Hindustan Unilever BSE Code:500696 Volume:4141555 CMP:Rs.203.1
HUL has reported good results in the last quarter. Its net sales grew by 16.8 percent to 3687.4 crore from 3156.1 crore. The bottomline also increased from Rs. 500.03 crore to Rs. 564.2 crore.
The net profit margin increased from 15.66 percent to 16.41 percent, which is a very good sign. HUL is India's a fast moving consumer goods company that caters to everyday needs of nutrition, hygiene, and personal care.
It has many reputed brands. The company is also one of the largest exporters and has been recognised as a Golden Super Star by the Government of India.
There has been a good growth in volumes in this counter and the scrip is currently trading at a CMP of 203.1. Investors can benefit from this counter by taking a medium- to long- term exposure.
Thursday, February 28, 2008
Hot Chips: Indoco Remedies
Indoco Remedies BSE Code:532612 Volume:2787 CMP: Rs.269.65
Indoco Remedies, which is in the manufacturing as well as marketing of formulation and active pharmaceuticals ingredients in India, is expected to witness some upward movements.
It also has research and development activities, where it has invested a huge amount for capacity expansion. The company has also recently acquired one herbal products company, where the growth is expected to be good.
The past financial performance has been good and posted good quarterly growth. The scrip has received renewed interest and is trading at a high volume. The recent decline in the price has made it more lucrative.
Indoco Remedies, which is in the manufacturing as well as marketing of formulation and active pharmaceuticals ingredients in India, is expected to witness some upward movements.
It also has research and development activities, where it has invested a huge amount for capacity expansion. The company has also recently acquired one herbal products company, where the growth is expected to be good.
The past financial performance has been good and posted good quarterly growth. The scrip has received renewed interest and is trading at a high volume. The recent decline in the price has made it more lucrative.
Hot Chips: Chembond Chemicals
Chembond Chemicals BSE Code: 530871 Volume: 1290 CMP: Rs.193.35
A fairly unknown counter, Chembond Chemicals has been abuzz on the bourses. The company, which is listed only on the Bombay Stock Exchange, has interests in construction, chemicals, biotech and trading.
If you see the overall price data of this company of the last one month, the price has not corrected much despite the market being quite volatile. Sources in the broking community maintain that the counter would stay in momentum as some kind of announcement is expected from the company in the coming period.
Investors with short- to medium- term view can think of gleaning a profit from this counter. But the sources didnot rule out the scrip getting negatively affected in the current spell of volatility.
So, caution is advised and onl investors with high-risk appetite should take an exposure. The company has grown quite smartly over the last four years in the topline and the bottomline.
It has staged similar performance in nine months of this fiscal, almost equaling its FY07 performance.
A fairly unknown counter, Chembond Chemicals has been abuzz on the bourses. The company, which is listed only on the Bombay Stock Exchange, has interests in construction, chemicals, biotech and trading.
If you see the overall price data of this company of the last one month, the price has not corrected much despite the market being quite volatile. Sources in the broking community maintain that the counter would stay in momentum as some kind of announcement is expected from the company in the coming period.
Investors with short- to medium- term view can think of gleaning a profit from this counter. But the sources didnot rule out the scrip getting negatively affected in the current spell of volatility.
So, caution is advised and onl investors with high-risk appetite should take an exposure. The company has grown quite smartly over the last four years in the topline and the bottomline.
It has staged similar performance in nine months of this fiscal, almost equaling its FY07 performance.
Wednesday, February 27, 2008
Hot Chips: ABG Shipyard
ABG Shipyard BSE Code 532682 Volume 22236 CMP: Rs.660
ABG Shipyard is a strong counter that can be looked at as an investment option. It has the potential to give investors decent returns in the medium term.
The scrip has already corrected from its peak of Rs. 1,045 by as much as 37 percent. What make this counter attractive are the momentum and the good build-up in volumes on account of good investor interest.
Fundamentally, too, the counter looks very attractive at a PE of just 22x on trailing four quarters. The company has also come out with good quarterly results with a topline growth of 55 percent and a bottom line growth of 61 percent.
It is also expected to do well in the coming quarters as it had orders worth Rs. 8277 crore as on December 2007, which is 11.75 times higher than its FY07 sales. Hence, investors with short- to medium- term horizon can think of an exposure to this counter.
Long- term investment also makes sense.
ABG Shipyard is a strong counter that can be looked at as an investment option. It has the potential to give investors decent returns in the medium term.
The scrip has already corrected from its peak of Rs. 1,045 by as much as 37 percent. What make this counter attractive are the momentum and the good build-up in volumes on account of good investor interest.
Fundamentally, too, the counter looks very attractive at a PE of just 22x on trailing four quarters. The company has also come out with good quarterly results with a topline growth of 55 percent and a bottom line growth of 61 percent.
It is also expected to do well in the coming quarters as it had orders worth Rs. 8277 crore as on December 2007, which is 11.75 times higher than its FY07 sales. Hence, investors with short- to medium- term horizon can think of an exposure to this counter.
Long- term investment also makes sense.
Take Smart Decisions
The type of news flow has changed and the all-pervasive negative news is all over us. Many investors who had thought that market would rebound soon are now loosing their patience. The fact that their portfolio is losing value on a daily basis terrifies them. Momentum is no longer the buzzword and everyone is treading cautiously. Many of the experts who were predicting market in the region of 25,000 are now spreading the news that it would touch 12,000-13,000! I see no sense in any of these predictions. These type of doomsday prophecies help nobody.
I do not expect the market to rebound soon, but at the same time, I do not expect the market can afford to ignore the fundamental story of India Inc. for long. Let us admit that India has moved into the slow lane and may grow one percentage point lower than last year but it would still be the second fastest growing economy in the world after China. Our GDP growth for the next year is 8.7 percent and this is really a healthy number by all means. Hence, the current panic selling spree is beyond any rational logic. We saw excesses of bulls from August to December 2007 and in the same way, there could be excesses of the bears in the near future. But as with the bull excesses, the bear excesses too would not last long.
I do not expect the market to rebound soon, but at the same time, I do not expect the market can afford to ignore the fundamental story of India Inc. for long. Let us admit that India has moved into the slow lane and may grow one percentage point lower than last year but it would still be the second fastest growing economy in the world after China. Our GDP growth for the next year is 8.7 percent and this is really a healthy number by all means. Hence, the current panic selling spree is beyond any rational logic. We saw excesses of bulls from August to December 2007 and in the same way, there could be excesses of the bears in the near future. But as with the bull excesses, the bear excesses too would not last long.
Tuesday, February 26, 2008
Topline Growth: An Area of Concern.
India Inc. September numbers are more or less in line with the market expectations. But there is one very important sign and that is the topline growth is mere 11 percent. Which is not very healthy for the long-term growth story of India. If you remove the niminal inflation which would be in the region of six per cent, it gives an indication that volume growth is somewhere in the region of five percent in september quarter. This makes topline growth lowest in the last 10-12 quarters. But one quarter numberis not good enough to judge the trend and we hope that this is more of an aberration than a trend as India Inc's other indicators continue to show robust growth.
The growth in the bottomline of India Inc. is healthy at 23 per cent, something we had predicted in our cover story of September results. This growthhas been well-spread amongst small, medium and large companies. If India Inc. continues to grow at the same pace in its bottomline, then I see no reason why it should not command P/E of 20x, which it is commanding at the moment.
The growth in the bottomline of India Inc. is healthy at 23 per cent, something we had predicted in our cover story of September results. This growthhas been well-spread amongst small, medium and large companies. If India Inc. continues to grow at the same pace in its bottomline, then I see no reason why it should not command P/E of 20x, which it is commanding at the moment.
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