Aster Silicates Ltd IPO Message Board (Page 11)

I hope month of July is very good month for IPOs.

Technofab
Hindustan Media
Engineers India
UCO Bank

any more good issues?

4.35 times in retail till 4 P.M

NEW I P O

HINDUSTAN MEDIA VENTURE LTD.

5 th TO 7 tH jULY

FORMS ARE AVAVAILABLE WITH BEEDING CENTRES .

.

HI TO ALL
RETAIL = 3 TIME TILL 3.00pm

3 Times in retail till 3 PM.
enjoy the investing !!!

2 Times in retail till 2 PM

Hi Ravi,

I'm new to markets and investing.
Wish to start afresh.
I like the honesty and objectivity with which you comment.

So I guess you sound the kind of person I can talk to :)

As I said, Im wishing to start investing. I dont know trading and dont wish to do it.
Im here to stay put.

Could you share some basics on portfolio construction? Like
1) How many stocks?
2) How much money to invest per stock (i know this doesnt have a standard answer but atleast how much?)
3) When to buy?
4) When to sell?

Thanks a lot in anticipation!

81. HEMANT

Mahindra Holidays, Jubilant Foods are not advised by Brokers. Your observation is right. However, Cox & Kings & Oil India were advised by Brokers. You need to correct.

Investors should not rely solely on Brokers' recommendation. They should be used them only as a source of data that complements investors' research, rather than completes it.

Although some brokerage house reports could be biased or may have vested interest, but it is a great source of informaion. You cannot outrightly reject them.

Brokers' don't represent that the information is accurate & it should not be relied upon as such. Investors should take an informed decision on their investments after independent verification & analysis.

Even if you go completely against Brokers' report, even then also you run a risk of loosing. There is no perfect formula in investment world.

1.4 times till 12 in retail

.95 in retail already at 11 P.M.
In retail it will go around 5 times

what are the latest subscription figures?

Sahranpuri Ji you have still not answered my question regarding your application for Technofab IPO.Gem you were expressing apprehensions regarding Technofab being present in Oil & Gas.Have decided yet on applying for Technofab?


Hindu Business line recommends Technofab-----------------

Technofab Engineering – IPO: Invest at cut-off

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Strong growth in earnings over the last couple of years, low gearing and presence in lucrative segments such as water management are key positives.


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Vidya Bala

Those with a high risk appetite can consider investing in the initial public offer of small-sized Engineering, Procurement and Construction (EPC) services player, Technofab Engineering, with a two-year perspective. Strong growth in revenues and earnings over the last couple of years, low gearing, presence in lucrative segments such as nuclear power and water management are the key positives for this company. The offer price band of Rs 230-240 discounts the likely per share earnings for FY-11 by 7.6-8 times. The valuation is at a discount to comparable peers such as Hindustan Dorr Oliver and BGR Energy Systems.

The company and offer

Technofab started off as a piping, valves and pressure vessels fabricator catering to power, steel and other metallurgical sectors. The company later expanded its scope of work and undertook comprehensive turnkey projects in power transmission and distribution as well as water and waste management. Its sales for the year ending March 2010 was Rs 200 crore; profits stood at Rs 19 crore. The company plans to raise about Rs 70 crore to meet long-term working-capital requirements and fund procurement of equipment. At the higher end of the offer price band, the company would have a market capitalisation of Rs 250 crore on listing, making it a small-cap stock.

Fast track

Technofab has managed to ramp up its revenues at a compounded annual rate of 48 per cent over the last three years, while profits leaped by 189 per cent annually, albeit on a low base.

Thanks to the increased opportunities in conventional and nuclear power as well as increase in water and sewerage management programmes over the last few years, Technofab has managed to receive orders from public and private companies.

Projects from Nuclear Power Corporation of India and NTPC serve as good reference points for future orders, as pre-qualification is a key criteria in public sector bids.

The company has also made inroads in West Asia and Africa. Close to a third of its current order-book (together with L1 orders) are international projects. Water-related projects in countries such as Kenya and Ethiopia can be expected to deliver higher returns.

Technofab's steady sales growth, combined with rapid profit growth and spike in profit margins, suggest that the company has focused on profitability rather than topline. Its operating profit margins also reflect this strategy. OPM at close to 17 per cent is far ahead of the industry average.

However, the company may miss out on the volume-driven opportunities domestically, especially in the power transmission and industrial space. Technofab's current order book at Rs 533 crore (plus over Rs 400 crore of orders where it is the lowest bidder) is tilted towards conventional power and nuclear projects, which is likely to ensure that that the current profitability is sustained.

While about 25-35 per cent of the orders may be protected by price escalation clauses, the rest may be exposed to commodity price hikes.

However, given the average execution cycle (12-20 months) and that its OPMs steadily increased over 2008-2010 (when commodity prices peaked and later crashed) suggests that the company has managed its raw material costs well.


Challenges

However, foreign exchange management may be a cause for concern. While only 10 per cent of revenues were derived from overseas in FY-10, this proportion was 40 per cent in FY-09. The current order book has a chunk of international projects. While the company may protect itself partly through natural hedge — by procuring in similar currency, it may still be subject to risks of currency volatility.

Another key area of challenge for Technofab would be to scale up its size to bid for larger projects. Gammon India, a strategic investor in the company may, however, provide support in terms of financial qualification. Together, the two companies may complement each other with their respective financial and technical resources.

how many time subscription in retail ?

Well said Mr.Ravi

Follow the Rumour, Risk Your Financial Health

Buy the rumour, sell the news goes the old adage. One sees this playing out in markets all the time. Share prices inch up days before a company announces its results only to correct immediately after the company declares record profits.

A few days ago, ICICI Bank stock saw its price tumble 3.5% during the day, on market rumours posted on a blog. Though the stock subsequently recovered with the bank denying any such thing, this has important lessons for retail investors to learn. One of ten rumours may be true, so if you are an investor, do wait for verification before acting on the news.

There are a lot of unregulated entities who keep feeding markets with rumours, short-term and positional calls on the stock markets. If and when investors subscribe to these services, they must clearly know that these are not necessarily easy-money spinning calls and by subscribing to these services the investor is taking a risk. These can be stock price manipulation attempts and you may be caught on the wrong side of the activity. Also there are instances where you receive SMS’s from unknown entities giving some information about or a trading call on a stock. Be very careful before acting on the stock. Instances have been observed where volumes are created in the market, spreading information using bulk SMS service, to offload one’s position.

You should not trade a stock when adverse rumours are already floating in the market on the same. Buy on rumour and sell on news has been the norm in stock markets for a long time. It makes sense not to act on news that has come after a long rumour mill in the market.

Examples are bounus, stock-split, IT raid, tax refund, winning case in court etc.

It is likely that the impact of the development is already factored in the market price and ‘early birds’ may prefer to book their profits upon confirmation of news. In that case the stock moves contrary to the impact anticipated.

this ipo will sail through easily because of setting.there will be no subscription in qib..only hni and retail category sub. will be there..because of gurenteed return

Hi All,

Must stocks to buy on Moday for appreciation of 100% in 1 year.

1) Bharti Airtel
2) K Sera Production
3) Visa Steel

All these companies are avaialble at discount rates and are good profit making companies
Buy thses stocks both for short term return as well as long term

Application kostak rate 1400
Share form commission:-300 Rs
Share premium:- 4.50 buyer
5.50 Seller..
listing rate...95 to 99

Application kostak rate 1150
Share form commission:-300 Rs
Share premium:- 4.50 buyer
5.00 Seller..

.35 times in retail till 3 PM
it will sail thru easily