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kulman
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   Posted: 10/Sep/2006 at 3:26pm |
Basantjee
Great analysis about AB Nuvo! Even if you further discount your discounted valuations, this scrip could give handsome returns of min 40% from here.
In capital markets & investing, no one wants to be alone. So we keep on looking for opinions supporting our own. AB Nuvo is such a case. I have been accumulating this sub 700 levels!
Another point I want to make here is its okay to look for multi-baggers, but investors should be satisfied with a benchmark average annual return of 20 to 25% from equities. This is a reasonable figure looking at the risk over fixed income securities.
What do you feel?
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Life can only be understood backwards—but it must be lived forwards
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s_praharaj
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Joined: 10/Sep/2006
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Posted: 10/Sep/2006 at 3:30pm |
Thanx for the analysis on Aditya Birla Nuvo.
I bought some 50 shares, when it was 700.
What I find about them is, they are in highly competitive business.
Idea Cellular has to see a lot of competion in the days to come, Their Insurance business will also see a lot of competition with thinning out of the margins.Of course, they may get better revenue from Birla Global Finance and Indo Gulf Fertilisers.
Though I don't see a five bagger, I hope a modest 50% growth in two years.
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Shashi Praharaj
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kaushalchawla
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Posted: 10/Sep/2006 at 7:50pm |
Basantji,
I wanted to request you to do some analysis of AV Birla NUVO and it was done without asking.....getting some powers or what??
thanks for the analysis.
Regards,
Kaushal
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Warm Regards,
Kaushal
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omshivaya
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Posted: 10/Sep/2006 at 8:47pm |
Hehe:-) Basant jee ki JAI! 
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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basant
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Posted: 10/Sep/2006 at 9:15pm |
"but investors should be satisfied with a benchmark average annual return of 20 to 25% from equities" - I would entirely endorse that opinion.
WHen we look at stocks I doubt if any one could just puck up a stock and say " hey this is a ten bagger". The initial reaction and analysis is always on hope - the sweet four letter word. As things start unfolding this hopw turns into conviction and finally belief.
AV Birla Nuvo is not a new concept it was there for at last 3 years. that is the time period from where I have been tracking it.The Birlas and TATAs went head on on "Idea" and that disturbed the value unlocking process. Once IDea come out with an IPO the public will stand up and say hey 50% market share to Bharti let us value it at 30% to Bharti.
Once Idea gets a valuation Of Rs 24,000 crore the next question people would say if I have to pay Rs 24,000 crore to buy Idea seperately lett me within that valuation (35.74% of Rs 24,000 crore) buy Nuvo.That works out to Rs 1027 per share of Av Birla Nuvo.That means 25% then current price plus the other businesses FREE.
The call is are we prepared to wait for the IDEA IPO and my sense is we should be.KM Birla has big plans for telecom and he would need to take it public.
Idea is just one of the triggers but the most likely and immediate one.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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investor
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Posted: 11/Sep/2006 at 3:01pm |
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News from todays ET, they are planning a rights
Aditya Birla to raise $168.5 mn
MUMBAI:
India's diversified Aditya Birla Nuvo Ltd said on Monday it would raise up to Rs
7.8 billion ($168.5 million) through a rights equity issue to repay debt and for
other purposes.
Shares in the
company, which makes chemicals and has interests in financial services and
telecommunications, were down 1.3 per cent at Rs 825 in a weak Mumbai
market.
http://economictimes.indiatimes.com/articleshowcnews/1979220.cms
Basant, what effect, if any, do you think this rights issue will have?
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basant
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Posted: 11/Sep/2006 at 3:11pm |
KM Birla has big plans for retailing. He intends to spend Us $ 1 billion over the enxt couple of years to get into the retailing segment. My sense is that this venture should be done through Nuvo since it is already doing some retail sales through 1.2 lac sq feet and it brings them synergies with insurance amd telecom and more importantly the branded garments business.
This is not confirmed though.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
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Posted: 14/Sep/2006 at 9:03pm |
| Aditya Birla Nuvo to invest Rs 100cr in apparel retail |
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Aditya Birla Nuvo, which owns the Bangalore-based Madura Garments, will increase investments to improve its retail presence. The additional investments are in line with achieving a turnover of Rs 1,000 crore from retail sales of branded apparel by the end of the current fiscal.
"Over the next three years, we intend to invest Rs 100 crore to open more stores," Vikram Rao, director of Aditya Birla Nuvo said. The investment will go towards exclusive outlets for the five apparel brands and Planet Fashion Stores where all brands are available. Rao added, "We are planning 40 Planet Fashion stores in the coming years."
In the previous financial year, the company reported an income of Rs 535 crore from retail sales. "India is at the cross roads of consumerism. We are witnessing a retail revolution. By cashing in on the boom, we intend to cross the Rs 1,000 crore mark through retail sales by the end of the current fiscal," Rao added.
As part of its plans to expand its product portfolio, the firm launched ‘Van Heusen Woman’ and ‘V dot’ range of apparel brands here on Thursday. At present, sells 1.50 million garments a year of the Van Heusen brand registering a Rs 225 crore business. "These initiatives accompanied by a robust growth in premium menswear will make Van Heusen a Rs 600 crore brand over the next three years," Hemchandra Javeri, president of Madura Garments, said.
After the Aditya Birla group acquired Madura Garments six years back, the company became the owner of well known ready to wear apparel brands like Louis Philippe, Allen Solly and Van Heusen. It also retails the Esprit brand apparel and accessories.
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