Jitendra Kumar Gupta's blog

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Rakesh Jhunjhunwala "For trading i look at technicals, which are essentially price movements. when price movements confirm my thought process, i buy aggressively. The sheer feeling that the markets have bottomed out or that the fundamentals and valuations are favourable is not enough" "The ingredients of successful investing lie in locating gaps between current expectations and future likely performance which provide me favourable odds as an investor. Perhaps the single biggest error in the investment business is failure to distinguish between knowledge of a company's fundamentals and the expectations implied by the stock price"    "The issue is not which stock will be the winner, but rather, which companies are available at valuations that promise superior returns"  "Markets disproportionately reward companies that are leaders, innovators and performers. We can predict future prices by predicting future EPS and PER, but in order to predi...

The large opportunity in the infrastructure space has helped many companies grow faster and bigger. This trend, many experts believe, will continue in the near future, too, considering that the government has outlined huge infrastructure spends in the country. Incorporated in 1994, Ramky Infrastructure has seen its revenue growing five-fold in the last four years to Rs 2,251 crore in 2009-10. The company has come out with an initial public offer (IPO) of Rs 530 crore, which includes Rs 180 crore on account of an offer for sale. Of the Rs 350 crore Ramky will receive, Rs 80.4 crore will be spent on equipment, Rs 175 crore towards working capital and Rs 25 crore on repayment of debt. Visible growth The growth from current levels may not be as fast as the historical annual growth of over 50 per cent seen in the last four years. However, considering its current order book and opportunities in the infrastructure sector, the company’s revenue and profits should grow about 40 per cent annuall...

Jitendra Kumar Gupta / Mumbai September 9, 2010, 1:35 IST http://www.business-standard.com/india/news/road-sector-infast-lane/407454/ Activity in the road sector is picking up after a slow start in 2008-09, when the National Highways Authority of India (NHAI) awarded only 643 km of new projects. While 2009-10 saw projects for 3,361 km of roads being awarded, the government is now looking at disbursing up to 18,000 km of new road projects in the current as well as the next financial year. In fact, in the April-July 2010 period, the government has awarded projects for 2,873 km, which leaves a lot of room for awarding new projects and indicates that the pace should pick up going forward. The target for the current year is over 9,000 km. “The government has an internal target of about 12,000 km for this year, which may look difficult, but we will see more projects getting announced in the next two-three months,” says Abhinav Bhandari, who tracks infrastructure at Elara Securties. SMOOTH R...

http://www.rrfinance.com/PDF_Files/Research_pdf/reports/july10/Ipo.pdf

http://www.business-standard.com/india/news/time-to-be-cautious/408759/ Jitendra Kumar Gupta / Mumbai September 22, 2010, The phrase most experts use to describe the current rally in the markets is: “Probably, this time will be different.” On Tuesday, the Sensex closed over the physiologically important 20,000-mark, which is just about 1,200 points away from its all-time high of January 2008. While there are fundamental reasons that justify the rally, there are concerns as well, especially about the pace of rally and its sustainability in the near term. Positively, there is a clear difference in the rally of 2008 and the current one, with the latter on solid ground. “In 2008, dreams were being bought. It was frenzied — people were jumping in as if there was no tomorrow. At this point, there are no bubbles. But the pace of the rise has been scorching, so it might correct a bit,” says Gul Teckchandani, an investment expert. “In 2008, everything – commodity prices, global econ...

There is a huge untapped opportunity in the solar power space and governments across the globe are focusing on attempts to harness this potential as a part of their diversification towards greener energy. This can be gauged from the fact that global solar power capacity has grown 47 per cent annually during 2004-08 to reach 13,424 Mw. In India, the industry is yet to take off as policies are still being framed. The country has a solar-based power generation capacity of over 200 Mw, which the government aims to expand to almost 20,000 Mw by the end of year 2022 under the national solar mission plan. Seeing the light Several companies have now begun to see potential in the field. Indosolar is one such company. It forayed into the solar power business very recently in 2009. The company makes poly-crystalline solar photo-voltaic (‘SPV’) cells, which are supplied to system integrators. These system integrators, in turn, market them in the domestic as well as such international markets as th...