CrunchGear Week In Review: Freshly Cut Flowers Edition

Here are some stories from the past week on CrunchGear:

The Cansole: A Pong Console In A Can

DIY Collapsable Ninja Star Is Great For Collapsable Ninjas

Your Nightmares Have Arrived: Kinect-Driven Powerpoint

LusionBloom: A Magnetic Vase For Your Next Weird Cocktail Party

A Watch Created In 1969 Could Sense Heart Attacks… But Wait, There’s More

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

CrunchGear Week in Review: Trajectory Edition

Here are some stories from the past week on CrunchGear:

Japanese Robot Company Proves Even The Weirdest, Biggest Mechs Can Sell

Angry Birds Games And Videos Coming To A Roku Near You

Idea Flight Turns iPads Into Presentation Platform

We’re (Almost) Live At E3 2011 In Los Angeles

George Plimpton’s Video Falconry Is A Real Thing

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

CrunchGear Week In Review: Nook Dome Edition

Here are some highlights of the past week on CrunchGear:

Review: L.A. Noire (And Giveaway)

DIY Geodesic Dome On Kickstarter

Review: The Barnes & Noble Nook

Post-Apple Palate Cleanser: More Swiss Army Axes!

Player 1 Start: The Wii U Vs. The Playstation Vita (Fly Or Die)

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

CrunchGear Week in Review: Animal Shots Edition

Here are some stories from the past week on CrunchGear:

“Rotary Mechanical” Cell Phone Concept Isn’t Practical, But It Looks Great

Lomo’s New La Sardina Camera Is Cheap And Sardine-Can-Like

Panda Itazura Bank: Super-Cute Piggy Bank (Video)

Meet The Robostir, A Robotic Soup Stirrer

SugarSync Adds Mobile Device Management To Send Files To Devices From The Web

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

Stock Review: South Indian Bank

Stock : South Indian Bank

CMP: Rs 108.5    Book Value : Rs 113.76

Industry : Banking – Private Sector

 

Creation of the Swadeshi movement in India to help the business community from the clutches of greedy moneylenders, South Indian Bank has travelled a long distance in converging itself to a next generation banking destination.

Investment Guru is of the view that South Indian Bank is a good buy from short term as well as medium to long term perspective.

• SIB has put up a good show on a consistent basis. The advances have grown from Rs 5300 Crore  to 11800 Crore in last 4 years.
• Interest Income has grown at a CAGR of 33.5% over the period of last 4 years.
• SIB has also shown consistent growth in net profits with a CAGR of 100% over last 3 years.
• The stock offers an attractive dividend yield 2.78% in addition to growth prospects which creates a good combination for investors.
• SIB commands strong brand loyalty among its NRI customers.
• With EPS of 19.14 the stock is currently quoting at a Price to Book Value of 0.95 and a PE of 5.64 which shows that the stock has a strong potential to move up based on its recent performance as compared to its peers which are quoting between PE multiples of  8 to as high as 35.
• The Q1’09 results of the bank were encouraging with bank reporting 60 Crore Net profit and quarterly EPS of 5.32. Net NPA’s fell to 0.39% as compared to 0.49% recorded in Q1’08.
• FII’s hold 36.22% stake in the company as compared to 42.7% last year. However, there is no promoter holding which is partly a reason for comparative lower valuations assigned to the bank. On the other hand, this makes it a hostile takeover target and provides investor a possibility of windfall gains if that happens.

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

Stock Review : Uttam Galva Steel

Will Mittal factor change the fortunes for Uttam Steel ?

Stock : Uttam Galva Steel

CMP : 113

Book Value: 71.04

EPS (Trailing) : 9.49

As the performance of the stock suggest, Markets had a clue about it ! Uttam steel has already risen by 83% in just One month.  The stock has more than doubled in last 3 months. So what’s the buzz !!!  Global Steel King L.N. Mittal is making a debut in India by acquiring 35% stake in Uttam Steel.

Mittal’s company Arcelor Mittal is all set to become the Co-promoter of the company. The promoters have signed an agreement to sell 5.6% stake in Uttam steel.  Arcelor Mittal will launch an open offer on September 7 to acquire balance 29.4% stake in the company. Mittal is offering a price of Rs. 120 per share for acquiring this stake.

If the offer by Mittal remains unsubscribed, the promoters would transfer further stake to Mittal so that both have equal stake in the company.

 

How will this deal help Uttam Steel ?

Apart from giving foothold to Arcelor Mittal in Indian Steel sector, the deal would be a facelift for Uttam steel. The association with Mittal is surely going to be big boost to the brand name of Uttam steel.

Uttam steel is set to get better availability of Raw Material. The company already sources around 50% of its raw material from Arcelor Mittal.

It will also have an opportunity to transform itself from a galvanized steel producer to a integrated Steel major. It will have access to latest technology from Arcelor Mittal and access to new product segments and geographies.

 

Demerger of Power Biz

Another important development is that recently  the Bombay high court has sanctioned the scheme of arrangement between Uttam steel and power and Uttam Galva Steel for the demerger of the power division of Uttam Steel and power into the company. The Scheme has got effective from 21st August,2009.

The demerger of power division will help separate listing of this entity and help shareholders to unlock the value of their investment in the company.

 

Current Financials

For the Year ended 31st March, 2009 company posted a top line of Rs. 4372 Crore and Net profit of 100 Crore.  Though this was a growth of  over 38% over last year, the profit were lower by 24 Crore on account of high interest outgo and higher operating costs.

Uttam steel clocked a turnover of 1073 Crore for the first quarter of the current year and a Net profit of 34.57 Crore.

Investment Guru is of the view that both the developments i.e., Acquisition of 35% stake by Arcelor Mittal @ 120 per share and Demerger of power division hold good omen for the company and would not only boost its brand image but also enable it to log a impressive growth in coming years.

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

Stock Review : Power Grid Corporation

Safety Grid for your Portfolio





Power Grid Corporation was incorporated as National Power Transmission corporation limited on October 23rd 1989 with an objective of forming a Nationwide Power Grid which would pave the way for integrated operation of central and regional transmission systems.



In line with this objective, the transmission assets of power generation companies such as NTPC,NHPC,NEEPC,Neyveli Lignite, NPCL,THDC were transferred to Power Grid Corporation at various points in time. On 31st Dec.1998, the company was notified as Central transmission utility by the government of India pursuant to takeover of all the regional load despatch centres.





Business of PGCIL

• The core business of the company being transmission of electric power, it owns, operates and build a large network of transmission lines and related infrastructure.


• The company has also diversified into Telecom sector. It is only company having Optic Fiber network using Optical ground wire on power transmission lines. It has an all India Broad Band Telecom Network of about 20,733 Kms connecting more than 129 cities across the country.


• The company has license under Infrastructure provider category, NLD license for end to end Bandwith and ISP Category ‘A” license to provide internet services.


• Power grid corporation also provides engineering services in power transmission business internationally


• The company provides consulting services to clients in power sector in terms of building and maintenance of transmission lines.

Performance Analysis

• PGCIL’s earnings are directly related to its capex plans for laying the transmission lines. It commissioned projects worth INR 6,800 crore in first 9 months of FY 11 out of the target of 9000 crore. The company targets capitalisation of 10,000 crore in FY 12.


• The company has announced its plan of commissioning 1.2Lac Crore of projects in the 12th Plan which is twice the capex target of 11th Plan.


• For the 9 month of FY 11 the company posted Revenue of 6178 Crore and Net profit of 1946 Crore. For FY10 the company posted revenue of 7127 Crore and Net profit of 2041 Crore.

Investment Rationale

• The company provide an excellent way to invest in the Power story of India.


• Aggressive Capex plans would translate into better future earnings for the company. The past trends indicates that the company has met its targets set earlier.The FY12 guidance on capitalization provides visiibility into continued momentum of strong earnings growth.


• PGCIL should prove to be an ideal stock to provide the safety grid to an investor portfolio

Additional Readings

Power Grid Website



Disclosure : I have a long position in this stock.

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

Review of the Green Smoke Electronic Cigarette

Thousands of smokers each year choose to quit smoking due to the potential health risks. There is no denying the negative effects smoking has on one's health, however, many smokers find it difficult to quit, not because of the nicotine addiction, but because of the satisfaction they receive from the action of smoking. To satisfy the desire to bring a cigarette to the lipsRead more »

Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!