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Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Market. He is supposed to have made Rs 5000 crores by just investing Rs 5000 in Indian Stock Market. Rakesh Jhunjhunwala guru mantra to be successful in stock market is as enumerated below:

(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.

(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.

(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.

(d) One should be able to create a balance between the fear and greed.

(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.

Thus follow Rakesh Jhunjhunwala advice in stock market, BE PATIENT and grow big like Warren Buffet or this iconic man from Dalaal Street.

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Sunday, April 25, 2010

` Accumulate ` Nagarjuna Construction, target Rs 175: Kotak

Kotak Securities has recommended `` Accumulate ` on Nagarjuna Construction Company with a price target of Rs 175 as against the market price (CMP) of Rs 173 in its report dated Apr. 19, 2010.

The broking house gave the following Investment Rationale:

``The company has witnessed an excellent order inflow in fiscal 2010 with an increase witnessed primarily in buildings and irrigation related projects followed by power and international related segment. Due to higher proportion of road projects likely to be awarded in FY11, we expect FY11 to be better than FY10 in terms of order inflows. NCC also maintains its revenue guidance of Rs 48bn and Rs 55bn of revenues on standalone and consolidated basis respectively.

We maintain our revenue estimates and expect revenues to grow at a CAGR of 16.5% between FY09-FY11.Operating margins of the company have shown an improvement in 9MFY10 and correspondingly we expect operating margins to improve in FY10 as compared to FY09. We maintain our estimates and expect margins to be 10% for FY10 and FY11. With strong revenue growth and excellent margins, we expect net profits to grow at a CAGR of 23% between FY09-FY11.

At current market price of Rs 173, stock is trading at 21.2x and 19.2x P/E and 9.8x and 9.1x EV/EBITDA multiples on FY10 and FY11 estimates. Adjusted with subsidiary valuations, stock is trading at 16.3x and 14.8x P/E on FY10 and FY11 respectively.

We maintain our price target of Rs 175 based on sum of the parts methodology. Stock price rise since our last recommendation at Rs 149 makes us downgrade the stock to ACCUMULATE from BUY earlier.``

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

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