Crazy Infotech Ltd.
Crazy Infotech Ltd.524388 CRAZYINF Group (B2)52wk H/L (Rs) 268.95 - 66.10Last traded 60.35Time 01 Feb, 15:50Prev Close 67.05Mkt Cap (Rs Cr) 35.61Specialists in IT Enabled SolutionsCrazy InfoTech Limited is one of the most mature “Total IT Solutions” company in India. Crazy Infotech Limited is a proactive organization based in Chennai, India, specializing in customized software development, web development & website design with interactive flash & multimedia animation, system integration, networking solutions, corporate training, web promotion and consultancy services. Crazy Infotech Limited has also launched various initiatives in the area of corporate training and IT education. This has brought the company as a benchmark for Training solutions by some of the biggest names of the global corporate world and Govt. Institutions.
Education and Training
The division caters to the worldwide requirements of budding IT aspirants and employees of organizations with state-of-the-art teaching methodology. In the light of experience gained from implementing software projects and being resources full in technical strengths and advanced trends in IT, the division offers quality training towards enhancing the quality of computer Education. The division offers a variety of courses that specifically meet the demands of students and professionals of all types.Streamlined approach, right from the conceptual phase to the implementation phase characterizes our courses. The curriculum is comprehensive since it is based on the inputs from the project consulting division and leading software consultants.We deliver technical training solutions, designed to be the highest-quality solution available in each marketplace we serve. The division offers hands-on, instructor-led training programs from premier training facilities. In our specially designed classrooms, each student has their own system. Our state-of-the-art facilities allow our trainers to cover a variety of topics quickly and in substantial depth.The division offers a vast spectrum of IT programs catering to different student community and IT training in various cutting-edge platforms and technologies.
Exhibitions & Innovations
The company has developed a special team of experts and creative brains with special skill sets for conducting exhibitions, workshops, campus shows, Fairs, Mini floor shows, cash and carry shows, Real time shows and many other innovative sales promotion shows / activities under this division. The division is manned by highly talented, dedicated professionals. The main thrust of the division is to take the IT resources, knowledge to the gross roots of the country and also to the door step of many people and provide an opportunity of awareness of trends in systems, networking, technologies etc to the people. The division sells multi branded products, IT solutions, provide information also on latest courses in education, potential of the courses, growth of careers, employment news, etc. under one roof. The roof may be an exhibition or an innovative platform. This innovative platform could be used for promotion of concepts, new ideas, products outsourced, information on various products so on, so forth so to say in nutshell any thing that could be bought and sold under this platform. The division organizes exhibitions at different parts of the country exclusively for Crazy to display its own computers, Branded systems like Compaq, HP, HCL, Zenith and in addition to different variety of Printers like Canon, Epson, HP, Lexmark, Software solutions, the information and product as stated above and many more…. Crazy’s software & Training division also comes out with Specialized Stalls to showcase their different products in the exhibitions. This exhibition division gives a good leverage for Crazy over its competitors by bringing people from different walks of life, industry, Segment in exhibition under a single roof to view different products like Computers, Printers, Software Products, and Software Training and to promote sales, concepts etc.
Career
At Crazy, Sky is Never the Limit .... At crazy Infotech Ltd., we are proud to be a leader in IT Service arena in India. Listed on the Bombay Stock Exchange. Crazy today employs more than 100 professionals who have been groomed into building a successful fast paced career in the sofware industry. Crazy having a prestigious clientele who are leaders in Technology, Textile, Healthcare Financial Services and Banking, Telecommunication and so on. We invite you to Crazy and to explore the global perspective of an IT Career.
Crazy Infotech Board to consider stock split
Crazy Infotech Ltd has informed that a meeting of the Board of Directors of the Company will be held on January 07, 2008, to transact the following business:1. To consider issue of GDR.2. To consider issue of FCCB.3. To split the stock into smaller denomination.Crazy Infotech Board approves Stock SplitCrazy Infotech Ltd has informed that the Board of Directors of the Company at its meeting held on January 07, 2008 has decided to convene an Extra Ordinary General Meeting of the Shareholders to be held on February 06, 2008 for the purpose of obtaining the approval of shareholders in the following matters, and has approved the notice to be sent to the Shareholders containing the agenda and the explanatory statement:1. Approval under Section 81 (1A) and other applicable provisions, if any, of the Companies Act, 1956 and subject to such other approvals / consents as may be required from such authorities, to further issue of shares by International Offerings through a public issue of convertible securities / ADRs / GDRs and FCCBs convertible into Equity Shares of the Company upto US$ 50 Million (Indian Rupees 200 Crores).2. Increase of the Authorized Share Capital of the Company from Rs 10 crores to Rs 12 crores.3. Splitting of the Equity shares of the Company from the present Face Value of Rs 10/- into Face of Value of Re 1/-.4. Alteration of the Clause V (Capital Cause) of the Memorandum of Association of the Company and Articles No. 8A of the Articles of Association of the Company to incorporate of the aforesaid changes.Further the Company has informed that, the Board has also approved the Shifting of the Registered office of the Company within the City Limits from the present to 304, Bal Ashram Rajiv Gandhi Complex, Kutchery Chowk, Raipur (C.G) w.e.f. January 07, 2008.
Tuesday, February 26, 2008
Sunday, February 24, 2008
IRB INFRASTRUCTURE DEVELOPERS LTD.CORPORATE
IRB Infrastructure Developers Ltd.Corporate OverviewAbout Us
IRB Infrastructure Developers Ltd. was incorporated to fund the capital requirements of the IRB Group initiatives in the infrastructure sector. The company undertakes development of various infrastructure projects in the road sector through several Special Purpose Vehicles. (Businesses of holding co. and its subsidiaries will be implemented under superintendence, direction and control of the board of holding company, with the objective of maximizing value for all stakeholders.)
The company, along with its subsidiaries has constructed or , operated and maintained around 1200 kms of road length so far and one of the major road developers in the country. The aggregate size of all our BOT projects (both completed and under execution) is around Rs. 33,000.00 million.
Our SubsidiariesIdeal Road Builders Pvt. Ltd
ATR Infrastructure Pvt. Ltd.
Aryan Toll Road Pvt. Ltd.
Mhaiskar Infrastructure Pvt. Ltd.
IDAA Infrastructure Pvt. Ltd.
NKT Road and Toll Pvt. Ltd.
IRB Infrastructure Pvt. Ltd.
MMK Toll Road Pvt. Ltd.
Modern Road Makers Pvt. Ltd.
Thane Ghodbunder Toll Road Pvt. Ltd.
Aryan Infrastructure Investments Pvt. Ltd.
Board of Directors
Mr. V. D. MhaiskarChairman & Managing Director
Mr. V. D. Mhaiskar, is the Chairman and Managing Director of the Company. He holds a diploma in civil engineering from Shriram Polytechnic, Navi Mumbai. As a Civil Engineer, he has hands on experience of more than 17 years in the construction and infrastructure industry to his credit. He is responsible for developing new business, executing road construction and BOT projects. He is providing overall vision and strategy to the Company.
Mr. D. P. MhaiskarDirector
Mr. D.P.Mhaiskar holds a diploma in civil engineering from Sir Kursowadia Institute of Electrical Technology, Pune. He has over 47 years of professional experience in construction and infrastructure industry. He is the founder of Ideal Road Builders Private Limited, now a subsidiary of IRB. He is the Chief Mentor of the Group. He is also the managing trustee for number of charitable trusts engaged in education, welfare and sports activities.
Mrs. D. V. MhaiskarDirector
Mrs. D.V.Mhaiskar is a graduate in Arts with major in Economics from L. D. Arts College, Ahmedabad, Gujarat. She is the Director of IRB since incorporation of the Company. She is looking after the administration of the Company.
Mr. S. G. KelkarDirector
Mr. S. G. Kelkar has a degree in commerce from H. A. Collage of Commerce, Ahmedabad. He is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Kelkar has over 35 years of experience in accounts, finance and management functions. He retired from Arvind Mills (Laljibhai Group) as a Vice President.
Mr. G. G. DesaiDirector
Mr. Govind G. Desai, aged 74 years, holds a Bachelor’s degree in Arts (Economics & Politics) and a Master’s degree in law. Mr. Desai is a qualified solicitor and is a member of the Bombay Incorporated Law Society. He was a senior partner with Little & Co., and following his retirement, has started his own practice. Mr. Desai has over 46 years of experience in corporate and commercial law.
Mr. C. S. KaptanDirector
Mr. C.S. Kaptan , B.A., LL.B is a practicing Lawyer at Nagpur Bench of the Mumbai High Court since 1975 representing Government, Semi Government and Private Institution mostly in Constitutional and civil matters. He was the Senior Standing Counsel for Union of India during 2001 - 2003 at Nagpur Bench of the Mumbai High Court. Presently acting as Special Counsel and a Panel Counsel for the State of Maharashtra for High Court.
Mr. B. K. KhareDirector
Mr. B.K. Khare, B.Com, LL.B., is a Fellow Member of Institute of Chartered Accountants of India and Fellow Member of Institute of Company Secretary of India. He is a founder Senior Partner of M/s B.K. KHARE & CO. a reputed firm of Chartered Accountants; practicing Chartered Accountant for last four decades. He is specialized in the field of taxation, particularly corporate taxation, tax planning and financial management. He is a acclaimed commentator on Annual Budget proposal of Union Government for the last two decades
Mr. Berjis DesaiDirector
Mr. Berjis Desai, is a post graduate in Law from Cambridge University, UK. He has been practicing law since 1980. Lately, a founder partner of Udwadia, Udeshi and Bejis, Berjis is the Managing Partner of the Firm. He specializes in financial & securities law, structured finance, securitization and OTC derivatives as well as offshore investments. In addition he has extensive experience both as an arbitrator and counsel, in international commercial and domestic arbitrations. He was acting as an Arbitrator for The London Court of International Arbitration and ICC - India. He is a member of American Arbitration Association and the Bombay Incorporated Law Society.
Road ConstructionCompleted Projects
S.N. Name of the Project Client Length(in Kilometer) Year of Completion
1 Various Civil Works on Mumbai City on behalf of BMC Mumbai Municipal Corporation 10.00 1989-1995
2 Strengthening and resurfacing to the mail runway 14/32 at CA Nagpur Airport Authority of India 3.30 08.11.1995
3 Improvement to Akola - Hingoli Road from Km 3/00 to 99/00 Public Work Department ( Work Bank Aided Project) 114.00 31.05.1995
4 Improvement to Pune - Ahmadnagar Road S.H. Km 8/00 to 121/600 Public Work Department (Work Bank Aided Project) 96.00 30.11.1995
5 Improvement to Pune - Jalgaon Road 318/00 to 332/00 and Ajanta Caves Road 0/00 to 4/00 SH 182 Public Work Department, Maharashtra 18.00 31.12.1997
6 Construction of two lane ring road around Nagpur city from Katol Road to Amravati Road Public Work Department, Maharashtra 4.66 31.03.1999
7 Improvement to Malegaon - Mehkar Road SHW 207 Km 0/00 to 45/00 Public Work Department, Maharashtra 45.00 10.07.2000
8 Improvement of Balapur - Patur Road from Km 17/400 to 27/00 (SH 198 ) & from Km 274/500 to 276/960 of NH.61 Public Work Department, Maharashtra 12.46 29.03.1999
9 Widening to 4 lanes and strengthening of existing 2 lane of Ratanpur to Himmatnagar section of NH-8 ( Package - UG III ) FROM Km 388/400 to 443/000 National Highways Authority of India 54.60 23.01.2004
10 Maintenance and Rehabilitation work of Chiloda - Naroda section from 495/00 to Km 507/700, Ahmedabad Bypass from Km 0/00 to 13/200 and Ahmedabad Vadodara Section from Km 6/400 to 130/00 of NH - 8 in the state of Gujarat - ( Package - I ) National Highways Authority of India 123.60 31.08.2005
11 Maintenance and Rehabilitation work of Vadodara - Surat Section of NH-8 in the state of Guajarat - ( Package - II ) National Highways Authority of India 133.40 31.12.2005
12 Short term improvement and Routine maintenance of four lanned National Highway Section of NH-8 - Manor Bassein Creek - Dahisar ( Km 439/00 to Km 502 /00) Package - III National Highways Authority of India 63.00 Feb-06
13 Short term improvement and Routine maintenance of four lanned National Highway Bangalore - Neelamangala Section ( Km 10/00 to 29/500) on NH-4 and Bangalore - Hosur Section ( Km 8/00 to 33/015) Package - IV National Highways Authority of India 44.52 Feb-05
14 Improvement of Ahmedabad - Vadodara Section of NH-8 (Km 6/400 to Km 104/00 Ahmedabad Vadodara Expressway Co . Ltd ( a wholly subsidiary of National Highways Authority of India ) 97.60 23.04.2007
15 Construction new bridge on Muthekar Nala at Dronagiri Node CIDCO Ltd 54.00 Mtrs 31.01.2007
Ongoing ProjectsS. N. Name of the Project Estimated Cost (Rs. in Million)
1 Nagpur - Hyderabad - NS -61 1152.362 Nagpur - Hyderabad - NS - 59 1170.003 BRTS - Package - I 1255.554 BRTS - Package - IV 783.57
BOT PROJECTS
Under Construction
S. N. Name of the Project Estimated Capitalized Cost(Rs. in Million) Name of Subsidiary1. Bharuch - Surat BOT Project 14091.00 IDAA Infrastructure Private Limited
Operational
S. N. Name of the Project Capitalized Cost (Rs. in Million) Name of Subsidiary1 Thane Bhiwandi Bypass 4 Lane Project (Phase I & II) 1040.00 Ideal Road Builders Private Limited
2 Bhiwandi Wada BOT Project 94.50 Ideal Road Builders Private Limited
3 Kaman Paygon BOT Project 144.00 Ideal Road Builders Private Limited
4 Khambatki Ghat BOT Project 450.00 Ideal Road Builders Private Limited
5 Kharpada Bridge BOT Project 320.00 IRB Infrastructure Private Limited
6 Nagar - Karmala - Tembhurni BOT Project 368.00 NKT Road & Toll Private Limited
7 Mohol - Kurul - Mandrup Kamti BOT Project 180.00 MMK Toll Road Private Limited
8 Pune- Solapur BOT Project 630.00 Aryan Toll Road Private Limited
9 Pune - Nashik BOT Project 737.04 ATR Infrastructure Private Limited
10 Mumbai - Pune BOT Project 13016.40 Mhaiskar Infrastructure Private Limited
11 Thane Ghodbunder BOT Project 2462.76 Thane Ghodbunder Toll Road Private Limited
EquipmentsThe company is fully equipped with an entire inventory of state-of-the-art road construction machinery. An inventory large enough to undertake at least 7 projects simultaneously.
CONSTRUCTION EQUIPMENT OWNED BY THE GROUP Equipments QuantityVibratory Rollers (Soil Compactor) 14 Nos.Vibratory Tandem Rollers (Asphalt Compactor) 25 Nos.Static Rollers 2 Nos.Pneumatic Tyre Rollers 6 Nos.Sensor Pavers (9.om width) 4 Nos.Sensor Pavers 12 Nos.Front End Rollers 13 Nos.Skid Steel Loaders (with milling and sweeping attachment) 2 Nos.JCB/Excavator Loaders 17 Nos.Dumpers (10 Tones) 40 Nos.Dumpers (25 Tones) 155 Nos.Concrete Mixers (15 m3/hr.capacity) 2 Nos.Kerb Laying Machine 6 Nos.Cranes 3 Nos.Excavators 10 Nos.Graders 6 Nos.Bulldozers 2 Nos.DG Sets 63 Nos.Light source 5 Nos.Transit Mixer 14 Nos.
PLANT OWNED BY THE GROUP Equipments Quantity
Asphalt Hot Mix (Batch Mix Type) 10 Nos.Asphalt Hot Mix (Drum Mix Type) 2 Nos.Stone Crushers Units 8 Nos.Concrete Batch Mix Plant 4 Nos.Wet Mix Plant 3 Nos.
CareersHR Initiatives
EMPLOYEES BENEFITS
Leave. All permanent employees are entitled for 25 days of paid leave in a calendar year. Leave not availed at the end of the year will be en-cashed Gross salary of the employee will be taken in account for the purpose of en-cashing of the leave.
Provident fund. From day one of joining to employees on 50% of gross salary as per the provision of Provident Fund Rules.
Gratuity. All permanent employees are entitled to the benefit of Gratuity as per the Gratuity Act i.e. half months of salary (Basic salary) for each completed year of service. Minimum service eligibility 5 years of continuous employment with the company.
Bonus. One Month’s gross salary as Bonus once in year during the time of Diwali.
Project Incentive. On completion of project, subject to timely completion and profitability of the project, ad-hoc on discretion of the management.
Soft Loans on nominal interest / Advances to employees for meeting expenses for personal emergencies, medical treatment, purchases etc
Medical Leave / Re-imbursement. Leave of absence on medical advice with full/partial /no pay and full / partial reimbursement of cost of medical treatment incurred by the employee or ex-gratia grant for medical treatment for employees and their families on the discretion of the management on case to case basis.
Furniture Purchase Grant. Once during the term of employment with the company as per grades.
Leave for Self Marriage. 15 days of paid leave in addition to annual leave entitlement to an employee once during employment with the company.
Maternity Leave. 12 weeks of paid leave to married permanent female employees of the company twice during their term of employment with the company.
4 weeks of paid leave for married permanent female employees of the company in case of abortion or medical termination of pregnancy.
Uniform. 2 pairs of Uniform (Shirt and Trousers), one pair of leather shoes to non –executive staff once every year.
Relocation Assistance: Reimbursement of actual expenses incurred on travel and transfer of household goods by road , in case of transfer from one project to another as per requirement of the company.
Current Openings
S. N. Position No. of Vacancies Required Qualifications Minimum Experience Preferred1 Material Engineer 1 B.E.(Civil) 10 years Experience in NHAI BOT Projects
2 Bridge Engineer 1 B.E.(Civil) 15 years Experience in NHAI BOT Projects
3 Project manager 1 B.E.(Civil) 15 years Experience in NHAI BOT Projects
4 Accounts/Audit Officers 6 B.Com./Inter C.A. 5 years Experience in Computerised Accounting and Tally
5 Executive Assistant 1 Graduate/MBA 5 years Knowledge of Stenography and Computers
6 Purchase Officer 5 B.E.(Civil)/ Graduate 5 years Experience of Purchase in Construction Companies
News & EventsHistory and Major Events : The chronology of key events since the inception of the IRB Group is as follows:
Year Key Events, Milestones and Major Achievements1977 Ideal Road Builders Private Limited (IRBPL) incorporated – as private Limited Company1977 to 1995 Execution of Various Construction Contracts in the Road Sector including World Bank Aided Projects from time to time as an EPC contractorSep 1995 First venture in BOT Project - Signing of Concession Agreement of Thane Bhiwandi Bypass Phase I - First BOT Project of the Country.June 1997 Completion of Thane Bhiwandi Phase INov 1997 Signing of Concession Agreement of Kharpada BOT Project – Bridge over River PatalgangaJan 1998 Signing of Concession Agreement of Wada Bhiwandi BOT ProjectJuly 1998 IRB Infrastructure Developers Limited - Holding company incorporatedSept 1998 Signing of Concession Agreement of Thane Bhiwandi Bypass Phase II Nov 1998 Signing of Concession Agreement of Khambatki Ghat BOT ProjectDec 1998 Signing of Concession Agreement of Kaman Paygaon BOT ProjectJuly 1998 IRB Infrastructure Developers Limited - Holding company incorporatedFeb 1999 Completion of Wada Bhiwandi BOT ProjectJuly 1999 Completion of Kharpada Project - Bridge over River PatalgangaMar 2000 Completion of Kaman Paygoan BOT ProjectAug 2000 Completion of Khambatki Ghat BOT ProjectJan 2001 Signing of Joint Venture with Mudajaya Corporation of Malaysia for NHAI Funded Contract for Ratanpur to Himmatnagar Section of NH 8 for 54 kms Jan 2001 Signing of EPC Funded Contract for Ratanpur to Himmatnagar Section of NH 8 for 54 kms with NHAI under Prime Ministers’ Golden Quadrilateral SchemeNov 2001 Signing of Concession Agreement of Nagar Karmala Temburni Road BOT Project
May 2002 Signing of O & M & Rehabilitation Work Contract with NHAI for Chiloda Naroda Section, Ahmedabad Bypass and Ahmedabad –Vadodara Section of NH8 in Gujarat StateMay 2002 Signing of O & M & Rehabilitation Work Contract with NHAI for Vadodara -Surat Section of NH8May 2002 Signing of Concession Agreement of MMK BOT ProjectFeb 2003 Signing of Concession Agreement of Pune Solapur BOT ProjectDec 2003 Completion of Thane Bhiwandi Bypass BOT Project - Phase IIAug 2003 Completion of Nagar Karmala Temburni Road BOT ProjectAug 2003 Signing of Concession Agreement of Pune Nashik BOT ProjectJan 2004 Completion of EPC Funded Contract of Ratanpur Himmatnagar Section of NH 8 for 54 kms with NHAI under Prime Ministers’ Golden Qadrilateral SchemeMay 2004 Emerged as highest bidder for Mumbai Pune BOT Project – Paid upfront payment of Rs 9180.00 million to MSRDC for concession of 15 yearsAug 2004 Signing of Concession Agreement & Completed Financial closure of Mumbai Pune BOT in record time of 4 months with one of the largest debt tie up of Rs 11870.00 million in the country.Aug 2004 Construction of NH 4 and Toll Collection Commenced of Mumbai Pune BOT Project Expressway as BOT operatorDec 2004 Completion of Pune Solapur BOT ProjectApr 2005 Commencement of O & M on Mumbai Pune Expressway as BOT operatorJuly 2005 Signing of Contracts of Four Laning of Nagpur Hyderabad Section of NH7 Package No 59 & 61 of NHAI. Funded EPC Works Nov 2005 Emerged as the Highest Bidder for Thane Ghodbunder Road BOT Project. Paid negative grant of Rs.1404.00 million to MSRDC for Concession rights for 15 YearsDec 2005 Completion of Pune Nashik BOT ProjectDec 2005 First venture in BOT Project - Signing of Concession Agreement of Thane Bhiwandi Bypass Phase I - First BOT Project of the Country.July 2006 Signing of Concession Agreement of Bharuch Surat BOT ProjectSept 2006 Toll Collection commences on Mumbai Pune NH 4
Nov 2006 Achieved Financial Closure of Bharuch Surat Project with one of the largest Debt tie up for single BOT Project of Rs. 12100.00 million in a record timeDec 2006 Emerged as highest Bidder to Bharuch Surat BOT Project Offering largest ever negative grant to NHAI of Rs.5040.00 Million Jan 2007 Executred Memorandum of Understanding to form Consortium with Deutsche Bank AG, Singapore to jointly pre qualify for 8 Packages of Four to six laning under NHDP V -Estimated total Project cost of Rs 81200.00 MillionFeb 2007 Bagged the Funded contract from Ahmedabad Municipal Corporation for construction of Janmarg (Bus Rapid Transport System Project) from Narol Circle to Naroda Patiya in Ahmedabad – total order size Rs. 1255.55 MiillionJune 2007 Bagged the Funded contract from Ahmedabad Municipal Corporation for construction of Janmarg (Bus Rapid Transport System Project) from Pirana – Danilimda – Maninagar – Naorl in Ahmedabad – total order size Rs. 783.57 Million
IRB Infra to list on bourses on MondayIRB Infrastructure Developers Ltd, which raised about Rs 944 crore through its IPO last month, will list on the bourses on Monday.
The company has fixed the issue price at the lower end of price band of Rs 185-220. IRB Infrastructure offered 5.1 crore equity shares through the IPO, constituting 15.36 per cent of its fully diluted post issue paid-up capital. The issue got subscribed by over four times.
The company has received an order from the National Highway Development Project (NHDP) for developing the 239 km Surat-Dahisar section of NHDP-Phase V.
The project would involve a capex of over Rs 2,600 crore and operation and management cost of around Rs 1,200 crore.
The order book position of IRB Infrastructure has doubled to over Rs 5,000 crore with the contract. As of June 30, 2007, the company had an order book position of Rs 2,386 crore.
The company is already implementing projects totalling 414 km as it has bagged concessions for Mumbai-Pune Expressway (110 km) and Surat- Bharuch section (65 km).
IRB Infrastructure Developers Ltd. was incorporated to fund the capital requirements of the IRB Group initiatives in the infrastructure sector. The company undertakes development of various infrastructure projects in the road sector through several Special Purpose Vehicles. (Businesses of holding co. and its subsidiaries will be implemented under superintendence, direction and control of the board of holding company, with the objective of maximizing value for all stakeholders.)
The company, along with its subsidiaries has constructed or , operated and maintained around 1200 kms of road length so far and one of the major road developers in the country. The aggregate size of all our BOT projects (both completed and under execution) is around Rs. 33,000.00 million.
Our SubsidiariesIdeal Road Builders Pvt. Ltd
ATR Infrastructure Pvt. Ltd.
Aryan Toll Road Pvt. Ltd.
Mhaiskar Infrastructure Pvt. Ltd.
IDAA Infrastructure Pvt. Ltd.
NKT Road and Toll Pvt. Ltd.
IRB Infrastructure Pvt. Ltd.
MMK Toll Road Pvt. Ltd.
Modern Road Makers Pvt. Ltd.
Thane Ghodbunder Toll Road Pvt. Ltd.
Aryan Infrastructure Investments Pvt. Ltd.
Board of Directors
Mr. V. D. MhaiskarChairman & Managing Director
Mr. V. D. Mhaiskar, is the Chairman and Managing Director of the Company. He holds a diploma in civil engineering from Shriram Polytechnic, Navi Mumbai. As a Civil Engineer, he has hands on experience of more than 17 years in the construction and infrastructure industry to his credit. He is responsible for developing new business, executing road construction and BOT projects. He is providing overall vision and strategy to the Company.
Mr. D. P. MhaiskarDirector
Mr. D.P.Mhaiskar holds a diploma in civil engineering from Sir Kursowadia Institute of Electrical Technology, Pune. He has over 47 years of professional experience in construction and infrastructure industry. He is the founder of Ideal Road Builders Private Limited, now a subsidiary of IRB. He is the Chief Mentor of the Group. He is also the managing trustee for number of charitable trusts engaged in education, welfare and sports activities.
Mrs. D. V. MhaiskarDirector
Mrs. D.V.Mhaiskar is a graduate in Arts with major in Economics from L. D. Arts College, Ahmedabad, Gujarat. She is the Director of IRB since incorporation of the Company. She is looking after the administration of the Company.
Mr. S. G. KelkarDirector
Mr. S. G. Kelkar has a degree in commerce from H. A. Collage of Commerce, Ahmedabad. He is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Kelkar has over 35 years of experience in accounts, finance and management functions. He retired from Arvind Mills (Laljibhai Group) as a Vice President.
Mr. G. G. DesaiDirector
Mr. Govind G. Desai, aged 74 years, holds a Bachelor’s degree in Arts (Economics & Politics) and a Master’s degree in law. Mr. Desai is a qualified solicitor and is a member of the Bombay Incorporated Law Society. He was a senior partner with Little & Co., and following his retirement, has started his own practice. Mr. Desai has over 46 years of experience in corporate and commercial law.
Mr. C. S. KaptanDirector
Mr. C.S. Kaptan , B.A., LL.B is a practicing Lawyer at Nagpur Bench of the Mumbai High Court since 1975 representing Government, Semi Government and Private Institution mostly in Constitutional and civil matters. He was the Senior Standing Counsel for Union of India during 2001 - 2003 at Nagpur Bench of the Mumbai High Court. Presently acting as Special Counsel and a Panel Counsel for the State of Maharashtra for High Court.
Mr. B. K. KhareDirector
Mr. B.K. Khare, B.Com, LL.B., is a Fellow Member of Institute of Chartered Accountants of India and Fellow Member of Institute of Company Secretary of India. He is a founder Senior Partner of M/s B.K. KHARE & CO. a reputed firm of Chartered Accountants; practicing Chartered Accountant for last four decades. He is specialized in the field of taxation, particularly corporate taxation, tax planning and financial management. He is a acclaimed commentator on Annual Budget proposal of Union Government for the last two decades
Mr. Berjis DesaiDirector
Mr. Berjis Desai, is a post graduate in Law from Cambridge University, UK. He has been practicing law since 1980. Lately, a founder partner of Udwadia, Udeshi and Bejis, Berjis is the Managing Partner of the Firm. He specializes in financial & securities law, structured finance, securitization and OTC derivatives as well as offshore investments. In addition he has extensive experience both as an arbitrator and counsel, in international commercial and domestic arbitrations. He was acting as an Arbitrator for The London Court of International Arbitration and ICC - India. He is a member of American Arbitration Association and the Bombay Incorporated Law Society.
Road ConstructionCompleted Projects
S.N. Name of the Project Client Length(in Kilometer) Year of Completion
1 Various Civil Works on Mumbai City on behalf of BMC Mumbai Municipal Corporation 10.00 1989-1995
2 Strengthening and resurfacing to the mail runway 14/32 at CA Nagpur Airport Authority of India 3.30 08.11.1995
3 Improvement to Akola - Hingoli Road from Km 3/00 to 99/00 Public Work Department ( Work Bank Aided Project) 114.00 31.05.1995
4 Improvement to Pune - Ahmadnagar Road S.H. Km 8/00 to 121/600 Public Work Department (Work Bank Aided Project) 96.00 30.11.1995
5 Improvement to Pune - Jalgaon Road 318/00 to 332/00 and Ajanta Caves Road 0/00 to 4/00 SH 182 Public Work Department, Maharashtra 18.00 31.12.1997
6 Construction of two lane ring road around Nagpur city from Katol Road to Amravati Road Public Work Department, Maharashtra 4.66 31.03.1999
7 Improvement to Malegaon - Mehkar Road SHW 207 Km 0/00 to 45/00 Public Work Department, Maharashtra 45.00 10.07.2000
8 Improvement of Balapur - Patur Road from Km 17/400 to 27/00 (SH 198 ) & from Km 274/500 to 276/960 of NH.61 Public Work Department, Maharashtra 12.46 29.03.1999
9 Widening to 4 lanes and strengthening of existing 2 lane of Ratanpur to Himmatnagar section of NH-8 ( Package - UG III ) FROM Km 388/400 to 443/000 National Highways Authority of India 54.60 23.01.2004
10 Maintenance and Rehabilitation work of Chiloda - Naroda section from 495/00 to Km 507/700, Ahmedabad Bypass from Km 0/00 to 13/200 and Ahmedabad Vadodara Section from Km 6/400 to 130/00 of NH - 8 in the state of Gujarat - ( Package - I ) National Highways Authority of India 123.60 31.08.2005
11 Maintenance and Rehabilitation work of Vadodara - Surat Section of NH-8 in the state of Guajarat - ( Package - II ) National Highways Authority of India 133.40 31.12.2005
12 Short term improvement and Routine maintenance of four lanned National Highway Section of NH-8 - Manor Bassein Creek - Dahisar ( Km 439/00 to Km 502 /00) Package - III National Highways Authority of India 63.00 Feb-06
13 Short term improvement and Routine maintenance of four lanned National Highway Bangalore - Neelamangala Section ( Km 10/00 to 29/500) on NH-4 and Bangalore - Hosur Section ( Km 8/00 to 33/015) Package - IV National Highways Authority of India 44.52 Feb-05
14 Improvement of Ahmedabad - Vadodara Section of NH-8 (Km 6/400 to Km 104/00 Ahmedabad Vadodara Expressway Co . Ltd ( a wholly subsidiary of National Highways Authority of India ) 97.60 23.04.2007
15 Construction new bridge on Muthekar Nala at Dronagiri Node CIDCO Ltd 54.00 Mtrs 31.01.2007
Ongoing ProjectsS. N. Name of the Project Estimated Cost (Rs. in Million)
1 Nagpur - Hyderabad - NS -61 1152.362 Nagpur - Hyderabad - NS - 59 1170.003 BRTS - Package - I 1255.554 BRTS - Package - IV 783.57
BOT PROJECTS
Under Construction
S. N. Name of the Project Estimated Capitalized Cost(Rs. in Million) Name of Subsidiary1. Bharuch - Surat BOT Project 14091.00 IDAA Infrastructure Private Limited
Operational
S. N. Name of the Project Capitalized Cost (Rs. in Million) Name of Subsidiary1 Thane Bhiwandi Bypass 4 Lane Project (Phase I & II) 1040.00 Ideal Road Builders Private Limited
2 Bhiwandi Wada BOT Project 94.50 Ideal Road Builders Private Limited
3 Kaman Paygon BOT Project 144.00 Ideal Road Builders Private Limited
4 Khambatki Ghat BOT Project 450.00 Ideal Road Builders Private Limited
5 Kharpada Bridge BOT Project 320.00 IRB Infrastructure Private Limited
6 Nagar - Karmala - Tembhurni BOT Project 368.00 NKT Road & Toll Private Limited
7 Mohol - Kurul - Mandrup Kamti BOT Project 180.00 MMK Toll Road Private Limited
8 Pune- Solapur BOT Project 630.00 Aryan Toll Road Private Limited
9 Pune - Nashik BOT Project 737.04 ATR Infrastructure Private Limited
10 Mumbai - Pune BOT Project 13016.40 Mhaiskar Infrastructure Private Limited
11 Thane Ghodbunder BOT Project 2462.76 Thane Ghodbunder Toll Road Private Limited
EquipmentsThe company is fully equipped with an entire inventory of state-of-the-art road construction machinery. An inventory large enough to undertake at least 7 projects simultaneously.
CONSTRUCTION EQUIPMENT OWNED BY THE GROUP Equipments QuantityVibratory Rollers (Soil Compactor) 14 Nos.Vibratory Tandem Rollers (Asphalt Compactor) 25 Nos.Static Rollers 2 Nos.Pneumatic Tyre Rollers 6 Nos.Sensor Pavers (9.om width) 4 Nos.Sensor Pavers 12 Nos.Front End Rollers 13 Nos.Skid Steel Loaders (with milling and sweeping attachment) 2 Nos.JCB/Excavator Loaders 17 Nos.Dumpers (10 Tones) 40 Nos.Dumpers (25 Tones) 155 Nos.Concrete Mixers (15 m3/hr.capacity) 2 Nos.Kerb Laying Machine 6 Nos.Cranes 3 Nos.Excavators 10 Nos.Graders 6 Nos.Bulldozers 2 Nos.DG Sets 63 Nos.Light source 5 Nos.Transit Mixer 14 Nos.
PLANT OWNED BY THE GROUP Equipments Quantity
Asphalt Hot Mix (Batch Mix Type) 10 Nos.Asphalt Hot Mix (Drum Mix Type) 2 Nos.Stone Crushers Units 8 Nos.Concrete Batch Mix Plant 4 Nos.Wet Mix Plant 3 Nos.
CareersHR Initiatives
EMPLOYEES BENEFITS
Leave. All permanent employees are entitled for 25 days of paid leave in a calendar year. Leave not availed at the end of the year will be en-cashed Gross salary of the employee will be taken in account for the purpose of en-cashing of the leave.
Provident fund. From day one of joining to employees on 50% of gross salary as per the provision of Provident Fund Rules.
Gratuity. All permanent employees are entitled to the benefit of Gratuity as per the Gratuity Act i.e. half months of salary (Basic salary) for each completed year of service. Minimum service eligibility 5 years of continuous employment with the company.
Bonus. One Month’s gross salary as Bonus once in year during the time of Diwali.
Project Incentive. On completion of project, subject to timely completion and profitability of the project, ad-hoc on discretion of the management.
Soft Loans on nominal interest / Advances to employees for meeting expenses for personal emergencies, medical treatment, purchases etc
Medical Leave / Re-imbursement. Leave of absence on medical advice with full/partial /no pay and full / partial reimbursement of cost of medical treatment incurred by the employee or ex-gratia grant for medical treatment for employees and their families on the discretion of the management on case to case basis.
Furniture Purchase Grant. Once during the term of employment with the company as per grades.
Leave for Self Marriage. 15 days of paid leave in addition to annual leave entitlement to an employee once during employment with the company.
Maternity Leave. 12 weeks of paid leave to married permanent female employees of the company twice during their term of employment with the company.
4 weeks of paid leave for married permanent female employees of the company in case of abortion or medical termination of pregnancy.
Uniform. 2 pairs of Uniform (Shirt and Trousers), one pair of leather shoes to non –executive staff once every year.
Relocation Assistance: Reimbursement of actual expenses incurred on travel and transfer of household goods by road , in case of transfer from one project to another as per requirement of the company.
Current Openings
S. N. Position No. of Vacancies Required Qualifications Minimum Experience Preferred1 Material Engineer 1 B.E.(Civil) 10 years Experience in NHAI BOT Projects
2 Bridge Engineer 1 B.E.(Civil) 15 years Experience in NHAI BOT Projects
3 Project manager 1 B.E.(Civil) 15 years Experience in NHAI BOT Projects
4 Accounts/Audit Officers 6 B.Com./Inter C.A. 5 years Experience in Computerised Accounting and Tally
5 Executive Assistant 1 Graduate/MBA 5 years Knowledge of Stenography and Computers
6 Purchase Officer 5 B.E.(Civil)/ Graduate 5 years Experience of Purchase in Construction Companies
News & EventsHistory and Major Events : The chronology of key events since the inception of the IRB Group is as follows:
Year Key Events, Milestones and Major Achievements1977 Ideal Road Builders Private Limited (IRBPL) incorporated – as private Limited Company1977 to 1995 Execution of Various Construction Contracts in the Road Sector including World Bank Aided Projects from time to time as an EPC contractorSep 1995 First venture in BOT Project - Signing of Concession Agreement of Thane Bhiwandi Bypass Phase I - First BOT Project of the Country.June 1997 Completion of Thane Bhiwandi Phase INov 1997 Signing of Concession Agreement of Kharpada BOT Project – Bridge over River PatalgangaJan 1998 Signing of Concession Agreement of Wada Bhiwandi BOT ProjectJuly 1998 IRB Infrastructure Developers Limited - Holding company incorporatedSept 1998 Signing of Concession Agreement of Thane Bhiwandi Bypass Phase II Nov 1998 Signing of Concession Agreement of Khambatki Ghat BOT ProjectDec 1998 Signing of Concession Agreement of Kaman Paygaon BOT ProjectJuly 1998 IRB Infrastructure Developers Limited - Holding company incorporatedFeb 1999 Completion of Wada Bhiwandi BOT ProjectJuly 1999 Completion of Kharpada Project - Bridge over River PatalgangaMar 2000 Completion of Kaman Paygoan BOT ProjectAug 2000 Completion of Khambatki Ghat BOT ProjectJan 2001 Signing of Joint Venture with Mudajaya Corporation of Malaysia for NHAI Funded Contract for Ratanpur to Himmatnagar Section of NH 8 for 54 kms Jan 2001 Signing of EPC Funded Contract for Ratanpur to Himmatnagar Section of NH 8 for 54 kms with NHAI under Prime Ministers’ Golden Quadrilateral SchemeNov 2001 Signing of Concession Agreement of Nagar Karmala Temburni Road BOT Project
May 2002 Signing of O & M & Rehabilitation Work Contract with NHAI for Chiloda Naroda Section, Ahmedabad Bypass and Ahmedabad –Vadodara Section of NH8 in Gujarat StateMay 2002 Signing of O & M & Rehabilitation Work Contract with NHAI for Vadodara -Surat Section of NH8May 2002 Signing of Concession Agreement of MMK BOT ProjectFeb 2003 Signing of Concession Agreement of Pune Solapur BOT ProjectDec 2003 Completion of Thane Bhiwandi Bypass BOT Project - Phase IIAug 2003 Completion of Nagar Karmala Temburni Road BOT ProjectAug 2003 Signing of Concession Agreement of Pune Nashik BOT ProjectJan 2004 Completion of EPC Funded Contract of Ratanpur Himmatnagar Section of NH 8 for 54 kms with NHAI under Prime Ministers’ Golden Qadrilateral SchemeMay 2004 Emerged as highest bidder for Mumbai Pune BOT Project – Paid upfront payment of Rs 9180.00 million to MSRDC for concession of 15 yearsAug 2004 Signing of Concession Agreement & Completed Financial closure of Mumbai Pune BOT in record time of 4 months with one of the largest debt tie up of Rs 11870.00 million in the country.Aug 2004 Construction of NH 4 and Toll Collection Commenced of Mumbai Pune BOT Project Expressway as BOT operatorDec 2004 Completion of Pune Solapur BOT ProjectApr 2005 Commencement of O & M on Mumbai Pune Expressway as BOT operatorJuly 2005 Signing of Contracts of Four Laning of Nagpur Hyderabad Section of NH7 Package No 59 & 61 of NHAI. Funded EPC Works Nov 2005 Emerged as the Highest Bidder for Thane Ghodbunder Road BOT Project. Paid negative grant of Rs.1404.00 million to MSRDC for Concession rights for 15 YearsDec 2005 Completion of Pune Nashik BOT ProjectDec 2005 First venture in BOT Project - Signing of Concession Agreement of Thane Bhiwandi Bypass Phase I - First BOT Project of the Country.July 2006 Signing of Concession Agreement of Bharuch Surat BOT ProjectSept 2006 Toll Collection commences on Mumbai Pune NH 4
Nov 2006 Achieved Financial Closure of Bharuch Surat Project with one of the largest Debt tie up for single BOT Project of Rs. 12100.00 million in a record timeDec 2006 Emerged as highest Bidder to Bharuch Surat BOT Project Offering largest ever negative grant to NHAI of Rs.5040.00 Million Jan 2007 Executred Memorandum of Understanding to form Consortium with Deutsche Bank AG, Singapore to jointly pre qualify for 8 Packages of Four to six laning under NHDP V -Estimated total Project cost of Rs 81200.00 MillionFeb 2007 Bagged the Funded contract from Ahmedabad Municipal Corporation for construction of Janmarg (Bus Rapid Transport System Project) from Narol Circle to Naroda Patiya in Ahmedabad – total order size Rs. 1255.55 MiillionJune 2007 Bagged the Funded contract from Ahmedabad Municipal Corporation for construction of Janmarg (Bus Rapid Transport System Project) from Pirana – Danilimda – Maninagar – Naorl in Ahmedabad – total order size Rs. 783.57 Million
IRB Infra to list on bourses on MondayIRB Infrastructure Developers Ltd, which raised about Rs 944 crore through its IPO last month, will list on the bourses on Monday.
The company has fixed the issue price at the lower end of price band of Rs 185-220. IRB Infrastructure offered 5.1 crore equity shares through the IPO, constituting 15.36 per cent of its fully diluted post issue paid-up capital. The issue got subscribed by over four times.
The company has received an order from the National Highway Development Project (NHDP) for developing the 239 km Surat-Dahisar section of NHDP-Phase V.
The project would involve a capex of over Rs 2,600 crore and operation and management cost of around Rs 1,200 crore.
The order book position of IRB Infrastructure has doubled to over Rs 5,000 crore with the contract. As of June 30, 2007, the company had an order book position of Rs 2,386 crore.
The company is already implementing projects totalling 414 km as it has bagged concessions for Mumbai-Pune Expressway (110 km) and Surat- Bharuch section (65 km).
Friday, February 22, 2008
Day trading, formula can help you
Dear members,We never used formula given because we use charts. Lot of peoples is using this technique so we hope it can help you. As with other methods of trading, comfort will be achieved only through constant practice.There are many among my day trading friends who do not peruse graphs during the trading day. Just watching the price and volume movement is sufficient to tell them which stock is going to break-out and they trade accordingly. The pivot point trading system is designed for the less clairvoyant day traders like us. This is a simple trading system that can enhance the trading of those who do not want to get distracted with intra day graphs. All that is needed is the previous day's high, low and closing price and voila, we have an entire range of supports and resistances that can be found invaluable in day trading. The USP of pivot point trading is that it is predictive in nature i.e. it can forecast the range for the trading day ahead. The formula for calculating the pivot point is as follows, R2 = P + (H - L) = P + (R - S1)R1 = (P * 2) - LP = (H + L + C) / 3S1 = (P * 2) - HS2 = P - (H - L) = P - (R1 - S1). H stands for the previous day's high. L stands for the previous day's low and C represents the previous day's close. The S and R are the supports and resistances. Many variations are available for the above formula. Some formulas include the opening price of the current trading day. Other formulas compute more than two supports and resistances
Free online calculators for calculating the pivot points are available on the web, which can be used to calculate the pivot points. So, how does one use these pivot points? If the price opens above the pivot point and starts moving upward, then a long position can be initiated with a stop just below the pivot point and with the R1 as the target. If the price crosses above R1, that can also be an entry level with a stop just below R1 and R2 as the target. Generally, no buy is initiated near R2, as it is the upper limit of the trading range for the day. In case the price reverses from R1 or R2, it can be the right place to short the stock with a stop just above R1 or R2 with the target being the support just below. In the similar way, if the price opens below the pivot point, it is a bearish signal and a short position can be initiated with a stop just above the pivot point and the target being S1. Price moving below S1 and moving towards S2 would also be a selling level. Selling is generally not done near the S2 as it is the lower boundary of the day's trading range. Price reversing from S1 or S2 can be used for initiating buy calls with the target being the level just above. Traders who peruse charts can use pivot points in association with other technical tools to decide whether to play long or short.it is possible to calculate more than two supports and resistances around the pivot. We give below a formula that calculates three resistances and three supports: R3 = H+2 X (P - L) R2 = P+ (H - L) = P + (R1 - S1) R1 = (PX2) - L P = (H+L+C)/3 S1 = (PX2) - H S2 = P - (H - L) = P - (R1 - S1) S3 = L - 2 X (H - P) P = Pivot point, R1 = resistance 1, R2 = resistance 2, R3 = resistance 3, S1 = support 1, S2 = support 2, S3 = support 3, H = high, L = low.
Free online calculators for calculating the pivot points are available on the web, which can be used to calculate the pivot points. So, how does one use these pivot points? If the price opens above the pivot point and starts moving upward, then a long position can be initiated with a stop just below the pivot point and with the R1 as the target. If the price crosses above R1, that can also be an entry level with a stop just below R1 and R2 as the target. Generally, no buy is initiated near R2, as it is the upper limit of the trading range for the day. In case the price reverses from R1 or R2, it can be the right place to short the stock with a stop just above R1 or R2 with the target being the support just below. In the similar way, if the price opens below the pivot point, it is a bearish signal and a short position can be initiated with a stop just above the pivot point and the target being S1. Price moving below S1 and moving towards S2 would also be a selling level. Selling is generally not done near the S2 as it is the lower boundary of the day's trading range. Price reversing from S1 or S2 can be used for initiating buy calls with the target being the level just above. Traders who peruse charts can use pivot points in association with other technical tools to decide whether to play long or short.it is possible to calculate more than two supports and resistances around the pivot. We give below a formula that calculates three resistances and three supports: R3 = H+2 X (P - L) R2 = P+ (H - L) = P + (R1 - S1) R1 = (PX2) - L P = (H+L+C)/3 S1 = (PX2) - H S2 = P - (H - L) = P - (R1 - S1) S3 = L - 2 X (H - P) P = Pivot point, R1 = resistance 1, R2 = resistance 2, R3 = resistance 3, S1 = support 1, S2 = support 2, S3 = support 3, H = high, L = low.
NATIONAL STOCK EXCHANGE OF INDIA LIMITED
FUTURES & OPTIONS SEGMENT
CIRCULAR
Circular No. NSE/F&O/106/2007 November 28, 2007
Download No: NSE/FAOP/9828
Dear Members
Introduction of futures and options contracts on 15 additional individual securities
With reference to circulars no NSE/F&O/0014/2001 dated June 29, 2001, NSE/F&O/0027/2001 dated November 07, 2001, SEBI circular SMDRP/DNPD/CIR -26/2004/07/16 dated July 16, 2004, and approval received from SEBI, members are hereby notified that the following 15 additional securities will be available for trading in F&O segment with effect from November 30, 2007:
Sr no.
Security Name
Symbol
1
JINDAL SAW LIMITED
JINDALSAW
2
KPIT CUMMINS INFOSYSTEMS
KPIT
3
DEVELOP CREDIT BANK LTD
DCB
4
HINDUSTAN ZINC LIMITED
HINDZINC
5
MOTOR INDUSTRIES CO LTD
MICO
6
INFO EDGE (I) LTD
NAUKRI
7
NIIT LIMITED
NIITLTD
8
GREAT OFFSHORE LTD
GTOFFSHORE
9
WIRE & WIRELESS (I) LTD.
WWIL
10
REDINGTON (INDIA) LTD.
REDINGTON
11
NETWORK 18 FINCAP LTD.
NETWORK18
12
GLOBAL BROADCAST NEWS LTD
GBN
13
ISPAT INDUSTRIES LIMITED
ISPATIND
14
HINDUSTAN OIL EXPLORATION
HINDOILEXP
15
GITANJALI GEMS LIMITED
GITANJALI
The details of market lot and list of contracts being made available for trading in the above securities will be informed to members separately through a circular on November 29, 2007.
For any clarification members are requested to contact following officials
Arvind Goyal, Sachin Dhar & Janardhan Gujaran on 022-26598151, 022-26598152
For National Stock Exchange of India Ltd.
Suprabhat Lala
Assistant Vice President (F&O Trade)
FUTURES & OPTIONS SEGMENT
CIRCULAR
Circular No. NSE/F&O/106/2007 November 28, 2007
Download No: NSE/FAOP/9828
Dear Members
Introduction of futures and options contracts on 15 additional individual securities
With reference to circulars no NSE/F&O/0014/2001 dated June 29, 2001, NSE/F&O/0027/2001 dated November 07, 2001, SEBI circular SMDRP/DNPD/CIR -26/2004/07/16 dated July 16, 2004, and approval received from SEBI, members are hereby notified that the following 15 additional securities will be available for trading in F&O segment with effect from November 30, 2007:
Sr no.
Security Name
Symbol
1
JINDAL SAW LIMITED
JINDALSAW
2
KPIT CUMMINS INFOSYSTEMS
KPIT
3
DEVELOP CREDIT BANK LTD
DCB
4
HINDUSTAN ZINC LIMITED
HINDZINC
5
MOTOR INDUSTRIES CO LTD
MICO
6
INFO EDGE (I) LTD
NAUKRI
7
NIIT LIMITED
NIITLTD
8
GREAT OFFSHORE LTD
GTOFFSHORE
9
WIRE & WIRELESS (I) LTD.
WWIL
10
REDINGTON (INDIA) LTD.
REDINGTON
11
NETWORK 18 FINCAP LTD.
NETWORK18
12
GLOBAL BROADCAST NEWS LTD
GBN
13
ISPAT INDUSTRIES LIMITED
ISPATIND
14
HINDUSTAN OIL EXPLORATION
HINDOILEXP
15
GITANJALI GEMS LIMITED
GITANJALI
The details of market lot and list of contracts being made available for trading in the above securities will be informed to members separately through a circular on November 29, 2007.
For any clarification members are requested to contact following officials
Arvind Goyal, Sachin Dhar & Janardhan Gujaran on 022-26598151, 022-26598152
For National Stock Exchange of India Ltd.
Suprabhat Lala
Assistant Vice President (F&O Trade)
Friday, February 15, 2008
ON MOBILE GLOBAL LIMITED IPO
Incorporated in 2000, OnMobile Global Limited is a leading provider of telecommunications value added software products and services in India.OnMobile products are targeted at end-user telecommunications with an increasing focus on capitalising on the convergence between wireless and wired line telecommunications services, media content distribution, internet, mobile marketing and mobile commerce. They have broad range of applications for their end-user subscribers. Products include ring back tones, voice portals, ring tones downloads, contests, music messaging, mobile radio, dynamic voicemail and missed call alerts.OnMobile’s major customer includes Bharti, BSNL, Tata Teleservices Limited, Vodafone Essar Limited and more than 10 international telecommunications operators in eight countries. In addition to telecommunications carriers, OnMobile market its services to media companies such as AOL, Disney, ESPN, India Today Group digital, a division of Living Media India Ltd., Star, handset manufacturers such as Nokia and other large corporations.CRISIL IPO Grade:OnMobile Global Ltd. (OGL) IPO has been graded by CRISIL Limited as CRISIL IPO GRADE 4/5, indicating that the fundamentals of the issue are above average relative to other listed equity securities in India.Objects of the Issue:1. The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to Purchase equipment for company's office at Bangalore, Mumbai, Delhi and various customer sites;2. Achieve the benefits of listing.;3. To meet the expenses of the Issue;4. To meet the long term working capital requirements of the Company.5. General corporate purposes.
FIEM INDUSTRIES LTD.
FIEM Industries Ltd. 532768
FIEMIND Group (B1) MKTCap (Rs Cr) 76.44
Business Overview
Our Company is promoted by Mr. J.K. Jain, our Chairman and Managing Director, who is a first generation promoter. He has a rich experience of about 35 years in automotive components industry and is one of the pioneers of the automotive components industry in India .Our Company is one of the leading manufacturers of automotive lighting & signaling equipments and rear view mirrors. Our major business comes from the two-wheeler segment of the vehicle industry. We have a wide range of two-wheeler lighting systems and rear view mirrors. Our diversified products portfolio ranging form rear view mirrors, head lamps, tail lamps, roof lamps, wheel covers, warning triangle, complete rear fender assembly, frame assembly, mudguards and various sheet metal & plastic parts etc. is capable of catering to the needs of almost all segments of automobile industry viz., two-wheelers, LCVs, HTVs and tractors.
Our existing plants are located at Kundli (Sonepat, Haryana) (Unit I), Hosur (Tamil Nadu) (Unit II & III) and Mysore (Karnataka) (Unit IV). Our upcoming units will be located at Hosur (Tamil Nadu) (Unit V) and Nalagarh (Himachal Pradesh) (UnitVI). The proximity of our plants to our OEM customers offers logistic savings to our valued customers and further enables us to cut our inventory carrying costs and shorten the delivery time. Moreover, our commitment to customer's satisfaction in terms of quality, cost in time delivery and services is amply reflected at in the repeat orders and awards form customers. We have had the opporitunity of been associated with some of our prestigious OEM cutomers since the start of their operation in India. In its quest for continuous improvement, FIEM has acquired certifications such as ISO 9002, QS 9002, QS 9000 , ISO/ TS 16949:2002, & ISO 9001. It has also acquired certification for confirmity of production form RDW Netherlands. FIEM has also been accredited with ISO14001-2004 Certification for Environment Management Systems. FIEM employees are constantly being trained to meet the customer's specific requirements as per TQM. As a result of all these, FIEM has become a Tier I Supplier not only in India but also in Europe and USA .
Our existing plants are located at Kundli (Sonepat, Haryana) (Unit I), Hosur (Tamil Nadu) (Unit II & III) and Mysore (Karnataka) (Unit IV). Our upcoming units will be located at Hosur (Tamil Nadu) (Unit V) and Nalagarh (Himachal Pradesh) (UnitVI). The proximity of our plants to our OEM customers offers logistic savings to our valued customers and further enables us to cut our inventory carrying costs and shorten the delivery time. Moreover, our commitment to customer's satisfaction in terms of quality, cost in time delivery and services is amply reflected at in the repeat orders and awards form customers. We have had the opporitunity of been associated with some of our prestigious OEM cutomers since the start of their operation in India. In its quest for continuous improvement, FIEM has acquired certifications such as ISO 9002, QS 9002, QS 9000 , ISO/ TS 16949:2002, & ISO 9001. It has also acquired certification for confirmity of production form RDW Netherlands. FIEM has also been accredited with ISO14001-2004 Certification for Environment Management Systems. FIEM employees are constantly being trained to meet the customer's specific requirements as per TQM. As a result of all these, FIEM has become a Tier I Supplier not only in India but also in Europe and USA .
VISION:
To be the most preferred supplier of Automotive Lighting, Signalling Equipments and Rear View Mirrors for domestic as well as global OEMs providing advanced design solution, quality products at lower costs by adapting Lean manufacturing process, Value Engineering and total quality management.
MISSION:
To be a dominant player in Automotive Lighting, Signaling Equipments and Rear view Mirrors. To Enhance Stakeholders value while conserving the environment and contributing to welfare of the society at large.
QUALITY POLICY :
We “The Employees" of FIEM Industries Limited Unit give our customers “Total Satisfaction” in terms of Quality, Cost and On Time Delivery. We will pursue continuous improvement in Product Quality by upgrading the Technology and Training of Employees.
Message from The Chairman & Managing Director:
Fiem is committed to offer advanced design solutions and adoption of state of the art technologies with lean manufacturing process to deliver world class quality products for Automobiles to make driving safer.Team Fiem aims at achieving ‘Total Customer Satisfaction” by offering zero defect products at competitive price. It pursues this goal with relentless Zeal & Dynamism and constantly endeavors to add value to its Stakeholders and preservation of environment.
Our Company is one of the leading manufacturers of automotive lighting & signaling equipments and rear view mirrors.Our company was originally incorporated in India as Rahul Auto Private Limited on February 6, 1989 in New Delhi under the Companies Act, 1956. We set up our unit at HSIDC Industrial Estate, Kundli, Sonepat (Haryana) for carrying on the business of manufacturing rear view mirrors for two, three and four wheelers. We changed the name of our Company to FIEM Industries Private Limited w.e.f. May 7, 1992. Subsequently, our Company was converted into a public Company w.e.f November 30, 1993 pursuant to which, the name of our Company was changed to FIEM Industries Limited.During the year 1993-94, we added additional facilities for manufacturing of automotive lighting and signaling equipments such as head lamp, tail lamp, side indicator, reflex Reflector, fog lamp, etc. With a view to expand our business, we shifted all our manufacturing during the year 1993-94 to the plant situated at 32 Mile Stone, G . T. Road , Kundli, Sonepat, (Haryana) (Unit 1) having full fledged testing laboratory for manufacturing automotive lamps & rear view mirrors conforming to International Standards viz, JIS, ADR, DOT, ECE, SAE and Indian Standards viz., AIS and BIS. In the year 1996, our company set-up a Joint Venture Company under the name and style of FIEM Sung San (India) Limited in association with Sung San Co. Limited, Korea and Daewoo Motors India Limited. Subsequently, FIEM Sung San ( India ) Limited became our subsidiary w.e.f September 30, 2005 pursuant to the acquisition of 32,50,000 Equity Shares of Rs. 10 each.
We further expanded our capacities with the setting-up of our Unit II in the year 2003-04 at 219/2B, Thally Road, Kallukondapalli, Hosur Tamil Nadu for manufacturing head lamps, tail lamps, / rear combination lamps, side indicator lamps, reflex reflectors and rear view mirrors. We set up our Unit III in the year 2004-05 at Kelamanglam, Achittapalli Post, Hosur, Tamil Nadu for manufacturing sheet metal items viz., frame, mudguards, stands, guard exhaust pipe. In the same year we set up our Unit IV at S.No. 29, Madargali Village , Varuna Hobli, Mysore Taluk, Karnataka for manufacturing value added products such as assembly of rear fender for two wheelers.We are presently conducting trail runs at our Export Unit (Unit V) at Kelamangalam, Hosur, Tamil, Nadu for manufacturing mirror plates, mirror assembly, head lamps, tail lamps, and side indicators. We are also in the process of setting up of Unit VI at Nalagarh, Himachal Pradesh which shall engage in the manufacture of head lamps, tail lamps, side indicator lamps, rear fender, reflex reflectors and rear view mirrors primarily for the four wheeler segment. We have been accredited with ISO-9002 in the year 1997 by BVQI, London .
In the year 1999, our Unit Sonepat Haryana was accredited with ISO 9001: 2000 & ISO 9002 : 1994 and the quality system requirements certification QS 9000 : 1998 by Underwriters Laboratories Inc. (UL), USA for the manufacture of automotive lighting & signaling equipments and rear view mirrors. Subsequently, in the year 2004, our Unit I at Sonepat, Haryana was accredited with ISO/TS 16949 : 2002 by UL, USA. In the year 2005, our Unit II at Hosur , Tamil Nadu was accredited with ISO/TS 16949 : 2002 by UL, USA. In the same year, our Unit I at Sonepat, Haryana was accredited with ISO 14001-2004 by UL , USA. Prior to this in the year 2002, our unit I at Sonepat, Haryana also received the 'Confirmity of production' form RDW, Netherlands for e-marked products. Our Company was awared Bhartiya shiromani Puruskar by the Institute of Economic Studies (IES), New Delhi , in the year 2005.
Major events in the history of our Company since inception
Year Key events
1989 -
Incorporation of our Company under the name and style of Rahul Auto Pvt. Limited Unit at HSIDC Industrial Estate, Kundli, Sonepat (Haryana) set-up
1992-
Change of the name of the Company from Rahul Pvt. Limited to FIEM Industries Pvt. Limited
1993 -
Converted to public Limited Company pursuant to which the name of the Company changed from FIEM Industries Limited Shifted all manufacturing facilities to the plant situated at 32 Mile Stone, G.T. Road, Kundli, Sonepat (Haryana) (Unit I) having full fledged testing laboratory
1996 -
FIEM Sung San (India) Limited, a Joint venture Company set-up in Noida, Uttar Pradesh pursuant to a Joint Venture Agreement in association with Sung San Co. Limited, Korea and Daewoo Motors India Limited ( formerly DCM Daewoo Motors Limited )
FIEMIND Group (B1) MKTCap (Rs Cr) 76.44
Business Overview
Our Company is promoted by Mr. J.K. Jain, our Chairman and Managing Director, who is a first generation promoter. He has a rich experience of about 35 years in automotive components industry and is one of the pioneers of the automotive components industry in India .Our Company is one of the leading manufacturers of automotive lighting & signaling equipments and rear view mirrors. Our major business comes from the two-wheeler segment of the vehicle industry. We have a wide range of two-wheeler lighting systems and rear view mirrors. Our diversified products portfolio ranging form rear view mirrors, head lamps, tail lamps, roof lamps, wheel covers, warning triangle, complete rear fender assembly, frame assembly, mudguards and various sheet metal & plastic parts etc. is capable of catering to the needs of almost all segments of automobile industry viz., two-wheelers, LCVs, HTVs and tractors.
Our existing plants are located at Kundli (Sonepat, Haryana) (Unit I), Hosur (Tamil Nadu) (Unit II & III) and Mysore (Karnataka) (Unit IV). Our upcoming units will be located at Hosur (Tamil Nadu) (Unit V) and Nalagarh (Himachal Pradesh) (UnitVI). The proximity of our plants to our OEM customers offers logistic savings to our valued customers and further enables us to cut our inventory carrying costs and shorten the delivery time. Moreover, our commitment to customer's satisfaction in terms of quality, cost in time delivery and services is amply reflected at in the repeat orders and awards form customers. We have had the opporitunity of been associated with some of our prestigious OEM cutomers since the start of their operation in India. In its quest for continuous improvement, FIEM has acquired certifications such as ISO 9002, QS 9002, QS 9000 , ISO/ TS 16949:2002, & ISO 9001. It has also acquired certification for confirmity of production form RDW Netherlands. FIEM has also been accredited with ISO14001-2004 Certification for Environment Management Systems. FIEM employees are constantly being trained to meet the customer's specific requirements as per TQM. As a result of all these, FIEM has become a Tier I Supplier not only in India but also in Europe and USA .
Our existing plants are located at Kundli (Sonepat, Haryana) (Unit I), Hosur (Tamil Nadu) (Unit II & III) and Mysore (Karnataka) (Unit IV). Our upcoming units will be located at Hosur (Tamil Nadu) (Unit V) and Nalagarh (Himachal Pradesh) (UnitVI). The proximity of our plants to our OEM customers offers logistic savings to our valued customers and further enables us to cut our inventory carrying costs and shorten the delivery time. Moreover, our commitment to customer's satisfaction in terms of quality, cost in time delivery and services is amply reflected at in the repeat orders and awards form customers. We have had the opporitunity of been associated with some of our prestigious OEM cutomers since the start of their operation in India. In its quest for continuous improvement, FIEM has acquired certifications such as ISO 9002, QS 9002, QS 9000 , ISO/ TS 16949:2002, & ISO 9001. It has also acquired certification for confirmity of production form RDW Netherlands. FIEM has also been accredited with ISO14001-2004 Certification for Environment Management Systems. FIEM employees are constantly being trained to meet the customer's specific requirements as per TQM. As a result of all these, FIEM has become a Tier I Supplier not only in India but also in Europe and USA .
VISION:
To be the most preferred supplier of Automotive Lighting, Signalling Equipments and Rear View Mirrors for domestic as well as global OEMs providing advanced design solution, quality products at lower costs by adapting Lean manufacturing process, Value Engineering and total quality management.
MISSION:
To be a dominant player in Automotive Lighting, Signaling Equipments and Rear view Mirrors. To Enhance Stakeholders value while conserving the environment and contributing to welfare of the society at large.
QUALITY POLICY :
We “The Employees" of FIEM Industries Limited Unit give our customers “Total Satisfaction” in terms of Quality, Cost and On Time Delivery. We will pursue continuous improvement in Product Quality by upgrading the Technology and Training of Employees.
Message from The Chairman & Managing Director:
Fiem is committed to offer advanced design solutions and adoption of state of the art technologies with lean manufacturing process to deliver world class quality products for Automobiles to make driving safer.Team Fiem aims at achieving ‘Total Customer Satisfaction” by offering zero defect products at competitive price. It pursues this goal with relentless Zeal & Dynamism and constantly endeavors to add value to its Stakeholders and preservation of environment.
Our Company is one of the leading manufacturers of automotive lighting & signaling equipments and rear view mirrors.Our company was originally incorporated in India as Rahul Auto Private Limited on February 6, 1989 in New Delhi under the Companies Act, 1956. We set up our unit at HSIDC Industrial Estate, Kundli, Sonepat (Haryana) for carrying on the business of manufacturing rear view mirrors for two, three and four wheelers. We changed the name of our Company to FIEM Industries Private Limited w.e.f. May 7, 1992. Subsequently, our Company was converted into a public Company w.e.f November 30, 1993 pursuant to which, the name of our Company was changed to FIEM Industries Limited.During the year 1993-94, we added additional facilities for manufacturing of automotive lighting and signaling equipments such as head lamp, tail lamp, side indicator, reflex Reflector, fog lamp, etc. With a view to expand our business, we shifted all our manufacturing during the year 1993-94 to the plant situated at 32 Mile Stone, G . T. Road , Kundli, Sonepat, (Haryana) (Unit 1) having full fledged testing laboratory for manufacturing automotive lamps & rear view mirrors conforming to International Standards viz, JIS, ADR, DOT, ECE, SAE and Indian Standards viz., AIS and BIS. In the year 1996, our company set-up a Joint Venture Company under the name and style of FIEM Sung San (India) Limited in association with Sung San Co. Limited, Korea and Daewoo Motors India Limited. Subsequently, FIEM Sung San ( India ) Limited became our subsidiary w.e.f September 30, 2005 pursuant to the acquisition of 32,50,000 Equity Shares of Rs. 10 each.
We further expanded our capacities with the setting-up of our Unit II in the year 2003-04 at 219/2B, Thally Road, Kallukondapalli, Hosur Tamil Nadu for manufacturing head lamps, tail lamps, / rear combination lamps, side indicator lamps, reflex reflectors and rear view mirrors. We set up our Unit III in the year 2004-05 at Kelamanglam, Achittapalli Post, Hosur, Tamil Nadu for manufacturing sheet metal items viz., frame, mudguards, stands, guard exhaust pipe. In the same year we set up our Unit IV at S.No. 29, Madargali Village , Varuna Hobli, Mysore Taluk, Karnataka for manufacturing value added products such as assembly of rear fender for two wheelers.We are presently conducting trail runs at our Export Unit (Unit V) at Kelamangalam, Hosur, Tamil, Nadu for manufacturing mirror plates, mirror assembly, head lamps, tail lamps, and side indicators. We are also in the process of setting up of Unit VI at Nalagarh, Himachal Pradesh which shall engage in the manufacture of head lamps, tail lamps, side indicator lamps, rear fender, reflex reflectors and rear view mirrors primarily for the four wheeler segment. We have been accredited with ISO-9002 in the year 1997 by BVQI, London .
In the year 1999, our Unit Sonepat Haryana was accredited with ISO 9001: 2000 & ISO 9002 : 1994 and the quality system requirements certification QS 9000 : 1998 by Underwriters Laboratories Inc. (UL), USA for the manufacture of automotive lighting & signaling equipments and rear view mirrors. Subsequently, in the year 2004, our Unit I at Sonepat, Haryana was accredited with ISO/TS 16949 : 2002 by UL, USA. In the year 2005, our Unit II at Hosur , Tamil Nadu was accredited with ISO/TS 16949 : 2002 by UL, USA. In the same year, our Unit I at Sonepat, Haryana was accredited with ISO 14001-2004 by UL , USA. Prior to this in the year 2002, our unit I at Sonepat, Haryana also received the 'Confirmity of production' form RDW, Netherlands for e-marked products. Our Company was awared Bhartiya shiromani Puruskar by the Institute of Economic Studies (IES), New Delhi , in the year 2005.
Major events in the history of our Company since inception
Year Key events
1989 -
Incorporation of our Company under the name and style of Rahul Auto Pvt. Limited Unit at HSIDC Industrial Estate, Kundli, Sonepat (Haryana) set-up
1992-
Change of the name of the Company from Rahul Pvt. Limited to FIEM Industries Pvt. Limited
1993 -
Converted to public Limited Company pursuant to which the name of the Company changed from FIEM Industries Limited Shifted all manufacturing facilities to the plant situated at 32 Mile Stone, G.T. Road, Kundli, Sonepat (Haryana) (Unit I) having full fledged testing laboratory
1996 -
FIEM Sung San (India) Limited, a Joint venture Company set-up in Noida, Uttar Pradesh pursuant to a Joint Venture Agreement in association with Sung San Co. Limited, Korea and Daewoo Motors India Limited ( formerly DCM Daewoo Motors Limited )
OMAXE
Omaxe pledges approx 15% stake to Indiabulls Fin
The promoters of Omaxe have pledged nearly 15% stake to Indiabulls Finance to raise capital. Rohtas Goel, Chairman and MD of Omaxe has clarified that the company’s shares that are pledged are in lock-in period. The company needed money urgently and hence they had to go for pledging, Goel said. Omaxe has raised Rs 300 crore with an average cost of 12% per annum.
Excerpts from CNBC-TV18’s exclusive interview with Rohtas Goel:
Q: Why exactly are the promoters pledging a stake to Indiabulls, would there not be easier ways for Omaxe to raise money?
A: There are lots of easier ways also; we are doing a lot of exercise for raising the funds. But if there are very good opportunities and suddenly one requires money, then pledging money is not a bad idea and I have done it. I have not sold shares because the shares are in lock-in period and it is purely a financial deal. I have borrowed some money from Indiabulls, but not sold the stake in Indiabulls.
Q: You could have raised debt as a company, Omaxe could have on its balance sheet raised debt or you could have actually play some stocks and raised money or you could have done convertible if the issue is not to dilute equity right now - why did you choose none of these options, but pledge your stake to borrow money from a financer?
A: A great opportunity was there and I have got just two days time for that. It was an emergency for me and since we have to raise the money, I do not think it is a bad idea. The average funding rate comes out to 12% only; this because we are doing a lot of exercise for raising the funds.
Q: This sounds a bit concerning that it was an emergency, how much money is it that Indiabulls has given you for this large 15% chunk and what is this big opportunity that you have needed the money for?
A: I cannot disclose the big opportunity to you right now, but the money is Rs 300 crore.
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=30723
The promoters of Omaxe have pledged nearly 15% stake to Indiabulls Finance to raise capital. Rohtas Goel, Chairman and MD of Omaxe has clarified that the company’s shares that are pledged are in lock-in period. The company needed money urgently and hence they had to go for pledging, Goel said. Omaxe has raised Rs 300 crore with an average cost of 12% per annum.
Excerpts from CNBC-TV18’s exclusive interview with Rohtas Goel:
Q: Why exactly are the promoters pledging a stake to Indiabulls, would there not be easier ways for Omaxe to raise money?
A: There are lots of easier ways also; we are doing a lot of exercise for raising the funds. But if there are very good opportunities and suddenly one requires money, then pledging money is not a bad idea and I have done it. I have not sold shares because the shares are in lock-in period and it is purely a financial deal. I have borrowed some money from Indiabulls, but not sold the stake in Indiabulls.
Q: You could have raised debt as a company, Omaxe could have on its balance sheet raised debt or you could have actually play some stocks and raised money or you could have done convertible if the issue is not to dilute equity right now - why did you choose none of these options, but pledge your stake to borrow money from a financer?
A: A great opportunity was there and I have got just two days time for that. It was an emergency for me and since we have to raise the money, I do not think it is a bad idea. The average funding rate comes out to 12% only; this because we are doing a lot of exercise for raising the funds.
Q: This sounds a bit concerning that it was an emergency, how much money is it that Indiabulls has given you for this large 15% chunk and what is this big opportunity that you have needed the money for?
A: I cannot disclose the big opportunity to you right now, but the money is Rs 300 crore.
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=30723
GUJARAT STATE PETRONET CORE INFRA PLAY
Gujarat State Petronet (GSPL)-Best Leverage On Natural GasGSPL will see a doubling in pipeline capacities and quadrupling of Revenues over the next 4 years..the stock should become a core infrastructure play for all book runners.High Operating leverage in the high gas demand state of Gujarat, good project execution record, visibility on long term gas supplies and stakes in parent GSPC groups City Gas Projects make GSPL the most attractive non Exploration and Production play on the emerging natural gas theme in India.The volume growth potential of GSPL's core transmission business is immense as gas from the Deen Dayal and Dhirubhai fields gushes out beginning April-September 08 and continues to rise beyond 2010-11 when the Ongc offshore and GSPCs Deen Dayal fields also begin producing Natural Gas from Andhra Offshore. There will be minimal regulatory impact on pricing of gas transportation as GSPL has been set up as an open carrier sans pricing controls of the MoPNG.Stock TriggersAdditional Gas Supplies of 4.8 million squared cubic meters per day from the Gujarat Offshore Panna-Mukta- Tapti gas fields in April 2008; to the existing 1100 kms of gas pipelines in Gujarat another 1100 kms costing over Rs 3300 crore will be added in CY 2008, additional gas supplies ranging from 6.9 million squared cubic meters per day from Reliance and rising to a peak of 70 million squared cubic meters per day from Second half FY 2008, Additional Gas supplies from the GSPC owned Deen Dayal fields from early 2010 and successful execution of the City Gas Distribution projects of GSPC group.
Gujarat-The Biggest Natural Gas ConsumerNatural Gas Demand from the State of Gujarat for various dedicated Power, Fertilisers, Steel and civil distribution was estimated at 54 mn squared cubic meters per day and this demand will rise to 95 mmscmd by 2010. GSPL currently moves 18 mmscmd of gas per day, and the current gas infrastructure under its belt allows volume expansion to 40 mmscmd without much incremental investment. Add to this another doubling in pipeline capacity and theoretically GSPL would be able to push through over 80 mmscmd of Natural Gas as an open carrier. There are multiple landing points at Hazira and Uran where competing gas networks of Reliance and Gail can land gas for movement within Gujarat. As already announced Reliance would utilise the GSPL network to move the KG gas upto the new Jamnagar refinery.More importantly, GSPLs network at present is a North-South Gujarat pipeline model which is being broadened to include Rajkot, Morbi, Himmatnagar, and emerging economic hubs of Mundra and Pipavav ports, and the Dahej SEZ being set up by Ongc. This expansion will make GSPL a NSEW pipeline network in Gujarat.And yet the capacity increase will lag Natural Gas demand by atleast 10 per cent of the estimated potential.GSPL has a formal agreement with RIL to transmit upto 14 mmscmd of gas using its existing pipelines and develop new pipelines between Bharuch and Hadala and Rajkot-Jamnagar. GSPL would also be supplying 4.8 mmscmd of gas to Torrent Power from April 2008 for its 1100 MW Sugen power plant at Surat. GSPL will see a doubling in pipeline capacities and quadrupling of Revenues over the next 4 years..the stock should become a core infrastructure play for all book runners.
Gujarat-The Biggest Natural Gas ConsumerNatural Gas Demand from the State of Gujarat for various dedicated Power, Fertilisers, Steel and civil distribution was estimated at 54 mn squared cubic meters per day and this demand will rise to 95 mmscmd by 2010. GSPL currently moves 18 mmscmd of gas per day, and the current gas infrastructure under its belt allows volume expansion to 40 mmscmd without much incremental investment. Add to this another doubling in pipeline capacity and theoretically GSPL would be able to push through over 80 mmscmd of Natural Gas as an open carrier. There are multiple landing points at Hazira and Uran where competing gas networks of Reliance and Gail can land gas for movement within Gujarat. As already announced Reliance would utilise the GSPL network to move the KG gas upto the new Jamnagar refinery.More importantly, GSPLs network at present is a North-South Gujarat pipeline model which is being broadened to include Rajkot, Morbi, Himmatnagar, and emerging economic hubs of Mundra and Pipavav ports, and the Dahej SEZ being set up by Ongc. This expansion will make GSPL a NSEW pipeline network in Gujarat.And yet the capacity increase will lag Natural Gas demand by atleast 10 per cent of the estimated potential.GSPL has a formal agreement with RIL to transmit upto 14 mmscmd of gas using its existing pipelines and develop new pipelines between Bharuch and Hadala and Rajkot-Jamnagar. GSPL would also be supplying 4.8 mmscmd of gas to Torrent Power from April 2008 for its 1100 MW Sugen power plant at Surat. GSPL will see a doubling in pipeline capacities and quadrupling of Revenues over the next 4 years..the stock should become a core infrastructure play for all book runners.
SHIV-VANI OIL-DRILLING PROFITS
Shiv-Vani Drilling is likely to become one of the prime beneficiaries of the near $ 3 bn Oil Exploration Budget of Ongc over the next 2-3 years. The hunt for Crude Oil is on in right earnest, as the GOI opens ever more larger blocks to foreign and domestic oil explorers both on-shore and off-shore. The Key Mantra these days is Oil Security and beyond Mukta, Panna, Tapti, Lakshmi, Aishwarya and Cairns Mangala on-shore prospects, only the Deen Dayal and Dhirubhai fields in AP offshore have discovered either oil or gas, since Crude was discovered in the Assam-Arakan belt before independence and in the Bombay High segments in the early 70s. Shiv-Vani has 25 onshore rigs under operation with one more getting added in FY08. Additionally, it has 4 offshore vessels and is seeking to acquire jack-up rigs and PSVs, which would diversify its Revenues from just onshore oil exploration to the Offshore Oil, Pipeline Construction, Gas Compression and Allied Services segment especially development of Coal Bed Methane blocks and gasification and re-gasification of Natural Gas as more gas becomes available for transport, in about 8 months from now from the Krishna-Godavari fields. Shiv-Vani is the biggest private sector rig owner and operator in India for on-shore operations with 4 seismic data acquisition equipment, 4 crew boats, 7 compressors, 233 drilling rigs, 425 logistic supply vehicles, that include cranes, bunk houses, trailers, prime movers and forklifts.
Shiv-Vani is undergoing a CAPEX of Rs 600 crore, a part of which has been financed through private equity placed with Citigroup Internationational Growth Partnership Mauritius at Rs 375 per share. This CAPEX is being made to prepare Shiv-Vani for the NELP VII which will offer 80 to 85 blocks covering an area of 352,000 sq kms. While Ongc has been accounting for nearly 60 per cent of Shiv-Vani's Revenues, it is the entry of Cairn, Reliance, Videocon and GSPC which is making the field bigger and wider. Earlier this year Ongc had made an attempt to acquire 25 onshore rigs from UPET of Romania, which ultimately did not work out. Now Ongc is trying to acquire 17 Rigs for exploration in the Assam-Arakan Oil belt. Shiv-Vani is likely to be the prime beneficiary of this effort as it possesses the largest number of onshore drilling rigs in the country. Any newsflow on this count will work as a price trigger for Shiv-Vani. Even though FY09 will turn out to be a year of massive growth for Shiv-Vani, but at 16 times FY08 forecast earnings Shiv-Vani Oil appears to be amongst the cheapest plays in the sector when compared to marginal oil drilling players like Garware Offshore and Jindal Drilling which offer just OSVs and 2 Oil Drilling Rigs between themselves.
Shiv-Vani is undergoing a CAPEX of Rs 600 crore, a part of which has been financed through private equity placed with Citigroup Internationational Growth Partnership Mauritius at Rs 375 per share. This CAPEX is being made to prepare Shiv-Vani for the NELP VII which will offer 80 to 85 blocks covering an area of 352,000 sq kms. While Ongc has been accounting for nearly 60 per cent of Shiv-Vani's Revenues, it is the entry of Cairn, Reliance, Videocon and GSPC which is making the field bigger and wider. Earlier this year Ongc had made an attempt to acquire 25 onshore rigs from UPET of Romania, which ultimately did not work out. Now Ongc is trying to acquire 17 Rigs for exploration in the Assam-Arakan Oil belt. Shiv-Vani is likely to be the prime beneficiary of this effort as it possesses the largest number of onshore drilling rigs in the country. Any newsflow on this count will work as a price trigger for Shiv-Vani. Even though FY09 will turn out to be a year of massive growth for Shiv-Vani, but at 16 times FY08 forecast earnings Shiv-Vani Oil appears to be amongst the cheapest plays in the sector when compared to marginal oil drilling players like Garware Offshore and Jindal Drilling which offer just OSVs and 2 Oil Drilling Rigs between themselves.
HOW STOCK MARKET WORKS
In order to understand what stocks are and how stock markets work, we need to dive into history--specifically, the history of what has come to be known as the corporation, or sometimes the limited liability company (LLC). Corporations in one form or another have been around ever since one guy convinced a few others to pool their resources for mutual benefit. The first corporate charters were created in Britain as early as the sixteenth century, but these were generally what we might think of today as a public corporation owned by the government, like the postal service. Privately owned corporations came into being gradually during the early 19th century in the United States , United Kingdom and western Europe as the governments of those countries started allowing anyone to create corporations.In order for a corporation to do business, it needs to get money from somewhere. Typically, one or more people contribute an initial investment to get the company off the ground. These entrepreneurs may commit some of their own money, but if they don't have enough, they will need to persuade other people, such as venture capital investors or banks, to invest in their business. They can do this in two ways: by issuing bonds, which are basically a way of selling debt (or taking out a loan, depending on your perspective), or by issuing stock, that is, shares in the ownership of the company. Long ago stock owners realized that it would be convenient if there were a central place they could go to trade stock with one another, and the public stock exchange was born. Eventually, today's stock markets grew out of these public places.
STOCKS............
A corporation is generally entitled to create as many shares as it pleases. Each share is a small piece of ownership. The more shares you own, the more of the company you own, and the more control you have over the company's operations. Companies sometimes issue different classes of shares, which have different privileges associated with them. So a corporation creates some shares, and sells them to an investor for an agreed upon price, the corporation now has money. In return, the investor has a degree of ownership in the corporation, and can exercise some control over it. The corporation can continue to issue new shares, as long as it can persuade people to buy them. If the company makes a profit, it may decide to plow the money back into the business or use some of it to pay dividends on the shares.
PUBLIC MARKETS......
How each stock market works is dependent on its internal organization and government regulation. The NYSE (New York Stock Exchange) is a non-profit corporation, while the NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange) are for-profit businesses, earning money by providing trading services. Most companies that go public have been around for at least a little while. Going public gives the company an opportunity for a potentially huge capital infusion, since millions of investors can now easily purchase shares. It also exposes the corporation to stricter regulatory control by government regulators. When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen, it makes an initial public offering (IPO). The company will decide how many shares to issue on the public market and the price it wants to sell them for. When all the shares in the IPO are sold, the company can use the proceeds to invest in the business.
STOCKS............
A corporation is generally entitled to create as many shares as it pleases. Each share is a small piece of ownership. The more shares you own, the more of the company you own, and the more control you have over the company's operations. Companies sometimes issue different classes of shares, which have different privileges associated with them. So a corporation creates some shares, and sells them to an investor for an agreed upon price, the corporation now has money. In return, the investor has a degree of ownership in the corporation, and can exercise some control over it. The corporation can continue to issue new shares, as long as it can persuade people to buy them. If the company makes a profit, it may decide to plow the money back into the business or use some of it to pay dividends on the shares.
PUBLIC MARKETS......
How each stock market works is dependent on its internal organization and government regulation. The NYSE (New York Stock Exchange) is a non-profit corporation, while the NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange) are for-profit businesses, earning money by providing trading services. Most companies that go public have been around for at least a little while. Going public gives the company an opportunity for a potentially huge capital infusion, since millions of investors can now easily purchase shares. It also exposes the corporation to stricter regulatory control by government regulators. When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen, it makes an initial public offering (IPO). The company will decide how many shares to issue on the public market and the price it wants to sell them for. When all the shares in the IPO are sold, the company can use the proceeds to invest in the business.
Tuesday, February 12, 2008
Warren Buffett and Jim Cramer Speak out on 2008 Stock Market !!
THE GURUS of the stock market world include Warren Buffett, Jim Cramer, Carl Icahn and Jim Rogers. The lesser known gurus such as Alexander Green (Oxford Club), Bill Bonner (The Daily Reckoning) and Stephen Leeb (The Complete Investor) are all pretty much saying the same thing about the stock market in 2008. As oil pricing per barrel hits $100 and
gold soars to $860 per ounce on the futures markets, there is a general cause for caution and concern. The news on the first trading day of the year was not a bull's dream.
The Institute for Supply Management's report that its manufacturing index fell to 47.7 percent for December from 50.8 percent in November raised concerns that the economy could be slowing at a quicker pace than some investors had estimated. The reading below 50 signals economic contraction, whereas readings over 50 indicate expansion.
Analysts polled by Thomson/IFR had anticipated that manufacturing would expand modestly in December.The economic reading and rising oil prices were unwelcome for investors wading into the first trading session of 2008 and indicated the concerns that weighed on stocks in the second half of 2007 will for now persist.
"It certainly is a soft number and the declines in production and new orders are eye-catching," said Alan Levenson, chief economist at T. Rowe Price Associates Inc. "Overall, the ISM has generally been a decent guide for the economy. This is a sharp decline in one month."
Stocks failed to gain momentum after an initial bounce after minutes from the Federal Reserve's last meeting. Central bankers, who voted to raise interest rates a quarter percentage point, called the economic outlook "unusually uncertain." While that strengthened the case for lower rates, it also confirmed some of the market's worst fears about the economy.
gold soars to $860 per ounce on the futures markets, there is a general cause for caution and concern. The news on the first trading day of the year was not a bull's dream.
The Institute for Supply Management's report that its manufacturing index fell to 47.7 percent for December from 50.8 percent in November raised concerns that the economy could be slowing at a quicker pace than some investors had estimated. The reading below 50 signals economic contraction, whereas readings over 50 indicate expansion.
Analysts polled by Thomson/IFR had anticipated that manufacturing would expand modestly in December.The economic reading and rising oil prices were unwelcome for investors wading into the first trading session of 2008 and indicated the concerns that weighed on stocks in the second half of 2007 will for now persist.
"It certainly is a soft number and the declines in production and new orders are eye-catching," said Alan Levenson, chief economist at T. Rowe Price Associates Inc. "Overall, the ISM has generally been a decent guide for the economy. This is a sharp decline in one month."
Stocks failed to gain momentum after an initial bounce after minutes from the Federal Reserve's last meeting. Central bankers, who voted to raise interest rates a quarter percentage point, called the economic outlook "unusually uncertain." While that strengthened the case for lower rates, it also confirmed some of the market's worst fears about the economy.
That is what Buffett and Cramer are saying as well. The financial and credit markets are unusually shaky, and the problems facing the housing sector, the mortgage industry and consumer spending are casting a pall of gloom over the many positives that the US economy has to offer.
Buffett, Ichan, Cramer and T.Boone Pickens always "vote with their wallets" and they are buyers. But they know this is a stock-pickers market. "We cannot say with certainty what most averages will do in 2008. Our guess is that the Fed will do what it must to support the economy. As long as the economy does not enter a recession, we are safe from a bear market. Instead, we expect stocks will remain in a trading range, flirting with all-time highs, but never experiencing a broad-based rally. Inflation will prevent a bull market from arising" said one of the gurus.
In a non-verbal way and verbally, Buffett and Cramer are saying "choose your stocks very carefully". They say they are looking for value, with international money to be made, and themes that can withstand a downturn in the economy. That is why they like companies that have similar profiles to Trinity Industries (NYSE:TRN) and Yamana Gold (NYSE:AUY).
As the stock market starts the new year on a sour note, they are looking for bargains, takeover themes like Alcoa (NYSE:AA) and Steel Dynamics (Nasdaq:STLD). The gurus know that the Fed can't afford to be indecisive at such a critical time like the monetary crisis that the western world finds itself in right now. And they know that inflation is upon us and can keep the bull market from going forward in a robust fashion.
Buffett, Ichan, Cramer and T.Boone Pickens always "vote with their wallets" and they are buyers. But they know this is a stock-pickers market. "We cannot say with certainty what most averages will do in 2008. Our guess is that the Fed will do what it must to support the economy. As long as the economy does not enter a recession, we are safe from a bear market. Instead, we expect stocks will remain in a trading range, flirting with all-time highs, but never experiencing a broad-based rally. Inflation will prevent a bull market from arising" said one of the gurus.
In a non-verbal way and verbally, Buffett and Cramer are saying "choose your stocks very carefully". They say they are looking for value, with international money to be made, and themes that can withstand a downturn in the economy. That is why they like companies that have similar profiles to Trinity Industries (NYSE:TRN) and Yamana Gold (NYSE:AUY).
As the stock market starts the new year on a sour note, they are looking for bargains, takeover themes like Alcoa (NYSE:AA) and Steel Dynamics (Nasdaq:STLD). The gurus know that the Fed can't afford to be indecisive at such a critical time like the monetary crisis that the western world finds itself in right now. And they know that inflation is upon us and can keep the bull market from going forward in a robust fashion.
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.
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.
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.
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.
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.
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.
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
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
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.
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.
MARUTI SUZUKI
On the back of a sound foundation of existing products (13 models priced between Rs 2 lakh and Rs 15 lakh), strong distribution, efficient service network and new product launches, Maruti Suzuki will maintain its dominant position.
The company has 52 per cent market share by volume of the Indian car market and 62.5 per cent of the small car segment, which is commendable given the stiff competition from global majors.
Maruti grew at a scorching 18 per cent, compared with the 13 per cent recorded by passenger car market in H1 FY08. For eight months ended November 2007, sales volume was up 19.7 per cent to 500,108 vehicles led by 49 per cent growth in exports. Notably, exports are expected to grow 40 per cent annually for the next two years; its share in total sales is likely to move up to 12 per cent in 2010 from 7 per cent in FY07.
Maruti is already augmenting capacities by 3 lakh in a phased manner by FY10 to a million units. Besides, it has lined up Splash (A2 segment) and the concept car A-Star (A1 segment), while a Swift sedan is on the cards. These will help earnings grow by 20 per cent annually in the next two years. Aggressive pricing, enhanced margins on the back of improved product mix, indigenisation and scale benefits, will help Maruti do well.
The company has 52 per cent market share by volume of the Indian car market and 62.5 per cent of the small car segment, which is commendable given the stiff competition from global majors.
Maruti grew at a scorching 18 per cent, compared with the 13 per cent recorded by passenger car market in H1 FY08. For eight months ended November 2007, sales volume was up 19.7 per cent to 500,108 vehicles led by 49 per cent growth in exports. Notably, exports are expected to grow 40 per cent annually for the next two years; its share in total sales is likely to move up to 12 per cent in 2010 from 7 per cent in FY07.
Maruti is already augmenting capacities by 3 lakh in a phased manner by FY10 to a million units. Besides, it has lined up Splash (A2 segment) and the concept car A-Star (A1 segment), while a Swift sedan is on the cards. These will help earnings grow by 20 per cent annually in the next two years. Aggressive pricing, enhanced margins on the back of improved product mix, indigenisation and scale benefits, will help Maruti do well.
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.
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.
JINDAL SAW
Jindal Saw, the most diversified Indian pipe manufacturer, makes submerged arc welded (Saw), seamless and ductile iron spun pipes, which are used in diverse applications like oil & gas and water-based infrastructure.
The company is expanding its capacities in phases which will bring economies of scale– longitudinal Saw pipes (by 25 per cent), helical Saw pipes (233 per cent) and seamless pipes (150 per cent) -- by FY09. These expansions are well-timed due to strong demand for pipes on account of surging demand for oil and gas globally.
Over the next three-four years, global demand (including India), for Saw pipes is estimated at 200,000 km involving an investment of $60 billion.
Jindal Saw is likely to gain due to restructuring of the investment holdings in Jindal Group companies, wherein it has substantial investments in Nalwa Sons, Jindal Stainless, JSW Steel and Jindal Steel & Power, are worth about Rs 2,200 crore. Excluding the value of investments, the stock trades at 9 times its FY09 estimated earnings, which is attractive as compared with 17 times for Welspun Gujarat.
Jindal Saw Ltd's (JSL) Q5FY2007 numbers were ahead of our expectations on the back of higher topline and improved margins. The net revenues marked a growth of 35.1% year on year (yoy) to Rs1,611.7 crore due to high growth witnessed in the submerged arc welded (SAW) pipe and the ductile iron (DI) pipe segments.
The US division, which contributed Rs535 crore to the topline during the quarter, has been hived off. Since the US division was operating at lesser margins of about 8-9%, its hiving off would result into an expansion in the company's profit margins.
On the back of a favourable product mix, lesser contribution of the US division, and greater efficiencies, the operating profit margin (OPM) expanded by 100 basis points yoy and 50 basis points sequentially to 12.4%. Consequently, the operating profits surged by 46.3% to Rs199.8 crore. Lower taxes led the profit before extraordinaries to grow by 83.1% to Rs110.1 crore.
JSL's order book at the end of the quarter stood at $1 billion executable by January 2009, with more than 65% contribution coming from international markets. Of this, $775 million orders were for SAW pipes, while the remaining orders were for DI and seamless pipes.
The company has announced new initiatives and has identified opportunities in new areas of infrastructure, transportation and fabrication industry, all through wholly owned subsidiary Jindal ITF. In all, the capital expenditure (capex) of Rs1,800 crore is planned to be spent on these businesses with 25% equity contribution.
To fund these plans, the company would also be issuing 26 lakh warrants and 27.3 lakh convertible debentures to the promoters, convertible at Rs819 per share.
We are not taking into account the impact of these new initiatives into our numbers currently and would await more clarity on the same. However, we do believe that there lies immense potential in these businesses, and the same would also offer higher return on capital than that of the core business.
We maintain our positive outlook on the company considering strong scope for its core business and margin expansion. We believe the stock is trading at attractive valuations at 9.9x its CY2008E earnings and 5.4x its CY2009E earnings. We maintain our Buy recommendation on the stock with a price target of Rs1,302.
The company is expanding its capacities in phases which will bring economies of scale– longitudinal Saw pipes (by 25 per cent), helical Saw pipes (233 per cent) and seamless pipes (150 per cent) -- by FY09. These expansions are well-timed due to strong demand for pipes on account of surging demand for oil and gas globally.
Over the next three-four years, global demand (including India), for Saw pipes is estimated at 200,000 km involving an investment of $60 billion.
Jindal Saw is likely to gain due to restructuring of the investment holdings in Jindal Group companies, wherein it has substantial investments in Nalwa Sons, Jindal Stainless, JSW Steel and Jindal Steel & Power, are worth about Rs 2,200 crore. Excluding the value of investments, the stock trades at 9 times its FY09 estimated earnings, which is attractive as compared with 17 times for Welspun Gujarat.
Jindal Saw Ltd's (JSL) Q5FY2007 numbers were ahead of our expectations on the back of higher topline and improved margins. The net revenues marked a growth of 35.1% year on year (yoy) to Rs1,611.7 crore due to high growth witnessed in the submerged arc welded (SAW) pipe and the ductile iron (DI) pipe segments.
The US division, which contributed Rs535 crore to the topline during the quarter, has been hived off. Since the US division was operating at lesser margins of about 8-9%, its hiving off would result into an expansion in the company's profit margins.
On the back of a favourable product mix, lesser contribution of the US division, and greater efficiencies, the operating profit margin (OPM) expanded by 100 basis points yoy and 50 basis points sequentially to 12.4%. Consequently, the operating profits surged by 46.3% to Rs199.8 crore. Lower taxes led the profit before extraordinaries to grow by 83.1% to Rs110.1 crore.
JSL's order book at the end of the quarter stood at $1 billion executable by January 2009, with more than 65% contribution coming from international markets. Of this, $775 million orders were for SAW pipes, while the remaining orders were for DI and seamless pipes.
The company has announced new initiatives and has identified opportunities in new areas of infrastructure, transportation and fabrication industry, all through wholly owned subsidiary Jindal ITF. In all, the capital expenditure (capex) of Rs1,800 crore is planned to be spent on these businesses with 25% equity contribution.
To fund these plans, the company would also be issuing 26 lakh warrants and 27.3 lakh convertible debentures to the promoters, convertible at Rs819 per share.
We are not taking into account the impact of these new initiatives into our numbers currently and would await more clarity on the same. However, we do believe that there lies immense potential in these businesses, and the same would also offer higher return on capital than that of the core business.
We maintain our positive outlook on the company considering strong scope for its core business and margin expansion. We believe the stock is trading at attractive valuations at 9.9x its CY2008E earnings and 5.4x its CY2009E earnings. We maintain our Buy recommendation on the stock with a price target of Rs1,302.
JAIN IRRIGATION
Jain Irrigation, which is in the businesses of micro irrigation systems, food processing and plastic pipes and sheets, is a direct play on the growing emphasis on agriculture. Irrigation systems account for 30 per cent of its revenue. It’s revenues from micro irrigation have grown at 70 per cent annually.
Growth will be maintained on the back of its plans to launch new irrigation systems, higher replacement demand, focus on geographical diversification.
Jain's five overseas acquisitions, including a 50 per cent stake in NaanDan of Israel, the world's fifth largest micro-irrigation company, will help in terms of access to technology and access to large markets such as South Africa, US, and Europe.
In food processing, which accounts for 14 per cent of total income and grew by 74 per cent in FY07, Jain produces juices and dehydrated vegetables for companies like Coco Cola, Nestle, etc. This business to grow at healthy from hereon.
In plastic pipes and sheets, its products find application in agriculture (30 per cent market share) and telecom (70% share) among others and, should continue to grow at a healthy pace.
To sum up, Jain is operating in high growth areas, while exports too are expected to grow rapidly, which makes it a good investment case.
Growth will be maintained on the back of its plans to launch new irrigation systems, higher replacement demand, focus on geographical diversification.
Jain's five overseas acquisitions, including a 50 per cent stake in NaanDan of Israel, the world's fifth largest micro-irrigation company, will help in terms of access to technology and access to large markets such as South Africa, US, and Europe.
In food processing, which accounts for 14 per cent of total income and grew by 74 per cent in FY07, Jain produces juices and dehydrated vegetables for companies like Coco Cola, Nestle, etc. This business to grow at healthy from hereon.
In plastic pipes and sheets, its products find application in agriculture (30 per cent market share) and telecom (70% share) among others and, should continue to grow at a healthy pace.
To sum up, Jain is operating in high growth areas, while exports too are expected to grow rapidly, which makes it a good investment case.
India Infoline
India Infoline is another company representing financial services, except the lending business.
Its stock price has grown more than fourfold in the last one year amid many positive triggers like capital raising for expansions, tie-up with strategic investors for investments in subsidiaries and restructuring of its various businesses.
Besides equity broking, it has expanded its product basket to include institutional equities broking, commodities broking, margin finance, investment banking and, distribution of life insurance, mutual fund and loans products.
It is investing towards building a strong distribution network (596 branches in 345 cities) and customer base (5 lakh clients) for its various services. Accordingly, the share of its traditional broking business of about 56 per cent in FY07 revenues is expected to come down over the years.
The stock trades at 51 times and 44 times estimated earnings for FY08 and FY09 respectively. While it looks cheaper than Edelweiss, in terms of market capitalisation to revenues, it trades at a higher P/E than Indiabulls.
However, it has the most de-risked business model compared to other players. Given India Infoline's aggressive growth strategy, the stock is ideal for long term investors.
Its stock price has grown more than fourfold in the last one year amid many positive triggers like capital raising for expansions, tie-up with strategic investors for investments in subsidiaries and restructuring of its various businesses.
Besides equity broking, it has expanded its product basket to include institutional equities broking, commodities broking, margin finance, investment banking and, distribution of life insurance, mutual fund and loans products.
It is investing towards building a strong distribution network (596 branches in 345 cities) and customer base (5 lakh clients) for its various services. Accordingly, the share of its traditional broking business of about 56 per cent in FY07 revenues is expected to come down over the years.
The stock trades at 51 times and 44 times estimated earnings for FY08 and FY09 respectively. While it looks cheaper than Edelweiss, in terms of market capitalisation to revenues, it trades at a higher P/E than Indiabulls.
However, it has the most de-risked business model compared to other players. Given India Infoline's aggressive growth strategy, the stock is ideal for long term investors.
HDFC
HDFC is an ideal play on the gamut of financial services. Besides market dominance in housing finance, it provides huge potential for value unlocking from its investment in banking, insurance and mutual fund subsidiaries.
The proposed UTI Mutual Fund IPO, stake sale by Reliance Capital in its mutual fund entity and the probability of listing of insurance companies though in the long term, should provide triggers. Moreover, there is a possibility of a merger with HDFC Bank.
Its core business--housing finance will continue to do well. Its loan book is expected to witness a CAGR of 25 per cent over the next two years. Its net interest margins are expected to remain stable at around 3 per cent.
And, HDFC is known for its asset quality. HDFC's stock trades at about 5 times FY09 estimated book value (adjusted for the value of its subsidiaries, which is about 30 per cent of HDFC's market capitalisation), and is a worthy pick.
The proposed UTI Mutual Fund IPO, stake sale by Reliance Capital in its mutual fund entity and the probability of listing of insurance companies though in the long term, should provide triggers. Moreover, there is a possibility of a merger with HDFC Bank.
Its core business--housing finance will continue to do well. Its loan book is expected to witness a CAGR of 25 per cent over the next two years. Its net interest margins are expected to remain stable at around 3 per cent.
And, HDFC is known for its asset quality. HDFC's stock trades at about 5 times FY09 estimated book value (adjusted for the value of its subsidiaries, which is about 30 per cent of HDFC's market capitalisation), and is a worthy pick.
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.
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.
Dishman Pharmaceuticals
Dishman, a pharma outsourcing player, is moving up the value chain from being a commoditised chemicals supplier to a research partner for innovator companies.
Its acquisition of Swiss-based Carbogen-Amcis (CA), which offers drug development and commercialisation services, has helped it tap into the client base of CA that includes seven of the top ten US drug companies.
With three projects in phase-III development, and likely to hit commercial production in two years, CA's revenues are expected to grow 15 per cent annually to Rs 400 crore by December 2008.
Dishman caters to 50 per cent of Dutch pharma major Solvay Pharma's requirement of eposartan mesylate, an anti-hypertension medication. Its acquisition of Solvay's Vitamin-D business will boost revenues. Its foray into China to manufacture Quats, a catalyst, is also seen positively.
All these should help reduce Solvay's share of 25 per cent in Dishman's revenues going forward. With earnings expected to grow between 25-30 per cent in the next two years (Rs 12 in FY08, Rs 15 in FY09 and Rs 20 in FY10), the stock can deliver 28-30 per cent returns in one year.
Its acquisition of Swiss-based Carbogen-Amcis (CA), which offers drug development and commercialisation services, has helped it tap into the client base of CA that includes seven of the top ten US drug companies.
With three projects in phase-III development, and likely to hit commercial production in two years, CA's revenues are expected to grow 15 per cent annually to Rs 400 crore by December 2008.
Dishman caters to 50 per cent of Dutch pharma major Solvay Pharma's requirement of eposartan mesylate, an anti-hypertension medication. Its acquisition of Solvay's Vitamin-D business will boost revenues. Its foray into China to manufacture Quats, a catalyst, is also seen positively.
All these should help reduce Solvay's share of 25 per cent in Dishman's revenues going forward. With earnings expected to grow between 25-30 per cent in the next two years (Rs 12 in FY08, Rs 15 in FY09 and Rs 20 in FY10), the stock can deliver 28-30 per cent returns in one year.
BLUE STAR
The central air conditioning major, Blue Star, is a key beneficiary of the economic boom in the country across sectors like IT/ITES, retail and telecom.
This is reflected in the strong CAGR of 32 per cent and 40 per cent in sales and operating profit respectively in the past three years.
Notably, such strong growth traction is expected to continue as the company is sitting on a strong order book position, which is at Rs 1,030 crore as on September 2007. It is likely to get repeat orders from its existing customers as they expand operations.
It is expanding its capacities by investing about Rs 60-70 crore, which will lead to economies of scale and rationalisation of costs leading to margin expansion. Its return on equity and return on capital employed, which were at 34 per cent and 26 per cent respectively in FY07, will only improve.
However, the full benefits will be reflected only from the next financial year. The macro factors too continue to be robust, with huge investments planned in all the above mentioned sectors.
This is reflected in the strong CAGR of 32 per cent and 40 per cent in sales and operating profit respectively in the past three years.
Notably, such strong growth traction is expected to continue as the company is sitting on a strong order book position, which is at Rs 1,030 crore as on September 2007. It is likely to get repeat orders from its existing customers as they expand operations.
It is expanding its capacities by investing about Rs 60-70 crore, which will lead to economies of scale and rationalisation of costs leading to margin expansion. Its return on equity and return on capital employed, which were at 34 per cent and 26 per cent respectively in FY07, will only improve.
However, the full benefits will be reflected only from the next financial year. The macro factors too continue to be robust, with huge investments planned in all the above mentioned sectors.
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.
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.
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.
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.
Bharati Shipyard
Stocks of shipbuilding companies have been re-rated on the back of rising order book-to-sales to over seven times. The stock price of ABG Shipyard has gone up 267 per cent, while Bharati Shipyard is up 107 per cent over the last one year.
The gain has been higher in the case of ABG Shipyard, thus stretching its valuation at 33 times its FY08 estimated earnings. Bharati Shipyard is still trading at a comfortable 18 times estimated FY08 EPS and 13 times FY09 EPS.
Also, its current order book of about Rs 4,639 crore (11 times its FY07 revenue) is strong enough for maintaining 50 per cent growth for the next three years.
Bharati is building a greenfield shipyard which will enable it to build six vessels up to 60,000 dwt (dead weight tonne) against 15,000 dwt currently by December 2008. This will enable Bharati to improve its execution speed and bid for more projects.
Besides, it is planning to invest Rs 2,000 crore along with Apeejay Shipping to set up a shipbuilding yard on the eastern coast, which will be commissioned in FY 2011. A relatively lower valuation and strong earnings visibility makes this stock an attractive investment.
The gain has been higher in the case of ABG Shipyard, thus stretching its valuation at 33 times its FY08 estimated earnings. Bharati Shipyard is still trading at a comfortable 18 times estimated FY08 EPS and 13 times FY09 EPS.
Also, its current order book of about Rs 4,639 crore (11 times its FY07 revenue) is strong enough for maintaining 50 per cent growth for the next three years.
Bharati is building a greenfield shipyard which will enable it to build six vessels up to 60,000 dwt (dead weight tonne) against 15,000 dwt currently by December 2008. This will enable Bharati to improve its execution speed and bid for more projects.
Besides, it is planning to invest Rs 2,000 crore along with Apeejay Shipping to set up a shipbuilding yard on the eastern coast, which will be commissioned in FY 2011. A relatively lower valuation and strong earnings visibility makes this stock an attractive investment.
BHARAT BIJLEE
Though Bharat Bijlee has risen by a whopping 228.5 per cent in the last one year, even at current levels, it is inexpensive.
Consider this: The company has investment in various companies including Siemens, HDFC and ICICI Bank.
At current rates, their combined value works out to Rs 317 crore, or about Rs 560 per share. Excluding this, the core business is valued at attractive valuations of 20 times FY08 earnings and 15 times FY09 estimated earnings.
The company is capitalising on the emerging opportunities in the power transformer sector, which accounts for 65 per cent of its total revenues with the balance from motors.
In the Eleventh Five Year Plan, a total power generation capacity of 78,000 mw is planned. This augurs well for transformer manufacturers such as Bharat Bijlee.
The company on its part has recently expanded its transformer capacity to 11,000 MVA from 8,000 MVA. The motors business is also witnessing 25 per cent growth and Bharat Bijlee has forayed into higher frame motors of up to 400 kw. All this put together make Bharat Bijlee a good pick.
Consider this: The company has investment in various companies including Siemens, HDFC and ICICI Bank.
At current rates, their combined value works out to Rs 317 crore, or about Rs 560 per share. Excluding this, the core business is valued at attractive valuations of 20 times FY08 earnings and 15 times FY09 estimated earnings.
The company is capitalising on the emerging opportunities in the power transformer sector, which accounts for 65 per cent of its total revenues with the balance from motors.
In the Eleventh Five Year Plan, a total power generation capacity of 78,000 mw is planned. This augurs well for transformer manufacturers such as Bharat Bijlee.
The company on its part has recently expanded its transformer capacity to 11,000 MVA from 8,000 MVA. The motors business is also witnessing 25 per cent growth and Bharat Bijlee has forayed into higher frame motors of up to 400 kw. All this put together make Bharat Bijlee a good pick.
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 opportunity.
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 opportunity.
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