Hi friends
Thanks for visiting my Blog. Through this blog I shall try to estimate on which share investors and Indian Equity Market watchers are betting on. IPO recommendations shall be provided from time to time. Your Valuable comments are also invited. Please do vote and share the knowledge of our markets to all of us.
Let me list a few good stocks for purchase which may not become the next RIL, but sure will be better than investing in Fixed Deposits. People should buy these stocks and forget for the next 5 years or more and then get surprised how they got so much money all of a sudden.
1) Ispat Industries. Buy this scrip at Prevailing price of Rs.80 and on declines and wait for a long term (minimum 2 years) target of Rs.400.
2) GTL Infra. Buy at Rs.75 for long term.
3) IFCI. Buy below Rs.100 for long term gains of above Rs.1000.
4) Jayaswal Neco. Buy now for target of Rs.400 and above
5) Shiva cements. Catch it if u can at Rs.20 levels for long term valuation of above Rs.150.
Now the question is will all these stocks fare well as predicted. Well there is no guarantee. But look at it. even if 1 fares as predicted, and assume others remain as it is, still you make a lot of money on your investements. Earlier wave of bullishnes was PSU stocks like BHEL and large petrochem like RIL. The next wave of bullish investments will come in infrastructure, telecom, exploration, and Banking and finance. So Buy and forget for 5 years and reap the profits.
Precision Pipes & Profiles Co. which is comming with an IPO of 50 lac shares on 17th Dec, 2007 has fixed a price band between Rs.140 and Rs.150. It will close on 20th Dec. Since the market is in good upmove short term investors may enter this scrip for listing gains. Others who wish to enter for the long time there are lot of good paper available in the secondary market.
Motilal Oswal Financial Services IPO is open with a price band of Rs.725 to Rs.825 per share. The issue closes on 23rd Aug. 07. It is involved in the financial services field with a strong brand name and large retail reach. The company is in expansion mode. This stock is expected to perform well in the medium to long run. So genuine investors may gain in the long term.
Simplex Projects IPO is open now and will close on July 13. The lower price band is Rs.170 and upper price band is Rs.185. The turnover recorded for fiscal 2006 – 07 is Rs.136.24 crores and the Net Profit is Rs.10.49 crores. The company is engaged in the construction and engineering sector providing construction services for civil and structural construction and infra sector projects. Since it is involved in similar sector as DLF, and since DLF has had a good show in the bourses, one can consider this IPO. DLF which had an issue price of Rs.525 is currently trading at Rs.590, and seems set to cross Rs.620 very soon. Simplex projects seem to be a good issue and investors can buy for good gains. Also to be noted is that it has already attracted good buying interest by getting oversubscribed more than 2 times in the second day itself. The sensex at 15000 levels is also boosting the confidence of investors who wish to buy new issues.
HDIL has come out with an IPO with a price band of Rs.430 at the lower end and Rs.500 at the higher end. The issue will open tomorrow, 28th June 2007 and end on 3rd July 2007. It is involved in the real estate business. It is a fundamentally good company with a good land reserve and making profits. But experts are of the view that the price band is very expensive and those who still wish to invest must do so at the lower price band of Rs.430. All those who have applied for Spice Comm. IPO may cheer, as it has got over subscribed by 25 times! But the response from retail investors was week. It is proposed to be listed on the BSE.
BEML which is a listed company and trading at Rs.1,170 today, is coming out with a follow on public issue with a price band of Rs.1020 and upper band of Rs.1090. The issue opens on 27th June 2007 and closes on 3rd July 2007. Fundamentally a very strong company and a category I Mini Ratna, Instutional investors are the major investors in the company other than the majority holding by the Indian Govt. Though it is priced aggressively at the higher end, long-term investors can apply for this issue. Investors looking for short term listing gains may skip this issue, since the Upper band price of Rs.1090 and today’s low price of Rs.1,136 a difference of mere Rs.46 doesn’t offer much margins. Even this margin may vanish in case of a bear market on listing. Since the company caters to the Railway and Metro products, and is involved in the Delhi Metro Rail Project and also bid for similar projects in 6 other cities it should see a lot of up move in the coming days.
Suryachakra Power IPO, which is open for subscription now and closes on 29th June 2007 is a small player in the power generation business. The issue price band is Rs.17 to Rs.20. Though listing gains can be expected, in todays world where every company is building big projects in petroleum or telecom or construction and retail, a small player wont be able to gain much respect. Also there seems to be no shortage of good IPO’s in line for people to invest rather than park their money in Suryachakra Power. Spice Comm. is any time a better option which is open now.
There seems to be a lot of interest in TATA Motors by brokerages. The target for TATA motors is seen at some thing above Rs. 900. Even earlier I had said about this stock, and it had fallen a bit, which might have given an opportunity for traders to buy at lower prices. Other stocks recommended by brokerages are Visa Steel, IPCA Labs with a target of Rs.900, Indian Hotels with a target of Rs.190, City Union Bank with a target of Rs.250, Reliance Communications with a target of Rs.600 and Orchid Chemicals with a target of Rs.390.
Regarding New Issues, the ICICI Bank follow up issue was oversubscribed more than 11.5 times. But it didn’t excite the retail investors much. Foreign Govt. sponsored funds and large funds applied for bulk of the issue. SBI has put a 1.3 billion bid for the issue.
The Spice communication IPO that will open first day of next week, that is 25th June 2007 expects to garner around Rs.523 Crores in the upper band. The price band is Rs.41 to Rs.46 per share. Issue closes on 27th June. A poll conducted by Moneycontrol portal on experts view of this issue got a positive response with majority of the experts advising a buy for this IPO. It is being given a valuation of Rs.60 Plus on listing. Long term investors can expect better earnings. Since it is fairly priced issue even retail investors are showing a lot of interest in this issue. India being the worlds fastest growing cellular phone market, Spice seems to have a bright future. So Happy investing.
It was a great day for the markets today. Though it remained flat for most of the day it surged during the last one hour. The Sensex breached the 14,300 levels. The midcaps were also gainers. New listings Decolight, HTMT and Glory Polyfilm ended in discount, so all those investing in IPO’s it is advised to invest only in quality stocks and be prepared to hold on for longer term.
Some of the brokerage recommendations for this week are Laxmi Machine Works with a target of Rs.3510, Zensar Technology with a target of Rs. 484, Inox leisure with a target of Rs.160 and Elecon Engineering with a target of Rs.573. There seems to be a big run up in IFCI, so those who have already bought it, may hold on to it.
The Markets are looking up today and some of the top Brokerage Recommendations are Dishman Pharma with a target of Rs.360 which means a upside of about Rs.100, RIL with a target of Rs.1815 which is also an upside of Rs.100, Sangam India with a target or Rs.95 sees a upside of 42% within 6 months. Other recommendations are Gateway Distripacks with a target of Rs.250, Shree Ashta Vinayak with a target of Rs.352, Penunsula Land with a target of Rs.600, JSW Steel and NRB Bearings.
The follow On Public Issue issue of ICICI Bank is being eagerly awaited by investors. It is slated to open on 19th June and close on 22nd June 2007. Retail investors are being offered a 5% discount in the FPO. DLF which didn't get a great response from retail investors, those investors can wait for it to list and then buy it at a discount from the open market when it will sees a correction. Vishal Retail which had its IPO open during the same time as DLF, saw a oversubscription of 81 times!
With the markets still under pressure there isn't much broker recomendations. Guj NRE Coke seems to have a target of Rs.100 in a 12 month period.
As you all know the DLF IPO issue which is open to subscription with a size of 175 million equity shares to raise about 9600 crore at the higher price band of Rs.550 has recieved 78% subscription on the first day. Since it is one of the largest IPO's investors are hoping to get more shares alloted this time around. It seems one of the reason for the lacklusture performance of the secondary market is due to many people selling and withdrawing money to invest in these major IPO's. It will be intresting to see which price band most of the shares are applied for, the higher band of Rs.550 or lower of Rs.500. Many experts don't expect much fanfare at it's listing, so probably it will get maximum applications at it's lower price band. Many investors are expecting a return of 5% on their investements on listing day. Only long term investors can look forward for better gains. In fact Vishal Retail is gaining more popularity and exitement among investors than DLF. Also ICICI bank whose issue is opening on June 19 is being watched closely by investors. Happy IPO Investing.
The latest brokerage recommendations are TATA Motors with a target of Rs.994, Dr Reddy's Labs with a target of Rs.791, Gail has a target of Rs.379, Welspun has a target of Rs.110, PVR seeks a target of Rs.225, KLG Systel with a target of Rs.810, Tamilnadu News Print With a target of Rs.151.
TATA Motors seems to be a safe bet. So I shall include it in my opinion poll. As you all know the markets have slipped and closed in the red for this week. So it would be better to be cautious while investing or trading. Experts are of the view of seeing 13,600 levels for the sensex.
My top bet HOEC (read earlier post), as predicted reached close to target price and closed at Rs.122.70 on friday. Today it has fallen to Rs.116 levels at 2.40 P.M. It still seems to have a great potential. Since markets in general has fallen this stock too has been hit. Well probably a great opportunity for those who couldn't get in to it earlier. UTV Software has gone up further to a high of Rs.585.20 today, a change of almost Rs.50 from my earlier posting. Eicher Motors has gone up to Rs.366 from my last posting of Rs.351. Keep a watch on Nagarjuna Construction. At Rs.169 it looks attractive. Also watch IVRCL. It is quoting today at Rs.354.
Redington is quoting at Rs.234.95, up 9.89%. Larsen is quoting at Rs.138.70, up 7.47%. Avaya Globalcon is quoting at Rs.360.20, up 5.35%. UTV Software is Quoting at 534.6 up about 5%. Eicher Motors at Rs351.75 is up 5%. Action Construction at 271.95 is up 5% too. Global vectra at Rs.251.20 is up by about 4.6%. HOEC at Rs.112 is up 5.26%. My top bet is HOEC with a medium term target of Rs.180 and it should reach Rs.125 very shortly. RPL which recently crossed Rs.100 sees a near term target of Rs.115.
Motherson Sumi has touched life time high of Rs.133.55. It's up almost 20 %.
Hi friends, thanks for visiting my Blog. Through this blog I shall try to estimate which share investors and Indian Equity Market watchers are betting on. Your valueble comments are also invited. Since this is my first blog, I'm still experimenting on it. Getting the opinion poll was the hardest task! I had to research a lot to do it. Now that I have got it please do vote and share the knowledge of our markets to all of us.
Price of a scrip increases because a lot of us think that it has got the potential and buy it. Now think if every body who bought it tells others to buy it, it automatically increases the demand and further increase in price and hopefully a win win situation for all of us.
