See upside in Tech Mahindra, says Baliga

Nov 07, 2013, 12.27 PM IST

Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.

Like this story, share it with millions of investors on M3

See upside in Tech Mahindra, says Baliga

Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.

Like this story, share it with millions of investors on M3

See upside in Tech Mahindra, says Baliga

Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.

  .   Share  .  Email  .  Print  .  A+A-

Ambareesh Baliga of Edelweiss Financial Services told CNBC-TV18, " Tech Mahindra should surprise with much better results than what analysts are talking of and that is one stock where there is decent upside."

He further added, " Eicher Motors has been performing well over the past couple of years and that will continue to do well and Prestige Estates Projects is one of the few realty companies which should continue doing well. There is a difference between Bangalore based realty plays and other realty plays like Delhi and Mumbai. So, people should be looking at the Bangalore based ones especially Prestige is one of them."

Related Stories

More from Ambareesh Baliga

14.03 | 0 komentar | Read More

Do not buy MM, says Ajay Srivastava

Nov 07, 2013, 12.28 PM IST

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

Like this story, share it with millions of investors on M3

Do not buy M&M, says Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

Like this story, share it with millions of investors on M3

Do not buy M&M, says Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

  .   Share  .  Email  .  Print  .  A+A-

Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, " Rallis India has already gone up quite a bit but I still think it has got way to go given the valuations. I don't have to buy on Escorts at all. It is too volatile. Promoter has been an issue for more than 20 years plus the liquidity of the stock is very poor and you cannot exit the stock when you want to. So I would certainly believe that Escorts should give good earnings but is a bad investment decision."

He further added, " Mahindra and Mahindra (M&M) sits on the borderline because tractors are doing well but its three other components are now struggling. The LCV is struggling, the car segment is struggling and the two-wheeler is also struggling. The aero investment, I don't know how far this has gone, so unfortunately for M&M, the three lemons versus one star is going to kind of counter balance it. So one cannot take a tractor company and invest in it because you don't have them as a standalone farm equipment kind of company barring Escorts where we have seen management issues and liquidity issues. So we are not recommending that anyone goes and buys that stock irrespective of what the financial performance comes out."

Related Stories

More from Ajay Srivastava

14.03 | 0 komentar | Read More

Prefer ICICI Bank at around Rs 950: Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "We have our investment at this point in Tata Motors . We have started to nibble into Larsen and Toubro (L&T) at this point of time."

"We haven't gone into the banking space by and large, we were investors in ICICI Bank. But it came back to Rs 950 or so, we will come back to invest in ICICI Bank because I think the value gap is tremendous in that company sometime or the other, the value gap is going to be breached giving us 40-50 percent returns. So these three stocks are what we are looking at," he added.

" M&M  - we are watching carefully as to how the performance pans out in the two-wheeler space and so on and at some point, we may come back to it. Rest of the stocks I think we are giving a go, buy at this point of time because they are either very richly valued or in a space that we don't want to invest in."

14.03 | 0 komentar | Read More

All you wanted to know about liquid funds

Hemant Rustagi
Wiseinvest Advisors

Every mutual fund scheme has an investment objective that specifies what it aims to achieve for its investors. The investment objective of a liquid scheme is to provide investors an opportunity to earn returns through investments in debt & money market securities such as treasury bills, certificate of deposits and commercial papers, without compromising the liquidity.

To ensure high degree of liquidity as well as to minimize the volatility, liquid funds invest in securities that have a residual maturity of less than or equal to 91 days. Since liquid funds have a low level of risk, they are assigned blue colour as per codes specified by the SEBI.

Considering that liquid funds are ideally suited for investments that may be required to be redeemed at a short notice, most of the funds in this category do not have any exit load. Even those funds that have an exit load, usually charge a nominal load for investments redeemed within a week or so.

Although liquid funds are a safe option for investors from the point of view of volatility and risk of losing capital, it is important to invest in them for the right time horizon so that one doesn't suffer from opportunity loss.

For example, an investment in a liquid fund with a longer term horizon of say one year or more can result in an investor compromising his chances of earning higher returns through options such as short term income funds and FMPs.

Liquid funds score over traditional investment options like savings bank account and short term fixed deposits as they have the potential to provide higher returns.

However, one must choose the right option out of the ones offered by mutual funds like dividend payout, dividend re-investment and growth to enhance post tax returns.

It is important because being a debt fund by definition, a liquid fund is required to pay dividend distribution tax (DDT), before distributing dividends to investors. It is also important to mention here that most liquid funds offer only dividend reinvestment (daily, weekly and/or fortnightly) and growth option.

Some liquid funds do offer dividend payout options, but only for large investments on a weekly and fortnightly basis.

As per the current income tax laws, the DDT under the debt funds ( including liquid funds) for individual investors is 28.3250 percent ( 25 %+ 10% surcharge+3% cess).

However, for those who opt for growth option, short term capital gains i.e. capital gains earned out of investments sold within 12 months from the date of investment, are taxed at one's applicable rate of taxation.

For example, an investor in 10 percent slab has to pay short term capital gains taxes@ 10 percent. It is quite evident that a growth option would be much more tax efficient for him as compared to dividend payout or dividend re-investment.

However, for investors in the highest tax slab of 30 percent, opting for dividend reinvestment would be more tax efficient.

Liquid funds also score over bank deposits because mutual funds do not deduct tax at source (TDS). It makes the process a little less tedious for all those investors who opt for growth option. On the other hand, since the DDT is paid by the fund, dividend received in the hands of investors is tax free.

Investors have a number of liquid funds to choose from. From performance point of view, there is not much differentiation between them.

However, for those who may like to analyze the performance of liquid funds, the right way would be to compare the performance with that of the benchmark as well as the peer group i.e. other funds in the same category.

Liquid funds usually have Crisil's liquid fund index as the benchmark. Investors may have their own personal yardstick like the returns that they earn from savings bank account or short term FDs.

Despite having an edge over traditional investment options, the retail participation in liquid funds is still very low. That's because they find putting money into savings bank account much more convenient.

Besides, lack of awareness about liquid funds also makes investors vary of investing in these funds. Many investors tend to keep a sizeable balance in their savings bank accounts, and that too for prolonged periods.

It's time for them to turn their attention to short term investments too and embrace options like liquid funds to enhance returns. Remember, liquid funds can make a significant difference to what you get to keep in the end. 

The author is the CEO of Wiseinvest Advisors.

14.03 | 0 komentar | Read More

Sachin Tendulkar tracker: Day 1, Eden Gardens

As Sachin Tendulkar make his final bow, Cricketnext track the key moments of his last 10 days of almost a quarter of a century he has spent in the game.

The first day began at the Eden Gardens, that is bathing in Sachin mania since Sunday. This is the 199th and penultimate Test of Tendulkar's career, and the last one at Eden, which is why the people of Kolkata want to make it a memorable one.

Also Read: Tendulkar is India's wealthiest cricket player: Wealth-X

Here's how we tracked Sachin on Day 1:

Presents Test cap to debutant Rohit Sharma

Rohit's heroics in the one-day series against Australia earned him a call-up to the Test squad. And it just got better on Wednesday when, after being included in the eleven, Rohit got his Test cap from the one and only Sachin Tendulkar.

First touch

Over 1.3: West Indies opener Kieran Powell flicks to get off the mark with a couple, and a loud cheer went around the ground as Tendulkar retrieved the ball for his first action of the day.

Pounced on the ball from square leg

Darren Bravo, somewhat stifled by Indian spinners, tried to steal a single at square leg, but the 40-year-old Tendulkar absolutely pounced on the ball, forcing Bravo to backtrack into his crease. And of course, followed by a huge 'Eden Roar'.

The boundary sprint

The first post-lunch Sachin moment of the afternoon came in the 35th over of the day when he ran full tilt from fine-leg to square-leg and got his right foot in to stop the boundary - much to the delight of the crowd that swelled as the day wore on.

Ball-boy moment

Tendulkar obliged the ball boys at the boundary ropes, signing autographs for them. But the staggering fact about that moment is that exactly 26 years go, on November 5, 1987, Tendulkar himself sat on the boundary ropes as a ball-boy during the Prudential Cup in India. Now that's how life comes a full circle.

14.03 | 0 komentar | Read More

Basmati prices up due to high paddy costs: Kohinoor Foods

Rice stocks were active in trade on Wednesday on reports that decline in paddy production in eastern states and Andhra Pradesh has triggered speculation of a lower rice output this year, stoking a 10-30 percent spike in prices.

Gurnam Arora, Joint MD, Kohinoor Foods told CNBC-TV18 that prices of basmati rice has surged due to high paddy costs. This is cause of concern for the company because it may not be able pass high price to key export markets like Iran, he said.

"For basmati, the opening prices this year compared to last year are about 50 percent to 70 percent higher, this worrying because the industry was expecting about 15-20 percent higher crop this year because of good monsoon," he added.

At 12:12 hrs Kohinoor Foods was quoting at Rs 39.70, up Rs 2.10, or 5.59 percent.

Also Read: India's rice exports seen at record 11 mn tonnes, says USDA

Below is the edited transcript of Gurnam Arora's interview with CNBC-TV18.

Q: Are you likely to see a rise in rice in prices. Is output in the eastern states a matter of concern?

A: This is the general tendency that when there is a shortage in the output, prices go little high. But right now the export scene allover is not very good because prices in the international markets have dropped. Prices here are generally determined by demand from overseas markets.

Q: If you are saying that domestic prices are higher but your export prices will not reflect it, you will see a squeeze in margins?

A: I do not see that. At the end of the day, the international market has to grows to a level, if they increase the price by USD 10-20 if you have margins only then you will export otherwise you won't.

For basmati, the opening prices this year compared to last year are about 50 percent to 70 percent higher and that is a worrying situation for the industry. We were expecting about 15-20 percent higher crop this year because of good monsoon.

Q: If you had to give us an estimate of how much the price will move in your assessment, in the next three-six months. What is your fair guess?

A: Basmati prices have already gone high because cost of our paddy is very high this year. Our worry is that will we be able to sustain because we are looking forward to Iran, which is the biggest market for us. If they come out with these prices, for example if the price is USD 300 higher than expected or USD 200 higher than expected, so we are all watching the scene that how they react to this price hike.

Q: You were mentioning earlier that exports are suffering a bit but there was news that Russia had lifted its eight month ban on import of rice. That would perhaps make a situation better for some of you guys?

A: Little bit better but that is not a great market for us. They are not big buyers for long grain or basmati.

On November 06, 2013, at 12:32 hrs Kohinoor Foods was quoting at Rs 39.05, up Rs 1.45, or 3.86 percent. The 52-week high of the share was Rs 57.60 and the 52-week low was Rs 22.25.

The company's trailing 12-month (TTM) EPS was at Rs 3.68 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 10.61. The latest book value of the company is Rs 129.74 per share. At current value, the price-to-book value of the company was 0.30.

14.03 | 0 komentar | Read More

Sell Jet Airways, advises Shardul Kulkarni

Shardul Kulkarni of Angel Broking told CNBC-TV18, "One should not hold on to Jet Airways because the chart structure is worse. So going forward I would look at the stock moving to around Rs 260-265 over the next three-six months. Any rise towards Rs 365 should be used to sell Jet Airways."

At 12:20 hrs Jet Airways was quoting at Rs 352.50, up Rs 5.85, or 1.69 percent. It has touched an intraday high of Rs 356.70 and an intraday low of Rs 342.

The share touched its 52-week high Rs 688.60 and 52-week low Rs 280 on 25 April, 2013 and 28 August, 2013, respectively. Currently, it is trading 48.81 percent below its 52-week high and 25.89 percent above its 52-week low. Market capitalisation stands at Rs 3,043.27 crore.

14.02 | 0 komentar | Read More

Buy Syndicate Bank, Dena Bank, Tata Motors, IOC: Chopra

Nov 05, 2013, 12.17 PM IST

Manav Chopra of Nirmal Bang recommends buying Syndicate Bank with a target of Rs 94 and Dena Bank with a target of Rs 65.

Like this story, share it with millions of investors on M3

Buy Syndicate Bank, Dena Bank, Tata Motors, IOC: Chopra

Manav Chopra of Nirmal Bang recommends buying Syndicate Bank with a target of Rs 94 and Dena Bank with a target of Rs 65.

Like this story, share it with millions of investors on M3

Buy Syndicate Bank, Dena Bank, Tata Motors, IOC: Chopra

Manav Chopra of Nirmal Bang recommends buying Syndicate Bank with a target of Rs 94 and Dena Bank with a target of Rs 65.

  .   Share  .  Email  .  Print  .  A+A-

In CNBC-TV18's popular show Bull's Eye, Manav Chopra of Nirmal Bang shares his trading strategies for the day.

One may buy Syndicate Bank . The stock has managed to exceed the crucial hurdles of Rs 87 on weekly closing basis and the momentum indicators on the daily charts have entered into a buy mode. If one looks at this chart the recent rise is also accompanied by above average volumes and we expect at least an impulsive wave in the near term perspective. The short term support is at Rs 88 levels on the intraday charts and one can maintain a buy with a stoploss of Rs 87.50 for an upside target of Rs 94.

One may buy Dena Bank . This stock has also observed a sharp momentum in the last few trading sessions and the volumes have also been very supportive. The stock has also managed to close above the long-term averages and with important fibonacci clusters. There are series of support in this stock around Rs 59 on the lower side and we recommend a buy on dips approach. Keep a stoploss of Rs 58.50 with a target of Rs 65.

One may buy Tata Motors . This stock has been in a very good uptrend forming a series of higher highs and lows and recently the stock after taking support near its short-term averages have formed a strong reversal pattern which suggests that this stock could exceed its recent highs and would see the continuation of the uptrend. We expect this stock to see an upside target of Rs 425. One can maintain a stoploss of Rs 386.

One may buy Indian Oil Corporation (IOC). This stock has seen a sharp decline recently and has formed a strong reversal pattern near the important fibonacci clusters. On the intraday charts this stock has also bounced from the oversold levels and we expect the stock to at least retrace 50 percent to 61 percent in the near term perspective. In that case one can maintain a buy with a stoploss of Rs 207 for an upside target of Rs 224.

14.02 | 0 komentar | Read More

ILFS Engg rises 5% on bagging Rs 675 cr project

Moneycontrol Bureau

Traders are buying shares of ILandFS Engineering taking the stock up 5 percent in intraday trade on Tuesday. The company has bagged a Rs 675 crore high rise residential project at Byculla in Mumbai.

"IL&FS Engineering and Construction has received a Letter of Award (LoA) from Neelkamal Realtor Tower Private for construction of 'Orchid Heights', a high rise residential project at Byculla in Mumbai," the company said.

The project has two high rise towers with total built-up area of 28,22,134 sq ft. The company is expecting it to be completed in 39 months. The current market cap of the company is Rs 316 crore.

At 11:51 hrs, the stock was quoting at Rs 36.50, up Rs 1.65, or 4.73 percent on the BSE.

14.02 | 0 komentar | Read More

Nitin Alloys standalone Sep '13 sales at Rs 8.69 crore

Oct 31, 2013, 12.28 PM IST

Nitin Alloys Global has reported a sales standalone turnover of Rs 8.69 crore and a net profit of Rs 0.42 crore for the quarter ended Sep '13

Like this story, share it with millions of investors on M3

Nitin Alloys standalone Sep '13 sales at Rs 8.69 crore

Nitin Alloys Global has reported a sales standalone turnover of Rs 8.69 crore and a net profit of Rs 0.42 crore for the quarter ended Sep '13

Like this story, share it with millions of investors on M3

Nitin Alloys standalone Sep '13 sales at Rs 8.69 crore

Nitin Alloys Global has reported a sales standalone turnover of Rs 8.69 crore and a net profit of Rs 0.42 crore for the quarter ended Sep '13

Share  .  Email  .  Print  .  A+A-

Nitin Alloys Global has reported a standalone sales turnover of Rs 8.69 crore and a net profit of Rs 0.42 crore for the quarter ended Sep '13. Other income for the quarter was Rs 0.02 crore. For the quarter ended Sep 2012 the standalone sales turnover was Rs 8.78 crore and net profit was Rs 0.50 crore, and other income Rs 0.02 crore. Nitin Alloys shares closed at 36.75 on June 11, 2013 (BSE)

Nitin Alloys Global Standalone Quarterly Results -------- in Rs. Cr. --------

Sep '13 Jun '13 Mar '13 Sales Turnover 8.69 8.86 9.52 Other Income 0.02 0.01 0.03 Total Income 8.70 8.87 9.55 Total Expenses 7.97 8.07 8.76 Operating Profit 0.72 0.79 0.76 Profit On Sale Of Assets -- -- -- Profit On Sale Of Investments -- -- -- Gain/Loss On Foreign Exchange -- -- -- VRS Adjustment -- -- -- Other Extraordinary Income/Expenses -- -- -- Total Extraordinary Income/Expenses -- -- -- Tax On Extraordinary Items -- -- -- Net Extra Ordinary Income/Expenses -- -- -- Gross Profit 0.74 0.80 0.79 Interest 0.01 0.02 0.05 PBDT 0.72 0.77 0.75 Depreciation 0.21 0.21 0.21 Depreciation On Revaluation Of Assets -- -- -- PBT 0.51 0.56 0.54 Tax 0.09 0.10 0.39 Net Profit 0.42 0.46 0.15 Prior Years Income/Expenses -- -- -- Depreciation for Previous Years Written Back/ Provided -- -- -- Dividend -- -- -- Dividend Tax -- -- -- Dividend (%) -- -- -- Earnings Per Share 3.03 3.29 1.09 Book Value -- -- -- Equity 1.40 1.40 1.40 Reserves -- -- -- Face Value 10.00 10.00 10.00 Source : Dion Global Solutions Limited

14.03 | 0 komentar | Read More