RPOWER--- Bonus issue

Hi Friends.

Recommended to all who have registered with us on email 2 weeks ago, about BONUS DATE ANNOUNCEMENT very soon. Yes... In matter of days you will hear from the management. Keep holding the stock.. Its all set to cross 400+. (We recommended a buy from 315 levels)

Regards
Happy Investing
Investomaniac
JAIDADIKI

HEG--- A long term bet

HEG Limited

Sensex 15807
BSE Code 509631
Face Value Rs. 10/-
CMP Rs 287
52 Week Range H/L Rs. 609/ 166
Equity Rs. 43.51 Cr
Market Cap. Rs. 1257.66 Cr
Nos. of Shares 4.35 Cr
Free Float 46.77%


Company Profile

HEG Ltd is a premier company of the LNJ Bhilwara Group, and is India's leading graphite electrodes manufacturer. . Set up in 1977, in technical and financial collaboration with Societe Des Electrodes Et Refractaires Savoie (SERS), a subsidiary of Pechiney of France, HEG is now the largest integrated graphite plant in South East Asia & Middle East. Spread over an area of about 170 acres, HEG (graphite division) has facilities for production of Graphite Electrodes and Graphite Specialities. HEGL has its graphite manufacturing plant located in Mandideep (Madhya Pradesh) with a capacity of around 52,000 MT per annum. The Company also operates a sponge iron plant, a steel billets plant, and captive power generation units totaling 56.3 MW. The company exports over 80% of it’s production to more than 25 countries of the world. HEG also has a dedicated R&D Set up for Carbon & Graphite.

Industry Outlook

The worldwide graphite electrodes industry, which accounts for 80% of HEGs revenue, continued to witness strong demand and price conditions during FY2007 and this trend is expected to continue in FY2008 as well. The demand for graphite electrodes is driven by the production of steel through the electric arc furnace (EAF) route. This process of steel production is slowly gaining ground and is expected to grow further. Rough industry estimates of graphite electrode demand also suggest a positive scenario. From about 1.02 million tonnes in 2001, the global demand for graphite electrodes is estimated to increase to 1.34 million tonnes in 2010. With no significant capacities being added globally to the current capacity of about one million tonnes, established players like HEG stand to benefit the most. The demand for graphite electrodes is spread across the US, South America, Europe, Japan and China, which are the principal manufacturers of steel through the EAF route. Nonetheless, given the lower cost of production and the likely improvement in power availability, it may only be a matter of time before Indian manufacturers too take to this route completely


Trigger Points for Investment


• The company has recently invested Rs 4.5 Billion ( US$ 120 Million) to expand their capacity.
• Steel manufacturing companies with electric arc furnace are the only consumers of graphite electrodes, with the demand for graphites is only expected to rise in future, its only matter of time that the revenue and the profitability of the company will grow.
• HEGL has its captive power generation facilities with a total capacity of 51.3
MW and it plans to set up another power plant with a capacity of 30MW.
• HEG's graphite electrodes are exported to 25 countries around the world, including developed countries like USA, Canada, Germany, France, Italy ,South Korea, Australia. The company continues to build relations with these clients over last few years, which has helped the company in increasing its export turnover.
• HEG Ltd. had increased its graphite manufacturing capacity from 33,600 MTPA in FY05 to 52,000 MTPA in FY06. This will further be increased to 57,000 MTPA in the current financial year.


Key Concerns

Limited availability of needle coke:
Needle coke is a premium grade, high-value petroleum coke, used in the manufacturing of graphite electrodes in arc furnaces and it is a very important Increase in needle coke prices remains a principal risk due to demand-supply mismatch.. There are very few companies in the world which produces needle coke. Prices of needle coke are expected to remain firm, as it is a derivative of crude. However increase in prices of electrodes should offset the rise in price of raw material.

Foreign Exchange risk:
We have seen rupee appreciating by 8 to 10%. Any further appreciation will lead to a hit on the revenues of the company , as around 50% of the revenues are export generated.


Valuations

Looking at the demand for graphites in the steel industry, HEG has increased its
manufacturing capacity over the period. HEGL being the leading graphite manufacturer in India will be able to realize the benefits of the rising demand and increasing prices. HEG holds 36% stake in BEL( Bhilwara Energy Ltd).We estimate the value of the HEG’s stake in BEL at Rs98/sh of HEG based on the last private equity placement that BEL has done with 2 US based funds. BEL is planning to go for another private placement or IPO and HEG expects the valuations to be substantially higher than the previous valuations. Excluding the current value of HEG’s stake in BEL, at the current market price of 260 the stock trades at P E Multiple of 10 with our FY09 FDEPS of Rs 25.78/-

One can have this stock under its long term portfolio with a time horizon of 12months and a price target of Rs 385++ (Upside 35%+)


For more details please visit www.investomaniac-analyst.blogspot.com or contact nishantlakkar@gmail.com




Disclaimer: This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained in this article are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Myself or any of the contributors to this article may be investing in, or have positions in the securities mentioned in the articles. Neither myself nor any of the contributors accepts any liability arising out of use of the above information/article. In this article the stocks are analysed using fundamental and value analysis, which is the core of Investing. Genuine attempts are made here to present correct information, however we do not guarantee 100% accuracy. The writer (myself) IS NOT RESPONSIBLE for any LOSS in the investments made, following the recommendations here. Reproduction in whole or in part without written permission is prohibited.

Tech Mahindra-- & Tantia Construction

Hi Friends
Tech Mahindra was recommended through email to our premium service members as well as free members thru email for a target of Rs 850. The stock made a high of 872 today.

Tantia Construction was recommended on 30th March 2008, 10 days back. In the last 3 days 2 UPPER CIRCUITS of 20%....... What else???????
Tgt was 150 in 90 days.... seems we will reach there in the next few days itself.........(Check the report on tantia below, which was published on 30th March, 2008)

What say guys??? :-)

Done think twice...... Go ahead and JOIN US...........

For details mail us at nishantlakkar@gmail.com


Regards
Happy Investing
Investomaniac
JAIDADIKI

Sterlite Industries

Hi Friends
Sterlite Industries was recommended on friday @ 715 and also today morning @ 730, booked out 100% profits @ 745 and 753.
TANTIA CONSTRUCTION recommended last week (Check below)... HITS THE UPPER CIRCUIT TODAY>> up by 20%.....
We have started sending calls directly on email. Please contact nishantlakkar@gmail.com for registration purposes and recieving limited period free service.

Regards
Happy Investing
Investomaniac
JAIDADIKI

Tantia Construction Ltd-- Short Term

Hi Friends
Its time to now have a relook at some of the small cap and mid cap stocks after the butchering of 3 months for these indexes. The Space is looking really hot atleast for the short term.
TANTIA CONSTRUCTION (A Full Fledged Report Card)

TCL is engaged in all types of civil construction works with major presence in sectors like roads, railways, bridges, urban infrastructure development, power
transmission, aviation infrastructure, marine infrastructure, tunnels construction and at times, construction of turnkey projects. Of late, the company has also entered into industrial construction segment. The average value of the projects handled by the company, in the recent past, has been within Rs.50 crore with highest value of the project executed, till date, being Rs.65 crore. For the last few years, the company has started getting involved into relatively high value projects in joint venture with other construction companies or otherwise. The company uses latest technologies (developed by itself), machinery and equipment. In order to benefit the huge job potential in road & railway sectors, the company has formed quite a few joint ventures to make a significant headway in those segments with receipt of higher value contracts. It has formed technical collaboration with RBM Sdn Bhd, a Malaysian company, for executing a road project. The company also has
strategic alliance with Travaux Du Sud Ouest, a French company, to get the benefit of technical know-how, engineering insights and project management skills. In most of the projects executed by TCL, the drawings are either provided by the clients or TCL outsources designing and drawing facility, in consultation with clients.
TCL has an impressive client portfolio, which includes Indian Railways, IRCON International Ltd., RITES, Delhi Development Authority, HUDCO, Airport Authority
of India, Indian Oil Corporation, Balrampur Chini Mills Limited, SAIL, NHAI, Central & State PWDs, NEEPCO, Metro Railways (Kolkata) and various state undertakings of West Bengal. TCL continues to have a healthy order book position. As on June 30, 2007, the value of orders in hand (including on-going projects) was about Rs.1232 crore.
In FY'07, TCL has bagged orders worth about Rs.600 crore mainly in the areas of roads, highways and bridges from Road Construction Department, Govt. of Bihar, Central Public Works Department, New Delhi, Eastern Central Railway, Patna and KMDA. In view of its long & established track record, TCL gets good number of repeat orders significantly.
Now some of the positive triggers...
> The Company has a combined order book of more than Rs.1200 Cr at present. Some 1000Cr orders are on the pipeline
> This is a Core Infrastructure and Construction Company hence it will benefitted due to the additional fund allocation in "Bharat Nirman". The government's thrust on infrastructure development and a favourable Railway budget are positive triggers for the company (It has work from Central and Eastern Railways as well as Metro Railways)
> The company has listed its shares in The National Stock Exchange of India Ltd. last month and this has increased the liquidity in the counter, whic could prompt Mutual Funds and FIIs to stake in the company. This is a great positive trigger for the company and could also take the scrip above Rs.170, with this trigger.
> It is currently implementing 3 construction projects from National Hydroelectric Power Corporation Ltd (NHPC) for construction and maintenance of the road for the five years at Patna in the state of Bihar amounting to Rs 12.50 cr approx.
Two construction projects from World Bank Projects (Roads) U.P.P.W.D, Lucknow for Rehabilitation Road Works under Utter Pradesh Stale Roads Projects amounting to Rs 70.83 crores approx.
A rail work from Eastern Railway for earthwork, blanketing work, construction of RCC bridges between Azimganj Jn station to proposed bridge site across the river Bhagirathi along with the restoration of Rail Link in between Jiaganj (Murshidabad) and Azimganj Ju amounting to Rs 18.77 crore. The total value of work is Rs 102.10 Cr.
Also to be noted, it has also been working for the much hyped Kolkata Tramways Project in renewing the tram tracks all across Kolkata.
> Tantia Constructions Ltd had earlier issued FCCBs to the tune of US$ 7.5 million which had the option to be Convertible at any time on or after July 17, 2007 upto and prior to the close of Business on July 05, 2012 unless previously reduced, converted or purchased and cancelled and except during a closing period.Conversion Price: Rs 140/- per share. It is also expected that the funds raised through FCCBs will ease the level of debt on the balance sheet.

All the above supports are good enough for the stock to reach 150 in short term. And now since the mid cap and small cap space are looking good and attracting buying intrest (after the heavy butchering in the last 3 months)... We are all set to see a some of these companies getting their deserved price.

CMP (97.00)
(BSE: 532738) | NSE: TANTIACONS
Target 150+
Time Frame - 90 days- 180 days (maximum)
*Investors should book profits based on their profit taking appetite.

Long Term Investment - Power Grid Corp

Hi Friends
I have started updating the site once in a week now as I have started recieving so many mails/queries that after replying them I hardly get time to update the site regularly. However what I have been doing is that I have made a list of people who wish to recieve my short term and long term advice and mail them all together once as a call arises.
For the site viewers I would request all to kindly mail me at nishantlakkar@gmail.com to register for free short/long term calls.

I had a chance to talk to the management of Power Grid Corporation and was really excited to know about the progress they are making and planning to regulate the companys telecom business plans.
PGCIL is planning to invest upto Rs 500 billion in the transmission projects in the near term out of which around 52.5 blillion has already been invested. They are expecting to invest the remaining amount by 2012-13. According to the earning estimate reports published by Edelweiss, PGCIL is expected to have a net profit of around 20300 million in FY09E and 26000 million in FY10E. (Including income from tower and consultancy business). PGCILs entry into telecom space is likely to provide boost to its bottomline to the extent of 10-12%.
PGCIL currently has an overhead optic fibre network of 20,000 km, spanning 100 cities in the country. The company has order of over Rs 3,000 mn from various telecom players for leasing the optic fibre bandwidth. It also holds license for national long distance dialing and offering services as internet service provider (ISP); the company has been generating revenues from both these segments over the past two quarters.
I personally believe that it is very good long term buy and the prospects of the company are very attractive. Very few companies are there with a mix of telecom, power, and consultancy and we can see a price of Rs 200 in a years time. It is one of the best Long term Stocks to have in ones portfolio.
If anybody wants to access a report from Edelweiss for PGCIL then please request for the same at nishantlakkar@gmail.com

Happy Investing
Investomaniac
JAIDADIKI

Tax Planning

Hi Friends.
First of all I would like all of you to atleast use this fall (in which most of our investments are in loss) to use it purposefully or smartly in our annual return filing.
Suppose we have invested Rs 1,00,000 in the markets and today the value of that investment is Rs 60,000. There is Rs 40,000 Notional Loss in our accounts which has no meaning untill and unless we hold it for one complete year (because then there will be 0% long term capital gain tax) but then there is no guarantee that after 1 year this 60000 will sur pas our investment value of Rs 1 lakh and give us surplus returns of more then 20-30%. That means this 60000 will now have to double in one year in order to give us 20% Net Profit in One Years time. (ie: 60000 has to become 1,20,000) Instead, I would go ahead and book this loss before 31st March 2007. What will happen in this case is that If you already have made some profits as short term gains in this year then the short term gain will be immediately set off by this loss and there wont be any tax liability at your end for whatever little profit u have made in the accounting year 2007-2008 ending 31st March 2008. Suppose u have made a profit of Rs 40000 during the year, then your tax liability is Rs 4000. But if you book the losses in your current investments which is Rs 40000 then the tax liability is NIL. There is nothing to loose in it because if u want to stick to the same stocks, u sell them today, book ur short term losses, and buy them next day again. There is no problem in that as well, also it gives u the chance to reschuffle your portfolio if u want. Atleast we would be able to save some tax liablity in this case. This is purely legal.. nothing wrong about it. Please consult ur tax planner or a CA if anybody has any doubts regarding the same.

***
As far as the markets are concerned, i think we might see some lower bottoms being formed due to various factors like inflation, global cues, political reasons and dismal industrial production and quaterly results from India Inc. We have to be very selective in stock picking. As of now L&T is looking very attractive for long term horizon, untill and unless it breaks 2350-2400 there is nothing to worry about the stock. We can Buy the stock with a stop @ 2350. Any other queries/feedback or suggestions please mail me at nishantlakkar@gmail.com

Investment Idea - Grindwell Norton

Hi Friends
Markets have fallen more then 32% from the top and mid/small cap index is down to more then 50% but still some of our investment ideas are trading just below our recommended price because of very strong fundamentals and valuations. An example of that is Elgi Equipment. Recomended @ 60 the stock is still moving in the range of 52-58. Another Investment idea which I feel would be a multibagger once the market sentiments improve is Grindwell Norton.
Investment Rationale

Ø GNL, 51.33% subsidiary of Euro 43 billion Saint–Gobain (SG) of France and India ’s leading manufacturer of Abrasives, Silicon Carbide (SiC) & High Performance Refractories, has reported excellent performance for Q4 CY 2007. Net sales grew @ 29.2% to Rs. 123.3 crore led by 54.7% spurt in Ceramic & plastic sales of Rs. 34.8 crore (Rs. 22.5 crore). Abrasives sales were up by 19.1% to Rs. 86.7 crore (Rs. 72.8 crore). OPM% enhanced considerably to 17.5% (15.6%) mainly because of strict control on other expenses (20.9% of sales as against 26.2% in Q4 CY 2006) and reduction in power cost (to 7.7% from 9.5% of sales). Further aided by 58.8% spurt in other income of Rs. 5.4 crore, PBT shot up by 59.1% to Rs. 23.7 crore and PAT by 53.5% to Rs. 15.5 crore.
Ø For CY2007, Net sales were up by 18.2% to Rs. 440.8 crore. Abrasives turnover increased to Rs. 330.2 crore (Rs. 285.6 crore), growth of 15.6%, while Ceramics & Plastics turnover grew @ 25% to Rs. 106.5 crore (Rs. 85.2 crore). OPM% declined to 16.6% mainly because of rising raw material and personnel cost. However, strong sales growth coupled with 64.9% jump in other income of Rs. 21.6 crore led to 20.1% increase in PBT of Rs. 82.3 crore and 22.8% increase in PAT (before extra ordinary items) of Rs. 56.5 crore. Net of tax profit on sale of stake in Lincoln Helios (group company) of Rs. 77 crore (NIL) boosted PAT substantially to Rs. 133.5 crore.
Ø GNL caters to diverse industries like construction, automotive, steel, foundry, bearings, fabrication, laminates etc. In view of growing economy, GNL’s all user segments have been doing well and are expected to do well to provide scalable and de-risked growth profile in future. To meet growing demand and to further strengthen its competitive position (market share of ~31%), company is setting up a plant in tax haven in Himachal Pradesh for abrasives products at capex of Rs 37 crore in Phase I. Commercial production is likely to commence in H2 CY 2008. Further capex of Rs.20 crore will be incurred in Phase II. This plant will be key growth driver and it will give GNL an edge over its competitor & unorganised sector in terms of pricing : cost. Acquisition of bonded abrasive business of Orient brasives for Rs 26 crore in CY 2009 resulted in expansion of GNL’s product range and has given it an advantage in terms of new distribution channels, dealers and sales team.
Ø Company has set up 70:30 JV in Bhutan in partnership with Singye Group of Bhutan (30%) to set up Rs.34 crore project to manufacture 20,000 tpa of Silicon Carbide in two phases of 10,000 tpa each. While 1/3rd production will be utilised in-house, 2/3rd would be sold outside. This plant will enable GNL to get SiC at cheaper rates, at the same time, it will be able to sell SiC to outside parties at high EBIDTA of ~25-30%. Full benefits of this project will be available from CY09 onwards.
Ø Because of strong parentage, GNL has access to the best of products and technology and a global base. Company can buy raw materials / products from anywhere in the SG world to bring down costs. China , India and Brazil are 3 low cost manufacturing bases of SG. Over a period of time, SG will rationalize its manufacturing facilities so that GNL could become one of the hubs for certain products and certain markets.
Ø GNL generates strong cash flows and has cash surplus to the extent of ~ Rs 85 crore after having sold investment in a group company that works out to Rs.15 per share.
Ø The company is also declaring a dividend of Rs 4 on the stock for which the record date is 25th Mar to 28th Mar 2008.
All n All its a very good buy at current levels given the business model and the valuations.
Long Term Investors can see a tgt of 250+ within 12-15 months. Its really hard to recommend anything for the short term, but still is the market conditions are good then the stock can cross 160 levels pretty soon.

Happy Investing
Investomaniac
JAIDADIKI

L&T---- Return of 200rs already...

Hi Friends
L&T after making a low of around 2600 yesterday closed well above 2900 today, a again of around 250+ Rs in one day. As i said before that a stock like L&T cannot be available for a cheap price like 2600 for a long time. We can still get an opportunity to buy the stock at those levels if the markets break again in the coming days. Today the FED announced a releief of 200 billion dollars for the economy and the DOW opened up 250+ points. If they sustain above 200 points then we can see some fire crackers tomm in our markets tomm and in that case L&T can blast towards 3200+. As the stock has been recommended for long term, keep holding the stock for good returns.
Sesagoa is another stock which is looking very good at the moment. It can blast upto 3800+ (Risky call, activated only if the markets conditions are positive).

Happy Investing
Investomaniac
JAIDADIKI

L&T-- Investment Idea recommended yesterday

Hi Friends
Yesterday L&T made a low of 2610, down 300+ rs from previous days close. As I recommended yesterday that its a good buy @ 2500-2600 today we might get the chance to enter the stock in panic. We can initiate a BUY position for long term in the panic and we can get a price of even lower then 2500. So one can go ahead and use 25-35% of their money to invest now and the remaining can be entered upon later if the market falls again in the coming days. This is the best stock to enter at these levels. Do remem in panic we can get a price of 200-250 rs down from the last close so take some small position accordingly.

Markets to remain weak till the global pinch is not over.

Happy Investing
Investomaniac
JAIDADIKI

THE BEST INVESTMENT OPPORTUNITY---- L&T

L&T--- The best investment bet (long term).

Larsen & Toubro
CMP - 2,999.0
PER - FY07 48.5 FY08E 32.5 FY09E 23.9
RoE(%)- FY07 26.1 FY08E 29.9 FY09E 31.0
Target - 4400+
Upside - 47%+

* Larsen & Toubro, the largest engineering and construction (E&C) company in India, is a direct beneficiary of the strong domestic infrastructure development and industrial capital expenditure (capex) booms. Consequently, we estimate the order inflows to grow at a CAGR of 20.7% between FY2007 and FY2010.
* The international business is expected to emerge as one of the key drivers going forward with immense opportunities from the Gulf Corporation Council markets.
* There lies innumerable opportunities in the new verticals in which the company is entering, namely ship building, defence, railways, thermal and nuclear power.
* We believe that there is a scope for further improvement in the margins on the back of rising operational efficiencies, larger ticket-size and more complex nature of orders, better raw material sourcing and integration, and higher contribution of its new businesses which carry higher margins.
* We value the core business of L&T at 28x FY2010E earnings, or Rs3,403 per share, while we value the subsidiaries at Rs1,025 per share of L&T. At the current levels, the stock is trading at 18.5x its FY2010E consolidated earnings.

According to us, one can buy the stock at around 2500-2600 in panic and keep it under the long term investmewnt portfolio for atleast 1 year. It is available at a throw away price and any improvement in the market condition and this stock will witness a sharp upside swing.
In these markets giving any kind of short term advice would be very very risky hence we would like you to do the same and wait for the bad wind to get past. The markets have fallen more then 32% from the top from 21206 and the worst hit indices are the small cap and mid cap index coming down almost 70% and 51% respectively. We would advice caution as we have been doing so from the 2nd week of Jan and also not to average at these levels.
RCOM may be coming out with some news on RELIANCE INFRATEL.... RISKY TRADERS CAN KEEP AN EYE ON THIS STOCK>> above 548---- 560 sure shot.

Keep you all posted in the weekends.

Happy Investing
Investomaniac
JAIDADIKI

The Union Budget FY09 (The First Impression)

Hi Friends
Here are the few points which i would like to bring to everybodys attention about this years BUDGET>>>
ST Capital gains tax increase to overshadow fiscal gains
The increase in Short Term Capital Gains tax (STCG)and the indirect increase in
Securities Transaction Tax (STT) will disappoint the markets, in our view. On the
positive side, the Finance Minister has succeeded in more than meeting his fiscal
deficit targets and has forecast a fiscal deficit of only 2.5% of GDP for next year
(though we guess effects of Pay Commission will take it higher).
Payback time for stock markets
Given the strong gains in stock market, the Finance Minister has increased the
STCG from 10% to 15% which will likely disappoint the market slightly. While he
has not increased the STT, he is no longer allowing it as a rebate from the total
taxes but as a business expenditure. We believe this will increase the post-tax
impact of STT.
Waiver of farm loans – Government to compensate banks
The Finance Minister has announced a waiver and a one-time settlement of
agricultural loans that will lead to a write-off of loans upto Rs600 bn. While details are still not clear, the Government has said that they will compensate the banks fully for these write-offs. In some sense, this is a pre-election move and there are demerits of loan waiver on those repaying on time but it also helps in a more inclusive growth by greater allocation of resources towards the poor.
Autos – gain with excise duty cuts, personal tax cuts Autos will gain in the budget with a decrease in excise duty by 4% on small cars, 2-wheelers, buses and CVs. Also, helping autos would be lowering of personal taxes and the impact of the likely announcement of the Pay Commission impact.
ITC, cement – excise duty increases slightly negative
ITC has seen an increase in excise duty but since it is only on non-filter cigarettes
which are a smaller part of their turnover, the overall impact is marginally negative. Cement companies too are hit marginally by increased excise on bulk cement.
Holding companies gain - Double Dividend Taxation set-off
Holding companies can now claim set-off of dividend taxes paid on dividend
received by their subsidiaries. This should help companies like Jaiprakash which
have presently many SPVs (and in future helps companies like Gammon, L&T
etc) as well as finance companies like ICICI, HDFC.

Taxes and Duties
Custom Duties
􀂄 Peak customs duty to remain unchanged
􀂄 Customs duty on project imports reduced to 5% from 7.5%
􀂄 Custom duty on steel melting scrap and aluminum scrap reduced to nil from 5%
􀂄 Duty on convergence products down to 5% from 10%
􀂄 To levy 5% customs duty on naphtha imports by polymer units
Excise Duties
􀂄 General CENVAT reduced to 14% from 16%
􀂄 Excise duty on pharmaceutical sector cut to 8% from 16%
􀂄 Excise duty on small and hybrid cars cut to 12% from 16%; bus and chassis
duty cut to 10% from 16%
􀂄 2 wheeler and 3 wheeler excise duty cut to 12% from 16%
􀂄 Paper and products duty cut to 8% from 12%
􀂄 Abolishes 6% ad-valorem duty on petrol, diesel and replaced with specific
duty of Rs1.35 per litre
􀂄 Zero excise on wireless data cards and puffed rice from earlier 16%
􀂄 Special packaging material to attract 8% excise vs earlier 16%
􀂄 No excise on cold chain end use items with greater than 2t refrigeration capacity
􀂄 Packaged software excise duty increased to 12% from 8%
Service tax
􀂄 To introduce service tax on stock exchange/ commodity exchange/ clearing house services, customized software services
􀂄 Clarifies moneychanger, tour operators and lottery services to pay service tax
Direct taxes
􀂄 Income tax threshold increased to Rs1.5Lakh from Rs1.1Lakh. 10% income tax for Rs1.5-3Lakh, 20% for Rs3-5lakh and 30% for above Rs5lakh income slabs
􀂄 No change in corporate income tax scheme
􀂄 No change in surcharge
􀂄 Short term capital gains tax increased to 15% from 10%
􀂄 Banking cash transaction tax withdrawn
􀂄 Commodities transaction tax for futures, equal to STT, to be introduced
􀂄 A five year income tax holiday for two, three or four star hotels in UNESCO world heritage cities in India announced and completed between April 1, 2008 to March 31, 2013
􀂄 A five year income tax holiday for hospitals in tier 2/3 towns announced and
completed between April 1, 2008 to March 31, 2013
􀂄 Dividend distribution tax on dividend of subsidiaries to parent to be set off in
dividend distribution tax paid by parent company
􀂄 Tax to GDP ratio seen at 12.5%
Others
􀂄 Defense spending to go up by 10%
􀂄 Education spending to go up by 20%; 6,000 high quality schools to be built in FY09
􀂄 Health spending to go up 15%


These were some important points from the budget which i could point out.
For sector wise negatives and positives please mail at nishantlakkar@gmail.com

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (For the coming days)

Hi Friends
Really sorry for not updating the site on a daily basis, as there are lot of queries coming up and in order to answer as many as possible hardly any time is left to update the site daily. However the ones who are intrested in the Delivery Calls should not be worried much about it because it does not require daily postings. Actually this site is meant for Delivery based investors but due to so many emails regarding nifty views and outlook i started updating frequently. I keep on adding the query list in my address book and send them emails together constantly updating about the markets and the open calls. Would request all to mail any queries/feedback or suggestions @ nishantlakkar@gmail.com with the subject "Query/Feeback/Suggestion" which ever is applicable
Nyways,
Markets have gained on 2 days after a week long consolidation between 4900 and 5200.
I personally believe that one should hold on to their current positions and dont take any additional position till budget.
Although I expect the Education, health, and IT sector to get special considerations in this budget.
I would like to highlight some of the important points from my reports to all the free access members here in this website regarding the expectations from budget.

• Reduction in direct tax rates for individuals
• Some reduction or elimination of dividend distribution tax
• Rationalization of excise duties, including the auto sector
• Rationalization of exemptions for corporates
• Lower customs duties for commodities to contain inflation and
rationalization of inconsistencies
• Enhanced credit availability for the agriculture sector
• Some relief in FBT
• A sharp increase in the outlays for social sectors like health and education
ØBalancing act on growth v/s social commitments to continue
ØSince this budget is the last full budget (next budget most likely to be vote-onaccount
budget) of UPA, the FM may be tilted towards social commitments
ØThe tug of war between inflation and growth related measures will also
continue
ØWe expect higher allocations to education, unemployment, healthcare to
support the social commitments
ØInfrastructure will again turn out to be the key thrust area and we expect
further measures to be announced to boost investment in this area
ØBudget allocation to agriculture related items may get intensified as
agriculture is a weak component to the GDP. An increase in agri supply also
eases out inflation
ØFiscal deficit could be projected at sub 3% level
ØGovt’s commitment towards achieving the 9% GDP rate will continue
ØFurther cut in certain custom duties in commodity sectors like metals,
petrochem and chemicals is expected as this will ease out the supply side
constraints on one hand and reduce the pressure on inflation on the other
ØA cut in direct tax rates expected as the first 10 months’ direct tax
collections have been 40% above the target
ØWe expect a likely cut in corporate tax rate to 30%. This is despite the fact
that we expect a populist budget
ØThe individual threshold limit might get revised upwards or alternatively
there might be an investment based incentive scheme introduced to
channelise savings for investment purposes

These are a part of the report which i prepared for the PMS and other members. I also have a full report on BUDGET from Kotak... If anybody wants that please email your request.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (21/02/2008)

Hi Friends
Yesterday we saw one of the worst days since my entry into the stock markets. I term it as the worst day (even worst then any other lower circuit in the markets before) because the games which the nifty was playing. It kept on breaking the supports and hitting the resistance for numerous occassions during the trading day and the traders ARE RELUCTANT TO HOLD ON TO ANY POSITION, BE IT SHORTS OR LONGS. The volumes are still a concern for me as around 60000 crore volume on Nifty is atleast 35-40% less then a normal day trading participation of 95-100 thousand crores. It would be very difficult for the markets to go up untill and unless the domestic and foreing funds take long positions and most importantly hold them. What is happening right now is that whatever positions the traders are taking they are booking it instantly.. ie: not carrying their longs or shorts which makes the stop loss hit on both the sides and eventually selling pressure is seen. My view is that we have to soon go past 5350-5360 mark and stay above it with good volumes to be under the wraps of the bulls. On the other side, if the markets breaks the 200 DMA again which is around 4890 levels... then we are in a BEAR PHASE with the heavy DOWNSIDE.
Asian Markets are trading strong and DOW also ended onj positive note after a weak opening hence we can open positive today but have to see weather we are able to sustain the highs or make new highs for the day or not.
I am still long and will wait for today... If we break support levels today as well then I would advice an EXIT on ALL LONGS...

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (20/02/2008)

Hi Friends
As mentioned earler we have seen 2 days of sluggish trading where profit booking was seen on every rise...I am extremly positive on the remaining days of the week and my expiry target is above 5700++... The momentum stocks like NTPC, RPACK, TISCO, TATAMOTOR etc should be performing well along with the markets.... All investment advices should be on hold. Any other queries/feedback/information please mail at nishantlakkar@gmail.com

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (18/02/2008)

Hi Friends
Markets are all set for a PREBUDGET rally...The fundamentals and the technicals both give a clear indication of a ROCK SOLID Expiry for this series..
As per the technicals the markets have bounced back after breaking the 200 DMA levels twice and history also says that markets have strongly bounced back after that. As per the technical experts...... the markets are all set for a ride on the upside and it could be termed as a pre budget rally....
We have already booked our positions on friday and we can reenter the same with nifty targeting 5800+ in expiry....

All our investment picks are rocking.. and should be kept on hold.
INOX Leisure is looking very good at the moment.. and may target 175 in the near term.
Happy Investing
Investomaniac
JAIDADIKI

Market Review (for the week ended 15/02/2008)

Hi Friends
As expected the markets rocked after last tuesday and those who traded on the NIFTY FUTURES & OPTION calls given by me for buying on last tuesday would have made significant movement, because from wednesday the markets have moved NON STOP on the upper side. The nifty 5500 call bouht around 25-30-35 levels.. made a high of 80 rs.. Nifty jumped more then 300++ points for those who had bought on tuesday late trade as informed bty me... Delivery calls are not to be discussed on a daily basis, as they are meant to be moving slowly but steadily.. Keep holding the stocks for good returns. There are some rumours coming that RPOWER is planning to issue bonus shares (except the promoters) to all those investors who are currently holding their stocks.. board meeting on 24th Feb.. Unconfirmed news though... if true... could take the stock past the issue price very soon...!!
We will wait for some time to reenter the markets... at this point of time I would wait and watch my holdings grow even if the markets are rising...!!

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (15/02/2008)

Hi Friends
I hope all have enjoyed the 2 days of bull run after my recommendation to buy on tuesday late hours.. All those who would have bought Nifty on Tuesday late hours would have made 300+ points in it till today.. I recommended to few people buying a 5500 Call @ around 26-27 and also above around 35-36. Today the price was 53. I WOULD PREFER PEOPLE WHO HAVE POSITIONS TO BOOK PROFITS HERE BECAUSE I FEEL THAT WE MIGHT HAVE 1-2 SLUGGISH TRADING SESSIONS WITH A NEGATIVE BIAS. I DONT SEE A HUGE FALL FROM HERE, BUT THE LAST 2 DAYS VOLUMES ARE A SIGN OF WORRY FOR NEXT FEW DAYS. ALTHOUGH I AM QUITE BULLISH BEFORE THIS EXPIRY BUT STILL IN THIS MARKET WOULD PREFER BOOKING PROFITS AS AND WHEN THEY COME. BOOK OUT AND WAIT TILL MONDAY-TUESDAY FOR A CLEAR SIGNAL AND THEN WE WILL RE-ENTER, IF I SEE ANY REASON FOR REBUYING EARLIER THEN THAT, THEN WOULD INTIMATE THE SAME HERE AT THE EARLIEST. DELIVERY BASED INVESTMENTS CAN BE LEFT UNTOUCHED BECAUSE WE ARE NOT BOTHERED ABOUT THE SAME. BOOK PROFITS IN THE TRADING AND SHORT TERM CALLS.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (13/02/2008)

Hi Friends
I hope every body bought the recommended shares today in the late hours...(which was mentioned in the previous blog that to buy only on tuesday late trade, not before that). We might open gap up and it has to be seen wheather we sustain at higher levels or we see the selling pressure. As i have told before that there was some news of Foreign Funds entering the Indian markets in the 2nd week of Feb and we can see an upmove from there... (All these news have been shared in this blog, kindly refer the previous posts).
My Nifty target before this months expiry is 5500+ and thats the reason why I asked all to BUY NIFTY 5500 Calls...
The other delivery stocks willl rock in the coming days.. keep holding the same.
Dow is trading up 175 points when I am writin this article...

Happy Investing
Investomaniac
JAIDADIKI

JAIDADIKI


Following are the stocks/futures/options strategy for the coming days. (Buy on Tuesday late trade or Wednesday for delivery). Some of the stocks have already been recommended before and hence would like all to average them or make fresh buying in these stocks. Markets are looking positive from 14th Feb, 2008, However we wont wait till the 14th to BUY QUALITY STOCKS… We would do that 1-2 days before

1) ELGI EQUIPMENTS – Target 92+ Short Term
2) RATHI UDYOG – Target 50+ Short Term
3) HOUSE OF PEARLS FASHION LTD – Target 400 Medium Term
4) KOHINOOR BROADCASTING – Target 30+ Medium Term
5) RANBAXY LABORATORY – Target 500+ Medium Term
6) DEEPAK and NAGARJUNA FERTILIZERS are looking good for very short term (will participate heavily in the PRE-BUDGET RALLY)
7) TANLA SOLUTIONS – Target 800+ Short Term, Long Term Targets are HUGE.. 4 figures…
8) MARUTI – Target 900+ Short Term
9) SHRI LAKSHMI COTSYN LTD – Target 235+ Medium Term
10) EMMSONS INTERNATIONAL- Target 250+ Short Term, Long Term Targets are HUGE (it’s a very good long term investment for 1+ year view)
11) RELIANCE COMMUNICATIONS – Target 850+ Medium Term/Long Term

FUTURES/OPTIONS
1)BUY NIFTY FUT only on or after Tuesday for a target of 5500+
2)BUY THE UNDERMENTIONED OPTION TRADES (The third one NIFTY 6000 CE FEB 08, is a lottery ticket of Rs 1000, only for those who are in ample profit. Treat it as a LOSS. That’s why we call it a lottery ticket, either you loose the entire Rs 1000 or you get Rs 5000.)

Instrument
Type Expiry Type Strike High Low Prev Close Last Price
OPTIDX NIFTY 28-Feb-08 CE 5500 106 75 101.75 93.25
OPTIDX NIFTY 27-Mar-08 CE 6000 100 76 94.25 80.2
OPTIDX NIFTY 28-Feb-08 CE 6000 27 16 22.95 20.8


***
Please Note:- Its not possible to publish all the details of all the stocks mentioned here. Anybody who wants the details and the reasons why I am recommending the stock or any queries regarding the stock/options mentioned above can feel free to contact for the details @ nishantlakkar@gmail.com
Also, Dont buy the stocks in a hurry. Please wait till Tuesday late trade or wednesday before investing in these trades. For disclaimer please see the bottom of the page. Myself do not have any positions in the stocks mentioned above however we can enter these recommendations on the date mentioned.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (08/02/2008)

Hi Friends
As I have been telling you all from the past so many days and specially from last week, that markets are not looking good and one should stay away fot the time being.
Start Buying quality stocks and my recommended stocks (if u want to average or for fresh purchases) only from/after tuesday..My recent picks.. ELGI EQUIPMENTS. RATHI UDYOG have done exceptionally well even in these market conditions.
Will update about some stocks to BUY in the weekend. I had already told that markets would be good only from the 2nd week of feb when 2 big funds would be investing with large sum in Indian Markets... and time will tell wheather my news is correct or not.
Keep Watching Till Then... Refer to the latest announcements made by KOHINOOR BROADCASTING on BSE WEBSITE dated 6-7 Feb.. POSITIVE NEWS FROM THE COMPANY>>> Hence keep accumulating the stock.. It is consolidating @ 10.7 and 11.5 right now and can blast anytime.. Keep holding.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (05/02/2008)

Hi Friends
Markets were not able to cross the 5500 mark with good volumes. It tried couple of times before closing almost flat with modest gains. As said earlier that to confirm the BULL RUN Nifty has to cross 5600++ with good volumes and sustain there. US markets are down after an unexpected contraction in the service sector rekindled investors worry that the economy is headed for recession. At this point of time DOW is more then 200 points down. We can open gap down and 5380-5360 are important support levels, if broken then we can see fresh selling and it can take the index down to 5300-5250. Rathi Udyog recom last week hits the consecutive upper freeze. Keep holding the stock preferential allotment @ 51. Stock trading @ 32. Risk Averse investors can book some profits tomm. Nifty 5500 Call given @ 170 in jan last week.. asked all to book out today.. made an high of 243. We will wait for sometime before taking any fresh longs.

Happy Investing
Investomaniac
JAIDADIKI

Delivery BUY- Kotak Mahindra Bank

Kotak Mahindra Bank (Tgt 1300+ in LONG TERM) Very Safe Investment for one year with around 30-40% returns)
A financial powerhouse, with strong presence in almost all financial services the Bank will continue to be well-positioned to capitalise on ample opportunities in the Indian financial sector.
52-week High/Low
Rs 1436 / 302
Current Price
Rs 961 (as on 1st February 2008)
Kotak obtained its banking license in 2002. Today Kotak group has strong presnce in most of the financial services such as securities, investment banking, life insurance, asset management, mutual fund and banking, and it has become one of the leading players in capital markets in India.
Today, the group has a net worth of over Rs 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts.

Outstanding consolidated performance
For the quarter ended Dec '07 Kotak Mahindra Bank reported 88% growth in Interest income at Rs 992.32 crore with the interest on advances going up 78% to Rs 698.46 crore. Interest expenses increased 90% to Rs 506.03 crore restricting the growth of net interest income (NII) by 86% to Rs 486.29 crore. Other income 125% to Rs 1490.39 crore, this included fee income of Rs 527.47 crore. Operating profit increased 124% to Rs 651.75 crore despite 110% increase in operating expenses (including staff cost) at Rs 1324.93 crore. PAT before minority interest increased 116% to Rs 352.42 crore. Share of minority interest stood as profit at Rs 5.60 crore compared to Rs 4.57 crore. Also profits from associates stood at Rs 5.71 crore compared to Rs 2.11 crore. Finally, PAT grew 114% to Rs 363.73 crore. NII for the nine months ended Dec '07 increased by 73% to Rs 1195.67 crore. Net total income was up by 97% to Rs 4338.41crore with 108% increase in other income at Rs 3142.74 crore. However the operating expenses increased by 96% to Rs 3052.32 crore restricting the operating profit to grow by 100% to Rs 1286.09 crore. Provisions increased by 134% to Rs 222.12 crore and tax provision increased by 84% to Rs 346.12 crore. After accounting for minority interest and share of profits the Net profit increased by 104% to Rs 751.13 crore.

All its subsidiaries are doing well

Kotak Mahindra Prime – car finance, other lending
Auto advances up 32% to Rs 43 bn as on December 2007 from Rs 33 bn as on December 2006. Other advances were Rs 13 bn as on December 31, 2007. PAT was up 244% to Rs 373.7 mn in Q3FY08 from Rs 108.8 mn in Q3FY07.
Kotak's small lending business gives it some strong advantages: it can grow at a rapid pace despite slowing growth in the system. In addition, it can stay focused on high-margin businesses, which help to sustain its above-average net interest margins. This business is expected to increase significantly over time.

Kotak Investment Advisors Limited (KIAL) – alternate assets management
Effective October 1, 2007, the investment management of real estate and private equity funds of the group have been assigned to Kotak Investment Advisors Limited (erstwhile Kotak Mahindra Securities Limited), which is 100% beneficially owned by Bank. KIAL manages / advises private equity and realty funds aggregating to an AUM of Rs 38 bn. Currently raising a domestic private equity fund and second round of international realty fund.

International Subsidiaries
As on December 31, 2007, assets managed / advised by international subsidiaries were USD 3.5 bn (USD 1.4 bn as on December 31, 2007). This company was the lead manager to the Rs 2.2 bn Prime Focus FCCB issue.

Kotak Mahindra Capital Company – investment banking and primary dealer
Kotak Investment Banking for CY 2007 was ranked No. 1 by Bloomberg for (a) India Domestic IPOs, (b) India Domestic Equity Offerings (IPO, Additional Offerings and QIP) Kotak Investment Banking was Joint Global coordinator and Book Running Lead Manager to the Rs 39.7 bn GMR Infrastructure Ltd, Rs 16.2 bn Kotak Mahindra Bank Ltd, Rs 5.9 bn CESC Ltd and Global coordinator and Book Runner for the Rs 6.0 billion Godrej Industries Ltd Kotak Investment Banking was Book running Lead Manager to the following major Public issues Rs 17.7 bn Mundra Port & Special Economic Zone Ltd Rs 6.9 bn Edelweiss Capital Ltd, Rs 4.4 bn BGR Energy Systems Ltd, Rs 3.1 bn Jyothy Laboratories Ltd

Kotak Securities – stock broking
Kotak Securities (retail, online and institutional segments) clocked average daily volumes of over Rs 75 bn during Q3FY08 (Rs 40 bn during Q3FY07). Average daily volumes for FY07 were Rs 37 bn Kotak Securities accounted for 7.8% of total average daily market volumes in YTD FY08 AUM in Portfolio Management Services was Rs 46.2 bn as on December 2007 (Rs 21.3 bn as on December 2006)Kotak Institutional Equities growth momentum continues and we expect this momentum to be sustained. To this end, Kotak institutional equities is focused on client coverage, relationship and is investing in and recruiting quality professionals to help sustain this growth.

Kotak Securities has a network of over 867 offices (own & franchisees) across 309 cities and towns and services more than 390,000 secondary market customers Kotak Mahindra Asset Management Company and Trustee Company – asset management
Total AUM as on December 2007 was Rs 208.7 bn (Rs 126.9 bn as on December 2006).
Equity AUM as on December 2007 was Rs 43.6 bn (Rs 26.4 bn as on December 2006).
KMAMC has 71 branches and satellite offices servicing over 596,000 investors.
Kotak Indo World Infrastructure Fund NFO during Q3FY07 garnered Rs 9.6 bn.

Kotak Mahindra Old Mutual Life Insurance - life insurance
Kotak Life Insurance (KLI) premium income grew 96% to Rs 4178.8 mn in Q3FY08 from Rs 2,132.6 mn in Q3FY07. First year regular premium grew 98% to Rs 2,661.4 mn in Q3FY08 from Rs 1,34 3.9 mn in Q3FY08 Kotak Life has a network of 106 branches in 74 cities (65 branches as on 31st December 2006). As on December 31, 2007, KLI had over 443,700 individual policies on books representing a basic sum assured of ~ Rs 169 bn (excluding riders).
Additionally, Kotak Life had around 330 group policies covering over 677,400 lives with an aggregate sum assured of ~ Rs 224 bn.

Best investment bank play
Kotak's high exposure to capital markets is positive, and is a solid structural bull story in that space. India's demographic changes and strong growth should produce a surge in the addressable market for retail and wholesale capital market services and that this segment will experience strong growth. Kotak, with its market leadership in broking and capital markets, is one of the best listed plays on this theme.

India's savings rate has been rising consistently since 1999, and it is now at 29% vs 22% ten years ago. Rising household savings has been a key driver, expanding from 14% of GDP to 22% between 1986 and 2006. As a result, the total stock of household savings rose at a 12% CAGR over 1996–2006. The capital markets and investment services are natural beneficiaries of this trend. The Indian middle-class has traditionally favoured government-guarante ed fixed-income investments. As disposable incomes rise, particularly for younger people, those investments have started to lose their attractiveness vis-à-vis riskier equity-related investments.

Kotak is well geared to exploit that with a full suite of investment services: retail broking, mutual funds, life insurance, portfolio management and wealth management.

This gives Kotak a very strong advantage. Kotak's each product appeals to different segments of the market – a full suite helps Kotak retain customers. Moreover, the product-neutral wealth-management service provides the added advantage of being able to sell third-party mutual fund products, which ensures that the product providers and the marketing machine operate independently and can capture a larger part of customer flows.

Well placed to withstand competition
Kotak has a strong brand name and many strengths.

Branding: Although some of the new entrants are formidable brands, Kotak enjoys unique branding as a specialist investment house. This should continue to give it a headstart in the market, especially in the western region.

Incumbent advantage – reach and franchisees. : Kotak is already present in 60 cities, having rolled out its network. With real estate costs having risen sharply during the past few years, new players will have to fight to match Kotak's reach. In addition, Kotak's franchisee network has already been locked-in – new players may find that the best "target" franchisees are already gone. Even if they manage to lure some franchisees away from Kotak, that will take time and may succeed only to a limited extent.

Commercial banking licence: Kotak's commercial banking licence is a very strong differentiator. It allows the bank to seamlessly sell both assets and liabilities – linked financial products – and provides it with a natural reach and customer acquisition platform. Kotak is one of the few banks to have a strong suite of investment products. Most brokers do not have bank licences, and most banks do not have strong broking businesses.

Synergy across businesses: The other strong advantage for Kotak is its holding structure, which gives it a strong synergy across businesses. With almost all the businesses held as 100% subsidiaries, Kotak responds to a central command and control structure much better than in other similar conglomerates.

Valuation
In FY 2008, we expect Kotak to register EPS of Rs 28.5 In FY 2009, this EPS is likely to rise to Rs 38.8. The share price trades at Rs 961. While the P/E on FY 2008 EPS is 33.6, it falls to 25 on FY 2009 EPS.

Delivery Buy- Elgi Equipments

1)Elgi Equipments, market leader and Asia’s largest manufacturer of air compressor and automobile service station equipment, has reported very good performance for Q3 FY 2008. Consolidated Net Sales grew @ 24.8% to Rs.119.81 crore led by 24.9% growth in Compressor sales of Rs. 98.66 crore. Automotive business turnover grew @ 22.4% to Rs.19.02 crore. OPM% improved marginally to 11.1%. Consequently, PBT (before extraordinary items) rose by 30.7% to Rs.12.31 crore. Lower average tax rate
of 23.2% (28.6%) lifted PAT up by 41.7% to Rs. 9.45 crore.
2) For 9 months ending December 31, 2007, net sales were up by 31.5% to Rs 357.01 crore. OPM% improved to 12.1% (10.4%) due to operational efficiencies and more contribution from high margin compressor business. As a result, PBT (before extraordinary items) spurted up by 69.4% to Rs 43.61 crore. Further aided by lower average tax rate of 28.8% (31.4%) PAT jumped up by 77% to 31.06 crore.
3)ELGI's compressor finds application in industries ranging from mining, defence, transport, pharmaceuticals, power, oil, railways, chemicals, textiles, printing to ship building, paper, electronics, telecommunications, medical, food & beverages and plastics. To widen its sphere of product application & technology and offer complete air solution in oil free segment, it has tied-up with CompAir UK, one of world’s leading manufacturers of compressed air & gas systems. This agreement would not only expand the range but would also enhance exports. Vast opportunities in gas compressor sector offers huge growth potential and margin improvement for ELGI.
4)Company will be setting up an assembly unit in China. This is because Chinese compressor market is 4 times bigger than Indian market. Profitability is same as Indian market. Company will source raw material from local Chinese suppliers. This unit is expected to meaningful contribute from FY 2009.
5)To focus on core business, company undertook restructuring exercise by selling off its diesel engine business in FY 2007 and spun-off its Automotive Equipment business into 100% subsidiary – ATS Elgi Ltd w.e.f August 1, 2007. It has signed technical collaboration agreement with MAHA of Germany, premium workshop equipment manufacturing company. Under this agreement, company would be manufacturing high-end electronically synchronized two post lifts. These would be manufactured and sold
in Indian market under ATS ELGI - MAHA name and exported to other Asian countries as well. The project in underway and products will be rolled out in Q4 FY 2008. Company has tied up with Reliance Retail to provide total automotive solutions thru Reliance Mart (Car Service Workshop) which will set up 500 marts across India.
6)In FY 2007, company ventured into a new business – manufacturing engineering, which involves providing engineering services & manufacturing parts to customers worldwide. This business has achieved sales of Rs. 10 crore in first 9 months (Rs. 8 crore in FY 2007). As there is huge growth potential in this nascent business, company plans to invest Rs. 18 crore.

Stock has a target of Rs 100++ in 3 months time. (At this point of time do no BUY in big quantitiy, because we are nearing budget and the market movements are not confirmed we can go either way from here)

Market Review

Hi Friends
Rathi Udyog recommeded @ 28 hits 2 consecutive buying freeze.. Still worth a BUY.
Market as expected..opened strong.. and ended on a strong note. All those who had bought the 5500 Nifty call @ 170 on my recommendation.. can book out the profits tommorrow. All those who are holding the lottery ticket of NIFTY 6300 call @ 50 given in JAN for Feb series.. keep holding it (treat is as a lottery ticket as i said before).
The RPOWER refund have started and it will attract fresh buying from the investors after getting the refund. RPOWER is listing on 11th Feb, 2008.
I once again caution investors to stay away fully or stay in maximum cash till the BUDGET because we are at a very uncertain position and we can see a major move either side. Also I have some intresting data for all which proves that at current levels we are standing at very very important support/resistence levels for NIFTY and we need to cross it with heavy volumes and sustain to confirm the end of the BEARS.
The biggest Call OI is seen at 5,600 strikes (12.21 per cent of total
Call OI) and it will act as resistance. The 33.2 per cent of Put OI is
seen at 5,100 (17.94 per cent) and 5,000 (15.25 per cent) and hence it
will act as support levels
Today I am going to give some detailed reports aboput the few stocks which I have been covering recently and I feel that they are going to be the MULTIBAGGERS for MEDIUM?LONG TERM INVESTMENT.
The stocks are discused individually on this blog.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (04/02/2008)

Hi Friends
Markets are well poised at this stage for a trend reversal and hence we can well see Nifty levels of 5600-5650++ in this week. However we will have to wait for 5650 to cross and sustain there for sometime before we can confirm the end of BLOOD THIRSTY BEARS. As always, staying away till the budget is always the BEST BUY in these scenarios but for those whose risk appetite is a little higher can trade a bit but for very short term. There are few stocks which I am covering right now and i feel that they are going to be the HOT FAVOURITES in the coming days.
Rathi Udyog (CMP arnd 28)- Preferential allotment news @ 51
This could well be a PREBUDGET RALLY which we are expecting.. and any positive/negative news from the FINMIN can take the markets either ways..and by either ways I mean.. that it can move 1000+++ points up/down based on the markets sentiments related to the news. Hence CAREFULL..
Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (31/01/2008)

Hi Friends
A 50bps rate cut has not been able to encourage the investors to feel comfortable in the markets and DOW was down 37 points down 166 points from the days high.
I seriously beleive that this is the time to stay out of the markets and maximum in cash (by cash i mean.. cash in your bank accounts :-) )
Today we have the settlement, the FNO Expiry, and we can witness a lacklustre opening with a negative bias. Let us just wait for NIFTY to cross 5320 and trade above that before entering into any long positions.
As per my sources, 2-3 BIG FUNDS from USA are slated to start entering the Indian Markets from the second week of Feb. Till then we can see choppy trading.

Happy Investing
Investomaniac
JAIDADIKI

Kohinoor Broadcasting

Hi Friends
Kohinoor Broadcasting recom @ 10.70 on monday hits the buyers freeze with BUMPER VOLUMES yesterday. Its a long term multibagger and one should hold on to the investment and add small quantity on all declines (if any).
As far as the markets are concerned, the choppy session may continue for the week with some positive bias.
Happy Investing
Investomaniac
JAIDADIKI

Market Oulook 29/01/2008

Hi Friends
Today RBI will announce its credit policy. Please have a look at the following link from CNN-IBN.. You will have a rough idea about the expectations. These are very rigid times, and the markets can move either ways depending on the announement made by RBI. Hence I was telling all to stay away. Lets wait for the Fed Meet scheduled in the coming days for a trend to emerge clearly.

http://www.ibnlive.com/news/rbi-to-announce-credit-policy-today--credit-policy-poll/57598-7.html

Regards
Happy Investing
Investomaniac
JAIDADIKI

Kohinoor Broadcasting (BSE: 531366)

Hello Friends.

These are the few reasons why I consider KOHINOOR BROADCASTING to be a multibagger in future:-

The Consolidated Financial Results for the Q3FY08 (quarter ended 31st December, 2007) Vs Q3FY07:
Figures for corresponding last year

The Total Income: Rs.52.05 Cr (Rs.5.96 Cr)
PBDT: Rs.6.02 Cr (Rs.1.09 Cr)
Profit After Tax (PAT): Rs.5.46 Cr (Rs.76 lakhs)
Reserves and Surplus: Rs.17. 44 Cr (Rs.9.8 Cr)
EPS : Rs.6.21 (Rs.2.33)
For FY07, the results were:
Total Income; Rs.22.64 Cr
PBDT:Rs.4.16 Cr
Profit After Tax(PAT): Rs.1.33 Cr
EPS:Rs.2.22

Also,
1.The Company has received the equipment for Teleport to be set up at Rajpura involving a capital outlay of INR 50 Million.
2. The Company has placed the orders for play-out station to be set up at Rajpura involving a capital outlay of INR 100 Million.
3. The Company has started producing the buffer content for its forthcoming News and Entertainment Channel. The company is coming up with a Hindi News Channel Very soon
4. The Company is in the process of making large scale recruitments of manpower approx. 60 people for the production of content for its entertainment channel.
5. The Board has approved in-principal, the proposal of takeover of M/s Tagore Theatres Ltd (Valuing approximately INR 1000 Million), a multiplex, at a valuation to be conducted by the Company of international standing such as M/s Knight-Frank India Pvt Ltd, Chesterton Meghraj, Jones Lang Lasalle, Price water house Cooper or equivalent. The Board has authorized the committee of Directors to complete the transaction and to finalize the swap ratio for the proposed takeover.
6. The Board has approved the opening of subsidiary company in United Kingdom for Launch of TV channel in UK and adjoining areas.
7. Provision for retirement benefits has been estimated at Rs 0.250 million.
Also,
The company after the huge fall is trading well below its book value of Rs 15. We wont find any media companies trading below there book value now. And with the acquisition of a multiplex it has only one way to go... and that is UP. It is a LONG TERM MULTIBAGGER with so many positive things coming up for the company. With a 100 crore multiplex in the corner the script certainly does not deserves a price below its book value. My target for the company is in THREE FIGURES for LONG TERM and atleast Rs 30 in short term. (As of now the small/mid caps are underperforming and hence the script is also getting a beating.. But positive thing is that the stock is hitting on lower circuits on very very low volumes that means, that not many people are selling the stock, othwerwise there would be huge volumes in selling and it would have gone on selling circuit with very huge pending SELL ORDERS.. Thats not the case and hence the script can rise anytime (as soon as the midcap small cap carnage is over) and hence this script is BUY on all DECLINES and HOLD for atleast 3 months time (Short Term) and the LONG TERM TARGETS ARE HUGE.... (3 Figures as I said earlier).
Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (28/01/2008)

Hi Friends

As i told you all that these are times when one should stay away with the markets. Today a huge gap down opening.. (As of now 790 points down in the first 10 minutes of trade) giving up almost all the gains for friday. Consider those who have bought good positions on friday on a rise of 1100 points. All are in losses. Hence it is being time and again prooved that staying away from the markets until and unless a clear trend emerges (either upwards or downwards) we should hold on to whatever little positions we have been holding and just wait and watch.
There are few very announcements coming this week both globally and locally.. RBI Meet on CRR cut, Fed Meet for yet another rate cut and above all the F&O settlement for this month (which is very crucial).
I am not telling that we will go down from here. We might head upwards as well, but there is a lot of uncertainity at this point of time and hence I would recommend all the PLAY SAFE Investors to STAY AWAY 100% or at max BUY 25% of your cash.

Happy Investing
Investomaniac
JAIDADIKI

Caution Again..!!

Hi Friends

Sorry for not updating the blog for two days.
The reason for not updating was that there was not to much to write about. Because at the moment its very difficult to analyse the markets and I never believed in PREDICTING the stock markets. As I have already told you all to be in maximum cash at this point of time (till BUDGET) and dont buy in huge quantity also dont go for averaging (ie: dont buy the stock as you see that the stock price has gone down a lot and you start averaging at lower levels).
Our current holding (Compact Disc and Kohinoor Broadcasting also, BNK Capital and Madhav Marbles) are in deep red because the small cap and midcap index are heavily butchered and hence i recomended not to buy in Huge Qty. (u can check my previous messages). I ahve always maintained that we will use only 25% of our cash to BU till budget, and as soon as this MIDCAP carnage is over.. we will buy a similar quantity at lower levels , but for that to happen we might have to hold on for the time being.
The markets are now taking there on ques diregarding all the Asian and foreign markets for the time being. (Nothin New.. when were rising we never took any negative ques of our peers and the foreign markets, now we wont take the positive ques as well.)
Hence I again repeat what I have been telling you for a long time now.. That CAUTION IS THE BUZZ... Dont take excessive position in any stocks and stay maximum in cash till BUDGET.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 22/01/2008

Hi Friends
AS EXPECTED the markets finally Falled, and created a mayhem in dalal street. READ MY ARTICLE ON 28th Dec 2007 from then I HAVE BEEN CAUTIONING ALL TO REMAIN 75-80% IN CASH TILL THE BUDGET..
According to me the fall is not over yet and we could retest todays lows once again, however the markets looks goood for one week from thursday so people can start buying from wednesday (late hours). The next two days can be highly voltile and we might also stage a pull back rally.. but do remember history says that pull back rallies are never there for long. I am expecting some weakness to continue for tuesday and wednesday.. and it looks good for a weak after that. But till the budget i will advice all the short term investors to stay away..
LOOK AT OUR NIFTY 6150 PUT call... call given @ 125.. it made a high of 850. from 125 to 850.. YOOOOO
Book out the NIFTY PUTS if anybody is still holding it.
Thats the reason I repeatedly asked all to BUY in very small quantity (the delivery stocks are all intact... just dont average out now.. we can buy some qty from wednesday for short term--- BNK capital, Kohinoor Broadcasting, Madhav Marbles and CESC..Also compact Disc)....

I got so many messages and emails from my friends thanking me for making them EXIT the long positions.. and I am so happy that i saved so many from being butchered.
Hope all the boarders here paid heed to my advice.. and should have been sitting happily today when most of the investors almost got were horrified.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (21/01/2008)

Hi Friends
I would recommend all to stay away from the market as of now. Market can move either ways in the days to come.
Just hold on to some of the stocks that have been recomended. Compact Disc, BNK Capital, Kohinoor Broadcasting and Madhav Marbles.
Have an eye on CESC. The co is supposedly in talks to list its group company Spencers Retail in the markets as well as the Citigroup is buying in the counter.
Our Long ter target for the stock is 1400++ in Dec 2008.

Happy Investing
Investomaniac
JAIDADIKI

Market Review for the week

Hi Friends..
OUR LOTTERY TICKET TURNED OUT TO BE A REAL JACKPOT FOR US. Nifty 6150 PUT recomended @ 125 closed today @ 475 giving us 4 times returns in a span of 1 week. I advice people to BOOK OUT with 4 time profits. As expected markets tanked down and could not take support of 5830 and closed around 5700 on a very weak note. We might see a pullback rally in the coming week on some good numbers expected from IndiaInc and some good announcements on the foregin front. Based on the fundamentals we can tank more and if true valuations are to be bought into exostence then it has to touch 5200-5250 but that is the worst cast scenario and I dont think we will tank that much howvever 5550 looks like a possiblilty. COMPACT DISC was in upper freeze the entire day but in the last hour sell off it closed down 4% and kohinoor broadcasting also closed down around 4%. There is not to worry much about it because we have already earned around 16k in our Nifty PUT even if somebody had bought 1 single lot. And we are amply sitting in cash to buy shares like BNK capital, kohinoor broadcasting, Zee Tele, and some others. Thats the reason i asked all to buy in very small quantity. So guys.. Have a nice weekend... Hope you all enjoyed my calls..

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 18/01/2008

Hi Friends
Compact Disc hits yet another upper freeze.. Recomended to all @ 103 now 125. More to come. Kohinoor Broadcasting is a good buy. Repeatedly telling all to BUY in small quantity. Markets ended on a weak note and I think we should now stop thinking too much about the markets because we have been telling you all to stay away from the markets for some time and be in max cash. OUR 6150 PUT is doing wonders and as the markets may fall some more due to global weakness we can expect a price of 400 on the Hedge position... As of now I wont give too many investment advice Just concentrate on two stocks as of now. Compact Disc which is already giving us 20% in a weeks time and Kohinoor Broadcasting... it can start moving once the markets finds a trend.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 17/01/2008

Hi Friends.
As expected we opened gap down and were almost swiped away by the bear flow before some short covering took place. We have been telling you to be in cash from the 1st week of January and I hope all those people who had long positions would have understood why I was telling so... markets have taken a beating in the last 2 days and the longs would have meant huge losses. OUR NIFTY 6150 PUT (Hedging call) was given @ 125 last week.. made a high of 362 today. It had almost tripled.. What else do u want in a week that too on a Hedged Position??... It was a BUMPER call.. Kohinoor Broadcasting hit the upper freeze again before cooling down a bit in the late trading. Compact Disc hits another upper freeze. BNK Capital and Kohinoor Broadcasting are stocks to watch out for in the coming days. ALthough I still maintain that dont buy in huge qty and dont invest more then 50% of ur capital till budget. Markets are expected to remain highly volatile, we might see some recovery for a day or two but overall I feel some more pain is left in the markets and this can continue till the RPOWER is listed. You can see how the RPACKS are controlling the markets right now, till the RPOWER IPO was oversubscribed the market was for bulls, suddenly after the oversubscription the markets started tanking and it tanked below 5860 support level today but recovered later. We might see another round off sell off in the coming days... So we can be moderately be cautious.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 16/01/2008

Hi Friends....
Almost all our recomendations were on fire today itself...COMPACT Disc hits the upper freeze.. BNK Capital was trading very well throughout the day.. and made a high of 108.. Stock is to be watched out... short term tgt is 180++. Madhav Marbles remained steady.... after an initial jump.. Kohinoor Broadcasting hits the upper freeze before cooling down in the last hour selloff witnessed by the markets...
All others are good hold for short term.. as i had said before invest with stop loss because the markets can change directions anytime....WE HAD RECOMMENDED A HEDGING POSITION of NIFTY 6150 PUT @ 125-135.. today it closed @ 215.... More can come... Citigroup came out with worst pair of results since its inception... Dow is down more then 200 points when I am writing this article.. Expect a gap down in our markets as well...I have been cautioning everybody about the fall from the past 15 days.. Its always good to invest only a part of your capital in volatile markets.
Kohinoor Broadcasting has approved the acquisition of Tagore Theaters Ltd which is valued around 100 crores. So u can buy in small quantity on all declines and keep holding for handsome returns in 3 months time. Due to Volatile and weak market conditions wont give any other pick today.. Do track all the open investments ideas.. and watchout Nifty for your 6150 Put. If Nifty breaks 6000 then there are chances of it seeing 5850-5890 in that case our NIFTY 6150 PUT price can triple... So enjoy and hope for a FALL>>>>>>>>

Happy Investing
Investomaniac
JAIDADIKI
contact- nishantlakkar@gmail.com with subject Query/suggestion/feedback

Market Outlook 15/01/2007

As expected the market was highly volatile and the mid/small cap stocks started showing signs of buying. Today I would recommend a few stocks which are looking good to me for short term. (Buy according to your personal risk taking capacity).
1) Zee Telefilms- looks all set to give 30-40 rs in very short term. Very good results are expected on 23rd
2) Kohinoor Broadcast Corporation (BSE: 531366) CMP 15.60. tgt is 30Rs in 90 days time frame.
**Kohinoor Broadcasting Corporation Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 12, 2007, inter alia, has taken the following decisions:
1. The Board has approved the Placing Agreement, Deposit Agreement
and the Escrow Account Agreement in respect of the GDR issue.
2. The Board has approved the offering circular filed at Luxembourg
Stock Exchanges.
3. The board has approved the allotment of 75,000,000 equity shares
of Rs 10 with underlying 7,500,000 GDR's issued in the name of
Depository (Deutsche Bank Trust Company Americas) and issuance of
Share certificate thereof.
**Kohinoor Broadcasting Corporation Ltd has informed BSE that the
Board of Directors of the Company at its meeting held on January 07,
2008, has taken the following decisions:
1. The Board has approved in-principal, the proposal of takeover of
M/s. Tagore Theatres Ltd (Valuing approximately INR 1000 Million), a
multiplex, at a valuation to be conducted by the Company of
international standing such as M/s. Knight-Frank India Pvt Ltd,
Chesterton Meghraj, Jones Lang Lasalle, Price water house Cooper or
equivalent. The Board has authorized the committee of Directors to
complete the transaction and to finalize the swap ratio for the
proposed takeover.
2. The Board has approved the opening of subsidiary Company in
United Kingdom for Launch of TV channel in UK and adjoining areas.
3. The Board has taken note of the receipt of the equipment for
Teleport to be set up at Rajpura involving a capital outlay of INR
50 Million.
4. The Board took note of the orders placed for play-out station to
be set up at Rajpura involving a capital outlay of INR 100 Million.
5. The Board took note of the progress of production of the buffer
content for its forthcoming News and Entertainment Channel.
This stock is one of the multibaggers in the making, however due to the pressure in the small caps it has been on lower circuits for the past 3 days. We can se another 2-3 lower circuits (5%)in this stock which by any means is a good chance to buy. But the targets are intact. So dont rush and BUY this stock, wait for it to get out of the lower circuit syndrome, and the day it does, just BUY.
3) Elgi Equipments (BSE: 522074)- CMP 79 tgt Rs 100 in short term (30 days maximum)
4) Bihar Caustic and Chemicals (BSE: 500057) -CMP Rs 88.30 Tgt 135++
TIME FRAME 90 Days maximum (Its a caustic soda demand supply story- same as Indo Borax which was recommended 2 months before)
Market Cap : Rs 200 cr Industry : Chemicals
TTM EPS : Rs 17 P/E Ratio : 4.9x
Pmt Stake : 56 % Dividend : 15 %
52W H/L : Rs 105/42 Book Value : Rs 63
5) Madhav Marbles and Granites (BSE: 515093)- CMP 93.75 (HIGH TO VERY HIGH RISKY CALL.. Its an operator driven stock and some news is coming from the operators that the stock can hit the 125 mark very soon. If anyone wants to buy, BUY with a STRICT STOP LOSS OF 85, PLAY SAFE INVESTORS PLEASE AVOID TRADING OR INVESTING IN THIS STOCK)

My previous recommendations like BNK CAPITAL, INDO Borax, are at buying levels right now. Those who had booked profits earlier can reenter with a 90day or long term view.
Please do not buy in very high qty because of the market volatility. Normally i dont give any stop loss for my investment advice becuase whatever the market codition is, almost 95% the targets are achived within 90 days. However at this point of time I would advice investors to keep stop loss according to their risk bearing appetite. Anybody who has a short tem view please keep the stop loss.
Compact Disc is moving in the same zone when recommended 2 days back. Its a good HOLD with a stop loss of 88 for the very short term investors. Tgt is intact 200++
Do remember, all my calls are DELIVERY (Investment Ideas for a maximum of 90 day period, the calls are not meant for intraday trading. However they have never taken 90 days to achieve the targets but still we will follow the 90 day rule)so please trade accordingly.

Happy Investing
Investomaniac
JAIDADIKI
contact @ nishantlakkar@gmail.com

Market Outlook (14/01/2008)

Hi Friends
The markets are neglecting all the weak cues and moving very volatile. The volatility is expected to continue for this week as well and would suggest investors to avoid day trading and swing trading for some time and wait for the right time to enter the markets. As far as the mid cap/small caps are concerned I beleive that the profit booking phase in some of the counters should be over and we can enter some good quality stocks in the days to come. I have a list of stocks which I feel would be multibaggers in days to come and we have a great opportunity to take them into our portfolio in this profit booking phase. I wont recommned those stocks right now because of the huge volatility the stocks like all other mid cap and small caps could well go for a lower circuit due to profit booking and a fear amidst investors about a BIG FALL in the markets. As of now all our recommendations have been SUPER HIT and all were Investment Calls. The call given on COMPACT DISC last week remains a BUY at every decline ( AS I HAD ALREADY MENTIONED IN THE BLOG THAT PLEASE BUY IN SMALL QTY DUE TO VOLATILE MARKET CONDITION). I got many queries regarding the stock and hence I am refraining my self from giving some other Investment based ideas for the time being because there are very high possibilities that the stock might go down for the coming few days because of the mid cap and small cap index lossing some steam due to profit booking. hencforth I advice everybody not to indulge into fresh buying at this point of time. I have in my mind a few stocks which I feel can start moving up in a very short period from now but would wait for some time for the market to stablize and then recommend it to all here.
This was the week where apart from the BANKEX all other sectorial indices lost by more then 2% BUT STILL the sensex closed 140 points above the previous weeks close of 20686.89. Almost all the world indices were down more then 2% but Sensex was up by 0.67% for the week ended. This confirms that there are few stocks which are moving the index right now (R-PACKS basically) and they are even when the world indices are closing in red we are able to recover. These are few things which worries me as an analyst as well as an investor. The Nifty might make new highs again on the built in euphoria about the DEVELOPING MARKETS, ECONOMIC POWERHOUSE etc etc but still we would advice a CAUTIOS approach and PLAY SAFE.
According to me nobody is really paying any attention towards business fundamentals, valuations (which I feel are over streched) and looking TOO FAR ahead projecting income estimates of FY09-FY10 and even FY 2011. I see companies trading at 70-80 times there forward earnings which I am not comfortable with and feel that these projections of forward earning estimates would come down heavily when the markets realise this and that day we could be taken for surprise ride.
MARK MY WORDS-- THE MID CAP/SMALL CAP STOCKS WHICH HAS TAKEN A BEATING IN THE LAST WEEK WOULD SOON SEE RECOVERY AND WE WILL GIVE YOU SOME STOCKS FOR DELIVERY IN THAT PERIOD. (AS OF NOW WE WOULD AVOID BECAUSE IF THE STOCK GOES DOWN FOR A DAY OR TWO SMALL INVESTORS DO GET JITTERY AND START PANICING)
HAVE AN EYE ON RELIANCE INDUSTRIES... RESULTS COMING SOON...
TODAY (14/08/2007) THE MARKETS WILL OPEN WITH A NEGATIVE GAP AND WE WILL SEE SOME BUYING COMING AT LOWER LEVEL--

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (11th Jan 2008)

Hi Friends
As we have been cautioning you from the past 10 days now, the wait finally paid some dividends. I specifically mentioned last week to be cautious particularly in the last 2 days of this week.. and here it comes.. I still believe more is to come and slower it comes the better...The markets ended deep in red after an extremely volatile session. The opening was strong but by the end of the day Sensex was down nearly 600 points from the day's high. Nifty was down nearly 200 points from the day's high. Our call to buy NIFTY 6150 PUT @ 145 was trading arnd 189 at the end. COMPAC INDIA recomended early morning started its buying freeze from today itself. The company has a lot of postive announcements coming backed by strong quarterly numbers. Keep adding the stock 150++ in very short term Long term tgt 250++.
Coming back to the markets, Infosys will rule the markets tomm and its very difficult to predict the markets on a day like this. We are sitting in cash and at the moment would advice boarders to invest 5-10% of their capital in COMPAC India.. for very good returns in short term.
Few other mid cap stocks which are looking good to me at this point of time are ELGI Equipments and Mazda. Keep a watch on these stocks. I would recommend that do not go ahead and invest full fledged in this market... at any cost not more then 25% of ur capital should be invested.

Happy Investing
Investomaniac
JAIDADIKI

DELIVERY PICK- COMPACT DISC India Ltd.

COMPACT DISC India Ltd.BSE CODE - 526141 (10/- Face Value) CMP - 104 TARGET 250++.
Buy in small quantity as of now because of the market fluctuations.
The company reported quarterly sales of Rs. 30.11 crores and net profit of Rs. 6.03 crores. On an equity capital of Rs.9.57 crores, the quarterly EPS is Rs. 6.29 (Rs.25.16 annualised). The NPM has been maintained at 20%. The company is into production of animation films, game development and motion pictures. The product range covers all the segments of entertainment i.e. big screen (theatres), small screen (home videos & television) and personal screen (personal computers).
Animation Outsourcing is the buzz of the day... The company has also 1. Considered and approved to issue convertible warrants on preferential / open offer basis to the promoters and select group of companies owned by the promoters. 2. Considered and approved to issue equity shares and convertible warrants on preferential / open offer basis to Samara Capital Partners Fund I Ltd. a Mauritius based fund.The full report on the company i will publish later.... Till then we can buy...

Market Outlook (10/01/2008)

Hi Friends
As I have been telling you for the past few days now, I think the remaining 2 days will be the decider. I think we should not be buying anything in the coming 3-5 days...Wont type much here... because I have already expressed my bearish views so many times. The 2 remaining days are to watch out for..... I have come up with a investment pick which I would not share at this moment. Let the market settle down a bit in the mean time if i feel that the pick can be accumulated even in this market I would post the views on the same. BE CAUTIOUS>>>>>>>

Happy Investing
Investomaniac
JAIDADIKI

Market Review

Hi friends
The markets are not taking any global cues at the moment and are standing on their own. Amidst very high volatility the markets finally closed almost flat (Sensex down 3.55 points and Nifty down 15 points). There is profit booking at higher levels and buying is witnessed at lower levels. Traders are being trapped from both sides because stop loss is being hit for both the longs and the shorts due to higher volatility. As we have already adviced caution to all the boarders from the past 10 days now and would like them to do the same for the remainder of the week. We are totally bearish in the markets and we continue to back our stand of staying away from the time being. The markets are mainly run by the Relaince Pack-- ADAG vs Mukesh, market is enjoying at the moment but my view is that its not going to sustain for long and any bad news from political front and the longs will be butchered.

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 09/01/2008

Hi Friends
As I have been cautioning you all from the past 10 days now, and have been telling that a fall is inevitable, yesterday dow closed below its supports level and was 238 points down due to housing woes and AT&T. We are expected to open gap down again today but we have to watch out wheather we are able to recover today as well or not. If u check my previous blogs i have been mentioning it time and again that this week we might see a fall in this week wed/thur/friday... I expect the 2nd half to be a bit more watchfull because the FIIs activity will start after 12:30.
Its always good to be in cash in a market scenario like this and we are happy that we are in cash (and have been advising the same as well).
Let this week pass out.. We have already taken a NIFTY 6150 PUT.. if the market falls then it would do wonders.. REMEM LOTTERY TICKET??????...

Happy Investing
Investomaniac
JAIDADIKI

Market Outlook 08/01/2008

Hi Friends
Yesterday our markets shown the strength , though the US markets are literally sold off on friday and the Asian markets were down on monday we stood out and shown the world our strength, FIIs are net sellers yesterday , but domestic funds are in buying side. This is still a cause of concern because history says that whenever there is higher participation from the retail investors the markets surprises them. Although the fall is inevitable as i have been telling but there seems to be enough retail participation in the markets backed by the domestic institutions that is pulling our markets up. Hence we might climb to newer highs before heading down. Our markets can make new highs today and can continue upwards, but do remem that markets have the habbit of surprising investors, (When all the brokerages were caution last week and asked their clients to sell we went upwards, this week the mood has suddenly changed and all brokerage houses are recommending BUY.. so CAUTION again is the buzzword) Fed Chairman is coming up with a statement on thursday regarding the Fed Rate cut, which will give a cue wheather there will be any further cut in the interest rates to stable the crunch in US markets after the subprime setback. There are also few data announcements on the cards in US which will also give us an indication where our markets are heading.
As of now, keep a close watch on remainder of the week and since I recieved a lot of messages from some impatient boarders out here that we are not trading/investing anything for the past 2 weeks.. So i thought that since we have already hedged our position with a NIFTY 6150 PUT (LOTTERY TICKET), we will go cautious and trade very lightly with a very short term perspective, if we earn good profits intraday then also we will book out because we never know, THE BEARS CAN KNOCK OUR DOORS ANYTIME...
FOR TODAY WATCHOUT SIEMENS ABOVE 2026, LOKESH MACHINE CMP 159, ICICI BANK CMP 1364 and another stock which I feel can rock if the markets are positive is BILPOWER cmp 352. PLEASE KEEP BOOKING PROFITS IF YOU GET DECENT RETURNS AND TRADE WITH STRICT STOP LOSS and TRADE ONLY IF THE MARKETS ARE POSITIVE.
Happy Investing
Investomaniac
JAIDADIKI

Market Outlook (7th Jan, 2008)

Hi Friends
As advised earlier, caution is the order of the day. We would open gap down on back of weak global cues (bad payroll data in US). Our long term pick KSERA SERA is already doing wonders giving more then 50% returns in just a months time. At this point of time I would not advice any fresh trade but for all those who are in good profits and are willing to buy a lottery ticket of Rs 7500 (means either it will double or u loose). I would prefer them to buy a NIFTY 6150 PUT @ arnd 150-155 or below... there is no target for this call because the price can go anywhere if the market falls heavily (which i am expecting). I am expecting a fall of atleast 1000 points in this week (probably arnd thursday/friday)due to various reasons:- 1) Weak Global cues 2)considerable amount of shorts build up particularly in the last 2 days of trade 3) Nifty Futures have been trading in discount for almost the entire month sending weak signals 4)backed by some sources in mumbai who have booked profits on friday for themselves as well as their clients. 4)The expectation of a fall is there from the past one week.. (it is not sumthing new or sudden which has come to my mind)..
Hence for all these reasons and some other which cannot be deliberated here I am 80-85% sure of the above statement and henceforth I gave a NIFTY 6150 PUT BUY CALL to all those who are in considerable amount of profits... (treat it like a lottery)

Happy Investing
Investomaniac
JAI DADI KI

Queries/Feedback/Suggestions

Hi Friends.
Please feel free to contact me on nishantlakkar@gmail.com for any queries/feedback/suggestions that u might have. Keep the subject as query/feedback/suggestions as appropriate for my convinience.

Happy Investing
Investomaniac
JAI DADI KI

Reliance Power IPO-- Few Important Points

Anil ambani - chairman of Reliance Power spoke to media about the future plans of this Company
Some of the main points he highlighted are :

1. Rs 20 discount to retail investors .
2. 30 % of issue reserved for small investors
3. No pre ipo placement .
4. First plant to start generation from 2009 onwards
5. Venturing into windpower in karnataka for 250 MW
6. Plans to enter Nuclear power in future , already have 100 engineeres for that venture.
7. Anil ambani refused comments on dispute with RIL on Gas pricing issue
8. Anil amabani is much bullish about rel power and rel energy as a whole
9. Power equipment manufacturing thru a new company independent of Rel energy and r-power ( its a bit -ive news for rel energy shareholders )
10 . R-power plans to have assets of 28000 MW in future .

KSERA SERA

Hi Friends
Our long term pick KSERA SERA initially recomended @ 30 and then again recomended @ 38 is on continous upper freeze. Right now upper freeze @49.80. Even if somebody bought @ 38 still we are gaining around 33% in 10 days... long term targets are intact @ THREE FIGURES.....
As far as the markets are concerned.. I maintain my stand of correction.. the fall is inevitable.. it might be delayed (possibly due to the Relaince Power IPO) but it cannot be avoided.. Once again I say.. hold very light positions..
Happy Investing
Investomaniac
JAI DADI KI

Market Outlook (03/01/2008)

Hi Friends
Dow is down over 165 points whn i am writing this and as I have been warning everyone since the past 1 week.. today it showed that some weakness is prevailing and the fall is nearby.. it can be extended for a few days but its certainly not gone....The recovery today was seen due to short covering and since almost all the brokerages came out with a SELL and CAUTION call today... the market recovered..Markets are not the puppets of anybody.. they are certainly not going to dance to the tunes of the brokerage firms reports and analyst views.. it has never done so nor it will do in future. The market moves up & down surprising atleast more then 75% of investors/traders, but today almost everybody in the stock markets came up with a sell/caution call hence the market reacted the other way and recovered... Henceforth i see that immediately we might not fall as big as it is expected.. but it would be by surprise.. I am getting some news that FIIs will be selling in bulk from the next week (wednesday onwards).. may be till then we can see few points up/down or may be new highs.... BUT MY ADVICE WOULD STILL BE THE SAME>>> CAUTION CAUTION...
Our long term call on KSERA SERA is continously hitting upper circuits even in this market.. Njoy...
Happy Investing
Investomaniac
JAIDADIKI

Markets Today

Hi Friends
As said earlier.. we would prefer sitting in cash rather then investing or trading in this sort of market. Today the sensex falls 250+ points and now recovering... This recovery might be due to some short covering.. But I am still bearish.. We should wait for some more time in order to make fresh buys.
In the mean time if I find anything to buy at currect levels..will inform u all.
Happy Investing
Investomaniac
JAI DADI KI

Cooling Off Period...

Hi Friends...
A very very happy new year to all the readers..
This is the cooling off period for all of us (The Investors).. and we will just sit with cash and wait for the right time to enter the markets.

Happy Investing
Investomaniac
JAI DADI KI

Happy New Year 2008!!!!!..

A very happy and prosperous new year to all the readers. The sensex gave 47% returns in the year 2007.. May we get the same in 2008..... God Bless All...

HAPPY NEW YEAR 2008---NJOYYYYYYYYYYYYYYYYYYYYY

Happy Investing
Investomaniac
JAI DADI KI