LIFE LEARNED LESSONS BY SEVAK

Co Name: Suzlon Energy Reco: Avoid CMP: Rs 41 (around) Investment Rational: 1. Fundamentaly The company performance does not auger well. It PAT margin has come below 1% in Q2 FY09, which used to be above 15-20%. In Q1 and Q2 it has registered substantial negative growth in its PAT growth. 2. The company is facing Technology problems also in its products and at the same time facing problem of Cash crunch that will impact its future plans.

Co Name: HDIL Reco: Buy CMP: Rs 73 Best Buy Level: Dip around Rs 65-70 (accumulate at this level) Target Price: Rs 90 ( 3-6 months), Rs 140 (12-18 months) Investment Rational: 1. Fundamentals are good: In the Q1 & Q2 of FY 09 it has posted good results despite all the negative sentiments. Currently, its available at PE of 1.35 and PBV of 0.50. It has prety impressive PAT Margin of 53% and Operating Profit Margin of 88%. Moreover, it has DE ratio below 1. 2. Currently, its trading at all time low level. Though "Rollovers from banks are increasingly becoming difficult for realty players, leading to fund crunch," notes the report, highlighting the fact that "around Rs 5.5 billion (14% of the total debt) is due for repayment in the next six months and land payment dues are currently around Rs 4 billion." Also, rehab construction in Phase-I of MIAL project would require another Rs 3 billion over the next 12 months, it ad...

Co Name: Sintex Ind. Ltd Reco: Buy (Continue) CMP: Rs 160 Best Buy Level: Rs 140-145 (Accumulate dip around this level) Target Price: Rs 210 (For 3-6 months), Rs 280 ( For 12-18 months) Holding Period: 12-18 months Investment Rational: 1. Sintex Industries' net profit rose 62.5% to Rs 68.24 crore on a 37% rise in sales to Rs 438.90 crore in Q2 September 2008 over Q2 September 2007. Other Fundamentals are also good like PAT margin and PBIDTA margin as well as ROCE and RONW (all above average compare to peers). 2. Operating profit margins for plastics fabricator Sintex rebounded sharply on a sequential basis to 16.7 per cent, a jump of over 565 basis points. The Rs 2,274 crore firm, however, posted higher consolidated revenues, up 85 per cent and a consolidated net profit of Rs 84 crore, up 87 per cent. The key plastics segment--- custom moulding, prefabricated and monolithic structures---was the main growth driver in Q2FY09, growing ...

Fundamental Call On Nov 12, 08 Company name: Gitanjali Gems Reco: Buy CMP : INR Rs81-82 Target Price: INR 120 Holding Period: 6-12 monthsBest Buy Level: Dip around INR 72-74 (accumulate at this Level) Investment Rational: 1. Good fundamental results in Q1, Q2 and steady good results in previous quarters also despite dismal macro economic picture. In 2nd Q FY09, it has registered 21% groth in Net sales and 31% growth in PAT. 2. Promoters continue to increase their holding day by day. And, The company has signed a MOU with MMTC to garner growth.

Overview: The BSE Sensex was at 13006.72 in the beginning of the month and Nifty was at 3921.85. By the end of the month, Sensex was at 9788.06, down 3218.66 points (-24.75%), and Nifty was at 2885.60, down 1036.25 points (-26.42%). Mid-cap index began at 4816.24 and closed at 3200.02, down 1616.22 points (-33.56%), while Small-cap index open at 5607.30 and ended at 3765.11, down 1842.19 points (-32.85%). October also saw FIIs net selling stocks worth Rs 15347.30 cr. Domestic Mutual Funds continued to be net buyer in Oct to the tune of Rs 1474.50 cr. During the month, the entire indices show substantial downward trend. Realty (-44 %), Metal (-40.93%) and Capital goods (-34.48%) were the worst hit. Though the prices of Crude Oil had eased almost by 50% and inflation was also easing, yet global cues and recession fears were clearly seen among investors. All the other mentioned factors along with FII selling lead Sensex once to the three-year low at 7697.39 and Nifty to the level of 2252...

Co Name: UCO Bank Reco: Buy CMP: INR 31 (Approx) Target: INR 46.5Holding Period: 6-12 months Best Buy Level: Dip Around INR 26-28 Investment Rational: 1.Strong half yearly results, 2. Ggovt.aided restructuring plans

Although the key benchmark indices edged higher last week, the market sentiments remain fragile due to global recession worries and heavy selling by foreign funds this year. Global markets rallied after the US Federal Reserve cut its main policy rate to 1% on Wednesday, 29 October 2008 to stave off the credit crunch. China reduced rates earlier on Wednesday, 29 October 2008 with Taiwan and Hong Kong following up with rate cuts on Thursday, 30 October 2008. The Bank of Japan announced a 20 basis points cut in interest rate on Friday, 31 October 2008. Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FII were net sellers of Rs 14272.40 crore in October 2008 so far (till 28 October 2008). FIIs have sold Indian shares amounting to Rs 51064.10 crore in calendar 2008. On the other hand, mutual funds have been buying. Their net inflow in October 2008 totaled ...