The Hindu Business Line : Attractive offer from JK Paper

JK Paper: An investment can be considered in the fixed deposit programmes across tenures. As the paper business is subject to a high degree of cyclically, the longer tenures are risky. But the rates on offer appear attractive.

The steady improvement in the company's financial profile also augurs well. The substantial reduction in interest outgo and replacement of high-cost debt with funds sourced at lower rates over the past quarter enhances the degree of comfort that is available to investors in the FD programme.

JK Paper is also set to commission a coated paper facility, which would also lead to a scaling up revenues over the next two years. We had earlier recommended that the three-year option could be avoided.

With further confirmation over the past quarter that the financials are in healthy shape, we believe that even this tenure can be considered as JK Paper is well-placed to ride out a weak phase in the business cycle. The minimum amount is Rs 10,000.

Jindal Steel and Power: Investments in the fixed deposit scheme of Jindal Steel and Power can be considered with a one-year perspective. Jindal Steel and Power offers cumulative and non-cumulative schemes. The minimum deposit is Rs 10,000 in case of cumulative scheme while it is Rs 25,000 for non-cumulative scheme.

While the revenue growth has been around 40 per cent, the company has been able to increase its OPMs mainly on account of lower cost of raw materials. A rich product mix with increasing focus on value-added alloy steel, addition of sponge iron and captive power capacity, high demand from construction and infrastructure sectors and the prices of sponge iron, which are expected to rule at higher levels, would bolster well for the company's future growth.

Shriram Investments: Investments can be considered in the high-yielding fixed deposit and debentures schemes of Shriram Investments. The company offers 7.75 per cent for a three-year cumulative fixed deposit and 8.40 per cent for a three-year cumulative debenture.

sThey also offer 7.50 per cent for a three-year non-cumulative fixed deposit and 8 per cent for a three-year non-cumulative debenture.

The offer is attractive and the risks are now lower considering the business growth and the capital infusion made in recent years. Investors can contact Shriram Investments at 044-24990960, 3 Floor, Mookambika Complex, 4, Lady Desika Road, Mylapore, Chennai - 600004

United Bank of India: Senior citizens can consider investing in the long-term term deposit scheme of United Bank of India. The bank has introduced a new term deposit bucket of between 7 and 10 years.

The bank offers 7 per cent for such deposits for younger investors with senior citizens being offered 8 per cent. This rate of 8 per cent is comparable to the yield on some of the post-office schemes such as Post-Office Monthly Income Scheme and Kisan Vikas Patra.

The attractive yield is also applicable for a longer duration compared to such schemes. Investors can, thus, consider investing a small proportion of their surplus for a 10-year period in this scheme.

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