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Infrastructure- Roads: Slippery road for Construction companies

Road Construction forms the most crucial part of the economy. As per the National Highways Authority of India, about 65% of freight and 80% passenger traffic is carried by the roads. The National Highways carry about 40% of total road traffic, though only about 2% of the road network is covered by these roads. Average growth of the number of vehicles has been around 10.16% per annum over recent years. At 0.66 km of highway per square kilometre of land the density of India’s highway network is higher than that of the United States (0.65) and far higher than that of China’s (0.16) or Brazil’s (0.20), however, the highways in India are narrow and congested with poor quality surface. All national highways are metalled, but very few are constructed of concrete, the most notable being the Mumbai-Pune Expressway and Yamuna Expressway. The major national highways include, the Golden Quadrilateral and North-South […]

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How will the economy evolve and stock markets react if Congress forms a coalition government?

How will the economy evolve and stock markets react if Congress forms a coalition government?

Over the last few weeks we have been trying to look at probable economic outcomes and stock market scenarios given different possible political outcomes after the 2014 General Election. An Investor desiring safety needs to run such thought exercises if he is investing in India. For a simple reason that the economic policy understanding that existed among the political parties of various hues in between 1991-2004 (even if it was in fits and starts) has somehow broken down over the last few years. As such political outcomes have a very strong impact on the economic scenarios that can play out. This time we would like to see what if contrary to most opinion polls Congress still ends up showing a strong performance even if say, it’s worse than 2009 but still sufficient to form the government in one form or the other. In spite of very strong headwinds against Congress […]

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Engineer’s India Ltd. FPO: Should you Invest?

Engineer’s India Ltd. FPO: Should you Invest?

Details of the issue: Issue Date: 6th February – 12 February, 2014 (for retail investors) Face Value: Rs. 5 Price Band: Rs. 145 to Rs. 150 (Rs. 6 discount on issue price for retail investors) Issue Type: Government stake sale Issue Size: 3.36 Cr. shares to be sold by Government Money raised: Rs. 487.2 Cr. to Rs. 504 Cr. Lot Size:100 So, what is the subscription offer? Here is a review of the Engineers India Limited FPO… Engineers India Limited (EIL), a ‘miniratna’ PSU, is one of the leading engineering consultancy companies, with focus on oil and gas and petrochemicals industries. It has come out with an FPO of 3.36 Cr share of Rs. 5 each. The issue consists of a 10% stake sale by the President of India (i.e. dilution of 10% stake by the Government of India). The government holding in the company will come down to 70.4% […]

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Investors…Beware of these behavioural biases! – 2

Investors…Beware of these behavioural biases! – 2

In our last blog, we talked about some of the behavioural biases and mental pitfalls investors suffer from. We ended our blog with a promise of more to come! So here it is… a few more behavioural biases and ways to overcome them. Permanent bulls and permanent bears: We have this habit of hanging on to our views for too long and are able to adjust very slowly. In the stock market, there are some who are permanently bullish and some who are permanently bearish, about the market. Both generally fail to make money in the market. A general observation about analysts is that they are reluctant to change their stance (from buy to sell or vice-versa) even when the facts demand a change. Primary reason for this is the fact that the analysts have spent time and effort in coming up with those views in the first place. This […]

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Power Grid Corporation FPO: Can it power your portfolio?

Power Grid Corporation FPO: Can it power your portfolio?

Details of the issue: Issue Date: 3rd – 6th December, 2012 (for retail investors) Face Value: Rs. 10 Price Band: Rs. 85 to Rs. 90 (5% discount on issue price for retail investors) Issue Type: Fresh issue and Government stake sale Issue Size: 60.18 Cr. fresh shares and 18.51 shares to be sold by Government Issue Size: Rs. 6,689 Cr. to Rs. 7,083 Cr. Market Bid Lot: 150 shares and in multiples of 150 shares thereafter So, what is the subscription offer? Here is a review of the Power Grid Corporation FPO… Power Grid Corporation of India Limited (PGCIL), a ‘Navratna’ PSU, engaged in the business of transmission of electric power has come out with an FPO of 78,70,53,309 shares of Rs. 10 each. The issue consists of a fresh issue of 60,18,64,295 shares by the company and an offer for sale of 18,51,89,014 shares by the President of India […]

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