The best and worst sectors of 2011-2012

As the Indian fiscal year has come to an end (April 2011-March 2012), its time to take stock of sector performance over the last one year.

The best performing sector has been Cigarettes :

1.ITC (Up 24%)

2.Godfry Philips (Up 66%)

3.VST Industries (Up 129%)

The worst performing sector has been Telecom Tower infrastructure:

1.GTL Infra (-74%)

2.Sujana Tower (-70%)

3.TN Tele (-55%)


Better to watch Lok Sabha TV?

The Cable Digitization bill was passed by Parliament on 13th December, 2011

The Bill makes it mandatory to digitize analogue cable network for the entire country before the end of 2014 in four phases.

The first phase covering the four metros of Mumbai, Delhi, Chennai and Kolkata is to be completed by 30 June 2012.

This move has proved to be a bonanza for the market capitalizations of Multiple System Operators.

Consider the increase in share prices of these companies from 13th December,2011 till now:

WWIL (14%)

Hathway (46%)

Den (89%)

Moral of the story:Maybe it’s more profitable to watch Lok Sabha TV than CNBC !!

Rail Stocks

The Mamata Effect

The fiasco over the rail budget has wrecked the market caps of Rail wagon companies.

Consider the performance of the rail stocks post the rail budget till now:

CIMMCO (down 22%)

Kalindee (down 59%)

Texrail (down 22%)

TWL (down 30%)

None of these stocks are in the F&O segment else they would have been butchered even further.

Considering the poor finances of Indian railways, the under performance should continue till the next Rail budget at least.

A sector to avoid.