Market Mantra

Prakash Industries Ltd moved to Rs.62.75, before cooling down a bit. I  have  been mentioning that the stock is  highly undervalued and one should buy the stock on all declines.

Allied Digital Services Ltd which ventured into a number of NEW verticals, hit the buyer freeze on the news of Dividend, before cooling down a bit. The company earlier said, the Register of Members & Share Transfer Books of the Company will remain closed from September 22, 2011 to September 29, 2011 (both days inclusive) for the purpose of Payment of Dividend & 17th Annual General Meeting (AGM) of the Company to be held on September 29, 2011. So, if one buys the stock today, he/she is entitled for dividend. The stock is now trading at around Rs.29.90. Moreover, the fall of rupee against the USD will inflate the company's overseas revenues. The company gets 70% of its revenues from the domestic market. Allied Digital Services Ltd (Allied) provides a range of IT Infrastructure services and solutions including managed services and physical and information security solutions to leading Indian and global corporations. The company has a presence in over 132 locations in India, and over 40 states in the USA, through its acquisition of Enpointe Global Services. Allied Digital Services Ltd is an ISO 9001: 2000 certified company with a global command centre certified under ISO27001:2005. Allied Digital Services Ltd. is among the few companies with a truly pan India direct presence in 132 locations across the length and breadth of the country – servicing over 40, 000 pincodes on the same day. The stock is trading at some abnormal levels and it is advisable to buy the stock and pocket dividend, as it will trade much higher in the coming days.The 52-week high for the scrip is Rs.265.10 as compared to the CMP of Rs.30.70.

Meanwile Renuka Sugars Ltd is also doing well, as the companys' overseas subsidiaries are doing well, apart from a carbon credit and rupee de-valuation story.  The sugar prices are likely to rise in the short time before the festival season kicks off in a more vigorous tone.

My earlier recommended Vision Corporation Ltd hit the buyer freeze in the morning trade. The company came out with good set of numbers for the Q2FY12. 

The Nifty is taking a support at 5060--5080 range and it needs to be seen how much can bulls hold this fort/area. The Economic Times writes, "While the Indian market is justified in being edgy given the global uncertainties, the fear of a repeat of 2008 is unwarranted. Certain stocks in this market mayhem have been battered to such an extent that they warrant attention from the long-term stock pickers, as the market is pricing in a doomsday scenario for those stocks. There are many such opportunities that can give fabulous returns over time for value investors. Investors who have a long-term horizon (two to three years) can start nibbling in this market in stock-specific opportunities in a phased manner. This approach can yield huge dividends over time. Let me explain one such opportunity in greater detail. There comes a time in life (not too often) when you find a dollar bill getting thrown at 90 cents, yet, ironically, there will be only a few takers. When fear grips the markets, crazy things do happen. It can go so far to even get you liquid cash at substantial discount. When the prevailing primary concern is "flight-to-safety", this is bizarre. Yes, in this panic-stricken market, there are many stock-specific opportunities where the market-cap is at significant discount to even the companies' liquid cash holdings. One wonders why there is no stampede at the street when it is raining gold. As someone wise remarked, maybe everyone is waiting for the stampede to confirm the worthiness of such an opportunity". Therefore, use this opportunity to buy good stocks and keep holding. I am sure you will be able to make money from the markets, even in this condition.