Gujarat Alkalies and Chemicals - 530001

Name of Company	Gujarat Alkalies and Chemicals
BSE Code	530001
NSE Code	GUJALKALI
ICICI Code
Established
My Take	So-So
Headquarters	Vadodara
Promoters	Gujarat Government
Story	917 Cr market cap company at current prices.
Sector	Chemicals
Sub-sector	Manufactures and markets
Website	http://www.gujaratalkalies.com/
Positives	Regular dividend paying company (can expect dividends in September, expected yield is 1.7% or more). Not very costly as 171 Cr is FY10 net profit, while market cap is 917, i.e. at 5.3 times. Around 13% or more NPMs have been maintained in the last 5 year timeframe. 1300 Cr reserves for a 1300 Cr revenue is attractive, the reserves is more than the market cap itself. Around 25-30% of this share is held by DII's.
Negatives	37% promoter holding. Gujarat Industrial Investment corporation has pledged its full 9.69% stake. This company is not growing – 940 Cr to 1300 Cr revenues from FY06 to FY10. The company has a 330 Cr debt in FY09.
Peers
News
Price @ blogged	125 (5-Jul-10)

Sun TV Network Ltd - 532733

Name of Company	Sun TV Network Ltd
BSE Code	532733
NSE Code
ICICI Code
Established
My Take	Like
Headquarters
Promoters
Story	Has regional TV channels in south India.
Sector
Sub-sector
Website	http://www.sunnetwork.in/
Positives	77% promoter holding. 17K Cr market cap for a 567 Cr profit – this is such a great cost – but higher valuations are fine as this is a very profitable company. Dividend declared for FY10 is at Rs. 6 = 1.3% dividend yield, not the regular yield but this company is a regular dividend payer – can expect 0.5% yield. 1800 Cr reserves for a 1400 Cr revenue in FY10. Average NPM's are at 40%. Lowest was at 39.71%. Even better news is its zero debt operation.
Negatives	Very near 52 week high – can buy at lower levels.
Peers
News
Price @ blogged	430 (5-Jul-10)

Sabero Organics Gujarat Limited - 524446

Name of Company	Sabero Organics Gujarat Limited
BSE Code	524446
NSE Code
ICICI Code
Established	1991
My Take	So-So
Headquarters
Promoters	Hero J Chuganee and family
Story	Sales across various geographies de-risks the company sales. Presence in Brazil, the second largest agrochemical market.
Sector	Agrochemicals
Sub-sector	Fungicides, herbicides, insecticides, specialty chemicals
Website	http://www.sabero.com/
Positives	42% promoter shareholding. No pledged or encumbered shares.
Negatives	No Dividends. Rupee appreciation risks. Environmental restrictions could affect the company's sales. Mancozeb – this fungicide contributes 35-40% of its top-line – means excessive risk, even so because of its toxicity.
Peers	Camson Bio, Aries Agro
News
Price @ blogged	84 (4-Jul-10)

Oriental Bank of Commerce, Axis Bank and Yes Bank

Today we are comparing 3 banks OBC, Axis and Yes.

 

	OBC	Axis	Yes
NPM's	Around 10%. 5% is minimum in last 5 years.	Around 16%. Lowest is 14% in last 5 years.	Around 18%. Lowest is 15% in last 5 years.
Ownership	51% government owned	Promoters are UTI/LIC/GIC and other government owned financial companies. They own 38%.	Rana Kapoor (promoter) owns a small part. Some of Madhu Kapur's share have been encumbered - though it is a very less portion. Rabo Bank (Swiss) has 15%.
Growth	Revenues grew from FY06 to FY10 from 4100 Cr to 10K Cr = 25% CAGR.	Revenues grew from FY06 to FY10 from 2900 to 11600 Cr = 50% CAGR	Revenues grew from FY06 to FY10 from 190 Cr to 2300 Cr = 87% CAGR. As it is a new bank, it can maintain its CAGR for a few more years.
Reserves	7K Cr for a 10K Cr FY10 revenue	15.6K Cr for a 11.6K Cr FY10 revenue.	2700 Cr for a 2300 Cr FY10 revenue
Price @ blogged (4-Jul-10)	320	1237	269
Market cap	8000 Cr for a 1100 Cr Net profit in FY10 (less than 7 times)	50,000 Cr for a 2500 Cr net profit in FY10 (around 20 times)	9000 Cr for a 477 Cr net profit in FY10 (around 18 times)

 

Oriental Bank of Commerce - 500315

Name of Company	Oriental Bank of Commerce
BSE Code	500315
NSE Code	ORIENTBANK
ICICI Code
Established
My Take	Like
Headquarters
Promoters
Story	11th largest branch network and 10th largest bank by assets in India. Has over 1300 branches all over India. Government ownership is at 51% (cannot reduce further), FII holding is at 20% (cannot increase).
Sector	Banking
Sub-sector	Mid-sized PSU bank
Website	http://www.obcindia.co.in/
Positives	2010 Dividend yield was at 3% yield (at current price of 320) – dividend has been increasing from earlier years. 8000 Cr market cap for a 1100 Cr. 7000 Cr reserves for a 10K Cr revenues in FY10. Mostly maintains above 10% NPM's. Revenues growth from FY06 to FY10 has more than doubled from 4100 Cr to 10K Cr.
Negatives
Peers
News
Price @ blogged	320 (7-Jul-10)

Sectors which trading near their lows

1. Cement (India Cements, Madras cements, etc)


2. NBFC (India Bulls, India infoline, etc)

3. Sugars (BannariAmman, Bajaj Hindusthan, etc)

4. Shipping (Mercator Lines, Varun Shipping)