RAMSARUP INDUSTRIES LTD: CONTINUE SIP

Sir, What's your view on Ramsarup industries Ltd. You have advised in your penny stock blog couple of months back. Is it worthy now to enter and Recently I noticed many of the companies are splitting their shares to 1 FV. By doing this, they can increase the volume but nothing special thing will happen. What benefit will get these the companies by doing this act? Ask by Shankar ji. 

1. On 2 April 2011 I write an article on my penny share blog about to enter in ramsarup industries @ 19 for my new readers who not read this article first read it at this link http://mypennyshare.blogspot.in/2011/04/ramsarup-industries-ltd-19.html

 2. Now ramsarup industries are traded @ 5 only but read above article again you find I already warn you that in the coming 2 year ( April 2011 to April 2013 ) price fall will be continued so investing only in 2 year SIP method.

 3. Today my view is still positive because the promoter stake is now constant at 40.29 % and no new bulk deal happen in last 2 year which is a sign of non speculative trade.

 4. The Board of ramsarup industries noted that the Net Worth of the Company has eroded and the Company has become a Sick Industrial Company as per provisions of Sick Industrial Companies (special provisions) Act, 1985 (SICA) and is required to make reference with BIFR and necessary compliance be made in accordance with provisions of SICA. 5. So if you make a SIP than I think it will be continue till April 2013 BUT PLEASE DON'T MAKE ANY FRESH INVESTMENT BECAUSE THIS IS A SICK UNIT AND OTHER GOOD STOCKS ARE AVAILABLE AT MARKET FOR FRESH INVESTMENT.

6. I have no any stock of ramsarup industries Ltd.

7. Now we come your second question that why companies splitting their shares at 1 rupee FV , it is make a psychological effect on small investors because if they buy a stakes of 10 rupee face value @ 120 than they think it is costly but if they buy same stock of 1 rupee face value @12 than they think it is cheap.

Raj oil mills ltd :AVOID

Sir,
Please give your view on RAJ OIL MIlls Ltd. Will it raise in coming future. What's the reason for its downfall continuously ask by Shanker ji
1. Shankar ji please do not ask more than one question continuously because if you ask more than one question at a time other reader of this blog may wait a long time for their reply.
2. Raj oil mills Ltd is a 10 rupee face value edible oil company Year high and lows for Raj oil mills Ltd is 16.70 and 3.13 so this is very poor situation.
3. Reason of this fall is promoters stock selling they reduce their holding from 22.97% so 5.93 % and DII also reduce their holdings so the stock is now held by mostly general public and trapped small investors only.
4. There are many bulk deals showing speculation activity in this stock read details of bulk deals at this link
http://www.bseindia.com/markets/equity/EQReports/BulknBlockDeals.aspx?scripcd=533093
5. I think you may AVOID Raj Oil Ltd , I have no any share of Raj oils Mills Ltd

MY BEST MUTUAL FUND CHOICE

Hello Mahesh ji Please suggest a Mutual Fund for SIP method. I can invest 1000/- per month for my daughter's education purpose. Now she is in her 1 year. I can maintain it for 10-15 years ? Ask by Shanker
1. Shanker Ji as you read in my mutual fund blog that I always like a mutual fund with largest corpus
2. If you do not know why I like mutual funds with large corpus than first read this article
HOW TO CHOOSE A MUTUAL FUND
3. So today top 5 mutual fund with largest corpus are
HDFC Top 200 - Growth corpus 12309.87 cr.
HDFC Equity Fund - Growth corpus 10466.14 cr.
Reliance Growth - Growth corpus 5824.87 cr.
Franklin India Bluechip – Growth corpus 5192.68 cr.
Reliance Equity Opportunities Fund – Growth corpus 4763.68 cr.
Click here to download all equity diversified mutual fund schemes corpus and latest NAV
4. So HDFC TOP 200 is still a winner read my former article on HDFC TOP 200 scheme in this link
http://mutualfundgenius.blogspot.in/search/label/LARGEST%20MUTUAL%20FUND%20SCHEME

CLASSIC DIAMONDS (INDIA) LTD

Mahesh Ji, I hold some amount of Classic Diamonds. Please let me have your opinion about it. ask by Rajiv daniel ji 1.CLASSIC DIAMONDS (INDIA) LTD is a 2 rupee face value stock traded at 4.76 
2. Year high / year low for CLASSIC DIAMONDS (INDIA) LTD is 8.78 and 3.31 so as my criteria of stock selection ( which we already discuss on www.maheshkaushik.com ) this type of ratio is not good for making fresh investment.
 3.Promoters holding is 63.32 % but promoters reduce there holding in every quarter so this is also negative. 
4.CLASSIC DIAMONDS (INDIA) LTD not give any dividend after 2010.
 5. So my view is negative for CLASSIC DIAMONDS (INDIA) LTD i have no any share of CLASSIC DIAMONDS (INDIA) LTD.

HSIL LTD :WAIT AND WATCH

Hello mahesh ji, could you please share your views on HSIL? i would like to buy this stock for long term(3-5 yrs). is it good buy / what price i will buy? regards, VJ
1. HSIL LTD is a Containers & Packaging ( sanitary ware) company with 2 rupee face value.
2.Year high of  HSIL LTD  is 181.10 and year low 104 and stock traded at 138 so these ratio,s look normal.
3.Promoters holding 51.57 % which is  good FII holding 20.54% they reduce there holding from 21.57 % so FII get exit slowly from this stock.
4. Every thing is normal , only one negative point that market is near his 2 year high but stock traded 25% below from his year high, this is a bearish sign.
5. So stock is good, but may be show more downside so wait and start buying below 100 .
6. I have no any stock of  HSIL LTD

PERFER HIND ALUMINIUM INDUSTRIES LTD INSTEAD OFNALCO

hello mahesh ji, what is your view on Nalco (national aluminium company). is it right time to pick this stock? regards, VJ
1.NALCO is a 5 rupee face value aluminium company , traded at 48.
2. Year high is 68.45 and year low 44 so this ratio is normal.
3.Nalco sept 2012 EPS is 0.02 paisa only and profit + net revenue is down in every quarter so i think company may be turn in to a loss making company in next quarter.
4.Promoter holding is good at 87.15 % , there are also a good holding of FII and DII.
5.At 16.03.2011 nalco give a bonus issue and stock spilt so as my criteria i think after a bonus and spilt investor may wait at least 2 year before make a fresh investment.
6.So i prefer HIND ALUMINIUM INDUSTRIES LTD instead of NALCO.
7. I have no any share of NALCO and HIND ALUMINIUM INDUSTRIES LTD.

Winsome Diamonds and Jewellery:AVOID

Namasthe Mahesh ji... Please provide your valuable inputs on WINSOME DIAMONDS & JEWELLERY. I would like to buy this share for short term. Thanks a lot Goverdhan
 1.Winsome Diamonds and Jewellery ltd is a 10 rupee face value stock.
 2.Year high and year low of Winsome Diamonds and Jewellery is 59 and 21 , so as my basic concepts it is not good for a stock that down more than 50 % within a year. 
3.Book value of Winsome Diamonds and Jewellery ltd is 117.63
 4.Promoters holding Winsome Diamonds and Jewellery ltd is 25.21 % and promoters reduce his holdings from 27.22 % , this is 2nd negative point. 
5.Many bulk deals in Winsome Diamonds and Jewellery ltd is shown in last 6 months which is very negative.
6. So in light of above negative points like reducing promoters holding, bearish year high low ratio large scale bulk deals clearly say that investors will AVOID this stock. 
7. I have no any stock of Winsome Diamonds and Jewellery.

Shri Ganesh Spinners Ltd:AVOID

Please give your views about Shri Ganesh Spinners ask by mixter 
1.Shri Ganesh Spinners Ltd is a 1 rupee face value textile company. 
2.Book value of Shri Ganesh Spinners Ltd is 0.99 and CMP is 0.84 so this is traded near book value , no very exiting ratio in price and book value. 
3.Net revenue in last year is 92 cr ,Net revenue per share is 1.67 so in this term stock may achieve 1.60-1.70 price target. 4.Promoters holding is NIL so company promoters is general public like you and me, pure speculation base stock.
 5. Bulk deal in sell side also shown in last 2 months see detail of bulk deal at here 
6.So my view is negative for Shri Ganesh Spinners Ltd. I have no any share of Shri Ganesh Spinners Ltd.

DIFFERENCE BETWEEN ABSOLUTE RETURN AND ANNUALIZED RETURN

Sir, I am Manish Parekh, please remember our last discussion on profit booking formula. I just want to know which type of 11% return you have quoted? Absolute or annual? I also want to know the difference between two. If you can help me, please guide. ask by manish parekh 
1. Manish ji i give this formula in my mutual fund blog . for new readers i give a link of this article http://mutualfundgenius.blogspot.in/2010/08/sharegenius-formula-of-book-profit-in.html 

and latter we discuss it on this blog..here is the link of our past discussion 
http://sharegenius.blogspot.in/2012/05/how-to-book-profit-in-mutual-funds.html 

2. OK , now i tell you about difference of absolute return and annual return. 
3. The absolute return also known as simply return.this is a measure of the gain or loss on an investment portfolio.absolute return is expressed as a percentage of invested capital. for example i invest 30,000 in arvind ltd at 2009 and now my portfolio value is 150000 so my absolute or simple return is 120000 rupee in percentage term it is 400% of basic investment amount 30,000. 
4.I get this 400 % gain in 3 years so if my basic investment of 30000 grow 71% each year and we compounded (add)profit every year in basic amount than in 3 year it will be grow near 400% so my annualized return is 71 % 
5. so in my formula of profit booking in mutual fund SIP , i quoted 11% absolute return or simple return.

INDIABULLS POWER LTD:HOLD OR BUY BELOW10

mahesh ji, I am a regular reader of your blog. Please update us about indiabulls power for long term basis. advance thanks for reply . . Regards ask by deepak mahajan 
1. Sorry deepak ji for such a late reply. 
2. India bulls power is a 10 rupee face value electric utilities company. 
3. Year high and year low of India bulls power ltd is 20.70 and 8.10 so as my criteria this is a negative point where year high/low is more than 2.
4. in sept 12 stock have nil net revenue but due to other items net profit is 7.42cr , oh nil revenue is a major negative concern.
5. Promoters holding is 60.79 % and good FII +DII holding so this is good point.
6. so overall my view is hold and buy more near 10 because of good promoters holding and Indiabulls Realtech Limited, the wholly owned subsidiary Company of Indiabulls Power Ltd. has successfully conducted the boiler light up for the first 270 MW unit of its 1350 MW Power Plant at Sinnar, Nashik District, Maharashtra. Following the boiler light up, commercial operation is expected to commence in January 2013 so i think after Jan 2013 nil net revenue concern is solved so near 10 or below 10 it is a good long term buy. 
7. i have no any share of indiabulls power ltd.

MEGA CORPORATION LTD:HOLD

I am first time invested 25,000 in Mega Corporation Ltd.buy in 0.35 but now price is 0.33..please help me and suggest me;;; ask by sell LR (nickname)
1. Respected sir Mega Corporation Ltd  is 1 rupee face value IT company.
2. Year high of Mega Corporation Ltd is 0.64 and year low 0.29 so this ratio of year high/year low is more than 2 , as per my formula when this ratio is more than 2 than i think more downside will be remain in particular stock.
2. Stock have very low revenue of  0.32 Cr in June quarter.
3. Promoters holding 52.87 % is still strong.
4. You invested 25000 in single penny stock which is very wrong...please not to invested more than 2500 to 5000 in one time  buying in small quantity is always good in stock market there are more than 2500 listed companies in market so do not put all of your money in a single stock.
5. OK , due to strong promoters holding and no bulk deal in last 2 year and no big rally come in last some time i think you will be get a profitable exit so my view is HOLD.
6. i have no any stock of Mega Corporation Ltd.

GANESHA ECOSPHERE LTD:GOOD BUT WAIT

Mahesh bhai thanks a lot for information, As per your calculation so many good companyes are available at very low price, i read some where that ROE and ROCE is most important for management effective ness, is it ok that company haveing ROCE more than 35 are good to buy please through some light on more fundamental, and please give your view about ganesha ecosphere and ind swift lab, Thanks and regards, ask by jignesh patel ji 
1. thanks jignesh ji for your comment about fundamental analysis, i do not knew about ROE and ROCE, in my buying i always check these points:-
 • Net revenue of company not nil and net revenue per share per year is more than market price of stock.
 • Year high/ year low is below 
 • Promoters holding is more than 20 %
 • No bulk deal in last 2 years.
 • No bonus and stock spilt in last 2 year. 
• promoters not reduce his holdings in last 2 year 
2.GANESHA ECOSPHERE LTD is a 10 rupee face value stock traded at 46 
3.Year high and year low of GANESHA ECOSPHERE LTD is 61.90 and 39 so this ratio is normal.
 4. Promoters holding of GANESHA ECOSPHERE LTD is 56.50 % and they increase his holdings which is good. 
5. Bulk deal of 1.25 lakh share happen in 12-08-2012 so this is negative as my concept of investing.
 6. this is a low volume and risky stock so i think you may wait downside for fresh investing. 
7. i have no any stock of GANESHA ECOSPHERE LTD.

HISTORICAL DATA OF SGX NIFTY

hello i need historical data on SGX NIFTY. plz help me out 
thanks in advance ask by shakhawat ali ji

Ok i give you  Historical  data of SGX nifty future in excel format and pdf format.

so you can download historical data of SGX nifty future here ,
 please remember SGX nifty means Singapore nifty which is traded at Singapore stock exchange only please do not confuse with CNX nifty which is Indian indices and traded at NSE so as your demand i provide you SGX nifty data

CLICK HERE TO DOWNLOAD SGX NIFTY FUTURE DATA IN EXCEL FORMAT

CLICK HERE TO DOWNLOAD SGX NIFTY FUTURE HISTORICAL DATA IN PDF FILE

key words:- download historical data of sgx nifty, sgx nifty future historical data

SHIFT TRENT IN PANTALOON RETAIL

Hi, What is your take on Pantaloon Retail- Is this a good pick in long term compared to Trent ? - whenever i go to big bazaar it is full and more and more people are shifting to such large stores. But I also like the Star Bazaar from Trent, It is difficult to find space there and I shop there now days. ask by ronicsen
 1.Pantaloon retail and trent ( tata group retail arm known as trent) both are retail companies.
2. Pantaloon retail face value is 2 rupee and market value is 190.75 trent face value is 10 rupee and market value 1136. ( if we change pantaloon price in 10 rupee face value than it is 190.75*5= 953 so pantaloon is cheap)
3.Pantaloon retail year high is 239 and year low 125.30 stock traded at 190 so this is good.
4. Trent ltd year high 1260 year low 771 stock traded at 1136, this is also good.
5. Promoters holding in pantaloon and trent is 43.66 and 30.95 % with 22.01 % and 13.57% FII holding , both are normal.But pantaloon lead in both of terms.
6.Both are dividend paying companies so in light of above six points it is dificult to choose that which are more good so i use my net revenue per share concept for final decision .. ok , now we calculate net revenue per share in pantaloon retail it is near 200 if i assume fy 12-13 net revenue near 4400 cr. and in trent estimated net revenue in 12-13 is 800 cr only so net revenue per share for trent is near 250.
7. so finally pantaloon retail is clear winner because it market price 190 is below it 1 year net revenue per share but in trent market price 1136 is near 4.5 time high from it one year net revenue per share so i think shift trent to pantaloon retail is good.
8. i have no any share of both of companies.

deccan gold mines India bulls power and south indian bank

Sir, I have 500 shares of deccan gold mines purchased @31.70, 1000 shares of India bulls power purchased @16.90, 1200 shares of south indian bank purchased @24.56. Sir Please share your opinion, whether i can hold this for a period of 2 years or shall i reduced these stocks? ask by kiran sounuman ji
1. kiran ji please ask only one share at a time for detail analysis.
2. deccan gold mines is a 1 rupee face value stock with nil revenue promoters holding 43.56 % and Fii holding 3.08 % year high and year low is 26 and 15.08 stock traded at 21 my view is negative due to nil net revenue but other ratio like promoters holding and year high low say that deccan gold mines give you a exit opportunity near your buying price so it will be a hold for you.
3.India bulls power ltd is a 10 rupee face value power company India bulls power ltd is also a nil revenue company i wonder that who is recommended you this type of nil revenue companies? year high and year low is 20 and 8 which is not good promoters holding 60.79 but they reduce there holding from 62.34 % so if i am in your side i book my loss in India bull power and try to enter again near 5-6 after wait of 3-15 months. so please take your own decision.
4.south Indian bank is 1 rupee face value share with good net sells of 1069.43 cr promoters holding is nil in south Indian bank but FII holding is 45.27 % so pure FII driven stock, i think this will give you a exit with profit so hold this.
5. i have no any stock of above 3 companies. all of your stocks are traders favorite speculative stocks so fundamentally not possible to give a view in these type of stocks but my view is negative for all of 3 stocks .

TITAN INDUSTRIES LTD: SELL ON RISE

Dear maheshji, Kindly give your views on titan industries. I hold good quantity since last 12 years. Is it now saturated OR growth can come & is still hold ask by kishor barhate ji
1.TITAN INDUSTRIES LTD is a 1 rupee face value share with very low EPS and high price.
2. TITAN INDUSTRIES LTD 52 week high is 272.05 and year low 154 stock traded almost near his year high that means technically very strong.
3.Promoters holding 53.05 % and FII holding 16.15 % which is normal.
4. Stock of TITAN INDUSTRIES LTD is spilt from 10 rupee to 1 rupee and give 1:1 bonus in 24.06.2011 so generally after spilt and bonus stock not trade on year highs so i wonder to see it.
5. please see this year high and low data from 1995

Year	Open	High	Low	Close	No. of	No. of	Total Turnover
					Shares	Trades
1995	132.5	172	95	118	4,80,900	2,126	6,64,87,000
1996	116	168	66	84	15,33,857	4,258	18,23,69,953
1997	86	95	57	66.25	22,54,918	5,169	15,41,92,586
1998	74	105	32.3	95	54,95,399	19,803	33,27,09,707
1999	110	136	109	136	2,75,000	70	3,46,32,600
1999	92	178	58.6	144.65	2,39,01,936	67,811	2,47,45,70,343
2000	146	158	47.05	60.3	61,36,778	37,453	54,74,17,989
2001	61.95	88	38.05	42.5	1,20,20,973	85,569	74,03,81,480
2001	51.7	51.7	23.3	36.9	48,46,486	36,611	18,06,12,702
2002	38.5	89.7	33.9	77.8	3,38,55,867	2,83,846	2,32,49,49,278
2003	78.85	143.8	50.1	129.3	3,90,02,557	3,37,234	3,66,28,47,345
2004	131	191.7	83	186.85	1,98,31,948	2,61,797	2,70,97,86,190
2005	188	864.9	155.1	821.65	13,36,05,524	15,69,170	72,19,89,07,306
2006	825	895	486.2	859.05	8,55,91,244	15,74,471	64,52,61,49,794
2007	869.1	1,795.00	730	1,562.30	2,45,48,593	6,45,174	26,81,57,45,201
2008	1,555.00	1,715.00	710	927.25	84,13,451	3,68,122	9,19,75,86,553
2009	936	1,509.00	668	1,422.05	64,93,062	2,85,292	6,46,23,30,964
2010	1,420.00	4,244.00	1,404.00	3,601.30	95,62,008	6,94,928	28,63,65,42,703
2011	3,610.00	4,765.00	154.4	170.8	10,26,09,447	22,57,699	63,19,24,25,732
2012	171.4	272.05	170.35	268.7	7,90,34,328	11,12,194	17,63,76,94,456

6.Due to these data i think growth is saturated in 2011 and it is risky to hold it further so if i am in your side i book my partial profits in every rise and not to enter it again in coming 2 years.
7. i have no any stock of titan industries ltd and please remember that my estimate may be wrong like other investors so please take your own decision.

THIS MONTH SIP :WHY SOME STOCKS ARE UNDERVALUED ?

hello mahesh sir, I'm shiva from chennai.on your Aug.12th post told that some shares are undervalued than book value, but there must some drawbacks or some negative news behind that ? why these stocks are so? please explain me sir. thank you. ask by shiva

1. Shiva ji , there is many reason for a stock that's make him undervalued so i told you some of the reasons which make a stock undervalued.

2. first reason company high debt, when a company plan to expand his debt than it is a negative sign for company future so big player want to sell there stock and as you knew market formula that low demand give a low price to stock. example of these type stock Reliance communication and kingfisher

3. i remember in 2006-2009 our analyst on TV always say Arvind ltd is a high debt company so investor may quit from Arvind ltd that time price of Arvind ltd is 12-36 but i buy it because of it good revenue per share and good book value now arvind ltd is repay most of his debt and now CMP of arvind ltd is 80 with a target of 140 .

4. second reason sector outlook market players speculate from sector to sector , if you are a old player of market than you remember in 2000 market give decent valuation to IT sector other sector are undervalued in 2007 market run with infra sector other sector like banks are undervalued and in 2011 market played with banking sector other are undervalued.

5. so in my SIP recommendation i choose some of this type of undervalued stocks for SIP , this month SIP is Central bank as you see in top 10 undervalued stock list that rel com , hdil , india bull real , iob, vediocon is already in our SIP list so central bank is new SIP

 

ACCEL TRANSMATIC LTD : HOLD

Dear Sir, I'm here by requesting your urgent help regarding the below mentioned stock Accel Transmatic 500nos @ 28.73 Regards, George Daniel ji
1. ACCEL TRANSMATIC LTD is a 10 rupee face value storage media company.
2. Year high and year low of ACCEL TRANSMATIC LTD is 18.65 and 7.55 stock traded at 8.34 so year high and year low ratio show a bearish trend in ACCEL TRANSMATIC LTD. 3.Company have very poor revenue and i think stock may show further down prices in coming one year.
4.Promoters holding in ACCEL TRANSMATIC LTD is 58.55 % and promoters of accel transmatic ltd plaged there 20.12 % stocks so this is not good and second thing company have low number of shares so easy to speculate in pricing.
5.Accel Transmatic Limited, formerly known as Transmatic Systems Limited, was formed through a strategic merger of Transmatic Systems Limited, Accel Software & Technologies Limited and Ushus Technologies Private Limited. The company operates through two business divisions namely Ushus Technologies and Accel Animation Studios and has its subsidiary company in San Jose, California USA.
6.Overall my view is negative but you may hold your stocks because you already lost 20 rupee per share and average out when stock is stable for recognise stability just track year high and year low ratio now it is 2.47 when it come below 1.5 ( it will take time )than you start your average outing your stock in a SIP of per month.
7. i have no any stock of ACCEL TRANSMATIC LTD .

GUJARAT STATE PETRONET LTD:AVOID

Hello Mahesh ji...

We are benefiting with your detailed analysis on the stocks. Could let us know your views on Gujarat State Petronet Ltd.? ask by Goverdhan ji
1. GUJARAT STATE PETRONET LTD is a 10 rupee face value stock with book value of 44.91 stock currently traded at 77 so it is just traded near double of book value.
2. Year high of GUJARAT STATE PETRONET LTD is 107.35 and year low 62.05 which is normal.
3.GUJARAT STATE PETRONET LTD June 2012 revenue is 270 Cr and net profit 124 Cr how it is possible? this mean company earn near 50% margin , i think this type of margin is risky and when margin is down stock is also down.
4. promoters holding in GUJARAT STATE PETRONET LTD is 37.73 % and FII holding 2.87 % and FII continue decrease his holdings in this stock which is not a good sign.
5.i think we will wait below 40 to this stock any speculative run may be possible in short term due to high delivery volume near 46 % but i think it is a distribution from large player selling to general public.
6. my view is clear AVOID

HOLD:Reliance communication

Mahesh Ji,
I am doing a systematic SIP in Reliance communication. And now I am worried about the recent announcement of spectrum auction. With the profits of all mobile companies coming down, what will be the prospectus of Reliance communication.?? ask by Rajiv daniel
1. Rajeev daniel ji do not worry because you already see a 20 % appreciation in Rel com price in last one month.
2.You wonder that currant net revenue per share is 53 in reliance communication and 53 is market price also.
3.Book value of reliance communication is 218.97 and as my fundamental targeting of a share average out both values it is 135.5 and reduce 10% for market fluctuation than it is 121.95 so i think reliance communication may be traded over 120 in near future ( time is no limit it may be 6-12 months ) and that is the time wen you closed your SIP and partially book your 10% profits at every 10 % rise.
4. Rel communication is in my personal holding so this is my dis closer.