Home > Midcap Stock Ideas > Stocks Rocket-Construction in focus

Stocks Rocket-Construction in focus

Thursday, October 11, 2007 Leave a comment Go to comments

Today morning while writing to my clients, I had written the following and looks like we were very lucky to have some bets in the sector.Hope you guys are also riding the moves.

From: [mailto:sagecapital@gmail.com]
Sent: Thursday, 11 October 2007 9:41 AM
Subject: Playing the “construction” theme

Hi all,
The markets are surging ahead as a result of strong FII flows. Again- be careful with your RISK. Do not use LEVERAGE/MARGIN while holding positions.
Although the risks remain high, I am giving you some stock ideas in the “construction space”. Clearly, I am seeing a lot of buying in the sector. Couple of reasons could be(although they don’t matter!):
-Oversubscription of Maytas Infrastructure by 70 times (expected to list soon)
-Possibility of Interest rate cuts
– Huge order books

Here are some of the stocks you can consider( go with the known names):

  • Nagarjuna Construction- This is one of the best construction stocks to have in your portfolio from a longer term perspective. The stock has been trending up nicely and might take a shot at 300+ levels soon. 240-250 remain good supports for the stock.
  • BL Kashyap- The stock was mentioned sometime back by me around 1750-1800 levels. Thes tock is currently trading around 2350-2400 levels and looks very decent. The stock is slightly illiquid but a stock split should enhance the liquidity soon.
  • Punj LLoyd- The stock is breaking new highs and is currently trading at 335-340 range. The stock has been a relatively underperformer and might outperform in the medium term.
  • IVRCL- The stock has broken out of 450 levels and is looking strong. This stock has also been an underperformer and might outperform in the short term.
  • HCC- The stock looks good once it crosses the 170-180 hurdle. So keep it on your scan list.

And here is a happy response from the client:

On 10/11/07, K.S> wrote:

Rocking day for the stocks man.

NAG CON up by more than 8% and IVRCL by 11%. Morning everyone could have added it as they gave ample time before moving up.

So sitting on 8% profit now and then NAG CON.

Hope so they do not become paper profits.

Thanks buddy

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  1. jayant dani
    Friday, November 16, 2007 at 3:26 pm

    Excellent information. I was struggling to understand
    how that 500/600 rupees will gathered while conversion.

    Thanks for information.

    Another question , Can we get more share than allocated.?

    Jayant

  2. Murtaza
    Sunday, October 14, 2007 at 8:12 am

    Tata Steel Ltd has informed BSE that November 05, 2007 has been fixed as the Record Date to determine the shareholders entitled to receive the Rights Offer as mentioned under:

    1. Equity Shares in the ratio of one Equity Share for every five Equity Shares held at a price of Rs 300 per share (i.e. face value of Rs 10 each and a premium of Rs 290 per share), raising an amount of Rs 3,654 crores; and

    2. 2% Cumulative Convertible Preference Shares (CCPS) of Rs 100 each, compulsorily convertible into Equity Shares of Rs 10 each, with an indicative conversion price in the range of Rs 500 to Rs 600 per Equity Share (on an ex- Rights basis), as may be decided by the Board or the Committee thereof, to enable the Company to raise a total amount of upto Rs 6,000 crores.

    The Committee of Directors at its meeting held on October 05, 2007 has approved as under:

    a) Size of CCPS to be offered on Rights basis:

    The Company would issue CCPS of Rs 5,481 crores in the ratio of 9:10 to the existing equity shareholders.

    b. Conversion price of CCPS into Equity Share:

    The six CCPS of the face value of Rs 100 each will be compulsorily and automatically converted into one Equity Share fully paid up of Rs 10 each at a premium of Rs 590.

    c. Time of conversion:

    The CCPS will be compulsorily and automatically converted into Equity Share fully paid up on September 01, 2009 without any application or any further act on the part of the CCPS holders. There shall be no redemption of the CCPS. On conversion CCPS into Equity Shares, the Equity Share Capital would stand increased to 82.21 crores shares of Rs 10 each.

  3. Satish
    Friday, October 12, 2007 at 9:36 pm

    Is IGate a good buy now ? I read in an article today that co. has announced buyback of its shares, which could be in the range 400-450.

  4. sagecapital
    Friday, October 12, 2007 at 6:13 pm

    Shekhawat- The emails are sent as part of ‘stock ideas’ product. Please check the products page.

  5. shekhawat
    Friday, October 12, 2007 at 5:17 pm

    sir,
    kindly add my mail id in your list
    Thanking you.

  6. sagecapital
    Friday, October 12, 2007 at 5:16 pm

    Read this:
    http://en.wikipedia.org/wiki/Rights_issue
    You have to apply if you want the shares.What price are they offering?

  7. shekhawat
    Friday, October 12, 2007 at 5:12 pm

    LET ME NOW.WHAT IS SYSTEM OF ALLOTMENT OF RIGHT ISSUE. I HAVE 10 SHARE OF TATA STEEL.I HAVE RIGHT TO GET TWO SHARE IN RIGHT ISSUE.
    NOW I WANT TO KNOW THAT MUST BE I APPLY OR WITHOUT APPLYING WILL BE GET SHARE OF RIGHT ISSUE.
    THANKING YOU.

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