The BSE Realty index, which declined by nearly 90% over a fifteen month period from December 2007 to February 2009, has jumped by over 170% in just three months from March 2009 to May 2009. The concerns related to liquidity of the real estate companies have been key reasons for the performance of the stocks. Despite that, the companies are trying to improve their liquidity condition by selling equity and assets, raising capital through QIPs or by restructuring debt repayments.

I …

Read complete post >>

In this new series, I would be presenting list of selected few stocks which promise to be great money spinners. Remember, these recommendations are based on my analysis and I would request all my readers to apply their own judgement before taking any call…

In Cash segment:

Scrip name: Hindalco | BUY
Entry: Rs 67 | Stop loss: Rs 65.5 | Exit: Rs 71
Profit: Rs 4

Scrip name: Havells India | BUY
Entry: Rs 237 | Stop loss: Rs 233.9 | Exit: Rs 256
Profit: Rs …

Read complete post >>

What should be your best bet for 2009? Should you invest in Large caps or Small caps?

As a general rule of thumb, “small cap” stocks have a market cap of $1 billion or less. “Large caps,” in contrast, have market cap in the $10 billion range or higher… often much higher. Microsoft and GE, for example, have market caps in the neighborhood of $180 billion as of this writing. Exxon Mobil is worth more than $400 billion!! Small cap stocks …

Read complete post >>

Recommendation: Buy

Current price: Rs 545 (at the time of publishing this tip)

Price target: Rs 850

Key points:

With tea volumes growing moderately in the domestic and international markets, Tata Tea (a strong player in the branded tea markets, both domestic and international) is expanding its domestic as well as international beverage portfolio beyond tea and coffee, which could be a future revenue driver for the company. In line with its strategy, Tata Tea has launched T!ON, a tea and fruit based cold …

Read complete post >>

Recommendation: Hold

Current price: Rs 371 (at the time of publishing this tip)

Price target: Rs 400

Key points:

The outlook continues to be challenging for Mahindra’s automobile as well as farm-equipment segment. Apart from the ongoing economic downturn, the tightening of credit by banks and financial institutions has been negatively affecting the growth. Its Xylo car has been well received in the market, with sales of 4,100 vehicles up till February, while bookings remain strong.
The roll-out of the new products from the M&M stable …

Read complete post >>

(Continued from PART 1) Find below a selective list of TOP 30 companies that have a decent dividend yield history and also have not seen significant erosion in their profitability in the current challenging business environment. The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment in a weak market.

Company Name

Dividend Yield (%)

M-Cap (Rs Cr)

Read complete post >>

The current business scenario has posed challenges for both corporate as well as investors. Corporate earnings have slowed down in the last few quarters owing to various factors like slackness in demand and higher interest cost among other factors. Indian markets have trended down, in line with the global markets. Stock prices have declined significantly across the board and investor return has been muted. In the phase of falling stock prices, dividend yield strategy provides decent and assured returns.

Find below …

Read complete post >>