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Nifty :: Counter attack type candle pattern on Mahurat treading day.. Not valid due to low volume and less treading time.. But as we draw in chart slowly-slowly Nifty heading towards strong resistance zone like, upper trend line e-c of Rising Veg & Bow Tai Diametric chart pattern upper trend line(check last weekly post).. All indicators are in extreme overbought zone with bearish divergence ... Be careful in buying at higher level and use strictly stop loss in long mid term buying. Our mid term buying S.L now revise at 5000 as closing basis.. Still short term bullish momentum intact so on 20th Oct. watch one level 5156.. Above 5156 short term intraday momentum seems up, below 5156 momentum seems down.. Our strategy for 20th Oct. up to 5125 buy in deep (S.L 5125) sell at high (S.L 5246) … Resistance for up move at 5170/5185/5200/5215/5226/5246.. Supports at 5125/5108/5077/5032/5000..

 

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The demographic shift in favour of the young and a higher floating population in urban areas translate into higher demand for pressure cookers in India.

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The company is roping in new customers through its retail chain, 'Prestige Smart Kitchen' . Rajalakshmi Sivam

Demand for pressure cookers in growing consumer markets never runs out of steam. This augurs well for TTK Prestige, the company which owns the single largest pressure cooker brand in the country. Against the 8 per cent growth reported by the industry last year, TTK Prestige reported a 17 per cent growth in its sales volumes. With the company roping in new customers through its retail chain — 'Prestige Smart Kitchen' — its auxiliary products (kitchen electrical appliances, cookware) are also doing well in the market with a growth of over 25 per cent in the last five years. The stock trades at 14 times its trailing one-year earnings. Investors can add this small-cap stock to their portfolio.
The industry Pressure cookers are a fast growing segment in the Indian consumer durables market. The demographic shift in favour of the young, an expanding working population and a higher floating population in urban areas are trends that translate into higher demand for pressure cookers in India. Makers of branded cookers are also benefiting from a shift from unbranded to branded products, as safety issues prompt consumers to opt for tried and tested products.
After starting out as a manufacturer of pressure cookers, TTK Prestige now offers complete kitchen solutions with a product range comprising non-stick cookware, rice cookers, gas stoves, kitchen hoods, kettles, sandwich toasters and many other small electrical appliances. The company is also into the modular kitchen segment.
The single largest brand The average annual production of pressure cookers over the last five years was 40 lakh units. In 2008-09, TTK Prestige, which sold 23.7 lakh units of pressure cookers, accounted for over half this number. The company has been seeing a sharp increase in sales year after year, suggesting that it has managed to gain market share.
TTK Prestige's sales have grown at an average 21 per cent in the last five years, while industry growth rates were in single-digits.
Hawkins Cookers, the only other listed player, is the company's major rival with a presence mainly in North India. However, Hawkins is much smaller, with just about half TTK Prestige's revenues. Apart from TTK Prestige, several smaller regional players such as Premier, Pigeon, Butterfly also compete in the Southern market.
However, the safety aspect does lead to strong brand preferences in the pressure cooker market, giving an edge to established players such as TTK Prestige. TTK Prestige pressure cookers are certified for safety under the Indian (ISI), German and US standards.
TTK Prestige's cookware and kitchen electrical appliances are also making headway. Their contributions to revenue rose to 15 per cent and 18 per cent in the last year from a little over 12 per cent five years ago.
The company sees considerable opportunity for expansion in these segments, with revenues set to increase sharply once these products are marketed more aggressively.
Unlike the pressure cooker market, competition in the kitchen electrical appliances segment is tough with a number of branded and large regional players in the fray as well. TTK Prestige's export sales have also been on the rise. Though the last year was challenging due to recession, exports grew over 10 per cent in 2008-09.
Expansion plans The company's current installed capacity in pressure cookers is 40 lakh units. But as it is running only at 50 per cent of its capacity, there is room for scaling up production with demand expected to rise in the coming years. The company will enjoy higher revenues as the market grows in size with no additional capex/interest.
The company's new gas stove and kitchen electrical appliances manufacturing unit in Uttarakhand, which is to begin production by March 2010, may lift margins due to excise duty and tax savings. The company has been importing a few kitchen electrical appliances for selling in the domestic market, the initiative of producing those appliances domestically now will be an advantage for the company.
Further, the company will see almost nil interest outgo from the current year (last year's interest outgo Rs 5.65 crore) as it has repaid all outstanding loans. In 2008-09, the company repaid Rs 26 crore of outstanding loans and another Rs 20.7 crore since April this year.
Supplementing its core business, TTK Prestige has 6.5 acres of surplus land in Bangalore, having shifted its pressure cooker unit from this location. This area is now being developed into a residential and office space, rentals from which will start flowing from 2012. Cash flows could be furthered strengthened from these rental incomes in the coming years.
Margins strong In the last five years TTK Prestige has reported a solid 56 per cent growth in profits after tax (as revenues rose 21 per cent). Operating margins too have improved from 6 per cent to 9 per cent in this period. Net profit margins grew from 2 per cent in 2005 to 5 per cent in the last year. There was an increase in tax outgo in the last year as the company moved to normal tax regime from MAT (minimum alternative tax).
The company enjoys pricing power to pass on raw material (aluminium and stainless steel) price increases to consumers, given its strong market position. So any steep price rise in inputs from here on may not dent profit margins. As the demand for pressure cookers is price in-elastic, price hikes will not impact off-take.
TTK Prestige has also been quite generous in declaring dividends. A minimum of 30 per cent dividend has been declared every year in the last three years

(A K Prabhakar)

Galleon's troubles already had an impact Monday in Sri Lanka, where Rajaratnam was born and is a citizen--he is also a citizen of the U.S. Many of Galleon's top holdings, including John Keells Holdings PLC (JKH.SL), Commercial Bank of Ceylon PLC (COMB.SL) and National Development Bank (NDB.SL), are traded on the Colombo Stock Exchange in Sri Lanka. That market's benchmark lost as much as 3% early Monday, and ended down 1.6%. 

Galleon Investment In India

Galleon Hedge Fund, which currently has assets under management of around $3.7 billion, has a 7.04% stake in broking firm Edelweiss Capital (as of June 2009) and a 4.61% stake in construction company Shriram EPC. The investment in Edelweiss is valued at Rs 275.6 crore, while in Shriram, it’s valued at Rs 38.90 crore. Interestingly, Edelweiss is Galleon’s fourth-largest shareholding after eBay, Apple and Google.

The hedge fund is also said to have major short positions in a leading private sector bank, a steel company, a large telecom player, a CV major and also in bank scrips that are part of the Nifty. 

The fund’s other investments in India include that in Pipavav Shipyard (0.3% of equity share capital) and Reliance Telecom Infrastructure (RTIL), both pre-IPO investments. It is, however, not known whether the fund is still invested in RTIL. (http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Galleon-may-have-little-impact-in-India/articleshow/5140277.cms?curpg=2)

Galleon Group's equity portfolio also holds relatively small positions in many large stocks, but its stakes in some smaller companies could cause ripples in the small- and micro-cap space if the hedge-fund firm is forced to quickly sell shares. So investors are advised to be cautious in above-mentioned stocks as selling pressure in them can be high.
Rajaratnam's lawyer has insisted his client isn't guilty of the charges. But investors in the group's funds could follow the lead of Rochdale Investment Management, which said Monday it was liquidating its stake in the Galleon Diversified fund. If enough investors left Galleon, managers at the firm could be forced to sell shares of companies it owns in order to meet those redemptions. Galleon could also seek to prevent investors from redeeming money immediately.

Top Galleon Holdings http://in.reuters.com/article/marketsNewsUS/idINN1921261220091019

Galleon Clients Abandon Ship http://online.wsj.com/article/SB125599945778395523.html?mod=WSJ_hpp_sections_business 

Hedge fund founder Raj Rajaratnam and executives from some prestigious US cos have been charged with the largest hedge fund insider-trading scheme ever http://www.businessworld.in/bw/2009_10_19_US_Charges_Billionaire_Rajaratnam.html

Raj Rajratnam charged in insider trading case http://prabhakar-views.blogspot.com/2009/10/galleons-rajaratnam-charged-in-biggest.html

 

SCRIP = KARNATAKA BANK LIMITED. (BSE),
SCRIP CODE = 532652,
PREVIOUS CLOSE = 164.05,
STOP LOSS = 155,
TARGET = 192.
FOR INTRADAY MOVEMENT OF THE STOCKFILTER PLEASE Click Here!
(OR CLICK THE LINK ABOVE LIVE SENSEX WATCH.)

CHART AS ON 16-10-2009

WITH A CONSIDERABLE RISE IN VOLUMES, THE STOCK HAS GIVEN A FRESH BREAKOUT IN THE LAST TRADING SESSION. THE STOCK IS IN CONSOLIDATION SINCE JUNE AND IS IN A STRONG UP TREND FROM MARCH.
THE MOVING AVERAGE AND MACD SHOW A POSITIVE CROSSOVER.
TECHNICAL ANALYSIS AND PORTFOLIO MANAGEMENT SUGGESTS THIS COUNTER GOOD FOR A SHORT TO MEDIUM TERM RANGE.
STRICTLY MAINTAIN AND FOLLOW THE STOP LOSS.