29 September, 2013

Weekly Trading Ideas!!!

BUY WITH A STOPLOSS OF 185 ON CLOSING BASIS..
TARGET:205/216
BUY WITH A STOPLOSS OF 192 ON CLOSING BASIS..
TARGET:209/219

22 September, 2013

Weekly Stock Trading Ideas:

BUY APOLLO TYRE
BUY RANGE:68-72
STOPLOSS : 66 ON CLOSING BASIS..
TARGET:76-80

BUY COAL INDIA
BUY RANGE:296-300
STOPLOSS :292 ON CLOSING BASIS..
TARGET:310-320

21 September, 2013

Stocks : The Bonus Benefits!!

Engineering conglomerate Larsen and Toubro (L&T) issued bonus shares four times since FY 1986. In May 2013, the company announced bonus issue in the ratio of 1:2 (one equity share of Rs 2 each for every two shares held) on the occasion of its platinum jubilee. The stock has appreciated around 10 times during the last 12 years. It has a diverse business profile, with presence in segments of engineering and construction, machinery and industrial products, electrical and electronics, and information technology (IT). L&T is facing headwinds owing to economic slowdown. However, the order book position continuous to remains strong at Rs 88000 crore, which is 1.2 times its revenue for FY 2013. 

Stocks: The bonus benefits !!

Asian Paints came out with an initial public offering (IPO) in 1982. Since the debut on stock exchanges, the company has issued bonus shares on six occasions, with the latest declared in the fiscal ended March 2003 (FY 2013). It has emerged as one of the multi-baggers over the last one decade. Since FY 2000, the stock has gained over 26 times. Moreover, the firm is fairly liberal in dividend payout, which was in the range of 35% and 70% over the last one decade.
Asian Paints is a market leader in the domestic decorative paint segment. It has added capacities on a consistent basis, with current capacity at 9,44,000 kilo liters (kl) per annum. It is prudent when it comes to its operations, leverage and business expansion. Despite continual focus on growth, the company has managed to keep its debt-to-equity ratio at a lower level. The debt-to-equity ratio was a mere 0.09 times in FY 2013. Debt is nil if cash and current investment is taken into consideration. Considering Asian Paints's consistent track record of profitability and leadership position, it may not be a surprise if the company announces a bonus issue a couple of years down the line. 

01 September, 2013

P/E & RETURNS !!!!

  1. Indian markets have a tendency to bounce between PE multiples of 12 and 24...
    Lower the overall PE levels of market, greater would be your return over a 3 year or 5 year period.

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