logo ki maa ..... jayegi. it will list around 250 n would fall around 150 within 6 weeks. remember my words... grey mkt is lollypop for retail investors.... chuste raho aur peeche se marwa lo
If Fair value 128, 40000 lose/per/appl. Fixed gray market and appl. Rate fargi hi govt. Tumko phasanay kay liya dana daal rahi hi, jaisay NHPC may dala tha ,appl. Koi 1000 my buy karnay ko tayar nahi hi 4000, 5000 ullo bananay ki baat hi,mai govt. Ko chalange karta hu 1000 rs. Pay lakho log apni appl. Sell kardaygay.
Due to current market condition Grey market will stop the premium of Coal India with 4500 today at 4 p.m. It may be open again on Monday with market moods. Sameer Trivedi 9825472919.
Coal India has good fundamentals. Go for It.... long term main accha returns aayega
693. Eagleye| Link| Bookmark|
October 15, 2010 12:47:58 PM
IPO Guru (6600+ Posts, 21900+ Likes)
I have studied CIL in reasonable detail, its looks like a very good story.
Everything that the market loves in a stock is there in this stock:
1) High Margins with scope of further margin increase. 2) High Return on Net Worth (RONW) / Return on Equity (ROE) 3) Lots of Free Cash Flow (FCF) 4) Virtual Monopoly 5) Extremely clear visibility of earnings and earnings growth 6) Tremendous pricing power
Key Risks are:
1) It is a government controlled company at end of day – so regulatory risks are there in terms of pricing 2) Main customers are Thermal Power Generating companies – and Power is a thrust area for the government – Coal is an important input cost – so pricing freedom will be curtailed.
I do not see any other risks.
The Government’s proposed amendment of the Mines and Minerals Development and Regulation Act which is expected to be tabled in the Winter session of Parliament which is basically a proposal to impose a new tax on mining companies, amounting to 26% of previous year’s profits, would have a marginal impact on CIL. The company already has one of most liberal and best R&R policy among mining companies in India and already – meaningful expenses towards CSR activities mean that the new mining tax proposal would only have a marginal impact on CIL.
CIL assures one job per two acres of land acquired. More importantly, CIL’s offer for employment is not contingent on suitability. The cost of requisite training for employability is borne by CIL. In addition, the social overhead expenses over FY09-10 amounted to 24-50% of previous year’s PAT.
As per the company, a large proportion of this expense is related to CSR activities undertaken in the mining areas. Hence, the management believes that it already does more than what is mandated by the proposed amendment of the Mines and Minerals Development and Regulation Act.
As per Moti Oswal report – this should be valued like utility company because of its steady business, so it says 18 P/E is fair (that’s what NTPC / PGCIL are trading at)
FY'11 EPS estimates are as follows – CLSA = 16.10 Moti Oswal = 18.45 IIFL = 17.76
Dear Frnds, Reliance Power had already given “ZOR KA JHATKA DHEERE SE”, to too many of investors. Having a Govt. tag this is certainly not like Reliance Power but like NHPC and others. So be sure that there will be limited profit or even may be loss. Why one should rush madly even for limited gains. This has govt. tag so be prepared for gain like any debt fund in long term on like NTPC in best case. There are many other counters one can look to invest as long term which is most potent objective of retail category. I don’t see major negative in this IPO but at the same time I am also not bullish. Because the size of this IPO may be dangerous for the entire phenomenal run of the market. Although I am not fully agree by @675 but I like the intension of the contents: @675 : Reliance power me jiska muh kala ho chuka hai usko to Coal India me nahi lagana chahiye varna is baar to kale muh par Coal ke heavy painting ho jayegi...any way …..marjee aapki qki muh bhee aapka he hai….