The Hindu Business Line : Sunday, November 27, 2005

Bharat Electronics: Buy
The stock trades at 13 times its expected FY06 per share earnings assuming 20 per cent growth in earnings for the year. Valuation levels appear attractive considering the sizable orders on hand, fairly stable and consistent business growth record ... More

Infotech Enterprises: Hold
SHAREHOLDERS can retain exposure in the Infotech Enterprises stock. At the current price, the stock trades at a price earnings multiple of 16 times its annualised per share earnings of Rs 27.5. The strong second ... More

GlaxoSmithKline Consumer Healthcare: Hold
AFTER a prolonged lull in brand-building activity, GlaxoSmithKline Consumer unveiled a spate of brand extensions in recent months that have the potential to boost growth rates. However, it may not be advisable to ... More

Fag Bearings: Buy
LONG-term investors may consider equity exposure in Fag Bearings at prevailing levels. The technical backing of a global major, the growth in exports and the strong fundamentals make Fag Bearings a preferred portfolio candidate from the bearings ... More

Finolex Industries: Buy
INVESTORS may consider taking exposures in the stock of Finolex Industries. At Rs 80 the stock quotes at 19 times its trailing 12-month earnings. The valuations would be lower if one considers the market value of investments in its group company ... More

INSIGHT

Five top-notch funds — Playing the winning game
FRANKLIN Prima, HDFC Equity, HDFC TaxSaver, SBI Magnum Contra and Reliance Growth have been star performers in the bull market since April 2003; they also have an impressive five-year track record. These funds have ... More

Deep-value investing takes root
Given the prevailing valuation levels, identifying a stock with potential demands considerable resourcefulness, though it is not impossible for the diligent investor. There are certain strategies that can be adopted that will considerably add value w hen pursued consistently over a long period. More

A Clause that must be enforced
Will the government turn to SEBI yet again for another extension of the deadline, especially because its own companies are lagging behind in compliance? It would be a shame if that were to happen and more so because these companies had more than a ye ar to fall in line. More

COURTS/LEGAL ISSUES

An association of a family tie
IS A married sister entitled to compensation on the death of her brother in a motor accident? This was the question before the Calcutta High Court in Maili Biswakarma vs Oriental Insurance Co. Ltd. Maili's ... More

MUTUAL FUNDS

When to switch to a portfolio management scheme
You can assess certain pros and cons to see if a portfolio management scheme suits you better than a mutual fund. More

PORTFOLIO MOVES
PruICICI Discovery
AFTER a winning streak spanning five consecutive months beginning May 2005, the market witnessed some correction in October and has since moved into volatile territory. It is interesting to see the portfolio changes made by fund-houses in such a ... More

Taurus Discovery Stock: Book Profits
UNITHOLDERS in Taurus Discovery Stock can use the recent upswing in share prices to book profits. Its performance during bearish or volatile phases in the market has not been encouraging. The fund suffered a significant ... More

Principal Personal Taxsaver: Book profits
INVESTORS can use the recent upsurge in stock prices to book profits on their holdings in the Principal Personal Tax Saver, if they have completed their three-year lock-in period with the fund. The fund's performance ... More

Franklin India Opportunities: Hold
INVESTORS in Franklin India Opportunities Fund may retain their exposures, as the fund's performance appears to be taking a distinct turn for the better, especially over the past six months. We also believe that its ... More

UTI MF declares tax-free 50% dividend

UTI Mutual has declared a tax-free dividend of 50 per cent (Rs 5 per unit for every unit of Rs 10) for UTI MNC Fund. Investors as of December 12 will be eligible to receive the dividend. In FY 05, the fund had declared a dividend of 30 per ... More

TECHNICAL ANALYSIS

Positive outlook for the Nifty
The trend turned bullish after the index passed through the expected short-term correction in the first couple of trading sessions. The index has also moved to the target zone of 2670-2680 that was mentioned in the recent weeks. The ... More

Marginal upside in Reliance
Reliance Ind (Rs 846): The stock moved to the target zone of Rs 845-850 that has been mentioned in the recent weeks. As anticipated, the journey towards this target commenced after the stock tested the short-term support zone at Rs ... More

Focus of the week
Su-Raj Diamonds (Rs 60): The stock touched a high of Rs 75.6 in September and has since been in a corrective phase. This correction appears to have been completed at the recent low of Rs 47 recorded last week. The stock appears to ... More

Query corner
Three weeks ago, you had written in your column that according to Elliott Wave theory, Wave 5 may unfold in the Sensex. Since the last two weeks you are writing that a first wave of a new bull run has begun. Kindly let me know whether we are ... More

TYRES

Tyres that run even when flat
CUTTING-EDGE automotive technology is constantly redefining the boundaries of a car's abilities. New developments are adding capabilities to components and products hitherto thought to have reached their evolutionary ... More

Michelin at the forefront
MANY large tyre manufacturers have been researching and developing their own proprietary `run flat tyre' technologies. Michelin, the French tyre major, has pioneered two technologies — the PAX System and the ... More

CARS

WHEELS 'N' DEALS
GM's affordable luxury drive
GM IS seeking to pass on benefits to its customers on cost savings derived by indigenisation of spare parts. GM has reduced the prices of critical spares of the Chevrolet Optra and the Tavera by 26-52 per cent to keep ... More

Satisfaction index
AFTER the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) ... More

WHEELS 'N' DEALS
Toyota's one-stop insurance shop
A pleasant surprise awaits customers at Toyota dealerships. To provide hassle-free accident repairs and recovery of insurance claims, the Japanese car-maker has joined hands with Cholamandalam MS General Insurance. Through the tie-up Toyota's 50 ... More

WHEELS 'N' DEALS
Offers from the house of Ford
Ford, along with its financial arm Ford Credit, has come out with offers on the Fusion, the Ikon Flair and the Endeavour at select dealerships. It offers an exchange bonus of up to Rs 20,000 and a zero-per cent loan up to Rs 5 lakh for a maximum ... More

STOCK MARKETS

Gambler's fallacy
MY FRIEND runs an informal investors' club. Some members of this club have taken large short positions in the market. The reason? The market has moved up 1,200 points in just one month. They believe that it is only time before stock prices ... More

DERIVATIVES MARKETS

Options guide

INTERVIEW

`Long-term sustained revenue growth is the name of the game' — Mr Gordon Coburn, CFO, Cognizant Technology Solutions
The big difference between us and our key competitors is in the SG&A line. We spend a lot more SG&A dollars as a percentage of revenues. Therefore, we are able to offer high domain, high analytic capabilities at offshore prices. More

INCOME TAX

Are landlines in BPOs a fringe benefit?
WILL the expenses incurred on landlines used by call centres be subject to fringe benefit tax (FBT)? S. Krishnamurthy Reply The Board has through Circular No.8 of 2005 dated August 29, 2005 clarified that ... More

INVESTMENT QUOTIENT

Investment quiz
1. NCR Corporation is the leading player in the field of automated teller machines (ATMs). What does NCR stand for? 2. If you touch down at Kingsford Smith airport, in which of the world's great cities would you have landed? 3. Though ... More

IPOS

Kernix Microsystems: Avoid
WE recommend investors to avoid the initial public offering of Kernix Microsystems. The offer is to be priced between Rs 225 and Rs 250. At this price band, the offer is available at 18-19 times the annualised FY-06 per ... More

PUBLIC OFFER

Compulink: Avoid
INVESTORS can refrain from subscribing to the public offer of Compulink Systems. At Rs 60, the price-earnings multiple works out to 11 times its FY-05 earnings on the existing equity base and 17 times on the fully ... More

Repro India: Avoid
REPRO India is making a public offer to be priced in the range of Rs 145-Rs 165. The offer is priced at 17 times its annualised FY-06 earnings per share (based on half year ended September 05 earnings). We believe the ... More