JOKE OF THE YEAR

" India's gross domestic product (GDP) growth in the April-June quarter is disappointing "

 Finance Minister Pranab Mukherjee


Even a first standard kid except our finance minister knows , if interest rate  hike is going on in this pace that will affect  over all demand and  growth


BUT 

* NO LONG TERM PLANS TO BOOST FOOD PRODUCTION

* NO INFRASTRUCTURE AND LOGISTICS SUPPORT FOR EFFICIENT DEPLOYMENT OF AVAILABLE RESOURCES.

* NO SINCERE EFFORTS TO CHECK FAKE CURRENCY

* NO ACTION TO BRAKE  CARTELS FORMED BY  MAJOR PRODUCERS.

* NO CLARITY ON ENVIRONMENTAL ISSUES RELATED WITH MAJOR PROJECTS.

* NO STERN ACTION AGAINST TREASURY HIJACKERS


                          ONLY DIALOGUES ,CONCERNS AND INTEREST RATE HIKES.


IF  INTEREST RATE HIKE IS NOT TO CONTROL DEMAND AND REDUCE INFLATION  - WHAT IS THE PURPOSE OF THESE RATE HIKES ?


IF YOU KNOW ANY MAGIC TO KEEP GROWTH RATE   AND INTEREST RATE AT HIGHER LEVEL SIMULTANEOUSLY EXCEPT DATA MANIPULATION ,PLEASE COMMENT .......

GODREJ INDUSTRIES Ltd - BUY

 For many of us , Godrej Industries  Ltd (GIL) may be a chemical company.But it is more than that .Its stake in Godrej Agrovet(75%),Godrej Consumer products (22 %) and Natures Basket makes it an interesting company.It also owns 71% stake in Godrej properties.Godrej Agrovet is mainly in animal feeds and agri inputs ( mainly herbicides).Company also owns 37000 hectare oil palm plantation in various states like Andhra,Tamilnadu,Goa..etc.Godrej Agrovet also having a joint venture with ' Tyson' in poultry business which is selling processed poultry products under the brand name "Real Good" and value added ready to eat products under the brand name "YUMMIEZ" Company is now planning to expand the operations of this division to many more cities which is limited now.'NATURE'S BASKET' is a subsidiary of GIL which is operating around 13 stores currently for selling organic fruits and vegetables,beverages,dairy products..etc.Company's this division is expected to brake even shortly and new shop additions are planned. The agri centric business of GIL through Godrej Agrovet having huge potential in India ,and company's latest financials is a reflection of this fact. FMCG  business of Godrej CP  is also growing rapidly For the first quarter of this financial year  GIL posted a turnover of Rs.1310 Cr an improvement of 31 % over last year and a net profit of Rs.71 Cr ( up 46 %) . EPS for first quarter is Rs.2.25.This professionaly managed company having huge expansion plans it its various businesses and it is expected to show decent growth going forward.GIL can be included in your portfolio at CMP of Rs.186/-

CONCURRENT INDIA INFRASTRUCTURE - UPDATE

After a long time ,got many queries from readers about Concurrent which is currently trading at its yearly low @ just Rs.4/-.Many of them are asking -  is it a buy even at current level ?.But it is not a buy for me even at current level and there is no change in my opinion on this company from my earlier stand .Old postings can be accessed HERE and HERE.

KOVAI MEDICAL CENTER & HOSPITAL LTD - BUY

CMP .Rs.114/-

Healthcare is considered as one of the sectors India having huge potential in coming years..Hospital services is a major part of this industry.But the number of listed players in this sector is limited.Kovai Medical Centre and Hospital (KMCH) is one of the good listed companies from this space.This Coimbatore based 800 bed multispeciality  hospital having all most modern facilities including Open heart surgeries ,Kidney transplants, Knee replacements, Hip replacements , Complex Neuro surgeries Angiograms, Angioplasties, Stenting ,fallopian tube recanalisation, Chemotherapy, Blood component therapy, Arthroscopic surgeries, Laparoscopic and Thorocoscopic surgeries,Emergency-Trauma Care Center... etc  KMCH is located in a 20 acre facility close to coimbatore airport and also having three satellite hospitals - two at Erode and one at Ram nagar.KMCH recently started the facility of E-Bus (Endo Bronchial Ultra Sound) which is very effective for identifying lung cancer in an early stage. It is one of the very few hospitals in this region with this facility. KMCH is now expanding its service to pediatric , and eye segment and this facilities will commence operations in few months. In  recent times KMCH is very aggressive  in bringing new technologies ,most modern facilities and new departments to its fold. Company is spending an amount of Rs.200 Cr for this expansion programme.Growth for KMCH will come in two ways .One through the addition of  more facilities and departments  at the existing hospitals and the other is through the starting of new satellite centers in other places.For the quarter ended June 2011  ,KMCH posted a turnover of Rs.51 Cr v/s Rs.31 Cr and a net profit of Rs.2.43 Cr v/s Rs.81 Lacs. As an indication  of the confidence of promoters, they are steadily hiking their stake in last few quarters through open market purchases.At CMP of Rs.114/- , it is a good long term bet for a healthy portfolio.

KAVERI SEED COMPANY / ADVANTA INDIA - RESULT UPDATES

Both these companies declared very good results for the June quarter

KAVERI SEED COMPANY LTD.


Turnover   Rs.241 Cr  v/s Rs.148 Cr

Net Profit  Rs.47 Cr   v/s Rs.31 Cr

EPS Rs.     Rs.34.5     v/s Rs.23



ADVANTA INDIA LTD


Turnover   Rs.225 Cr  v/s Rs.175 Cr

Net Profit  Rs.17 Cr   v/s Rs.4 Cr

EPS Rs.     Rs.10     v/s Rs.2.50


Since both these companies are in hybrid seeds segment and this industry is seasonal in nature ,it is not prudent to annualise the quarterly results based only on June quarter result.

Both these companies having huge potential in this space ,HOLD  both for long term.

CAMLIN FINE CHEMICALS- REPEAT

Based on the June quarter performance and the benefits expected from the recently acquired Hydroquinone manufacturing facility of Borregaard in the future , I reiterate a BUY on Camlin Fine Chemicals @ CMP of Rs.100/-


For old posting click HERE

What is next ?

Most probably  there will be deep red in the street on Monday as a knee jerk reaction to the developments in US.Business channels and analysts  will surely  make you panic , but I think it is a time to act with prudence and not on emotions.In fact India may be one of the big beneficiary of the ongoing happenings in western world.We all know , the main problem Indian economy facing now is the non stop rise in inflation mainly on account of commodity prices. Current happenings may turn as a boon for India  and eventually we may reach a situation of cutting down the interest rates. Such a situation will surely help our market to start the next leg of rally. Even we take the situation in US , this warning from S&P may help that country to think seriously about their economy and save it from a disaster.So ,better to stay cool ,think and then take a decision instead of taking decisions based on emotions.Try to spot out the beneficiaries of softening western economies,catch them in small lots.Never over trade and don't think the entire problem will end in one or two days.Don't divert funds to stock market to make quick gains if such fund  is meant for some other time bounded purpose.Avoid leveraged purchases  is the most important point to note . Let us concentrate in quality companies - which will surely out perform in long term.

DFM FOODS - Result Update

DFM Food is one of my old recommendations @ Rs.48/- ( For Old posting - Click HERE) , which is currently trading @ Rs.161 near to its all time high.Today company declared excellent result with an improvement  of  66 % in sales and 135 % in net profit . In the first quarter , company posted a turnover of Rs.34 Cr v/s Rs.20 Cr  and a net profit of Rs.3 Cr v/s Rs.1.27 Cr . Full benefit of its recent expansion is expected to reflect from this financial year onwards. HOLD it for long term .