BEML, a defence sector public sector undertaking (PSU), is likely to register a 10-12 per cent rise in its net profit at Rs 230-235 crore for the year ended March 31, 2008, compared with the previous financial year.
The company today announced that it had reported a provisional profit before tax at Rs 350 crore for the year, a growth of 11 per cent compared with the last financial year’s numbers. The company’s tax outgo for 2007-08 is likely to be at Rs 115-120 crore.
For the year 2007-08, BEML registered a 15.5 per cent growth in turnover at Rs 3,005 crore compared with that of the previous financial year.
The company, which is reducing its dependence on the defence sector, has Rs 3,795 crore order book for the current year.
Of this, orders from the railway business stand at Rs 1,400 crore, mining and construction businesses at Rs 1,260 crore, while Rs 765 crore has come from the defence sector.
Announcing the company’s provisional financial results for FY08, V R S Natarajan, chairman and managing director, BEML, said the company’s export sales had gone up by 132 per cent to Rs 257.72 crore compared with that of the last year.
Natarajan said, “We are primarily a defence PSU. But over the last few years, we have been diversifying into other areas such as railways, mining, construction and technology businesses.”
The networth of the company has gone up to Rs 1,795 crore from Rs 1,014 crore in 2006-07.
During the year, the mining and construction division of BEML produced 1,275 equipment against 911 last year and posted sales of Rs 1,797.35 crore, a year-on-year growth of 10 per cent.
The division might secure its single largest order from Northern Coal Fields, valued at Rs 638 crore for supply of three units of 20 cubic metres mining shovels for the first time in India along with a 17-year annual maintenance and repair contract, he said.
BEML has also finalised an MoU with Steel Authority of India (SAIL) for supply of mining and construction machines for its plants and mines for three years.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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