5 Stocks from 5 different sectors:-

1. Bharti Airtel (Telecom):-

2. ONGC (Oil and Gas)
3. Punjab National Bank (Banking)
4. Dr. Reddy Lab (Pharma)
5. Patni Comp. (IT)

1. Bharti Airtel:-

P/E = 16.96 (almost equal to industry P/E of 15.99)

EPS= 21.09 (good return)
Price/Book= 3.72 (low level)
Debt/Equity ratio= 0.14 (less dependence on external debt)

Advantage over others:- Greatest customer base, No effect of 2G scam which

may hit other telcos like RCom, Tata anytime.

2. ONGC:-

Healthy P/E of 12.13 as compared to industry’s 14.56

Low price/book ratio of 2.77
Paid dividend of 330% (highest among peers)
Recent years saw sharp drop in expences, net profit margin at 26.35%
Very low debt/equity ratio of 0.19
EPS= 78.39 (highest among peers)

Advantage over others:- Biggest Co. in this sector, recently Bid for 28 oil
blocks out of 34 under NELP IV.
It is going to enter the city gas business.
3. PNB:-

Very competitive P/E of 8.38 as compared to industry’s 11.37 and SBI’s

17.49
Decent EPS of 138.52
Low price/book ratio of 2.25
Return on Net Worth is 24.06 (much higher than SBI’s 13.91)

Advantage:- Rapid growth in recent years, Union problems in SBI regarding

Merger of its sister banks.

4. Dr. Reddy Lab:-

EPS= 57.95 (higher than of Sun Pharma(12.24) and Ranbaxy(27.27))

Pric/Book= 4.54 (Ranbaxy-4.62, Sun Pharma- 8.06)

In final stage of acquiring US penicillin facility

Problem in Ranbaxy- Mylan sues FDA to block Lipitor launch by
Ranbaxy

5. Patni Comp.

P/E is just 9.39 as compared to industry’s 26.11 (lowest among peers)

EPS is healthy at 50.37 (higher than HCL. TCS and Wipro)
Price/Book is just 1.93 (lowest among peers)

Positive sentiments by the news of to be acquired by i-Gate.

NASSCOM projected 16-18% growth rate for IT industry.
Buying price (on 29th March 2011):-

Bharti Airtel - 358.95

ONGC - 283.15
PNB - 1160.83
Dr. Reddy Lab - 1590.16
Patni Comp. - 473.50

End of 29th March 2011:-

Bharti Airtel - 357.75

ONGC - 284.90
PNB - 1170.00
Dr. Reddy Lab - 1600.00
Patni Comp. - 474.90

FII inflows of Rs. 500 Cr. On 28th and Rs. 1500 Cr. On 29th lead to a positive effect on
all stocks.
ONGC managed to get the Insurance Deal cheaply despite the Japan disaster. The
premium rates gone up only by 10%, while the assets have been increased by 7%.... so
a net hike of 35 only.
US increases the Crude oil output which lead to a possibility of lower oil prices in
future.
Global markets were also end on positive notes.

End of 30th March 2011:-

Bharti Airtel - 359.40

ONGC - 282.40
PNB - 1217.55
Dr. Reddy Lab - 1634.40
Patni Comp. - 475.75

Easing of oil prices lead to lower possible inflation numbers and also cools down the
interest rate fears.
Banking index gain due to the news of the government to table the banking sector
amendment bill in the parliament.
Kapil sibbal’s meeting with PM to ease the loan process to telecoms cos. lead the rise
in telecom shares as funds were almost blocked after the 2G scam.
Global markets also closed on upside trend.
Food inflation also came down to 9.5%.

End of 31st March 2011:-

Bharti Airtel - 357.40

ONGC - 291.30
PNB - 1212.70
Dr. Reddy Lab - 1639.05
Patni Comp. - 477.05

Favorable inflation data, High FII inflow lead to upward movement of the market.
Profit booking started in certain sectors mainly in banking and financial.

End of 01st April 2011:-

Bharti Airtel - 355.30

ONGC - 293.05
PNB - 1179.50
Dr. Reddy Lab - 1617.90
Patni Comp. - 474.95

Profit booking by investors and a correction was expected after a 7 days long rally.
Losses were in bank, oil & gas and IT sectors.