SUZLON ENERGY Q3 FY2009-10 RESULT INSIGHTS

NET DEBT REDUCTION- Q3 FY 10
-Consolidated net debt as on 31st March 2009 - Rs. 11800 cr.
-Consolidated net debt as on 31st December 2009 - Rs. 10488 cr.
-Net consolidated debt reduced by Rs. 1312 cr.
-Profit from the Sale of 35.22% OF HANSEN TRANSMISSION Rs. 252 cr.
-GROSS REDUCTION OF DEBT BY APPROX. 15% OR USD 350 MILLION.
-Acquition loan of USD 780 million PAID-OFF.
-HANSEN STAKE NOW AT 26.06%. (174632079 voting rights)
-REpower Systems AG stake now at 90.71%.

SALES FIGURES- Q3 FY 10
-India contributed 140 Mw v/s 168 Mw in Q3 FY 2008-09.
-Internationally, volumes were 264 Mw v/s 511 Mw in Q3 FY 2008-09.
-Total Mw Sales (Suzlon Wind) - 404 Mw v/s 679 Mw.

ORDER BOOK – Q3FY 10
-As on 30th January 2010 – 1484 Mw.
-Order book value as on 30th January 2010 – Rs. 8128 cr.
-Average realisation of Order Book -
INDIA – Rs. 5.43 cr/Mw.
INTERNATIONAL – Rs. 5.49 cr/Mw.

REVENUE - Q3 FY 10
-Suzlon Wind Business Revenue – Rs. 2453 cr.
-Consolidated Revenue – Rs. 5590 cr.
-Income from operation & maintance activities-
India – Rs. 196 cr
International – Rs. 83 cr.
-Karnataka wind energy tariff Rs. 3.70/Kwh from Rs. 3.40.
-Gujarat wind energy tariff Rs. 3.56/Kwh from Rs. 3.50/Kwh.
-Global Market Share – Suzlon – 9%; RE power - 3.3%; GE wind – 18.6%; Vestas – 19.8%; Siemens – 6.9% as on 31st December 2008.

OTHER FINANCIAL DETAILS -
-Net operating working capital as on 31st December 2009 – Rs. 5179 cr.
-Absolute reduction of working capital of Rs. 974 cr from March 2009 levels.
-Acquition Loans – Rs. 2159 cr.
-FCCBs – Rs. 2229 cr.
-Capex Loans – Rs. 1077 cr.
-Working Capital & Other Loans – Rs. 5009 cr.
-Gross External Debt – Rs. 10474 cr
-Loans from Promoter group – Rs.1175 cr.
-Cash Holdings – Rs.1041 cr.
-NET DEBT – Rs. 10608 cr.
-NET EXTERNAL DEBT – Rs.9433 cr.
-Gross Profit/Mw - 9m FY 2009-10 – Rs. 2.03 cr v/s Rs. 2.07 cr in 9m FY 08-09.

DEBT MANAGEMENT EXERCISE –
- DEBT REDUCTION –
- Monetized 35.22 % stake in Hansen Transmission, realized GBP 224 millions through placement of 236 million Depository interest at a price of 95 pence per depository interest, proceeds used to repay part of acquisition loans.
- Refinancing of loans in Rupee-denomination from SBI.
- Holiday of 2 years in principal payments done.
- Issue of GDRs for USD 108 million (Q2 FY 2009-10)
- Cash infusion of USD 94 million through additional Convertible Bonds issue (Q2 FY 2009-10)

CAPACITY & EXPANSION PLANS –

SUZLON (GDR- SUEL:LI Suzlon Energy Ltd)
CURRENT CAPACITY- 4200 Mw
EXPANSION PLANNED- 1500 Mw
TOTAL POST EXPANSION- 5700 Mw

RE POWER SYSTEMS AG - RPW:GR
CURRENT CAPACITY- 1250 Mw
EXPANSION PLANNED- 450 Mw
TOTAL POST EXPANSION- 1700 Mw

HANSEN Transmissions International NV - HSN:LN
CURRENT CAPACITY- 7300 Mw (Gearbox)
EXPANSION PLANNED- 8000 Mw (Gearbox)
TOTAL POST EXPANSION- 14300 Mw (Gearbox)

RESULTS- Suzlon Energy Posts Profits for Q3 FY10

SUZLON ENERGY has announced its Q3 results of FY10. It has reported Consolidated Net Profit of Rs 14.1 crs as against loss of Rs 34.9 crs, QoQ, boosted by profit on stake sale of Hansen booked Rs 251.96 cr.

Consolidated Total Revenues declined to Rs 5,608 crs from Rs 6,943 crs. Income from Operations slipped to Rs 5,590 crs from Rs 6,920 crs.

Suzlon's Net Debt stood at Rs 10,488 crs as on December 31, 2009.

EBIDTA (earning before interest, depreciation, tax and amortisation) was down to Rs 274.6 crs from Rs 724.7 crs.

Adjusted losses without extraordinary was at Rs 221.1 crs v/s loss of Rs 340 crs, QoQ.

Interest expenses were still steady at Rs 289.5 crs v/s Rs 233.85 crore.

Highlights

-Sale of 404 MW v/s expectations of 470-480 MW

-Better sales QoQ at 404 MW v/s 283 MW

-Low volumes hit margins to make operating loss in standalone in wind business

-Operating loss of Rs 74 crs v/s Rs 149 crs

-Order book inflow still weak; added 399 MW in Q3 with only 68 MW from international markets

-No orders from the Chinese and European markets during the quarter

-Order backlog flat QoQ at 1484 MW

-Net debt reduced by Rs 3274 crs from Rs 13,762 crs to Rs 10488 cr by end December.

-Rupee refinancing progressing well; nearly 80% tied-up and full closure expected by end-February 2010

Management says

-Strong revival seen in Indian wind market; 

-New policy initiatives support long-term growth; 

-Order wins from PSUs and large corporates: ACC, GACL, GAIL, ITC, RSMML, among others

HANSEN

-Revenues down 12.1% to Euro 137 million; margins at 9.8% vs 12.9% YoY; QoQ better with improvement from cost control

-Reduction in scheduled deliveries of both industrial and wind turbine gearboxes

-Company says: customers are continuing to defer deliveries of the gearboxes with stricter control of inventories in line with the current operating and credit environment

-Scaled down FY10 guidance implies 40% decline in Q4 revenues

-Upswing in market is expected from July-Sept Quarter

REPOWER

-Flat revenues of Euro315 million v/s Euro 312 million 

-EBIT at Euro 25 million v/s Euro 15 million 

-Margins at 7.9% v/s 4.9%

-Final numbers on February 12, 2010

MY STOCK PICK: GILLETTE INDIA

As we all know that India is enjoying the demographic dividend, as more than 40% of Indian population is between the age group of 20 – 40 years, and with the population of 1.18 billion in India a 40% means nearly 47.2 cr people are young and if we assume that from this young population minus females needs shaving kit every morning then for next 20-30 years the consumption & sales of these products would be growing Right!! and the company would be delivering consistent performance.But this is just an assumption..what product am I talking about….. It’s GILLETTE!!BSE CODE - 507815

Gillette India is an NSE BSE listed company jointly promoted by House of Poddar Enterprise and Gillette Company, U.S.A. (Gillette). A company engaged in manufacturing shaving blades (7 O’clock, Ejtek shaving brush, Gillette Mach- 3, Mach 3 turbo).Just look at the details and you will understand

Details as on 21-Jan-2010

Share price- Rs.1,359.00;

Market Cap- Rs.4,464.50 cr;

52 Week- H- Rs.1,450.00; L- Rs.575.25;

P/E- 33.97; EPS- Rs.40.33;

Book value – Rs.150.65;

Dividend – Rs.12.50; Fv- Rs.10;

Total Debt- 0.00;

Reserves- Rs.458.30;

Total Share Issued- 3,25,85,217 shares;

Public Shareholding – 36,73,368 shares; Public Shareholding in %- 11.27%;

Promoter’s holding- 2,89,11,849 shares; Promoter’s holding in %- 88.74%;

Procter & Gamble India holds 41.02 % stake in Gillette India, even one of the most smart investor is into it. R.S. Damani holds 1.06 % in Gillette India. Gillette India,have its competitors like HUL,Dabur,Colgate,Godrej in personal care segment but non of these can compete Gillette in male personal care segment, (you can survey it by your self)

Gillette India is a best buy at Rs.1100- 1250, and should accumulate on further dips.

Pass on the legacy to your future generation. A DEBT FREE COMPANY at price of Rs.1100 is definitely a best buy. I bought at Rs.1080 on Diwali, Gillette India have given 1:1 bonus in 1989, A VERY STRONG CANDIDATE FOR THE BONUS ISSUE

I am not giving the price target as I believe this stock is meant for long term holding and not for short term gains. Yes it will not give you instant gains,it is a lazy kind of stock but with an extremely promising fundamentals.Daily vol is around 4169 shs from which 3321 shs -79.66 % is on delivery basis.

Container Corporation of India (CONCOR)

Total shares issued- 129982794 shs.

Promoter’s holdings- 81999802 shs- 63.08%

Promoters - President Of India-81998202 shs;

Other Promoters- 1600 shs,

Institutional holdings-22180162 shs-17.07%

52 Week-High-Rs.1275 on 23 Dec 2009;Low-Rs.594 on 23 Dec 2008.
Current Market Price - Rs.1257.20

Market Cap-16442.82cr; AS on 23/12/09

EPS-61.49;P/E-20.57; Ind P/E- 21.00

Book Value-289.44;Price/Book-4.37;Div %- 140

Total Share Capital- 129.98cr:

Net Worth- 3762.21cr; Total DEBT -0;

Incorporated in 1988, Container Corporation of India (CONCOR) is a multi-modal (rail and road) logistics support provider for the country’s exim and domestic trade and commerce, working under the ministry of railways, Government of India. It handles the imports and exports of the country from about 40 dry ports or terminals spread across India. It also enjoys a near monopoly situation in the transportation of Containerised cargo through the Indian railways. CONCOR`s core business is characterised by three distinct activities, that of a carrier, a terminal operator, and a warehouse operator. The key value the company offers is the provision of a single-window facility co-ordinating with all the different agencies and services involved in the containerised cargo trade right from customs, gateway ports, and railways, to road haulers, consolidators, forwarders, custom house agents and shipping lines CONCOR currently provides the only means by which shippers may obtain containerized freight transportation by rail in India. Though rail is the mainstay of its transportation plan, road services are also provided according to market demand and operational exigencies. CONCOR also operates container terminals across the country to cater to the needs of the trade, whether in the export-import or the domestic business.

Financials: - Container Corporation of India registered results for the quarter ended on 30-SEP-2009 as:

Net Sales- Rs. 959.9027 cr v/s Rs. 903.3608 cr on 30-SEP-2008.

Net Profit- Rs. 204.3475 cr v/s Rs. 223.6809 cr on 30-SEP-2008.

Conl- This stock has always being out of the analysts radar,also this stock has being giving a consitant performance over a period of time. Here I have tried to point out the underdog PSU, as the world expects to get out from recession & their EXIM trades to shoot up, INDIA is surely getting a pie from it & this is the company with an 21.03% of RoNW, and with the net profit of 204 cr on sales of 959cr is certainly shine in this space.

Read my Mundra port post for futher view on business.

SUZLON ENERGY

TOTAL SHARES ISSUED – 1556723743 shs.

GROSS DEBT – Rs. 13477 cr.

NET DEBT – Rs. 12525 cr. (As on SEP 09).

CASH HOLDINGS – Rs. 952 cr.

REPOWER SYSTEMS AG - RPW:GR

Total Shares Issued – 9177039 shs.

Suzlon holds – 8325409 shs - 90.72%.

Free Float – 851630 shs - 9.28%.

CMP- 8th DEC 2009, 114 Euros. 1Euro/Rs. 68.95

MKT CAP – 1046.18 million Euros, Rs. 7213.42 cr.

Free Float MKT CAP – 97.08582 million Euros, Rs.669.406 cr.

EPS – 0.16, PE – 711.13, P/B – 3.11, NP – 1479000 Euros, Rs.10.2073 cr.

Suzlon's stakes in REpower valued at Rs.6544.021 cr

HANSEN TRANSMISSION INTERNATIONAL NV - HSN:LN

Total Shares Issued – 670104208 shs.

After the 35.01% stake sale in November 2009.

Suzlon now holds – 174632079 shs a 26.06%. V/S 410632079 shs 61.28%.

CMP as on 8th DEC 2009 1.13 GBp. 1GBP/ Rs.76.04

MKT CAP – 757.21 million Pounds, Rs. 5757.88 cr.

EPS – 1.98p, PE – 53.41, P/B – 1.39, NP – 1319131000 GBp – Rs.101.1546 cr

Suzlon's stakes in Hansen valued at Rs. 1500.52 cr.

NOW,

REpower contributes to Rs.42.03 to Suzlon´s CMP of Rs.85 a nearly 49.45% of Suzlon.

HANSEN contributes to Rs. 9.63 to Suzlon´s CMP of Rs. 85 a nearly 11.34% of Suzlon. So Suzlon valued at Rs.33.34.

Suzlon´s enterprise value is around Rs 33801.69 cr (217/Sh).

Networth around Rs 6580.32 cr.

IF SUZLON ENERGY MANAGES TO RETIRE ITS Rs. 13000 cr DEBTS IT’S VALUE CAN GO…. I SAY CAN GO TILL Rs.180. BUT SINCE IT’S A HIGH BETA STOCK ALWAYS TRADE WITH STRICK STOPLOSS.

Mundra Port and Special Economic Zone

Market Details as on 31st October, 2009.

Total Shares Issued – 400678820 shs of Rs. 10 each.

Shares Issued at IPO- 40250000 shs at Rs. 440 Nov 2007.

Promoters Holdings- 324719561 shs -81.03%.

Market Capitalization- Rs. 20047.96 cr.

Current Market Price – Rs. 500.35.

Book Value per Share- Rs. 73.44, Earning per Share- Rs. 14.91, Dividend- Rs.3/sh.

Price to Earning Ratio – 33.56, Industry P/E- 42.20, Price to Book- 6.81 times.

52 Week – High- Rs. 705, Low- Rs. 253.65.

200 Daily Moving Average- Rs. 478.25.

Total Debt – Rs. 2313 cr, Total Reserve- Rs. 2541.78 cr

FINANCIALS:-As on 30th September 2009

Total Income Rs.337.33 cr v/s Rs. 303.78 cr (YOY), Net profit increased 56 % to Rs. 174.78 cr v/s 112.28 cr (YOY), half yearly Net Sales of Rs. 634.13 cr, and Net Profit of Rs. 345.54 cr posting an EPS of Rs. 8.32.

Mundra port is India’s largest private sector port promoted by Adani group.

Mundra port has notified multi-product SEZ area of 5920 hectares, from which it is currently developing the area of 130 sq km. the Co. has its own railways which handled close to 4500 rakes in yr 2008-09; has Dry Cargo Port - has handled largest container vessel- MV BAUDELAIRE (300.40 mtrs), the port now handles 6500-7000 vessels; Co. has container terminal with highest gross crane productivity of 55.24 Moves Per Hour (MPH) , highest average crane productivity of 33 MPH in country; Company has signed an agreement with Maruti Suzuki to export cars from the Auto terminal- total car exported in last 3 months of 2008-09 is 18911 cars; Co. has handled 2.2 lacs Metric Tonnes of liquid cargo.

For the financial yr 2008-09 Mundra port has handled 2171 vessels v/s 1624 in yr 2007-08. Its cargo handling capacity increased by 33.68 % to 3.60 cr tonnes.As per the records, India’s 95 % of external trade by volume & 70 % by value comes by Sea. Cargo handling volume in 12 major ports in India was at 53 cr Tonnes, while non-major ports contributed 21 cr Tonnes during 2008-09, aggregating to 74 cr Tonnes. Mundra port, the largest private sector non-major port, with a cargo capacity of around 3.6 cr Tonnes in FY09 is among the Top 10 ports in India. India needs to double its port capacity to 150 cr Tonnes by 2011-12 & would require investments worth Rs.55000 cr in that period indicating significant potential for the sector.

A LITTLE STORY ON MARKETS

There was a small village, everyone in that village were living happily, one day someone from big city came with his assistant, he said - "I will give Rs. 10 for every monkey you catch, and bring it to me", villagers started catching monkeys, soon villagers found a new job. They caught monkeys and sold to that stranger & made good money, after a while they lost interest. The stranger said - "I will give you Rs. 15 for every monkey", more monkeys came in, after a while the price of monkey went up to Rs. 60 !!! Suddenly one day the stranger was out of the village his assistant said - "Look this guy does not pays me much, I want to sell all his monkeys at Rs. 50/each so when he comes back you can sell it back to him for Rs. 70" - the villagers agreed -The assistant sold all the monkeys to the villagers for Rs. 50 and went out of the village. Villagers were now left with their monkeys & still waiting........for the Stranger and his assistant to come... but none of this two came back & left villagers with their monkeys worth nothing...while that strangers made money out of nothing....

THE MORALE OF THE STORY - 

The villagers are we small Investors , our stocks are the monkeys and FII’s (Foreign Institutional Investors) are those strangers !!!

Lets us all learn the lesson, 

IPO DETAILS: PIPAVAV SHIPYARDS LTD

Price Band- Rs.55-60, Face Value- Rs.10
Issue opens on- 16th September 2009, Wednesday
Issue closes on- 18th September 2009, Friday
QIB Book- 5,09,10,135 shares (60% of Net issue)
HNI Book- 84,85,022 shares (10% of Net issue)
Retail Book- 2,54,55,068 shares (30% of Net issue)
Employee Reservation- 6,00,000 shares
Total No. of Shares offered- 8,54,50,225 shares or 12.8%
Equity Shares outstanding after the Issue--665,798,388 Sh
Equity Shares outstanding prior Issue-580,348,163 Sh
Total Size of the Issue- Rs. 469.97 Crs. - Rs. 512.7 Crs. (Approximately)
Lead Manager- Kotak, SBI, Enam, Motilal, JM, and Citigroup
Registrar- Karvy Computershare Private Limited.
Debt equity ratio- 0.7:1


Major PE investors-
Punj Lloyd currently holds 22.34% stake in the company at Rs.27, Amout- Rs 350cr. Sea King Infra(SKIL)at Rs.10 and they combine holds 45.5% stake.
Trinity capital- Rs.25, Amount- Rs.114.75cr, Post issue holding- 6.89%, 2i capital- Rs.25, Amount- Rs.100cr, Post issue holding- 6.01%, New York Life Investment Management India Fund(NYLIM)- Rs.25, Amount- Rs.66.52cr, Post issue holding- 4%, Citadel MT Trading- Rs.45, Amount- Rs.103.5cr, Post issue holding- 3.45%, SCB Asian Infrastructure Fund- Rs.45, Amount- Rs.51.75cr, Post issue holding- 1.73%, Blackstone, Merrill Lynch, Galleon, Manz Retail (a Future Group entity), Deutsche Bank -All at Rs.80/Sh- below 1% - stakes in the firm.
Other are Infrastructure Leasing & Finance Services (IL&FS), Export Import Bank of India (EXIM Bank), UTI Mutual Fund and Industrial & Development Bank of India (IDBI).


Company details-Pipavav is located on the south western coast of Gujarat and claims that it will be the biggest shipyard upon completion in India. The shipyard is spread over an area of 198.92 hectares, which also comprises of a special economic zone (SEZ).It plans to use the proceeds for the construction of shipbuilding facilities, repair and offshore business and for general corporate purposes.


Valuations- The net worth of Company was Rs. 12,55.076cr as of March 31, 2009. The book value per Equity Share was Rs.21.63 as of March 31, 2009 Pipavav is being valued at 1.1X EV/Order book even at the lower end of the price band. This is as compared to 0.2X for Indian shipyards and 0.3-0.5X for global shipyards, said investment bank Noble Group in its research note. Given the uncertain order book, the valuation seem to be a little aggressive.
Pipavav has said that it has an order book of $920 million, which includes 12 offshore supply vessels from ONGC and an order for 22 dry bulk carriers from three European shipping companies. The order with the European customers is being renegotiated given the downturn,though the impact on order book is not known.
Pipavav Shipyard, co-owned by SKIL Infrastructure and Punj Lloyd, is building a shipyard in Gujarat at a cost of about Rs 3,000 crore, of which it has already spent Rs 2,086 crore.

MY STOCK PICK: GILLETTE INDIA

As we all know that India is enjoying the demographic dividend, as more than 40% of Indian population is between the age group of 20 – 40 years, and with the population of 1.18 billion in India a 40% means nearly 47.2 cr people are young and if we assume that from this young population minus females needs shaving kit every morning then for next 20-30 years the consumption & sales of these products would be growing Right!! and the company would be delivering consistent performance.But this is just an assumption..what product am I talking about….. It’s GILLETTE!!

Gillette India is an NSE BSE listed company jointly promoted by House of Poddar Enterprise and Gillette Company, U.S.A. (Gillette). A company engaged in manufacturing shaving blades (7 O’clock, Ejtek shaving brush, Gillette Mach- 3, Mach 3 turbo).Just look at the details and you will understand

Details as on 04-Sep-2009

Share price- Rs.1,008.35;

Market Cap- Rs.3,290.94 cr;

52 Week- H- Rs.1,079.90; L- Rs.520;

P/E- 29.09; EPS- Rs.34.70;

Book value – Rs.165.27;

Dividend – Rs.12.50; Fv- Rs.10;

Dividend Ex-date- 15-oct-09;

Net Sales- Rs.661.51 cr; PBT- Rs.177.01 cr; Total Debt- 0.00;

Net Profit- Rs.113.13 cr; Reserves- Rs.458.30;

Total Share Issued- 3,25,85,217 shares;

Public Shareholding – 36,73,368 shares; Public Shareholding in %- 11.27%;

Promoter’s holding- 2,89,11,849 shares; Promoter’s holding in %- 88.74%;

Procter & Gamble India holds 41.02 % stake in Gillette India, even one of the most smart investor is into it. R.S. Damani holds 1.06 % in Gillette India. Gillette India,have its competitors like HUL,Dabur,Colgate,Godrej in personal care segment but non of these can compete Gillette in male personal care segment, (you can survey it by your self)

Gillette India is a best buy at Rs.800- 850, and should accumulate on further dips.

Pass on the legacy to your future generation. A DEBT FREE COMPANY at price of Rs.800-850 is definately a best buy. Gillette India have given 1:1 bonus in 1989,

I am not giving the price target as I believe this stock is meant for long term holding and not for shortterm gains. Yes it will not give you instant gains,it is a lazy kind of stock but with an extremly promising fundamentals.Daily vol is around 20,000 sh from which 35 % is on delivery basis.

BET ON : VIDEOCON

If you’re looking to invest in a solid Indian consumer electronics company then Videocon is probably an ideal fit for you. Its stock is not priced too high and a single share of the company is currently trading under the Rs.173 range on the Sensex . It’s a decent fit for intraday movements but considering the situation that the company has been in and the progress it is slowly making. Videocon is a pretty good and robust long term stock. If you have an investment horizon of 1-3 yrs then you should take a look and consider Videocon. A best buy under Rs.150,

Market Cap of Rs.3,964.33, EPS-18.88, P/E-9.16, Book Value of Rs.294.96,

Price/Book- 0.65, Div(%)-10.00, Div Yield(%)-0.52, Industry P/E 4.70

A few years ago Videocon was facing tough competition from foreign companies that had just set up base in India. LG and Samsung had begun to take root in India. They arrived with a host of innovative schemes and products and turned the consumer electronics division in India on its head. Many Indian companies had to match up, either sell out, shut shop or compete on the same level as these companies who had both the resources and the technology to turn profitable in India.

Companies like BPL were beaten down, Onida barely survives .Videocon on the other hand weathered the storm and has gone from strength to strength in the past few years.

Videocon’s bread and butter is without a doubt its television division. The company as it stands is the world’s third largest maker of television picture tubes.

It’s got a worldwide manufacturing presence and has started to boost its sales in other countries too. The company’s acquisition of Thomson has greatly benefitted its television business.

Even though it is not a market leader in televisions in India its manufacturing capabilities allow it to make money. Many companies use Videocon’s technology and license their products to be manufactured by Videocon before retailing them under their own brand names.

The company’s also got a decent enough presence in the field of washing machines, refrigerators and other home appliances.

Recently, Videocon has initiated a total brand makeover with a greener, more environmental friendly theme. The company has plans to do well outside India and will be helped by this new marketing campaign which is projecting the company as one that has had a major overhaul.

Pretty soon the company is also expected to enter the fast growing DTH space with its own Satellite TV service. Of late under the astute leadership of Mr.Venugopal Dhoot, the company has been diversifying into sectors different from its core services including the competitive mobile services market. Its sales have shown a capacity to grow and the company is making money.

Also the company has oil and gas joint venture which extracts 50,000 barrels of oil per day.which is 7% of all oil in the private sector in India.Videocon has bagged exploration and production contracts in countries like Oman, Australia and the Timor Sea near Indonesia.

Besides this it is also in the glass mkt. Videocon produces a superior range of panels and funnels to meet the demand for large-size, flat, and slim CRT display products.

In view of all this it is a good long term bet.

BSE : Declared dividend of Rs 4 a share (or 400%).

A higher income from investments helped the Bombay Stock Exchange (BSE) post a rise in net profit, even though the Asia’s oldest bourse recorded a flat growth in revenue due to lower transaction charges and a drop in income from penalties, fees and other charges in the year ended March 31, 2009.

The BSE board has declared a dividend of Rs 4 a share (or 400%) on the post-bonus equity of Rs 10.2 crore, resulting in a dividend outgo of Rs 42 crore. The dividend will go to a string of local and foreign shareholders, with the top 20 receiving 48% of the payout.

Deutsche Boerse, Singapore Exchange, SBI, LIC, Dubai Financial Group, Atticus Mauritius, Acacia Banyan Partners, Caldwell Asset Management and Bajaj Holdings are among the top BSE shareholders. The exchange posted a total income of Rs 421 crore against Rs 420 crore in the previous year.

Brokers attributed the flat growth to a sharp fall in cash and derivatives turnover which affected the exchange’s income from securities trading.

Despite a fall in turnover-linked income, the BSE saw its net profit rise 18% to Rs 212 crore, thanks to a rise in income from investment and deposits — from Rs 175 crore in 2007-08 to Rs 222 crore last fiscal.

Last year’s stock market turmoil caused a significant fall in trading volumes on bourses, with the BSE recording a 30% decline in turnover to Rs 11 lakh crore in 2008-09 compared with Rs 15.8 lakh crore in 2007-08.

The BSE recorded a 30% drop in transaction charges to Rs 77 crore, while income from other charges amounted to Rs 40 crore compared with Rs 48 crore in the previous year. A higher net profit has boosted BSE’s net worth from Rs 1,559 crore to Rs 1,728 crore.

-- an article by ET dt:14th July 2009

(Also read a post on BSE dated: Nov 13 2008 & Nov 20 2008)

INDIA GDP GROWTH : A PREDICTION

Predictions about India GDP growth
Allianz, a major financial and insurance services provider has estimated that in 2009-10 fiscal gross domestic product of India would be growing at 6.5 percent. It says that even though economic recession has hit almost every financial market in world, emerging Asian economies like India would be growing, all be it at a slow pace.

Allianz says that growth of gross domestic product of India would be decidedly slow at first two quarters of financial year 2009-10 but would pick up in last two quarters. They have expressed that since there are sufficient and efficient capital and foreign exchange controls in place in India, it would be able to tide past difficulties like capital movements that can be extremely volatile.

Economic surveys conducted in India during February of 2008 fiscal had reported that gross domestic product of India would be growing at a rate of 8.7 percent. This was supposed to follow up impressive statistics of 2006-07 fiscal, when rate of growth of gross domestic product was 8.7 percent.

Much of this optimism was based on increase of rates of savings and investments in domestic financial circuit. It was predicted that aggregate gross domestic product of India in 2007-08 financial year would be approximately $10,00,82,03,62,968.85. It was expected that this growth would enable Indian economy to grow to one trillion dollar mark in near future.

In terms of nominal exchange rate, gross domestic product of India was supposed to be $1.16 trillion dollars in 2007-08 financial year. Per capita income in terms of nominal exchange rate was around $1,021.

Actual situation of India GDP growth
Actual picture is pretty different from what has been predicted. It is being assumed that in present scenario of economic recession, growth rate of India GDP would slip, if India's national government does not introduce economic stimulus packages.

NSE : Market methodology changes to FREE FLOAT METHOD

The National Stock Exchange’s index NIFTY will shift to free float capitalisation from market capitalization method from June 26th 2009. Under this method, the weightage of each of the 50 component stocks in the index will be proportionate to the amount of free float.

Free float is the number of shares of company in public hands- stocks that is “floating free”, that which is not with promoters.

Share holdings held by investors that would not, in the normal course come into the open market for trading are treated as 'Controlling/ Strategic Holdings' and hence not included in free-float.

In specific, the following categories of holding are generally excluded from the definition of Free-float:

Holdings by founders/directors/ acquirers which has control element

Holdings by persons/ bodies with "Controlling Interest"

Government holding as promoter/acquirer

Holdings through the FDI Route

Strategic stakes by private corporate bodies/ individuals

Equity held by associate/group companies (cross-holdings)

Equity held by Employee Welfare Trusts

Locked-in shares and shares which would not be sold in the open market in normal course.

The remaining shareholders would fall under the Free-float category.

Free-float factor is a multiple with which the total market capitalization of a company is adjusted to arrive at the Free-float market capitalization. Once the Free-float of a company is determined, it is rounded-off to the higher multiple of 5 and each company is categorized into one of the 20 bands given below. A Free-float factor of say 0.55 means that only 55% of the market capitalization of the company will be considered for index calculation.

Globally, most indices are moving to this system as it is perceived to be more representative of market action. Reliance Industries retained its position as the top weighted stock due to its high free float component (50%), ONGC 3.5% from 8%, NTPC to 1.9% from 6%, Infosys 7% from 3.77%, ICICI Bank 6.45% from 2.96%, Larsen & Toubro 6.41% from 3.27%, SAIL 0.77% from 2.34%. All the fund managers tracking the NIFTY made changes accordingly.

RIL's WEIGHT A HEADHEACHE TO FUND MANAGERS

India Index Services and Products (IISL), the NSE subsidiary which manages benchmark indices such as NIFTY came to know about difficulties to manage RIL weightage in index by fund managers. RIL is the largest market capitalization and with the highest weightage in Sensex & Nifty at 17.7% & 13.3% respectively.

The stock has being biggest contributor to the recent rally accounting to 861 pnts of the 3859 point Sensex up move. Fund managers both local & foreign, are taking a big hit in their portfolios for being significantly underweight on the counter, most of them are forced underweight by 500 bps. As per the SEBI rules local fund managers cannot bet more than 10% of their portfolio on a single stock. Foreign fund managers are bounded by mandates from their investor to stick to similar limits. Thus an average fund manager has lost nearly 2% returns on the underweight on just this stock. RIL’s size has begun to create problems for fund managers and is bound to increase. NSE is making the Nifty a free-float index which will add to its weight and also with completion of RPL merger will add up to 2% weightage. And it is possible that this bluechip giant may end up with a weight of 20%-plus on indices if it uses up its surplus cash for acquisitions. And suppose it does, India will have KOREA like situation where SAMSUNG INDUSTRIES accounts for a fifth or 20%-plus of the market. The most impact is that fund manager’s performance is benchmarked with Nifty and they cannot give more than 9.9% weightage to any stock, they have the risk of underperformance, and also none of the fund managers can take sells call, even if they have negative view on the stock because they are already underweight. A free market call on Reliance Industries is not possible and thus gives RIL a premium valuation.

In the recent rally, the stock outperformed the Sensex by huge margin. While the Sensex rose 47% between March 09 and May 13, the bluechip rose to 68%. This in turn, has taken its weightage up substantially on Nifty from 11% to 13.3% & on Sensex from 15.5% to 17.7%. In such situation, it depends on which way the index moves. If index is going up, then there is disadvantage. But when it fall the fund managers outperform because of under weight.

The only option is either to change the rules of 10% or follow MSCI and apply the 10/40 rule. This 10/40 methodology was introduced by MSCI indices in 2002. Accordingly the maximum weight of securities of a single issuer cannot exceed 10% of market value of the index, and the sum of the weights of all issuers representing more than 5% of the market value of the index cannot collectively exceed 40%.

Suzlon ups stake in REpower (see co. details) to 90.72 pc

Wind turbine maker Suzlon Energy said its stake in Germany based REpower Systems AG has increased to 90.72 per cent, with the acquisition of Martifer Group's 14.4 per cent stake in the company.

Suzlon has completed "the acquisition of Martifer Group's stake in REpower Systems, with a final payment of 87.6 million euro (Rs 574.48 crore)," Suzlon Energy said in a filing to the Bombay Stock Exchange.

With the conclusion of this transaction, Suzlon now holds approximately 90.72 per cent of shares and voting rights in REpower Systems, it further said.

Prior to this transaction, Portugal-based Martifer had held about 14.4 per cent stake in the Hamburg-based REpower Systems and Suzlon acquired it in a two part payment plan.

The purchase of Martifer's stake in REpower by Suzlon was agreed in February 2007 at the time of the joint bid by Suzlon and Martifer.

The Pune-headquartered firm had paid 65 million euro as the first tranche in December last year, hiking its stake in REpower to 73.1 per cent.

This is final tranche of the 270 million euro that Suzlon had agreed to pay to buy Martifer's 22.4 per cent stake in REpower Systems.

Today, shares of Suzlon Energy closed at Rs 125.70, up 2.95 per cent on the BSE ,and on NSE Rs.125.45, up 3 per cent with the volume of 79,853,861 shares traded on NSE and 24,097,763 shares on BSE.

SUZLONs London GDR scrip code(bloomberg)- SUEL:LI; Luxemburge GDR scrip code(bloomberg)- SUEL:LX.

Today REpower Systems AG is trading at 110.65 euros a share with a-

Market Cap: 1,015.439 million Euros.
Share capital: 9,177,039
Earnings: 5.750
Price/Earnings: 19.412.
Last Dividend: 0.571 Regular Cash.
52-Wk High-(09/01/08): 240.370.
52-Wk Low-(10/27/08): 50.520.
Initial listing: March 26, 2002

Global leader VESTAS has 203,704,103 shares & Share size in DKK 1.00. Currently trading at 391.5 DKK.
Market Cap.: 79,750 MDKK
Market Cap.: 10,711 MEUR
1.00 DANISH KRONE (DKK) = 8.9584 INDIAN RUPEE (INR)

Sensex from 1k to 21k : A HISTORY

1000, July 25, 1990

On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000, January 15, 1992

On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992

On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992

On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999

On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000

On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005

On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capitaland IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005

On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005

The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006

The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006

The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006

The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.

13,000, October 30, 2006

The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006

The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007

The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007

The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.The Sensex finally ended with its biggest-ever single day gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007

The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

18,000, October 09, 2007

The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

19,000, October 15, 2007

The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

20,000, October 29, 2007

The Sensex crossed the 20,000 mark in just 14 days all because of huge FII's money inflows into large cap stocks making almost all of the to touch their highs. Index touched intraday high of 20,024 on the basis of DII's & Mutual Funds buying.

Huge buying in midcaps, small caps stocks like RNRL, RPL, ISPAT IND, IFCI etc

21,000, January 9, 2008

Sensex was in the range of 19,200 to 20,000 for 2 months and on 9th January 2008 the index touched to 21,000. This was on an excitment of Reliance Power IPO at Rs.440/sh.

Large caps such as Reliance Ind went to Rs.3050.50, Rel.Cap to Rs.2,695.50, Rel.Infra to Rs.2,654.35, Grasim Ind to Rs.3,400, Aditya Birla Nuvo to Rs.2,456.90.

The very next day Sensex touch to its all time high of 21,206.

On October 27, 2008 Sensex touched its lows of 7697.39 down 1003.68 points & Nifty at 2252.75 in intraday giving a closing of 8,509.56 down nearly 64% from its high due to global recession and selling pressures & 

MAY 18,2009 A two thousand point rally on the Sensex within sixty seconds was the day on which the world saw the largest intra day rise on any index anywhere in the world. The first time was after the Sensex hit the upper circuit, the second time it hit the upper circuit after two hours the roof almost came off!

SEBI had no choice but to suspend trading for the day. Investors were jubilant all day around the BSE.

18th May 2009 WILL BE AN GOLDEN MONDAY FOR THE INDIAN STOCK MARKET, THE FIRST EVER UPPER CIRCUIT

The 30-share Sensex closed 2,110.79 points or 17.34% higher at 14,284.21 and the Nifty surged 651.50 points or 17.74%, to settle at 4,323.15. It hit all 3 circuit limits in today's trade. The trading on both the BSE and the NSE was halted today as markets hit a 20% upper circuit after re-opening in trade. At the beginning of today's trade, 9:55 am, the markets were locked at 15% upper circuit and exchanges halted the trade for two hours. Total trade turnover Cash+ F&O was Rs. 3103 cr.

The Sensex has hit circuits on four occassions — including today — in the past five years.

However, on all three instances Sensex was locked at 10% lower circuit.

Jan 22, 2008: This was the latest instance, when the market hit 10% lower circuit. The reason for the down circut was subprime loss & dismal global markets cues.

Oct 17, 2007:The BSE Sensex crashed by 1743 points on 17 October 2007. The crash was led due to concerns of the Securities and Exchange Board of India (SEBI) issuing new guideline for P-Notes

May 17, 2004:The markets crashed 5 years back when the then incumbent National Democratic Alliance (NDA) alliance lost power during the general elections in 2004.

The UPA's (United Progressive Alliance) clean sweep win has cheered the markets and helped the benchmark indices to hit 20% upper circuit today.

The Sensex saw the 14,000 mark and the Nifty surpassed the 4,300 level for the first time since September 22, 2008.The Nifty May futures ended with 46.85 points premium.

STOCK EXCHANGE & AMBANI's

In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures. It was rumored that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, a bear cartel which was a group of stock brokers from Calcutta started to short sell Reliance shares, its being said that nearly 11 lakhs shares of Reliance were shorted on March 18, 1982 and stock went down from Rs.131 to Rs.121 in minutes. To counter this, a group of stock brokers till recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange. Ambani through his known brokers indirectly bought more than 8,00,000 shares from that 11,00,000 shares sold by bear cartel. 

The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in the Bombay Stock Exchange. The bulls kept on buying and a price of Reliance went to Rs. 152 per share & was maintained till the day of settlement. On April 30, 1982, the day of settlement, the Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares only. To complete the transaction, the much needed cash was provided to the stock brokers who had bought shares of Reliance, by none other than Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an "Undha Badla" (a penalty sum) of Rs. 25 - Rs. 35 per share. With this, the demand increased and the shares of Reliance shot above Rs. 180 in minutes. The settlement caused an enormous uproar in the market and Dhirubhai Ambani was the unquestioned king of the stock markets. He proved to his detractors just how dangerous it was to play with Reliance.

To find a solution to this situation, the Bombay Stock Exchange was closed for three business days. Authorities from the Bombay Stock Exchange (BSE) intervened in the matter and brought down the "Undha Badla" rate to Rs. 2.00/share with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of "The Bear Cartel's adventure". After this incident, many questions were raised by his detractors and the press. Not many people were able to understand as to how a yarn trader till a few years ago was able to get in such a huge amount of cash flow during a crisis period. The answer to this was provided by the then finance minister, Pranab Mukherjee in the parliament. He informed the house that a Non-Resident Indian had invested up to Rs. 22 Crore in Reliance during 1982-83. These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in Isle of Man. The interesting factor was that all the promoters or owners of these companies had a common surname Shah. An investigation by the Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters.