Summary: -Financial Technology one of the favourate of investors floated by Mr. Jignesh Shah. Financial technology has many products working in the financial trading markets. . It has products like ODIN, Inet.net, iWin, FXDirect, etc. These cover all stages of trading – pre trade, trade and post trade. These products cater to Exchanges, Brokers, AMCs,, Depositories, Custodians, Banks, etc.Financial technologies has set up two commodity exchanges Multi Commodity Exchange (MCX) and Dubai Gold and Commodity Exchange (DGCX). Over the next few years the commodities market is expected to experience exponential growth and Financial Technologies should be a huge beneficiary.
And Also has Stake in Singapore Mercantile Exchange.
I am recomending this scrip as MCX IPO is awaiting to enter the markets.
Value of Investment in MCX for Financial Tech=64 p.c. of 2500=1600 crores.
Share Capital of Financial Tech=8.8 crores.
No. of shares=8.8/2=4.4 crores( FV =Rs. 2 per share)
Per share value of investment=1600/4.4=Rs. 363 (approx. close to your figure)
The total value of’s agri produce is equal to US $ 85 billion. Assuming a multiple of 10 times to the commodities futures market the total size should be to the order of US $ 850 billion. It stands at less then US $b 2 billion today.
At a PE of 6.78 the stock looks attractive and cheep.
Paid a divident of 200% this year on a FV of 2.
Market is above 15000 points up by more than 550 points after crude fell below 106 dollar a barrel , this is like 4 month low or something for the crude oil.Thanks to hurricane Gustov which did not do much damage to the oil wealth
Stock Idea From: - www.indianmoneyplus.com Scrip: - LNT BSE Code: - 500510 CMP: - 2562 52 Week H/L: -4670.00 - 2100.00 Target: - 2900 ( Before 3 rd Oct.) Target for long term investors : - 200% returns after Bonus in 2 years.
Summary: - One of the badly beaten out scrip in the Indian markets is LNT. For Short term traders this scrip is excellent as record date for bonus is 3rd of Oct. Technically speaking this scrip shows some positive strength to me. Bonus will pull up this scrip.
A long term bet: - It is India’s largest Engineering and Construction giant. L&T is the best managed company in India – Business Today survey. Larsen and Toubro will benefit from huge infrastructure investments in India and Gulf regions. Strong Order book. L&T will be demerged into Power, IT, Ship building and Railway units along with engineering division. Investors will get very good returns after the demerger.
Verdict: - All the factors are in favour of LNT so I am not adding Key Positive and Key Negative.
Ratings - Short term: - 8/10 Medium Term: - 7/10 Long term: - 10/10 and if possible more than this.
Scrip: - Praj Industry.
CMP: - 172
BSE Code: -522205
52 Week H/L: - 273.45 - 100.15
Market Cap: - 3147.01
Target: - 350 (Only for Long term investors - 2 Years view.)
World Economic Forum (WEF) have bought out a list of 200 growth companies out of which 22 companies are from India. These companies generally considered as having potential to change the global economic landscape. Praj Industry stands at 6th in the Indian List. Summary: - Pune-based Praj Industries is an engineering company and is the market leader in ethanol technology. It provides turnkey project implementation services to set up ethanol distillation units. The company has developed technologies to produce ethanol from a variety of feedstock such as sugarcane, sweet sorghum, corn etc and is trying to develop a commercially viable method to convert cellulose into ethanol.Besides ethanol - which accounts for over 80% of its revenues - the company also carries out distillation for breweries and plans to enter the bio-diesel space. Praj has executed projects in over 35 countries. Over the past couple of years, it has taken steps to strengthen its global presence. These include an acquisition in the US and tie-ups with foreign companies in Europe and Brazil. With this, the company has established its presence in key markets across the world. Key Financials: - Praj's net profit has witnessed a cumulative annual growth rate (CAGR) of 43.2% over the past 10 years, while its net sales have grown by 27.3%. At the current market price of Rs 132.10, the scrip is trading at a price-to-earnings multiple (P/E) of 19.8 based on its earnings in the past 12 months, which is nearly half its P/E just a couple of months ago. Considering Praj's current order book, ability to win new orders and investment in research & development, we expect the company to maintain its EBIDTA margins above 20%. For FY09, we expect Praj to report earnings per share (EPS) of Rs 10.1 . Key Negative: - The shareholding of the promoters and public has fallen, while institutional holding is on the rise. Technicals are not in favour. Key Positive: - Ethanol and bio-diesel are gaining acceptance worldwide as eco-friendly fuels. Ethanol blending has already become mandatory for petrol in a number of countries, including its largest consumer, the US. The proportion of blending is slated to go up, with governments in the US and India mandating 10% blending over the next 2-4 years. The company already has an order book of Rs 900 crore, which will be executed over the next 12 months. Praj is gearing up to cater to the fastpaced growth in future by expanding its capabilities. It has increased its manpower and set up its second manufacturing unit at Kandla SEZ. It has also established a full-fledged research centre for bio-fuels to develop new technologies in this field.
Updates from: - www.indianmoneyplus.com The markets remained extremely choppy through the week gone by with extreme bouts of volatility as it moved towards the end of the derivative settlement for August. This F&O expiry which was among the most uninspiring in the recent past against the backdrop of unusually low volumes and rollovers, however gained momentum on the last day of expiry. Thus even though 75 % rollover in August Nifty futures can be termed as higher when compared to the average of 67 % witnessed in the preceding three months, in absolute terms, the numbers do not enthuse.
Thus both, the bulls and the bears remained perplexed about the near-term prospects of the markets. Fears of further monetary tightening by the Reserve Bank of India to rein in inflation which remained at a 16-year high also haunted the bourses and kept investors on the sidelines for most of the week.
Nevertheless, the marginal decline in the inflation numbers (@12.40% for the week ended 16 August 2008 from 12.63% in the previous week) and strong global cues helped the markets to make a sharp rebound of more than 500 points on the last trading day. Resultantly, the benchmark indices which had remained largely subdued for the large part of the week recovered from its losses to end on a positive note.
Though now, the headline inflation has declined marginally it still remains a concern area for the Indian stock market. This was also reflected in the economic growth for the first quarter of the current fiscal which dipped below the 7.9% mark from 8.8% in the last quarter of the previous fiscal. Meanwhile, sharp appreciation of the US dollar against major G-7 currencies, with the notable exception of the yen caused the Indian rupee to depreciate at an unmatched pace of 4.3% within 13 working days.
However, with growth decelerating there can now be hope that the unabated increase in interest rates could be close to an end. Another important factor that could impact the week ahead is the Nuclear Suppliers Group meeting in Vienna to be held on September 4, 2008 which, if it goes through, could provide some boost to the markets on the upside.
Thus for now, though the stage may seem set for an uptrend in the near term (much would still depend on the global cues) it still remains anchored by the RBI and its hitherto hawkish stance. Hence, with uncertain cues from both, domestic and global markets plus a truncated week ahead, investors would do well to tread cautiously in the near-term, but pouch portfolio picks with a long term perspective. Read more!
Rajesh Exports is involved is business of exporting gold and diamond cutting. Recently this stock has hammered due to weakening rupee. Dollar has appreciated at Rs 44 which come to 17 months low. The second reason why it came down is Gold from 13 K sliped to10.8K.
Rajesh Export now the largest established private gold buyer, accounting for 1.2% of the global gold trade. Having attained this scale of operation, the company is now shifting its focus to find ways of increasing its net profit margin.
In order to meet its objective of increasing its net profit margin, Rajesh Exports has identified three major divers of growth:
Jewellery retailing: increasing presence across value chain by catering to different segments of consumer needs
Diamond jewellery: expanding product range with higher margins
White labels: expanding its market by supplying white labels to retail chain stores across the world.
Key Financials: - Its sales keep on increasing almost every quarter. Before the recent split and bonus of this scrip this was one of the favourate scrip of the investors.
EPS & PE both have bottomed out.
Rajesh Exports Ltd had reported revenue growth of 40.7% on year-on-year basis to Rs 25.25 bn for Q4 FY 08. Profits grew by 46.8% YoY to Rs 489m as against expectation of Rs 528m,according to market analysts.
This was due to high tax outflow in the last quarter, which was not provided for in the previous quarters. Operating margins declined by 298bps YoY to 3.3% due to higher share of its low margin bulk business.
For the year, revenue grew by 25.7% YoY to Rs86.67bn and PAT grew by 103.9% YoY to Rs2.07bn against our expectation of Rs2.11bn and OPM increased by 130bps to 4.4%.
The Real Estate: - Rajesh Exports has about four million sq.ft. land in Bangalore and Kerala. It is now planning to develop these properties and acquire competence in property development by setting up a 100% subsidiary, Bangalore Infra. The company may look at property development as a separate business in future.
Calculations: - Calculating all the above points and the real estate it has the Market cap should be the double of what it is now. So the stock prices will give 100 - 200 % returns in 1 Year.
Positive Factors: -World’s largest gold exporter at lowest cost.
Stock is currently trading at low valuations.
Big order book.
Foreign investors increased their stake by 10% .
FIIs bought this stock at around Rs 95 then why should you wait to grab this stock at Rs 46.
Key Concerns: - Continued volatility in gold prices and adverse market conditions have forced Rajesh Exports, India’s leading gold and diamond manufacturer to go slow on its retail expansion plans.
The 100 Shubh stores which were expected to be rolled out by FY09, has been reduced to 40 due to continued volatility in gold prices and adverse market conditions. It is not expanding its Laabh stores either, and would keep the number of stores at a 30 in
However, the growth in bulk business to Middle East would compensate for the loss of growth in retail, according to company sources.
The company expects its other businesses of bulk exports,white labels and diamond jewellery to more than compensate for the slowdown in its retail division.
The slowdown in its retail business is likely to affect its overall financial performance.
The Real Multibagger.
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