Lakshmi Electrical Control Systems Ltd

Lakshmi Electrical Control Systems Ltd

Lakshmi Electrical Control Systems Limited (LECS), is a group company of Lakshmi Machine Works Ltd., (LMW) Coimbatore, leading Textile Machinery manufacturer in India and one among the three in the world to produce the entire range of spinning machines with annual turnover of around INR 3000 Crores.

LECS was established in 1981, to manufacture LV Switchgear in Collaboration with Sprecher + Schuh, Switzerland.

In 1984, LECS started manufacturing Control Panels and Engineering Plastics Components.We have cultivated manufacturing expertise and superior capabilities to meet international standards. Our strong Engineering team work closely with customers to derive Value Engineering without compromising on Quality.

LECS is fully equipped to build Control Panel for various industrial applications such as Textile Machinery, Machine Tools, Automatic Power Factor Correction (APFC), Energy Saver, Compressors, Variable Frequency Drive (VFD) Panels, Motor Control Center (MCC), Medium Voltage (MV) & Low Voltage (LV) Control Panels etc.

LECS specializes in production of Engineering Plastic Components for Mechanical and Electrical applications. Our infrastructure facilities include a full fledged Tool Room, Electrical R & D, Mechanical testing laboratories and latest version of design software to enhance designing abilities.

Our Quality Management systems are accredited under ISO 9001:2008 standards.

expecting 45 eps this year cmp 450 one can expect 750 in nest 6 months.(its only 2.45cr equity low volumes stock )

Abbott India Ltd BUY (3100.00)

Abbott India Ltd

Abbott India Limited, a publicly listed company, subsidiary of Abbott Laboratories is headquartered in Mumbai and enjoys strong brand equity in multiple therapeutic categories such as Women’s Health, Gastroenterology,
Neurology, Thyroid, Diabetes & Urology, Pain Management, Vitamins, Anti-Infectives and other therapy areas.
 

Abbott India is one of India’s fastest growing pharmaceutical companies. Abbott India’s success is driven by a combination of a highly competent and motivated commercial team, R&D backed products and aided by strong alliances and partnerships with suppliers and vendors. Abbott India employs over 2,600 people and reaches customers through a network of 35 distribution points, catering to over 4,500 stockists and 150,000 retail outlets. The Company has over 100 employees at a state of-the-art formulation plant at Verna, Goa. The manufacturing plant is designed to produce high volume and quality formulations using cost efficient processes and has well equipped laboratories and trained personnel to ensure compliance with international quality standards. Brufen', 'Digene', and 'Cremaffin', Duflac, Vertin are established brands of Abbott India Ltd. In 2010, Abbott acquired Solvay Pharmaceuticals and domestic formulations business of Piramal Healthcare Limited.

	Quarter ended			Year to Date			Year ended
	201406 (3)	201306 (3)	% Var		-	-	201403 (15)	201212 (12)	% Var
Sales	516.91	429.68	20.30	NA	NA	NA	2231.29	1613.09	NA
Other Income	9.60	6.72	42.86	NA	NA	NA	48.22	51.39	NA
PBIDT	79.69	49.19	62.00	NA	NA	NA	316.56	234.50	NA
Interest	0.01	0.03	-66.67	NA	NA	NA	0.08	0.02	NA
PBDT	79.68	49.16	62.08	NA	NA	NA	316.48	234.48	NA
Depreciation	3.49	4.78	-26.99	NA	NA	NA	21.93	19.49	NA
PBT	76.19	44.38	71.68	NA	NA	NA	294.55	214.99	NA
TAX	25.26	14.67	72.19	NA	NA	NA	96.10	70.29	NA
PAT	50.93	29.71	71.42	NA	NA	NA	198.45	144.70	NA
Equity	21.25	21.25	0.00	NA	NA	NA	21.25	21.25	NA

EXPECTING COMPANY TO POST 100 EPS FOR FULL YEAR . ONE CAN EXPECT 4500 RS IN NEXT ONE YEAR SO BUY ON EVERY DECLINE ONE SHOULD HAVE IN THEIR PORTIFOLIO 

COMPANY PROFILE

Welcast Steels Limited was incorporated in 1972. It manufactures and markets alloy steel cast grinding media balls used in the process of grinding in the cement, mining, and thermal power plants in India. It also offers liners. Welcast Steels Limited is a subsidiary of AIA Engineering Ltd.
 

The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as Induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, and metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine.
 

The Company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of Industry. Having been Grinding Media specialists for nearly 25 years, the company has acquired vast experience in th grinding process in the Cement, Mining Industry and Thermal Power plants. The Company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the Industry the specific quality of grinding media to be used for various applications.The quality of grinding media manufactured by the Company has been well established and its products are being supplied practically to all the Cement plants in India. The Company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam. HYKROM product superiority is achieved and maintained by a constant quest for quality and value engineering at Welcast. Product operations are continuously and closely monitored. Quality assurance begins at the root level by employing the optical emission vacuumspectrometer with computer control for instant analysis of molten metal. Casting is done in moulds with sand prepared and tested fully. The microstructure of casting is constantly photographed with the help of an electronic microscope and camera.


it's low equity stock . stock is trading at 9.5 p.e   last one month it has fallen from 725.00 now cmp is at 452.00 buy for long term investment accumulate on every decline .

P & L Account

	Mar 14	Mar 13	Mar 12	Mar 11	Mar 10
Sales Turnover	258.76	265.26	230.30	217.51	147.05
Other Income	0.43	0.50	0.27	0.24	0.65
Stock Adjustments	0.43	-3.10	0.23	1.31	-1.88
Total Income	259.62	262.66	230.80	219.06	145.82
Raw Materials	155.58	158.98	145.57	136.63	83.28
Excise Duty	20.86	23.70	13.00	16.95	10.10
Power & Fuel Cost	31.24	30.91	27.96	24.92	19.61
Other Manufacturing Expenses	30.24	27.76	24.28	21.66	16.14
Employee Cost	9.22	8.78	7.53	6.89	5.96
Selling and Administration Expenses	5.46	5.35	5.29	4.58	3.76
Miscellaneous Expenses	0.51	0.19	0.25	0.14	0.30
Less: Preoperative Expenditure Capitalised	0.00	0.00	0.00	0.00	0.00
Profit before Interest, Depreciation & Tax	6.50	6.98	6.92	7.29	6.67
Interest & Financial Charges	0.65	0.90	0.72	0.72	0.69
Profit before Depreciation & Tax	5.85	6.08	6.20	6.57	5.98
Depreciation	1.47	1.80	2.33	2.90	3.63
Profit Before Tax	4.39	4.28	3.87	3.67	2.35
Tax	1.41	1.45	1.24	1.01	1.08
Profit After Tax	2.98	2.83	2.63	2.66	1.27
Adjustment below Net Profit	0.00	0.00	0.00	0.00	0.00
P & L Balance brought forward	23.88	21.93	19.90	17.63	16.76
Appropriations	0.87	0.87	0.60	0.40	0.40
P & L Bal. carried down	25.99	23.88	21.93	19.89	17.63
Equity Dividend	0.32	0.32	0.26	0.13	0.13
Preference Dividend	0.00	0.00	0.00	0.00	0.00
Corporate Dividend Tax	0.05	0.05	0.04	0.02	0.02
Equity Dividend (%)	50.00	50.00	40.00	20.00	20.00
Earning Per Share (Rs.)	45.83	43.50	40.47	41.25	19.53
Book Value	484.77	443.94	404.38	368.13	328.75
Extraordinary Items	-0.02	-0.01	-0.01	0.00	0.00

Welcast Steels Limited was incorporated in 1972. It manufactures and markets alloy steel cast grinding media balls used in the process of grinding in the cement, mining, and thermal power plants in India. It also offers liners. Welcast Steels Limited is a subsidiary of AIA Engineering Ltd. The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as Induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, and metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine. The Company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of Industry. Having been Grinding Media specialists for nearly 25 years, the company has acquired vast experience in the grinding process in the Cement, Mining Industry and Thermal Power plants. The Company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the Industry the specific quality of grinding media to be used for various applications. The quality of grinding media manufactured by the Company has been well established and its products are being supplied practically to all the Cement plants in India. The Company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam. HYKROM product superiority is achieved and maintained by a constant quest for quality and value engineering at Welcast. Product operations are continuously and closely monitored. Quality assurance begins at the root level by employing the optical emission vacuum spectrometer with computer control for instant analysis of molten metal. Casting is done in moulds with sand prepared and tested fully. The microstructure of casting is constantly photographed with the help of an electronic microscope and camera.

Read more at: http://www.moneycontrol.com/news/recommendations/buy-welcast-steels-targetrs-520-firstcall-research_1123063.html?utm_source=ref_article

Welcast Steels Limited was incorporated in 1972. It manufactures and markets alloy steel cast grinding media balls used in the process of grinding in the cement, mining, and thermal power plants in India. It also offers liners. Welcast Steels Limited is a subsidiary of AIA Engineering Ltd. The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as Induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, and metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine. The Company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of Industry. Having been Grinding Media specialists for nearly 25 years, the company has acquired vast experience in the grinding process in the Cement, Mining Industry and Thermal Power plants. The Company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the Industry the specific quality of grinding media to be used for various applications. The quality of grinding media manufactured by the Company has been well established and its products are being supplied practically to all the Cement plants in India. The Company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam. HYKROM product superiority is achieved and maintained by a constant quest for quality and value engineering at Welcast. Product operations are continuously and closely monitored. Quality assurance begins at the root level by employing the optical emission vacuum spectrometer with computer control for instant analysis of molten metal. Casting is done in moulds with sand prepared and tested fully. The microstructure of casting is constantly photographed with the help of an electronic microscope and camera.

Read more at: http://www.moneycontrol.com/news/recommendations/buy-welcast-steels-targetrs-520-firstcall-research_1123063.html?utm_source=ref_article

Welcast Steels Limited was incorporated in 1972. It manufactures and markets alloy steel cast grinding media balls used in the process of grinding in the cement, mining, and thermal power plants in India. It also offers liners. Welcast Steels Limited is a subsidiary of AIA Engineering Ltd. The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as Induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, and metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine. The Company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of Industry. Having been Grinding Media specialists for nearly 25 years, the company has acquired vast experience in the grinding process in the Cement, Mining Industry and Thermal Power plants. The Company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the Industry the specific quality of grinding media to be used for various applications. The quality of grinding media manufactured by the Company has been well established and its products are being supplied practically to all the Cement plants in India. The Company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam. HYKROM product superiority is achieved and maintained by a constant quest for quality and value engineering at Welcast. Product operations are continuously and closely monitored. Quality assurance begins at the root level by employing the optical emission vacuum spectrometer with computer control for instant analysis of molten metal. Casting is done in moulds with sand prepared and tested fully. The microstructure of casting is constantly photographed with the help of an electronic microscope and camera.”

Read more at: http://www.moneycontrol.com/news/recommendations/buy-welcast-steels-targetrs-520-firstcall-research_1123063.html?utm_source=ref_article

Welcast Steels Limited was incorporated in 1972. It manufactures and markets alloy steel cast grinding media balls used in the process of grinding in the cement, mining, and thermal power plants in India. It also offers liners. Welcast Steels Limited is a subsidiary of AIA Engineering Ltd. The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as Induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, and metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine. The Company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of Industry. Having been Grinding Media specialists for nearly 25 years, the company has acquired vast experience in the grinding process in the Cement, Mining Industry and Thermal Power plants. The Company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the Industry the specific quality of grinding media to be used for various applications. The quality of grinding media manufactured by the Company has been well established and its products are being supplied practically to all the Cement plants in India. The Company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam. HYKROM product superiority is achieved and maintained by a constant quest for quality and value engineering at Welcast. Product operations are continuously and closely monitored. Quality assurance begins at the root level by employing the optical emission vacuum spectrometer with computer control for instant analysis of molten metal. Casting is done in moulds with sand prepared and tested fully. The microstructure of casting is constantly photographed with the help of an electronic microscope and camera.”

Read more at: http://www.moneycontrol.com/news/recommendations/buy-welcast-steels-targetrs-520-firstcall-research_1123063.html?utm_source=ref_article

Somi Conveyor Beltings Ltd BUY (29.00)

The Indian conveyor belt sector saw a sudden growth spurt since the beginning of the last decade. The massive growth in user segments, especially mining, construction, cement and steelmaking, led to increased
demand for this efficient mode of bulk transport. However, it was apprehended that the general slowdown in the economy and in some of these industries could bring down the demand in recent years. This fear was
later proved largely unfounded. The industry estimates for the overall volume varies from around `1,000 crore to `1,200 crore, including trough conveyor belts, textiles and steel. Trough conveyors have wide applications and are used in iron ore and gold, coal and fly ash, aggregates, sand and gravel, pulp and paper, chemicals, and agriculture and food processing. As mentioned, this industry recorded an average growth of 5 percent per annum during the last five years. Going forward, the industry expects a higher growth of 7 percent.

A belt for all occasions

Industry  -------     Types of belts used
Mining: Multi-ply conveyor belts, fire and flame resistant conveyor belts, technical rubber sheets 

Ports:
Multi-ply conveyor belts, self-extinguishing conveyor belts, oil and grease resistant, elevator
conveyor belts, chevron conveyor belts, technical rubber sheets, sliding conveyor belts
 

Construction :Multi-ply conveyor belts, chevron conveyor belts, technical rubber sheets
 

Power stations:
Multiply conveyor belts, self-extinguishing conveyor belts, heat resistant conveyor belts,
pipe-type conveyor belts, technical rubber sheets
 

Earth moving :Multi-ply conveyor belts, technical rubber sheets, chevron conveyor belts, ripcheck conveyor
belts
Tunnel construction:
Multi-ply conveyor belts, self-extinguishing conveyor belts, pipe-type conveyor belts,
technical rubber sheets
Quarries :Multi-ply conveyor belts, ripcheck conveyor belts, technical rubber belts
Agriculture & foodprocessing:
Multi-ply conveyor belts, oil & grease resistant conveyor belts, elevator conveyor belts,
sliding conveyor belts, supergrip conveyor belts, chevron conveyor belts, technical rubber
sheets
Metallurgical industry
Multi-ply conveyor belts, self-extinguishing conveyor belts, pipe-type conveyor belts,
technical rubber sheets

SOMI CONVEYOR BELTINGS LTD is a BSE Listed Public Ltd company having two manufacturing plants located at Jodhpur India, well connected by air, rail & road. The plants are equipped by 100% PLC based fully automatic & computerized machineries. Company is capable to produce New Generatio (Somiflex) Conveyor Belts upto 2000mm Width with Installed capacity of 9,00,000 meters per annum. Company manufactures the World-class Quality Conveyr Belts equivalent to Fenner, Yokohama, Dunlop, Continetal.

  

The plants are located in Jodhpur and is well connected by excellent Rail, Road & Air Line facilities. This place possesses adequate infrastructure and healthy industrial climate. The Company's product is well accepted by the big industrial groups like Cement, Sponge Iron, Power and Mining Sector. Company has introduced the latest technology Conveyor Belts with innovative ideas.

STOCK IS TRADING AT 29.00. PUBLIC ISSUE PRICE IS AT 32.00 RS .

EXPECTING COMPANY GOING TO POST GOOD GROWTH  FROM THIS YEAR .

INDUSTRY  WENT TO DULL EARLIER YEARS BECAUSE OF MINEING INDUSTRY & MANUFACTURING INDUSTRY IN DULL SHAPE . NOW EVERY THING GOING TO SETTLE IN NEXT FEW YEARS .

CURRENT EPS 3 Rs EXPECTING 5 EPS THIS YEAR AND COMPANY GOING TO GIVE DIVIDEND FROM THIS YEAR ACCUMULATE HOLD FOR 6 MONTHS ONE CAN EXPECT 50 RS .

SQS India BFSI Ltd BUY AT 555.00

SQS India BFSI Ltd (THINK SOFT)

SQS India Infosystems Pvt. Ltd. is the leading independent software testing company in India, with a successful track record of over 15 years in over 500 projects executed for over 150 customers in India, North America (US and Canada) and Europe (UK as well as the continent). The company is located in Pune (which is also referred as the “Oxford of the East”), and close to Mumbai. It is equipped with scalable, industrial-strength infrastructure and is also ISO 9001:2008 and ISO 27001 certified. SQS India employes over 500 staff. The key capabilities of the company are in Test Automation, Performance Testing and Agile Testing with a focus on the following industries: PLM (Manufacturing), Banking & Financial Services, Retail, Telecommunications, Online Gambling & Video Games, and independent Software Vendors.

In May 2012, SQS India (location Hinjewadi Unit III, Pune) successfully fulfilled the Green Building Standards required for the certification level ”LEED India for New Construction GOLD”, by the Indian Green Building Council (IGBC). As an occupant of this Green Building, the SQS facility is designed to provide optimum daylight during the daytime, substantial savings in the cooling system through a good architectural design, and benefits to the top floor users, by ensuring that all solar radiation received is reflected back so  the building does not get too warm. Furthermore, the building provides a good level of fresh air in the ventilation system, ensuring a pleasant working environment throughout the day. SQS Management is committed to continued operation of this facility as a Green Building.
SQS India Infosystems Pvt. Ltd is part of the SQS Group, the world's leading specialist in software quality. SQS’ position and expertise as the market leader are the result of over 30 years of successful consultancy. The company’s competitive edge stems mainly from its PractiQ methodology, which is based on many years of project experience and specialist knowledge across a wide range of industries. With over 7,000 completed projects, SQS has a strong customer base, including half of the DAX-30, almost a third of the STOXX-50 and 20 FTSE-100 companies. Our customers include Allianz, Beazley, BP, Centrica, Commerzbank, Daimler, Deutsche Post, Generali, JP Morgan, Meteor, Reuters, UBS and Volkswagen.
Founded in Cologne in 1982, SQS employs around 3,900 staff in Europe, Asia, North America and Africa. SQS has offices in Germany, the UK, Australia, Egypt, Finland, France, India, Ireland, Malaysia, the Netherlands, Norway, Austria, Singapore, Sweden, Switzerland, South Africa, UAE and the US. In addition, SQS maintains a minority stake in a company in Portugal. In 2013, SQS generated revenues of 225.8 million Euros.
The company is listed on the AIM at the London Stock Exchange, with a secondary listing on the Deutsche Börse ‘Open Market


EXPECTING 40EPS FOR THIS YEAR AND BUY FOR A PRICE TARGET 650.00 IN NEXT 2 MONTHS 

Neelamalai Agro Industries Ltd BUY 750.00

23-07-2014

Neelamalai Agro Industries Ltd 

Neelamalai Agro Industries Limited engages in the production and sale of tea in India and internationally. The company is based in Coonoor, India. Neelamalai Agro Industries was incorporated on April 21, 1943 as a plantation company based in the Nilgiris. The company was earlier known as Neelamalai Tea & Coffee Estate & Industries, it got its present name on November 17, 1986.  

 The main estates under the company are Katary Estate and Sutton Estate.

Company is virtually debt free.

Stock is trading at 1.18 times its book value

Stock is providing a good dividend yield of 5.69%.

Company has a good return on equity (ROE) track record: 3 Years ROE 29.70

Market value of investments Rs.93.45 Cr. is more than the Market Cap Rs.44.10 Cr.

Company has been maintaining a healthy dividend payout of 44.55%  

                         COMPANY HOLDING STOCKS

AVT Natural Products Ltd. (Face value Re.1/-)  30,45,680 *44=             13.4CR

UNQOTED INVESTMENTS :

AVT McCormick Ingredients Pvt. Ltd. (*)                   31,50,000           3,15,00,000

Midland Corporate Advisory Services Pvt Ltd. (*) 2,50,000               25,00,000

Midland Natural Pte Ltd. (US $ 1/Share) (*) 2,00,000                         100,20,000

AVT Infotech Private Limited (*) 10,00,000                                      1,00,00,000

Value of Land                                                                                   2,69,81,805

                                                                                           ----------------------------

                                           TOTAL                                                          7.3CR

MUTUAL FUNDS INVESTMENTS       AS ON 31 MAR 2013                                                                  13.15CR

Aban Lloyd Chiles Offshore Ltd.                                          3,000 *770     

Tata Consultancy Services Ltd. (Re. 1 /- share)                     2,432 *2586

Great Eastern Shipping Co. Ltd.                                            1,800*361

IL & FS Investment Managers Ltd.                                       16100*26

IL & FS Transportation Networks Ltd.                                 1,000* 234

Nava Bharat Ventures Ltd. (Rs 2/- Share)                             750*245

NHPC Ltd                                                                             4600*23.5

Noida Toll Bridge Co. Ltd.                                                   18,400*33.

Escorts Ltd.                                                                            14100*125

MOIL Limited                                                                        1840*303

Piramal Enterprises Ltd                                                           1720*630

JK Paper Ltd.                                                                           3,200*34.5

Zodiac Clothing Co. Ltd.                                                          300*383

Amtek Auto Ltd                                                                        550 *242

E.I.D Parry (India) Ltd.                                                             1,080*197.7

Sonata Software Ltd                                                                  5,000 *76.9

SRF Ltd                                                                                      460*576

TOTAL AMOUNT                                                                     15.42CR

ENTIRE INVESTMENT -      ABLE TO CALICULATE WAS  49.27CR

 BUT MCAP OF THE ENTIRE COMPANY IS         46.CR                                    

  

EQUITY IS ONLY -63 LAKS 
BOOK VALUE --623.5
EPS-                75.55

52 Week High/Low: 1149.55 / 735.05

BUY ON EVERY DECLINE FOR LONG TERM INVESTMENT   

MARKET LOT IS 100 
STRICTLY FOR LONG TERM INVESTMENT

DISC: NOT HOLDING ANY STOCK RECOMMENDED FOR  INVESTMENT PURPOSE ONLY
 
 

Marico Kaya Enterprises Ltd

15-07-2014

BO0OK PROFIT ON MARICO KAYA AT 310.00 LEVELS WILL WAIT FOR NEXT QUARTER RESULTS THEN WILL BUY AGAIN .RECOMMENDED AT 215.00 LEVELS

12 RULES TO INVEST WISELY

                                                        

Rule 1: Invest regularly

It is important to save and invest regularly throughout various stages of your life. This helps you provide for various goals like buying a house, children’s higher studies and marriage, retirement and many others. Most of these goals require substantial money upfront in order to be fulfilled. Since it is difficult to raise a large sum of money at short notice, it is important to invest regularly and in a disciplined manner over time, to fulfill your goals.

Rule 2: Start investing early in life (and get the power of compounding to work for your investments)

When it comes to investing your money, it is always better to start early in life. The earlier you start investing the more will be your return on investment due to the effect of compounding. The compounding effect helps you earn interest over interest. You can build substantial wealth by investing small amounts regularly over a long period of time.

Rule 3: Never try and time your investments basis tips, market trends or economic outlook

Everyone wants to enter the market at the lowest level and exit at the highest. But it is very difficult or rather impossible to time the market. Instead of making investment decision on the basis of tips, market trend or economic outlook, you should consider the fundamentals of the investment instrument and invest regularly. A disciplined investment approach will help you meet your various financial targets of life.

Rule 4: Inflation and Taxes will eat into your returns. Therefore know your actual returns in hand

An investor must consider two key aspects - inflation and tax - before making any investment decision. An investment product must be judged by its actual rate of return instead of the given rate of return. So, we can say, actual return in hand = given returns - tax – inflation. It is important that an investment instrument takes care of both these priorities.

Rule 5: Diversify your investments across asset classes, to spread your risk

Do you remember the old proverb: “Don’t keep all your eggs in the same basket?” The same applies for your investment portfolio as well. It is important to diversify your portfolio across various asset classes, financial instruments, sectors, geographies etc. Although diversification does not guarantee you profit, it will help minimize the overall risk of the portfolio. In a diversified portfolio, loss in one asset class can be offset by gains from another asset class.

Rule 6: Balance and re-balance your investments as you age

You must maintain a proper balance in investments among different asset classes. As you grow old, you also need to rebalance your portfolio. Ideally, your exposure towards equity (in percentage) should be 100 minus your age. You may have higher allocation towards risky equity asset class in the early stage of your life as there is limited financial liability at that time. But with growing age, a substantial portion of wealth should be transferred to fixed income instruments, which will provide stability to the portfolio.

Rule 7: Expect reasonable returns from your investments and sell, once you have got the returns you seek

It is better to expect reasonable returns from your investments. Once your investments achieve that target, you should book profit and look for other potential investment opportunities. Unreasonable expectations or too much greed can wipe out earlier gains. For example, if you think your investment has the potential to deliver 12% return, redeem the money after you achieve the target and do not wait for further profit.

Rule 8: Get over your mistakes and losses. Learn from them

You may end up losing your hard-earned money due to wrong investment decisions. But it is important that you learn from your mistakes to avoid such losses in the future. Before investing in financial instruments you should consider whether they will help you meet your financial goals and suit your risk appetite. For example, if you need money within a short period of time, you must not make the mistake of investing in equities as they are meant for the long-term.

Rule 9: Never invest or sell in haste (and regret later)

Investments in every asset class need thorough and detailed analysis. You should restrain yourself from buying or selling in haste as that may lead to financial losses. If the fundamental aspects of your investment instrument are good, you need not worry about short-term volatility. However, if the fundamentals are weak it is better to avoid such an instrument even if it looks attractive. Proper study and homework are necessary to make profits from your investments.

Rule 10: Avoid investing in complicated products you don't fully understand or products that offer unrealistic returns

Remember the old proverb: “All that glitters is not gold.” There are many investment products available in the market, which are complicated and are not easy to understand. Some products also lure investors with unrealistically high returns. You must stay away from such products as they may contain some hidden risks which are either unknown or are not completely understood.

Rule 11: Spend time on your investments (it’s your hard earned money) or get a good financial advisor to do it for you

You should devote sufficient time before and also after making an investment. Consider the risks associated with the investments and the potential return such investments can generate. Proper homework will help you choose the right investment product and track the performance of the same on a regular basis. However, if you do not have the time or confidence, you can take the help of a good financial advisor who will do the job on your behalf.

Rule 12: Keep it simple, invest in Mutual Funds

Mutual funds help diversify your portfolio across various asset classes and you may achieve both long-term and short-term financial goals by investing in mutual funds. In mutual funds, a team of professionals manage your money and make the investment call on your behalf. Liquidity and low cost structure make mutual fund investments attractive. Besides, mutual funds are regulated by the Securities and Exchange Board of India. Strict regulatory vigilance ensures fair and transparent dealings in the industry and also safeguards the interest of investors.