Back from Gujarat ~ A Case for Investment? ~ Congress not seen as a strong alternative to Narendra Modi and BJP

Back from Ahmedabad & Gandhinagar~ Congress not seen as a strong alternative to Narendra Modi and BJP  who should  win the Elections with continuing strong support of the masses ~despite a recent judgement that convicted and sentenced to life imprisonment two of his and his Party allies and others  for their active and criminal role in the 2002 Gujarat Riots

Modi’s admirers are impressed with his  fast track, aggressive and proactive initiatives for industrialisation of Gujarat and creation of better infrastructure and quick decision making to support this ~ His detractors however denounce his role in the Gujarat Riots of 2002 and his brazen attempt to manipulate court and investigation proceedings ~ USA continues to reject a visa for Modi to enter their country ~ but US’s Google allows him to Google Talk !

Gujarat is not exactly cheap ~ Property Prices have escalated and the Pricing at Restaurants compares with Mumbai ~ However am told that Salary Packages  are yet on the Lower side and there is little scope for top white collared Professionals in the State

An oft repeated reality is how the farmers around Sanand , who earned a few thousand a month,suddenly saw their land values zooming  into lakhs and crores ! when Tata Motors announced in 2008 that they were relocating the Nano Mother Plant from West Bengal to Sanand ~  General Motors and Tatas (2010) have commenced their auto  operations while Ford will begin their unit in 2014 and Maruti too has just announced that their seventh production unit will be in Gujarat ~ Auto Ancilliaries like Sona Steering have announced Gujarat units to service Maruti ~ These Poor Farmers have seen their Golden Time come after a cycle of probably 100 years ! says my hosts ~ These Farmers have moved Straight from a Bullock Cart to a Four Wheeler and Apartments in Ahmedabad City and a retired life with plenty of money yet left over !

Eating Out too is not exactly cheap ~ my hosts took me for dinner to ‘Bawarchi’ a popular vegetarian chain of restaurants ~ was impressed by the decor and the huge variety of different cuisines available ~ Indian,Mexican,Italian,Chinese and even Lebanese but less impressed by the prices ! comparable with some good mid range restaurants in Mumbai  ~ A Full Meal for Four,that is inclusive of Drinks,Soup,Starters,Main Course and Dessert would easily reach Rs 2000, that’s Rs 500 a person ~ we moved across to Havmor Ice Cream Parlour at the corner ~ was impressed with Havmor Chain of Ice Cream Parlors ~ Single scoops began at a low Rs 30 ,Ice Cream Sticks were also available as were some awesome Sundaes and Milkshakes ~ It had outdoor seating as well as inside seating ~ The heavy rains had cleansed the City and the Wind was lovely so we sat out to enjoy the weather ~ by 10 pm the parlour was packed on a weekday !

Am told on weekends there is waiting at even some of the not so popular restaurants in Ahmedabad ~ seems the whole City eats out at weekends !

The Capital,Gandhinagar is the Green City ~ It’s 35 kms and an hours drive ~  State Legislature and Bureaucracy functions from his well laid out city ~ Most travel to and fro from Ahmedabad everyday for work ~ There were simultaneous Farmer Fairs and other huge Congregations,one was for  State Recruitment of just 200 but had over 10000 turning up ! the past few days that had occupied the grounds and all hotels were overbooked

Worth Looking at Investing in Real Estate in Gujarat in certain pockets

Punjab , Haryana  and UP State CMs are desperately trying to keep Industrial Plants  in their States from not moving across to beckoning States like Gujarat ~ Many are considering such a switch after sustained labour and power disruptions are severely affecting operations at their Plants in these states

So take a Call for Investing in Gujarat ~ Real Estate prices will move northwards  from Current Levels if Modi retains power in the State Elections (Indications are clear that he will) and surge more so if BJP or it’s led Coalition comes back to Power at the Centre in either early mid term general elections predicted in 2013 or in 2014 when scheduled and Modi moves from CM to PM ~Of course Risks exist ~for one Modi has not seen the last of legal issues that are investigating his role in the 2002 riots that accuses him of actually facilitated them ~ for another he has his bitter and influential rivals from within BJP itself who don’t want him to be portrayed as a PM Candidate

But For Now Business is Business and Modi has managed to attract some Big Business Houses to set up huge scale plants in his State ~ they have preferred to make their decisions on Economic & Business Realities rather than on Emotional or Ethical arguments and are ignoring or down playing the Modi risk ~ surprisingly  even the House of Tatas

So Go for Gujarat !?  There Yet co-exists Huge Poverty with the increasing  Prosperity ~ only select pockets of people and places are benefiting is the common argument  ~ but there is a Transformation visible in Industry for those who are willing to take the Risk and I see a Lot of Foreigners taking this Risk ~ it’s close to Mumbai too and State Government fast tracks industrial and investment proposals ~ and leading Bollywood Icon , Amitabh Bachhan is  it’s Tourism Brand Ambassador

Need to visit other States too ~ Karnataka was seen as a superb investment destination with IT sector attracting huge talent ~ alas Infrastructure bottlenecks have worsened ~ Maharashtra and Bihar are seen as the biggest Competitors to Gujarat to attract Investment

A warning ~ With ‘Coalgate’ scam getting bigger and uglier everyday and with the Indonesian Coal Imports becoming unviable at US $ 100/ton ,Investment in India’s Power Sector may be deferred if Proposed Power generation Plants are not able to finalise long term Coal Supply feed ~ NTPC has just announced it is putting on hold huge Investments Plans for this reason

Lack of  Continuous and Affordable Power will hit Industry all over India ~ Gujarat is better placed to tackle this challenge ~ this has powered Modi to attract big business to Gujarat with long tax holidays and assured power and other infrastructure

Investment is all about Opportunities and taking Risks and Gujarat is fast emerging as a Popular New or Relocation Industrial Destination  ~ at least for the Auto Industry

Cheers !

 

 

 

 

9 thoughts on “Back from Gujarat ~ A Case for Investment? ~ Congress not seen as a strong alternative to Narendra Modi and BJP

  1. hi Gaurav,
    when we talk of Gujarat/Modi first big cos/group come to our mind is Adani Group … its all listed shares are making continuous 52 week low … so are worth buying for long term once they stabilize

    regards
    Sameer

  2. Sameer,

    Am not a great fan of the Adani Group ~ the risk plays up tremendously when Operations are due to largesse ~ my advice is to look elsewhere for winners

  3. Hello sir You have not responded I think you don’t want to share. Just want to known for your paid clients only. A nice way for fetching the paid clients just like rohit tempted. I understand OK THANKS for an amazing half post

    1. Ooops Krishan ! ~ if you have been a veteran reader of my blog you would not have held this perception ~ It’s largely to express myself in not just stocks! ~ I believe that Wealth of Mind and Wealth of Monies should move in tandem ~another blog objective is to warn investors on certain scrips that in my opinion would strangle you if you invest in them ~ or to outline the risks involved should you make a particular investment~ sometimes I do drop a bullish hint on a specific scrip ~ come on Krishan ! you want the Fish straight ! ~ apologise if you feel offended that I’m not sharing! ~ in any case what I was referring to for Investing in Gujarat is in Real Estate ~ This is the relevant line from the post “Worth Looking at Investing in Real Estate in Gujarat in certain pockets” ~ A pre requisite for Professional Investment Advisory is a deeper commitment and that cannot come from just Blog Interaction ~ If I may,I would like to advice you to exercise some caution and do your own homework or seek a second opinion on free advice that is doled out on stock channels and the internet or through sms and email ~ as errors of interpretation and judgement and worse, vested interests at play are common occurrences ~ their money is not at stake! yours is !~ as far as your reference to and comment on another blog reader’s response,I think it is uncalled for! ~ I would like my blog posts to add value to you but I’m afraid if you’re just looking for direct and specific scrip recommendations you would be disappointed ~ and if you do find one that i make,please check it out thoroughly that it is appropriate for your risk profile and you before acting on it ! ~ Of course you’re free to ask me how I feel of any particular scrip you have in mind and I will respond if I feel I have enough level of conviction in that scrip that can add value to you ~ Cheers!

  4. Hello sir mentioning the name{rohit} is not important it could be anyone. As far as mentioning the name of specific scrip is concerned, as you run the stock advisory paid services it is evident that you are not going to share it here it is for your personel clients only. Some others do it selflessly but not tv channels and their so called experts. Your blog is helpful and knowlegable one Sorry i apologise if you feel offended . I want to ask you in what reference bawarchi havmor ice cream chain are you refering and certain pockets as you know there are many real estate companies in gujarat not asking the specific and the direct one as this is not the platform to share with everyone. Thanks

    1. Chill yaar Krishan ! I’m cool ~ am selfless too ! though from long experience consider Free Advice dangerous ~ I actually meant investing in property in Gujarat ~ but it’s a good idea too check for listed companies engaged in developing Real Estate in Gujarat ~ if you have access to a company database which has a good query module ask these questions ~ Give me all listed Gujarat Companies engaged in Real Estate or Construction ~ Filter these to those who have little or no debt and a Price to Book of @ 0.6 or lower for further investigation on the earnings potential ~ ensure monies are not outstanding in Current Assets in Debtors or Loans & Advances or trade receivables for long periods of one or more years

      Keep visiting the blog ~ you may be pleasantly surprised!

      Cheers!

  5. Hello sir I appreciate that’s a very positive response and a more helpful one. I like your blog so much that i flow with it flow the way you mention the facts figures risks involed. Sorry sir this time i got frustrated because you showed your hand towards a whole lot big ground that instead of helping was making us confused i am saying if you point your finger towards specific direction not the specific target as you did in your above comment it would be a very

  6. helpful one. As far mentioning free specific scrips is concerned you have done it in your earlier blogposts everyone knows the inherent risk associated and its upto us which we pick and which leave based on our knowledge and experience because we cannot pick each and everyone and there is no claim on you for this. Thanks a lot for bearing so coolly. Eagerly waiting for your pleasant surprises cheers!

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