STOCKS


Johnson Creado 22 June 2011
With an IPO grading of just 1/5, the stock ends at a premium 44.76% on debut Timbor Home, which opened its innings on the bourses today, emerged as the top gainer on the National Stock Exchange (NSE), closing at Rs91.50 compared to its issue price of Rs63, a premium of 44.76% to its issue...

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Debashis Basu  and   Megha Vora 21 June 2011
There is nobody in the system—promoters, lead managers, raters and regulator—who can be held accountable for the profit-pump and share-dump operation that seems common in IPOs We had mentioned in our article "What ails the Indian IPO market-I that "that volumes of information in a public...

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Moneylife Digital Team 20 June 2011
Analysts describe it as market reaction to company’s scrapping plans to raise $300 million. Group company GTL Infrastructure slides 43% The shares of GTL group tanked amidst speculations of heavy selling of the company's pledged shares, a charge which the company has denied. But market...

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A Sensex crash of 500 points in a matter of a few minutes, shows how hollow the Indian market is, as Moneylife has been pointing out for years now Sometime just before 10 in the morning on Monday 20th June, on a simple rumour that India would restart talks on a tax treaty with tax haven...

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The laws, far from protecting labour, many times limit competition, discriminating against foreign companies and foreign workers. Often, it is not the laws themselves, but how they are enforced Anyone who has ever been an employee is acutely aware of the asymmetry of power between the...

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Debashis Basu  and   Megha Vora 17 June 2011
There are volumes of information in a public issue prospectus. But retail investors do not have access to one crucial number, that is, expected profits, that determines the most crucial aspect of a public issue—valuation The Indian public issue market has evolved significantly over the...

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Competition Commission finds NSE guilty of misusing its dominant position and indulging in unfair trade practices in currency derivatives, that SEBI refused to act against In September 2010, I wrote that CB Bhave would leave behind an ‘extremely controversial legacy’. While this was...

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Will the watchdog watch the IPO process? The capital market watchdog needs to work overtime to restore confidence in the primary capital market before it is too late. Moneylife Foundation, our not-for-profit initiative for financial literacy, recommends that retail investors should simply...

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Shareholders of both Ambani groups are paying the price for the far-from-glorious reputation of their companies Corporate governance enthusiasts finally have a meaningful case study in how both Ambani groups are paying a price for their far-from-glorious reputation. Even the Mukesh Ambani...

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Muted growth in corporate profit, a US slowdown, a stronger dollar and reduced FII inflows… bulls have a lot going against them. If the market crashes, when should you buy? Nothing lasts forever—least of all a bull market that is battling rising interest rates and inflation. And what a...

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Moneylife Digital Team 16 June 2011
The stock is valued low now, given its strong growth prospects One of the largest vertically-integrated pharmaceutical companies in India, Aurobindo Pharma, has a robust product portfolio spread over major product areas encompassing anti-retroviral (ARV) drugs, antibiotics,...

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Moneylife Digital Team 16 June 2011
Improved performance and stable growth make this a good pick Tirupur-based KPR Mill is one of the leading manufacturers of readymade knitted apparel, cotton knitted fabric and yarn in the country. The company has a presence across the entire value chain—from fibre to fashion, including...

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Moneylife Digital Team 16 June 2011
The stock has fallen sharply. Is it cheap now? The stock of Shree Renuka Sugars had hit Rs124 sometime in January 2010. At the time of writing, it has fallen to Rs59, barely above its 52-week low of Rs51. Renuka is the best sugar company in India and there is nothing wrong with the company’s...

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Moneylife Digital Team 13 June 2011
The company made a public issue in January last year. The stock price has lost 27% since the announcement of the buyback in April Infinite Computer Solutions India, which made an initial public offering (IPO) in January 2010, is undertaking a buyback of shares amounting to Rs27 crore,...

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Moneylife Digital Team 13 June 2011
 Median return on investments on about 50 QIPs issued in 2010, calculated up to 3 June 2011, is a negative 19%. Fewer companies likely to raise funds through this route over next few months Two out of every three Qualified Institutional Placements (QIPs) done in calendar year 2010 have given...

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Sino-Forest Corporation, the Chinese forestry company in which hedge fund Paulson & Co was the largest investor, lost about two-third of its share value in the past few days after a little-known research firm alleged that the sales it reported would have required 50,000 trucks driving on...

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Moneylife Digital Team 10 June 2011
Brokerages say inflation and high rates have been a bother for the market, which has corrected nearly 10% this year. They point out that while environmental and corruption issues have pushed back investment, capital goods orders have been better than expected recently, and there could be a...

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Big brokers are reluctantly lowering their earnings growth target, leading to the belief that the market is undervalued. Is it based on false premises? Is the Indian market undervalued? This is the million-dollar question today. It is the inability of big investors to answer this question...

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Pratibha Kamath  and   N Madhavan 08 June 2011
For the March 2011 quarter, 107 mega-cap companies in the Moneylife sample recorded sales growth of 23% overall, but only an 11% growth in profit, due to rising costs Mega-cap companies (defined as those with more than Rs10,000 crore market capitalisation) recorded a sales growth of 23%...

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Moneylife Digital Team 07 June 2011
Piramal Healthcare, Kanoria Chemicals and Laffans Petrochemicals are some of the companies that have earned huge amounts of cash recently by selling their businesses; but minority shareholders have got little out of this Recently, promoters of quite a few companies have sold off parts of...

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