IVRCL http://www.ivrcl.com/ui/index.html
Rs 2 paid up Book value Rs.135
IVRCL Infrastructures & Projects Ltd is a construction company engaged in construction of buildings, bridges, pipelines, marine construction, canal modernization and road works. Other areas of work include Water & Environment, Power also. IVRCL group is also involved in various real estate projects and also has ownership of many BOOT projects.
Promoter stake dropping to low levels:-
Promoters stake has slowly come down from above 50% in 2000 to just 9.7% now which doesn’t give comfort holding this stock @ such high valuations. In fact in last 5 years itself it has dropped from 30% to current levels.
The demand scenario for infrastructure has improved after majority government at the helm but the stock has multiplied itself by more than 6.5 times and the best looks priced in for now, a correction will give a better entry point in my view.
Latest Report on IVRCL Infra by Deutsche Bank http://www.scribd.com/doc/16415745/IVRCL-DB
Technical Outlook:-
The stock bottomed out at Rs 57 in Oct'08 with Nifty and had a strong rally to post Rs 377.90 as high on 05June2009. But now it shows distribution at higher levles and has formed a double top at Rs 377-375 levels. The stock looks weak and if broader market starts correcting it can underperform when down side Target can be below Rs 300 also and even Rs 250 in deep correction, so caution is advised in this stock for short-term buying and buying is advisable only if it comes below Rs 240.
Sunday, June 14, 2009
Are We Heading For A Drought?
The agriculture ministry is preparing a contingency plan to prevent food shortage
12 June 2009
For the first time in 30 years, India stares at the probability of a drought, which threatens to worsen the already precarious food demand-supply balance and plunge the country into a deeper food security crisis.
Indian Met Department recent press release (10June2009):-
India's annual monsoon rains for the week ended June 10 were 37% below normal, the India Meteorological Department said Thursday. The rainfall stood at 17.5 millimeter compared with normal rains of 27.8 mm during the period, the department said on its Web site. India's rains, currently in a weak phase, are unlikely to revive over the next one week, the weather body said earlier Thursday. India's June-September monsoon season is important for the country's summer-sown crops, including oilseeds, rice and sugar cane, as 60% of the fields are rain-fed.
The agriculture ministry is preparing a contingency plan to prevent food shortage
12 June 2009
(AP) |
For the first time in 30 years, India stares at the probability of a drought, which threatens to worsen the already precarious food demand-supply balance and plunge the country into a deeper food security crisis.
The agriculture ministry is preparing a contingency plan to prevent food shortage if the monsoon fails this year. The alarm has been raised by the latest forecast from the Indian Meteorological Department’s dynamic and statistical models, which indicate the probability of a weak La Nina (cold ocean temperature in the Pacific region) and El Nino (warm ocean temperature in the Pacific region) till May end.
“There is considerable uncertainty in the El Nino forecasts. That could mean a disturbed monsoon for India,” says a senior official in the department. Experts, however, say conditions could well change between June and September.
If that uncertainty becomes a certainty, top agriculture ministry officials say it will surely jeopardise India’s food security. Because if the monsoon fails, India will be unable to even produce what it procured this year — 23.3 million tonnes of wheat and 29 million tonnes of rice as on 31 May. While currently there is no demand-supply gap, traditionally the gap tends to widen from 20-40 million tonnes for wheat and about 30 million tonnes of rice.
However, Ashok Gulati, director in Asia for International Food Policy Research Institute, feels that the concern is unwarranted now as monsoon may revive. “[Even if it fails], we have more than 50 million tonnes of wheat and rice stocks that can sustain two droughts,” he says. Agrees Kalyan Chakravarthy, country head (food and agriculture division) of Yes Bank, “The global wheat and rice situation is good this year; in a worst-case scenario, we can import.”
But demand would surge when the government begins to implement the scheme of distributing 25 kg of rice or wheat a month at Rs 3 per kg for all below-poverty-line families through the National Food Security Act. Plus, hoarding (which becomes rampant when demand surges) can upset the planning, says Vijay Sardana, director of Achievers’ Resources India, a Delhi-based agribusiness knowledge services company.
He adds that there is a need to look beyond wheat and rice, particularly in view of the recent trend of diversion of food crops for biofuels. Food security needs a stronger production response based on tackling supply-side problems in the food grains sector such as development of seeds that could grow even in extreme weather conditions. “We also need to look at non-tasty, but nutrient-rich coarse grain food for human consumption to meet any eventuality in food security,” says Sardana. “The government’s obsession with wheat and rice as an answer to food security is a wrong approach.”
M.S. Swaminathan Foundation has already undertaken many projects in India to demonstrate that food grains can be successfully grown in changed weather conditions without impacting the yield of the crop. One such project in the North-East successfully showcased that rice can be grown in flood situations. Also, Jain Irrigation Systems worked out Ultra High Density Plantation (UHDP) for mangoes in Coimbatore that allows harvesting in 4-5 years as against 12-15 years traditionally.
But with Indian Meteorological Department ‘officially’ announcing that there is a 95 per cent possibility of a successful monsoon, has the agriculture ministry raised a false alarm? “We should not underestimate the change in global weather and should have alternative systems in place,” says S.D. Sundar Singh, head of agriculture technology at Jain Irrigation Systems.
Because if the rain fails this year, farmers may well start organising marriages of frogs, as they do in Assam to please the rain gods.
M. Rajendran
Because if the rain fails this year, farmers may well start organising marriages of frogs, as they do in Assam to please the rain gods.
M. Rajendran
(Busineeworld Issue Dated 16-22 June 2009)
Indian Met Department recent press release (10June2009):-
India's annual monsoon rains for the week ended June 10 were 37% below normal, the India Meteorological Department said Thursday. The rainfall stood at 17.5 millimeter compared with normal rains of 27.8 mm during the period, the department said on its Web site. India's rains, currently in a weak phase, are unlikely to revive over the next one week, the weather body said earlier Thursday. India's June-September monsoon season is important for the country's summer-sown crops, including oilseeds, rice and sugar cane, as 60% of the fields are rain-fed.
SPECIAL MONSOON REPORT FROM IMD :- http://www.imd.gov.in/section/nhac/dynamic/SPLNEW.HTM
Saturday, June 13, 2009
Outlook for next week:-
Nifty (4583) Support: 4435/4190/4090 Resistance: 4660/4695/4789
Adv-Dec Ratio - NSE Adv 317 Dec 1128 BSE Adv 737 BSE 2276 (On weekly basis)
Nifty has closed just 3 points down on weekly basis and it shows supply from higher levels. Nifty did break above 4650 but could not sustain which gives sign of weakness. DOJI pattern at such high level after 14 weeks of rally indicates great pressure from both bulls and bears but no trend emerging, so indecision. Breadth is turning weak and Nifty breaking and sustaining below 15EMA at 4440 can bring a big correction.
Gold View:-
Gold has formed a bearish H&S formation, the downside can be $880-890 but even lower levels can not be ruled out. I have given bearish outlook on Gold twice before but both didn't go exactly as per the prediction, so this is just an attempt to update with recent graph. Gold has been unable to trade past its AllTimeHigh at $1032 even after 15 months. For further rally, it has trade past $1000 consistently and sustain there, else correction in Gold can be big in my view, $850-860 has been big support and breaking that we may even see $760.
Nifty (4583) Support: 4435/4190/4090 Resistance: 4660/4695/4789
Adv-Dec Ratio - NSE Adv 317 Dec 1128 BSE Adv 737 BSE 2276 (On weekly basis)
Nifty has closed just 3 points down on weekly basis and it shows supply from higher levels. Nifty did break above 4650 but could not sustain which gives sign of weakness. DOJI pattern at such high level after 14 weeks of rally indicates great pressure from both bulls and bears but no trend emerging, so indecision. Breadth is turning weak and Nifty breaking and sustaining below 15EMA at 4440 can bring a big correction.
Gold View:-
Gold has formed a bearish H&S formation, the downside can be $880-890 but even lower levels can not be ruled out. I have given bearish outlook on Gold twice before but both didn't go exactly as per the prediction, so this is just an attempt to update with recent graph. Gold has been unable to trade past its AllTimeHigh at $1032 even after 15 months. For further rally, it has trade past $1000 consistently and sustain there, else correction in Gold can be big in my view, $850-860 has been big support and breaking that we may even see $760.
Wednesday, June 10, 2009
Tuesday, June 09, 2009
MPHASIS LTD (Rs 338) http://www.mphasis.com/home/index.asp
Who Is The Promoter And How Do They Do:-
MphasiS Limited (then, MphasiS BFL Limited) was formed in June 2000 after the merger of the US-based IT consulting company MphasiS Corporation (founded in 1998) and the Indian IT services company BFL Software Limited (founded in 1993). In Jun ’06, MphasiS became a subsidiary of EDS. Subsequently, HP merged with EDS, making EDS its 100% subsidiary. HP then became the ultimate holding company of MphasiS and now holds 61%. MphasiS supports G1000 companies around the world through Infrastructure Technology Outsourcing (ITO), Applications Services Outsourcing and Business Process Outsourcing services. The company has a global footprint with staff over 30000 professionals. Hewlett-Packard is a technology company that operates in more than 170 countries around the world, with revenue of US$118.4bn for the fiscal year ending 31 Oct ’08.
Strong Business Outlook:-
MphasiS’s strong parentage of HP-EDS has helped it sustain high growth rates in the recent past and it should continue in foreseeable future too. Revenue from HP-EDS increased to 45% in 2QFY09, from 41% in the Sep ’08 quarter, indicating strong traction with the parent. HP’s 2QFY09 (Apr-end) revenue of US$8,488m from Services clearly indicates the extent of penetration potential for MphasiS within HP. HP awards its work in India to either Mphasis or HP India, depending on merit and Mphasis has an edge over HP India because of expertise in fields of BFSI and ITO (http://www.mphasis.com/offerings/ito.asp ). Given HP's strong deal pipeline having won more than 30 deals (around $2.5bn) so far this year and more than $400mn to be executed in one year, there is a lot of growth potential for Mphasis.
Striving For Efficiency:-
Mphasis focused on cost containment measures and because of that its operating margin at 26.9% for the quarter ending Apr ’09 is the highest ever in the company’s reported history. MphasiS’ EBITDA margin is higher than TCS’ and next only to Infosys and Tech Mahindra. The Group's consolidated revenues in Apr-09 quarter rose 52.3% to Rs 1048 Cr and Net Profits grew 219% to Rs 224 Cr against the same period last year. The Group added 3822 new employees in recently ended quarter taking total headcount to 33810 as at 30Apr2009.
Possibility of de-listing:-
HP had bought out DigitalGlobalSoft (a subsidiary of Compaq) and it doesn't have any subsidiaries listed at other places in the world, so there is a possibility that Mphasis would also be get bought out in toto by HP some time in the future. This can be a major trigger for the stock.
Technical Evaluation:-
Mphasis stock is in a strong uptrend and has outperformed other technology stocks. It has stood firm even in market corrections and shows a major breakout above Rs 345-350 levels. The target for the stock can be Rs 390-400 in days to come, accumulate the stock for good returns. Short-term players can keep stops below Rs 315 to protect themselves from adverse movement.
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