1. V Valuehunt
Morning Notes – 04 January 2013
Market Commentary
Price to Earning (P/E) ratio – is it an effective tool for finding undervalued stocks?
In our first morning note for the year 2013, we mentioned that Bombay Stock Exchange (BSE) market index SENSEX’s Price to Earning (P/E) is
17x. This means Indian market is trading at 17 times the earnings of top thirty companies in this country. In simple words, if there are
constant earnings for the next 17 years by all these companies, investor will recover his cost of investment at the end of 17th year. There can
be two other scenarios – one, earnings can grow at certain positive rate or two, earnings can grow at negative rate. When P/E ratio is more,
the growth in its earnings is remote possibility. But when the same ratio is low, there is lot of possibility of upside movement in the market
price. Hence it is better to invest when P/E is low but when other fundamentals are strong and sound.
CP-Artha Model Portfolio
Our holdings:
1. Gujarat State Fertilizers & Chemicals Ltd
2. FDC Ltd
3. Menon Bearings Ltd
4. Jindal Poly Films Ltd
5. Parrys Sugar Industries Ltd
6. Kilitch Drugs India Ltd
7. Fairfield Atlas Ltd
8. Liberty Phosphate Ltd
9. Rossell India Ltd
Contact Us:
E-Mail : dhananjayan.jayabal@cp-artha.co | Mobile : +91 96294 74080

2. V Valuehunt
Morning Notes – 04 January 2013
Global Indices Nifty Movement FII & DII Turnover Currency
Close Change 6,100
Points 6,009 Buy Sell Change (%)
Price (%) 0.27%
FII (Rs.mn) 30,895 16,921 INR - USD 54.49 Unch
Nifty 6,009 16.2 0.3
Nifty
5,900 Change (%) 32% 37% INR - EUR 71.01 (1.8)
Sensex 19,764 50.5 0.3
DII (Rs.mn) 9,965 19,024 INR - GBP 87.61 (1.5)
Nikkei 10,395 72.2 0.7
Change (%) (22%) 13% JPY – USD 87.67 0.6
Straight Time 3,225 23.1 0.7
5,700
Hang Seng 23,388 85.6 0.4 **FII – Foreign Institutional Investor
27-Dec-12 3-Jan-13
**DII – Domestic Institutional Investor
Shanghai 2,269 35.9 1.6
FTSE 100 6,047 19.9 0.3
CAC 40 3,721 (12.7) (0.3) Special Situation Stocks
DAX 7,756 (22.3) (0.3)
DJIA 13,391 (21.2) (0.1)
S&P 500 1,459 (3.0) (0.2)
Company Special Situation Comments
NASDAQ 3,100 (11.7) (0.4)
Genus Power Demerger Company approved Scheme of Arrangement
Infrastructures Ltd ("Scheme") for amalgamation of Genus Paper
Sectoral Indices Products Limited with the Company and demerger of
'Non Power Infrastructure Undertaking' of the
Close Price Change (%)
Realty 2,194 1.1
Company into Genus Paper & Boards Limited
Oil & Gas 8,764 1.4
Metal 11,405 0.2
Bankex 14,682 (0.1)
Capital Goods 11,105 (0.4) Nouveau Global Demerger Company decides to raise Rs 100 crores by way of
Power 2,023 (0.1) Ventures Ltd equity or debt and to discuss future plan of Nouveau
IT 5,744 1.1
Global Ventures Ltd after the demerger of the two
Auto 11,621 (0.1)
FMCG 5,901 (0.5) division of the Company (Nouveau Global Ventures
HeathCare 8,193 0.1 Ltd) i.e. Agriculture division into Pearl Agriculture Ltd
and Electronics division into Pearl Electronics Ltd
Contact Us:
Contact Us:
E-Mail ::dhananjayan.jayabal@cp-artha.co | Mobile : +91 96294 74080
E-Mail dhananjayan@artha-cap.com | Mobile : +91 96294 74080

3. V Valuehunt
Morning Notes – 04 January 2013
Nifty Gainers Headline News
Economic Times Business Standard
Close Change (%)
Company
Price  Why economists don't foresee stronger US growth  Technology claims Goldman Sachs MF's arbitrage schemes
Dr Reddy's Labs 1,882.30 2.43
Cairn India 327.50 2.34  2013 to be a better year for $100 bn Indian IT  Growth in mopeds, competition in SCVs key concerns for
Bharti Airtel 328.00 2.16 industry than 2012: Infosys TVS: JM Financial
ONGC 279.80 1.89  Inter-ministerial group to study TRAI
DLF 238.90 1.57
 Mukesh Ambani 18th richest man in world: Bloomberg
recommendations on broadcasting
 Court takes cognisance of defamation plea against Jindal
 CCI approves stake buy by PNB in MetLife India
 Gold loan firms rally on hopes of higher LTV ratio
Nifty Losers  Punj Lloyd arm bids for construction biz
 JLR to meet sales expectations: BofA Merrill Lynch
 JSW Steel hikes prices of all products by 2%
Close
Company Change (%)  SBI hits 52-week high
Price  Magma expects CV, equipment finance to grow
Tata Power Co. 110.15 (1.65)  Credit Suisse cuts 2013 price outlooks for US oil, gold
Lupin 608.85 (0.98)
 Suzuki Motorcycle sales up 24% in Dec
Punjab Natl.Bank 896.80 (0.96)  In tough 2012, automobile industry gets new drivers  Steel Strips Wheels surges on expectation of higher sales
Sun Pharma.Inds. 733.85 (0.95)
Hero Motocorp 1,887.95 (0.91) Business Line Money Control
 FII flows take Nifty past 6,000 to 2-year high  Sensex likely to touch 21,700 by year-end: HSBC
 Look beyond short-term pressures on profitability  Global IT spending to reach $3.7trn in 2013: Gartner
Commodity
 NTPC to order 7 m.t. additional coal in Jan  Early signs of bearish talks emerge even as equities party
Rs. Change (%)  IndianOil wants to process heavier, cheaper crude  Govt to notify 30% investment ceiling norm for LIC soon
Crude (Rs/Bbl) 5,077 0.5
 Abbott completes spin-off; biopharma co to be called
Gold (Rs/10 grms) 30,946 (0.3)  ONGC pays Rs 2,961 cr dividend to the govt
Silver (Rs/Kg) 58,738 (0.3) AbbVie
Copper (Rs/Kg) 449 (0.2)
 Disclose price sensitive info to bourses first: Sebi to cos
 Tata Power cuts supply to Rajasthan discoms for
Note: MCX near month Futures Price payment default  GoM meeting on Coal Regulator bill postponed again
Note : Click on article to read the respective news
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E-Mail : dhananjayan.jayabal@cp-artha.co | Mobile : +91 96294 74080

4. V Valuehunt
Morning Notes – 04 January 2013
Insider Trading Bulk Deal (BSE/NSE)
Shares Trans. Holdin Buy
Transaction Buy Company Client Name Quantity %
Company Buyer / Seller g after /Sale
Date /Sale Quantity %
Trans.
Zodiac Cloth INDIA CAPITAL FUND LTD S 1,840,873 175.03
Gordhan P
Baba Arts Ltd 12/12/2012 B 80,000 55.9
Tanwani
Zodiac Cloth NEMISH SHANTILAL SHAH B 405,124 175
Genus Power 17/12/2012
Vivekshil Dealers
Infrastructure - B 37,008 9.73
Pvt Ltd
s Ltd 19/12/2012 AKASH MANEK
Zodiac Cloth B 2,025,000 175
BHANSHALI
Intellivate Olumpus ** Weighted Average
Capital Construction Pvt 10/12/2012 B 51,200 5.16
Ventures Ltd Ltd
Corporate Action
Microsec 12/12/2012 Company Ex-Date Purpose Rs.
Topview Enclaves
Financial - B 20,858 15.7
LLP
Services Ltd 20/12/2012
NELCO 4-Jan-13 Dividend 1
Mohit Simmi Rajesh
4/12/2012 B 45,000 0.92
Industries Ltd Nandwani
Global Capital 10-Jan-13 Consolidation of Shares -
Surana 29/11/2012
Surana Infocom Pvt
Telecom and - B 25,594 3.36
Ltd Siemens 16-Jan-13 Dividend 6
Power Ltd 21/12/2012
Disclaimer:
Reports prepared by CP-Artha Financial Advisory Private Ltd contain selected information and do not purport to be complete. The reports based on publicly available
information and data ("the Information") believed to be accurate and complete. Possible errors or incompleteness of the Information do not constitute grounds for liability,
neither with regard to indirect nor to direct or consequential damages. CP-Artha Financial Advisory Private Ltd, their shareholders and employees are not liable for the
accuracy and completeness of the statements, estimations and the conclusions derived from the Information contained in these documents.