Hero Honda: Dividend Stock for Long Term Investment

hero_honda_logoHero Honda Motors Limited (HEROHONDA) is India’s largest 2 wheeler motorcycle manufacturer in India. It has two manufacturing facilities at Dharuhera and Gurgaon in Haryana, which produce over 3 million bikes per year. It is has largest market share in excess of 50% in Indian two wheeler segment.

One notable aspect that I personally like about HEROHONDA is its positioning in the market segment. It satisfies the vehicular needs of large number of middle class in India. It is very well positioned in a sense that recessionary trend, slow down, or increase in oil price improves its sales and revenue. This is evident by relatively stable stock during this current market turbulence since Year 2009.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2001 to 2008.

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GE Shipping: Stock Analysis for Long Term Investment

The Great Eastern Shipping Company Limited (GESHIP) through its subsidiaries, engages in the shipping business in India. The company’s shipping business involves in the transportation of crude oil, petroleum products, gas, and dry bulk commodities. It operates with a fleet of 31 tankers. Most recently, it divested the exploration and offshore services business. My objective in this analysis to see if GESHIP is a good fit for my long term portfolio


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008.

Continue reading rest of this article…

Tata Investments: Attractively Priced Dividend Stock to Invest

logo_tataTata Investment Corporation Limited (TATAINVEST) operates as an non-banking financial company. Its primary activity is to invest in long-term equity shares and other securities of companies in a range of industries. It is also engaged in management and distribution of mutual funds. TATAINVEST operates as a subsidiary of Tata Sons Limited.


One notable aspect that I personally like about TATAINVEST is its business model. This revenue and profitability comes from dividend income and profits from selling investments. Majority of its long term investments are in blue chip companies that have good cash flow and profitable businesses.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2001 to 2008.

Continue reading rest of this article…

NIFTY Expected Returns for Different Trading Time Scales

monthly-dividend-portfolio-reviewI presented a long term view about expected return for SENSEX. I mentioned that the compounded expected return was 12.1%, while the arithmetic average was 16% per year.

Today, I am discussing the short term perspective using a NIFTY index. Similar calculations can also be done using SENSEX, but I believe NIFTY is a better representation. I calculated daily returns, weekly returns, and monthly returns for NIFTY from August 2002 to May 2009. In all three cases I have used average closing value on a given day, given week, and given month. The table below shows the summary for these results.

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Royal Orchid: Stock Analysis for Long Term Investment

royal-orchid-logoRoyal Orchid Hotels Ltd. (Orchid) operates a chain of business hotels in India. It has a mix of businesses all concentrated in hospitality industry. It owns hotels assets, has interest in associate companies driven by branding, and contract management of third party hotels. It has 24 associated subsidiaries within the corporate structure.


Orchid had been on my list for further evaluation for quite sometime, but I never felt excited about the company. Recently, one of my readers (Sumi) left a comment requesting my views on this company, more so because it seems to be paying impressive dividends. My objective in this analysis to see if Orchid is a good fit for my portfolio (and hopefully it will also take care of my reader’s request).

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008.

Continue reading rest of this article…

Foseco: Stock Analysis for Long Term Investment

foseco-india-ltdc2a0-925097510sFoseco India Limited engages in the development, manufacture, and supply of metallurgical chemicals in India. The company exports its products to Asia and the Middle East. Foseco India Limited is based in Pune, India.

I was attracted to Foseco by its high dividend rupees and dividend payment in each quarter. I love the fact that company gives dividends every quarter. This is the model followed by companies in United States. My purpose of this analysis is to see if Foseco will fit into my portfolio.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008.

Continue reading rest of this article…

Asian Paints: Top Diviend Stock To Invest

ap-logoAsian Paints is India’s largest and Asia’s third largest paint company. It is a vertically integrated paint company with in-house manufacturing facility. It’s product portfolio includes wall paints, metal paints, wood finishes, primers and others. The company’s market segments include decorative and industrial coating segment. The industrial coating segment consists of automotive coating, powder coating and protective coating. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International, Apco Coatings, and SCIB Chemicals.

One notable aspect that I personally like about Asian Paints is that, it has been able to expand globally without taking on too much debt. It is able to support its expansion plan from its internal sources.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008. Continue reading rest of this article…



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