Apr 25, 2010

INDIA'S GROWTH STORY BY 2012: Are you Invested or Not?

India needs total 220 GW electricity by 2012 from currently installed of 139 GW.
So we need another 81 GW of electricity.
(1000 megawatt=1gw)
As per roughly figure we need total investments of 11.35lakh crores for this. It could be classified as below,
Rs.4.95 lakh crores for power generation.
Rs. 2 lakh crores for transmission.
Rs.4 lakh crores for distribution.
Rising demand for power will boost demand of power equipments and transmission and distribution plus coal and gas.
Companies to benefit are Reliance Infrastructure Ltd for power generation and power related projects.
Kalpatru Power Transmission Ltd. for transmission and distribution lines etc.
Eimco Elecon Ltd. for earth mover equipments etc.

India is targeting to increase its port handling capacity  from 575 million tones to 1000 million tones by 2012.
For this we need 55000 crores roughly.
Mundra Port and SEZ Ltd., Pipavav Shipyard Ltd., Sical Logistics Ltd. and such other companies will benefit for this investments.

As per roughly and official figure there are 41 project with estimate of 41000 crores will be awarded.
The companies to benefit are Noida toll, IRB Infra, Roman Tarmat, TIL, Gujarat Apollo, Jkumar Infra, Gayatri Projects Ltd. etc.

Rising disposable income, young population and income growth in rural areas is boosting the retail growth.
Retail players are set to open stores in Tier 1,2,3,4 cites which will drive the growth in future.
The companies to benefit from this will be Pantaloon Retail Ltd., Shoppers Stop Ltd., Tren Ltd. and such other companies. (Please be selective while choosing investment options from this sector as not all companies’ financials are sound)

Rising disposable income, young population and income growth in rural areas is boosting the real estate sector’s growth.
The companies to benefit are Unitech Ltd, Shobha Developers, DLF Ltd., Ganesh Housing Ltd., HDIL and other companies from real estate sector selected one to one.
There are many other areas where a huge amount of domestic and foreign investment is committed and going to happen. There are railways, automobile, pharmaceuticals, banking and financials etc. areas will also witness huge growth. Due to increasing link to rural areas rural is also going to be an attractive sector.
Further Note:
              But this all doesn't mean investment in any sector or any company will earn a good return if not multibagger. Some rules for investment are always static and apply to all business and economic and market conditions. Buy a company's share offering a good margin of safety, and whose fundamentals have power to beat the expectations built into the share price of the company. You can choose to hire or consult a Portfolio Manager for this. Investing money is not opening a demate account of playing the Bull market or betting on tips. If you have a lot of money to waste then it's fine. But if your money is hard earned and you respect it then MAKE INVESTING ONE OF THE MOST SERIOUS AND TOP PRIORITY AFFAIR OF YOUR LIFE or else Don't invest Only To Later fret, repent, and blame!

At Megha Investments and Research, we have these STANDARD Ready-To-Invest Portfolios. We have SIP PMS for Then we also have advisory service for Mutual Fund investors. We also do PMS i.e Portfolio Management Service where we manage your investments. Two options viz. 3 monthly and 12 monthly are available. We also do Customized-PMS which will be based on the need and preference of the investor.

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Short-Term Delivery Trading Calls

Cairn India Ltd:
This counter is trading at around 297 levels. We recommend a buy call with a target of Rs.372. 

Biocon Ltd.:
Short term traders and investors are advised to buy and hold for a target of Rs.350. Strong fundamental and business arguments, competition scenario favours the company.

Fortis Healthcare Ltd.:
After its recent acquisition in Singapore, this company will become Asia's second largest hospital chain. Moreover Ranbaxy Group promoters at helm will drive PE expansion by big investors wanting to invest with such a promoter leadership business.
Buy for a target of 173-178 for short term and 212+ for mid term. Purely Bull market call.

Tata Power Company Ltd:
This is comparatively a low volatility counter. Sudden 2-3 consecutive days spurt make it rise 10-15%. Also slides with same frequency. Seems to be building a strong base and narrowing consolidation range and giving way to technical break outs. 
Buy with a target price of Rs.1395 and 1440.
All calls are based on fundamental, technical and other factoral analysis.
For more and regular calls Contact our Research Team on 09377008708.