Archive for the 'LT' Category

Buy LT on downdays

October 15, 2008

LT @ 895 (151008) gets 929 pancha-tattva points and buy it on down days in a few strokes for long term.

BIRDINFO Stock Rx – A prescription for stock market

Buy LT to be part of your portfolio in small lots

July 29, 2008

LT @ 2720 on 28/07/08 gets 756 panch-tattva points and there is risk in buying it at current rates. This stock should however be a part of your portfolio and hence buy it in very small quantities over time on days when it declines. This way you will have built up desired level of holding in your hand and it will be unwise to sell any part of it on jumps.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Stock Matrix – Tata Motors and L&T

May 31, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

TATAMOTORS has decided to raise Rs 7200 crs for funding the JLR acquisition. It will be diluting the present equity and will be offered as rights in three types of instruments. It is step in right direction for it will safeguard the future of Tata Motors on one hand and since the JLR business will be a separate business owned by Tata Motors , the fruits will be all for TMs and without the liability beyond the initial contribution that too from the freshly raised equity. Needless to say that the TM will have tax saving on the interest out go till the conversion of debentures in to equity.

L&T has posted good results for the last quarter ended March 08. The top line growth assures that the infrastructure spending is growing whatever the impressions be.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

LT @ 2888 as on 29/05/08

May 29, 2008

LT @ 2888 as on 29/05/08 gets 818 panch-tattva points and you may buy it for only long term and on days of declines over time.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Stock Matrix: L&T – Current progress and future prospect

November 14, 2007

By krsna Khandelwal – A veteran market analyst

Friends,

I have even earlier also dwelt on this but this time I am taking the progress made by L&T in past four years after the demerger exercise. In the year 03-04, it had posted sales of Rs 9806 crs and earned PAT of Rs 532 crs continuously improving the sales it could generate turnover of Rs 17900 crs in 06-07 and earned PAT of Rs 1403. The compounded increase in turnover works out to about 24% p.a. while the PAT growth rate works out to slightly over 36% p.a. If the we project the figures at this rate for the current year the turnover will be about Rs 22 k crs and the PAT would be about Rs 1900 crs giving an EPS of Rs. 66/- while the CMP of 4500/- should improve over the next six months to 5000/- (calculated at 24% p.a. expected return) and thus the PE at that stage would be 75. Similar projection over the next three years will see turnover rising to Rs.34 k crs and the PAT to abut Rs 4800 crs giving an EPS of RS.167/- and the then share price should be expected to be Rs.7700/- per share for a nominal gain @24% per annum discounting earning at 46 PE multiple. If this scenario unfolds, there may be some justification in the present price but the slips between the cup and lip has been ignored. Further there is no possibility of the PAT being @14.11% of sales then as against @8.63 for 07-08 (projected) which was @5.42 for 03-04, @7.35% for 04-05, @6.79% for 05-06 and @7.83 for 06-07. If the PAT as a percentage of sales does not improve, the sales will have to go up by double the rate. This again is not possible for the internal generation of fund can not ensure such sales growth and if the capital is raised from out side, the PE rate would suffer.

Our economy has already had the dream run over the last few years and may not maintain the same rate of growth as per the current indication and therefore it may safely be said that not all is right with the present price. The carrying cost itself will make the holder uninterested in holding the stock.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market