IndiaBulls Financials -- The Hotest Pick of FII's


IndiaBulls Financial is the hotest pick of the FII's in the recent months which shows its roboustness and the way ahead for the stock in the coming days.

Goldman Sachs Investments Mauritius Ltd (GSMI) acquired 3.76 lakh shares for an undisclosed amount in open market transactions that were executed on March 30, a regulatory filing on the BSE shows. Post-transaction, GSMI holds 90.93 lakh shares or 5.06 per cent in Indiabulls.

The leading domestic brokerage firm has recently allotted shares representing 3 per cent stake to US-based fund Farallon Capital for Rs 186.3 crore. Foreign fund house Citigroup Global Markets has also bought 14.85 lakh shares in the company worth Rs 73 crore through market-purchase route.

As per the latest shareholding pattern of the brokerage firm, foreign investors like Merrill Lynch, Lloyd George Investment and Fidelity Funds have significant interests in the company. Merrill Lynch Capital Markets Espana has over 8 per cent stake in the company, while CLSA Mauritius 3.3 per cent stake.

10th April 2007 Citigroup Global Markets Mauritius Private Limited bought 1485560 shares @491

20th Feb 2007 Merrill Lynch Capital Markets Espana S.a. Svb 2184000 @448

18th Jan 2007 Clsa Mauritius Ltd 1400000 @300

18th Jan 2007 Clsa Merchant Bankers Limited A 1350000 @300


Meanwhile, Goldman Sachs too has been actively pursuing interests in Indian companies as it has along with a clutch of other private equity investors has invested 25 million dollars in IT software and technology support firm Cybernet-SlashSupport (CSS).

A few days ago, Goldman Sachs subscribed to a 24 million dollar (Rs 106 crore) FCCB issue from ICSA, an embedded technology and electrical infrastructure solutions provider.

Today the stock closed at 490 down around 5%. But the prospects are much much brighter. Even the steel king LN Mittal the good stake in the stock and the another demerger around the stock is the must for evey investor who wants to have good returns.

A glimpse into the Jhunjhunwala stocks

SKILLED investors are a rarity. There are not many around in India. And those who are successful are even rarer. Rakesh Jhunjhunwala is one of them. Investors now have a chance to mimic his portfolio of mid-cap and small-cap stocks.

Piggybacking on the strategies of a successful or skilled investor is an age-old strategy. With the shareholding pattern of companies now available every quarter, it is possible to do it in India too.

Claim to fame: Rakesh Jhunjhunwala's claim to fame is his ability to pick under-valued stocks. Some of his renowned calls are Karur Vysya Bank, CRISIL and Bharat Electronics. There are, however, quite a few more.

In an interview to Capital Ideas Online in 2001, he had said that he bought the stock of Shipping Corporation at about Rs 16. He also made the point that stocks of public sector companies would deliver good returns.

He has now said that the bull-run that commenced in 2003 is only the start of an extended rally.
His portfolio: Details of his complete portfolio are impossible to get. What is, however, available is a list of stocks in which he has taken a stake of more than one per cent. His portfolio has more small-cap than mid-cap stocks.

The liquidity in many of the stocks is also quite low. As an investor, he expects liquidity to come into a stock only after it has appreciated significantly. For retail investors, low liquidity is a significant risk.

The stocks he holds are all not necessarily low P/E stocks. In a few, such as CRISIL and Geometric Software, the P/Es are higher than the market average.
By and large, however, they are value stocks — either trading at a lower P/E than that of the market or at a price-to-book ratio of less than one.

Stocks bought: Between October and December 2003, Mr Jhunjhunwala or his wife added to their exposures in stocks such as Agro Tech Foods, Bharat Earth Movers, CRISIL, Geometric Software and Lupin.

Stocks sold: During the same period, he sold part of his holdings in Hawkins Cookers, KPIT Cummins and Prime Textiles. He also appears to have liquidated his entire holdings in stocks such as Odyssey Technologies, Padamalaya Telefilms, Sarda Plywood and Elecon Enginering.
Though Mr Jhunjhunwala holds a number of stocks, it may be better to focus more closely on stocks that he bought during a quarter. This is because such purchases represent continuing faith in the prospects of such stocks.

In addition, he holds stake in several loss-making companies. He may be holding on to such stocks because he is unable to sell. When asked about stocks such as Schlafhorst Engineering, TCI and Integra Hindustan, he said that he is allowed to make mistakes. Investors, too, may need to avoid such stocks.
Investors also need to remember that piggybacking on Mr Jhunjhunwala's portfolio is not a sure-fire prescription to earn above-average returns. Mr Jhunjhunwala himself believes that a strategy to follow in his footsteps may not work.

He suggests that investors need to hold stocks through periods of uncertainty to make money, and investors usually do not have such patience.

Notwithstanding the discouraging view expressed by Mr Jhunjhunwala, such a strategy could still be a useful tool to identify stocks that you are comfortable with for inclusion in your portfolio. ( source - businessline )

Hot Stocks for this week

Here are the five stocks for this week expected to give handsome returns. All the stocks picked are based on the fundamental , result expection, and momentum of the market.

1. Hanung Toys-------( cmp . 129 target 145 )
2. XLTL--------------( cmp . 127 target 140 )
3. Ansal Properties---( cmp . 483 target 540 )
4. Mphasis -----------( cmp . 290 target 320 )
5. Crisil---------------( cmp . 3059 target 3500 )

With a gain of more than two percent in both the sensex and nifty and the continuation of the momentum it is highly likely that sensex will hit the 14,200 level in very short term so if someone buys the stocks at this level he can surely sell them at higher level and have the profit in hand and wait for the next opportunity.