LIC & Goldman Sachs backed Amtek Auto destroyed 80% of Investors Wealth in a Month

We all feel safe in stocks which are backed by strong Institutions and get good sleep while owning them believing nothing too bad will happen there. We assume that these institutions that pay huge salaries to hire best in class research analysts have done thorough analysis before putting money into the stock and we can safely follow them. Well in investing world nothing is safe and especially in Stocks where all the analysis is on paper while the actual show is run by the management / promoter. While following Institutions is relatively better than doing personal analysis (if you are not a very seasoned analyst), following them blindly and committing all or major portion of your capital to one single stock could bring you disaster.

Amtek Auto is one such example which is backed by some renowned institutions such as LIC & Goldman Sachs. As on 30^th June 2015 LIC held more than 8.4 million shares while Goldman Sachs had 4.2 million shares of the company. Together Institutions held over 15% of the company as on 30^th June 2015. 

Goldman Sachs view on India - 2013

Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead pegging December 2013 Nifty target at 6,600. 

Recent reform initiatives have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," said Goldman Sachs in a report.

The investment bank added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.

Goldman Sachs View on Crompton Greaves

Goldman Sachs has upgraded Crompton Greaves to buy from neutral and has raised its target price to Rs 155 from Rs 120, citing better prospects of domestic orders and margins. 

The investment bank says the company would benefit from the balance sheet restructuring of state electricity boards and power sector reforms as over 25% of its revenues are driven by domestic power transmission and distribution capex. The investment bank also said that the company is trading at attractive valuations.

Buy Petronet LNG - Recommends Goldman Sachs

Petronet LNG stock has been upgraded by Goldman Sachs  to buy from neutral with a target of Rs 225 an appreciation of almost 30% from current levels. Goldman expects greater sustainability of its high margins from increased spot LNG volumes.

　

The current market price of the stock as on 19th Sep 2011 is Rs. 173.40 and commands a market cap of INR 13,000 crores.

Buy Tata steel - Recommends Goldman Sachs

Goldman Sachs has raised its 12-month price target for Tata Steel to Rs 774 from Rs 761 and maintained its "buy" rating on the stock following better-than-expected quarterly earnings.

Tata Steel, the world's No.7 steelmaker, net profit after taxes jumped about 72% to Rs 4,178 crore ($937 million) in its fourth quarter.

Buy JSW Steel - Recommends Goldman Sachs

Goldman Sachs upgraded JSW Steel to 'buy' from 'neutral' as the recent price correction in the stock has improved its risk-reward ratio. The investment bank kept the price target unchanged at 1,343 rupees.

The stock has corrected 20 percent since November, Goldman Sachs said the stock is trading at a discount to its peers on both earnings and book-based multiples. The company will be in the best position to capitalize on a recovery in steel pricing, the investment bank added.

CMP of JSW Steel as on 17th May was 920. The target price set by the investment bank suggest a return of around 46% from the current levels.

Goldman Sachs puts BUY rating on Bharti Airtel

Goldman Sachs has upgraded Bharti Airtel to buy from neutral and raised its target price on the stock of India's top mobile phone operator to Rs. 430

We expect the price target is conservative. The recent 2G scams are more likely to hit newer and unlisted player in the telecom space like UNINOR, Videocon, LOOP etc. This will rationalize the competition and would be favourable for the listed telecom player like Bharti Airtel. The tariff war seems to have bottomed out and the uncertainity in terms of its african operation is alomost over. Bharti is confident of it African operation turnaround in next 1 year. Most of the indian mutual funds have increase their stake in Bharti in last 6 months.

If Bharti reaches its target of 100 Million users in Africa by FY-12 then we exepect Bharti to report a Consolidated revenue of approximately Rs. 75,000 crores and PAT of around Rs. 12,000 crores in FY-13. Considering a PE multiple of 18, which is the forward multiple at which SENSEX broadly is trading at, then the market capitalization of  Bharti is expected to be approx.  Rs. 2,16,000 crores and hence the target price for Bharti is expected to be at Rs 560 in next 1.5 year. A near 70% appreciation from current levels of 335.