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May 03, 2010
Jaypee Infratech has come out with a public issue of 6 crore equity shares in the price band of Rs.102 to Rs.117 per share. The company is engaged in the development of the Yamuna Expressway and related real estate projects which is a 6 lane Expressway between Noida and Agra, with concession period of 36 years and also 1235 acres of land as real estate development.

Details of the Issue:
Issue Open: Apr 29, 2010 - May 04, 2010
Issue Size: Equity Shares of Rs. 10.
Issue Price: Rs. 102 - Rs. 117 Per Equity Share.
Market Lot: 50 Shares.
Listing At: BSE, NSE.

To apply or not to apply?

The Yammuna Expressway is expected to be complete by 2011 and has Toll Collection Rights for the next 36 years. Apart from this the company is involved in Building World Class Real Estate Development spread over of 1,235 Acres.

Some of the positives include ,JP Group’s expertise in executing Large Infrastructure projects and Unique Business Model – Tool Revenues and Real Estate Revenues.

But the valuation is the key question.According, to various brokerages, the valuation of Jaypee Infratech is in the range of Rs 100 to Rs 120. Hence at the lower end of the price band, the IPO seems okay. Otherwise one could wait for better opportunities post listing.
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May 02, 2010
Have you ever experienced having loans in the bank? Do you have credit cards? Well, it is normal for humans to have a debt. There are times that we are in the hard roads of life and need the help of others especially when it comes to financial problem. Sometimes we are short in money and needed to borrow money from other people or have some credit card account, however, if you don’t keep track with your debt, time will come that you will not be able to pay them and you cannot borrow from them anymore.

Therefore, in order to keep in track with our debt we need something that can help us. There are many solutions that you can find, you can ask a specialist to help you, but this one will cost you much. With the help of debt calculator you can keep yourself with your debt without paying and wasting too much money and besides using debt calculator is very much easy. So, how can debt calculators help you with your debt? As what I have said awhile ago, it is normal to one’s person to have a debt but we need to be very careful with our responsibility just in this case. Borrowing too much is not good so, it is better that you always keep in track with your debt so that it will not grow bigger and you have to control your debt also.

With debt calculator, the very important things that it can help you are that it will help you to budget your money. This calculator will keep you reminded with the balance on your credit card to avoid debt. All you have to do is to input the numbers and the calculator will do the rest of the task for you. It is quite simple isn’t? You don’t have to worry too much and pay attention too much to your credit balance. With this easy way to calculate your debts you can easily learn and secure your loans. With the fast technology that the world has today, this can be very easy.

NB: This is a guest post by Sandy Thomson.
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April 29, 2010
hydroelectric powerSatluj Jal Vidyut Nigam (SJVN) Limited is coming out with an IPO of 415,000,000 equity shares of face value Rs. 10 each.

The company is a hydroelectric power generation company, a 75:25 unlisted joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). Currently, the company is engaged in designing, planning, developing, examining, organizing, executing, operating, as well as maintaining hydroelectric power projects.

Details of the Issue:
Issue Open: Apr 29, 2010 - May 03, 2010.
Issue Price : Rs.23-Rs.26.(Retail Investors to get 5% discount)
Market lot: 250 shares.

So what's in store for retail investors in this IPO?

The expected EPS for current year is around Rs.2.5 and the Book value is at Rs.16.The stock is cheaper compared to its peers, but the issue price could have been priced lower. But still this is a good issue to apply for long term. Fundamentally good stock to buy & hold for long term and not for listing gains.
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April 28, 2010
ARSS Infrastructure recently came out with an IPO at a price of Rs.350. The issue was well subscribed and listed spectacularly at Rs.650. Currently the price is around Rs.1300, up more than 300% , so what's the buzz?

To start with, the IPO pricing was done wisely and it left a lot on the table for the investors. The company recently declared the current year's earnings and is well within market expectations. They have done about Rs.60 earnings per share and current price it is well priced at 20 times.

So moving forward, the company is expected to do about an EPS of Rs.110 for FY11 and considering at the industry average P/E of 15 times, the stock is more or less priced in.
Hence one can book profits in ARSS Infra considering its sharp run-up from 700 to current levels of 1300 and wait for substantial correction before re-entering this stock.
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April 07, 2010
masterandstudent-epsIt is earnings season again and various institutions and brokerages have come out with their Earnings forecast for Sensex 30 companies for FY11. Most of them have come out with their estimates in the range or Rs.1100-Rs.1250 for FY11 and Sensex target of about 21000, which is about 20% up from current levels of 18k.

Number crunching:
CLSA – FY 11 EPS Rs 1,046.
Morgan Stanley – FY 11 EPS Rs 1,232.
Deutsche Bank – FY 11 EPS Rs 1,10.
UBS – FY 11 EPS Rs 1,146.
Edelweiss – FY 11 EPS Rs 1,080.
Merrill – FY 11 EPS Rs 1,100.

What does these numbers indicate for an investor?

Looking at the above numbers , the consensus EPS is around Rs.1100 and the Sensex at the higher P/E band of 20, would be at 21k, which is not totally unjustified considering higher growth and EPS for the year FY12.Hence any sharp decline would be a buying opportunity, particularly below 15 times forward earnings i.e., below 15k.

But this correction isn't coming yet and keeps elusive.Instead of timing the market, one could always look for investments in Mutual Funds through SIP route, so that one need worry about ups and downs of the markets and still be able to gain in the markets.
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March 07, 2010
National Mineral Development Corporation - NMDC is Coming out with its FPO on March 10. The issue is open from March 10 - March 12. The Promoter, Government of India, is to announce the price band on March 9, one day before the issue opens.

Let us do some number crunching on its past performance, so as to arrive the expected price band. For FY09, the total income of the company was at Rs. 8,575 crores with PAT at Rs. 4,372 crores, resulting in an EPS of Rs.10 with a Book value of Rs. 29. For FY10, the EPS estimates are at Rs.10 and book value of Rs. 39.

The other large cap stocks in this sector are Sesa Goa and GMDC which quote at 19 P/E and 18 P/E, respectively. Sesa Goa at Current price quotes at Price to Book Value of 7 and GMDC at P/BV of about 4.

Hence going by these numbers, NMDC between 250-270 would be a reasonably price to apply.

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March 03, 2010
NSE has launched a desktop application 7FM Financial Money Manager which helps investors to track their portfolio investments powered by NSE Data right from their desktop. This application is developed through Fidoh and contains lots of features.

The following components are required to run the application.
1.Windows Installer 3.1
2.dotNET Framework 3.5 SP1
3.SQL Server Compact 3.5

The features are user friendly and give complete details about anyone's portfolio.
The application can be downloaded from Fidoh.
Just give it a try and post your feedback and comments.

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