to supply consumer finance for all consumer durables that are being sold in Pantaloon showrooms.
Also, they would be rolling out Future Money, which will be like a distribution arm, which will distribute credit cards and insurance business.
If you look at the valuations, HSBC values the company at Rs 6,000 crore, while DSP Merill Lynch values it at Rs 3,550 crore. So, the IPO is somewhere in between the two valuations.
Monday, January 7, 2008
7 Jan 2007
Market closed on new high....
Sensex 20812.65
Nifty 6279.10
FMCG, Bank, Sugar up ....
Sensex could end yr at 23,000-23,500: Apurva Shah
According to Shah, interest rates could stabilise and start moving downwards. "Credit growth is likely to bottom out."
Oil prices are likely to peak and come off on back of a US slowdown, he said. Upcoming elections may lead to surge in orders in power space, he added.
Shah is bullish on banking and financial services. "We are positive on capital goods, engineering, and infrastructure. But are cautious on cement and industrial metals." He likes HPCL and BPCL in the refinery space and Bank of Baroda, ICICI Bank, and Yes Bank in the banking space.
RPL, ITC, L&T could go up by another 10%: Centrum Broking
Sugar space buzzing with stocks hitting new 52-week highs
The entire sugar space has been buzzing with several stocks hitting new 52-week highs.
There is definately good news in the pipeline, if one looks at the price movements for stocks like Bajaj Hindusthan which had gone down to Rs 120 on 23rd August but since then rallied to Rs 341 as on today maybe slightly higher or lower which is a 52-week high for itself.
Similar case for Balrampur Chini which was at a low of Rs 51 to Rs 123 today while Shree Renuka Sugars had gone down to Rs 462. So all of these majors actually trading at high prices - 52 week high or even 18 months high if so to say.
Sources say that Indian Sugar Mills Association has actually called for an immediate decontrol of the sugar release mechanism and the price levy mechanism and Federation of Co-operative Mills at least in Maharashtra is meeting tomorrow to discuss their stance on the issue.
This essentially contributes 10% of the total sugar, which any mill would produce and which is been sold in the country. While it maybe a near-term negative in terms of suppressing price movements because a lot of sugar might actually come in the markets and actually might suppress prices.
It’s a long-term positive because what is being mooted as the biggest positive for any industry especially the sugar industry would be complete decontrol of the sector and if this thus did come about and materialize, it essentially would be complete decontrol which essentially is something that people looking forward to.
Markets can go higher before Budget: Rare Enterprise
Kotak 30 declares 60% dividend
ITC, Dabur, Marico see rise in trading vols, delivery
Positive on banks, autos, realty: Bharati Axa Invst
Sensex 20812.65
Nifty 6279.10
FMCG, Bank, Sugar up ....
Sensex could end yr at 23,000-23,500: Apurva Shah
According to Shah, interest rates could stabilise and start moving downwards. "Credit growth is likely to bottom out."
Oil prices are likely to peak and come off on back of a US slowdown, he said. Upcoming elections may lead to surge in orders in power space, he added.
Shah is bullish on banking and financial services. "We are positive on capital goods, engineering, and infrastructure. But are cautious on cement and industrial metals." He likes HPCL and BPCL in the refinery space and Bank of Baroda, ICICI Bank, and Yes Bank in the banking space.
RPL, ITC, L&T could go up by another 10%: Centrum Broking
Sugar space buzzing with stocks hitting new 52-week highs
The entire sugar space has been buzzing with several stocks hitting new 52-week highs.
There is definately good news in the pipeline, if one looks at the price movements for stocks like Bajaj Hindusthan which had gone down to Rs 120 on 23rd August but since then rallied to Rs 341 as on today maybe slightly higher or lower which is a 52-week high for itself.
Similar case for Balrampur Chini which was at a low of Rs 51 to Rs 123 today while Shree Renuka Sugars had gone down to Rs 462. So all of these majors actually trading at high prices - 52 week high or even 18 months high if so to say.
Sources say that Indian Sugar Mills Association has actually called for an immediate decontrol of the sugar release mechanism and the price levy mechanism and Federation of Co-operative Mills at least in Maharashtra is meeting tomorrow to discuss their stance on the issue.
This essentially contributes 10% of the total sugar, which any mill would produce and which is been sold in the country. While it maybe a near-term negative in terms of suppressing price movements because a lot of sugar might actually come in the markets and actually might suppress prices.
It’s a long-term positive because what is being mooted as the biggest positive for any industry especially the sugar industry would be complete decontrol of the sector and if this thus did come about and materialize, it essentially would be complete decontrol which essentially is something that people looking forward to.
Markets can go higher before Budget: Rare Enterprise
Kotak 30 declares 60% dividend
ITC, Dabur, Marico see rise in trading vols, delivery
Positive on banks, autos, realty: Bharati Axa Invst
Friday, January 4, 2008
Shares Can be bought this Jan...
According to Market Analysts ,these below shares can be bought in this Jan...
APOLLO TYRES
-Buy at Rs 52-62
-Target Rs 78, stop loss Rs 50
ORIENTAL BANK
-Buy at Rs 270-305
-Target Rs 360-380, stop loss Rs 265
ITC
-Buy at Rs 205-222
-Target Rs 256, stop loss Rs 203
DABUR PHARMA
-Buy at Rs 79-89
-Target Rs 102-119, stop loss Rs 76
ISPAT IND
-Buy at Rs 68-79
-Target Rs 94, stop loss Rs 65
BPCL
-Buy at Rs 485-515
-Target Rs 574-610, stop loss 480
UNITECH
- Buy at Rs 460-540
-Target Rs 620-720, stop loss Rs 455
**All data as per recommendations..Pl. investigate yourself before investing.
APOLLO TYRES
-Buy at Rs 52-62
-Target Rs 78, stop loss Rs 50
ORIENTAL BANK
-Buy at Rs 270-305
-Target Rs 360-380, stop loss Rs 265
ITC
-Buy at Rs 205-222
-Target Rs 256, stop loss Rs 203
DABUR PHARMA
-Buy at Rs 79-89
-Target Rs 102-119, stop loss Rs 76
ISPAT IND
-Buy at Rs 68-79
-Target Rs 94, stop loss Rs 65
BPCL
-Buy at Rs 485-515
-Target Rs 574-610, stop loss 480
UNITECH
- Buy at Rs 460-540
-Target Rs 620-720, stop loss Rs 455
**All data as per recommendations..Pl. investigate yourself before investing.
Market Today
Indiam markets are not being affected by US and Asian Market slow down.Today NSE closed at 20669.59 which is 324 points greater than yesterday. Similarly NIFTY closed at 6266.90 which is 88 points greater than yesterday.
Bank,Metal and oild shares went up ...
Highest Gainer was Larsen and looser was Tata Moters.
Bank,Metal and oild shares went up ...
Highest Gainer was Larsen and looser was Tata Moters.
Thursday, January 3, 2008
Upcoming IPO
Currently few IPO are about to come in the market..These are:
Furure Capitals:
Issue price / Floor Price (Rs) 700-765
Application per share (Rs) N.A.
Minimum investment amount (Rs) N.A.
Issue opens 11-Jan-08
Issue closes 16-Jan-08
Reliance Power:
Issue price / Floor Price (Rs) 405-450
Application per share (Rs) N.A.
Minimum investment amount (Rs) N.A.
Issue opens 15-Jan-08
Issue closes 18-Jan-08
Manjushree:
Issue price / Floor Price (Rs) 45
Application per share (Rs) 45.00
Minimum investment amount (Rs) N.A.
Issue opens 31-Jan-08
Issue closes 06-Feb-08
Furure Capitals:
Issue price / Floor Price (Rs) 700-765
Application per share (Rs) N.A.
Minimum investment amount (Rs) N.A.
Issue opens 11-Jan-08
Issue closes 16-Jan-08
Reliance Power:
Issue price / Floor Price (Rs) 405-450
Application per share (Rs) N.A.
Minimum investment amount (Rs) N.A.
Issue opens 15-Jan-08
Issue closes 18-Jan-08
Manjushree:
Issue price / Floor Price (Rs) 45
Application per share (Rs) 45.00
Minimum investment amount (Rs) N.A.
Issue opens 31-Jan-08
Issue closes 06-Feb-08
Listed IPO...
Today Listing happend for two IPO's.
1.BGR Energy 2. Burnpur Cement
Burnpur Cement closed the day at Rs 49.70, with a gain of 314.17% over its offer price of Rs 12 per share and BGR Energy Systems at Rs 902, up 87.92% over its offer price of Rs 480 per share on the NSE.
BGR Energy got subscribed 120 times, which was significantly higher as compared to other issues. The reason is that the company is in engineering sector where it supplies equipment for power, refinery sectors. The sector is hot favourite among the investors. However, Burnpur Cement was subscribed just 14.79 times.
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