Jitendra Kumar Gupta's blog

Patel Engineering’s growth prospects are improving on the back of the company bagging new orders, which provides strong visibility. Very recently, the company’s subsidiary was awarded the largest waterfront development project in Mauritius. Notably, the company’s other segments like power and real estate business have also witnessed significant traction leading to improved outlook. In light of these developments and considering the valuations pegged by analysts, there are gains to be made from this stock. Opportunities galore Patel Engineering, which is a Mumbai-based company specialising in the construction of irrigation and hydro power projects (over 85 per cent of revenue), has been a key beneficiary of the opportunities in these segments. In fact, the company commands a market share of about 22 per cent in India and is among the leading players in the segment. In a hydro power project (which costs about Rs 6-7 crore per mw), the construction cost accounts for almost 65-70 per cen...

http://www.business-standard.com/india/news/%5Ccoking-coal-prices-to-remain-firm%5C/390736/ Gujarat NRE Coke, which is the leading player in the Indian met coke industry, has been the key beneficiary of growing demand from the domestic steel industry. As the global steel industry revives, the company is increasingly being able to garner higher realisations. The company is further looking to increase its domestic production as well as significantly ramp up output at its Australian mines. Jitendra Kumar Gupta spoke with the Arun Kumar Jagatramka , the company’s managing director, about the opportunities and his plans. Excerpts: The government is focusing on clean energy and thus, imposed Rs 50 per tonne cess on coal. What impact will it have on your company? The Rs 50 per tonne clean energy cess on coal applies to coal produced in India or imported into India. We import the entire requirement of coking coal primarily from our own mines in Australia. It is very marginal and hence, the ne...

Here is information on Pipavav Shipyard dated Sep, 14 2009 Pipavav Shipyard, which is into shipbuilding and other related activities, plans to raise funds to the tune of Rs 509 crore, based on the upper price band of Rs 60 per share. The company has a diversified business model and a large scale of operations, which is amongst the best in the industry. However, this is also a reason that the issue is priced at a premium, believe analysts. Scaling up Since its shipbuilding facilities are under construction, it reported meagre revenues of Rs 6.17 crore and net profit of Rs 4.72 crore in 2008-09. But, its current order book of Rs 4,700 crore, with an average delivery period of about two years, provides an indication of things to come. To execute work of higher magnitude, the company is constructing a shipyard at Gujarat. The facility has become partly operational since April 2009 and the company is currently constructing four vessels. This facility is expected to be fully operational by...

Ahluwalia Contracts, a mid size construction company, is well placed to benefit from the planned investments in the infrastructure sector, especially in urban infrastructure. Nevertheless, the company’s current order book of over Rs 5,000 crore indicates good revenue visibility for the next 2-3 years. The company’s foray into other promising areas of infrastructure construction such as power, road and water would now start reflecting in its order book and revenues leading to higher and sustainable growth in the coming years. Surprises could also come in the form of acquisitions in the near term aided by its cash balances which will strengthen its presence in other infrastructure verticals. Core competence Ahluwalia Contracts’ core strength lies in its ability to execute building construction projects on time which are not only reasonably large in size but also demand high quality of work. Some of the prestigious projects the company has executed independently include the ...

It is often said that if you want to make big money, trading in currencies or foreign exchange (forex) is the perfect place to be in. This is possible considering a very high leverage. For example, if you have just Rs 100 in your pocket, a position of about Rs 2,000 can be taken in the forex market because the margin money requirement is only 5 per cent. No wonder, one can take large positions in the market with a rather small amount. At present, domestic exchanges such as the National Stock Exchange and the Multi-Commodity Exchange offer derivatives products such as future and options in four major currencies – dollar, yen, pound and euro. And the Indian retail investor is ready to play the game. More than hedging, many retail investors are opting to trade. Even brokerages are pushing this product to clients. “About 70 per cent of the trades are done by bankers and companies. The retail segment accounts for about 25-30 per cent of the total turnover,” said Navin Mathur, associate ...

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“Be fearful when others are greedy and greedy when others are fearful” – Warren Buffett Even though Indian markets have recovered from their March 2009 lows, there are still many companies and sectors where investor interest hasn’t caught up in the same breadth. As a result, the share prices of some companies are still at depressed levels as compared to their peaks in 2008. There could be genuine concerns which in turn justify the valuations of these companies. Reasons could be weak demand, subdued margins, excess debt, heightened competition, lower capacity utilisations and so on. To put in simple words, in some of these cases due to absence of clarity over the future prospects and the financial position of the companies, the share prices continue to trade at lower levels. The positive side is that, ever since the global economic downturn and its impact on the Indian industries and companies, lot of things have changed for the better, which is also reflecting in the key ...