Skip to main content

What's happening in Punj LLoyd

Punj Lloyd has commenced adjudication proceedings ( through its wholly-owned United Kingdom based subsidiary - Simon Carves) against SABIC Petrochemicals UK after SABIC terminated the contract and called the performance and advance bank guarantees amounting to approximately Rs2.14bn.

Punj Lloyd was expecting these claims to be settled from SABIC by end of Dec,2008. However, with commencement of legal proceedings against SABIC for terminating the contract, one can't expect early recovery of these costs from the client till a settlement is reached.

The company would have to make provisioning to the tune of Rs 2.14 bn in the current fiscal to factor in the present status of the project.This move is one-time negative for the company in terms of adverse impact on the profitability in FY09.

At current price, the stock is currently factoring in most of the negatives related to order inflow slowdown, SABIC order provisioning as well as negative headwinds prevailing in the economy. Moreover,this provisioning is only one time in nature.

At current price of Rs 110, stock is trading at reasonable valuations of 10.8x and 5.4x its P/E multiples on FY09 and FY10 estimates respectively. These valuations currently factor in most of the negatives related to provisions for SABIC order as well as order inflow slowdown.

Investors with long term view can accumulate on declines, for good returns.

Popular posts from this blog

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare



Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…

What is NIFTY BEES - ETF?

NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.




The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.