Stocks

hold?

Posted by : vuppala1948

ANDHRA BANK had a EPS of 5.28 + 5.65 + 5.68 in last 3 Qtrs.

Even if it merely repeats the same EPS this qtr, its total annual EPS must come to 22.29.

On the other hand, it is aiming to grow from Mid-sized bank into Large bank category within 2-3 Qtrs, which signifies its GROWTH TRAJECTORY.

Its % of Net NPAs is a mere 0.17, one of the LOWEST in the sector. Its return on assets is quite high at around 1.5.

On the current price of 100, the P/E is a mere 4.49 against the Industry average of around 9.

It is a HEAVILY UNDER-PRICED STOCK with excellent and consistently improving performance in the last 7 Qs.

Market needs to shed its obsession for NIFTY STOCKS which are admittedly heavily priced, and concentrate on acquisition of such VALUE STOCKS as ANDHRA BANK

Prognosis

Posted by : skpai

The following is happening in this scrip.

1. Guys who got the right issue alloted have been offloading to book their profits as the prices kept rising.

2. Usually all want prices to go up and make money. This happens provided there are some strong shareholders / institutions on board who will not permit ransacking of the share prices. However in this case there are a whole lot of speculators, so called operators / bear cartels, who very well know that such low value scrips always attract retail investors who will always fall trap for buying and waiting for prices to rise or dump it when it falls.

3. If you notice now, slowly the MF holding has been rising since Dec to Feb. This is a sign / signal of throwing the operators out by sucking up the shares in circulation and returning value back to its deserving shareholders.

The way forward is only have patience. When you start ignoring the noise around you. People stop making noise. its as simple as that.

Fundamentally, investors need to always choose leaders in the industry with a consistent growth and strong belief in its future prospects, which is reflected by in CAPEX spending. Alok is surely one of them.

One aspect of slippage is only that the company tried to give more value to shareholders by their foray into REALTY, however due to sheer wrong timing, they got it wrong. But nothing changes fundamentally. Business is about taking risk, their committment to keep leadership position in the textile industry will remain undisputed.

It will be wrong to expect investment growth of above 50% in a textile company especially when it is understood that the net earnings of all companies will remain in single digits and due to this this industry attracts low PEs. Hence when you get into this sector be reasonable in your expectations of returns too.

I have been in this because of my flair and passion for Fashion Retail and will continue to be in this through thick and thin. At every opportunity, I keep on adding it.

Shareholders are not parties who dump shares when they get their desired returns. They remain with the company throughout its life and in return, get a share of its profits. I know that I cannot create such a company of my own, however it is a privilege to be a co-owner of such an enterprise.

I do see a lot of disturbed boarders / traders, who have kept unreasonable expectations and compared their returns from Alok with other companies and kept grumbling. The point is we make the choice and then we blame.

A faithful fan of Alok.

Biocon a good bet for mid-cap space

Posted by : Khan

AFTER a poor show in earnings for the fiscal year 2009, India’s leading biotech company Biocon has registered a good recovery in the current fiscal.
With traction in its biopharma business and an improvement in the performance of its German subsidiary, Axicorp, the company holds attractive growth opportunities going forward. It is a good bet for investors interested in the mid-cap space.

BUSINESS:

The Bangalorebased company develops and manufacturers bio-pharmaceutical products for various medical ailments including cancer, diabetes and inflammatory diseases. The company’s biopharma business model straddles both products and services.

The company’s statins business, which contributes nearly 30% to its revenues, has witnessed a strong growth in revenues. Further, the biopharma business has also gained from growth in domestic formulations business, insulins and immunosuppressants.

Axicorp, the company’s low-margin trading business, has showed improvement and the subsidiary is gaining from supplying to the tender floated by the German insurer AOK. Through its two subsidiaries, Syngene and Clinigene, the company provides end-to-end services from pre-clinical discovery research to human clinical trials. It contributes nearly 15% to the company’s revenues.

Biocon is also working on product development in view of the opportunity of launching biosimilars in the US and other regulated markets. The company has been steadily increasing spend on R&D . It now spends 7.5% of its revenues on R&D .

FINANCIALS:

The company’s net sales have grown at a compound annual growth rate (CAGR) of 24.4% over the past five fiscal years to reach around Rs 1,608.7 crore in FY09. The net profits have rather grown in an erratic manner during the same period. Heavy MTM losses, high depreciation due to large capex and rise in interest costs put pressure on net profit in the recent past. Despite this, the company has been consistently paying dividend for the past six years.

It has incurred high capex over the past three years. As the company’s big-ticket capex are over, it is expected to generate more free cash flows going forward. However, the fact that the company earns majority of its revenues from lowmargin business segments of statins and Axicorp remains a concern.

GROWTH OPPORTUNITIES:

The patent for Atorvastatin is expiring in the UK in 2010 and in Germany in 2011 offering opportunity for the company to tap the -billion market . Given the increasing trend of R&D outsourcing, the company’s contract research service business is likely to see strong earnings inflow in the coming years. Strong ramp up in the scale and number of projects under Syngene are likely to augur near-term growth.

Launch of biosimilars in regulated markets and commercialisation of its oral insulin programme IN-105 are long-term growth drivers for the company. A possible listing of its subsidiary, Syngene , could lead to value unlocking for the company and its shareholders.

VALUATIONS:

The company’s stock has been outperforming the Sensex since the middle of 2009. It is currently trading at a consolidated price-to-earnings value of 23. It is valued at two-and-a-half times its net sales. These valuations come on the back of promising growth prospects of the company across its various business segments. Investors with a long-term horizon are likely to benefit from the company’s promising growth story.

Can fly above 1104

Posted by : GOLD FINGER

Bhusbhac, If I am right, I think the present value of RIL does not take into account the value of its real estate holdings throughout the country and in prime locations such as Bandra Kurla complex etc, the value of its retail arm and the value of its investments in Rewas Port, nmsez and msez. In case of nmsez and msez, there has been out-right purchase of lands at the then prevailing market rates and now with the govt coming with a slew of incentives for SEZs, these two sez can take off. Also one wonders what is the value to be assigned to RIL`s logistics arm RELOGISTICS which is emerging as the biggest fleet operator. Does RELOGISTICS continue to be a part of RIL. So I feel that the market is having a myopic view taking into account only the petrochemical and refinery value for RIL.

right issue

Posted by : amb55in

Members,

Total market capitalization of the company with Rs2,000 Crores turnover is just Rs120 Crores only, lets us look for a potential buyer, its peanut. Cheers

Concurrent infra`s Q4FY10 earnings estimates : Be and Make

Posted by : BAnil

Dear Kalyan , I have downloaded the estimates . Since I am in for long haul with quite many shares , I trust every thing will be stunner in this scrip.Results look promising , hope in reality they are as good :) Thanks for your timely inputs. Regards.Capt Anil

Business statndard news

Posted by : j2eeprofessiona

http : // ww w . business-standard . com/india/news/vishal-lenders-near-agreementrestructuring/389178/

http : // ww w . business-standard . com/india/news/debt-tribunal-shadowvishal-restructuring/389330/

Investment in Himalya International

Posted by : j2eeprofessiona

gordan, this 1000cr is not my figure dude, there`s an official annoucement. secondly, you are absolutely right that in 2005-06 they had targetted 100 cr by 2010 but that did not happen and therefore, to realize their dream of 1000cr by 2014-15 they have appointed professional expats in their top management. they have realized their past mistake and taking in professional help. so lets wait and watch. secondly all their contruction plans are going as per plan... as far as the salay issue is concerned we cannot comment on it since there`s no way to cross check this claim. atleast himalay authorities have declined their claim (when this message was posted i mailed them and they categorically denied it) ... so cant say for sure who is right.

Concurrent infra`s Q4FY10 earnings estimates : Be and Make

Posted by : Be and Make

Dear Guest – All set for to cross the Rs.28/- mark with the medium term target as I mentioned in my report i.e., Rs.36/-

//ww(w).ziddu(.)com/download/9049024/ConcurrentInfra_Q4FY10E_beandmake.pdf.html

(Remove the two brackets)

with thanks
be and make
//stockstowin.blogspot.c0m

upper circuit.........

Posted by : rtoshniwal1

I remember very well .... we exchanged a few messages also .... what a bull`s eye shot.

we discussed possibility of welspun as a potential acquirer ... u were suggesting that IDFC was also in the fray

great shot once again ....
has subhkam / kathotia group exited .... somebody close to welspun exited today as per block deal preliminary data

Infy down target=2499....

Posted by : marketman

It is very difficult for the company to post any growth in its bottomline in this quarter with strengthening of rupee.... the said downward target could be easily achieved before the Q4 results itself....