Infosys (22.8.2017)

Infosys is facing a lot of trouble with the management. Ever since the exit of founder Narayan Murthy the company has seemed unstable and there has been a long feud between the board of directors and the founder of the company. The feud escalated to threats on the CEO and MD of the company leading to his abrupt resignation. After Vishal Sikka resigned the share has tanked more than 15% in just a couple of days.  As a counter measure the company tried to cushion the fall by issuing a buy back. But the buyback covers only 5% of the shares of Infosys that a circulating in the market currently. Thus the move has been unsuccessful so far and people are bailing out of Infosys as fast as possible.

The Indian Tech Titan has lost much credibility and goodwill in the market and is very likely to further be investigated by SEBI.  Apart from this the company may face a class action lawsuit from its US clients. Owing to Investors and service seekers alike will consider other options before they bet on this company. The pre existing problems in the company were reduction in profits due to pricing pressure in the US and the H1B visa’s becoming costlier in the US. Even at home with the slump of IT shares and overall market sentiment towards this segment have put Infosys in a big rut. This rut is not one that should be ignored by investors. The company may more than 6 months to dig itself out of the ditch they have put themselves in.

The share is currently holding at 870 but this isn’t going to hold. Once the buyback is over the share is very likely to fall further. The only glimmer of hope that will allow a more rapid recovery for Infosys is if the ex-CEO and founder Nandan NIlikani is re-appointed although this might just be a rumor and nothing is fixed yet.

The share is most likely to fall below 850 and I would say that it will bottom out close to 810 in a few months before it starts making its climb back to glory. The company is attractive at 900 but unfortunately the ongoing feud and uncertainty surrounding the company is why I would recommend buyers to be patient. And if you are willing to buy it at 900 I am sure it will be a lot more tantalizing at 810.

The share is likely to move up until the buyback date if nandan nilekani is appointed as CEO but even if this takes place and infosys’ management woes are settled. The company has a lot of financial worries. So it will take a while for the company to fully return to its glory days. I would recommend waiting for the fall if you want to be safe. But there is a chance for earning.

A good buy in the IT sector right now would be Tech Mahindra or HCL Tech. Tech Mahindra has seen good numbers in the IT sector and has seen a 5% upward move already but that move is not over yet. HCL tech has secured a New contract with Apple with allows it license to exclusively sell all apple products in India. Both of these look like better buys.

Financial Analysis:-

FA

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Tata Motors (14.7.2017)

Recommendation:-

  1. Buy price- below 470
  2. Target price- 600
  3. Profit % over 25%
  4. Duration for meeting target- 3-6months
  5. Bottom price- 400(taken lower after considering a possibility of a market crash)

Important Note: All of tata motor’s peers are strong competitors. Thus making this a very competitive segment. The companies are constantly encroaching on each other’s share capital. They are all good buys. The buying in this sector should be determined by rise and falls. Each company has a good rally and a dip. Thus buying the right company before its rally is the trick. Currently all these other companies have risen considerably leaving Tata motors at a low valuation. Thus making is a good pick.

Note: it is a good portfolio stock and can be held for years as well.

Financial analysis:-

Financial Analysis

Report:-

tata motors

DVR Equity shares

Are you looking to carry out a hostile take over?

Do you have the capital to do so?

do you want to take part in the workings of the company?

If your answer to these questions is yes.  Then this post is not for you. DVR stands for Differential Voting Rights. This means that the shares have different rights in terms of voting on any agenda proposed by the company. In India the SEBI does not allow companies to create shares with higher voting rights. This means that these shares always have lower voting rights if they are listed on the NSE or the BSE.

DVR shares may have a different share price and they are usually cheaper than ordinary shares of the same company. For example: tata motor is priced at 455 and its DVR is priced at 283 (both price on close as of 12.6.2017). Although they are priced differently the graphs are the same. This means that the news that affects one affects the same in the same way. And both shares fluctuate accordingly. Very often the percentage of change is the same however sometimes there can be a marginal difference between them.

The biggest advantage of DVR shares to small investors is that they give a higher rate of dividend. This is done to provide a little incentive for investors to move to DVR shares.

Some DVR shares listed on NSE/BSE are:-

Tata motors DVR

Jain irrigation DVR

Gujnre DVR

Future Enterprises ltd DVR

Mahanagar Gas (12th june 2017)

Buy call for mahanagar gas on NSE

Recommendation for short term:-

  1. Buy price- 970 or below
  2. Target price- 1050
  3. Profit %- 7%
  4. Duration for meeting target- 1month
  5. Stop loss price- 935

*note: this share fluctuates a lot so there is a good chance of accumulating large quantities at varying prices. Every drop is a chance to buy, thus I recommend buying in small lots. For example, the first lot can by 70% of invested capital at any price below 985 and then more lots of 10% each can be bought on dips and sold at small profits. This makes the share very attractive to an active investor. And it is just as alluring for a long term investor.

financial analysis:-

Financial Analysis

report:-

mahanagar gas report

Sun Pharma (5th may 2017)

This is a buy call for Sun pharma on the Indian share market only:-

Recommendation for short term:-

  1. Buy price- 525 or below
  2. Target price- 600
  3. Profit %- 12.50%
  4. Duration for meeting target- 1month
  5. Stop loss -475

Recommendation for longer term:-

  1. Buy price- 525 or below
  2. Target price- 650
  3. Profit % – 19.2%
  4. Duration for meeting target- 3months
  5. Stop loss at- 475

Recommendation for over a year:-

  1. Buy price- 530 or below
  2. Target price- 950
  3. Profit % 21%
  4. Duration for meeting target- 12-14months
  5. Stop loss at- 460

For financial analysis read:-

Financial Analysis

For review and short report read:-

Sun pharma report

Disclaimer:-

This is merely an opinion of an individual and meant to be informative. i do not assume responsibility for any losses or profits made due to any information found here.