#IndiaStocks

Indian Equity, rather a Culture

[indiastocks]

5 Things You Should Know About India’s New Prime Minister Narendra Modi · Global Voices

[indiastocks]

Rocking boat, Plan your Strategy to get you Ashore

The NAMO rally has really lifted the investment moods. The market is at all time high, with many stocks now on their 52 week highs. The IPO market is beginning to boom and investors have piling amount of cash being invested in India, thanks to the expansionary policies followed in EU and USA. 

These are speculative times, be cautious and always remember the law of averages would bring speculated stocks to their right prices

Their are 3 situations arising

1) Who have decided to rock the boat with NAMO budget 2014:and bullishly positive on the economic outlook: NAMO as we have all seen, is a master in marketing and very likely would continue to keep upbeat with the market sentiments as uptil now. Exit stocks that have no good fundamentals and have risen only on speculations,book profits. Markets will consolidate and will give plentiful opportunities to get in.

Keep value stocks and go long (PSU's esp).

2) Who want to join the boat : Invest in defensive stocks like FMCG and some exposure to perennial stocks of pharma and IT(Upcoming Infosys results will lead IT fluctuation)  . Intraday day is a good bet as we can expect highly volatile markets.Let market sentiments consolidate and picks stocks that show structural growth in quarterly results.

3) Who have accepted peace : Exited before budget anticipating a below average 2014 budget: Great choice! now get set to see the market dancing. Observe budget carefully. Also short stocks that have risen on purely anticipation but did not deserve NAMO interests in this budget. Consolidation is inevitable.

Smart Investor is always  abreast with Business news. So keep yourself updated and adapt accordingly. Happy investing.

[indiastocks]

Someone is sitting in the shade today because someone planted a tree a long time ago.

Warren Buffet

[indiastocks]

[indiastocks]

Pricol Industries: The Gem of Small Cap Auto Sector

A small-cap automotive parts making company Pricol is consistently performing good numbers .Clients include a wide national and foreign car manufacturers like Harley,Yamaha, Benelli, Suzuki and almost every domestic manufacturer.

Company is showing aggressive growth in foreign inflows while domestic sector continues to grow at steady pace too.Grow in cash reserves also show fine health of the company as it can thus invest more in R&D( which is at 3.8% of sales) or fill higher order books with capacity expansion.

Refer http://www.pricol.com/investors/ten-years-performance/

In the past 10 years, it took a small hit in 2009 owning to depression but since then recovered strong even in tough times. With 2014Q2 auto sales nos indicating a brighter brighter future the company is set to sustain/outperform past nos.

Refer http://www.business-standard.com/article/opinion/maruti-suzuki-street-ups-earnings-estimates-114070200798_1.html

Pricol is must have gem in your portfolio that should give much higher returns than the market given the sound and able management of the company.

BUY: LONG TERM

CMP:46

[indiastocks]

Bharat Heavy Electricals Limited

CMP-252

The 'MAHARATNA' company earning profits since 1971-72 and paying great dividends since 1976-77. Though the order book is sound at 1.1 lakh crore and growing, the slowdown in power sector and troubled coal fields had put pressures on this company.A record turnover of 50,000cr in 2012-13 saw a dip to end with just over 40,000cr 2012-14. 

It operates majorly in power, transmission and defence. it is a manufacturer of a range products and systems for thermal,gas,hydro and nuclear-based utility and captive power plants. It is also a manufacturer of range of industrial systems and products. The company is currently in execution on four turbines of 700MW for Nuclear Power Corporation, a 500MW solar plant and an 185million manufacturing unit for commuter rail system

Many opportunities exist in naval guns, field gun, aero engine technology and multi-million dollar projects that the Ministry of Defence has. The BHEL-HAL (Hindustan Aeronautics Ltd) joint venture is in initial stages for developing aero engine technology.It aims for development and manufacture of the indigenous field gun for the Ministry of Defence.

The company is expected to ride big on MODI govt focus on Power and FDI in Defence, both which would provide this company much higher valuations. though the stock has already seen a run up of 40% it is still far below 2010 levels of 2560.

Trading at just 17x PE multiple right now, this is a gem to buy right now with limited downside and mutibagger upside in 2-3 years.

BHEL has a fine management looking to revive the fortunes of the company

For more news http://www.thehindubusinessline.com/companies/competition-from-china-is-no-longer-a-threat-for-bhel/article6160121.ece

Recommend to buy at current levels

[indiastocks]

Today, we are again to make a choice between fiscal prudence and mindless populism

Arun Jaitley, Finance and Defense Minister India

Economic times