Master And Student - All About Stock Markets

Satluj Jal Vidyut Nigam (SJVN) Limited is coming out with an IPO of 415,000,000 equity shares of face value Rs. 10 each.

The company is a hydroelectric power generation company, a 75:25 unlisted joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). Currently, the company is engaged in designing, planning, developing, examining, organizing, executing, operating, as well as maintaining hydroelectric power projects.

Details of the Issue:
Issue Open: Apr 29, 2010 - May 03, 2010.
Issue Price : Rs.23-Rs.26.(Retail Investors to get 5% discount)
Market lot: 250 shares.

So what's in store for retail investors in this IPO?

The expected EPS for current year is around Rs.2.5 and the Book value is at Rs.16.The stock is cheaper compared to its peers, but the issue price could have been priced lower. But still this is a good issue to apply for long term. Fundamentally good stock to buy & hold for long term and not for listing gains.

If you enjoyed this article, please consider sharing it!

ARSS Infrastructure recently came out with an IPO at a price of Rs.350. The issue was well subscribed and listed spectacularly at Rs.650. Currently the price is around Rs.1300, up more than 300% , so what's the buzz?

To start with, the IPO pricing was done wisely and it left a lot on the table for the investors. The company recently declared the current year's earnings and is well within market expectations. They have done about Rs.60 earnings per share and current price it is well priced at 20 times.

So moving forward, the company is expected to do about an EPS of Rs.110 for FY11 and considering at the industry average P/E of 15 times, the stock is more or less priced in.
Hence one can book profits in ARSS Infra considering its sharp run-up from 700 to current levels of 1300 and wait for substantial correction before re-entering this stock.

If you enjoyed this article, please consider sharing it!

We are glad to announce Master And Student Forum - a community to discuss about Indian Stock Markets, Commodities, Futures, Forex,Personal Finance, Insurance and Real Estate.

If you enjoyed this article, please consider sharing it!

It is earnings season again and various institutions and brokerages have come out with their Earnings forecast for Sensex 30 companies for FY11. Most of them have come out with their estimates in the range or Rs.1100-Rs.1250 for FY11 and Sensex target of about 21000, which is about 20% up from current levels of 18k.

Number crunching:
CLSA – FY 11 EPS Rs 1,046.
Morgan Stanley – FY 11 EPS Rs 1,232.
Deutsche Bank – FY 11 EPS Rs 1,10.
UBS – FY 11 EPS Rs 1,146.
Edelweiss – FY 11 EPS Rs 1,080.
Merrill – FY 11 EPS Rs 1,100.

What does these numbers indicate for an investor?

Looking at the above numbers , the consensus EPS is around Rs.1100 and the Sensex at the higher P/E band of 20, would be at 21k, which is not totally unjustified considering higher growth and EPS for the year FY12.Hence any sharp decline would be a buying opportunity, particularly below 15 times forward earnings i.e., below 15k.

But this correction isn't coming yet and keeps elusive.Instead of timing the market, one could always look for investments in Mutual Funds through SIP route, so that one need worry about ups and downs of the markets and still be able to gain in the markets.

If you enjoyed this article, please consider sharing it!