[image: PPFAS] <http://www.ppfas.com/> *2nd February 2009* *Inside this report...* When Pen is Mightier than Sword for Wrong Reasons...<http://www.ppfas.com/ereports/weekly/week-020309.html#pv> Income and Gilt Funds – Not worth the risk?<http://www.ppfas.com/ereports/weekly/week-020309.html#income>
Crisil Limited: Q408 & CY08 Result Review<http://www.ppfas.com/ereports/weekly/week-020309.html#crisil> Mphasis Limited: QE Jan 09 Result Review<http://www.ppfas.com/ereports/weekly/week-020309.html#mph> *When Pen is Mightier than Sword for Wrong Reasons...* Contributor: Arpit Ranka | [email protected] White collar crimes in the corporate world – where promoters and investment managers resort to circumventing regulations or, in some cases, fearlessly indulge in unethical deeds to fill their pockets at the stake of minority shareholders - are abound. As Warren Buffett very rightly observed in one of his shareholder letters, “It has been far safer to steal large sums with a pen than small sums with a gun.” Satyam Computers' fraud is only one of the many such cases, which remain undiscovered, where retail shareholders are taken for a ride. Consider, for example, that you own a grocery shop and have employed somebody to manage it for you. You have asked to him to furnish you with an overview of how the business is performing at the end of every week. At the end of the week, he provides you with some information but it does not reflect the full reality. He hides the fact that there has been a shop-lifting, inventory loss etc and gives you a misleading figure. Sooner or later, you will find out, say, when you compare the cash in the register with the cash on the books. And your reaction would be to replace the existing manager with a new one and ensure that the same mistake is not repeated again. You would drive home the point to everybody around that everyone in the shop is accountable to you for losses because you own the place. more...<http://www.ppfas.com/research/ereports/week/020309/index.php#pv> *Income and Gilt Funds – Not worth the risk?* Kavitha Menon | [email protected] Gilt and Income funds essentially invest in long dated debt issued by the government and corporates (both Public sector as well as private sector). Due to RBI measures to induce liquidity into the system as well as softening of inflation numbers, interest rates fell rapidly in the period starting September 2008. Since interest rates and bond prices are inversely related, rapidly falling interest rates led to an unprecedented rise in bond prices. The 10-year benchmark GOI paper's yield had fallen from around 9 % to less than 6 %. Income funds and gilt funds gave returns as high as 30 % to 40 % annualised in a matter of a few weeks. Thus started the pedalling of income funds as the next best thing for superior returns. Most Mutual funds were betting on further cutting of key rates by the RBI and softening inflation numbers. They expected yields to fall below the 5 % level plus yield compression between government bonds and corporate bonds, thus resulting in potential double-digit returns. more...<http://www.ppfas.com/research/ereports/week/020309/index.php#income> *Crisil Limited: Q408 & CY08 Result Review* Jigar Valia | [email protected] Crisil has reported decent but lower than expected results for the last quarter & the fiscal of 2008. Crisil concluded the year with an reported EPS of Rs. 194.6, a good 68% increase over the previous year. This is very good even if one factors some impact of the sale of 90% stake in Gas Strategies. The results are however lower than our estimate of Rs. 202 for the full year. It was basically the staff expense which grew significantly by 37% sequentially amidst a flat topline performance sequentially. The impact of this is also reflected in the bottomline which is down 21% sequentially. However the other expenses * taxation were lower than anticipated and has provided some buffer. Crisil will be distributing Rs. 70 as dividends for the fiscal. more...<http://www.ppfas.com/research/ereports/week/020309/index.php#crisil> *Mphasis Limited: QE Jan 09 Result Review* Jigar Valia | [email protected] For the quarter ended January 2009, Mphasis reported a topline & bottomline growth of 58% & 270% respectively. For the reported period of one month (October 2008), Mphasis has delivered a topline & bottomline growth of 50% & 237% respectively. For the 7-month period for the current fiscal, Mphasis has reported a topline & profit growth of 41% & 111% respectively. For the 6-month ending September 2008, sales & profits grew at 39% & 88% respectively. This reflects the extent of tremendous improvement in the growth rate itself for Mphasis. The results are extremely good even if one considers that this relatively under-hedged company gained on account of the soft INR. What we perceive is that there has been a sharp improvement in the revenues as well as margins of the Applications division as well as the ITO division. Debtor days & other data points have been consistent & there is no noteworthy change. Mphasis had changed the quarter and financial year to November- October with effect from 1 November 2008 to align to the financial year of HP, consequent to the merger of EDS with HP. more...<http://www.ppfas.com/research/ereports/week/020309/index.php#mph> Click here to view full report<http://www.ppfas.com/research/ereports/week/020309/index.php>| Download PDF <http://www.ppfas.com/pdf-docs/research/week-reports/2009/wr020309.pdf>| Download PPFAS Screensaver <http://www.ppfas.com/whats-new/index.php> If you have a query please email us at [email protected]. We would be glad to answer any queries with regard to this report. If for any reason you want to come out of our mailing list, click unsubscribe <[email protected]?subject=unsubscribe>. *Parag Parikh Financial Advisory Services Limited* 130/132, Great Western Building, 1st Floor, S.B.S. Marg, Near Lion Gate, Fort, Mumbai - 400 001 INDIA. Tel : 91 22 2284 6555 Fax : 91 22 2284 6553 -- Regards, Anuj Anandwala Analyst I Investment Research Parag Parikh Financial Advisory Services Ltd. Tel: 022 2284 6555 URL: www.ppfas.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
