LIC Housing Finance - A consistent performer over 20 years

LIC Housing Finance Ltd. announced it's Q4 results on 18-Apr-2015. It's Q4 EPS is 7.5 and TTM EPS is around 27. It's trading at a P/E multiple of 16 and looking at these facts, its a good buy for long term investors who are NOT looking to double their investment in a year :-)

BUY LIC Housing Finance Ltd. with a target price of 520 in next 12 to 24 months (from today - 20-Apr-2015). It's CMP is 440 at the time of this blog being written. Hence, a possible upside of 20%.

Some facts about LIC Housing Finance Ltd.

• LIC Housing Finance Ltd. provides home loans to individuals for purchasing and constructing their houses and flats. Company also provides long term finance to Businesses willing to construct houses, office space, nursing facility and other such properties. 

• LIC of india is the primary promoter of the company. LICHF was made public in the year 1994 and since then, they have disbursed 139000 Crore of housing loans to Indian customers.

• They have one of the largest setup of representatives all over India. They employ more than 11000 representatives who spread their business in urban as well as rural India.

Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.

VRL Logistics IPO Updates

VRL Logistics launched it's IPO for 1.63 Crore shares on 15-Apr-2015. At the end of 17-Apr-2015 (Friday), the IPO was subscribed 74 times. Yes!! You read it right. It has been subscribed 74 times.

Issue Price - 195 - 205

Issue Open - 15-April-2015

Issue Close - 17-April-2015

Subscription - 74 times (demand for 120 Crore shares infront of offer of 1.63 Crore shares)

Allotment Date - 25-Apr-2015

Listing Date - Yet to be announced

VRL Logistics IPO Allocation happened on 25-Apr-2015 and the listing date is yet to be declared.

See this space for announcement of ALLOTMENT Date and LISTING Date.

Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.

Indusind Bank - Q4 2014 Results

Indusind bank released the Q4 2015 results today. The results are inline with most of the estimates given by brokerage houses. Here are some of the highlights of the results:

Profit After Tax = 495 Cr.

TTM EPS = 34

P/E ratio at CMP of 932 = 27

Net NPA = 0.31% (improvement against last quarter)

Profit has increased, NPA has decreased. A good candidate for your portfolio IF your investment horizon is around 24 months from now. Target 1050+.

Happy Investing...

Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.

Buy or Sell - Axis Bank

As of the date 16-Apr-2015, at the CMP of 545, AXIS BANK is trading at P/E of 18.5. If you look at the historical P/E of private banks, this looks on the higher side, and that is the reason Axis Bank came down to 545 from the highs of 655.

Looking at the chances of economy revival and RBI's rate cut possibilities, the first community to rip the benefits will be private banks. These banks have a huge portfolio of loans given to corporates. This fact gives them many opportunities like growth in loans, increase in margins and most important - reduced NPAs.

If an investor is looking at 24 months period, companies like Axis Bank, Yes Bank, Indusind Bank are best bets for 15% per year kind of gains (most likely better).

In next two years or so, I would expect Axis Bank to trade at around 700 per share [if no other international problems come up :-))) ]

WITH HORIZON OF 24 MONTHS, BUY AXIS BANK - TARGET 700.

Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.

Gitanjali Gems - Buy Or Sell?

Recently, Gitanjali Gems had a fantastic run up from around 290 (in Jul 2012) to 600 (in Jan 2013). Looking at this, the stock doubled in just 6 months. The retail investors must be now confused – whether to buy at this level or not?

The answer can’t be plain Yes or No. Before we consider Yes or No, let’s consider some facts about this company and stock.

We need to stop comparing this company with Shree Ganesh Jewellery and PC Jeweller (even PC had fair run up after debut on NSE and BSE in last week).

This company now needs to be compared with Titan Industries which occupies esteem position in this segment of industry. I think so because Gitanjali has given consistent results in last 8 quarters irrespective of economic conditions in the world. Consistent EPS growth by organic and in-organic ways is in parallel to what Titan has been delivering. On the top of that, Gitanjali has brands which cater to various segments of consumers and it gives Gitanjali an upper hand.

Titan with CMP at 280, has a EPS of 8 (TTM) and hence P/E ration of 35. On the other hand, Gitanjali has consolidated EPS of 60 (TTM) and at CMP of 585, the P/E ratio is 9.75.

Hence, what we have seen till date is called “Re rating” of stock. The stock has been re-rated in past 2 months and has not reached it’s correct price. Will it go up to 700? The answer is Of Course it will. But will this happen in next 2 months? Nobody can answer.

My advice to retail investors is that invest in Gitanjali Gems with view of 1-2 years from now. Good time for market is around the corner, so you never know!! May be it will reach 700 in next 3 months if we are lucky J

Happy Investing!!


Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.

Bharti Infratech - IPO - Flop Show of 2012

Bharti Infratel listed it's shares on BSE and NSE on 28-Dec-2012 and on the same day, the stock closed below 192 - 28% below the issue price.

What is the future of Bharti Infratel?

My belief is, Bharti Infratel is going to touch a low of around 160 - 170 in first quarter of 2013 calendar year. People will wait for 2-3 earning announcements before taking a call on the stock. But I would recommend buying Bharti Infratel if it goes down to 170 or below. The reason is, Bharti Infratel is already established player in field of Telecommunication Tower Business and it has very good user base. It has 34000+ towers and one of subsidiary - Indus Towers is also going to be listed on stock exchange in coming years. Looking at the figures published during IPO, Bharti is going to post an EPS of 20 during fiscal year 13-14. Hence, taking 6-12 months view, if one buys the stock at 170, an appreciation of 30 Rs per share is not difficult to achieve. 

So, go for Bharti Infratel at 170 level and start accumulating the stock. The IPO was a flow show of 2012, but the stock may not be a flow show for 2013.

Happy Investing!



Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.