Listed Indian PSU banks' performance
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NSE New Indices - Alpha, High Beta, Low Volatility
These are strategic indices, which are designed on the basis of quantitative models / investment strategies to provide a single value for the aggregate performance of a number of companies. The companies must rank within the top 300 companies by average free-float market capitalization and aggregate turnover for the last six months.
CNX Alpha Index:
CNX Alpha index aims to measure the performance of securities listed on NSE with high Alphas, which are measured on the basis of their risk-adjusted value. Weights of securities in the index are assigned based on the alpha values. Security with highest alpha in the index gets highest weight.
CNX High Beta Index:
CNX High Beta Index aims to measure the performance of the stocks listed on NSE that h ave High Beta. Beta can be referred to as a measure of the sensitivity of stock returns to market returns. This index can be used by those who are looking for high-risk-high-return category of stocks.
CNX Low Volatility Index:
CNX Low Volatility Index aims to measure the performance of the least volatile securities listed on NSE. This index can be used to create a portfolio of least-volatile securities which shall curb the downside during the bear phases.
All the above indices have 50 stocks each in their respective index and they will be calculated on an end-of-day basis and their closing value would be available the NSE.The EOD Data and stocks comprising of these indices are available in NSE .
Tara Jewels Ltd IPO Subscription Status
Tara Jewels Ltd IPO Subscription status as on 23/11/2012
Overall 1.98 times Issue Subscription
QIB (Qualified Institutional Investors ): 1.49 times Subscription
NII (Non Institutional Investors): 3.1 times Subscription
RII (Retail Institutional Investors): 2.05 times Subscription
Tara Jewels Ltd IPO Subscription status as on 22/11/2012
Overall 16% Issue Subscription
QIB (Qualified Institutional Investors ): 0 Subscription
NII (Non Institutional Investors): 0 Subscription
RII (Retail Institutional Investors): 40% Subscription
Tara Jewels Ltd IPO Subscription status as on 21/11/2012
Overall 4% Issue Subscription
QIB (Qualified Institutional Investors ): 0 Subscription
NII (Non Institutional Investors): 0 Subscription
RII (Retail Institutional Investors): 4% Subscription
Tara Jewels Limited IPO Review
Issue Highlights
| Issue Period | 21/11/12-23/11/12 |
| Price Band | Rs. 225-230 |
| Face Value | Rs. 10 |
| Lot Size | 50 |
| Issue Type | 100 % Book Building |
| Industry | Gems & Jewellery |
| Listing | BSE,NSE |
| Registrar | Link Intime India |
| Issue size | Rs. 179.5 crore |
| Maximum Retail Subscription Limit | Rs. 1,95,500 (17 Lots) |
Issue Details
Offer for sale: of Rs. 70 crore by Fabrikant HK Trading Ltd.
Fresh equity: Rs. 109.5 crore
Industry Analysis
India is the largest consumer of gold in the world importing 970 tonnes of gold in the financial year 2011 and 95 % of this gold found its way into jewellery manufacturing. India is also a leading diamond processing nation with a market share of 60 % in value terms (and 90 % in volume terms).India with its low-cost skilled labour force having expertise in jewellery manufacturing and diamond processing-cutting, polishing and setting-qualifies for the leadership position in gold & diamond jewellery manufacturing .Gems & jewellery sector is predominantly an export oriented industry. In FY 2011, Gems & Jewellery sector accounted for 17.5 % of India’s total merchandise exports amounting to 43 billion US dollars. Since FY 2002, Gems & Jewellery industry has been growing at a CAGR of 21.33 %.In India, retail jewelry-manufacturing accounts for only 4 % of the total jewellery market while rest is dominated by unorganized players comprising local goldsmiths and small neighborhood jewellery shops.
Company Analysis
The company is an integrated player of the industry with expertise in designing and retailing jewellery and has been conferred with the ‘Star trading House‘status by the Ministry of Commerce & Industry .
Tara jewels limited is engaged in following business activities-
1. Jewellery manufacturingwith manufacturing units in Panyu (China) and rest three in Mumbai (2 units in SEEPZ and 1 in MIDC)
2. Jewellery export to 19 countries
3. Jewellery retailing under the brand name Tara Jewel Ltd from 30 existing stores
The product portfolio of Tara Jewels Ltd includes gold, silver, platinum, Honeydium and Pristinium with or without studded precious stones and its client list includes reputed names like Christ Uhrean & Schmuck and Walmart. The company primarily exports to Australia, China, Canada, European Union (12 countries), South Africa, UAE, UK and USA.
Strengths
· The company is presently having 30 retail outlets and plans to open 20 new retail outlets
· Tara Jewel Ltd holds a leadership position in jewellery export sector
· The company employs high end technology and machines for manufacturing of precision oriented jewellery
· Tara Jewels Ltd maintains long term relationships with customers by collaborated brands like Heart2Heart, Candy Hearts, Snow Diamonds and Cherished Hearts.
Concerns
· Being a predominantly export oriented company; dollar-rupee exchange fluctuations could be fatal for the company.
· Alike all export oriented companies rising rupee is detrimental to its profitability
· The company’s foray into retail business with its limited operating history makes it vulnerable to the fierce competition posed by the established players
· A major fall in gold and raw diamond prices could be fatal for the company as gold and diamond constitute for more than 90 % of the total raw material cost
· Top 10 customers accounted for 70 % of the total export revenue and such type of client concentration poses risks like pricing pressure sudden volume drop owing to order cancellations etc. might affect the profitability
· Income from the USA accounts for the 40 % of the total income and any slowdown in the USA could severely affect the profitability of the company.
· Net cash flow from operations in negative for FY 2012
Objects of the Issue
1. To raise funds for establishing new retail outlets : Rs. 66.48 crore
2. Existing loan disposal: Rs. 50 crore
3. Listing is supposed to enhance the brand value
4. Issue related expenses: NA
Financial analysis #
· Post issue equity considered for the calculations
· FY 2012 Financial data used
| Parameter | Value |
| P/E | 10.4 |
| P/B | 2 |
| Return on Equity (ROE) | 19.5 % |
| Profit CAGR (4 year) | 25 % |
| PEG | .42 |
| Net Profit Margin (NPM) | 4% |
| Current Ratio | 1.2 |
| Market Cap to Sales Ratio | .4 |
| Debt Equity Ratio | 3.2 |
| PEG | .2 |
| Return on Capital employed | 25 % |
| Inventory Turnover Ratio | 2.37 |
| Interest Cover | 1.5 |
| Net Asset Per Share | Rs.113 |
Comparison with the peers #
· Peer data for FY 12 as per moneycontrol site as on 20/11/2012
| Peers | P/E | NPM | ROE | Debt/Equity |
| Titan Industries Ltd. | 39.97 | 6.71% | 41.87% | .07 * |
| Gitanjali Gems | 15.3 | 3.28 % | 9.81% | 1.01 |
| Goenka Diamonds | 43.21 | 3.84% | 7.36% | .41 |
| Renaissance Jewellery | 3.08 | 5.79% | 13.84% | .63 |
| Tara Jewels Ltd | 10.4 | 4% | 19.5% | 3.2 |
· * FY 2011 figure
Inference
Prima-facie fundamentals of the company looks intriguing but underlying weaknesses can’t be ignored. Though Tara Jewels is an export leader but presently it is not having a proven jewellery retailing track record. Tara jewels had negative ‘Cash flow from operations’ for the financial year 2012 and the same was counter balanced by higher borrowing resulting in a higher debt-to-equity ratio and problems in interest payment. Besides, geo-political risks like slowdown in USA and any major fall in gold prices would be fatal for the company as we have seen in FY 2009 due to global recession Tara jewel saw its net profit contracted by 67%.In a way to repay debt and for increasing its retail footprint this issue is being floated and the company has already allotted 18 lakh shares to Crystalon Finanz AG at the price of Rs. 225 per share in Pre-IPO placement. Tara Jewel is not a value buy but it has registered a lucrative growth in its sales and profit over last 4 years and investors who are comfortable with the underlying risks may apply for this issue. If Tara Jewel continues to grow in future and performs well on the jewellery-retailing front this stock could fetch handsome returns in future provided favorable geo-political situation and broader markets not going into a tailspin.
Disclaimer
Analysis is for the information purpose only. Though due diligence has been taken while preparing this report, analyst shall not be responsible for any error and shall not bear any financial liability to the users of the report.
How to find similar tickers in Amibroker databases ?
We often need to find tickers having similar key worlds like 'holding', 'infra' etc in our Amibroker databases.
For this a very simple AFL code can be used.
Write your keyword (keyword INFRA being the default) in the 'Parameters' field of the Automatic Analysis window strictly in capital letters else you shall not get any results.
keyword=ParamStr("Keyword in Capitals","INFRA");//use Capital Letters only
//enter the string/keyword which you want to search in tickers
if(StrFind(Name(),keyword))
Filter=1;
AddColumn(C,"c",1.2);
AddColumn(Status("StockNum"),"no",1);
For this a very simple AFL code can be used.
Write your keyword (keyword INFRA being the default) in the 'Parameters' field of the Automatic Analysis window strictly in capital letters else you shall not get any results.
keyword=ParamStr("Keyword in Capitals","INFRA");//use Capital Letters only
//enter the string/keyword which you want to search in tickers
if(StrFind(Name(),keyword))
Filter=1;
AddColumn(C,"c",1.2);
AddColumn(Status("StockNum"),"no",1);
 |
| AFL displaying tickers with 'OIL' keyword |
The Top-20 best returns- Diwali to Diwali
Since last Diwali following stocks managed to deliver awesome returns while benchmark indices fetched investors a meager returns in the 8-10 % range.
| Scrip | Return % | Sector |
Goenka Diamonds | 661 | Gems & Jewellery |
| Wockhardt Pharma | 278 | Pharma |
| JK Laxmi Cement | 228 | Cement |
| Vakrangee Software | 213 | Software |
| JK Cement | 194 | Cement |
| Vaibhav Gems | 180 | Gems & Jewellery |
| Heritage Foods | 163 | Food Processing |
| Amar Raja Batteries | 148 | Auto Ancillaries |
| VGuard | 128 | Electricals |
| Shree Cement | 128 | Cement |
| Ajanta Pharma | 125 | Pharama |
| Geometric Software | 124 | Software |
| Atul | 123 | Speciality Chemical |
| Dishman Pharma | 123 | Pharma |
| helios & Matheson IT | 123 | Software |
| 20 Microns | 117 | Minerals |
| Zicom Security Systems | 115 | Security Systems |
| MCDowell No. 1 | 114 | Liquor & Spirits |
| Madras Cement | 114 | Cement |
AFL to mark periodic highest/lowest close on the chart
A couple of days back, I had written an AFL required by a boarder of a forum I frequent which marked highest/lowest close on a chart by placing a hollow colored rectangle near the close price and printed highest/lowest close value on the stock chart.
We are often required to ascertain the highest/lowest value for a a period and this AFL caters this need. We get highest/lowest price bars without actually straining our brain especially in a candlestick chart.
One can change the period as per his requirement while 7 being the default value.
Desired AFL is as follows:
prd=Param("Period",7,5,5000,1);
Hv=LastValue(HHV(C,prd));Lv=LastValue(LLV(C,prd));
t1=H*1.01;t2=L*.998;
bi=BarIndex(); Lb=LastValue(bi);
Hbi=LastValue(ValueWhen(C==Hv,bi));
ph=LastValue(ValueWhen(bi==Hbi,H))*1.01;
Lbi=LastValue(ValueWhen(C==LV,bi));
PlotShapes(IIf(bi==hbi ,shapeHollowSquare,shapeNone),colorTurquoise,0,t1);
PlotShapes(IIf(bi==lbi ,shapeHollowSquare,shapeNone),colorDarkYellow,0,t2);
dch=LastValue(ValueWhen(bi==Hbi,C));
zz=dch*1.01;
dcl=LastValue(ValueWhen(bi==lbi,C));
yy=dcl*.99;
GfxSetBkColor(colorWhite);
GfxSetTextColor(colorDarkGreen);
GfxTextOut("Highest "+prd+" Day Close:"+dch,250,50);
GfxSetTextColor(colorRed);
GfxTextOut("Lowest "+prd+" Day Close:"+dcl,250,150);
We are often required to ascertain the highest/lowest value for a a period and this AFL caters this need. We get highest/lowest price bars without actually straining our brain especially in a candlestick chart.
One can change the period as per his requirement while 7 being the default value.
Desired AFL is as follows:
prd=Param("Period",7,5,5000,1);
Hv=LastValue(HHV(C,prd));Lv=LastValue(LLV(C,prd));
t1=H*1.01;t2=L*.998;
bi=BarIndex(); Lb=LastValue(bi);
Hbi=LastValue(ValueWhen(C==Hv,bi));
ph=LastValue(ValueWhen(bi==Hbi,H))*1.01;
Lbi=LastValue(ValueWhen(C==LV,bi));
PlotShapes(IIf(bi==hbi ,shapeHollowSquare,shapeNone),colorTurquoise,0,t1);
PlotShapes(IIf(bi==lbi ,shapeHollowSquare,shapeNone),colorDarkYellow,0,t2);
dch=LastValue(ValueWhen(bi==Hbi,C));
zz=dch*1.01;
dcl=LastValue(ValueWhen(bi==lbi,C));
yy=dcl*.99;
GfxSetBkColor(colorWhite);
GfxSetTextColor(colorDarkGreen);
GfxTextOut("Highest "+prd+" Day Close:"+dch,250,50);
GfxSetTextColor(colorRed);
GfxTextOut("Lowest "+prd+" Day Close:"+dcl,250,150);
United Spirits- the Stock of the day
Vijay Malllya led United Spirits (USL), the largest Indian liquor company; saw its shares wildly spurting on the bourses today.
USL shares rose following the declaration of the deal-price of Rs. 1,440 at which Diageo-the UK based liquor major famous for its iconic liquor brand Johnnie walker - will buy 27.4 % stake in the USL.
As per the regulations, Diageo shall have to bring an open offer to buy 26 % shares from public shareholders. USL saw a stupendous rally of 34.7 % in its share price and at the end of the day USL share managed to close at Rs. 1832.95 on the National Stock Exchange.
Funds mobilized by the USL shall help the company to pare its piling debt while Diageo shall be benefited with the USL's distribution channel to promote its own brands.
Rally in the USL cascaded into other liquor shares like Radico Khaitan, Global Spirits etc which also soared 5-6 % while anothe brewery stock GM Brewery soared 20 %.
Rakesh Juhunjhunwala portfolio performance- Diwali to Diwali
RK is a long term investor and does not get perturbed when his shares perform unfavorably for a year or two.
| Ticker | LTP | Return % |
GEOMETRIC | 103 | 122 |
| AUTOIND | 167 | 52 |
| TITAN | 294 | 36 |
| KARURVYSYA | 471 | 25 |
| LUPIN | 585 | 21 |
| GEOJITBNPP | 22 | 20 |
| PANTALOONR | 198 | 8 |
| ATFL | 428 | 8 |
| CRISIL | 930 | 7 |
| RALLIS | 157 | -4 |
| PIPAVAVDOC | 82 | -5 |
| VICEROY | 25 | -8 |
| HINDOILEXP | 98 | -10 |
| PFOCUS | 48 | -14 |
| NCC | 41 | -23 |
| DELTACORP | 74 | -24 |
| RBN | 43 | -33 |
| ALPHAGEO | 55 | -34 |
| ORCHIDCHEM | 103 | -35 |
| PRAJIND | 46 | -44 |
| VIPIND | 78 | -54 |
| SUBEX | 14 | -66 |
| A2ZMES | 60 | -67 |
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