IPO Analyses Please

IPO Analyses Please

First of all, I want to convey a very happy and prosperous new year to all the staff members of Dalal Street Investment Journal. I have been regularly reading Dalal Street Investment Journal for the last 10 years. Please consider the following views, which I hope will help improve the quality of the product further.

1. New IPO guidance/ratings have almost stopped. Recent IPOs of CARE, PC Jeweller, Bharti Infratel were not covered in the magazine.
2. Post IPO analysis, guidance is also not found over a long period of time now.
3. You have shortened the sections on Taxation, Insurance, etc.
4. Views and rewards on the cover page and other subjects which use to be given by readers are now stopped.
5. Your feedback/guidance on investment in commodities like Gold and Silver can now be included.

- Girish Shah

Reply - We have taken note of all your suggestions and are very thankful to you for having taken the time to write in to us. As far as IPO guidance is concerned, we still do rigorous research on companies that come up with IPOs and rate them. This helps our readers in making an informed decision about investing in a particular IPO or not. Unfortunately many a times the issues do not coincide with the magazine publication date. In these cases, we put up the analysis on our website (www.DSIJ.in) for the benefit of our readers. All the three IPOs that you have mentioned above were covered by us and the analyses were put up on the website. The same is also true of the post issue analysis section. In fact, we definitely make it a point to include post issue analyses in the magazine.

Suggestions For Improvement

I have recently subscribed to Dalal Street Investment Journal. I received the issue dated December 30, 2012 (Vol. XXVIII, Issue No. 1), which was an interesting read. However, I would like to make the following comments for further improvement in the content of the magazine:

a) On page 7, in the table for Low Priced Scrip recommendations for the last one year, the names of many companies have been repeated. Although these relate to the recommendation made at different dates, but it is noted that the entry for recommendation of “United Bank of India” is appearing twice and that too with the same date.

b) In context of the ‘Financial Snapshot’ tables on pages 52 to 56, it is suggested that an alphabetical abstract of the companies may also be provided (as has been given for recommendations on Page 6), so that making reference to any company may be facilitated.

c) In the details for ‘Top 250 Mid-Cap Companies’, the ranking for dividend appears to have been made on the basis of absolute percentage of the dividend announced. In my opinion, it would be better if the ranking is based on the parameter of dividend yield or the dividend payout ratio (as a percentage of PAT). The absolute dividend may be high, but when tested on these parameters, the company may rank much lower. This fact may please be given a thought.

d) Similar to the ranking for dividend, the PAT ranking is also based on absolute PAT figures while the parameter of PAT per share or PAT as a percentage of total equity may be a more appropriate figure for comparison.

I hope the above suggestions would be given due consideration and any worthwhile improvement would be adopted.

- Ajay Gupta