Slide 1 : You only have to do a very few things right in your life so long as you don't do too many things wrong – Warren Buffet
Slide 2 : Inflation touched 12.9% in August 2008
India Inc lost 58% market cap in 2008
Volatility index reached a high of 85%
Crude prices plummeted from high of US$140/bbl (July 2008) to US$40/bbl
Rupee weakened against US$ by ~25% Sub-prime hits all markets hard FII flows negative in 2008
Slide 3 : Rupee near its lowest point against the USD
FII outflows have seen their worst; domestic liquidity to improve in 2-3 quarters
Lower crude prices to result in improved current account situation
Volatility is showing signs of moderating 2009 Fall in inflation – key rates cut Market cap/GDP is now at reasonable levels
Slide 4 : India still expensive vis-a-vis other emerging markets History suggest equities fall pre-election Global economy has shown no signs of stabilising
Business confidence remains low
Earning estimates have further downsides
Economic outlook for FY11 and beyond remains uncertain
Risk appetite for equities continues to be poor
Indian equity valuations have not reached their trough yet Has market hit bottom?
Slide 5 : 2009 OUTLOOK
Advantage of investing in Bear Market : Advantage of investing in Bear Market
Is it a dream! : Is it a dream! Let's say you had invested just Rs 15,000 in Hindustan Construction back in 1998. You'd have easily made almost Rs 2,86,422 by now.
If you had invested Rs 15,000 in Pantaloon then, you'd have made around a whopping Rs 49,34,694 now!
Did you ever find yourself thinking, "I wish I had invested in Blue Star while it was still young"? Or in Titan for that matter Can you find such stocks in the current market?
Hidden Treasure? : Hidden Treasure? The Satyam debacle has brought a number of Hyderabad companies down
These companies are under researched/not covered by brokers or other research firms
Hyderabad companies after 06,Jan : Hyderabad companies after 06,Jan
Hyd companies with high foreign holdings : Hyd companies with high foreign holdings
MIC Electronics : MIC Electronics MIC Electronics designs, develops and manufacturers light emitting diodes (LED) video display systems and has also forayed into LED lighting and embedded energy management solutions for the power sector.
MIC Electronics has seen a dip of 59% in share price since the confession day .
The scrip hit an all-time high of Rs 218.56 on 27 Dec 2007 and a low of Rs 18.26 on Feb 2009
MIC Electronics : MIC Electronics MIC Electronics has a sizeable order book, and is foreseeing sizeable contracts from the Railways.
Promoters have pledged 22.07% of the paid-up capital of the company.
Promoters' stake was is 37.24% end December 2008.
The company is trading at 2 times its expected FY 2009 earning.
MIC Electronics : MIC Electronics Revenue grew 2% to Rs 180.89 crore and net profit 66% to Rs 43.90 crore in the six months ended December 2008
Divi's Lab : Divi's Lab Established in the year 1990, with Research & Development as its prime fundamental, Divis Laboratories focuses on developing new processes for the production of Active Pharma Ingredients (APIs) & Intermediates.
Divi's Lab has seen a fall of 31% since 6 January 2009
Divi's Lab : Divi's Lab Revenue dipped 7% to Rs 264.75 crore and net profit 20% to Rs 79.53 crore in the quarter ended Dec 2008 over the quarter ended Dec 2007
This is the first time in the last four years that the company reported a fall in revenue
None of the promoters has pledged any of their holding in the company.
The share price is trading at 10 times the expected earning in FY 2009
Slide 16 : Investment Horizon for MIC and Divis lab is – 2 to 3 years Thank you