Market matrix – Funding Tata Motors and DLF

By krsna Khandelwal – A veteran market analyst

Friends,

The Tatas are going to reduce the size of issue for funding the Tata Motors future projects as they suspect that the sluggish market may not respond rightly. They would be footing part of the bill themselves and may sell some of their stake held in TCS, which is still substantial. TCS is a poor performer in market for this reason while it is in fine fettle. You may consider buying in to this scrip on down days. You may recall that at the high level of TCS, I had warned of this very possibility and around the time of Tata’s take over of CORUS.

Now, there is one more group, which is trying to fund the future need for funds by letting the promoter stake diluted. The DLF would be issuing securities worth about Rs 10,000 crores in form of ADRs/GDRs and when this exercise is over DLF would have become good bet for investment and is so right now if bought on down days. It seems DLF is going to be a company substantial in size of operation and a world level player.

Both the above cases are good examples of Indian markets and Indians companies maturing in to securing world-class status.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Buy TATAMOTORS on declines for long term

TATAMOTORS @ 415 on 30/07/08 gets 961 panch-tattva points. It is to be bought for long term in a few strokes on days when it declines.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Stock Matrix – Tata Motors and L&T

By krsna Khandelwal – A veteran market analyst

Friends,

TATAMOTORS has decided to raise Rs 7200 crs for funding the JLR acquisition. It will be diluting the present equity and will be offered as rights in three types of instruments. It is step in right direction for it will safeguard the future of Tata Motors on one hand and since the JLR business will be a separate business owned by Tata Motors , the fruits will be all for TMs and without the liability beyond the initial contribution that too from the freshly raised equity. Needless to say that the TM will have tax saving on the interest out go till the conversion of debentures in to equity.

L&T has posted good results for the last quarter ended March 08. The top line growth assures that the infrastructure spending is growing whatever the impressions be.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

TATAMOTORS @ 623 on 15/04/08

TATAMOTORS @ 623 on 15/04/08 gets 1112 panch-tattva points and may be bought for medium term

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix – Jaguar Land Rover deal by Tatas

By krsna Khandelwal – A veteran market analyst

Friends,

Tatas have clinched the Jaguar Land-Rover deal and it is going to be consummated in about three-four months. The price paid seems to be alright and is modest $2.3 bn but payable in all cash. The Tata group as well as its advisers must have seen the pros and cons and there are some benefits there for Tata Motors which fit in to their grand design of being a world class auto manufacturer.

It all adds a feather to the Indian cap but the share holders of Tata Motors would have to suffer for this glorious venture rather adventure of Tatas. Earlier the Corus deal cost heavily to the Tata Steel shareholders and it is now a confirmed reality. Long term may turn out in whatever way but the near term loss of this magnitude should not be downed the throats of powerless shareholders. As conveyed to you on many occasions earlier, the Tata group under leadership of the great Ratan wants to be as much out of India as here in terms of business presence . This is a clear dis-advantage for India as it is crying for investment to harness the true potential of the teeming millions who have capacity to give back incremental return on each of the further invested unit of capital. This is not possible else where in the world , at least in the present scenario. I would have preferred if Tatas had floated a new company here for the acquisitions abroad and asked for subscription from the willing people as well as chipping in their own funds . It would have been fair and justifiable. I think the robust cash flows in the Tata group companies and the taxability of the profits may have forced them into the arrangements presently made. As the Tatas have been conscientious business group for over a century, I can not accuse them of blatant disregard of shareholders interests.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

TATAMOTORS Stock Timeline

TATAMOTORS @746 (01/11/07) gets 941 panch-tattva points and may be sold on surges and bought on declines but moderately.

TATAMOTORS @667 (01/08/07) gets 939 points and may be bought on declines for long term.

TATAMOTORS @741 (18/05/07) gets 949 points and is only to be picked up on declines.

TATAMOTORS @719 (28/03/07) gets 911 points and still does not qualify for investment. It is, however, good to pick up after another 5% fall from this stage.

You may recall here that during last three quarters this scrip was not recommended for purchase although it belonged to mighty Tata Group and had been going strong on every front. The real issue is of giving the price for the right strength. Panch Tattva Stock Teknik has proven to be the master at such evaluation. In the mean time Tata Motors is busy acquiring residual stake in an Spanish Company and this is good development. Tata Motors have market all over world and therefore it is good foot hold that they would get by acquisitions which will work as distribution base in those markets.

TATAMOTORS @869 (15/02/07) gets 878 points and it still does not qualify for investment,best is to wait till next quarterly.

TATAMOTORS @950 (23/01/07) gets 929 points and therefore should be sold off for the time being,this should be bought back at around 870/-.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Panch Tattva Points: Post Result as on 1 Nov 2007

By krsna Khandelwal – A veteran market analyst

BHARTIARTL @ 940 (011107) gets 985 panch-tattva points and is OK for purchase after correction, for long term. Better buy in a few strokes when down.

TATAMOTORS @ 746 (011107) gets 941 panch-tattva points and may be sold on surges and bought on declines but moderately.

HINDALCO @ 187 (011107) gets 1091 panch-tattva points and may be bought for up to next result, book profit partly on surges.

HINDUNILVR @ 193 (011107) gets 873 panch-tattva points and may be bought on declines for long term in a few strokes, book profits partly on surges.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Panch Tattva: Post Result: TATAMOTORS, BEL, VSNL,HINDALCO, RCOM, AMTEKAUTO

By krsna Khandelwal – A veteran market analyst

Friends,

Please note the Panch Tattva post result points for the following:

TATAMOTORS (01/08/07)@667 gets 939 points and may be bought on declines for long term.

BEL @1635 (01/08/07) gets 681 points and may be sold off.

VSNL @450 (01/08/07) gets 858 points and may be sold off.

HINDALCO @159 (01/08/07) gets 1086 points and mat be bought on declines.

RCOM @530 (01/08/07) gets 1036 points and may be bought on declines.

AMTEKAUTO @157 (01/08/07) gets 1059 points and may be bought on declines.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Panch Tattva: Post Result: TATAMOTORS, DRREDDY, JPASSOCIAT, JBFIND,MARICO, FEDERALBANK at CMP on 18 May 2007

By krsna Khandelwal – A veteran market analyst

Friends,

Please note the post result Panch Tattva points for some companies which announced results, against closing prices on 18 May 07:

TATAMOTORS @741 gets 949 points and is only to be picked up on declines.

DRREDDY @666 gets 1048 points and you may buy it for medium term.

JPASSOCIAT @671 gets 967 points and may not be bought for the time being,have a look at it only in light of Panch Tattva points after the next result.

JBFIND @119 gets 1139 points and qualifies for investment.MARICO @58 gets 788 points may be avoided.

FEDERALBANK @278 gets 1194 points and should be bought regularly and profits booked along the way.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Panch Tattva: Post Result: RCOM,JSWSTEEL,BHUSHANSTL,ANDHRABANK, UCOBANK,HLL at CMP on 30 Apr 2007

By krsna Khandelwal – A veteran market analyst

Friends,

Please note the post result Panch Tattva points and the strategy in respect of some come companies that announced their results:

RCOM @477 gets 1201 points and should be picked up for up to next result.

JSWSTEEL @582 gets 1277 points and good for medium term but to be confirmed after every result.

BHUSHANSTL @537 gets 1048 points and pick on declines in a few strokes and keep booking profits.

ANDHRABANK @81 gets 1131 points and is alright to go for it.

UCOBANK @24 gets 1183 points and is good for purchase.

HINDLEVER (HLL) @199 gets 959 points and is good for regular purchase and for profit booking along the way on part quantity.

There is welcome announcement by the Income Tax Department. There is no need to furnish the cash flow statement now along with the return by individuals. There are four prescribed forms for use by individuals as the case be . The four forms are:

1) To be used by people with only the salary and interest income.
2) To be used by people who have other source of income too but not from proprietary business or profession.
3) To be used by people who are partners in a firm but do not have their own proprietory business or profession.
4) To be used by people who have income from proprietary business or profession.

ICICIBANK would be coming out with IPO amounting Rs 20K crs by June end , 3/4 Th of which will be ADS and rest with domestic issue. Tata Motors(TM) is readying for the manufacture of armoured vehicles. This is just a right step for TM as this will create a segment which will not be affected cyclically like the other segments and would be quite profitable due to limited competition and cost advantages over the overseas manufacturers.

RBI has made the adoption BASEL II norms compulsory for the Indian Banks with foreign operations by the march 08 and for the rest by the Mar 09. This is also a step in right direction and would give the banking scrips an edge after the adoption of the same.

Nifty has gained 16% over last year by closing at 4083 on 27 Apr 07 against 3580 a year earlier.

Yesterday’s markets have given some hope of stabilising at higher point rather than getting down too deeply. Selective investment would reward the investor handsomely. The trick to success now lies in sticking to right sectors.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market