Blog Viewer Queries and my responses…..Birla Power Solutions at Rs 1….Tulsyan NEC at Rs 46…..Marg at Rs 90+,Sanghvi Movers at Rs 110+,NIIT Tech at Rs 180+….Sabero Organics at Rs 97 +……Deccan Gold at Rs 20+…Garnet Constructions at Rs 12

Blog Viewer Queries

  • Birla Power at Rs 1
  • Tulsyan NEC at Rs 46
  • Marg at Rs 90+
  • Sanghvi Movers at Rs 110+
  • NIIT Tech at Rs 180+ 
  • Sabero Organics at Rs 97 +
  • Added later…..Deccan Gold at Rs 20+
  • Added later…Garnet Constructions at Rs 12

Thought I would give my brief observations on all of the above queries from blog viewers…..am reproducing both viewers queries and my brief responses  as this seperate blog post for wider and easy viewing

BIRLA POWER SOLUTIONS AT RS 1

BSReddy Says:

May 29th, 2011 at 7:34 pm 

Dear Sir ,
What about Birla Power Solution Ltd ,which is near Rs 1 /

 Gaurav Parikh Says:
May 29th, 2011 at 9:55 pm

Hi B R Reddy…thanks for your response…this specific blog post listed ten scrips between 20 and 30 and what you think they would be in 2012 if sensex is between 20k and 30k….A few years ago I had cautioned on Birla Power Solutions….I had a quick relook at it at par Rs 1 as this is the FV too …..Volumes are currently 15 lakh shares though average six month daily volumes are 75000 shares…. 52 week high/low is Rs 2/Rs 1…but margins and profits are very low…profits are in a few crs though sales crossed Rs 230 crs last year and will have crossed Rs 250 crs for FY 2011…amusingly it declared a 1:5 Bonus last year as well as a dividend of 7.5%…it carries debt of over Rs 100 crs while funds tied up in Debtors and Inventories last year aggregated over Rs 175 crs..Sales were Rs 238 crs….currently manufacturing portable gensets and engines for gensets it now plans to enter the field of power generation through two subs Birla Energy Infra Ltd and Birla Urja Ltd…it needs funds…has constantly….has raised Authorised Capital to Rs 425 crs….With Profitability in single digit Rs crs and Equity at Rs 215 crs,don’t expect any dividend for FY 11 that just passed….if they do foolishly declare one,they will have to dive into GDR proceeds of earlier years to distribute,if any are yet available….while I feel the downside is 75 paise,any uptick from here will be more on momentum,hype,sentiment and anticipation and blind faith in a Birla Company rather than on fundamentals…Yash Birla Group companies do not command much respect or premium on the bourses or in business…another of his group companies is Birla Shloka ….it is just Rs 15…it has a 52 week high of Rs 94 and the FPO in Jan 2010 was at Rs 50 for a FV Rs 10 share….if you wish to make monies in Birla Power, don’t depend on fundamentals to support upmoves from Rs 1….more likely on collective hype and hope…Cheers !

TULSYAN NEC AT RS 46-RS 49

AMIT GUPTA Says:
May 30th, 2011 at 3:50 pm  

whats your view on tulsyan NEC

Gaurav Parikh Says:
May 31st, 2011 at 12:05 pm 

Amit……Tulsyan NEC suffered from a very high Debt…over Rs 220 crs last year from a Total Capital Employed of Rs @Rs 285 crs…recent 2:1 Rights Issue at Rs 49.50 will triple Equity to Rs 15 crs and move Networth to Rs 120 crs…this will reduce Debt Equity towards 2:1…..Consolidated Turnover is Rs 876 crs for FY 11 but bottomline is a mere Rs 9 crs because of the high Interest outflow of over Rs 32 crs…they also faced huge Power cuts…40% in FY 10…affected capacity utilisation…they also faced some price hurdle to source sponge iron….they have since bought out a 35000 MT Sponge Iron Manufacturer Chitrakoot and are setting up a 35KV Thermal Power Station…Steel sales account for near Rs 700 crs of the turnover…rest is poly packaging synthetic division sales…it is a dividend paying company…65% + equity is held by the Promoters….I see little downside from here….Trading Volumes are low….would keep it as a ScripWatch rather than ScripSelect right now…Interestingly Market Cap is only @ Rs 70 crs on enhanced capital with share price in the mid Rs 40s levels…it remains a small company in this sense…sold 1.5 lakh ton of Steel and @ 12000 t on Packaging…has over 1500 employees …..will get re-rated only when Debt levels drop significantly to Rs 100-Rs 150 crs range and therefore Debt/Equity to 1:1….Keep a watch …..Cheers read more

Thinksoft Global crashes to Rs 221 (more fall indicated) from Rs 544 in just 10 trading days…..SEBI and BSE must probe this Company to maintain sanctity of our Markets

I had warned Investors of Thinksoft Global IPO in September 2009

Don’t ThinkHard about ThinkSoft Global Services’s IPO at Rs 120-130…Ignore it

However on Listing it kept defying gravity and on February 11,2010 it zoomed to a record high of Rs 544 with record Volumes

But since then in just Ten Trading days and Eight continous lower circuits,beginning with two 20% drops,then as lower filters were applied,a 10% drop,followed by now Five 5% lower circuit filters,Thinksoft Global has crashed today to a lower circuit of Rs 221.30

The Share Price and the Volumes were set up past one month…Have a look ….Something Stinks really Big Time Foul here

…methinks SEBI and BSE must quickly and conclusively bring the perpetrators to task,if they have to maintain the sanctity of our  Stock Exchanges and protect the sucker of the small Investor….

Classic case of Greed and Fear….we’ve seen such situations play up before too…like in the Austral Coke Company…dropped from near Rs 200 levels to under Rs 10 now

….The authorities must investigate any Promoter/Major Shareholder/Broker/Operator nexus in such cases…Such movements rarely occur without a criminal nexus…..Poor Retail and some HNWI suckers get trapped by this manipulation  

 Investor Education and Protection is one of the key purposes why I began this blog…to express my  concerns on several companies…In the recent past,Cranes Software and Karuturi Global…even Austral Coke ! and Thinksoft Global

However distasteful,unpleasant,bad,loss making Equity experiences should not permanently deter you from the Beauty of Equity…..A basket of Apples will have a few Bad ones !….Some are easy to Spot,some look great on the outside ,but are infested with Worms on the Inside……Learn to spot these worms and avoid such seemingly great Apples ! 

Be warned….There are many out there…. always on the Prowl to seduce you to lose Monies…because they make Monies,only when you lose !…and they have perfected the art of Seduction !….and think about this !…what chance do you stand against the 6000+ seductions listed on BSE !…and you will be double careful !

I reiterate my Quote “India and Insider Trading are Inseperable !”…which I discuss and debate in my sessions at various forums

Cheers !

1 Very Fundamental & often Contrarion Guy !…About GAP…That’s Me!

Gaurav A Parikh
Gaurav A Parikh

🙂 This is me in brief & first person 

Live ~ Don’t just Exist ! ~ B+,that’s also my Blood Group ~ Began with Auditing,Accounting and Consulting with one of the Big 4 in India & Overseas before moving full time to Capital Markets ~Passionate about Equities ~ Fundamental  Equity Research & Training  in Capital Markets ~ Wealth of Mind & Wealth of Monies should Move in Tandem ~ Want to sense what’s happening on BSE & NSE and off it ! ? then connect with me or my blog www.gauravblog.com with the tagline ” In India,Companies may fall sick but Promoters rarely do !” ~Buoyant ~ Enjoy Life’s Journey making Friends and Travelling ~Been There ~Done That~and even Burnt the Toast ! ~ Connect with ‘Rock On’ and ‘Zindagi Ne Milegi Dobara’ ~ Lived and Living it! ~Endeavouring to add ethical and honest value to Family and Friends and Business Clients and Associates ~ Mentoring Today’s Youth without being Judgmental while embracing the inevitable social changes

Intensely Passionate about All matters ….Equity and my blog www.gauravblog.com...My Kids,they’ve grown up now..they’re my vital Vitamins !….Food …Swear that Cauliflower is ‘God’!…Films…Neil Diamond…Kishore Kumar…Maria Sharapova…Madhuri Dikshit….reading on philosophy…yes,I really do!….’Economist’…. Cricket…and yes also my wife !..she’s prompted me to say this!

 🙂 This is also me..well not in first person and not so brief 

Professional Profile of GAURAV A PARIKH

Here are few recent accolades for GAURAV A PARIKH

  1. May 2015 ~ Rated  One of  The Top 10 Experts on Economics & Investing in India by an Independent US Observer
  2. January 2015 ~ Featured by OUTLOOK BUSINESS as one of India’s Top Ten Stock Pickers in its special edition
  3. August 2015 onwards ~ NSE Fundamental Training Mentor Workshops
  4. December 2015 ~ Featured by OUTLOOK BUSINESS  yet  again as an ace Stock Picker as Shemaroo given as stock for 2015 in the previous year edition as above zoomed over 100% despite Sensitive Indices cracking over 5% in 2015  
  5. January 2017 ~ Third year in a row invited by Outlook Business for Stock Select for 2017 Special Edition as simply killed it in 2015 & 2016 with Shemaroo & Astec respectively and topped the ranking in both years among those invited …luck more than skills perhaps 🙂
  6. December 2017 ~ Featured in Outlook Business Special Annual Edition fourth year running 
  7. April 2019 ~Honoured to be featured for a record fifth year in a row in the Special Annual Edition of Outlook Business showcasing  some of India’s best stock pickers

 

GAURAV A PARIKH is the Co-Founder & Managing Director of Leading  SEBI Registered Mumbai based Fundamental Equity Research,Investment Advisory & Training Entity Jeena Scriptech Alpha Advisors Pvt Ltd .He is a Fundamental Force to reckon with in the Field of Direct Equity in Capital Markets.Based in Mumbai he can be contacted on 9820162597 or [email protected] or a visit to www.jsalphaa.com should you wish to explore an opportunity to seek quality equity portfolio advice & training in Capital Markets or invite him to address an audience or expound his views on discussion panels on matters related to Equity & Corporate Governance….to protect and grow wealth on portfolios…for corporate and financial  advisory on IPO Process & Pricing ,Restructuring,Valuations,Mergers and Acquisitions and Funds Mobilisation through Equity and Debt read more