To begin with the subject, it would be imperative to understand the meaning and relevance of small cap, mid cap and large cap funds before making them a part of your investment portfolio. Many of my friends and colleagues have minted money in dealing in small cap shares. A typical a small cap share is available in range of Rs 2-20 and if you get a “tip” to buy a particular share for a gain of say Rs 2-5 per share, the kind of gains that can be made are phenomenal. I am personal witness to people earning more than Rs 3 lac a single day on investment of just Rs 1 lac.

The recent volatility in the share market presents big hazards for day traders and short term investors but to my mind is not going to effect medium or long term investors. If you are a avid investor, I would recommend to change strategy from day trading to short term holding and investor should have diversified portfolio in various sectors. The volatility in the markets should be used to enter select scrips.

Considering the valuations of DLF share face value Rs 2/- which is priced too aggressively, it appears that some choice picks in secondary market would give better returns than DLF and especially if you are looking for immediate gains on listing.

Stock markets have been particularly choppy during fast six months. Many new entrants who entered considering the markets scaling new heights every fortnight have lost money.

I first started investing in 1993 and to tell you the fact, in first five years made tons of money and in next six months lost half of it. In fact that was the time when mutual funds were excellent way to befool people. Since the bursting of bubble in US64, SEBI woke up and made some mandatory norms of disclosure.

Coming fortnight promises to be bullish on Power, telecom, Engineering and Construction sectors.

In the coming fortnight, interest could shift from secondary market to new IPOs that have lined up. Markets could be choppy however specific share could do well. However investors need not be wary of secondary markets as there is nothing wrong with fundamentals. It is essentially some segment of market making way for new IPOs. The markets are bound to bounce back.

Current Price 266 Buy for Target Price of Rs 375

1. Though results of the company are below expectations, Total income of the company has increased by 5.2% to Rs 9.85 bn.
2. Operating profits grew by 16% to Rs 2.76 billion. The net profit could have been better but for high interest and depreciation
3. Its domestic formulation business has registered 23% growth and has shown good market acceptance. Its psychiatry, anti diabetic products are also received well

Current Price Rs 640/- Target Price Rs 812/- Recommendation Buy

Voltamp is a leading player in the industrial and dry type transformer segment. Demand for this segment continues to grow and the company should witness 27% increase in CAGR in next 18 month.

The company enjoys a good brand equity and loyalty among industrial customers and has one of highest repeat business order rate. Heavy investment in power generation segment has provided strong boost to the profitability of the company.

Most analysts seem to agree that DLF is fundamentally very sound and the IPO pricing at 500-550 is attractive.

DLF has a large land holding in urban areas and has sufficient mix in residential commercial and retail areas. This would allow DLF to diversify in all segments as hotels, commercial or residential areas. SEZ segment in DLF may be a small segment but would contribute significantly to bottom line.

The company is well managed and is strongly poised for further growth and profitability.

However, few factors need to be factored in, while making investments: