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Reliance Power board considering free bonus shares.

In an unprecedented move, Anil Ambani Group company Reliance Power will give free bonus shares to all its shareholders to compensate the losses they suffered when the company was listed a week ago.

"Reliance Power board will consider issuing free bonus shares to all shareholders excluding the promoters," a group spokesperson said.

On the day of its listing at Rs 547.8 a share, Reliance Power performed miserably at the stock exchanges and closed the day nearly 32 per cent lower.

The IPO had attracted a total demand of about Rs 7,50,000 crore and the company had issued the shares at Rs 450 while giving a discount Rs 20 a share to retail investors.

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Do you feel let down by the listing price of Reliance Power IPO?

Reliance Power IPO was big news from day one. It evinced huge interest from desperate investors wanting to cash in on the possible gains on listing.

There were several news stories in the media about the grey market premium the stock was attracting even before the issue opened for subscription. However, the listing price of the stock has left much to be desired. While it initially quoted above the offer price, it subsequently slid below it.

Do you think the IPO was over-hyped or is the weakness in the listing price only on account of poor overall sentiment in the market? Do you think the stock would recover and return big gains once market sentiment improves? What is your analysis of the situation?

MFs crash but still promise long term gain

he bearish trend in the stock market for the last three weeks has hit the investors hard. Even those who have invested through mutual funds have lost substantial wealth. However, experts and mutual fund managers say that this has created a good opportunity to invest in the market.

CEO of a mutual fund run by a foreign bank said in the next one to three years, Indian stock market will give a return of more that 25% compounded annually. He advised that investor should postpone the idea of liquidating their investments in the stock markets to invest some other assets class. He said the returns from the investment in the equity market would be more than other areas.

As shown in chart, in the long term, equity is still the best instrument to invest. However, he cautioned that one should not enter the market with the short term view in the current market scenario.

The 30-share sensitive index has fallen by over 25% in the last one month from 20,827 on January 11 to 16,631 on Monday. This, a senior fund manager said, has brought down the share prices of many good performing companies to very attractive level. He said that prices of medium and small companies have become even more attractive.

He said the present fall in the market is mainly because of the apprehension of a slowdown in the US economy. But, many foreign fund managers feel that in a scenario of a US slowdown, Indian companies will emerge as an attractive option to invest. A senior foreign fund manager said very few Indian companies are dependent on the export revenue besides the IT companies, which will benefit from slowdown as the outsourcing by US companies will further increase to cut cost.
The performance of India centric companies is likely to improve as economy continue to grow at around 8.5%. Investment in equity of these companies will remain robust.

A senior mutual fund official said there is no redemption pressure on mutual funds. Investors are still investing in MFs. According to one source, Reliance MF has raised over Rs 5,000 crore in the primary market. Other funds like HDFC Infrastructure has mobilized around Rs 2000 crore. AIG Fund has raised another Rs 450 crore. These funds are likely to start investing in the current week. Besides, funds are mobilizing substantial fund through systematic investment plan (SIP).

FIIs have also started coming back in the market. In February so far, there net investment has increased by Rs 330 crore as against a net sale of Rs 3,200 crore in January.

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Long term prespective.

1. Investors with a 6-12 month horizon can find value in stocks like Bharti Airtel, L&T, BHEL, Punj Llyod, ICICI Bank and SBI at current levels.

2. However one requires a heart of steel to enter in the stock market when their is blood on the street and moreover stock traders generally are without any cash due to their pre commitment in stock market.

Indian markets to be safe haven for investors in '08: Merrill Lynch.

India's stock market, one of the world's most expensive, is likely to be a safe haven for investors in 2008 because of the economy's low exposure to slowing global growth, Merrill Lynch strategists said on Friday.

Rolling out their top picks in Asia this year, they said global investors should also be overweight Chinese shares, though less so than in 2007, as well as Hong Kong issues, while going underweight South Korean and Taiwan markets.

They predicted India will fare better than more trade-dependent economies as US growth slows, noting exports of goods and services account for about a fifth of its gross domestic product, compared with 40 per cent for China.

"Its valuations look steep, and it's a crowded trade ... but it's the nature of lifeboats to get crowded. And there is some merit to the idea of India being seen as one now," Mark Matthews, Merrill Lynch's chief Asia equity strategist, told a media briefing in Hong Kong. "It's our sense that it can remain in a protracted expensive valuation zone because there's not enough reason to sell it."
India's benchmark BSE index, which hit a record high on Thursday, trades at more than 20 times 12-month forward earnings, compared with about 18 times for Hong Kong-listed shares of Chinese companies.

The US investment bank said China is still its second favourite Asian market after Hong Kong, but it had reduced its overweight rating partly because of concern about China's high inflation rate. It warned the market could face a tough first half.

"The jury is still out on Chinese inflation, and because exports are not a small part of Chinese GDP, that market is likely to remain in a directional no man's land until there's firmer evidence on both inflation and exports," Matthews said.

Other suggested stock market overweights included Malaysia, Pakistan, Singapore and the Philippines. Merrill said these were preferable to South Korea and Taiwan, where economic growth prospects are "unexciting at best". On the currency front, the investment bank said the US dollar was likely to come under further pressure in the first half, which would benefit Asia currencies.

It said the yen was likely to rise against the dollar, and that investors should be long the Singapore dollar against the US currency. "The world will increasingly come to realise that the larger Western economies are in a structural decline relative to Asia, and the transfer of wealth from the West to the East is not ending. In fact it's just getting started," Matthews said.
Source:-ET

Stocks for long-term investments in 2008

IG brings you the new themes for this year and the preferred stocks where you can park your long-term investments...

Premium Class

Income inequality, a perennial subject of discussion in India, has acquired a greater significance during the current bull run. Not everyone has gained uniformly from India’s growth story. Those at the top of the food chain — i.e. promoters and directors — have demonstrated a faster growth in their income and wealth than employees and small shareholders.

For many of us, this may be a cause for concern, but for an opportunist investor, this trend provides another opportunity to make money.

Investors are advised to put their money in companies that sell goods and services to the swelling upper-middle class. The potential investment targets can either be manufacturers of high-end consumer goods, lifestyle products or providers of leisure and entertainment.

Increased expenditure in the premium category indicates bullishness. There are many ways to quantify economic inequality in an economy. We have used income and wealth generated by India Inc as a proxy to gauge the income and wealth inequality in India.

As Corporate India tackles several challenges and generates huge profits, the stakeholders — i.e. the promoters, top management, shareholders and employees — are witnessing an unprecedented rise in incomes and therefore, their standard of living.

Financial Sector

The era of ‘lazy banking’ is long dead and gone. The banking and financial sector has acquired a new spanking avataar in a span of just a few years. In fact, today, India has emerged as a hub of banking and financial services at the global level. One big reason is India’s current economic growth story.

A strong surge in the potential growth to 8.5-9% has improved income levels of Indians and hence, the overall surplus cash balances and savings. Banks and other financial services are end beneficiaries of this boom. This is clearly reflected in the composition of gross household finance savings. The share of bank deposits, savings in the form of mutual funds and equity shares has gone up significantly from 38.4% in FY04 to 62.0% in FY07.

Apart from the retail segment, corporates are big users of banking and financial services. Increasing corporate savings are either parked with banks or mutual funds. Investment demand is a major driver for the current surge in economy and will be the same in forthcoming years.

Thus, to finance the huge capital demand, India Inc will rely on banks, non-banking financial companies (NBFCs) or the equity market. So, ample availability of resources, coupled with easing interest rates, will enable banks and other financial services to do well, irrespective of market conditions. Nevertheless, with an eye on maximising future opportunities, banking and financial companies have raised capital or are planning to raise it in the coming years, which will offer a leverage to raise their assets.

Media

Humourists describe advertising as the science of arresting human intelligence long enough to get money from it. Whether or not this definition is true, the year 2008 is likely to be a bonanza year for media stocks, given the huge potential in advertising spends.

Experts feel that ad spends are likely to trace the broader growth in the economy and consumerism. While ad spends will provide a trigger for good performance by broadcasting companies, increasing penetration of content distribution methods, including DTH and CAS, are likely to add sparks to the party.

Apart from broadcasting, content providers also have a busy schedule lined up, given the ever growing number of TV channels and shows. This spells a bonanza for companies which are engaged in the production of TV shows and animation.

Moreover, the increasing number of multiplexes and aggressive promotion of movies mean that companies engaged in the business of production, distribution and exhibition of movies will also have
a good time.

All said and done, the party holds promise for only a handful of players as most of them are already looking richly valued. This means investors have to look for growth stocks. Companies which enjoy a pan-India presence and offer services in various media segments are likely to be the biggest beneficiaries of these trends.

Infrastructure

Infrastructure is the pillar of economic, as well as social development. If various reports and studies are to be believed, India is set to emerge as one of the world’s largest economies. This is not achievable unless infrastructure improves. In the current scenario, lack of proper infrastructure is a bottleneck in the growth of the Indian economy. Sectors like power, rail and ports have to improve substantially if they want to meet the rising demand from India Inc.

Infrastructure investment requires huge initial capital outlay, which was considered to be a big hurdle in the past. With rising government revenues, a bullish stock market, huge foreign capital inflows and burgeoning corporate balance sheets, mega investment projects in infrastructure are no more a dream.

We feel infrastructure growth in India has reached an inflexion point and historical growth may no longer act as guidance for the future. So, will we ultimately see the kind of airports, ports, trains and roads that we have so far seen only in Bollywood movies? Looking at the revolution in the telecom sector, this cannot be ruled out.

This growth will have a cascading effect across a number of sectors, ranging from construction, cement and metals, to capital equipments and project finance, among others. But how big is this opportunity for India Inc and its investors? ETIG does a reality check by benchmarking India’s infrastructure growth against other countries to highlight the gaps and identify the investment opportunities.
Source:-ET

Volatile markets: Investors need to build long-term portfolio.

Finally, the equity market has come under selling pressure and when it happened, it wasn't a pleasant scene.

In the first two trading sessions, the markets went into a selling mode as if there was no future for equity and though there was a mild recovery in Wednesday's trading, the under current was far from comforting.

While the short-term trend continues to be volatile, the time has come for investors to go back to the basics of investing.

For a good part of 2007, this was completely forgotten, as the index had turned a sprinter by adding 800-1,000 points in a matter of a few days.

In 2007, big rallies were to the tune of 600-700 points in a day's trading and the Sensex rallied from 17k to 19K in a matter of few trading sessions.

What aided the rally, of course, was the relentless fund flows from global investors who now have fewer exciting markets besides India.

It was the same investment community which hammered the stocks though there was also enough support from the local traders who had built positions beyond their capabilities. As a result, the super profits of 2007 disappeared in a matter of two trading sessions.

Though local mutual funds and institutional investors did their shopping, it couldn't stem the negative pressures on the market.

With foreign institutional investors (FIIs) still preferring to book profits and keeping away from Dalal Street, one wonders whether the equity story has lost its steam.
Source:- economictimes.

Brokerages dishing out PMS schemes for frenzied investors.

Elephant is an animal that rings in money irrespective of whether it is alive or dead. When alive, the mammal is forced to work its tusk out; and when dead there are always buyers for tusk, nail, hair and skin. For brokers on the D-Street, market is like an elephant. It rings in money when up and alive; and all the more profitable when it is down.

Post the market drubbing over past four weeks and the eventful loss of investor capital thereafter, brokerages are dishing out portfolio management services (PMS) schemes for frenzied investors who are running for cover.

Past three weeks have seen a slew of portfolio management services (PMS) schemes being launched in Indian market. A majority of these are ‘pool PMSs’ (with entry level at Rs 5 lakh) which enable smaller investors to participate in these otherwise exotic ‘affluent-centric’ schemes. “Very positively, there has been several PMS launches over the past few days. This is a good option for investors who do not have the knowledge back-up or time to invest in market judiciously. We are also seeing roll-out of a combination of products as well,” said IDBI AMC’s PMS head, R. Swaminathan.

All the more interesting is the fact that the number of wealthy Indian individuals are on the rise, with an annual growth-rate of 30%. The number of households with bankable assets over $1 million is expected to rise from 1,20,000 in 2007 to 3,00,000 in 2012. In the same period, total bankable assets in India are expected to reach more than $1 trillion.

Pool PMS, the most common and popular segment, is a structured product for a specific group of clients (investors) with similar investment preferences. Unlike general PMSs, pool PMS is not directed to an exclusive client. Customers do not even need a demat account to invest in Pool PMSs; they only have to sign a general PMS agreement, entrusting the brokerage to manage their investments.

Anil Ambani’s Reliance Money has launched PMS with minimum investment of Rs 5 lakh, as specified by Sebi. The scheme that targeted executives and professionals in metros and smaller towns would be available with an infinite upper investment limit. “The firm will not charge any fees if the returns are less than 8%. However if the return is between 8-20%, it would charge a nominal 10% as fees,” said Reliance Money CEO Sudip Bandyopadhyay.

“Fund managers have the liberty to include as many investors as they want to pool-in a sizeable investment. As far as investors are concerned, they are literally hand-held through their investments till the maturity date,” Mr Bandyopadhyay added.

Apollo Sindhoori Capital Investments is planning to start a PMS scheme that would target pension earners. The brokerage plans to generate secured returns through arbitrage operations between cash and futures markets. The brokerage expect to generate a minimum 12% annualised return to its investors.
Source:-economic times

IPO's Withdrawn.

Emaar MGF has withdrawn its IPO and they will refund the ipo money in next 10-15 days. Even the extended date for the ipo could not help. The ipo has been withdrawn because of the poor response and the challenge for price appreciation post listing. Emaar MGF may consider the IPO at an appropriate time at a later stage.

Wokhardt Hospitals has withdrawn its IPO and investors money will be returned within 15 days. Even after extending the dates, the ipo has recieved poor response. The reasons for the failure of this ipo is higher valuation of the price band and poor market conditions.

Scrips Research.

Bank of Baroda
Bank of Baroda has a strong presence in western India —a key zone for retail and industrial growth—with equally good rural network.

Further, the bank is one of the few banks having a substantial international presence, which contributes 18-20 per cent to total business and 30 per cent to profits. This business is expected to rise further with the bank growing its global presence.

The bank has improved its fundamentals over the past several years on key parameters such as net interest margins (NIMs) and asset quality despite growing at a robust pace (asset growth CAGR of 19 per cent in FY04-07). Going ahead, the bank's focus on NIMs backed by moderate growth augurs well.

Besides, its initiatives such as online trading services, and joint ventures in insurance and asset management, will help it create value for its shareholders.

Additional triggers could be in the form of consolidation within the public sector bank space. All this put together makes this stock, which is reasonably valued at 1.4 times its FY09 estimated book value, an attractive investment opportunit

Adlabs Films
With a strong presence across the entertainment industry value chain of content production, distribution, and exhibition, Adlabs becomes the choicest pick.

Domestic consumption and leisure spends will remain buoyant as disposable incomes rise across the country fuelling growth at Adlabs.

Adlabs produces and distributes films, and is a dominant player in the multiplex segment. It has also acquired 51 per cent stake in television content producer Synergy Communications, the maker of Jhalak Dikhhla Jaa and Kaun Banega Crorepati.

In the FM radio business, its subsidiary, which runs Big FM has 44 FM licenses across India. This could also become a value unlocking opportunity going forward.

Over the past three years, Adlabs has impeccably delivered a top line growth of over 100 per cent y-o-y, along with high profitability. In the September 2007 quarter, it raked in a whopping 69 per cent operating profit margin.

But going by the past numbers, operating margins have remained in excess of 50 per cent consistently, with net profit margins at over 22 per cent. The stock has appreciated three-fold since January 2007 and should do well.

Bhel
Today, the biggest constraint in the power sector is the supply of equipment, especially the critical power equipment required for the larger projects.

But, for Bhel, which commands about 65 per cent market share in the domestic power equipment industry, this provides long-term earnings visibility.

While competition is rising with new players like L&T and Chinese companies vying for a share, Bhel's order book of Rs 62,400 crore, almost 3.6 times its FY07 revenues, instils confidence. The successful acquisition of orders for super critical boilers and high technology gas turbines required for the bigger projects would only improve its order book further.

Considering the huge order backlog and the orders in pipeline, Bhel is expanding its capacities by 67 per cent to 10,000 mw by January 2008, which will further increase to 15,000 mw by December 2009.

Bhel is also expanding its forging and casting capacities and a new fabrication plant to help reduce its dependence on imports. These should also help lower costs in the years to come. Overall, a better industry outlook, strong order book and expansion of existing capacities will drive the stock from the current levels.

Bharti Airtel
With a mobile subscriber base of 51 million, Bharti Airtel is India's largest mobile service provider. While it has added an average of 2 million subscribers a month in Q2, it is expected to crack the 100 million subscriber mark by FY10.

While the company has experienced good growth, its ARPU has fallen by 10 per cent over the last three quarters, much ahead of the 4 per cent decline experienced by Reliance Communications. Even then, operating margins have improved, on the back of higher margin in broadband business and cost reduction.

Going forward, increase in scale of operations will keep costs in check. Capital and operating expenditure is also likely to come down after the formation of Indus, a tower infrastructure company, which will manage the tower infrastructure of Bharti, Vodafone and Idea.

A trigger for the stock could be the listing of Bharti Infratel, the tower division and which holds 42 per cent in Indus. Bharti Infratel already has 20,000 towers and plans to set up more.

RCOM will be the biggest threat for the company if it manages to soon roll out its GSM services across 15 circles. Additionally, any unfavourable outcome over the spectrum issue will have its impact; it could lead to increased investments in upgradation of existing equipment.

To conclude, Bharti's revenues should grow by 35 per cent in the next two years on the back of subscriber expansion, start of Sri Lankan operations by March 2008, and launch of IPTV and DTH. A sum-of-parts valuation puts the per share value of Bharti at Rs 1,200, a 27 per cent upside from the current levels.

Educomp Solutions
Educomp, the market leader in Kindergarten-12 education products, is a successful niche player. It has made some smart acquisitions, entered new areas. and garnered a client base of almost 6,000 schools across India besides, a small presence in Singapore and the US. Its first mover advantage makes it difficult for competition to catch up anytime soon.

Besides, the company has so far acquired and built the abilities to design and create content for schools, learning and school infrastructure management solutions, online teaching solutions, community building solutions and more recently into setting up its own schools.

Financially, Educomp's top line has almost doubled every year and operating margins have been maintained above 50 per cent.

Considering the growth potential in the Indian education industry, Educomp is likely to keep its juggernaut rolling for the coming few years. In FY09, Educomp will double its top line again and grow its earnings by 75 per cent. Although there has been a concern over valuations, the consistent earnings growth justify the same.

Larsen & Toubro
Reinventing itself and successfully developing new businesses are among L&T's key strengths. That, along with the domestic infrastructure and global hydrocarbon investments, is responsible for the rising revenues and order book. It is now targeting a turnover of Rs 30,000 crore by FY10 as compared with Rs 18,363 crore in FY07.

Going forward, there is more business to come, as the government has estimated an infrastructure investment of $500 billion during the Eleventh Five Year Plan. Besides, a lot of money will also be spent by domestic players in the metal, oil and gas, power and other industries.

Little wonder, L&T's order book has been rising. As of September 2007, the engineering and construction division had an order book of Rs 42,000 crore.

Going forward, L&T is also focusing on the overseas markets and has targeted exports to increase to 25 per cent of 2010 sales. It is entering shipbuilding, railway locomotives, power generation and power equipment as well.

While all these investments in different businesses will help sustain future growth, the medium term continues to be robust. Some of it is already rubbing off positively on the share price. Although the stock seems richly valued, it can fetch good returns.

ONGC
Oil exploration companies are set to benefit from the current high oil prices and firm outlook. India's largest oil exploration company, ONGC is the best bet in this space. ONGC with interest in 85 domestic blocks including 52 offshore fields, has made 28 discoveries in the past two years, of which, 14 were made in FY08 itself.

Further, its 100 per cent subsidiary, ONGC Videsh has stakes in 26 blocks across 15 countries and is expected to be the key growth driver with its share in ONGC's consolidated revenues and profits expected to rise to 20 per cent (14 per cent now) and 14 per cent (9 per cent now) respectively.

ONGC's substantial interests in MRPL, Petronet LNG, GAIL and Indian Oil Corporation are the topping. Moreover, the IPO of Oil India in the next few months could provide further triggers.

What also makes ONGC attractive is that it is the cheapest among its Asian peers trading at 10.1 times estimated FY09 earnings and enterprise value per barrel oil equivalent of about 7.5 times for FY09.

Going ahead, exploration successes especially in the KG basin and favourable announcement on various issues like sharing of subsidy burden, cess and deregulation in gas prices will be big positives.

Reliance Communications
Reliance Communications (RCOM) has a mobile telephony market share of 18 per cent and subscriber base of 38 million, which is rising by a million every month. And this should continue to rise as RCOM penetrates into smaller towns.

What's more interesting is that despite concerns over declining, operating margins have improved to 42.2 per cent in Q2 FY08, thanks to the benefits of larger scale.

This is expected to improve further if RCOM gets the go-ahead to operate an additional 15 GSM circles as 65 per cent of passive infrastructure such as telecom towers, is common to both GSM and CDMA technologies and the investments in its existing networks will be incremental.

Additionally, it is the value unlocking in its subsidiaries that are likely to provide further triggers.

In 2008, RCOM is likely to announce a stake sale and subsequently list its tower subsidiary, Reliance Telecom Infrastructure, list its submarine cable subsidiary, FLAG Telecom, hive off of its SEZ and BPO businesses and the launch IPTV and DTH services by the first quarter of 2008.

Analysts estimate that a conservative sum-of-parts valuation based on FY09 numbers for RCOM comes to Rs 850-Rs 900 per share, which indicates an appreciation of 17-24 per cent from current levels.

Reliance Industries
In 2008, Reliance Industries' (RIL) exploration and production (E&P) division, which accounts for 50 per cent of its sum-of-parts valuation, will start selling gas from the KG Basin. The only ambiguous aspect here seems to be the pricing of gas and settlement with the ADA group and NTPC.

Within a few months, Reliance Petroleum will also start operations, all of which should lead to a jump in RIL's profits.

Also, the bids for NELP VII will be awarded by July 2008. While further wins will add to reserves, new discoveries at existing reserves should further add to valuations and the possible de-merger of RIL's E&P division would unlock value.

While the company is yet to prove its mettle in its retail and SEZ initiatives, given its track record managing mammoth projects, one can hope to see positive results here as well.

Notably, analysts maintain their bullish outlook on the core businesses. Refining margins for RIL, already the best among global players, should remain firm until FY11, while petrochemical margins are expected to be stable with good growth in volumes. At a P/E of under 12 times FY09 estimated core earnings, RIL is a worthy investment.

State Bank of India
SBI's move to merge State Bank of Saurashtra with itself has the potential to trigger the re-rating of public sector banking stocks by pushing the much needed consolidation process.

To further expedite consolidation, the boards of SBI and its other six associate banks are meeting in January to consider merger. Should that happen, SBI's standalone balance sheet size will grow 1.5 times to Rs 8.20 lakh crore, almost double the size of ICICI Bank's.

Also, its branch network will jump 50 per cent to 14,400 branches. But, the improvement in valuations (re-rating) should get a boost when the merged entity is able to rationalise costs and extract benefits from the merger.

SBI will raise Rs 17,000 crore through a rights issue that should provide fuel for future growth. In a competitive Indian banking business, it is important for banks to achieve size and scale to be globally competitive.

And for investors, it is more important to find such banks at reasonable valuations. SBI meets both these criteria. SBI's stock trades at 2.2 times and 2 times its estimated consolidated book value for FY08 and FY09 respectively.

Further, SBI has investments in mutual fund and life insurance subsidiaries, which make valuations more compelling.
Source:-brokersreport.(blog)

Cement Price hike

On the ground

Key markets facing price hikes of over Rs 5.

Firms say trend is in sync with commodity price rises.

Location may contribute to future price trends.

So cements stocks can see a momentum this week.

Look out for Grasim, Shree Digvijay cement, Shree Cement, etc

Research.

Patel Engineering
Patel Engineering, which is having an order book of Rs 5,400 crore almost 4.8 times its FY07 revenues, would be the key beneficiary of the boom in the construction, power and real estate sectors.

Within power sector, the 11th Five Year Plan has an outlay of Rs 70,000 crore, adding another 18,000 mw in hydropower generation. Patel Engineering has 22 per cent market share in the domestic hydropower construction, which accounts for 60 per cent of its current order book.

Also, the company has pre-qualified for new projects worth over Rs 6,000 crore as on September 30, 2007.

Besides, its entry into own power generation setting up of 1,200 mw thermal power plant at an investment of Rs 5,000 crore are positive triggers. Meanwhile, its core businesses including construction of dams, transportation and micro-tunneling are growing at a faster pace thus providing sustainable earnings growth.

The immediate trigger would come from its real estate business. Patel Engineering has transferred a land bank of about 1,000 acres spread across Bangalore, Chennai, Hyderabad and Mumbai to Patel Realty India, a 100 per cent subsidiary.

According to estimates, the real estate business is valued between Rs 500-520 per share. All of these make Patel Engineering an attractive investment.

Acoording to me this is a superb rockin scrip.
CMP:-716.00rs
Face value= 1rs
EPS= rs 18 (i.e earning per share)
Last dividend is of 130%.

overview-II

Market maimed amid sharp volatility
The Sensex witnessed a wild intra-day swing of 486 points and dropped 107 points at close on broad-based selling pressure.
The market recorded its third straight loss as players resorted to heavy selling on lack of liquidity support from FIIs, which have been offloading equities sharply in
the past few sessions. Positive international indices also failed to lift the sentiment, as the Sensex drifted into negative territory in late morning trades after gaining 162 points in early trades to touch the day's high of 17,689. The sentiment turned extremely bearish in noon trades as sustained selling in heavyweights, CD, metal, realty and bankex stocks dragged the index below to an intra-day low of 17,203. The Sensex, which gyrated 486 points during intra-day trades, finally ended the session with losses of 62 points at 17,465, while the Nifty dropped 13 points to close at 5,120.

Movers & Shakers

* Marg Construction lost despite the launch of its mega infrastructure project--MARG Swarnabhoomi.
* Elecon Engineering gained on reports that the company has been awarded a prestigious order of Rs47.00 crore by M/s Sical Iron Ore Terminals, Chennai.
* Larsen & Toubro slipped even after the company won Rs1,107 crore order from SAIL's IISCO Steel Plant at Burnpur.
* Bharat Forge rose on report that the Company signed a MOU with NTPC to set up a joint venture company.
* ABB rose marginally on winning Rs330 crore worth of substation orders from Power Grid Corporation of India.


The market breadth was exceedingly negative. Of the 2,801 stocks traded on the BSE, 2,250 stocks declined, 511 stocks advanced and 40 stocks ended unchanged. All the sectoral indices ended in the red. The BSE CD index dropped 3.20% at 4,737 followed by the BSE Metal index (down 2.67% at 15,115), the BSE Realty index (down 2.46% at 9,784), the BSE Bankex index (down 2.17% at 10,159) and the BSE CG index (down 1.62% at 15,859).

Out of 30 Sensex stocks, only 14 stocks managed to end in positive territory. Among the major laggards, HDFC slumped 4.47% at Rs2,796, ICICI Bank tumbled 3.49% at Rs1,066.70, DLF plunged 3.33% at Rs816.70, HDFC Bank declined 3.06% at Rs1,445.95, L&T dipped 2.84% at Rs3,527, Tisco crumbled 2.72% at Rs750.40, Bajaj Auto lost 2.70% at Rs2,217, M&M shed 2.08% at Rs644.95, Hindalco fell 1.71% at Rs160.50 and NTPC was down 1.50% at Rs203.30. Hind Utilities, however, bucked the downtrend and advanced 6.09% at Rs211.75, Infosys ended with steady gains at Rs1,551.35, Satyam moved up at Rs410, Wipro soared at Rs422.45, ITC, Ranbaxy, Bharti Airtel, TCS, SBI, ONGC, ACC and Maruti traded with decent gains.

Over 2.90 crore Ispat Industries shares changed hands on the BSE followed by RPL (1.69 crore shares), Chambal Fertilisers (57.04 crore shares), Arvind Mills (43.65 lakh shares) and Ashok Leyland (42.26 lakh shares).
Source:-stockresearch.