Friday, July 26, 2013

HUL Q1 FY 2014 Result Analysis

Hindustan Unilever (HUL) reported average set of numbers for the first quarter of current financial year with tepid volume growth of just 4% YOY. Net profit reported for the quarter was at Rs.1,019 crores on revenues of Rs.6,687.49 crores against net profit of Rs.1331.19 crores on revenues of Rs.6,250.15 crore in the corresponding quarter last year.

Year on Year the net profit has fallen 23% while revenues have gone up 7%. For FY-14, HUL is expected to generate around Rs.28000 crores of revenue and Net profit of Rs.4000 crores, against revenue of Rs.26317 crores and Net profit of Rs.3829 crores in FY-13.

Wednesday, July 24, 2013

Wockhardt Ltd: Valuation bubble burst

Wockhardt LogoMany investors and traders might have been curious to know what went wrong in the well know pharmaceutical company Wockhardt Ltd and why it's stock fell like nine pins in the past couple of months. 

The main reason for the fall is valuation bubble burst. Investors are paying the price of irrational exuberance as Wockhardt continue to crash from the peak of 2170 made in March this year. The stock has fallen 70% since then and has lost around 17000 crores of market value in 4 months . As on 24th July the stock closed at Rs.660 and has a market value of Rs.7244 crores.

Wockhardt Ltd stock price chart

Saturday, July 20, 2013

Reliance Industries Q1 FY - 2014 Result Analysis

Reliance Industries Q1 Result
Reliance Industries (RIL) has announced first quarter results which were inline with street expectations with slight disappointment on GRM front. Following are the key takeaways from the RIL's Q1 FY - 2014 results.

Net profit in Q1 FY - 2014 is lower than previous quarter (Q4 FY-2013). The refining giant reported Rs 5,589 crore in March 2013 while it posted Rs 5,352 crore in June 2013.

Thursday, July 11, 2013

Sell Infosys 1700 Put Option of July series at 6.50

With Infosys q1 result scheduled on 12th July, the Implied Volatility across deep in the money Puts and far out of the money calls are very high resulting in reasonable premiums for even 1700 Put or 3200 calls which are almost 30% away from current market price of 2540.

In our view  1700 Put option is highly safe considering the current valuation of the company and expectation from N. Murthy. 

Traders can sell Infosys 1700 put at current premium of 6.5 thereby earning a return of almost 2.5% in 14 days.

Total Return from the trade:

Considering one is able to sell the July Put option of Infosys 1700 strike price at current market premium of 6.50 he/she can generate following return from this trade:

Wednesday, July 10, 2013

Rakesh Jhunjhunwala stake in Kesoram Industries

Rakesh Jhunjhunwala stake in Kesoram IndustriesRakesh Jhunjhunwala seems to have turned bullish on ailing Kesoram Industries, a diversified company chaired by B.K Birla, having large capacities in Tyres, Cements, Spun Pipes etc.

Rakesh Jhunjhunwala through his wife's account has acquired 60 lakh shares in Kesoram Industries taking his shareholding in the company to around 7%. The shares were acquired through rights issue. The company had recently offered its shareholders to buy additional shares in the ratio of 7:5 at Rs 65 apiece.

The other major investor in the company is LIC holds over 10% of the equity shares. As of March-end, promoters had 27.12% stake in the company.

Tuesday, July 2, 2013

Advantages for traders using Metatrader Signals Service

As described in this post (trading signals by Metatrader 5) forex traders using the trading signal on Metatrader 5 platform have number of advantages over conventional forex brokers and platform providers. Following are some of the key advantages of using Metatrader Signals Service:

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...