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Seeking Alpha in Indian Market

If you haven't came from another planet, you would have noticeed that lately Indian stock market has been on fire. Economy growing at about 9% per year, BSE index has been up about 40+ % in last two years. In such market, it's very difficult to beat the market when any stock you pick would do well. By defination, seeking alpha is nothing but find stocks which would return better than just by investing in any index funds.

I have been successfully investing in India for some time and have developed few skills to pick some stocks. At start of 2006, I have selected Aptech which I picked up at 130 rupees with target of 200 in 12 months. Check out in blog archives at:

Today it is 209 rupees. I recommended to some folks back home when it was 60.

But that was past (in stock market - no one cares about past) Let's talk about which stocks would do better going forward now that BSE index is at 14300 and it has become difficult to pick wining stocks. I am planning to write about one or two indian stocks periodically on my blog.


Teledata Informatics:
When I was in India in June 2006, I noticed this stock and found that it was trading at P/E of about 2 (at 14 rupees). This is an Indian software company with decent revenues and trading at P/E of 2. I could not believe so did some reaserch (with limited publications like capital markets). Decided to buy few shares to keep it on my radar. When overall market was breaking records, this stock remained in mid teens for few more months. People starting noticing it in last couple of months when it started moving from mid-teens and since then it has been locked at max 5% lock for quite few days. On Friday 2/15, it is trading at 47 ruppes. It has returned nearly 400% in 7-8 months.

It just published results for last quarter in which it earned 820 million rupees on revenue of over 3000 million rupees. With about 150 million shares, it is back to P/E of 2-3. It is going to be demerged in 3 companies with existing shareholders receiveing shares in all 3 companies. Unfortunately, there is dearth of quality information available on such companies. However considering it is mid-size software company and growing it's revenues and profits and demerging in 3 companies, my prediction is that it will touch
100 rupees by end of 2007..

I will talk about next stock in future posts (after I do some more research on other companies) ! Good night !

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