TOP 20 IDEAS FOR 2012 TO 2015

WE R HEREBY GIVING 20 TOP IDEAS FOR 2012 TO 2015, WE  RECOMMEND  TO  INVEST  EQUAL AMOUNT IN ALL THE SCRIPS i.e. IF U WANT TO  INVEST  RS.5 LACS THEN DIVIDE  RS.25000 EQUALLY AND SELL ONLY WHEN U GET AS LEAST 50% RETURN IN TWO YEARS  AND 100% RETURN BY 2015 1. Asian Paints (Present price: 2700) Asian Paints is the market leader in the domestic paint industry, accounting for around +50% overall market share and +60% share in the decorative market. The company has clocked 20% higher than industry growth in volume terms over the last five years.

Asian Paints has a strong brand, enhanced dealer network with 27000 outlets and focus on premium emulsion segment. The company has clocked a net profit of Rs.472.4 crore on net sales of Rs.4511 crore during H1FY‟12, translating into an EPS of Rs.49.25.

The company‟s products have a strong replacement demand which should help it sail through tough times. With improving demographics, increasing brand awareness, we expect Asian Paints to emerge as a key beneficiary.

2. Dabur India (Present price: 96) The brandname, Dabur has become synonymous w. The company with its wide range of products is emerging as a key player in the Indian FMCG market. With the acquisition of Fem Care Pharma and Balsara's Hygiene and Home products businesses, the company is strategically placed to reap the benefits.

At present, the company is rejigging its distribution structure and increasing the number of outlets and doubling the rural reach by penetrating sparsely populated areas, the complete benefits of the same should be visible from FY‟13E onwards. Dabur India should clock an EPS of Rs.3.6 and Rs.4.3 by FY‟12E and FY‟13E respectively.

3. Dr. Reddy’s Laboratories (Present price: Rs.1650) The company registered strong Q2FY‟12 results on the back of significant improvement in the topline. We expect this trend to continue going forward also. We expect significant improvement in earnings by FY‟13E since Russia and CIS which contribute 15% to the turnover, are expected to grow by ~20% on the back of significant volume growth in 20 key brands.

4. Gas Authority of India (GAIL) (Present price: Rs.370) Post ~30% correction from its 52-week high levels, GAIL (India) Limited‟s share has emerged as a significant value-buy at the present levels. The company is the leader in the gas transmission and trading and continues to maintain this position going forward also. With the demand for natural gas from the end-user industry rising, demand for transportation of the same is expected to remain robust going forward.

During H1FY‟12, the company registered a PAT of Rs.2079.1 crore on net sales of Rs.18566.4 crore, translating into an EPS of Rs.16.4. 5. HDFC Bank (Present price: Rs.485) The Bank has grown it‟s net profit consistently at a CAGR of +30% over the last several years. More commendable is the fact that this growth has been achieved along with consistent improvement in asset quality. The Bank‟s loan book is equally divided between the retail and the corporate segments. In the corporate segment, HDFC Bank finances mostly working capital loans in case of corporates. The Bank has a strong liability franchisee with CASA ratio quoting at 47% of the total deposits. A high CASA ratio leading to effectively lower cost of funds has helped the Bank clock the highest NIMs ( next only to Kotak Bank) in the banking space. During H1FY‟12, the Bank has registered an Interest Income of Rs.12695.7 crore, an increase of 37.6% y-o-y. The net profit for the corresponding period stood at Rs.2284.3 crore, an increase of 32.5% y-o-y.  6. Idea Cellular Limited (Present price: Rs.84) We feel that inspite of a number of policy overhangs, telecom stocks have a significant potential for appreciation going forward. We believe that tariff hikes have seen their bottom levels, which would lead to improvement in revenues as well as margins. Since Bharti is grappled with foreign debt in its books to fund the African acquisition, MTM loss on this debt would lower its PAT, Idea Cellular should emerge as a key beneficiary in the sector.  7. IndusInd Bank (Present price: Rs.280) With the new management under the leadership of Mr. Romesh Sobti in place, IndusInd Bank‟s net profit has registered an almost eight-fold jump to Rs.577 crore in FY‟11 from Rs.75 crore in FY‟08. The Bank has clocked higher than industry growth and almost doubled the Balance Sheet size and the income earned during this period. The CASA ratio has also doubled during FY‟08-11 from 14% to 28%. The management has targetted for CASA deposits for FY‟14 stands at 34%. Over the next two years, the management has guided for almost doubling of the branch network compared to the present figure of 350. The major growth in the loan book should come from the consumer finance segment and the enhanced branch network should provide a significant opportunity to cross- sell, leading to higher growth in fee income compared to the loan book growth.  8. Infosys (Present price: Rs.2590) Unlike in 2008, the IT sector has shown a significant resilience this time and Infosys should be a key beneficiary of the same. The depreciating rupee also augurs well for IT companies and Infosys has the highest proportion of unhedged receivables amongst the top IT players. The management has guided that it may not abe able to achieve the top-end of the guidance, however, we feel that this negative element is already being factored in the present price. 9. ITC Limited (Present price: Rs.200) Cigarettes contributed 64% and 80% to the FMCG revenues and gross total revenues during H1FY‟12. The contribution of the cigarette segment to the consolidated EBIT stood at 80% during the same period. Cigarette sales are least impacted by factors which impact the markets in general, whether interest rates or high commodity prices. The company has been able to not only sustain volume growth inspite of hike in duties on cigarette but also maintained margins very well. ITC is the second largest hotel-chain operator and the largest paperboard and packaging companies in the country. The company has scaled up rapidly in the FMCG space, which not only requires establishment of new manufacturing operations but efficient and widespread distribution channels.  10. Sun Pharma (Present price: Rs.525) Sun Pharma holds 4.4% market share in the highly- competitive domestic pharma market, per latest AIOCD report. The company is now ranked no.1 based on share of prescription classes of specialists. Sun Pharma has 388 ANDA filings till date with 150 ANDAs pending for approval. This is the highest number of filings by an Indian pharmaceutical company. The company has reported excellent financial numbers with net sales and PAT registering a CAGR of 28% and 27% respectively. The company has clocked a 30% growth in topline during H1FY‟12. We expect the same trend to continue for the balance portion of the year also. MIDCAP IDEAS  11. Arshiya International(Present price: Rs.135) Arshiya International has pioneered the unique concept of setting up Free Trade Warehousing Zones(FTWZ) in the country with first FTWZ already set up at Panvel. The company‟s other FTWZs are expected to come up at Khurja in the north, Nagpur in Central India and Chennai in South India which would be eventually linked through the rail route. With it‟s own FTWZs, distriparks and rail network, Arshiya should be able to provide an end-to-end logistics connectivity to all its clients.  12. Delta Corp (Present price: Rs.72) With 3 out of 6 off-shore licenses in the state of Goa, Delta Corp is the largest and the only listed casino operator in the country. The gaming positions in the company are expected to increase from the present figure of 690 to +3000 over the next 9 to 12 months on the back of addition of a new vessel, Horseshoe, to the existing fleet and commencement of operations of “Thunderbird Resorts” in Daman. The company has got the best parcel of land in Sri Lanka and would be setting up a five- star hotel and a casino. In addition, the company also operates real estate business in Kenya through a 40: 60 JV with a subsidiary of Reliance Industries Limited. Delta Corp would build around 1.2 million square feet of real estate space in Kenya. 20 ideas for 2012 13. Goodyear India (Present price: Rs.295) Goodyear has one of the strongest Balance Sheets in the tyre sector. The net cash and cash equivalent of the company stood at Rs.217.9 crore, translating into a cash per share of Rs.94.4. This figure is equivalent to more than 30% of the present price of the company. The company has posted a PAT of Rs.44.3 crore on net sales of Rs.1118.8 crore during 9MCY‟11. We expect the operating profit margins to improve going forward on the back of fall in the price of its key raw material, natural rubber. The parent company had come up with a delisting offer in April 2010 which eventually did not go through.  14. MRF (Present price: Rs.7100) The company has got an excellent Balance Sheet with reserves to equity ratio quoting almost 400 times. The company has posted a net profit of Rs.338.7 crore on net sales of Rs.9743.9 crore during FY‟10(September year-ending company). On a small equity of Rs.4.24 crore, the EPS stood at Rs.798.8. At the present price, the stock is available at 8.3x its TTM earnings. We expect the company to post an improvement in margins going forward on the back of weakening rubber prices.  15. Navneet Publications (Present price: Rs.56) The company is one of the pioneers in education field and has a strong foothold in the states of Maharashtra and Gujarat. The company has almost doubled its revenues and PAT over the five year period FY06-11. Navneet has a debt-free Balance sheet and recently the company has entered the Andhra Pradesh education sector by acquiring a stake in K-12 which manages schools under the brandname – Gowtham.  16. NIIT Technologies (Present price: Rs.210) NIIT Technologies has a strong order book and the company‟s valuations are compelling at the present levels considering a turnover of Rs.1400 crore and a PAT of Rs.182 crore, translating into an EPS of Rs.30.9 in FY‟11. During H1FY‟12, the company has clocked a turnover of Rs.700 crore and a PAT of Rs.87 crore. The net cash and cash equivalent in the company‟s book as on September 30, 2011 stood at Rs.25 per share (~14% of the present price). The company has a decent dividend yield of approximately ~4.5%. NIIT Technologies has had an excellent dividend payment track record. The dividend ratio for FY‟11 stood at 75% and payout ratio stood in excess of 25% over the last five years. We expect this payout policy to continue in future also. 17. Pfizer (Present price: Rs.1180) This MNC pharma company has a debt-free, cash-rich Balance Sheet with net cash and cash equivalent totaling to Rs.294 per share. This is equivalent to ~27% of the present price. The company has clocked a PAT of Rs.88.2 crore on net sales of Rs.513.7 crore during H1FY‟12. This translates into an EPS of Rs.65 for FY‟13. At the present price, the stock is available at 12x 1-year forward earnings(after knocking off the cash). The stock has corrected by one-third from it‟s 52- week high levels.  18. Polyplex Corporation (Present price: Rs.170) There is significant value in Polyplex Limited after the correction in the stock price over the last one and a half year. The company has a clean Balance Sheet and is funding the expansion plans in Thailand, USA through internal accruals only. During H1FY‟12, the company has posted a net profit of Rs.124.6 crore on net sales of Rs.1251.9 crore, translating into an EPS of Rs.38.9.  19. Vivimed Laboratories (Present price: Rs.292) Vivimed Laboratories has registered phenomenal growth in performance over the last few years. The net sales of the company stood at Rs.416 crore in FY‟11 from Rs.276 crore in FY‟09. The net profit during the same period has grown from Rs.19 crore to Rs.48.8 crore. The company has acquired Spain-based Uquifa and has joined the big league of pharma companies to clock a turnover in excess of Rs.1000 crore in FY‟13 ( compared to Rs.650 crore in FY‟12). The company would be able to maintain the PAT margins equivalent to ~10%, a figure which it had been maintaining in the past also, leading to a two-fold growth in PAT compared to FY‟10 figure of Rs.31.01 crore. 20. VST Industries (Present price: Rs.1230) VST Industries has reported the best sales and PAT figure for FY‟11 in it‟s history inspite of an increase in duties on cigarette imposed during the Union Budget 2010. The company has been clocking a dividend pay-out ratio in excess of 80% over the last three years and we expect the same trend to continue going forward also. During H1FY‟12, the company has registered a PAT growth of 61%. We expect the company to end FY‟12 with an EPS of atleast Rs.78 and a dividend of Rs.60 per share. This translates into a dividend yield of ~5.5%. VST Industries has a debt-free, cash-rich Balance Sheet to the tune of Rs.134 per share as on September 30, 2011.

1ST BINGO! DELTA CORP F&O REACHED OUR THIRD TARGET OF 73.80

ON 18.01.12 WE RECOMMENDED TO BUY DELTA CORP FUTURES AT CMP OF 68.50 WITH A STOPLOSS OF 66 FOR A TARGET OF 70.40, 71.80 AND 73.80. OUR THIRD TARGET OF 73.80 ACHIEVED TODAY. BINGO!

2ND BINGO! DELTA CORP REACHED OUR SECOND TARGET OF 71.80

TODAY WE RECOMMENDED TO BUY DELTA CORP FUTURES AT CMP OF 68.50 WITH A STOPLOSS OF 66 FOR A TARGET OF 70.40, 71.80 AND 73.80. OUR SECOND TARGET OF 71.80 ACHIEVED TODAY ITSELF. BINGO!

1ST BINGO! DELTA CORP F&O REACHED OUR FIRST TARGET OF 70.40

TODAY WE RECOMMENDED TO BUY DELTA CORP FUTURES AT CMP OF 68.50 WITH A STOPLOSS OF 66 FOR A TARGET OF 70.40, 71.80 AND 73.80. OUR FIRST TARGET OF 70.40 ACHIEVED TODAY ITSELF. BINGO!

BUY DELTA CORP F&O AT CMP OF 68.50 WITH A STOPLOSS OF 66

WE RECOMMEND TO BUY DELTA CORP F&O AT CMP OF 68.50 WITH A STOPLOSS OF 66 FOR A TARGET OF 70.40, 71.80 AND 73.80

BEJAN DARUWALLA PREDICTIONS FOR INDIA AND THE WORLD

HOPE FOR THE WORLD!

My lord and master Ganesha says that the world is right now under the terrible and titanic grip of Tsunami. It is a time of despair suffering and misery for them. And, we all sympathise with Japan during their tragedy.

My master Ganesha also says that these horrible times will start fading away from roughly 27^th June 2013 onwards. The time will certainly be better and more hopeful from then on. Now, this might appear to be a long-long time far to you my darling readers, but it is only a small wink in the history of the 21^st century. You will be there even before you realise, for time flies!

I have said time and again that India will be a super-power of the 21^st century. The things will become only better in coming times. There may be nagging problems of inflation and all, but hope for the best, for best is yet to come!

The present crisis and turmoil in the Middle East will be resolved latest by October 2012. Why? As per Western Astrology, Saturn has been in Libra since October 2009, and shall remain there till 2012 Saturn. Libra means Justice. And Saturn corresponds to the poor, common, weak masses of the world. The result is, well, obvious. They will get justice! Tyrants and dictators will be toppled over and dethroned. We do know what has happened in Egypt, and what is happening in Libya and other countries like Bahrain. The richer countries of the world too are joining hands to support these nations, and that now is a first.

I am 80 years old. My lord and master is Ganesha. I also respect Allah, Christ and Zoroaster. What I have stated is from my own 2010 astrology book - pages 9 and 10. Now in the end, what is most important is that the future of humanity is bright and glorious. I may not live to see it. But I am absolutely convinced that my young readers will be happy in life. They will have luck, life and laughter. 

2012: THE YEAR OF DRAGON

THE YEAR OF THE DRAGON, 2012

01/23/2012 - 02/09/2013 (Water)

According to the Chinese Zodiac, the Year of 2012 is the Year of the Dragon, which begins on January 23, 2012 and ends on February 9, 2013.  The Dragon is the fifth sign of the Chinese Zodiac, which consists of 12 Animal signs.  The Dragon is a creature of myth and legend.  In ancient China, the celestial Dragon represents an emperor and  power. Today, it  is the ultimate auspicious symbol signifying success and happiness.   May the celestial Dragon bring great good luck to everyone.

In Sung Dynasty (a Chinese imperial dynasty lasting from AD 960 - 1279) texts, the dragon is described as having the head of an ox, muzzle of a donkey, eyes of a shrimp, horns of a deer, body of a serpent covered with fish scales, and feet of a phoenix.  The dragon usually clutches a pearl symbolic of its super-natural powers.  Invariably accompanied by thunder and rain, dragons move like lightning and whirlwinds - - all powerful yet totally unpredictable.

               

      

The Sign of the Dragon

People born in the Year of the Dragon share certain characteristics:  Innovative, enterprising,  self-assured, brave, passionate, conceited, and quick-tempered. The Dragons are the free spirits of the Chinese Zodiac. Restrictions blow out their creative spark that is ready to flame into life.  So, they must be free and uninhibited.  The Dragon is a beautiful creature, colorful and flamboyant.  An extroverted bundle of energy, gifted and  irrepressible, everything Dragons do is on a grand scale - big ideas and extreme ambitions.  However, this behavior is natural and isn't meant for show.  Because they are confident, fearless in the face of challenge, they are almost inevitably successful. 

People born in the Year of the Dragon usually make it to the top.  But, they must be aware of that too much enthusiasm can leave them tired and unfulfilled.  They find pleasure in helping others, and you can always count on their help.  Even though they are willing to assist when necessary, their pride can often impede them from accepting the same kind of help from others.  Their generous personalities give them the ability to attract friends, but they can be rather solitary people at heart.  Their self-sufficiency can mean that they have no need for close bonds with other people.

Dragon people tend to take thrilling risks, and burn the candle at both ends so they are fortunate to be blessed with good health.  However, they can suffer bad health as a result of excess stress.  Symtoms of their personalities often stem from emotional outbursts and can range from tension headaches to depression to hypertension.  They can remedy these problems by maintaining their cool, implementing a routine in their daily lives, and practice meditation, Tai Chi or Yoga that soothe the mind and spirit as well as tone the body.

The Dragon is not the most domesticated of the Animal signs.  So, people born in the Year of the Dragon  prefer enjoying outdoor activities rather than staying at home.  They are extroverts who have a deep love for nature. Their homes should be as large and majestic as their personalities, providing space for the fiery temperament or emotional eruptions that accompany their character. They have true and sincere love, which comes from the depths of their hearts.

HAPPY NEW YEAR 2012