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Lord Jesus Christ Says...

Treat others as you want to be treated. Matthew 7:12 states it that simply. Improve your life today by treating those around you with kindness and respect.

1 Aug 2015

DIVIDEND PAYING COMPANY SHARE PRICE BELOW 20/-

Hi friends, it was the worst of years and it was the best of years. The Indian economy experienced one of the most challenging slowdowns in a decade, reporting a sub-5% GDP growth for the second year running in 2013-2014. In such a environment it would have been reasonable to report flat revenues and profits and blame it on the economy.


JVL Agro Industries Ltd. reported revenue of Rs 4405.31 Cr in 2013-2014 compared with Rs.3837.38 Cr in 2012-2013, a growth of 14.80% over the previous financial year. The fact that the company reported only 9% marginal increase in net profit during the year to Rs.61.26 Cr compared with Rs.60.37 Cr in 2012-2013 must be viewed favorably considering the rupee reported its sharpest two- way movement in years weakening to an abysmal low of Rs. 68 per dollar in August, 2013.


JVL Agro formerly known as jhunjhunwala Vanaspathi Ltd incorporated in the year 1989. The fact that they have a large plant in Haldia has made it possible for them to establish an indelible marketing foot print across a number of states namely-West Bengal, Chhattisgarh, Jarkend, and North east states. The company launched the Royal brand of mustered oil directed at the premium segment, one of the many instances of the company moving from the low- mid consumer segment to the premium segment. The company launched a bakery product in preparation of its evolution form edible oil to a food products company. The company launched cotton seed oil, which helped widen the product mix and enabled the company to enter a niche category.


The company took on lease a plant (15,000 TPM) belonging to KS Oil Ltd to supplement the existing capacity of the Haldia facility, validating the success of the said facility and its assets- light business model. The company promoted JVL Mega Food park (POT) ltd. to commission an 80 –Acre Mega food Park in Bihar, which received in approval from the Central Ministry. This project is under construction. The mega food park will deepen the company’s presence in the country’s agri infrastructure space and serve as a foundation for its extension to fast growing FMCG sector.


 The company expect to start manufacturing its products from an international location (Africa) shortly,establishing its brand and then setting up a unit there. In view of the above initiatives, the company expect to report a topline of Rs. 5000 Cr in 2015-2016 with a proportionate increasing in profit. Their product brand JHOOLA (vanaspathy,refined soya oil,pamolin,mustard oil, blended oil. Premium mustard and soya been oil etc.) are very famous in India except south India, They have manufacturing facilities at Alwar, Nagpur, Bihar, Haldia (total capacity 3555 MTPD)


Financials—Equity capital- 16.79 Cr, Price of share 19.50/-, Market cap-324.66 Cr, PE 6.18. EPS 3.73, Book value of share-31.49, Dividend-20%, Face value of shares- Re.1/-, Industry PE-14.25, Reserve excluding revaluation reserve- 508.07 Cr. Total sales in Cr for the period from (2011-2015)2175.33, 2915.29, 2837.38. 4405.31 and 4403.88. Net profit in Cr for the period from (2011-2015) 54.27, 62.16, 60.37, 61.26 and 62.63. Dividend history from 2009to 2015—regularly paid 20%.


Share holding pattern—Promoters-52.73%, other companies-18.34%. General public 14.85%, Foreign institutions 13.40%, foreign NRI-0.54%, others 0.09, financial institutions-0.05%. This company is a profit making company and paying dividend @20% pa and they are going to complete their expansion plans in time, and its share is available at Rs 19.50, look very attractive for long term investment,


Try your luck.                                                      See you later.

31 Jul 2015

REASON FOR SELLING SHARES


Hi friends, though we primarily advocate long term and buy and hold investment strategies, this does not mean that shares should never be sold. Change is the law of life. There is no share which can be bought and forgotten forever. What was a good buy last year may be a better sell a few years hence. Therefore, selling decisions cannot be avoided altogether. The long term or buy and hold investor can postpone and restrict selling decisions in his overall investment strategy, but he cannot eliminate them completely.


Selling becomes necessary when you find that you have made mistake in your initial selection of the share. It enables you to rectify your mistake and cut short your losses. Your investment portfolio needs to be periodically reviewed and constituted by selling shares which have outlived their usefulness and have no further growth possibilities. Apart from enabling you to get rid of such dead wood, selling will provide you with an opportunity to adjust your portfolio to changed economic conditions, switch over from slow-moving shares to fast moving shares, and from sunset industries to the newer, faster growth sunrise industries


Selected periodic selling will enable you to take advantage of market swings and new buying opportunities. Selling also becomes necessary for regular adjustments of capital losses for tax purposes. Sometimes selling also becomes necessary for providing regular spending money or for meeting unforeseen expenditure.


Thanking you,        See you tomorrow with a share recommendation.

30 Jul 2015

TIPS TO BUY SHARE

Hi friends, If you have a promising growth share in mind, and you are only looking for an opportune moment and price for buying it, then the best time to do so would be around the middle of its accounting year. Suppose a company’s accounting year ends on 31st December, then the best time to buy its shares would be around June. This is the time when most investors and stock market operators lose interest in the share. The enthusiasm aroused by the previous years working result wanes, dividends have been distributed and there is nothing to look forward to except the current years working results, which appear too distant to arouse much excitement. This is the best time for picking up the share at a relatively low price- it may even close to its lowest recorded price of the year.


Share price usually record a sharp rise just before an expansion project of a company goes into commercial production. If you are a buyer, then you should do your buying a month or so before this happens. On the other hand, if you are a seller you should sell a couple of months after the plant goes into commercial production so that you can take full advantage of that price rise.


 Companies often issue press-release about their expansion plans, diversification plans, plans to issue better-selling new products, rising order book position and proposals to issue bonus shares, right shares, and right convert able debentures etc. News of this nature has bullish effect on share prices. Therefore, if you want to buy shares in such a company, do not delay placing a buy order with your broker. Ideally it would be best if you buy the shares on the same day as the news item first appeared in the news papers. The same rule should be followed when companies release their half yearly working results to the press, indicating improved performance.


Buying a share immediately on receiving a favourable news item is a good timing decision. It works most of the time. But it is even better, if you can buy in anticipation of a favourable news item or in anticipation of a favourable market development. For example, it is always better to buy a share in anticipation of a liberal bonus or rights issue rather than immediately after the news announcement of such issue.


Keep a watch on the performance of similar companies operating in the same industry group? For example if Ceat and MRF announce favourable operating results, then the chances are that other Tyre companies will also come out with improved performances. Use this information to improve the timing of your purchase decisions by buying shares of those Tyre companies in anticipation of an improved performance. In this way you can substantially improve your investment performance by staying ahead of, and outrunning the crowd.


Wish you good luck.                                                         See you later.

 

29 Jul 2015

AN UNIDENTIFIED GROWTH SHARE

Hi Friends,  Majority of the Analysts and Business periodical publishers have the opinion that there is little doubt that the Indian Stock Market is in a multi year bull run. In the past  bull runs we have seen that mid-cap perform much better than large caps.  If so it would not be a  bad idea to increase one’s exposure to mid caps and small caps is one’s port folio.  They believe that in the coming months the flavor of the market will again be mid-caps and small caps.  I give you a growth oriented mid cap company for your investment.



Regarding B S Ltd.,(BSE Code – 533276, NSE Code BS LIMITED),  ten years is not a very long time in corporate evaluation.  Yet these years have proved to be forma-tic in their journey from modest beginning to gradual industry prominence.  Formerly known as BS Trans-comm Ltd is India’s infrastructure player in Power transmission & Distribution and Telecom managed services.  Today they are the preferred EPC provider in India and poised  to become a holistic infrastructure provider.  Their diverse portfolio includes (i) tower manufacturing, (ii) Telecom, (iii) Trunkeservices, (iv) Renewable energy solution, (v) Mineral resources (iron ore, coal, Nickel & Manganese).  R.S. Global  Resources (P) Ltd is their subsidiary company.



B.S. Ltd have grown significantly in these years from tower manufacturing to executing Asia’s first 1200 KV transmission lines, today they are executing diverse Projects across the length and breadth of India, focusing on high margin power transmission lines and substation projects.



India presents tremendous opportunities in the Power sector.  The country is the world’s 4th largest energy consumer.  At the same time, it is home to over 300 million people ,who continue to languish in darkness.  More over, around 30% of the power generated is lost during T & D.  Transmission/open access constraints have resulted in uneven power distribution and power shortage in few states.  BS Ltd is efficient and financially healthy T&D utilities.



Financials:-  Share Price Rs.29.35,  Equity – Rs.43.98 Cr.,  Market Cap – Rs.1260.21 Cr., PE – 18.33,  EPS – 1.56,  Book Value – Rs.12.54,  Dividend – 10%,  F/Value of share – Re.1/-,  Industry PE – 14.12,   Total Sales in Cr. for the year 2011-2015:  871.97,  1154.78,  1513.06,  1770.38 and 1904.93.  Total Net Profit in Cr. for the year 2011-2015:  51.04,  51.70,  56.36,  62.67 and 68.58.



Shareholding Pattern:  Promoters – 68.84%,  Other companies – 16.88%, General Public – 11.18%,  FIS – 2.75% and others 0.35%.



Management Efficiency:  Return of Equity – 12.95,  Return of Assets 3.94,  Return of Capital employed – 16.13,  Fixed Assets turnover – 1.95,  Gross Profit Margin 11.23,  Operating Profit Margin 12.85,  Net Profit Margin – 3.52,  Debt Equity Ratio- 0.36.



BS Ltd incorporated in the year 2004, is a mid cap company having market cap of Rs.1260.21 Cr. operating telecommunication sector.  BS Ltd key products revenue segments include sales of services which contributed Rs.859.27 Cr. to Sales Value (47.46% of total sales),  Towers  & Structural s which contribute Rs.519.46 Cr. to Sales value (28.69% of total sales), sale of products which contributed to Rs.431.76 Cr. to Sales Value (23.84% of total sales) for the year ending 31.03.2014.  For the quarter ended 31.03.2015, the company has reported a standalone sales of Rs.535.18 Cr, up 9.11% from last quarter sales of Rs.490.48 Cr. and up 7.93 % from last year same quarter sales of Rs.495.87 Cr.  Company has reported net profit after tax of Rs.22.56 Cr in  last quarter.



The promoters are holding maximum up to 70% of share issued.  It reflects their confidence in the future of the company. They are also going to acquire four related companies for their growth. Share price is also cheap.  Consider it for long term investment.



Good luck                                                                See you later.

FREQUENTLY ASKED QUESTIONS (4)

Hi Friends, 


1.        Supply and Demand:-  Supply and Demand can be simply stated as the relationship between what is available (the supply) and what people want and are willing to pay for (the demand).  This equation is the main engine of economic activity and is extremely important for your stock investing analysis and decision-making process. 


2.       Economic Effects from Govt. Actions:-  Nothing has a greater effect – good or  bad – on investing and economics than Govt., which controls the money supply, credit and all public securities markets.  Govt. actions usually manifest themselves as taxes, laws or regulations.  They also can take on a more ominous appearance, such as war or the threat of war.  A single Govt. action can have a far reaching effect that can have a direct or indirect economic  impact on your stock investments.


3.       Bear Market:-  This is trading task for the stock market being in a down trend, or a period of falling stock prices.  This is opposite of Bull market.


4.       Blue Chip Stocks:-  These are the large , industry leading companies.  They offer a stable record of significant dividend payments and have  a reputation of sound fiscal management.


5.       Bull Market:- This is when the stock market as a whole is in a prolonged period of increasing stock prices.  Opposite of Bear Market.


6.       Day Trading:-  The practice of buying and selling with in the same trading day, before the close of the  market on that day is day trading.


7.       Moving Average:-  A stock’s average price per share during a specific period of time.  Some time frames as 50 and 200 day moving averages.


8.       Rally:-  A rapid increase in the general price level of the market or of the price of the stock , known Rally.


9.       Volatility:-  This refers to the price movements of a stock or the stock market as a whole.  High volatile stocks are one  with  extreme daily up and down  movements and wide intraday trading ranges.  This is often common with stocks that are thinly traded, or have low trading volumes.  This is also common with the stock that Time Trades.



10.   Volume:-  The number of shares of stock traded during a particular time period, normally measured in average  daily trading volume.


Good Luck                                                                                 see you later.

28 Jul 2015

TIPS FOR TIMING YOUR BUYS

Hi Friends, 


a)      Never buy a share at a price  that is equal to, or higher than, the share’s peak price in the previous year.  Under normal conditions (when the stock markets are neither rising or falling rapidly) try to buy the share at a time when its price is hovering between the previous year’s lowest and average price .  In a rapidly rising market, you can safely buy the share at a price which is equal to , or a little higher than, its previous year’s average price.  Do not buy a share at a price that is more than 10 per cent higher than the share’s average price in the previous  year.


b)      Do not buy shares in a falling market. Wait for the fall to be completed, and share price to stabilize at their lower levels,  before buying.


c)       Don’t buy a share at a time when everybody is recommending it or when it is in the limelight.  Chances are that you will be buying an overpriced share.  Wait for the publicity to die out and share prices to fall, before buying it.  The other appropriate time to buy the  share would be in the early stages when the publicity on the company is building up and the company is not fully exposed to the glare of  publicity.


d)      Don’t buy a share immediately after a steep  rise in its price.   A steep rise is usually followed by a steep fall; the steeper the rise, the greater the subsequent fall.  When share prices fall, they usually retrace about  one-third to two-thirds of the price range covered by the earlier rise .  Thus if the price of a share rises from Rs.30 to Rs.45, then in the subsequent fall its price will probably drop to about Rs.35 to Rs.40 per share.  This is the appropriate time and price range for buying the share.


e)      A sharp fall in prices offers an opportunity for buying, provided you are confident that the fall in price is purely temporary and that the future outlook of the company is promising enough  to ensure that the subsequent rise in price will go far beyond the level from which it earlier fell.    


thanking you                           see you later,

27 Jul 2015

TIP TO INVESTOR

 The main objective of investment are maximizing the return and minimizing the risk. An investor should make investment in diversified portfolio. Don’t put your money in one single share, instead you select some growth oriented industry then select one share minimum from each industry For e.g. You select industries like Banks, Pharma ,FMCG, Auto ancillaries, Media  and entertainment etc.


Banks- Recommended shares are Axis Bank, HDFC Bank City  union Bank State bank of India Federal Bank and Dcb Bank


 Media & entertainment- share to be considered- Zee entertainment and Entertainment net work of India,


Pharma- recommended shares are Cipla, Natco Pharma, Aurobindo Pharma, Sun Pharma, Markson Pharma, Indoco remedies,.


FMCG- Goderage consumer products, ITC, Hindustan liver.



Auto ancillaries- Munjal showa


. Fresh investors have to wait for correction in the stock market for purchase or otherwise you select shares from the above group( at least five ) and start investing Rupees 1000-2000 every month in those selected shares by purchasing 10 or 20 shares each in every month just like SIP in MF. It benefits that your price of shares will be averaged. This investment will be continued for 3 to 4 years. Except those mentioned above, there are other group of industries like Hotels, Irrigation, Fertilizer, Cement,Power,Building and road Infrastructure, distribution of electricity etc.


Try your luck.                                                                       See you later.

GROWTH SHARE LOW PRICED

Hi Friends,   Gufic Bioscience Ltd ( Code BSE 509079,NSE GUFICBIO) is in the Pharmaceutical Sector.  It is a small cap company having market capitalization of Rs.183.32 Cr.  Its network spread over International market and they expand their world wide foot prints and continued an aggressive launch of Advanced new products.  Their commitment to bring a good corporate citizen and employer led to higher level of volunteerium and engagement.  Their Gross Sale is improving in the last two years and net profit margin is also improving.  If you consider it for three years investment, capital appreciation is awaited.


Financial Status:  Equity Share Capital – 7.74 Cr.,  Market Capitalization – 183.32 Cr., PE – 48.37,  Industry PE – 34.79,  EPS – 0.49, Face Value of Shares – Re.1/-,  Book Value Rs.3.39,  Reserve Rs.18.47 Cr.  Total  Sales in Cr. for the period from 2011 – 2015:  71.81,  83.64,  100.41,  123.15,  & 151.75.  Net Profit in Cr. for the period from 2011-2015:  1.52,  1.52,  3.33,  4.26,  and 3.75. 
No Bonus History.  FirstnDividend 5% in 2015.  Share Holding:  Promoters – 67%,  Others including public 33%.


Since  it is a low priced scrip – Rs.23.50- you try your luck.  Only for Long Term investment.


Good Luck.,                                                                           see you later.

26 Jul 2015

MAGIC OF SIP (MUTUAL FUND)

Hi  Friends, SIP- It is an expert field , Lets leave it to them. Management of the fund by the professionals or experts is one of the key advantages of investing through MF. They regularly carry out extensive research on the company, the industry and the economy, thus ensuring informed investment. Secondly they regularly track the market. Thus, for many of us who do not have the desired expertise and are too busy with our vocation to devote sufficient time and effort to investing in equity. MF offer an attractive alternative.


Point, 2-Putting eggs in different baskets are another advantage of investing through MF. You know that even with small amounts we are able to enjoy the benefits of diversification.  Huge amount would be required for an individual to achieve the desired diversification, which would not be possible for many of us’Diversification reduces the overall impact on the returns from a portfolio, on account of a loss in a particular company/sector.


Point 3-MU industry is well regulated both by SEBI and AMFI. They have over the years,introduced regulations, which ensure smooth and transparent functioning of MF industry.


Point 4-Market timing becomes irrelevant. One of the biggest difficulties in equity investing is WHEN to invest, apart from the big question WHERE to invest. While investing in a MF solves the issue of where to invest, SIP helps us to overcome the problem of when.SIP is a disciplined investing irrespective of the state of the market. It thus makes the market timing totally irrelevant. And today when the markets are high, it may not be prudent to commit large sums at one go. With the next 2-3 years looking good from Indian Economy point of view, one can expect handsome returns through SIP’.


Point 5- Does not strain our day to day finances, MF allow us to invest very small amounts (Rs.500 to 1000) in SIP as against larger one term investment required , if we were to buy stock directly from the stock market.  This makes investing easier as it does not strain our monthly finances.  It ,  therefore, becomes an ideal investment option for a small time investor, who would otherwise unable to enjoy the benefits of investing in the equity market.


Point 6 -  Reduces the average cost in SIP, we are investing a fixed amount regularly therefore  we end up buying more number of units when  the markets are down and NAV is low and less number of units when markets are up  and the NAV is high.  This is called rupee cost averaging.  Generally, we would stay away from buying when the markets are down.  We generally tend to invest when the markets are rising SIP works as a good discipline as it forces us to  buy even when the markets are low, which actually is the best time to  buy.


Point 7 -  Hopes to fulfill our dreams, the investment we make are ultimately for some objectives such as to buy a house, children s education, marriage etc.  And many of them require a huge one-time investment.  As it would usually not be possible to raise such large amounts  at short notice , we need to build the corpus over a longer period of  time, through small but regular investments.  This is what SIP is all about.  Small investments over a period of time, result in large wealth and help to fulfill our dreams and aspirations. Dear friend since you are one of the loved one in your family, please take a decision to start an SIP(MF) for three years @ Rs.1000/- pm(minimum). The MF should be four star and above Crisill rated. It will help you to meet the expenses like school education, marriage of children, purchasing of house, vehicle etc. In addition if you are in urgent need of money you can sell the units at your credit in the stock exchange at the prevailing NAV.


Good Luck,                                                                           see  you later.