Presidential Elections: Support Dr.Meira Kumar

Bihar and Jharkhand governments have no choice but to support Dr.Meira Kumar. As defeat of "Bihar ki Beti" in the hands of "UP ka Beta", will invariably bring Shame to the Biharis and Jharkhandis. So, Nitish Kumar has very little option left but to support, Dr.Meira Kumar. This might also probaly correct some of the historical mistakes of not making her father, the Prime Minister of India.

Also, I don't think all the Muslim and Christian MPs and MLAs from the TDP and TRS will ever support a RSS backed Candidate, who acted against Dalit Christian and Muslin reservations. Therefore, invariably cross voting will take place, which might give the underdog, Ms.Kumar, a win. Support Dr.Meira Kumar and make her the 2nd Female President of India.

All the best to Dr.Meira Kumar...



Sunday, February 16, 2014

Gitanjali Gems Ltd: Q3FY14 Results update
On a consolidated basis though the results were not satisfactory but still, they  the net sales of the company for the December, 2013 quarter came as Rs.2759.60 Cr as against Rs.4354.98 Cr in the same period previous year. 

The net profit of the company for Q3FY14 came out as Rs.50.46 Cr as against Rs.172.2 Cr in the same period previous year and Rs.40.6 Cr in September, 2014 quarter. This means the fundamentals of the company are slowly improving and in future we could see further strengthening of the bottomline.

Also, the EPS of the company for Q3FY14 is Rs.5.48, which is not at all bad considering the current price of the company at Rs.65.05. Now what is interesting is that the 9MEPS of the company stands at Rs.13.41, which gives minimum target price of the scrip to be Rs.84-85 in the short term and Rs.103-104 by March, 2014, giving suitable discounts. 

Those who had purchased the scrip of Gitanjali Gems Ltd, at around Rs.60-63, can continue to add the scrip on all declines. The government is expected to bring in some changes in the import duty in the next month, also, in the Vote-on-account, there could be more incentives announced for the exporters. Remember, the book value of the shares of the company is Rs.304.58, while the dividend yield is 4.61% at the CMP. Moreover, the market cap of the company, is Rs.598.89 Cr as against FY13 turnover of Rs.10380.57 Cr and 9MFY14 (Nine Months of FY14) turnover of Rs.9682.5 Cr. Therefore, the scrip looks highly undervalued, except the fact that the company is reeling under heavy debts. But, the issue of debt has already been addressed and suitable discounting given, while arriving at the required target prices. This is a high-risk-high-gain scrip for the risk taking investors.