BFL - Bharat Forge Limited

Bharat Forge Limited (BFL) operates in two segments:

Forgings and General Engineering.

The main segment is Forgings.
General Engineering is a fabrication unit, which constitutes a miniscule portion of the Company's activities.

As of March 31, 2009, BFL had manufacturing operations with four plants in India, three plants in Germany, two plants in China and one plant each in Sweden, Scotland and the United States.

Bharat Forge Limited (BFL), the flagship company of the USD 2.4 billion Kalyani Group, manufactures various forged and machined components for the automotive and non-automotive sector.

Since commencement of operations in 1966, BFL has achieved several milestones and is today among the largest and technologically most advanced manufacturer of Forged & Machined components. As one of India’s emerging multinationals, the company has manufacturing operations across 12 locations and 6 countries - 4 in India, 3 in Germany, one each in Sweden, Scotland, USA & 2 in China.

Our customers include the top five Passenger Car & top five Commercial Vehicle Manufacturers in the world. The list includes virtually every automotive OEM and Tier I companies.

Backed by a full service supply capability and dual-shore manufacturing model, Bharat Forge provides end-to-end solutions from product conceptualization to designing and finally manufacturing, testing and validation.

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Bharat Forge plans to raise up to $150 million (approximately Rs 730 crore) through equity or equity-linked securities to meet long-term capital requirements. Since the stock has done well to rally from its lows — it had fallen to nearly Rs 80 — to Rs 225 levels at present, it’s a good time to issue shares, even if it results in dilution of the equity base by 10-12 per cent.

While the home market for automobiles is showing signs of recovery, the weakness in the overseas markets could continue to impact the auto-parts maker probably for another year. The Rs 4,774-crore company’s revenues came off sharply in the June 2009 quarter to Rs 360 crore, a drop of 44 per cent year-on-year, with exports particularly badly hit (by over 50 per cent). That wasn’t really unexpected given the poor demand in the overseas markets.

In fact, consolidated revenues plunged 54 per cent year-on-year to Rs 600 crore. The weak top line, together with high outflows on interest and other expenses, resulted in the company posting a loss. If the Pune-based company’s revenues rose sequentially — with both domestic business and exports reporting a reasonably good growth — and if the operating profit margins showed a sequential improvement to 20.9 per cent from 14.6 per cent in the March 2009 quarter, it was largely due to some improvement in the core business, favourable currency movements and a higher contribution from the non-automotive parts division. Nevertheless, the domestic commercial vehicles market appears to have bottomed out and the demand for medium and light vehicles has been improving over the past few months.

However, it could be a while before the European and the US truck markets recover; industry watchers believe this could happen sometime in 2010-11 with the European market lagging the US market.

The company has managed to sustain margins at its overseas subsidiaries by restructuring operations but the benefits of these initiatives should come through only next year. So, it’s surprising that the stock has had such a sharp run-up; at Rs 225, the stock trades at over 20 times estimated 2010-11 and is expensive.

Bharat Electronics Limited : Company Review

BEL

Bharat Electronics Limited (BEL) is a multi-product company manufacturing a range of products in the areas of

radars,
sonars and naval systems;
communication equipments and systems;
electronic warfare and avionics systems;
command and control systems;
electro-optic devices and related systems;
tank and weapon electronics;
components, such as discrete electronic and microwave;
upgrades of equipments and systems,
and shelters.

These equipments are supplied to a range of customers, including the Army, Navy, Air Force, Paramilitary forces, Indian Meteorological Department and others.

During the fiscal year ended March 31, 2008 (fiscal 2008), 20 new products were introduced and supplied. The products include Central Acquisition Radar (CAR), Doppler Weather Radar (DWR), Artillery Combat Command & Control System, Optronic Pedestal, Briefcase Satcom Terminal, Combat Management System, Internet Protocol (IP) Encryptor, Project Prateeksha, Optical Tracking System and Space Grade Components.

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Bangalore, Aug. 24 Bharat Electronics Ltd expects to invest Rs 1,000-1,500 crore in joint ventures to create critical technologies for national security over the next three years. It is pursuing three-four joint ventures with multinational and domestic companies, BEL’s Chairman and Managing Director, Mr Ashwani Kumar Datt, told Business Line.

The defence public sector company has been in talks for technology tie-ups with Israel’s Rafael Advanced Defense Systems Ltd and Elbit Systems (NASDAQ:ESLT) Electro-optics (El-Op), Europe’s Selex Galileo and Thales, Boeing (NYSE:BA) and the Hyderabad-based Astra Microwave.

Out of the dozen possibilities under consideration, “Our target is that at least one should get decided by March 2010; and a few more during 2010-11,” said Mr Datt, who took charge of the Rs 4,600-crore company in May. “We may not need more than three or four joint ventures.”

BEL develops futuristic products for the Armed Forces that contribute 80 per cent of its revenues. Mr Datt said it had short-listed thermal imagers, ATM radars, air-borne electronic warfare systems, missile electronics and guidance systems as priority technologies to acquire through tie-ups or special arrangements.

“Over two-three years we should be investing Rs 1,000-1,500 crore for these.” Last year, it roped Bharat Dynamics Ltd and Tata Power Co into a consortium to make the Akash surface-to-air missiles on the IAF’s Rs 1,200-crore order. It has similar arrangements with ECIL and HAL and a Rs 2,500-crore solar cells venture plan with fellow PSU BHEL.
NIGHT VISION TECH

Acquisition of night-vision technologies, now available with very few countries, he said, was a priority, for which BEL was talking with Elbit El-Op and Photonis. Night vision goggles and binoculars for personnel and electro-optic systems mounted on vehicles, battle tanks, aircraft and ships give a big boost to internal security.

Potential partners had been engaged in discussions for some time now, but as owners of high technology, they preferred to have larger stakes in a joint entity than the 26 per cent FDI that the Ministry of Defence allows. This was an important issue in some of the joint venture proposals that are being discussed, Mr Datt said.

Until last year, the cash-surplus BEL planned to buy one or two technology-rich companies overseas with a kitty of Rs 50-100 crore. “We are wiser now than before that acquiring companies abroad is difficult. It is unlikely to happen.”

Last year, it enlisted KPMG to advise on new growth areas. “The aim is to create a new area that can give us business of Rs 500 crore in two years,” Mr Datt said. “We have agreed on five areas for exploration. KPMG has been retained to give us more information on the investment required, returns on it, the business potential and the mode of doing it.”

For the current year, BEL plans to invest Rs 700 crore across its production units towards new manufacturing/testing equipment and for establishing a new business venture.

A New Test Begins Here - Related Markets

I want to test that weather this is true that normally Chinese market for particular day closes and ours opens.Same way for Nikkie and Hangshang of Hongkong.. Now this markets reflects a lot for today's market condition....

The simple equation is that :

If china index is low, Nikki will be low, Hangshang will be low and there is very little chance for Our NSE or BSE sensex to outperform this global cues, very rarely market will show major correction...

So simply putting in Mind, Check global markets before starting days trading...

This is the talk of asian markets......

Now Consider foreign markets that are of US,UK,FRANCE...

when we are done at 3:55 PM on each day... and then we will be at home eating dinner and at that point FOREIGN markets will start their trading sessions...
They will also follow the asian markets ( most often the case is same )...

and when they outperform asian markets and ends up on a high note, next day at a start of a session buy some stocks, sell them at the end, the percentages of ur gaining will be lot more...

Sensex : Ended with green SIGNAL

The Sensex ended in positive terrain supported by IT, consumer durables and oil & gas stocks. Smallcap index outperformed Midcap index. It opened on a bearish note with a loss of 54.84 points, at 15,573.91 on Tuesday tracking negative global cues. After few minutes of trading in the red, the index recovered and entered into the positive territory on buying seen in index pivotals and continued to trade in the green to finally close on a higher note, touching a high of 15,735.32.

BSE Midcap and Smallcap index rose 0.58% and 1.50% respectively.

Asian stocks declined led by mining and finance companies on lower profit at Chinese companies and amid speculation loan losses in the US will increase. Japanese benchmark index Nikkei fell 83.69 points, or 0.79%, to end at 10,497.36. Hong Kong`s Hang Seng index declined 100.70 points, or 0.49%, to close at 20,435.24. China`s Shanghai Composite decreased 77.63 points, or 2.59% to settle at 2,915.80.

European stocks fell as a drop in metals and oil dimmed the earnings outlook for commodity producers and SunTrust Banks said lenders face more credit losses. UK`s benchmark index FTSE 100 fell 20.19 points, or 0.39%, to trade at 4,877.01. French benchmark index CAC 40 lost 7.30 points, or 0.20%, to trade 3,645.49. Germany`s benchmark index DAX decreased 12.06 points, or 0.23%, to trade at 5,507.32. (4:20 p.m., IST)

The Sensex ended the day with a gain of 59.72 points, or 0.38% at 15,688.47 after touching a high of 15,735.32 and a low of 15,423.39. The broad-based NSE Nifty climbed 16.55 points, or 0.36% at 4,659.35 after hitting a high of 4,672.90 and a low of 4,582.50.



Major gainers in the 30-share index were Tata Motors (7.10%), Wipro (3.86%), Reliance Industries (2.51%), Reliance Communications (2.22%), Grasim Industries (2.04%), and NTPC (1.69%).

On the other hand, State Bank Of India(2.36%), Bharat Heavy Electricals (1.76%), Bharti Airtel (1.62%), ICICI Bank (1.07%), Oil & Natural Gas Corporation (1.00%), and Maruti Suzuki India (0.95%) were the major laggards in the Sensex.

Overall market breadth was positive. Out of the total 2,816 stocks traded at BSE, 1,681 advanced, 1,060 declined while 75 remained unchanged.

Gainers in the sectoral indices were BSE IT which gained 1.92%, Consumer Durables rose 1.80%, Oil & Gas gained 1.13%, HC gained 1.08%. Among major losers in the sectoral indices - BSE Bankex fell 0.88% and PSU dropped 0.40%.



Indices Trend
Sensex Nifty
Period Value % Change Value % Change
1 Week 14,784.92 6.11 4,387.90 6.19
1 Month 15,378.96 2.01 4,568.55 1.99
3 Months 13,589.23 15.45 4,116.70 13.18
6 Months 8,902.56 76.22 2,762.50 68.66
1 Year 14,564.53 7.72 4,360.00 6.87