Value stock picks

When the times are tough the good gets the same treatment as the bad and worse. Sensible people fail to distinguish between great opportunities and bad investments.
The sentiment in the stock market is a curious thing. It colors all the stocks with the same hue when the sentiment is negative and on a positive run even penny stocks look like value buys.

The global meltdown, both on the domestic front and globally, has led to a sharp decline in stock prices across the board in the last one year. Many stocks are quoting below their book values. Book value of a stock reflects the intrinsic value of the company and the stock. Many such stocks offer a great investment opportunity. Good companies are capable of delivering consistent performance even under tough conditions. Such value stocks will be the first to bounce back when the stock market sentiment improves.

Here are some of the value picks in the Indian Stock Market in the current scenario:

Bartronics BEML, Gateway Distriparks, IVRCLSimplex Infra, Tanlas Solutions, Tata Chemicals

Some other stocks which make a good buy at their current prices include Amtek India, Bharati Shipyard, EMCO, ICSA (India), Mah Lifespace, Mcleod Russel, MIC Electronics, Nagarjuna Cons. , Patel Engg., PTC India, Rolta India, Sanghvi Movers, Sasken Comm.

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Value stock picks>>>>>>>>

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5 Signs of Stock Market Bottom

Since the beginning of the bear market since late 2007, the BSE index SENSEX has been falling with small breathers of trading in a range sometimes and still smaller bump up which did not sustain. Most mini rallies the stock market has witnessed have quickly dissipated in the face of bear hammering.

In the last couple of trading sessions the Indian stock market is yet again making another attempt at a rally. This rally has come at the back of remarks from bank CEOs and economic data that has led investors to believe they'd gotten too pessimistic.

The BSE is following global cues as the Dow Jones industrial average rallied for four straight days from nearly 12-year lows, and gained 597 points, or 9 percent — its best week since November. That followed a two-and-a-half month drop in the Dow of nearly 25 percent

According to Tobias Levkovich, chief U.S. equity strategist for Citigroup "People have been worried that we're heading into this abyss ‘but’ there are signs that that's not the case, and there is some floor somewhere — that we may have overreacted."

The question top most on the mind of stock market investors is that if the worst really over?

There's no formula to find out if this latest rally will sustain. But market analysts are watching closely for signs that the worst might be behind us, and they say some good signs are starting to pop up.

"There are little subtle things that have happened that are good — good enough to see that market is trying to establish a near-term bottom," said John Kosar, market technician and president of Asbury Research in Chicago. "But it's way, way, way too premature to try to make an argument that this is 'The Bottom.' "

So what are the signs a prudent investor would look for to find out if the stock markets have bottomed out and what would indicate that there might be more down side yet?

FIVE SIGNS INDICATING THAT STOCK MARKET MAY HAVE BOTTOMED OUT:click here

FIVE SIGNS THAT THE STOCK MARKET BOTTOM IS YET TO BE MADE:click here


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Sector and Stock Picks- Agriculture

In India more than 65 per cent or 13.5 crore households live in rural areas. A large population also means a lot of opportunities for companies serving the needs of these individuals. India has a lot of untapped business opportunities in the vast rural domain. For instance, the Indian wireless business has grown the fastest in the world, thanks partly to low penetration levels in the country. Even after many years of high growth, the mobile penetration is still low at less than10 per cent in rural India, thus reflecting the untapped potential.

Over the last one decade (FY 1998-2008), India’s per capita income has more than doubled from $418 to over $1,000. On an average, the per capita income in rural India has grown by 4 per cent annually—or by 50 per cent in ten years. Among key reasons for the latter are the rising commodity prices (Minimum Support Price; MSP for crops), better resource utilization, improving productivity and higher production.

Which are the companies which will directly benefit from the prosperity in the rural sector? Read more to learn about stocks and companies which will grow with rural economic growth.Stocks discussed-Bharti Airtel, State Bank of India, Rallis, Jain Irrigation, Chambal Ferilizer, Hero Honda, Hindustan Unilever.

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Value stock picks of the week

The Indian stock market is following the global trend and is down in the dumps. Stock market investors are too afraid to invest their hard earned money at the current levels amidst the global financial turmoil.

According to the tried and tested wisdom of stock market history such times offer great opportunities to long term investors. Many stocks of fundamentally sound companies are trading at attractive values. These stock picks make a great value buy at current levels.

The stock market is throwing up many value buying opportunities for long term stock investors. We regularly update you on stock picks where you can begin investing your money in small amounts. There is no guarantee that the stock market will not test its bottom again and you might find even cheaper valuations for these stocks. No one can predict and time the stock market bottom and these are a once in life time stock investing opportunities

Some of the stocks discussed are Hind Lever, Tata Power, Bharat Electronics, Allcargo Global, amongst other stocks.

To read the detailed analysis>>>>> click here

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Stock Market Notices and announcements

NSE notices 6 November, 2008

Bharat Forge Bharat Forge Ltd has informed the Exchange that the Company is proposing to enter into a Joint Venture Agreement with one of the Europe-based companies of Alstom Group on Monday, the 10th November, 2008, at New Delhi. The proposed joint venture project shall be subject to receipt of applicable government and regulatory approvals. The details of the Joint Venture Agreement will be announced after the event Source: NSE Date: 06th-NOV-2008 Tata Motors Tata Motors Limited has informed the Exchange vide its letter dated November 06, 2008 that “This is in respect to the comments appearing in the reports in today’s newspapers on Tata Motors to shut the Company’s plant in Jamshedpur for three days. We would like to inform you that the Company in its course of operation, adjusts its production to meet the demand for its products like working on single shift basis or three shift basis instead of normal/double shift operations as also temporary shut down. The three days shut down at Jamshedpur is also one of such measures taken by the Company to avoid unnecessary inventory build up. This is to clarify that above is not a lock out/strike/closure”. BSE notices 6 November, 2008 Shree Narmada Aluminium Industries Ltd Shree Narmada Aluminium Industries Ltd has informed BSE about the unaudited financial results for the Quarter ended Sep 30, 2008 Source: BSE Date:6 November, 2008 Balaji Hotel and Enterprise Balaji Hotels & Enterprises Ltd has informed BSE about the unaudited financial results for the Quarter ended Sep 30, 2008. Source: BSE Date:6 November, 2008 Balaji Industrial Corporation Balaji Industrial Corporation Ltd has informed BSE about the unaudited financial results for the Quarter ended Sep 30, 2008. Source: BSE Date:6 November, 2008 Source: NSE Date: 06th-NOV-2008 Read all the NSE, BSE Notices and Announcements and stock market news at Stockinvest.in

Stanchart rates Ultratech as performer

Stock market analysis and stock picks from Stockinvest.in

Ultratech Cement has been trading at a P/E of 5.0 times and 5.8 times its FY09E and FY10E EPS at Rs 74.4 per share and 65.1 per share respectively. However, on an EV/Tonne basis Ultratech Cement has been trading at an EV/Tonne of $68.9, which is at a discount to its replacement cost. Considering the current macro economic factors which whereby the demand is expected to slowdown to 7-8 per cent compared to 9-10 per cent in the past 2 years coupled with commissioning of major green field capacities by the industry player over the next 6 - 9 months we expect cement prices to remain subdued.

Read the complete analysis and more hot stock picks from stockinvest.in

List of promoters buying their own stock

Stock market investors must take a look at those stocks where the promoters are increasing their stake by buying shares in the present stock market down turn. Here is a list of companies where promoters have increased their equity holding recently

Indian stock markets have been in a continuous slide since the beginning of 2008. This has left most retail and institutional investors in jitters. Stock market investors do not seem to have the nerve any longer to invest in stocks.

Stock valuations in certain sectors and companies have become really mouth watering. The promoters of Indian companies have used the recent downswing in stock prices as an opportunity to buy shares of their companies cheaply to enhance their holdings in the company. The stock prices of many companies are ruling at a value of less than one-fourth of their peak in January.

The shareholding pattern for the quarter ending September 2008 shows that in several companies, promoters have raised their stakes substantially. Even though it is hard to find big names, several promoters of mid and small-cap companies have hiked their stakes ranging from 1-20% during the September quarter compared with the previous quarter.

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Hot Stock Picks from Stockinvest.in

Hot Stock Picks from Stockinvest.in

Stock: HDFC Bank

Price Target: Rs 1087

Brokerage: Motilal Oswal Securities

Motilal Oswal Securities has recommend 'buy' on HDFC Bank stock for a target price at Rs 1,087. Motilal expects earnings CAGR of 32 per cent over FY08-10 on 23 per cent CAGR in assets (combining HDFC Bank with CBoP from FY08 itself). The stock trades at 3.1 times FY09E and 2.3 times FY10E BV, and 20.7 times FY09E and 16.5 times FY10E EPS.

Motilal expects RoA to remain high at 1.3-1.4 per cent, with RoE at over 16 per cent in FY10 and 18 per cent in FY11. Motilal estimates BV at Rs 347 per share for FY09 and at Rs 465 per share for FY10. The brokerage expects EPS to be Rs 53 in FY09 and Rs 66 in FY10.

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Edelweiss maintains a buy on Orbit Corp

Stock picks and hot stock market investing ideas from stockinvest.in

Orbit Corporation

Current market price: Rs 90.10

Brokerage: Edelweiss Securities

Orbit Corporation (Orbit) reported revenues of Rs 73.8 crore, down 9.8 per cent q-o-q and 24.3 per cent y-o-y, for Q2 FY09. The sequential decline was due to lower completion percentage at Orbit WTC and Orbit Eternia. Net profit for the quarter stood at Rs 13.7 crore, as against Rs 39.9 crore in Q2 FY08 and Rs 18.2 crore in Q1 FY09, a decline of 65.6 per cent and 24.8 per cent, respectively.

Three of Orbit’s projects are nearing completion and the company expects Rs 160 crore from customers of these projects by the end of CY08. This amount will be sufficient to fund its construction cost of Rs 100 crore for the year. Further, the company has six projects under construction aggregating 1.06 million square feet of saleable area.

These projects are highly monetisable, albeit at a right price and part sale at few of these projects can generate enough funds for the company to service its debt of Rs 180 crore, including interest cost of Rs 30 crore. The current property environment is adverse and prices are expected to drop, accompanied with lower volumes.

Consequently, the brokerage has revised down its revenue estimates to arrive at an average EPS of Rs 23.1 for FY09 and FY10. At Rs 91, the stock appears attractively priced at 0.5x FY10E book value. Maintain Buy.

Read about other stock market recommendations and hot stock picks and share market investing ideas from Stockinvest.in

Stocks discussed: Infosys, P & G, Axis Bank, L& T

Stocks to watch

From time to time Stockinvest.in team makes an effort to track stocks which are in news for various reason. These stocks are usually not an immediate investment opportunity as their full potential will be realized later on.

The idea of mentioning these stocks is to keep track of them and invest in such stocks when the time is right.

The following stocks were in news in August 2008. How the stock market movement and later day developments in the share market effect such stocks is visible to everyone who tracks the Indian stock markets.

Stocks in news:

Bajaj Auto:

French auto major Renault has opened a second front with ultra-low-cost car partner Bajaj Auto by inviting the Pune-based two-wheeler maker to pick up stake in Renault Nissan Automotive India, which is setting up a $1-billion greenfield plant in Chennai. The company is also negotiating with Bajaj to extend the ultra-low-cost car partnership to include marketing, sales and distribution of Renault vehicles to be made in Chennai.

M&M:

Mahindra & Mahindra is going to foray into the two-wheeler segment by agreeing to buy the assets of Kinetic Motor Company for Rs 110 crore. M&M will buy the assets through a new company called Mahindra Kinetic Scooters and Motorcycles, which will own the assets of the Pune-based Kinetic Motor. M&M will own 80 per cent of the new company. Kinetic Motor, which makes two-wheelers, will own 20% in the new joint venture firm.

Ranbaxy:

The stock of Ranbaxy made some handsome gains from the beginning of 2008 but was hammered down lately on the news flow of investigation by US Justice Department in company’s affairs.

The US Department of Justice intends to withdraw its motion to enforce subpoenas on Ranbaxy Laboratories after the Indian major submits the entire audit documents sought by the federal authorities.

Axis Bank:

The government is mulling a proposal to sell part of the equity holdings it controls in Axis Bank through qualified institutional placement to a wide base of investors. The plan envisages offering over 21 per cent of Axis Bank’s equity held on behalf of the government by the Specified Undertaking of UTI to a broad-based set of investors.

UTV:

Minority shareholders of of Sony Entertainment Television (SET), now called Multi Screen Media (MSM), who hold 32 per cent stake in MSM, had earlier reached an agreement to sell their stake to billionaire-industrialist B K Modi. However, the future of that agreement is now in some doubt. It is learnt that Indian entertainment company UTV, along with Disney, is in discussion with Sony Pictures Entertainment to see if they could buy the 32 per cent stake.

Torrent Pharma:

Japan’s pharma giant Takeda Pharmaceutical is keenly eyeing Ahmedabad-based Torrent Pharmaceuticals as a possible acquisition.

Videocon:

The Dhoots of Videocon group have offered to buy Mahendra Nahata’s 36 per cent stake in all-India mobile licence holder Datacom Solutions.

ITC:

FMCG major ITC is planning to acquire an US-based IT company through its subsidiary ITC Infotech India.

New offers on the cards:

The central government is planning to list at least three state-run hydropower companies, reports mint. Satluj Jal Vidyut Nigam, Thehri Hydroelectric Development Corporation and North Eastern Electric Power Corporation may soon enter capital market.

Keeping an eye on the news flow can help you make decisions about the stocks you might want to invest in. The future prospect of any company depends on its present status and future plans. The foray of these established players into new areas can add value to their stock and make them an attractive investment idea.

Always keep the basics of stock market investing in your mind when investing in stocks. The management of the company, past track record in project implementation and execution, cash flows, debt, product and product market, turn over, profits and the growth rate are some the factors you should consider while investing in a stock.

Stocks to watch

Stock tips from stockinvest.in.

Keep and eye on these stocks as they have been in news recently for various reasons. Some of these companies can turn into good stock investments if their plans materialize. So keep an eye open for the investment ideas.

Stocks in News:Jet, McDowell, Ranbaxy, Pyramid Saimira

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Hot stock Picks

Hot stock picks and stock market investing ideas from Stockinvest.in

Advanta India
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Jubilant Organosys
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Gujarat NRE Coke
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Adhunik Metaliks
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Opto Circuits India
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Read the complete details about these stock investing ideas and also more hot stock picks from stockinvest.in

12 expert opinions on Indian stocks and share market

The Indian stock markets are crumbling in the face of global economic melt down. For the stock market investors who still have the courage to invest in stocks this could be the greatest opportunity to pick stocks which have fallen way below their true value.

This is what experts have to say about where the Indian stock market is headed and which stocks to buy in this stock market crash.

1. E Mathew, Director, Mathew Easow Fiscal Services, says that the move below 3,800 has certainly created tremendous amount of panic. “A lot of fundamental analysts are now following technicals. As one level breaks after the other, a sense of panic is creeping in, which in the long run may be good for the market and could lead to capitulation.”

He sees major support for the Nifty below 3,800 at 3,570-3,600. “It has to be said that important levels one after the other are getting violated. Nevertheless, I do feel the capitulation levels could take us somewhere close 3,570-3,600. In a way if a total sell-off takes place, it could be good for markets, so that the poison is totally cleaned out from the system.”

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Bottom up and Top down approach to stock investing

Bottom up Top down stock market investing

Many times you hear stock market analysts and mutual fund managers use the terms bottom up and top down to describe approaches to investing. Most expert stock market fund managers use one of these methods of stock selection. The two approaches involve opposing philosophies in determining which companies in which to invest.

What do the experts mean by these two terms and which one is the appropriate strategy for you?

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Weekly hot stock picks

Weekly hot stock picks and share market investing ideas from Stockinvest. in

Weekly hot stock picks

6 October, 2008

STATE BANK OF INDIA


RESEARCH: MOTILAL OSWAL

RATING: BUY

CMP: Rs 1,481

Motilal Oswal maintains ‘buy’ rating on State Bank of India (SBI). The bank’s rural and agri-business unit comprises: (1) all the business done at its rural and semi-urban branches; and (2) agriculture business done at any branch. SBI has 7,100 branches in rural and semi-urban areas which account for ~70% of its total branch network strength.

Read the complete list of stock market investing ideas and hot stock picks from Stockinvest.in >>>>>>

Stock Market investing for beginners

Investing in stock markets is not rocket science. Most would be investors do not succeed because they do not take that first step. They do not take the money out of the bank and invest it into stocks. For most first time investors it is the fear of the unknown . The excuses for not investing are “The markets are too high now” or ” The markets are down ” or simply ” I don’t know anything about the Stock Market“. You can’t make money in the stock market if you don’t buy some stocks.

We will deal with the basics of stock market investing and give you an introduction to investing in stock market. You will find all the help and guidance that you need if you are a first time investor in stocks or you want to sharpen your skills and get more in depth knowledge stock picking and investing

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Indian Economy to Boom by 2020-A Report

The following is a special report on a new and unique household wealth index, prepared by Barclays Wealth and the Economist Intelligence Unit (EIU), which predicts how the global distribution of household wealth will change over the next ten years across 50 countries. The report, the first of its kind, clearly shows the gap closing between the established economic superpowers and the rising stars among the developing nations.

India

In less than two decades, India has been transformed from a slow-growing agrarian country into one of the world’s most dynamic economies.

Read the complete story at stockinvest.in