Batliboi - Buoyant Profits

Batiboi Has Announced Good Results

Batliboi managed to generate some heat this quarter. The results of quarter ended Dec 06 were beyond expectation. Total Income was Rs. 25.90 crores up 32.34 % from Rs. 19.57 crores. Profit Before Tax stood at Rs. 2.54 crores up 173 % from rs. 0.93 crores. Net Profit climbed to Rs. 1.69 crores up 113 % from rs. 0.79 crores. All comparisons are for the corresponding quarter last year.

The order book position of batliboi is up by 66 % (YOY) and is expexted to perform well in coming quarters.

Ratnamani Metals - A Valuable Ratna

Ratnamani Metals - Piping Its Way To Profit

The Q3FY2006 results of Ratnamani Metals and Tubes Ltd (RMTL) are above expectations. Its revenues grew by 121.9% to Rs118.5 crore over last year. The massive growth in the top line was achieved on the back of a strong order book. The operating profit grew by 168.5% to Rs20 crore in Q3FY2006 year on year (yoy). The operating profit margin (OPM) improved by 293 basis points to 16.9% during the quarter. The OPM improved owing to the easing of the raw material prices going forward. RMTL's profit before tax (PBT) increased by 157% to Rs1,498 crore yoy. The net profit increased by 146% to Rs9.86 crore yoy. However the provision for tax for the quarter included the Rs1.73 crore paid for the previous year. Excluding this, the profit after tax (PAT) increased by 190% to Rs11.6 crore.

RMTL has reported a net profit of Rs20.9 crore for M9FY2006 as compared to FY2006 estimate of Rs24.5 crore. The company is expected to earn a net profit of Rs26.3 crore and Rs36.1 crore in FY2006 and FY2007 respectively. The stock trades at 11.3x the FY2006 and 8.3x the FY2007 earnings estimates. Ratnamani holds a lot of value at current market price and risk-reward ratio is in favour of investors.

What Money Monarchs Expect This Year

A Must Read

Seven stock market stalwarts debate the prospects for Indian stocks in the annual round-table organised by Capitalideasonline.com. Featuring Ramesh Damani, Rakesh Jhunjhunwala, Raamdeo Agarwal, Sanjoy Bhattacharya, Bharat Shah, R Sukumar, Madhu Kela and Prashant Jain. A must read for every Stock Market enthusiast.

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News You Can Use

Patel Engineering Bags Hydro Electric Power Project

Patel Engineering Ltd has announced that the Company has bagged a 520 MW Parbati Hydro Electric Project Stage (III) from the National Hydro electric Power Corporation Ltd in a consortium with L&T. The project is estimated at Rs 4390.70/- million.

The project, Located at District Kullu in Himachal Pradesh on river Sainj, includes river diversion, rockfill dam intake, desilting chambers, 5.8 KM Head Race Tunnel and other associated works and will be implemented in 56 months.

Commenting on the developments, Ashwin Parmar, Director, Business Development, of the Company said: "Our government’s increasing thrust on infrastructure construction in the country has thrown open an immense growth opportunity in the sector. This is the first project bagged by Patel Engineering in consortium with L&T. We are optimistic of participating in similar projects in future on the back of synergistic strengths of Patel Engineering and L&T."

The Company has recently bagged two projects - the Nettampadu Lift I irrigation project and a railway tunnel project. The Nettampadu Lift - I irrigation project near Guddam Doddi Village, Dharur Mandal, will irrigate around sixty thousand hectares of land in the surrounding areas. The railway tunnel project, part of the Lumding - Silchar Gauge Conversion project at Haflong, Assam is a step towards all - round development of north - eastern states to ensure better connectivity with the rest of the country.

Pantaloon Hires Sameer Sain To Head Financial Arm

Pantaloon Retail has roped in Goldman Sachs Managing Director Sameer Sain to head its new financial services arm, Future Capital Holdings. Besides being managing director Sain was head of the special investments group, co-head of wealth management for Europe, the Middle-East and Africa, and a member of the executive committee of Goldman Sachs Bank Zurich.

Kishore Biyani, managing director, Pantaloon Retail, said, “During his 11 years at Goldman Sachs, Sameer has accumulated a broad range of experience, specifically in alternative investments such as hedge funds, private equity and real estate. In addition, he also brings a strong understanding of the global capital markets.” ...... Read Full Story

ADAE To Set Up Two Retail Broking Outfits

Anil Dhirubhai Ambani Enterprises (ADAE), has big plans in the retail broking space. R Trade Securities, the group’s vehicle for retail broking, is busy recruiting people and setting up a pan-India network for itself, as well as its two subsidiaries - R Trade Commodities and R Trade Financial Services.

Commercial operations for these three firms are expected to begin in April.Reliance Capital, the group’s financial company, having presence in mutual funds, as well as general and life insurance businesses, is the promoter of R Trade Securities, which in turn has floated R Trade Commodities and R Trade Financial Services.

Sources who know about the development said R Trade Securities was recruiting people in a big way, to increase the staff strength from 70 to 200 in a year. The increased staff strength was required to set up offices at 20 cities........ Read Full Story

Crew B.O.S. - Always In Fashion

Crew B.O.S. Products - Best Stock In Fashion Accessories

Crew B.O.S. Products Limited came out with spectacular set of numbers for QE Dec. 06. It registered an increase of 74 % in net profit at Rs. 4.10 crore for the quarter ended December 2005 as compared with Rs. 2.35 crore in the previous corresponding quarter. Its total income increased by 58.75 % to Rs. 34.26 crore for the quarter from Rs. 21.58 crore during the previous corresponding quarter. EPS was Rs. 3.20 as compared with Rs. 2.14 earlier.

The Total Income for the nine months stood at Rs 95.08 crore which was 79 per cent up from previous year's total income of Rs 53.23 crore. The cummulative net profit up to third quarter was Rs 11.39 crore as compared to Rs 5.24 crore in the same period last year which shows a jump of 117 %. Nine month EPS is Rs. 9.45.

This performance is inspite of an increase in Depriciation to Rs. 2.02 crore which shows an increase of 130 % (previous year Rs. 0.87 crore). It shows that the company has done some aggressive capital expenditure. The Board has also approved a proposal of tie up with a Fashion Accessories manufacturer in Hong Kong and China, to further strengthen its outsourcing business model.

Suven Life - Elixir Of Portfolio

Suven Life Sciences - A Value Pick

Contract Research And Pharma Manufacturing Services (CRAMS) company Suven Life Sciences registered an increase of 181.57 per cent in net profit at Rs. 3.21 crore for the quarter ended December 2005 as compared with Rs. 1.14 crore in the previous corresponding quarter. Its total income increased by 94 per cent to Rs. 27.11 crore for the quarter from Rs. 13.95 crore during the previous corresponding quarter. EPS was Rs. 1.28 as compared with Rs. 0.46 earlier.

The revenues for the nine months stood at Rs. 63.45 crore which was 104 per cent of previous year's total revenue of Rs. 60.77 crore. The cummulative net profit up to third quarter was Rs. 6.21 crore as compared to Rs 3.20 crore in the same period last year. R&D expenses increased to Rs. 4.09 crore for the quarter as compared with Rs. 1.94 crore in the previous corresponding quarter.

The company expects to file its first Investigational New Drug (IND) in the US before the end of 2006.

India Infoline - A Very Important Development

India Infoline - Buy Recommendation

The board of India Infoline today gave the go-ahead for the Rs. 80 crore investment by DSP Merrill Lynch Capital Ltd. through 8,000 optionally convertible bonds of Rs. 1 lakh each. It has also approved Rs. 20 crore to be invested by Bennett, Coleman & Company Ltd (BCCL) through 11,76,471 equity shares at Rs. 170 a share. The conversion price for the bonds would be formula linked, subject to a Sebi floor price of Rs. 141 and a price cap of Rs. 170 per equity share.

"These investments shall help fuel the aggressive growth plans charted out by India Infoline," the company said in a statement. At the EGM of India Infoline held today, the company also approved the promoters' plan to invest Rs. 44.20 crore through 26,00,000 equity warrants convertible into equity share at a price of Rs. 170 per share. The warrants would be convertible into equity shares within 18 months. "Keeping in mind the dominant promoter guidelines of the stock exchanges, promoters have to maintain their stake above a stipulated level. We could have subscribed to the warrants at a price of Rs. 141, but we decided to subscribe at the same price as other external investors, keeping in mind the interest of all stakeholders," R Venkatraman, one of the promoters and executive director of the company, said.

India Infoline, which announced a dividend of Rs. 2 per equity share, also announced a tie-up with stock market expert PN Vijay to launch a Portfolio Management Scheme (PMS) to be managed by Vijay.

Gateway Distriparks - Niche Player

Laloo Ji Opened The Gate Of Opportunities

Port-based logistics providing company Gateway Distriparks registered 62.44 per cent growth in net profit at Rs. 17.69 crore during the third quarter ended December 2005 as against Rs 10.89 crore during the corresponding period in the last year. Income from operation grew to Rs. 31.92 crore from Rs. 24.79 crore in the year-ago period. The company has declared an interim dividend of 15 per cent (Re. 1.50 per equity share of Rs 10 each) for the the current financial year. The growth in the container throughput led to the increase in profitability.

Throughput for the quarter increased by 21.69 per cent to 55,295 twenty foot equivalent units (TEUs). “The container port sector is on a high growth trajectory and we are expanding our operations to keep pace. The opening up of container movement by rail to private players will add significantly to our growth. We are optimistic of consolidating our position as an integrated logistics provider in the coming years,” Chairman Gopinath Pillai said.

The company recently raised $85 million through its maiden GDR offering, issuing 1.6 crore GDRs representing 18.07 per cent of the post issue equity. The fully diluted EPS for the quarter was Rs 2.30 per share.

Pantaloon Retail - Mall - A - Maal

Pantaloon Retail - Aggressive Growth Strategies

Pantaloon Retail posted a 83.03 per cent increase in net profit for the quarter ended December 2005 at Rs 18.56 crore compared with Rs 10.14 crore for the corresponding quarter of the last year. Net sales was 98.14 per cent higher at Rs 472 crore compared with Rs 238.21 crore for the corresponding quarter last year. Operating profit stood at Rs 38.31 crore compared with Rs 22.48 crore for the year-ago period, higher by 70.41 per cent. Earnings per share stood at Rs 8.33 against Rs 5.1 for the same quarter last year.

Pantaloon Retail India plans to set up a non-banking financial company (NBFC). The company is looking at entering the insurance and credit side of the retail business. The retail major already has private equity and asset management services. In addition to this, the company also announced an agreement to set up a retail chain for kidswear under the Gini & Jony Apparel brand. Pantaloon would have a 50 per cent stake in the joint venture. “In organised retail, there is a gap as far as children wear is concerned. Our aim is to fill this gap with our JV,” said Biyani.

Pantaloon has also picked up a 33 per cent stake in Capital Foods and Capital Foods Exports each. These companies manufacture and market ready-to-eat food items under the Smith & Jones and Chings’ Secret brands.

The Pantaloon group-promoted Kshitij will be setting up 51 malls over 14.5 million sq ft over the next three years. The 51 malls would include the ones being developed using Kshitij Venture Capital Fund, as well as malls both owned and leased by Pantaloon Retail. Baijal said the total cost of the projects being implemented by KVC fund is approximately Rs 2,500 crore, and KVC’s equity contribution is around Rs 600 crore. In terms of tenant mix, Pantaloon Retail is likely to occupy about 20 per cent of the overall space available. The company has tied up with Inox Leisure to set up multiplexes at the Kshitij properties, and about 37 of the 51 malls coming up would have a multiplex.

Read the News - Buy The Stock

Amara Raja - Recharge Your Portfolio

Industrial and Automotive Battery major Amara Raja Batteries Limited has announced an impressive quarter-on-quarter growth for Q3 2005. With an overall growth of over 61 per cent, revenue for the quarter stood at Rs. 977.71 million as on December 31, 2005, as against Rs. 605.02 million for the same quarter last year. Profit before Tax (PBT) for the current quarter was Rs. 103.41 million and it was 311 per cent higher than the PBT of Rs. 25.11 million reported in Q3 last year. The Profit after Tax (PAT) for the quarter ended December 31 2005 stood at Rs. 68.6 million as against Rs. 14.24 million for the same period last year, registering an increase of 381 per cent. The growth in revenues and profits in the current quarter has been the result of increase in volumes and market share, both in Industrial and Automotive batteries, a company release said today.

SPEL Semiconductor - More Current

SPEL Semiconductor has reported a 152% jump in net profit at Rs. 69.7 lakh for the third quarter ended December 31, ‘05 over Rs. 27.7 lakh in the same period in the previous year. The company has trimmed accumulated losses to Rs. 3.2 crore from Rs .13.5 crore as of March 31, ‘04. The remaining accumulated losses are expected to be wiped out by Q2 of FY06-07. SPEL has also cleared all its debts after it settled with IFCI in October ‘05. Turnover increased to Rs. 11.3 crore (Rs 8 crore). In the first nine months, net profit declined to Rs 4.1 crore (4.7 crore). Net sales improved to Rs 33.9 crore (Rs 25.9 crore).

Pantaloon - Push for Home Stores

Home Solutions Retail (India), a 100% subsidiary of retail major Pantaloon Retail, aims to close its third year of operation with a topline of Rs 1,000 crore, Raghu Pillai, managing director and chief executive officer, said. Home Solutions is setting up a chain of home stores, dedicated to all things that would be used for setting up, decorating, and furnishing a home. Pillai said the company would fund its expansion with a mix of debt and equity.

In the first phase, the company will be setting up six Home Towns, the company’s umbrella store, in Noida, Hyderabad, Gurgaon, Pune, Thane and Bangalore, which will get operational by June 2007. Each store, involving an average investment of Rs 14 crore, will be spread across 120,000 square feet.

Home Towns would even sell items like paints, tiles, cement, etc, which are normally not sold out of departmental stores. Also available for customers would be services from interior decorator, architect, carpenter and tailor. By June 2006, Home Solutions would set up six independent consumer electronics and appliances stores under the e-Zone brand. It would retail consumer electronics like television, music systems, digital cameras, laptops, etc.

The company is entering the lifestyle furnishing space by setting four ‘Collection i’ stores. These stores would be spread across 15,000-18,000 square feet and involve an investment of Rs 2.5 crore each. On a smaller scale, it is planning to set up ‘Got It’ stores spread across 1,000-2,000 square feet, which would retail ‘home productivity enhancing tools’. “We would sell things like fabric strain remover, basin de-clogger, oil for hinges, etc, from these stores. It is modelled on Dubai’s Ace Hardware,” Pillai said. It would source materials from China.

Sterling Holiday - Going for Global Issue

Sterling Holiday Resorts (India) Ltd has informed that an extraordinary general meeting (EGM) of the members of the company will be held on February 9, to create, offer, issue and allot foreign currency convertible bonds (FCCBs) convertible into equity shares or otherwise, American depository receipts (ADRs), global depository receipts (GDRs) in registered or bearer forms or any such security convertible into equity shares of Rs 10 each (depository receipts) (through depository receipt mechanism) and / or convertible debentures (whether fully convertible or not and whether secured or not and convertible into equity shares at the option of the company and / or the holders of such debentures), and / or equity shares of Rs 10 each and / or depository receipts and / or securities linked to equity and / or securities with or without detachable / non-detachable warrants with a right exercisable by the warrant holder to subscribe for the equity shares and / or warrants with a right exercisable by the warrant-holder(s) to subscribe for equity shares and / or convertible securities linked to equity and / or any other financial instruments (OFIs) and / or any combination of financial instruments for an amount not exceeding US $25 Million subject to necessary approval & provisions.

Surya Pharma - To raise Fund in Overseas Market

Surya Pharmaceutical Ltd said on Friday its board would meet on January 28 to consider raising up to $50 mn in overseas convertible bonds, global depositary receipts or American depositary receipts. The proceeds would be used to set up or acquire a pharmaceutical manufacturing unit in Europe, the company said. The board will also consider a foray into healthcare services such as hospitals, diagnostic centres and medical stores. Shares in Surya Pharmaceutical were 3.4 per cent higher at Rs 143.75 in a firm Mumbai market.

Zodiac Clothing & Shasun Chemicals - Good Quarter

Zodiac Clothing - Dress Your Money

The management of the Zodiac Clothing Company Ltd (ZCCL) organized an analyst meet to discuss the Q3 FY06 result and its future prospects. Following are the key highlights of the analyst meet:

• During Q3FY06 ZCCL recorded a 59.1% yoy increase in net sales to Rs. 611mn. The company registered a net profit of Rs. 42mn during Q3 FY06 as against Rs. 33mn during the corresponding quarter last year.


• Operating profit for the quarter stood at Rs. 42mn in Q3FY06 this represents a sharp increase over an operational loss in the corresponding quarter last year. This was mainly driven by a 14.9%yoy decline in staff cost as a percentage of sales. The company’s branded business has continued to grow and has recorded a growth of over 30% by virtue of strong performance in every segment of its Indian operations i.e. Multi Brand Outlets (MBO), large organized retailers as well as the company’s new stores.


• The company currently owns 19 own retail outlets and has plans to expand by an additional 17 stores out of which four stores are expected to commence operations within this financial year.


• The company’s paid up share capital has increased from Rs. 41.8mn to Rs. 83.6mn due to allotment of bonus shares in the ratio of 1:1 during October 2005.


• ZCCL caters to the middle and high end of garment demand where the demand is good and price realizations are also better. This segment requires high focus on designing. The company has design studios set up in London, New York and Dusseldof which enables the company to remain abreast with latest fashion trends.


• ZCCL’s acquisition of a manufacturing facility in UAE could help the company to cater to the US and EU markets cost effectively as there is a possibility of US and EU allowing free trade with UAE which would save duty upto 20% for exports to US and 12% for exports to EU.


• The company’s branded business continues to benefit from expansion of the retail presence across the country, growth of organized retail chains, opening up of the company’s own stores the burgeoning middle class and their propensity to spend. The price pressure in the export market has eased out with safe guard provisions on China imposed by EU and the US. Thus the growth prospects in ZCCL’s domestic business and the export business from India as well as the UAE seem very positive.


• The stock is trading at 28.3x its nine month annualized earnings of Rs. 11.1 (Excluding shoppers stop investment). The company also has 1mn shares of shoppers stop, which if valued at market value would contribute Rs. 59 per share, the stock trades at 21.9x its nine month annualized EPS.

Shasun Chemicals & Drugs - Sweet Pill

Shasun Chemicals and Drugs Ltd. has reported a 43% rise in its net profit at Rs. 129mn, for the fiscal third quarter ended December 31, 2005 compared to Rs. 90.10mn in the corresponding quarter previous year. Net sales grew by 33% to Rs. 984.10mn as against Rs. 738.80mn during the same quarter previous year. Profit Before Interest, Depreciation and Tax increased by 14% to Rs. 205.70mn from Rs. 181mn during the year-ago period. Earnings Per Share (fully diluted) stood at Rs. 5.02 as on December 31, 2005.

Meanwhile, the company has posted a 15% increase in net sales at Rs. 2.55bn for the nine months ended December 31, 2005 compared to Rs. 2.21bn in the corresponding period previous year. CRAM business contributed 12% of the turnover. Net profit increased by 25% to Rs. 233.50mn from Rs. 186.30mn during the same period previous year. Net profit on a consolidated basis for nine months stood at Rs. 242.90mn.

Shasun Chemicals recently entered into a Letter of Intent with the Rhodia Group of France to acquire the pharmaceutical customs synthesis business of Rhodia Pharma Solutions. Both the parties have entered into an exclusivity agreement to progress towards the final Sale and Purchase Agreement, which is expected to be completed by the end March, subject to satisfactory due diligence and regulatory approvals.

INOX - Live The Movie

INOX - Apply For Listing Gains

Inox Leisure is one of India’s larger multiplex cinema operators. It has eight operational multiplexes, with 32 screens across seven cities: Mumbai, Pune, Vadodara, Goa, Jaipur, Kolkata (two multiplexes) and Bangalore.

While consolidating its position in the exhibition business, Inox Leisure has entered the film distribution business, acquiring the distribution rights for certain Hindi film titles in select distribution circuits. It had invested Rs 7.5 crore in financing the film, "The Rising’.

Inox Leisure’s present IPO is to raise finance its expansion. The company is setting up around 11 multiplexes in locations like Hyderabad, Vishakapatnam, Jaipur, Kolkata, and Bangalore at an estimated cost of Rs112.82 crore.

Strengths

• Inox Leisure has developed a strong patronage in the last couple of years. Over 2003-05, the number of patrons has shown a robust CAGR of 52% to 38,88,547 and in the half-year ended September 2005, it touched 80% of the numbers in FY 2005, at 31,25,801.


• The revenue has shown a impressive CAGR of 57% to Rs 61.48 crore over 2003-2005 and touched Rs 50.25 crore in the six months ended September 2005, which was 80% of the full year sales of FY 2005. OPM has grown steadily to 33.6% end FY 2005, from 28.7% in FY 2003. In six months ended September 2005, it stood even better at 40.3%. The bottom line grew from mere Rs 9 lakh in FY 2003 to Rs 8.24 crore in FY 2005. In the six months ended September 2005, the profit after tax was Rs 9.73 crore.


• The Indian multiplex industry is on a high growth trajectory, with its increasing share of the overall box office collections. The growth of multiplexes is fuelled by a rise in disposable incomes, a boom in organised retail, entertainment tax benefits given by several state governments and the corporatisation of the Indian film industry.

Weaknesses

• The promoter of the Inox Leisure, Gujarat Fluorochemicals (GFL), is not related to the film industry and is reducing its stake through offer for sale in the present IPO. About 10% of the total funds raised will go to GFL, and not to the company.


• Over 75% of the revenue comes from box-office collections. The poor success rate of Hindi films, inadequate enforcement of anti-piracy laws in India and increasing home viewing options such as DVD and cable TV may constrain the growth in the number of cinema patrons.


• The multiplex business enjoys relatively low breakeven due to higher ticket rates and entertainment tax benefits. However, tax benefits are for a limited period and ticket rates can be regulated by the states.

Valuation

The nearest comparable companies are PVR Cinema, Adlabs and Shringar Cinemas. PVR Cinemas, which is the largest multiplex cinema operator by number of screens, recently completed its IPO and is trading around 169 times its FY 2005 EPS, Adlabs is trading at a PE of around 60 times its FY 2005 EPS. Shringar Cinemas, which has yet to report profit, is trading around Rs 80.

On an expanded equity of Rs 60 crore, FY 2005 EPS of Inox Leisure works out to Rs 1.26. Based on this, PE stands at 79.4 and 95.2 at the price band of Rs 100 and Rs 120. In the first half, the company has already crossed the FY 2005 net profit. However, first half is the main season and one cannot annualise the figures. Nevertheless, one can expect over 100% growth in net profit in FY 2006, bringing down the PE to below 50.

PSL - A Booster Dose

The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to provide $20 million in financial support to India’s steel pipe maker PSL Limited. The financing will support the expansion of PSL’s production capacity to meet a rapid increase in domestic and international demand for large-diameter steel piping for use in oil, gas, and water applications. In eastern India, the PSL expansion will help satisfy demand for piping due to recent gas finds in the Krishna Godarvi Basin. The project will also help the company to improve its cost competitiveness, productivity, product quality, and environmental performance.

“IFC’s investment in PSL is helping a local player enhance its regional presence. This is in line with IFC’s mission to promote sustainable private sector investment in emerging markets,” said Iyad Malas, IFC’s Director for South Asia. “It will also allow PSL to play a bigger role in providing the large diameter piping that is a critical part of India’s infrastructure.”

IFC’s financing comprises an equity investment of $5 million equivalent and a loan of $15 million, which will support the expansion of PSL’s installed capacity for large-diameter steel pipe manufacturing from 675,000 tons to 1,425,000 tons per year.

PSL Limited is India’s largest manufacturer of high-grade, large-diameter helical submerged arc welded pipes for oil, gas, and water transmission as well as for structural and piling requirements in onshore and offshore applications. PSL also offers comprehensive pipe-coating services.

“PSL is pursuing an ambitious expansion strategy to meet the high demand for its products in India and the region, and we are pleased to support the company in meeting its goals,” said Dimitris Tsitsiragos, Director of IFC’s Global Manufacturing and Services Department.

Mr. Ashok Punj, PSL’s Managing Director, noted that “IFC is playing an important part in our expansion plans and is helping us strengthen our financial position. IFC is also helping us upgrade our corporate practices in environmental and occupational health and safety management.”

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.

Emami - Worth Sona And Chandi

Emami has all the potential of becoming a multibagger. The company is slowly and steadily advancing in all the FMCG related growth areas with some aggressive marketing and brand positioning. Keep an eye on all the news flows.

Emami Ltd reported a 37.8% rise in net profit to Rs 19.1 crore in the third quarter ended December 31, 05, compared to Rs 13.9 crore in the corresponding quarter. Net revenue, at Rs 105.2 crore, during October-December ’05 was up by 42.4% against Rs 73.9 crore in the earlier corresponding quarter. Emami launched BoroPlus light cream and body lotion, a fairness cream for men, a Sona Chandi baby oil, a laxative churna, its cough syrup and vaporub and memory booster in recent months. Emami, in the three quarters ended December 31, 2005, reported turnover and PAT at Rs 203 crore and Rs 33 crore against previous year's Rs 159 crore and Rs 23 crore respectively.

Its Navratna oil and Boroplus antiseptic cream strengthened their leadership position while other existing brands like Sona Chandi Chyawanprash, Boroplus Prickly Heat Powder and Menthoplus Balm were growing too, it claimed. The fairness cream for men had received excellent response. Emami's international business grew 58 per cent, in CIS, SAARC, GCC, Africa and Europe regions. Emami's new international range of products, called the Emma range in developing countries and the Gold range and Ayucare range for niche and premium markets, were selling strongly, it added. Emami's said it had developed unique rural marketing strategy includes sales through its 1800 mobile traders and 100 small village shops covering states like West Bengal, Chhatisgarh, Madhya Pradesh and Andhra Pradesh. Collaborations with ITC e-choupals and the postal department in Maharashtra helped increase penetration further.

Earlier, Emami and Shrachi group, promoters of AMRI hospital, has acquired Kolkata's Suraksha hospital for Rs 32 crore on January 19. The new entity would be known as AMRI Hospitals Salt Lake and would be managed by AMRI. Announcing the acquisition, S K Todi, chairman, Shrachi group said, "The acquisition jointly by Shrachi and Emami group was completed on January 19".

It would be managed by Advanced Medicare & Research Institute Ltd (AMRI), a joint venture between Emami-Shrachi group and government of West Bengal. The government will not have any stake in the new venture, he added. "The acquisition has solely been done by Emami and Shrachi group," claimed Todi. The AMRI hospital board has cleared the proposal of using the brand name of AMRI for the new venture, said Aditya Agarwal, director of Emami Ltd and AMRI Hospitals. A sum of Rs 5 crore would be spent on upgradation of the facility at Salt Lake. With the acquisition of Suraksha, AMRI has become the largest private hospital in the city with 530 beds, claimed Manish Goenka, director, Emami Ltd and AMRI Hospitals. All 460 employees of Suraksha would retain their jobs, he added. Emami and Shrachi group had invested Rs 150 crore in AMRI hospital. The two groups would invest Rs 200 crore more in AMRI over the next two to three years.

IPO - Initial Profit Opportunities

Entertainment Network (India) Ltd.

This Mirchi is really Hot. I advise Investors to bid for shares in the IPO of Entertainment Network (India) Ltd. It owns and operates radio networks under the popular Radio Mirchi brand, and it is likely to be the premier listed play in the FM radio space for some years to come. Ask yourself how much you listen to FM while driving a car or while going to your work and you will get the answer. The FM radio business is poised for attractive growth over the next five years. With a footprint that will cover 15 promising locations over the next 12-18 months, there is likely to be a substantial scaling up of revenues and earnings. The background and strength of its promoter - Bennett, Coleman & Co, the publishers of The Times of India - is also likely to be a major positive that will influence the stock valuation. While the event management business is a growth opportunity, it may be a drag on profitability in the near term.

Due to the stiff licence fee, ENIL could not make profit since the past five years. After a new liberal policy, effective in the current year, the company’s licence fee obligation has come down drastically. It made a turnaround in the first half of FY 2006. Accumulated losses of over Rs 100 crore have been written off against equity and share premium account.

Before coming to the public, ENIL incorporated a 100% subsidiary, Times Innovative Media Private Limited (TIMPL), to take over the event management and out-of-home media business from the promoter company, Time Infotainment Media Company Limited (TIML). Bennett and Coleman Company (BCCL), the other promoter, had a 97% stake in TIML. With a portfolio of nascent businesses that have substantial growth potential, the prospects for Entertainment Network appear encouraging. The offer should also attract significant institutional investor interest, as it is one of the superior exposures to the entertainment sector.

Strengths

• As compared to other developed and developing countries, advertising on radio has not been popular in our country. However, as consumerism in the country is on the rise, this medium can increase its advertisement share faster than other media as it is the cheapest mode of advertising and has a low base.

• As opposed to the old licensing policy, which had a provision of a flat 15% escalation of license fee per annum, the new policy provides for performance-based revenue sharing. This provides good opportunity for ENIL to expand rapidly to capitalise on its first mover advantage.

• ENIL has the largest radio network in the country: seven major cities including four metropolitan cities. The company operates in the same 93.5 MHz frequency band in all the four metros, giving it an advantageous position among frequently traveling listeners. Also, by having a pan-India presence, ENIL enjoys the advantage of providing greater advertising coverage to its clients. The brand, Radio Mirchi, is well recognized in the market, with 95% and 100% brand awareness in Mumbai and Delhi, respectively.

• The Times group enjoys rich patronage from advertisers due to its deep presence in the media and publication business, giving ENIL an edge compared to its competitors.

Weaknesses

• The entertainment and media industry is very much people-centric. Attrition rate will increase with the entry of many players after the new liberal licensing policy. This may put tremendous uncertainty on the listener-hold of existing channels.

• A substantial portion of the issue proceeds will go to bid for new stations. The revenue and profit from such new ventures is subject to uncertainty and gestation periods of varying degrees.

• ENIL is involved in a host of litigations relating to the sources of its contents. Any ruling against the company can have material financial implications.

• The 100% subsidiary of ENIL is engaged in event management and out-of-home business, where many unorganised players have a good presence, raising uncertainty on growth and profitability.

Valuation

In the half-year ended September 2005, ENIL reported sales of Rs 48.37 crore and net profit of Rs 11.05 crore. The company earns higher revenue and profit in the second half of the financial year due to the festive season. However, in the half year, it has not provided for around Rs 4 crore of amortisation charges related to one-time fee payable to shift to the new licensing regime. Its debtors amount to Rs 37 crore. As ENIL will be spending above Rs 70 crore for acquiring new licenses, it will have to take further hit on amortising these charges, as the new cities will take time to bring revenue. So one can not expect big EPS numbers in the short to medium term and P/Es will be high. Being the only listed player (at least for some time) in this field will stand it in good stead post-listing.

Jagran Prakashan Ltd.

Have you seen the movie Apaharan, well, if yes than you must have noticed how Dainik Jagran was positioned in the movie, some strategy to improve the recall value. Dainik Jagran is a very aggressive player and it made investments even during years when the industry environment was not favourable for print media players.

The footprints of Dainik Jagran can be seen in 25 locations and it now covers much of Uttar Pradesh, Uttaranchal, Bihar, Punjab, Haryana and Himachal Pradesh. The impressive growth in circulation numbers (daily sales of 2.4 million in January-June 2005) that has also been accompanied by a scaling up of revenues, albeit with a lag, over the past five years is due to the the depth of its coverage with a sharp focus on local news, which is important for a paper that publishes 200 sub-editions, to cater to markets with differing Hindi dialects. It will also benefit from the rising share of Hindi newspapers in the advertisement pie, that is likely to flow largely to Dainik Jagran and Dainik Bhaskar, which also boasts of a circulation of close to two million; they represent the most attractive reach for advertisers targeting the Hindi heartland. Jagran Prakashan also publishes Sakhi, a monthly magazine targeted at women, Jagran Varshiki, an annual general knowledge digest, and various national and state statistical compilations. Ireland-based Independent News and Media (INM) PLC, through its wholly owned subsidiary INMIL, acquired 3,212,486 equity Shares in Jagran Prakashan for Rs 150 crore in June 2005. Of this, Rs 110 crore was paid for 2,355,716 newly issued equity shares and Rs 40 crore to the promoter’s family shareholders to acquire 856,770 equity shares from them.

The objective of the issue is to raise finances for a capital expenditure of Rs 274.33 crore required to enhance its printing and publishing capabilities, to consolidate its infrastructure including printing facility and the editorial, marketing and administrative departments and launch a second brand. In addition to this, Jagran Prakashan also intends to use around Rs 43.39 crore from the public offer for acquisitions and investments in order to build a strong competitive force in its area of operation. Besides, there are plans to spend Rs 40 crore to expand its outdoor advertising business. The Promoters and Associates also own Channel 7 and Rave Entertainment Private Ltd. which operates a multiplex in Kanpur at present. All in all a good offer to subscribe.

Strengths

• Despite a number of broad-page English and Hindi dailies such as the Times of India, Hindustan Times, Dainik Bhaskar and Navbharat Times. Dainik Jagran has maintained its leadership, commanding a readership of 21.2 million per day. Readership of Dainik Jagran increased by 120.8%, from 9.6 million as per NRS 2000 to 21.2 million as per NRS 2005. This increase in readership was more than the combined growth of readership in the next four of the top five newspapers and was more than three times the growth in readership of the top six English daily newspapers. The growth in the readership and circulation reflected in the top line of the company, which shows a CAGR of 19% in the last five years to Rs 371.46 crore in FY 2005.

• More than 60% of the revenue in FY 2005 and six months ended September 2005 comes from advertising, which is the mainstream of revenue for any company in the print media industry. Ad-spends in India, as a percentage of GDP, is only 0.34%, which is very low compared to countries like Thailand (1.43%), China (0.54%), and Mexico (0.52%). Along with the fast growing GDP, India’s ad-spend as percentage to GDP is also expected to increase to 0.54% of GDP by 2015. Print media accounts for around 46% of the total advertisement spend. As Dainik Jagran has a pan-India presence and its expansion initiatives on various fronts are likely to strengthen its position, it can expect to grasp a larger share of ad-spend in India.

• Expanding printing capacity, particularly colour capacity, and modernising and upgrading existing printing centres in Noida are in addition to installing computer to plate (CTP) printing at some printing centres. The new modern printing facility will increase the ability to print color copies by fourfold. With this, ad rates are expected to go up. As colour advertisement is at a 70% premium to black-and-white ads, margin will be higher

Weaknesses

• On its strong foothold in the vernacular segment, Dainik Jagran’s revenue has shown robust CAGR of around 19% in the last five years to Rs 371.46 crore in FY 2005. However, in the same period, Jagran Prakashan’s bottom line has shown a negative CAGR of around 31% to Rs 1.54 crore mainly on high prices of newsprint, which is the main raw material for the company. The operating margin has kept fluctuating in the last five years, witnessing a low of 1.6% in FY 2002. According to BMO Financial Group Commodity Price Index, the international newsprint prices are forecast to move up to $645 per tonne by 2007, from $609 per tonne in 2005.

• The capital expenditure plans are likely to be commissioned only between March 2007 and March 2008 and yield benefits from FY 2008 onwards.

• Jagran Prakashan intends to venture into outdoor advertising and also launch a second brand, a Hindi tabloid in line with the Times of India's recent English tabloid, Mumbai Mirror. Around Rs 43 crore and Rs 40 crore from the issue proceeds will be invested in launching the tabloid and expanding the outdoor advertising business, respectively. Looking at the existing players in these businesses, Jagran Prakashan will have to face tough weather, at least in the initial years of operation, till the time the new businesses find acceptability in the market.

Valuation

FY 2005 was one of worst years for Jagran Prakashan as its operating profit margin (OPM) crashed by 720 basis points (bps) to 5.6%. Net profit was just measly Rs 1.54 crore on sales of Rs 371.54 crore. However, financial performance has improved, with the six months ended September 2005 OPM up by around 600 bps to 11.5%, leading to improved net profit of Rs 11.97 crore. Annualised six-month EPS on post-issue equity works out to Rs 4.6.The offer price band of Rs 270-324 discounts this 58 to 70 times. On the other hand, HT Media, which has revenue almost double the revenue of Jagran Prakashan, with better profitability margin, trades at a PE of around 62 times its annualised half-yearly EPS of Rs 7.6. Another listed player, Deccan Chronicle, trades at a PE of 27 times the first-half annualised EPS.

Notably, INM had acquired a pre-issue 26% equity stake at Rs 144 per share (adjusted for bonus) in June 2005, which is at a 50% discount to the current offer price band. Post-issue, INM will hold a 20% stake, leaving scope for only another 6% foreign stake as the cap for foreign stake in the print media is 26%.

Pantaloon And Reliance Capital

Pantaloon to set up 51 malls in 3 years
-Priyanka Sangani - Business Standard

The Pantaloon group-promoted Kshitij will be setting up 51 malls over 14.5 million sq ft over the next three years. Shishir Baijal, chief operating officer, Kshitij, said, “These malls will be called Kshitij Retail Destinations and will be spread over 29 cities ranging from Mumbai and Chennai to smaller ones like Siliguri, Guwahati and Ranchi. This is the first time a chain of malls will have a pan-India presence.” ......... Read Full Story

Reliance Cap to foray into online broking

-Ashish Aggarwal - Business Standard

Reliance Capital is set to foray into online equity broking services through a new subsidiary, tentatively named Reliance Online Trading Services. The company will operate through the network of Reliance Capital, and a portal is being set up for offering retail online trading services. Reliance Capital, when contacted, neither confirmed nor denied the development. The company is currently putting in place a team to start operations shortly. The online equity trading services segment, which constitutes over 5 per cent of the entire equity broking sector, is dominated by ICICIdirect.com with over 7 lakh customers. Indiabulls and Kotak Securities are the other major players in online trading. ....... Read Full Story

Breach Of Trust

Sebi has issued directions to Mathew Easow, Chairman of Mathew Easow Research Securities Limited, in the matter of stock recommendations given by him on moneycontrol.com in certain shares and the dealing in those shares by Mathew Easow and his associate entities.

Sebi has issued directions to Mathew Easow, Chairman of Mathew Easow Research Securities Limited, in the matter of stock recommendations given by him on moneycontrol.com in certain shares and the dealing in those shares by Mathew Easow and his associate entities.

As a part of ongoing analysis, Sebi found that the recommendations given by Mathew Easow, when compared with the trading pattern of his associate companies - Mathew Easow Research Securities Limited and Mathew Easow Fiscal Services Limited clearly indicated that Mathew Easow took an opposite trading position in the scrips of Kalpana Industries Ltd, CESC Ltd, Ahlcon Parenterals India Ltd and Albert David Ltd. Easow had recommended these stocks to investors at large, but he had also started selling the stock after giving an opposite advice to the market.

The Sebi release says, "This indicates an obvious attempt to mislead the investors through investment recommendations, in a striking posture of ambivalence coupled with interest. It was apparent that Mathew Easow was purveying information to the public, which he himself did not appear to believe to be true to make unfair gain for himself at the cost of lay investors."

The act of Mathew Easow and his associate entities is in violation of Regulation 4(2) (f) of Sebi Regulations, 2003 (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market). Sebi has cautioned investors to take informed decisions without being influenced by such recommendations given in the public media.

Sebi has directed Mathew Easow to cease and desist from giving any recommendations about any investment in the securities market in any public media, which amounts to violation of regulation 4(2)(f) of the Sebi Regulations, 2003. (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market). Further, Sebi has asked Mathew Easow Fiscal Services Limited to cease and desist from committing any violation of clause B(7A) of the Code of Conduct for Stock Brokers laid down in Schedule II, read with regulation 7 of the Sebi (Stock Brokers and Sub-brokers) Regulations, 1992.

Also, Sebi has asked Mathew Easow Financial Services to cease and desist from committing any violation of clause B(7A) of the Code of Conduct for Sub-brokers laid down in Schedule III read with regulation 15 of the Sebi Regulations, 1992. (Stock Brokers and Sub-brokers) .

Sebi has also asked moneycontrol.com being a website with wide reach, to ensure that persons with proven credentials of giving fair and truthful information and analysis alone, are allowed to give advice on the portal so that the portal is not misused by persons giving advice purely on considerations of personal gains.

Some News Are Hot Tips

Who needs tips when you have some woderful news regarding your stocks. Just look out for such great news and you have a multibagger in your hands.

Next From ITC: Soaps & Shampoos
- by The Economic Times

After a brief lull, competition is all set to hot up in the personal care segment with ITC set to officially launch its soaps and shampoos under a brand name, Superia, early next month. The products are being priced competitively to take on competition from HLL and P&G. Trade sources said that HLL had been tracking the market closely to meet ITC’s entry-market tactics.... Read Full Story

Greenply To Reposition As Interior Infrastructure Company

GIL is set for an image makeover. After finalising its plan of adding particle board to its product portfolio, the company has drawn up a strategy to reposition itself as an `Interior Infrastructure Company' rather than leaning on its image as a mere plywood producer. The company plans to concentrate on value-added products to enter the mid-market segment. For this, a new manufacturing unit will be set up in Uttaranchal. The mid-market segment in the plywood industry is growing at the fastest rate and accounts for 40-45 per cent of the total plywood business in the country. The new unit will be Greenply’s fourth manufacturing facility, the existing units are located in Bengal, Nagaland and Rajasthan (for particle board lamination). The manufacturing unit in Uttaranchal will be set up at an estimated cost of Rs 80 crore, which will be funded by a debt and equity mix. The plywood business of the company currently comprises 35 to 40 per cent of its Rs 300-crore turnover, while laminates constitute another 45 per cent. The company is also expanding the capacity of its factory at Joka in Calcutta by 20 per cent at a cost of Rs 5 crore and that of the Nagaland unit at a cost of Rs 4 crore. Last fiscal, the company had increased the capacity of its Alwar unit in Rajasthan, which makes laminated particle boards, by 50 per cent at an investment of Rs 12 crore.

Patel Engineering : Simba Becoming Lion King

Patel Engineering has reported a 123.5 percent rise in net profit at Rs 25.32 crore for the third quarter ended December 31, 2005 as compared to Rs 11.32 crore in the corresponding quarter previous year. Total income grew by 16.4 per cent to Rs 237.32 crore as against Rs 203.87 crore during the same quarter previous year. The board of directors of the company at its meeting held today have declared second interim dividend of 50 per cent (Re 0.50 paise per share) on its equity shares. Meanwhile, the company posted a 95.42 percent rise in net profit at Rs 49.66 crore for the nine month period ended December 31, 2005 compared to Rs 25.41 crore in the corresponding period previous year. The Earnings Per Share for the nine months period ended December 2005 stood at 9.93 compared to Rs 5.08 corresponding pervious year.

The Rs 800-crore Patel Engineering Ltd (PEL), a civil engineering company, is diversifying into a number of related areas. According to a reliable source, around Rs 500 crore will be raised to finance the plan, repay certain debts, and boost capital expenditure and working capital. An enabling resolution for fund-raising will be placed before the shareholders on January 30. The company has property in Mumbai, which is worth Rs 200 crore at current market prices. The property will be developed on a commercial basis to kick-start the company's real estate venture. Plans are likely to be given shape in 2006-07. PEL is also looking at hydro-power generation through installation of a project in the North-East. The company is working on acquiring an overseas engineering company with specialisation in civil construction work. PEL had earlier acquired two US based engineering companies - ASI RCC Inc and Westcon Microtunneling Inc - for their specific engineering expertise in roller compacted concrete (used in construction of dams) and micro-tunnelling technology. The total investment in acquiring the two overseas companies was around $ 7.5 million.

BlogMad !

Just came across this new idea, called BlogMad which intends to promote traffic to blogs. Seems like another one of those referral sites ? Nah, I feel this has got more.

All Bloggers, head over to the signup page and check it out !

P.S. : It hasn’t been released it so you get a sneak chance of getting in and earning more traffic..

Guess The Future

How will you know that a company is on the path of growth. Well, try to guess the next logical step, if the company is doing better than what you thought it might do, then surely it is on the right track. Many companies try to diversify into areas which are not their forte, may be because the grass always seem greener on the other side of fence. That risk should be taken only when a company reaches its saturation point and no vertical diversification is possible. Focus is very important and plays a vital role in the growth of a company (Lesson from the book Focus by Al Ries). For example, two companies come to my mind Zee Telefilms and Adlabs, only thing common to them is that both cater to Entertainment Industry. Zee seems to have lost focus and marketshare while it was very nicely positioned to do all that Adlabs is doing.

For instance, Adlabs is trying to become Entertainment behemoth and is doing right things to become one. Adlabs is looking at straddling the entire value chain of the entertainment content carriageway, the Anil Ambani group is ensuring its footprints across every possible facet of entertainment. Ranging from television to radio to films to exhibition to home video, the ADAE group seems to have a blueprint for every division in place, and the kick-off into the media and entertainment segment does not seem too far off. FM radio seems to be the first initiative that will roll out. As of now, Adlabs has bagged 26 licenses in all, making it the largest player in terms of number of licenses owned including stations of existing players. While work is still in progress on ADAE’s direct-to-home (DTH) venture which is being called Reliance Bluemagic, the group is optimistic about beginning its DTH service by Diwali this year. It is expecting allotment of six transponders on INSAT 4B by July this year.

On the film production front, Adlabs Films is looking at investing Rs 50 - 60 crore every year and has already tied up with Ram Gopal Varma, Prakash Jha, Ramesh Sippy and Vipul Shah. Adlabs is targetting 10 films every year. Experts point out that once Adlabs has a large network of theatres, it will be possible for the group to digitally transmit a movie from one centralised location to all the theatres through Reliance Infocomm’s existing fibre optic network. Adlabs is also venturing into the overseas distribution of movies and have already pocketted Kkrish, Babul, Janeman and Salaam-e-Ishq. for distribution. Shetty pointed out that the effort was to extend the current international network by releasing more prints into an additional 20-30 mainstream cinemas.

Now also checking out the home video segment, Adlabs is looking at taking the acqusition route as a part of the company’s plan to emerge as a big player in the rapidly growing segment. Adlabs had sounded out all the established players in the industry for possible buy-outs. The list includes Shemaroo, Excel Home Videos and Ultra Group.

After aquiring a content rich company, Adlabs can use Fibre Optic backbone of Relaince Communication to distribute the same through Video On Demand services or IPTV. There are many possibilities, let's see whether Adlabs can deliver.

The Bulls, The Bears And The Farm

The Bulls

A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic, believing that stocks will go up, he or she is called a "bull" and said to have a "bullish outlook".

The Bears

A bear market is when the economy is bad, recession is looming, and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".

The Other Animals on the Farm - Chickens and Donkeys

Chickens are afraid to lose anything. Their fear overrides their need to make profits and so they turn only to money-market securities or get out of the markets all together. While it's true that you should never invest into something over which you lose sleep, you are also guaranteed never to see any return if you avoid the market completely and never take any risk.

Donkeys are high-risk investors looking for the one big score in a short period of time. Donkeys buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles. Professional traders love the donkeys, as it's often from their losses that the bulls and bears reap their profits.

What Type of Investor Will You Be?

There are plenty of different investment styles and strategies out there. Even though the bulls and bears are constantly at odds, they both can make money with the changing cycles in the market. Even the chickens see some returns, though not a lot. The one loser in this picture is the donkey.

Make sure you don't get into the market before you are ready. Be conservative and never invest in anything you do not understand. Before you jump in without the right knowledge, think about this old stock market saying:

Bulls make money, bears make money, but donkeys just get whipped!

Adlabs - On The Prowl

Following Report was taken from Business Standard.

On the prowl for companies in home video segment.

Anil Ambani is now getting into the home video segment. The Anil Dhirubhai Ambani Enterprise (ADAE)-managed Adlabs Films is in talks with leading players in the segment for a possible acquisition.

Manmohan Shetty, chairman and managing director, Adlabs, told Business Standard: "We are in talks with the leading players of the home video segment for an acquisition. Nothing has materialised as yet."

One of the conditions for the acquisition was that the company must have a robust distribution network, he added.

Investment banking sources said Adlabs had sounded out all the established players in the industry for a possible buy out. The list includes Shemaroo, Excel Home Videos and Ultra Group. They added the deal should be clinched in the next quarter.

When contacted, Shemaroo, Excel Home Videos and Ultra Group confirmed that they wanted to raise funds through dilution of their shareholdings and said they were in talks with Adlabs. However, they were still debating whether to exit the business completely or retain a part of their holdings.

Susheel Kumar Agarwal, managing director, Ultra Group, said he wanted to raise Rs 100 crore by selling 25 per cent stake, which valued his company at Rs 400 crore.

"We are looking at an equity partner and are currently in talks with several national players including Adlabs as well as international players, " he said, adding that the international companies might offer a better valuation. The Ultra Group will entrust an investment banker with the task of fund raising.

M N Kapasi, managing director, Excel Home Video said, "We are in talks with several companies, and Adlabs is one of them. We are currently chalking out our business plan and are also in talks with two venture capitalists." Excel has appointed Yes Bank for looking at strategic investers.

Hiren Gadda, business development head, Shemaroo Videos, pointed out, "It is too premature to talk about the any deal right now. Although, Adlabs is looking at some kind of tie-up with us, but definitely not for acqusition."

The other players who also eyeing the home entertainment sector are Sahara One and UTV, who currently already are into production and distribution of movies.

The official home video entertainment market size currently is between Rs 180 - 190 crores and the total market size is close Rs 1000 crore.

Friday the 13th - Spooky Or Not

Sensex was down 6.69 points on Friday the 13th (spooky day). Some of my favourite stocks mentioned below performed very nicely and some hit consecutive upper circuit. I think it is the right time to book partial profit and keep some cash. While doing so don't lose your position if you have acquired the stock cheap.

1. ABC India up Rs. 2.60 (4.97%)
2. Alphageo up Rs. 4.95 (4.95%)
3. Aztec Software up Rs. 14.60 (7.58%)
4. Balaji Amines up Rs.5.50 (2.35%)
5. Batliboi up Rs. 17.65 (14.86%)
6. Centurion Bank up Rs. 1.45 (6.52%)
7. Crest Animation upRrs. 7.35 (4.99%)
8. Encore Software up Rs. 1.95 (4.99%)
9. Hind Org Chem up Rs. 2.10 (4.93%)
10. IVRCL Infra up Rs. 33.90 (4.26%)
11. Patel Engg. up Rs. 19.00 (4.99%)
12. Punj Lloyd up Rs. 24.30 (2.40%)
13. Ratnamani Metal up Rs. 11.00 (4.09%)
14. Reliance Infra up Rs. 32.00 (9.99%)
15. Simplex Infra up Rs. 50.25 (3.31%)
16. Suashish Diamonds up Rs. 4.90 (4.80%)
17. TTK Prestige up Rs. 6.25 (4.99%)
18. Vadilal Industries up Rs. 3.10 (9.87%)
19. Yes Bank up Rs. 4.45 (6.38%)
20. Zodiac Clothing up Rs.15.40 (5.32%)

Some Important News :

• Adlabs Films on Friday said it has got the shareholders nod for raising $100 Mn. through international offerings. Earlier,Adlabs has walked away with stations in cash-rich Delhi, Mumbai, Kolkata, Chennai and Bangalore. Adlabs, which is emerging as a major player in the FM radio sector, lost out in a couple of cities. However, it won the only licence for Srinagar for Rs 61 lakh. It is also one of the two successful bidders in Chandigarh, for which it bid Rs 15 crore.

• Shloka Infotech Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on January 16, 2006, inter alia, to consider, if thought fit the following business:
  To approve and submit the draft Scheme of Amalgamation under Sec. 391 to 394 of the Companies Act, 1956, of:

1. Shloka Publications Pvt Ltd
2. Shloka Graphics Pvt Ltd
3. Shloka Peripherals Pvt Ltd
4. Shloka Academy Pvt Ltd
5. Birla Lifestyle Pvt Ltd
6. Viking Travels Pvt Ltd
7. Shloka Finance Consultancy Pvt Ltd.

With the company with effect from April 01, 2005 along with the requisite documents.

Reliance Infra - Fully Reliable

Reliance Infra is now under the control of Mr. Mukesh Ambani.

Reliance Industrial Infrastructure Ltd has informed BSE that The Board of Directors of the Company, at its meeting held on January 10, 2006, accorded its consent to seek the approval of the Members of the Company for Reliance Industries Ltd ("RIL") to be recognised as the new Promoter of the Company in place of Shri. Satyapal Jain, the existing Promoter of the Company, and for change in control of the Company in favour of RIL. RIL has communicated its consent to the said proposal subject to the Company obtaining the Members approval in accordance with law.

This change would occur subject to passing by the Companys members of a special resolution through Postal Ballot under the provisions of Regulation 12 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 ("Takeover Regulations").

RIL is already holding 46.23% of the paid-up equity share capital of the Company. No further shares of the Company are sought to be acquired by RIL at this stage.

Since the above would be within the scope of the provisos to Regulation 12 of the Takeover Regulations, RIL would not be required to make a public announcement / offer under the Takeover Regulations.

Saregama - High Fidelity

Fidelity International has informed the Exchange that Fidelity International Limited ("FIL") and its direct and indirect subsidiaries and FMR Corp and its direct and indirect subsidiaries has acquired 58,369 shares aggregating to 0.40% of the share capital of Saregama India Limited on January 09, 2006. The mode of acquisition is market purchase and the shareholding of Fidelity International Limited ("FIL") and its direct and indirect subsidiaries and FMR Corp and its direct and indirect subsidiaries after the said acquisition is 1,116,218 shares aggregating to 7.61% of the share capital of Saregama India Limited.

Centurion Bank Of Punjab - Good Performance

Exceptional set of numbers from Centurion Bank Of Punjab. For the Quarter Ended Dec. 05, Net Profit is up from Rs. 71 Million to Rs. 233 Million a jump of 227.7% (YOY) and 11.3% (QOQ), Operating Profit up from Rs.73 Mn. to Rs. 349 Mn. a jump of 376.4% (YOY) and 28.8% (QOQ).

Total Advances also increased to Rs. 56948 Mn. a jump of 196.5% (YOY) and 11.4% (QOQ). A noticing factor is that the Net Non-Performing Assets are down to 2.6% (3.4% in QE Dec.04).

The Bank operates through 240 Branches and 388 ATMs and it has a Presence in 122 cities across India. The stock was up more than 5% in the mid-session.

A Volatile Day

Wow! What a day. Sensex opened down with a gap of more than 100 points and finally ended with a loss of 64 points. Even after that my stocks did well. Some stocks which outperformed today are :

1. Batliboi up 6%
2. Patel Engineering up 5%
3. Reliance Infra up 10%
4. Simplex Infra up 3%
5. ABC India up 4.91%
6. Alphageo up 5%
7. Amara Raja Batteries up 6.13%
8. Balaji Amines up 3.63%
9. Emami up 2.28%
10. Encore Software up 4.97%
11. Hind Org Chem up 5%
12. Infomedia up 9%
13. Mangalam Timber up 7.4%
14. ORG Info up 4.27%
15. Saregama up 13%
16. Vadilal Industries up 10%.

Sterling Holiday Resorts - Private Placement

Sterling Holiday Resorts, who has pioneered the concept of Time Sharing Holiday in India, has allotted about 9.04 lakh shares of Rs 10 each for cash at a premium of Rs 33 per share to Infopile India against a conversion of 9.04 lakh warrants of Rs 43 per warrant.

It has also allotted 10 lakh shares of Rs 10 each for cash at a premium of Rs 33 per share to Principal Capital Markets against a conversion of 10 lakh warrants of Rs 43 per warrant.

Simplex Infra - Road To Prosper

Simplex Infrastructures Ltd. (formerly known as Simplex Concrete Piles (I) Ltd.) has bagged 3 projects with a total worth of Rs.324.5 crore. The company has secured a project worth Rs.141.42 crores from Government of Manipur, a project worth Rs. 115.57 crores from NHAI for widening and strengthening to 4-lane of existing single / intermediate lane carriageway of National Highway No. 57 (Simrahi - Kosi Eastern Bund Section) in the State of Bihar and a project worth Rs. 67.51 crore from Rail Vikas Nigam Ltd. for construction of bridges across river Mahanadi and a new BG line between Haridaspur and Paradeep of East Coast Railway in Orissa.

Commenting on these new projects bagged, Mr. Amitabh Das Mundhra, Director, Simplex Infrastructures Ltd said, "We have recently changed our name to Simplex Infrastructures Ltd and securing these projects worth Rs.324.5 crore across varied sectors is completely in sync with our new identity as well as our strength of being a complete infrastructure solution provider."

IVRCL Infra - Orders Flowing In

IVRCL Infrastructures and Projects Limited has announced that during the months of November and December 2005, the order book position of the company has improved by Rs. 477.43 crore. The orders that the company has bagged include road contracts for integrated improvement-cum-performance based maintenance on Alwar to Sikandra Road in Rajasthan at a cost of Rs. 109.64 crore and Pachpadra to Ram ji ki Gol Road in Rajasthan at a cost of Rs. 150.09 crore.

This apart, IVRCL has bagged water and environmental projects worth Rs. 154.95 crore and building projects worth Rs. 62.75 crore.

Infomedia - Buy Back Means Confidence In Company

Infomedia India Limited has informed the Exchange that the Board of Directors of the Company have considered and approved the Scheme of Arrangement for buy back of the Equity Shares of the Company under Section 391 of the Companies Act, 1956. The company has further informed that, in its pursuit of inorganic growth, the Company recently announced the acquisition of Keyword Group Limited and Cepha Imaging Pvt. Ltd. Its other strategic initiative was the Joint Venture with Reed Elsevier. After committing funds towards these strategic ventures, the Company is desirous of returning surplus funds to its shareholders and restructuring its capital base. This initiative is also aimed at increasing shareholders value.

The salient features of the Scheme are as under :- 1) The Company shall buy back its Equity Shares representing 14% of its paid-up Equity Capital. The buyback shall be across the board from all the shareholders. 2) The consideration for buy back shall be Rs.245/- per Equity Share. 3) The shareholders holding less than 50 Equity Shares per ledger folio / Client ID will have an option to tender their entire holdings over and above 14% of their shares, at the consideration of Rs. 245/- per share. 4) The shares so bought back shall be cancelled. 5) The Scheme as envisaged will not affect the shareholding pattern of the Company materially. 6) The Scheme as approved by the Board is subject to such approvals as may be required including that of the Stock Exchanges, Bombay High Court, Shareholders and creditors.

Now Private Foreign Money Coming To India

Franklin Templeton Investments manages assets to the tune of nearly USD400 billion globally, but when it comes to his personal cash, its Chairman Charles B Johnson, seems to prefer the India story. Charles Johnson, in his personal capacity is planning to launch a private equity fund in India called Tano Capital. This new private equity business will be completely unrelated to its asset management business in India.

Tano Capital will begin with an initial corpus of USD35 to 50 million, belonging to Johnson. The fund will be managed by Hetal Gandhi, head of investment banking at IL&FS and Carlton Perriera, head of Corporate Finance at KPMG.

According to the Forbes Billionaire list, Charles Johnson has a net worth of USD2.5 billion.

Aztec Software - Good Numbers

Aztec's net profit jumped 114% to Rs 9.96 crore (Rs 4.65 crore). Total revenue rose 107% to Rs 52.98 crore (Rs 25.59 crore). Aztec delivers services in five key technology areas of data management/business intelligence, integration engineering, mobile applications, secure identity management, and web services. Within these technology areas, it provides software product engineering, application development and integration, migration & porting, testing and quality assurance, maintenance & technical support, as well as professional services.

Aztec plans to invest about Rs 40 crore in a 1,500-seat centre at Hinjawadi in Pune. Aztec, which currently functions from four locations in Karnataka and one each in the US and UK, will use the Pune facility to strengthen its existing businesses and woo new clients.

TV 18 Marching Ahead

Reliance Capital, Norwest Venture Partners & TV18 Group have come together to provide initial funding for Yatra Online, a centralised travel services company. The founders of Yatra are non-resident Indians (NRI) and "seasoned travel industry executives" who have returned to India to launch the first online and centralised travel services company of its kind, said a joint statement from the funders. The statement did not specify how much funding is being received by Yatra. The founders, Mr Dhruv Shringi and Mr Manish Amin, bring a combination of 45 years of travel experience and 15 years of online travel experience to Yatra, said the statement.

The founders helped build and manage one of Europe's largest online travel businesses, Ebookers Plc, which was recently acquired by travel giant Cendant Corporation (market capitalisation: $17.98 billion) for $410 million, it said. "We are very excited about our investment in Yatra and the market opportunity the company has targeted. Internet penetration in India is only in its infancy and investing in companies with sound business models that leverage the Internet to reach today's consumers is a growing trend for our firm," said Mr Promod Haque, Managing Partner of Norwest Venture Partners and board advisor to Yatra. The investors are also committed to supporting Yatra through its subsequent stages of growth, said a statement from the funding companies.

Yatra will help businesses and consumers to book airline, railway and bus tickets and reserve hotel rooms and car rentals across 5,000 large cities and rural areas in India by calling Yatra's call centre, or by going to the Internet Web site http://www.yatra.in/, or through services provided on mobile handsets.

Earlier, Television Eighteen India (TV18) reported a strong 55% year-on-year and 23.7% quarter-on-quarter growth in its consolidated revenues for Q3FY2006 to Rs38.1 crore backed by the strong performance of the news and Internet & content operations. The operating profit margin (OPM) was maintained at 51.3% and the operating profit grew by 58% year on year (yoy) and by 20.7% quarter on quarter (qoq) to Rs19.6 crore during the quarter. Due to higher depreciation and interest cost, the consolidated net profit grew by a slower 47.1% yoy (19.6% qoq) to Rs12.3 crore. I believe that TV18's business model has become more robust with the inclusion of the channels Awaaz and CNN-IBN in the bouquet. Looking at the company's robust business model, the stock is attractively quoting at 14.6x its FY2007E earnings per share (EPS) and 8.6x its FY2007E enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA).

A Comprehensive List

Many Analysts say that an ideal portfolio should contain lesser number of scrips so that it is managable. I think the greater the number of scrips the better, and if you can't manage your portfolio than either go for Mutual Funds or Portfolio Management Services. Believe me ONE good stock can make all the difference but the problem is, you don't know which one. Therefore, build your portfolio with maximum number of good stocks, somewhat Peter Lynch style.

I am providing a comprehesive list of shares which are my favourites, I don't know whether it is right time to buy them but they will perform better and beat the broader market. Some are speculative or in nascent stage. I will not provide datas because all the datas and figures you require are available at the websites of NSE, BSE, SEBI, Moneycontrol and numerous other websites. I will try to explain Investment Rationale behind every stock whenever I get time. This is not a final list and stocks will be added and deleted periodically. Many stocks are common with the recommendations of leading Brokerage Houses and Reputed Analysts. All the rates are from BSE (Closing 30.12.05).

Happy Investing.........

1. 3i Infotech - Rs. 191.15
2. ABC India - Rs. 47.75
3. Adlabs - Rs. 340.65
4. Aftek Infosys - Rs. 115.65
5. Agro Tech Foods - Rs. 125.10
6. Alphageo - Rs. 95.50
7. Amara Raja Batteries - Rs. 193.00
8. Aztec Software - Rs. 185.20
9. Balaji Amines - Rs. 227.30
10. Batliboi - Rs. 104.70
11. Bilcare - Rs. 640.05
12. Biocon - Rs. 493.75
13. Centurion Bank - Rs. 21.55
14. Crest Animation - Rs. 141.10
15. Crew B.O.S. - Rs. 172.30
16. Elder Pharma - Rs. 262.80
17. Emami - Rs. 127.25
18. Encore Software - Rs. 30.15
19. FCI OEN Connectors - Rs. 407.55
20. Flex Industries - Rs. 101.90
21. Gateway Distripark - Rs. 275.95
22. Genus Overseas - Rs. 156.85
23. Greenply - Rs. 94.75
24. Hind Org Chemicals - Rs. 40.85
25. Hitachi Home - Rs. 87.00
26. Honeywell Automation - Rs. 1088.45
27. Infomedia India - Rs. 178.55
28. ITC Ltd. - Rs. 142.00
29. IVRCL Infra - Rs. 733.90
30. Jindal Stainless - Rs. 97.40
31. Jyoti Structures - Rs. 335.80
32. Kajaria Ceramics - Rs. 45.70
33. Mangalam Timber - Rs. 42.90
34. McDowell - Rs. 496.75
35. Mirc Electronics - Rs. 21.90
36. ORG Informatics - Rs. 172.55
37. Pantaloon Retail - Rs. 1696.05
38. Patel Engineering - Rs. 347.95
39. Pokarna Ltd. - Rs. 166.75
40. PSL Limited - Rs. 277.85
41. Punj Lloyd - Rs. 1050.00
42. R S Software - Rs. 116.45
43. Ramco Systems - Rs. 317.25
44. Ranbaxy Labs - Rs. 362.35
45. Ratnamani Metal - Rs. 270.60
46. Raymond - Rs. 403.95
47. Reliance Infra - Rs. 293.80
48. Sangam India - Rs. 67.10
49. Saregama India - Rs. 226.60
50. Satnam Overseas - Rs. 87.15
51. Savita Chemicals - Rs. 378.75
52. Shashun Chemicals - Rs. 84.35
53. Shipping Corp. - Rs. 162.85
54. Shloka Infotech - Rs. 21.80
55. Simplex Infrastructure - Rs. 1501.05
56. SPEL Semiconductor - Rs. 21.05
57. Spicejet - Rs. 82.45
58. SREI Infrastructure Finance Ltd. - Rs. 63.25
59. Sterling Holiday - Rs. 70.52
60. Suashish Diamonds - Rs. 104.60
61. Surya Pharma - Rs. 140.65
62. Surya Roshni - Rs. 64.15
63. Suven Life Sciences - Rs. 79.05
64. Tata Steel - Rs. 380.30
65. Transport Corporation of India - Rs. 279.00
66. TTK Prestige - Rs. 127.45
67. TV 18 - Rs. 389.30
68. UB Holdings - Rs. 524.85
69. Usha International - Rs. 290.55
70. Vadilal Industries - Rs. 27.00
71. Viceroy Hotels - Rs. 112.00
72. Wockhardt - Rs. 445.00
73. WS Industries - Rs. 60.10
74. Yes Bank - Rs. 68.55
75. Zodiac Clothing - Rs. 294.95

A Matter Of Trust

It is very wise to follow a good Analyst or Brokerage House. They know what's cooking in the Corporate World and are well positioned to know the inside information. Often, there are a lot of news and triggers after they recommend a stock. Try yourself, whenever you see a recommendation of not-so-popular stock from a reputed Analyst or Brokerage House, track it, you will see a lot of favourable news flow after a short period. Here, I am talking about only Reputed Analysts and Brokerage Houses, and not those who try to offload junk by pushing tips in a hush-hush manner. Remember one thing that when a big operator wants to manipulate then nothing is impossibe and even channels and news papers, you trust blindly, can also be manipulated accordingly.

So, always trust Reputed Analysts and Brokerage Houses because they have their reputation at stake and are least likely to give wrong information or recommendations.

I too follow a lot of Brokerage Houses and listen to them carefully whenever I get a chance. My favourites are :

1. Sharekhan

2. Motilal Oswal

3. Kotak Securities

Among Individual Analysts, I like :

1. Ramesh Damani

2. P. N. Vijay

3. S. P. Tulsiyan

4. Ashwini Gujral

Right Stock - Wrong Time

Many analysts say time doesn't matter and a High Growth story always deserves Higher PE ratio. I disagree, Right Stock bought at the Wrong Time is no less than disaster. I have purchased Gillete on 24.02.2000 at Rs. 2100.00 (then known as Indian Shaving Products). The story was good and there was a huge growth potential for the company but the stock seems to be discounting the earnings of further 8 to 10 years at that time, and that was too much. Even after 5 years the stock is quoting at Rs. 800.00 after seeing a low of Rs. 200.00 (approx.) and mind it, there has been no Stock Split or Bonus or Right Issues. God knows what went wrong, I doubt people are shaving less these days, otherwise the company has good management, innovative R & D department and is now a part of Procter & Gamble. I am still hoping for some spectacular performance.

Another stock I bought the same day was Hindustan Lever at Rs. 300.00. Because all the analysts, those days, were giving example of HLL and showing that if you have bought HLL gradually over a period of time, you would have made money anyway. But, since 2000 HLL is grossly underperforming the market. That doesn't mean HLL & Gillete are bad stocks, only the timing was wrong.

It also proves, that I am not a good timer of stocks. I generally buy a good story and keep it until I am convinced that the story is over. Sometimes it is also beneficial to switch the stock when it has reached a Saturation Point and further growth is very difficult. On the contrary, if the stock is not performing but the company is doing good business then hold it tight. Two or Three bad years doesn't matter, analyse the Financial Statements closely. An increase in R & D expenditure or Capital expenditure augurs well. I made money in several such stocks, for example : PSL Ltd., Suven Life Sciences, Shashun Chemicals, Simplex Concrete Piles, Zodiac Clothing, Honeywell Automation, Pantaloon Retail, ICICI Bank to name a few. The list is endless.

Try to spot the stock early and avoid it when it has become very popular and everybody is recommending it. One way is to look around you, use your common sense and see what people are buying nowadays the most, which Brand has established itself as a quality product and is rightly priced. You will see a lot of stock tips scattered around you, they are hidden in the products and services you mostly use.