Last week I heard a very interesting story which eventually gave me the idea of investing in BGR Energy Systems Ltd. Thought of sharing with you. Years back when the South African Government opened their country for outsiders to come and do mining for diamonds, entrepreneurs form all over the world rushed to South Africa [...]
Archive for the ‘Equity’ Category
BGR Energy: Building the Indian Power Story
March 24th, 2010 
Praveen Bajaj 
Posted in Equity 
Tags: Accounting Standards, economic review, exchange rate, IFRS Valuation, indian economy, nifty, sensex, share markets, usd-inr 
1 Comment »What is Deemed Income?
March 12th, 2010 Praveen Bajaj Do You have Deemed Income ? The government “deems” it fit to see income even when there might be none. At present 22 such provisions exist in the Income Tax Act In case of a seller; if a person has sold a flat for 22 lakhs but the fair value assessed by the authorities comes [...]
Buy Bayer Crop Science
January 5th, 2010 Praveen Bajaj • BSCL, an agro-chemical company, is subsidiary of the Euro 35 billion Bayer AG• Its business is divided into crop protection, environmental science and bio-science• Per hectare consumption of pesticide in India is merely 0.48 kgs, lower than 5.0 kgs per hectare in the US and again less than 10.0 kgs per hectare in Japan• With its strong R&D, BSCL continues to offer new products to its customers• The Company derives nearly 80.0% of its exports revenue from its Bayer AG group companies due to the cost advantages • New products’ launch, outsourcing from parent and low pesticide penetration will drive the future growth of the Company• Despite poor rainfall in H1FY10, the Company registered a strong performance• Its profit in H1FY10 is Rs. 109.42 crore higher than Rs. 94.46 crore posted for FY09• The Company has shut down its Thane plant spread over 108 acres of land, valued around Rs. 1,000.0 crore • The sale of land could generate huge cash reserves for BSCL• The stock could be bought at current levels with one year target price of Rs. 632.0
Info Edge, Strong Investment Buy
December 9th, 2009 Praveen Bajaj Initiating Coverage with BUY: Joining the Economic Recovery Economy swings back on the recovery path: The Indian economy grew 7.9 per cent during the July-September period — its strongest in six quarters. The growth achieved beat most forecasts and prompted experts to revise their full-year growth projections. This will certainly lead to increased employment opportunities, [...]
Shipping Stocks on the Shine
November 19th, 2009 Praveen Bajaj The Baltic Dry Index (BDI) has clocked its highest weekly gains this year and was at its yearly highs at 4381 up 161 points or 3.85% The Baltic Dry Index has been on a rise since 14 consecutive sessions and has gained more than 60% in the last one month Reasons This has come mainly [...]
Posted in Equity Tags: indian economy, share markets, shipping sector, shipping stocks No Comments »Indian Steel Sector – Results Update
November 6th, 2009 Praveen Bajaj • The recent recovery in industrial growth and in the real estate sector augurs well for Indian steel makers and the resultant rise in demand is already evident. India and China are two markets where steel units are operating at quite high levels of capacity utilization; 86% for China and 80% for India, compared with [...]
Hawkins Cooker: Quarter Two Results
November 3rd, 2009 Praveen Bajaj At the current market price of Rs 522 the stock is currently trading at a trailing twelve month P/E of around 12, despite its earnings growing at an average of around 60%, over the last four quarters and good dividend payment track record and a dividend yield of over 4%
Hence, we maintain our BUY call on the stock with a year DDM based price target of Rs 625.
Reliance Industries Q2 Results
October 30th, 2009 Praveen Bajaj Reliance Industries Ltd. declared its second quarter results today. The results came in line with the Bloomberg consensus expectations. Reliance’s standalone net profit fell by around 6% YoY, to Rs. 3,852 cr. from Rs. 4,116 cr. This was mainly on account of a lower gross refinery margins (GRMs)
Posted in Corporate News Tags: reliance industries, results, RIL Results, second quarter results No Comments »Hero Honda net profit rises by 95%
October 23rd, 2009 Vineet Patawari India’s largest manufacturer of motorcycles, Hero Honda Motors second quarter results were ahead of the market’s expectation mainly on account of better margins.