Stock Recommendation --By Smart Profit

Food inflation has gone down and it’s negative at the moment. As per
Govt. notification Qualified Foreign Institution (QFI) are allowed to
invest in India. It is taking quick decision and at any moment it may
cut down the interest rate and also solve the liquidity issue. US and
Europe problem has been over discounted in Indian market and American
job data has also shown an improvement. India’s growth story is good
along with the consumption. Hence, in this panic BUY 20% - 30% Y-o-Y
growing & Dividend paying fundamentally strong companies. Following is
the BEST PICK from Smart Profit Financial Consultancy:-

BUY NATIONAL HYDRO POWER CORPORATION (533098) - NHPC
CMP:21
Target: 40 in 6 months
National Hydro Power Corporation, an entity of Government of India, is
country’s largest hydro power producer.
NHPC is currently having an installed capacity of more than 5,300 MW
with 14 operational power stations and has a cash surplus of over Rs.
4,000 crore.
National Hydroelectric Power Corporation (NHPC) has reported a net
profit of Rs 966 crore in the second quarter of FY12, a growth of 40%
as compared to Rs 690 crore in the corresponding quarter of last
fiscal.
The state-run major is engaged in the construction of 10 projects at
various locations in the country, going to have an additional capacity
of 4,502 MW. It is planning to develop two hydro projects in Myanmar.
It plans to increase the capacity to over 10,000 MW by end of 2012.
The coal price has raised, which will forced to increase in power
price by 20%. This will further boost the profit margin of NHPC to a
large extent.
Spanning on Government’s increasing emphasis on hydro power and NHPC’s
strong hold, we recommend a BUY on NHPC at CMP of Rs 21, with a target
of Rs.40 in 6 months.


BUY TATA COMMUNICATION (500483)
CMP: 221
Target: 250 in 4 months
Tata Communications Limited along with its global subsidiaries (Tata
Communications) is a leading global provider of the new world of
communications. The Tata Global Network encompasses one of the most
advanced and largest submarine cable networks, a Tier-1 IP network,
connectivity to more than 200 countries across 400 PoPs and more than
10 lac square feet data center space. Tata Communications serves its
customers from its offices in 80 cities in 40 countries worldwide.
The number one global international wholesale voice operator and
number one provider of International Long Distance, Enterprise Data
and Internet Services in India (famously known as TATA PHOTON+), the
company was named "Best Wholesale Carrier" at the World Communications
Awards and was named the "Best Pan-Asian Wholesale Provider"
 Tata Communications and Essar Telecom Kenya (yuMobile), a unit of
Essar Group, announced the signing of a mutually beneficial strategic
sourcing agreement, Tata Communications will benefit from the
increasing demand for high quality voice services in Africa generated
by a rapid rise in the number of mobile subscribers on the continent
Tata Communications Ltd. is a part of the $6740 Crore Tata Companies;
it is listed on the Bombay Stock Exchange and the National Stock
Exchange of India and its ADRs are listed on the New York Stock
Exchange (NYSE: TCL).
Tata communication has made conscious efforts to diversify from its
core wholesale voice business and tap the higher margin managed
services and cloud business.
We believe the stock is a good opportunity point as long term drivers
are intact as addressable market opportunity leaves tremendous scope
for expansion stock may go up by 40%.
We recommend ‘BUY’ on the stock at CMP Rs.221 with a target price of
Rs. 250 in 4 months


BUY RURAL ELECTRIFICATION CORPORATION LIMITED (REC) (532955)
CMP: 169
Target: 300

REC, under Ministry of Power, was incorporated on July 25, 1969 under
the Companies Act 1956. REC a listed Public Sector Enterprise
Government of India with a net worth of Rs. 12,784 Crore as on
31.03.11.

REC provides loan assistance to SEBs/State Power Utilities for
investments in rural electrification schemes through its Corporate
Office located at New Delhi and 17 field units (Project Offices),
which are located in most of the States.

The company has been rated among the top 500 Global Financial Services
brands for 2010 by UK-based plc Brand Finance. REC is also among the
Forbes Global 2000 companies for 2010.

With a strong sanctions pipeline (INR1.6 trillion), loan growth is
likely to be healthy at 22% CAGR over FY11-13. Loan book grew 24% Y-o-
Y and 5% Q-o-Q to INR858 billion.

We have a ‘BUY’ rating on the stock at CMP of Rs.169 due to REC’s
robust long-term business outlook and valuations considering
compounded earnings growth of 25% and average return on equity (RoE)
of 22% over 2011-12.


BUY FIRSTSOURCE SOLUTION (532809)
CMP: 9
Target: 25


Formerly known as ICICI OneSource, incorporated in 2001, Firstsource
Solutions Limited provides a range of business process outsourcing
services.
It offers business process management services to the banking,
financial services and insurance (BFSI); telecommunications and media;
and healthcare industries. Firstsource has a “rightshore” delivery
model with operations in India, U.S., UK and Philippines.
 INVESTMENT VIEW:-
Firstsource Recognized with Top Honors at the International Quality
and Productivity Council (IQPC) Conference.
Leadership position in the healthcare industry.
About 40% of the revenue comes from its healthcare vertical catering
mainly to US markets.
The Company works with more than 1000 clients. 7 of the top 10 clients
have grown during the quarter.
The current Employee Strength is 29,664 and further increasing its
strength by 3000.
Depreciation in Rupee from 44 to 52 will increase the profitability of
the company.
The company is expected to sell out one of its subsidiary company
worth Rs 1600cr.
The company has repurchased zero coupon convertible bonds worth `99.7
crore ($19.1 million). The buyback will bring down its outstanding
foreign currency convertible bonds from the current `993 crore ($191
million) to `894 crore ($172 million).Quarter by Quarter it will
repurchase the remaining FCCB bonds and its liability will be zero by
2012.
 With P/E of 22 and considering the strong performance both on
revenues and profitability it will be a cash rich company within a
year. Hence, we recommend a strong BUY on FSL at CMP Rs.9 with a
target price of Rs.25 within 9 months.

BUY AREVA T&D (522275)
CMP: 180
Target: 300

India Ltd, the Indian subsidiary of AREVA France SA, engages in the
design and manufacture of equipment, systems, and services for
transmission and distribution of electricity in India.

Eight new factories were built at three locations: Vadodora in
Gujarat, Hosur and Padappai in Tamilnadu.
The comply of Areva T&D India’s business at global level by the
Consortium of Alstom-Schneider continues to fortify on the stock.

Although the signs of recovery are emerging Areva T&D India wins
contract for 765 kV Extra High Voltage Substation from Rajasthan Raja
Vidyut Prasaran Nigam Ltd (RRVPNL) worth close to 4000 MINR, the stock
is currently trading at lower valuations that contradict the
fundamental.

On 4th Oct, 2011, Government has enforce 14% Import duty on Power
Generation & Distribution  Equipment which will directly benefit to
Areva T&D

Building on the strong operating performance with relatively low
interest and depreciation cost as proportion to sales and lower tax
incidence, we expect company to register CAGR of 13.5% respectively.
We expect the stock perform dominant in earning at CMP Rs. 180 with a
target price of Rs. 300.

BUY HOTEL LEELA (500193)
 CMP: 33
 Target: 60

India’s fifth-biggest luxury hotel chain founded in 1957. Leela Group
is engaged in the business of ready-made garments and luxury hotels
and resorts.
Hotel Leela venture, plans to raise funds through divest as much as
14.95% stake through a fresh issue of shares to unnamed investor(s)
and besides monetize its land bank by selling non-core assets
including a major portion of a commercial office space next to its
hotel in Chennai. It expects to generate about Rs 950 crore from such
sale of land and joint development, which would be used for reducing
its debt. The other decision to sell a stake will bring around Rs 270
crore ($60 million) additionally as cash into the firm, according to
estimates based on current market price. The strategic or financial
investor will pick just a tad less than 15% stake that would trigger
an open offer.
India is one of the fastest growing tourist markets in the world
inherently rooted concept of hospitality in form of "Ätithi Devo
bhava" . At present, this Company operates six hotels at the locations
viz. Mumbai, Bangalore, Goa, Kovalam, Udaipur and Gurgaon comprising
1523 guest rooms and 90 serviced apartments.
Hotel Leela venture has signed a pact with Travancore Enterprises to
transfer its hotel property in Kerala to a special purpose vehicle
(SPV), which would be overtaken by the latter for Rs 500 crore.
Hotel Leela adding 260 rooms in Delhi and 332 rooms in Chennai
properties.
With an ever increasing demand in tourism business synergizing with
growth plans of Leela, we recommend a BUY at current level of Rs.33
with target of Rs.60.


BUY TATA TELESERVICES (532371)
CMP: 14
Target: 30
Tata Teleservices Limited spearheads the Tata Group's presence in the
telecom sector. The Tata Group includes over 90 companies, over
395,000 employees worldwide and more than 3.5 million shareholders.
It launched mobile operations in January 2005 under the brand name
Tata Indicom and today enjoys a pan-India presence through existing
operations in all of India's 22 telecom Circles.
Tata Teleservices Limited also has a significant presence in the GSM
space, through its joint venture with NTT DOCOMO of Japan, and offers
differentiated products and services under the Tata DOCOMO brand name.
Today, Tata Teleservices Ltd, along with Tata Teleservices
(Maharashtra) Ltd, serves over 85 million customers in more than
450,000 towns and villages across the country.
The Company maintained a strong focus on wireless broadband services,
and its VAS and data revenues accounted for 33.3 % of total wireless
revenues in Q2 of FY 11-12.
Going forward we expect the company to maintain quarterly addition of
0.5 million subscriber in FY12, which signifies an addition of 20
million subscribers in a year.
We expect the upgrade to 3G to boost average revenue per user, premium
services may take time to pick up in a price sensitive market such as
India. The overall performance of the company looks encouraging. At
CMP of Rs 14. We have a BUY rating on the stock with the target price
of Rs 30.


BUY POWER GRID CORPORATION OF INDIA (532898)
CMP: 100
Target: 150 in 9 months
Power Grid Corporation of India, the Central Transmission Utility
(CTU) of the country under the Ministry of Power.
Central Transmission Utility - Navaratna PSU - Asset of Rs. 50352 Crs
as on March 31, 2011. World's Leading Power Transmission Utility -
82,354 Ckt.Km line-135 Substations . Technology Leader in EHVAC & HVDC
Transmission.
Carries 51% of Generated Power Across Country.
•       93,050 MVA Transformation Capacity
•       22400 MW (Approx) Interregional Capacity
Telecom NLD with 20733 Km Optical Fiber Network & Internet Service
Provider
Capital expenditure for FY12 is expected to be around Rs 16700 crore.
For the 12th plan, company’s capital expenditure is expected to be
around Rs 100,000-120,000 crore in which about 52,000 km of
transmission lines, 70 sub-stations and transmission capacity of
1,36,000 MVA are to be added. The management has guided for
capitalization of Rs 10,000 crore in FY12. Higher capitalization
should aid top line growth. Company has more than 50% of the market
share of the transmission sector and this is expected to increase.
Due to Power Grid’s robust long-term business outlook, valuations and
on a strong fundamental basis, we have a ‘BUY’ rating on the stock at
CMP of Rs 100 with target price of Rs.150 in 9 months.

BUY NEYVELI LIGNITE CORPORATION LIMITED (513683)
CMP: 84
Target: 150 in 9 months
NLC is a government-owned lignite mining Indian company, which is
wholly owned by the Union Government (49%) and administered via coal
ministry. It is recently announced as “Navratna” by Government of
India in April 2011. NLC Neyveli spreads over an area of around 54
square km, comprising Neyveli Township and temporary colonies around
32 blocks. The company runs the biggest open-pit lignite mines in
India and mines around 2.4 Crore tonnes of lignite annually for fuel,
with an installed capacity of 2490 MW of electricity per annum.
NLC now elaborated its project to Rajasthan also in mining as well as
thermal stations, 3 big mines also supplies a huge amount of sweet
water to Chennai. The Tamil Nadu electricity board has a JV with the
Neyveli Lignite Corporation Ltd (NLC) for two projects – A 1000-MW
coal-based project at Tuticorin in southy Tamil Nadu at the cost of Rs.
4000 crore and the Jayamkondam lignite power project at a cost of Rs.
5000 crore for 1000 – MW power plant. The company has also planned to
develop clean coal technologies like extraction of coal bed methane
(CBM) and Underground coal gasification for which several steps have
been taken. The coal priced has raised, due to which Central Govt. has
forced SEB to increase Electricity Power tariff by 20%, which will
directly benefit NLC for ownership of their mines.
Neyveli Lignite is an open-cast mechanized lignite mine. The Company
has 50 % joint venture with Tamil Nadu Electricity Board and its
announced its plans to invest about Rs.36,900 crore on power
generation and mining capacity augmentation by 2017. The plan also
includes development of power projects using other fuel feed. The
company is also planning to invest Rs.40,200 crore to build power
plants in Tamil Nadu, Rajasthan and Uttar Pradesh.
Strong expansion & diversification plans to explore coal-based, wind
and solar power generation projects will add on strength to the
cashbook.
We recommend ‘BUY’ on the stock at CMP Rs. 84 with a target price of
Rs. 150 in 9 months

source: email smartptofit.in

Ashish Chugh unearths 2 smallcap hidden gems for Feb 2012

Ashish Chugh, Investment Analyst & Author of Hidden Gems is bullish on smallcap companies IL&FS Investment Managers and Kakatiya Cements.

On IL&FS Investment Managers

IL&FS Investment Managers is a subsidiary of IL&FS limited. It is the only listed private equity player in the country. This company raises funds and manages those assets typically on a 220 model, wherein it gets a fixed management fee of about 1.5-2% of the assets which it manages. There is also performance linked income, which is generally called the carry, of about 20% of the total profit it makes after a certain threshold.

This company has got assets of about USD 3.2 billion under management currently. It invests primarily in infrastructure and real estate sectors and also in the other growth companies. If you look at the financials of the company, FY11 sales were about 200 crore, profit after tax was about 70 crore and the EPS was about Rs 3.50. In the first nine months of the current financial year, sales is about Rs 157 crore with a profit after tax of Rs 54 crore, equity is about Rs 41.5 crore, which means an EPS of around Rs 3.5 to Rs 3.6.

Now, there are a couple of reasons we like this stock. One is very high dividend payouts. This company has been giving dividends of about 75% for the past two-three years, which at the current price would result in a dividend yield of about 5-5.5%. The stock currently trades at about Rs 29, so the dividend yield is pretty good.

Second is this is a debt-free company. It's a company which does not require much capital. It's basically a knowledge business and the performance of the company is a function of two factors. One is the ability of the company to raise money and also to deploy the money in profitable businesses. Over the past two years the company has been going through a difficult phase primarily on account of the depressed economic conditions, which we have witnessed across the world. There has not been much growth in the assets under management, which the company has done.

In spite of all that, this company has rewarded its shareholders with 75% dividend in the past two years. In case the economic environment starts to improve the company would be able to raise more resources and more assets for management and also would be able to deploy those assets in more profitable investment opportunities. Both these things would be good for the company and would give a fillip to both the fixed income of the company which is the management fee and also the performance linked income which is the carry.

So in the difficult time this company has shown lot of resilience and has notched up a steady performance and also rewarded the shareholders with dividend payouts which are as high as about 40-45% of the profits of the company.

At the current price of about Rs 29-29.5, you have a company where you are getting great management with 5% dividend yield in times which were not very conducive for investment.

So, at the current price, the downside in the stock looks extremely low and investors who may have been left behind in the recent run of small and midcap stocks can accumulate the stock at about Rs 29-30. I don't see too much of downside in the stock from these levels.

--------------------

On IL&FS Investment Managers

IL&FS Investment Managers is a subsidiary of IL&FS limited. It is the only listed private equity player in the country. This company raises funds and manages those assets typically on a 220 model, wherein it gets a fixed management fee of about 1.5-2% of the assets which it manages. There is also performance linked income, which is generally called the carry, of about 20% of the total profit it makes after a certain threshold.

This company has got assets of about USD 3.2 billion under management currently. It invests primarily in infrastructure and real estate sectors and also in the other growth companies. If you look at the financials of the company, FY11 sales were about 200 crore, profit after tax was about 70 crore and the EPS was about Rs 3.50. In the first nine months of the current financial year, sales is about Rs 157 crore with a profit after tax of Rs 54 crore, equity is about Rs 41.5 crore, which means an EPS of around Rs 3.5 to Rs 3.6.

Now, there are a couple of reasons we like this stock. One is very high dividend payouts. This company has been giving dividends of about 75% for the past two-three years, which at the current price would result in a dividend yield of about 5-5.5%. The stock currently trades at about Rs 29, so the dividend yield is pretty good.

Second is this is a debt-free company. It's a company which does not require much capital. It's basically a knowledge business and the performance of the company is a function of two factors. One is the ability of the company to raise money and also to deploy the money in profitable businesses. Over the past two years the company has been going through a difficult phase primarily on account of the depressed economic conditions, which we have witnessed across the world. There has not been much growth in the assets under management, which the company has done.

In spite of all that, this company has rewarded its shareholders with 75% dividend in the past two years. In case the economic environment starts to improve the company would be able to raise more resources and more assets for management and also would be able to deploy those assets in more profitable investment opportunities. Both these things would be good for the company and would give a fillip to both the fixed income of the company which is the management fee and also the performance linked income which is the carry.

So in the difficult time this company has shown lot of resilience and has notched up a steady performance and also rewarded the shareholders with dividend payouts which are as high as about 40-45% of the profits of the company.

At the current price of about Rs 29-29.5, you have a company where you are getting great management with 5% dividend yield in times which were not very conducive for investment.

So, at the current price, the downside in the stock looks extremely low and investors who may have been left behind in the recent run of small and midcap stocks can accumulate the stock at about Rs 29-30. I don't see too much of downside in the stock from these levels.

Source: moneycontrol.com

ICICI Direct Muhurat picks 2011

1. Bharti 

2. Biocon

3. HDFC Bank

4. HPCL

5. ITC

Emkay top picks

Sectors	Outperformers	Underperformers
Agri Input & Chemicals	Coromandel International, Rallis India
Automobiles	Bajaj Auto, Tata Motors	Hero Honda
Banking & Financial Services	Allahabad Bank, Mah & Mah Financial Services, State Bank Of India
Cement		India Cements
Engineering, Capital Goods and Infrastructure	Greaves Cotton, IRB Infrastructure, Larsen & Toubro
FMCG		Asian Paints
IT Services	TCS
Metals & Mining	Sterlite Industries, Tata Steel
Oil & Gas	BPCL
Pharmaceuticals	Aurobindo Pharma, Cadila Healthcare	Dishman Pharma
Power	NTPC	JSW Energy
Real Estate	Phoenix Mills
Telecommunications		Bharti Airtel, Idea Cellular
Others	Kajaria Ceramics, Piramal Glass, Jubilant FoodWorks, Sterlite Tech

Chandrakant Sampat: The magician of D-street

Source: Moneycontrol.com

Veteran stock market investor Chandrakant Sampat is regarded by many as the Warren Buffett of India. The 82 year old investor leads an active yet simple life that includes daily jogging and yoga exercises.


He has got an acute sense of the economy giving him an edge over others. In a freewheeling chat with CNBC Awaaz's managing editor Sanjay Pugalia, the media shy Samat opens up about his personal triumphs and his views on various issues.

Below is a verbatim transcript of the interview. Also watch the video.

Q: What are the top tips investors should keep in mind while investing?

A: When I started somewhere in 1955, it was the controller of capital issue, which was in-charge. It was his duty to see that the companies, who needed capital or who came for the capital, unloaded the investment on the public at a very reasonable price. The value was the whole focus of the controller of capital issue. That kind of an advantage we do not have now.

Second, 1955 to 2000 was a period of great stability in which you could visualise what may come about. So, you could take a stand for a longer period for compounding of your wealth.

Q: How do you identify good companies from the bad ones?

A: Look out for four things. One is least capital expenditures. Two is since there is least capital expenditure, there are no borrowings. That means there are no future costs that are not provided for. Three is the return on capital employed should not be less than 25%. Then it adds to the fourth that these companies give a big chunk of their earnings as a dividend.

Let us look at it this way: The Dow has compounded at 5% in the last 100 years, but the good dividend paying companies have done the other way. They have done 8.5%. So, dividends are more important. It is real cash flow in the hands of the shareholders. All this, what you call innovations in the form of bonus — bonus is nothing else, but an ‘IOU’ given for the accrued expenses still not incurred. So what is necessary is, how much dividend do we get? Is the dividend compounding?

There have been some companies here where the compounding of dividend has been as high as 50%.

Q: Which companies would fit the bill in this criterion?

A: You won’t get more than eight-ten companies. We have already entered a very turbulent time where there are absolutely no certainties. You perceive your investment to be — however you may think you are going to create wealth out of it — it may not work because of the turbulence that is happening all around the world. Therefore, depending on the age, one must have other income, which one may be able to write-off should things not work out.

In the strategy that I follow, I don’t cover more than ten companies in my investment portfolio. If you spread it out, so many of them will go wrong and very few will come right. So, it will be squared out. But if you are in eight-ten companies, even one giving you everything, will cover your wealth.

Q: What is your favourite theme right now? How would you look at different businesses going forward?

A: We have already entered turbulence where sustainability is broken. The cycles earlier used to be 150 years. Then it came to 100 years and then to 50 years. Now upto 2000, it has come to 10-20 years and maybe with the turbulence that is now taking place, it will be still shorter. Therefore, your ability to write-off the risk should be pepped up.

Q: There were limited means of investment during your times. However, things have become a lot more complex in the current scenario. We see the derivative segment dominating others where there is more risk. How do you read the situation?

A: I would say it the way George Soros has put it. Today, the mutual fund industry is around USD 70 trillion world-over. They only chase momentum and no value. What it is now and what is their performance is what they want to decide. They don’t want to see values. As I have said as well, in the new age, the values are also deceptive because the cycles are getting fractured.

Now, the new cycle that is getting fractured is the advent of this type of global economy. That is getting fractured.

Q: What is your biggest concern for the global economy?

A: Let’s look at what can affect the global economy because we are totally linked to it. We are not in anyway immune. So, you take the instance of the United States (US) today which will have a constitutional liability of USD 240 trillion by 2040, mainly in social securities and healthcare. The deficits are growing. These are financed by their current account deficit and by QE1, QE2 and what not — by easing and printing to attain US aims.

Now, the same thing is happening here. We are financing our consumption-based growth today. What we talk about 9% growth, it is entirely based on current account flows coming in and the current account deficit is financed by these capital flows of USD 4 trillion a day because they are greedy. They want immediate returns and for that point they are there.

Our fiscal deficit is growing. So what happens at a time when the US, which is a reserve currency, cannot reroll its debt and the whole global economy is today predominantly invested with the reserve currency, that is the US dollar. That is the biggest risk — if it gets fractured and the whole system falls.

Q: Do you think the worst is over or there is still more to come?

A: There is a huge asset liability mismatch that is taking place. The real assets are provided by mother earth. This is something which we have inherited. The mismatch is the printed fiat money, which finances the global capital flows. They are the liabilities. This asset liability mismatch is growing at a very rapid pace.

As I see it, a bigger crisis may come about perhaps even within my life time — it’s quite possible.

Q: I had read an interview of yours in 2005 where you might have predicted the 2008 crisis. How can we insulate ourselves from global turmoil?

A: I think today the entire national charge world-over is with politicians, bureaucrats, economists and elites. What happens is they are more concerned about their short-term benefits. They want to ignore what is coming — maybe they know what may come about, but they want to keep it aside. The first duty of these who are in charge of the economy is to really inform the people what is coming and some steps should be taken to get into this kind of a social equality which is needed, if we want to avoid revolutions which we are now seeing.

Q: Can you elaborate more on the concerns that you talked about?

A: The first thing would be if abruptly the capital flows stop. We cannot finance the current account deficit. Then the question is that since the natural resources are limited and there is a prediction by scientists that water shortages, food shortages, concerns about climate change — destruction of fauna and flora, deforestation — all these are elements of uncertainty. So how do we contend with it? The public should know about that.

Q: Do you think the premise of the India growth story is flawed?

A: Yes, it is true. Please understand the power of compounding. If we compound at 9%, what can happen? What will be the printed money that we will need to finance it? What will be the inflation and what will be the social attitude of our 75% of the people who earn just dollar a day? What are we doing — have we given a thought to it?

Q: How can the world overcome this financial crisis? Should we change our reserve currency and look towards gold etc?

A: The question of gold standard can be put very differently. Today, there is an asset liability mismatch. The assets are what is provided by nature and which cannot be replicated or which cannot be generated. It is what it is. We are just taking it out. The ratio of the printed money in relation to the real resources — this is a new gold standard. That is where we need to go and to go to that particular concept, what we need is a multidisciplinary team.

Q: This should be the job of political leadership of a country. Do you think our political heads will be able to meet these challenges?

A: I will put it this way: what we need at this stage is a call to those who are in-charge of the nation, they will need integrity and integrity is not merely humility. It is courage. They will have to develop the courage to come to the real integrity level. Our leadership is known for its humility, but it should now be known for its courage.

Q: What is your assessment of India Inc?

A: I think it is not the Indian companies alone. This format has gone world-over that every corporate is today interested in what it is now. They are least bothered with what can happen to the retirement funds. The holders of retirement funds have to be paid and if this USD 70 trillion worth of funds get fractured by this macro-economy what can happen. They have to think in that way and that is real corporate responsibility.

Q: Which company or sector would you choose to invest in right now?

A: I wouldn’t like to point out anything in particular. But I have talked about the platform companies where I have a vision. The vision may come true or it may not come true. If it doesn’t come true, even in these difficult times I will be able to stand.

But for that what one needs is high enlightenment and that is number one. Number two is high integrity. Number three is the vision for the value and number four is frugality. These are the four things on which I depend.