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Showing newest 36 of 92 posts from June 2009. Show older posts
Showing newest 36 of 92 posts from June 2009. Show older posts
Tuesday, June 30, 2009
Monday, June 29, 2009
QIPs to flood the markets
Anybody reading newspapers these days should be coming across this daily. Its QIP or Qualified Institutional Placement. The pace has accelerated that the drought hit and debt ridden companies are lining up QIP s like anything. Some do one and there are some companies who do 2 in just 2 months. The place is becoming so hot that more and more companies are looking at this route for raising some quick money - mostly to pay off their debts.QIP refers to the private placement of shares or so called securities that are convertible into stocks. The company does this QIP to mostly institutions like banks, insurance firms, FIIs, mutual funds. Both domestic and international players can take part in this private placement. QIP is considered to be the fastest, easiest and the cheapest route to raise capital, the price may not be at a premium to the CMP.
All kind of companies are coming up with QIPs. We had Unitech having 2 placements, Indiabulls Real Estate making a placement. The companies like Gammon India, Parsvnath, JSW, GMR, Ansal properties, NCC, Omaxe, Anant Raj industries, HDIL, Purvankra..... are planning to come up with QIPs of their own. Estimates show that more than 1 billion USD has already been raised by the companies and the requirement is so huge going forward. In fact, GMR alone had originally planned to raise a billion USD from this route.
QIPs are usually done by companies where the promoters' holding is high. Various promoters are looking at trimming their holding by a significant 10% to as much as 30% or 40%. Although there are many ways to raise money, the speed is the factor supporting the QIP route. The entire money raising process can be done in as soon as a week. The added advantage is that SEBI approval may be required. Also, using this route huge amounts of money can be collected which may not be possible in other routes.
The other usual ways for a listed company to raise capital is through preferential issue of shares, rights issue or by listing in foreign bourses. Most of these options are time taking process with preferential rights issues taking almost 3 months. QIPs were introduces in 2006 by SEBI when the Indian companies were in huge demand for money for expansion. It was in 2007 that 41 companies collected a whopping 23, 338 crore through this route. However, during 2008, the QIP activity came to stand still due to the pricing rules of SEBI.
SEBI had mandated that the price of shares that were sold through QIPs should be either the average of the past six months' trading price or the average during the previous two weeks. This prevented all the companies from taking this route. However, SEBI had eased these rules later helping the issuers to price their issue more in relation to the current market price.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
MPS (www.multibaggerpennystocks.com) : Wholly owned subsidiary of HBJ Capital (www.hbjcapital.com) : Demerged from June 29th 2009.
From June 29th 2009, one of the most popular division of HBJ Capital, in highest demand now called.......(www.multibaggerpennystocks.com - Penny Stock Focused Portal) will go live and operate as an independent unit. I wish Mr. Ekansh Mittal, Lead Associate of MPS Unit and his team a good luck and success ahead. -
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As a part HBJ Capital (http://www.hbjcapital.com/), we will continue to have following offerings focused on small & mid cap stocks only....
- "6 issues of 10in3 - Small Cap Multibagger",
- "6 issues of Street Smart - Mid Cap Multibagger",
- "12 issues of Flash Back - Monthly Update on all our reco" research reports.
HBJ Capital will focus on small/mid cap multibagger research report only, under the leadership of Mr. Arun Gopalan, Lead Associate, HBJ Capital. I would like to congrats all the paid subscribers who got an opportunity to avail the current Combo Offer which got closed on June 21st.
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At the sametime those who missed out this offer due to any unavoidable reason or due to delay in mail response/sms should get in touch with Sandeep @ 098867 36791 or e-mail : Info@hbjcapital.com.
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Regards,
Sandeep Jain, Senior Associate, HBJ Capital
Sequence of postings related with MPS at HBJ Capital before de-merger:-
>>>"The fastest way to make millions : MPS" - Grab it before it's too late!!! [De-merger of MPS from HBJ Capital on June 29th]
>>>"The fastest way to make millions : MPS" - Grab it before it's too late!!! [De-merger of MPS from HBJ Capital on June 29th]
Let's see What Balance sheet is all about
Readers, i have always had this idea or the interest of writing an article telling how to read financial statements. But i have doubtful how these kind of articles would be received. That has long stopped me from writing such articles. Finally, i just thought of giving it a shot.
Balance sheet is one of the three key financial statements an investor should go through before making an investment in any company. The other 2 - Income statement (Profit and Loss statement) and Cash flow statement are equally important as well. These three financial statements along with the Annual reports are very good sources of information. But, i am sure many people don't even have a look into them before buying a share. Today, we will see how to read a balance sheet.
As a sample, i have taken Pantaloon Retail and this is a random pick. The recent balance sheet is not available for most the of companies yet and hence we will take the FY 08 numbers. For FY 08, Pantaloon made a sale of 5866 crore and a net profit of 20.8 crore.
The basic theme behind the Balance sheet is this ---> Assets = Equity + Liabilities.
As the name points out things must balance out at any point of time. For ex, if the company increases the liabilities by issuing a debt, the liabilities increases. At the same time, the cash that came in will increase the Assets as well.
The below picture is not clear. I request the readers to click on the picture to view it clearly.
Current Assets - This will contain items that is meant to be used up shortly by the business. It is also indicative of item that can be turned into cash in one business cycle - often termed as an year.
Cash, Cash Equivalents and Short term investments - This is exactly how much amount that the company has to meet it's immediate needs. This does not necessarily mean the company has them in physical cash. For Ex - Pantaloon has a cash of around 297 crore, but it is not necessary it is hot cash. They are mostly very liquid investments. In most cases, that could lie in a FD account. The short term investments of 91 crore could be anything like a bond or any fairly low risk investment. In all, the company has around 389 crore of money that is fairly liquid and can be made available in little amount of time.
Accounts Receivable - This section gives the amount that the company is expecting to collect for which it has already sold the goods. A company like pantaloon can book and report a sale as soon as the product is out of the store, but there are chances that it will never receive the money for it.
What one should see here is how the total receivables moves with respect to the sales. If the total receivables moves much faster than the sale that the company is reporting, it clearly indicates that the company is boosting sales by giving loose credit. When there are loose credit, there are high chances that there are higher defaults as well.
In case of pantaloon, the sales rose by around 84% and 70% in the last 2 years. In the same period, the total receivables rose by 100% and 110% respectively. Clearly, the rise in receivables out paces the sales growth. But, it is not at an alarming level. One should worry if the receivables growth is around double the sales growth.
Inventories - Inventories need not necessarily be the final product. It could be raw materials, partially finished goods and finished goods. In case of a retailer like Pantaloon, we can safely assume that most of the inventory is finished goods.
Inventories are really really important for manufacturing and retail companies because they will clearly tell you how good and how fast the company is in selling stuff. Investors should always take the inventory number with a grain of salt. Unsold gold ornament from a Gold retailer may be worth much more than what is quoted in the balance sheet. But, what about an apparel retailer who sells some seasoned clothes ? It would be worth only for peanuts one or two seasons later.
Why did i said inventory number is very important for a retailer and for a manufacturing company? Because they soak in the capital that the company needs to run the business. If i can sell stuff worth 10 rupees 10 times a year and if my competitor does it only 5 times, i cam certainly at an advantage. Moreover, the success of these companies would depend on how fast the company is in selling stuff. It is here that Inventory turnover comes in handy. Inventory turnover = Cost of Revenue (from Income statement) / Inventory (from balance sheet).
In case of pantaloon retail, the inventory turnover is 2.8, where as for kouton retail it is only .81 and for Trent it is 2.6. Well this clearly says why Pantaloon is at the helm. However, it has a long way to go in terms of inventory turnover which can be a lot better. Look at Wal mart whose size of business is so huge. It has a inventory turnover ratio of 8.8.
Non current Assets - Unlike, the current assets, non current assets are the ones that cannot be converted into cash immediately or in one business cycle. They are not liquid assets. Manufacturing companies will have more of these non current assets. They include things like Land, Factory building, retail outlet, machinery...
PP & E - This constitutes the Property, Plant and the equipments. This will give you a clear idea as to how capital intensive the business is. There is nothing wrong in a company being capital intensive. A steel major or a cement major is prone to be capital intensive. But, you should check if the company makes out enough money from the assets.
Pantaloon's PP&E net is almost 29% of total assets, where as it is 7.7% for Koutons retail and 16% for Trent. Clearly Pantaloon is capital intensive when compared to the other two. But. let's see how much sales the company generates out the PP&E assets. The Sales of PRIL is 3 times its PP&E assets, where as it is 11 times for Koutons retail and 4 times for Trent. Clearly, Koutons scores well in this parameter. Koutons is less capital intensive and also makes the most out the PP&E assets it has. But, one should remember as the size grows, for a retailer the PP&E assets increases very much and it is tough to be lean. Wal mart's PP& E assets make up almost 80% of its total assets and the sales is just 3 times the PP&E assets. Sounds PRIL is more in the path of Walmart ?
Long term investments - As said before, this is not as liquid as cash and might be worth more or less that what is quoted. If there is substantial amount of this Long term investments one should dig deeper. For ex - PRIL says it has almost 720 crore in Long term investments. Thats not a small number. A peep into the annual reports will tell you that these are mostly the % stakes that the company holds in other subsidiaries and joint venture companies.
When i started writing this article, i never thought it would take these many pages or so much of my time. But, i guess you will find it useful. We will go over the other two parts - Liabilities and Equity in the days to come.
Balance sheet is one of the three key financial statements an investor should go through before making an investment in any company. The other 2 - Income statement (Profit and Loss statement) and Cash flow statement are equally important as well. These three financial statements along with the Annual reports are very good sources of information. But, i am sure many people don't even have a look into them before buying a share. Today, we will see how to read a balance sheet.
As a sample, i have taken Pantaloon Retail and this is a random pick. The recent balance sheet is not available for most the of companies yet and hence we will take the FY 08 numbers. For FY 08, Pantaloon made a sale of 5866 crore and a net profit of 20.8 crore.
The basic theme behind the Balance sheet is this ---> Assets = Equity + Liabilities.
As the name points out things must balance out at any point of time. For ex, if the company increases the liabilities by issuing a debt, the liabilities increases. At the same time, the cash that came in will increase the Assets as well.
The below picture is not clear. I request the readers to click on the picture to view it clearly.
Current Assets - This will contain items that is meant to be used up shortly by the business. It is also indicative of item that can be turned into cash in one business cycle - often termed as an year.
Cash, Cash Equivalents and Short term investments - This is exactly how much amount that the company has to meet it's immediate needs. This does not necessarily mean the company has them in physical cash. For Ex - Pantaloon has a cash of around 297 crore, but it is not necessary it is hot cash. They are mostly very liquid investments. In most cases, that could lie in a FD account. The short term investments of 91 crore could be anything like a bond or any fairly low risk investment. In all, the company has around 389 crore of money that is fairly liquid and can be made available in little amount of time.
Accounts Receivable - This section gives the amount that the company is expecting to collect for which it has already sold the goods. A company like pantaloon can book and report a sale as soon as the product is out of the store, but there are chances that it will never receive the money for it.
What one should see here is how the total receivables moves with respect to the sales. If the total receivables moves much faster than the sale that the company is reporting, it clearly indicates that the company is boosting sales by giving loose credit. When there are loose credit, there are high chances that there are higher defaults as well.
In case of pantaloon, the sales rose by around 84% and 70% in the last 2 years. In the same period, the total receivables rose by 100% and 110% respectively. Clearly, the rise in receivables out paces the sales growth. But, it is not at an alarming level. One should worry if the receivables growth is around double the sales growth.
Inventories - Inventories need not necessarily be the final product. It could be raw materials, partially finished goods and finished goods. In case of a retailer like Pantaloon, we can safely assume that most of the inventory is finished goods.
Inventories are really really important for manufacturing and retail companies because they will clearly tell you how good and how fast the company is in selling stuff. Investors should always take the inventory number with a grain of salt. Unsold gold ornament from a Gold retailer may be worth much more than what is quoted in the balance sheet. But, what about an apparel retailer who sells some seasoned clothes ? It would be worth only for peanuts one or two seasons later.
Why did i said inventory number is very important for a retailer and for a manufacturing company? Because they soak in the capital that the company needs to run the business. If i can sell stuff worth 10 rupees 10 times a year and if my competitor does it only 5 times, i cam certainly at an advantage. Moreover, the success of these companies would depend on how fast the company is in selling stuff. It is here that Inventory turnover comes in handy. Inventory turnover = Cost of Revenue (from Income statement) / Inventory (from balance sheet).
In case of pantaloon retail, the inventory turnover is 2.8, where as for kouton retail it is only .81 and for Trent it is 2.6. Well this clearly says why Pantaloon is at the helm. However, it has a long way to go in terms of inventory turnover which can be a lot better. Look at Wal mart whose size of business is so huge. It has a inventory turnover ratio of 8.8.
Non current Assets - Unlike, the current assets, non current assets are the ones that cannot be converted into cash immediately or in one business cycle. They are not liquid assets. Manufacturing companies will have more of these non current assets. They include things like Land, Factory building, retail outlet, machinery...
PP & E - This constitutes the Property, Plant and the equipments. This will give you a clear idea as to how capital intensive the business is. There is nothing wrong in a company being capital intensive. A steel major or a cement major is prone to be capital intensive. But, you should check if the company makes out enough money from the assets.
Pantaloon's PP&E net is almost 29% of total assets, where as it is 7.7% for Koutons retail and 16% for Trent. Clearly Pantaloon is capital intensive when compared to the other two. But. let's see how much sales the company generates out the PP&E assets. The Sales of PRIL is 3 times its PP&E assets, where as it is 11 times for Koutons retail and 4 times for Trent. Clearly, Koutons scores well in this parameter. Koutons is less capital intensive and also makes the most out the PP&E assets it has. But, one should remember as the size grows, for a retailer the PP&E assets increases very much and it is tough to be lean. Wal mart's PP& E assets make up almost 80% of its total assets and the sales is just 3 times the PP&E assets. Sounds PRIL is more in the path of Walmart ?
Long term investments - As said before, this is not as liquid as cash and might be worth more or less that what is quoted. If there is substantial amount of this Long term investments one should dig deeper. For ex - PRIL says it has almost 720 crore in Long term investments. Thats not a small number. A peep into the annual reports will tell you that these are mostly the % stakes that the company holds in other subsidiaries and joint venture companies.
When i started writing this article, i never thought it would take these many pages or so much of my time. But, i guess you will find it useful. We will go over the other two parts - Liabilities and Equity in the days to come.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Sunday, June 28, 2009
Unique Identification Scheme- A definite gain for some companies
Plz visit:- www.multibaggerpennystocks.com :To know the details of the companies that will benefit the most, drop a mail at info@hbjcapital.com with a subject line Unique Identification scheme.
JLR hits the bottom line of Tata Motors hard, real hard
Tata Motors posted it's first annual loss in about seven years and this has been attributed to the luxury brands which the company acquired last year. The net loss for the company was reported to be around 2500 crore in the just ended financial year and this is at a stark contrast to 2200 crore profits that the company posted in the previous financial year. The previous financial numbers does not include Jaguar and Land Rover, the brands that the company acquired from the Form Motor Co.Its true that there aren't many like Tata Motors in the world. Tata Motors has become a unique company in the portfolio that the company has to offer. How many auto majors have cars that can sell at 2500 USD on one hand and 100,000 USD on the other? However, no such tag or any unique identification is as good as the cash that the company can make. What good does any good attribute do if the company is making losses and eroding the investor's value?
The JLR unit had reported a loss of around 1800 crore in the pre tax numbers as the sales in the US and European markets slumped. Well, its a different story that Tata motors is not alone in the Luxury segment. BMW and Daimler have also been reporting losses for the past few quarters. About 120,000 Land Rovers have been sold in the 10 months ending Mar 31 2009, down from about 198,000 for the corresponding period a year ago. Jaguar sales fell to 47,000 units compared to 48,000 units in the previous year.
It's at least good that these kind of numbers were expected ever since the acquisition was announced. Turning around JLR has always been a tough task for Tata Motors. The way in which Tata Motors have worked, the kind of cars that the company had produced, the market that the company was catering to, the technology that the company has been using were all completely different with the ones of JLR. It will take time for the company to adapt to JLR before they can think of turning around.
The company has announced that 2000 jobs have been blown away in the air and there could be much more in the offing in the time to come. What better way to turn around ? :) With these kind of problems on one hand, the UK government on its part have been showing strict resistance in giving guarantee to the loans for Land Rover. The company has been reporting that it has been in constant touch with the UK govt to secure the guarantee for a 340 million pound loan.
Tata Nano will hit the roads soon. However, its going to take good amount of time for the little Nano to do any kind of big help to the company. Tata Motors had previously planned to launch the luxury vehicles in the Indian Markets tomorrow. One could expect these launches to get very good support from the domestic market.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Saturday, June 27, 2009
Friday, June 26, 2009
Weekly Profit of Rs 69,300 per lot [Rs28,800 in RIL + Rs30,000 in Suzlon + Rs 10,500 in ICICI Bank] : 100% Correct Calls last week!!!
When you look for testimony of our trading calls, look at the real numbers and text of sms alert sent to all the paid subscribers. What trading calls we send during the day we write at http://www.stoplosstrade.com/ so that our performance can be measured on daily basis in front of you.
- June 26th : Today's Trading Calls Performance [100% Correct] : Rs10,500 (Rs26,600 notional gain) intraday real profit per lot in ICICI Bank 700 Call Option.
- June 25th: Yesterday's [June 25th] Trading Calls Performance [NA = No Profit/Loss]
- June 24th: Yesterday's [June 24th] Trading Calls Performance [100% Correct] : Rs30,000 intraday profit per lot in Suzlon Energy 110 Call given today
- June 23rd: Yesterday's [June 23rd] Trading Calls Performance [100% Correct] : Rs28,800 intraday profit per lot in RIL 1920 Call given today
Want to subscribe for our most selling package of "Trading Calls"
Just call Sandeep Jain @ 98867 36791 or e-mail to Info@hbjcapital.com
-Team SLT
"The fastest way to make millions : MPS" - Grab it before it's too late!!! [De-merger of MPS from HBJ Capital on June 29th]
For more info: Just call Sandeep Jain @ 98867 36791
or
e-mail to Info@hbjcapital.com
- Team HBJ & MPS
Expect Private players to mine coal soon - Reliance Power, Tata Power, Jindal group, Gujarat NRE could benefit
We had already written extensively on how Coal will rule the energy markets in India at least in the next 10 years. The article can be accessed HERE. We had even indicated that the coal mining industry will thrown open to private players in the near future. The recent turnout of events in the last 2 months were indicating the same. Today's announcement that there will be a Coal regulatory authority setup in India in the next 100 days adds truth to our expectations.Currently the coal mining in India is dominated by Coal India Limited, which contributes for 85% of India's coal output. CIL is followed by Singaneri Collieries, an AP state govt venture with the Centre which contributes for around 9% of the total output. The remaining 6% is shared by captive users of coal. The captive users include Steel companies, Cement majors and few Power companies. Going forward the captive users will also include Reliance Power, Tata Power for whom the coal blocks will be allotted / have been allotted for the UMPPs awarded to them.
Currently, India produces about 450 million tonnes of coal a year and this is short by 50 million tonnes of demand. This gap is bridged by imports. However, the demand is set to more than double to about a billion tonnes of coal in another 7 years and this will widen the deficit as well. The widened deficit will ask for around 150 million tonnes and with the rising coal prices, the imports would become a costly option.
This has always promoted the government to look at opening up of the coal mining sector for the private players. The government is currently unable to up the production drastically since it would require huge investments. The opening up of coal mining had been on the agenda even from 2007, but it was constantly opposed by the left parties. However, now that the things have changed, the govt is set to open up the sector.
Earlier, President Patil had indicated that the government wants to carry forward the reforms in the Coal sector. The entry of private players is the big reform that the industry needs currently and she might have referred to that. Today, the coal ministry has announced that it has setup a 100 days agenda in which it would look at setting up a Coal regulatory authority.
Why would a sector that is completely dominated by one government player (CIL) need a regulatory authority? This only means that a lot of players are going to come in and that is where the regulator may be required. We are very positive that we would hear something of that sort from the budget which is few days away.
But, who would benefit from such an announcement? Certainly, the players will be selected based on some performance metrics or track record. Also, there are higher chances that the captive users who have been mining so far will be allowed to mine for commercial reasons as well.
The domestic players who can be huge beneficiaries include Tata power, Reliance Power, Jindal group, Gujarat NRE coke, Sesa Goa These players have been either captive users of coal or have been into mining with greater expertise.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Thursday, June 25, 2009
Mahindra Holidays and Resorts -Overvalued
IPO market seems to be brewing up. The companies, sensing an opportunity and with better valuations available are trying to cash in on the situation, either through private placements or through IPO, as in the case of Mahindra Holidays and Resorts. The issue will end a 15-month drought in India as firms had desisted from coming up with a public issue on account of valuations and sentiments being very low.Mahindra Holidays and Resorts IPO opened on June 23, 2009 and is going to close on June 26, 2009. It seems Mr. Anand Mahindra has made it a habit of hitting the market, when everyone else is away, as even in the case of Tech Mahindra, he came up with an IPO when no one was around.
First a look at business and then at valuations
Business
Mahindra Holidays and Resorts India Ltd. are in the business of leisure hospitality services in India. They offer different kinds of services that target different set of customers. The services that are offered are :
Club Mahindra Holiday Vacations
Under this scheme, the members can choose to holiday in any of the predetermined resorts for a fixed number of days in a year for a fixed number of years.
Zest
Mahindra holidays sensing an increase in the no of young urban families, came with this scheme to lure them to its resorts. Zest members get an option to choose between 5 resorts, for 6 days each year, for a period of 10 years.
Similarly the company has other offerings in the form of Club Mahindra Fundays and Mahindra Homestays.
The business model of Mahindra Holidays and Resorts is entirely different from hotel business. In this case members pay an upfront fee and then an annual subscription fee, whereas in case of a hotel, a person has to pay every time he comes for a stay. The company has been able to report reasonably good results and is not recession hit, as is the case with hotels. The reason behind it could be, that the company does not depend on occupancy level but depends on membership fee, which is paid annually. Now, if a person has paid a one-time upfront fee, which is non-refundable, then he would obviously pay annual membership fee to continue with his membership( Annual membership fee is substantially lower than upfront fee).
Financials
As reported by the company in its prospectus, the total revenues for FY2008-09 stood at Rs 442.12 Cr, which is a tad higher than revenues for FY2007-08 at 377.19 Cr. The net profit for the last three years was Rs. 79.80 Cr, 84.03 Cr and 42.52 Cr, and most importantly, it had a positive cash flow from operating activities. The company has been witnessing an average growth of 33% in the memberships over the years and currently has around 1 lakh members.
Valuations and Outlook
The company's business model is based on vacation ownership and enjoys the advantage of being a first mover. Even the outlook for such an industry is definitely positive, especially with rising income levels, but the valuations are high as explained below.
Mahindra's have set the price band in between Rs. 275 to Rs.325 for its initial public offer (IPO) of 9.27 million shares. The issue comprises a fresh issue of 5.89 million shares and an offer for sale of 3.36 million shares by M&M, and would represent about 11% of the post-issue paid-up capital. A simple calculation reveals, that the total shares of the company will be about 8.36 Cr. Now, if we take into account this year earnings which stands at 79.8 Cr, then the EPS comes out to be about Rs 10.
So, the valuation of IPO is highly priced in as the PE multiple works out to be 23-27 times next year’s earnings and 29-34 times current year’s earnings. When compared with competitors like EIH, Country Club, the valuations are definitely on a very high side. It would have been better had the price band been in between Rs 120 to Rs 140, but at current levels, my suggestion would be to avoid this for the time being (very high valuations). The prices may correct, once the stock hits the secondary market.
Note: The stocks discussed at www.hbjcapital.com thru blog postings are neither a part of “10in3” not “Street Smart” issues which we publish for paid subscribers. These are just stock specific views by HBJ Capital team; one MUST do the due diligence before doing any investment based on our reco.
To contact the equity analyst on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com
Rs30,000 intraday profit per lot in Suzlon Energy 110 Call given today [June 24th] : Team SLT
Our Performance Speaks Volume!!!
>>>Yesterday's [June 24th] Trading Calls Performance [100% Correct] : What Next On Thu, June 25th?
>>>Fed Says Recession Easing, Inflation Not A Threat. Fed keeps near-zero rates, sees gradual rebound.
- Team SLT
ONGC - spoiled by subsidies
ONGC, India's biggest energy explorer posted a decline in fourth quarter profits and it has been attributed to the fall in production. Net profits of the company declined by about 16% to around 2200 crore rupees in the quarter ending March 31 2009. It had clocked almost 2600 crore of profits in the corresponding period in the previous year. Sales declined by 12% to about 13,800 crore rupees.The drop in the earnings was offset to some extent by the decline in subsidies paid to state refiners. The subsidies were paid through discount on crude sales after the oil prices slumped last year. The concessions that are being given to the marketing companies such as Indian oil corporation is set to increase after the recent surge in the oil prices.
This is one reason why many people hate to invest in companies whose fortunes are dictated by the government. ONGC can do nothing but can increase its outputs and not the prices. And this time, the output has faltered leading to the dip in profits. ONGC’s subsidy bill climbs when oil prices rise above $70 a barrel.
Oil production from the company declined by around 7% to about 6.4 million metric tons. However, Gas outputs rose marginally from 6.14 billion cubic metres to about 6.16 billion cubic metres. Output was affected by a three-day strike that ended on Jan. 9. Production was restored three days after the strike ended, at 320,000 barrels of oil a day and 44 million cubic meters of gas daily.
ONGC was given temporary exemption by the government from subsidizing the refiners in the fourth quarter after oil prices fell from their July peak. Once oil started to climb in February, a subsidy of “around 9.4 billion rupees” was imposed on ONGC and GAIL India Ltd. The exemption was reversed after crude began to rise from Feb. 12. Rising oil prices may increase ONGC’s subsidy burden unless Prime Minister Manmohan Singh implements a proposal to free fuel prices from state control. A plan to deregulate prices may be presented to the cabinet in six weeks.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Wednesday, June 24, 2009
"Life is a do-it-yourself project." Your attitude, and the choices you make today, help build the "house" you will live in tomorrow.
Nice story...An elderly carpenter was ready to retire. He told his employer-contractor of his plans to leave the house-building business to live a more leisurely life with his wife and enjoy his extended family. He would miss the paycheck each week, but he wanted to retire. They could get by.
The contractor was sorry to see his good worker go & asked if he could build just one more house as a personal favor. The carpenter said yes, but over time it was easy to see that his heart was not in his work. He resorted to shoddy workmanship and used inferior materials. It was an unfortunate way to end a dedicated career.
When the carpenter finished his work, his employer came to inspect the house. Then he handed the front-door key to the carpenter and said, "This is your house... my gift to you."
The carpenter was shocked!
What a shame! If he had only known he was building his own house, he would have done it all so differently.
So it is with us. We build our lives, a day at a time, often putting less than our best into the building. Then, with a shock, we realize we have to live in the house we have built. If we could do it over, we would do it much differently.
But, you cannot go back. You are the carpenter, and every day you hammer a nail, place a board, or erect a wall. Someone once said, "Life is a do-it-yourself project." Your attitude, and the choices you make today, help build the "house" you will live in tomorrow. Therefore, Build wisely!
In the present context, this is very much applicable; when market was going up and up, whole world were busy seriously building portfolio with great stocks but when market has fallen 50% and stocks are down 80-90%, why are you staying away from market, is it not the right time to start buying stocks which are available in discount sale!!!
-Sharan G, Associate, HBJ Capital.
Prepare for future challenges - Come out of comfort zone.
A Nice Story to Share....
Summer will make us sweat and curse the sun but it’s also the time to savor the best mangoes of the year. some like them tangy others like them sweet, some like them in pickles others bite them like primeval dinosaurs attacking their prey but whatever way they are eaten or prepared, mangoes CANNOT taste bad!
This article is not about mangoes but it’s about a little worm of some unknown species that had not one sweet tooth too many. One sweltering summer afternoon, as it was resting on a mango tree not far from you the pangs of hunger began to gnaw at its little stomach and the worm slowly crawled around the tree to find food. Behold! It soon found a bunch of luscious mangoes hanging from the branch each bigger and riper than the other!
The worm had a small stomach with a big appetite and it choose the biggest and best mango and gnawed its way to the core, When it was in the core it realized that this was after all the best place to be – the temperature was cooler and there was no chance of being pecked at by a bird. Besides, food – that too the best ever was close at hand.
The worm lived a happy life inside but one day was rudely jolted out of its paradise. The mango had in fact been purchased by a chef who was disgusted to see an ugly worm inside the mango and promptly killed it…
In our life it’s easy to get comfortable and happy doing what we are doing now. If this happens for too long, we may not get under a knife like the worm but our heaven will be an unreal one that will eventually collapse.
Tuesday, June 23, 2009
Monday, June 22, 2009
Trading Package Restructuring on the Card.....See the change & feel the difference.
Pls visit : Link for more details.HBJ Capital Says, "Are you starting a business, go ahead like this; this is how we started"
Your first business requires a lot. Products to sell, employees to work, knowledge to be imparted... the list is endless. At first pass, it looks like you are going to need more experience, more time and more money than you could everafford. Better pass up on launching your business. Squash those dreams! Trample those desires! Vanquish your vision! At least until someone miraculously hands you a wad of cash and a ton of talent. But if you look hard enough, there are often short cuts that don’t require money or tremendous effort. Not to mention experience is overrated. Cash, knowledge andtime are limited commodities. Instead, there are paths that are less traveled in the entrepreneurial world that will yield HUGE progress.
Here are the top ten things you DON'T need when launching your first business!
- You (Don't) Need a Business Degree - A business degree (particularly an MBA) may be just want you need to land that big job at a Fortune 100, but it's the last thing you need to launch your own company. After all, YOU are the boss. You don’t even need to wear your best suit, and have apretty resume to get a job working for your own company. Instead, running your own business (no matter how big or small) will be a constant source of new experiences and new knowledge. There is truly no better way tolearning than just DOING IT! No question, many arguments can be made for having a degree, even if you are running your own business. But when it comes to starting up, you will save HUGE amounts of money (think tuition, room, board, and time to work) by just going outand getting started. Skip the degree for now. Five years later you can go back to school and actually afford it! Chances are you'll be the best student in the class. Heck, you’ll probably know more than the professor!
- You (Don't) Need a Business Plan - How many people have told you to write a business plan? Everyone! Now, ask those same people how often they refer to their own plan and work directly from it. No one! That’s because business plans are not effective business tools.
In our opinion, a business plan is a huge waste of time. Instead, you need three sheets of paper:
#1. First write your Prosperity Plan: The detailed vision of what your business will belike within the next 10 years.
#2. Next, write a Quarterly Plan: This is a list of goals that you must accomplish in thecurrent quarter to make the most progress toward your Prosperity Plan. Every quarter evaluate where you are, and write the next quarter’s Quarterly Plan.
#3. And finally, you need Daily Metrics: The daily numbers that show the heart beat ofyour company. For example, this may include yesterday’s sales, cash flow, orcustomer support calls. So when must you write the traditional business plan? When an investor requires it. Then again, the smartest investors know business plans are a waste, and will require other information which indicates your knowledge of and commitment to the success of your new venture.
- You (Don't) Need Experience - Everyone at some point didn’t have the experience to do what they are doing now. They had to gain it somewhere and somehow. The traditional route is to start small and slowly climb the corporate ladder of experience (and politics). There is another, albeit painful, way to learn a vocation: trial and error.
As an entrepreneur, you can dive into anything you want and will learn faster than anyother way – particularly because your livelihood depends on it. While it is a bumpypath, it does work. One tip – Don’t promise customers something you can’t deliver on. Be honest about your start up, and let your early customers pay you less for taking a risk on you. Plus... think about all the practical knowledge you will gain.
- You (Don't) Need a Website - A website is the first impression people will get of your business. However, if you simply can’t afford a good, fully functional website, people will immediately question your company’s ability to deliver service or products, or even question your legitimacy! So, instead of going with a marginal site, it may be better to go with no site at all. When it's time, put your money into a clean, crisp and professional website landing page - a single page that has a short paragraph explaining your services and ways for customers to contact you. A short, clean, professional site (even if it's only onepage!) will blow away a multi-page mess.
- You (Don't) Need Office Space - Office space can be expensive, particularly when you are starting out. Working fromhome can be distracting (think children running around) or worse, just plain lonely (what was that noise you just heard?!). One option is to reach out to other small business owners and see if they have a cubicle or open space to share. But don’t stop there, instead of paying rent offer to clean the space every night. This is a lot better than paying rent, and emptying some garbage cans andvacuuming is a small price to pay for good office space. Your good old dining room table may also serve as a conference table (and sometimes a bed) and could be your best and most cost-effective solution!
- You (Don't) Need To Hire Staff - The world is too wired now to have any “logical” reason for hiring staff. Go on to the web (if you don’t have enough cash for a computer – go to the local library), and find the people you need for when you need them. Services like E-lance and Mturk put you in touch with willing works ready to get the job done. Not only will you find VERY competitive rates, you don’t have to pay benefits either.
- You (Don't) Need a Blackberry - While this is a small part of business, it is a MAJOR part of distraction. Respondingto emails within seconds is not necessary, and in fact it will keep you from getting the work-at-hand done. As you get customers, tell them you only respond to email once a day. If they have an emergency, they can call your cell. You will be surprised how manyless people are willing to pick up a phone and call then drop an email. Just this small shift, you will filter our unnecessary nuisances, and immediate needs will automatically prioritized with the customer calling you. Your productivity has the potential to even increase!
- You (Don't) Need a Business Partner - It sounds so darn appealing to go into business with your buddy. What the heck, 50/50 each, work hard and you'll be millionaires within five years. Unfortunately, itrarely works that way. When it comes to sharing in the success, inevitably everypartner feels they got the short end of the stick. It isn’t much harder to start andbuild on your own company. The only thing you will really miss is a shoulder to cry on. So, instead of having and business partner, start a business group for start up entrepreneurs, all working on their own projects. Meet once a week to discuss your progress, challenges and successes. You will have the support you need and the100% equity that you will be grateful you kept.
- You (Don't) Need an Investor - Money is a powerful tool. It helps you do what you want to do faster than youwould otherwise. The problem is that money doesn’t have any intelligence, so it will simply amplify your existing habits and it will cover up problems until the money runs out. When we use our own money, we are much more disciplined in how we use it. And then when we have no money, we are forced to use ingenuity. Amazing things can be accomplished WITHOUT cash... if you put your mind to it. But what if you just can’t get started without money? I mean, you need that $1M to build your prototype and stock the shelves, right? Consider starting a off-shoot. Perhaps you can be a consultant to others who are designing complimentary products. Maybe you can make an information product that shows others your formula to doing what you do. There is always a way to get revenue in the door, without raising money first. It just may need to be an off-shoot of your original idea.
- You (Don't) Need a Plan B - If this sounds risky to you, then your business idea is just not good enough.... and you should consider alternatives. Instead, start a business that fully exploits your talents and skills, is in a niche that is being poorly served, and go at it with all you’ve got. Time spent working Plan B, simply proves you don’t truly believe in Plan A. Think about it.
- JK, Associate, HBJ Capital
Hindustan Dorr Oliver – Very good investment option
Hindustan Dorr Oliver Limited is an Indian EPC company having its core business activities in providing engineered solutions, technologies and EPC installation in Liquid-Solid Separation applications. The 4 broad verticals where the company operates are Mineral Beneficiation, Environmental management, Chemical and Fertilizers and Pulp and Paper processing. IVRCL took over the management of Hindustan Dorr Oliver in mid 2005 and things have clearly changed for the good. The net profit margins have improved from 1.4% to more than 7%, while the OPM has gone up from 1.82% to 11.24%. The returns on the capital employed have gone up from 9% to an impressive 24%. All these changes have been done over the period of the last 3 years. The debt to equity ratio is at a moderate .32
Mineral Beneficiation accounts for more than 60% are of its revenues and are seen as a major growth driver for the company. Mineral Beneficiation contains a variety of processes where the extracted ore from mining that can be separated into minerals and waste. The minerals coming out of the process can be directly used or processed further. HDO is the pioneer in Mineral Beneficiation technology, when you consider India. It is only now that companies like Elecon engineering are planning to foray into Mineral Beneficiation and HDO has a clear lead in this segment. HDO enjoys leadership in more than 70 different metallic and non metallic mineral processing industries. HDO has major contributions in processing of Alumina, Iron-ore, Uranium, Coal, Copper, Lead, Zinc…. HDO has executed projects for almost all majors like NALCO, HINDALCO, BALCO, MALCO, Vedanta… The recent inflow of orders from Vendanta group and Uranium Corporation of India and the huge investments that are coming into the resources sector are only pointers that HDO has a very bright future.
The Environmental management vertical currently contributes for around 25% of the revenues and it is expected to grow at a more than healthy %. Under this vertical, the company operates in Water / Waste Water and Industrial Effluent Treatment systems and offers integrated solutions for customer satisfaction. One can really estimate how this vertical would shape up by just looking around at the various water treatment / sewage treatment facilities that are being set up.
HDO recorded total sales of around 500 crore for the just ended financial year and they currently have an order book of around 1450 crore. The current market cap of the company is just above 300 crore and you should remember that this 300 crore company is the industry leader and a pioneer in the space of Mineral beneficiation. Some of the recent major order wins are HPCL – Mittal Energy order worth 127 crore, Vedanta Group order worth 66 crore, Uranium corporation of India Limited order worth 441 crore. The size of the order and the calibre of the awardees clearly shows what the future holds for a 300 crore company. One can expect an impressive growth of 50%+ over the next 2 or 3 years.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Sunday, June 21, 2009
Combo Offer Closing TODAY : [Our Top Selling Multibagger Package : HBJ + MPS Offerings both] available @ Just Rs12K per year : Hurry Up!!!
Saturday, June 20, 2009
Cals Refinery : The most sought after penny stock
Plz Visit: www.multibaggerpennystocks.com
Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.
Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.
Notice : [Result of the interview conducted on June 13th/14th is announced] : Congratulation to all the new associates joining us in Q2FY10.
Dear Aspirants,
We are happy to announce the final result of the interview conducted on June 13th & 14th. Out of 53 aspirants participated in the telephonic interview, only 1 aspirant got selected (who need to join on July 1st 2009) and 4 aspirants are waitlisted (joining date for them are not yet decided).
Pls find the list of aspirants selected/waitlisted:-
Being at HBJ Cap you will get enough freedom to think & contribute, you will be considered as building block/pillars of the organization with obsession to become #1 in all the areas we operates and that would be possible only thru your dedicated contribution.
Our focus & dedication towards work will help HBJ Capital to become a catalyst which can bring a change in the equity investment world; not to forget if you are the best in what you do, money will chase you!
Wish best wishes.
Regards,
Payal Saha, HR & Finance,
HBJ Capital, e-mail: Payal@hbjcapital.com
Call: Prime Contact [Sandeep @ 98867 36791]
Note: Interview for the next batch of aspirants will be conducted during Aug-Sept'09. Those who has passion for equity research & integrity to work in a team for a common goal to build HBJ Capital - A world class Org, should send their resume to Info@hbjcapital.com.
Pls refer our previous announcements related to the interviews:-
>>>Notice: Result will be announced on June 20th for the interview conducted on June 13th/14th.
>>>HBJ Capital team wishing all the 53 aspirants : "The Best Of Luck" for the interview on June 13th & 14th.
>>>List of 53 selected aspirants for the interview on June 13th & 14th.
>>> Last day for receiving the resume for openings at HBJ Capital [Interview planned on June 13th/14th]
>>>HBJ Capital is hiring!!! - Interview on 13th/14th June. Join us to build a company for next generation!!!
We are happy to announce the final result of the interview conducted on June 13th & 14th. Out of 53 aspirants participated in the telephonic interview, only 1 aspirant got selected (who need to join on July 1st 2009) and 4 aspirants are waitlisted (joining date for them are not yet decided).
Pls find the list of aspirants selected/waitlisted:-
- Prashant Sharma, Secunderabad (AP) - Selected
- Shivam Gupta, Kandivli-E (Mumbai) - Wait Listed
- Zuber Hakim, Surat (Gujarat) - Wait Listed
- Vipul Goyal, Vaishali (Ghaziabad) - Wait Listed
- Natraj Mahalingam, J.P Nagar (Bangalore) - Wait Listed
Being at HBJ Cap you will get enough freedom to think & contribute, you will be considered as building block/pillars of the organization with obsession to become #1 in all the areas we operates and that would be possible only thru your dedicated contribution.
Our focus & dedication towards work will help HBJ Capital to become a catalyst which can bring a change in the equity investment world; not to forget if you are the best in what you do, money will chase you!
Wish best wishes.
Regards,
Payal Saha, HR & Finance,
HBJ Capital, e-mail: Payal@hbjcapital.com
Call: Prime Contact [Sandeep @ 98867 36791]
Note: Interview for the next batch of aspirants will be conducted during Aug-Sept'09. Those who has passion for equity research & integrity to work in a team for a common goal to build HBJ Capital - A world class Org, should send their resume to Info@hbjcapital.com.
Pls refer our previous announcements related to the interviews:-
>>>Notice: Result will be announced on June 20th for the interview conducted on June 13th/14th.
>>>HBJ Capital team wishing all the 53 aspirants : "The Best Of Luck" for the interview on June 13th & 14th.
>>>List of 53 selected aspirants for the interview on June 13th & 14th.
>>> Last day for receiving the resume for openings at HBJ Capital [Interview planned on June 13th/14th]
>>>HBJ Capital is hiring!!! - Interview on 13th/14th June. Join us to build a company for next generation!!!
Friday, June 19, 2009
Combo Offer Closing on June 21st : [Our Top Selling Multibagger Package : HBJ + MPS Offerings both] available @ Just Rs12K per year : Hurry Up!!!
As a part of "Combo Offer" by paying just Rs12,000 for 1 year, you will be receiving following research reports on potential multibagger stocks.
[ Every month we will publish the monthly schedule like this: Notice: Dispatch Schedule for HBJ Capital's (HBJ & MPS) Research Reports : June 2009]
- “10in3” (Top selling product from HBJ Cap) - This is an exhaustive report on small/mid cap (along with sector coverage) with 10 times in 3 years potential. This report will be almost 80-100 pages with massive info & details on special talk with company mgmt. There will be total 6 issues of "10in3" reports per year.
- "Street Smart" (Top selling product from HBJ Cap) - This is yet another report on mid cap (along with sector coverage) with 4-5 times potential returns in 3 years. This is for medium risk profile of investors. There will be total 6 issues for "Street Smart" per year.
- "Flash back" (You must need this every month) - Every month you will get a report with latest update/announcement/ results on our past 10in3 & Street Smart reco, and our views. This will keep you updated on the company you hold in your portfolio because our responsibility doesn't end at just sending you the reports but to keep you posted on the latest development on the company. There will be 12 issues per year for "Flash Back".
- "Business Insights - A wealth creating penny stock" - Recently launched research report, it will be published one stock per quarter (4 issues of Business Insights per year). Our team scan thru almost 100 to 150 penny stock to find 1 single penny stock for "Business Insights" issue hence looking at the effort result will be also exceptional. One can expect 50-100 or even 200 times gain in such stocks for the period of 3-5 years at least.
[If you subscribe on or before June 21st, you will get following multibagger reports FREE as a part of "Special Offer" strictly valid till June 21st 2009]
- Last 12 multibagger stock reco from HBJ Capital FREE!!!
- Latest 6 multibagger research report (detailed report) from HBJ Capital FREE!!!
- Latest 2 multibagger research report from MPS (Wealth Creating Penny Stocks) FREE!!!
- Current month's 3 research reports (SS + BI + FB - June'09 issues) FREE!!!
Above package will cost Rs24K per year (12K for HBJ & 12K for MPS) from June 22nd onward!!!
Today is already Friday (June 19th), if I drop a cheque today or on June 20th/21st (Saturday/Sunday), will I be able to avail this offer because cheque will take sometime to clear?
[HBJ Capital] - Yes, you can. What you need to do is just drop a cheque (with account number and name - Pls call 098867 36791 to confirm the account#) at any ICICI Bank or ICICI ATM drop box and call/sms 098867 36791 with cheque# to activate your account within 1 hour. As soon as we get the cheque number (we will not wait till clearance) we will be able to activate your account. You can go for online netbanking or credit card payment too.
Call 9886736791 (Sandeep@Bangalore) or E-mail to Info@hbjcapital.com
3 Payment Options : #1. Cheque, #2. Online Net Banking, #3. Credit/Debit Card.
- Team HBJ Capital
Once in a lifetime opportunity: The great combo offer ("Multibagger Package : HBJ + MPS Offerings combined) available @ Just Rs12K per year.
Multibagger Package : HBJ (6 issues of 10in3 + 6 issues of SS + 12 issues of FB) + MPS (4 issues of BI) Offerings combined available @ Just Rs12K per year. The similar package will cost Rs24K after June 28th after MPS demerger!!!
For more details watch out this space!!! Also read the related postings...
For more details watch out this space!!! Also read the related postings...- Subscribers joining before June 5th will receive 6 multibagger reports + Flash Back with past 12 month's reco FREE!!!
- MPS (www.multibaggerpennystocks.com) will spin-off from HBJ Capital from 29th June'09. Save Rs12K by subscribing to HBJ Offerings before June 29th.
- HBJ Capital is launching "Double Circuit" on June 8th : 2 stocks reco/week - Expect 10-40% gain in short term. Offering as a part of SLT & MPS.
Pls visit: www.multibaggerpennystocks.com to download the copy of "Business Insights - A Wealth Creating Penny Stock" Research Report. [Note: MPS will be de-merged on June 28th 2009 & it will start operating as independent unit of HBJ Capital]
First promotional issue of "Business Insights" : A Wealth Creating Penny Stock (MPS Offering) is available for FREE download.
Wockhardt’s restructuring plans faces setbacks.
We all know what happened to most of the real estate majors during the last one year. The companies which were aggressively expanding their land banks and coming up with built up salable areas as fast they as they could was badly hit due to the slump in demand and inflow of capital. We have also seen many of these companies selling either their real estate assets or assets in other business verticals being owned by them to raise the much needed cash to keep the business running and to pay off their debts. This happening in a aggressive real estate space is understandable. But, we can only pity that a Health care major like Wockhardt has to face such things.
Wockhardt had recently piled up debts to the level of being around 4 times its total equity base. The total debt of the Hospital major stood somewhere around 4000 crore by the start of this year. It had also witnessed ratings downgrades from the key rating agencies like Crisil and Fitch ratings. The bad part of the debt was that the company had piled up more and more of Short term debts and debts in foreign currencies. With the Re hitting a rock bottom, the risks were steadily on the rise. The company was hit with difficulties for securing the working capital of its business – both domestic and overseas. The planned IPO that would have rescued the business to an extent had to be called off due to the slump in the markets. Clearly, nothing has worked out for Wockhardt so far.
The coming months and years have the potential to threaten the business functioning of Wockhardt. Over the next two years, Wockhardt faces a challenge in debt repayment of around 2372 crore. Out of this, 1324 crore needs to be paid in CY 2009 and the remaining in CY 2010. Wockhardt has been keenly looking at selling its assets both domestic and overseas to raise cash for the debt repayments and the working capital. Wockhardt recently sold its German subsidiary Esparma to one of the German Companies in order to divest the non core business and to raise cash. Though the deal size has not been announced officially it is being estimated at around 120 crore. Wockhardt is also looking at buyers for its Irish facility Pinewood and its French subsidiary.
However, the biggest sale that Wockhardt was looking at has seen a setback. Wockhardt was planning to sell a group of Hospitals that it is currently operating in India and talks were on with Apollo Hospitals. However, Apollo hospitals had announced that it is backing out since they are not happy with the valuations and clash of demographic presence. Though, Fortis and Manipal Hospitals are still in, the sale seems to be getting tougher day by day, since the promoters of Wockhardt are not in agreement with the valuations that they have been getting. There are higher chances that Fortis could bag some of the hospitals since they have been aggressively expanding in the recent times.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
Thursday, June 18, 2009
Corporate Social Responsibility @ HBJ Capital….. Shanti Foundation [Focus: Child Education]
CSR has always been an integral part of the HBJ Capital’s vision and the cornerstone of our Core Value of Good Corporate Citizenship. We at HBJ Capital have defined a set of core values for ourselves – Care, Innovation, Passion and Trust – to guide us in all we do.Every year, HBJ Capital sets aside 10% of its profits for CSR activities…..
Funds are allocated for spreading smiles in millions of lives across the country through a comprehensive children welfare and development programme.
As a Social Venture Philanthropist, Shanti Foundation promotes and catalyses universal education among underprivileged children, create the process to embrace these children into mainstream in a sustained manner, facilitate them to emerge as productive assets, and set the foundation for nation building.
Focus: Child Education....
Shanti Foundation believes that whether you are addressing healthcare, poverty, population control, unemployment or human rights, there's no better place to start than in the corridors of Education.
Because education is both the means as well as the end to a better life: means, because it empowers an individual to earn his/her livelihood and the end because it increases one's awareness on a range of issues – from healthcare to appropriate social behavior to understanding one's rights - and in the process evolve as a better citizen.
Children are the future of a nation…...
For an emerging and developing country like India, development of underprivileged children holds the key to the progress of the nation itself.
Education for underprivileged Children is the key whether we are addressing healthcare, poverty, population control, unemployment or human rights issues. Shanti Foundation has a network of more than 6 children welfare projects and a bandwidth of many NGOs and non-profits organisations across India.
'We owe it to society to give the wealth back' : Join our hands to serve the future of our nation, after all it is our own INDIA, our own BHARAT, apna hee tho Desh hai!!!
Always Your's
Kumar, CEO, HBJ Capital
Kumar@hbjcapital.com
India looking at doubling coal output in 7 years
We had written an article recently which was speaking about the current energy landscape of India and how it is planning to solve its Energy problems in the near future. The article can be accessed HERE. We had indicated that Coal will be the solution, India is looking at and even said that Coal will rule the power generation sector in the coming years. Though Environmental issues will continue to surround this, the idea of using coal will only get stronger.Environmental Minister, Jairam Ramesh has informed that India will look at expediting environmental approvals and allow mining in degraded forests to double its coal output. He has also pointed out that India will have to increase its coal production to about 1 billion metric tons in the next seven years to feed its existing and newer power plants.
Degraded forests are the ones which have lost most of their trees and around 55% of India's forest land contains degraded forest. The Environmental Minister has clearly indicated that there would not be any objections from their side for mining in these degraded forests.
India plans to add around 78,700 megawatts of generation capacity before March 2012 and add 100,000 megawatts in the next 5 year plan from 2012 - 2017. Clearly, India will not be able to reach anywhere near these levels without mining a billion tonne of coal. Coal India Limited, the largest coal mining entity in India and the world produced 403.7 million tons in the financial year FY 09. It is currently planning to raise its output capacity to 520 million tons by March 2012. However, there will be a shortage of around 228 million tonnes by the year ending Mar 2012, since the demand is estimated to be around 730 mt.
Though India currently imports Coal, it is yet to be seen how far the imports can be encouraged, since the shortage is growing at a higher rate every year. This is one of the key concerns of the Indian government and could even drive them to open up coal mining for private companies.
To contact the equity analyst on this story: Arun Gopalan in Chennai at Arun@hbjcapital.com
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