Dalal street journal has given a buy call on Unity for this year`s Mahurat picks.It has a orderbook of 2417cr and a target of 525 by next diwali which is a little bit conservative as they should be.But given their earnings visibility this could be achieved much earlier.
I hold Unity for a very long time. Like you and many others, I have a personal interest in seeing the stock price go up. However, I do not spread rumors or propagate false news to jack the price up.
I read DSJ for many years now. I have every issue of DSJ for the last 5-6 years, nicely stacked up in a cabinet.
DSJ has not recommended Unity Infraprojects as a muhurat pick. The 11 stocks recommended by them are:
CESC, HCC, L&T, Mphasis, Orient Paper, Ranbaxy, SRF, SBI, Syndicate Bank, Tulip Tele and Colgate.
If you want others to buy Unity, you can always tell them why. We all hold Unity because we know that it is undervalued and we hope that it will reach its true value one day. However, if we spread rumors and false news, our credibility will take a hit and none will believe us later.
I had mentioned Unity as a mahurat pick by mistake but the stock is included in the 10 lakh portfolio for diwali 2009-10 along with Birla corp,OBC,Engineers India,TRF,Divi`s Labs and Balrampur Chini.I had posted the message in good faith and have absolutely no intention of spreading rumours about this stock or any other.Having said this I would prefer it the other way around wherby it corrects so that I can pick up some more.
a correction-the recommendations are published in fni(flash news investment)from the house of DSIJ.Once again I reiterate that I have absolutely no intention of misleading anyone . My greatest wish is for investors to discover good companies which are ethical,respect their shareholders esp.the small holder and grow in a dignified way.
I am sorry. I don`t get to check MMB much during the week, however I had seen your reply and wanted to answer at leisure.
I dont follow Flash News, and I am surprised that DSIJ and FNI recommended two different sets altogether. Anyway unless they do that, people wont buy both right?
Lets hold onto Unity, I hope it will be a multibagger in the days to come, however with these small companies, that too in industry like construction, one should be cautious.
dear goldentip,
apologies accepted.am a relatively new investor with a couple of years behind me.started with mutual funds at the height of the boom and seriously lost money.but I wasn`t disheartened while most of my friends quit cursing the market.I increased my sips and now am comfortably sitting on a very healthy profit.came into equities only 8 months back and being a new kid on the block was overexcited and kept selling good stocks after making some profit.did not know the virtue of patience.now a bit, just a bit more matured and dear golden tip can you give a little bit of advice on the stocks I hold.The following are the stocks :AXIS bank,Mphasis,Patni computers,Glodyne technoserve,Unity,Zensar,JK Lakshmi,Indusind,Dhanalakshmi,Voltamp Transformers,Educomp,Seamec and a few more.Since I am covering largecap funds like DSP Top100.HDFC Top200 Hsbc equity reliance growth and ICICI infra the last two for diversification,have not entered individual large cap stocks which I feel have gone past their prime .
Midcaps as a class may outperform largecaps in the long term but one may not conclude that all large caps have gone past their prime.
For example, look at Infosys. They have $3 billion cash at bank. I am not sure if they have the heart for inorganic growth, but if they want to, then they have all the money in the world. Of course, they are a largecap, but in the global context there are much larger IT consulting companies like Accenture or EDS which got acquired by HP last year. So there is still a lot of room for growth, but they need to learn taking risks.
Similarly, Bharti Airtel. Today the stock is languishing like any other telecom play, but you know, there can`t be any growth without improvement in communication. All of us are looking at lower ARPU in the voice market today, but at some point of time in the future, voice is going to be a fraction of the wireless market. We are already talking about 100Mbps data transfer speed on wireless. Then there is also DTH. And fixed line broadband. Railways has 64000 km of fiber optic which is highly underutilized because only railway communication happens over this infrastructure. Sam Pitroda has been roped in to monetize this, and my guess is that they will start leasing this infra to broadband players. Only a guess. But the bottomline is, lot of things will still happen in telecom, voice is not everything.
But as a strategy it is all right, invest in large caps through MF and buy select midcaps through direct exposure. However I myself like diversification in both portfolios, but to each his own.
I do not buy bank stocks myself, I have Reliance Banking Fund and PSU Bees because I have not been able to beat them in the past. So I have left it to the wise fund managers. However I follow some of your bank stocks, and I think both Axis and IndusInd are doing extremely well. I do not follow Dhanalakshmi. You may want to look at Allahabad Bank as well.
I do not have much faith in midcap software services companies after Satyam fiasco. In the past, they have proved to be extremely volatile. My exposure is through TCS and Infy. I have also invested in 3i infotech because of their mgmt quality.
However in IT (non-software) I suggest you should look at ICSA and Bartronics. They are also very volatile but I expect at least one of them to be a potential multibagger. Standard disclaimer applies. :)
I do not buy commodity stocks but JK Lakshmi is an exception. I think it is one of the most undervalued commodity companies today and I do not know when re-rating will happen, but it should happen some day. On an EV/tonne replacement cost basis, it is trading at 50% discount to other midcap cement peers.
Apart from Unity you can look at Era Infra too.
Educomp is an education play and I think there are not too many better proxies in the market today. If you have it, congratulations! I could never buy it in the past because of several reasons and now it is quite expensive. But continue holding it if you have it already.
Voltamp and Seamec are good companies but I don`t follow them very closely. I can only track a few companies on a regular basis, so sometimes I have to take the hard call of leaving out a few quality stocks too, because my brain can only process so much information.
I`ll suggest you start researching Opto Circuits and let me know what you feel.
Dear Goldentip,
Your valuable advice is a great boon to me.About Opto Circuits,it was one of the stocks I entered and exit after making a decent profit.I think it is a good company with a very good and transparent management.They have a good business model and if they can take control over their debt should do extremely well in the future.Will start accumulating.Thank you once more and will keep in touch.
| NIFTY 
