[image: PPFAS] <http://www.ppfas.com/> *4th May 2009* *Inside this
report...*
Value Investing and Behavioral Finance<#1210a0e15d7be7e1_12109f4c1aa2c3f3_vb>
Can we expect to get lucky? <#1210a0e15d7be7e1_12109f4c1aa2c3f3_pv>
ULIP (Unit Linked Insurance Plan) <#1210a0e15d7be7e1_12109f4c1aa2c3f3_ulip>
GSK Pharmaceuticals Limited: Q1CY09 Result
Update<#1210a0e15d7be7e1_12109f4c1aa2c3f3_gsk>
Fulford India Limited: Q1CY09 Result
Update<#1210a0e15d7be7e1_12109f4c1aa2c3f3_ful>
Crisil Limited : Q1CY09 Result
Update<#1210a0e15d7be7e1_12109f4c1aa2c3f3_crisil>
*Value Investing and Behavioral Finance* "Value Investing and
Behavioral Finance - Insights into Indian Stock Market Realities" the second
book authored by Mr. Parag S. Parikh (published by Tata Mc Graw Hill) is now
out on the stands.
Praise for Value Investing and Behavioral Finance. <http://www.ppfas.com/>
*Can we expect to get lucky? * Contributor: Arpit Ranka | [email protected]
Somebody once said, *“The moment I leave something on luck. It runs away.”*
One thing that has always fascinated me is the way some people overemphasize
the luck factor in life. I have thus for long tried to understand how
important is the element of chance in achieving success.
*Social Proof & Luck:*
As often happens in the free market economy if there is a demand to be met,
somehow it will be met. Thus the desire of the people to increase their
probability of getting lucky has become a great market in India, at the
least. The market comprises of astrologers mainly who always have reason for
everything that has happened to you. I don’t know if that all works or not
but I know for sure that people tend to overemphasize the utility of these
things. This reminds me of a famous quote by J. K. Galbraith,
*"This is a world inhabited not by people who have to be persuaded to
believe but by people who want an excuse to believe.”
*more...<http://www.ppfas.com/research/ereports/week/040509/index.php#pv>
*ULIP (Unit Linked Insurance Plan)* Ashish Shah | [email protected]
ULIP is a scheme, which in addition to a life cover gives you an opportunity
to make investments. It's a two in one plan that offers benefits of life
insurance plus savings. In ULIPs, a part of the investment goes towards
providing you life cover. The residual portion of the ULIP is invested in a
fund which in turn invests in stocks or bonds; the value of investments
alters with the performance of the underlying fund opted by you.
It is critical to understand how money gets invested once you purchase a
ULIP. When you decide the amount of premium to be paid and the amount of
life cover you want from the ULIP, the insurer deducts some portion of the
ULIP premium upfront. This portion is known as the Premium Allocation
charge, and varies from product to product. The rest of the premium is
invested in the fund or mixture of funds chosen by you. Mortality charges,
ULIP administration charges and ULIP fund management charges are thereafter
deducted on a periodic basis.
more...<http://www.ppfas.com/research/ereports/week/040509/index.php#ulip>
*GSK Pharmaceuticals Limited: Q1CY09 Result Update* Hiren Samani |
[email protected]
GlaxoSmithKline Pharmaceuticals Ltd., the largest MNC pharmaceutical company
operating in India reported excellent set of numbers for the first quarter
ended 31st March 2009. The MNC major witnessed its Net Operating Revenues
increase by 23% Q-o-Q from Rs. 3,748.7 Mn. in Q4CY08 to Rs. 4,609.8 Mn. in
Q1CY09. The company saw its Cost of Materials increase by more than 24%
compared to Q4CY08. However, with significant savings coming from other cost
components, GSK reported a Q-o-Q jump of 51.4% in Operating Profits to Rs.
1,683.7 Mn. The Operating Profit Margins stood at 36.5%, an increase of 686
bps over Q4CY08. GSK reported a Q-o-Q jump of more than 40% in PAT Before
Extraordinary levels to Rs. 1,254.3 Mn. in Q1CY09 from Rs. 891.6 Mn. in
Q4CY08. However, with a decline of 85% in Extraordinary Income to Rs. 178.4
Mn. as against Rs. 1,193.7 Mn., the Reported PAT for Q1CY09 stood at Rs.
1,432.7 Mn., a Q-o-Q decline of 31.3%. Extraordinary Income of Rs. 178.4 Mn.
constituted of Profit on Sale of Property & Actuarial Gain on Employee
Benefits.
more...<http://www.ppfas.com/research/ereports/week/040509/index.php#gsk>
*Fulford India Limited: Q1CY09 Result Update* Hiren Samani |
[email protected]
Fulford India Ltd. (FIL) reported dismal set of numbers for the first
quarter ended 31st March 2009. The MNC pharmaceutical company saw a Q-o-Q
decline in Net Revenues by more than 31% to Rs. 321.7 Mn. for Q1CY09. Even
though the Total Expenditure declined by more than 23% Q-o-Q, the components
of Total Expenditure – Materials Cost, Staff Costs & Other Expenses as a
percentage of Net Revenues increased in comparison to the earlier quarter,
thereby leading to an Operating Loss of Rs. 25.6 Mn. compared to an
Operating Profit of Rs. 37.7 Mn. With a 20% reduction in Other Income on a
Q-o-Q basis, the pharmaceutical company reported a Net Loss of Rs. 11.2 Mn.
vis-a-vis a Net Profit of Rs. 35.9 Mn. for Q4CY08.
On a Y-o-Y comparison, the company saw its top-line grow by a meager 2.5%
from Rs. 313.8 Mn. for Q1CY08 to Rs. 321.7 Mn. for Q1CY09. However,
Materials Cost getting dearer by more than 17% & increase in Staff Costs by
more than 39% led to a higher Operating Loss of Rs. 25.6 Mn. compared to the
Operating Loss reported for Q1CY08 of Rs. 3.8 Mn. Even with some respite
coming from the increase in Other Income by close to 28% Y-o-Y, FIL reported
a Net Loss of Rs. 11.2 Mn. vis-a-vis a Net Profit of Rs. 4 Mn. for the same
period last year.
more...<http://www.ppfas.com/research/ereports/week/040509/index.php#ful>
*Crisil Limited: Q1CY09 Result Update* Jigar Valia | [email protected]
Crisil Limited has reported a modest growth for the first quarter of the
current calender year. Crisil, a 51.5% subsidiary of Standard & Poors
reported a 3.7% Y-Y increase and a Q-Q decline of 12% in net sales for the
first quarter. However, the numbers are not purely comparable on account of
the 90% stake sale in its erstwhile wholly owned subsidiary Gas Strategies
Group Limited on December 10, 2008.
The other income reported a good increase Y-Y on account of higher forex
gain of Rs. 12.96 Mn. versus Rs. 8.78 Mn. last year. Also the company had
interest accruals on Bank FDs as against the earlier policy to invest mainly
into mutual funds, where there would be no accrual & income would be booked
only upon actual sale.
more...<http://www.ppfas.com/research/ereports/week/040509/index.php#crisil>
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Financial Advisory Services Limited*
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Fort, Mumbai - 400 001 INDIA.
Tel : 91 22 2284 6555 Fax : 91 22 2284 6553
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Regards,
Anuj Anandwala
Analyst I Investment Research
Parag Parikh Financial Advisory Services Ltd.
Tel: 022 2284 6555
URL: www.ppfas.com
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