Tag Archives: Company
Nifty currently fairly valued? Should you still be investing?

Nifty currently fairly valued? Should you still be investing?

India Inc. waits for its election outcome next month with abated breath, with high hopes for a stable government to take centre stage. However, the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit continue to plague its economic growth.

For quarter ended Dec ’13 too, Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the global sectors outperformed.

In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY13-14? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?

Let’s find out…

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Gap between Nifty & Nifty@MRP widens. What should you do?

Gap between Nifty & Nifty@MRP widens. What should you do?

The quarter ending December 2012 looked up to the Government for some major reforms through its Union Budget for FY13-14, to address the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit.

Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the defensive sectors outperformed.

In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY12-13? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?

Let’s find out…

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FCCB – Is it really cheap for companies?

FCCBs or Foreign Currency Convertible Bonds, as fancy as they may sound, are still a mystery to many.
News and views, time and again, talk about companies issuing or redeeming FCCBs. Many speak of it as a cheap bond, as it enables a firm to raise funds at a lower rate of interest, while others doubt it for having any positive impact on the company’s financials and stability.

But, as is it said: There are no free lunches! While these do seem to be cheap in for the company prima facie, they come at a cost. So, what are these costs that make these cheap FCCBs, ‘not-so-cheap’, eventually? And should you invest in such companies?

Let’s find out…

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Kingfisher & Suzlon go the CDR way-but is it the right way for you?

Quite recently, companies like Kingfisher, Suzlon Energy have been in the news for many reasons. The major concerns surrounding these companies businesses were related to their surmounting debt levels. In such a situation companies usually approach lender banks for Corporate Debt Restructuring (CDR), which seems to be the only cure.

So, what causes companies to opt for CDRs? Do they see any hope of revival or rescue by opting for this mechanism? How to identify the ones that stand to benefit from the process? Let’s find out…

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Category:In the News
Bharti Infratel Ltd. IPO – Should you invest in it?

Bharti Infratel Ltd. IPO – Should you invest in it?

After a long break, the IPO market in India is finally picking up pace. After CARE’s IPO last week, it is now the turn of Bharti Infratel’s IPO to hit the market today 11 Dec, 2012.

Bharti Infratel, a subsidiary of telecom major Bharti Airtel, is the company’s leading telecom infrastructure player. It is planning to raise about Rs. 4,500 cr. from the issue. The IPO if successful will be the biggest after state-run Coal India’s IPO in 2010.

High competition and regulatory issues have troubled the Telecom sector as a whole, over the past 2 years. With this in mind, what is in store for Bharti Infratel’s future? What is its right price? And should you subscribe to the IPO? Let’s find out..

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