ha ha ha ha haaaaaaaa. hope u are enjoying the fall. hah hahahah ha hha ha ha ha ha haaaaaaaaaaaaaaaaaaaa.

swamy.
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hi usgoel,
i am fully agreeing with your views on hdil. but the problem is they are sitting on a huge debt of 3,000+ crores. thats their biggest disadvantage...which will drive down its price further down. there are some strong bears in this counter thats why its falling so sharply. otherwise how can any stock fall so much yaar. may be after half yearly results the stock price will recover. its a steel buy at current levels i feel.

swamy.
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yup u are right. even i took a look at the way US stocks are crashing. its heartening to see sharp falls like 15-25% in US stocks. and MON is at its 52 week low there. dsp ml gave a downgrade rating and immediately the ceo of the company gave it back in style by upgrading the guidance. followed by overweight rating by jp morgan and goldman sachs. that shows how strong a company this is. i feel its a steel buy at current levels for long term. yup if it goes down to 1100-1000 levels its only a bonus/discount :) festival offer :) hehe...just kidding. yup the markets are looking scary worldwide. dono what will happen in future also yaar. first time, the situation is looking so gloomy. some people are setting crazy targets like 5k, 8k etc. i am worried ... but long term people need not worry right?
that too people holding bluechips should not panic at all. i feel markets are likely to stabilise in the near future.

swamy.
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dude, did u see, it has gone down below its bv.
what i said was correct i guess.

swamy.
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first try to find out how many acres of land Bombay dyeing is holding. even i am interested to know their land bank. then lets see whether we can buy or not. can u work with me. i will help u in analysing this stocks true value. i feel we can buy at current levels, but let us first try to value their land bank. can anybody help us in knowing howmuch land bank this company holds?

swamy.
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Better mix

The changed profile has left Monsanto with a business that is less import-intensive and volume-driven; with significant scope for improvement in profit margins (currently at 24 per cent).

The strong growth in the seeds business has already made up for recent divestitures; with the company recording profits after tax (leaving out exceptional items) of about Rs 64 crore in 2007-08, on sales of Rs 384 crore, re-establishing the earlier growth trajectory.

High margins and strong operating cash flows in recent years have ensured a zero-debt status for Monsanto India, with the company not taking recourse to any infusion of capital either equity or debt over the past ten years. This provides further justification for a valuation premium for the stock, in the current scenario of tight credit and rising interest costs.

Risks

The key risks to investors in the Monsanto India stock arise from the regulatory and weather-related risks that characterise the seeds business. In this context, the controversial Bt Cotton business, which Monsanto is usually associated with, is not part of the listed entity and is vested in a separate joint venture. Several MNCs in the agrochemical space have sought to delist their Indian arm. Such a move remains a possibility for Monsanto India as well. The Indian arm could also be impacted by any strategic decisions taken by the parent....

Business Line
Monsanto India: Buy
Aarati Krishnan


Investors with a two-three year horizon can buy the stock of Monsanto India, a leading producer and marketer of agricultural inputs.

From being a leading player in the agrochemicals business which is subject to high competition and pricing pressures Monsanto India has increased its presence in the lucrative hybrid seeds business, targeting crops such as corn, cotton and oilseeds.

More India business stories

The market for hybrid seeds offers potential for strong revenue growth and high margins.

Access to the research efforts and brand portfolio of the parent, which is a global leader in seeds and traits, is a strong competitive advantage in a business where investments in R&D and the gestation period to develop new strains, present the key entry barriers. At the current market price of about Rs 1,594, the stock trades at a price-earnings of about 14 times its estimated earnings for FY09.

This appears justified, considering the high domestic growth potential of the seeds business, the premium valuations enjoyed by life-sciences companies globally and Monsanto’s strong balance-sheet. Any decline in stock price to Rs 1,400-1,500 levels linked to broad markets would present an even better opportunity to add the stock to your portfolio.

Given the relatively low trading volumes in the stock, timing your purchases carefully may be necessary to maximise returns.

Restructuring for focus

After managing a consistent year-on-year growth in both sales and profits in the five years to 2004-05, Monsanto India saw its growth rates falter over the next two years, as it dramatically restructured its business. It forged a gradual exit from the more competitive and price-sensitive segments of the herbicide business and re-aligned its portfolio more closely with that of the parent — which is focussed mainly on seeds and traits.

Monsanto divested its Leader herbicide in 2006 and herbicide brands such as Machete, Lasso and Fastmix (Butachlor and Alachlor) in 2008. Profits of Rs 45.8 crore from some of these divestitures in 2007-08 significantly bolstered Monsanto’s net profit; this was distributed to shareholders through a special dividend of Rs 180 per share in 2008.

Cashing in

This restructuring has left Monsanto with hybrid seed brands — Agrow and Dekalb and the Roundup herbicide business, all of which are leading products in the parent’s portfolio.

Over the past year, specific focus has been placed on Dekalb corn hybrids where Monsanto’s seeds target traits such as higher yield, oil content and longer shelf life. Corn is a very lucrative target crop in the Indian market and allows seed marketers to charge a significant price premium. Rising global prices for corn spurred by bio-fuel related demand and increasing use of corn by the food processing and animal feed industries has led to strong export as well as domestic demand for Indian corn.

High prices, combined with a short cycle, make corn an attractive cash crop for the farmer, paving the way for rapid adoption of hybrids (40 per cent of planted area) in the domestic market. Monsanto already claims a 39 per cent share of the corn hybrid market in India and hopes to further increase its share by targeting new regions (Northern states have lower rates of hybridisation than the southern ones) and traits.

In this respect, access to the parent’s product and research library lends a significant edge to Monsanto over other domestic players. Expansion in other target crops such as cotton and soybean also offers growth potential.

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I have always been bearish about this stock, it being in realty sector. Thanks for your guess....

you have given true picture of biocon.none of investors of biocon should expect anything expectaculer in short term.psgs your post bonus target 500 not achieved but iam sure that 140-130 target must get with in next few trading session...

psgs, Why buy Monsanto India? When you can afford to buy Monsanto Inc on NYSE. LOL..ROFL. The way US stocks melting down, we Indians can now afford buying NYSE listed stocks. Just Kidding..But take it seriously also. Below 1000, Monsanto is appealing buy, but It may not come down to below 1000, at the most 1100+. Have you seen, stocks like Castrol, Colgate, GSK Pharma have not come down in this mkt turmoil....

Dear psgs, The pilots who would fly the airplanes in the GMR built airports would have lived in the hostels built by NCC !!! :D:D:D:D regards Sourav...

In view of the market weakness, Larsen cannot hold at current level. It should slip below 1000/- shortly....

Thanks for your views. Probably the weakness in this share may be because of its being in realty sector, which as a whole look bearish....

I`m ready with my SHORTS (duly COVERED of course), so why exit ???...