United Bank of India - Fundamental Analysis

We expect the bank to maintain an EPS of 15-18 by FY2013. Even if we take its long term average PE as 5, the price will touch Rs 75-90, appreciating about 20% from here.

Full story

IDFC - Technical Analysis

The 10 days EMA has cut the 20days and 30 days EMA from below on 14th Sep 2012 when the stock was at 134 level. A buy signal has been triggered from that level only.

Full story

LIC Housing - Technical Analysis

LIC Housing was in a trading range of 245 to 280 level for last one year. But in Mid December, It broke out from the level of 280 and touched a 52 week high of 300. After that it went into a sharp correction and again trading in that 280 level. Now in the process the stock has created a bearish Head & Shoulder pattern.

Full story

Infosys - Technical Analysis

No one needs an introduction of Infosys. The IT bellwether is always there in the watch list of a serious stock market investor. This stock has never disappointed long term investors but recently it has been generating opportunities for short term investors too. Just have a look at the white spots in the chart below.

Full story

eClerx - Fundamental Analysis

Excellent growth since inception, high profit margin, and a consistent performance, eClerx has been one of the most interesting companies in last few years. It has a terrific management team that has taken this company from nowhere to a company which generates about 500 crore in revenue today.

Full story

The name is Bond, Inflation Indexed Bond

Written on 15 March 2013 by Pankaj Priyadarshi

Benjamin Franklin once said that the only things certain in life are death and taxes. While taxes may not be true for many people, death is. After...

Total Hits340

Tax implication on bonus shares and stock...

Written on 01 March 2013 by Pankaj Priyadarshi

Companies pay dividends to share the earnings. They do it in two ways, either as bonus share (also known as stock dividend) or cash dividend. In case of...

Total Hits559

Income Tax Planning for 2013

Written on 21 February 2013 by Pankaj Priyadarshi

The season is back, like every year, and the hunt for the best tax saving scheme as well as the best investment has begun. There are some things in life...

Total Hits511

eClerx - Fundamental Analysis

Written by Pankaj Priyadarshi
Wednesday, 13 February 2013 11:55
Summary of Analysis Excellent growth since inception, high profit margin, and a consistent performance, eClerx has been one of the most interesting companies in last few years. It has a terrific management team that has taken this company from nowhere to a company which generates about 500 crore in revenue today. However, short term challenges will be there in managing the growth as we can see from last 3 quarters numbers. The long term prospect of the company depends on how world market recovers from the slowdown. As of now, the stock at PE of 12.93 seems reasonably priced. Investors can make an entry to this stock after looking at FY2013 results. The growth concern remains and unless the company shows good numbers in next few quarters, appreciation of price will be difficult. Our view is that the company will be able to grow its revenue marginally with its EPS being the same in FY2013.
Read more...

United Bank of India - Fundamental Analysis

Written by Pankaj Priyadarshi
Wednesday, 17 October 2012 10:03
Summary of Analysis (Date: 2-Feb-2012) Our analysis is that the United Bank of India is still having some issues with its asset quality (which is not unique to the bank because most of the banks have the same concern). Its loan to the ailing Airline Kingfisher is a concern. Its TTM PE ratio of 3.43 is very attractive with added PB ratio of 0.6. However, its price appreciation will depend much on RBI's interest rate policy and its quarterly results due on this month end. We expect the bank to maintain an EPS of 15-18 by FY2013. Even if we take its long term average PE as 5, the price will touch Rs 75-90, appreciating about 20% from here. *Note: There may be slight difference in data in this report and data from the bank site.*
Read more...

Exide Industries - Fundamental Analysis

Written by Pankaj Priyadarshi
Friday, 20 July 2012 08:13
Summary of Analysis Suppressed margins, average growth in auto and industry, weak economic indicators, and high cost of raw materials have put a dent in the profitability as well as market price of the stock. The PEG ratio at close to 2 is expensive for Exide Industries. Our call on Exide is to wait till next quarter to get more clarity on the growth prospects. In the short term, Exide is range bound between 120 and 140. However, market seems to have discounted the low growth, suppressed margin and other negatives in the price already. The stock price can touch about Rs 130-150 in a year or so. In the short term, Exide price may stick around 130.The long term story depends on how Exide maintains its cost structure and how fast it can scale up to use its added capacity.
Read more...

Cipla - Fundamental Analysis

Written by Pankaj Priyadarshi
Thursday, 07 June 2012 08:49
Summary of Analysis Low growth in revenue and profit over last 5 years, high multiple, and regulatory dependence has made Cipla an overpriced stock. This has happened because of the nature of defensive stocks which Cipla will fall into. Our call in Cipla for short term is to wait for few months for the prices to go down and then enter. In the short term, Cipla price may hover around 250-300. However, its long term story is still robust. Cipla has maintained its margin at a handsome level of 14% to 20% for last 5 years. Going forward, profit margin is expected to remain the same. Investors with longer term horizon can invest in Cipla. With projection of 8% - 11% growth in revenue and net profit over a year, we expect the price of Cipla to be in the range of 300-330 in 1 years’ time.
Read more...

Mahindra & Mahindra - Fundamental Analysis

Written by Pankaj Priyadarshi
Thursday, 10 May 2012 10:29
FY2012 Annual Result Analysis on 31st May 2012 Mahindra & Mahindra announced its annual results on 30th May 2012. The annual growth in revenue and profit was on expected lines as posted in this article (please see below). We projected annual growth of 50% while growth in net profit was expected to be flat to slightly negative. The actual annual revenue and profit growth were 61% and 1.5% as shown below.
Read more...