WHY IDEA CELLULAR EPS IS LOW ?

Dear Sir,
I am an investor and I am reading your blog regularly, I kindly request you to reply for my big doubt mentioned below:-
=> Why Idea Cellular company profit is around 1000 crores yearly but there EPS & Book Value is very low at Rs: 2.57 and Rs:34.
I can get the exact reason, kindly explain in detail please.
Thank you
Regards,
Gokul

1. Gokul ji first of all I correct your data EPS of idea cellular is 3.19 in FY 09-10 and book value 34.58.
2. EPS means earning per share so total number of share in idea cellular is 3,29,98,37,792 ( in march 2010 now idea cellular increase his share capital and at present it is 3,30,09,83,279 ) and net profit in FY 09-10 is 1,053.66 cr. Means 10536600000 Indian rupee so when we divided this profit with total number of share 10536600000/3,29,98,37,792 then this is equal to 3.19 and called earnings per share of idea cellular.
3. And book value of a company means “The net asset value of a company share called book value. It is the total value of the company's assets that shareholders would theoretically receive if a company was bankrupt and all the asset of company was liquidated so book value have no any direct relation to company net profit
4. CLICK HERE TO READ DETAILS ON BOOK VALUE
5. I think you may satisfy with this reply.

BEST BUYINGS IN THIS MARKET FALLS

Hello Sir,
Happy weekend. I am planning to invest 40,000 in shares by this month end. As i see the market at its peak i did some research. This is my opinion, Power sector and Infra. Could you suggest me few good ones for a period of 1-2 yrs investing. what do u feel abt
Adani power, Rel Power, Birla Power, NHPC, Lanco Infra, DLF.
thanks and regards
Nag

and

Mahesh Ji,
Please suggest some stocks to accumulate in this correction period
Rajeev Daniel

Most of investors wait market fall and I think this correction is start in Indian markets so these are some of good shares in my buying list.
1. Reliance communication ltd :- I already buy this share @148 in this Friday (19.11.2010) this is a good telecommunication company with 5 rupee face value 67.72 % promoter holding 8.42 % FII and book value of reliance communication is 244.66 so I think I easily get exit @178 in 1-2 months and may earn 22 % profit easily in 1-2 month . and in my style of investing I invest only 4545-5000 in a share ( in icici direct minimum brokerage is charge till 4545).
2. MTNL :- in Monday I think MTNL is available in range of 50-55 . MTNL book value is 149.47 and I buy it for target of 68 in 1-2 months.
3. TATA COMUNICATIONS:- after buying of MTNL I wait price of TATA COMUNICATIONS falling till 260 or below 260 then I buy a lot of tata communications ( lot means invest 4545-5000 indian rupee in this script, not to confuse lot mean F&O lot. I nevar use F&O and intra day trading . My target for tata communications is 340 and I think you knew my shopkeeper style that I nevar book loss and hold until my target get
4. CLICK HERE TO READ MY SHOP KEEPAR APROCH IN SHARE MARKET
5. INFRA BEES:- if infra bees is availbe below 320 then I buy a lot ( invest 4545-500 indian rupee)
6. SASKEN COMUNICATIONS:- then I consider sasken communications if available below 170 . sasken communications is a good IT stock with 10 rupee face value and you wonder that promoter buy back there share @260
7. KOTAK MAHINDRA BANK:- this is the only counter in banking sector which available near his year low and try to catch it below 400.
8. NHPC:- at last I try to buy NHPC below 27
9. And now my liquidity is end. I have only 33,000 surplus saving which I wait to invest in market fall you wonder that I not buying any share in my minimum BSE 200 index share list CLICK HERE TO READ MINIMUM BSE 200 LIST because I wait these share for hitting his best buy price range.
10. prof. nag ji, in your list i think NHPC and R POWER is good choice but not agree with other share.
11. discloser:- my personal intrest in all of shares which i discuss in this article and this blog.

DHANUS TECHNOLOGY IS AGAIN IN BUYING RANGE ( FSP SERIES 1)

it is good time to again accumulate dhanus technology ltd share @ 14-15 in Monday. I think you remember in this blog FSP series 1 I told details of dhanus tech @16 and we book 54 % profit from dhanus tech @ 24.65
CLICK HERE TO READ PAST PERFORMANCE OF THIS BLOG
now dhanus tech is again available @14-15 so I think this week I will buy it again
CLICK HERE TO READ PAST ARTICLE OF FSP SERIES 1: DHANUS TECHNOLOGY

RIBA TEXTILE : HOLD

Mahesh Sirji,
Thanks a lot for your reply it really helps sir……..Can you please let me know abt Riba textiles. Riba textiles 200 shares @ 17rs per share Sir ji also market is going down due to global weakness……what r ur outlook for short term investment at this point of time?? Regards, Saifuddin Accenture Mumbai
1. safuddin ratlam wala ji I think market correction is start and it will be continue for next 20-30 trading session in these sessions market behave sideways or corrective phase with little pull backs but these days are important for fresh delivery base buying for outlook of 2-3 months I start my fresh buying to day with R COM .
2. Riba textile is a 10 rupee face value share.
3. book value of riba textile is 34.34 so I think this price ( CMP 12 ) is a value buying and you may no need to worry with your buying price 17 I am very happy to see your small quantity .. I always try to educate my blog readers that BUYING IN SMALL LOTS is a good policy.
4. 52 week low for riba textile is 8.25 and 52 week high 19.85 EPS of FY 09-10 only 0.32 so share traded at high P/E but I think market may victim a huge rally in textile sector because this is the only sector that not performs in last 20 year.
5. Promoter holding 53.33 % in riba textile is also a good sign.
6. So I think you may hold riba textile for a profitable exit
7. My discloser: - I am not holding any share of riba textile but hold arvind ltd in textile sector so my personal interest is included in textile sector.

AVOID BANKING SECTOR

I am looking DCB and Union Bank for long term investment for 1-
2 years. Is banking sector is safe for long term? Pls suggest is it ok
to enter in these stock ok at this level? Ask by manish tayal

1. my view is negative on banking sector in this valuation because I think valuation of banking and auto sector is very high and these sector may underperforms in next rally.
2. Entry level for DCB is below 40 and union bank below 180 and I think this is not a fake..This level is possible when banking sector bubble is blast in this market .
3. But how many time to take the end story of banking rally I not sure so if you ask my view then it is negative for banking at this time ..(I think only kotak Mahindra bank below @400 is a good long term pick in banking sector)
4. This is my view only and I may be wrong .
5. Discloser:- no any banking stocks are in my holding.

NIFTY ETF

Respected sir..
Sir please let me know in which company should I invest for long term on monthly 3k.
As I am 24year old so I want to invest now only so please guide me sir.
Regards
Mahesh V Limbakar

Mahesh V limbakar ji not invest in single company invest in whole nifty

1. I think you knew about ETF these are traded like a share but in nature like a mutual fund.

2. Nifty ETF is an exchange traded fund and it unit traded like a share on NSE. You can buy nifty ETF and hold there unit in your D MAT like a share.

3. click here to read detail about nifty ETF

KIRI DYES LTD: GOOD BUT BELOW 200 DMA

Sir,
I have 50 share in kiri dyes chemicals price at Rs.627/-. I am a short term investor (2 months) in this situation hold or sell for this stock.
Please reply as soon as possible. Thanks,
Vishal Kumar
1. Kiri dyes is a 10 rupee face value chemical company.
2. EPS of kiri dyes is 16.31 in FY 09-10 which discount it at P/E of 35 and I think maximum fair price for kiri dyes is 300-400 only
3. Year high of kiri dyes is 877 and year low 427.50
4. I not advice you to book loss because promoter holding in kiri dyes is 73.44 % and promoter increase their holding from 69.98 % this is a good sign and I think after consolidation stock show fresh rally.
5. FII also increase their holding from 6.48 % to 7.39 %
6. Company is good and may give your buying price back, but 2 months is a very short periods and share traded below it 200 DMA of 582 and if any share traded below his 200 DMA then it is say that stock is technically weak in short term.
7. I have no any share of kiri dyes ltd.

SOUTHREN ISPAT AND ENERGY LTD: NAGATIVE

Hi Kaushik Ji,
Can you kindly express your views on "Southern Ispat and Energy Limited”. Heard from someone that this is going to be multibagger in future.
Thanks,
vamsi

1. Vamsi ji southern ispat and energy ltd is a 10 rupee face value Iron & Steel/Interm.Products company in BSE group “s”
2. Southern ispat and energy ltd 52 weeks high is 48.60 at 14 Jan 2010 and 52 week low 9.90 only.
3. Once a share beaten more then 50 % from is year high then in 99 % case I think no chance to touch again 52 week high in near term and southern ispat correct near about 75% from recent year high.
4. In June 2010 promoter holding 20.58% in southern ispat and energy ltd and now (sept 2010) it is 4.21 % only so reducing in promoter stake is great negative for any counter.
5. In 8 and 10 November you see great bulk deal in southern ispat and energy ltd CLICK HERE TO SEE DATA OF THESE BULK DEAL IN BSE SITE.
6. southern ispat also plan to dilute his equity Southern Ispat and Energy Ltd at its meeting held on November 06, 2010, has the resolution of raising funds up to 100 Crores and also approved alteration of MOA and AOA for increasing of Authorized Capital up to 160 Crores of the Company.
7. So my view is negative for this stock. I have no any share of southern ispat and energy ltd.

ASSAM COMPANY INDIA LTD: NEUTRAL

Mahesh ji, happy diwali and best wishes to you. I wanted to ask you if chemplast sanmar and Assam Company are good buys for long term investments. Will they give good returns 2 yrs from now?
Radhakrishna Rao

1. Radhakrisna rao ji I already give my view about chemplast sanmar ltd so CLICK HERE TO READ VIEW ON CHEMPLAST SANMAR.
2. Assam company (India) limited is a 1 rupee face value tea and coffee company.
3. book value of Assam company (India) ltd is 9.97 so CMP 27.75 is near about 3 times high from book value.
5. today Assam company (India) ltd share is touch his year high of is 29.20 and year low of this share is16.70
6. promoter holding in Assam company (India) ltd is 46.19 % and FII holding 21.15 % which are good.
7. this company also gives 0.10 rupee to 0.20 rupee dividend per year.
8. my view is neutral for Assam company but share traded in bull phase and fundamentals also normal so I think this is hold for short term profits.
9. I have no any share of Assam company India ltd.

SUDDEN JUMP ON SHAKTI PUMPS

Mahesh Ji,
Can you comment on sudden jumping of share value of sakthi pumps
Rajeev Daniel?

1. Shakti pums is an S group share in this group total number of share is very low so price easily fluctuate when any huge quantity of deal done any side.
2. Total number of share shakt pumps have 62, 22,900 and near about 49.64 % hold by promoters.
3. so general public have only 31’33’854 shares and AGM of shakti pumps will held on 21 December 2010 so I think any big change will be aspect in this AGM
4. This is not a buying recommendation my view is negative after sudden news base rising.

JAGSON AIRLINE:HOLD

Hi Mahesh,
I am holding 535 shares of Jagson Airlines @ 21.Can you please tell whether I should continue to hold or exit.
Thanks,
Brijendra kumar

1. Brijendra ji I think you may no need to worry because jagson airlines is a T group company with 10 rupee face value.
2. Promoter holding in jagson airline is wonderfully sound total 71.53 % promoter holding is a good fundamental.
3. year high of jagson airline is 23.35 and year low 8.37 I think if any market fall if we are able to catch it @10 ( please do not average out your losing positions) then this is really a good buying.
4. I think there are chances of uptrend in this share because small airlines is best takeover targets for big and if this happen small company always get price appreciation.
5. book value of jagson airline is 3.28 only
6. This is a news base counter so I think you may wait for next good news for profitable exit.
7. My view is positive for this stock if available @10 or HOLD for old buying.
8. I have no any share of jagson airline.

JM Telecom Sector Fund

Would you please advise any telecom related mutual fund/stocks which will be best bet at this point of time for long term?
Regards,
Sreenivas.
battula

click here to read reply

KOUTONS RETAIL INDIA LTD: AVOID

Dear kaushik ji,
I am new in stock market and planning to buy KUOTONS. Can I buy at current market rate Rs 103?
Kindly give your advice to me. Ask by shri vijendra singh
1. Vijendra ji KOUTONS RETAIL INDIA LTD is a 10 rupee face value retail company.
2. KOUTONS RETAIL INDIA LTD year high is 451 and year low 96 share traded at 102
3. FY 09-10 EPS of KOUTONS RETAIL INDIA LTD IS 26.95 BUT JUNE 2010 EPS ONLY 1.80 I wonder to see this type of sudden great downfall in EPS so I think company EPS have further concern in some quarters.
4. KOUTONS RETAIL INDIA LTD promoter holding in March 2010 is 65.11% in June 2010 63.90 % and sept 2010 59.50% so promoter continue dilute their holding and it is a great negative factor for any fundamental analysis. (FII also reduce their holding from 14.46 % TO 7.94 %).
5. We also see a huge bulk deals in this share CLICK HERE FOR DETAIL
6. So my view is negative for KOUTONS RETAIL INDIA LTD.
7. Book value of KOUTONS RETAIL INDIA LTD is 164.50 but in light of above some negative points I not consider it as value buy
8. I have no any share of KOUTONS RETAIL INDIA LTD.

MICRO TECHNOLOGIES: NAGATIVE

Hi Maheshji
what is your overall review about market
and also want to know about your view on Micro technologies Ltd (532494)
Ask by shri Hitesh chauhan
1. Hitesh ji overall I think market is enter in bullish phase and making new highs in coming 1-3 months
2. And please note that "only index growth is not a genuine parameter of market growth because index constituency is SUBJECT TO CHANGE read THIS LINK FOR DETAILS
3. MICRO TECHNOLOGY LTD is a 10 rupee face value "S'' group IT company ,year high for micro technologies ltd is 228.60 and year low 133 ,and currantly share traded at 209.40
4. Micro technologies ltd 2009-10 EPS is 57.52 so share traded at P/E of 4 only and Micro Technologies and H.A.SH Security Services (Israel) announce the launch of India's unique "International Command & Control Centre.
5. But micro technologies ltd promoter holding is continue in downtrend March 2010 ( 32.49%) in June 2010 (31.84 %) and sept 2010 (30.95%) so promoter continue dilute their holding and it is a great negative factor for any fundamental analysis. ( FII holding 4.33 %) and company plan further preferential allotment of securities subject to approval of shareholders it is also dilute equity of company.
6. We also see a bulk deal of 80000 share at 4 oct 2010 @214.86 and historically after such type of bulk deal share show downtrend
7. So my view is negative for micro technologies ltd.
8. Book value of micro technology is 275.40 but in light of above negative points I not consider it as value buy
9. I have no any share of micro technologies ltd.

SURYACHAKRA POWER: HOLD

Dear Mr. Kaushikji
Iam Saj I wanted to know your view on Suryachakra power. Last month I
purchased 10000@21.45 but it is now at very low and iam in huge loss
so please advice me any chance to exit with profit. I read your views
on Suryachakra what about your view on a chance of price to go up is
it over or has to wait. Your advice will be highly appreciated.
Thanks in advance
Best regards
Saj

1. Suryachakra power is a 10 rupee face value power company and fundamental of suryachakra power is not so bad.
2. suryachakra power has many subsidiary power companies and I think it will take time but this share not only return your buying price it may give profit also.
3. Please do not buy such a huge quantity at once in any share is your fancy then buy it in SIP method but not to buy a huge quantity at once.
4. Ok, do not worry you are not alone... SAINATH HERBAL CARE MARKETING PRIVATE LIMITED also buy 723995 share of suryachakra power @ 20.91 on 30.09.2010 ( source:- BSE site ) and I think they hope for profit.
5. Suryachakra Power Corporation Ltd has informed BSE that the name of "LAHARI POWER AND STEELS LTD", a subsidiary of M/s. Suryachakra Power Corporation Ltd, has been changed to "SURYACHAKRA GLOBAL ENVIRO POWER LTD" w.e.f. March 19, 2010.
Further the Company has informed that M/s. Climate Change Investment, Luxemburg (CCI) has entered into an agreement with Suryachakra Group for acquiring 26.1% stake in Suryachakra Global Enviro Power Ltd, at Rs. 28.98 Per share. Out of the total Investment of Rs. 500.50 Mn, the first tranche of Rs. 400 Mn has already been received. CCI has also committed to take part in the future Renewable Energy Projects of the group.
6. Book value of suryachakra power is 18.09
7. So overall my view is not so much positive for this company but in your case legaly i not authanticated to give you any advice so read disclaimer on this blog before take any step but my view " hold" for this share because i think it may move in uptrand in coming 6 months to 1 year
8. I personally hold 75 share of this company i buy these share @55 in 2007 on advice of a famous technical analysts mr....singh. in 2007 i am a paid member for shri singh daily forcast but unfortunatly all of tips given by him on technical basis is fail and i wait suryachakra power ltd rally from last 3 year for exit .
9. this experiance inspire me to start my own free blog on fundamental analysis for prevent investor from such type of technical traders read details at

http://sharegenius.blogspot.com/2009/07/how-analysts-on-tv-confuse-investors.html
KEY WORDS:- make profit from F&O futuare and option suryachakra power f&O tips daily future and option calls forex trade.