Airtel to infuse Rs 6,400 crore in 3G services that brought 84% growth in data consumption in FY15

The proportion of its 3G sites increased
to 33.3% of the total in the quarter ended
March 2015, from 22.6% a year earlier.
KOLKATA: Sunil Bharti Mittal-led Bharti
Airtel is pumping in $1 billion (Rs 6,400
crore) in this financial year to ramp up
pan-India 3G coverage, expanding the
network in new and existing circles to
deploy data spectrum purchased in
March.
“Airtel will roll out 3G networks
aggressively over the first six months (of
this financial year) as it has acquired
additional 3G airwaves in many circles to
plug coverage gaps,” a person familiar
with the matter told ET.
India’s No. 1 mobile carrier will take a
call on injecting additional funds in 3G
network expansion by September end
after getting a fix on whether revenue
growth has met the target, a second
person said. “We have no comments and
as a policy do not give service-specific
capex details,” a spokesman said in
emailed response to ET’s queries on 3G-
related spending.
Airtel will aggressively roll out 3G
networks over the first six months and
“would look at upfronting this capex in the
first half ” itself, Gopal Vittal , managing
director & CEO for India & South Asia, had
said during the fourth-quarter earnings
call.
The proportion of its 3G sites increased
to 33.3% of the total in the quarter ended
March 2015, from 22.6% a year earlier,
brokerage UBS wrote in a recent report.
Airtel’s 3G drive comes as widespread
adoption of 4G is still some time away.
Industry experts believe a key reason is
creation of a robust, pan-India fallback
data services option since 4G coverage is
likely to be patchy over the next six
months or more and confined.
In its report, UBS said Airtel’s 4G rollout
could play second fiddle to 3G in absence
of compatible devices. “We believe 3G
will meet the mass market’s data needs in
India, given the wide gap between the 3G
and 4G ecosystems,” UBS said.
Prevailing technology will be 3G, felt
Sandeep Girotra , India head of telecom
gear maker Nokia Networks . “There will be
a sprinkling of 4G but only selectively
among incumbents for about a year,” he
said.

List of multi national companies from India.

1. Aditya Birla Group
      The Aditya Birla Group is a multinational
conglomerate named after Aditya Vikram
Birla , headquartered in the Aditya Birla
Centre in Worli , Mumbai , India.

Aditya Birla Group of Companies

Aditya Birla Chemicals (India) Limited
Aditya Birla Chemicals (Thailand)
Limited
Aditya Birla Financial Services Group
(ABFSG)
Birla Sun Life Insurance
Birla Sun Life Asset Management
Company Ltd.
Aditya Birla Finance Limited
Aditya Birla Money Limited
Aditya Birla Insurance Brokers
Aditya Birla Capital Advisors Private
Limited
Aditya Birla Minerals
Aditya Birla Nuvo Limited
Aditya Birla Retail
Aditya Birla Science and Technology
Company Limited
Alexandria Carbon Black Company SAE
Alexandria Fiber Company SAE
Birla Jingwei Fibres Company Limited
Birla Laos Pulp and Plantations
Company Limited
Dahej Harbour & Infrastructure Limited
Hindalco industries
Domsjö Fabriker
Essel Mining and Industries
Grasim Industries Limited
Idea Cellular Limited
Indo Phil Cotton Mills
Indo Phil Textile Mills
Indo Thai Synthetics
Liaoning Birla Carbon Company Limited
Louis Phillipe
Novelis Inc.
Pan Century Surfactants Inc.
Peter England
People
PT Elegant Textile Industry
PT Indo Bharat Rayon
PT Indo Liberty Textiles
PT Indo Raya Kimia
PT Sunrise Bumi Textiles
Swiss Singapore Overseas Enterprises
Pte Limited
Thai Acrylic Fibre
Thai Carbon Black
Thai Rayon
UltraTech Cement Limited
Utkal Alumina International Limited
Pantaloons Fashion & Retail

2. Asian Paints
            Asian Paints in South Asia (India,
Bangladesh, Nepal and Sri Lanka).
SCIB Paints in Egypt.
Berger in South East Asia (Singapore),
Middle East (UAE, Bahrain and Oman),
Caribbean (Jamaica, Barbados, Trinidad &
Tobago).Apco Coatings in South Pacific (Fiji,
Tonga, Solomon Islands and Vanuatu).
Taubmans in South Pacific (Fiji and
Samoa)

3. ICICI Bank
             ICICI Bank is an Indian multinational
banking and financial services company
headquartered in Mumbai , Maharashtra ,
India . As of 2014 it is the second largest
bank in India in terms of assets and
market capitalisation . It offers a wide
range of banking products and financial
services for corporate and retail
customers through a variety of delivery
channels and specialised subsidiaries in
the areas of investment banking, life , non-
life insurance , venture capital and asset
management. The Bank has a network of
4,050 branches and 12,642 ATMs in
India, and has a presence in 17 countries
including India.

4.Sun Pharmaceutical Industries Limited
Multinational pharmaceutical company
headquartered in Mumbai, Maharashtra
that manufactures and sells
pharmaceutical formulations and active
pharmaceutical ingredients (APIs)
primarily in India and the United States.
The company offers formulations in
various therapeutic areas, such as
cardiology , psychiatry , neurology ,
gastroenterology and diabetology . It also
provides APIs such as warfarin,
carbamazepine, etodolac, and clorazepate,
as well as anticancers, steroids, peptides,
sex hormones, and controlled substance.

5. Tata Motors
Tata Motors Limited (formerly TELCO ,
short for Tata Engineering and
Locomotive Company) is an Indian
multinational automotive manufacturing
company headquartered in Mumbai,
Maharashtra , India and a subsidiary of the
Tata Group . Its products include
passenger cars, trucks, vans, coaches,
buses, construction equipment and
military vehicles. It is the world’s 17th-
largest motor vehicle manufacturing
company, fourth-largest truck
manufacturer, and second-largest bus
manufacturer by volume.
Tata Motors has auto manufacturing and
assembly plants in Jamshedpur,
Pantnagar , Lucknow, Sanand , Dharwad ,
and Pune in India, as well as in Argentina,
South Africa, Thailand, and the United
Kingdom. It has research and
development centres in Pune,
Jamshedpur, Lucknow, and Dharwad,
India,chintalapudi and in South Korea,
Spain, and the United Kingdom. Tata
Motors’ principal subsidiaries include the
British premium car maker Jaguar Land
Rover (the maker of Jaguar, Land Rover,
and Range Rover cars) and the South
Korean commercial vehicle manufactuer
Tata Daewoo. Tata Motors has a bus-
manufacturing joint venture with
Marcopolo S.A. ( Tata Marcopolo), a
construction-equipment manufacturing
joint venture with Hitachi ( Tata Hitachi
Construction Machinery), and a joint
venture with Fiat which manufactures
automotive components and Fiat and Tata
branded vehicles.
Founded in 1945 as a manufacturer of
locomotives , the company manufactured
its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which
ended in 1969. Tata Motors entered the
passenger vehicle market in 1991 with the
launch of the Tata Sierra, becoming the
first Indian manufacturer to achieve the
capability of developing a competitive
indigenous automobile. [4] In 1998, Tata
launched the first fully indigenous Indian
passenger car, the Indica , and in 2008
launched the Tata Nano , the world’s
cheapest car. Tata Motors acquired the
South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004
and purchased Jaguar Land Rover from
Ford in 2008.
Tata Motors is listed on the Bombay Stock
Exchange, where it is a constituent of the
BSE SENSEX index, the National Stock
Exchange of India , and the New York
Stock Exchange. Tata Motors is ranked
287th in the 2014 Fortune Global 500
ranking of the world’s biggest
corporations.

6. Tata Consultancy Services
Tata Consultancy Services Limited ( TCS )
is an Indian multinational information
technology (IT) service , consulting and
business solutions company
headquartered in Mumbai , Maharashtra . [2]
[3] TCS operates in 46 countries. [4] It is a
subsidiary of the Tata Group and is listed
on the Bombay Stock Exchange and the
National Stock Exchange of India . TCS is
one of the largest Indian companies by
market capitalization ($80 billion)
and is the largest India-based IT services
company by 2013 revenues. TCS is
now placed among the ‘Big 4’ most
valuable IT services brands worldwide. [9]
In 2013, TCS is ranked 57th overall in the
Forbes World’s Most Innovative
Companies ranking, making it both the
highest-ranked IT services company and
the first Indian company. It is the
world’s 10th largest IT services provider,
measured by the revenues.

8. Tech Mahindra

Tech Mahindra Limited is an Indian
multinational provider of information
technology (IT), networking technology
solutions and business support services
(BPO) to the telecommunications industry. Tech Mahindra is a part of the
Mahindra Group conglomerate. Anand
Mahindra is the founder of Tech
Mahindra. Earlier it was known as
Mahindra British Telecom.It is
headquartered at Pune, Maharashtra ,
India. Tech Mahindra was ranked #5 in
India’s software services (IT) firms and
overall #111 in Fortune India 500 list for
2012. Tech Mahindra, on 25 June
2013, announced the completion of a
merger with Mahindra Satyam .
The combined entity has 103,281
employees, as of 2015, across 51
countries, servicing 767 customers
globally. It has 15 overseas offices for
BPO (business process outsourcing)
operations and software development. Its
revenue for 2012-13 was put at $2.7
billion (Rs. 162 billion). Tech
Mahindra has operations in more than 51
countries with 40 sales offices and 72
delivery centres. Assessed at SEI CMMi
Level 5, its Software headcount stood at
72,952, BPO at 22,693 and Support at
7,636 at the end of the financial year
2015.

9. Wipro

Wipro Limited ( Western India Products
Limited) is an Indian multinational IT
Consulting and System Integration
services company headquartered in
Bangalore, India . As of March 2015,
the company has 158,200 employees
servicing over 900 of the Fortune 1000
corporations with a presence in 67
countries. On 31 March 2015, its
market capitalization was approximately $
35 Billion, making it one of India’s largest
publicly traded companies and seventh
largest IT Services firm in the World.
To focus on core IT Business, it
demerged its non-IT businesses into a
separate company named Wipro
Enterprises Limited with effect from 31
March 2013. The demerged companies
are consumer care, lighting, healthcare
and infrastructure engineering which
contributed approximately 10% of the
revenues of Wipro Limited in previous
financial year.

Top 5 battery companies in India in terms of revenue.

               Battery companies have bright future due to increase sales of electric vehicle and the uses of robots in future

1. Exide Industries Ltd
Company Established & Founder:
Founded in 1947 by TV Ramanathan who
is also MD and CEO of the company
Manufactures: They manufacture
batteries from 2.5Ah to 20, 400Ah. Some
of the types are VRLA, Lead Acid and
tubular batteries, UPS, inverters etc. Some
of their most famous brands are Exide, SF,
Sonic and Standard Furukawa .
Revenue: Annual Revenue is around Rs
55,000 Million to Rs 60,000 Million
Manufacturing Facility: 3 in
Maharashtra, 2 in West Bengal, 1 in Tamil
Nadu and 1 in Haryana
Website: http://www.exideindustries.com
2. Amara Raja Batteries Ltd
Company Established & Founder:
Company was established in 1985.
Currently Jayadev Galla is the MD of the
company.
Manufactures: Amara Raja is one of the
largest manufacturers of lead acid
batteries for industrial and automotive
applications. They manufacture VRLA and
lead acid batteries. Their powerful brand
names are Amaron and Powerzone .
Revenue: Annual Revenue of the
company has risen from Rs 20, 000
Million to Rs25,000 Million
Manufacturing Facility: One in Andhra
Pradesh, Renigunta, the company also
exports its products to Asia Pacific, Africa
and the Middle East.
Website: http://www.amararaja.co.in
3. Luminous Power Technologies Pvt Ltd
Company Established & Founder:
Luminous Power Technologies Pvt Ltd was
founded in 1988 and Manish Pant is the
managing director of the company.
Manufactures: They manufacture
batteries in 12V to 1200Ah to 1.75vpc.
They manufacture VRLA/SMF, flat plate,
solar tubular monobloc and automotive
batteries. Popular brand names are
Electra and Racer brand .
Revenue: The revenue has increased
from Rs 10,300 Million to Rs 10,800
Million
Manufacturing Facility: Total eight
manufacturing units based in Himachal
Pradesh and Maharashtra and there is one
based in China also
Website: http://www.luminousindia.com
4. HBL Power Systems Ltd
Company Established & Founder:
Company was founded in 1977 and
Avinash Arora is the vice president sales
of the company.
manufacturerss: HBL manufactures
custom designed, high-quality, cost
effective DC power systems. HBL caters to
Aviation, telecom, railways and many other
sectors. HBL manufactures Nickel
Cadmium pocket plate, fibre plate and lead
acid batteries. Popular Brand names are
Ignite and Ride-on
Revenue: Rs 11,000 Million to Rs 11,200
Million
Manufacturing Facility: Seven units
located in all over the country.
Website: http://www.hbl.in
5. Su-Kam Power Systems Ltd
Company Established & Founder: Su-
Kam power systems was founded in the
year 1998 and Kunwer Sachdev is the
founder and Managing Director.
Manufactures: Su-Kam manufactures
over 70,000+ batteries per month. It is
present in 70 different countries. They
develop mainly back up systems like SMF,
lead acid, automotive and tubular
batteries. Su-Kam itself is a brand name
which is very popular.
Revenue: Total annual revenue is Rs
7000 million to Rs 7200 million
Manufacturing Facility: Total Seven
facilities in Baddi, HP and Nepal
Website: http://www.su-kam.com

Graham’s principle of investing in security market

Warren Buffett is widely considered one of
the greatest investors of all time, but if
you were to ask him whom he thinks is
the greatest investor, he would probably
mention one man: his teacher, Benjamin
Graham. Graham was an investor and
investing mentor who is generally
considered the father of security analysis
and value investing .
His ideas and methods on investing are
well documented in his books, “Security
Analysis” (1934), and “The Intelligent
Investor” (1949), which are two of the
most famous investing texts. These texts
are often considered requisite reading
material for any investor, but they aren’t
easy reads. In this article, we’ll condense
Graham’s main investing principles and
give you a head start on understanding
his winning philosophy.

Principle #1: Always Invest with a Margin
of Safety
Margin of safety is the principle of buying
a security at a significant discount to its
intrinsic value, which is thought to not
only provide high-return opportunities, but
also to minimize the downside risk of an
investment. In simple terms, Graham’s
goal was to buy assets worth $1 for 50
cents. He did this very, very well.
To Graham, these business assets may
have been valuable because of their
stable earning power or simply because
of their liquid cash value. It wasn’t
uncommon, for example, for Graham to
invest in stocks where the liquid assets
on the balance sheet (net of all debt)
were worth more than the total market cap
of the company (also known as “net nets”
to Graham followers). This means that
Graham was effectively buying
businesses for nothing. While he had a
number of other strategies, this was the
typical investment strategy for Graham.
This concept is very important for
investors to note, as value investing can
provide substantial profits once the
market inevitably re-evaluates the stock
and ups its price to fair value. It also
provides protection on the downside if
things don’t work out as planned and the
business falters. The safety net of buying
an underlying business for much less
than it is worth was the central theme of
Graham’s success. When chosen
carefully, Graham found that a further
decline in these undervalued stocks
occurred infrequently.
While many of Graham’s students
succeeded using their own strategies,
they all shared the main idea of the
“margin of safety .”
Principle #2: Expect Volatility and Profit
from It
Investing in stocks means dealing with
volatility . Instead of running for the exits
during times of market stress, the smart
investor greets downturns as chances to
find great investments. Graham illustrated
this with the analogy of “Mr. Market,” the
imaginary business partner of each and
every investor. Mr. Market offers investors
a daily price quote at which he would
either buy an investor out or sell his
share of the business. Sometimes, he will
be excited about the prospects for the
business and quote a high price. Other
times, he is depressed about the
business’s prospects and quotes a low
price.
Because the stock market has these same
emotions, the lesson here is that you
shouldn’t let Mr. Market’s views dictate
your own emotions, or worse, lead you in
your investment decisions. Instead, you
should form your own estimates of the
business’s value based on a sound and
rational examination of the facts.
Furthermore, you should only buy when
the price offered makes sense and sell
when the price becomes too high. Put
another way, the market will fluctuate –
sometimes wildly – but rather than fearing
volatility, use it to your advantage to get
bargains in the market or to sell out when
your holdings become way overvalued .
Here are two strategies that Graham
suggested to help mitigate the negative
effects of market volatility:
Dollar-Cost Averaging
Dollar-cost averaging is achieved by
buying equal dollar amounts of
investments at regular intervals. It takes
advantage of dips in the price and means
that an investor doesn’t have to be
concerned about buying his or her entire
position at the top of the market. Dollar-
cost averaging is ideal for passive
investors and alleviates them of the
responsibility of choosing when and at
what price to buy their positions.
SEE: Take Advantage of Dollar-Cost
Averaging and Dollar-Cost Averaging Pays
Investing in Stocks and Bonds
Graham recommended distributing one’s
portfolio evenly between stocks and
bonds as a way to preserve capital in
market downturns while still achieving
growth of capital through bond income.
Remember, Graham’s philosophy was,
first and foremost, to preserve capital, and
then to try to make it grow. He suggested
having 25-75% of your investments in
bonds, and varying this based on market
conditions. This strategy had the added
advantage of keeping investors from
boredom, which leads to the temptation to
participate in unprofitable trading (i.e.
speculating).
Principle #3: Know What Kind of Investor
You Are
Graham advised that investors know their
investment selves. To illustrate this, he
made clear distinctions among various
groups operating in the stock market.
Active Vs. Passive
Graham referred to active and passive
investors as “enterprising investors” and
“defensive investors.”
You only have two real choices: The first
choice is to make a serious commitment
in time and energy to become a good
investor who equates the quality and
amount of hands-on research with the
expected return. If this isn’t your cup of
tea, then be content to get a passive
( possibly lower) return but with much
less time and work. Graham turned the
academic notion of “risk = return” on its
head. For him, “Work = Return.” The more
work you put into your investments, the
higher your return should be.
If you have neither the time nor the
inclination to do quality research on your
investments, then investing in an index is
a good alternative. Graham said that the
defensive investor could get an average
return by simply buying the 30 stocks of
the Dow Jones Industrial Average in equal
amounts. Both Graham and Buffett said
that getting even an average return – for
example, equaling the return of the S&P
500 – is more of an accomplishment than
it might seem. The fallacy that many
people buy into, according to Graham, is
that if it’s so easy to get an average
return with little or no work (through
indexing), then just a little more work
should yield a slightly higher return. The
reality is that most people who try this
end up doing much worse than average.
In modern terms, the defensive investor
would be an investor in index funds of
both stocks and bonds. In essence, they
own the entire market, benefiting from the
areas that perform the best without trying
to predict those areas ahead of time. In
doing so, an investor is virtually
guaranteed the market’s return and avoids
doing worse than average by just letting
the stock market’s overall results dictate
long-term returns. According to Graham,
beating the market is much easier said
than done, and many investors still find
they don’t beat the market.
Speculator Vs. Investor
Not all people in the stock market are
investors. Graham believed that it was
critical for people to determine whether
they were investors or speculators . The
difference is simple: an investor looks at
a stock as part of a business and the
stockholder as the owner of the business,
while the speculator views himself as
playing with expensive pieces of paper,
with no intrinsic value. For the speculator,
value is only determined by what someone
will pay for the asset. To paraphrase
Graham, there is intelligent speculating as
well as intelligent investing – just be sure
you understand which you are good at.
The Bottom Line
Graham served as the first great teacher
of the investment discipline and his basic
ideas are timeless and essential for long-
term success. He bought into the notion
of buying stocks based on the underlying
value of a business and turned it into a
science at a time when almost all
investors viewed stocks as speculative. If
you want to improve your investing skills,
it doesn’t hurt to learn from the best.
Graham continues to prove his worth
through his disciples, such as Warren
Buffett, who have made a habit of beating
the market.

Thinks to learn from Walter schloss

Walter Schloss
1. “I think investing is an art, and we
tried to be as logical and unemotional as
possible. Because we understood that
investors are usually affected by the
market, we could take advantage of the
market by being rational. As [Benjamin]
Graham said, ‘The market is there to
serve you, not to guide you!’.” Walter
Schloss was the closest possible match
to the investing style of Benjamin Graham.
No one else more closely followed the
“cigar butt” style of investing of Benjamin
Graham. In other words, if being like
Benjamin Graham was a game of golf,
Walter Schloss was “closest to the pin.”
He was a man of his times and those
times included the depression which had
a profound impact on him. While his
exact style of investing is not possible
today, today’s investor’s still can learn
from Walter Schloss. It is by combining
the best of investors like Phil Fisher and
Walter Schloss and matching it to their
unique skills and personality that
investors will find the best results. Warren
Buffet once wrote in a letter: “Walter
outperforms managers who work in
temples filled with paintings, staff and
computers… by rummaging among the
cigar butts on the floor of capitalism.”
When Walter’s son told him no such cigar
butt companies existed any longer Walter
told his son it was time to close the firm.
The other focus of Walter Schloos was
low fees and costs. When it came to
keeping overhead and investing expenses
low, Walter Schloss was a zealot.
2. “I try to establish the value of the
company. Remember that a share of stock
represents a part of a business and is not
just a piece of paper. … Price is the most
important factor to use in relation to
value…. I believe stocks should be
evaluated based on intrinsic worth, NOT
on whether they are under or over priced
in relationship with each other…. The key
to the purchase of an undervalued stock
is its price COMPARED to its intrinsic
worth.”
3.”I like Ben’s analogy that one should
buy stocks the way you buy groceries not
the way you buy perfume… keep it simple
and try not to use higher mathematics in
you analysis.” Keeping emotion out of the
picture was a key part of the Schloss
style. Like Ben Graham he as first and
foremost rational.
4. “If a stock is cheap, I start buying. I
never put a stop loss on my holdings
because if I like a stock in the first place,
I like it more if it goes down. Somehow I
find it difficult to buy a stock that has
gone up.”
5. “I don’t like stress and prefer to avoid
it, I never focus too much on market
news and economic data. They always
worry investors!” Like all great investors
in this series, the focus of Schloss was
on individual companies not the macro
economy. Simpler systems are orders of
magnitude easier to understand for an
investor.
6. “The key to successful investing is to
relate value to price today.” Not only did
Schloss not try to forecast the macro
market, he did not really focus forecasting
the future prospects of the company. This
was very different than the Phil Fisher
approach which was focused on future
earnings.
7. “I like the idea of owning a number of
stocks. Warren Buffet is happy owning a
few stocks, and he is right if he is
Warren….” Schloss was a value investor
who also practiced diversification.
Because of his focus on obscure
companies and the period in which he
was investing, Walter was able to avoid
closet indexing.
8. “We don’t own stocks that we’d never
sell. I guess we are a kind of store that
buys goods for inventory (stocks) and
we’d like to sell them at a profit within 4
years if possible.” This is very different
from a Phil Fisher approach where his
favorite holding period is almost forever.
Schloss once said in a Colombia Business
school talk that he owned “some 60-75
stocks”.
9. “Remember the word compounding.
For example, if you can make 12% a year
and reinvest the money back, you will
double your money in 6 years, taxes
excluded. Remember the rule of 72. Your
rate of return into 72 will tell you the
number of years to double your money.”
Schloss felt that “compounding could
offset [any advantage created by] the
fellow who was running around visiting
managements.”
10. “The ability to think clearly in the
investment field without the emotions
that are attached to it is not an easy
undertaking. Fear and greed tend to
affect one’s judgment.” Schloss was very
self-aware and matched his investment
style to his personality. He said once” We
try to do what is comfortable for us.”
11. “Don’t buy on tips or for a quick
move.”
12. “In thinking about how one should
invest, it is important to look at you
strengths and weaknesses. …I’m not very
good at judging people. So I found that it
was much better to look at the figures
rather than people.” Schloss knew that
Warren Buffett was a better judge of
people than he was so Walter’s approach
was almost completely quantitative.
Schloss knew to stay within his “circle of
competence”. Schloss said once: “Ben
Graham didn’t visit management because
he thought figure told the story.”

Things I’ve Learned from Philip Fisher

1. “I had made what I believe was one of
the more valuable decisions of my
business life. This was to confine all
efforts solely to making major gains in
the long-run…. There are two
fundamental approaches to investment.
There’s the approach Ben Graham
pioneered, which is to find something
intrinsically so cheap that there is little
chance of it having a big decline. He’s got
financial safeguards to that. It isn’t going
to go down much, and sooner or later
value will come into it. Then there is my
approach, which is to find something so
good–if you don’t pay too much for it–
that it will have very, very large growth.
The advantage is that a bigger
percentage of my stocks is apt to perform
in a smaller period of time–although it
has taken several years for some of these
to even start, and you’re bound to make
some mistakes at it. [But] when a stock is
really unusual, it makes the bulk of its
moves in a relatively short period of
time.” Phil Fisher understood (1) trying to
predict the direction of a market or stock
in the short-term is not a game where one
can have an advantage versus the house
(especially after fees); and (2) his
approach was different from Ben Graham.
2. “I don’t want a lot of good
investments; I want a few outstanding
ones…. I believe that the greatest long-
range investment profits are never
obtained by investing in marginal
companies.” Warren Buffett once said:
“I’m 15% Fisher and 85% Benjamin
Graham.” Warren Buffett is much more
like Fisher in 2013 than the 15% he once
specified, but only he knows how much. It
was the influence of Charlie Munger
which moved Buffet away from a
Benjamin Graham approach and their
investment in See’s Candy was an early
example in which Berkshire paid up for a
“quality” company. Part of the reason this
shift happened is that the sorts of
companies that Benjamin Graham liked no
longer existed the further way the time
period was from the depression.
3. “The wise investor can profit if he can
think independently of the crowd and
reach the rich answer when the majority
of financial opinion is leaning the other
way. This matter of training oneself not
to go with the crowd but to be able to zig
when the crowd zags, in my opinion, is
one of the most important fundamentals
of investment success.” The inevitable
math is that you can’t beat the crowd if
you are the crowd, especially after fees
are deducted.
4. “Usually a very long list of securities is
not a sign of the brilliant investor, but of
one who is unsure of himself. … Investors
have been so oversold on diversification
that fear of having too many eggs in one
basket has caused them to put far too
little into companies they thoroughly
know and far too much in others which
they know nothing about .” For the “know-
something” active investor like Phil
Fisher, wide diversification is a form of
closet indexing. A “know-something”
active investor must focus on a relatively
small number of stocks if he or she
expects to outperform a market. By
contrast, “know-nothing” investors (i.e.,
muppets) should buy a low fee index
fund.
5. “If the job has been correctly done
when a common stock is purchased, the
time to sell it is almost never.” Phil
Fisher preferred a holding period of
almost forever (e.g., Fisher bought
Motorola in 1955 and held it until 2004).
The word “almost” is important since
every company is in danger of losing its
moat.
6. “Great stocks are extremely hard to
find. If they weren’t, then everyone would
own them. The record is crystal clear that
fortune – producing growth stocks can be
found. However, they cannot be found
without hard work and they cannot be
found every day.” Fisher believed that the
“fat pitch” investment opportunity is
delivered rarely and only to those
investors who are willing to patiently work
to find them.
7. “Focus on buying these companies
when they are out of favor, that is when,
either because of general market
conditions or because the financial
community at the moment has
misconceptions of its true worth, the
stock is selling at prices well under what
it will be when it’s true merit is better
understood.” Like Howard Marks, Fisher
believed that (1) business cycles and (2)
changes in Mr. Market’s attitude are
inevitable. By focusing on the value of
individual stocks (rather than just price)
the investor can best profit from these
inevitable swings.
8. “The successful investor is usually an
individual who is inherently interested in
business problems.” A stock is a part
ownership of a business. If you do not
understand the business you do not
understand that stock. If you do not
understand the business you are investing
in you are a speculator, not an investor.
9. “The stock market is filled with
individuals who know the price of
everything, but the value of nothing.”
Price is what you pay and value is what
you get. By focusing on value Fisher was
able to outperform as an investor even
though he did not look for cigar butts.
10. “It is not the profit margins of the
past but those of the future that are
basically important to the investor.” Too
often people believe that the best
prediction about the future is that it is an
extension of the recent past.
11. “There is a complicating factor that
makes the handling of investment
mistakes more difficult. This is the ego in
each of us. None of us likes to admit to
himself that he has been wrong. If we
have made a mistake in buying a stock
but can sell the stock at a small profit, we
have somehow lost any sense of having
been foolish. On the other hand, if we sell
at a small loss we are quite unhappy
about the whole matter. This reaction,
while completely natural and normal, is
probably one of the most dangerous in
which we can indulge ourselves in the
entire investment process. More money
has probably been lost by investors
holding a stock they really did not want
until they could ‘at least come out even’
than from any other single reason. If to
these actual losses are added the profits
that might have been made through the
proper reinvestment of these funds if
such reinvestment had been made when
the mistake was first realized, the cost of
self-indulgence becomes truly
tremendous.” Fisher was very aware of
the problems that loss aversion bias can
cause.
12. “Conservative investors sleep well.” If
you are having trouble sleeping due to
worrying about your portfolio, reducing
risk is wise. Life is too short to not sleep
well, but also fear can result in mistakes.

ITC to invest Rs 8,000 crore in Telangana ITC Limited will invest Rs 8,000 crore in Telangana for expanding its paper plant capacity and setting up of a new hotel

ITC Limited will invest Rs 8,000 crore in
Telangana for expanding its paper plant
capacity and setting up of a new hotel.
(Reuters)
Business conglomerate ITC Limited will
invest Rs 8,000 crore in Telangana for
expanding its paper plant capacity and
setting up of a new hotel, company
Chairman Y C Deveshwar said today.
“As a commitment from ITC we assure
you that we will be investing Rs 8000
crore in the state of Telangana. We will
expand our paper plant capacity and set
up a new hotel in Hyderabad,” Deveshwar
said during the launch of Telangana’s
new Industrial policy here.
Later talking to PTI on the sidelines, he
said paper plant expansion itself would
need around Rs 4,500 crore.

UK’s Hardy Oil & Gas in talks to buy outentire RIL stake in GS-1 block

RIL wants to exit Gujarat-Saurashtraoffshore basin block (GS-01) as it feelsthat reserves discovered so far are noteconomically significant.
NEW DELHI: UK’s Hardy Oil & Gas plc is in talks to acquire Reliance Industries’entire 90 per cent stake in a gas discovery block off the Gujarat coast.RIL wants to exit Gujarat-Saurashtra offshore basin block (GS-01) as it feelsthat reserves discovered so far are noteconomically significant.
“Hardy continued discussions with theoperator to acquire their 90 per cent interest and operatorship. General commercial terms have been agreed and a draft farmout agreement is under review by both parties,” the UK firm said announcing operational and financial review of 2014-15 fiscal.It said the agreement for transfer of interest and operatorship will be subject
to approval of the Government.Hardy currently owns 10 per cent interestin the block where a gas discovery,
named Dhirubhai-33, was made in 2007.
The well that discovered the reserves
flowed 18.6 million standard cubic feet
per day of gas and 415 barrels of
condensate during tests.
The GS-01 licence is located in the
Gujarat-Saurashtra offshore basin off the
west coast of India, northwest of the
prolific Bombay High oil field, with water
depths varying between 80 meters and
150 meters. The retained discovery area
covers 600 square kilometers.
Hardy said a field development plan (FDP)
for Dhirubhai 33 natural gas discovery
was submitted to the government for
review and approval in 2012.
A discovery was declared commercially
viable in 2011. The development plan
provides for several dry tree wells, an
unmanned platform, multiphase pipeline
to shore and onshore processing and
export facilities, it said.
“A draft farmout agreement is under
review by both parties and the final
outcome of these negotiations will be
known in the near term,” Hardy said.
It said timely resolution of liquidated
damages for unfinished minimum work
programme (or minimum work
committted) could accelerate conclusion
of the acquisition process.
“Following this, a priority will be to secure
government approval of the FDP and
initiate planning for development,” Hardy
said.
It along with Reliance have relinquished
block KG-DWN-2003/1 (KG-D3) due to
access restrictions imposed by the
government.
“On 23 December 2014, the D3
Management Committee considered a
proposal from RIL, the operator of the D3
block, in which Hardy holds a 10 per cent
interest, for the relinquishment of the
block,” the statement said.
RIL was of the opinion that the previously
announced access restrictions imposed
by the Ministry of Defence rule out any
further exploration/development activities
in the impact zone area and inhibited it
from undertaking any further work and
investment in the unrestricted area of the
Block due to the anticipated increase in
cost and risk.
D3 has similar participating interests as
GS-01. Four gas discoveries — Dhirubhai
39, 41, 44 and 52 (KGV-D3-A1, B1, R1
and W1), have so far been make in the
block.

2025 see a doubling of the total revenues earned out of tourism in India.

Tours and travel firm Cox & Kings
reported a consolidated net profit of Rs
64.56 crore for the fourth quarter ended
March 31, 2015. However, company’s
consolidated net sales declined marginally
by 0.83 percent to Rs 484.12 crore
during January- March quarter as against
Rs 488.21 crore for the same period a
year ago.
Peter Kerkar, director, Cox & Kings says
the loss in net sales was because in
fourth quarter because of subdued
outbound tourism and slack education
travel sector. According to him the outlook
for FY16 is very robust on back of
expectation of a double digit growth in
education travel sector in the next quarter,
which is their biggest segment and on
robust predictions by WTCC on India
travel growth. Plus relaxations of visa
rules into India will also help, says
Kerkar.
The current net debt for the company is
around Rs 2300 crore and Kerkar expects
it come down by another Rs 250-300 in
FY16 crore.
He is also confident of steady EBITDA
margins for the current fiscal too.
Below is the transcript of Peter Kerkar’s
interview with Sonia Shenoy & Reema
Tendular on CNBC-TV18.
Reema: Your net sales have come down
by nearly a percent in this quarter? Is it
only to do with the slack season which
impacted your revenues or was there any
other factor? What is the outlook on your
growth in FY16?
A: This quarter is our most subdued
quarter particularly in terms of outbound
which starts from the first quarter of this
year. Our prediction for the next year
going forward is quite robust because our
biggest segment today in terms of
earnings is our education division which
is primarily based in Europe and Australia.
We have got some very good news that
the estimated growth of primary school
kids is 12 percent up in the UK, which
means that we can look forward to some
double-digit growth in this education
travelsector which for us is our strongest
single product.
As far as India goes, again we are
incredibly bullish because World Travel &
Tourism Council (WTTC) has come out
with a very good prediction for Indian
travel growth. They are saying that by
2025 we will see a doubling of the total
revenues earned out of tourism in India.
So given these two trends and the
relaxation of visa rules into India, we
should see a fairly robust year for this
coming financial year.
Sonia: So double digit growth is what you
are expecting in your education business
and India looks bullish as well what will
all this do to the margins? Your margins
are still not yet at the double digit mark.
For this quarter the adjusted margins are
at 9.5 percent. For FY16 what could the
margin trajectory look like?
A: If you look at our EBITDA margins for
the last 3 years they have been incredibly
robust and very steady. In fact they have
been at 40 percent plus margin for the
last three years and we don’t see us
changing that margin base. Because it is
a very steady income growth and this
quarter as we said is anomaly because it
is the slack season for our education. Our
education centers has shut down over the
winter period so you do see a slight
decline in that area. However, if you see
the whole year year-on-year (YoY) our
margins are relatively very steady on the
EBITDA level.
Reema: Post your previous interaction you
had indicated that you are guiding a 15 –
20 percent EBITDA growth for the
consolidated entity in FY16 and a free
cash flow guidance Rs 400-500 crore.
Would there be any change to this
guidance on margins as well as cash
flow?
A: We came out with that guidance and
we will stand by that guidance so what is
significant for this year is that if you see
our balance sheet last year, our gross
debt was almost Rs 5,590 crore and we
have managed to reduce that gross debt
by Rs 1,800 crore. So it is a significant
reductionin our debt.
We feel that the whole company outlook
has completely transformed after this
balance sheet item and we believe that it
should affect our future very significantly
going forward.
Sonia: There has been a substantial
reduction this quarter so where does your
debt stand at currently and how much can
you reduce it further by the end of FY16?
A: Currently, our net debt stands at Rs
2,300 crore odd and if you see our last
quarter we did around Rs 57 crore of
interest payout as opposed to Rs 84-85
crore in previous quarter, so there was a
saving of nearly Rs 20-22 crore quarter-
on-quarter (QoQ). Therefore, the impact
on us just in terms of interest reduction
should be close to a Rs 100 crore a year
which should go straight to our bottom
line.
In terms of free cash as we gave the
guidance, we will standby which means
that we should see our debt coming down
in the range of Rs 250-300 crore
comfortably YoY.
Reema: The company has a massive
thrust on growing Meininger. In fact you
said that you would like to add Rs 12,000
beds over there in the next 3 years. Any
change to that assessment? How much of
those total numbers of beds would be add
in FY16?
A: What we did was because this is a
capex model we tied up with the largest
European Hotel and Real Estate which is
called Foncière des Murs. They have
dedicated 400 million euro to assist in the
buying of our properties which we then
lease from them. This is why we are so
confident of delivering a total of 12,000
beds in a period of four years.
Obviously, we expect that these beds will
come through from year 2017-2019 rather
than 2015 because a lot of these are new
bills. It takes us between 18-24 months to
deliver on these properties. So you will
see the real uplift in terms of beds only
after 2017. So, 2016 is a muted year we
have just done the agreement with them
and we are looking at the properties to
invest as we speak.

V-Mart to invest Rs 200 crore, add nearly 200 stores in 5 years

The company is also targeting over four-fold
jump in revenue to touch Rs 2,500 crore by
2020 with smaller towns expected to be its
key growth drivers.

Retail chain V-Mart will
invest around Rs 200 crore to add nearly
200 new stores in different part of the
country in the next five years.
The company is also targeting over four-
fold jump in revenue to touch Rs 2,500
crore by 2020 with smaller towns
expected to be its key growth drivers.
“We will have around 300 stores in the
next five years with a revenue of around
Rs 2,500 crore by then,” V-Mart Retail
Chairman and MD Lalit Agarwal told PTI.
The company had a revenue base of Rs
574.96 crore in FY 2013-14. It is, at
present, operating 109 stores in 91 cities.
Agarwal said: “We have clear vision that
smaller towns will be our growth drivers
as they have very high potential and
aspiration level is growing up.”
Of the total stores that the company has,
56 are in tier III clusters, 35 are in tier II
towns and 18 in tier I cities.
“Presently, the tier III clusters contribute
between 55 to 60 per cent of our revenue
and we strongly believe that it would go
up to 75 per cent in next three years,”
Agarwal said.
V-Mart is present at district level markets
including Purnia, Saharsa, Madhubani,
Motihari, Basti, Gonda, Lakhimpur,
Bahraich and is in process to expand its
base in the Eastern regions of Bengal and
Orissa.
“We are finalising the properties there.
Presently we are concentrating on Orissa
and Bengal,” he said.
He said in order to drive up sales further,
the company would enhance its in-house
labels, while also increasing offering
existing brands. Currently, it has 21 in-
house labels, which contributes around 25
per cent of the sales.
“We would increase the ratio to 50 per
cent from the existing 25 per cent in the
next three years. We would add more
labels and expand the depth of the
existing ones,” he added.