Outlook for Indian Equity Market-A.K.Prabhakar & Tanmay G Purohit

1. Why should one invest in equities?

There are many investment avenues available – Debt, Equity, Currency, Commodities, Real Estate, many others like Art, Antiques; the list is definitely not exhaustive. Why equity has a good probability to return handsomely – global recession has made indices all over the world drop to historical lows, creating an opportunity for investors. Gold is already near All-time highs, real estate prices themselves haven't dropped to mouth-watering levels so far, and equity is sold off. So by simple logic one choice is equity. Zero interest rates in developed parts of the world make Equity best investment with many company dividend yields around 4-5%.

What is special about India as an investment destination? What's India's strength?

	Parameter	USA	UK	Brazil	Russia	China	India
	Investment to GDP ratio (%)	14.6	16.7	18.6	24.7	40.2	39
	Median Age (Yrs)	36.7	39.9	28.3	38.3	33.6	25.1
	Exports to GDP Ratio (%)	9.44	20.55	9.85	21.39	18.78	5.29

· India has one of the highest savings to GDP ratio. Had it not been for low savings in USA and UK, recession would not have been so deep.

· Young population: India has one of the lowest Median-age of population, living a big working class which doesn't have to serve a lot of ageing population. Many other country nationals will be getting older as Indian youth will blossom in the boom once the recession recedes. Major benefit is that many can speak English easily. English is a world language and China still hasn't developed well in this aspect but they are coping with it.

· Exports to GDP ratio and Imports to GDP ratio is one of the lowest for India, some may think of it as a lagging factor, but it is how you see it. May be reason for why so many economists feel India will not be impacted so much by recession lies in the fact that we have low Exports and Imports compared to our GDP. The closer the economy, lesser the global recession affects you.

· Everybody knows that General Motors may file for bankruptcy but just have a look what Indian auto sector is doing! Maruti has hit all-time high sales figures in Jan and Feb 2009, didn't India have slowdown? How come people buy cars in recession? Thanks to pay commission and economic stimuli! In fact India is becoming export hub for auto like GM was some years ago. Other sectors where exports can do better are Capital Goods, Pharmaceutical and Technology.

· Outsourcing deals have improved and Indian exports in terms of talent and intelligence makes India receiver of one of the highest remittances in the Globe, which is why the economy has sustained well.

So where does India lag behind?

Problem for India is Growth. It's not that India can't grow, but nobody is going to get attracted here by so-called Hindu Growth Rate of 3-4%. Growing at 8-10% will be great as China has done it even with such a huge population base. But how do we get there? So far India has had Consumption-led growth whereas many other nations had Investment-led growth.

· We need more investments into Infrastructure and Power; it is not so difficult with such a high savings rate.

· We need speedier trains. Average speed for Indian trains lies around 70-80 km/hr which is way below other Railways like of China and Japan. Speedier reach to far-away places prevents unnecessary urbanization; people can come from villages to metro-cities, do their work and go back.

· India has 346 airports, China 467, Brazil 4263, Russia 1260, Japan 176, UK 449, USA 14947 – we still have a long way to go. (Japan's number is not small compared to size.)

· Fiscal Deficit has been a big problem- think of an election year in a country like India and immediately one can imagine the expenditure incumbent parties do to keep voters happy. Just add recession in the same year and you will have to provide stimulus to the economy, cut taxes, boost demand howsoever you can. All this is together and makes a perfect recipe for a high fiscal deficit.

Elections 2009 – will it be a spoilsport?

Elections are due in April 2009 and as per estimates Rs 10,000 crores are to be spent on it. From 1996 till date we have seen 4 governments into power – all have been Coalition Governments, but we have grown in such a situation too. This time around as well, many fear a hanging Lok Sabha, but any new government will try to continue reforms as Indian problems won't be solved if it doesn't grow.

New government will try to wipe out the fiscal deficit as much as possible, new measures can be partial or full disinvestment of PSUs and residual stake sales in companies like Maruti, Tata Comm.

Recent positive developments:-

· Nuke Deal is signed and many countries like Russia, Kazakhstan and France are already eager to do business with India in that field. Nuclear power capcaity 2100MW now can triple in 1 year time to 6000MW with no addition in capacity.

· India GDP grew at 5.3% in Q3, below many estimates. But in a quarter where corporate profits declined 33%, growth above 5% is appreciable.

· India has signed many Free Trade Agreements in recent past and benefits will start flowing in quickly once global economy stabilizes somewhat. Indian companies have already started benefitting by investments from Japan (deals like Ranbaxy-Dai ichi and TTML- NTT DoCoMo) after the Delhi-Tokyo Freight Corridor.

· Sensex/Nifty trade around 11 times forward P/E and India growing more than 6% warrants more investments as it is anyway 2^nd fastest growing economy. The stimulus packages so far will have their effects in 6-8 months time and any new government is expected to continue the reform process. Infrastructure here has tremendous scope for growth and new initiatives are needed.

· CMIE predicts net profits of Indian companies to rise by 74.4% in FY10. The PAT margin will also improve to 7.7% from 4.8% in FY 09 and expects petroleum products companies returning into profits in the March 2009 quarter.

· KG-D6 gas will start flowing later this month and it can save India around $19bn through savings in imports and savings for Indian consumers through the approved price, there are other capacities also like CAIRN and ONGC will come on stream in next few years. Reliance gas that is being priced at USD 4.20 per million British thermal unit -- at least 50 per cent cheaper than competitive domestic gas -- would increase supply of urea in the country and bring down fertiliser subsidy, as stated by Murli Deora recently. It would also increase power generation and reduce dependence on imported oil to meet energy needs.

What about the new bottom?

That is the question everybody is asking before investing in India. In my view that really doesn't matter. Sensex is currently placed around 8100 levels. If one thinks it can reach 18000-19000 in 2-3 year period to say the least, even if it is to come near 5000, the risk-reward is still very favourable for the buyer. It is an opportunity provided by nature in my view and should be grabbed by those who can wait patiently.

As an investor, one should not get tired of buying. Peter Lynch once said, "When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom." Bear market is the best time to build a portfolio. Those who miss out on such opportunities, have to beg for corrections so that they can get a chance to buy, but they hardly get any offerings. The time is not too far for the rally. Better to be a beneficiary of a bull-run than a beggar of a bull-run.

From where can the money come?

· Savings rate near 40% is bringing huge investment into stocks

· Mutual Funds collected nearly Rs One lakh Crores in the last 3 months and Equity Mutual funds alone is sitting on cash of around Rs 42500 Crores (January'09 figure)

· Hot money has taken exit mostly and hedge fund redemption looks to end. March and May have been bottoming-out periods for our markets.

Which sectors and stocks can be looked at?

Auto, FMCG, Power, Technology can be good for investment. Maruti, Tata Motors, M&M, Hind Unilever, Colgate, ITC, NTPC, PowerGrid, Infosys, TCS, TATATEA, TATAPOWER can be stocks from these sectors. ABB, ACC, BHEL, CAIRN, Reliance, RPL, BEL, SIEMENS, SAIL, NACLO, Tata Steel, BEML, APIL are a few stocks from other sectors that can outperform in my view.


source:navneetsinghal.blogspot.com

Gayatri Projects

Gayatri Projects Ltd (GPL) is a 43 years old Hyderabad based
construction company, having diversified capabilities in
construction of irrigation, dams,canals, highways, bridges, roads
and BOT projects. Going forward,
GPL is keen to transform itself into an integrated infrastructure
developer by executing & recording significant turnover with the
aid of a healthy order-book of Rs 34.5bn; of which Irrigation
projects accounts for 31%, Roads (Cash Contract) 36% & BOT
roads (Highways) 31% and others 2%. Based on the rate of
completion of the existing order book and new order growth.

1. Equity Capital :- 10.11
2. BOOK VALUE:- 177cr
3. Total debit :- 300cr
4. LAST E.P.S :- 39.7 Rs
5. EXPECTED E.P.S:- 45Rs
6. (Market cap =one time profit)
7. DIVIDEND:- 25%
8. CURRNET PRICE :-43.5
9. YEAR HIGH:- 525Rs
10. Year low:-43.5
11. Promoter holding:- 56.73%
12. FIIS AND M.F :- 24.56 %
13. PUBLIC Holding :- 7.7%

SMART TALK: Sandeep Reddy, Managing Director, Gayatri Projects

Irrigation accounts for 50% of order book: Gayatri Projects

Construction company, Gayatri Projects recently won two large irrigation projects worth Rs 2,132 crore taking its total order book to about Rs 5,000 crore. These numbers stand out as the company has an annual turnover of Rs 750 crore in 2007-08 and a market capitalisation of just Rs 65 crore. The other side of the coin could be the challenges including the company’s ability to execute large scale projects, high debt levels and the current economic environment. Additionally, the company has also partnered with Maytas Infra in BOT road projects. Jitendra Kumar Gupta spoke to Sandeep Reddy, managing director, Gayatri Projects to understand his view as to how the company is going to balance its growth while dealing with the challenges. Excerpts:

What will be the impact of falling interest rates and commodity prices?
Interest rates only affect the BOT (build-operate-transfer) projects. It does not affect the regular construction or EPC companies. While we have about one third of our exposure to BOT projects, we have already completed the financial closure and hence, it does not affect us.

As far as commodity prices are concerned, all our contracts are covered under the cost escalation clause. Except BOT projects, which are fixed price projects, there was a slight stress because of the increase in commodity prices. It has now again come to normal levels. For the coming quarter, we should be able to maintain our margins.

The company has recently won Rs 2,131 core worth of orders. Can you tell us about the current order book?
Till September 2008, we had an order book of Rs 3,000 crore. With the recent order of Rs 2,100 crore and another Rs 500 crore that we expect by March 2009, we should be having an outstanding order book of about Rs 5,000 crore ending March 2009.

How do you expect to manage projects of such large scale?
It is an EPC contract, where we will get five per cent advance, which is enough to fund the project. Besides, we might require some amount of working capital. Also, this is a long-term project having completion period of 53 months (4.5 years). We will have to first complete the survey and design of the project and then start the construction, which itself will take another six months. So, per annum what we need to achieve is within our reach.

The company is perceived as a regional player with large exposure to roads segment. Your comments.
We are well diversified in other states as well and have been bidding for projects where we see an opportunity. And, we are also strong in irrigation and have been working on such projects for some time now. However, compared to the size of the road projects, irrigation projects were small due to the larger capex happening in the road and infrastructure. But now, irrigation is picking up; Andhra Pradesh alone is spending Rs 40,000-50,000 crore. This is also a reason our order book mix after the recent win is equally divided between roads and irrigation.

The promoters have pledged shares. Can you throw light on this?
We have not taken any loan against shares. We pledged them as a collateral securities wherein this is just additional security given; for investment in group ventures.

What will be the fate of projects where Maytas Infra is a partner?
Three of the five BOT projects (undertaken by Gayatri Infra) are with Maytas Infra. But, we have already given an undertaking for the balance equity; whatever Maytas cannot put in, we are ready to take over.

Also, Maytas is involved in EPC work in only two projects, where again, we are ready to take over the EPC work. However, we are awaiting developments on a decision from the Company Law Board or till the new board of Maytas is formed.

What are your plans with the Gayatri Infra Ventures?
This is a separate subsidiary for the BOT projects, where we are aiming to win Rs 2,000-5,000 crore worth of orders over the next five years. In terms of funding, a part of the equity is already infused and AMP Capital of Australia has invested Rs 100 crore for a 30 per cent stake. We will further dilute our stake up to 51 per cent and get fresh capital. We will probably go for an IPO after three years. The company owns and is commissioning five BOT projects, which will start generating cash flow by March 2010.

Do you foresee any slowdown in new projects due to impending elections?
Yes. There are some projects announced, but since this is the election period there could be some slowdown in the next 3-4 months.

During Q3FY09, despite the rise in sales by 25.3 per cent, why did profits fall by 17.6 per cent?
Q3 saw the major impact of commodity prices. The BOT project operating margins were hit by 1-2 percentage points because of high commodity prices. In Q4, we margins should improve.

What steps are you taking to reduce debt burden and increase interest coverage?
We have a working capital requirement of about Rs 200 crore and a term loan of Rs 70-80 crore. We will probably be taking more working capital in future in proportion to the increase in turnover, which banks are ready to fund.

Our total debt is about Rs 300 crore and net worth would be Rs 300 crore by March 2009, so the debt-equity will be comfortable at 1:1. Now, probably next year, we will take Rs 30-40 crore of debt, but relative to this our turnover will increase from Rs 1,000 crore to Rs 1,500 crore. So, automatically our net profit will be higher to take care of the interest cover.

Has there been a delay in customer dues?
The payments are on schedule, except for private clients pertaining to a few steel plants getting little delayed, resulting in some issues in the last quarter. But, our exposure to private clients is just Rs 200-300 crore.

Have revenue and profit guidance changed? Also, if you can comment on operating margins in future?
Earlier, our net profit guidance for FY10 was Rs 70 crore, which has been brought down to Rs 60 crore (net margin of 4 per cent) on targeted revenues of Rs 1,500 crore. In FY09, our revenues could be Rs 1,000 crore and net profit about Rs 45 crore (4.5 per cent margin). Even if it does not improve, we should be able to protect our operating margins at current levels of 12 per cent due to the rising revenue share of high-margin irrigation business (15 per cent margins).

Gayatri Projects has not made provision for losses incurred by its 50:50 joint venture, with ECI Engineering. What could be the liability for the company?
The judicial process is going on. We have already filed a claim for Rs 300-450 crore. So, in the worst case, if we lose, the liability could be about Rs 50 crore.

BUY ON EVERY DECLINE

Geodesic Ltd

"Geodesic Information Systems Limited" is now "Geodesic Limited" with effect from Sept 19, 2008.

Geodesic was founded, by Mr. Pankaj Kumar, Mr. Kiran Kulkarni, Mr. Prashant Mulekar and Mr. Mahesh Murthy, in the year 1999. Geodesic operates in a niche area of developing various innovative products in the information, communication and entertainment space. Geodesic's product-list is versatile and all-encompassing when it comes to offering choice of communication and collaboration solutions to its users, whether it is the inherently simple hand-held Simputer to web-based mobile & wireless applications to the intricately complex Engage Spyder applications. Geodesic's mix of innovative products and high performance solutions has driven the company to profit right from it's first year. Focusing its inventive capabilities across all aspects of communication and collaboration the company is widely recognized for its pioneering universal instant messaging system (www.mundu.com). The company offers its products and services under the "Mundu brand name for the retail segment. Geodesic is widely recognized for its scalable content, contact management, presence, real-time communication and collaboration platform. The company has effectively used the above platform to build and deploy innovative front-end applications, viz. Mundu Instant Messenger(IM), Mundu Radio, Mundu Speak, Montage, etc., for the retail segment. Mundu IM has been recognized as one of the top 10 applications and has been used by more than 7% of the iPhone users. Interestingly, the same platform has been used to build and deploy enterprise applications viz. Content indexing and referencing, Customer Alignment Relationship Management(CARM) and real-time communication and collaboration. Geodesic has built all of these products across desktops and mobile phones. Geodesic's commitment to integrate different aspects of electronic communication is reflected in the line of products and their utility value to consumers:

Mundu web content aggregator Mundu universal Instant Messenger for the desktop Mundu universal Instant Messenger for Palm devices ADePT - self service Ad Management System Mundu universal Instant Messenger for Symbian Pocket PC, Blackberry and Linux Mundu Internet Radio for the Palm Mundu Speak - VoIP on Windows Mobile, Palm and Symbian across GPRS and Wi-Fi (a world first) Mundu IM referral (word-of-mouth marketing)

Geodesic has been on an acquisition spree over the last three years. In 2005 alone, it acquired three companies, Picopeta Simputers, a Bangalore-based company, Engage Solutions, a Hong Kong-based company and a majority stake in Clangula IT of Sweden. Geodesic acquired a web developing company, E Dot Solutions and a 60 year old children magazine - Chandamama, in 2007. Moreover, in January 2008, the company raised USD125 mn, by issuing FCCBs, to fund future acquisitions. Geodesic's current customer base consists of more than 95 enterprise customers and over 8.2 lac retail customers. Geodesic is all set to contribute significantly to the wave of Convergence by launching innovative world class products such as the Geodesic IP phone that operates across different platforms of landlines, mobile phones & desktops/laptops that will work on all prevailing internet connections and will help users save 75-80 % on long distance calls. Geodesic's talented staff of more than 400 employees ensures innovation, utility and ease of use. The combination of a highly competent team and state-of-the-art tools enhance the development of future-proof, useful business solutions. Geodesic is a proud recipient of several international awards including Deloitte Touché Tohomatsu Fast 500 Asia Pacific for four consecutive years, Deloitte Touché Tohomatsu Fast 50 India in 2005 and Red Herring 'Top World 100' small cap technology companies for 2005. Geodesic is a publicly traded company on both India's major Stock Exchanges: the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). In its quest to attain market leadership, Geodesic has also set up offices in the US, UK, Sweden, Mauritius, Germany and Hong Kong with the head quarters in Mumbai, India.

REVIEW OF OPERATIONS AND FUTURE OUTLOOK Your company had a successful fiscal 2008 and directors are pleased to report excellent performance for the year under review. We continued to build exceptional market opportunities, broadened customer base and exerted to create a global community without barriers across platforms, devices and operating systems as best we can. The year gone by was very dynamic and encouraging. Your Company has been privileged to be associated with MIO Technology Limited, a leading maker of GPS devices as the latter has opted Mundu IM to be pre-loaded onto the Mio Digiwalker A702 GPS PDA Phone which was launched in September 2007. During the year under review, your Company along with Gothenburg Post, Sweden has launched GP-Qrir, an interoperable Instant Messenger on the desktop and mobile platform. The evolved capabilities of Mundu IM V4 has been introduced on Windows Mobile based Pocket PC devices, popular Sony Ericsson phones and iPhone Edition for the Apple iPhone and thus enable its users to have access to seamless chat across leading IM services AIMr, MSNr. Yahoor, and Google Talkr - all through a single chat window. Geodesic Mundu Radio scaled new peaks by achieving Symbian Signed status for latest Nokia Smartphones. Geodesic signed an agreement with loWorld Media, one of the worlds largest internet radio stations to offer access to Internet radio stations as presets on its Mundu Radio. The synergy with to World Media will not only allow Mundu radio users to enjoy high quality mobile music experience but also bestow on them a large selection of music leading to a new era in mobile entertainment. Geodesic along with IDEA Cellular jointly launched "IDEA Radio" - a breakthrough technology, designed and optimized tor mobile operations, enables IDEAs 20 million subscribers to seamlessly tune into a range of exciting entertainment channels. AWARDS AND RECOGNITIONS Your Company has won several accolades and recognition during the fiscal 2008. Its Mundu Radio won the CNET "Webware 100" Award for the Mobile Category. Winning this award in the Company of high caliber nominees such as google and yahoo proves the merit of our products. Additionally, PC Magazine-a renowned technology Magazine has rated Mundu IM V4 as one of the top 1 2 mobile applications in 2007. Munduspeak won Product of the year awards 2007-for innovative communication solutions awarded by TMCnet-Technology Marketing Corporation. Geodesic has reoriented itself to stay focused on providing users the power to communicate with family, friends and colleagues, efficiently over cost effective and preferred medium, access to data at home, office or on the web or simply tune into more than one lakh music streaming channels. Your management feels that the ensuing year will be full of ventures and adventures. The time to come should assure us in our business growth as well as creating an international brand. it has an equity of 18.44 cr and posted netprofit of 211 cr for nine months and paid 40% interiam dividend. currently it is 50rs . and company is going to buy back of 25%equity. public holding 8.5% expecting 250 cr for full year (135e.p.s) face valu 2.rs i.e (27 e.p.s) BUY FOR A TARGET OF 75RS IN A TWO MONTHS TIME Toonz to give life to Chandamama Stories Technopark based Toonz Animation India Pvt Ltd and Chandamama India Limited has decided to join hands in producing a full-length animated feature film based on a prime property from the library of Chandamama. Toonz will undertake the entire production based in its state-of-the-art studio in Technopark and will finance 100% of the production cost. The estimated budget of the film is pegged at around 20 Crores. “Chandamama stories still linger in the minds of generations. The beauty of these stories lies in their simplicity and the socio cultural values they try to communicate. The animated film will be a perfect platform to provide today’s youth both engaging and educative entertainment,” quipped P.Jayakumar, CEO of Toonz Animation. Legendary filmmakers B. Nagi Reddi and his friend Chakrapani conceptualized Chandamama in early 1947 and since then the company has been publishing stories in print as well as electronic media in 14 languages. The library of Chandamama has over 15,000 exclusive stories. Commenting on the relationship with Toonz, L Subramanyan, CEO of Chandamama said, “Over the last 60 years, millions of Indians have grown up with Chandamama. The Association with Toonz and the proposed animated film will help us reach out to the current and future generations of young people and deliver the message across the new and emerging platforms”. About Toonz Animation Toonz, a major provider of animation to the top US and European producers, is South Asia’s most admired animation studio and part of the international business conglomerate, Comcraft Group, based out of Geneva. Founded in 1999, the client list of Toonz includes the biggest names in media and entertainment industry like Marvel, Hallmark, Paramount, Disney, BBC and Cartoon Network. Toonz Animation offers its world-wide clientele end-to-end animation services including 3D animation, 2D animation (digital and traditional), Flash, Stop Motion and VFX on a full spectrum of media platforms. The Animation Magazine has heralded the company as one of the top-ten multimedia studios in the world. The sprawling, 18,000 sq ft state-of-the-art studio is based in the electronic city of Technopark in Trivandrum. Over 500 artists work in this facility staffed with top creative professionals from across the world, including Philippines, Singapore, Canada, USA and India. Toonz also runs its animation training division ‘Toonz Academy’ in Mumbai, Delhi, Hyderabad, Nagpur, Indore, Ahmedabad, Calicut and Trivandrum. About Chandamama Chandamama was conceptualised by legendary filmmakers B. Nagi Reddi and his friend Chakrapani. Their reason for launching Chandamama was to familiarise the post-Independence generation with Indian tradition, folklore, mythology and history in the form of stories. From its inception in 1947, Chandamama has created over 15000 stories and is the only magazine published simultaneously in over 12 different languages, including Sanskrit and Santhali. Chandamama has recently been acquired by the Bombay-based Geodesic. Incorporated in 1999, Geodesic is a publicly traded company with offices in the US, UK, Sweden and Hong Kong. The company has developed the popular universal instant messaging system Mundu www.mundu.com). The Mundu products successfully combine AIM, Google Talk, ICQ, MSN and Yahoo. Over six million users worldwide communicate through the various mundu products. Geodesic is the only Indian company to be included in the Red Herring Small Cap 100 list. Chandamama announces the launch of 'Ramayana', an epic journey The Board has approved the proposal of buy back Company´s USD denominated Zero Coupon Convertible Bonds. Q3- NOTES :- . The Board has also approved the proposal to buyback of 25% of the Equity capital of the company through open offer through stock exchanges. The Board has authorized a committee consisting of members of the Board to take steps to implement the buy back. . Geodesic launched a Beta version of Mundu SMS – an IP based two way SMS service for a wide range of mobile handsets and desktops/laptops. Mundu SMS can be used in India, Asia-Pacific, Europe and South America and saves messaging costs between 60% - 90%. . During the third quarter, Geodesic signed a teaming agreement with ITI Ltd to promote Video/Voice over IP on desktops, IP phones, mobile phones and Amida10K Simputer to cater to various State Government E-Governance projects in India. . Glodyne Technoserve Ltd and Geodesic Ltd have signed a teaming agreement to include Geodesic´s Amida 10K Simputer as part of Glodyne´s solution for Public Distribution System for various states in India. The company has added diverse customers during the third quarter in the space of portals, Banking and Financial services, System Integrators, Portals and Publishers and Telecom Carriers including, Edelweiss Capital Ltd, Systematix Shares and Stocks (I) Ltd, First Global Stock Broking Pvt Ltd, Business Standard- a leading financial publication in India, Dialog Telekom - Sri Lanka Plc, one of Japan’s large Telecom Carrier. . Geodesic added 223700 users for Mundu products and clocked an average of 60,000 minutes a day during the last quarter. . During the third quarter, the marketing expenses to create a retail brand have risen and are expected to rise further in the coming quarters owing to new products & services being launched in the retail space. Geodesic has signed with a Global Creative Agency - Wieden + Kennedy and are head quartered in the US. Geodesic Holdings Ltd, wholly owned subsidiary of Geodesic Ltd has signed a Share Purchase Agreement to acquire 100% of a privately held software company, headquartered in Uruguay. The company focuses on developing advanced messaging and collaboration solutions for Telcos and have implemented their solution across 12 carriers in Latin America, South Africa and Asia. During the quarter, Chandamama India Ltd (Chandamama), a subsidiary of the Company had a rights issue of 36,95,325 equity shares of Rs 10/- each at par and the same was subscribed 95.53%. During the quarter, Chandamama launched Ramayana by Swami Sukhabodananda. The launch signifies the first time the Ramayana is being published in an illustrated book format as a single book. Chandamama has signed MOU with Technopark based Toonz Animation India Pvt Ltd for producing a 70 minute, full-length animated feature film.

Dredging Corporation of India Ltd

Profile

The Dredging Corporation of India Limited (DCI) was established in the year 1976 to provide dredging services to the Major Ports of the country in India. DCI is a pioneer organization in the field of dredging and maritime development. DCI is fully equipped to offer the complete range of dredging and allied services to the users in India and Abroad and to provide the vital inputs for the national development. It's Head Office is strategically situated on the east coast of India at Visakhapatnam, DCI helps to ensure continuous availability of the desired depths in the shipping channels of the major and minor Ports, Indian Navy, Fishing Harbors and other maritime organizations. It further serves the Nation in a variety of ways, be it capital dredging for creation of new harbors, deepening of existing harbors or maintenance dredging for the upkeep of the required depths at various Ports along the 7,500 Kms coastline of India.

DCI owns most modern and sophisticated fleet consisting of two Cutter Suction Dredgers and Ten Trailer Suction Dredgers.

DCI is an M.O.U. signing Company with Government of India.

DCI is a schedule B & a MINI RATNA- CATEGORY-I Public Sector Enterprise.

PRESPRESENT COMMITMENTSENT COMMITMENTS

1.	Maintenance dredging at Kolkata Port for the Years 2007-08 to 2011-12 (Contract yet to be renewed)	3000
2.	Maintenance dredging off Haldia Oil Jetties & in vicinity of Haldia dock complex of KoPT	80
3.	Maintenance dredging at Paradip Port for the year 2007-08 to 2009-2010 (Approach channel, Harbour & sand Trap)	421.20
4.	Capital dredging at Paradip Port 2008-2009	2345.20
5.	Maintenance dredging at Visakhapatnam Port for the year 2008-09	105
6.	Maintenance dredging at NMPT for the year 2008-09	360
7.	Maintenance dredging for MGPT for the year 2008-09	254.10

company has come out with a public issue in 2004 with a price of 400r.s

it has a book value of 440rs. and paying 150% dividend.continuously.

it went to 1350rs last year and come down to 176rs .current market price was 241rs. available at 6.p.e and dividend yield of 6.25%. buy for long term investment it will give u a tremendous return

GREAT BUY

Shorting Gold: 12 Reasons Making The Case For This Contrarian Investment

12 Reasons To Start Shorting Gold

1. It’s decidedly contrarian. If a contrarian investor is someone who deliberately decides to go against the prevailing wisdom of other investors, shorting gold certainly fits the bill. Right now, everyone else is buying gold, or at least recommending it. If you have any doubt we’ve reached such fever pitch levels, consider No. 2.
2. The infomercial factor. The best indicator of a turning point for any investment, in my experience, is infomercials. If an investment gets so popular it invades the pre-dawn hours with non-stop but-wait-there’s-more offers, it’s time to get out. And that’s exactly what’s happening now. So much so companies like Cash4Gold.com are invading primetime television. They even splurged for a Super Bowl ad spot. And they recruited washed-up celebrities Ed McMahon and M.C. Hammer to boot. In case you forgot, the Hammer filed bankruptcy in 1996. And Eddie boy almost lost his 7,000 square-foot, $6.5 million Beverly Hills pad to foreclosure. No offense, if you take investment cues from these two, you deserve to lose money.
3. There is always some truth in a rumor. Recent news reports suggested Germany, the world’s second-largest holder of gold, was selling some from its vaults to trim its deficit. It turned out to be a rumor. But you gotta wonder if there’s some truth behind it. After all, high gold prices would be an easy way to raise cash. In other words, the scenario is completely plausible. And if Germany’s considering it, even remotely, so, too, are plenty of other deficit-ridden governments. It goes without saying that a government dumping supply on the market will send prices lower, quickly.
4. The gold-to-oil ratio is out of whack. Historically, an ounce of gold will buy you about 14 barrels of oil. But with oil around $40 per barrel, an ounce of gold gets you almost 23 barrels - a whopping 64% above the historical mean. If you believe in statistics, a reversion to the mean is imminent!
5. So is the gold-to-silver ratio. Historically, an ounce of gold will buy you 31 ounces of silver. But now the ratio stands at 73 - an unbelievable 134% above the historical mean. Here, too, a reversion to the mean is imminent. And I’d rather place my bets on a 57% decrease in the price of gold, than silver more than doubling to make it happen.
6. The HGNSI index is too high at 60.9%. For the past 25 years, Hulbert Financial Digest has tracked the average recommended gold market exposure among a subset of gold-timing newsletters. It usually fleshes out around 32.6%. But now it rests at 60.9%, a level it’s only exceeded 13% of the time. The key - Hulbert found an inverse correlation exists between his proprietary index and the short-term market direction of gold. In other words, if the index is high, like now, gold is headed lower.
7. Trinkets drive demand, not governments or speculators. Nearly 75% of gold demand comes from the jewelry market. And if Indian brides balk at buying above $750 per ounce as the Bombay Bullion Association reports - India’s gold imports cratered 81% in December - look out below. And don’t be fooled into thinking investors (governments or speculators) will pick up the slack. As HSBC reports, rising demand from investors, particularly from ETFs, only offset half of the 33% decline in jewelry market demand since 2001.
8. What makes now “different?” If the global economic crisis keeps getting worse, as goldbugs like to point out, why hasn’t gold tested last March’s high of $1,030.80 per ounce? Or blown right by it? After all, gold is supposed to increase in value as economic conditions worsen. But it hasn’t lived up to expectations, not one bit. And I don’t think it ever will. Ultimately, when you factor in the massive amounts of stimulus being injected into the markets, on a global level, we’re close to the worst of times… and the peak for gold.
9. Analysts love it. According to Bloomberg, 16 of 24 analysts surveyed by the London Bullion Market Association believe gold will reach a minimum of $1,032 per ounce this year. As we all know, analysts’ track records are deplorable. Instead of just ignoring them, why not bet against them? The odds are definitely in our favor.
10. Hedge fund buying dried up. Institutional speculators (hedge funds) played a large part in gold’s run-up. But 920 of them went Kaplooey last year, according to Hedge Fund Research, Inc. Not to mention, hundreds of others hemorrhaged capital as investors demanded their money back, while those left standing ratcheted down borrowing to close to nothing, according to Rasini & C., a London-based investment adviser. In the end, gold prices will eventually reflect the absence of these former heavyweights.
11. Gold is schizophrenic and the wrong personality is in control. Multiple motivations exist to buy gold including the desire for a safe haven, currency, adornment, raw material, or inflation hedge. But much like Treasuries, the bulk of buyers come from the safe haven camp today. And once the economy shows any signs of perking up, we can expect these same investors to flee for more risky assets. And don’t be so quick to rule out a second half recovery…
12. The Fed, the President, history and the Baltic Dry Index concur - the economy’s on the mend. Despite dismal data, both the Fed and President Obama point to the current recession ending by the second half of 2009. Moreover, the average recession only lasts 14.4 months. So even if this one is longer than usual, we’re still near the tail end of it. A fact underscored by the recent 61.4% rally in the Baltic Dry Index from its early December low. As I wrote in November 2008, the index is the first pure indicator of an uptick in global activity. And once the economy gets back into gear, the Fed will act quickly to reign in the money supply and curb inflation.

Cleary the gold rush is on. But that’s all the more reason to move in the opposite direction, against the herd. I realize this might be the most unpopular recommendation right now, but that means it could also be the most profitable.

And before you brandish me a fool for recommending shorting Treasuries and gold in the span of two months, here’s the intersection. The driving force behind both assets in recent months has been safe haven buying. And it will remain the dominant variable in determining price in the months ahead. So when investors go back on the attack for more risky assets, prices for both assets will fall.

It’s already happening for Treasuries. And I’m convinced gold is next.

Good (and contrarian) investing,

Lou Basenese

Editor’s Note: In the past year, Lou’s been dead on with his predictions. He called the U.S. dollar bottom versus the euro within 26 days… oil’s peak within 24 days… and the top in U.S. Treasuries within two days. So when he makes a big call like this, we listen. And while Lou thinks gold is going down, there’s another asset class he thinks is going straight up - small caps. To get access to his five best small-cap picks, go to The White Cap Report.

SHORT TERM INVEST MENT CALLS

1.Polaris Software Lab Ltd : TIME TO BUY THIS PUNTING STOCK BUY AT CURRENT PRICE 51.5RS. SL.48 RS TARGET 70 RS BUY THIS MONTH ENDING

Blue Star Infotech Ltd

Blue Star Infotech, is a global provider of Product Development services, ERP solutions, Travel Technology solutions and Testing services. Part of the US$600M Blue Star Group, Blue Star Infotech provides profit-enhancing solutions to enterprises and product companies. With operations in North America, Europe, UK, Japan and India, Blue Star Infotech delivers high-performance technology-based services by adopting a partnering approach with its clients. BSI was successfully assessed at CMMI Level 3 in October 2008. Blue Star Infotech is a Microsoft Gold Partner and an Oracle Certified Partner.

Product Services, utilized by ISVs and hardware technology vendors, are delivered on a collaborative platform, and use a variety of development methodologies such as Scrum, XP, Iterative, to enable our clients to deliver their products to the market in the shortest possible time and at least cost, without compromising on quality and scope. Blue Star Infotech has an unblemished track record of having maintained Intellectual Property for its technology clients.

Enterprise Services are a combination of business process consulting and application management services that collectively address the end-to-end IT needs of an enterprise thereby enabling them to focus on what is core to them and leverage the mature practices of a CMMI/ISO certified delivery organization. Our VAR partnerships with leading ERP vendors such as Microsoft, Oracle, SAS and ProClarity provide us with that added advantage, enabling us to deliver value to our customers.

Travel and Hospitality Services provide organizations servicing both leisure and business travellers with solutions and services that help improve operational efficiencies, increase distribution channels and reduce costs through connecting directly to CRS and inventory databases and harnessing technology.

Independent Testing Services, a suite of ‘low risk-high impact’ offerings, enables CXOs to deliver a reliable and robust solution to their users. It provides an un-biased perspective on the quality of a solution, thereby taking up the role of an Independent Certification authority and enabling the CXO to focus on more critical parts of the development life cycle.

A people focused and high performance-oriented culture, learning environment, established processes and practices, deep technology expertise and a world-class infrastructure, enables us to attract and retain the best technical talent which is core to our ability to satisfy our customers.



it has an equity of 10Cr.and debit free company.and last five years they paid good dividend

for corresponding nine months it has posted 12.89Cr as against3Cr last year .

it has paid 25%div when it has 4.5e.p.s
40%dividend 6.96 e.p.s
50% div 9 e.p.s
90% div 18 e.p.s
so i am expecting 70-75% div for this year and now it is available at 48 rs. it will double in next six months. and book value was 62 rs.as on 2008