FORTUNE 500 - FIRMS IN INDIA

Corporate News

NEW YORK: Mukesh Ambani-led Reliance Industries has emerged as the top Indian private company on the latest Fortune 500 Global list, where the country's presence has grown to seven firms with a debut by Tata Steel.

The list, released by the US business magazine Fortune today, includes two private (RIL and Tata Steel) and five public sector companies from India, topped by Indian Oil Corp (IOC), and including BPCL, HPCL, ONGC and SBI.

IOC is the top-ranked Indian company among both private and public sectors at 116th position in the worldwide list, topped by US retail giant Wal-Mart. Besides making its debut at 315th position, Ratan Tata-led Tata Steel has also been named as the company with highest revenue growth of over 353 per cent over the past year.

Tata Steel recorded 17th fastest growth in profit among all the companies globally, Fortune said. RIL, which has been ranked at 30th in terms of revenue growth, has jumped 63 places to grab the 206th rank. SBI has been ranked at 21st place in terms of revenue growth.

RIL is ranked second after IOC among all the Indian companies and is followed by Bharat Petroleum (287), Hindustan Petroleum (290), ONGC(335) and State Bank of India (380). SBI is the seventh biggest climber among all the global companies, while RIL and BPCL have been ranked at 23rd and 50th in terms of gains from the previous year rankings.

Other companies figuring among the ten largest worldwide include Chevron (6th), ING Group (7th), Total (8th), General Motors (9th) and ConocoPhillips (10th). The US continues to have the largest presence with 153 companies, even as the number is down from 169 in the last year. China has 29 companies on the list. Besides seven Indian companies, a number of firms run by Indian-origin people have also made to the list.

These include Nagpur-born Vikram Pandit-led Citigroup at the 17th position, billionaire steel tycoon Lakshmi Mittal- promoted ArcelorMittal (39th) and Indra Nooyi-led PepsiCo (184th). Vodafone, whose Indian-origin CEO Arun Sarin is retiring this month, has been ranked 85th. Citigroup has been ranked third among the banks, while SBI is at 54th position.

PepsiCo is at third position in the food consumer products ranking. Besides, ArcelorMittal is ranked at the top in metals sector, while Tata Steel is at the 8th position. Amongst the petroleum refining companies across the world, IOC has been ranked at 18th, RIL at 23rd, BPCL at 28th and HPCL at 29th out of 39 companies from the sector present on the list. ONGC has been ranked at the 7th in the mining and crude oil production space. RIL has also been ranked at 46th in terms of return on assets.

source:- Economic Times

Gud Buying Opportunity: HOV Services

While researching some companies, I came across a very good company (HOV Services) as a good Buying Opportunity.

Below are my few research till now on the company.

Company Name : HOV Services

Listed : BSE & NSE Both

CMP 103-104

Market Cap : Rs. 130 Crore

Now My view is, company has got a Profit of Rs. 82 Crore with minority interest and EPS is 43.47

This makes HOV Services trade at a PE of Less than 3.

Individual Share holders below 1 Lacs are holding only 7% shares of the Company. Rest is with HNIs, Promoters, MFs, FIIs & Others.

Coming to the Management, I find the Pretty capable and with a great vision. I will go into deep research and insights of the same.

Now VERY IMPORTANT POINT.

Subject:

HOV Services - Outcome of Board Meeting

Announcement:

HOV Services Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 05, 2008, inter alia, has considered and approved the following: - A Material Transaction Proposal where in the Company has received an offer of approximately $ 202 million to purchase 100% of its wholly owned subsidiary HOV Services, LLC and its Hong Kong subsidiary from a Company controlled by some of Company's promoters and shareholders. On a fully diluted basis including ADR's if any, the shareholders will have the right to receive approximately $ 91 million in cash - the Company's shareholders will have the right to receive either cash of approximately Rs 170 or one share in the buyer for each share held as of the record date; the existing debt will be assumed under the terms of this offer. All shareholders as of the record date will continue to own their current shares after receipt of cash or shares in the buyer. The Company's independent directors believe this to be in the best interest of the shareholders and have recommended that the Company seek independent legal and financial advice. Upon satisfactory statutory or regulatory approvals, as required by law and subject to positive recommendation by the Company's independent advisors to Company's board of directors, the transaction will then be submitted for approval to the shareholders.

So Rs. 170 is just the value of a 100% subsidiary. What about OTHERS BUSINESS...! !!!!

Will keep you updating about it.

Please, note that please do your own research and then BUY or SELL it. I don’t hold any responsibility for the same.

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Six Reasons to Invest in India

Six Reasons to Invest in India

India is one of the hottest economies on the planet and holds tremendous profit potential for investors. No doubt in my mind.

Why? India 's economy is growing at a 9% rate, TEN times faster than the U.S. and only a couple of percentage points behind China .

And the Indian economy is not merely outgrowing the U.S. by leaps and bounds; it's also at the very epicenter of the booming natural resource markets.

There's too much happening there to cover everything in one column, but today I'll give you my top six reasons why investing in India may well prove to be a highly lucrative proposition.

For starters, consider the following ...

Reason #1: India has the fastest-growing population in the world, expanding at the rate of some 16 million per year. At that rate, India 's population will exceed 1.4 billion people and be larger than China 's by 2030.

What's more, per-capita income in India has risen steadily over the past five years, from $285 to around $550 today. That's still less than half China 's per-capita income of $1,162, but incomes are growing faster in India , at plus 8% year in and year out.

Longer-term, some studies suggest that India 's per-capita income can eventually reach six times that of China . Imagine 1.4 billion people in India who on average earn six times more than their industrious neighbors in China !

Indian Railway's trains and stations will undergo a major overhaul as part of India 's $500 billion infrastructure improvement.

Reason #2: Government investment in the country's infrastructure is soaring — jumping 9.9% from 2007. And the country needs it. Auto sales are zipping along at a 17% growth rate ... airline passenger traffic is expected to more than triple over the next five years from 14 million per annum to around 50 million.

All told, India 's government plans on spending $90 billion on industrial-related projects over the next three years including ...

• High-speed rail freight lines.

• Power plants to supply an additional 4,000 megawatts.

• Three new sea ports.

• Six new airports.

• 12 new industrial clusters, and more.

Over the next four years, by 2012, the government plans on spending a total of $500 billion to build out and improve India 's infrastructure!

Reason #3: Manufacturing now accounts for almost 30% of India 's economy. When most analysts and investors think of India , they think of agriculture, textiles, and usually its famed information technology service industry, which handles the outsourcing for hundreds of U.S.-based computer hardware and software manufacturers and telecoms.

But in fact, the single largest employer in India is the manufacturing sector, which employs more than 100 million people, more than 25% of the total employed in India , and which is growing at a very healthy 8.8% clip.

Indeed ...

Reason #4: Corporate earnings in India are growing at an astounding 35% annual rate. The 30 largest companies in the Mumbai Sensex index increased their earnings at an incredible 35% in their first quarter of this year, blowing away estimates. Revenues jumped 20%.

Of 800 publicly-traded companies, average earnings growth is a blistering 17%.

At the top, three companies doubled their earnings over the same period last year — Ambuja Cement, and telecom giants Bharti Airtel and Reliance Communications.

Manufacturing biggies such as Tata Steel and pharmaceutical company Ranbaxy Labs are also seeing their earnings explode higher. Tata Steel is expected to report a 12% increase for the quarter when it announces earnings on June 30. And Ranbaxy Labs recently reported a 19% increase.

Reason #5: Private equity investors are now putting more money in India than in China . Nearly $20 billion in private equity poured into India in 2007, a 156% jump versus '06, and 34% more than went into China in '07.

Infrastructure investments account for the lion's shares of the private equity flows into India , followed by the telecom sector, banking and financial services, and real estate.

India's Tata Moters recently launched the world's cheapest nano-car. Dubbed the "People's Car," it will sell for approximately $2,500.

Reason #6: The ballooning Indian middle class — 330 million and growing — is spending their newly-earned money, ramping up retail sales growth that should average 13% or more for the next several years.

Indian demand for telecommunications, autos, housing, financial services, jewelry — you name it, is exploding higher.

And of course, no discussion of Asia would be complete without highlighting the fact that ...

Natural Resources Also Benefit
From The Rise of India

India has some essential natural resources, but not enough to keep pace with rapidly escalating demand driven by its vigorous economic growth.

For instance ...

• India's steel industry expects growth of about 8% a year as demand nearly doubles from the current level of 36 million tons of steel per year to 65 million tons by 2012. That means huge consumption of iron ore.

• India's copper consumption stands at about 2.5% of world consumption and even less than China 's per capita consumption. But India has already had to rely on copper imports to meet demand.

As India 's emerging middle class rises, copper will meet much the same fate as it has in China . Huge demand that can push copper prices to the moon.

• Coal dominates India 's energy supply, providing more than half of its power. India 's coal consumption is expected to increase 20% in just the next two years.

• India's per-capita consumption of aluminum is less than one kilogram per year. India 's aluminum consumption can be expected to climb sharply, perhaps even more than copper.

• And then there's oil demand. Oil provides about 30% of India 's total energy consumption, and the country's net oil imports already run at more than 1.4 million barrels a day.

Oil consumption in India is expected to rise sharply, effectively DOUBLING over the next two years to 2.8 million barrels a day.

Everyone talks about the China factor when it comes to oil prices. But once Indian demand starts to really press on oil, watch what happens to the price of black gold. And Indian companies are on the leading edge of providing and distributing oil throughout the country. Ditto for natural gas.

My view: India, like China , is one heck of an economy to bet on going forward. Not only for its growth potential, but also because of its impact on the natural resource markets.

And I believe now is a great time to consider taking a stake in India , or adding to existing positions.

The timing couldn't be better considering that Indian stocks, like Chinese shares, pulled back earlier this year to what I consider bargain basement levels.

The Sensex, which jumped 47% last year to a high of 20,375, is now trading at about the 16,000 level. Take a look at my chart of the index, and the clear support levels and bottoming formation I've highlighted for you.

So here are three ways to capitalize on India 's boom:

The Morgan Stanley India Investment Fund (IIF). A closed-end fund with an objective of long-term capital appreciation, and holdings that run the gamut from energy to agriculture, to mining, pharmaceuticals, telecommunications, building materials and more.

This is a no-load fund, and its overall fees run about 1.4% per annum, less than the sector's 1.9% average.

The India Fund (IFN), another closed-end fund that is diversified across various industry sectors, and that seeks long-term capital appreciation. Total fees about 1.64%.

The WisdomTree India Earnings Fund (EPI), a great new Exchange Traded Fund that tracks the performance of 150 of India 's top companies.