Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Sunday, June 21, 2009

Omaxe Ltd and Sobha Developers Ltd:-Future growth prospects and outlook

1)Scripscan:Omaxe Ltd
cmp:98
Traded in:Nse-bse

Story:Omaxe"ss debt to equity ratio remains high at 1.13x with gross debt amounting to Rs 1,700 crore, of which Rs 99 crore is payable to Indiabulls Financial. The company is working on restructuring substantial portion of its debt. Average interest cost is down to 14%; however, I see high debt levels adversely impacting earnings, with overall profitability under pressure.Omaxe"ss over-dependence on North India raises risks of a pre-sales slowdown with sluggish demand environment and tight liquidity conditions resulting in significant execution delays. With a move in the right direction, response to these projects will be crucial. Factoring in easing liquidity, lower cost of capital of 14% and roll-forward to March-10E, The scrip looks only good at sub 60 levels.I believe the company"ss fundamentals are still weak, with the stock up 150% over the last three-four months.

2)Scripscan:Sobha Developers Ltd
cmp:214
Traded in:Nse-bse

Story:As of 31 March 09, Sobha?s net debt is Rs 1900 crore and current market cap is Rs 1300 crore.Hence, significant equity dilution is necessary to improve its balance sheet.Unlike peers, its a laggard in raising equity and probably does not have assets that are monetisable in these liquid markets. Its major markets are yet to show demand buoyancy. While Sobha has been able to reschedule its debt and sell stake of project; its ability to raise equity at parent level has yet to bear fruit.It has proposed to raise a Rs 1,500-crore funding compared to its net debt of Rs 1900 crore as on 31 March 09 and current market cap of Rs 1300 crore.With improving liquidity, I reduce weighted average cost of capital by 100 bps to 17.5 and reduces the discount to gross asset value from 55% to 50%. I then exclude liabilities to arrive at the revised target price of Rs 90 for its real estate business. By adding Rs 59 for its other businesses, the target price results in Rs. 149.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner