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SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

01 May 2010

which IPO to be purchases an SVJN one or a JAYPEE INFRATECH LTD.

advice urs valuable sugesstion

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9 Replies

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 01 May 2010

Jaypee infra has been given subscribe rating by most of experts..

But some are of opinion its quite expensice in comparison to its peers like Unitech,DLF,etc

Read the following about it..

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CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 01 May 2010

Brokerages views

Mehta Equities in its report says, "We believe the parent company with loads of experience in the field of construction to have big boost for JIL as the execution and marketing of the projects could be done with no hassles. The Yamuna Expressway project is scheduled to get complete by 2013, but the project is on the verge of getting completed 2 years ahead of schedule. Also, JIL has managed to sell a scalable are of land and has set 10 years to construction the townships. Connectivity is expected to be further enhanced by the recent expansion of the Delhi metro to Noida, the proposed Taj International Hub Airport and a proposed aviation hub in Jewar (including the planned expansion of the Delhi metro to Jewar), and the presence of Mathura, a well-known religious pilgrimage site located along the expressway. Potential of the promoters backs the valuation. Hence, we recommend investors to subscribe.”

Sharekhan in its reports says, "Jaypee Infratech is likely to benefit from its parent company, JAL, in terms of resources and execution skills. The ongoing project is running ahead of schedule and provides comfort with regard its execution. The Jaypee group’s strong brand name, strong execution capabilities and quality land bank would ensure sustainable growth for Jaypee Infratech. However, in terms of financials the company is having negative cash flow from its operations due to the longer gestation nature of the business."

"In terms of valuation, the net asset value per share works out to Rs 115 (on fully diluted equity of 138.8 crore shares), which is close to the higher end of the issue price band of Rs 102-117. However, there is potential for upside in the stock’s valuations if the company is able to monetise its land bank at a much faster rate and higher than expected realisations."

Swastika Investmart has recommended applying for the IPO with a medium term to long term view. "With infrastructure expense to sequentially grow in the country for next few years, company stands to gain considerable share of such business."

However, SKP Securities has advised to avoid this issue. "With the source of revenue being tolls from YE and real estate development, which will start only after completion of YE project, there is concern about cash generation. The issue price of Rs 102-117 implies a P/E of 24X on FY10 EPS of Rs 4.85 (annualised on 9MFY10). Considering that the issue is fully priced at the upper price band we recommend to avoid the issue."

Jaypee Group incorporated this company on April 5, 2007 as a special purpose company to implement the concession. This concession also included the right to develop 25 million square metres (approximately 6,175 acres) of land along the Yamuna Expressway at five locations for residential, commercial, amusement, industrial and institutional purposes.

The project is being developed at a cost of Rs 97.39 billion (USD 2 billion) and includes setting up townships at five locations along the highway.

The issue consists of fresh issue aggregating up to Rs 1650 crore and an offer for sale of 6 crore equity shares by Jaiprakash Associates (JAL). JAL owns 99.1% of equity shares of company.

Proceeds raised from the fresh issue will be partially used for financing the Yamuna Expressway Project while money from offer for sale will be received by JAL.

Source : https://www.moneycontrol.com/news/ipo-tip/jaypee-infratech-ipo-opens-should-you-invest_454668-0.html

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 01 May 2010

Considering its available near abt PE of 24-25,,its quite expensive than DLF(available near 13-14 X) and Unitech (Available near 10-11 X)...

meera krishna (senior trader) (59 Points)
Replied 25 May 2010

Buy ICICI Bank target of Rs 825 Motilal Oswal

‎this is the best days advice~

Motilal Oswal is bullish on ICICI Bank and has maintained buy rating on the stock with a target of Rs 825, in its May 19, 2010 research report.

"ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan (BoR) to amalgamate BoR, with a tentative share exchange ratio of 1:4.72 (25 shares ofICICI Bank for 118 shares of BoR). The final exchange ratio will be based on due diligence and independent valuation reports. Assuming a share swap ratio of 1:4.72, the deal values BoR at Rs30.4b and will lead to ~3% equity dilution for ICICI Bank.

pawankumar (investor) (109 Points)
Replied 26 May 2010

Originally posted by : meera krishna
	Buy ICICI Bank target of Rs 825 Motilal Oswal ‎this is the best days advice~ Motilal Oswal is bullish on ICICI Bank and has maintained buy rating on the stock with a target of Rs 825, in its May 19, 2010 research report. "ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan (BoR) to amalgamate BoR, with a tentative share exchange ratio of 1:4.72 (25 shares ofICICI Bank for 118 shares of BoR). The final exchange ratio will be based on due diligence and independent valuation reports. Assuming a share swap ratio of 1:4.72, the deal values BoR at Rs30.4b and will lead to ~3% equity dilution for ICICI Bank.

thank you for the information!

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akhi kashyap (ceo) (48 Points)
Replied 27 May 2010

There has been a great deal of upset in the indian market due to the situation in europe!now we are feeling the pinch more day by day...in fact,There is a fear psychosis due to the problems in Europe,said Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services.

i dont know bad the situation would get and there might be some chance of it spilling over!i dont know if its the best time to invest!

pawankumar (investor) (109 Points)
Replied 28 May 2010

Originally posted by : akhi kashyap
	There has been a great deal of upset in the indian market due to the situation in europe!now we are feeling the pinch more day by day...in fact,There is a fear psychosis due to the problems in Europe,said Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services. i dont know bad the situation would get and there might be some chance of it spilling over!i dont know if its the best time to invest!

See here ,even the same thing got repeated yesterday!
The Indian markets once again mimicked the global markets that witnessed a terrific bounce back. The Sens*x wiped out quite a bit of its Tuesday losses and closed up 365.36 points at 16,387.84. The Nifty crossed the 4,900-mark to close at 4,917.4, up 110.65 points.

Source Link:https://www.asianage.com/business/glo...pel-sens*x-085

jrahul52 (ceo) (28 Points)
Replied 03 June 2010

Stock market shares and Expert advice go a great length in taking the right decisions! some of the people in the market like Motilal Oswal ,Kotak and Reliance and other houses come out with their daily recommendations.What is your take on it?have you benefited from it?

meera krishna (senior trader) (59 Points)
Replied 04 June 2010

Originally posted by : jrahul52
	Stock market shares and Expert advice go a great length in taking the right decisions! some of the people in the market like Motilal Oswal ,Kotak and Reliance and other houses come out with their daily recommendations.What is your take on it?have you benefited from it?

It depends usually.What is the advice and how religiously you follow it.depends on the person.most advice really work while some fall flat on the experts face.So i would say you also have to use your brains.
So follow the experts advice but also follow your own i would say.