February 23rd, 2010 by Musthafa
2 comments »
I bought Biocon Limited at 270.75 today. Pharmaceutical sector is a good defensive sector to be included in one’s equity portfolio. At present I have only two companies from pharma sector and with this buy, pharma constitute 7% of my total equity portfolio.
Biocon is a fully integrated biopharmaceutical company with expertise in the fields of biopharmaceuticals, custom research and clinical research. The company is a bulk drug supplier and has a market share of about 40% in the European market in bulk statins a drug class used for treatment of cardio-vascular diseases. Biocon is the largest Indian company in the biotechnology space and has a strong product portfolio.
The biopharmaceutical segment contributes 75% to the Indian biotech industry’s revenues and has been the key growth driver. The Indian biotech industry is expected to generate US$ 5 bn in revenues by 2010 and create more than one million biotech jobs over the next five years. On a global basis too, the biopharmaceutical market has undergone rapid expansion since its emergence 30 years ago.
The positive points for Biocon are healthy operating margin, long term earning growth, decent return on capital invested, consistent dividend payout history, larger promoter holding, lower FII holding, high liquidity, reasonable current ratio and low leverage.
In the global scale, while the fundamental factors driving the industry remain strong, the same is bogged down by intense competition and severe price erosion. The Indian domestic pharma industry is expected to grow at a CAGR of 16% over the next five years, however company’s success is highly depended on R&D efforts, and industry is fragmented and highly competitive. Thus the risk is that whether the company will be able to withstand these industry risks.
Recently Equitymaster recommended Buy with a target price of 360.00 with a two-three year perspective in their paid research service. HDFC Securities has recommended buy rating on the stock of Biocon with a target of Rs 327, in its February 11, 2010 research report. IndiaInfoline recommended buy rating on the stock with a target of Rs 320, in its anuary 14, 2010 research report.
February 8th, 2010 by Drops Savings
1 comment »
Drops Savings and Investments recommended two companies to invest in last three months. Thus you will have Bharti Airtel and Suzlon Energy in your portfolio. We recommended these stocks in November and December respectively and we restrained ourselves from recommending any stock in January as we feel the valuation of the quality stocks has gone up and it is not right time to buy more.
The price of the above two shares has not moved up much since then and in fact the price of Suzlon Energy has gone down from the price at which we recommended to buy. In this situation, these two stocks still hold good to buy at current price and we recommend doing so if you have not already bought.
So if you just started with Drops’ recommendation, you will have Rs. 10,000 invested in Bharti Airtel and Suzlon Energy – that’s 50% of your equity portfolio in each company which are in turn 50% each in Telecommunication and Energy sector.
Hold rest of your cash and wait for a good opportunity to come when market correct itself. Our philosophy is to invest in quality companies at the right price and hold for long term as long as it delivers its promise!
February 1st, 2010 by Drops Savings
1 comment »
REpower Systems, in which Suzlon Energy is majority shareholder with 90.71 holding and RWE project company for “Nordsee Ost“ have concluded a contract on the delivery of 48 offshore wind turbines.
via Myiris news – Live News – REpower, RWE Innogy ink 295 MW offshore wind farm pact.
Related link:
Drops Savings and Investments recommends investments in Suzlon Energy with a long term perspective
January 31st, 2010 by Drops Savings
1 comment »
Jan. 31 (Bloomberg) — Suzlon Energy Ltd., India’s biggest maker of wind-turbine generators, said it expects orders to increase this year as a recovering global economy rekindles investments in alternative energy projects.
January 31st, 2010 by Drops Savings
1 comment »
Jan. 30 (Bloomberg) — Suzlon Energy Ltd., India’s biggest maker of wind-turbine generators, reported an unexpected profit in the third quarter after selling a stake in a unit.
Net income, including that of subsidiaries, was 141 million rupees ($3.05 million) in the three months ended Dec. 31, compared with a 648.7 million-rupee loss in the year-earlier period. The median estimate of nine analysts compiled by Bloomberg was for a loss of 389 million rupees.
http://www.bloomberg.com/apps/news?pid=20601091&sid=a42R8puf_fXI
January 21st, 2010 by Drops Savings
1 comment »
Bharti Airtel, Asia’s largest integrated telecom provider today announced a strategic partnership with Limelight NetworksR for Content Delivery Network (CDN) services in the Indian market place. The partnership will help Limelight NetworksR to expand its access in one of the fastest growing CDN markets and enable its customers, access to Bharti Airtel’s state-of-the-art IP network in India. With this agreement, Bharti Airtel will now be able to offer Indian content producers, industry leading solutions for the delivery of rich media and enterprise applications, as well as direct access to consumers accessing the Internet, over 900 last mile networks that are directly connected to Limelight Networks’ global platform.
India Infoline
Related Link:
Drops Savings and Investments recommends investment in Bharti Airtel
January 17th, 2010 by Drops Savings
1 comment »
Suzlon bags order for 4.2 MW from Sweden co Triventus AB
Suzlon Wind Energy A/S (SWEAS), the international business arm of Suzlon Energy Limited – broke new ground with its first order in Sweden. The order from Triventus AB, the highly respected wind power developer and consultant in Sweden, comprises of two S88-2.1 MW wind turbines. The 4.2 MW Assjö project, located 150 km from Göteborg and Stockholm, will be delivered by SWEAS through a contract that covers engineering, procurement and construction.
http://www.moneycontrol.com/news/business/suzlon-bags-order-for-42-mwsweden-co-triventus-ab-_436111.html
Related Link: Drops Savings and Investments recommends investments in Suzlon Energy with a long term perspective
January 17th, 2010 by Drops Savings
1 comment »
Germans to profit from British wind boom:16 January 2010
BERLIN, Jan. 15 (UPI) — Britain’s multibillion-dollar offshore wind adventure is great news for two German companies: Siemens and Repower are the only companies producing turbines for farms at sea, but several others are poised to enter this lucrative emerging market.
Germany-based turbine maker REpower is owned to 90 percent by Indian competitor Suzlon.
Excerpt from: UPI.com
Related Link: Drops Savings and Investments recommends investments in Suzlon Energy with a long term perspective
January 14th, 2010 by Drops Savings
No comments »
We do not recommend any stock this month as the prices of the shares in our watch list has gone up far from its fair value which give little room for any reasonable return in the long run. However we remain with our recommendation of Bharti Airtel and Suzlon Energy in the last two months.
We recommended Bharti Airtel in November 2009 while its price was Rs. 299.95 and it has gone up by 6% since then. At the same time, Suzlon Energy which was recommended in December 2009 at a price of Rs. 83.10 has gone up by 12% so far. We still believe that it will give good return in the long run even from its current level and if you have not bought it yet, you may consider fresh investment now.
January 11th, 2010 by Musthafa
No comments »
It is time to be more cautious on share market in India. I am gradually offloading some of the shares prices of which has reached its reasonable valuation and achieved my target. At this time, I would prefer to sit more on cash rather than buying anything in haste.
Today, I am selling Gujarat Gas Company on a return of 97% in a holding period of 21 months! I bought this in April-May 2008 at an effective average cost of Rs. 125.67 (adjusted for bonus shares) which now stands at Rs. 247.60.
I still see buying opportunity in Suzlon Energy and Bharti Airtel. But I am not buying it right now as these shares already constitute 6.5% and 10.8% of value of my holding respectively. One should be disciplined and should avoid concentration of investment in a few shares, even if it looks attractive to buy more.
