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.